We have three priorities in investing your donations for charity: safety, ethics and high interest.
Managing investments in a safe way is our highest priority. To do this, we take several measures:
Ethical, sustainable and social
All investments at the Future Fund are done in accordance with ‘responsible’ investment values. Responsible investing means that ethical, sustainable and social standards are taken into account in the investments.
Finally, we make it a priority to generate a good interest every year for the charities. To do this, we have made an extensive comparison of all available investment funds on their historical performance and their cost.
ESG + SRI: Responsible investing in practise
In practise, we make our investments ‘responsible’ — i.e., ethical, sustainable and social — by opting for an ESG or SRI investment fund. ESG stands for Environmental, Social, and Governance (ESG) and SRI stands for Socially Responsible Investment (SRI). In these funds, companies in certain sectors are excluded (such as weapons, tobacco and gambling), plus more weight is allocated to companies that perform better on ESG or SRI scores.
For info: ESG and SRI investments generate the same (or even better) return as stocks in general. (The average interest per year on stocks in general was 7.0% in the past 150 years, already corrected for inflation.)
In line with these priorities, donations will be invested in the Triodos Pioneer Impact Fund. Triodos itself describes this fund as follows: