T. Rowe Price Management Changes

[marko]

I'm heavy into TRPrice and have received a number of announcements on 'management changes' ahead. I can't make heads or tails about what it means or why. Anyone with any idea? Sounds like they're splitting the investment management into two groups but I'm not sure why they'd do that.

Excerpt:
NEWS
Over time, having two distinct investment platforms with independent research teams will allow the firm to generate new capacity while retaining its scale benefits and positioning the investment teams for continued success on
behalf of clients. Aligning the strategies in this way will give the firm’s U.S. equity strategies increased flexibility to own more of certain holdings and maximize investment capacity for both TRPIM and TRPA, while maintaining the
firm’s investment culture at both entities.

 

[MRG]

I think it's about their advisory reorganization. They're also going through a management change in C levels too.

https://www.wealthadviser.co/2020/1...onal-us-entity-sustain-investment-performance

TRPIM will have its own investment platform and veteran leadership, with more than 100 associates, including at least 85 investment professionals.
The firm intends to move the US Capital Appreciation, US Mid-Cap Growth Equity, US Small-Cap Core Equity, US Small-Cap Value Equity, US Smaller Companies Equity, and US High Yield Bond Strategies into TRPIM. There are no planned portfolio manager changes associated with this transition and no change is expected in the day-today management of client assets. Pending all approvals, the transition of these strategies from T Rowe Price Associates, Inc. (TRPA), to TRPIM is expected to take place in the second quarter of 2022. As of 30 September, 2020, the six strategies represented USD167 billion in assets under management.

 

[Out of Steam]

I'm heavy into TRPrice and have received a number of announcements on 'management changes' ahead.

Interesting. We had an account with them some years ago, mostly for an in-state municipal bond fund, but liquidated it when we needed the money for some immediate expenses. It almost seems like that part of the purpose of this move is that the two separate firms can together own larger stakes in a company than a single manager could.

Feeling the need to open an after tax investment account again, and am not sure that TIAA (our main financial company) is the right place. I directed my daughter to Vanguard and she has been satisfied so far.

 

[chassis]

Look for a divestiture in the 6-24 month window.

 

[Out of Steam]

Look for a divestiture in the 6-24 month window.

Didn't think of that, but you're probably right.

 

[marko]

Look for a divestiture in the 6-24 month window.

Do you mean TRP closing shop or a large reduction of their funds?

 

[chassis]

Do you mean TRP closing shop or a large reduction of their funds?

Anything.