BALTIMORE (January 29, 2020) - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) today reported its results for the fourth quarter and full year 2019.

Assets under management end quarter at $1.21 trillion

Net client inflows of $2.8 billion for Q4 2019 and $13.2 billion for 2019 Net revenues of $1.5 billion for Q4 2019 and $5.6 billion for 2019

Diluted earnings per common share of $2.24 for Q4 2019 and $8.70 for 2019

Adjusted non-GAAP diluted earnings per common share of $2.03 for Q4 2019 and $8.07 for 2019 Long-term investment performance remains strong

Assets under management in the firm's target date retirement products, which are reported as part of the multi- asset column in the table above, were $292.4 billion at December 31, 2019, compared with $272.0 billion at September 30, 2019 and $230.4 billion at December 31, 2018. Net cash inflows into these portfolios were

$3.2 billion in Q4 2019 and $9.8 billion for 2019.

Investors domiciled outside the United States accounted for 6.9% of the firm's assets under management at December 31, 2019 and 6.2% at December 31, 2018.

Financial Results

Net Revenues earned in Q4 2019 were $1.5 billion, up 12.5% from Q4 2018.

Investment advisory revenues earned in Q4 2019 from the firm's U.S. mutual funds were $894.9 million, an increase of 9.4% from Q4 2018. Average assets under management in these funds increased 10.4% to

$661.6 billion in Q4 2019.

Investment advisory revenues earned in Q4 2019 from subadvised, separate accounts, and other investment products were $449.8 million, an increase of 23.0% from Q4 2018. Average assets under management for these products increased 21.4% to $500.4 billion in Q4 2019.

The effective fee rate of 45.9 basis points in Q4 2019 slightly increased compared to the 45.8 basis points earned in Q3 2019, though decreased from the 46.4 basis points in Q4 2018. The decline in the effective fee rate from Q4 2018 is largely due to client transfers to lower fee vehicles or share classes over the last twelve months and, to a lesser extent, fee reductions made to certain mutual funds and other products since Q4 2018. Over time, the firm's effective fee rate can be impacted by market or cash flow related shifts among asset and share classes, price changes in existing products, and asset level changes in products with tiered-fee structures.

Administrative, distribution, and servicing fees in Q4 2019 were $124.0 million, an increase of 2.2% from Q42018.Theincreasewasprimarilyattributabletoincreasedrecordkeepingfeesfromhigherassetsunder management and participant transactions, partially offset by lower mutual fund servicing revenue.

Operating expenses in Q4 2019 were $888.4 million, an increase of 16.5% over Q4 2018, of which nearly 45% was driven by a significant increase in market-related compensation expense related to the supplemental saving plan as well as the absence in 2019 of a $15.2 million reduction in 2018 operating expenses related to the conclusion of the Dell appraisal rights matter. The higher expense related to the supplemental savings plan is partially offset by the non-operating gains earned on the investments used to economically hedge the related liability. On a non-GAAP basis, the firm's operating expenses in Q4 2019 were $863.5 million, an 8.7% increase over Q4 2018. The increase in non-GAAP operating expenses, as well as the remaining increase in GAAP expenses, is largely attributable to higher headcount, the firm's continued strategic investments, and higher bonus and stock-based compensation expense, which is driven by the firm's operating results.

Compensation and related costs were $528.2 million in Q4 2019, an increase of 15.6% over Q4 2018. This increase was primarily related to higher compensation expense related to the supplemental savings plan given the strong equity market returns experienced in Q4 2019 compared with the sharp equity market declines in Q4 2018. Also contributing to the increase was a 4.3% growth in average headcount and higher bonus and stock-based compensation expense. The firm employed 7,365 associates at

December 31, 2019, an increase of 4.9% from the end of 2018.

Advertising and promotion expenses were $38.3 million in Q4 2019, an increase of 7.0% over Q4 2018. The increase was primarily driven by increased media activity in Q4 2019 compared to Q4 2018.

Technology, occupancy, and facility costs were $117.8 million in Q4 2019, an increase of 17.7% from the $100.1 million recognized in Q4 2018. The increase was due to incremental investment in the firm's technologycapabilities,includingrelateddepreciationandhostedsolutionlicenses,aswellasnon-recurring office facilitycosts.

General, administrative, and other costs were $99.3 million in Q4 2019, an increase of 28.6% compared with the $77.2 million recognized in Q4 2018. The increase was primarily due to higher professional fees and third-party investment research costs.

