Socially Responsible Investment Fund...Socially Responsible Investment Fund EXECUTIVE SUMMARY AS OF...
Transcript of Socially Responsible Investment Fund...Socially Responsible Investment Fund EXECUTIVE SUMMARY AS OF...
SociallyResponsibleInvestmentFundEXECUTIVE SUMMARY
AS OF DECEMBER 31, 2017 PORTFOLIO RESULTS The Socially Responsible Investment Fund (SRIF) employs a diversified asset allocationconsistent with its long‐term investment horizon. Although performance goals andobjectiveswillultimatelyfocusontheportfolio’slong‐terminvestmentexperience,theSRIFhasexperiencedoutperformancerelativetopeerssinceitsinception.
Figure 1: SRIF net of fees returns as of December 31, 2017
SOCIALLY RESPONSIBLE INVESTING & GOSPEL VALUE PRIORITIES TheSRIFseekstoincorporatethetopSRIandgospelvalueprioritiesidentifiedviadotvotingatthe2014Convention,andmostrecentlyreaffirmedandexpandedatthe2017Convention.These values encompass both positive investment, a proactive approach to sociallyresponsibleinvesting,anddivestment,whichisrestriction‐based.TheCommitteerecognizesthat,inisolation,eachinvestmentmaynotaddressalloftheSRIandgospelvaluepriorities,buttheSRIFinwholewillemphasizeeachofthesepriorities.
POSITIVE INVESTMENT DIVESTMENT Investorsdirectmoneytowardsolution‐orientedsecuritiesandmakeinvestmentsinactivitiesandcompaniesbelievedtohaveapositivesocialimpact.
InvestorsrestrictinvestmentincertainsecuritiesbasedonSRIfactors,excludingthoserestrictedsecuritiesfromaportfolio.
Climate & Clean Technology Pollution & Toxics
Human Rights Human Rights
Community Development Executive & Exploitative Pay
Diversity/Equal Opportunity Animal Cruelty
Figure 2: SRIF SRI & gospel value priorities
4.6%
19.2% 19.2%15.3%
4th Quarter of 2017 Year to Date 1 Year Since Inception(9/1/2016)
Ranked in the top 4% of peers
Ranked in the top 3% of peers
Ranked in the top 3% of peers
Ranked in the top 3% of peers
INVESTMENT MANAGERS TheInvestmentCommitteemeetsquarterlywiththe SRIF’s consultant, Sellwood Consulting, toreviewtheFund’sperformance,assetallocationandmanager structure, including performanceof the individual investment managers. TheInvestment Committee and/or Sellwoodmeetswith each investment manager on an ongoingbasistodiscussinvestmentresults,strategy,andoutlookforthefuture,aswellasanychangesorissueswithinthefirmorinvestmentteam.
MANAGER STRATEGY DESCRIPTION
ResponsibleInvesting
Parametricmanages an all cap equity portfolio, optimized tomeet the SRIF’s customized social screening criteria. Thestrategyisdesignedtoprovideindex‐like,long‐termdiversifiedexposuretotheassetclass.
International
TheSRIFisinvestedintheBostonCommonInternationalFund,an institutional mutual fund that invests in companies withsoundgovernanceandresponsiblefinancialmanagementthattheybelievearecapableofconsistent,visibleprofitability.
GlobalEnvironmentalMarkets
TheSRIFisinvestedinthePaxWorldGlobalEnv.MarketsFund,a mutual fund sub‐advised by Impax that seeks to achievesustainable, above market returns by investing globally incompanies active in rapidly growing Resource Optimizationmarkets.
TotalReturnESG
TheSRIF is invested inthePIMCOTotalReturnESGFund,anactivelymanagedbondmutualfundthatcombinesESG‐focusedportfolio constructionwith robust issuer engagement,with agoalofinvestingforbothattractivereturnsandpositivesocialandenvironmentalchange.
SocialBond
The SRIF is invested in the TIAA‐CREF Social Bond Fund, anactively managed mutual fund that invests in a diversifiedportfolioofU.S. fixedincomesecurities, focusingprimarilyonundervalued, investment‐grade securities. The strategy alsoseeksproactivesocialinvestments.
RealEstateValue
The SRIF is invested in the Third Avenue Real Estate ValueFund,aninstitutionalmutualfundthatemploysafundamental,value‐oriented approach to construct a global real estateportfolio. Third Avenue has the flexibility to invest in anyindustryorregionwheretheyfindthemostcompellingvalues.
Figure 3: SRIF target composition
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MANAGER STRATEGY DESCRIPTION
AllAsset
The SRIF is invested in the PIMCO All Asset Fund, aninstitutional mutual fund with a “real return” strategy thatinvests tacticallyacrossunderlyingPIMCOmutual fundswiththeobjectiveofoutperforminginflationbyarateof5%overthelongterm.
Figure 4: SRIF manager descriptions
HOW DO I LEARN MORE? TheSRIStakeholderAdvisoryCommitteeiscurrentlyconductingone‐on‐onemeetingswithparishleaderstoprovideinformationabouttheSRIFandhowtheSRIFcanhelptosupporttheirgoals.ToexplorehowtoputyourgospelvaluestoworkforyourparishviatheSRIFportfolio,contactmembersoftheSRIStakeholderAdvisoryCommittee.
