The T. Rowe Price Funds OEIC Global Impact Credit and T. Rowe Price Funds OEIC Global Impact Equity have gained approval to use the ‘Sustainability Impact’ label under the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) regime.

T. Rowe Price stated that it believed its Global Impact Credit Fund was one of the first fixed income funds to be granted approval to use the SDR Sustainability Impact label.

Managed by Matt Lawton, the Global Impact Credit fund carries a dual mandate, targeting positive environmental and social impact alongside financial return.

The fixed income market was an “essential channel” to direct capital towards activities and projects supporting environmental and social outcomes, according to T. Rowe Price.

It added that the continued growth, diversification, and innovation occurring within the ESG-labelled bond market offered “exciting opportunities” to provide direct financing to projects that are aiming to deliver positive and measurable impact.  

Meanwhile, the Global Impact Equity Fund, which invests in listed companies offering an environmental or social positive impact with strong earnings and cash flow growth, is managed by Hari Balkrishna.

T. Rowe Price said that public equity markets were “vital” for driving change at scale, and the opportunity to own businesses that offer solutions to environmental or social challenges is greater than ever before in equity markets, as companies increasingly shift investment to address these ‘pressure points’. 

“The Sustainability Impact label provides significant benefits for our clients by ensuring transparency and accountability, allowing investors to make informed decisions aligned with their values and sustainability goals,” commented T. Rowe Price head of distribution, UK and Ireland, Nataline Terry.  

“Ultimately, securing the Sustainability Impact label reinforces our commitment to impact investing and validates our funds’ approach to contribute to measurable and real-world outcomes. 

“We strongly believe impact is achieved within an investment portfolio not only by investing in companies that can make a difference to the environment or society, but also by engaging with companies in a number of impact related themes.” 

T. Rowe Price will adopt the Sustainability Impact label for these funds early next year.

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