The Foundation's investment beliefs are:
1) Total return: based on the concept of total return being composed significantly of investment income rather than capital gains.
2) Low volatility and inflation protection: to match the generally risk averse nature of the Foundation and to maintain purchasing power over the long-term.
3) Growing dividends: for long-term growth.
4) Responsible investing: incorporating environmental, social and governance (ESG) factors in its decision-making is fundamental to conducting comprehensive investment assessments and for managing risks and opportunities adn all investments must be consistent with the Foundation's philanthropic mission.
The overall investment strategy described in detail in the publicly available SIPP. The Investment Committee has an advisory role and recommends policies and the Board retains decision-making authority.
In our risk management, we proactively attempt to mitigate compliance, credit, currency, diversification, inflation, leverage, liquidity, market, regulatory and volatility risks, in addition to having oversight over emerging risks and ESG issues.
External managers are responsible for voting proxies on behalf of the Foundation, with ESG factors being given the highest consideration.
For the portion of our portfolio allocated to Impact Investments, we have more stringent environmental and social screening requirements outlined in a distinct Impact Investment Policy.