Over three decades, a carefully honed investment policy has helped the Catholic Community Foundation of Minnesota (CCF) become the third-largest public grantmaker in Minnesota. This accomplishment demonstrates just how seriously CCF takes its commitment to meet the future needs of our Catholic community. Central to honoring that commitment is a sound investment strategy that is both rigorously monitored and deeply infused with Catholic values.
Investing with a Catholic Heart
“One of the big differentiators between CCF and other community foundations is that we apply a Catholic lens to our investment strategies. Some people assume we forfeit returns when we prioritize doing good with the money, but in practice it’s been the opposite. Over the years, we’ve had solid and consistent performance.” — Mike Ricci, CCF Director of Professional Outreach & Investments
“People come to CCF to align their philanthropy with their Catholic faith. Impact investing allows us to take it a step further by using investments to actually improve people’s lives by providing things like affordable housing and better access to healthcare. That’s pretty powerful.” — Julie Gerend, Clinical Professor of Finance, Opus College of Business at the University of St. Thomas; Former Chair of CCF Investment Committee
CCF’s investment practices have evolved to incorporate more complex faith-aligned investment strategies. As a steward for our donors, partners, and community, CCF remains committed to pursuing continuous improvement and growth in this field.
The Socially Responsible Investment Guidelines from the United States Conference of Catholic Bishops (USCCB) have long inspired and informed CCF’s investment philosophy. They’ve allowed CCF to remain true to our Catholic faith while fulfilling our fiduciary duties to our donors and partners.
As the USCCB’s guidelines have developed through the years, so too have CCF’s faith-aligned investment activities. Today CCF incorporates the three core strategies for Catholic investing outlined in the USCCB guidelines:
Avoid Doing Harm – We rigorously review our portfolio to ensure we are not invested in companies whose activities conflict with Catholic social teaching. We reevaluate the portfolio quarterly and take appropriate action to divest and reinvest as business practices change.
Actively Work for Change – We leverage our rights as shareholders to influence corporate governance and decision-making. Through proxy voting and activities such as letter-writing campaigns to corporate leadership, we strive to make Catholic voices heard.
Promote the Common Good – We practice impact investing, a strategy that seeks to deliver a measurable, social benefit along with strong financial returns. Impact investments align money with mission by focusing on sectors like renewable energy, food and nutrition, financial inclusion, healthcare, and affordable housing.
Many Layers of Oversight Provide Checks and Balances
“CCF’s multiple layers of governance bring together different actors with a variety of expertise, and each layer complements the others. That is really the art behind the investment strategy at CCF. It’s what makes everything work so well.” — J.J. Kirby, Senior Director of Investment Research at Envoi; Chair of CCF Investment Committee
A large and remarkably talented group of professionals oversee CCF’s investment decisions. The group comprises four layers of governance that meticulously examine investment strategies and ensure a system of checks and balances are adhered to throughout the process.
Board of Directors – Seasoned professionals from the ranks of Fortune 500 companies, major financial institutions, Catholic organizations, and beyond provide volunteer leadership to the CCF Board of Directors. They bring a variety of experience to guide our work while holding the ultimate responsibility for all investment decisions.
Investment Committee – This committee consists of board members and community members with deep investment knowledge and experience. Working closely with CCF staff and consultants, the committee develops our investment strategy.
CCF Staff – Director of Professional Outreach & Investments Mike Ricci oversees the day-to-day management of CCF’s investment portfolio. He also coordinates with consultants and the Investment Committee to develop, implement, and oversee investment strategy.
Consultants – CCF has long-term partnerships with several firms that provide crucial services including data research, allocation guidance, and screening analysis. Consultants also offer CCF entrée to high-caliber private investment options that would be inaccessible without their collaboration.
Managing Risk to Steward “Forever Funds”
“CCF’s wheelhouse is managing long-term money. Our donors and partners entrust us with the stewardship of perpetual endowments where the time horizon is forever. We’re good at administering these funds, and the community can count on our partnership when they need it.” — Anne Cullen Miller, CCF President
Endowment funds are managed for balanced growth in a long-term investment pool. Because CCF partners rely on endowments to support their ministries now and for future generations, we treat each one as a sacred trust.
Each year the CCF investment team conducts an extensive analysis to determine the percentage of a fund that can be distributed annually without compromising future growth. The Investment Committee considers everything from inflation trends to spending rates of other institutional endowments before recommending a spending policy to the Board of Directors.