Socially Responsible Investment Fund

Transcription

1 Socially Responsible Investment Fund EPISCOPAL DIOCESE OF OREGON DECEMBER 31, 2017

2 Socially Responsible Investment Fund (SRIF) AT A GLANCE What is the SRIF? A long-term, diversified combination of investments in major asset classes, with over 90% of the investment portfolio dedicated to socially responsible investing Inv. horizon: long-term Assets: $2.4 million Focus: socially responsible & gospel value priorities identified at 2017 Convention Inception date: 9/2016 Governed by: Diocesan Board of Trustees & Diocesan Inv. Committee SUPERVISED WITH ASSISTANCE FROM: Investment Advisory Services Full service investment consulting firm, free from all conflicts of interest Provides strategic investment advice and serves as a fiduciary to the SRIF Custody Services Responsible for safekeeping assets Provides dedicated charitable services assistance Point of contact for account services 2

3 Investment Structure Target Asset Allocation The Investment Committee employs a best-in-class specialty manager approach according to the current target asset allocation Cash 0.5% Alts 8% Real Est 3% Bonds 20% Fixed Income 20% U.S. Equity 46.5% Marketable Alts 5% Global Equity 12.5% Non-U.S. Equity 12.5% Stocks 71.5% 3

4 SRI Objectives Environmental Climate & clean tech Pollution & toxics Other environment Social Community development Diversity & equal opportunity Human rights Sudan Labor relations Governance Board issues Executive/exploitative pay Restrictions Alcohol Animal cruelty Defense & weapons Gambling Tobacco Special restrictions gospel values Stewardship Justice Hope Abundance Poverty alleviation Homelessness Community Solidarity Dignity & respect Diversity Justice Fairness Polarization of wealth Justice Fairness Addiction recovery Peacemaking 4

5 SRI Priorities Top SRI priorities identified via dot voting at the 2017 Convention: POSITIVE INVESTING Climate & Clean Technology Human Rights Community Development Diversity/Equal Opportunity DIVESTMENT Pollution & Toxics Human Rights Executive & Exploitative Pay Animal Cruelty Each investment in isolation may not address all priorities, but the portfolio in whole will emphasize each of these priorities. 5

6 Manager Descriptions Manager Strategy Description Responsible Investing International Global Environmental Markets Parametric manages an all cap equity portfolio, optimized to meet the SRIF s customized social screening criteria. The strategy is designed to provide index-like, long-term diversified exposure to the asset class. Restrictions are customized based on priorities set by the Diocese. Institutional mutual fund that invests in companies with sound governance and responsible financial management that they believe are capable of consistent, visible profitability. Employs a proactive score-based screen for key objectives versus imposing specific restrictions. Impax, subadvisor to the Pax World Global Environmental Markets fund, seeks to achieve sustainable, above market returns by investing globally in companies active in rapidly growing Resource Optimization markets. Restricts animal cruelty, defense and weapons, gambling, tobacco and other. Fossil free investment 6

7 Manager Descriptions Manager Strategy Description Total Return ESG Social Bond Real Estate Value All Asset Combines ESG-focused portfolio construction with robust issuer engagement, with a goal of investing for both attractive returns and positive social and environmental change. Restricts alcohol, coal, defense and weapons, gambling, tobacco and other. Actively managed mutual fund that invests in a diversified portfolio of US fixed income securities, focusing primarily on undervalued, investment-grade securities. Also seeks proactive social investments. Restricts alcohol, defense and weapons, gambling, tobacco and other. Employs a fundamental, value-oriented approach to construct a global real estate portfolio. Third Avenue has the flexibility to invest in any industry or region where they find the most compelling values. Institutional mutual fund with a real return strategy that invests tactically across underlying PIMCO mutual funds with the objective of outperforming inflation by a rate of 5% over the long term. 7

8 Returns as of December 31, % Socially Responsible Investment Fund 60/40 MSCI ACWI/Barclays Agg (market benchmark) 20.0% 19.2% 15.0% 15.4% 15.3% 10.0% 5.0% 8.8% 6.6% 10.7% 7.4% 4.8% 11.2% 0.0% 1 Year 3 Years 5 Years 10 Years Since Inception (9/2016) N/A Ranked in the top 3% of peers* Pro-forma (hypothetical) returns based on the current target asset allocation Historical returns for Parametric Responsible Investing are represented by a composite return of Parametric s custom core portfolios that approximate the Russell 3000 Index. Ranked in the top 3% of peers* * The SRIF is ranked in a national universe of plan sponsors with less than $50 million in assets. 8

