Social Purpose Funds
Use this information to help you choose which investment funds to include in your ELCA retirement account.
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Your Investments Make a Difference
The ELCA retirement plan offers eight Social Purpose funds that align with the social teachings and policies of the ELCA. These funds appeal to investors who want to feel confident that the money they’re saving for tomorrow is being used to make a positive difference in the world today.
Learn about investing for social impact
Each of the eight Social Purpose funds is designed to offer investors returns consistent with targeted risk/return characteristics that support their retirement goals while also creating positive social impact. These funds do that by seeking out investment opportunities that enhance God’s kingdom, and by screening out companies that conflict with the church’s teachings. In addition, on behalf of all our funds, Portico engages in shareholder advocacy as a means to positively influence companies in which we invest.Learn about shareholder advocacy
To help achieve even greater social impact, seven of the eight Social Purpose funds employ an increasingly popular form of positive social investing called social impact first (SIF). SIF investments accept a somewhat lower projected return and/or somewhat higher projected risk for a portion of the fund’s investments in order to invest in companies and organizations that support initiatives like affordable housing, reduced greenhouse emissions, and renewable energy.
As of Nov. 1, 2015, up to 10% of the assets in Social Purpose funds (excluding the Social Purpose Stock Index Fund) may be applied to SIF investment opportunities. These investments carry no more than 25% greater projected risk and no more than 25% lower projected return than similar investments not prioritizing social impact. The remaining 90% of the assets include positive social investments with higher return projections than SIF investments.
You should carefully consider the target asset allocations, investment objectives, risks, charges, and expenses of any fund before investing in it. All funds, including ELCA funds, are subject to risk and uncertainty. Past performance cannot be used to predict future performance. ELCA funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fund assets are invested in multiple sectors of the market. Some sectors, as well as the funds, may perform below expectations and lose money over short or extended periods. See the ELCA Investment Fund Descriptions for more information about our funds.
Neither Portico Benefit Services nor the funds it manages are subject to registration, regulation, or reporting under the Investment Company Act of 1940, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, or state securities laws. Members, therefore, will not be afforded the protections of those provisions of those laws and related regulations.