Nurturing Change

Global Impact Credit Strategy


In 2021, T. Rowe Price expanded its impact range and launched its first impact credit strategy. The T. Rowe Price Global Impact Credit Strategy targets durable growing businesses who have a clearly identified impact thesis aligned to three key pillars: climate and resource impact, social equity and quality of life, and sustainable innovation and productivity. 

Public fixed income offers a fertile ground for impact investment opportunities. The market can facilitate the flow of capital from investors to the very projects and institutions that we believe are best placed to drive positive environmental and/or social impact.

 

Our Global Impact Credit Strategy aims to invest in companies that create positive and measurable impact whilst also seeking outperformance.

VIDEO

Hear our Portfolio Manager

Matt Lawton talks about impact investing, its challenges and its opportunities. 

DISCUSSION

Meet the Manager

Q&A with Matt Lawton, Portfolio Manager on his professional and personal motivations in managing an impact credit strategy. 


ARTICLE

Impact Investing in Credit: Debunking Four Common Misconceptions

We attempt to debunk four popular myths about impact investing, as well as showing how T. Rowe Price’s Global Impact Credit Strategy addresses them.

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. Counterparty risk—An entity with which the portfolio transacts may not meet its obligations to the portfolio. ESG and Sustainability risk - May result in a material negative impact on the value of an investment and performance of the portfolio 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. High Yield bond risk - ​High yield debt securities are generally subject to greater risk of issuer debt restructuring or default, higher liquidity risk and greater sensitivity to market conditions. 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). Market risk - Market risk may subject the fund to experience losses caused by unexpected changes in a wide variety of factors. Operational risk—Operational failures could lead to disruptions of portfolio operations or financial losses.

Global Impact Credit Strategy Annual Report

Our inaugural impact annual report articulates the decisions we have taken in the context of our core investment principles. Specifically, it aims to share with you the impact that those decisions have made on our environment and society​.

The need for impact investing is greater than ever

Matt Lawton, Portfolio Manager of the Global Impact Credit Strategy, shares his thoughts on the challenges of managing an impact portfolio and how he plans to overcome them.

Hear our Portfolio Manager 

Matt Lawton introduces our inaugural annual impact report.

Case Studies

Climate and Resource Impact 
NEXTERA ENERGY PARTNERS
Social Equity & Quality of Life
MERCADOLIBRE
Sustainable Innovation & Productivity
AUTODESK

How we view impact investing

Our thinking on ESG 

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