Investments and Our Faith Covenants

Pilgrim Changes Some Endowment Investments to Better Reflect Faith Covenants
 
Over two years ago, Pilgrim’s Race and Equity Committee began a process of auditing Pilgrim’s employment practices, contract procedures, and investment strategies, to ascertain how well they align with Pilgrim’s faith values, as reflected in our O&A, Healing Racism and Creation Justice Covenants.
 
While at this point few changes seem necessary in our employment and contracting practices, the Committee determined that Pilgrim’s endowment investment strategies could better reflect our faith values. Accordingly, steps have been taken through the Board of Trustees, with the expert guidance of our own Chuck Clifton, to invest a portion of our endowment funds in what are known as ESG investments—i.e., those that reflect the environmental, social and governance values that would further a more socially responsible, equitable, and sustainable world.
 
ESG investing can seek to enhance a number of different priorities. In line with Pilgrim’s own stated commitments, The Race and Equity Committee identified priorities relating to the environment, diversity (including but not limited to race and sexual orientation), and human rights, as the most appropriate values to guide our investment decisions. In determining whether and how to alter our investing priorities, the Committee also put considerable emphasis on ensuring that investments would have the right mix of risk and reward; that any new strategies would have yields comparable to (or higher than) those we have had in the past; and that, in comparing potential yields, the higher costs of managed funds (as compared to the index funds in which we were previously invested) be taken into account.
 
After considerable research and analysis, Chuck recommended a 60-40 balance between stocks and bonds, and identified for the Board of Trustees a number of specific funds that he concluded would best meet Pilgrim’s faith and investment goals. These recommendations were approved by the Board  of Trustees, and are now being acted upon. Pilgrim owes a great debt to Chuck Clifton, for his  professional time and expertise, provided pro bono.
 
Many Pilgrims may choose to undergo this kind of process for their own investments. The Race and Equity Committee highly encourages you to do so. Your process, of course, will need to reflect your own investment goals, risk tolerance, and individual circumstances. However, if you think the analysis that led to Pilgrim’s specific choices might be helpful to you, please don’t hesitate to reach out for support from the Church Office.
 
Sincerely,
 
The Trustees, Race & Equity Team