Last year the market exhibited a brief period of instability in the spring of 2025, followed by recovery and a solid growth period for the remainder of the year. Natural Investments’ assets under management grew to $1.84 billion, an approximately 8% increase, between new clients seeking SRI investmentsand market value stability. While the US capital market maintained a healthy pace, America’s economic picture was challenged by inflationary pressures across the spectrum of consumer goods, housing, and healthcare.
Natural Investments clients responded with an increased focus on community development finance and avoidance of corporations with directly harmful impacts on society, notably those that are part of the military industrial complex. Clients understand a multistakeholder view means financially supporting local infrastructure, a strong labor market, and health ecosystems with investment goals.
Natural Investments addresses multistakeholder capitalism in several ways. On the one hand, the firm shuns activities that deplete public wealth and resources. On the other, it funds enterprises that contribute to regenerative solutions for the planet.
Approximately $947 million assets under the management of Natural Investments advisors are in the publicly traded market, spread across responsibly managed mutual funds, exchange-traded funds, and separately managed accounts that incorporate environmental, social equity, and/or corporate governance (ESG) strategies. Natural Investments chooses fund managers who apply ESG principles to identify and avoid the worst corporate agents, as well as connect with those who utilize shareholder advocacy tools to nurture change. Fund asset managers who oversee $681 million actively practice shareholder engagement via corporate dialogue—or by filing ESG resolutions at annualmeetings to inspire better corporate policies and practices. For the most harmful sectors to people and the planet, those for which clients do not want to engage in advocacy, common exclusionary screens include fossil fuels, tobacco, military/defense, and private prison industries.
The United Nations Sustainable Development Goals are a “shared blueprint for peace and prosperity for people and the planet, now and into the future.” Approximately 90% of Natural Investments’ SRI assets, both in the public and private markets, were pegged to at least one of 17 UN SDG goals. Of the $1.84 billion assets Natural Investments managed, the top five categories of those goals our investments targeted for include: decent work and economic growth; sustainable cities and communities; climate action; affordable clean energy; and responsible consumption and production.
Most funds, spread across a variety of asset classes and product types, are held in one of five investment vehicles: responsible mutual funds and ETFs; separately managed accounts that utilize ESG strategies; community investment notes; municipal bonds; and sustainable private infrastructure products.
COMMUNITY INVESTMENTS
By the end of 2025, the firm held approximately $834 million in community development assets. Part of the 11% increase over the previous year included publicly-traded municipal bonds and mortgage-backed securities that moves capital directly to community infrastructure.
In the private markets, capital was directed into social enterprises, community development financial institutions, and fund managers contributing to broader solutions in local economic development.The community infrastructure category includes affordable housing, renewable energy, environmental sustainability, and financial inclusion. The funds are dispersed in a diverse array of community development financial institutions, non-profits, cooperatives, Certified B Corps, impact venture capital, and real estate investment trusts among other community-oriented funds.
RACIAL EQUITY & JUSTICE INVESTMENTS
Natural Investments believes that discrimination based on race, or any other aspects of identity, must be named and actively challenged. In line with its commitment to justice, equity, diversity, and inclusionary (JEDI) finance, the firm seeks opportunities to invest in BIPOC-led or owned companies, as well as organizations whose primary purpose is to advance racial equity.
The firm’s private market holdings invested $433 million in either women-led organizations or organizations led by a person of color. This represents 24% of Natural Investments’ overall SRI assets under management.
Natural Investments is working towards stewarding captial more equitably. Research proves a high correlation between diverse ownership and management and profitability.
