Free Essay

T Rowe Price Abstract

In: Business and Management

Submitted By Jay12quigley
Words 640
Pages 3
T. Rowe Price Group, Inc.

T. Rowe Price Group, Inc.
Industry: Asset Management

Investment Thesis­ There are several positive factors to consider when evaluating T. Rowe
Price. First, they offer a durable service that will always be needed. As long as there is money in the economy and consumers have income, people will need to manage these assets and invest them. Next, they pay a dividend of 2.73%. In addition, they have ROA, ROI, and ROE ratios all over 20% and above industry standards. Furthermore, they have a profit margin of 30% and an operating margin of 45%, also good by industry standards. Finally, they currently possess no debt on their books. Some may see this as an issue because they would argue they aren’t trying to grow. However, this is a very mature company and not much physical expansion is needed for them to operate over a large area so debt isn’t really an issue.

Overview­ T. Rowe Price Group, Inc. is an investment firm offering its customers mutual funds, subadvisory services, and account management. These accounts are used for individuals, retirement plans, institutions, and financial intermediaries. Furthermore, the company offers investment planning and guidance tools to its clients. T. Rowe Price’s three main practices which they believe sets them apart from its competition are active portfolio management, objective guidance, and low fees for trading. They currently employ about 5,000 people and roughly 90% of their clients are investors from the United States. The company was founded in 1937 by
Thomas Rowe Price Jr. and is headquartered in Baltimore, Maryland.

Catalysts­ Being that T. Rowe Price is a company in the financial sector, one of the main catalysts for strength is a strong economy. The stronger the economy is, the more confidence the public will have in individual companies which leads to more investing in them. The more investing the population does, the more trading fees T. Rowe Price collects from its customers.
With this in mind, consumer sentiment and GDP have both been on the rise over the last few years in the United States, both of which are very good signs for the financial sector.

Risk Analysis­
There are two main risks that T. Rowe Price faces. First, a weak economy could greatly impact their revenues. As mentioned earlier, just as a strong economy helps the company, a weak economy would greatly hurt them. When the public loses faith in the economy and large corporations, they tend to make fewer trades and overall invest less money. This lack of trading and investing reduces T. Rowe Price’s bottom line. Second, if competitors come in and offer better service/web interface or do it for a cheaper price, customers may be inclined to switch

services. Some of T. Rowe Price’s most well­known competitors are BlackRock, BNY Mellon,
Ameriprise, Franklin Resources, and Northern Trust. As mentioned, if any of these companies are able to take some of T/ Rowe Price’s clients, it will have a large, negative impact on the company, thus posing a real risk to them.

Green Initiatives­ T. Rowe Price has several initiatives they have developed in order to more sustainable. First, they are working to incorporate energy conservation in their office buildings and technology centers. Second, they reuse and recycle at all their company’s buildings. Next, they work to conserve water within their buildings through monitoring their water levels, using low­flow water fixtures, and sourcing plant species that demand less water. Furthermore, they strive to only work with other businesses which share the same values and views about environmental impact. Lastly, they provide employees with a healthy workspace by monitoring indoor air quality and maximizing access to natural sunlight.
Link to environmental policy in its entirety:

Similar Documents

Premium Essay

Sustainable Business

...Sustainable Business Tammy T. Maden BA 317 International Management 21 April 2013 Instructor Lee Abstract Sustainability combines the principles of economic growth, environmental stewardship, governance, and social accountability. This Compare and Contrast analysis will introduce Managing Partner, David Blood's views on The Case of Sustainable Business. This review will include a brief description of what an International Manager may face in the business world and the duties of a successful International Manager. You will gain the knowledge of David's view, the International Manager, and how they relate. While corporate sustainability is not new, companies still fail to apply sustainability principals at the heart of the business. It should become part of the company's fabric and later an essential support for growth. David Blood, Managing Partner of Generation Investment Management, believes that putting together fundamental equity analysis and sustainability research throughout the process is a reasonable way to invest and provide superior returns to clients (Gresham College Lecture, 2008). He defines sustainability in both investing and business. I chose this video because it is about our future and how businesses could save the quality of life; this is what matters right now. It is very important in today's world because according to the United States Census Bureau, the population of the world as of this second is 7,080,247,340, in which one birth takes place...

