T. Rowe Price Group Inc. (TROW) provides global investment management services with an array of mutual funds, sub-advised funds, separately managed accounts, collective investment trusts and other products.
The company generated 59% of its revenue from U.S. mutual fund advisory fees, 33% of its revenue from other investment advisory fees and the remainder from administrative, distribution and servicing fees in 2020. Within U.S. mutual funds, 67% of revenue came from equity funds, 26% came from multi-asset and the remainder came from fixed income.
Strong Asset Growth Fuels Earnings
T. Rowe Price reported fourth-quarter revenue that rose by 18% to $1.7 billion, in line with consensus estimates, with non-GAAP earnings of $2.89 per share, beating consensus estimates by 26 cents per share. Assets under management grew by 12%, thanks to $2.2 billion in inflows and strong market gains throughout the quarter.
The company raised its quarterly dividend by 20% to $1.08 per share, which represents a 2.5% forward yield. The dividend is payable on March 30, 2021 to shareholders on record as of March 16, 2021.
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