Yahoo Finance T. Rowe Price (TROW) Introduces 5-D Framework for DC Plan
T. Rowe Price Group, Inc. TROW introduced a new patent-pending framework designed to assist defined contributions (DC) plan sponsors in evaluating and selecting the best-suited retirement income solutions considering the needs and preferences of their plan participants.
Presently, the majority of DC plan sponsors characterize their member base as aging and expect to keep retired members enrolled in the plan well throughout retirement. Both of these considerations encourage to modify the DC plan in order to better meet the interests of pre-retirees and retired participants.
TROW’s global retirement strategy and multi-asset research teams identified that the industry lacks a common and unbiased method to assist the sponsors in evaluating and expanding the range of retirement income products. As a result, the teams collaborated to develop a five-dimensional (5-D) framework that will provide a standardized language that DC plan sponsors, advisors and consultants can utilize to understand the trade-offs required by different retirement income products to meet specific participant objectives.
At the time of savings, investment solutions are primarily evaluated using a two-dimensional framework that is aimed at achieving a desired return while effectively managing risk. The latest 5-D framework for the decumulation phase of investments focuses on a wider range of objectives, including longevity risk hedge, payment level, volatility, liquidity of balance and unexpected balance depletion, addressing the need for a more comprehensive approach to retirement savings management.
Management’s Comments
Sebastien Page, head of global multi-asset and chief investment officer at TROW, stated, "It is our hope that the 5-D framework and supporting research will become a standard for how in-plan retirement income solutions are evaluated. Our team has created an unbiased and uniform model that allows plan sponsors to visualize, compare, and contrast retirement income products."
Jessica Sclafani, global retirement strategist at T. Rowe Price, mentioned, "The interconnected nature of the 5-D framework examines and quantifies the trade-offs that are uniquely inherent to retirement income needs. It offers a common method to compare and evaluate retirement income solutions."
Over the past six months, shares of T. Rowe Price have risen 10.9% compared with the industry’s 9.1% growth.
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Currently, TROW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked finance stocks worth mentioning are Origin Bancorp, Inc. OBK and BrightSphere Investment Group Inc. BSIG.
Origin Bancorp’s 2024 earnings estimates have moved north by 9.1% in the past 60 days. The stock has lost 1% over the past six months. Currently, OBK sports a Zacks Rank #1.
BrightSphere Investment Group’s 2024 earnings estimates have been revised 1.8% upward in the past 60 days. The company’s shares have gained 13.1% over the past six months. At present, BSIG carries Zacks Rank of 2 (Buy).
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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
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