TROW

NEW YORK, Aug. 13, 2026 /PRNewswire/ -- T. Rowe Price OHA Select Private Credit Fund (the "Company" or "OCREDIT") today reported financial results and total distributions of $0.60 per share for the quarter ended June 30, 2026. As private credit remains a key driver of financing solutions within credit markets, OCREDIT closed the second quarter with the addition of 7 new portfolio companies across a diverse range of industries, representing portfolio net growth of nearly $124.0 million. OCREDIT's $3.1 billion investment portfolio is now comprised of exposure to 144 portfolio companies across 25 unique sectors, and a weighted average portfolio yield at cost of 9.8%3. "The second quarter reinforced our conviction in private credit. We believe stable borrower fundamentals and continued demand for private capital support a compelling opportunity set for investors," said Eric Muller, OCREDIT's Chief Executive Officer. QUARTERLY HIGHLIGHTS3 Inception-to-date1 annualized total return of 10.58%2; Net investment income per share was $0.61 with weighted average yield on debt and income producing investments, at amortized cost of 9.8%3, and earnings per share were $0.41; Distributions declared were $0.60 with an annualized distribution rate of 9.2%; Net asset value per share as of June 30, 2026 was $25.96; Gross investment fundings were $176.1 million; Debt-to-equity as of June 30, 2026 remained consistent with March 31, 2026 at 0.93x; The Company had total net debt outstanding of $1,522.5 million with a weighted average interest rate of debt of 6.0%. During the second quarter of 2026, the Company issued 511,070 of Class I common shares for proceeds of $13.3 million, 198,044 of Class S common shares for proceeds of $5.2 million, and 531,599 of Class D common shares for proceeds of $13.9 million. From July 1, 2026 through August 13, 2026, the Company received total proceeds of $14.8 million from common shareholders in connection with its public offering.4 Subsequent to quarter end on July 2, 2026, the Company entered into an Indenture relating to the issuance of $400.0 million in aggregate principal amount of Notes, due July 2, 2031, with a fixed interest rate of 6.50% per year. DISTRIBUTIONS5 During the second quarter of 2026, the Company declared total distributions of $0.60 per share. As of June 30, 2026, the Company's annualized distribution rate was 9.2%.6 From July 1, 2026 through August 13, 2026, the Company declared the following distribution on July 28, 2026 which is payable on or about August 31, 2026 to common shareholders of record as of July 31, 20266: SELECTED FINANCIAL HIGHLIGHTS INVESTMENT ACTIVITY For the three months ended June 30, 2026, net investment fundings were $124.0 million. The Company invested $176.1 million during the quarter, including $114.7 million in 7 new companies and $61.4 million in existing companies. The Company had $52.1 million of principal repayments and sales during the quarter. As of June 30, 2026, the Company's investment portfolio had a fair value of $3,100.8 million, comprised of investments in 144 portfolio companies operating across 25 different industries. The investment portfolio at fair value was comprised of 90.8% first lien loans, 7.1% second lien loans, 1.4% preferred equity investments, 0.2% common stocks and 0.5% asset backed securities. In addition, as of June 30, 2026, 97.0% of the Company's debt investments based on fair value were at floating rates and 3.0% were at fixed rates. There was one debt investment placed on non-accrual status as of June 30, 2026 with $29.4 million cost and $16.0 million fair value. FORWARD-LOOKING STATEMENTS Certain information contained in this communication constitutes "forward-looking statements" within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "can," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates", "confident," "conviction," "identified" or the negative versions of these words or other comparable words thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. OCREDIT believes these factors also include but are not limited to those described under the section entitled "Risk Factors" in its prospectus, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or OCREDIT's prospectus and other filings). Except as otherwise required by federal securities laws, OCREDIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. ABOUT T. ROWE PRICE OHA SELECT PRIVATE CREDIT FUND OCREDIT is a non-diversified, closed-end management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended. The Company also intends to elect to be treated as a regulated investment company under the Internal Revenue Code of 1986, as amended. OHA Private Credit Advisors LLC (the "Adviser") is the investment adviser of the Company. The Adviser is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940. OCREDIT's registration statement became effective on September 29, 2023. From inception through June 30, 2026, the Company has invested approximately $4.4 billion in aggregate cost of debt investments prior to any subsequent exits or repayments. The Company's investment objective is to generate attractive risk-adjusted returns, predominately in the form of current income, with select investments capturing long-term capital appreciation, while maintaining a strong focus on risk management. OCREDIT invests primarily in directly originated and customized private financing solutions, including loans and other debt securities with a strong focus on senior secured lending to larger companies. Please visit www.ocreditfund.com for additional information. ABOUT OAK HILL ADVISORS Oak Hill Advisors ("OHA") is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of attractive risk-adjusted returns. The firm has approximately $112 billion in assets under management ("AUM") as of June 30, 2026 across credit strategies, including private credit, high yield bonds, leveraged loans, private capital solutions and collateralized loan obligations. Additional information on OHA's AUM calculation methodology can be found on the OHA website. OHA's emphasis on long-term partnerships with companies, sponsors and other partners allows for the provision of customized credit solutions across market cycles. With over 400 experienced professionals across seven global offices, OHA brings a collaborative approach to offering investors a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more information, please visit www.oakhilladvisors.com. ABOUT T. ROWE PRICE T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.87 trillion in client assets as of July 31, 2026, about two-thirds of which are retirement-related. Renowned for nearly 90 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amid evolving markets. Visit troweprice.com/newsroom for news and public policy commentary. For a more detailed description of OCREDIT's investment guidelines and risk factors, please refer to the prospectus. Consider the investment objectives, risks, and charges and expenses carefully before investing or sending money. For a free prospectus containing this and other information, call 1-855-405-6488 or visit www.ocreditfund.com. Read it carefully. OCREDIT is a BDC, which offers individual investors access to private lending, historically only accessible to institutions and high-net-worth investors. At least 70% of a BDC's investments must be in U.S. private companies with less than $250 million in market capitalization. OCREDIT is a non-exchange traded BDC that expects to invest at least 80% of its total assets (net assets plus borrowings for investment purposes) in private credit investments. An investment in OCREDIT involves a high degree of risk. An investor should purchase securities of OCREDIT only if they can afford the complete loss of the investment. Neither the SEC nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Securities regulators have also not passed upon whether this offering can be sold in compliance with existing or future suitability or Regulation Best Interest standard to any or all purchasers. For OCREDIT's full historical performance figures, please visit https://www.troweprice.com/en/us/ocredit/performance for more information. As of June 30, 2026, OCREDIT is available in 54 states and territories. As of June 30, 2026, OCREDIT is not registered for offer or sale outside of the United States. BDCs may charge management fees, incentive fees, as well as other fees associated with servicing loans. These fees will detract from the total return. OCREDIT may in certain circumstances invest in companies experiencing distress increasing the risk of default or failure. OCREDIT is not listed on an exchange which heightens liquidity risk for an investor. OCREDIT has limited prior operating history and there is no assurance that it will achieve its investment objectives. The Company's public offering is a "blind pool" offering and thus investors will not have the opportunity to evaluate the Company's investments before they are made. Investors should not expect to be able to sell shares regardless of performance and should consider that they may not have access to the money invested for an extended period of time and may be unable to reduce their exposure in a market downturn. OCREDIT employs leverage, which increases the volatility of OCREDIT's investments and will magnify the potential for loss. Fixed-income securities are subject to credit risk, call risk, and interest rate risk. As interest rates rise, bond prices fall. Investments in high-yield bonds involve greater risk than higher rated bonds. International investments can be riskier than U.S. investments and subject to foreign exchange risk. These risks are magnified in emerging markets. OCREDIT is "non-diversified," meaning it may invest a greater portion of its assets in a single company. OCREDIT's share price can be expected to fluctuate more than that of a comparable diversified fund. OCREDIT may invest in derivatives, which may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions. Account opening and closing fees may apply depending on the amount invested and the timing of the account closure. There may be costs associated with the investments in the account such as periodic management fees, incentive fees, loads, other expenses or brokerage commissions. Fees for optional services may also apply. Opinions and estimates offered herein constitute the judgment of OHA as of the date this document is provided to an investor and are subject to change as are statements about market trends. All opinions and estimates are based on assumptions, all of which are difficult to predict and many of which are beyond the control of OHA. In preparing this document, OHA has relied upon and assumed, without independent verification, the accuracy and completeness of all information. OHA believes that the information provided herein is reliable; however, it does not warrant its accuracy or completeness. Certain information contained in the press release discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Diversification cannot assure a profit or protect against loss in a declining market. Potential investors are urged to consult a tax professional regarding the possible economic, tax, legal, or other consequences of investing in OCREDIT in light of their particular circumstances. In the United States, the Company's securities are offered through T. Rowe Price Investment Services Inc., a broker-dealer registered with the SEC and a member of FINRA. OHA is a T. Rowe Price company. © 2026 Oak Hill Advisors. All Rights Reserved. OHA is a trademark of Oak Hill Advisors, L.P. T. ROWE PRICE, INVEST WITH CONFIDENCE, the Bighorn Sheep design and related indicators (see troweprice.com/ip) are trademarks of T. Rowe Price Group, Inc. All other trademarks shown are the property of their respective owners. Use does not imply endorsement, sponsorship, or affiliation of Oak Hill Advisors with any of the trademark owners. View original content to download multimedia:https://www.prnewswire.com/news-releases/t-rowe-price-oha-select-private-credit-fund-announces-june-30--2026-financial-results-and-declared-total-distributions-of-0-60-per-share-in-q2-2026--302851444.html

