2077 Investing Responsibly With Faith

Presenters: the Rev. James Sherblom and Craig Scholl

Prepared for UUA.org by: Mike McNaughton, Reporter; Jone Johnson Lewis, Editor

In the last two decades, the rules for investment trustees have changed. Are your trustees up to date?

For 100 years, trustees have relied on the "prudent-man rule" which says "All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of the capital to be invested."

Financial and ethical standards have changed. Many states have enacted a version of the Uniform Prudent Investor Act , which requires diversification, a balance of risk and return, consideration of all investment categories, and regard for the purpose and circumstances of the organization. Undue risk or lack of diligence or review could be causes for removal of an investment trustee.

Does your church have

• a well-diversified portfolio yielding relatively low risk returns sufficient to meet organizational needs and grow principal with inflation,
• well informed trustees who understand risks and relative performance of the portfolio, and
• investments consistent with the organization's purposes and principles?

If not, you may wish to contact the UUA Investment Committee, investment@uua.org.

One option available to UU congregations and affiliate organizations is the UUA General Investment Fund, GIF. This fund holds a well-diversified set of securities that are managed by specialist professional investment advisors. The investments are structured to respect UU principles and practices while achieving the highest possible risk-adjusted returns. The Investment Committee works closely with the committee on Socially Responsible Investing (SRI).

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