Comments on: Wealth Management & Philanthropy

By: Sean Stannard-Stockton

Sean Stannard-Stockton — Thu, 11 Dec 2008 17:25:11 +0000

Sarah,
I think the best way to think about market rate vs below market rate returns is with an understanding of Jed Emerson’s Blended Value thesis. All activity produces a blend of social and financial returns. Different investors will seek a different blends of returns. We should be seeking to produced the highest possibly blended return.

For instance, if I felt that the social impact of an investment was quite large, I don’t see why I wouldn’t settle for a below market financial rate of return. I don’t think there is a right answer when it comes to market rate vs below market rate. I think it is all about investor preference. Much like there is no correct asset allocation in financial markets, it is all about matching client preferences.

Your comment got caught in my spam filter, I’m sorry that it was just posted today.

By: Sean Stannard-Stockton

Sean Stannard-Stockton — Mon, 01 Dec 2008 15:46:45 +0000

Thanks for the info Steve. The KL Felicitas Foundation is also heavily focused on MRI. Readers should feel free to add other examples via comments to this post.

By: Sarah Ewing

Sarah Ewing — Mon, 01 Dec 2008 15:24:06 +0000

This is an interesting concept. I am ShoreBank’s Online Channel Manager and we offer an online high yield savings account (3.50% *APY) which usually attracts mission based investors rather than SRI. However, we like to think that our investors want at or above market returns in addition to mission investment. Are mission related investors different? Or are our investors really SRI?

By: Steve Viederman

Steve Viederman — Sat, 29 Nov 2008 15:42:39 +0000

The Heron Foundation has perhaps the most seamless program of MRI, using PRI’s (from their grant budget) through a wide variety of instruments through the “other 95%.” They are a leader and a model.

But historically, the Jessie Smith Noyes Foundation, of which I was president, preceded Heron, by a few years. In addition to equity investments and a mission-related venture capital fund, Noyes also was the first foundation to file a shareowner resolution in support of one of its grantees–with Intel concerning the needs of the SouthWest Organizing Project

MRI today has gone beyond screening to best-in-sector investing, and beyond that into Sustainable Investing, that is not a new name for an old process, but an emerging conceptual framework recognizing that environmental and social and governance factors are an essential aspect of financial decision making, neither “extra”-financial, nor “intangible,”but financial and tangible, i.e. climate risk

Anyone seeking additional information on the Noyes experience or Sustainable Investing should contact me at s.viederman@mac.com