Charities team up to run ESG ‘Olympics’
The Friends Provident Foundation is partnering with five other charities to encourage investment managers to compete over a $66mn portoflio which prioritises social and environmental impact (Reuters/Kai Pfaffenbach)
The Friends Provident Foundation is redefining what it means to be an ‘olympian’. Instead of asking for awesome displays of physical fitness and athleticism, it wants to be blown away by… portfolio management style.
In a recent statement, the foundation - in partnership with five other charities - announced the return of the ‘ESG Investing Olympics’ under a new name: the Endowments Investing Challenge.
Competing investment managers will propose a portfolio for an investment of up to $66mn which prioritises positive social and environmental impact.
James Anthony, social investment portfolio manager for FPF, said now was the right time to double down and demonstrate investments should be made with impact in mind as well as return.
“We believe the portfolio we have delivers impact to an extent, but we can do better,” he added.
The foundation has partnered with the $50mn Blagrave Trust, the $72mn Children’s Society, the $64mn Cripplegate Foundation, the $545mn Joseph Rowntree Foundation and the $221mn Vivensa Foundation (this is the artist formerly known as the Dunhill Medical Trust).
Shortlisted managers will present their proposals at an event in March. Crucially, the foundation has refused to say either way what they want to see from managers, with the only guidance being that proposals should demonstrate “impact-intentionality”.
“In terms of actual themes, we have quite deliberately left that open,” said Anthony. “We want investment service providers to tell us what they think that means and we have tried not to be too directive… we are hoping it inspires creativity.”
For some managers, investing with the environment or society in mind is creative enough. Only time will tell whether they are fit enough (ESG-wise) to win this race.
The deadline for receipt of tenders is December 19.