9 Why Consider the SRIF? We employ a carefully controlled investment process, monitored by experienced investment professionals. 1. SOCIALLY RESPONSIBLE The SRIF dedicates over 90% of its portfolio to socially responsible and gospel value priorities identified at 2017 Convention. 2. ACCESS TO INVESTMENTS The investments retained by the Diocese for the SRIF are typically only available to institutional investors. 3. COMPETITIVE FEES 4. PRUDENTLY MANAGED * Expenses are projected using the SRIF s target allocation. Projected annual expenses are 1.54%* including all management, custody and consulting service fees, and will decrease as the SRIF grows. The Committee consists of experienced investment professionals and is supported by practiced and respected custody and consulting specialists. 9

10 How Do I Learn More? I want to: Resource: Explore how to put my gospel values to work for my parish via the SRIF portfolio SRI Stakeholder Advisory Committee Examine detailed questions regarding the broader Diocesan investment program DIF, SRIF and STIF portfolios Diocesan Investment Committee Review general investment information and resources Diocesan Finance Office 10

11 Socially Responsible Investing Stakeholder Advisory Committee A Committee supporting the Diocesan Board of Trustees and its Investment Committee with respect to the Socially Responsible Investment Fund Sue Hall, Convenor Christ Church, Lake Oswego sue@climateneutral.com (541) Ann Frazier Christ Church, Lake Oswego annfrazier41@comcast.net (503) Robert Howard Ascension, Portland rthoward@me.com (503) Madeline Moore St. David of Wales, Portland madmoore47@gmail.com (503) Rev. Jaime Sanders Christ Church, St. Helens motherjaime@gmail.com (503) Keith Walters Trinity Cathedral, Portland waltersk@pdx.edu (503) Douglas Young St. Lukes, Lebanon ancientangus@gmail.com (541) Robert Young St. John the Baptist, Portland robert@economists.com (503)

12 Diocesan Investment Committee A Committee of and reporting to the Diocesan Board of Trustees Rick Grimshaw, Convenor St. Michael & All Angels, Portland (503) Dick Anderson Christ Church, Lake Oswego (503) Rev. Brendan Barnicle St. Stephen s, Portland (503) Jeffrey Krum Ascension, Portland (503) Roger Neu St. John the Baptist, Portland (503) Lindsey Williams St. John the Baptist, Portland (503) James Baxendale Trinity Cathedral, Portland (503) ex-officio resources: Mike Stone, Diocesan Treasurer Mike Penfield, U.S. Bank Christ Church, Lake Oswego St. John the Baptist, Portland (503) (503) Ashlee Moehring, Sellwood (503)

13 Episcopal Diocese of Oregon Which investment is right for you? Will you need this money in the next 12 months? Yes No DIOCESAN SHORT-TERM INVESTMENT FUND (STIF) Investment horizon: short-term Assets: $1.2 million Annual fee: 0.14% Focus: traditional, low duration Inception date: 2/2010 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee DIOCESAN INVESTMENT FUND (DIF) Investment horizon: long-term Assets: $26.9 million Annual investment fee: 0.63% Focus: traditional investing Inception date: 1/1992 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee DIOCESAN SOCIALLY RESPONSIBLE INVESTMENT FUND (SRIF) Investment horizon: long-term Assets: $2.4 million Annual investment fee: 0.57% Focus: socially responsible criteria & gospel value priorities identified at 2014 Convention Inception date: 9/2016 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee FOR MORE INFORMATION As of 12/31/2017 Episcopal Diocese of Oregon (503) Finance Office 13

14 Investment Restrictions Contributions Withdrawals $10,000 initial deposits Quarterly contributions Requests due by the 15 th of the month prior Monthly liquidity Requests due by the 15 th of the month prior 14

15 For More Information EPISCOPAL DIOCESE OF OREGON (503) Finance Office ADDITIONAL SRI RESOURCES US SIF The Forum for Sustainable and Responsible Investment 15