Faith Consistent Investing

1
Faith Consistent Investing

• New investments for the Faiths Opportunities or
  sources of conflict?

2
Agenda

• About Opplysningsvesenets fond
• The SRI guidelines
• The investment policy
• Society Improving investing
• Howe Faith Consistent are the investing?
• Appendix

3
About Opplysningsvesenets fond

• Opplysningsvesenets fond is an endowment for The
  Norwegian Church
• Its English name is The Norwegian Church
  Endowment
• The beneficiary is The Norwegian Church
• The Ovfs net asset value is 6 billion NOK (or
  720 million EUR/900 million USD)

4
Ovfs Organisation
5
Opplysningsvesenets fond total asset
6
The SRI Guidelines
7
Revenue and SRI criteria

• The Church must benefit from Ovf
• We needed criteria that would not take away that
  benefit
• We wanted to find out if SRI criteria outperform
  or under perform non SRI criteria
• There are 14 indexes with SRI criteria

8
SRI index vs Ordinary
9
The guideline for our work
10
The SRI criteria
The church fundamental ethical principles
Area of conduct
Area of activity
P

Environmental improving

New energy forms
P
Investment Universe

Sustainable use of resources

Health improvement
u

Environmental

Sustainable labour right
r
b

Developing in under developing countries
Positive
o
criteria
l
f
c
i
i
Ovfs
Social Responsible
Investment Universe
Investment Universe
Investment
t
t
SRI
y
Area of conduct
Negative

Contraventions of Rights of the Child
Area of activity
criteria

Contraventions of labour force

Production of nuclear power

Contraventions of human right

Pornography

pollution
Investment Universe

Tobacco

Contraventions of biological diversity

Alcohol

Destroying of cultural monument

Gambling

Some biotechnology areas

Weaponry
Corporate governance
11
The Investment policy
12
Some scenarios

• We go for the optimal scenario

13
The Yale Endowment
14
The hedge of Real Estate

• We belief that Real Estate whit good contract
  give just as god hedge as hedge fund

15
Opplysningsvesenets fond financial asset and
return
16
Society Improving investment
17
Society Improving investment

• Undeveloped countries
• Finarca (leasing) 7 million NOK
• LAAD (agricultural bank) 7 million NOK
• Solidus (microfinance) 7 million NOK
• Kolibri kapital (microfinance) 0,5 million NOK
• Chikweti Forrest 40 million NOK

• Renewable energy
• Kraftpartner 1,5 million NOK
• Health care
• NeoMed 8 million NOK
• Other
• Verdibanken 3 million NOK
• Total 74 mill / 4,3 of financial asset

18
How fait consistent are the investment?

• Different SRI criteria
• Society Improving investing
• No to activity of enterprises
• No to conduct of enterprises
• Best in class

• Different instrument
• Hedge fund
• Commodities
• Derivatives
• Fixed income
• Private Equity
• Real Estate
• Equity
• CDOs
• Forestry
• Micro finance

19
Thank you
Harald Magne Glomdal Phone [phone] Mobil
47 45005321 hmg_at_ovf.no
20
Appendix
21
Correlation of asset class
22
Efficient frontier
Adding alternative assets to the investable
universe vastly improved the available set of
efficient portfolios. Hedge funds and real estate
offered the best efficiency in the alternative
asset universe.
23
Return of hedge fund and volatility
24
Return and montley observation of private equity
25
Commodity return
26
Indexes