Investment Policy Statement (sample)

Income+Returns :: Risk :: Impact :: Benchmarks

Generate after-tax INCOME of $__MM annually, through conservative to moderate investment choices (the majority from fixed income, corporate bonds, sovereign treasuries, real estate investment trusts [REITs], and dividends from preferred and common stocks).

Lower the RISK of principal loss through diversification across multiple asset types and seek protection against potential inflation (e.g. TIPS: Treasury Inflation Protected Securities; baskets of commodities, including gold and silver; real estate and REITs; investments that generate income within 18 months of committed capital; and consideration of hedging, including options).

Seek higher positive-IMPACT investments across all asset types (e.g. cash, fixed income, public equity, private equity, real estate, etc.). Using the HIP (Human Impact + Profit) Scorecard evaluation tools, target a 100% invested for impact by 2020.  Today, the portfolio’s weighted average HIP Score is 64%.

  • All of our investments need to minimize the negative impact on all people and the planet.

Target competitive investment PERFORMANCE versus appropriate benchmarks, calculated on a pre-tax basis, relative to similar risk investments:

  • According to the Strategic Plan’s 2011 goals, the portfolio seeks a five-year average annual appreciation of 8% nominal returns.  Expected tax rate of 35%, we seek 5% after-tax annual returns.

Rationale for Impact Investor:

  • Liquidity, Doing well and doing good, Wealth preservation, Diversification, and Moderate capital appreciation