By Jennifer Kilpatrick, Chief Financial Officer, The Community Foundation
In keeping with The Community Foundation’s commitment to maintain a balanced investment strategy aligned with our community’s values, our Investment Committee recently completed a formal, comprehensive process to select our partner for socially responsible investing (SRI). I am pleased to announce that we are renewing our relationship with First Affirmative Financial Network.
Considered an industry leader and pioneer, First Affirmative is a local company. One “plus” they offer is that they actively engage with the companies they invest in by voting shareholder proxies and filing shareholder resolutions (see “Resources,” below), aiming to influence a company’s long-term impact and increase long-term value. In other words, First Affirmative holds companies accountable, encouraging them to be both profitable and responsible corporate citizens.
Currently, SRI makes up about 12% of our assets. We established this pool nine years ago, originally thinking we would put a proverbial toe in the water to find out whether it was true that SRI portfolios always underperformed their traditional investment strategies. The foundation chose to invest under what is called a “positive screen,” which means that rather than excluding perceived irresponsible companies, we instead seek investments in businesses that treat people fairly, practice good governance and promote a clean environment. We are pleased to report that this portfolio has never felt like a choice; it has consistently performed up to our benchmark (see table).
The Community Foundation’s SRI Performance
Compared against investment benchmark
SRI is now a competitively performing component of many individuals’ portfolios. According to First Affirmative Financial Network, 1 out of 6 dollars is now directed toward impact investing.
During our RFP process, we were amazed by the commitment and sophistication of several local firms engaged in SRI. It is heartening to see so much local talent engaged in finding mission-driven ways to invest money without sacrificing returns. Upon rigorous due diligence, including a Request for Qualifications (RFQ) and a Request for Proposals (RFP), First Affirmative emerged as our ongoing partner to manage our socially responsible investments.
By aligning investments with values, our partnership with First Affirmative serves community-minded donors who want to make informed decisions about smart, meaningful philanthropy. Over 25 years, we’ve earned an impressive track record as a reliable steward of financial investments that make a difference in Boulder County and that also meet individual investment goals and charitable aspirations. By designating all or part of your Donor-Advised Fund to an SRI investment strategy, we can design an investment portfolio tailored to your personal values and social priorities.
For more information about The Community Foundation’s investment practices and performance, get in touch with Jennifer at 303.442.0436, or Jennifer@commfound.org; and to explore the full range of investment options we offer donors, contact Margaret Katz, Director of Philanthropic Services, at margaret@commfound.org.
Related event and resources:
- First Affirmative’s 27th annual SRI Conference on Sustainable, Responsible, Impact Investing, November 9-11, 2016 at the Hyatt Regency, Denver
- First Affirmative Advocacy and Engagement 2016: Letters, Statements, Petitions
- First Affirmative Shareholder Resolution Update
