Latest news with #T.Rowe
The Star
09-08-2025
- Business
- The Star
Over half of Hong Kong residents plan to work past 65, survey shows
More than half of Hong Kong residents do not plan to retire at the typical retirement age of 65, with many feeling that they cannot reach the average HK$5 million (US$637,000) savings target necessary for a comfortable post-work life, according to the T. Rowe Price Hong Kong Retirement Survey released on Thursday. About 52 per cent of respondents indicated they would not retire at age 65. Among them, about 80 per cent preferred not to retire at all or opted instead for a 'micro-retirement', which involves taking a break for several months to a few years before returning to work. The survey, the first of its kind by the US financial firm, polled 600 Hong Kong residents over the age of 30 in May. 'Financial pressure is certainly one factor, especially in a high-cost city like Hong Kong,' said Shen Wenting, global investment solutions strategist and portfolio manager at T. Rowe Price, which manages US$1.56 trillion in assets. About 60 per cent of respondents had a retirement savings target between HK$2 million and HK$10 million, with the average being HK$5 million, considered enough for them to feel secure in completely stopping work. For those considering a micro-retirement, the average savings target was HK$2 million. However, one-third of respondents felt they could not achieve their goals, and 40 per cent reported not having any retirement savings target at all. This may explain why 62 per cent cited the need to maintain an income as their reason for not retiring at age 65. The survey showed that non-financial motivations were equally influential, Shen said, noting that 69 per cent of respondents wanted to continue working to keep their minds active, while 40 per cent sought the sense of accomplishment that work provided. About 72 per cent said they would be satisfied with earning less from their jobs after retirement age. For those opting for micro-retirement, 34 per cent sought a break to improve their well-being, 24 per cent aimed to relieve work pressure, and 16 per cent wanted to pursue personal interests. 'These findings suggest a growing desire to reprioritise life beyond just income,' Shen said. Financial firms like Manulife, HSBC and BOC Life have been targeting retirees with new investment products that offer regular income streams, amid a broader government-led initiative to capture opportunities in the so-called silver economy. People aged 65 and above comprised 22 per cent of Hong Kong's 7.5 million residents last year, according to official data. Projections indicated that senior citizens would account for 31 per cent of the population by 2036. Shen said only 20 per cent of respondents were aware of retirement investment products, while many opted for conservative investment strategies. About 54 per cent kept their retirement savings in time deposits, which currently offer interest rates of only 1 per cent to 2 per cent, while 52 per cent chose savings accounts with almost zero interest. Only 30 per cent opted for higher-return investments such as mutual funds, and 24 per cent invested in annuities. Shen attributed the conservative investment choices to the entrenched belief that 'cash is king', as well as economic uncertainty. She urged retirees to consider a different investment approach to meet their retirement goals. For those wishing to retire at 65, investing more in stocks at a younger age could yield higher returns, while shifting to lower-risk fixed income as they aged was advisable, Shen suggested. Individuals who plan to continue working might consider adjusting their asset allocation towards a slightly more aggressive stance, with a higher percentage in equities to capitalise on growth opportunities, she added. For micro-retirees, taking a career break of a couple of years 'will not substantially change their retirement horizon', Shen said. 'We suggest following a glide path based on a general estimate of time left until retirement.' - SOUTH CHINA MORNING POST
Yahoo
01-08-2025
- Business
- Yahoo
T. Rowe Price (TROW) Q2 Earnings Top Estimates
T. Rowe Price (TROW) came out with quarterly earnings of $2.24 per share, beating the Zacks Consensus Estimate of $2.15 per share. This compares to earnings of $2.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.19%. A quarter ago, it was expected that this financial services firm would post earnings of $2.09 per share when it actually produced earnings of $2.23, delivering a surprise of +6.7%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. T. Rowe, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $1.72 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $1.73 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. T. Rowe shares have lost about 10.3% since the beginning of the year versus the S&P 500's gain of 7.8%. What's Next for T. Rowe? While T. Rowe has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for T. Rowe was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.30 on $1.8 billion in revenues for the coming quarter and $8.93 on $7.12 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Capital Southwest (CSWC), has yet to report results for the quarter ended June 2025. The results are expected to be released on August 6. This business development company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of -6.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Capital Southwest's revenues are expected to be $54.74 million, up 6.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report Capital Southwest Corporation (CSWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
02-07-2025
- Business
- Bloomberg
2025 midyear outlook: Global asset managers
Three keys for 2025: Global asset managers Asset-manager stocks track market despite 12% cut to 2025-26 EPS Asset-manager stock returns have kept pace with the broader market in 2025, despite a 12% cut to 2025-26 EPS estimates tied to April turmoil. Though forecasts have stabilized, they've trailed the wider rebound amid lingering macroeconomic uncertainty, tempering earlier double-digit profit-growth expectations. Valuations have recovered, yet the group still trades at a 50% discount to the broader sector. Asset managers match 7% market return year to date Global large-cap asset managers have performed roughly in line with the broader market's 7% year-to-date return, following a year of outperformance in 2024 that reversed underperformance in 2022-23. Asset-price gains — particularly in equities — remain critical to supporting top- and bottom-line outlooks, with improved organic-growth trends offering an additional lift. Still, sustained optimism hinges on a more stable macroeconomic backdrop. Peers in the BI large-cap asset-manager index rose by a median 26% in 2024, topping the MSCI ACWI's 18% gain, after underperforming by 9 percentage points in 2023. DWS leads year-to-date gains at 25%, while T. Rowe is the weakest with a 16% decline. CI Financial led 2024 performance on a take-private bid, while Franklin trailed amid