The nonprofit National Philanthropic Trust (NPT) has launched four thematic donor-advised fund portfolios which address many of the United Nations’ Sustainable Development Goals. They were created after more than a year of NPT research and due diligence, according to CEO Eileen Heisman.
By identifying and selecting CapShift, an impact investing solution provider for DAF sponsors, NPT leveraged its team to help build tailored portfolios, according to Heisman.
The four portfolios are:
- NPT Economic Mobility Portfolio: Seeks economic opportunity for all with a focus on underserved communities;
- NPT Environmental Stewardship Portfolio: Manages climate change risks and protects and conserves natural resources;
- NPT Gender Lens Portfolio: Supports the advancement of women in the workplace and beyond; and,
- NPT Broad Social Impact Portfolio: Advances solutions to global challenges, including conservation, financial inclusion and access to healthcare.
Each impact portfolio offers a single investment solution for the designated focus area. Included in the portfolios are traditional Environmental, Social and Governance (ESG) funds that both screen out companies with less favorable practices and select those with favorable practices.
They also include investments that have the explicit goal of generating positive, measurable social impact alongside competitive financial returns. Equally important, each portfolio provides sufficient liquidity to support our donors’ ongoing and substantial grantmaking.
“Since NPT initially began offering impact investing solutions in 2015, both our donors’ interest in impact investing and the market itself have grown substantially,” said Heisman. “It was the right time to research the best, next-generation investments for our donors. We hope to help them achieve their philanthropic goals with a favorable bottom line.”
According to the Global Impact Investing Network (GIIN), total assets under management in impact investments (investments made with the intention to generate social/environmental impact and financial return) have doubled year-over-year to $502 billion in 2018. Investment performance has been strong, with 90 percent of impact investment managers reporting performance in line with or exceeding both their financial and their impact expectations, according to GIIN’s 2019 annual survey.