TROW · 10-Q · 2026Q3 · Full report

Competition and Market Position

PRICE T ROWE GROUP INC · 2026-10-29 · Importance 20 · Surprise 24

The company describes the investment management industry as facing continued share gains by passive strategies over traditional active strategies and ongoing downward fee pressure. Its performance against passive peers was mixed: 57% of U.S. funds outperformed the passive-peer median over one year, compared with 42% over three years, 42% over five years, and 46% over ten years. On an AUM-weighted basis, 53% of U.S. fund AUM outperformed passive peers over one year, but only 23% did so over three years. The company reported that 45.1% of its rated U.S. mutual funds had four- or five-star Morningstar ratings at September 30, 2026, versus 32.5% of Morningstar’s fund population.

Key facts

• At September 30, 2026, 64 of 142 (45.1%) rated U.S. mutual funds received an overall rating of 4 or 5 stars; 57.0% of AUM in rated U.S. mutual funds had an overall rating of 4 or 5 stars. source
• For the one-year period ended September 30, 2026, 45% of composites outperformed benchmarks. source
• The company's ability to attract and retain assets under management depends in part on relative investment performance versus competing products and market indexes, appropriate investment management and administrative fees, interest rates and inflation, competition, strategy execution, and retention of key personnel. source
• For the one-year period ended September 30, 2026, 60% of the firm's U.S. funds outperformed the Morningstar median and 57% outperformed the passive peer median. source