How can investors build their portfolio-level impact goals into their investment process? How can integrating impact alongside financial considerations into each stage of the investment process help investors optimize and improve performance over time?
This module explores impact-financial integration at the investment level. Using the fictitious ‘Frontiers Fund’, we will explore how to integrate portfolio-level impact goals into pipeline screening, due diligence, approval, and performance review.
- Integrated approaches to pipeline screening, due diligence, approval, and performance review can help investors identify adjustments to their investment process that systematically improve impact and/or financial performance over time
- Integrated investment processes can help investors optimize performance toward their particular set of impact and financial goals, whether they are seeking to maximize financial performance while maintaining a given level of impact, or seeking to maximize impact for a given level of financial return
Integrating Portfolio Goals into the Investment Process
The purpose of impact-financial integration is to incorporate impact management into each step of the investment process. What this looks like in practice will depend on an investor’s goals and context.