June 2023 / INVESTMENT INSIGHTS
T. Rowe Price Strategy Focus on Global Impact Credit
Strategy Summary
FEATURES
Our Impact Charter
The core tenets of the portfolio’s investment philosophy include:
1. Materiality
All our investments start with a security‑by‑security assessment of impact materiality. Our RI team defines our impact universe through careful screening; a deep understanding of ESG factors; industry‑specific, forward‑looking impact inclusion criteria; and an evaluation of the credibility of the ESG‑labeled bonds through our proprietary framework.
2. Measurability
Given our mandate’s dual nature, impact measurement is integral to the investment process. We quantify the alignment of every security with our three impact pillars and the UN SDGs. Additionally, each investment thesis embeds security‑specific key performance indicators (KPIs) as our analysts collaborate with the portfolio management team to define our investment thesis.
3. Additionality
We truly believe impact is achieved within an investment portfolio in more ways than simply investing in a company and capturing the economics and activities. Our approach involves directing fresh capital toward desired impact outcomes alongside impact‑oriented company engagements and the associated influence feedback loop.
Done well and in partnership with our fundamental and responsible research analysts and governance team, we believe this will potentially create benefits not only for our Global Impact Credit Strategy clients, but also for other investors.
4. Resiliency
Given the complexity and nonlinear nature of delivering impact and the patience it necessitates, adopting a long‑term and holistic view when investing to solve sustainability challenges is necessary. We integrate our security perspectives to identify, in our view, underappreciated impact and mispriced economic return improvement on a truly global, security‑by‑security basis.
Download the full article here: (PDF)
IMPORTANT INFORMATION
This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.
June 2023 / INVESTMENT INSIGHTS
Matt Lawton is a portfolio manager in the Fixed Income Division. He manages the Global Impact Credit Strategy and the Global Impact Short Duration Bond Strategy. Matt is a member of the Investment Advisory Committees for the Corporate Income, New Income, Ultra Short-Term Bond, and Short-Term Bond Funds. He also is a member of the Fixed Income ESG Steering & Advisory and the ESG Committees. Matt is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
