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T. Rowe Price Global Impact Equity Fund

Annual Impact Report

Despite widespread recession concerns, markets performed unexpectedly well in 2023, particularly in the industrial and technology sectors.

Since its launch in 2021, the Global Impact Equity Fund has continuously refined its investment process, attracting increased interest in impact-focused investments. Our efforts are concentrated on health care, energy security, and sustainability, with notable innovations emerging in these areas.

Introduction: 2023 Impact Annual Report

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      We're really excited to bring you our latest Global Impact Equity Annual Report.

      The annual report is our attempt to look back on the last year and measure the impact from our investments.

      As a reminder, the companies we invest in provide positive environmental and social impact alongside of financial return.

      Their products and services provide solutions for the environmental and social problems of tomorrow.

      In the annual report, we've tried to be as transparent as possible, covering a whole range of real-world key performance indicators, engagement examples, as well as a whole range of case studies by sub pillar.

      For instance, we talk about how Linde helps decarbonize heavy industry.

      We look at how new bank in Latin America is enabling close to 75 million customers with financial inclusion and provide them with their first debit or credit card.

      We look at how a company like Trex takes plastic out of landfill and converts that in a composite decking and diverts waste as a result.

      We've also published two thought pieces, one on GLP-1s and how we believe we've reached a watershed moment where they can solve for diabetes, obesity and a whole range of other health problems.

      In addition, we also cover microplastics and the damage they do to the human health as well as the environment, and we look at companies that can help solve that problem and provide solutions in that regard.

      We couldn't be more excited about the prospects for impact investing in the years to come.

      In this video, Hari Balkrishna, Portfolio Manager at T. Rowe Price, introduces our latest Global Impact Equity Annual Report, reflecting on the positive environmental, social, and financial outcomes of our investments over the past year.

      He highlights key performance indicators, impactful case studies, and thought leadership pieces on health and environmental solutions, offering transparent insights into how companies are driving meaningful change and shaping a more sustainable future.

      Our easy-to-use Global Impact Equity Portfolio Tool gives you the ability to see exactly what companies we invest in and how they fit into our impact investment framework. Our select company case studies provide deeper insights on the rationale for their inclusion from both an impact and financial perspective.

      Impact outcomes

      The companies in which the Global Impact Equity Fund invests deliver positive contributions across several areas of impact. While the absolute level of impact associated with each company may be sizable, the extent to which impact is associated with any one strategy naturally relies on the level of investment made. As such, the below data1 are presented in two ways: (1) in aggregate at the company level and (2) normalised to represent the impact associated with USD 1 million invested in the Global Impact Equity Fund.

      Read the full annual report

      Our 50+ page report contains:

      checkmark  Portfolio alignment and changes (pg. 7)

      checkmark Thematic insights (pg. 9)

      checkmark  Impact outcomes and case studies (pg. 18)

      checkmark  Active ownership (pg. 31)

      checkmark  Advocacy and engagement initiatives (pg. 41) 

      Read PDF Report

      Thematic insights

      For the latest portfolio holdings, positioning and reports, visit our detailed product page.

      1 For illustrative purposes only. The impact outcomes provided here can be susceptible to potential inconsistencies due to lack of precise information. Companies do not measure or report in a consistent or uniform way. Where information is not available, we have not included a company’s contribution within the impact outcome. This means that these estimates may actually be conservative, but as companies get better at measuring impact, we expect these data points to become even more precise. Additionally, normalized data estimates the impact of the portfolio’s holdings and is calculated by multiplying each core impact KPI at the aggregate company level by the fraction of the company’s total enterprise value including cash (EVIC) that is owned by the portfolio based on a hypothetical investment of USD 1 million for the period end. Individual company results may vary significantly and may not achieve the same level of impact in the future. Based on company reported data.

      2 CO2e: carbon dioxide equivalent or CO2 equivalent. This metric is used to compare the emissions from various greenhouse gases on the basis of their global warming potential by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. Source: Eurostat.

      3 Underbanked refers to people who do not have sufficient access to mainstream financial services.

      Additional Disclosures

      Holdings shown are for illustrative purposes only and are subject to change without notice.

      The specific securities identified and described are for informational purposes only and do not represent recommendations or statement of opinion intended to influence a person or persons in making a decision in relation to investment. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable. T. Rowe Price may have ongoing business and/or client relationships with the companies mentioned in the report.

      The use of impact key performance indicators ("KPI") is not intended to provide a forward-looking view on the likely performance of each issuer held in the portfolio. Instead, it is intended to document how we will assess the positive additional impact that each issuer’s economic activities are having on the real world. For example, we would note that increasing revenue streams from sustainable economic activities does not necessarily equate to increasing profits, nor does it necessarily equate to positive share price performance. Our investment analysis will also focus on the profitability and perceived value of each issuer and their sustainable initiatives, but this does not form part of the impact KPI.

      Important Information

      Equity Trustees Limited (“Equity Trustees”) (ABN: 46 004 031 298, AFSL: 240975), is the Responsible Entity for the T. Rowe Price Australian Unit Trusts ("the Fund").  Equity Trustees is a subsidiary of EQT Holdings Limited (ABN: 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

      This webpage has been prepared by T. Rowe Price Australia Limited ("TRPAU") (ABN: 13 620 668 895, AFSL: 503741) to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither TRPAU, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. 

      Past performance is not a reliable indicator of future performance. You should obtain a copy of the Product Disclosure Statement, which is available from Equity Trustees (www.eqt.com.au/insto) or TRPAU (www.troweprice.com.au), before making a decision about whether to invest in the Fund named in this material.

      The Fund’s Target Market Determination is available here. It describes who this 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 the Target Market Determination for this financial product may need to be reviewed.

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