T. Rowe Price

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T. Rowe Price Group, Inc.
Public
Traded as NASDAQTROW
S&P 500 Component
Industry Investment Management
Founded 1937
Headquarters 100 East Pratt Street
Baltimore, Maryland USA
Key people
William Stromberg, President and CEO
Brian C. Rogers, Chairman, Chief Investment Officer and Portfolio Manager
Edward C. Bernard, Vice Chairman; President, T. Rowe Price Investment Services
Ted Wiese, Head of Fixed Income
Robert Higginbotham, Director of Global Equity and Global Equity Research
Christopher D. Alderson, President of International Equity
John D. Linehan, Head of U.S. Equity
Products Investment management, mutual funds, subadvisory services, retirement planning
Revenue $3.48 Billion USD (2013)
$1.05 Billion USD (2013)
AUM $738.4 billion USD (June 30, 2014)
Number of employees
4200 (December 31, 2012)
Slogan Invest With Confidence
Website www.troweprice.com

T. Rowe Price is an American publicly owned investment firm, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. The company offers mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial intermediaries. Additionally, the organization offers investment planning and guidance tools.

The company's founder may be best known for developing the growth stock philosophy of investing,[1] emphasizing companies whose earnings and dividends could be expected to grow faster than inflation and the overall economy. Instead of charging a commission, as others in the business did at the time, Price charged a fee based on the assets under management.

Corporate affairs[edit]

Business[edit]

In 2015 there were more than 5,800 associates employed worldwide by T. Rowe Price.[2] Investors outside the U.S. now account for more than 12% of assets under management. The company has more than 28 domestic stock funds, 28 bond funds, 18 international funds, 20 asset allocation funds, and six money market funds.

Offices[edit]

T. Rowe Price is headquartered in Baltimore, Maryland, the city in which it was founded in 1937, and occupies the historic 100 East Pratt Street building in Baltimore's Inner Harbor.[3] Other domestic offices are located in Owings Mills, Maryland, Tampa, Florida, Colorado Springs, Colorado, San Francisco, California and Long Beach, California. The firm maintains walk-in Investor Centers adjoining its Baltimore, Owings Mills, Colorado, and Tampa offices, as well as in Washington, D.C. and Tysons Corner, Virginia.

T. Rowe Price has additional offices around the world in North and South America (Toronto and Buenos Aires), Europe (London, Copenhagen, Amsterdam, Zurich, and Luxembourg), Asia (Hong Kong, Tokyo, Taiwan, Singapore, and Dubai), and Australia (Sydney).

History[edit]

20th century[edit]

In 1937, T. Rowe Price was established.[4] In 1950, the firm launched the first mutual fund, T. Rowe Price Growth Stock Fund. In 1951, the company introduced the first institutional client account. In 1960, they expanded into U.S. small-cap equity investments, beginning an industry trend toward specialized mutual fund management. In 1969, New Era Fund launched, a mutual fund that invests in natural resources. In 1971, George Collins was hired to develop the fixed-income management division. In 1974, the firm introduced the first retirement accounts in the U.S. In 1979, the firm partnered with U.K.-based Robert Fleming & Co., and expanded international investments to U.S. clients. In 1986, Initial public offering. In 1987, the firm established a research office in Hong Kong, soon followed by offices in Buenos Aires and Singapore. In 1994, the firm partnered with third parties to deliver products and services to a wider audience. In 2000, the firm acquired complete ownership of Rowe Price-Fleming International to form the new entity—T. Rowe Price International, Inc.

From 1982 to 1991 Roger McNamee worked at the company, first as an analyst and eventually promoted to run the Science & Technology Fund. Under McNamee's leadership, the fund returned about 17% annually to investors[5] and, in a move atypical for mutual funds, he made venture capital investments in Electronic Arts (which went public in 1989) and Sybase (which had its IPO in 1991).[6]

21st century[edit]

In 2001, the company launched T. Rowe Price Funds SICAV, domiciled in Luxembourg, for non-U.S. institutional investors and financial intermediaries. Two years later it created target-date retirement funds. In 2004, it established an office in Amsterdam and Sydney.

In early 2008, T. Rowe Price announced the addition of two new buildings, located in Owings Mills, Maryland, near their headquarters. In April 2009 the firm announced that due to economic conditions the completion of the buildings would be delayed until later in 2010. In addition, the firm laid off 288 employees or about 5.5% of their labor force.[7]

As of June 30, 2011, T. Rowe Price had $520.9 billion in assets under management globally. It was recognized as one of BusinessWeek’s Customer Service Champs.[8]

In September 2009, Twitter disclosed it had received $100 million in funding from several investors, including T. Rowe Price, which valued the company at one billion dollars.[6] According to Dow Jones VentureSource, the Twitter investment was the eighth time since 2005 that the company has invested in venture-capital backed firms, and only the second time (the other being Slide.com) that T. Rowe Price had invested in a purely Internet-related company.[6]

In May 2015, T. Rowe Price announced that James A.C. Kennedy will step down from his position as CEO at the end of the year and will retire from the firm in April 2016. William J. Stromberg, the current head of Global Equity and Global Equity Research, will succeed James on January 1, 2016.[9]

Conflicts[edit]

In 2008, T. Rowe Price "Retirement Plan Services" alerted and informed 35,000 clients that their names and Social Security numbers were compromised in files on computers that were stolen from one of their service providers. However, to deal with the crisis, the company offered those affected a free one-year subscription to an online credit monitoring service and up to $25,000 of identity theft insurance, as well as tips on protection from identity theft.

Notable People[edit]

References[edit]

  1. ^ Investopedia - The Greatest Investors: Thomas Rowe Price, Jr.
  2. ^ "#1,087 T Rowe Price". Forbes.com. Retrieved 21 March 2016. 
  3. ^ "T. Rowe Price raises concerns about downtown safety while weighing headquarters options". Retrieved 2016-06-23. 
  4. ^ "The Greatest Investors: Thomas Rowe Price, Jr. | Investopedia". 2003-12-01. Retrieved 2016-06-23. 
  5. ^ "Rock Stars of Tech". Portfolio.com. December 16, 2007. Retrieved 2009-09-25. 
  6. ^ a b c "Twitter Lures In An Unusual Backer". The Wall Street Journal. September 25, 2009. Archived from the original on September 28, 2009. Retrieved 2009-09-25. 
  7. ^ [1], Wall Street Journal Article.
  8. ^ BusinessWeek Rankings: The 2009 List of Customer Service Champs
  9. ^ Chen, Angela. "T. Rowe Price CEO James Kennedy to Retire". The Wall Street Journal. The Wall Street Journal. Retrieved 6 May 2015. 

External links[edit]