T. Rowe Price Group, Inc.
 |
| Type |
Public (NASDAQ: TROW) |
| Founded |
1937 |
| Headquarters |
Baltimore, Maryland USA |
| Key people |
James A.C. Kennedy, President and CEO
Brian C. Rogers, Chairman, Chief Investment Officer and Portfolio Manager
Edward C. Bernard, Vice Chairman; President, T. Rowe Price Investment Services
Mary J. Miller, Director of Fixed Income
William Stromberg, Director of Global Equities
Christopher Alderson, T. Rowe Price International, Inc. |
| Industry |
Investment Management |
| Products |
Mutual funds, sub-advisory services, retirement planning, Investment management |
| Revenue |
▲$2.11 Billion USD (2008) |
| Net income |
▲$490.8 Million USD (2008) |
| Employees |
4,875 (2009) |
| Website |
www.troweprice.com |
T. Rowe Price (NASDAQ: TROW), is a publicly owned Investment firm, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. The company offers mutual funds, sub-advisory 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,[citation needed] 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.
Profile
Currently, there are approximately 4,900 people employed by T. Rowe Price around the world. It has more than 25 domestic stock funds, 25 bond funds, 15 international funds, 20 asset allocation funds, and five money market funds.
20th century milestones
- 1937: Firm established
- 1950: First mutual fund launch, T. Rowe Price Growth Stock Fund
- 1951: Introduction of first institutional client account
- 1960: Expansion into U.S. small-cap equity investments, beginning an industry trend toward specialized mutual fund management
- 1969: New Era Fund launched, a mutual fund that invests in natural resources
- 1971: George Collins is hired to develop the fixed-income management division
- 1974: Introduction of the firm's first retirement accounts in the U.S.
- 1979: Partnering with U.K.-based Robert Fleming & Co., expands international investments to U.S. clients
- 1986: Initial public offering
- 1987: Establishes research office in Hong Kong, soon followed by offices in Buenos Aires and Singapore
- 1994: Partners with third parties to deliver products and services to a wider audience
- 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[1] 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).[2]
21st century history
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 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. In response, the company offered those affected a free one-year subscription to a credit report monitoring service and $25,000 of identity theft insurance.
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. During the first quarter 2009, assets under management dropped to $268 billion and profits fell 68%.
As of June 30, 2009, T. Rowe Price had over $315.6 billion in assets under management globally. It was ranked one of the "top twenty" Investment firms in the world[3] and was recognized as one of BusinessWeek’s Customer Service Champs[4].
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.[2] 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.[2]
Offices
T. Rowe Price has offices around the world in Buenos Aries, Sydney, Toronto, Copenhagen, Hong Kong, Tokyo, London, Luxembourg, Amsterdam, Singapore, 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.
References
- ^ "Rock Stars of Tech". Portfolio.com. December 16, 2007. http://www.portfolio.com/executives/features/2007/12/16/Roger-McNamee-Profile. Retrieved 2009-09-25.
- ^ a b c "Twitter Lures In An Unusual Backer". The Wall Street Journal. September 25, 2009. http://online.wsj.com/article/BT-CO-20090925-713162.html. Retrieved 2009-09-25.
- ^ Investment Management Firm Rankings: Vault Top 25 Investment (Asset) Management Firms
- ^ BusinessWeek Rankings: The 2009 List of Customer Service Champs
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