In 2023, the target date retirement products experienced net cash inflows of $13.1 billion. The assets under management in our target date retirement products totaled $408.4 billion at December 31, 2023, or 28.3% of our managed assets at December 31, 2023, compared with 26.2% at the end of 2022.

The company's strategic initiatives include focusing on further global growth in select high-opportunity countries, broadening reach in the private and alternatives market, and deepening client relationships.

The acquisition of Oak Hill Advisors (OHA) accelerates expansion into alternatives investment markets and complements existing global platform and ongoing strategic initiatives. Alternative credit strategies continue to be in demand from investors across the globe seeking attractive yields and risk-adjusted returns.

The company is strengthening its distribution technology to enhance the digital client experience and client reporting. Operating expenses include costs incurred to maintain and enhance administrative and operating services infrastructure, such as technology assets, depreciation, amortization, and research and development.

The company is focused on attracting and retaining top talent, enabling effective hybrid collaboration, and delivering on expanded diversity, equity, and inclusion goals.

The company employed 7,906 associates at the end of 2023, a 0.5% increase from 2022. More than 35% of open positions were filled by internal applicants, indicating a focus on developing and promoting existing talent.

The 10-K states that revenues are primarily derived from investment advisory services and are dependent on the value and composition of AUM, which are subject to substantial fluctuation due to factors outside of the company's control.

The company operates in an intensely competitive industry, and competitive pressures may result in a loss of clients and their assets or compel the company to reduce fees, thereby reducing revenues and net income.

The company manages assets and provides products/services under agreements that specify investment guidelines. Failure to comply could result in damage to reputation, client losses, or regulatory actions.

The market environment has led investors to increasingly favor lower fee passive investment products, and investment advisors that emphasize passive products have gained and may continue to gain market share from active managers.

As a member of the financial services industry, we are subject to substantial competition in all aspects of our business. We compete with brokerage and investment banking firms, insurance companies, banks, mutual fund companies, hedge funds, and other financial institutions and funds in all aspects of our business and in every country in which we offer our products and services.

Strong investment performance and brand awareness is a key driver to attracting and retaining assets—and to our long-term success.

The level of operating expenses can vary significantly for many reasons, including expenses incurred in connection with the multi-year strategic plan, variations in compensation expense, and changes in advertising and promotion expenses.

The company is implementing several strategic, multi-year initiatives designed to strengthen its long-term competitive position.

The company relies on third-party service providers for the execution and delivery of some services. Failure to properly execute or oversee these services could have an adverse impact on the business.

The company may be required to make significant capital expenditures to maintain a competitive technology stack.

The company has a holistic firm-wide approach to risk management including material risks from cybersecurity threats.

The company has previously been the target of cybersecurity attacks and expects such attempts to continue, potentially with more frequency or sophistication.

As part of the OHA acquisition, T. Rowe Price committed $500 million to fund OHA products through 2026.

The company expended $253.9 million in 2023 to repurchase 2.4 million shares.

The company paid $4.88 per share in regular dividends in 2023, an increase of 1.7% over the $4.80 per share paid in 2022.

Many aspects of the asset management industry are seeing increased regulatory activity and scrutiny, in particular related to environmental, social, and governance practices and related matters.

Actual or perceived failure to adequately address the ESG expectations, or failure to manage conflicts of interests of our various stakeholders could lead to a tarnished reputation and loss of client assets or harm our access to capital.

Our business and those of our clients could be impacted by climate change-related risks. Climate change may present risk to our business through changes in the physical climate or from the process of transitioning to a lower-carbon economy.

Arguably the most significant factor affecting the U.S. economy and the financial markets throughout the year was rising interest rates in response to elevated inflation.

The market overcame bearish factors such as regional bank turmoil in the spring; uncertainty about Congress and President Biden agreeing to raise the debt ceiling; geopolitical tensions; and a sluggish Chinese economic recovery amid property sector distress.

Developed non-U.S. equity markets produced strong gains in U.S. dollar terms; returns to U.S. investors were lifted by a weaker dollar versus major European currencies.