Impact investing in the main endowment

Impact-enabling investment policy statements

• Investment policy statement

  McKnight Foundation

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  The McKnight Foundation is based in the United States of America and focuses on advancing climate solutions, building equitable communities, supporting arts and culture in Minnesota, and promoting neuroscience. Their approach to impact investing looks at a triple bottom line, focusing on climate solutions and equitable communities. Their strategy involves integrating their mission across their entire endowment through decarbonisation efforts. They published their latest investment policy statement in 2023.

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• Distribution rule and investment policy

  Guy’s and St Thomas’ Foundation

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  Guy’s and St Thomas’ Foundation, based in London is focused on driving equitable health outcomes. They aim to optimise both financial returns and health outcomes. Their strategy involves diversifying investments across sectors like healthcare innovation, social determinants of health, and affordable housing while balancing financial and impact objectives. They published their latest investment policy statement in 2020.

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• Investment policy statement

  Rockefeller Brothers Fund

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  The Rockefeller Brothers Fund is based in the United States of America and focuses on advancing social change for a more just, sustainable, and peaceful world. They define impact investments as those delivering market-rate returns while generating meaningful impact aligned with their mission. They published their latest investment policy statement in 2020.

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• Investment policy statement

  Access – The Foundation for Social Investment

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  Access – The Foundation for Social Investment is based in the United Kingdom and focuses on bridging the gap in the social investment market to provide suitable finance and support for social enterprises and charities. They offer blended finance programs, grants, and advocacy work to ensure these organisations can access the necessary capital for sustainable growth. Their approach involves mobilising the social investment ecosystem, advocating for blended finance, nurturing partnerships, and promoting enterprise grant-making to build a resilient social economy. They published their latest investment policy statement in 2018.

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• Investment policy statement

  Lumina Foundation for Education Inc

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  The Lumina Foundation is based in the United States of America and focuses on increasing postsecondary educational attainment and closing achievement gaps through strategic social investments. They invest in companies, organisations, and funds that generate measurable social impact aligned with their goal of achieving 60% postsecondary attainment by 2025. Lumina’s approach involves blending financial returns with social impact, leveraging partnerships, and utilising innovative investments to advance their mission and catalyse social change. They published their latest investment policy statement in 2021.

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• Investment policy statement

  The Mary Reynolds Babcock Foundation

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  The Mary Reynolds Babcock Foundation focuses on alleviating poverty and advancing social and economic justice in the South of the United States of America. They make investments to community development finance organisations and align their endowment investments with their mission, vision, and values. The foundation targets racial equity, aiming to dismantle structural racism to create a more equitable society for all individuals in the region. They published their latest investment policy statement in 2019.

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• Investment principles and policy

  Friends Provident Foundation

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  Friends Provident Foundation is based in the United Kingdom and utilises an integrated approach to leverage its endowment for social change through social investments and shareholder engagement. They focus on aligning their investments with their charitable and programmatic objectives, aiming to create a fairer economy and a better world. The foundation’s investment principles prioritise advancing social impact while leveraging financial instruments to support their mission and drive positive change. They published their latest investment policy statement in 2023.

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• Investment policy statement

  The Marguerite Casey Foundation

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  The Marguerite Casey Foundation focuses on advancing racial justice and community power through strategic investments and grant-making. Their Investment Policy Statement prioritises racial and gender diversity, aiming to align their endowment with their racial equity goals. By committing significant assets to diverse managers and utilising a racial justice lens across investments, they aim to catalyse social change and support excluded communities in shaping society. They published their latest investment policy statement in 2023.

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• Investment policy statement

  The Woodcock Foundation

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  The Woodcock Foundation is based in the United States of America and focuses on impact investing guided by their Investment Policy Statement, balancing financial returns and impact alignment. Their catalytic investments target 5% of the portfolio, supporting initiatives like equitable farmworker models and conservation efforts. With a flexible approach and a focus on trust-based philanthropy, the foundation leverages its endowment creatively to generate returns while advancing social and environmental causes. They published their latest investment policy statement in 2023.

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• Investment policy statement

  The Jessie Smith Noyes Foundation

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  The Jessie Smith Noyes Foundation is based in the United States of America and focuses on aligning investment practices with mission objectives to sustain the public good. With assets totaling around $60 million, they invest a significant portion in domestic and international markets. Their approach involves innovative strategies and new investment opportunities to support their mission effectively. They published their latest investment policy statement in 2022.

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• More for our mission: making our endowment work harder – Impact investment policy

  The Dunhill Medical Trust

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  The Dunhill Medical Trust focuses on funding scientific research and driving social change for healthier aging. Their approach to investment involves supporting researchers, communities, and services while addressing inequality and promoting interdisciplinary connections. They prioritise academic research in various disciplines and encourage partnerships with community-led organisations. The Trust’s strategic investments aim to inspire innovative research, improve health outcomes for older people, and drive systemic change for a healthier later life. They published their latest investment policy statement in 2022.

