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T. Rowe (TROW) to Buy Retiree, Ups Retirement Planning Ability
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T. Rowe Price Group (TROW - Free Report) announced a definitive agreement to acquire Retiree, Inc., a fintech firm providing innovative retirement income planning software. The deal is expected to close in second-quarter 2023, subject to the satisfaction of certain closing norms.
T. Rowe Price offers leading capabilities in multi-asset investing, portfolio construction and glide path strategies across different life stages. Hence, Retiree's retirement income planning software will complement and expand TROW’s existing retirement capabilities, enabling a comprehensive suite of retirement income solutions for investors and practitioner tools for financial professionals.
Moreover, Retiree's tax-aware income planning software makes personalized income strategies by drawing from a household's accounts with different tax treatments, including Roth conversion strategies. Such strategies aim to increase the lifetime value of total after-tax income and bequest value. Hence, the software enables clients to make better decisions, improving their potential to optimize their retirement resources.
Management noted that the software will be an integral part of its strategy. Further, combined with its investment capabilities, TROW will provide personalized retirement income solutions and services.
Phil Korenman, head of Individual Investors at T. Rowe Price, noted, "As technological innovations make quality advice and planning more accessible, investors are increasingly looking to their financial services partners for more comprehensive education and support in navigating the complexities and trade-offs of retirement,". He continued, "This acquisition provides T. Rowe Price the ability to meet this need at scale and more thoroughly deliver the strategies, tools and confidence millions of people need to live the retirement they envision."
Markedly, T. Rowe Price has been able to sustain positive earnings throughout a critical period, supported by its diverse business model. In December 2021, T. Rowe Price completed the acquisition of Oak Hill Advisors, L.P., thereby bulking up its offerings in the alternative investment market space. The company's earnings also continue to get help from a strong brand, consistent investment record and strong business volumes.
Going forward, the mix shift toward international growth funds is expected to help increase revenues and the investment management margin of the company. For the five years ended Dec 31, 2022, 68% of the T. Rowe Price U.S. mutual funds assets under management outperformed the Morningstar median, while 60% outperformed the passive peer median.
Over the past six months, shares of TROW have gained 5.1% compared with the industry’s rise of 19.6%.
Recently, JPMorgan (JPM - Free Report) entered an agreement to acquire Aumni. Founded in 2018, Aumni provides investment analytics software to venture capitalists. The financial terms of the deal, expected to close in the first half of 2023, were not disclosed.
The acquisition strengthens JPM’s commitment to building a leading private markets platform for companies, their employees and investors, as well as its confidence in the resilience of the venture-backed ecosystem.
New York Community Bancorp, Inc. (NYCB - Free Report) announced that its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bridge Bank, N.A., from the FDIC.
The deal comes after Signature Bank was closed by the regulators, following the collapse of Silicon Valley Bank. The FDIC took over the fallen bank and transferred all the deposits and substantially all the assets to Signature Bridge Bank, N.A.
NYCB received all the required regulatory approvals, including approval from the Office of the Comptroller of the Currency, and the deal has been closed.
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T. Rowe (TROW) to Buy Retiree, Ups Retirement Planning Ability
T. Rowe Price Group (TROW - Free Report) announced a definitive agreement to acquire Retiree, Inc., a fintech firm providing innovative retirement income planning software. The deal is expected to close in second-quarter 2023, subject to the satisfaction of certain closing norms.
T. Rowe Price offers leading capabilities in multi-asset investing, portfolio construction and glide path strategies across different life stages. Hence, Retiree's retirement income planning software will complement and expand TROW’s existing retirement capabilities, enabling a comprehensive suite of retirement income solutions for investors and practitioner tools for financial professionals.
Moreover, Retiree's tax-aware income planning software makes personalized income strategies by drawing from a household's accounts with different tax treatments, including Roth conversion strategies. Such strategies aim to increase the lifetime value of total after-tax income and bequest value. Hence, the software enables clients to make better decisions, improving their potential to optimize their retirement resources.
Management noted that the software will be an integral part of its strategy. Further, combined with its investment capabilities, TROW will provide personalized retirement income solutions and services.
Phil Korenman, head of Individual Investors at T. Rowe Price, noted, "As technological innovations make quality advice and planning more accessible, investors are increasingly looking to their financial services partners for more comprehensive education and support in navigating the complexities and trade-offs of retirement,". He continued, "This acquisition provides T. Rowe Price the ability to meet this need at scale and more thoroughly deliver the strategies, tools and confidence millions of people need to live the retirement they envision."
Markedly, T. Rowe Price has been able to sustain positive earnings throughout a critical period, supported by its diverse business model. In December 2021, T. Rowe Price completed the acquisition of Oak Hill Advisors, L.P., thereby bulking up its offerings in the alternative investment market space. The company's earnings also continue to get help from a strong brand, consistent investment record and strong business volumes.
Going forward, the mix shift toward international growth funds is expected to help increase revenues and the investment management margin of the company. For the five years ended Dec 31, 2022, 68% of the T. Rowe Price U.S. mutual funds assets under management outperformed the Morningstar median, while 60% outperformed the passive peer median.
Over the past six months, shares of TROW have gained 5.1% compared with the industry’s rise of 19.6%.
Image Source: Zacks Investment Research
Currently, TROW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions by Other Firms
Recently, JPMorgan (JPM - Free Report) entered an agreement to acquire Aumni. Founded in 2018, Aumni provides investment analytics software to venture capitalists. The financial terms of the deal, expected to close in the first half of 2023, were not disclosed.
The acquisition strengthens JPM’s commitment to building a leading private markets platform for companies, their employees and investors, as well as its confidence in the resilience of the venture-backed ecosystem.
New York Community Bancorp, Inc. (NYCB - Free Report) announced that its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bridge Bank, N.A., from the FDIC.
The deal comes after Signature Bank was closed by the regulators, following the collapse of Silicon Valley Bank. The FDIC took over the fallen bank and transferred all the deposits and substantially all the assets to Signature Bridge Bank, N.A.
NYCB received all the required regulatory approvals, including approval from the Office of the Comptroller of the Currency, and the deal has been closed.