Prudential’s third-party assets managed on behalf of its customers increased by $35 billion, out of which $5 billion resulted from positive net inflows.
Close to 80% of Prudential’s fee income comes from third parties, out of which over half is contributed by third-party institutional clients.
In November 2012, GM entered into a deal with Prudential to transfer its pension liabilities and assets, exceeding $25 billion.
Prudential’s Retirement business in the United States provides corporate customers with retirement savings and income-oriented products and services.
Disciplined sales and diversification in its product mix has helped Prudential improve its return on assets from ~0.4% in 2009 to the current ~1% ROA.
Prudential’s customer base includes over 30 million individual customers and 25,000 corporate clients, consisting of more than half of the Fortune 500 list.
The US is Prudential’s most important market, contributing over 60% of the company’s pre-tax adjusted operating income and ~50% share of its equity in 2014.
Just over half of Prudential’s adjusted operating income comes from its US business. Japan is a key market for Prudential, with a ~7% market share.
T. Rowe Price Group manages $477.6 billion in sponsored mutual funds, the assets under management of which have grown 17% over the past three years.
T. Rowe, like other players in fund management, charges a predetermined percentage of the fund’s net asset value, which it notes in the fund’s prospectus.
T. Rowe Price Group is big on retirement solutions because of existing growth opportunities in the segment.
T. Rowe Price Group’s research team has played a pivotal role in shaping its mutual fund and advisory businesses.
The length of time seed capital is held in a portfolio depends on various factors such as how long it takes to generate cash flow from unrelated investors.
T. Rowe Price Group has 37% of its assets under the “other investment portfolios” category.
To promote its new funds, T. Rowe Price Group (TROW) waives certain advisory fees and absorbs other mutual fund expenses.
Growth in assets under management has slowed in the past couple of years, but the company is now intensifying efforts to diversify its products.
T. Rowe Price Group builds its base of assets under management using four main distribution channels, mainly third-party financial intermediaries.
T. Rowe faces several risks that could impact its overall performance and influence its valuation such as interest rates and market fluctuations.
Over time, T. Rowe Price Group has increased funding for long-term initiatives to innovate, introduce new funds, and expand its distribution channels.
T. Rowe needs to diversity and reduce the risks arising from economic slowdowns in certain countries and regions.