The Impact Ratio

As with the i3 Impact Score, the i3 Portfolio Score helps investors understand and articulate impact at the portfolio level and to reveal to an investor how different decisions can push or pull this overall impact. Used in tandem with The CAPROCK Group's Lifetime Discounted Cash Flow (DCF) model, the i3 Portfolio Score helps to answer one burning question: "How much impact can I have with the assets I currently own, within the constraints of the financial objectives that allow my life to function as I wish?" This double-faced question essentially adds a third dimension to portfolio construction: risk, return…and impact.

More importantly, while it may be relatively easy to build a three-dimensional return model for one investment, it becomes fiendishly complex to do so for an entire portfolio. The toolset developed by The CAPROCK Group helps to ease that complexity.

Since The CAPROCK Group believes that their job is to build portfolios by design rather than by default, they consequently believe that the impact of a portfolio must be driven by the design function of the DCF. In doing so, they help investors answer not only the all-important "Do I have enough?" question, but also the soul-defining question: "Can I do more good with what I have?"



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About i3:

The great challenges we face –energy, food, medicine, the environment, etc. – will stretch the imagination and determination of entrepreneurs, government and society. We believe that the intersection of money and mission, of the invisible hand and the "invisible heart", will provide the answers we need. Impact Investing: redefining the meaning of capitalism.
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