Typically, foundations invest their corpus with an eye solely toward risk-adjusted returns, trying to grow the corpus so that there is more money to give away the following year. While that may seem like a reasonable goal, we want to maximize the social impact of these assets.
We ask: “Is it possible to create as much change with our investments as it is with the money we give away?” Pursuing the answer to this question has led the IDP Foundation to become increasingly engaged in impact investing.
Impact investing allows us to generate financial return while also accomplishing our mission.
In 2014, with the help of our financial consultants at Graystone Consulting, a business of Morgan Stanley, we started to include impact investing as another way of putting our philanthropic dollars to work to generate even more positive change. Today, we are proud that over 94% of our investments are mission-aligned.
We evolved the architecture of our portfolio by working with high quality managers dedicated to impact investing. We believe that our investment decisions can integrate Environmental, Social and Governance (ESG) criteria while not sacrificing financial returns. We have been tracking the portfolio’s performance since the start of 2014, and our investments have consistently outpaced traditional benchmarks.
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