T. Rowe Price Group, Inc. is an American publicly owned global

investment management Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be instit ...

firm that offers

funds Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...

, subadvisory services, separate account management, and

retirement plans A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...

and services for individuals, institutions, and financial intermediaries. The firm has assets under management of more than $1.6 trillion and annual revenues of $6.2 billion as of 2020, placing it 447 on the ''Fortune'' 500 list of the largest U.S. companies.{{cite news, first=Lorraine, last=Mirabella, title=Hogan, officials applaud rise to Fortune 500 by Sinclair Broadcast, McCormick and T. Rowe Price at new Sinclair office, newspaper=

Baltimore Sun ''The Baltimore Sun'' is the largest general-circulation daily newspaper based in the U.S. state of Maryland and provides coverage of local and regional news, events, issues, people, and industries. Founded in 1837, it is currently owned by Tr ...

, date=June 21, 2021, url=https://www.baltimoresun.com/business/bs-bz-sinclair-broadcast-mccormick-trowe-celebrate-rise-to-fortune-500-20210621-76uctyrjtjf5nchy6jeewg7r5e-story.html, access-date=June 22, 2021 Headquartered at

100 East Pratt Street 100 East Pratt Street is a building located on Pratt Street in the Inner Harbor district of Baltimore, Maryland that consists of a ten-story concrete building finished in 1975 and a 1991 glass and steel twenty-eight story tower. History The orig ...

Baltimore, Maryland Baltimore ( , locally: or ) is the most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic, and the 30th most populous city in the United States with a population of 585,708 in 2020. Baltimore wa ...

, it has 5,000 employees in Baltimore and 16 international offices serving clients in 47 countries.{{cite web, url=https://www.sec.gov/Archives/edgar/data/1113169/000111316918000009/a201710k.htm, title=US SEC: Form 10-K T. Rowe Price Group, Inc., publisher= U.S. Securities and Exchange Commission, access-date=March 15, 2018 The firm was founded in 1937 by Thomas Rowe Price, Jr. who is best known for developing the

growth stock In finance, a growth stock is a stock of 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. A growth c ...

philosophy of investing. As of 2019, the company is focused on active management after strategically deciding against a major initiative in passive investment. Consistently ranked among the world's top asset managers, T. Rowe Price was named one of the best places to work in money management by Pensions&Investments and was one of Fortune's most admired companies in 2020.

Business philosophy

Thomas Rowe Price Jr. started in finance in the 1920s as an entry-level researcher and

account manager An account manager (AM) is a person who works for a company and is responsible for the management of sales and relationships with particular customers. An account manager maintains the company's existing relationships with a client or group of cl ...

at Baltimore-area brokerages, but disliked the operating models of sales-oriented firms at the time. When he founded T. Rowe Price & Associates in 1937, his firm diverged from the norm in three major ways: charging fees based on assets under management rather than sales volume, actively managing his clients' accounts strictly as a

fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exa ...

, and investing in growth stocks instead of

value stocks Value investing is an investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis. The various forms of value investing derive from the investment philosophy first taught by Benjamin Graha ...

. He became well known as the "father of growth investing" and was nicknamed the "Sage of Baltimore" by ''

Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also r ...

''.{{Cite web, url=http://www.investopedia.com/university/greatest/thomasroweprice.asp, title=The Greatest Investors: Thomas Rowe Price, Jr. , publisher=Investopedia, date=2003-12-01, language=en-US, access-date=2016-06-23

History

1937–1986

Thomas Rowe Price, Jr. founded T. Rowe Price & Associates in Baltimore in 1937. The firm was originally headquartered at 10 Light Street and staffed by a small pool of associates, many of whom left

Legg Mason Legg Mason was an American investment management and asset management firm headquartered in Baltimore, founded in 1899 and acquired by Franklin Templeton Investments as of July 2020. As of December 31, 2019, the company had $730.8 billion in as ...

's precursor, MacKubin, Legg and Co., along with Price. Initially a very small firm focused on

wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high ...

, and private investment accounts for Baltimore-area families, the company struggled during the

Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...

and

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...

before gaining solid footing at the end of the 1940s. By 1950, its clientele grew too large for the staff to manage accounts individually, so the firm incorporated and launched its first mutual fund, the T. Rowe Price Growth Stock Fund.{{cite encyclopedia, url=http://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/t-rowe-price, title=T. Rowe Price Associates -- International Directory of Company Histories, encyclopedia=Encyclopedia.com, date=2006, access-date=2017-02-20 Gaining traction in Baltimore and along the U.S. eastern seaboard, the firm continued a steady expansion of clientele, staff, and geographic reach. By 1960, Price opened a second fund, named the New Horizons Fund, focused on growth investment opportunities, and especially technology firms like

Xerox Xerox Holdings Corporation (; also known simply as Xerox) is an American corporation that sells print and digital document products and services in more than 160 countries. Xerox is headquartered in Norwalk, Connecticut (having moved from St ...

, IBM, and

Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...

. In need of more room, the headquarters were moved in 1962 to the new

One Charles Center One Charles Center is a historic office building located in Baltimore, Maryland, United States. It is a 23-story aluminum and glass International Style skyscraper designed by Ludwig Mies van der Rohe and constructed in 1962. It was the first mod ...

building designed by

Ludwig Mies van der Rohe Ludwig Mies van der Rohe ( ; ; born Maria Ludwig Michael Mies; March 27, 1886August 17, 1969) was a German-American architect. He was commonly referred to as Mies, his surname. Along with Alvar Aalto, Le Corbusier, Walter Gropius and Frank Lloy ...

nearby in downtown Baltimore. At the same time, Price began to prepare for retirement, resigning as president of the firm in 1963, delegating some responsibilities, and selling his shares in the company. Despite this, Price maintained an active presence in the firm for several years and urged the opening of the New Era Fund in 1969 as a response to the rapid

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...

he predicted would dominate the 1970s. In 1971, the year Price completely retired, T. Rowe Price opened its Fixed Income Division, and began to modernize and diversify its operations. In the 1970s and early 1980s, T. Rowe Price kicked off more assertive growth than before, moving to its current location at

and opening its first international office. In 1979, T. Rowe Price launched a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...

with British asset manager Robert Fleming & Co. named Rowe Price-Fleming International. The venture, which managed $39 billion at its height in 2000, allowed T. Rowe Price to offer a broader range of services and expertise internationally.

1986–2010

T. Rowe Price held its

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

, valued at nearly $200 million, in 1986. Shortly thereafter, the firm began establishing larger office complexes in the U.S. and research offices around the world, beginning with a Hong Kong office in 1987. Retirement Plan Services were launched in the 1990s alongside additional new services and funds, including mutual funds acquired from other companies such as

USF&G USF&G was an American insurance company that existed from 1896 until 1998. It was originally called the United States Fidelity and Guaranty Company. The insurer formed a holding company for its insurance businesses and changed its name to USF&G ...

. This momentum, and the firm reaching $100 billion assets under management, pushed T. Rowe Price to create an asset management partnership with Sumitomo Bank and

Daiwa Securities is a Japanese investment bank that is the second largest securities brokerage after Nomura Securities. Major subsidiaries include ''Daiwa Securities'', which offers retail services such as online trading to individual investors and investment ...

in Tokyo in 1999, and to purchase 100% interest of the London-based Rowe Price-Fleming International, which was renamed T. Rowe Price International. Also in 1999, T. Rowe Price was added to the

S&P 500 Index The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...

.{{cite news, url=http://articles.baltimoresun.com/1999-10-17/business/9910160346_1_index-funds-index-effect-rowe-price , title=Baltimore's T. Rowe Price rises on Joining Index, newspaper=

, date=1999-10-17 , access-date=2017-02-21 T. Rowe Price largely avoided the

dot-com bubble The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet. Between 1995 and its peak in March 2000, the Nasdaq Comp ...

of 2000. ''The

Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

'' expressed surprise at the firm's moderation with then-profitable technology stocks just a week before the markets began to crash in March 2000.{{cite news, url=https://www.wsj.com/articles/SB952292958756965887 , title=T. Rowe Pays High Price for Avoiding Tech Craze, newspaper=

, date=2000-03-06, access-date=2017-02-15 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 2010, T. Rowe Price bought a significant interest in

Unit Trust of India UTI Mutual Fund was carved out of the erstwhile Unit Trust of India (UTI) as a Securities and Exchange Board of India (SEBI) registered mutual fund from 1 February 2003. The Unit Trust of India Act 1963 was repealed, paving way for the bifurca ...

