T. Rowe Price is ramping up its efforts to strengthen its presence in the UK and Ireland, focusing on collaboration, tailored solutions, and an expanding product range. Nataline Terry, Head of Distribution for the UK and Ireland, outlines the firm’s strategy, emphasising client-centric approaches, strategic product launches, and a commitment to regulatory alignment.
With the wealth management industry undergoing consolidation, firms are increasingly seeking deeper partnerships with fewer asset managers. This shift is driving the custom creation of investment solutions and mandates. Collaboration lies at the heart of T. Rowe Price’s approach. “Enhancing our market presence in the UK requires us to think about our clients, the strategies we offer, and how we ensure we have a strong local footprint,” Terry shares.
To support these demands, T. Rowe Price has expanded its solutions investment team, promoting Steve McShane to the newly created role of head of solutions (UK distribution). The firm’s approach emphasises not just providing products but working as partners to meet clients’ evolving needs. “Whether it’s as a building block in their portfolio or creating a full solution, partnering with clients is key to success,” Terry says.
Local footprint
While US equities remain a cornerstone of T. Rowe Price’s business, the firm’s product range is diverse, encompassing global equities and fixed income. “We have a strong heritage in US equities, offering everything from growth to value to core, and large cap to small cap,” Terry notes. The launch of the US SRS SICAV has garnered significant interest as a modest alpha, lower cost, and highly diversified product designed to address client demands for active strategies with reduced costs.
“But at T. Rowe Price we’re more than US Equities, and indeed we are seeing strong interest in Global Equities and Fixed Income,” shares Terry. “Having a range of SICAVs, local open-ended investment company funds (OEICs) and experience with mandates business is enabling us to work with a range of clients.
“The wealth management industry’s consolidation is driving firms to work with fewer asset managers, fostering deeper, more consultative relationships and leading to the custom creation of investment solutions and mandates.”
“That strong local footprint is important to us at TRP. We have a team across the UK, and have also recently moved into our new building in London demonstrating our commitment to the UK and London as a financial centre,” says Terry.
To stand out, T. Rowe Price partners with the League Managers Association, providing clients access to sporting ambassadors and experts. This initiative has been “well received,” offering exclusive learning opportunities for client teams.
T. Rowe Price’s US Structured Research products are gaining traction as clients seek cost-effective active strategies. Offering modest alpha, low tracking error, and risk-managed returns, the Structured Research Suite has a 25-year track record of consistent outcomes. Following the launch of the US SRS Sicav last December—now the firm’s fastest-growing Sicav—T. Rowe Price plans to introduce the strategy as an OEIC, reflecting its strong demand.
The need for tailored investment solutions is becoming critical. Terry highlights the importance of working closely with clients to develop bespoke offerings, such as the firm’s collaboration with Mattioli Woods on a bespoke, income-focused model portfolio. Potential changes to CGT, regulations such as consumer duty along with cost pressure, highlight the need for us to work with our clients to help them develop their investment proposition via the use of active strategies to add value and where possible return cost and complexity.
ESG and beyond
“ESG isn’t just about specific products but also reporting, voting, marketing, and technology,” Terry says. The firm has invested in ESG capabilities, offering clients robust impact-focused products with clear processes, KPIs, and transparent reporting. “It will be interesting to see how this evolves with SDR,” she adds.
While T. Rowe Price would welcome some consistency of ESG regulations in Europe, as this would increase confidence in this space with clients, Terry says. “It will be interesting to see how the FCA decide to implement the Overseas Fund Regime (OFR) in this space,” she adds.
“We would welcome some consistency of ESG regulations in Europe as this would increase confidence in this space with clients, and anything that ensures a client understands better what their investing is should be a welcome development. It will be interesting to see how the FCA decide to implement the Overseas Fund Regime (OFR) in this space.”
Post Brexit shifts
Post-Brexit regulatory shifts have required asset managers to adapt swiftly. Increased regulation has made advisers more focused on delivering strong outcomes for clients, backed by robust data and thorough due diligence. Following the FCA’s policy statement on the OFR in July 2024, T. Rowe Price is assessing the rules to ensure its Luxembourg-domiciled funds remain available for sale in the UK under the new framework.
Cross-border fund distribution remains a priority for the firm. Leveraging domiciles such as Luxembourg and Ireland allows for scale and cost efficiency, enabling T. Rowe Price to remain competitive in the UK.” Leveraging of a common domicile and vehicles for many markets creates scale which results in lower costs for investors. We continue to focus on the SICAV and the OEIC as our main product vehicles,” says Terry.
Fund platforms remain essential to asset managers, providing the technology clients need to access funds. According to her: “It is our clients that influence our availability on platforms, but it is important that asset managers are operationally efficient and are able to be nimble to adapt quickly to meet the demand we see.”
As for digital asset funds, T. Rowe Price does not foresee a significant increase in launches over the next 12 months. Traditional asset classes are expected to remain dominant, though the firm continues to monitor the space as long-term demand for digital assets isn’t likely to slow down any time soon.
