GERMANY- US investment manager T. Rowe Price has launched a new Luxembourg SICAV with eight sub-funds aimed at German investors. The launch represents the latest in T. Rowe Price’s European expansion following its move into the Nordic region.
The company is targeting both third party distributors and institutional investors with five equity funds- US Blue Chip, US Large Cap Value, US Smaller Companies, Global Emerging Markets and Global Clean Future Equity- and three fixed income funds- Global Aggregate Bond, Global High Yield and European Corporates.
T Rowe Price is negotiating with third party distributors at the moment and the funds will eventually be available to both German institutional and retail investors.
In addition, T. Rowe Price is eager to manage segregated portfolios for institutional investors and to sub-advise portfolios for others. The group already has institutional mandates in the UK and Netherlands.
Says Todd Ruppert, president of T. Rowe Price Global Investment Services, “the German market is large and has great long term growth opportunities.” Recent pension fund reform in Germany has boosted the prospects for investment managers. “Plus there’s a large population that is slowly embracing mutual fund investing,” he says.
Thomas Pedersen, Managing Director for European Sales, says “we recognise that there is an appetite in Germany for products which offer an exposure to equity and bond markets, but importantly, with a cautious approach to portfolio risk. This is very much in line with our consistent and successful risk-sensitive investment approach.”
In time the funds will be offered in Switzerland and the Benelux countries.