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"Actively managed funds from T. Rowe Price have consistently outperformed comparable passive funds’"

Paolo Corredig
Country Head Switzerland, T. Rowe Price

 

T. Rowe Price entered the Â鶹´«Ã½ÔÚÏß Management market relatively late – and 2008 in a period of financial turmoil. Looking back: How hard was it to find a foothold?

T. Rowe Price entered the Â鶹´«Ã½ÔÚÏß Management market in 2008, during a challenging financial period. However, the firm had already been active in Switzerland since 2003. Opening a representative office in 2008 strengthened its presence and commitment to the region. Despite the financial crisis, T. Rowe Price used its strong reputation and global expertise to successfully navigate the market. The firm's focus on building long-term relationships, maintaining a consistent investment philosophy, and utilizing robust research capabilities helped it establish a foothold in Switzerland.

What separates T. Rowe Price in Switzerland from other US-Asset Managers?

What truly sets us apart in Switzerland is the combination of deep expertise, a powerful research platform, and a strong focus on client relationships — all designed to deliver meaningful investment results. A key strength lies in the firm’s extensive experience in US Equity and Global Equity investing. Covering the full spectrum from small to large caps and across value and growth strategies, T. Rowe Price offers a breadth of knowledge that few competitors can match. This versatility enables the firm to identify compelling investment opportunities in various market environments. Central to this success is one of the largest buy-side research platforms in the industry. With over 800 investment professionals working across global markets, the firm’s integrated approach encourages collaboration between its equity and fixed income teams. This cross-asset perspective enhances the firm’s ability to uncover insights, manage risks, and build resilient portfolios — a distinct advantage that few global players provide at this scale. Our investment strategies are also shaped by a team of experienced portfolio managers with remarkable tenure. Some have been with the firm for over 30 years, ensuring continuity in the firm’s investment philosophy and a deep understanding of evolving market dynamics.

You are one of the longstanding country managers here: What are your accomplishments?

As a longstanding country manager with 13 years at T. Rowe Price, my tenure is a testament to the mutual trust and alignment of values and mindset I share with the company. One of my key accomplishments has been growing our office from a team of just 1-2 people to a robust team of 8, which has enabled us to expand our reach and better serve our clients. We have successfully built a broad customer base and established long-standing relationships with both institutional and intermediary clients. Our commitment to fostering mutual relationships has made us well-known and respected by our clients, reflecting the strength and reliability of our presence in the market.

How strong are your links to headquarters in Baltimore and what is your part in shaping the specific T.Rowe Price offerings in Switzerland?

The strong links between T. Rowe Price in Switzerland and the headquarters in Baltimore are exemplified by the firm's integrated global research team and collaborative investment management approach. The Swiss office plays a crucial role in adapting global strategies to local market conditions, leveraging the firm's extensive research capabilities and investment expertise to provide targeted solutions. My team ensures that Swiss market insights are directly communicated to Baltimore. This global collaboration allows the Swiss office to influence and align local offerings with the firm's overarching investment philosophy and objectives, demonstrating the Swiss team's vital role in shaping T. Rowe Price's global strategies while addressing the specific requirements of the Swiss market.

Can you give us a picture of how the Â鶹´«Ã½ÔÚÏß Management market is being perceived in Baltimore?

When discussing the Â鶹´«Ã½ÔÚÏß Management market, it's important to consider both our competitors and the discipline of asset management, as well as the two key distribution channels: intermediary and institutional. Both intermediary and institutional channels are crucial to our operations, especially given the presence of large wealth managers with a global footprint who are domiciled here and successfully conducting their business. Switzerland is recognised as one of the leading countries with a strong desire to collaborate with international asset managers. Our firm's philosophy is centred around respecting our clients and assisting them in overcoming their financial challenges, regardless of their location. We are committed to building strong partnerships and delivering exceptional asset management services to meet the diverse needs of our clients.

T. Rowe Price is committed to active management, while the passive trend continues to attract year by year the main bulk of net new money. Were there or are there any strategic plans to enter the passive market?

T. Rowe Price remains steadfast in its commitment to active management despite the ongoing trend of passive investments attracting the majority of net new money each year. The firm emphasizes the value of active management through its ability to deliver superior returns and manage risks effectively over various market cycles. T. Rowe Price's actively managed funds have consistently outperformed comparable passive funds across multiple time frames, demonstrating the firm's expertise and strategic insights. While passive investments are popular for their lower fees and simplicity, T. Rowe Price believes in the advantages of active management, such as adaptability to market conditions and the potential for outperformance. The firm continues to focus on leveraging its skilled investment professionals and robust research capabilities to provide clients with differentiated investment solutions that align with their long-term goals.

Compared to the standard ETF: What are the main advantages of Active ETFs?

Actively managed exchange traded funds combine the advantage of ETFs with active management, aiming to outperform benchmarks through expert stock/bond selection and/or provide unique portfolio exposures. While ETFs have historically been synonymous with tracking benchmarks, the launch of actively managed ETFs introduces a new dimension, combining the advantages of ETF transparency and daily exchange liquidity with the power of active management.

ESG investing is in a difficult position. But T. Rowe Price stays committed to impact investing. How do you differentiate ESG from impact investing?

T. Rowe Price differentiates ESG investing from impact investing by focusing on the objectives and approaches of each strategy. ESG investing at T. Rowe Price involves the integration of environmental, social, and governance factors into the broader investment analysis process. This approach is inclusionary, aiming to identify investment opportunities and manage risks by incorporating ESG considerations alongside other financial metrics. ESG integration does not exclude investments but rather enhances the decision-making process with qualitative and quantitative insights. In contrast, impact investing at T. Rowe Price is characterised by the explicit intention to generate positive environmental or social impact alongside financial returns. Impact investing is more targeted, seeking out companies that can compound both positive impact and financial returns over time. It involves a dual mandate where both financial performance and measurable positive impact are prioritised equally. Impact investing also excludes companies that do harm or lack material positive impact on society or the environment. This distinction highlights T. Rowe Price's commitment to not only integrating ESG factors but also actively pursuing investments that drive meaningful change.

What are your personal goals with T.Rowe Price in Switzerland?

My personal goals with T. Rowe Price in Switzerland are centred around delivering exceptional quality to our clients and ensuring they have access to our comprehensive investment platform. I aim to foster more strategic collaborations and build new partnerships that enhance our offerings and strengthen our position in the market. By focusing on these objectives, I strive to contribute to the growth and success of T. Rowe Price in Switzerland, while continuing to uphold the values and standards that define our firm.