T. Rowe Price Group agreed to acquire F/m Investments LLC, an asset manager with $19 billion in assets concentrated in bond exchange-traded funds and separately managed accounts. The purchase will expand T. Rowe's ETF lineup by 20 funds and increase its fixed-income assets under management by nearly 9%.
T. Rowe currently manages around $33 billion in ETFs across 34 funds. The addition of F/m will more than double the firm's fixed-income ETF assets and broaden its liquidity, cash management and customized fixed-income offerings, the firm said.
Founded in 2019 and headquartered in Washington, F/m Investments is an affiliate of 1251 Capital Group. The firm's ETF roster covers Treasuries, Treasury Inflation-Protected Securities, corporate bonds and municipal securities. It manages both active and passive ETFs.
F/m's largest fund is the US Treasury 3-Month Bill ETF, known by the ticker TBIL, with $7.2 billion in net assets. That fund accounts for almost 70% of the firm's total ETF assets of $10.2 billion. In February, F/m became the first ETF manager to launch dual class shares when it introduced a mutual fund share class of TBIL.
"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. 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.