T. Rowe Price to Buy F/m Investments for $19B AUM
T. Rowe Price Group is bolstering its fixed-income menu by agreeing to buy F/m Investments LLC, an asset manager with $19 billion in assets, largely focused on bond ETFs and SMAs.
T. Rowe currently manages around $33 billion in ETFs across 34 funds. The addition of F/m will expand that list by 20 ETFs. According to T. Rowe, the move will “accelerate growth across its ETF franchise, and broaden its liquidity, cash management and customized fixed income offerings.”
The deal will increase T. Rowe Price’s fixed-income AUM by nearly 9%, more than doubling its fixed-income ETF AUM and expanding its fixed-income SMA business.
Founded in 2019 and headquartered in Washington, D.C., F/m Investments is an asset manager focused on fixed income and an affiliate of 1251 Capital Group, Inc. Its roster of ETFs covers Treasuries, TIPS, corporate bonds and municipal securities. It manages both active and passive ETFs.
F/m was also the first ETF manager to launch dual class shares when it launched a mutual fund share class of the US Treasury 3-Month Bill ETF (TBIL) in February. It’s the firm’s most popular ETF with $7.2 billion in net assets, accounting for almost 70% of the firm’s total ETF AUM of $10.2 billion.
“The acquisition reflects a thoughtful, disciplined approach to expanding our capabilities in areas where we see durable client demand, clear strategic alignment, and the opportunity to create long-term value,” Arif Husain, T. Rowe Price head of global fixed income and a member of the firm’s management committee, said in a statement. “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.”
Upon closing, F/m will operate as F/m Investments, a T. Rowe Price Company, retaining its brand, leadership, investment approach and day-to-day operating model. F/m CEO and co-founder Alexander Morris will report to Husain, and F/m employees will become T. Rowe Price associates.
“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,” Morris said in a statement. “Our mission will remain the same. We are excited to align our approach with T. Rowe Price’s scale to better serve clients for years to come.” The transaction is expected to close in early 2027. Financial terms were not disclosed.
