Impact Investing

Invest in companies which make an impact


We believe we can generate both compelling investment returns and social and environmental impacts for our investors.


Invest on the right side of societal and environmental change

Why should we consider impact investing? We are living in a time of environmental and societal change that is defining a generation. Therefore it is increasingly important to ensure our investments are aligned to changing expectations around sustainability and fairness. 

More and more investors are clearly inclined towards sustainability; but impact investing goes further. It identifies companies on the right side of change that are delivering environmental and social impact, as well as positive financial return.

As impact investors, we believe we have a unique opportunity to play a key role in helping deliver positive outcomes that the world is increasingly seeking — partnering with clients, investors, and business interests in the process. 

We have launched a Global Impact Equity Strategy with a dual mandate that aims to deliver both benchmark outperformance and positive environmental or social impact.


General Portfolio Risks

Capital risk - the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the portfolio and the currency in which you subscribed, if different. ESG and Sustainability risk - May result in a material negative impact on the value of an investment and performance of the portfolio. Equity risk – in general, equities involve higher risks than bonds or money market instruments. Geographic concentration risk – to the extent that a portfolio invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area. Hedging risk – a portfolio's attempts to reduce or eliminate certain risks through hedging may not work as intended. Investment portfolio risk – investing in portfolios involves certain risks an investor would not face if investing in markets directly. Management risk – the investment manager or its designees may at times find their obligations to a portfolio to be in conflict with their obligations to other investment portfolios they manage (although in such cases, all portfolios will be dealt with equitably). Operational risk – operational failures could lead to disruptions of portfolio operations or financial losses.
 

Investing in Sustainable Solutions

  • We align our investments with the UN Sustainable Development Goals, to direct capital towards specific impact outcomes
  • We incorporate ESG factors into our investment analysis and base each investment decision on a material and measurable positive impact thesis

Forward-looking and Resilient

  • We apply a forward-looking mindset and a perspective on change, in order to seek positive impact and potential financial returns for our clients
  • We identify inefficiencies embedded in markets by combining our active and high conviction approach, with our traditional and responsible investment research capability

Active Influence

  • We commit to using our scale and resources to promote and progress the impact agenda via active ownership and impact-oriented company engagement
  • We adopt an outcome-oriented approach to active ownership and report on progress regularly

Our Impact Charter

Material

We base our stock inclusion criteria on a corporation's activities and their alignment with clearly defined impact pillars, always accounting for dimensions of positive future change.

Measurable

We quantify outcomes individually and collectively as we translate impact intentionality into a measurement framework.

Additional

We aim to capture positive environmental and social outcomes on a global basis, but we also commimt to using our scale and resources to promote and progress the impact agenda.

Resilient

In an era of disruption and extreme outcomes, positive change has to be durable. Patience and collaboration will be key in pursuing good client outcomes.

 

 

How we view impact investing

Find out how we view impact investing as a way to drive environmental and societal change.

 

 

Hear from our Portfolio Manager

Hari Balkrishna talks about impact investing and what it means to him.

Q&A

Impact investing: investing in an era of change

Q&A with Hari Balkrishna, Portfolio Manager on our approach to impact investing, and the opportunities and challenges that lie in this increasingly popular asset class.

Latest Insights

June 2021 / INVESTMENT INSIGHTS

What Makes an “Impact” Investment Manager?

What Makes an “Impact” Investment Manager?

What Makes an “Impact” Investment Manager?

Understanding the required foundation to build, manage, and measure an impact portfolio

By Hari Balkrishna

Hari Balkrishna Portfolio Manager, Global Impact Equity Strategy

April 2021 / INVESTMENT INSIGHTS

Impact Investing: Why It Matters Now More Than Ever

Impact Investing: Why It Matters Now More Than Ever

Impact Investing: Why It Matters Now More...

Equity markets are vital for driving environmental and social change.

By Hari Balkrishna

Hari Balkrishna Portfolio Manager, Global Impact Equity Strategy


T. Rowe Price 

Global Impact Equity Fund

I Class

Dual mandate portfolio which seeks both long-term capital appreciation as well as seeking to have a positive effect on the environment and society by investing in companies whose current or future business activities are expected to generate a positive impact under one of the following three impact pillars ("Impact Pillars"):

  • Climate and resources;
  • Social equity and quality of life; and
  • Sustainable innovation and productivity.

*The Management Fee for the T. Rowe Price Global Impact Equity Fund - I Class is 0.99% p.a. and the Indirect Cost is 0.00% p.a. Full details of other fees and charges are available within the Fund's Product Disclosure Statement and Reference Guide.

Inception Date

29 March 2021

Base currency

AUD

Management Fee & Costs*

0.99% p.a.

APIR Code

ETL6342AU

Benchmark

MSCI All Country World ex Australia Index (net of withholding tax)

Past performance is not a reliable indicator of future performance.

View Important Research House Rating Information

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If you have questions or would like more information about T. Rowe Price, please contact us.

T. Rowe Price Global Impact Equity Fund has been certified by the Responsible Investment Association Australasia according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsiblereturns.com.au for details. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.

Important Information

Equity Trustees Limited (“Equity Trustees”) (ABN: 46 004 031 298, AFSL: 240975) is a subsidiary of EQT Holdings Limited (ABN: 22 607 797 615), a publicly listed company on the Australian Stock Exchange (ASX:EQT). Equity Trustees and T. Rowe Price Australia Limited ("TRPAU") (ABN: 13 620 668 895, AFSL: 503741) are, respectively, the responsible entity and investment manager of the T. Rowe Price Australian Unit Trusts. Available in Australia for Wholesale Clients only.A Target Market Determination for each T. Rowe Price Australian Unit Trust (or class of units in a Trust) is available here (www.eqt.com.au/insto). A Target Market Determination is a document which is required to be made available from 5 October 2021. It describes who the financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where Equity Trustees Limited, the responsible entity of the T. Rowe Price Australian Unit Trusts may need to review the Target Market Determination for the financial product.

Past performance is not a reliable indicator of future performance. The price of any fund may go up or down. Investment involves risk including a possible loss to the principal amount invested. For general information purposes only, does not take into account the investment objectives, financial situation or needs of any particular investor. For further details, please refer to each fund's product disclosure statement and reference guide which are available from Equity Trustees (www.eqt.com.au/insto) or TRPAU (www.troweprice.com.au).

202110-1881941

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