T. Rowe Price’s second quarter results were met with a negative reaction from the market, reflecting concerns about persistent outflows in active equity products and ongoing fee pressure. Management acknowledged that although certain areas like integrated strategies and active ETFs saw net positive inflows, the company continues to face headwinds from client migration toward lower-fee vehicles and muted demand in traditional mutual funds. CEO Rob Sharps described the active equity environment as “under pressure” and indicated the challenges are likely to persist, particularly as the firm adapts to shifting client preferences and competitive fee dynamics. Is now the time to buy TROW? Find out in our full research report (it’s free). Revenue: $1.91 billion vs analyst estimates of $1.93 billion (8.6% year-on-year growth, 1% miss) Adjusted EPS: $2.57 vs analyst estimates of $2.52 (2% beat) Operating Margin: 28.3%, up from 27.2% in the same quarter last year Market Capitalization: $24.24 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Bill Katz (TD Securities) asked about the impact of lower-fee vehicles and whether mergers or acquisitions could help offset fee compression. CEO Rob Sharps said the firm will continue investing in active equities while pursuing growth in fixed income, alternatives, and direct platforms, and that M&A could play a future role if aligned with strategic objectives. Michael Cyprys (Morgan Stanley) inquired about the digital asset and tokenization strategy. President Eric Veiel explained that digital wallets and tokenized assets are seen as a promising long-term opportunity, with investments focused on meeting client needs and improving operational efficiency. Glenn Schorr (Evercore) sought clarification on the outlook for net flows in the second half of the year. Sharps acknowledged that net flows are likely to be more challenging, citing continued active equity outflows and limited large mandate wins, but highlighted positives in gross flows and international markets. Alexander Blostein (Goldman Sachs) questioned the firm’s long-term approach to expense management given organic growth challenges. CFO Jen Dardis emphasized balancing investments in strategic priorities with ongoing cost control, leveraging AI and process automation to maintain low single-digit controllable expense growth. Dan Fannon (Jefferies LLC) focused on scaling the SMA business. Sharps noted that while the SMA platform is small compared to peers, it is a priority area, with new talent and technology investments aimed at tax optimization and broader platform availability. Looking ahead, the StockStory team will be watching (1) whether net outflows in active equity can be stabilized or offset by continued growth in ETFs and SMAs, (2) the pace of expense discipline and the tangible impact of AI-enabled efficiency improvements, and (3) progress in scaling new product launches, especially in digital assets and partnerships like the Goldman Sachs collaboration. Execution in these areas will be critical to tracking the firm’s ability to adapt to industry pressures and capture emerging growth opportunities. T. Rowe Price currently trades at $113.82, down from $119.28 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, July 31, 2026 at 8:00 a.m. ET Director of Investor Relations - Linsley Carruth Chair and Chief Executive Officer - Rob Sharps Chief Financial Officer - Jen Dardis President, Co-Head of Global Investments and Chief Investment Officer - Eric Veiel Operator: Good morning. My name is Howard. I will be your conference facilitator today. Welcome to T. Rowe Price's second quarter 2026 earnings conference call. All participants will be in listen-only mode until the question-and-answer period. I will give you instructions on how to ask questions at that time. As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes. I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations. Linsley Carruth: Hello. Thank you for joining us today for our second quarter earnings call. The press release and the supplemental materials document can be found on our IR website at investors.troweprice.com. Today's call will last approximately 45 minutes. We'll start the call with our Chair and CEO, Rob Sharps, CFO, Jen Dardis, and President, Co-Head of Global Investments and CIO, Eric Veiel, discussing the company's results. We'll open it up to your questions. We ask that you limit it to one question per participant. I'd like to remind you that during the course of this call, we may make a number of forward-looking statements and reference certain non-GAAP financial measures. Please refer to the forward-looking statement language and the reconciliations to GAAP and the supplemental materials, as well as in our press release in 10-Q. Discussions related to the funds is intended to demonstrate their contribution to the organization's results and are not recommendations. All investment performance references to peer groups on today's call are using Morningstar peer groups and for the quarter that ended June 30, 2026. I'll turn it over to Rob. Rob Sharps: Thank you, Linsley. I'm joined today by Jen Dardis, Chief Financial Officer, and Eric Veiel, Co-Head of Global Investments, Chief Investment Officer, and newly named President of T. Rowe Price. Before Jen and Eric provide an overview of our financials and investment performance, I'd like to share a few thoughts on the quarter and the progress we are seeing across the business. Markets rebounded in the second quarter after a difficult start to the year. We ended the quarter with $1.9 trillion in assets under management and $6.5 billion in Q2 net outflows. Fundamental active equity remains under pressure. We expect that to continue in the second half of the year. Positive flows in May and June, including a large sub-advisory win, reflect client demand in areas where we are investing and gaining traction. For example, we are seeing growing demand for strategies that integrate our fundamental and quantitative platforms and directly leverage our equity research platform. Our integrated equity and fixed income strategies combine fundamental research, quantitative insights, and aim to generate differentiated, consistent returns. Earlier this year, we extended this franchise with two lower tracking error active core equity ETFs. We have also expanded our long-standing equity research franchise, applying our analyst-driven fundamental investment approach across a broader set of markets and asset classes. In addition to our flagship U.S. strategy, the platform now includes international, global, emerging markets, U.S. mid-cap, and SMID strategies. We believe these integrated and risk-controlled active approaches, offered through a variety of investment vehicles, appeal to clients seeking the benefits of active management with lower tracking error. Together, these approaches account for about $200 billion of our assets under management and have added $16 billion of net inflows year to date. We are also seeing momentum in active ETFs and SMAs, where we're expanding to meet the evolving needs of clients, primarily in the wealth channel. In June, we launched the T. Rowe Price Capital Appreciation Market Opportunities ETF, further extending one of our well-established investment suites. In mid-July, we launched the T. Rowe Price Active Crypto ETF, which is an actively managed multi-token exchange-traded product and our first non-investment company ETF. With these launches, our ETF business has grown to 34 funds and $30 billion in assets under management. In addition, we celebrated the three-year anniversary of our first four fully transparent ETFs. Our SMA platform now includes 43 products and $20 billion in assets under management. We're also advancing our strategic alliance with Goldman Sachs. On the 1st of July, we launched the T. Rowe Price Goldman Sachs Private Markets Fund, our first interval fund in collaboration with Goldman Sachs. We completed the first filing for the second fund, a public-private equity interval fund that we expect to launch later this year. We are hearing positive client feedback on the target date sister series and are operationally ready to launch as a CIT when client demand materializes. Finally, we continue to see strong interest in our T. Rowe Price Managed Late-Stage Venture Fund and expect to exceed our target fund size later this year, providing a foundation to build on this platform with a second fund anticipated in 2027. We are making meaningful progress in how we use artificial intelligence across the firm. We are moving beyond isolated use cases and tools and embedding AI directly into end-to-end business workflows with more than 130 AI solutions deployed across the firm and over 70% associate adoption. We are scaling advanced agent-driven capabilities from AI-powered investment research and portfolio insights to sales and client workflows, enhancing decision-making speed and consistency while keeping investment judgment and fiduciary responsibility firmly with our associates. Importantly, this progress is supported by a robust governance framework, strong controls, and ongoing associate upskilling so we can scale AI responsibly. Before I turn to Jen, I want to highlight several recent leadership appointments. As I mentioned, Eric Veiel has been named President. In his expanded role, Eric will help drive enterprise execution of our most critical initiatives and strengthen connection across investments, global distribution, and technology data and operations. He will retain his leadership