Leading asset managers T. Rowe Price announced the acquisition of $19 billion F/m Investments in a press release Thursday afternoon. The deal brings F/m’s suite of leading fixed income strategies and ETFs into T. Rowe Price’s fund stable, reinforcing those areas in the latter’s list. The move is expected to increase T. Rowe’s fixed income AUM by almost 9%, nearly doubling its fixed income ETF AUM.
Key Takeaways:
- T. Rowe Price will add the approximately $19 billion AUM F/m Investments to its roster.
- The move brings funds like the $7.2 billion F/m U.S. Treasury 3 Month Bill Fund (TBIL) into T. Rowe Price’s ETF suite.
- F/m has innovated in fixed income and other ETF strategies, having filed for the a first-of-its-kind ETF with tokenized shares.
The move will expand T. Rowe Price’s offerings notably, bringing funds including the $7.2 billion F/m U.S. Treasury 3 Month Bill Fund (TBIL) into T. Rowe’s house. F/m Investments was founded in 2019 and is an affiliate of 1251 Capital Group. The shop’s U.S. Benchmark Series is known for being the first suite of single-security U.S. Treasury ETFs.
What the Move Means for T. Rowe Price and F/m
Together, the move brings F/m’s Suite of 20 ETFs, from Treasuries to corporates, under T. Rowe’s roof. It brings F/m’s ETF innovations like customized muni bond and liquidity offerings, and a first-of-its-kind SEC application for Tokenized ETF shares, into T. Rowe Price’s roster.
“F/m Investments is a strong strategic and cultural fit with T. Rowe Price,” said Arif Husain, T. Rowe Price’s head of global fixed income and a member of the firm’s management committee. “F/m brings unique ETF product development capabilities that will complement T. Rowe Price’s active fixed income lineup across our Intermediary, Institutional, Retirement, and Wealth platforms.”
“We started F/m because fixed income investments were too hard for investors to use. To continue to innovate and provide client value at scale, we needed a partner with relevant expertise, deep resources, and a shared vision. T. Rowe Price has been clear that the way we work is the thing they’re investing in,” said Alexander Morris, CEO and co-founder of F/m Investments.
See more: How Active Tech ETF TTEQ Almost Doubled AUM in 3 Months
The move is expected to close in early 2027, with F/m to operate as “F/m Investments, a T. Rowe Price company,” moving forward. T. Rowe Price managed $1.87 trillion in client assets as of July 31, according to the release.
For more news, information, and strategy, visit ETF Trends.
