With over 20 years of experience that spans investment banking, venture capital, and impact investing, Dimple Sahni is a true leader in blending financial returns with purpose-driven outcomes. As the Managing Director of Multi-Asset Impact Investing at Anthos Fund & Asset Management, Dimple has played a pivotal role in crafting strategies that deliver both solid returns and tangible social and environmental impact. In this in-depth interview, she shares her approach to managing a diversified, multi-asset portfolio while staying true to the core principles of impact investing. We also explore the challenges and opportunities in this evolving landscape, the crucial role of family offices, and how innovation is reshaping the future of impact investing.

Introduction to Anthos Fund & Asset Management: As Managing Director of Multi-Asset Impact Investing, could you provide an overview of Anthos Fund & Asset Management and its approach to impact investing across various asset classes?

Anthos Fund & Asset Management is a century-old institution with deep roots in values-driven asset management, originally as part of the Brenninkmeijer Family Office but more recently as a separate legal entity. Our evolution from an impact-first investor focusing solely on private asset classes in 2012 to a comprehensive, multi-asset investor in 2018 reflects our belief that every asset class has the potential to generate both financial returns and meaningful impact. We are committed to constructing an "all-weather portfolio" that leverages the unique strengths of each asset class, integrating impact with a disciplined approach to risk, return, and diversification.

How do you define impact investing, and what distinguishes it from traditional investing strategies?

For us, impact investing always begins with a robust theory of change that clearly articulates the problem we aim to address, the targeted geography and communities, the scale of impact, and the investor's role in driving this change. We invest with intentionality, focusing on solutions that contribute to systemic change, far beyond mere risk mitigation or best-in-class ESG practices. Our commitment is to Category C investments—those that actively contribute to solutions—rather than simply avoiding harm or benefiting stakeholders. This strategic focus sets us apart from traditional investing approaches, embedding impact at the core of our investment thesis.

What are some key strategies you employ to ensure effective impact investing, particularly in a multi-asset context?

Our impact investing strategies are deeply diversified across asset classes and designed to maximize both financial and social returns. This includes investing in renewable infrastructure projects in Africa through our real assets sleeve, supporting sustainable sovereign bonds in emerging markets via our fixed-income strategy, funding innovative education technology companies at various growth stages in our venture portfolio, and backing global decarbonization initiatives in our public equities strategy. Each of these strategies is carefully selected to contribute to our overall impact goals while ensuring a resilient, multi-asset portfolio.

What are the biggest challenges and opportunities you see in the impact investing landscape today?

One of the significant challenges in the current impact investing landscape is the lack of Distributed to Paid-In Capital (DPI) in venture capital funds, which has often fallen short of expectations. However, this challenge also presents a unique opportunity for innovative approaches to impact investing, particularly in identifying and scaling solutions that can deliver both strong financial returns and measurable impact.

Could you elaborate on your approach to impact portfolio construction and asset allocation? How do you balance financial returns with social and environmental impact?

Our approach to impact portfolio construction is anchored in a strategic asset allocation (SAA) framework that guides our investment decisions across various themes, geographies, and asset classes. We carefully balance financial returns with social and environmental impact by adhering to investment guidelines that reflect our commitment to impact. Regardless of the asset class, we believe in the power of active influence and engagement to drive meaningful change, ensuring that our investments contribute positively to the broader society and environment. Anthos’ impact team works together with other asset-class specialists on impact deals and networks. We have a long experience with SAA investing for families and we apply this successful approach to how we invest for impact.

How can family offices play a more significant role in impact investing, and what advice would you give to those looking to incorporate impact investments into their portfolios?

Family offices have a unique opportunity to lead the charge in impact investing, leveraging their capital, long-term perspective, and values-driven ethos to catalyse meaningful change. For those looking to integrate impact investments into their portfolios, I would advise starting with a clear articulation of their mission and values, and then aligning their investment strategy to reflect these priorities. This approach ensures that impact investing is not just an add-on, but a core component of their overall investment philosophy. For more detailed guidance, I recommend reviewing our publication on the role of family offices in impact investing.

How do you measure and report on the impact of your investments? What frameworks or metrics do you find most useful?

In 2016, we pioneered the 'More than Measurement' framework in collaboration with Bridges Ventures, which has since become a cornerstone of the Impact Management Project. This framework allows us to partner with fund managers to identify key performance indicators (KPIs) and track them rigorously over the life of our investments. We assess both outputs and outcomes, culminating in comprehensive annual impact reports. As we continue to refine our approach, we're working towards more portfolio-level KPIs and utilizing the SFDR classification system to ensure our funds, including our own SFDR Article 9 fund, meet the highest standards of impact. Note that we also have had a verification process conducted by BlueMark to ensure we are aligned with best practices in our peer group.

Access the White Paper here:

Whitepaper The Power of Impact Investing

Looking ahead, what trends do you anticipate will shape the future of impact investing, and how is Anthos Fund & Asset Management positioning itself to stay ahead of these trends?

The future of impact investing will be shaped by the ongoing debate over the ability to achieve impact in public markets and the integration of emerging technologies like deep tech and AI. While scepticism around public market impact persists, we believe these markets are crucial for scaling and democratising impact investing. Additionally, we see a transformative potential in deep tech and AI, not just in revolutionizing impact investing strategies but also in fostering innovative business models that will drive the new economy. Anthos is positioning itself at the forefront of these trends, ensuring we are well-equipped to navigate and capitalize on the evolving landscape. At our internal offsite, all of the Portfolio Managers will focus on this key trend within our firm and our portfolios.