T. Rowe Price
T. Rowe Price is a publicly owned investment management company headquartered in Baltimore, Maryland. The company was founded in 1937 by Thomas Rowe Price, Jr. and offered its first mutual fund, T. Rowe Price Growth Stock Fund in 1950.. In 1986 management took to the company public, with an initial public offering of stock under the symbol TROW on the NASDAQ exchange. The company currently offers mutual funds, individual and small company retirement plans, college savings plans, brokerage and banking services, and institutional accounts for defined benefit pension plan, contributory pension, endowments and other institutional accounts.
In 1999 the firm made its first expansion into international markets by partnering with Robert Fleming Holdings Limited to open operations in Japan. The following year the company acquired Rowe Price-Fleming International and created T. Rowe Price International, Inc. to manage international operations. International expansion continued with cross border funds (T. Rowe Price Funds SICAV, domiciled in Luxembourg, for non-U.S. institutional investors and financial intermediaries in qualifying jurisdictions); in 2004 an expansion into Amsterdam and Sydney Australia (serving Australia and New Zealand); in 2007, an office was opened in Toronto, Canada; in 2008 an office in Zurich, Switzerland (serving institutional investors in Switzerland and Liechtenstein); in 2010 the firm opened an institutional client service office in Dubai.
Boglehead-style investing at T.Rowe Price
The building blocks of Boglehead-style investing are low-expense-ratio index mutual funds and/or ETFs. Vanguard fans would suggest that Vanguard has the best and most complete lineup of such funds, and that the most convenient place to hold Vanguard mutual funds is directly at Vanguard. Thus, the Bogleheads forum and Wiki tends to be Vanguard-oriented. But investing according to the Bogleheads investment philosophy certainly does not require you to invest at Vanguard or use Vanguard products. Here are some notes on how to do it at T.Rowe Price.
|The information below was last revised in June, 2012. Writers have striven for accuracy, but investors should verify information before taking action.|
T.Rowe Price is primarily a firm devoted to actively managing investment portfolios. Thus, the firm's balanced fund of fund offerings (the Spectrum series of balanced funds, and the target retirement series of funds) primarily employ active funds as underlying investments.
- Total Equity Market Index Fund
- International Equity Index Fund
- US Bond Enhanced Index Fund
Investors can also create a US total market allocation using the Equity Index 500 Fund and the Extended Equity Market Index Fund.
The T. Rowe Price International Index Fund is a developed market international index fund. The fund does not include emerging market stocks or Canadian stocks. Small cap international stocks make up only a minimal part of the portfolio.
In addition, index purists should take note that the US Bond Enhanced Index Fund utilizes an active management component. The investment manager has the authority to adjust certain holdings versus the benchmark index, which could result in the fund being marginally underweight or overweight in certain sectors, or result in the portfolio having a duration or interest rate exposure that differs slightly from those of the index.[note 1]
|Fund||Ticker||Index||Expense Ratio||Redemption Fee|
|Total Equity Market Index||POMIX||S&P Total Market Index||0.41%||0.50% < 90 days|
|Equity Index 500||PREIX||S&P 500 Index||0.30%||0.50% < 90 days|
|Extended Equity Market Index||PEXMX||S&P Completion Index||0.42%||0.50% < 90 days|
|International Equity Index||PIEQX||FTSE Developed ex North America Index||0.50%||2.00% < 90 days|
|US Bond Enhanced Index||PBDIX||Barclays US Aggregate Bond Index||0.30%||0.50% < 90 days|
- According to the summary prospectus (available at Morningstar): "The fund’s overall investment strategy is to match or incrementally exceed the performance of the U.S. investment-grade bond market. To achieve this goal, the fund seeks to provide total returns (after all of the fund’s expenses have been deducted) that match or incrementally exceed the total returns of its benchmark index, the Barclays Capital U.S. Aggregate Bond Index. While the fund’s portfolio is structured to have similar overall characteristics to the fund’s benchmark index, the portfolio manager may adjust certain holdings in relation to their weighting in the index and use other investment strategies in an attempt to generate a modest amount of outperformance over the index. The portfolio manager evaluates specific traits and sectors within the fund’s benchmark index and, within each broad segment of the index (such as corporate bonds, U.S. government securities, and asset- and mortgage-backed securities), selects a set of U.S. dollar-denominated bonds that represents key benchmark traits. The most important of these traits are interest rate sensitivity, credit quality, and sector diversification, although other characteristics may be considered. Based on the portfolio manager’s views as to the relative value or attractiveness of a specific trait or sector, the fund places a slightly greater or lesser emphasis on certain index characteristics than their representation in the index. This could result in the fund being marginally underweight or overweight in certain sectors versus the benchmark index, or having a duration or interest rate exposure that differs slightly from those of the index."
- Thomas Rowe Price, Jr., is known as the "father of growth investing." , investopedia. Retrieved 25 June 2012
- T. Rowe Price History, Retrieved 25 June 2012
- Mutual funds, Retrieved 26 June 2012
- Traditional IRA and Roth IRA, Retrieved 26 June 2012
- Small Business Retirement Plans and 403(b) Plans Retrieved 26 June 2012
- 529 College Savings Plans, Retrieved 26 June 2012
- Brokerage, Retrieved 26 June 2012
- Savings Bank, Retrieved 26 June 2012
- Institutional Investors, Retrieved 26 June 2012
- Company main web site
- Mutual Fund Prospectuses & Shareholder Reports, from T. Rowe Price.
- Portfolio Holdings for Mutual Funds, the most recent portfolio holdings from T. Rowe Price.