How T. Rowe Price Aims to Tackle Challenges

While T. Rowe Price (TROW) expects to encounter certain long-term challenges, it has identified some measures it may take to tackle them. The company plans to focus on pricing as well as long-term goals.

T. Rowe Price has extended its investment strategies, receiving a positive response from clients. To streamline processes, the company has deployed digital tools and is focusing on regulatory requirements.

Management expects alternative and passive investments to witness positive momentum. T. Rowe Price’s track record makes its active products comparable to passive products.

In 2018, T. Rowe Price plans to report strong investment results, which could improve how it is perceived by clients and market participants. The company is also focusing on increasing its market share through its core business and diversification.

The company plans to focus on technology and other methods to smooth processes and make investments in its business to drive growth. Whereas T. Rowe Price has a last-12-month return on assets of 24.0%, peers (XLF) BlackRock (BLK), Franklin Resources (BEN), and Financial Engines (FNGN) have returns of 1.7%, 11.2%, and 6.2%, respectively.