Baltimore-based T. Rowe Price Group has struck a deal to acquire F/m Investments LLC, a Washington, D.C.-based fixed income specialist managing roughly $19 billion in assets. The transaction, announced August 20, 2026, is expected to close in early 2027, with financial terms undisclosed. The acquisition will more than double T. Rowe Price's fixed income ETF holdings and significantly broaden its separately managed account (SMA) capabilities, a key area of growing demand among financial advisors.
F/m Investments, founded in 2019 and led by CEO and co-founder Alexander Morris, has carved out a niche as an innovator in the ETF space. The firm manages a suite of 20 exchange-traded funds spanning Treasuries, Treasury Inflation-Protected Securities, corporate bonds, and municipal securities, alongside institutional separate accounts and both taxable and municipal SMAs. Notably, F/m created the US Benchmark Series, the first standardized single-security U.S. Treasury ETFs, and holds the distinction of launching the first dual-share class ETF and filing the first SEC application for tokenized ETF shares.
Following the close, F/m will operate as F/m Investments, a T. Rowe Price Company, retaining its brand, leadership team, investment philosophy, and operating model. Morris will report to Arif Husain, head of global fixed income at T. Rowe Price and a member of the firm's management committee. All F/m employees are expected to become T. Rowe Price associates.
The acquisition is expected to add approximately 9% to T. Rowe Price's fixed income AUM, which currently sits within the firm's $1.87 trillion total asset base as of July 31, 2026. For T. Rowe Price, the deal is designed to broaden its liquidity, cash management, and customized fixed income solutions, while also bringing in F/m's ETF product development expertise. Husain said the deal reflects "a thoughtful, disciplined approach to expanding our capabilities in areas where we see durable client demand."
Morris emphasized that scale was central to F/m's decision. "To continue to innovate and provide client value at scale, we needed a partner with relevant expertise, deep resources, and a shared vision," he said. The move comes amid a broader wave of asset managers acquiring ETF specialists to meet advisor demand for low-cost, tax-efficient and customizable investment vehicles. For instance, Goldman Sachs recently announced a $2.25 billion deal to acquire NEOS Investments, an options-ETF provider, underscoring the strategic value of ETF capabilities.
For financial advisors, the combined firm's broader product shelf—including the single-security Treasury ETFs—offers additional building blocks for portfolio construction. The expansion of SMA capabilities is particularly timely, as advisors increasingly seek to deliver personalized fixed income solutions. A recent Vanguard move toward customizable models highlights the broader industry trend toward personalization, and T. Rowe Price's acquisition positions it to compete more effectively in that arena.
The deal also reflects a growing interest in fixed income ETFs as tools for liquidity and cash management. With interest rates having normalized, advisors are looking for efficient ways to deploy cash and manage duration. F/m's single-security Treasury ETFs, which allow precise exposure to specific maturities, could prove valuable in this environment. The acquisition is expected to close in early 2027, subject to regulatory approvals and customary closing conditions.
While the transaction is not expected to trigger significant integration risks—given F/m's retained brand and operating model—it does signal T. Rowe Price's commitment to expanding its fixed income and ETF footprint. As the asset management industry consolidates, deals like this one are likely to become more common, with larger firms acquiring niche players to gain scale and expertise. For advisors, the result is a more robust toolkit for building client portfolios.
