There was little in wide-moat-rated T. Rowe Price's fourth-quarter results that would alter our long-term view of the firm. We are leaving our $115 per share fair value estimate in place and view the company's shares as being slightly undervalued right now.
With $1.450 trillion in AUM at the end of January 2024, T. Rowe Price is one of the larger U.S.-based asset managers. Retirement accounts and variable-annuity portfolios, which are stickier than retail assets, account for two thirds of managed assets.
Bears
The company's equity performance has been really weak, with just 34% and 31% of fund AUM beating passive peer medians on a 3- and 5-year basis, respectively, at the end of December 2023.
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T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of January 2024, the firm had $1.450 trillion in managed assets, composed of equity (52%), balanced (33%), fixed-income and money market (12%), and alternative (3%) offerings. Approximately two thirds of managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just under 9% of its AUM from overseas.