“This isn’t a replacement for fundamental research,” said Nigel Faulkner, head of technology, who joined in 2015 from Credit Suisse Group AG. “We want to use technology to find alpha,” or outperformance.
Another area slated for a 10 percent spending hike this year is advertising and promotion.
“We’ve been a quiet firm,” said Stromberg. “Our feeling was that if we deliver terrific results that would carry the day.”
With the advocates for passive investing pressing their case so forcefully, said Stromberg, it may be time for T. Rowe Price to raise its voice.
“We may have to be more active in defense of active management,” he said.
This article was provided by Bloomberg News.