There are always risks associated with investing in securities. Investment in NPT’s impact portfolios involves risk of loss of principal and risk of decline in market value, and NPT makes no guarantees regarding expected market performance. Just like any investment portfolio, the value of the impact portfolios will fluctuate with the broader equity and fixed income markets.
Three of the portfolios – Environmental Stewardship, Gender Lens and Economic Mobility – are designed for donors with a moderate risk tolerance. These portfolios offer the liquidity of public markets but may be subject to market volatility in the near-term. These portfolios would not be appropriate for the investment of DAF funds that a donor is considering recommending as grants from their DAF in the next 1-3 months, but rather for the portion that is not intended for near-term grantmaking.
The Broad Social Impact portfolio, which includes private investments, is targeted for donors with an aggressive risk tolerance, and thus a longer investment horizon.