(updated with correction)
T. Rowe Price Group Inc. is expanding its institutional business, domestically and abroad.
The Baltimore-based company is building its defined contribution investment-only business and multiasset class capabilities in the U.S. It also is looking to grow headcount in sales and client service by 10% to 15% annually over the next three years in the U.S. and has a similar growth target for international sales and client service.
“The DC and DB segments have the biggest growth potential for our global investment services business in North America,” said Keith Lewis, head of global investment services, Americas, for T. Rowe Price, in an interview in his office on March 7.
Assets managed from clients outside the U.S. accounts for approximately 5% of the firm's nearly $811 billion total AUM as of Dec. 31, Mr. Lewis said, adding the firm is “working hard to grow its institutional ... business globally.” He did not disclose target percentages.
Among the company's steps so far:
- In February, T. Rowe Price agreed to acquire the $57 million Henderson High Yield Opportunities Fund and its six-person investment team from Henderson Global Investors.
- In August, T. Rowe Price recruited two members for its institutional DCIO business in the U.S. to complement its traditional defined benefit oriented management team. Lorie Latham was named a senior DC strategist, while Michael Davis was named head of DC plan specialists for T. Rowe Price's institutional business.
- T. Rowe Price added 12 team members to its $241 billion multiasset business as of Oct. 31, and plans to add another 20 before the end of this year.