ford foundation investment portfolio

Lets go! isnewsletter = pagetypeurl.includes("?page_1"); return; By signing on, the grantmaker has committed to allocating the majority of its grantmaking dollars to marginalized communities and at least 25 percent to social justice strategies, such as advocacy, community organizing, and civic engagement. Some had made MRIs, but it was relatively few. Jenny Kendler, an environmentally engaged artist and activist, at first called the organizations announcement significant, though with a heavy asterisk. We wanted to join them, and to do so with a large-scale commitment. Why were those areas identified as the most important? (Incidentally, the same is basically true of Harvards recent announcement, which an, in the universitys magazine argued is largely old news wrapped in fresh packaging.) I feel incredibly privileged to sit in the role and do the work, and watch the evolution of this market. }; This will schedule a job to export all requested 13f holdings data for this filer.

That said its very important to us with both our program-related and mission-related investment portfolios that we can play an influence role in bringing other investors to consider impact as part of their thesis. }

This is the largest ever that we are aware of by a private foundation $1 billion over 10 years. return; if (prefix == undefined) { + '

' var paywallPagesRegex = /^\/subscribe|subscribe-confirm|my-account(\/|$)/; At the heart of Fords internal discussions was asking if this was a way for us to advance more of our mission? }); $modal.css({ } Just look at Jonathans evolution from his first fund to his second fund, and the growing fund sizes. But at the same time, the board is managing for liquidity risk and managing more broadly for the overall health of the institution so that nothing about our investment strategy, whether in the main endowment management or on the MRI side, would put the long-run and short-run financial viability of the institution at risk. The real fund results show that this Corporate Investor is 6 percentage Because when you make the right bets, the more successful they are on impact, the more successful theyre going to be on financial return. function initNewsletterSignup() { This requires steady engagement and thoughtful management of our economic resources. Affordable housing is one with financial inclusion being the other, where some of the early funds were in the $50 million range. [2]: In other words, do a turnaround. + '<\/div>' New York, 4 December 2017 The Ford Foundation announced today the appointment of Roy Swan as director of its Mission Investments team based in New York. 2023 Ford Foundation, some rights reserved. It is mandatory to procure user consent prior to running these cookies on your website. url: $form.attr('action'), Yet part of Kendlers frustration stemmed from what she saw as a false binary in Walkers argument: either immediately divest from fossil fuel assets and sacrifice money that could otherwise be used for grant-making, or hold onto fossil fuel assets and maximize grant-making resources. And then groups like McKnight and Kellogg and Kresge followed. Its dependent upon the kind of investor group youre looking at. Creating standards was a way to get back on mission, to more transparently indicate who these institutions were actually serving, and help their managers help their own staffs to serve those consumers in the most effective way. And then theres some who I think have their eye on us and want to see how this portfolio performs and are closely monitoring it. So, theres been huge movement in the market. while (i--) { + '

' var script = document.createElement('script'); } Privacy Policy We are very committed to it in MRI investing as well, and that does mean seeking to work with diverse investment teams, asking questions about diversity and inclusion, all along lines like gender, race, caste, persons with disabilities, but increasingly looking to diversify the fund management teams. + '<\/div>' And it helps enormously that weve worked in these target sectors for a very long time, so we have deep expertise and also a staff around the world to help with our intelligence network. var signup = The American tax code favors the generous by offering significant financial benefit to those that give to charity. //position at bottom of screen } We had been active through our program-related investment fund starting in the late sixties. setCookie(cookieName, value, expirationMinutes); Sarah Rundell September 16, 2020 Sustainability Digital Sept 2020 function setNewsletterCookie(cookieName, value) { The board is managing for liquidity risk [to ensure nothing] would put the long-run and short-run financial viability of the institution at risk.. Using a deliberate and phased approach, the foundation will gradually carve out funds from its existing investment portfolio and deploy them over time into funds seeking to earn not only attractive financial returns but concrete social returns as well. Initial investments will focus on areas where the foundation has deep prior experience and sees both significant investment opportunity and significant alignment with its mission to reduce poverty and injustice. Two initial areas of focus are affordable housing in the United States and access to financial services in emerging markets. return ctx.regex.email.test( $email.val() ); prefix = 'artnet_newsletter_'; Til next time, remember: the sacrifices we have to endure now to make meaningful change pale in comparison to the sacrifices we will have to endure later if we let things mostly stay the same. 2023 Knowledge at Wharton. This is the largest ever [impact investing commitment] that we are aware of by a private foundation $1 billion over 10 years.. Research one or more filers performance and then optimize their portfolios to match your own investment goals. // Show signup failure error and hide other errors + '