responsibilities in global investments. Sébastien Page, Head of Global Multi-Asset, is now Co-Head of Global Investments. With his deep multi-asset experience, Séb is well-positioned to advance our work on solutions and outcomes. As we approach our 90th anniversary next year, these changes will sharpen execution across our highest priority initiatives and position the firm for continued growth in the years ahead. I want to thank our associates for their focus, teamwork, and commitment to our clients. Their work is building momentum and strengthening the firm for the long-term. With that, I will ask Jen to cover our financials. Jen Dardis: Thank you, Rob, and hello, everyone. I'll review our second quarter financial results before turning it over to Eric for comments on investment performance. Our adjusted diluted earnings per share for Q2 2026 was $2.57, up from $2.52 in Q1 2026 and $2.24 in Q2 2025. The increase over both prior periods was driven primarily by higher average AUM and higher investment advisory revenue, coupled with lower share count, offset in part by higher expenses. As previously reported, we had $6.5 billion in net outflows in Q2. While we experienced elevated outflows in April, we saw positive flows in both May and June. May flows were driven by a large defined contribution investment-only win into our hybrid target date series, and June flows benefited from a large sub-advisory win into two of the research and integrated equity strategies that Rob discussed. We also saw positive flows from clients in both EMEA and APAC during the quarter. Fixed income, multi-asset, and alternatives each delivered positive net flows in Q2, continuing to demonstrate the breadth of client demand across several areas of our business. Within our growing ETF business, we had $4.4 billion in net inflows. We also continue to see success in our hybrid and blend retirement strategies, which now account for about 25% of our overall target date assets. Our Q2 adjusted net revenue was $1.9 billion, up 2.7% from Q1 2026 and up 8.5% from Q2 2025. The increase was driven by higher AUM, partially offset by a lower change in accrued carried interest, which now includes the carry earned on our late stage venture fund, in addition to the private credit strategies. Investment advisory revenue for the quarter was $1.7 billion, up from both the prior quarter and the prior year quarter on higher AUM levels. Our annualized effective fee rate, excluding performance-based fees, was 38.1 basis points, compared with 38.4 basis points in Q1 2026. The ongoing trend in our effective fee rate continues to reflect changes in asset and vehicle mix, including client demand for lower fee strategies and vehicles, as well as continued pressure from redemptions in higher fee equity strategies and mutual funds. Turning to expenses, Q2 adjusted operating expenses were $1.2 billion, up 4.2% from Q1 2026 and up 4.9% from Q2 2025. Compared to both prior periods, higher market-driven expenses, product and record keeping, and non-recurring G&A costs were primary drivers of the increase. As a reminder, market-driven expenses correlate to changes in AUM or revenue and include variable compensation and costs related to assets distributed through third-party intermediaries. The increase in product and record-keeping costs is largely related to costs reimbursed from our products and offset in administrative fee revenue. Also contributing to the increase from Q2 last year were higher technology occupancy and facilities expenses, partially offset by cost savings initiatives. As we noted in Q1 2026, to better reflect technology spend executed by third parties, we began reporting technology-related professional fees in technology occupancy and facilities, and we adjusted all prior periods presented. Based on the sustained average AUM and revenue trend in the first half of the year, we now expect full-year adjusted operating expenses, excluding carried interest expense, to be up 4%-7% over 2025's $4.6 billion. This increase, coupled with ongoing savings efforts, will allow us to continue to invest in areas of future growth, including ETFs and SMAs, delivering outcome-oriented solutions for clients, enhancing our advice-led offerings, and investing in AI to improve research, decision-making, and operational efficiency. Turning to capital management, during Q2, we bought back $157 million worth of shares, bringing year-to-date buybacks to over $497 million, or nearly 2.5% of our outstanding shares. This brought our share count at the end of Q2 to 213.3 million shares. Our balance sheet remains strong with $4.4 billion of cash and discretionary investments. Our ample cash position gives us the ability to invest in the business and also pursue opportunities that strengthen our long-term competitive position. Now I'll turn it over to Eric for comments on investment performance. Eric Veiel: Thank you, Jen. I'll start by saying that our investment platform remains strong with deep research capabilities, a long-term track record of outperformance, and expanding capabilities across equities, fixed income, multi-asset, and alternatives. Powered by world-class talent and driven by a steadfast commitment to clients, investment excellence remains our top priority. Turning to performance, in the second quarter, over half of our funds beat their peer groups for the one, three, and 10-year time periods, while the five-year missed this mark with 44% of funds beating their peer groups. On an asset-weighted basis, 10-year performance remained strong with 79% of funds outperforming. On a one, three, and five-year basis, 44%, 57%, and 43% outperformed respectively. Our equity funds mirrored the overall fund range with over half of the equity funds beating their peers for the one, three, and 10-year time periods, while the five-year time period fell below this threshold. On an asset-weighted basis, equity funds continued to deliver strong performance for the 10-year time period, while the nearer-term time periods are more challenged. Within our equity franchise, U.S. equity research, global stock, global value, and midcap value stood out as strong performers with top-quartile performance for the three, five, and 10-year time periods. Our fixed income funds continued to deliver strong performance. On an asset-weighted basis, over 75% of the funds outperformed for all reported time periods. Within our fixed income franchise, global multi-sector, institutional floating rate, and several of the muni strategies stood out as strong performers with top-quartile performance for the three, five, and 10-year time periods. In our target date franchise, long-term performance remained strong with 80%, 54%, and 98% of AUM outperforming their peers on a three, five, and 10-year basis. The one-year TDF performance rebounded with 80% of AUM outperforming peers, driven by strong performance in the second quarter when 79% of AUM outperformed peers. Last quarter's strong performance was due to our retirement glide path's higher relative equity exposure, as well as our tactical asset allocation decisions. Turning to alternatives, despite the negativity continuing to surround private credit, OHA's funds generated gains across both institutional and wealth products. CLO strategies rebounded following challenging performance in Q1 but remained down on a year-to-date basis. Distressed and opportunistic funds mostly generated losses in Q2 and had mixed first-half results reflecting the uneven market environment. OHA's liquid credit funds and mandates generated gains on an absolute basis but underperformed their benchmarks, largely driven by several high-conviction positions that experienced increased volatility. Before we take questions, I want to say a word about the 2026 Russell reconstitution. What we saw with the reconstitution in June was not a routine rebalance. It was a significant reshaping of benchmark risk characteristics. There was over $300 billion of turnover, but more importantly, there was a substantial migration of AI-related exposures, momentum factors, and technology leadership across benchmarks. As a result, in the Russell large and mid-cap growth benchmarks, AI-related exposure increased materially, while small cap and value benchmarks simultaneously lost exposure to many of the recent market's strongest performance drivers. The rebalance did not simply reshuffle stocks. It effectively reassigned exposures to some of the most influential themes and factors. That reassignment brought new buyers and sellers into stocks, moving across benchmarks, adding volatility to both the broader market and individual names. When benchmark changes are this abrupt and risk profiles shift meaningfully, it creates opportunity for active management to assess changes through a research-driven lens. Now we'll open the line up for questions. Operator: Yes, sir. Ladies and gentlemen, if you have a question or comment at this time, please press star one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one again. Again, if you have a question or comment at this time, please press star one on your telephone keypad. As a reminder, we've asked that you please limit yourself to one question per participant. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Bill Katz from TD Securities. Mr. Katz, your line is open. Bill Katz: Okay. Thank you very much for taking the questions. Eric, once again, congratulations on the new position. Maybe a big-picture question for you. As I listened to your prepared comments, I hear a lot of growth in lower-fee vehicles, and your comments said active equity is going to remain under pressure. How are you thinking strategically to reshape the business given the fee rate is going down and the expense growth is still pretty high, all else being equal? How might M&A help shape that thought process? Thank you. Rob Sharps: Bill, I'll start. From a strategic perspective, we want to make sure that we're delivering world-class investment capabilities in ways that are aligned with our clients' needs. I would acknowledge that over a relatively long period of time, active equities lost meaningful share to passive, and you've had a pretty meaningful vehicle migration away from open-ended mutual funds, in the taxable wealth channel in particular, to ETF and SMA, which Has put pressure on fees. In retirement, I would say we're seeing a similar trend where you have a shift from fully active to blend and hybrid, which also is putting pressure on fees. I think strategically what we'd really like to do is, first of all, invest in maintaining our world-class capabilities from an investment perspective and make sure that we can deliver on our existing client commitments, that we have the talent and resources to continue to generate great results. The active equity business, even though it's been in outflow, is extraordinarily