Words: 2004 - Pages: 9

Premium Essay

Home Nursing Provider

...THE VALUE OF ANALYTICAL TOOLS IN COMPETITIVE ANALYSIS: HOME NURSING PROVIDERS ABSTRACT In business, analytics tool is a fast emergent field and there are many tools obtainable in the market to serve the essential needs of organizations. Analytical tools are used to help managers in making clear decision on the outcome of their findings enabling a shift in how businesses support operational decisions: from intuition to data-driven. Thus, analytics tools enable businesses to make better, more informed decisions and compete more successfully. In today’s global business environment, managers require the latest analytical and decision-support tools to cope with market complexity, regulatory change and pervasive uncertainty. For companies, the most valuable tools are those woven into the fabric of day-to-day business activities: forecasting trends, sizing markets, benchmarking practices, assessing risks, and quantifying results. INTRODUCTION Strategic analysis as an independent object of scientific study has been dealt with but insufficiently (Vaitkevičius et al., 2002). It has been reviewed, however, by comparatively numerous authors. It may be stated that some authors assigned more functions to strategic analysis (Lindblom, 1959); Cyert and March, 1963; Hammeresh et al., 1978; Porter, 1980; Stoner and Fry, 1987; Johnson and Scholes, 1993; Rowe et al., 1994; Grant, 1998; Peel et al., 1996; Godet, 2000; Barnes, 2002; Analoui and Karami, 2003; Eng, 2004; McNamee et......

Words: 2965 - Pages: 12

Premium Essay


...Energy Policy 31 (2003) 721–734 Electricity and externalities in South Africa Randall Spalding-Fechera,*, David Khorommbi Matibeb b a Energy and Development Research Centre, University of Cape Town, Private Bag, Rondebosch 7700, South Africa Gauteng Department of Agricultural Conservation and Environment, PO Box 8769, Johannesburg 2000, South Africa Abstract As the electricity supply sector in developing countries undergoes increasingly rapid restructuring, and technology and fuel choices widen, understanding the environmental implications of investment choices becomes ever more important. The objective of this paper is to expand previous analysis of the external costs of electric power generation in South Africa. We present a quantitative analysis of air pollution impacts on human health, damages from greenhouse gas emissions, and the avoided health costs from electrification, as well as discussing other impacts qualitatively. The central estimate of total external costs is R7.3 billion, or 4.4 cents per unit of coal-fired power generated. Relative to current electricity prices, the external costs are approximately 40 and 20 per cent of industrial and residential tariffs, respectively. We then discuss policy options for addressing these costs, including taxation, tradable permit systems, and integrated resource planning, as well as expanded regional energy trade and the possibility of accessing climate change-related funding for cleaner electricity production. r 2002......

Words: 10891 - Pages: 44

Free Essay


...Liminality and Communitas as new sources of Social Capital in Business Relationship Dynamics Dr Annmarie Ryan, Department of Management and Marketing, Kemmy Business School, University of Limerick, Ireland. Competitive Paper Abstract In this paper I develop a framework for the study of business relationships through the lens of liminality. This is achieved by discussing the work of Turner in relation to rites and rituals and their role in society. Those dimensions of the concept of liminality and communitas that are important for this study therefore include: that it involves interaction outside everyday lived experience; that liminality is constructed and is neither self-evident or naturally occurring; involves the transformation re-discovery and re-appropriation of every day spaces, through separation, or divestiture process, and subsequently (re)incorporated into the everyday through processes of investiture and importantly, incorporates a shared experience that can impact on relations between those who share the experience beyond the event itself. The concept of liminality is offered as a way to enable researchers to understand the interactions between managers in relationships in a new way. The focus of this paper is therefore threefold: 1/ to expand upon the concept of creating, holding and intensifying liminal space and 2/consideration of the effect of this on the organisation and 3/ reflection on this on-going entering into and leaving of liminal......

