Make an Impact
Supporters of social change have historically treated financial investments and grantmaking as independent activities. Increasingly, we are seeing these silos break down as investors seek or even require impact screens as part of setting investment strategies. "Double bottom line" approaches using investment and/or charitable capital are called "impact investing."
At Tides, we encourage our donor partners to consider impact investing as part of a multi-pronged approach to supporting the positive social change they seek. Donor partners can recommend investments by a donor advised fund ("DAF") in mission-aligned funds and in equity or debt offerings of for-profit social enterprises that seek both financial and social returns. Given the charitable purpose of a DAF, any financial return from investments is returned to the DAF and increases the capital available for further grantmaking and/or mission-aligned investing.
Our approach to impact investing mirrors our overall approach to social change: tailored, nuanced, and comprehensive. Tides offers impact investment options across various asset classes, risk, and liquidity preferences, time horizon thresholds, and social impact areas. Donor partners can select investment recommendations from any of the fund options described below and receive customized advice toward the development of a charitable investment strategy.
Reporting on Impact
Each investment option at Tides includes customized impact reporting, ranging from reports on shareholder advocacy for publicly listed companies to impact stories on fixed income holdings. These investments can be aligned with grantmaking in the same issue area for a combined approach to social change.
Investing by Social Impact Theme
Here are some social impact themes that can be paired with our public market investment options:
| Social Impact Theme | Aligned Investment Options |
|---|---|
| Broad Environmental, Social, and Governance (ESG) | Calvert US Large Cap Core Responsible Index Fund (CISIX), Fidelity US Sustainable Index Fund (FITLX), Fidelity International Sustainability Index Fund (FNIDX), Calvert Emerging Markets Equity Fund (CVMIX), Nuveen Core Impact Bond Fund (TSBIX), Nuveen Short Duration Impact Bond Fund (TSDJX) |
| Environment & Climate Change | Calvert US Large Cap Core Responsible Index Fund (CISIX), Fidelity US Sustainable Index Fund (FITLX), Fidelity International Sustainability Index Fund (FNIDX), Calvert Emerging Markets Equity Fund (CVMIX) |
| Shareholder Advocacy | Calvert US Large Cap Core Responsible Index Fund (CISIX), Calvert Emerging Markets Equity Fund (CVMIX) |
| Social Impact Bonds & Community Development | Nuveen Core Impact Bond Fund (TSBIX), Nuveen Short Duration Impact Bond Fund (TSDJX) |
Public Equities — Broad Environmental, Social and Governance (ESG)
Publicly traded equity funds applying broad environmental, social, and governance (ESG) criteria, offering high liquidity and diversified exposure across U.S. and international markets.
Calvert US Large Cap Core Responsible Index Fund CISIX
Fund management conducts deep, proprietary research across approximately 200 peer groups using over 300 key performance indicators (KPIs) to measure material environmental, social, and governance (ESG) factors. The Calvert US Large-Cap Core Responsible Index has roughly 800 holdings that are reconstituted annually and rebalanced quarterly.
Impact Theme & Reporting
The fund publishes its research each quarter to share reasoning behind security selection/exclusion, to highlight ESG-related shareholder engagement work, and to quantify the impact of the overall portfolio (for e.g., metrics like carbon emissions, tobacco exposure, etc.).
| YTD | 1 Year | 3 Years | 5 Years | 10 Year | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|---|
| Calvert US Large Cap Core Responsible Index Fund (CISIX) | -4.89% | +17.09% | +17.20% | +10.27% | +13.91% | 0.24% | $5.6B |
| Benchmark | -4.82% | +17.47% | +17.52% | +10.55% | +14.22% | — | — |
Performance net of Investment and Bank Custody Fees: 0.28%
The fund normally invests at least 80% of assets in securities included in the MSCI USA ESG Index, which represents the performance of stocks of large- to mid-capitalization U.S. companies with high environmental, social, and governance (ESG) performance relative to their sector peers, as rated by MSCI ESG Research.
Impact Theme & Reporting
MSCI ESG Research examines extensive data and key ESG performance indicators to derive a composite ESG score for each company. ESG scores are mapped to a 9-point letter scale, with ratings from AAA (highest) to C (lowest). Companies are ranked by ESG scores against their sector peers to determine eligibility for the indices.
| YTD | 1 Year | 3 Years | 5 Years | 10 Year | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|---|
| Fidelity US Sustainable Index Fund (FITLX) | -5.94% | +19.55% | +18.15% | +11.81% | N/A | 0.11% | $5.5B |
| Benchmark | -5.97% | +19.97% | +18.26% | +11.95% | +14.19% | — | — |
Performance net of Investment and Bank Custody Fees: 0.15%
Fidelity International Sustainability Index Fund FNIDX
The fund normally invests at least 80% of assets in securities included in the MSCI ACWI ex USA ESG Index. The index is a capitalization-weighted index that provides exposure to companies with high environmental, social, and governance performance relative to their sector peers across developed and emerging markets, excluding the United States.
