T. Rowe Price buys $19bn ETF specialist F/m Investments
T. Rowe Price is acquiring fixed-income specialist F/m Investments, adding approximately $19 billion of assets and a 20-ETF range to its platform. The deal will more than double T. Rowe Price’s fixed-income ETF assets and highlights the growing importance of specialist ETF capabilities to established active asset managers.
T. Rowe Price is acquiring fixed-income specialist F/m Investments in a move that will significantly expand its exchange-traded fund and separately managed account capabilities.
F/m had approximately $19 billion in assets under management as of July 31, spanning ETFs, institutional separate accounts and taxable and municipal SMAs. The transaction is expected to close in early 2027, subject to regulatory approvals and other customary conditions. Financial terms were not disclosed.
For T. Rowe Price, the deal provides an established ETF platform rather than simply additional assets. F/m operates a 20-ETF range covering Treasuries, Treasury Inflation-Protected Securities, corporate bonds and municipal securities. Its US Benchmark Series was the first complete suite of single-security US Treasury ETFs, providing investors with maturity-specific exposure through an exchange-traded structure.
The acquisition will increase T. Rowe Price’s fixed-income assets under management by nearly 9%, according to the firm, while more than doubling its fixed-income ETF assets. It will also expand the group’s fixed-income SMA business, giving it additional capabilities across liquidity, cash management and customised fixed-income portfolios.
The transaction is notable because F/m brings capabilities that go beyond a conventional ETF range. The firm has launched a dual-share-class ETF and filed an application with the US Securities and Exchange Commission relating to tokenised ETF shares. It also provides customised municipal bond and liquidity solutions to institutional and high-net-worth clients.
F/m will retain its brand, investment approach, leadership and day-to-day operating model following completion. Chief executive and co-founder Alexander Morris will report to Arif Husain, T. Rowe Price’s head of global fixed income and chief investment officer, while F/m employees will become T. Rowe Price associates.
The acquisition points to a broader strategic challenge for traditional asset managers: building ETF capabilities organically can take time, particularly as investors increasingly demand transparent, liquid and tax-efficient vehicles alongside conventional active strategies.
For institutional investors, the deal could therefore prove significant beyond the immediate addition of $19 billion in assets. It demonstrates how established managers are increasingly using acquisitions to combine active investment expertise with specialist ETF product development and distribution capabilities.