T. Rowe Price Group is separating out six domestic investment strategies from T. Rowe Price Associates to form a new investment platform, spokesman Brian Lewbart confirmed.
The new money manager will be called T. Rowe Price Investment Management. It will be part of T. Rowe Price Group and be a wholly owned subsidiary of T. Rowe Price Associates.
The firm intends to move its U.S. capital appreciation, U.S. midcap growth equity, U.S. small-cap core equity, U.S. small-cap value equity, U.S. smaller companies equity and U.S. high-yield bond strategies into T. Rowe Price IM. The six strategies represented $167 billion in assets under management as of Sept. 30.
Stephon Jackson, associate head of U.S. equity, will become head of TRPIM and join T. Rowe Price Group's management committee effective Jan. 1.
The new investment manager is being created to offer increased capacity for its smidcap equity portfolios.
“This additional step will ensure that over time our portfolio managers can continue to select the right securities, in the right amounts, at the right time, while also adhering to risk management and regulatory guidelines,” said Robert W. Sharps, head of investments and group chief investment officer of T. Rowe Price, in a news release.
T. Rowe Price does not anticipate any portfolio manager changes associated with this transition and no change is expected in the day-to-day management of client assets. The transfer of these strategies from T. Rowe Price Associates to TRPIM is expected to occur in the second quarter of 2022.
