T. Rowe Price reported Q4 results with ongoing equity outflows but strong market performance helping AUM growth. They discussed strategic partnerships, including Goldman Sachs and FAB, and highlighted the success of their OHA private credit arm. Q4 adjusted EPS was $2.44, with full-year EPS of $9.72.
T. Rowe Price reported Q4 results with ongoing equity outflows but strong market performance helping AUM growth. They discussed strategic partnerships, including Goldman Sachs and FAB, and highlighted the success of their OHA private credit arm. Q4 adjusted EPS was $2.44, with full-year EPS of $9.72.
T. Rowe Price reported Q4 results with ongoing equity outflows but strong market performance helping AUM growth. They discussed strategic partnerships, including Goldman Sachs and FAB, and highlighted the success of their OHA private credit arm.
Q4 adjusted EPS was $2.44, with full-year EPS of $9.72.
2025 net outflows were $56.9 billion, mostly from equity and mutual funds, but overall AUM grew 10% to $1.78 trillion.
OHA had a record fundraising year with over $16 billion raised.
Management discussed advancing AI across the firm, amplifying investment professionals' capabilities without replacing their judgment, improving client service speed and personalization, and adopting new technologies with disciplined governance. They also plan to launch an active crypto ETF in 2026 that uses fundamental and quantitative analysis.
Guidance is for moderate expense growth, but the tone on flows is cautious, with equity outflows expected to continue pressuring overall assets.
Management acknowledged challenges in flows and performance but expressed confidence in strategic initiatives and product innovation, maintaining a balanced and forward-looking tone.
“About a third of the Q4 retirement date outflows were driven by M&A activity, where our client was acquired and the plans were consolidated and we ended up losing the mandate.”
“OHA enjoyed a second consecutive record fundraising year with over $16 billion of capital raising across the platform led by private lending strategies.”
T. Rowe Price's partnership with Goldman Sachs is expanding into model portfolios and retirement offerings, potentially driving distribution and AUM growth for both firms.
“We established a strategic collaboration with Goldman Sachs, to pursue opportunities in wealth and retirement through co-developed public-private offerings and advice solutions.”
… some of the underlying portfolios, primarily in the second and third quarters of 2025. Across alternatives, performance for the quarter was generally strong amid a more discerning credit backdrop. Credit selection continued to be highly effective as it successfully avoided any exposure to widely publicized frauds or failures. Beyond investment performance, in 2025, we continued to make progress on our strategic initiatives. We established a strategic collaboration with Goldman Sachs, to pursue opportunities in wealth and retirement through co-developed public-private offerings and advice solutions. And in the fourth quarter, we launched the first co-branded model portfolios, including four portfolios that are now live on the GeoWealth platform and a fifth expected in the first half of 2026. In January, we launched one of the model series, the Goldman Sachs T. Rowe Price Dynamic ETF Portfolio, on the Morgan Stanley platform. We extended our retirement leadership globally with a subadvised retirement date fund series in partnership with a Japanese asset manager and two new retirement allocation funds with a strategic partner in Asia, marking the first time a U.S. asset manager …
This strategic partnership with First Abu Dhabi Bank (FAB) is aimed at expanding T. Rowe Price's distribution into the Middle East.
“Our partnership with FAB aims to deliver world-class investment solutions across public and private markets, tailored to meet the needs of investors throughout the Middle East.”
… strategy, and support our growth agenda. We advanced our use of artificial intelligence across the firm, amplifying our investment professionals' capabilities without replacing their judgment, improving the speed and personalization of client service, and adopting new technologies with disciplined governance and thoughtful onboarding. The momentum we built in 2025 carried into 2026 with our announcement in January of a new strategic partnership with First Abu Dhabi Bank. Leveraging our collective's strengths and capabilities, Our partnership with FAB aims to deliver world-class investment solutions across public and private markets, tailored to meet the needs of investors throughout the Middle East. While we have had an institutional business in the Middle East for some time, this is our first strategic partnership in the region, and it reflects our commitment to growing and diversifying our business through innovative global partnerships. This partnership, and all the progress we made in 2025, is a reflection of our associates' steadfast commitment to our clients, and I want to thank each of them for their dedication. And now, Jen will share an update on our financial results.
Launching on the Morgan Stanley platform is a key distribution milestone for T. Rowe Price's model portfolio strategy.
“In January, we launched one of the model series, the Goldman Sachs T. Rowe Price Dynamic ETF Portfolio, on the Morgan Stanley platform.”
… in 2025, we continued to make progress on our strategic initiatives. We established a strategic collaboration with Goldman Sachs, to pursue opportunities in wealth and retirement through co-developed public-private offerings and advice solutions. And in the fourth quarter, we launched the first co-branded model portfolios, including four portfolios that are now live on the GeoWealth platform and a fifth expected in the first half of 2026. In January, we launched one of the model series, the Goldman Sachs T. Rowe Price Dynamic ETF Portfolio, on the Morgan Stanley platform. We extended our retirement leadership globally with a subadvised retirement date fund series in partnership with a Japanese asset manager and two new retirement allocation funds with a strategic partner in Asia, marking the first time a U.S. asset manager offered retirement-focused products to retail investors in Hong Kong and Singapore. Additionally, we saw growth in the Canadian target date series we launched in 2024. We maintained our position as an industry leader in active target date solutions, building on over 20 years of product innovation and surpassing $560 billion in assets under management across …