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Expressing Institutional Values in Investment Portfolios

Institutional Investor • 4 November 2022
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Values-Based Investing 

Institutional Investor in collaboration with IOR (Investment Office Resources), conducted an exclusive research study examining how allocators are resourcing themselves, their approaches and implementation activities to express their organization’s values through their portfolios.

Between August 16 and September 30, over 85 global investors from prominent institutions across North America, EMEA and APAC responded on if and how they were thinking about supporting their values with their investment portfolios. Across the responses, over 37% represented retirement plans (27% public and 10% private), 23% insurances companies, 17% endowments and foundations, followed by multi- and single-family offices, financial institutions, and sovereign wealth funds, which as a group made up 23%.

Demographically, 51% were in North America, 32% in EMEA and 17% in APAC. Every Institution had a minimum AUM of $500 million of more, 43% had less than $5 billion versus 57% having more than $5 billion in AUM.

Survey and study background:

The concept of investors aligning their financial goals with their values has been a feature of socially responsible investing for decades. Prominently expressed in certain types of organisations, such as healthcare, and the charitable missions of foundations, more recently, this approach has harvested significant regard, across the board, leading to a variety of approaches.

In this research, the term “values-based investing” is intended to consider the non-financial aspects of investing, broader than ESG, including DEI, SRI, impact investing, and any other non-financial considerations. As many investors are receiving values-oriented mandates from their boards, we examined specific actions and approaches that investors are taking to fulfil these objectives. The quantitative research included questions on, whether they had defined their values in a formal statement; whether that was part of their Investment Policy Statement, and whether they were thinking about integration – and if so, what tools were they using.

We thank Lisa Laird, Chief Strategist, for her collaboration and input, as well from Anthony Waskiewicz, co-Chief Investment Officer and Ryan Baily, co-Chief Investment Officer of Investment Office Resources LLC.

Key Findings

To see the full report and download your Electronic Copy Click HERE. If you wold like further insights into this research study, Contact Us Here

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