T. Rowe Price is a mutual fund company which is publicly owned and is located in Baltimore, Maryland. Their primary product is mutual funds, but they also offer sub-advisory services. In addition to these, they offer account management services for financial intermediaries, individuals, institutions, and retirement plans. They also offer investment guidance and planning services for their clients. As of this past March (2010), the company now employs 4,779 people worldwide.
The company offers their clients 70 different investment funds including:
- 25 bond funds
- 25 domestic stock funds
- 15 international funds
- 5 money market funds
Besides the 20 plus offices they have nationwide, they also have 11 international offices that serve their overseas clients. These offices are located in:
- Amsterdam
- Buenos Aries
- Copenhagen
- Hong Kong
- London
- Luxembourg
- Singapore
- Sydney
- Tokyo
- Toronto
- Zurich
As of this past March (2010), T. Rowe Price was globally managing $419 billion in assets and was ranked in the top 20 investment companies in the world. Additionally, “Business Week” magazine rated them as one of their Customer Service Champs.
T. Rowe Price History
Thomas Rowe Price, Jr. founded the company in 1937 and launched their first mutual fund – the T. Rowe Price Growth Stock Fund – in 1950. Some of the more significant years, besides the two above, in the company’s history include:
- 1960 – expanding into the small-cap equity investment market in the US
- 1974 – introduction of the first T. Rowe Price retirement accounts in the US
- 1986 – IPO or initial public offering
- 2000 – acquired Fleming International forming the current company
- 2009 – T. Rowe Price invests $100 million in Twitter
Interestingly enough, Price Jr. is credited for developing what is known as the “growth stock philosophy of investing”, which placed an emphasis on dividends and earnings which would grow in value faster than economic or inflationary growth. Additionally, instead of charging a commission, Price based and charged the fees on managed assets.
T. Rowe Price Mutual Fund Offerings
T. Rowe Price currently offers their clients and investors 6 different categories of investment funds including:
Asset Allocation funds – combines securities from different classes of assets in one fund in order to diversify the client’s portfolio
Domestic Bond funds – focuses on bonds for those investors who want to combine investment securities from several asset classes into one convenient bond fund
Domestic Stock funds – features a variety of domestic stocks that have the potential for substantial gains while attempting to reduce the risks involved
International funds – these funds pursue financial and investment opportunities overseas
Money Market funds – capital preservation is the primary characteristic of these funds which have the potential of realizing short-term gains
Retirement funds – when you reach age 65, you will have a diversified portfolio that satisfies your retirement income needs