important to us. $900 billion of our AUM is in direct active equity, and it also has an impact on the underlying target date fund business. We're in no way, shape, or form going to de-emphasize that business. We think it's going to continue to be important for a very, very long period of time. That said, we do want to grow in fixed income, which is balancing just from a market exposure perspective. Active fixed income continues to grow, and I think we're making very substantial progress there. We want to grow in alternatives, and we've talked about our approach to that, whether it's organic with our late-stage venture capability, whether it's through acquisition, for example OHA or through partnership with our Goldman collaboration. In each of those instances, I feel we're making substantial progress. I would say strategically we also want to invest in our direct platforms. We see having modern digital interface and capability advice in our direct individual and our record-keeping platforms as increasingly important and as a substantial opportunity. Advice is an opportunity to diversify the revenue stream of the organization. I would say in each of those priorities, whether it's diversification from an asset class and capability perspective, fixed income and alternatives, whether it's diversification from a vehicle perspective, ETF and SMA, or as we lean into our direct platforms, there will be organic investment in those businesses, and that may be part of what you're referring to with regard to expense growth, and we can go into that a little bit more detail to the extent that there's interest. We'll also continue to evaluate inorganic opportunities. Industry consolidation continues at pace. We see a lot of things. We have a very high bar. To the extent that there are things that we think are financially compelling and strategically aligned with those objectives, then I can certainly see strategic M&A playing a part in reshaping the business. Operator: Thank you. Our next question or comment comes from the line of Michael Cyprys from Morgan Stanley. Mr. Cyprys, your line is now open. Michael Cyprys: Great. Thank you. Good morning. With the launch of your actively managed crypto ETF, you've taken a big step in building your digital asset capabilities. As you look out over the next several years, how do you see that strategy evolving alongside potential emergence of tokenized stocks and bonds? If tokenized assets become more widely adopted, do you expect digital wallets to become an important client interface? How does that influence your long-term distribution and wallet strategy? Eric Veiel: Yeah. Hi, Mike. Good morning. This is Eric. Happy to take that one. We think tokenization represents a structurally important evolution in the investment management industry overall. Our digital assets group, which we stood up four years ago, is actively engaging with industry groups, partners, and intermediaries as we explore opportunities in tokenization. To your question specifically, if tokenized assets become more widely adopted, then yes, I think digital wallets will become an increasingly important client interface. The direction of travel here, seen in the growth of tokenized stocks and the work that the DTCC is pursuing towards tokenizing underlying securities and ultimately funds, I think, is real. We have hands-on digital asset capabilities. We've been working with digital asset wallets, and we see the potential here. Ultimately, as with our broader digital assets approach, our goal is to align our tokenization strategy with our broader firm-wide objectives. That means identifying ways to use this technology, I would say, in three ways. First, helping us to meet the needs of our clients. Second, reaching new investors. Third, increasing operational efficiency. I think there's opportunities in all of these areas. Digital asset wallets and tokenized assets and funds will ultimately, I think, allow us to deliver more customized solutions across client relationships. We recognize this is going to take time, but we do think it's an incredibly promising area, and we are investing behind it. Operator: Thank you. Our next question or comment comes from the line of Glenn Schorr from Evercore. Mr. Schorr, your line is open. Glenn Schorr: Thanks so much. I guess a question wrapping up some of the flow stuff. Maybe you had the large DC win in May, you had the big equity strategies in June. Maybe you could size those as we build towards getting towards the second half outlook, meaning active equity, less outflows, good, but you do have some seasonality potentially and rebalancing in the back half in equity land. A little color on July flows, the institutional pipeline, and your thoughts on second half overall. That'd be great. Thanks. Rob Sharps: Glenn. Thank you for the question. We're pleased that we made some progress and brought some substantial new relationships into the organization in the second quarter. I would say we clearly have more work to do. We expect net flows in the second half of the year to be meaningfully more challenging than the first half, primarily due to a number of the things that you've cited. Ongoing outflows in active equity, especially in open-ended mutual funds and a handful of our growth strategies. The absence of those outsized mandates, which funded in May and June and benefited first half flows. As you alluded to, portfolio rebalancing away from equities, reflecting the significant year-to-date gains, and that will largely impact flows in the third quarter. Finally, I'd note that despite the fact that our overall target date pipeline is up substantially, there's an air pocket in the late-stage pipeline, which would suggest that we'll see a lull in TDF flows in the second half. That should give you a sense for what we see in Q3 and Q4. I do want to highlight, though, that we see significant positives. We expect 2026 to be a record year for gross flows, reflecting strong interest in a broad range of our investment strategies. As I talked about in my earlier remarks, we have very strong interest in our lower tracking error offerings, integrated equity, and our equity research suite. We're seeing substantial progress in active ETFs, and we think there's a very long runway there. In fixed income, we're anticipating consistent and sustained net flows across a range of strategies and vehicles. We're anticipating building momentum in alternatives as OHA and our late-stage venture capability invest committed capital and continue to raise additional capital, and we begin to scale the T. Rowe Price Goldman Sachs Public Private strategies. I'd also note the good work that our EMEA, APAC teams are doing and the fact that we have had positive net flows in those geographies. There's a lot of good in a number of areas. Given the size of our active equity book and our mutual fund book, as I said at the outset, we've got substantial more work to do. Glenn Schorr: Thanks so much, Rob. Operator: Apologies. Thank you. Our next question or comment comes from the line of Alexander Blostein from Goldman Sachs. Mr. Blostein, your line is now open. Alexander Blostein: Oh, hi. Good morning. Thank you for taking the question. I wanted to get your perspective on maybe a longer-term expense management approach, especially in light of some of the advances we see with technology and AI. Broadly, T. Rowe had a fairly consistent framework. I think about 1/3 of your expense base is variable, about 2/3 is fixed. You guys are investing in the business, obviously, to improve the growth. In light of your comments around the top line, and we obviously know the organic growth challenges there, are there more significant action you could take to bring down the pace of expense growth more structurally? Jen Dardis: Thanks for the question. We'll start by saying we have been focused on purposeful expense management, looking at ways to drive productivity and efficiency. As you mentioned, technology and AI are a critical part of that. What we've been doing, though, is having steps to be able to allow us to both invest behind our strategic priorities and maintain controllable expense growth in the low single-digits. We focused right now on 2026 and 2027. That was some guidance we gave last year, and we continue to stand behind those numbers. As you mentioned, about 1/3 of our expense base is market driven, and that'll correlate with asset or revenue growth over time. Those controllable expenses make up about 2/3 of our expense base. As we think about that 1/3 of expenses, the two biggest items in there are year-end variable compensation and expenses related to assets distributed through third parties. The variability of those expenses is what's driven the guide to 4%-7% in 2026. As we think about the expense management efforts we're taking, we do want that to be a balance, again, focused on things that'll drive longer-term productivity and efficiency. Things that we've talked about over the last two years have been things like leveraging trusted third parties for tech functions where they can provide scale. These are things like our help desk and infrastructure. We've been doing broader reviews of processes to streamline and leverage technology to introduce automation. We've had a thoughtful review of certain vehicles and strategies where we have minimal client interest or impact to be able to close those, and then managing down some of our excess capacity in our real estate portfolio to match our associate population where we've had changes in headcount. I think we'll continue to take those steps to be able to balance. Again, the purpose of doing this is to allow us to continue to invest back in the business in areas for growth. On a net basis, we think that puts us in a low single-digit posture for controllable expense. Rob Sharps: I'll add a little bit here. We're balancing the short-term and the long-term. In the short-term, we are laser focused on using shareholder resources efficiently and continuing to drive cost savings. We need to create the capacity to invest in our business. As Jen mentioned, we have a program underway, which we've talked about in the past from a cost savings perspective, and I think we're executing against that. Directly to your question, I believe we'll find ways to extend that, leveraging technology, and in particular, AI. I think that should allow us to limit growth in our base expenses and free up resources for us to continue investing in the business. We want to invest in our talent. We want to invest in new capabilities. We want to invest in deeper connectivity with clients. We've talked about a number of those areas and a number of those priorities. I think that AI is a differentiating technology that will allow us to accelerate the pace of improvement in those areas and with those priorities. Operator: Thank you. Our