I remember hearing about the "splitting" of T. Rowe Price Associates and T. Rowe Price Investment Managemnt last year, but didn't really know what to think of it. Over the weekend, I ran upon this barrons article which highlighed the rationale in more detail than I anticipated. So long story short, it seems T. Rowe got so big, that it needs two entities to manage investment capacity? While I think I understand this...when i start talking it out, it doesn't make much sense to me. So This helps them so at an entity level, they aren't invested too much in a single company? Or does this help them with reporting, meaning, they don't have to report owning >X% of a company? Or is this from a trading perspective, having separate entities will make it easier to trade without moving markets? When i take a step back, I don't fully understand how its that different from just having one entity?
And of course, the most important question: I don't fully understand if this is a good or bad thing for investors?
And I assume Blackrock and every other big manager >$1tn AUM has done this?https://www.barrons.com/articles/t-rowe-price-is-splitting-in-two-what-that-means-for-investors-51606333566