Socially Responsible RCM

An SRI Investment is a vote of confidence by investors that a corporation can be trusted to earn a profit and commit to being a responsible corporate citizen.

The Reserve Cash Management (RCM) strategy, is a separately managed diversified portfolio of short maturity investment grade fixed income securities.  With banks seemingly riskier than ever and newly surfaced risks in the money market fund industry, such a strategy is an appealing alternative.  However, in addition to a more attractive risk reward tradeoff, we seek to promote a better society by targeting investment dollars to corporate borrowers that meet the requirement of being good corporate citizens.  We define good corporate citizens as being those corporations that have adopted benevolent Environmental, Social, and Governance standards.

In establishing such a mandate, we hope that other investors will adopt a similar investment policy, thereby rewarding socially conscious entities with lower financing rates, and thereby creating an incentive for those with less socially conscious policies to become better corporate citizens.

For our corporate investments, we measure environment, social, and governance responsibility with the following 15 variables:

  • Equal Opportunity Policy
  • Social Supply Chain Management
  • Health Safety Policy
  • Fair Remuneration
  • Percent of Women in Management
  • Human Rights Policy
  • UN Global Compact Signatory
  • CO2 Intensity
  • Energy Consumption
  • Hazardous Waste Output
  • History of Environmental Fines
  • Total Greenhouse Gases
  • Percent of Independent Directors
  • Board Meetings per Year
  • Board Meeting Attendance