Alternatives “entirely” drive higher performance fees at T. Rowe Price in the third quarter of 2025, with assets under management (AUM) rising 8.4 per cent year on year.
The US investment firm reported that performance-based fees rose to $6.4m (£4.9m), a 14 per cent year-on-year increase, with the firm noting these fees were “almost entirely earned in alternative strategies”.
Read more: DWS sees alternatives drive profits as Deutsche Bank posts “record” results
Revenues from alternatives grew by 7.4 per cent, with T. Rowe Price holding $56bn of such assets.
The firm reported total net revenues of $1.9bn, up six per cent year-on-year and 9.9 per cent on the previous quarter. The group said the increase was mainly driven by higher average AUM, which climbed to $1.72tn during the quarter, reflecting both market gains and net inflows.
“We reached an end-of-period high with $1.77tn in AUM as of 30 September and created an opportunity to bring innovative new solutions to market for our clients with our recently announced strategic collaboration with Goldman Sachs,” said Rob Sharps, chair, chief executive and president.
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Across the wider business, net client outflows totalled $7.9bn, while the firm returned $442m to shareholders through its regular dividend and share buy-backs.
It earned a profit of $646.1m, compared with $603m a year ago. Capital-allocation income also jumped to $42m from $4.6m a year earlier.
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