In building client portfolios, Mason advisors and analysts do in depth due diligence not only on individual investment funds but on the management companies that sponsor them. At Mason, we believe that getting a better understanding of an investment company’s culture and process is a key to predicting the success of that company’s investments in the future.
Given this view, we were especially excited to host Eric Veiel, Head of Global Investments and CIO of T. Rowe Price, for an insightful discussion on what makes T. Rowe Price one of the most trusted and successful global investment firms.
T. Rowe Price was founded in 1937. The firm has grown largely organically over the years. Now with $1.6 trillion in assets under management and 900 investment professionals in 17 markets, it is one of the world’s largest investment management companies.
Mr. Veiel began his presentation by highlighting the distinctive features of T. Rowe Price that have contributed to the firm’s growth. He gave special credit to the firm’s culture that was built on collegiality and collaboration among analysts and portfolio managers. He made mention of several instances from his own history as an analyst at the firm when cross pollination of ideas between specialists covering two different industry sectors produced superior insights and investment results.
Also important in Mr. Veiel’s view was T. Rowe Price’s solid financial position. As a public company that maintains a multi-billion dollar cash position, the firm has the stability and strength to weather stormy markets and remain a partner that investors can rely upon.
Finally, Mr. Veiel lauded the people and processes of T. Rowe Price as key pillars of the firm’s success. He made special mention of the mechanisms used to properly incentivize performance among analysts and portfolio managers as well as the sophisticated tools to measure and improve results. Regarding processes, Mr. Veiel extolled the firm’s research-based, bottoms-up approach to active management but also made mention of a new unit built to take full advantage of the added insights that AI and alternative data can provide to fundamental research.
During a vibrant question and answer period the discussion expanded to T. Rowe Price’s current views on financial markets. Topics were wide ranging including: T. Rowe Price’s overweighting in Japanese stocks and optimism about the Korean market, turning points and risk measurement in the technology sector, particularly around AI, and opportunities in small caps, especially internationally.
On a macro level the discussion also covered the impact of rising government debt and the ominous potential of the world moving away from the dollar as the currency of record.
The discussion produced a much improved understanding of a global investment partner delivered by a knowledgeable insider with deep knowledge of the firm and its operations.
Is your investment strategy built to realize your long-term investment goals? Call 703-716-6000 or email info@masoncompanies.com to speak with a Mason advisor today.
Past performance is not indicative of future results. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person.
