In 2020, T. Rowe Price committed to launching its first impact investment strategy. This followed several years of investment to build the firm’s capabilities in responsible investing and to meet our clients’ rapidly evolving needs with respect to integrating environmental, social, and governance (ESG) factors.
The Global Impact Equity Strategy was born through our desire to contribute in a positive way to the challenges our planet and society face today—challenges that require commitment and action. We believe impact investing is the most direct way we can influence and address these challenges—via conscious action, engagement, and skilled execution.
Our Global Impact Equity Strategy has a dual mandate that aims to deliver both benchmark outperformance and positive environmental or social impact.
STRATEGY SPOTLIGHT
Strategy Summary
Q&A
Q&A with Hari Balkrishna, Portfolio Manager on why he believes the market is ready for investors seeking to make a more active and conscious choice to favor companies that can deliver positive environmental and 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.
VIDEO
Three Years of Global Impact Equity
VIDEO
Impact Investing: Looking Ahead
Roundtable discussion with Hari Balkrishna, Portfolio Manager, Global Impact Equity and Matt Lawton, Portfolio Manager, Global Impact Credit on areas they are focused on to drive impact investing forward.
Our latest Global Impact Equity Strategy annual report articulates our impact journey and 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.
In the report we estimate some short-term outcomes, as well as long-term impact delivered by a sample of companies we invest in. We demonstrate how we seek to deliver impact in more ways than simply owning companies whose business activities lead to positive social and environmental outcome.
Find out more about our latest Global Impact Equity impact annual report.
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