The High Meadows Fund Investment Objectives
The High Meadows Fund was established to support a mission that is relevant to future generations as well as our own. The Fund is designed to sustain itself through thoughtful execution of an investment strategy that allows its assets to grow over time.
Our investment objectives are as follows:
- Over the long term, good investment performance should enhance the ability of the Fund’s assets to finance its mission;
- The investments should reflect an emphasis on equity risk, in the interest of generating higher returns over the long term. To mitigate volatility and inflationary risk, the portfolio will also include fixed income and cash equivalents;
- Ensure strong financial oversight, financial market understanding and investment opportunities through the engagement of the Vermont Community Foundation’s finance staff, investment committee, and investment consultants;
- To the extent practicable, the assets in which the Fund is invested should be consistent with the environmental and economic mission of the Fund; and
- We actively seek investment opportunities that further our mission in addition to providing stable financial returns.
The Fund’s investment strategy has two main components: mission impact investments and a market return, long-term investment portfolio. The mission impact investments are direct investments made by the Fund in our key areas of programmatic focus (learn more about them here). The long-term portfolio has historically been invested in diverse, co-mingled investment vehicles with little autonomy to guide the underlying investments being made. The Fund has increasingly desired to align the long-term investment portfolio with its mission to promote vibrant communities and a healthy natural environment. This has led to a decision to eliminate oil and gas companies, producers of coal, and utility companies that burn coal as their primary source of fuel (when they can be identified) from our portfolio.
Our investment managers have executed the board’s decision to eliminate these three types of companies from our portfolio. We have simplified the investment structure by allocating the investments to cash equivalents; domestic bonds; and an actively managed global equity index fund that screens out the oil, gas, and fossil fuel companies. This gives the Fund more control over the companies and industries in which we are invested and helps better align our investments with our mission.