For 2019, operating expenses on a GAAP basis increased 7.3% compared to 2018, and, on a non-GAAP basis, increased 4.1%. The firm currently expects its 2020 non-GAAP operating expense growth to be in the range of 6% to 9%. This expense growth guidance includes continued investments in the business and technology capabilities, the firm's cost optimization efforts, and the final part of the phased implementation of paying for all third-party investment research. As such, 2020 operating expenses will reflect a full year of all third-party investment research costs globally. The firm could elect to adjust its expense growth should unforeseen circumstances arise, including significant market movements.

Non-operating income was $170.0 million in Q4 2019, as strong equity markets led to gains in our investment portfolio as opposed to weak equity markets in Q4 2018 that led to losses of $151.9 million. The firm's consolidated investment products were the primary contributor to the net gains recognized in Q4 2019. Cash and discretionary investments added $27.2 million in gains during the 2019 quarter. The components of non-operating income for the fourth quarter and the full year of 2019 and 2018 are included in the tables at the end of this release.

Income Taxes. The firm's effective tax rate was 20.8% in Q4 2019 compared with 30.3% in Q4 2018. These rates contribute to effective tax rates of 23.2% and 25.8% for the full year of 2019 and 2018, respectively. The firm's lower effective tax rate for Q4 2019 as compared to the 2018 quarter was driven primarily by the higher net income attributable to redeemable non-controlling interests held in the firm's consolidated T. Rowe Price investment products, which is not taxable to the firm despite being included in pre-tax income. Higher tax benefits associated with our stock-based awards and a lower state effective tax rate in 2019 from new Maryland state tax legislation enacted in 2018 also contributed to the lower rate. The 2018 year also includes nonrecurring charges totaling

$28.7 million related to the enactment of U.S. tax reform and Maryland state tax legislation.

The firm's common shares outstanding were 235.2 million at December 31, 2019, compared with 238.1 million at the end of 2018.

In 2019, the firm expended $708.8 million to repurchase 7.0 million shares, or 2.9%, of its outstanding common shares at an average price of $101.65, including $142.0 million to repurchase 1.3 million shares during Q4 2019 at an average price of $110.89.

The firm invested $204.6 million during the full year ended 2019 in capitalized facilities and technology and expects capital expenditures for 2020 to be up to $210 million, of which about three-quarters is planned for technology initiatives. These expenditures are expected to continue to be funded from the firm's operating resources.

Investment Performance(1)

The percentage of the firm's U.S. mutual funds⁽²⁾ (across primary share classes) that outperformed their comparable Morningstar median on a total return basis and that are in the top Morningstar quartile for the one-, three-, five-, and 10-years ended December 31, 2019, were:

In addition, 84% of the firm's rated U.S. mutual funds' assets under management ended the quarter with an overall rating of four or five stars from Morningstar. The performance of the firm's institutional strategies against their benchmarks remains competitive, especially over longer time periods.

Other Matters

The financial results presented in this release are unaudited. KPMG LLP is currently completing its audits of the firm's 2019 consolidated financial statements and internal controls over financial reporting at December 31, 2019. The firm expects that KPMG LLP will complete its work in mid-February and that the firm will then file its Form 10-K Annual Report for 2019 with the U.S. Securities and Exchange Commission. The Form 10-K will include additional information, including the firm's audited consolidated financial statements, management's report on internal controls over financial reporting at December 31, 2019, and the reports of KPMG LLP.

Certain statements in this earnings release may represent “forward-looking information,” including information relating to anticipated changes in revenues, net income and earnings per common share, anticipated changes in the amount and composition of assets under management, anticipated expense levels, estimated effective tax rates, and expectations regarding financial results, future transactions, new products and services, investments, capital expenditures, dividends, stock repurchases, the timing of the assumption of all third party research payments, changes in our effective fee rate, and other market conditions. For a discussion concerning risks and other factors that could affect future results, see the firm's 2018 Annual Report on Form 10-K.

Founded in 1937, Baltimore-based T. Rowe Price (troweprice.com) is a global investment management organization that provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The organization also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

Management Commentary

William J. Stromberg, president and chief executive officer, commented: "2019 was an excellent year for the firm as we continued to deliver strong long-term investment performance, provide outstanding client service, advance our strategic priorities, and deliver attractive financial results for our stockholders. Organic assets under management (AUM) growth for the year was 1.4% and was broadly diversified across asset classes, channels, and client geographies. Average AUM and revenues were supported by both net flows and strong markets, and non-GAAP operating expenses were well controlled, resulting in strong adjusted net income. We also continued to return capital to stockholders by increasing our annual dividend 8.6%, and opportunistically repurchasing nearly 3% of our outstanding stock at an average price of $101.65.

