Investments and Finance

We invest our assets to optimize returns

This means:

• Asset allocation is the main driver of long-term risk and return. Our long-term investment horizon is an advantage and a responsibility.
• Grant making influences asset allocation.
• Investing in multiple asset classes diversifies overall risk.
• Risk and return cannot be captured solely through traditional quantitative measures; but the factors that we consider should be identified and measured where possible.
• True optimization of returns demands the consideration of environmental, social and governance factors.
• Markets can be inefficient and active managers can add value over benchmarks; but for some asset classes, a passive approach may be most appropriate and cost-effective.
• Private assets can provide a material return premium relative to public equity.
• An informed and disciplined process will drive continued investment success.
   

Investing our assets requires good relationships

• We respect and appreciate individual perspectives so; our board of trustees makes decisions by consensus.
• Relationships with our partners and their investment professionals matter; regardless of the legal or operating formalities — first and foremost, we invest in people.
• Our investment approach demands non-traditional skills and diverse points of view.
• Manager selection is critical to financial success and is an important tool in the pursuit of race and gender equity.

Responsible management requires clarity, expertise and adequate resources

• Costs matter and need to be effectively controlled and managed.
• Strong governance and a well-defined decision-making structure enable sound investment.
• Unfiltered and regular assessment of performance is required for success, accountability and field leadership.
• We are transparent about our investment portfolio; some of our decisions will be made mindful of mission realization while others may be more focused on financial performance; however, in all cases, we use our best judgement and are willing to acknowledge tension or dissonance with our mission, values and beliefs.

Catalyzing change is a team effort

• Traditional investment strategies can only evolve with long-term investment, the taking of measured risk and the acceptance of failure as a part of leadership.
• Meaningful advancement of our mission through investment will require visible leadership and a long-term, collaborative effort.