The Social Impact Pool seeks to provide competitive financial returns alongside meaningful, positive social and environmental benefits. Specific impact themes include:
- sustainable global growth
- inclusive economies
- healthy communities
- community development
This pool is a long-term investment option for donors and nonprofits with funds at SVCF. It is suitable for endowments and funds with spending horizons greater than seven years. Investments are broadly diversified across public equity, fixed income and private market strategies.
We select public equity strategies that actively integrate environmental, social and corporate governance (ESG) factors into stock selection, with a focus on companies with strong sustainability practices that not only deliver superior ESG performance, but also better organizational and risk management that drives strong financial performance. Most strategies also exclude companies involved in the production of alcohol, tobacco, weapons, nuclear power or gambling.
Similarly, we select fixed income strategies for strong financial performance and support of important social or environmental challenges such as affordable housing, community economic development, access to credit in developing countries, and green-bond financing of renewable energy.
Private market strategies allow for deeper impact through targeted investments in disruptive technologies and solutions to such things as climate change, sustainable and healthy food systems, healthcare innovations, access to credit and quality job creation in lower income communities.
Sustainable Development Goals
SVCF uses the United Nations Sustainable Development Goals (SDG) to frame the social purpose of the portfolio. The SDGs constitute 17 global goals with 169 targets covering a wide range of issues across economic, social and environmental dimensions, and include a clear case for businesses to take action by improving their own sustainability performance and by investing in key impact themes identified by all 193 members of the United Nations. The ultimate goal is to stimulate action in areas of critical performance to set the world on a more just and resilient path by the year 2030.
Read SVCF's report titled, "The United Nations Sustainable Development Goals: A Why, When and How Guide for Business."
Click on the sections below and the Fact Sheet at right to view investment strategy detail, alignment to the Sustainable Development Goals and examples of impact.
Portfolio expense ratio 0.86%
Expenses are subject to change due to changes in investment policy, investment managers or service providers. Expenses shown do not include carried interest or incentive fees.
Alignment to Sustainable Development Goals
SVCF supports the SDGs.
Stories of Impact
Boston Common invests in public companies with good social records, above-average performance and socially or environmentally beneficial products and services. Through shareholder advocacy, the firm works in coalition with other social investors to engage companies and affect change. They urge companies to improve transparency, accountability and attention to environmental, social and governance issues such as climate change, human rights and corporate governance.
In December, Boston Common, in partnership with As You Sow and The Investor Environmental Health Network, released a 2017 special edition of the “Disclosing the Facts” scorecard. The report focused on the critical risk of methane emissions – a potent contributor to global climate change – and how oil and gas companies are managing methane reductions. The reports have driven best practice reporting by a number of companies.
The MicroVest Short Duration Bond Fund seeks to achieve current income by investing in low-income financial institutions (LIFIs) in emerging markets. These LIFIs, which may include microfinance institutions and small and medium enterprise financing institutions, provide a variety of financial services to the working poor. The fund predominately invests in Latin America, Asia, Caribbean, Sub-Saharan Africa and Eastern Europe.
MicroVest currently works with Microserfin (Solucionesde Microfinanzas S.A.), one of the leading microfinance entities in Panama. Microserfin works to improve living standards of low-income entrepreneurs and their families by providing credit and advisory support. Microserfin’s clients show total average assets have increased, with growth in assets outpacing that of net incomes. Through 2016 Microserfin’s clients posted compound annual frowthrates (CAGR) of 12% in assets and 4% in net incomes. This supports the idea that these microentrepreneurs tend to accumulate and reinvest assets.
Learn more at http://microvestfund.com/
The TPG Alternative & Renewable Technologies Fund addresses climate change, carbon emissions and greenhouse gases by focusing on technologies that disrupt the oil and gas, chemicals and industrials sectors. The fund invests in companies with proven technology that requires additional capital and partnerships to reach profitability, and where environmental benefits drive business quality. Investments may include, but are not limited to, alternative and renewable technologies, industrial biotechnology, agricultural biotechnology, biochemicals, biofuels, materials, nano-technology, energy efficiency and grid management.
Portfolio Company Highlight
- Anuvia’s sustainability advantage is multi-faceted: re-utilization of organic wastes, reduced energy usage, and reduced nitrogen runoff and leaching
- 50% less nitrogen runoff and groundwater leaching for each ton of applied fertilizer
The Nikko Green Bond Fund seeks to achieve capital growth and income by investing in bonds issued and backed by the World Bank. Green bonds have been recognized as a catalyst for the growing market of climate bonds. Bond proceeds fund sustainability projects in developing countries that are designed to tackle the causes and consequences of climate change.
Of the 91 World Bank projects eligible for Green Bond financing, 25 have closed and their implementation and completion results reports have been published. Highlighted to the right are actual impacts from these projects with select results aggregated to illustrate the magnitude of their impacts.