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T. Rowe Price Sees Client Redemptions Continuing Into 2022

  • Stock is day’s worst performer in the S&P 500 Financials Index
  • CEO Rob Sharps says growth strategy currently ‘out of favor’
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T. Rowe Price Group Inc. tumbled more than 4% Thursday, the most among major U.S. financial stocks, after the firm said client redemptions may continue with the Federal Reserve poised to raise interest rates.

“That tends not to be great for a growth style of investing,” Chief Executive Officer Rob Sharps said in a phone interview after the $1.69 trillion money manager posted fourth-quarter results. “We’re disproportionately exposed to growth as a strategy, and if that’s out of favor that will be difficult for us to overcome.”