next question or comment comes from the line of Dan Fannon from Jefferies LLC. Mr. Fannon, your line is now open. Dan Fannon: Great. Thanks. Good morning. Wanted to talk about the SMA opportunity. I think you mentioned, Robbie, you've got $20 billion in AUM. That's pretty small relative to your peers, and kind of we think about tax efficiency and the kind of growth and demand for that process and/or investment strategy. Can you talk about your go-to-market or how you expect or plan to kind of scale the SMA business for you over the next couple of years? Rob Sharps: Sure. Thank you for the question. We see a lot of interest and a lot of opportunity here. As you said, $20 billion in AUM. Maybe small relative to peers. I'd say we were a latecomer to this business, we're building momentum rapidly. We've got 43 strategies in market placed with 35 sponsors. We're available on a number of partner platforms. From a tax efficiency perspective, next week we will launch our own capability in conjunction with a vendor partner. We're developing partnerships with most of the existing platforms. T. Rowe Price managed SMAs will be available with tax optimization broadly as we work our way throughout the rest of this year and into next year. This is a priority for us. As I said, I would acknowledge that it is comparatively small when you look at our overall business and perhaps some of our peers that have met with success. We're getting very encouraging feedback and very encouraging receptivity as we place more emphasis on this and have invested behind it. We've made it a pretty significant priority. We've brought on some talent from the outside to focus on this, I'm looking forward to the progress that we'll make going forward. Dan Fannon: Thank you. Operator: Thank you. Our next question or comment comes from the line of Ben Budish from Barclays. Mr. Budish, your line is now open. Ben Budish: Hi, good morning, and thanks for taking the question. I wonder if you could talk maybe a little bit about the distribution strategy for the T. Rowe Goldman Sachs Fund. Just curious how the marketing and distribution coordination will work. Any kind of economic details you can share. I know it's still quite early, but just curious what we should maybe expect as we watch this fold out over the next couple of months. Thank you. Rob Sharps: Yeah. If you take a step back, there are a number of components to the work that we're doing with Goldman, and I would say that overall, we're very pleased with the joint progress. From a model account perspective, we have five models launched. We're approaching $500 million in AUM. They continue to grow. We're very focused on platform placement. That was the product that was first to market and the one where I would say that we've made the most progress. We are in market also with a T. Rowe Price advised multi-alternatives interval fund. That really just went effective at the beginning of the month. We and Goldman are taking that directly to the wealth channel. We're kind of educating our regional investment consultants in the opportunity here, and feel like the feedback that we've gotten so far is encouraging, but it's very early days. We're also in registration for a public-private equity interval fund that we hope to bring to market later this year. Again, the distribution responsibility is joint, but as the advisor, T. Rowe Price will be on point for coordinating that. Goldman's more taken the lead with regard to the model accounts. The final component is the target date series, which will incorporate alternatives. T. Rowe Price is on point for that. It will launch as a CIT. We're operationally ready, and at this point, we've engaged with a number of clients and prospects. I would say the feedback is strong and the clients are interested, kind of stay tuned for more updates with regard to progress there. I'm not sure if Eric or Jen, you'd have anything to add. Jen Dardis: No. The only thing I might say from an economic perspective, I mean, we designed this so that we were each contributing, both from an investment management perspective and from a distribution perspective, so that it would be fair and balanced in terms of the economics that are shared between the two firms. Rob Sharps: Yeah, I do think we have some complementary strengths, which was one of the reasons that made Goldman Sachs an attractive partner here. There are a number of places in wealth where we have very deep relationships, and a number of places where Goldman has very deep relationships. I think together, we should be able to drive adoption and get more attention than either of us would be able to individually. Ben Budish: All right. Thank you both. Operator: Thank you. Our next question or comment comes from the line of Alex Bond from KBW. Mr. Bond, your line is now open. Alex Bond: Hey, good morning, everyone. Thanks for taking the question. Wanted to ask around the ETF suite. You highlighted the $4 billion of flows in the quarter. With momentum continuing to grow there, just wondering if you can update us on how you're thinking about the path forward here in terms of launching new funds versus focusing on scaling your existing funds. Also maybe if there are other areas here, I guess, in light of the recent launch of the actively managed crypto strategy, where you think you can provide differentiated products that can drive client demand. Thank you. Rob Sharps: Well, first, thank you for the question. I mean, this is among our top priorities, and I would say among our biggest opportunities. I mean, active ETFs, it's a category that we still think is in relative early innings, has a very long runway and very substantial growth in an area where we believe we have the right to win. As you mentioned, $4.4 billion in flows in the quarter, over $30 billion in AUM. We have 34 ETFs in our lineup now with strong overall investment performance. I would say from a product roadmap perspective, this is a priority, but that you should anticipate that the pace of launch will slow to an extent, particularly as it relates to the U.S. We're looking at ETFs in other geographies, we're really going to focus on scaling our existing portfolios of ETFs. We feel like we're in a place where we have coverage of all of the key Morningstar categories. We have component building blocks for asset allocation models, which we think is a very big opportunity and a big driver of the growth of active ETFs. We also have a number of innovative offerings, including satellite and thematic offerings. I would point to what we're doing with our active crypto offering, what we're doing in a number of sector-oriented or thematic ETFs with things like innovations leaders or in healthcare technology or in natural resources. We think this is a very big opportunity. We think it's an area that we really can deliver differentiated performance and a differentiated value proposition. Ultimately, it's our objective to make this a much, much bigger business than it is today. Eric Veiel: Yeah, I would just add, specific to our crypto aspirations, we intentionally designed this strategy, TKNZ, to have an investable universe that can expand over time to provide broad asset class exposure in this very rapidly evolving market. We'll consider additional follow-on strategies there as and when we see the opportunity to add value through active management. We're also looking at different opportunities for ETF conversion, where we think that makes sense, where it fits in with our existing clients, and we can do it in a way that is beneficial both to them and to us. We're looking at some other opportunities as well. Rob Sharps: I would say that one of the areas that we're really focused on unlocking is ETFs as building blocks in model accounts. There's a lot of work that we're doing here to make sure that we're partnered with the right platforms, that we have the right sales specialists supporting our regional investment consultants in the field, that we're leveraging our multi-asset and strategic portfolio design, tactical asset allocation capability. This is a big opportunity for us to really bring all of our credentials as a solutions provider to our partners in the wealth channel and deliver across a number of value drivers. Alex Bond: Great. Thank you for the color there. Operator: Thank you. Our next question or comment comes from the line of Patrick Davitt from Autonomous Research. Mr. Davitt, your line is open. Patrick Davitt: Hey, good morning, everyone. Jen, on the expense guide, I think you said it was based on first half average AUM. If we're modeling off of end of period, which is 5% higher, should we be thinking like 1%-2% higher than that guide? Is that not the right way to think about it? Thank you. Jen Dardis: No, thanks for the question. This is always tricky given volatility in markets, but we try to set the range based on the range of market levels that we see during the quarter. We think about the middle based on the average, and then there's a range around that. Operator: Thank you. Our next question or comment comes from the line of Michael Cho from JPMorgan. Mr. Cho, your line is open. Michael Cho: Hi, good morning. Thanks for squeezing me in here. Thanks for taking my question. I wanted to follow-up on the active ETF discussion. You gave some color around the product focus and priorities. I guess as you think about demand and areas for incremental or further penetration from a distribution perspective, I also think you mentioned non-U.S. as well, but I was wondering if you have more opportunities or thinking about areas for deeper partnerships where T. Rowe can actually drive more growth and take some more share. Thanks. Eric Veiel: Yeah, Michael, thanks for the question. I think it's really important to just reemphasize something that we were discussing earlier, which is that when you look at the active ETF industry, a significant amount of that growth is coming through model delivery. In model delivery, you have both custom models and you have off-the-shelf models. We're pushing hard on both of those areas, and in those areas, your relationships with the different technology providers is really important. We're working hard on building out those relationships and developing those as deep as we can because that ultimately gets you access to those advisors. We're also working on some technology that will give our portfolio managers the ability to use that solutions capability that we have developed through the years through our multi-asset team in a more effective and efficient way, we think, to really do well in the customized model area. We are certainly looking at partnerships and engagements with different providers in the ecosystem to try to drive that ETF growth specific to models. Rob Sharps: Yeah. I would highlight a handful of other things. I mean, one, I think if you look at