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• Statement of investment policies and procedures

  The McConnell Foundation

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  The McConnell Foundation is based in Canada and focuses on aligning its investment portfolio with its charitable goals, committing to generating intentional positive impact in communities and the environment. They published their latest investment policy statement in 2023.

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Further reading

• Investor Blueprint for Racial and Economic Equity

  PolicyLink

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  PolicyLink’s Investor Blueprint for Racial and Economic Equity is a comprehensive guide that urges investors to take a leading role in fostering a more equitable economy. It emphasises the importance of aligning investments with equitable outcomes, addressing systemic risks posed by growing inequality, and outlines a clear pathway for investors to integrate racial and economic equity into their decision-making processes and investment strategies.

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• Shareholder Activity Guidelines

  The Nathan Cummings Foundation

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  The Nathan Cummings Foundation’s Shareholder Activity Guidelines detail their engagement with companies, focusing on values like diversity, equity, inclusion, accountability, and transparency. They aim to influence corporate behaviour on climate change and inequality through shareholder activism while safeguarding long-term shareholder value.

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• Impact Portfolio Construction Yesterday, Today, and Tomorrow

  Impact Frontiers

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  Impact Frontiers’ “Impact Portfolio Construction Yesterday, Today, and Tomorrow” document delves into the evolution of impact portfolio construction, emphasising the importance of advancing social equity through impact management. The publication provides insights into shared norms for impact performance reporting, guiding investors on navigating the complexities of impact-oriented portfolios and aligning investments with social equity goals for a more sustainable and equitable future.

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• Diversifying investment managers

  Rockefeller Brothers Fund

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  The Rockefeller Brothers Fund is committed to diversity and equity in their investment practices, aiming to align investments with their mission. They express a strong commitment to diversifying investment managers, emphasising the values of diversity and equity in their approach. Through their efforts, they seek to promote inclusivity and equitable opportunities within the asset management industry, reflecting their dedication to social impact and responsible investing.

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• Asset owner diversity charter

  Diversity Project

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  The Asset Owner Diversity Charter was formed to formalise a set of actions that asset owners can commit to improve diversity in all forms across the investment industry. The charter has two key components. First is the Asset Manager Diversity and Inclusion Questionnaire, which aims to standardise complex diversity metrics beyond just gender to improve disclosures. The questionnaire results will feed into a progress report to inform engagement in improving diversity and inclusion. The second component is the Asset Owner Charter Toolkit, a supporting document that aids in implementing the Charter and includes critical topics such as manager monitoring and selection.

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• Investing with impact in the endowment: Why do it and how to get started

  Impact Investing Institute

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  The guide addresses critical misconceptions around impact investing concerning legality and financial returns and details the reasons why endowments can benefit from investing with impact. The guide also included practical steps that endowments can take to become impact investors and profiled endowments that have pioneered an impact approach.

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• Impact investing handbook: an implementation guide for practitioners

  Rockefeller Philanthropy Advisors

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  Rockefeller Philanthropy Advisors’ Impact Investing Handbook is a comprehensive guide designed to help asset owners transition interest into impactful action. The handbook offers detailed guidance, case studies, and insights from over fifty experts. It covers developing a theory of change, building or shifting portfolios using impact tools, measuring success, and crafting realistic implementation plans. The handbook is a practical resource for individuals, families, foundations, and corporations seeking to align their investments with social impact goals.

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• Changing corporate behaviour through shareholder activism: The Nathan Cummings Foundation’s experience

  The Nathan Cummings Foundation

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  The Nathan Cummings Foundation leverages shareholder activism to drive corporate behaviour change, focusing on climate change and inequality. Through active ownership strategies like proxy voting and filing shareholder resolutions, they influence companies on issues aligning with their values of diversity, equity, and transparency. Their approach aims to protect long-term shareholder value while advancing progress on critical societal challenges like climate change and inequality.

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• Impact due diligence and management for asset allocators

  BlueMark and CASE at Duke University

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  The “Impact Due Diligence and Management for Asset Allocators” guide by BlueMark and CASE at Duke University offers a comprehensive resource for asset allocators to effectively evaluate and engage with impact fund managers. It provides tools, tips, and red flags to enhance due diligence processes, monitor impact funds, and ensure rigorous impact management practices. The guide aims to drive consistency and rigour in assessing private market funds aligned with impact goals.

