T. Rowe Price Group builds its base of assets under management using four main distribution channels. These distribution channels allow the company to increase product awareness among retail as well as institutional investors, promoting both existing and new offerings across areas.
Asset managers foraying into new markets connect with institutions that have established distribution networks. They acquire stakes in existing brands and companies in order to market their offerings in new territories.
These are T. Rowe Price Group’s (TROW) four distribution channels:
- individual US investors
- third-party financial intermediaries that distribute managed investment portfolios in the US and other countries
- US defined contribution retirement plans
- institutional investors around the world
The company sources nearly 45% of its assets under management from the third-party financial intermediary distribution channel. The other three channels make up the remaining 55%.
T. Rowe has intensified efforts to expand its distribution reach in overseas markets through its financial intermediaries. The company is investing in infrastructure and man power to diversify its assets under management as well as its client base.
Companies like BlackRock (BLK), Invesco (IVZ), Franklin Resources (BEN), Legg Mason (LM), and Affiliated Managers (AMG) are also trying to build better relations with external intermediaries. Together, these companies make up 2.77% of the Financial Select Sector SPDR Fund (XLF).