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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.

VIDEO

Case Study: The Plastic Waste Reduction-Linked Bond 

A discussion with Tongai Kunorubwe, Head of ESG, Fixed Income on an innovative bond market transaction.


Driving Impact Investing Forward

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.


Global Impact Credit Strategy – Annual Impact Report

Our second annual impact 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​.


Video Inroduction to the Annual Impact Report

Hear from Portfolio Manager Matt Lawton about our Global Impact Credit Strategy's annual impact report.

Case Studies

Wildlife Conservation Bond – the “Rhino Bond”

Matt Lawton, Portfolio Manager, Global Impact Credit discusses Wildlife Conservation Bond – the “Rhino Bond” from the Impact Sub-pillar Promoting Healthy Ecosystems.

CaixaBank

Matt Lawton, Portfolio Manager, Global Impact Credit discusses CaixaBank from the Impact Sub-pillar Enabling Social Equity.

Rady Children’s Hospital

Matt Lawton, Portfolio Manager, Global Impact Credit discusses Rady Children’s Hospital from the Impact Sub-pillar Improving Health.

NXP Semiconductors

Matt Lawton, Portfolio Manager, Global Impact Credit discusses NXP Semiconductors from the Impact Sub-pillar Sustainable Technology.

How we view impact investing

Our thinking on ESG 

202402-3369358

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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