T. Rowe Price
Encyclopedia
T. Rowe Price is a publicly owned Investment firm
, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.
. The company offers mutual fund
s, 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 , 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
.
s. In 1971, George Collins is hired to develop the fixed-income management division. In 1974, Introduction of the firm's first retirement accounts in the U.S. In 1979, Partnering with U.K.-based Robert Fleming & Co.
, expands international investments to U.S. clients. In 1986, Initial public offering
. In 1987, Establishes research office in Hong Kong, soon followed by offices in Buenos Aires and Singapore. In 1994, Partners with third parties to deliver products and services to a wider audience. In 2000, Acquires 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 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).
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.
As of June 30, 2011, T. Rowe Price had $520.9 billion in assets under management globally. It was ranked one of the "top twenty" Investment firms
in the world and was recognized as one of BusinessWeek
’s Customer Service Champs.
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. 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.
insurance, as well as tips on protection from identity theft.
Investment company
An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses....
, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.
Thomas Rowe Price, Jr.
Thomas Rowe Price, Jr. was the founder of T. Rowe Price.Price was born in Linwood, Maryland.Mr. Price first entered the world of Wall Street Investing in the 1920’s. By 1937 he founded his investment firm, T. Rowe Price in Baltimore, Maryland...
. The company offers mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s, 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
Growth stock
In finance, a growth stock is a stockof a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry...
philosophy of investing , 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
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
.
Business
Currently, there are over 5,000 people employed by T. Rowe Price around the world. Investors outside the U.S. now account for more than 12% of assets under management. The company has more than 25 domestic stock funds, 25 bond funds, 15 international funds, 20 asset allocation funds, and five money market funds.Offices
T. Rowe Price has offices around the world in Buenos Aires, Sydney, Toronto, Copenhagen, Hong Kong, Tokyo, London, Luxembourg, Amsterdam, Singapore, Dubai, and Zurich. U.S. offices are located in Baltimore and Owings Mills, Md.; Tampa, Fla., Colorado Springs, Colo.; and San Francisco and Long Beach, Calif. Additionally, walk-in Investors Centers are located across the U.S. in Walnut Creek and Century City, Calif.; Colorado Springs, Colo.; Washington, D.C.; Boca Raton and Tampa, Fla.; Oak Brook and Northbrook, Ill.; Baltimore and Owings Mills, Md.; Wellesley, Mass.; Short Hills and Paramus, N.J.; Garden City, N.Y. and Tysons Corner, Va.20th century
In 1937, Firm established. In 1950, First mutual fund launch, T. Rowe Price Growth Stock Fund. In 1951, Introduction of first institutional client account. In 1960, Expansion 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 resourceNatural resource
Natural resources occur naturally within environments that exist relatively undisturbed by mankind, in a natural form. A natural resource is often characterized by amounts of biodiversity and geodiversity existent in various ecosystems....
s. In 1971, George Collins is hired to develop the fixed-income management division. In 1974, Introduction of the firm's first retirement accounts in the U.S. In 1979, Partnering with U.K.-based Robert Fleming & Co.
Robert Fleming & Co.
Robert Fleming & Co. was an asset manager and merchant bank founded in Dundee, Scotland, in 1873. In 1909 the firm moved its headquarters to London. It was sold to Chase Manhattan Bank for over $7 billion in 2000....
, expands international investments to U.S. clients. In 1986, Initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. In 1987, Establishes research office in Hong Kong, soon followed by offices in Buenos Aires and Singapore. In 1994, Partners with third parties to deliver products and services to a wider audience. In 2000, Acquires complete ownership of Rowe Price-Fleming International to form the new entity—T. Rowe Price International, Inc.
From 1982 to 1991 Roger McNamee
Roger McNamee
Roger McNamee is a founding partner of the venture capital firm Elevation Partners. Prior to co-founding the firm McNamee co-founded private equity firm Silver Lake Partners and headed the T...
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 and, in a move atypical for mutual funds, he made venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
investments in Electronic Arts
Electronic Arts
Electronic Arts, Inc. is a major American developer, marketer, publisher and distributor of video games. Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and was notable for promoting the designers and programmers...
(which went public in 1989) and Sybase
Sybase
Sybase, an SAP company, is an enterprise software and services company offering software to manage, analyze, and mobilize information, using relational databases, analytics and data warehousing solutions and mobile applications development platforms....
(which had its IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 1991).
21st century
In 2001, the company launched T. Rowe Price Funds SICAV, domiciledDomicile (law)
In law, domicile is the status or attribution of being a permanent resident in a particular jurisdiction. A person can remain domiciled in a jurisdiction even after they have left it, if they have maintained sufficient links with that jurisdiction or have not displayed an intention to leave...
in Luxembourg, for non-U.S. institutional investors and financial intermediaries
Financial intermediary
Financial intermediation consists of “channeling funds between surplus and deficit agents”. A financial intermediary is a financial institution that connects surplus and deficit agents...
. 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
Owings Mills, Maryland
Owings Mills is an unincorporated community and a census-designated place in Baltimore County, Maryland, United States. It is a suburb of Baltimore. The population was 20,193 at the 2000 census. Owings Mills is home to the northern terminus for the Baltimore Metro Subway and to Owings Mills Mall....
, 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.
As of June 30, 2011, T. Rowe Price had $520.9 billion in assets under management globally. It was ranked one of the "top twenty" Investment firms
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
in the world and was recognized as one of BusinessWeek
BusinessWeek
Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
’s Customer Service Champs.
In September 2009, Twitter
Twitter
Twitter is an online social networking and microblogging service that enables its users to send and read text-based posts of up to 140 characters, informally known as "tweets".Twitter was created in March 2006 by Jack Dorsey and launched that July...
disclosed it had received $100 million in funding from several investors, including T. Rowe Price, which valued the company at one billion dollars. 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
Slide.com
Slide, Inc., operator of the Slide.com website, is a Web 2.0 company founded by Max Levchin and based in San Francisco, California. Originally formed to make photo sharing software for social networking services such as MySpace, the company achieved its greatest success as the largest developer of...
) that T. Rowe Price had invested in a purely Internet-related company.
Conflicts
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 theftIdentity theft
Identity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...
insurance, as well as tips on protection from identity theft.
External links
- Official retail website
- James Kennedy Inspiration
- Official institutional website
- The Great Piggy Bank Adventure, a financial education game from T. Rowe Price and Disney