T Rowe Price unveils enhanced ESG funds range

T Rowe Price, an independent USD1.01 trillion asset manager, has launched a new range of five sustainable SICAV funds.

The company’s Socially Responsible Investment (SRI) classified funds, which are based on five long-established T Rowe Price portfolios, offer investors an opportunity to align their investments with their values.

The new fund range comprises:

• T Rowe Price Sustainable Global Focused Growth Equity Fund
• T Rowe Price Sustainable Global Growth Equity Fund
• T Rowe Price Sustainable US Large Cap Growth Equity Fund
• T Rowe Price Sustainable Asia ex-Japan Equity Fund
• T Rowe Price Sustainable Emerging Markets Equity Fund

The range imposes values-based parameters to existing portfolios, via an overlay of a proprietary exclusion list, while maintaining the same investment processes and objectives as the core strategies. The exclusion screen was developed in response to the most common environmental, social and ethical (ESG) concerns expressed by T Rowe Price’s clients.

ESG analysis is already embedded into the investment process of the original T Rowe Price strategies, with the investment teams actively engaging with companies on ESG issues. The teams also utilise T Rowe Price’s proprietary Responsible Investing Indicator Model (RIIM) to further integrate ESG considerations into fundamental research and investment decisions.

Maria Elena Drew, Director of Research, Responsible Investing at T Rowe Price, says the launch of the sustainable equity funds adds yet another pillar to the group’s ESG capabilities.

“These funds will incorporate the ESG research capabilities that are already integrated across the firm’s research platform, as well as safeguard that certain types of securities will not be held in the portfolio,” Drew says.“The new funds range offers clients access to portfolios that exclude specific companies whose business activities involve controversial weapons, assault-style weapons for civilian use, the production of tobacco, the production of thermal coal and adult entertainment.

“In addition to this, T Rowe Price’s actively monitored conduct-based component of the exclusion list ensures the avoidance of investing in companies that have had an extreme environmental, social, ethical or governance breach and are not taking credible steps to remediate the issue.”

Registration of the Select Investment Series III SICAV is in progress across select European countries and the UK.