Rally Assets

Rally Funds Annual Report

Land Acknowledgement

A note on our relationship with this land and those who have been here much longer than we have

We consider ‘the land Rally Assets is on’ as the whole of this country. Turtle Island. Our office is in Toronto; staff live across the country; currently, around Toronto, Montreal and Vancouver. The impact fund managers and product issuers we work with are based throughout the country, as are our clients.

We know this is not our traditional land. Most of us came to Canada very recently, and those whose families came generations ago know that their settler ancestors arrived in a country that had been inhabited for thousands of years by people collectively called Indigenous peoples.

Our staff all have deep personal connections to the land of their heritage and understand how powerfully that connection shapes who they are. Reflecting on that helps us appreciate the horror of the action of settlers and settler governments to sever Indigenous peoples from their lands, their livelihoods, their cultures and more.

Acknowledging the truth of Canada’s difficult Indigenous-settler past, we work today to build Indigenous-settler relationships that heal, nurture and strengthen so that the future is better for us all.

We hope you enjoy reading this first annual impact report for our two impact funds, Rally Global Equities Impact Fund (RGEIF) and Rally Total Impact Fund (RTIF) – the ‘Rally Funds’. This report covers the year ended December 31, 2023. An annual report is not a regulated requirement for the funds but we created this report for fund unitholders, and have made it available on our website, due to two key events in 2023:

- 2023 marked the third full year of the funds, as they both launched in June 2020. After three years of performance, we believe the funds are sufficiently mature to warrant a first public report
- In 2023, we extensively reviewed and revised how we measure and report on impact with the Rally Inclusive Impact Methodology (RIIM). We wanted to showcase RIIM using RGEIF and RTIF

Rally Funds were created in response to investor demand and to gaps in the market. While the impact investing sector in Canada has matured and become more complex since fund launch, it is still very much the case that the Rally Funds have uncommon characteristics such as a dual mandate of impact and returns, a global focus, concentrated approach, active strategy in support of all 17 United Nations’ Sustainable Development Goals and, in the case of RTIF, is a multi-asset-class impact fund.

As this report demonstrates, Rally Funds are making significant and meaningful contributions to positive social and environmental outcomes.

We welcome your feedback on this report.

Upkar Arora

Chief Executive Officer
Rally Assets

Kelly Gauthier

President
Rally Assets

Opening Letter

We hope you enjoy reading this first annual impact report for Rally Global Equities Impact Fund (RGEIF) and Rally Total Impact Fund (RTIF), the ‘Rally Funds’. This report covers the year ended December 31, 2023. An annual report is not a regulated requirement for the funds but we created this report for fund unitholders, and have made it available on our website, due to two key events in 2023:

- 2023 marked the third full year of the funds, as they both launched in June 2020. After three years of performance, we believe the funds are sufficiently mature to warrant a first public report
- In 2023, we extensively reviewed and revised how we measure and report on impact with the Rally Inclusive Impact Methodology (RIIM). We wanted to showcase RIIM using these funds

Rally funds were created in response to investor demand and to gaps in the market. While the impact investing sector in Canada has matured and become more complex since fund launch, it is still very much the case that the Rally Funds have uncommon characteristics such as a dual mandate of impact and returns, a global focus, concentrated approach, active strategy in support of all 17 United Nations’ Sustainable Development Goals and, in the case of RTIF, is a multi-asset-class impact fund.

We welcome your feedback on this report.

Rally Assets in 2023

2023 was a significant year for Rally Assets as a firm. We are pleased with the year’s developments and grateful for the ongoing support of board members, advisors, staff and clients, as well as sector allies.

Selected to Manage the Social Finance Fund

In May 2023, the Government of Canada announced it had selected Realize Capital Partners as one of three fund-of-funds managers for its Social Finance Fund, an innovative large investment program aiming to advance social equity and strengthen the social finance market. Realize Capital Partners is a joint venture between us and Relay Ventures.

Assets under Management Tripled

Assets under management (AUM) increased from $83 million in 2022 to $254 million in 2023.

AUM is total capital managed, committed and allocated for our client portfolios.

Service Offering became More Focused

At the end of 2023, we closed our business offering of stand-alone advisory services (early investor education and strategy) in order to focus on our growing group of asset management clients, providing them with a comprehensive service of portfolio design, build and management.

Prepared for Future Growth

We expanded our team by 50% to meet growing business needs and we implemented new portfolio and research management software to scale our services.

1. Opening Letter

6. Systems

2. Portfolio Overview

7. SDGs

3. Performance

8. Operational Practices

4. Themes

9. Methodology

5. Thematic Spotlights

10. Disclaimer

Only accredited investors are eligible to invest in Rally Funds and this webpage is meant only for accredited investors.

Rally Assets

Rally Funds Annual Report

Land Acknowledgement