The investment aggregation score, which comprises 90% of the overall fund rating, is determined by a weighted average of the scores of the companies in the fund's portfolio. This is calculated by multiplying each portfolio company rating by the % that the company represents in terms of committed assets under management).

Companies GIIRS Impact Rating Deployed Capital Weighted Average Scoring
Company A 166 $3.0 12.45
Company B 128.5 7.0 22.49
Company C 120.7 8.0 24.14
Company D 84.8 4.0 8.48
Company E 97.7 4.0 9.77
Company F 124.1 8.0 24.82
Company G 97.1 3.0 7.28
Company H 121.2 3.0 9.09
$40.0 118.52

For all subsequent years, the investment aggregation methodology includes additional characteristics for each company in the fund portfolio. These characteristics include current valuation of each portfolio investment, capacity building, and mission-aligned exit, as detailed below:(13)

Adjustments Description Adjustment Method Adjustment Account Applicable Security Types
Current Valuation The financial performance of an investment is indicative of the scale of a company's operations. Depending on an investment's positive or negative financial performance (reflected in its updated valuation by the fund), its weighting in the overall portfolio can be adjusted +/- 50%. Change in the weighting of the company's score within the aggregated portfolio +/- 50% Equity, Quasi-Equity, Long-term Debt (in case of writeoff); TBD for Fund of Funds and Short-term Debt
Capacity Building Funds that facilitate an improvement in a company's social or environmental performance through capacity building during the lifetime of the investment receive a rating adjustment. This bonus recognizes portfolio companies whose scores improve by at least one star. Increase to company score +10%, if company's overall score improves by at least one star Equity, Quasi-Equity and Long-term Debt; TBD for Fund of Funds and Short-term Debt
Mission Aligned Exit Funds that ensure that a company's mission can be maintained post-exit are recognized through a bonus. Increase to company score +10% Equity and Quasi-Equity

Valuations can be updated annually via the fund portal, or held constant for debt investments or until a divestment is made.

Closed End Open End
Include company's final GIIRS Impact Rating in overall Fund Rating, post-divestment Yes No
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