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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________ 
FORM 10-Q
______________________________________ 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 000-32191
______________________________________ 
T. ROWE PRICE GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland
 
52-2264646
(State of incorporation)
 
(I.R.S. Employer Identification No.)
100 East Pratt Street, Baltimore, Maryland 21202
(Address, including Zip Code, of principal executive offices)
(410) 345-2000
(Registrant’s telephone number, including area code)
________________
Common stock, $.20 par value per share
TROW
The NASDAQ Stock Market LLC
(title of security)
(ticker symbol)
(Name of exchange on which registered)
______________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer 
Non-accelerated filer (do not check if smaller reporting company)
Smaller reporting company 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      No
The number of shares outstanding of the issuer’s common stock ($.20 par value), as of the latest practicable date, July 27, 2020, is 226,985,631.
The exhibit index is at Item 6 on page 41.
 





PART I – FINANCIAL INFORMATION

Item 1.
Financial Statements.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
 
 
 
6/30/2020
 
12/31/2019
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
2,058.1

 
$
1,781.8

Accounts receivable and accrued revenue
 
655.7

 
646.6

Investments
 
2,900.0

 
2,939.8

Assets of consolidated T. Rowe Price investment products ($2,005.4 million at June 30, 2020 and $1,975.3 million at December 31, 2019, related to variable interest entities)
 
2,161.5

 
2,276.9

Operating lease assets
 
131.5

 
110.8

Property and equipment, net
 
685.4

 
674.4

Goodwill
 
665.7

 
665.7

Other assets
 
219.4

 
234.4

Total assets
 
$
9,477.3

 
$
9,330.4

 
 
 
 
 
LIABILITIES
 
 
 
 
Accounts payable and accrued expenses
 
$
194.3

 
$
214.5

Liabilities of consolidated T. Rowe Price investment products ($41.6 million at June 30, 2020 and $27.0 million at December 31, 2019, related to variable interest entities)
 
54.8

 
39.2

Operating lease liabilities
 
166.4

 
146.3

Accrued compensation and related costs
 
384.7

 
112.1

Supplemental savings plan liability
 
577.0

 
563.4

Income taxes payable
 
259.3

 
31.8

Total liabilities
 
1,636.5

 
1,107.3

 
 
 
 
 
Commitments and contingent liabilities
 


 


 
 
 
 
 
Redeemable non-controlling interests
 
1,090.1

 
1,121.0

 
 
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
Preferred stock, undesignated, $.20 par value – authorized and unissued 20,000,000 shares
 

 

Common stock, $.20 par value—authorized 750,000,000; issued 226,990,000 shares at June 30, 2020 and 235,214,000 at December 31, 2019
 
45.4

 
47.0

Additional capital in excess of par value
 
654.6

 
654.6

Retained earnings
 
6,102.9

 
6,443.5

Accumulated other comprehensive loss
 
(52.2
)
 
(43.0
)
Total permanent stockholders’ equity
 
6,750.7

 
7,102.1

Total liabilities, redeemable non-controlling interests, and permanent stockholders’ equity
 
$
9,477.3

 
$
9,330.4


The accompanying notes are an integral part of these statements.
Page 2



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per-share amounts)
 
 
Three months ended
 
Six months ended
 
6/30/2020
 
6/30/2019
 
6/30/2020
 
6/30/2019
Revenues
 
 
 
 
 
 
 
Investment advisory fees
$
1,293.8

 
$
1,270.2

 
$
2,621.6

 
$
2,464.4

Administrative, distribution, and servicing fees
121.6

 
125.0

 
256.4

 
258.1

Net revenues
1,415.4

 
1,395.2

 
2,878.0

 
2,722.5

 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
Compensation and related costs
549.0

 
483.2

 
989.7

 
974.7

Distribution and servicing
62.0

 
64.4

 
127.7

 
130.8

Advertising and promotion
13.4

 
19.8

 
38.3

 
41.4

Product-related costs
39.6

 
33.4

 
81.2

 
77.6

Technology, occupancy, and facility costs
111.3

 
104.9

 
216.7

 
203.0

General, administrative, and other
86.4

 
74.4

 
163.5

 
147.4

Total operating expenses
861.7

 
780.1

 
1,617.1

 
1,574.9

 
 
