Overview
As systems thinkers, we take a thematic approach to investing with Rally Funds. Generally speaking, a thematic approach is forward looking, examining long-term trends and systems and how they might change over time. We aim to invest in companies and funds that are likely to benefit from those trends. We do not have goals around thematic percentages for Rally Funds. Our investment process begins with and is grounded in a holding’s impact thesis not a theme; that said, the thematic approach, as a strong organizational and reporting tool, helps us see a broad picture of portfolio impact and identify possible gaps.
Rally Funds have four themes, with associated target outcomes and a target impact for each themes. The four themes are deeply interconnected and reinforcing.
Addressing Climate Change
In this theme, we seek investments with a direct and strong influence on lowering carbon emissions at different scales.
Target Impact:
The economy is resilient and low carbon, thereby addressing climate change.
Target Outcomes:
- Higher energy efficiency in production
- Reduced emissions with green energy infrastructure transformation
- Sustainable manufacturing and agriculture
- Expanded financial supports and climate adaptation mechanisms
- Sustainable production and consumption models transformed by digital infrastructure
Advancing Social Equity
In this theme we focus on investments that dismantle the barriers hindering full and equitable participation in society’s economic, social and political spheres.
Target Impact:
Due to greater social equity, people are able to fully contribute to and benefit from economic and social progress.
Target Outcomes:
- Expanded education and employment opportunities for underserved people
- Reduced health disparities
- New pathways for financial stability and independence
- Enhanced access to financial capital
- Strengthened preservation and celebration of diverse cultural identities, alongside enhanced community-led initiatives and self-advocacy
- Affordable access to digital society
Preserving and Restoring Natural Capital
In this theme we seek investments that help to lower demand on natural capital. We seek various positive and transformative shifts across different industries and scales.
Target Impact:
With natural capital preserved, the earth’s regenerative capacity is maintained.
Target Outcomes:
- Higher efficiency and resilience to lower end demand on natural capital
- Sustainable alternatives to shift demand to less resource intensive production and consumption models
- Enhanced waste prevention, collection and recycling practices
Sustainably Meeting Basic Needs
In this theme we focus on investments that create a foundation upon which people can build a stable life.
Target Impact:
Everyone’s fundamental requirements, like food, water, shelter, health care and education, are met.
Target Outcomes:
- Enhanced quality, reach and affordability of health care, education, housing and transportation services and facilities
- Reliable access to clean water and nutritious food
- Wider income-earning opportunities through education, training and employment
- Improved market access for small producers and local goods
- Increased development of affordable housing and inclusive urban planning
- Increased access to digital connection
2023 Thematic Allocation
Both Rally Funds had strong allocation to each theme; the social equity focus of some private investments in RTIF resulted in its higher allocation as compared to RGEIF. The addition of public debt and private investments to public equities meant there are some impact sub-areas in RTIF that aren’t in RGEIF.
| THEME | RGEIF | RTIF |
|---|---|---|
| Addressing Climate Change | 30% | 30% |
| Advancing Social Equity | 21% | 30% |
| Preserving and Restoring Natural Capital | 23% | 20% |
| Sustainably Meeting Basic Needs | 25% | 20% |
RGEIF Allocation to Themes
RTIF Allocation to Themes
RGEIF Themes and Sub-Areas
Addressing Climate Change 30.4%
| Climate Change Mitigation | 19.4% |
| Clean Energy | 8.1% |
| Energy Efficiency | 2.6% |
| Sustainable Agriculture | 0.3% |
Sustainably Meeting Basic Needs 25.1%
| Quality Healthcare | 15.4% |
| Digital Infrastructure | 7.2% |
| Water, Sanitation and Hygiene | 2.5% |
| Quality Jobs | 0.2% |
Preserving and Restoring Natural Capital 23.0%
| Waste Management | 13.3% |
| Sustainable Water Management | 7.5% |
| Resilient Infrastructure | 2.2% |
RTIF Themes and Sub-Areas
Addressing Climate Change 30.1%
| Climate Change Mitigation | 21.5% |
| Clean Energy | 6.1% |
| Energy Efficiency | 1.5% |
| Digital Infrastructure | 0.9% |
| Sustainable Agriculture | 0.2% |
Preserving and Restoring Natural Capital 19.8%
| Waste Management | 10.9% |
| Sustainable Water Management | 4.1% |
| Sustainable Agriculture | 2.3% |
| Biodiversity and Ecosystem Conservation | 1.2% |
| Resilient Infrastructure | 1.2% |
| Water, Sanitation and Hygiene | 0.2% |
Sustainably Meeting Basic Needs 20.4%
| Quality Healthcare | 8.6% |
| Affordable Housing | 4.8% |
| Digital Infrastructure | 4.0% |
| Water, Sanitation and Hygiene | 1.8% |
| Financial Inclusion | 0.7% |
| Energy Access | 0.3% |
| Quality Jobs | 0.2% |
Percentages are based on allocation of investments, not including cash. Tables represent a snapshot of Rally Funds investments as of December 31, 2023; investments may change over time. Read more important information about this report here.
Outcomes and Impacts, 2023
In 2023, RGEIF and RTIF contributed to many significant outcomes in support of the target impact for each theme.
We have 20 target outcomes within our four themes, supporting the four target impacts. RGEIF holdings contributed to 15 of them in 2023 while RTIF contributed to 18 of them.
RGEIF Outcomes – Impact
RTIF Outcomes – Impact
Percentages are based on allocation of investments, not including cash. Charts represent a snapshot of Rally Funds investments as of December 31, 2023; investments may change over time. Read more important information about this report here.
Thematic Spotlights
Understand the themes a bit more and learn about our investments by reading the thematic spotlights.