Rising Equity Markets Have Improved T. Rowe Price's Fortunes, but Secular Headwinds Persist

In an environment where active fund managers are under assault for poor relative performance and high fees, we believe wide-moat T. Rowe Price is one of the best positioned US-based active asset managers we cover. The biggest differentiators for the firm are the size and scale of its operations, the strength of its brands, its consistent record of active fund outperformance, and reasonable fees. T. Rowe Price also has a stickier set of clients than its peers, with two thirds of its assets under management derived from retirement-based accounts.