Global Investment Manager Brings ESG Fund to Singapore Retail Investors

Global investment management company T. Rowe Price announced that three of its actively managed funds have been recognised by Monetary Authority of Singapore (MAS) for local retail distribution.

In addition, T. Rowe Price SICAV – Global Impact Equity Fund has become the first ESG fund for retail investors recognised by the MAS under its new disclosure and reporting guidelines for retail ESG funds effective on 1 January 2023.

T. Rowe Price SICAV – Global Impact Equity Fund (the “Fund”) is an actively managed and diversified portfolio that seeks to invest in companies with the potential to create positive social or environmental impact while potentially offering superior growth prospects and investment characteristics.

The Fund seeks to identify investment opportunities with its three impact pillars that are in alignment with the United Nations Sustainable Development Goals: climate and resource impact, social equity and quality of life, as well as sustainable innovation and productivity.

It also adopts a multi-dimensional, stock-based and robust impact measurement analysis in order to deliver its dual mandate of providing both impact and financial performance. The Fund is managed by London-based portfolio manager, Hari Balkrishna.

Under MAS’s new disclosure and reporting guidelines for retail ESG funds, ESG-labelled funds sold to retail investors in Singapore must provide information on investment strategy, criteria, and metrics used to select investments, risks, and limitations associated with the fund’s strategy.

Glen Lee, Head of Intermediary, Asia ex-Japan, T. Rowe Price, said: “The new guidelines are instrumental in mitigating the risk of greenwashing and helping retail investors better understand the ESG funds they invest in. We are pleased that the T. Rowe Price SICAV – Global Impact Equity Fund is the first to be recognised as meeting these rigorous criteria.”

Lee adds, “We see steadily increasing demand from clients for active impact investing strategy that allows them simultaneously to pursue financial goals and positive impact. To meet this demand, we offer Singapore investors a differentiated impact investing solution that leverages T. Rowe Price’s proprietary framework and impact analysis, backed by active stock selection and research from our global equity research and ESG specialist team. We will continue to seek opportunities to bring our suite of impact investing products to local investors.”

The MAS also newly recognised three products from T. Rowe Price’s flexible fixed income product suite for Singapore retail distribution, including the T. Rowe Price SICAV – Dynamic Global Bond Fund, T. Rowe Price SICAV – Dynamic Credit Fund, and T. Rowe Price SICAV – Dynamic Emerging Markets Bond Fund.

“As we entered a new paradigm with higher interest rates and elevated volatility, investors will need a more agile fixed-income investment approach to identify alternative sources of alpha generation and downside mitigation against market declines,” Lee said. “T. Rowe Price’s flexible and dynamic fixed-income solutions are well-suited to serve that purpose.”

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