Profile: T Rowe Price Group Inc (TROW.O)

T. Rowe Price Group, Inc. is a financial services holding company that provides investment advisory services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios. The Company operates its investment advisory business through its subsidiary companies, primarily T. Rowe Price Associates, T. Rowe Price International and T. Rowe Price Global Investment Services. The Company also manages a range of United States and international stock, blended asset, bond, and money market mutual funds and other investment portfolios, which are designed to meet the varied and changing needs and objectives of individual and institutional investors. On January 20, 2010, the Company completed the acquisition of 26% equity interest in UTI Asset Management Company.

The Company’s assets under management are accumulated from a client base across four primary distribution channels: third-party financial intermediaries that distribute its managed investment portfolios in the United States and other countries, individual United States investors on a direct basis, United States defined contribution retirement plans, and institutional investors in the United States and other countries. The Company also provides certain administrative services as ancillary services to its investment advisory clients.

Price Funds

The Company provides investment advisory, distribution and other administrative services to the Price funds under various agreements. Investment advisory services are provided to each fund under individual investment management agreements that grant the fund the right to use the T. Rowe Price name. Investment advisory revenues are based upon the daily net assets managed in each fund. Certain of the T. Rowe Price mutual funds also offer an advisor and R classes of shares that are distributed to mutual fund shareholders through third-party financial intermediaries. The Company’s subsidiary, T. Rowe Price Investment Services, is the principal distributor of the T. Rowe Price mutual funds and enters into agreements with each intermediary.

The Company provides advisory-related administrative services to the Price funds through its subsidiaries. T. Rowe Price Services provides mutual fund transfer agency and shareholder services, including maintenance of staff, facilities, and technology and other equipment to respond to inquiries from fund shareholders. T. Rowe Price Associates provides mutual fund accounting services, including maintenance of financial records, preparation of financial statements and reports, daily valuation of portfolio securities and computation of daily net asset values per share. T. Rowe Price Retirement Plan Services provides participant accounting, plan administration and transfer agent services for defined contribution retirement plans that invest in the Price funds.

The Company’s trustee services are provided by another subsidiary, T. Rowe Price Trust Company, which offers common trust funds for investment by qualified retirement plans and serve as trustee for retirement plans and individual retirement plans (IRAs). T. Rowe Price Trust Company may not accept deposits and cannot make personal or commercial loans. Another subsidiary, T. Rowe Price Savings Bank, issues federally insured certificates of deposit. The Company also provides advisory planning services to fund shareholders and potential investors through its subsidiary T. Rowe Price Advisory Services. These services include retirement planning services, such as saving for retirement, transitioning into retirement and income in retirement.

At December 31, 2009, assets under management in the Price funds aggregated $232.7 billion.

Other Investment Portfolios

As of December 31, 2009, the Company managed $158.6 billion in other client investment portfolios. The Company provides investment advisory services to these clients through its subsidiaries on a separately managed or sub-advised account basis and through sponsored investment portfolios, such as common trust funds, Luxembourg-based mutual funds and variable annuity life insurance plans. As of December 31, 2009, these portfolios included United States stocks, international stocks, stable value assets and, bonds and money market securities.