Tier 3: Socially Responsible Funds
The only fund that invests according to the values of Reform Judaism
RPB created the Reform Jewish Values Stock Fund (RJV Stock Fund) for plan participants who want to closely align their retirement investments with their Jewish values. It is our strongest vehicle yet for putting your investment dollars to work in building a better world.
The RJV Stock Fund is a high-volatility, socially responsible investment designed to produce principal growth over a longer time period. The fund invests in global stocks that have historically generated above-average returns but also have greater volatility than income-oriented investments.1
- The RJV Stock Fund fee is among the lowest of ESG strategies managed in separate account vehicles, based on eVestment data of 73 managed ESG funds.
RJV Stock Fund details
Benchmark | MSCI ACWI. The index represents approximately 85% of the global equity investment opportunity set. |
|---|---|
Investment Objective | Long-term principal growth while reflecting Reform Jewish values priorities |
Asset Allocation | A mix of stocks of large- and mid-capitalization companies located throughout all major regions of the world (all global developed and emerging markets) |
Who should consider investing? | Investors who want to make a social impact with their investments and have the ability to tolerate short- to medium-term fluctuations in principal due to adverse economic conditions |
Fee2 | 0.11%3 |
- The investment management fee is a blended rate based on the fund’s total pool of assets: 0.15% for the first $10 million in assets and 0.10% for assets over $10 million. For example, if the fund value is $20 million, the annualized fee is 0.125%. Participants also pay an RPB Administration Fee (0.18%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.04%) which fluctuates slightly over time and is passed onto participants at cost.
- Check the RJV Stock Fund fact sheet for the most recent fee.
Jewish tradition teaches that we have a duty to help make our world a better place. Rabbi Tarfon, a great Jewish sage, taught: “It is not your responsibility to finish the work [of perfecting the world], but you are not free to desist from it either.”
– PIRKEI AVOT (Ethics of the Fathers), 2:16
RJV Stock Fund alignment of investments with values
The RJV Stock Fund’s holdings are guided by the resolutions of the Reform Movement.
The fund uses the following investment screens to incorporate the Reform Movement's environmental, social, and governance (ESG) priorities into the portfolio:
We avoid companies based on:
- Issue: Predatory lending, civilian firearms, landmines and cluster munitions, and private prisons
- Industry: Tobacco, private prisons, and coal & consumable fuels
- Geography: Companies that conduct business with the Sudanese government, based on the principles outlined by the Sudan Divestment Task Force
We place greater emphasis on companies with:
- Better-performing environmental, social, and corporate governance practices
- Practices or businesses that have a positive impact on the environment
- Business ties to Israel
In addition to investment screens, we actively participate in shareholder proxy votes through Institutional Shareholder Services, a leader in SRI proxy voting. We also can join shareholder initiatives that promote change in corporate practices related to ESG issues through Aperio Group’s relationship with As You Sow.
RJV Stock Fund’s ESG profile versus the benchmark
- The weighted-average RPB Social Score is specific to the MSCI ACWI.
- Israel is a small percentage of the MSCI ACWI’s investable equity opportunity set.
Fund construction methodology
In partnership with Aperio Group, we created a socially responsible fund that reflects Reform Movement values using the following methodology:
RPB’s Values Task Force (with representatives from RPB, CCAR, URJ, and CSA) and Aperio interpreted and aligned CCAR, URJ, and CSA resolutions with currently available ESG criteria to create a values policy statement for RPB called a Social Profile.
Based on RPB’s Social Profile, we identified a desired Social Score for the fund that was better than the benchmark’s score and also met our financial risk requirements. The Social Score provides a basis for comparing our values-aligned portfolio to its benchmark, the MSCI ACWI.
Aperio used their proprietary model, along with our Social Profile and target Social Score, to select the fund’s securities and determine their relative weightings in the portfolio.
RPB’s Investment Committee reviewed the portfolio and financial risk metrics, and our board adopted the fund.
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