Has corporate told us which strategies are driving outflows the most? Remembering the blue chip flip during 2020. 8 billion is a lot.
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@j4 anyone watch the ravens game last night? All I saw was the TRP logo in the end zone as the Pats get the game winning TD. Figures that the team from Boston beats Baltimore and don't get me started on the Orioles, signing a player from a NY team to turn things around.
@kk Key word here "former". I guess they won't even be able to enjoy the corporate suites now. T Rowe should strip their name off the stadiums. They have zero real commitment to the people of Baltimore. They sell out Baltimore workers. That scoreboard sign and the overboard signage all over Camden Yards was incredibly stupid. Apparently they really wanted naming rights.
@j4 Pure vanity project by former mktg head
@hj Management knows this and didn't even try to diversify their target consumer. When they announced their sponsorship with the Orioles, Ravens and the ACC tournament, they were only interested in marketing to the demographics that they knew would buy TRP funds (older, regional customers)
@hz Not true for the most part. Only RPS and II know their underlying investors' ages. Vast majority of AUM is dealing through advisors, wealth managers, platforms - means the demographic of the underlying investor is not known. Or it's institutional money, in which case just a lump sum.
@hj This is a known number, you know the age of your customer base and should be able to predict those outflows for the most part.
@hj Totally agree. An older demographic that bought MFs run by long-tenured PMs that were discussed during a round of golf. Nice, quaint and now obsolete. They have chnaged and so have we. Today's buyer does something a bit different with their money. Takes a while for the pile to reduce, but slowly and surely it does and there is not enough coming in to replace it. Outflows will continue for a good while yet as the landscape shifts from the old to the new.
one also wonders about the demographics of TRP's customer base. If most TRP customers are older, retired folks, then yeah, they're going to keep cashing out of their retirement funds. TRP's failure is probably not appealing to younger customers who could have backfilled their shrinking boomer customer base
@eg kick them out! Kick them out!
@ea I combed through years of 10ks and releases and all I’m finding is eq/fi/multi asset without further detail
I get the sense it all began with large cap US
@ea Performance being "not bad" is not good enough. Need to be consistently UQ if you are charging UQ fee rates and want to hold onto AUM. Performance on an asset-weighted basis isn't outstanding. Distribution and Investments are both clearing out their persistent laggards as the months tick by.
There are press releases and investor releases on all of this… tells you the asset class flows and sometimes the actual funds as well. Internally it’s often spoken about at town halls.
Performance in many of the TRP funds are not bad. You can’t expect performance to be good all the time. That being said, some in Investments need to go. But a lot of the sloths and dummies in Distribution need to go too.
@cy So I guess when I watch competitor's ads on TV talking about the high fees of their competition, they are talking about T Rowe. Maybe they are going to lower their fees once they are done offshoring.
@cv No. It's down to one or all of mediocre (at best) performance, high fees, obsolete vehicles in those areas where the firm built its AUM. Some way to go yet. However there are pockets of growth. If they can sustain, the outflows eventually slow and - with a bit of luck - growth can resume. No guarantees, but the potential is there medium term. Won't stop the firm right-sizing its emplyee base over the next 12 months or so. Or someone comes in an buys it up.
For those without a Times subscription use https://archive.ph/tKOk6#selection-7347.1-7347.98. Archive.ph is a site you can try to see if an article behind a paywall has been archived which makes it available to non-subscribers to read.
Is it that the company went all in on ESG? That is not without controversy. https://www.nytimes.com/2024/01/19/business/esg-funds-withdrawals.html ESG directs money towards invest in companies with environmental, social and governance principles and not solely based on making a profit. "The brunt of the outflows last year were from a single iShares E.S.G. fund managed by BlackRock." How does T Rowe stack up to this? The outflows seemed to start when the Firm went all in on woke when the current CEO took over.
No. Outside of Finance, you need to be in distribution to see the flow stats. US Equity is always at the front of the line for outflows in recent times, but other products now starting to feature too.