sustainable and responsible investment (sri) pool...sustainable and responsible investing (sri) is...

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Sustainable and Responsible Investment (SRI) Pool THE DENVER FOUNDATION An option for Denver Foundation fundholders The Sustainable and Responsible (SRI) Pool extends The Denver Foundation’s mission by giving fundholders the option to invest their funds in a manner consistent with their values. This pool is separate from the Foundation’s unitized portfolio and invests in a mix of socially-responsible funds. Why are we offering this option? The Forum for Sustainable and Responsible Investment estimates that 12% of the professionally-managed assets in the United States are now invested in socially-responsible funds. The Denver Foundation’s Board of Trustees and Investment Committee believe it is important to offer this option to our donors. How does it work? Donors can choose to invest all or a portion of the balance of their funds in the SRI pool ($10,000 minimum). The Philanthropic Services Group can help with the details. Investment objectives The investments in the SRI Pool are designed to preserve and enhance the value of this pool of assets by providing long- term growth greater than inflation, and in keeping with the overall rates of returns from the financial benchmarks. The mix of asset managers is selected to maintain a prudent investment risk profile. Important considerations Sustainable and responsible investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact 1 . There is no single approach to SRI and thus ESG criteria vary from investment to investment. For information on specific ESG strategies for The Denver Foundation’s SRI funds, please contact the Philanthropic Services Group. The SRI Pool is separate from the Unitized Pool. Due to the nature of the markets, it is possible that in any particular time period the Unitized Pool will out-perform the SRI Pool, or vice versa. ________________________________________ 1. The Forum for Sustainable and Responsible Investment.

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Page 1: Sustainable and Responsible Investment (SRI) Pool...Sustainable and responsible investing (SRI) is an investment discipline that considers environmental, social and corporate governance

Sustainable and Responsible Investment (SRI) Pool

THE DENVER FOUNDATION

An option for Denver Foundation fundholders The Sustainable and Responsible (SRI) Pool extends The Denver Foundation’s mission by giving fundholders the option to invest their funds in a manner consistent with their values. This pool is separate from the Foundation’s unitized portfolio and invests in a mix of socially-responsible funds. Why are we offering this option? The Forum for Sustainable and Responsible Investment estimates that 12% of the professionally-managed assets in the United States are now invested in socially-responsible funds. The Denver Foundation’s Board of Trustees and Investment Committee believe it is important to offer this option to our donors. How does it work? Donors can choose to invest all or a portion of the balance of their funds in the SRI pool ($10,000 minimum). The Philanthropic Services Group can help with the details. Investment objectives The investments in the SRI Pool are designed to preserve and enhance the value of this pool of assets by providing long-term growth greater than inflation, and in keeping with the overall rates of returns from the financial benchmarks. The mix of asset managers is selected to maintain a prudent investment risk profile. Important considerations Sustainable and responsible investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact1. There is no single approach to SRI and thus ESG criteria vary from investment to investment. For information on specific ESG strategies for The Denver Foundation’s SRI funds, please contact the Philanthropic Services Group. The SRI Pool is separate from the Unitized Pool. Due to the nature of the markets, it is possible that in any particular time period the Unitized Pool will out-perform the SRI Pool, or vice versa. ________________________________________ 1. The Forum for Sustainable and Responsible Investment.

Page 2: Sustainable and Responsible Investment (SRI) Pool...Sustainable and responsible investing (SRI) is an investment discipline that considers environmental, social and corporate governance

55 Madison St., 8th Floor, Denver, CO 80206 303.300.1790 www.denverfoundation.org

DFA US Sustainability Core (DFSIX): The investment seeks long-term capital appreciation. The Fund purchases a broad and diverse

group of securies of U.S. companies with a greater emphasis on small capitalization and value companies as compared to their

represention in the U.S.

Paranassus Fund (PARNX): This investment seeks capital appreciation. The fund invests in undervalued stocks. It follows a contrarian

strategy of seeking to invest in stocks that are currently out of favor with the financial community and are therefore deeply undervalued.

Ariel Fund (ARGFX): The investment seeks long-term capital appreciation. The fund invests primarily in equity securities of U.S. companies and the fund generally will have a weighted average market capitalization between $1 billion and $7.5 billion. It seeks to invest in quality companies in the financial services and consumer discretionary sectors. PAX World Small Cap (PXSIX): The investment seeks long-term growth of capital. The fund follows a sustainable investing approach, combining rigorous financial analysis with equally rigorous environmental, social, and governance analysis in order to identify investments. It invests at least 80% of its net assets in equity securities of companies that, when purchased, have capitalizations within the range of the Russell 2000 Index as measured by market capitalization.

Calvert International Opportunities (CIOAX): The investment seeks long-term capital appreciation. The fund invests primarily in common and preferred stocks of non-U.S. small-cap to mid-cap companies, which it defines as companies whose market capitalization falls within the range of the MSCI and the EAFE Small-Mid Index. DFA International Sustainability Core (DFSPX): The investment seeks long-term capital appreciation. The fund intends to purchase securities of companies associated with developed market countries that the Advisor has designated as approved markets. As a nonfundamental policy, under normal circumstances, the fund will invest at least 80% of its net assets in equity securities. DFA Emerging Markets Social Core (DFESX): The investment seeks long-term capital appreciation. The fund will invest at least 80% of its net assets in emerging markets equity securities that are defined in the prospectus as approved markets securities. PIMCO Total Return III (PTSAX): The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund normally invests at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, future contracts, or swap agreements. Access Capital Community Investment Fund: Socially responsible investment vehicle that helps build stronger communities through its suport of low to moderate income home buyers, affordable rental housing units, small business loans, economic development projects. The Fund seeks a competitive return consisting of current income and capital appreciation through investing in primarily high quality debt instruments that serve low to moderate income individuals and communities.

Farallon Fossil Fuel Filtered Fund: Fossil fuel filtered version of the absolute return hedge fund focusing on global invest-ments in merger arbitrage, credit, and value equities. The filter's aim is to prevent direct exposure to follil fuel funds. The Fund focuses on considerations such as revenue attributable to hydrocarbons and assets.

Large Cap

Small and Mild Cap

International Developed

Emerging Markets

Fixed Income

Absolute Return