T Rowe Price Group Inc Q3 2024 Earnings Call Transcript

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

Question: Alex Blostein - Goldman Sachs & Co. LLC. - Analyst : Rob, would love to get your perspective on the organic growth to start a good perspective on the VA business on slide 15. I think you mentioned that, you guys obviously made progress on the business, excluding the VA sub-advisory outflows expected to be, I guess, less than half of the apples you sell last year. That still, I think, implies a pretty meaningful step-up in outflows in Q4, excluding the VA sub-advisory issue. So maybe just on PAC, what you're seeing in the fourth quarter and whether or not the outflows there on a core basis are also a bit more elevated than normally. And any thoughts you have for '25, but would be appreciated as well.

Question: Michael Cyprys - Morgan Stanley Co. & Inc. - Analyst : I just want to ask about retirement. I was hoping maybe you could just update us on the -- your views there on the retirement market, competitive landscape. Some of the steps you guys are taking to drive growth in the retirement channel, including the new lifetime managed payout product. Maybe you could talk about how that works your go-to-market strategy for that, how you plan to build traction. And then I think you mentioned a Glide Path win for next year. Maybe you can help quantify that.

Question: Benjamin Budish - Barclays Capital Inc - Analyst : I wanted to ask about private credit. I guess maybe a two-parter. First, can you remind us how much of the business is related to senior direct lending, just thinking about sort of the opportunity set going into next year if has -- what the market seems to be expecting happens, which is that we see a big pickup in transacting activity. How are you positioned for that? And then Rob, you mentioned something about doing more on the fixed income side in insurance. I'm curious to what extent could that perhaps be related to private credit or what else did you mean there?

Question: Dan Fannon - Jefferies LLC - Analyst : Rob, I wanted to follow up on your comments around the institutional backlog building ex the sub-advised mandate. So can you put some context around that in terms of the products and ultimately, how you think about, I guess, the sales cycle here today? Is that the funding is that looking into next year? Or is that more of the three, four months window?

Question: ken worthington - J.P. Morgan Securities LLC - Analyst : In terms of your ETF franchise, to what extent is it expanding your customer reach and allowing you to get into different distribution channels? And to what extent is it just sort of cannibalizing your existing fund assets for an extra basis point? And in terms of the cost of distribution here for ETFs, is it any different than kind of what you're paying for access with the fund franchise?

Question: Craig Siegenthaler - BofA Global Research - Analyst : Hope you're all doing well. I have a follow-up to Mike's question on Managed Lifetime Income. So many view the rider as a positive by recreating a defined benefit like experience for retirees. But I was curious on the IRR math by adding an insurance guarantee onto our Foreign key investment product just given the added cost and they take away downside risk, but what is the annual cost of these riders? So essentially, how does it impact the long-term return math and given that foreign key plan sponsors are generally pretty fee-sensitive, how does the guarantee get around that constraint?

Question: Glenn Schorr - Evercore ISI Institutional Equities - Analyst : Quickie, how close do you think we are to seeing private market allocations inside target date funds and retirement plans? And maybe more importantly, how are you thinking about leveraging the great T Rowe Price brand and distribution network, specifically related to private markets? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 01, 2024 / 12:00PM, TROW.OQ - Q3 2024 T Rowe Price Group Inc Earnings Call

Question: Patrick Davitt - Autonomous Research LLP - Analyst : Thanks for the VA disclosure helpful. Could you remind on the makeup of the client base of the other $85 billion and why that's stickier than the VA side?

Question: Brennan Hawken - UBS Securities LLC - Analyst : The performance this quarter seem to take a rather meaningful hit, especially on a one year basis. Could you maybe provide some color around what you think might have driven that? And any potential adjustments or actions you guys could be taken on the back of it?

Question: Mike Brown - Wells Fargo Securities LLC - Analyst : Jen, I appreciate the expense comments for next quarter and for the full year. I guess I know it's early in probably the planning process. But as you look to 2025, how are you thinking about expense growth next year? And what are some key areas of investment that you'll be focusing on next year?