Chick ICP Project

Phillip G. Chick

Vice President, Financial Administration and Chief Business Officer
Xavier University

 

Project Title:

Integrating Catholic and Jesuit Values with Responsible Investment Management

Overview:

The purpose of this project is to formally adopt investment policies and operational guidance that incorporates Catholic and Jesuit values into the management of our long-term investment pool (including our endowment). The result of the project will be a revised investment policy statement for our long-term investment pool that must be approved by our Board of Trustees and a plan to ensure that our current and future investments are aligned with these values.

Rational:

Our current investment policy statement does not specifically require the University to adhere to Catholic social teaching in how our investments are selected and managed. As a Catholic and Jesuit university we have the responsibility to ensure that our investments, like all aspects of our work, reflect the values that we proclaim and which we strive to impart to our students. In addition, the oversight of our investment portfolio is a significant part of my responsibilities and I am able to oversee this work directly

Project Details:

1. Conduct initial research regarding current trends in socially responsible investing and use of social and Catholic values screens and impact on portfolio.
2. Review research with our Investment Working Group (a subcommittee of our Board of Trustee’s Finance Committee); agree on path forward.
3. Draft proposed Investment Policy Statement.
4. Obtain formal approval of the updated Investment Policy Statement.
5. Implement plans for regular compliance reporting and ongoing oversight

Indications of Success:

1. Approval of the updated Investment Policy Statement by Investment Working Group (completed April 20, 2021).
2. Approval of an updated Investment Policy Statement by Finance Committee and the full Board of Trustees (completed May 7, 2021).
3. Completion of transition to updated portfolio that is in compliance with the new policy, including regular reporting (In process).

Challenges:

1. Ensuring an appropriate balance between our fiduciary obligations and our commitment to our stated Catholic and Jesuit values.
2. Determining the appropriate tolerance levels within the prescribed Catholic social screens and ensuring attention to environmental sustainability concerns raised by faculty, students and others.
3. Being able to implement the policy despite the inherent lack of transparency of illiquid and alternative investments.