T. Rowe Price scales fixed income ETF offering via acquisition

T. Rowe Price has acquired US fixed income asset manager and exchange-traded funds (ETFs) specialist F/m Investments, expanding its capability to provide customised fixed income offerings to investors.

F/m Investments has approximately US$19 billion in assets under management, across ETFs, institutional separate accounts, and both taxable and municipal separately managed accounts (SMAs).

Its standardised suite of single-security US Treasury ETFs has been the first to provide maturity-specific exposure to US Treasury securities through ETFs.

"F/m Investments is a strong strategic and cultural fit with T. Rowe Price. 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," T. Rowe Price head of global fixed income and chief investment officer Arif Husain said.

"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."

F/m has a suite of 20 ETFs across the fixed income landscape including treasuries, corporate bonds and municipal securities. It also provides customised municipal bond and liquidity strategies to institutional and high-net-worth clients.

"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," F/m Investments chief executive Alexander Morris said.

"T. Rowe Price has been clear that the way we work is the thing they're investing in. 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.

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. Morris will report to Husain, and F/m employees will become T. Rowe Price associates.

"This structure preserves what has made F/m successful while extending its fixed income capabilities across T. Rowe Price's platforms," T. Rowe Price said.

At closing, the acquisition is expected to increase T. Rowe Price's fixed income assets under management by nearly 9%, more than doubling its fixed income ETF assets under management and expanding its fixed-income SMA business.