Foreword: In May 2023, DAI Asset Management (“DAI-AM”), formerly MicroVest, began the process of designing and developing its new Impact Framework, the Pyramid of Intentionality (PI), which is detailed in this Framework Guide. The initiative was undertaken to evolve our systems and processes for assessing, managing, measuring, and reporting on impact across all current and future funds.
Building and operationalizing a new Impact Framework is a process that touches on nearly every aspect of an asset manager’s operations. It involves a significant change management component across Executive, Investment, and Risk teams, as well as revisions across core investment processes, data collection, monitoring, and reporting systems.
The development of the PI also coincides with a period of significant evolution in standards, best practices, and tools that seek to enhance investors’ approaches to Impact Measurement & Management (IMM). In researching, analyzing, and selecting the standards with which to align our new Framework’s components, we noticed a gap in the availability of comprehensive guides that clearly delineate the synergies and key differences across various tools, as well as few practical examples demonstrating how and when different investors should apply components of various standards across their investment processes. In publishing this Guide, we seek to contribute one mental map of how one fund manager navigated and designed its Framework in this environment. We also discuss Reflections and Takeaways from this process on page 19 and dive into ideas on how standard setters can further facilitate comprehension and more widespread adoption of IM standards.
We hope that the practical examples documenting our journey to develop the PI gives you one frame of reference for approaching your own IM Systems.
The PI was designed to be iterative in practice, and is expected to evolve year-over-year to incorporate lessons learned and insights gleaned from previous operational periods. As we move forward in our journey, we intend to update this document as new guidelines and standards emerge. We welcome your feedback, thoughts, and suggestions and look forward to hearing from many of you in due course.
Sincerely,
Leela Vosko
Director of Impact
DISCLOSURE INFORMATION
The information contained here has been provided by DAI Asset Management, LLC (“DAI-AM”) and no representation or warranty, expressed or implied is made by DAI-AM as to the accuracy or completeness of the information contained herein. Specific portfolio or pipeline companies discussed are for educational purposes only and do not represent all of the portfolio holdings and it should not be assumed that investments in the portfolio or pipeline company identified and discussed were or will be profitable. The companies profiled were selected based on their unique uses of technology in the context of social impact, with no reference to amount of profits or losses, realized or unrealized. This document is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase an interest in any DAI-AM product (the “Funds”), and nothing herein should be construed as such. Any such offer or solicitation will be made only by means of delivery of a definitive private offering memorandum which contains a description of the significant risks involved in such an investment. Prospective investors should request a copy of the relevant Memorandum and review all offering materials carefully prior to making an investment. Any investment in a DAI-AM product is speculative, involves a high degree of risk and is illiquid. An investor could lose all, a significant portion or some amount of its investment. You should not construe the contents of the enclosed materials as legal, tax, investment or other advice. To invest with DAI-AM, one must be a qualified purchaser and an accredited investor. The investments may be deemed to be highly speculative investments and are not intended as a complete investment program. They are designed only for sophisticated persons who can bear the economic risk of the loss of their entire investment in the Funds and who have a limited need for liquidity in their investment. There can be no assurance that the Funds will achieve their investment objectives.