 
 
 
 
 
 
Net operating income
553.7

 
615.1

 
1,260.9

 
1,147.6

 
 
 
 
 
 
 
 
Non-operating income (loss)
 
 
 
 
 
 
 
Net gains on investments
170.6

 
61.8

 
16.0

 
161.9

Net gains (losses) on consolidated investment products
242.5

 
62.8

 
(87.8
)
 
164.7

Other income (loss)
2.0

 
(.1
)
 
(13.4
)
 
.7

Total non-operating income (loss)
415.1

 
124.5

 
(85.2
)
 
327.3

 
 
 
 
 
 
 
 
Income before income taxes
968.8

 
739.6

 
1,175.7

 
1,474.9

Provision for income taxes
240.3

 
183.7

 
280.6

 
365.0

Net income
728.5

 
555.9

 
895.1

 
1,109.9

Less: net income (loss) attributable to redeemable non-controlling interests
125.5

 
28.4

 
(51.0
)
 
69.8

Net income attributable to T. Rowe Price Group
$
603.0

 
$
527.5

 
$
946.1

 
$
1,040.1

 
 
 
 
 
 
 
 
Earnings per share on common stock of T. Rowe Price Group
 
 
 
 
 
 
Basic
$
2.58

 
$
2.18

 
$
3.99

 
$
4.29

Diluted
$
2.55

 
$
2.15

 
$
3.95

 
$
4.23



The accompanying notes are an integral part of these statements.
Page 3



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
 
 
Three months ended
 
Six months ended
 
6/30/2020
 
6/30/2019
 
6/30/2020
 
6/30/2019
Net income
$
728.5

 
$
555.9

 
$
895.1

 
$
1,109.9

Other comprehensive income (loss)
 
 
 
 
 
 
 
Currency translation adjustments
 
 
 
 
 
 
 
Consolidated T. Rowe Price investment products - variable interest entities
15.9

 
3.7

 
(9.2
)
 
(2.1
)
Reclassification gains recognized in non-operating income upon deconsolidation of certain T. Rowe Price investment products

 
(.1
)
 
(.1
)
 
(.2
)
Total currency translation adjustments of consolidated T. Rowe Price investment products - variable interest entities
15.9

 
3.6

 
(9.3
)
 
(2.3
)
Equity method investments
(9.4
)
 
1.5

 
(9.5
)
 
6.4

Other comprehensive income (loss) before income taxes
6.5

 
5.1

 
(18.8
)
 
4.1

Net deferred tax benefits
.7

 
(1.0
)
 
2.7

 
(.9
)
Total other comprehensive income (loss)
7.2

 
4.1

 
(16.1
)
 
3.2

 
 
 
 
 
 
 
 
Total comprehensive income
735.7

 
560.0

 
879.0

 
1,113.1

Less: comprehensive income (loss) attributable to redeemable non-controlling interests
135.8

 
29.4

 
(57.9
)
 
69.5

Total comprehensive income attributable to T. Rowe Price Group
$
599.9

 
$
530.6

 
$
936.9

 
$
1,043.6



The accompanying notes are an integral part of these statements.
Page 4



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 
 
Six months ended
 
6/30/2020
 
6/30/2019
Cash flows from operating activities
 
 
 
Net income
$
895.1

 
$
1,109.9

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization of property and equipment
94.3

 
86.0

Stock-based compensation expense
111.6

 
90.7

Net (gains) losses recognized on investments
3.4

 
(124.4
)
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
(10.0
)
 
(19.3
)
Net change in securities held by consolidated T. Rowe Price investment products
40.8

 
(444.0
)
Other changes in assets and liabilities
505.5

 
249.9

Net cash provided by operating activities
1,640.7

 
948.8

 
 
 
 
Cash flows from investing activities
 
 
 
Purchases of T. Rowe Price investment products
(237.1
)
 