Impact Theme & Reporting
MSCI ESG Research examines extensive data and key ESG performance indicators to derive a composite ESG score for each company. ESG scores are mapped to a 9-point letter scale, with ratings from AAA (highest) to C (lowest). MSCI ESG indices include the highest-rated eligible constituents in each sector.
| YTD | 1 Year | 3 Years | 5 Years | 10 Year | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|---|
| Fidelity International Sustainability Index Fund (FNIDX) | +0.32% | +24.48% | +13.61% | +5.86% | N/A | 0.20% | $788M |
| Benchmark | -2.10% | +22.25% | +12.84% | +5.44% | +7.87% | — | — |
Performance net of Investment and Bank Custody Fees: 0.24%
The Fund's portfolio managers look for quality companies with promising business models and build a high conviction portfolio which has historically held between 35-55 stocks. The managers are stock pickers who emphasize long-term potential and quality companies (strong balance sheets, profitability, good cash flow) trading at attractive valuations in countries supportive of economic/corporate growth.
Impact Theme & Reporting
The fund publishes its research each quarter to share reasoning behind security selection/exclusion, to highlight ESG-related shareholder engagement work, and to quantify the impact of the overall portfolio (for e.g., metrics like carbon emissions, tobacco exposure, etc.).
| YTD | 1 Year | 3 Years | 5 Years | 10 Year | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|---|
| Calvert Emerging Markets Equity Fund (CVMIX) | +2.82% | +36.62% | +14.43% | +1.85% | +8.04% | 0.99% | $1.4B |
| Benchmark | -0.17% | +29.55% | +14.84% | +3.69% | +7.80% | — | — |
Performance net of Investment and Bank Custody Fees: 1.03%
Fixed Income — Impact
Bond and fixed income funds integrating ESG criteria, providing stable income with social and environmental impact through investment-grade and short-duration strategies.
TSBIX seeks total return, primarily through current income, while giving special consideration to certain ESG criteria. It typically invests at least 80% of its assets in a broad range of investment-grade bonds and may invest less than 40% of its assets in fixed-income securities of foreign securities, including emerging markets fixed income securities and non-dollar-denominated instruments.
Impact Theme & Reporting
The Fund invests a portion of its assets in fixed-income instruments that reflect proactive social investments and are subject to further ESG criteria. These investments provide direct exposure to socially beneficial issuers and/or individual projects.
| YTD | 1 Year | 3 Years | 5 Years | 10 Year | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|---|
| Nuveen Core Impact Bond Fund (TSBIX) | +0.18% | +4.87% | +4.28% | +0.53% | +2.07% | 0.35% | $7.29B |
| Benchmark | -0.05% | +4.35% | +3.63% | +0.31% | +1.70% | — | — |
Performance net of Investment and Bank Custody Fees: 0.41%
TSDJX seeks current income while giving special consideration to certain environmental, social and governance (ESG) criteria. It typically invests at least 80% of its assets in a broad range of investment-grade bonds with average maturities or average lives of less than 5 years. The fund may invest less than 40% in fixed-income securities of foreign securities, including emerging markets instruments.
Impact Theme & Reporting
The Fund invests a portion of its assets in fixed-income instruments that reflect proactive social investments and are subject to further ESG criteria. These investments provide direct exposure to socially beneficial issuers and/or individual projects.
| YTD | 1 Year | 3 Years | 5 Years | Expense Ratio | Total Assets | |
|---|---|---|---|---|---|---|
| Nuveen Short Duration Impact Bond Fund (TSDJX) | +0.42% | +4.60% | +4.97% | +2.56% | 0.39% | $379M |
| Benchmark | +0.28% | +3.96% | +4.35% | +2.04% | — | — |
Performance net of Investment and Bank Custody Fees: 0.39%
Custom Portfolio Creation & Management
Some of Tides' donor partners desire a more customized approach to developing a charitable investment strategy. The investment management team at Tides can partner with you to understand your risk, return, impact, liquidity, and time horizon goals to develop an investment strategy for your donor advised fund. For funds starting at $1 million, donor partners can choose from the array of investment options listed above, or work with Tides to identify and vet other social impact investments that align with financial and social returns goals and Tides' mission.
For private equity, venture capital, real assets, and other alternative investment opportunities, please visit Tides 50.
This is not an offer to sell, or solicitation of offers to buy, securities. The information provided includes summaries of past performance, which are not an indication of future results. References to benchmarks are hypothetical illustrations of aggregate returns and do not reflect the performance of any actual investment. Investment in any fund or other opportunity entails financial risk and may result in a total loss of investment capital. Much of the information contained herein has been obtained or derived from independent third-party sources and Tides cannot guarantee the accuracy or completeness of such information. Tides encourages you to seek advice regarding any potential investment recommendation or other investment decision from appropriate independent professional advisors. Past performance is not indicative of future results. All returns shown are annualized and net of Investment and Bank Custody Fees.