US investment manager T. Rowe Price has announced its Global Impact Equity Fund is recognised by the Monetary Authority of Singapore (MAS) as an ESG fund under the central bank’s new disclosure and reporting guidelines for retail investors.
Under MAS’s new guidelines for retail ESG funds that took effect on 1 January, ESG-labelled funds sold to retail investors in Singapore must provide information on investment strategy, criteria, and metrics used to select investments, risks, and limitations associated with the fund’s strategy.
“The new guidelines are instrumental in mitigating the risk of greenwashing and helping retail investors better understand the ESG funds they invest in,” said Glen Lee, head of intermediary, Asia ex-Japan at T. Rowe Price.
“We see steadily increasing demand from clients for active impact investing strategy that allows them simultaneously to pursue financial goals and positive impact.”
The Global Impact Equity Fund aims to invest in companies that create positive social or environmental impact while potentially offering superior growth prospects and investment characteristics.
The investment opportunities lie within three pillars in alignment with the United Nations Sustainable Development Goals, which are climate and resource impact, social equity and quality of life, as well as sustainable innovation and productivity, according to the investment manager.
The fund is managed by London-based portfolio manager, Hari Balkrishna.
T. Rowe Price began its operation in Singapore in 1996, and offers 22 funds to local retail investors as of 1 February. The investment manager had $1.27trn in assets under management as at the end of 2022.