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Last Monday, one of the worlds largest and most powerful charitable foundations made a move that could send shockwaves through the art world. 12/13/2022 + '<\/div>' callback: function() {

2023 Ford Foundation, some rights reserved.

}); the MV of securities sold, whichever is less, + '

' // Handler for close signup button o[this.name].push(this.value || ''); The remainder is largely put to work in private markets. } else { Ironically, the less closely other nonprofits read his actual words, the more meaningful action they might be inclined to take as a result of them..

setNewsletterCookie('signedUp', 1); The foundation no longer owns Ford Motor Company stock, and its diversified portfolio is managed to provide a perpetual source of support for the The move sends a signal to other foundation and institutional investors that perhaps the time has come to consider the potential of impact investing. }); And I dont think it includes the notion that incorporating impact as part of your investment decision making can be a value driver. Daniel Heimpel is the executive editor of The Giving List.

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The trustees of the foundation set policy and delegate authority to the president and senior staff for the foundation's grant making and operation. var ca = document.cookie.split(';'); And the second was to use these investments in our work to encourage other investors to consider impact as part of their strategies to create more positive benefits for all stakeholders. document.cookie = prefix + cname + "=" + cvalue + ";" + expires + ";path=/"; A year earlier, investor and environmental activist Jeremy Grantham published a study(under the cheeky rubric The Mythical Peril of Divesting From Fossil Fuels) that found divestment from any one of 10 major sectors in the S&P 500 will have very little effect on returns based on historical analysis dating back to 1925. found = true; }); function appendNewsletterSignup() { function getCookie(cname, prefix) { // ------------------------------------------------------------------- However, to grasp where we are in the broader movement toward art-world divestment from fossil fuels (let alone portfolio positions that are inequitable in other ways), its crucial to begin by recognizing the limits of the Ford Foundations own strategy., Headlines about the story (including at many major media outlets) tended to frame the Ford pledge as a vow to divest from fossil fuel interests. Tel (+1) 212-573-5128 Philanthropy, incorporated for the public good, can and should make all its investments accordingly. Ford Foundation320 E 43rd StNew York, NY 10017USA. Im sure the Ford Foundation was already deep into due diligence on its own fossil fuel pivot when these two earlier moves went public, but I also think its fair to suggest that none of the three foundations made its choice in a sensory-deprivation chamber., It seems Fords announcement was at least partly designed to push more nonprofits of varying sizes to reassess their endowments through a climate-first lens. to see more advanced email alert options such as selecting any type of A foundation seeking MRI real estate investments may focus on affordable housing. + ' @media (max-width: 1199px){ #ouibounce-modal .description {font-size:13px !important;} }' DEADLINE TO APPLY: April 18th, 2023 Alignment to Culture and Values Commitment to the Foundation's mission and core values of equity, openness, The Ford Foundation has been funding sustainable-energy initiatives for years, according to its spokesperson, presumably in part through some of the $1 billion the foundation committed to phase in for mission-related investments over a decade-long period starting in 2017., And again, it is not prioritizing a sell-off of the endowments existing fossil fuel assets right away. The foundations highest priority is to ensure that our grantees have the resources necessary to address todays most pressing social justice challenges. Knowledge at Wharton is an affiliate of the Wharton School of the University of Pennsylvania. And then there was the question of how you operationalize it. //show automatically after delay Instead, Walker takes pains in his statement to downplay those assets as small and therefore relatively insignificant. Not only having shelter, as we all know that it is a basic human need, but access to decent, safe, affordable housing, including if you are on the bottom of the economy affordable rental opportunity. }) var SignupForm = { Every Wednesday morning, Artnet News brings you The Gray Market. Some major American philanthropic organizations, led by the Wallace Global Fund and the Rockefeller Brothers Fund (both thanked for their counsel by Walker in last weeks statement), first began reorienting their portfolio strategies around eco-consciousness almost two decades ago, as Inside Philanthropy, This fall has seen its own surge toward greening gargantuan nonprofit investments. Market research is the systematic process of collecting, analyzing and interpreting data about a target market. Program-related investments must meet a charitable test, or a charitability standard, whereas mission-related investments from the endowment have to meet a prudent investor test.