(34.9
)
Dispositions of T. Rowe Price investment products
347.9

 
103.8

Net cash of T. Rowe Price investment products on deconsolidation
(9.2
)
 
(5.1
)
Additions to property and equipment
(105.3
)
 
(94.5
)
Other investing activity
6.1

 
1.6

Net cash provided by (used in) investing activities
2.4

 
(29.1
)
 
 
 
 
Cash flows from financing activities
 
 
 
Repurchases of common stock
(1,027.1
)
 
(402.8
)
Common share issuances under stock-based compensation plans
54.0

 
78.8

Dividends paid to common stockholders of T. Rowe Price Group
(425.7
)
 
(367.8
)
Net subscriptions received from redeemable non-controlling interest holders
87.7

 
190.3

Net cash used in financing activities
(1,311.1
)
 
(501.5
)
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents of consolidated
T. Rowe Price investment products
(7.4
)
 
(.4
)
 
 
 
 
Net change in cash and cash equivalents during period
324.6

 
417.8

Cash and cash equivalents at beginning of period, including $76.5 million at December 31, 2019, and $70.1 million at December 31, 2018, held by consolidated T. Rowe Price investment products
1,858.3

 
1,495.3

Cash and cash equivalents at end of period, including $124.8 million at June 30, 2020, and $110.7 million at June 30, 2019, held by consolidated T. Rowe Price investment products
$
2,182.9

 
$
1,913.1




The accompanying notes are an integral part of these statements.
Page 5



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(shares in thousands; dollars in millions)
 
Three months ended 6/30/2020
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at March 31, 2020
227,985

 
$
45.6

 
$
654.6

 
$
5,782.9

 
$
(49.1
)
 
$
6,434.0

 
971.0

Net income

 

 

 
603.0

 

 
603.0

 
125.5

Other comprehensive loss, net of tax

 

 

 

 
(3.1
)
 
(3.1
)
 
10.3

Dividends declared ($0.90 per share)

 

 

 
(210.3
)
 

 
(210.3
)
 

Shares issued upon option exercises
296

 
.1

 
15.8

 

 

 
15.9

 

Restricted shares issued, net of shares withheld for taxes
8

 

 

 

 

 

 

Net shares issued upon vesting of restricted stock units
6

 

 
(.3
)
 

 

 
(.3
)
 

Stock-based compensation expense

 

 
53.3

 

 

 
53.3

 

Restricted stock units issued as dividend equivalents

 

 
.1

 
(.1
)
 

 

 

Common shares repurchased
(1,305
)
 
(.3
)
 
(68.9
)
 
(72.6
)
 

 
(141.8
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
26.1

Net deconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
(42.8
)
Balances at June 30, 2020
226,990

 
$
45.4

 
$
654.6

 
$
6,102.9

 
$
(52.2
)
 
$
6,750.7

 
$
1,090.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended 6/30/2019
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at March 31, 2019
236,432

 
$
47.3

 
$
654.5

 
$
5,650.8

 
$
(41.6
)
 
$
6,311.0

 
$
886.7

Net income

 

 

 
527.5

 

 
527.5

 
28.4

Other comprehensive income (loss), net of tax

 

 

 

 
3.1

 
3.1

 
1.0

Dividends declared ($0.76 per share)

 

 

 
(183.4
)
 

 
(183.4
)
 

Shares issued upon option exercises
665

 
.1

 
37.7

 

 

 
37.8

 

Restricted shares issued, net of shares withheld for taxes
7

 

 
(.1
)
 

 

 
(.1
)
 

Net shares issued upon vesting of restricted stock units
19

 

 
(.2
)
 

 

 
(.2
)
 

Forfeiture of restricted awards
(2
)
 

 

 

 

 

 

Stock-based compensation expense

 

 
47.2

 

 

 
47.2

 

Restricted stock units issued as dividend equivalents

 

 
.1

 
(.1
)
 

 

 

Common shares repurchased
(1,603
)
 
(.3
)
 
(84.6
)
 
(78.9
)
 

 
(163.8
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
125.7

Net deconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
(29.5
)
Balances at June 30, 2019
235,518

 
$
47.1

 
$
654.6

 
$
5,915.9

 
$
(38.5
)
 
$
6,579.1

 
$
1,012.3


(1) Accumulated other comprehensive income.


