Anthos and Ascension Unite Faith-Based and Impact Investing through a Common Good Fund

The article emphasizes the growing trend of impact investing among Catholic institutions, driven by a desire to align financial assets with ethical and social values.

Key Points:

1. Call for Active Investment:

   • Over a decade ago, a women’s religious order urged Ascension Investment Management (AIM) to invest in ways that actively support vulnerable communities and environmental sustainability, moving beyond merely screening out “sin stocks.”

2. Impact Investments:

   • AIM launched its first impact investments in 2014, with $50 million from Catholic institutions aiming to create positive social and environmental impacts while achieving competitive financial returns.

3. Collaborations:

   • AIM partnered with Anthos Fund & Asset Management to create the Common Good Fund, which focuses on investments aligned with Catholic social teachings. It has raised $90 million toward its $250 million goal.

4. Guidance for Faith-Based Investing:

   • Calvert Impact provided a guide for faith-based investors, highlighting the longstanding tradition of religious institutions in impact investing.

5. Global Asset Oversight:

   • Religious groups oversee $12 trillion in assets, increasingly seeking investments that not only avoid harm but also create benefits aligned with their values.

6. Investment Criteria:

   • AIM follows a strategy that includes a threefold approach: excluding non-aligned investments, engaging with managers for improved outcomes, and enhancing impact through strategic allocations.

7. Case Studies:

   • Various organizations, including the Mercy Partnership Fund and Charism Capital, are indicated as examples of effective investment strategies focusing on sustainability and community well-being.

8. Call for Collective Action:

   • Leaders like Sister Sue Ernster encourage faith-based investors to collaborate and redirect capital towards investments that promote global flourishing and ethical practices, asserting that financial markets reflect essential values.

This trend reflects a significant evolution in how religious institutions engage in financial markets, focusing on alignment with their mission and social responsibilities.