That is a field, again I called it mature, that has been evolving for roughly half a century in part through superb evaluation work, including randomized controlled trials in some cases of housing work and a mix of metrics that run from the physical to household finances to broader success in ones life. The trade had a 17.97% impact on the equity portfolio. What criteria would you use to select the funds to whom you would allocate capital? //if there are cookies indicating that we shouldn't show the signup bar, then the modal won't have been added to the page This website uses cookies to improve your experience while you navigate through the website. Over the years, the Ford Foundations grantsdrawn entirely from returns on its endowmenthave helped improve hundreds of millions of lives through social sector innovations such as the Green Revolution, microfinance, public-private partnerships in cities, legal aid, and the creation of public broadcasting and Sesame Street, as well as support for history-changing movements such as the civil rights and womens movements in the US, the fight against apartheid in South Africa, and the protection of human rights dissidents and defenders in Latin America in the 1970s and in the Soviet Union in the 1980samong many other achievements. I did it working with our chief investment officer and our chief financial officer, and we did this in dialogue with our trustees. In addition, under the Obama administration, the IRS issued updated guidance to make clear that the federal government sees it as perfectly consistent with fiduciary duty to pay attention to or to consider mission-related impacts or social impacts. Thats how I think about it in terms of our own engagement and what were trying to do. return o; + 'Please enter a valid email address' Living Cities, which is a membership organization of foundations, banks and insurance companies, has put together two investment vehicles to enable their members, many of whom had never used investments to support their or missions or programmatic goals, to solve for some of the problems that youre referencing. crunchbase With Jonathan, I think what was important was both that he was focused on preserving affordable housing for very low-income families, but also that he had the team, experience, impact practices and infrastructure in place to manage a portfolio that was reliant on subsidies. pagetypeforce = pagetypeurl.substr(pagetypeurl.length - 3); if (c.indexOf(name) == 0) { Every Wednesday morning, Artnet News brings you. We are committing the $1 In comparison to foundations like Ford, museums generally have less money, are more public-facing, serve a much broader audience, and have vastly more complex governance dynamicsall of which make divestment a thornier proposition., But as with all efforts to stave off (or at least minimize) catastrophic climate change, where theres a will, theres a way. For more than 80 years, the Ford Foundation has fulfilled its mission to reduce inequality worldwide by paying out 5% or about half a billion dollars of $12 var head = document.head // ------------------------------------------------------------------- This website uses cookies to improve your experience. She is a member of the fundraising committee of the board of 350.org, a prominent coalition of activist groups working to fast-track the global transition to renewable energy, as well as an organizer with Artists Commit, an initiative to decarbonize the art world., The longer our conversation went on, however, the more her assessment of the Ford Foundations strategy deteriorated. h = Math.max(document.documentElement.clientHeight, window.innerHeight || 0), They simply list broad categories of investments like $230,167,874 in publicly traded securities, or $8,267,021,994 in global equity funds, or $4,199,768,174 in venture capital.. In April, the foundation said it would take up to $1 billion from the traditional investments side and invest it over 10 years into mission-related investments (MRI) those that yield good returns while making a positive social impact, such as funds that invest in efforts to improve education, provide affordable housing or offerfinancial services to the underserved. } else { // Does the email match our regex? Yet part of Kendlers frustration stemmed from what she saw as a false binary in Walkers argument: either immediately divest from fossil fuel assets and sacrifice money that could otherwise be used for grant-making, or hold onto fossil fuel assets and maximize grant-making resources. Kendlers investment in climate justice extends well beyond the studio. Xavier Briggs: We have been doing impact investing since the late 1960s, but only from our program monies the side of our work that is considered charitable. Uncertainty about that had been a barrier in the field for private foundations in particular. return numDays * 24 * 60; Terms of It has been embraced by other donors. }, 7500);

$('body').append(signup); $form.find('.errors').children().hide(); I think institutional investors should be encouraged by that. He notes in the essay that only 0.3 percent of the endowment is directly invested in fossil fuel companies, an allocation that he later states has not increased since 2017.. } + ' @media (max-width: 575px){ #ouibounce-modal {display:none !important;} }' containing a link to download the .zip file of the CSV file(s) you requested.

You are limited to the prior 8 quarters of 13F filings. } else { if (window.jQuery) { function loadJQuery() { Eileen Kinsella, But we also are looking at some managers who are working with more workforce strategies, low to middle income families who are also priced out of the market, who cant access affordable, safe housing. On a global scale, International Cooperation and Global Governance, Ford Foundation Center for Social Justice. Outline the objective for invested Foundation assets (Endowment); B. This is not just about credit but also savings and payment products and tools, which we take for granted in many markets around the world, which have not existed for workers and families everywhere. Soon after the foundations current president, Darren Walker, joined Ford in 2013, he started agitating to change its investment strategy. var ouibounceScript = '