For fund managers and institutional investors
Both impact fund managers and institutional investors can request an Impact Fund Assessment to measure the robustness of a fund’s impact proposition.
In particular the social and environmental benefits that the fund seeks to achieve. It also looks at how this intention is reflected in the investment activities and values of the Fund Manager's organization as a whole.
The assessment evaluates how the portfolio has been structured to ensure alignment with the strategy and the intention of the fund. It also looks how investees are managed to maximize positive impact.
The criteria assesses the quality, transparency and coverage of impact measurement. It also looks at the extent to which impact reporting gives a complete and contextual view of the social and environmental performance of the fund.
It looks at how the fund allocates responsibility for impact measurement and management (IMM) and how impact is safeguarded in the organisational and incentive structures.
While impact funds have a clear strategy to achieve positive impact, it is important that potential negative impacts are assessed and mitigated as well.
The criteria incorporates whether the fund manager actively contributes to the impact investing industry, such as using standardised impact taxonomies and through the creation of tools and resources.
Phenix's impact Fund Assessment provides the fund or the investor with a scorecard and benchmark versus impact industry practices and its asset class peers. The total score is based on performance on each of the 45 criteria assessed, grouped in six impact dimensions. The criteria assess impact at the fund, investee, and fund manager level, evaluating the consistency and alignment of the impact proposition throughout the chain.
Phenix's Impact Fund Assessment allows us to demonstrate our commitment to thorough impact investing practices. The Phenix team is assessing impact funds from an institutional investor perspective. Phenix has a helicopter view on the impact market and this was useful in the discussion around the criteria. Gaining external perspectives on our performance has been insightful, and the new recommendations and resources deck was genuinely helpful. Overall, it's been a great experience with a nice, collaborative approach.
The Impact Fund Assessment is much more than just a label; it is an extensive, in-depth framework that gives asset owners a thorough picture of the measures a fund has put in place to achieve a positive impact (...).
Phenix's Impact Fund Assessment helps asset owners to compare impact investment strategies and funds in a consistent way, and it sets the blueprint for asset management best practices.
The Phenix's Impact Fund Assessment is based on a real in-depth analysis of the fund`s investment strategy and not merely on the simplistic aggregation of ESG ratings of the underlying constituents. (...)
Assess your strategy versus the industry practices and of your peers, engage with your investors and improve your impact strategy.
At the end of a fund evaluation, receive advice and a scorecard with the fund's final score, together with the benchmark for adequate fund comparison.