“In the fourth quarter, we saw positive net flows of $2.8 billion driven by our multi-asset franchise, which had its highest Q4 for target date flows since 2014. International equity was also a notable contributor, as was the APAC region which saw strong inflows into the recently-launched Growth Stock Japanese Investment Trust (ITM). The pace of operating expense growth picked up relative to the first three quarters of the year, largely as a result of increased hiring and the deployment of professional fees that we initially planned to spend earlier in 2019, as teams continued to execute against their plans. Highlights for the quarter include:

The SEC's approval of our application for semi-transparent active ETFs. As a next step, the NYSE Arca filed an application with the SEC under Rule 19b-4 in December in order to amend its trading rules to list our semi-transparent ETFs. We also filed registration statements with the SEC for our products and hope to be in market in 2020 with four of our flagship U.S. equity strategies - Blue Chip Growth, Growth Stock, Dividend Growth, and Equity Income.

Continued development of our long-term strategic product pipeline and the launch of three new products for the firm - Growth Stock ITM, Dynamic Credit Fund SICAV, and China Evolution Equity Fund, our first mutual fund focused solely on Chinese equities.

The launch of a number of new features and digital enhancements for our individual investor and recordkeeping clients. Specific to recordkeeping clients, we enhanced the participant homepage, which serves as the hub of our multichannel engagement experience, and announced an integrated health savings account solution in partnership with ConnectYourCare.

“I am very pleased with the progress we made in 2019 and look forward to continuing to execute against our strategic priorities in 2020, enabling us to continue to deliver strong performance and service to our clients. I remain grateful to our associates around the world for their contributions to our results."

Assets under management in the firm's target date retirement products, which are reported as part of the multi- asset column in the table above, were $292.4 billion at December 31, 2019, compared with $272.0 billion at September 30, 2019 and $230.4 billion at December 31, 2018. Net cash inflows into these portfolios were $3.2 billion in Q4 2019 and $9.8 billion for 2019.

Investors domiciled outside the United States accounted for 6.9% of the firm's assets under management at December 31, 2019 and 6.2% at December 31, 2018

Financial Results

Net Revenues earned in Q4 2019 were $1.5 billion, up 12.5% from Q4 2018.

Investment advisory revenues earned in Q4 2019 from the firm's U.S. mutual funds were $894.9 million, an increase of 9.4% from Q4 2018. Average assets under management in these funds increased 10.4% to

$661.6 billion in Q4 2019.

Investment advisory revenues earned in Q4 2019 from subadvised, separate accounts, and other investment products were $449.8 million, an increase of 23.0% from Q4 2018. Average assets under management for these products increased 21.4% to $500.4 billion in Q4 2019.

The effective fee rate of 45.9 basis points in Q4 2019 slightly increased compared to the 45.8 basis points earned in Q3 2019, though decreased from the 46.4 basis points in Q4 2018. The decline in the effective fee rate from Q4 2018 is largely due to client transfers to lower fee vehicles or share classes over the last twelve months and, to a lesser extent, fee reductions made to certain mutual funds and other products since Q4 2018. Over time, the firm's effective fee rate can be impacted by market or cash flow related shifts among asset and share classes, price changes in existing products, and asset level changes in products with tiered-fee structures.

Administrative, distribution, and servicing fees in Q4 2019 were $124.0 million, an increase of 2.2% from Q42018.Theincreasewasprimarilyattributabletoincreasedrecordkeepingfeesfromhigherassetsunder management and participant transactions, partially offset by lower mutual fund servicing revenue.

Operating expenses in Q4 2019 were $888.4 million, an increase of 16.5% over Q4 2018, of which nearly 45% was driven by a significant increase in market-related compensation expense related to the supplemental saving plan as well as the absence in 2019 of a $15.2 million reduction in 2018 operating expenses related to the conclusion of the Dell appraisal rights matter. The higher expense related to the supplemental savings plan is partially offset by the non-operating gains earned on the investments used to economically hedge the related liability. On a non-GAAP basis, the firm's operating expenses in Q4 2019 were $863.5 million, an 8.7% increase over Q4 2018. The increase in non-GAAP operating expenses, as well as the remaining increase in GAAP expenses, is largely attributable to higher headcount, the firm's continued strategic investments, and higher bonus and stock-based compensation expense, which is driven by the firm's operating results.

Compensation and related costs were $528.2 million in Q4 2019, an increase of 15.6% over Q4 2018. This increase was primarily related to higher compensation expense related to the supplemental savings plan given the strong equity market returns experienced in Q4 2019 compared with the sharp equity market declines in Q4 2018. Also contributing to the increase was a 4.3% growth in average headcount and higher bonus and stock-based compensation expense. The firm employed 7,365 associates at

December 31, 2019, an increase of 4.9% from the end of 2018.

