Approach to socially responsible investing

The Presbyterian Foundation (FDN) has faithfully followed the investment guidelines of the General Assembly throughout its 200+ year history. The investment approach to socially responsible investing is faith-based — drawing on Presbyterian Values of theological, social and economic considerations.

The Presbyterian Foundation uses three main ways to execute a socially responsible investment strategy:

  1. Shareholder Advocacy:
    1. Proxy Voting — The FDN votes all proxies for companies that we own in a socially responsible way, that seeks to encourage companies to be better corporate citizens.
    2. Shareholder Engagement — The FDN engages alongside MRTI (Mission Responsibility Through Investment) with companies that we own to bring about corporate change for social good.
    3. Shareholder Resolutions — The FDN uses shares owned to file and co-file corporate resolutions that encourage better corporate practices for environmental, social and governance issues.
  2. Community (Impact) Investing:
      1. Microfinance — The FDN makes loans in economically depressed areas of the world by providing working capital to communities not served by traditional financial services.
  3. Screening:
    1. Positive Screens — Environmental, Social and Governance research, ratings and analysis on business practices of companies for which we invest.
    2. Negative Screens — The FDN follows General Assembly guidelines and prohibits investment in alcohol, tobacco, weapons, gambling, human rights offenders and for-profit prisons. All other sectors of the market are available for investment by FDN investment managers.