PRICE T ROWE GROUP INC Q1 FY2026 earnings call

Before the call, Rob mentioned markets declined in March due to Iran conflict but reversed early in Q2; Our active management approach positions us well; Advanced initiatives like collaboration with Goldman Sachs, growth in ETF and SMA businesses, closed first T. Rowe Price managed CLO, advanced partnerships with First Abu Dhabi Bank and Aspida

Equity funds: on an asset-weighted basis, 63% outperformed for the 3-year and 73% for the 10-year time periods; Fixed income funds: on an asset-weighted basis, over 3/4 of the funds outperformed for the 1-, 3-, 5- and 10-year time periods; Target date franchise: long-term performance strong with 94%, 54% and 98% of fund AUM outperforming their peers on a 3-, 5- and 10-year basis, 1-year performance challenged but recent quarter strong; ETFs: launched 2 ETFs this quarter, with assets under management surpassing $25 billion; SMA: platform expanded to 42 offerings with more than $17 billion in AUM

2026 adjusted operating expenses, excluding carried interest expense, are expected to be up 3% to 6% over 2025, around $4.6 billion; Expense forecast remains within the range even with year-to-date market volatility

Market volatility due to events like the Iran conflict; Geopolitical risks affecting global economic growth expectations; Concerns related to AI disruption and its impact on certain sectors

Q: Expand on deployment opportunity and OHA's exposure to software and AI disruption; A: Spreads widened, OHA is well positioned in software credit with focus on mission-critical software and contractual recurring revenue models; Q: Credit spreads and returns; A: Credit spreads are in line with historic averages, and there are attractive risk-adjusted returns; Q: ETF growth and strategy; A: ETFs are growing from new clients and existing, with 3 core tenets of compelling active offerings, components for asset allocation models, and innovative strategies; Q: Institutional pipeline and April market; A: Institutional pipeline is slow-moving, and the market is broadening; Q: Retail offerings and products; A: OHA is growing in the wealth channel, and the OFlex product is exciting; Q: Expense outlook; A: Q1 expenses are softer, and the balance of the year will involve investment in strategic initiatives; Q: Software and AI risk assessment; A: Software allocation is in line with the market, and there is a rigorous underwriting process; Q: M&A appetite; A: Evaluate M&A opportunities with cultural fit and capability addition