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• Four considerations for strong investment policy statements

  CFA Institute

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  The CFA Institute’s guide on Four Considerations for Strong Investment Policy Statements emphasises the critical elements that make an investment policy statement (IPS) robust. It highlights defining responsibilities clearly, outlining objectives and constraints comprehensively, benchmarking the plan effectively, and ensuring portability. The document stresses the importance of thoroughness in governance, oversight, investment management, and monitoring functions to create a strong and resilient IPS for successful investment programs.

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• How to write an investment policy for your charity

  Charities Aid Foundation

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  The Charities Aid Foundation provides guidance on writing an investment policy for charities, emphasising the importance of setting clear goals and strategies tailored to each organisation’s unique needs. The policy outlines the charity’s investment objectives, risk tolerance, ethical considerations, decision-making processes, and performance measurement criteria. By creating a robust investment policy, charities can manage their investments effectively to achieve financial sustainability and support their mission.

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• Can foundation endowments achieve greater impact?

  Bridgespan Social Impact (BSI) and Capricorn Investment Group

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  Investment Group and Skoll Foundation conducted a survey across primarily U.S.-based foundations to quantifiably estimate the extent to which foundations’ investable assets (i.e., endowments) are allocated to impact investments. The study also includes key recommendations for endowments looking to start this work: 1. Instead of starting small and experimenting, set ambitious goals 2. Embrace a portfolio approach to impact investing 3. Do not just passively learn from peers – commit to collaboration and even copying each other 4. Think beyond Mission Related Investments 5. Support the field by raising the bar for impact investments

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Networks and community

• The Association of Charitable Foundations

  The Association of Charitable Foundations is the leading membership body for foundations and independent grant-makers in the UK. One of its special interest groups is the Social Impact Investors Group (SIIG) is a community that supports foundations interested in social impact investing with market information days, learning events, and resources. ACF also co-hosts, in collaboration with the Impact Investing Institute, a yearly training programme on impact investing in the main endowment.

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• The Global Impact Investing Network

  The Global Impact Investing Network (GIIN) is a global members’ organisation that is building the market for impact investing worldwide through high-quality research and events.

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• Rockefeller Philanthropy Advisors

  Rockefeller Philanthropy Advisors (RPA) accelerates philanthropy globally, managing over $500 mn in annual giving for individuals, families, foundations, and corporations. They provide advisory services, manage philanthropic initiatives, incubate non-profits, and share insights on effective philanthropic strategies.

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• The Charities Responsible Investment Network

  The Charities Responsible Investment Network (CRIN) at ShareAction unites charities with investments to advance their missions through responsible investment. CRIN engages with investee companies, investment managers, and policymakers on various environmental, social, and governance issues, supporting charities in achieving positive change collaboratively and enhancing responsible investing skills.

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• Big Society Capital

  Big Society Capital focuses on social impact investing in the UK, uniting capital, expertise, and ideas to address social challenges. They channel significant investments into areas like health, well-being, and community resilience, aiming to improve lives through sustainable financial returns and positive social impact. They also provide impartial and impact-driven guidance to professional and institutional investors. They have invested alongside pension funds, university endowments, charitable trusts and foundations, wealthy individuals and families, and government organisations.

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• Confluence Philanthropy

  Confluence Philanthropy is a US-based membership network of over 260 private, public, and community foundations, family offices, individual donors, and their values-aligned investment advisers.

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• The EIRIS Foundation

  The EIRIS Foundation is a research, advice, and advocacy charity with over 30 years of experience in sustainable finance. Their mission involves providing free and objective information on sustainable finance, encouraging responsible investment, assessing corporate lobbying on human rights, and supporting charities in responsible investment efforts.

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• Mission Investors Exchange

  Mission Investors Exchange is a US-based impact investing network for foundations, philanthropic asset owners, and partners. It provides resources, inspiration, and connections to support members in scaling and increasing the impact of their impact investing practice. The network’s resources are generally available for non-members to view.

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• TONIIC

  Toniic is a global community of asset owners promoting impact investing, with around 500 members worldwide. They facilitate peer gatherings, provide online community support, and offer resources for impact investors at all stages. The Toniic Tracer platform is a web-based tool that allows investors, entrepreneurs, and funds to share data on impact goals and outcomes, aligning investments with positive impact intentions.

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• The Social Investment Consultancy

  The Social Investment Consultancy (TSIC) specialises in diversity, equity, inclusion, research and evaluation, and social innovation. Their services include data-backed investment plans, financial modelling, statistical analysis, and market research.

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• Philea

  multidimensional potential of philanthropy to co-shape and support a pluralistic, just and resilient society that centres people and planet. Philea galvanizes collective action, amplifies the voice of European philanthropy, and promotes enabling environments for doing good.

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• Impact Europe

  Impact Europe (formerly EVPA) is a network of impact capital providers along the full continuum of capital (foundations, impact funds, banks and financial institutions, corporate impact actors, public funders).

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