Give For Good

Investments

We have three priorities in investing your donations for charity: safety, ethics and high interest.

Safety

Managing investments in a safe way is our highest priority. To do this, we take several measures:

Ethical, sustainable and social

All investments at Give for Good are done in accordance with ‘responsible’ investment values. Responsible investing means that ethical, sustainable and social standards are taken into account in the investments.

your impact on charities

High interest

Finally, we make it a priority to generate a high interest every year for the charities.

ESG + SRI: Responsible investing in practise

Responsible investing

In practise, we make our investments ‘responsible’ — i.e., ethical, sustainable and social — by opting for an ESG or SRI investment fund. ESG stands for Environmental, Social, and Governance (ESG) and SRI stands for Socially Responsible Investment (SRI). In these funds, companies in certain sectors are excluded (such as weapons, tobacco and gambling), plus more weight is allocated to companies that perform better on ESG or SRI scores. For info: ESG and SRI investments generate the same (or even better) return as stocks in general. (The average interest per year on stocks in general was 7.0% in the past 150 years, already corrected for inflation.)
SDGs

Investment funds

Donations are invested in seven investment funds to achieve good diversification. These funds were selected because they all have the highest ESG-score in their class at our ABN AMRO investment platform, they have a low annual cost, and they have adequate liquidity (meaning they have a good size, which makes them trustworthier and more easily tradable). See here for the ABN’s methodology for calculating the ESG-scores (the scores are provided by Sustainalytics).

Four of the funds are global-level SRI funds with stocks from developed countries:

  • Amundi Index MSCI World SRI ETF
  • BNP Easy MSCI World SRI Paris-Aligned ETF
  • iShares MSCI World SRI ETF
  • UBS ETF MSCI World SRI ETF
These ETFs contain mostly stocks by larger businesses, while significant percentages of publicly listed companies are medium-size (mid-cap) or small-size (small-cap). To correct for this, we also invest in the following small- and mid-cap SRI ETF:
 
  • UBS MSCI World Small Cap Socially Responsible ETF
Furthermore, all of the ETFs above contain only stocks of businesses in developed countries, while 12.5% of the businesses are in developing countries. Therefore, we also invest in the following SRI ETF that focuses specifically on emerging economies:
 
  •  UBS MSCI Emerging Markets SRI Low Carbon Select ETF
And finally, all of the ETFs above consist of stocks, while real estate is also known to provide a good long-term interest. In addition, the value of real estate investments sometimes moves in the opposite direction of stocks, reducing the overall volatility of an investment portfolio. There are very few ETFs that focus on real estate that score well in terms of ESG/SRI, but the following ETF is one that scores the full five stars on sustainability. Therefore, we also invest in this ETF:
 
  •  iShares European Property Yield UCITS ETF EUR

These ETFs are all good investment choices because:

  1. They exclude investments in companies involved in industries such as Weapons, Tobacco, Gambling, Oil and Coal.
  2. They contain additional measures (extra selections or tilts) to select businesses that score the best on ESG/SRI indicators.
  3. They invest in a large amount of businesses, thus providing excellent diversification. All stock ETFs are so-called ‘index-funds’.
  4. They all have very low annual costs.
  5. They are all adequately liquid.

Here below you is an example of how much the iShares MSCI World SRI ETF invests in several specific sectors such as weapons, tobacco, oil and coal. Similar overviews are available in the investment details of each of the ETFs we invest in.