SRI STAKEHOLDER ADVISORY COMMITTEE MEMBERS
Sue Hall, Convenor Christ Church, Lake Oswego [email protected] (541)490-2860
Ann Frazier Christ Church, Lake Oswego [email protected] (503) 880-7082
Robert Howard Ascension, Portland [email protected] (503) 806-2625
Madeline Moore St. David of Wales, Portland [email protected] (503) 248-7017
Rev. Jaime Sanders Christ Church, St. Helens [email protected] (503) 997-1651
Keith Walters Trinity Cathedral, Portland [email protected] (503) 234-0380
Douglas Young St. Lukes, Lebanon [email protected] (541) 570-5474
Robert Young St. John the Baptist, Portland [email protected] (503) 816-5103
INVESTMENT COMMITTEE MEMBERS Rick Grimshaw, Convenor St. Michael and All Angels, Portland (503) 221-7616
Dick Anderson Christ Church, Lake Oswego (503) 635-2568
Rev. Brendan Barnicle St. Stephen’s, Portland (503) 901-4908
James Baxendale Trinity Cathedral, Portland (503) 919-0087
Jeffrey Krum Ascension, Portland (503) 765-1230
Roger Neu St. John the Baptist, Portland (503) 504-1998
Lindsey Williams St. John the Baptist, Portland (503) 291-4485
Mike Stone Treasurer | Christ Church, Lake Oswego (503) 232-1859
Mike Penfield, ex-officio US Bank | St. John the Baptist, Portland (503) 464-4912
Ashlee Moehring, ex-officio Investment Advisor | Sellwood Consulting (503) 596-2885
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Diocese of Oregon
Socially Responsible Investment Fund Performance
% of QTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 2017 2016 2015 2014 Return Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Socially Responsible Investment Fund 100.0 4.6 19.2 -- -- -- -- 19.2 -- -- -- 15.3 Sep-1660% MSCI ACW Index / 40% Barclays Aggregate Index 3.6 15.4 6.6 7.4 6.7 4.8 15.4 5.9 -1.0 5.0 11.2Trust Funds < $50mm Net Universe Rank 4 3 -- -- -- -- 3 -- -- -- 3
US Equity 48.1 6.6 22.0 -- -- -- -- 22.0 -- -- -- 20.3 Sep-16Parametric Responsible Inv (SA) 48.1 6.6 22.0 -- -- -- -- 22.0 -- -- -- 20.3 Sep-16
Non-US Equity 12.7 3.0 26.4 -- -- -- -- 26.4 -- -- -- 16.7 Sep-16Boston Common Intl (BCAIX) 12.7 3.0 26.4 7.1 6.7 4.6 -- 26.4 -1.0 -2.0 -7.1 16.7 Sep-16
Global Equity 13.1 5.3 26.8 -- -- -- -- 26.8 -- -- -- 19.1 Sep-16Pax Global Env Markets (PGINX) 13.1 5.3 26.8 11.6 12.4 9.8 -- 26.8 10.9 -1.2 -2.5 19.1 Sep-16
Fixed Income 17.9 0.3 4.5 -- -- -- -- 4.5 -- -- -- 1.5 Sep-16PIMCO Total Rtn ESG;Inst (PTSAX) 8.9 -0.1 4.5 2.6 2.0 3.3 5.0 4.5 3.0 0.4 4.5 1.8 Sep-16TIAA-CREF Soc Bond Inst (TSBIX) 9.0 0.6 4.5 3.0 3.2 -- -- 4.5 3.2 1.2 8.8 1.4 Sep-16
Real Estate 3.1 6.4 22.2 -- -- -- -- 22.2 -- -- -- 15.2 Sep-16Third Avenue Real Estate (TAREX) 3.1 6.4 22.2 7.6 10.4 10.1 5.9 22.2 5.8 -3.7 13.1 15.2 Sep-16
Marketable Alternatives 4.6 3.1 14.0 -- -- -- -- 14.0 -- -- -- 11.0 Sep-16PIMCO All Asset (PAAIX) 4.6 3.1 14.0 5.6 3.7 5.1 5.3 14.0 13.3 -8.7 0.8 11.0 Sep-16
All manager performance is client-specific after the client inception date.
Inception
Since
Rates of Return Ending December 31, 2017
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Socially Responsible Investment Fund
Socially Responsible Investment FundAs of December 31, 2017
The SRIF was funded on August 5, 2016.
Asset Allocation vs. TargetCurrent Target Difference Target Range Within Range
_
US Equity 48.1% 46.5% 1.6% 37.0% - 56.0% YesParametric Responsible Inv (SA) 48.1%
Non-US Equity 12.7% 12.5% 0.2% 10.0% - 15.0% YesBoston Common Intl (BCAIX) 12.7%
Global Equity 13.1% 12.5% 0.6% 10.0% - 15.0% YesPax Global Env Markets (PGINX) 13.1%
Fixed Income 17.9% 20.0% -2.1% 16.0% - 24.0% YesPIMCO Total Rtn ESG;Inst (PTSAX) 8.9%TIAA-CREF Soc Bond Inst (TSBIX) 9.0%
Real Estate 3.1% 3.0% 0.1% 2.0% - 4.0% YesThird Avenue Real Estate (TAREX) 3.1%
Marketable Alternatives 4.6% 5.0% -0.4% 4.0% - 6.0% YesPIMCO All Asset (PAAIX) 4.6%
Cash Equivalent 0.5% 0.5% 0.0% 0.0% - 2.0% YesFidelity Instl MM Govt I (FIGXX) 0.5%
Total 100.0% 100.0%XXXXX
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