The Mary Reynolds Babcock Foundation believes that, in addition to grantmaking, our financial investments are an effective tool for achieving positive impact. We are committed to aligning our diverse portfolio with our mission of moving people and places out of poverty.
Mission investing includes both market-rate investments and below-market-rate program-related investments (PRIs). Our PRIs directly support our mission in the Southeast region, while market-rate investments align with our values and meet our overall investment policy.
To leverage our dollars sustainably and responsibly, our investment policy integrates environmental, social and governance factors into our investment criteria. These include labor rights, climate impact, natural resource use, corporate governance, supply chain management, community impact and other practices. We believe this investment approach is consistent with fiduciary responsibility and expect our portfolio to generate competitive market performance returns.
Our investment policy establishes a goal of spending 5.5 percent of a 12-quarter moving average of the market value of our endowment, allowing the fund to exceed the IRS mandate of spending 5 percent.