, India's oldest mutual fund company and one of its five largest. Since 2000, T. Rowe Price has opened global offices in locations ranging from Madrid and Dubai to Stockholm and Sydney.

2010–present

As of 2019, T. Rowe Price has continued to focus on

active management Active management (also called ''active investing'') is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive ma ...

rather than

passive management Passive management (also called passive investing) is an investing strategy that tracks a market-weighted index or portfolio. Passive management is most common on the equity market, where index funds track a stock market index, but it is becoming ...

.{{Cite web, url=https://www.investmentnews.com/t-rowe-price-stock-picking-franklin-resources-legg-maso-175759, title=T. Rowe Price has a $1 trillion answer to claims stock-picking is dead, date=2019-12-26, website=InvestmentNews, language=en-US, access-date=2020-03-16 In the decade from 2010 to 2020, T. Rowe Price increased its assets under management from $400 billion to $1.6 trillion and annual revenues increased 10.2 percent to $6.2 billion over 2019, placing it 447 on the

Fortune 500 The ''Fortune'' 500 is an annual list compiled and published by ''Fortune (magazine), Fortune'' magazine that ranks 500 of the largest United States Joint-stock company#Closely held corporations and publicly traded corporations, corporations by ...

list of the largest U.S. companies.

Awards and recognition

* 2017 Ranked one of the World's Most Admired Companies by ''

Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...

''{{cite magazine, url=http://beta.fortune.com/worlds-most-admired-companies/ , title=2017 World's Most Admired Survey, magazine =

, access-date=2017-02-21 * 2016 Top Companies for Women Technologists by the

Anita Borg Institute AnitaB.org (formerly Anita Borg Institute for Women and Technology, and Institute for Women in Technology) is a global nonprofit organization based in Belmont, California. Founded by computer scientists Anita Borg and Telle Whitney, the institute' ...

Leadership Index * 2015 P&I Best Places to Work in Money Management by Pension&Investments * 2015 Best Employers for Healthy Lifestyle by the National Business Group on Health

Notable people

Board of directors

* Mark S. Bartlett, Former Managing Partner of

Ernst & Young Ernst & Young Global Limited, trade name EY, is a multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and Pricewat ...

* Mary K. Bush, Founder, and President of Bush International LLC *

Dina Dublon Dina Dublon (born 1953) is a senior lecturer at Harvard Business School and current member of the boards of directors at Microsoft, Accenture, T. Rowe Price, and PepsiCo. She also serves as a trustee of Carnegie Mellon University and on the boar ...

, Former Vice President and Chief Financial Officer of JPMorgan Chase & Co. * Dr. Freeman Hrabowski III, President of

University of Maryland, Baltimore County The University of Maryland, Baltimore County (UMBC) is a public research university in Baltimore County, Maryland. It has a fall 2022 enrollment of 13,991 students, 61 undergraduate majors, over 92 graduate programs (38 master, 25 doctoral, ...

* Robert F. MacLellan, Chairman of Northleaf Capital Partners * Rob Sharps, President, and CEO of T. Rowe Price *

Olympia Snowe Olympia Jean Snowe (; born February 21, 1947) is an American businesswoman and politician who was a United States Senator from Maine from 1995 to 2013. Snowe, a member of the Republican Party, became known for her ability to influence the outco ...

, Former US Senator, founder of Olympia Snowe LLC * Robert J. Stevens, Former Chairman and CEO of

Lockheed Martin The Lockheed Martin Corporation is an American aerospace, arms, defense, information security, and technology corporation with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It ...

* William Stromberg, non-executive Chairman *

Richard Verma Richard Rahul Verma (born November 27, 1968) is an Indian-American lawyer, diplomat, and executive, who served as the U.S. Ambassador to India from 2014 to 2017. Verma previously served as the Assistant Secretary of State for Legislative Affairs ...

, Former U.S. Ambassador to India, Vice Chairman and Partner of The Asia Group * Sandra S. Wijnberg, Executive Adviser at Aquiline Capital Partners LLC * Alan D. Wilson, Former President of

McCormick & Company McCormick & Company, Incorporated is an American food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses. Thei ...

