“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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Investment Roll-Up

The investment aggregation score, which comprises 90% of the overall fund rating, is determined by a weighted average of the scores of the companies in the fund's portfolio. This is calculated by multiplying each portfolio company rating by the % that the company represents in terms of committed assets under management).

Companies       GIIRS Impact Rating      Deployed Capital     Weighted Average Scoring  
Company A
166 $3.0 12.45
Company B
128.5 7.0 22.49
Company C
120.7 8.0 24.14
Company D
84.8 4.0 8.48
Compant E
97.7 4.0 9.77
Company F
124.1 8.0 24.82
Company G
97.1 3.0 7.28
Company H
121.2 3.0 9.09
$40.0 118.52

 

For all subsequent years, the investment aggregation methodology includes additional characteristics for each company in the fund portfolio. These characteristics include current valuation of each portfolio investment, capacity building, and mission-aligned exit, as detailed below:(13)

Adjustments Description Adjustment Method Adjustment Account Applicable Security Types
Current Valuation
The financial performance of an investment is indicative of the scale of a company's operations. Depending on an investment's positive or negative financial performance (reflected in its updated valuation by the fund), its weighting in the overall portfolio can be adjusted +/- 50%.
Change in the weighting of the company's score within the aggregated portfolio
+/- 50%
Equity, Quasi-Equity, Long-term Debt (in case of writeoff); TBD for Fund of Funds and Short-term Debt
Capacity Building
Funds that facilitate an improvement in a company's social or environmental performance through capacity building during the lifetime of the investment receive a rating adjustment. This bonus recognizes portfolio companies whose scores improve by at least one star.
Increase to company score
+10%, if company's overall score improves by at least one star
Equity, Quasi-Equity and Long-term Debt; TBD for Fund of Funds and Short-term Debt
Mission Aligned Exit
Funds that ensure that a company's mission can be maintained post-exit are recognized through a bonus.
Increase to company score
+10%
Equity and Quasi-Equity

 

Valuations can be updated annually via the fund portal, or held constant for debt investments or until a divestment is made.

Closed End     Open End     
Include company's final GIIRS Impact Rating in overall Fund Rating, post-divestment    
Yes
No

 


(13) Valuations can be updated annually via the fund portal, or held constant for debt investments or until a divestment is made.