Western Asset-related strain that emerged in 2H. Markets drive 12% cut to managers' 2025-26 EPS Asset-manager EPS estimates have stabilized since late April, though they've trailed the broader market rebound following sharp cuts amid the earlier equity drawdown. Full-year 2025 and 2026 EPS forecasts are down 12%, with aggregate revenue estimates 6% lower and operating income off 8% year to date. T. Rowe has seen the steepest revenue downgrade (8%), given its equity-heavy exposure, while Franklin shows the largest profit-expectation cut amid unique Wamco-related strain. BlackRock's estimates have held up best, reflecting platform resilience and support from M&A. Among BI-tracked peers, Franklin and AllianceBernstein show the widest positive gap between stock-price change and EPS revisions — lifting multiples — while T. Rowe and Invesco reflectnegative gaps that have compressed valuations. Multiples reclaim 1Q levels, reflect secular pressure The BI large-cap asset-manager peer group's forward P/E has recovered from April lows and now sits slightly above its long-term average, having reclaimed early 1Q when global asset prices were near their peak. At 10.4x, the group trades above its 2023-24 average of 9.6x, aided by market gains and generally supportive organic growth, though volatility surrounding broader macroeconomic uncertainty remains a risk. Still, valuations are well above the 8.9x seen in 2022,when sharp equity and bond declines were a top and bottom-line headwind. The five-year average stands at 9.9x — roughly a 50% discount to the MSCI ACWI Index — a gap that's widened after holding a premium through much of 2010 to mid-2014. The persistent valuation gap reflects fee and margin pressure alongside structural organic-growth headwinds. BlackRock tops manager multiples amid market swings BlackRock's 21x 2025 P/E highlights its leadership in organic growth, profitability and resilience –supporting a premium to its 19x historical average and leading traditional peers. Group valuations appear mostly elevated relative to norms, though fundamentals remain mixed. Franklin (11x) trades the furthest above trend, despite Wamco challenges that are reshaping its franchise. T. Rowe also trades at 11x but sits the furthest below norms, as equity-heavy exposure heightens profit sensitivity to persistent outflows. Invesco's 9x multiple, the lowest among peers, reflects a painful but necessary asset-mix transition that weighs on its earnings power. The group's 11x five-year median still trails the 15x for BI-tracked alternative managers, underscoring divergent growth, fee and margin trajectories. PE-manager multiples reflect core fee growth, exit challenges US private equity manager valuations account for resilient core-fee fundamentals overcoming industry challenges due to market uncertainty. Exit delays weigh on 2025 profit prospects, even as managers express some 2H optimism. Credit operators are faring better, reflecting demand and asset growth, as well as managers less dependent on monetization. Shares fell a median 18% through June 18, yet most P/E multiples recovered from April lows, with the group trading over 19x. Fee growth may persist, while activity and exits are key 2H variables. Brookfield's valuation leads on lack of exit dependence as Ares' holds on its credit operations, along with Blackstone. KKR's and TPG's growth helps. Apollo's multiple was helped by credit business, but insurance's slower growth has weighed. Carlyle's multiple held in 1H, yet trails peers.
Yahoo
06-04-2025
- Business
- Yahoo
Want to Retire in a Market Slump? Your Withdrawal Strategy Matters Most
It's always hard to make your retirement savings last as long as you need it to — but it becomes even harder when you're retiring during a market downturn, as Americans retiring right now are experiencing. A market downturn means that any money you still have in the market is shrinking rather than growing, potentially losing you money at the exact point you're ready to use it. T. Rowe Price, though, has a strategy for maximizing your savings if you are unlucky enough to retire during a market downturn. Whether you're ready to retire now or planning for the future, consider working with a financial advisor to make sure you do it right. How To Withdraw During a Downturn The key to successfully withdrawing your retirement funds during a market downturn is to take a conservative approach and not take too much out at the beginning. According to a recent T. Rowe Price study: 'By following a conservative withdrawal approach early in retirement and planning for temporary adjustments along the way (if needed), retirees can weather the markets and have a truly fulfilling and enjoyable next phase of life.' The key is to remember that a market downturn won't last forever. Bear markets typically last much less long than bull markets, so even if the first few years of your retirement are tough, chances are that most of your retirement won't be. Historical Precedent for Conservative Strategy To test this theory, T. Rowe Prices experts looked at three historical examples: 1. The 1973 recession, caused by an oil embargo and an energy crisis. T. Rowe's analysis tested the '4% rule,' which favors taking out an initial withdrawal of 4% from your retirement funds. Though the first few years of retirement for someone retiring in 1973 were difficult, seeing shrinking portfolios and significant inflation, things got better quickly. After 30 years, the portfolio balance was double where it started, assuming a 4% draw down and a portfolio that was 60% stocks and 40% bonds. 2. The 2000 recession, coinciding with the downturn after the Sept. 11 attacks Again, the first few years were difficult, but by the end of 2022 someone retiring in 2000 would have a portfolio worth near what it was at the beginning of retirement — again, assuming a 4% drawdown and a portfolio that is split 60/40 between stocks and bonds. 3. The 2008 recession, caused by the financial crisis There was some pain in the beginning for this retiree, but by 2021 they had a portfolio that had increased in value by more than 50%, using the same assumptions as the above examples. The Bottom Line The market isn't looking good right now, and that is scary for everyone — especially those who are already retired or nearing retirement. There is good news, though — market downturns and recessions don't last forever. If you are patient and are conservative in your drawdown strategy, chances are that your portfolio will rebound and you'll be able to enjoy the retirement you planned on — provided you saved what you needed to during your working life. Retirement Planning Tips A financial advisor can help you make the right decisions at all stages of retirement planning. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. You can use SmartAsset's free retirement calculator to figure out how much money you'll need in retirement and if you're on the right path. Photo credit: © Seisa, © © The post How to Retire During a Market Downturn: It's All About Withdrawing This Way appeared first on SmartAsset Blog.
