Press release
T. Rowe Price To Establish Additional U.S. Entity to Sustain Investment Performance For Clients
Firm Plans to Move Six U.S. Equity and Fixed Income Strategies to Separate Investment Platform, Named T. Rowe Price Investment Management, in Second Quarter
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Firm Plans to Move Six U.S. Equity and Fixed Income Strategies to Separate Investment Platform, Named T. Rowe Price Investment Management, in Second Quarter of 2022\n Current Portfolio Managers of the Six Strategies to All Move to New Subsidiary; Build Out of Dual Research Platforms Supported by Deep Team of Experienced Analysts\n Stephon Jackson, Veteran of Firm's Equity Division, to Become Head of T. Rowe Price Investment Management\n\n\nBALTIMORE, Nov. 19, 2020 /PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), announced today that in support of the firm's continued focus on generating strong investment results for clients, it will establish T. Rowe Price Investment Management, Inc. (TRPIM), as a separate U.S.-based SEC-registered investment adviser. TRPIM will have its own investment platform and veteran leadership, with more than 100 associates, including at least 85 investment professionals.\nThe firm intends to move the US Capital Appreciation, US Mid-Cap Growth Equity, US Small-Cap Core Equity1, US Small-Cap Value Equity, US Smaller Companies Equity2, and US High Yield Bond Strategies into TRPIM. There are no planned portfolio manager changes associated with this transition and no change is expected in the day-to-day management of client assets. Pending all approvals, the transition of these strategies from T. Rowe Price Associates, Inc. (TRPA), to TRPIM is expected to take place in the second quarter of 2022. As of September 30, 2020, the six strategies represented $167 billion in assets under management.\nOver time, having two distinct investment platforms with independent research teams will allow the firm to generate new capacity while retaining its scale benefits and positioning the investment teams for continued success on behalf of clients. Aligning the strategies in this way will give the firm's U.S. equity strategies increased flexibility to own more of certain holdings and maximize investment capacity for both TRPIM and TRPA, while maintaining the firm's investment culture at both entities.\nThere will be no impact to the structure or approach of the firm's target date portfolios or other multi-asset products.\nTo support the build out of the research platforms, the firm has been on an accelerated pace of analyst hiring for the last two years and has been integrating these investors into their respect...