T. Rowe Price has launched a pair of impact strategies focused on delivering positive and measurable impact on the environment and society, as well as alpha generation.
The T. Rowe Price Global Impact Equity Fund, managed by Hari Balkrishna, aims to deliver returns by investing in companies where the team can carry out impact-oriented corporate engagement and active proxy voting. The multi-cap fund holds 55-85 stocks.
Balkrishna said the investment industry has reached an “exciting point”.
“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.”
Meanwhile, the group has also launched the T. Rowe Price Global Impact Credit Fund, managed by Matt Lawton. It targets credit with “durable growing businesses with a clearly identified impact thesis”, the firm said, and is not limited to green bonds – it can invest across the credit and corporate universe into impact-aligned issuers. This includes renewable energy companies, not-for-profit hospitals, and development banks, for example.
Manager Lawton said: “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.”
Th group has aligned both strategies to three key pillars: climate and resource impact, social equity and quality of life, and sustainable innovation and productivity.