The San Francisco Foundation invested $50 million from its $800 million endowment in a new investment pool aimed using impact investment and socially responsible strategies, foundation spokeswoman Ling Woo Liu confirmed in an email.
The initial slate of managers currently in the pool are Aperio Group, Generation Investment Management Global Equity, AltraVue Capital, Redwood Grove Capital, Garcia Hamilton & Associates and RBC Impact Bond Fund, managed by RBC Global Asset Management. Additional managers will be added over time, following approval by the foundation's investment committee.
The foundation has and will continue to seek out minority, women and disabled-owned businesses to join the pool.
The pool will initially invest in public equities and fixed income using social screens, and environmental, social and governance considerations, while avoiding investing in predatory lenders, private prisons, fossil fuel and tobacco companies, and retailers that sell assault weapons to the public. Over time, it will target illiquid investments such as private equity. The targeted risk-adjusted return for the pool is 7% to 8%.
The foundation also plans to grow the pool over time.