T. Rowe Price Group, Inc.

Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's third quarter 2025 earnings conference call. All participants will be in listen-only mode until the question and answer period. I will give you instructions on how to ask questions at that time. As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes. I will now turn the call over to Linsley Carruth, T. Rowe Prices, Director of Investor Relations.

Hello, and thank you for joining us today for our third quarter earnings call. The press release and the supplemental materials document can be found on our IR website at investors.troweprice.com. Today's call will last approximately 45 minutes. Our Chair, CEO, and President Rob Sharps and CFO Jen Dardis will discuss the company's results for about 15 minutes. Then we'll open it up to your questions, at which time we'll be joined by Head of Global Investments, Eric Bile. We ask that you limit it to one question per participant. I'd like to remind you that during the course of this call, we may make a number of forward-looking statements and reference certain non-GAAP financial measures. Please refer to the forward-looking statement language and the reconciliations to GAAP in the supplemental materials as well as in our press release and 10-Q. Discussions related to the funds is intended to demonstrate their contribution to the organization's results and are not recommendations. All investment performance references to peer groups on today's call are using Morningstar peer groups and for the quarter that ended September 30th, 2025. I'll now turn it over to Rob.

Thank you, Lindsley, and thank you for joining today's call. Third quarter returns were strong across equity markets with concentration in mega cap growth sectors remaining near peak levels. We reached an end-of-period high of $1.77 trillion in assets under management as of September 30th and created an opportunity to bring innovative new solutions to market for our clients with our recently announced strategic collaboration with Goldman Sachs. I'll talk in more detail about this collaboration in a minute, but first I'll share an update on investment performance. Our long-term investment performance is solid. with 50% or more of our funds beating their peer groups on the 3-, 5-, and 10-year basis. On an asset-weighted basis, results were stronger, with 64%, 57%, and 78% of our fund assets beating their peer groups on the 3-, 5-, and 10-year basis. While we have always believed that focusing on the long term is the right lens for investment performance, I want to call out improvement in our one-year numbers, with 53% of fund assets now beating their peer groups. We're encouraged by this improvement and the momentum we are building. I'd like to share a few other highlights. On an asset-weighted basis, over half of our equity fund assets beat their peer groups for the one-, three-, and five-year time periods, and over 70% beat their peers over 10 years. Fixed income performance is even stronger, with over 70% of fund assets beating their peer groups in all reported time periods. In our target date franchise, 81%, 71%, and 98% of fund assets beat their peer groups on a three-, five-, and 10-year basis. One-year results were weaker, with 43% of target date fund assets beating their peers, as underlying security selection in some of the equity building blocks impacted performance. Across alternatives, Performance in senior direct lending strategies was strong, and distressed mandates outperformed their targets. Liquid credit strategies generally performed in line with their benchmarks, while results in certain opportunistic funds were modestly below target. Importantly, individual credit selection continued to be strong, and portfolios did not have any exposure to the high-profile credit issues that have dominated headlines. While private credit deployment was roughly similar with the prior quarter, there was a noticeable acceleration in deal activity leading to a more robust pipeline of pending transactions. I'd like to spend a few minutes on our strategic collaboration with Goldman Sachs, a collaboration that aims to deliver a range of diversified public and private market solutions designed for the unique needs of retirement and wealth investors. Initially, We will focus on four areas, a co-branded sister series for the target date franchise, model portfolios, multi-asset offerings, and personalized advice solutions and advisor managed accounts. Given that the sister series for the target date franchise and the retirement opportunity have been covered broadly since the announcement, I thought I would focus on the products we're designing for the Wealth Channel, starting with model portfolios. We are developing a co-branded series of asset allocation model portfolios with alternative investment allocations, with plans underway to be on the first platform before year end, followed by other platforms in 2026. Goldman Sachs will be the advisor, providing tactical and strategic allocation for the models and some of the underlying products. OHA will provide the private credit exposure, Interior Price will provide the balance of the other underlying products. We are also working on multi-asset public-private market solutions that will allow advisors to easily incorporate alternative investments into their clients' portfolios. The first two offerings, a public-private equity strategy and a multi-alternative strategy, are expected to launch by mid-2026. T. Rowe Price will be the advisor on these solutions, which will incorporate capabilities from T. Rowe Price, OHA, and Goldman Sachs. Moving to our third focus area, we will offer a managed account platform for independent advisors so they can deliver participant advice in plans on T. Rowe Price's recordkeeping platform and for retirement savers out of plan in the latter half of 2026. These personalized accounts will combine T. Rowe Price's investment and advice capabilities and Goldman Sachs Asset Management's digital planning and personalized management account technology, enabling independent advisors to manage individual accounts at scale. These solutions will include allocations to both T. Rowe Price and Goldman Sachs products. Finally, and as I mentioned at the start, the co-branded sister series for the Target Date franchise which will include allocations to T. Rowe Price public equities and fixed income, OHA private credit, and other alternatives from Goldman Sachs, has received significant attention. Work is ongoing, and we expect to launch in mid-2026. We believe that exposure to high-quality alternatives at the right price in professionally managed retirement accounts can improve results for retirement savers by providing diversified sources of returns. And we believe our co-branded target date series will be a highly competitive solution in the marketplace. Before I hand it to Jen, I want to share a few additional highlights from the course. We introduced two new retirement allocation funds with a strategic partner in Asia, marking the first time a U.S. asset manager is making retirement-focused products available to retail investors in Hong Kong and Singapore. We continue to grow our ETF business, with $19 billion in AUM as of September 30th. Twelve of our ETFs surpassed $500 million, with five reaching over $1 billion. Together with the International Finance Corporation, a member of the World Bank Group, we launched the Emerging Markets Blue Economy Bond Strategy, aiming to address water challenges by investing in corporate blue bonds in emerging markets. With over $200 million in commitments from partners, the strategy supports projects such as clean water infrastructure. And we hosted our inaugural investor development program, a week-long investment training program for large strategic clients. Over the course of a week, we provided insight into our investment process and research platform, while also gaining a better understanding of what matters to them as clients. We are focused on delivering excellent investment performance while partnering more closely with our clients and developing broader solutions that meet their financial objectives. At the same time, we are running our business efficiently and keeping pace with the change in our industry. I want to thank our dedicated and talented associates for their continued work on behalf of our clients. And with that, I will ask Jen to share an update on the third quarter financial results.