T. Rowe Price Spectrum Mod Gr Allc Fd has a number of attributes that may meet the expectations of sustainability-focused investors, despite some issues worthy of attention.
T. Rowe Price Spectrum Mod Gr Allc Fd's holdings are exposed to average levels of ESG risk relative to those of its peers in the Aggressive Allocation category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. Unlike impact, which measures positive environmental and societal outcomes attributable to an investment, ESG risk reflects the degree to which investments could be affected by material ESG issues like climate change and inequalities.
T. Rowe Price Spectrum Mod Gr Allc Fd has a Carbon Risk Score of 7.89, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund has 6.76% involvement in fossil fuels, which compares favorably with 10.91% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas.
One potential issue for a sustainability-focused investor is that T. Rowe Price Spectrum Mod Gr Allc Fd doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.
The fund exhibits moderate exposure (8.64%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.