T. Rowe Price unveils equity and credit impact strategies

by | Jan 20, 2022

T. Rowe Price, the US$1.6 trillion global asset manager, has launched two impact strategies on its OEIC platform.

The T. Rowe Price Global Impact Equity Fund and T. Rowe Price Global Impact Credit Fund are designed to deliver a positive and measurable impact on the environment and society, alongside the prospect of alpha generation.

Managed by Hari Balkrishna, the T. Rowe Price Global Impact Equity Fund delivers performance through active investment decisions based on impact-oriented corporate engagement, active proxy voting, and building direct influence with management teams. The fund typically holds between 55 and 85 stocks from across the market capitalisation spectrum.

The T. Rowe Price Global Impact Credit Fund, managed by Matt Lawton, targets durable growing businesses with a clearly identified impact thesis. Credit selection is not limited to green bonds, the opportunity set spans across the corporate and credit universe identifying high impact-aligned issuers. Examples include renewable energy companies, not-for-profit hospitals, and development banks.

Both strategies target investments aligned to three key pillars: climate and resource impact, social equity and quality of life, and sustainable innovation and productivity.

Hari Balkrishna, portfolio manager of the T. Rowe Price Global Impact Equity Fund, says: “The investment industry has reached an exciting point where we can contribute to positive societal and environmental change, alongside a focus on financial performance. Being able to marry these goals together in a single strategy is an exciting step forward for us as investors, and we look forward to partnering with clients in our pursuit of positive impact at scale, on a truly global basis.”

Matt Lawton, portfolio manager of the T. Rowe Price Global Impact Credit Fund, comments: “Driving substantive progress in the fight against climate change will require entire sectors to transition. Fixed Income markets, and particularly corporate credit issuers, are playing a crucial role in addressing the world’s pressure points as they present a fertile ground of investment opportunities offering both compelling impact and performance potential.”

John Yule, Head of UK and Ireland at T. Rowe Price, adds: “ESG considerations continue to gain traction within the investment world – driven by societal, governmental, regulatory, and fiduciary demands. At T. Rowe Price, we have been building our responsible investing capability for several years, with ESG considerations now fully embedded within our investment processes. The expansion of our impact franchise is not only a natural extension of our continually evolving ESG efforts but also demonstrates our commitment to the UK market.”

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