T. Rowe Price
From Wikipedia, the free encyclopedia
 | |
| Type | Public (NASDAQ: TROW) |
|---|---|
| Industry | Investment Management |
| 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 Michael C. Gitlin, Director of Fixed Income William Stromberg, Director of Global Equity and Global Equity Research Christopher D. Alderson, Head of International Equity, President and CEO of T. Rowe Price International, Inc. John D. Linehan, Head of U.S. Equity |
| Products | Investment management, mutual funds, subadvisory services, retirement planning |
| Revenue | $1.86 Billion USD (2009) |
| Net income | $433.6 Million USD (2009) |
| Employees | 4,862 (June 30, 2010) |
| Website | www.troweprice.com |
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.
Contents[show] |
[edit] Corporate affairs
[edit] Business
Currently, there are approximately 4,800 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.[edit] 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.[edit] History
[edit] 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 resources. 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[2] 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).[3]
[edit] 21st century
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.[4] During the first quarter 2009, assets under management dropped to $268 billion and profits fell 68%.
As of June 30, 2010, T. Rowe Price had $391.1 billion in assets under management globally. It was ranked one of the "top twenty" Investment firms in the world[5] and was recognized as one of BusinessWeek’s Customer Service Champs[6].
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.[3] 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.[3]
[edit] 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 theft insurance, as well as tips on protection from identity theft.[edit] References
- ^ Investopedia - The Greatest Investors: Thomas Rowe Price, Jr.
- ^ "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.[dead link]
- ^ [1], Wall Street Journal Article.
- ^ Investment Management Firm Rankings: Vault Top 25 Investment (Asset) Management Firms
- ^ BusinessWeek Rankings: The 2009 List of Customer Service Champs
[edit] External links
- Official retail website
- Official institutional website
- The Great Piggy Bank Adventure, a financial education game from T. Rowe Price and Disney