The accompanying notes are an integral part of these statements.
Page 6



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(shares in thousands; dollars in millions)
 
Six months ended 6/30/2020
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at December 31, 2019
235,214

 
$
47.0

 
$
654.6

 
$
6,443.5

 
$
(43.0
)
 
$
7,102.1

 
$
1,121.0

Net income

 

 

 
946.1

 

 
946.1

 
(51.0
)
Other comprehensive income (loss), net of tax

 

 

 

 
(9.2
)
 
(9.2
)
 
(6.9
)
Dividends declared ($1.80 per share)

 

 

 
(425.1
)
 

 
(425.1
)
 

Shares issued upon option exercises
1,364

 
.3

 
56.9

 

 

 
57.2

 

Restricted shares issued, net of shares withheld for taxes
8

 

 

 

 

 

 

Shares issued upon vesting of restricted stock units, net of shares withheld for taxes
43

 

 
(3.3
)
 

 

 
(3.3
)
 

Stock-based compensation expense

 

 
111.6

 

 

 
111.6

 

Restricted stock units issued as dividend equivalents

 

 
.1

 
(.1
)
 

 

 

Common shares repurchased
(9,639
)
 
(1.9
)
 
(165.3
)
 
(861.5
)
 

 
(1,028.7
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
89.9

Net deconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
(62.9
)
Balances at June 30, 2020
226,990

 
$
45.4

 
$
654.6

 
$
6,102.9

 
$
(52.2
)
 
$
6,750.7

 
$
1,090.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended 6/30/2019
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at December 31, 2018
238,069

 
$
47.6

 
$
654.6

 
$
5,464.1

 
$
(42.0
)
 
$
6,124.3

 
$
740.3

Net income

 

 

 
1,040.1

 

 
1,040.1

 
69.8

Other comprehensive income (loss), net of tax

 

 

 

 
3.5

 
3.5

 
(.3
)
Dividends declared ($1.52 per share)

 

 

 
(367.2
)
 

 
(367.2
)
 

Shares issued upon option exercises
1,495

 
.3

 
82.5

 

 

 
82.8

 

Restricted shares issued, net of shares withheld for taxes
7

 

 
(.1
)
 

 

 
(.1
)
 

Shares issued upon vesting of restricted stock units, net of shares withheld for taxes
33

 

 
(1.4
)
 

 

 
(1.4
)
 

Forfeiture of restricted awards
(7
)
 

 

 

 

 

 

Stock-based compensation expense

 

 
90.7

 

 

 
90.7

 

Restricted stock units issued as dividend equivalents

 

 
.1

 
(.1
)
 

 

 

Common shares repurchased
(4,079
)
 
(.8
)
 
(171.8
)
 
(221.0
)
 

 
(393.6
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
211.6

Net deconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
(9.1
)
Balances at June 30, 2019
235,518

 
$
47.1

 
$
654.6

 
$
5,915.9

 
$
(38.5
)
 
$
6,579.1

 
$
1,012.3

(1) Accumulated other comprehensive income.


The accompanying notes are an integral part of these statements.
Page 7



NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – THE COMPANY AND BASIS OF PREPARATION.

T. Rowe Price Group Inc. derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the T. Rowe Price U.S. mutual funds (“U.S. mutual funds”), separately managed accounts, subadvised funds, and other T. Rowe Price products. The other T. Rowe Price products include: collective investment trusts, open-ended investment products offered to investors outside the U.S., and products offered through variable annuity life insurance plans in the U.S. We also provide certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; and trust services.

Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations.

BASIS OF PRESENTATION.

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These principles require the use of estimates and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of our results for the interim periods presented. All such adjustments are of a normal recurring nature. Actual results may vary from our estimates. Certain prior year amounts have been reclassified to conform to the 2020 presentation.

