Target date retirement products experienced net cash inflows of $16.3 billion in 2024. Assets under management in these products totaled $475.6 billion at the end of 2024, representing 29.6% of total managed assets, up from 28.3% at the end of 2023. This shows continued success in this key segment.

Investment advisory clients outside the U.S. accounted for 8.8% of total AUM at the end of 2024, a slight increase from 8.6% in 2023. This suggests ongoing efforts to expand internationally, but the majority of assets still come from the U.S.

The company emphasizes investing in key capabilities, including investment professionals, distribution professionals, technologies, and new product offerings. This indicates a focus on maintaining competitiveness and attracting new clients and investments.

Operating expenses increased by 6.4% to $4,760.3 million in 2024, primarily driven by higher compensation costs, distribution and servicing costs, and advertising and promotion costs. This indicates increased investment in personnel and marketing to support growth.

The company is executing a multi-year strategic plan to strengthen its long-term competitive position. This includes investments in key capabilities and distribution channels, showing a commitment to future growth.

The Board of Directors oversees the firm's cybersecurity program, with many directors possessing significant technology experience. This indicates a strong commitment to managing cybersecurity risks.

The 10K states that revenues are based on the market value and composition of AUM, which are subject to substantial fluctuation due to factors outside of the company's control, including investment performance, general financial market declines, and investor mobility.

The company operates in an intensely competitive industry and faces pressure from competitors with greater resources, different regulatory environments, and the increasing popularity of lower-fee passive investment products. This could result in a loss of clients and assets or compel the company to reduce fees.

The company is subject to extensive and complex regulations, including those related to ESG practices, cybersecurity, and data protection. Compliance with these regulations imposes significant financial and strategic costs and non-compliance could result in fines and penalties.

The company acknowledges facing significant competition from passive-oriented investment strategies, which have gained market share from active managers. This trend could continue to impact the company's ability to attract and retain assets.

The company emphasizes the importance of its brand reputation for integrity, strong investment performance, and superior client service. However, this reputation is vulnerable to various threats, including regulatory inquiries, ESG issues, and misconduct by personnel.

The company may review acquisition and venture opportunities and engage in discussions and negotiations that could lead to an acquisition transaction or other financial relationships with another entity. This suggests a proactive approach to maintaining and enhancing its competitive position.

Operating margin increased to 32.9% in 2024, compared to 30.7% in 2023, driven by net revenue growth outpacing operating expense growth. This indicates improved operational efficiency.

The company continues to invest in technology capabilities, including hosted solutions. This suggests a focus on improving operational efficiency through technological advancements.

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

The company anticipates property and equipment expenditures of approximately $300 million in 2025, with more than three-quarters allocated to technology initiatives. This highlights the importance of technology to the company's future strategy.

The company recognizes the need to adopt new or adapt existing technologies, including generative AI, to meet client, industry, and regulatory demands. This indicates a commitment to staying at the forefront of technological advancements.

The company emphasizes the importance of cybersecurity and has a holistic firm-wide approach to risk management, including material risks from cybersecurity threats. This highlights the ongoing need to invest in and maintain robust cybersecurity measures.

The company paid $4.96 per share in regular dividends in 2024, an increase of 1.6% over 2023. This indicates a commitment to returning value to shareholders.

The company expended $334.5 million to repurchase nearly 3.0 million shares in 2024, primarily to offset dilution from equity-based compensation plans. This demonstrates a balanced approach to capital allocation.

As part of the OHA acquisition, T. Rowe Price committed $500 million to fund OHA product launches through 2026, with $360 million remaining as of December 31, 2024. This shows continued support for the OHA acquisition and its integration.

The company acknowledges increased regulatory activity and scrutiny related to ESG practices and related matters. This indicates a growing importance of ESG factors in the investment management industry.

The company notes that various clients and stakeholders have divergent views on ESG matters, with some aiming to increase their exposure to ESG investing and some choosing not to invest in such products. This poses challenges for managing divergent goals and preferences.

The company communicates certain initiatives and goals for corporate and investing activities related to ESG matters and could be scrutinized or criticized for the scope or nature of such initiatives or goals.

U.S. stocks produced strong gains for the second consecutive year, with equity indexes reaching all-time highs. This was driven by favorable corporate earnings and continued interest in companies expected to benefit from AI developments.

Global bond returns were mostly positive as many central banks reduced short-term interest rates due to easing inflation pressures. In the U.S., Treasury bill yields declined as the Federal Reserve reduced the federal funds target rate.

The company acknowledges that managed investment portfolios may have significant investments in markets subject to risk of loss from political or diplomatic developments, government policies, wars, conflicts, trade wars, currency fluctuations, illiquidity and capital controls, and changes in legislation related to ownership limitations.