Finance
Goldman-backed T. Rowe's profit jumps as rallying markets boost fees
Published by Global Banking & Finance Review®
Posted on October 31, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 31, 2025
2 min readLast updated: January 21, 2026
T. Rowe Price's profit surged due to market rallies, boosting assets under management. Despite client outflows, a new partnership with Goldman Sachs and a cryptocurrency ETF launch are key highlights.
(Reuters) -Asset manager T. Rowe Price's third-quarter profit rose on Friday, as soaring markets boosted its assets under management and the corresponding fees, cushioning a hit from outflows.
Shares of the company rose 2.2% in premarket trading.
Major indices and asset classes extended their rallies through the quarter, hitting consecutive record highs as AI vigor and falling interest rates gave investors confidence who had been worried about macroeconomic cracks and tariffs.
This helped assets under management, which are largely tied to the performance of underlying investments and client money flow.
T. Rowe's AUM jumped 8.4% in the quarter ended September 30 despite net client outflows of $7.9 billion.
"We reached an end-of-period high with $1.77 trillion in AUM as of September 30 and created an opportunity to bring innovative new solutions to market for our clients with our recently announced strategic collaboration with Goldman Sachs," CEO Rob Sharps said in a statement.
In September, T. Rowe and Goldman struck a deal under which the U.S. dealmaker will invest up to $1 billion in the company, marking the beginning of a partnership to package alternative assets into T. Rowe's retirement money.
T. Rowe's active buying and selling strategies have lost favor over the years, following the popularity of low-cost passive fund managers that aim to track an underlying asset or index.
The company has been diversifying its offerings to win back customers.
Last week, it filed to launch an actively managed exchange-traded fund tied to multiple digital currencies, foraying into the cryptocurrency space.
Investment advisory fees, typically a percentage of the AUM, rose 4.4% to $1.7 billion in the third quarter from a year ago.
It earned a profit of $646.1 million, or $2.87 per share, compared with $603 million, or $2.64 per share, a year ago.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Shinjini Ganguli)
Asset management refers to the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner, typically involving investment portfolios.
Investment advisory fees are charges paid to financial advisors for managing investments and providing financial advice, usually calculated as a percentage of assets under management.
Cryptocurrencies are digital or virtual currencies that use cryptography for security, operating independently of a central authority, and are often based on blockchain technology.
Financial performance is a measure of how well a company utilizes its assets and generates revenue over a specific period, often assessed through financial statements.
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