TROW

What You Should Know

T. Rowe Price is a global asset management firm that manages mutual funds, ETFs, and institutional separate accounts across equities, fixed income, and multi-asset strategies. Revenue is overwhelmingly derived from management fees on these conventional investment products, the bulk of which include interest-bearing fixed-income holdings, dividend-paying companies that have not been Sharia-screened, and non-compliant financial-services equities. Most major Sharia advisory boards classify conventional asset managers whose primary product line is non-Sharia-compliant mutual funds and bond funds as failing the qualitative business activity screen, in the same way conventional banks and insurers are excluded. T. Rowe Price is excluded from major Islamic indices on those grounds. Financial ratios are clean — the firm runs with a near-debt-free balance sheet and large cash reserves — but the qualitative screen is the binding constraint.