Performance
Overview
As an impact investor, we measure and manage impact performance as well as financial performance. The goal is high impact with risk-adjusted market-rate returns.
Impact-Finance Performance Overview: Both RGEIF and RTIF had high impact performance scores for 2023 and financial returns that were in line with expectations.
RGEIF Performance 2023 (Series F)
RTIF Performance 2023 (Series F)
Tables and charts in this report represent a snapshot of fund investments as of December 31, 2023; investments may change over time. This document is for informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of securities. The information contained herein is in summary form for convenience of presentation. Read more important information about this report here.
Net Returns, Series F
Both RGEIF and RTIF ended the year with positive returns.
The information contained herein is in summary form for convenience of presentation. Read more important information about this report here.
Impact Performance
Our deep analysis of impact during due diligence means we only invest in companies and funds that we expect will deliver deep positive outcomes to people and the planet. Before investing, we develop a robust impact thesis for each holding. After investment, one way we test that thesis and note progress is by measuring impact performance.
Measurement takes the form of finding impact metrics reported on by the company or product issuer that are deeply relevant and material to a holding’s impact thesis and tracking those metric results year over year.
Through our Rally Inclusive Impact Methodology, we are able to aggregate metrics into key performance indicators (KPIs) that support target outcomes and impacts in RGEIF and RTIF. For 2023 we are reporting on 10 KPIs which overall aggregate 47 metrics. Recognizing that impact is realized by the end-users of our underlying holdings’ products and services, we report on total associated impact without attempting to estimate the proportionate share of impact directly attributable to RGEIF’s or RTIF’s invested capital.
In 2023, Rally Funds delivered substantial progress across the four themes.
In Addressing Climate Change, we observed robust progress in reducing carbon emissions and expanding renewable energy capacity in our portfolio. The total annual greenhouse gas emissions avoided reached 124 million tonnes of CO2e, driven by the aggressive deployment of low-carbon technologies and the implementation of advanced energy efficiency measures. Furthermore, renewable energy capacity additions hit 4,700 MW, fueled by significant expansions into solar and wind projects.
Within Advancing Social Equity, our impact was driven by focused investments in recruitment initiatives and economic advancement opportunities for women and other equity-deserving groups. The number of people from equity-deserving groups with improved access to employment and entrepreneurship totalled almost nine million in 2023. In terms of healthcare outcomes, we saw nearly 624,000 people from equity-deserving groups experience improved healthcare outcomes, further advancing our goals for social equity.
Preserving and Restoring Natural Capital presented both opportunities and challenges in 2023. Our underlying holdings preserved nearly five billion cubic metres of water, driven largely by an acquisition that enhanced our portfolio’s water management capabilities. Waste prevention efforts totalled 854 million pounds waste reduced compared to 2022.
Sustainably Meeting Basic Needs was an area of strong performance, highlighted by significant improvements in healthcare access and water infrastructure. In 2023, there were 21 million patient interactions that improved healthcare access. This growth was primarily driven by the expansion of interpreter services and enhanced technology, enabling broader access to critical healthcare services. Additionally, almost 18 million people had access to clean water and sanitation services
RTIF Associated Impact - KPIs
Addressing Climate Change
The economy is resilient and low carbon, thereby addressing climate change.
tCO2e avoided
MW of renewable energy capacity added
Advancing Social Equity
Due to greater social equity, individuals and the society are able to fully contribute to and benefit from economic and social progress.
people from equity-deserving groups with improved healthcare outcome
people from equity-deserving groups with improved access to employment and entrepreneurship
Preserving and Restoring Natural Capital
With natural capital preserved, the earth’s regenerative capacity is restored and maintained.
pounds of waste prevented, reused, re-manufactured and recycled
m3 of water conserved
Sustainably Meeting Basic Needs
Everyone’s fundamental requirements, like food, water, shelter, health care and education, are met.
people with access to clean water and sanitation services
new or preserved affordable housing units
patient interactions that improve healthcare access
These results are for RTIF. As RGEIF contans the same public equities, the results are similar. They can be found in Impact Performance Statements, a companion document to this annual report, which provides the full impact performance statements. Please see it for important notes, explanation, more results and a year-over-year comparison.
176 Metrics in 2023
| Theme | RTIF | RGEIF |
|---|---|---|
| Addressing Climate Change | 42 | 20 |
| Advancing Social Equity | 69 | 12 |
| Preserving and Restoring Natural Capital | 31 | 16 |
| Sustainably Meeting Basic Needs | 34 | 10 |
| Total | 176 | 58 |
Impact Performance Scores
In addition to measuring a holding’s impact performance, we take a view on that performance and ultimately score it.
The impact performance score is a post-investment analysis of impact returns and impact risk mitigation, conceptually similar to post-investment financial performance analysis. We analyze the risk of impact not occurring as expected and how that impact risk is being mitigated; and we track and analyze the “returns” that come in – that is, results of impact metrics. For example, impact return scores can rise with good reported impact progress and impact risk mitigation scores can rise with sufficient and consistent disclosure of evidence of impact.
2023 impact performance scores show that:
- Holdings in Rally Funds had strong overall impact performance scores. 54% of the RGEIF portfolio scored 70 or above, 73% of the RTIF portfolio scored 70 or above
- Strong impact performance can be found in the public markets. While impact investors often focus on private markets, through intentional, deep research one can find positively impactful public equities
Individual Scores
2023 Impact Performance Scores
There are a range of scores for the holdings, which is not surprising. Rally Funds have a dual mandate to invest in holdings that deliver positive benefit and market-rate returns. The many considerations that go into portfolio construction – like regional spread, non-correlation, industry spread and asset allocation – mean there will likely always be a range of impact performance scores.