Words: 9089 - Pages: 37

Free Essay


...HISTORY AND THEORY STUDIES FIRST YEAR Terms 1 and 2 Course Lecturers: CHRISTOPHER PIERCE / BRETT STEELE (Term 1) Course Lecturer: PIER VITTORIO AURELI (Term 2) Course Tutor: MOLLIE CLAYPOOL Teaching Assistants: FABRIZIO BALLABIO SHUMI BOSE POL ESTEVE Course Structure The course runs for 3 hours per week on Tuesday mornings in Terms 1 and 2. There are four parallel seminar sessions. Each seminar session is divided into parts, discussion and submission development. Seminar 10.00-12.00 Mollie Claypool, Fabrizio Ballabio, Shumi Bose and Pol Esteve Lecture 12.00-13.00 Christopher Pierce, Brett Steele and Pier Vittorio Aureli Attendance Attendance is mandatory to both seminars and lectures. We expect students to attend all lectures and seminars. Attendance is tracked to both seminars and lectures and repeated absence has the potential to affect your final mark and the course tutor and undergraduate coordinator will be notified. Marking Marking framework adheres to a High Pass with Distinction, High Pass, Pass, Low Pass, Complete-toPass system. Poor attendance can affect this final mark. Course Materials Readings for each week are provided both online on the course website at and on the course library bookshelf. Students are expected to read each assigned reading every week to be discussed in seminar. The password to access the course readings is “readings”. TERM 1: CANONICAL BUILDINGS, PROJECTS, TEXTS In this first term......

Words: 22588 - Pages: 91

Premium Essay

The Economic Impact of Tourism on Hotel Management

...ECONOMIC IMPACT OF TOURISM ON HOTEL DEVELOPMENT (A STUDY OF SHERATON HOTEL, IKEJA, LAGOS) A RESEARCH PROJECT SUBMITTED BY ODEODE FAITH EBANEHITA (Matric. No: RUN06-07/925) IN PARTIAL FULFILMENT OF REQUIREMENTS FOR THE AWARD BACHELOR OF SCIENCE (B. SC) DEGREE IN TOURISM MANAGEMENT TO THE DEPARTMENT OF TRANSPORT AND TOURISM STUDIES, COLLEGE OF MANAGEMENT SCIENCES, REDEEMER’S UNIVERSITY, OGUN STATE. MAY 2010 CERTIFICATION I certify that this research project titled ECONOMIC IMPACT OF TOURISM ON HOTEL DEVELOPMENT (A STUDY OF SHERATON HOTEL, IKEJA, LAGOS) .................................................................................................. Was conducted and written by ODEODE FAITH EBANEHITA Run06-07/925 ........................................................ ........................ Name Matric No Under my supervision In partial fulfilment of the requirement for the award of (B. SC) TOURISM MANAGEMENT ............................................................. In the College of Management Sciences Redeemer’s University, Redemption City, Ogun State, Nigeria Mrs. A.O. Idowu Dr. (Mrs.) B.O. Adeleke _______________________ ____________________ Name, Signature and Date ...

Words: 22394 - Pages: 90

Premium Essay

Demand Forecasting

...DEMAND FORECASTING: EVIDENCE-BASED METHODS Forthcoming in the Oxford Handbook in Managerial Economics Christopher R. Thomas and William F. Shughart II (Eds.) Subject to further revisions File: Demandforecasting-17-August-2011-clean.docx 17 August 2011 J. Scott Armstrong The Wharton School, University of Pennsylvania 747 Huntsman, Philadelphia, PA 19104, U.S.A. T: +1 610 622 6480 F: +1 215 898 2534 Kesten C. Green International Graduate School of Business, University of South Australia City West Campus, North Terrace, Adelaide, SA 5000, Australia T: +61 8 8302 9097 F: +61 8 8302 0709 # words in body 10,053 (requested range was 6,000 to 9,000) ABSTRACT We reviewed the evidence-based literature related to the relative accuracy of alternative methods for forecasting demand. The findings yield conclusions that differ substantially from current practice. For problems where there are insufficient data, where one must rely on judgment. The key with judgment is to impose structure with methods such as surveys of intentions or expectations, judgmental bootstrapping, structured analogies, and simulated interaction. Avoid methods that lack evidence on efficacy such as intuition, unstructured meetings, and focus groups. Given ample data, use quantitative methods including extrapolation, quantitative analogies, rule-based forecasting, and causal methods. Among causal methods, econometric methods are useful given good theory, and few key...

