PRF’s Investment Policy Statement (IPS), approved in 2023, launched our journey towards a Total Impact Approach – the consideration of all ways in which a charitable foundation can create positive impact, as opposed to targeting impact through a small percentage of total assets for grant making.
The IPS established core commitments to investment sourcing, selection, management and reporting. 2024’s Responsible Investment Report was our first. The Report provided a transparent view of the way in which our endowment - focusing exclusively on the Koda Capital investment mandate - is invested.
This report, to June 2025, goes beyond 2024’s publication thanks to the inclusion of data from PRF’s Endowment Impact Fund – an allocation to impact funds seeking risk-adjusted financial returns alongside demonstrable positive impact. At 30 June 2025, the Endowment Impact Fund accounted for 16.4% of PRF’s Investment Portfolio (excluding our holdings in Ramsay Health Care).
We are pleased with our progress towards ‘Total Impact’, and 2025 highlights include.
- 45.5% of PRF’s Investment Portfolio (excluding cash and the Impact First Fund) is allocated to impact investments or those investments in which Environmental, Social and Governance (ESG) considerations are integrated alongside financial metrics.
- 19.3% of the Investment Portfolio’s assets directly contribute to achieving UN Sustainable Development Goals, demonstrating our commitment to aligning capital with global priorities.
- The Portfolio has no direct exposure to negatively screened industries, and the indirect exposure has been reduced from 1.66% to just 0.80% of the Koda Investment Portfolio.
- The Individually Managed Account within the Koda Investment Portfolio achieved a 55% reduction in CO₂ emissions compared to 2024 levels, reflecting tangible progress towards a lower carbon future.
Yet this progress is tempered by challenges. While the headlines paint a positive picture, indirect exposure in some negative screened sectors has risen and we identified six investments, held within the Koda Investment Portfolio, that do not comply with our negative screens. These variances reflect the challenges in investing in assets that don’t apply restrictions that mirror PRF’s negative screens.
The six assets that were identified will be assigned a Transition Plan. As a direct result of this Report, two of these holdings will be divested in ways which do not compromise financial returns. The remaining four assets will receive close monitoring to determine the most appropriate course of action.
Like many others, we recognise that embedding our Total Impact Approach is an ongoing journey. We have the drive to continuously learn, evolve and develop our practice. We commit, and are excited to, share our insights publicly, and work with others, as the market evolves.
