What You Need to Know
- T. Rowe was already integrating ESG analysis across all its portfolios.
- Hartford Funds launched an ETF that invests in companies positioned to benefit from an aging population.
- Nuveen plans a high-yield muni closed-end interval fund.
T. Rowe Price, which already integrates environmental, social and governance (ESG) analysis across its portfolios, has gone a step further with its first impact fund.
The actively managed T. Rowe Price Global Impact Equity Fund invests in companies that it deems will have a positive impact on the global environment and social equity issues. The fund is aligned with the United Nations Sustainable Development goals, a global framework designed to make the world a better place, without poverty, hunger, inequality and the negative effects of climate change.
The new fund seeks “companies that are on the right side of these changes,” and that “can potentially provide excess returns over its fund’s benchmark, the MSCI All-Country World Index,” according to T. Rowe Price. It excludes investments in fossil fuels, tobacco, gaming and for-profit person companies and focuses on climate and resource impact, social equity and quality of life and sustainable innovation and productivity.
The fund is fairly concentrated, investing in about 55 to 85 global securities using an all-capitalization, high-conviction approach. Investor Class shares (TGPEX) have a net expense ratio of 0.94% and require a minimum initial investment of $2,500. Institutional I shares have a 0.79% expense ratio and minimum initial investment of $1 million.
Hari Balkrishna, who was most recently as associate portfolio manager of the firm’s Global Growth Equity Strategy, will manage the new fund and draw on the expertise of the firm’s global equity research analysts and portfolio managers, its ESG experts and proprietary Responsible Investing Indicator Model (RIIM) database, which measures more than 15,000 securities against established environmental and social parameters.
Hartford Funds Launches Longevity ETF
Hartford Funds has introduced an ETF that invests in the companies and sectors expected to benefit from the buying power of a growing aging population.
The Hartford Longevity Economy ETF (HLGE) invests in companies involved in aging in place and home modification, in maintaining social connections, in leisure and entertainment and in health care.
It is benchmarked against the Hartford Longevity Economy Index (LHLGEX), a rules-based proprietary index developed in consultation with the MIT AgeLab, and Lattice Strategies, a wholly owned subsidiary of Hartford Funds, which also values securities based on multiple factors such as valuation, momentum and quality .
The ETF “seeks to deliver a unique and diversifying shareholder experience by tapping into the under-appreciated and persistent value of evolving consumer patterns among the widening senior demographic,” said Vernon Meyer, chief investment officer of Hartford Funds. The ETF is listed on the NYSE Arca exchange and has an expense ratio of 0.44%.
Nuveen Plans a High-Yield Muni Closed End Interval Fund
Nuveen has registered with the Securities and Exchange Commission to launch the Nuveen Enhanced High Yield Municipal Bond Fund, a non-diversified, closed-end fund that is operated as an “interval fund.”