The Fund Impact Rating

Examples of use

A fund manager might say that it is currently raising capital for its Green Community Impact Fund II, LP which has a Target GIIRS 4-Star Fund Impact Rating

A fund manager might provide investor reporting showing that its recent Developing World Impact Fund I, LP achieved a GIIRS 3-Star Fund Impact Rating, including transparent pre-investment and annual Company Impact Ratings for each of the companies in its portfolio

Sample GIIRS Fund Rating

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Fund Benefits

What ratings products are available for fund managers?

GIIRS Fund Rating is comprised of an aggregate numerical score and rating for a fund based on an aggregation of the GIIRS Company Impact Ratings for its portfolio investments. In order to receive an Initial Fund Rating, the underlying companies in the portfolio must obtain a Company Impact Rating.

If a fund is still in formation it can obtain an Initial Fund Rating to assist in the fundraising process. In order for a fund in formation to receive a an initial rating a fund must:

  • take an assessment with questions regarding the fund's policies and practices; and
  • commit to annual rating throughout the life of its fund

Each year a fund receives an updated rating with current information about the investments in its portfolio. At the close of a fund, funds receive a track record rating, a report summarizing its impact performance over the life of the fund. The fund track record rating is designed to be used by funds when raising a follow-on fund.

What are the benefits of getting GIIRS rated?

  • Fundraising: GIIRS-rated funds can use their ratings to raise capital from mission-aligned investors. For a fund in formation, the fund manager assessment and commitment to be GIIRS rated demonstrates impact goals and accountability to potential investors. For a fund with current or previous investments, a GIIRS fund rating establishes impact a track record for follow-on funds raised.
  • Performance Tracking & Industry Benchmarking: GIIRS provides funds a way to measure overall fund and portfolio company-level socialand environmental performance over time. By undergoing an independent assessment of strengths and weaknesses, fund managers will have new information to manage risk, set goals and improve future performance. Also, a GIIRSrated fund can compare its performance against industry counterparts through GIIRS Analytics, the subscription data service and analytical tool analogous to Capital IQ for impact.
  • Reporting: GIIRS provides fund managers an efficient process for impact data collection from investees. Impact ratings and metrics are easily aggregated and reported to fund investors through distribution of an annual detailed GIIRS Rating Report.
  • Leadership: By committing to being GIIRS rated, a fund joins a growing list of prominent funds which are helping shape industry standards for impact investing. Early GIIRS rated funds qualify for lifetime Pioneer Fund status.
  • Industry Standards Adoption: Through GIIRS's partnership and use of IRIS compliant metrics and definitions, any GIIRS-rated fund automatically adopts the Impact Reporting and Investment Standards (IRIS) and supports industry-wide initiatives for comparable definitions and data.
  • New Product Offerings: Investors are building new products with GIIRS ratings, like GIIRS-rated Fund of Funds, in which GIIRS-rated funds will more easily be able to participate. Also, launching in Q1 2012, GIIRS Indices will use currently rated company and fund data to establish industry benchmarks.

  • Enhanced Visibility: All GIIRS fund ratings are visible to GIIRS Analytics subscribers, including large institutional investors, foundations, financial institutions, multi-lateral development institutions, high-net-worth individuals and investment advisors. By the end of 2011, these investors will collectively represent over $1.5 billion in impact assets under management.

What funds have received GIIRS ratings?

Leading venture capital and private equity firms from the developed and emerging markets are beta testing version 3.0 of the B Impact Ratings System and will receive GIIRS Fund Ratings during Q3 2011. Learn more about the Pioneer GIIRS funds.

 

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