areas where we've got a very strong investment track record and we've been strong in mutual funds and where there's a big opportunity in ETF, I would highlight municipal in fixed income as an area where we think there's a very, very substantial opportunity. I think our equity research offerings, we have the U.S. equity research offering in market as an ETF. I think we'll look to expand that range over a period of time. I would also say where you've seen substantial growth or where you have category leaders with a unique investment proposition or a unique value proposition that give people access to a risk-reward profile or an asset class that they otherwise might not be able to get access to as conveniently. I do think we have a number of things that we're developing or have launched but are yet to scale that would fit into that category. Again, as I said at the outset, this is one of our biggest opportunities and one of our highest priorities. I think the opportunity as it stands primarily is in the U.S. wealth channel. We are looking at opportunities outside of the U.S. where this is a trend in other geographies as well. Michael Cho: Great. Thank you. Operator: Thank you. I'm showing no additional questions in the queue at this time. Ladies and gentlemen, this concludes today's presentation. I'd like to thank you for your participation. You may now disconnect. Everyone, have a wonderful day. Speakers stand by. Before you buy stock in T. Rowe Price Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and T. Rowe Price Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends T. Rowe Price Group. The Motley Fool has a disclosure policy. T. Rowe Price (TROW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. T. Rowe Price Group (TROW) has been in focus after reporting second quarter 2026 results that exceeded analyst expectations on both earnings and revenue. Investors are weighing what this earnings beat means for the stock. See our latest analysis for T. Rowe Price Group. T. Rowe Price Group’s recent 2.01% 1 day share price return after the earnings beat sits alongside a 90 day share price return of 11.78% and a 1 year total shareholder return of 15.58%, while the 5 year total shareholder return is down 33.65%. This indicates that nearer term momentum has picked up even as longer term holders have experienced weaker results. If this earnings reaction has you thinking about where else capital could work, it might be worth scanning for other opportunities in wealth and asset management by checking out 19 top founder-led companies The latest jump in T. Rowe Price Group’s share price lines up with stronger reported earnings, yet short term moves can also reflect changing sentiment. How does today’s price stack up against the fundamentals? The most followed narrative for T. Rowe Price Group pegs fair value at $110.00, slightly below the last close of $115.79. This helps frame the current optimism in context. Read the complete narrative. Curious what sits behind that fair value for T. Rowe Price Group. The narrative focuses on measured revenue growth, firmer margins, and a lower future earnings multiple than many peers. The balance between these moving parts is where the full story becomes more detailed. Result: Fair Value of $110.00 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to watch for ongoing shifts toward low fee passive products and any sustained fee compression that could pressure T. Rowe Price Group’s margins. Find out about the key risks to this T. Rowe Price Group narrative. The consensus narrative has T. Rowe Price Group as about 5.3% overvalued relative to a fair value of $110.00. Yet the current P/E of 11.4x sits well below the US Capital Markets industry on 38.3x and a peer average of 21.2x, and also below a fair ratio of 13.8x. That gap suggests the market is pricing in meaningful business risk, so the key question is whether you think those concerns are already more than reflected in today’s multiple. See what the numbers say about this price — find out in our valuation breakdown. The mixed sentiment around T. Rowe Price Group makes this a moment to look closely at the numbers yourself and move with conviction. To see which potential upsides our work highlights, take a closer look at the 3 key rewards. If T. Rowe Price Group has sharpened your focus, use this momentum to review fresh ideas before the next move in markets leaves you reacting instead of prepared. Spot potential value opportunities early by scanning 52 high quality undervalued stocks to find companies that pair solid fundamentals with prices that may not fully reflect their strengths. Strengthen your income focus by reviewing 7 dividend fortresses and see which high yielding companies combine payouts with balance sheet support. Keep risk in check by assessing 84 resilient stocks with low risk scores and focus on investments that score well on resilience so your portfolio is not leaning too heavily on a single outcome. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TROW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. T. Rowe Price Group stock has recovered over the past three years, yet after a share price that is still down 33.7% over five years, the current valuation screens as cheap on both intrinsic value checks and earnings multiples. The question for investors is whether that apparent discount properly reflects the risks around its investing track record and fee based business model. The share price decline of 33.7% over five years suggests the market has taken a cautious view on T. Rowe Price Group despite more recent gains. Recent headlines around its role as an investor in Airtable and ongoing interest in its small and mid cap strategies can support interest in future fee income, while any further write downs or weak performance from such positions may weigh on how sustainable that income looks. The stock currently scores 5 out of 6 on Simply Wall St's valuation checks, which points to a broader set of indicators that lean cheap for T. Rowe Price Group, as shown in the valuation summary. The issue now is whether the current discount to the Excess Returns intrinsic value estimate and the supportive multiple checks together indicate a genuine margin of safety in T. Rowe Price Group or simply reflect underlying business risks that the market is pricing in correctly. T. Rowe Price Group delivered 15.3% returns over the last year. See how this stacks up to the rest of the Capital Markets industry. The Excess Returns model looks at how much profit T. Rowe Price Group can earn on its equity above the cost of that capital. For T. Rowe Price Group, the inputs point to a business that is expected to earn more than its equity investors require. The model uses a Book Value of $51.58 per share and a Stable EPS of $9.53 per share, based on weighted future Return on Equity estimates from 4 analysts. With an Average Return on Equity of 18.32% versus a Cost of Equity of $4.02 per share, the estimated Excess Return is $5.51 per share. That excess is capitalised on a Stable Book Value of $52.00 per share to reach an intrinsic value estimate of about $183 per share. Compared with the current share price, this Excess Returns valuation implies T. Rowe Price Group is 36.9% undervalued. Because the Airtable sale crystallised weaker outcomes for some private investments, that kind of event may help explain why the market is still applying a discount even where the model points to solid excess returns. On this Excess Returns view, T. Rowe Price Group stock appears undervalued relative to the earnings power implied by its equity base. Our Excess Returns analysis suggests T. Rowe Price Group is undervalued by 36.9%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for T. Rowe Price Group. The P/E ratio fits T. Rowe Price Group well because earnings are the core driver of its fee based asset management business. Right now the stock trades on about 11.4x earnings, which is roughly half the broader capital markets industry average of 38.3x and also well below the peer group average of 21.2x. The gap is wide even after accounting for different business mixes across the sector. A tailored fair P/E ratio for T. Rowe Price Group sits at about 13.8x, based on its size, profitability profile and risk factors. That is still meaningfully above the current 11.4x, which suggests the stock trades at a discount even before comparing it with the higher industry and peer multiples. On the P/E multiple, T. Rowe Price Group stock appears undervalued relative to both its own fair ratio and to capital markets peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for T. Rowe Price Group act as the bridge from this valuation puzzle to concrete scenarios, since they spell out what future growth, margins and earnings would need to look like for the stock to be worth materially more or less than today's price on the Community page. Each Narrative ties a fair value estimate to a particular combination of potential catalysts and risks for T. Rowe Price Group's business so you can track which storyline aligns with actual outcomes over time. The community is split on T. Rowe Price Group, with one camp focused on new products and partnerships and the other worried about pressure on the core active franchise. Bull case: 7% undervalued Read the full Bull Case to see why T. Rowe Price Group could be undervalued Bear case: 5% overvalued Read the full Bear Case to see why T. Rowe Price Group could be overvalued Do you think there's more to the story for T. Rowe Price Group? Head over to our Community to see what others are saying! T. Rowe Price Group currently appears undervalued based on both the Excess Returns intrinsic value estimate and current earnings multiples, which point in the same direction. The key question is whether that discount reflects a genuine margin of safety or continuing concerns about fee pressure and active fund outflows. For you, the decision depends on whether T. Rowe Price Group can maintain attractive excess returns on equity and keep its fee-based model resilient as investor preferences evolve. If those assumptions hold, the current gap between price and valuation models could eventually close. If they do not, the stock may remain discounted for a reason. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TROW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in T. Rowe Price Group, Inc.? Here are five stocks we like better. Q2 earnings improved: Adjusted diluted EPS rose to $2.57 from $2.24 a year earlier, while adjusted net revenue increased 8.5% year over year to $1.9 billion, supported by higher average assets under management. Flows remained challenging: T. Rowe Price ended the quarter with $1.9 trillion in AUM and $6.5 billion in net outflows, though it recorded positive flows in May and June. Management expects active-equity pressure and more difficult net flows in the second half of 2026. Growth investments continue: The firm is expanding ETFs, separately managed accounts, alternatives and advice-led offerings; its ETF platform reached $30 billion in AUM, including $4.4 billion of second-quarter inflows. T. Rowe Price also repurchased $157 million of stock during the quarter. Worried About a Fading Rally? Consider These 3 Dividend Stocks T. Rowe Price Group (NASDAQ:TROW) reported second-quarter 2026 adjusted diluted earnings per share of $2.57, up from $2.52 in the first quarter and $2.24 a year earlier, as higher average assets under management and investment advisory revenue outweighed increased expenses. The asset manager ended the quarter with $1.9 trillion in assets under management and $6.5 billion in net outflows. Chair and CEO Rob Sharps said markets rebounded during the quarter after a difficult beginning to the year, while fundamental active equity strategies remained under pressure. He said the company expects that pressure to continue in the second half of 2026. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 10-year yield is below 4.5%...these dividend growth yields aren’t However, T. Rowe Price recorded positive flows in May and June, including a large defined-contribution investment-only mandate for its hybrid target-date series in May and a large sub-advisory mandate in research and integrated equity strategies in June. The company also reported positive client flows in Europe, the Middle East and Africa, as well as Asia-Pacific. Chief Financial Officer Jen Dardis said adjusted net revenue was $1.9 billion in the second quarter, increasing 2.7% from the first quarter and 8.5% from the prior-year period. Investment advisory revenue totaled $1.7 billion, rising from both comparison periods on higher AUM. → Microsoft Just Flipped the AI Spending Narrative Overnight The company’s annualized effective fee rate, excluding performance-based fees, declined to 38.1 basis points from 38.4 basis points in the first quarter. Dardis attributed the continuing fee-rate pressure to asset and vehicle mix changes, client demand for lower-fee strategies and vehicles, and redemptions from higher-fee equity strategies and mutual funds. Adjusted operating expenses were $1.2 billion, up 4.2% sequentially and 4.9% year over year. The increase reflected higher market-driven costs, product and record-keeping expenses, and nonrecurring general and administrative costs. Higher technology, occupancy and facilities expenses also contributed to the year-over-year increase, partly offset by savings initiatives. → Carrier Earnings Could Send the Stock to a New All-Time High Based on average AUM and revenue trends in the first half, T. Rowe Price now expects full-year adjusted operating expenses, excluding carried-interest expense, to rise 4% to 7% from 2025’s $4.6 billion. Dardis said the company intends to continue investing in ETFs, separately managed accounts, outcome-oriented products, advice-led offerings and artificial intelligence while aiming to keep controllable expense growth in the low single digits. During the quarter, T. Rowe Price repurchased $157 million of stock, bringing year-to-date repurchases to more than $497 million, or nearly 2.5% of shares outstanding. The company ended the quarter with 213.3 million shares outstanding and $4.4 billion in cash and discretionary investments. Sharps said T. Rowe Price is pursuing growth across fixed income, alternatives, ETFs, SMAs and direct platforms, while continuing to support its active equity franchise. Direct active equity accounts for about $900 billion of the company’s AUM, he said, and remains important despite continued outflows. The company’s integrated equity and fixed-income strategies, which combine fundamental research and quantitative insights, represent about $200 billion in AUM and generated $16 billion in net inflows year to date. T. Rowe Price launched two lower-tracking-error active core equity ETFs earlier this year. The ETF platform expanded to 34 funds with $30 billion in AUM, including $4.4 billion of net inflows during the second quarter. In June, the company launched the T. Rowe Price Capital Appreciation Market Opportunities ETF. In mid-July, it launched the T. Rowe Price Active Crypto ETF, an actively managed multi-token exchange-traded product and the firm’s first non-investment-company ETF. Sharps said the pace of U.S. ETF launches is expected to slow as the firm focuses more heavily on scaling its existing lineup. He identified ETF use as building blocks in wealth-management model portfolios as a major opportunity. President, Co-Head of Global Investments and CIO Eric Veiel added that the company is building relationships with technology providers and platforms to expand its reach in both customized and off-the-shelf models. The separately managed account business included 43 products and $20 billion in AUM at quarter-end. Sharps said the company was a late entrant to the market but has placed strategies with 35 sponsors and plans to launch its own tax-efficiency capability with a vendor partner. T. Rowe Price also advanced its alliance with Goldman Sachs. The firms launched the T. Rowe Price Goldman Sachs Private Markets Fund, their first interval fund collaboration, on July 1. A public-private equity interval fund is in registration and expected to launch later this year. Sharps said the firms have also launched five model portfolios that are approaching $500 million in AUM. Veiel said more than half of T. Rowe Price funds outperformed their Morningstar peer groups over one-, three- and 10-year periods, while 44% outperformed over five years. On an asset-weighted basis, 79% of funds outperformed over 10 years, compared with 44%, 57% and 43% over one, three and five years, respectively. Fixed-income performance was stronger on an asset-weighted basis, with more than 75% of funds outperforming in each reported period. Veiel highlighted global multi-sector, institutional floating-rate and several municipal strategies for top-quartile three-, five- and 10-year results. Sharps cautioned that net flows will become “meaningfully more challenging” in the second half. He cited continued active-equity outflows, the absence of the large mandates that supported first-half results, expected portfolio rebalancing away from equities after market gains, and a late-stage lull in the target-date pipeline. Still, he said the company expects 2026 to be a record year for gross flows, supported by client demand across lower-tracking-error strategies, active ETFs, fixed income, alternatives and international markets. T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager. The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "T. Rowe Price Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

T. Rowe Price (TROW) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.52 per share. This compares to earnings of $2.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.98%. A quarter ago, it was expected that this financial services firm would post earnings of $2.37 per share when it actually produced earnings of $2.52, delivering a surprise of +6.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. T. Rowe, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $1.91 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.6%. This compares to year-ago revenues of $1.72 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. T. Rowe shares have added about 16.5% since the beginning of the year versus the S&P 500's gain of 8.7%. While T. Rowe has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for T. Rowe was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.55 on $1.96 billion in revenues for the coming quarter and $10.11 on $7.72 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, TPG Inc. (TPG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of -14.5%. The consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level. TPG Inc.'s revenues are expected to be $565.65 million, up 14.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report TPG Inc. (TPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

T. Rowe Price Group, Inc.’s TROW second-quarter 2026 adjusted earnings per share (EPS) of $2.57 surpassed the Zacks Consensus Estimate of $2.52. Further, the bottom line increased 14.7% year over year. TROW's results benefited from higher investment advisory fees and record assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind. The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $632 million, which rose 25.1% from the prior-year quarter. Net revenues rose 10.7% year over year to $1.91 billion. However, the top line missed the Zacks Consensus Estimate of $1.92 billion by 0.66%. Investment advisory fees rose 11.3% year over year to $1.74 billion. Capital allocation-based income was $11.9 million against a loss of $0.4 million in the prior-year quarter. Administrative, distribution, servicing and other fees declined 3.7% year over year to $144.2 million. Total operating expenses increased 9.8% year over year to $1.37 billion in the reported quarter. On an adjusted basis, operating expenses were $1.20 billion, up 4.9% year over year. As of June 30, 2026, total AUM reached a record $1.89 trillion, up 12.9% year over year. In the second quarter, net market appreciation and income of $190.2 billion favorably impacted T. Rowe Price’s AUM. However, net cash outflows were $6.5 billion. The company had substantial liquidity, including cash and cash equivalents of $3.23 billion as of June 30, 2026, up from $3.06 billion as of June 30, 2025. This will enable TROW to keep investing. T. Rowe Price returned $441 million to shareholders through recurring quarterly dividends and share repurchases in the second quarter. TROW’s record AUM balance, higher investment advisory fees and positive capital allocation-based income are likely to support top-line growth. Its broadening distribution reach and efforts to diversify the business through acquisitions and product enhancements further support growth. A substantial liquidity position enables the company to continue investing and sustain capital distributions. However, persistent net cash outflows and an elevated expense base remain concerns. T. Rowe Price Group, Inc. price-consensus-eps-surprise-chart | T. Rowe Price Group, Inc. Quote Currently, TROW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Invesco’s IVZ second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line increased 97.2% from the prior-year quarter. IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in AUM balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind. Ameriprise Financial’s AMP second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter. Results benefited from higher revenues and an improvement in AUM and assets under administration balances to record levels. However, an increase in expenses was a headwind for AMP. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Assets Under Management (AUM): $1.9 trillion at the end of Q2 2026. Net Flows: $6.5 billion in net outflows for Q2 2026. Adjusted Diluted EPS: $2.57 for Q2 2026, up from $2.52 in Q1 2026 and $2.24 in Q2 2025. Adjusted Net Revenue: $1.9 billion, up 2.7% from Q1 2026 and up 8.5% from Q2 2025. Investment Advisory Revenue: $1.7 billion for the quarter, up from both prior periods. Annualized Effective Fee Rate: 38.1 basis points, excluding performance-based fees, compared with 38.4 basis points in Q1 2026. Adjusted Operating Expenses: $1.2 billion, up 4.2% from Q1 2026 and up 4.9% from Q2 2025. Share Buybacks: $157 million worth of shares repurchased in Q2, bringing year-to-date buybacks to over $497 million. Share Count: 213.3 million shares at the end of Q2. ETF Net Inflows: $4.4 billion in Q2 2026. ETF Business: Grew to 34 funds and $30 billion in AUM. SMA Platform: Includes 43 products and $20 billion in AUM. Warning! GuruFocus has detected 9 Warning Signs with TROW. Is TROW fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. T. Rowe Price Group Inc (NASDAQ:TROW) reported adjusted EPS of $2.57 for Q2 2026, up from $2.52 in Q1 2026 and $2.24 in Q2 2025, driven by higher average AUM and investment advisory revenue. The company saw positive net flows in May and June, including a large sub-advisory win, and positive flows from clients in both EMEA and APAC during the quarter. Fixed income, multi-asset, and alternatives each delivered positive net flows in Q2, demonstrating breadth of client demand across several business areas. The ETF business grew to 34 funds and $30 billion in AUM, with $4.4 billion in net inflows during the quarter, and the SMA platform expanded to 43 products and $20 billion in AUM. The strategic alliance with Goldman Sachs is advancing, with the launch of the first interval fund, a second fund in registration, and positive client feedback on the target date sister series. The company is making meaningful progress in AI, with more than 130 AI solutions deployed and over 70% associate adoption, enhancing decision-making speed and consistency. Long-term investment performance remains strong, with 79% of funds outperforming on an asset-weighted basis over the 10-year period, and fixed income funds showing over 75% outperformance for all reported time periods. The company repurchased $157 million worth of shares in Q2, bringing year-to-date buybacks to over $497 million, or nearly 2.5% of outstanding shares. The balance sheet remains strong with $4.4 billion of cash and discretionary investments, providing ample capacity for investment and potential inorganic opportunities. The company expects 2026 to be a record year for gross flows, reflecting strong interest in a broad range of investment strategies, including lower tracking error offerings and integrated equity strategies. T. Rowe Price Group Inc (NASDAQ:TROW) experienced $6.5 billion in net outflows in Q2 2026, with elevated outflows in April, and expects net flows in the second half of the year to be meaningfully more challenging than the first half. Fundamental active equity remains under pressure, with ongoing outflows expected to continue in the second half of the year, particularly in open-ended mutual funds and a handful of growth strategies. The annualized effective fee rate declined to 38.1 basis points from 38.4 basis points in Q1 2026, reflecting ongoing pressure from client demand for lower fee strategies and vehicles. Adjusted operating expenses increased 4.2% from Q1 2026 and 4.9% from Q2 2025, driven by higher market-driven expenses, product and record-keeping costs, and non-recurring G&A costs. The five-year investment performance was challenged, with only 44% of funds beating their peer groups on an asset-weighted basis, and equity funds' nearer-term performance is under pressure. OHA's distressed and opportunistic funds mostly generated losses in Q2 and had mixed first-half results, while liquid credit funds underperformed their benchmarks due to high-conviction positions experiencing increased volatility. The 2026 Russell reconstitution caused significant reshaping of benchmark risk characteristics, with substantial migration of AI-related exposures and technology leadership, adding volatility to the broader market. The company expects an 'air pocket' in the late-stage target date pipeline, suggesting a lull in RDF flows in the second half of the year. The SMA business, at $20 billion in AUM, remains comparatively small relative to peers, and the company acknowledges it was a latecomer to this business. The expense guidance for full-year 2026 was raised to 4% to 7% growth over 2025's $4.6 billion, reflecting sustained average AUM and revenue trends, which may pressure margins. Q: How are you thinking strategically to reshape the business given the fee rate is going down and expense growth is still high, and how might M&A help shape that thought process?A: Rob Sharps (Chairman and CEO) stated that while active equities have lost share to passive and vehicle migration has pressured fees, the firm will not deemphasize its $900 billion direct active equity business. Strategically, T. Rowe Price aims to grow in fixed income, alternatives, and direct platforms, investing organically in ETFs, SMAs, and advice-led offerings. He noted that industry consolidation continues and that the firm has a high bar, but strategic M&A could play a part in reshaping the business if opportunities are financially compelling and aligned with objectives. Q: Can you size the large DC win in May and the big equity strategies win in June, and provide color on July flows, the institutional pipeline, and thoughts on second-half overall flows?A: Rob Sharps (Chairman and CEO) said net flows in the second half will be "meaningfully more challenging" than the first half due to ongoing outflows in active equity, the absence of outsized mandates, portfolio rebalancing away from equities, and an "air pocket" in the late-stage target date pipeline. However, he highlighted positives, including expectations for a record year for gross flows, strong interest in lower tracking error offerings, substantial progress in active ETFs, and consistent net flows expected in fixed income and alternatives. Q: In light of top-line growth challenges, are there more significant actions you could take to bring down the pace of expense growth more structurally?A: Jen Dardis (CFO) explained that the firm is focused on purposeful expense management, leveraging technology and AI to drive productivity. She reiterated guidance for controllable expense growth in the low single digits for 2026 and 2027. Rob Sharps added that AI is a "differentiating technology" that will allow the firm to limit growth in base expenses and free up resources to invest in talent, new capabilities, and deeper client connectivity. Q: Can you talk about your go-to-market or how you plan to scale the SMA business over the next couple of years?A: Rob Sharps (Chairman and CEO) acknowledged T. Rowe Price was a latecomer to the SMA business but is building momentum rapidly with 43 strategies and 35 sponsors. He announced that next week the firm will launch its own tax-efficiency capability with a vendor partner, and is developing partnerships with most existing platforms. He noted the firm has brought in outside talent and made SMAs a "pretty significant priority." Q: Can you discuss the distribution strategy and economic details for the T. Rowe Price Goldman Sachs Private Markets Fund?A: Rob Sharps (Chairman and CEO) detailed the multi-component Goldman Sachs alliance, including five model accounts approaching $0.5 billion in AUM, a newly effective multi-alternative interval fund, and a public-private equity interval fund expected later this year. Distribution responsibility is joint, with T. Rowe Price coordinating as adviser. Jen Dardis (CFO) added that the economics are designed to be "fair and balanced" between the two firms, with each contributing from investment management and distribution perspectives. Q: With the launch of your actively managed crypto ETF, how do you see that strategy evolving alongside potential tokenization of stocks and bonds, and do you expect digital wallets to become an important client interface?A: Eric Veiel (President, Co-Head of Global Investments, CIO) said tokenization represents a "structurally important evolution" for the investment management industry. He confirmed that if tokenized assets become more widely adopted, digital wallets will become an increasingly important client interface. The firm's digital assets group is actively engaging with industry groups and partners, and the goal is to align the tokenization strategy with firm-wide objectives: meeting client needs, reaching new investors, and increasing operational efficiency. Q: Can you update us on how you're thinking about the path forward for the ETF suite in terms of launching new funds versus scaling existing ones, and where you can provide differentiated products?A: Rob Sharps (Chairman and CEO) said the pace of launches will slow as the firm focuses on scaling existing ETFs, which now cover all key Morningstar categories. He highlighted model delivery as a "very big opportunity" and pointed to innovative offerings like the crypto ETF and thematic strategies. Eric Veiel added that the crypto strategy was intentionally designed with an expandable investable universe, and the firm is considering follow-on strategies and ETF conversions where they make sense. Q: As you think about demand and areas for further penetration from a distribution perspective for active ETFs, are there opportunities for deeper partnerships to drive more growth?A: Eric Veiel (President, Co-Head of Global Investments, CIO) emphasized that a significant amount of active ETF industry growth is coming through model delivery, both custom and off-the-shelf models. The firm is working hard on building deep relationships with technology providers to access advisers and is developing technology to allow portfolio managers to use the firm's multi-asset solutions capability more effectively. Rob Sharps added that municipal fixed income and equity research offerings represent substantial opportunities, primarily in the US wealth channel. Q: On the expense guide, you said it was based on first-half average AUM. If we're modeling off end-of-period AUM, which is 5% higher, should we think about 1% to 2% higher than that guide?A: Jen Dardis (CFO) clarified that the range is set based on the range of market levels seen during the quarter, with the middle based on the average and a range around that. She noted the difficulty in providing guidance given market volatility, but the framework is designed to accommodate fluctuations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.