The unaudited interim financial information contained in these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report.

NEW ACCOUNTING GUIDANCE.

We adopted Accounting Standards Update No. 2018-15 — Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract on January 1, 2020 using the prospective method of adoption. This update required implementation costs incurred in cloud computing arrangements to be deferred and recognized over the term of the hosting arrangement. A hosting arrangement is an agreement that allows customers, like us, to access and use software on an as-needed basis without having possession of the software. Beginning on January 1, 2020, we are required to defer such qualifying implementation costs. As of June 30, 2020, we capitalized an immaterial amount of implementation costs incurred in a cloud computing arrangement. Accordingly, the adoption of this guidance did not have a material impact on our consolidated balance sheets or our consolidated statements of income.

NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE

We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our unaudited condensed consolidated statements, including those we have not yet adopted. We do not believe that any such guidance has or will have a material effect on our financial position or results of operations.

U.S. ECONOMIC RELIEF LEGISLATION

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act. The CARES Act provides economic relief to eligible businesses and individuals impacted by the novel coronavirus pandemic. The CARES Act’s provisions will not have a material impact on our financial position and results of operations.



Page 8



NOTE 2 – INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES.

Revenues earned during the three- and six-month periods ended June 30, 2020 and 2019 under agreements with clients include: 
 
Three months ended 6/30/2020
 
Three months ended 6/30/2019
 
 
 
Administrative, distribution, and servicing fees
 
 
 
 
 
Administrative, distribution, and servicing fees
 
 
(in millions)
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
 
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
U.S. mutual funds
$
823.1

 
$
69.4

 
$
25.7

 
$
918.2

 
$
860.7

 
$
69.7

 
$
30.1

 
$
960.5

Subadvised and separate accounts and other investment products
470.7

 

 

 
470.7

 
409.5

 

 

 
409.5

Other clients

 
26.5

 

 
26.5

 

 
25.2

 

 
25.2

 
$
1,293.8

 
$
95.9

 
$
25.7

 
$
1,415.4

 
$
1,270.2

 
$
94.9

 
$
30.1

 
$
1,395.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended 6/30/2020
 
Six months ended 6/30/2019
 
 
 
Administrative, distribution, and servicing fees
 
 
 
 
 
Administrative, distribution, and servicing fees
 
 
(in millions)
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
 
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
U.S. mutual funds
$
1,699.3

 
$
146.6

 
$
53.6

 
$
1,899.5

 
$
1,676.6

 
$
146.3

 
$
60.3

 
$
1,883.2

Subadvised and separate accounts and other investment products
922.3

 

 

 
922.3

 
787.8

 

 

 
787.8

Other clients

 
56.2

 

 
56.2

 

 
51.5

 

 
51.5

 
$
2,621.6

 
$
202.8

 
$
53.6

 
$
2,878.0

 
$
2,464.4

 
$
197.8

 
$
60.3

 
$
2,722.5



Total net revenues earned from our related parties, specifically T. Rowe Price investment products, aggregate $1,142.8 million and $1,147.6 million for the three months ended June 30, 2020 and 2019, respectively. Total net revenues earned during the six months ended June 30, 2020 and 2019 aggregate $2,350.5 million and $2,241.0 million, respectively. Accounts receivable from these products aggregate to $410.6 million at June 30, 2020, and $424.8 million at December 31, 2019.

Following a change to the fee structure of the target date retirement funds in the second quarter of 2020, we have modified our investment advisory fee and assets under management presentation below to separately breakout the fees earned from clients and related assets under management of our multi-asset portfolios. All prior periods have been recast to conform to this new presentation and to provide comparability.


Page 9



The following table details the investment advisory fees earned from clients by their underlying asset class.
 
Three months ended
 
Six months ended
(in millions)
6/30/2020
 
6/30/2019
 
6/30/2020
 
6/30/2019
U.S. mutual funds
 
 
 
 
 
 
 
Equity
$
545.9

 
$
553.8

 
$
1,114.3

 
$
1,071.2

Fixed income, including money market