“A standard with a rating system can help hold the line on social impact and differentiate those who are truly making a difference from those who are simply telling a story."

- Antony Bugg-Levine, Rockefeller Foundation

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Fund Manager Assessment

The Fund Manager Assessment is comprised of approximately 50 questions regarding a fund's policies and practices in deploying and managing its capital that covers the following topics:

Content Measures the Following:
Targeted for Investment
Past Performance

Evaluates the fund manager's past experience and dedication to impact investing as determined by investments made in previous funds

Current Fund

The fund's impact investing target and performance objectives as outlined by the fund's PPM or LP agreements

Investment Criteria
Positive Impact

The effectiveness of the fund's policies and practices to screen and structure investments for positive social or environmental impact

Risk Mitigation

The effectiveness of the fund's policies and practices to screen out investments that may have a negative social or environmental impact (unweighted)

Portfolio Management
Mission Lock

The effectiveness of the fund's policies and practices to ensure that a focus on mission is maintained by the fund manager and its portfolio companies

Mission Aligned Exit

The effectiveness of the fund's policies and practices to maintain the social and environmental mission of portfolio companies after an exit event

Portfolio Reporting

The effectiveness of the fund's policies and practices to maintain transparent reporting of social and environmental performance

Capacity Building

The effectiveness of the fund's policies and practices to provide capacity building and technical expertise to portfolio companies

 

Questions in the Fund Manager Assessment are tailored depending on three variables: Type of Security that the fund manager invests; the Stage of Investment that the fund is in; and the fund's Geographic Focus. A fund manager completes one of 24 different versions of the assessment depending on these variables.

To receive the relevant assessment version, a fund is asked to choose its appropriate Type of Security, Stage of Investment, and Geographic Focus. Below is a description of each:

Type of Security Funds for whom the majority of investments are/will be:
Equity & Quasi-Equity
An ownership stake, or debt that has some similar characteristics of equity such as offering fl exible repayment options, warrants, convertibility into equity, or being unsecured
Long-term Debt
Loans with a maturity of greater than one year from date of issuance
Short-term Debt
Loans with a maturity of less than one year from date of issuance
Fund of Funds
Investments in a portfolio of other funds

 

To determine whether a country should be classifi ed as "Developed", "Emerging" or "Frontier," GIIRS uses an methodology based on Human Development Index (HDI) levels, Gross National Income (GNI)levels, the World Bank's "Ease of Doing Business" ranking, the ratio of domestic credit to private sector (as % of GDP), and the U.N. Gender Empowerment Index. Appendix VII includes a complete list of countries listed in the GIIRS Country Classification table.(12)

Target Market Ranking on Algorithm Approximate for funds for whom the majority of capital deployed is/will be: Example Countries
Developed High In industrialized countries United States, Canada, Japan, Australia, UK
Emerging Medium In countries with rapid growth and industrialization  China, India, Brazil, South Africa, Czech Republic
Frontier Low In countries with slower rates of growth and industrialization Kenya, Pakistan, Haiti, Tanzania, Uganda

 

To understand how the Fund Manager Assessment is weighted and scored, see Appendix VIII


(12) Subject to revision on an annual basis.