Words: 12973 - Pages: 52

Free Essay

Saas Market Overview

...Internet & Digital Media: 66 companies IT Infrastructure Index: VMW, CTXS, NTAP, CA, RHT, SWI, INFA, OTEX, CVLT, CPWR, QLIK, PEGA, MVSN, PRGS, JIVE, NTCT, BLOX, GUID, MGIC, FALC, FIO, GIMO, SSNI, CYNI, RALY © 2015, Centaur Partners │Confidential │ 2 Technology M&A Trends Key M&A Statistics Technology M&A – Transactions Since 2006 Number of Transactions 2,400 2,000 $165 1,600 1,441 $166 $150 1,281 1,216 1,200 $80 901 $83 $136 1,411 1,402 2,056 $177 200 160 1,448 120 $96 800 80 400 40 0 2007 2008 2009 2010 Number of Transactions Volume $160B $80B $80B 2011 2012 2013 0 2014 $140B $135B $166B $176.6 (1) AT&T Target DIRECTV Societe Francaise de. Whatsapp Value $65.2B $21.9B...

Words: 14671 - Pages: 59

Free Essay


...35 New Ways to Improve Your Programs and Designs Scott Meyers More Effective C ADDISON-WESLEY PROFESSIONAL COMPUTING SERIES ++ Conforms to the new ISO/ANSI C++ standard! From the Library of Yuri Khan Praise for More Effective C++: 35 New Ways to Improve Your Programs and Designs “This is an enlightening book on many aspects of C++: both the regions of the language you seldom visit, and the familiar ones you THOUGHT you understood. Only by understanding deeply how the C++ compiler interprets your code can you hope to write robust software using this language. This book is an invaluable resource for gaining that level of understanding. After reading this book, I feel like I've been through a code review with a master C++ programmer, and picked up many of his most valuable insights.” — Fred Wild, Vice President of Technology, Advantage Software Technologies “This book includes a great collection of important techniques for writing programs that use C++ well. It explains how to design and implement the ideas, and what hidden pitfalls lurk in some obvious alternative designs. It also includes clear explanations of features recently added to C++. Anyone who wants to use these new features will want a copy of this book close at hand for ready reference.” — Christopher J. Van Wyk, Professor, Mathematics and Computer Science, Drew University “Industrial strength C++ at its best. The perfect companion to those who have read Effective C++.” — Eric Nagler, C++......

Words: 43056 - Pages: 173

Premium Essay

Debt Markets

...2 The Instruments : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : v 1 1 2 I Instruments with Fixed Payments 2 Bond Arithmetic 2.1 Prices and Yields in the US Treasury Market : : : : : : : : : : : : : : : : : 2.2 Replication and Arbitrage : : : : : : : : : : : : : : : : : : : : : : : : : : : : 2.3 Day Counts and Accrued Interest : : : : : : : : : : : : : : : : : : : : : : : : 2.4 Other Conventions : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 2.5 Implementation Issues : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 2.6 Common Yield Fallacies : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 2.7 Forward Rates optional : : : : : : : : : : : : : : : : : : : : : : : : : : : : 8 9 9 14 17 19 23 24 26 3 Macrofoundations of Interest Rates 39 CONTENTS i 4 Quantifying Interest Rate Risk 4.1 Price and Yield : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 4.2 More on Duration : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 4.3 Immunization : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 4.4 Convexity optional : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 4.5 Fixed Income Funds : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 4.6 Statistical Measures of Price Sensitivity optional : : : : : : : : : : : : : : 44 45 48 51 55 56 57 5 Floating Rate Notes and Interest Rate Swaps 5.1 Floating Rate Notes : : : :...

Words: 61190 - Pages: 245

Premium Essay

Quality Improvement in Health Care in Belize

...administration—Belize. I. Nelson, Jennifer. II. Woodye, Martha. III. Inter-American Development Bank. Social Protection and Health Division. IV. Title. V. Series. IDB-TN-661 The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. The unauthorized commercial use of Bank documents is prohibited and may be punishable under the Bank's policies and/or applicable laws. Copyright © 2014 Inter-American Development Bank. All rights reserved; may be freely reproduced for any non-commercial purpose. Ian Mac Arthur, Quality Improvement of Health Care in Belize: Focusing on Results Abstract Belize is participating in the Salud Mesoamerica 2015 Initiative (SM2015), a regional public-private partnership administered by the Inter-American Development Bank (IADB) and implemented by the eight Mesoamerican countries, which utilizes a results-based financing model with external verification of indicator values. Countries that reach their goals receive a...