{{cite web, url=http://trow.client.shareholder.com/directors.cfm , title=T. Rowe Price Board of Directors, publisher=T. Rowe Price, access-date=2017-02-15

Others

* Eddie C. Brown, former portfolio manager at T. Rowe Price, Founder and President of Brown Capital Management, and noted philanthropist *

Abby Joseph Cohen Abby Joseph Cohen (born February 29, 1952) is an American economist and financial analyst on Wall Street. , she continues to serve as an advisory director at Goldman Sachs, after retiring from leadership of its Global Markets Institute. Prior to ...

, former research director at T. Rowe Price, named ''Institutional Investor'''s top strategist in the late 1990s. *

Roger McNamee Roger McNamee (born May 2, 1956) is an American businessman, investor, venture capitalist and musician. He is the founding partner of the venture capital firm Elevation Partners. Prior to co-founding the firm, McNamee co-founded private equity ...

, former manager of the T. Rowe Price Science & Technology Fund who since founded the venture capital firm

Elevation Partners Elevation Partners was an American private equity firm that invested in intellectual property, technology and media companies. The firm had $1.9 billion of assets under management. The firm was founded in 2004 and was headquartered in New York C ...

{{cite web, url=http://www.portfolio.com/executives/features/2007/12/16/Roger-McNamee-Profile , title=Rock Stars of Tech , publisher=

Portfolio.com Portfolio.com was a website published by American City Business Journals that provideed news and information for small to mid-sized businesses (SMB). It was previously the website for the monthly business magazine ''Condé Nast Portfolio'', pub ...

, date=December 16, 2007, access-date=2009-09-25{{cite news, url=https://online.wsj.com/article/BT-CO-20090925-713162.html , title=Twitter Lures In An Unusual Backer , date=September 25, 2009 , newspaper=

, access-date=2009-09-25 , url-status=dead , archive-url=https://web.archive.org/web/20090928021622/http://online.wsj.com/article/BT-CO-20090925-713162.html , archive-date=September 28, 2009 *

Mary J. Miller Mary John Miller (born July 19, 1955) is an American government official and political candidate who served as Under Secretary for Domestic Finance and a former Acting Deputy Secretary of the Treasury. In 2020, she announced her candidacy for Ma ...

, former director of the firm's Fixed Income Division who left to work for the

U.S. Department of the Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...

, becoming

Assistant Secretary of the Treasury for Financial Markets The Assistant Secretary of the Treasury for Financial Markets is an official in the United States Department of the Treasury who heads the Office of Financial Markets. The office is currently held by Joshua Frost. According to U.S. statute, there ...

, then Under Secretary of the Treasury for Domestic Finance, and finally the Deputy Secretary of the Treasury. *

Alfred Sommer Alfred (Al) Sommer (born October 2, 1942) is a prominent American ophthalmologist and epidemiologist at the Johns Hopkins Bloomberg School of Public Health. His research on vitamin A in the 1970s and 1980s revealed that dosing even mildly vitamin ...

, former board member of T. Rowe Price and noted

epidemiologist Epidemiology is the study and analysis of the distribution (who, when, and where), patterns and determinants of health and disease conditions in a defined population. It is a cornerstone of public health, and shapes policy decisions and evid ...

at the

Johns Hopkins Bloomberg School of Public Health The Johns Hopkins Bloomberg School of Public Health is the public health graduate school of Johns Hopkins University, a private research university in Baltimore, Maryland. As the second independent, degree-granting institution for research in epi ...

{{cite web, url=http://www.jhsph.edu/about/school-at-a-glance/health-advisory-board/board-members/sommer.html, title=Alfred Sommer Biography, publisher=Johns Hopkins University Bloomberg School of Public Health, access-date=2017-02-28

References

{{Reflist, 60EM

External links

{{Finance links , name = T. Rowe Price , symbol = TROW , sec_cik = 1113169 , yahoo = TROW , google = TROW {{Major asset management companies {{Baltimore {{NASDAQ Financial-100 {{authority control, state=expanded Investment management companies of the United States American companies established in 1937 Financial services companies established in 1937 Financial services companies of the United States Companies based in Baltimore Financial services companies based in Maryland Mutual funds of the United States 1937 establishments in Maryland 1980s initial public offerings