The foundation is subject to the foundation law of the Evangelical Church of Westphalia. Accordingly, foundation funds may only be invested under very special conditions. The foundation is subject to the investment guidelines for financial assets of the Evangelical Church of Westphalia. It is about a responsible, sustainable and ethically justified investment policy.
The following investment guidelines apply to the investment of donations to the Evangelical Community Foundation Bocholt:
Sustainable aspects for securities
1. The investment of financial assets must not contradict the church’s mandate.
2. In principle, investments in companies should not be made,
a) manufacture the armaments,
b) those for violations of one of the five core labor standards (child labor, forced labor, discrimination, freedom of association and Law collective wage negotiations) of the international labor organization ILO (International Labor Organization),
c) violate environmental laws or generally recognized minimum ecological standards to a significant degree (in particular the deforestation of primary forests),
d) are the producers of nuclear energy and manufacture core components of nuclear power plants,
e) are the producers of genetically modified plants and animals,
f) produce the addictive substances,
g) are the producers of pornography and providers of sex tourism,
h) demonstrably conduct research on the human embryo or embryonic cells.
3. In principle, investments in government securities should not be made,
a) systematically violate human rights (e.g. death penalty, torture, political arbitrariness, freedom of movement, freedom of religion, Child labor),
b) where there is a high level of corruption,
c) who have not ratified the Kyoto Protocol,
d) who have not ratified the Agreement on International Trade in Endangered Animal and Plant Species,
e) they have a disproportionately large armament budget,
(f) women are given significantly fewer social and economic development opportunities than men,
g) which are responsible for extremely economic and social inequality.
4. When investing in funds and asset management companies, it must be ensured that an investment approach is used that does not contradict the requirements under 1 to 3.
The calculation of the investment restriction is divided into the three phases described below:
1. Framework conditions
Basically, the parishes, the church circles as well as the church associations of the Evangelical Church of Westphalia and the regional church pursue a defensive investment strategy for all financial assets. This means that the investments follow the requirement "security before income". It is important to ensure a balanced spread of the risks. The base currency is the euro, the foreign currency component can amount to a maximum of 10% of the total financial assets. This portion is said to be currency hedged.
2. Maximum value for the investment of total financial assets The following maximum values of total financial assets are set:
- Liquidity – short-term investments (e.g. current account, overnight deposit account, money market fund, time deposits) up to 100%
- Earnings values - medium and long-term investments (e.g. growth savings, annual money, savings bonds, fixed-income securities up to 100%
- Substance values - participation in the substance of a company (e.g. shares, equity funds, shares in mixed investment forms up to 25%
- Real assets (e.g. open-ended real estate funds) up to 10%
- Commodities (e.g. commodity funds) up to 5%
3. Risk classes In the financial world, the risk content of an investment is assessed using risk classes. The investment must be based on these risk classes. The rating classifications of internationally recognized rating agencies must be observed.
Using basic information:
The ratings of the bonds held must be checked regularly (at least annually). If a minimum rating is undershot, this bond must be sold from the portfolio within 6 months (note market liquidity, take economic interests into account).
Criteria for financial institutions
Church financial assets should be managed by financial institutions that belong to a deposit guarantee fund and that credibly observe the criteria of sustainability. Financial institutions must be prepared to provide criteria for the investment of the church’s financial assets and for regular reporting arrange."
You can view the entire text of the investment guidelines here: Investment guidelines with _preamble
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