T Rowe Price Group Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Glenn Schorr - Evercore ISI - Analyst : Hi, there. How are you? So a question on cash and retirement account and target date funds. I'm sure you've seen there's been a heightened focus in the wealth management community in terms of what options and what people are getting paid on their cash. So I'm curious on your thought process on how you handle it, are there multiple options for clients or is this all client driven? I'm just curious, you have obviously a different business lien and I just want to see your approach. Thank you.

Question: Dan Fannon - Jefferies - Analyst : Thanks. Good morning. Rob, I was hoping you could just expand upon the sales pipeline that you've talked about. Clearly, flows are getting better. You had a large institutional fixed income win. But I was hoping you could talk about the breadth, maybe of the sales pipeline, some of the geographical differences you had inflows outside the US. So just a little more granularity around not so much the quarter, but the conversations and the prospective outlook around the sales and how that compares to previous periods.

Question: Ken Worthington - JPMorgan - Analyst : Great. Good morning. Thanks for taking the question. I believe you said you're partnering with a new distribution broker. I think you said 10,000 representatives. A couple of questions here. Like first, can you talk about what this means, what you expect to get from the relationship, what are the costs of partnering on this platform? And are there other larger distribution relationships that you aspire to work with that may actually be

Question: Ken Worthington - JPMorgan - Analyst : Great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 26, 2024 / 12:00PM, TROW.OQ - Q2 2024 T Rowe Price Group Inc Earnings Call

Question: Patrick Davitt - Autonomous Research - Analyst : Hi. Good morning, everyone. Thank you. On the bond mandate, could you give us the actual size so we have a better idea of what the flows look like without it. And you mentioned six new wins of $1 billion plus. Should we take that to mean that those are still to fund or were those funded in the first half? Thank you.

Question: Brian Bedell - Deutsche Bank - Analyst : Hey. Great. Good morning, folks. Thanks for taking my question. Maybe, Rob, if you can talk about the distribution channels that you think are most sensitive to the improved performance where you may be able to more quickly leverage the performance improvement. And in conjunction with that, the platforming of the equity ETFs and maybe just talk about the pipeline of adding new products there? And to what extent do you think these will be -- can be more bought products rather than sold products on online channels and whether that might be more sensitive to improve performance?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Thank you. Maybe just continuing with the ETF topic here. You seem to be having some good traction and success there. So I just want to drill down a little more. Hoping you could elaborate on your sales and distribution approach with ETFs. How that differs from your approach to sale of more traditional mutual funds for you. And then more broadly, if you could just comment on your strategy and approach, including the way that you are going to market with, in some cases, replications of what you already offer in mutual funds versus opportunities with other strategies that are different from what you already have. How you think about that and approach and navigate certain challenges in the marketplace that may or may not create. Thank you.

Question: Brennan Hawken - UBS Equities - Analyst : Good morning. Thanks for taking my questions. I actually have a request and then a question. So one thing just to consider, many of your peers provide an adjusted income statement, which really would reduce the potential for misunderstandings and errors around interpreting your results. And I'd like to just please ask you to request putting that together because the way the disclosure now is a little -- I'm worried it could lead to some confusion. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 26, 2024 / 12:00PM, TROW.OQ - Q2 2024 T Rowe Price Group Inc Earnings Call My question is on OCRED. So we hear it's a bit of a me-too product and given that it came after some firmly established products in the marketplace. I'd love to hear you lay out for me the case for how it's differentiated from established offerings such as BCRED and maybe how you're explaining that differentiation to your distribution partners. Thanks.

Question: Alexander Blostein - Goldman Sachs - Analyst : Hey, Rob. And good morning, everybody. Question for you guys on the fee rates. It looks like the pace of fee rate compression picked up a little bit sequentially. And I know you talked about most kind of the mix of flows and just some of the transfers. So can you help kind of go through that a little more? And as you think about the difference in the fee rates amongst some of the larger kind of transfer buckets, where does that stand today? And how do you expect that to evolve over the next couple of quarters?

Question: Bill Katz - TD Cowen - Analyst : Okay. Thank you very much for taking the question. And also, thank you for the abbreviated opening remarks. I hope that's a trend for your peers. In terms of -- just a clarifying question, you mentioned that you expect seasonally a second half pickup in redemptions. Just wondering if you could sort of highlight the reason for that. But the broader question I have is, as you think about some of the changes that are happening in the competitive landscape, whether it be on the traditional side or more opportunity in the alternative side where I think the greater focus is, how are you thinking about the sort of attacking that on a de novo basis? And do alignments like KKR and Capital Group maybe shift your thinking about how to accelerate that opportunity? Thank you.