Words: 14059 - Pages: 57

Premium Essay

Minimizing Risk in the Ghanaian Banking Sector

...WERMERS* First draft: May 26, 2004 This Revision: April 21, 2005 *Doron Avramov is from the University of Maryland,, Tel: 301405-0400, and Russ Wermers is from the University of Maryland, e.mail:, Tel: 301-405-0572. We thank seminar participants at Copenhagen Business School, George Washington University, Inquire-UK and Inquire-Europe Joint Spring Conference, Institute for Advanced Studies (Vienna), Stockholm Institute for Financial Research (SIFR), Tel Aviv University, University of Manitoba, University of Toronto, Washington University at St. Louis, and especially an anonymous referee, for useful comments. All errors are ours. Investing in Mutual Funds when Returns are Predictable Abstract This paper analyzes the performance of portfolio strategies that invest in noload, open-end U.S. domestic equity mutual funds, incorporating predictability in (i) manager skills, (ii) fund risk-loadings, and (iii) benchmark returns. Predictability in manager skills is found to be the dominant source of investment profitability – long-only strategies that incorporate such predictability considerably outperform prior-documented “hot-hands” and “smart-money” strategies, and generate positive and significant performance with respect to the Fama-French and momentum benchmarks. Specifically, these strategies outperform their benchmarks by 2-4% per year through their ability to time industries over the business cycle. Moreover, they......

Words: 25395 - Pages: 102

Premium Essay


...The current issue and full text archive of this journal is available at Supply chain risk management and performance A guiding framework for future development Bob Ritchie Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK, and Supply chain risk management and performance 303 Clare Brindley Head of Department, Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK Abstract Purpose – The purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners. Design/methodology/approach – The conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework. Findings – A new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers. Research limitations/implications – SCRM is at an early stage of......

Words: 9155 - Pages: 37

Premium Essay

Design of Modern Hueristics

...Natural Computing Series Series Editors: G. Rozenberg Th. Bäck A.E. Eiben J.N. Kok H.P. Spaink Leiden Center for Natural Computing Advisory Board: S. Amari G. Brassard K.A. De Jong C.C.A.M. Gielen T. Head L. Kari L. Landweber T. Martinetz Z. Michalewicz M.C. Mozer E. Oja G. P˘ un J. Reif H. Rubin A. Salomaa M. Schoenauer H.-P. Schwefel C. Torras a D. Whitley E. Winfree J.M. Zurada For further volumes: Franz Rothlauf Design of Modern Heuristics Principles and Application Prof. Dr. Franz Rothlauf Chair of Information Systems and Business Administration Johannes Gutenberg Universität Mainz Gutenberg School of Management and Economics Jakob-Welder-Weg 9 55099 Mainz Germany Series Editors G. Rozenberg (Managing Editor) Th. Bäck, J.N. Kok, H.P. Spaink Leiden Center for Natural Computing Leiden University Niels Bohrweg 1 2333 CA Leiden, The Netherlands A.E. Eiben Vrije Universiteit Amsterdam The Netherlands ISSN 1619-7127 Natural Computing Series ISBN 978-3-540-72961-7 e-ISBN 978-3-540-72962-4 DOI 10.1007/978-3-540-72962-4 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2011934137 ACM Computing Classification (1998): I.2.8, G.1.6, H.4.2 © Springer-Verlag Berlin Heidelberg 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of......

Words: 114592 - Pages: 459

Premium Essay


...Available online at Biotechnology Advances 26 (2008) 246 – 265 Research review paper Biological degradation of plastics: A comprehensive review Aamer Ali Shah ⁎, Fariha Hasan, Abdul Hameed, Safia Ahmed Department of Microbiology, Quaid-i-Azam University, Islamabad, Pakistan Received 22 November 2007; received in revised form 31 December 2007; accepted 31 December 2007 Available online 26 January 2008 Abstract Lack of degradability and the closing of landfill sites as well as growing water and land pollution problems have led to concern about plastics. With the excessive use of plastics and increasing pressure being placed on capacities available for plastic waste disposal, the need for biodegradable plastics and biodegradation of plastic wastes has assumed increasing importance in the last few years. Awareness of the waste problem and its impact on the environment has awakened new interest in the area of degradable polymers. The interest in environmental issues is growing and there are increasing demands to develop material which do not burden the environment significantly. Biodegradation is necessary for water-soluble or water-immiscible polymers because they eventually enter streams which can neither be recycled nor incinerated. It is important to consider the microbial degradation of natural and synthetic polymers in order to understand what is necessary for biodegradation and the mechanisms involved.......

Words: 16925 - Pages: 68