Advertising and promotion expenses were $38.3 million in Q4 2019, an increase of 7.0% over Q4 2018. The increase was primarily driven by increased media activity in Q4 2019 compared to Q4 2018.

Technology, occupancy, and facility costs were $117.8 million in Q4 2019, an increase of 17.7% from the $100.1 million recognized in Q4 2018. The increase was due to incremental investment in the firm's technologycapabilities,includingrelateddepreciationandhostedsolutionlicenses,aswellasnon-recurring office facilitycosts.

General, administrative, and other costs were $99.3 million in Q4 2019, an increase of 28.6% compared with the $77.2 million recognized in Q4 2018. The increase was primarily due to higher professional fees and third-party investment research costs.

For 2019, operating expenses on a GAAP basis increased 7.3% compared to 2018, and, on a non-GAAP basis, increased 4.1%. The firm currently expects its 2020 non-GAAP operating expense growth to be in the range of 6% to 9%. This expense growth guidance includes continued investments in the business and technology capabilities, the firm's cost optimization efforts, and the final part of the phased implementation of paying for all third-party investment research. As such, 2020 operating expenses will reflect a full year of all third-party investment research costs globally. The firm could elect to adjust its expense growth should unforeseen circumstances arise, including significant market movements.

Non-operating income was $170.0 million in Q4 2019, as strong equity markets led to gains in our investment portfolio as opposed to weak equity markets in Q4 2018 that led to losses of $151.9 million. The firm's consolidated investment products were the primary contributor to the net gains recognized in Q4 2019. Cash and discretionary investments added $27.2 million in gains during the 2019 quarter. The components of non-operating income for the fourth quarter and the full year of 2019 and 2018 are included in the tables at the end of this release.

Income Taxes. The firm's effective tax rate was 20.8% in Q4 2019 compared with 30.3% in Q4 2018. These rates contribute to effective tax rates of 23.2% and 25.8% for the full year of 2019 and 2018, respectively. The firm's lower effective tax rate for Q4 2019 as compared to the 2018 quarter was driven primarily by the higher net income attributable to redeemable non-controlling interests held in the firm's consolidated T. Rowe Price investment products, which is not taxable to the firm despite being included in pre-tax income. Higher tax benefits associated with our stock-based awards and a lower state effective tax rate in 2019 from new Maryland state tax legislation enacted in 2018 also contributed to the lower rate. The 2018 year also includes nonrecurring charges totaling

$28.7 million related to the enactment of U.S. tax reform and Maryland state tax legislation.

The firm's common shares outstanding were 235.2 million at December 31, 2019, compared with 238.1 million at the end of 2018.

In 2019, the firm expended $708.8 million to repurchase 7.0 million shares, or 2.9%, of its outstanding common shares at an average price of $101.65, including $142.0 million to repurchase 1.3 million shares during Q4 2019 at an average price of $110.89.

The firm invested $204.6 million during the full year ended 2019 in capitalized facilities and technology and expects capital expenditures for 2020 to be up to $210 million, of which about three-quarters is planned for technology initiatives. These expenditures are expected to continue to be funded from the firm's operating resources.

Investment Performance(1)

The percentage of the firm's U.S. mutual funds⁽²⁾ (across primary share classes) that outperformed their comparable Morningstar median on a total return basis and that are in the top Morningstar quartile for the one-, three-, five-, and 10-years ended December 31, 2019

In addition, 84% of the firm's rated U.S. mutual funds' assets under management ended the quarter with an overall rating of four or five stars from Morningstar. The performance of the firm's institutional strategies against their benchmarks remains competitive, especially over longer time periods.

Other Matters

The financial results presented in this release are unaudited. KPMG LLP is currently completing its audits of the firm's 2019 consolidated financial statements and internal controls over financial reporting at December 31, 2019. The firm expects that KPMG LLP will complete its work in mid-February and that the firm will then file its Form 10-K Annual Report for 2019 with the U.S. Securities and Exchange Commission. The Form 10-K will include additional information, including the firm's audited consolidated financial statements, management's report on internal controls over financial reporting at December 31, 2019, and the reports of KPMG LLP.

Certain statements in this earnings release may represent “forward-looking information,” including information relating to anticipated changes in revenues, net income and earnings per common share, anticipated changes in the amount and composition of assets under management, anticipated expense levels, estimated effective tax rates, and expectations regarding financial results, future transactions, new products and services, investments, capital expenditures, dividends, stock repurchases, the timing of the assumption of all third party research payments, changes in our effective fee rate, and other market conditions. For a discussion concerning risks and other factors that could affect future results, see the firm's 2018 Annual Report on Form 10-K.

Founded in 1937, Baltimore-based T. Rowe Price (troweprice.com) is a global investment management organization that provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The organization also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.