Mission-Aligned Investments

Our Investment North Stars

Maddox aligns all its assets with its Vision, Mission, and DEIJL Values.

Maddox engages investment partners that embrace and embody its DEIJL Values.

As a learning organization, Maddox actively monitors its investment activities, measures their effectiveness and adapts as necessary to live out our values while meeting our investment objectives.

Mission-aligned investing is the practice of aligning a foundation’s investment portfolio (its endowment) with its values or mission.

Maddox Assets
mission-aligned 71%

56%

of Maddox Fund assets are allocated to investment managers that are majority (>50%) owned by women or BIPOC

67%

of Maddox Fund assets are allocated to investment managers with at least 25% diverse leadership (women or BIPOC)

As of March 31, 2024 – Maddox aspires to having a 100% mission-aligned portfolio. Currently, 29% of our portfolio is in long-term, illiquid investments. It will take time for these more traditional investments to unwind.

Structure

Maddox investments are overseen by an Investment Committee (board members and non-board members) with a wide range of investment experience.  The Investment Committee hired Bivium Westfuller in 2023 to serve as our Outsourced Chief Investment Officer (OCIO).  Bivium Westfuller selects and monitors fund managers that align with Maddox mission and values.
 

Bivium Westfuller

Bivium Westfuller was chosen in 2023 to be the Outsourced Chief Investment Officer (OCIO) for the Maddox Fund.  They are “compelled by the power of financial resources, invested with purpose, to drive a flourishing society and planet.”

Maddox Investment Committee

  • Cathy Bender, Chair
  • David Esquivel
  • Herman Hicks
  • Carrie Green
  • Jennifer Wang
  • Ashlee Davis
  • Jefferson Adcock
  • Sallie Bailey

Investment Policy Statement

Positive Screens
  • Racial and gender diversity, equity and inclusion (which may involve diversity, equity and inclusion
    across employees and corporate boards and/or as part of the investment mandate)
  • Companies that support public education
  • Financial inclusion and capital access for disenfranchised communities
  • Affordable housing
  • Fair labor practices
  • Corporations and businesses with an explicit social/racial justice mission for society, including initiatives for advancement of BIPOC and LGBTQIA+ communities
  • Companies that support local restorative justice practices.
  • Renewable energy, low carbon impact and climate sustainability
  • Investment opportunities that reduce or mitigate the effects of climate change
  • Environmental justice and sustainable communities, including access to things such as healthcare, clean
    water, healthy food, etc.
Negative Screens
  • Prison management, funding and labor (or any investment that encourages Mass Incarceration, or any
    investment that encourages immigrant detention and immigrant or citizen surveillance)
  • Companies that take advantage of underserved or underrepresented populations, including those with exploitative labor practices and discriminatory labor and/or consumer practices targeted at disenfranchised communities, including BIPOC and LGBTQIA+ communities
  • Civilian military-style firearm production
  • Noncompliance with the Community Reinvestment Act
  • Significant product liability and safety violations and risks.
  • Fossil fuels miners/producers and companies with significant carbon footprints
  • Abusive treatment of animals, harm to wildlife or the environment
  • Other investments in industries, sectors or companies that significantly contribute to climate change
    and/or are failing to adapt to climate change realities.
Diverse Managers

The Maddox Fund assesses manager diversity across five areas:

  • Ownership: Diverse people, specifically Black, Indigenous and People of Color, Women, and persons of
    underrepresented communities, hold “Majority Ownership” of the firm (defined as 50% or more).
  • Leadership: Where 25% of the voting members of the Investment Committee and/or portfolio management
    team are Black, Indigenous and People of Color, Women, LGTQ+ and persons of underrepresented
    communities in the finance industry.
  • Diversity and Inclusion Practices: Where the firm has a formal statement of Diversity and Inclusion and has
    adopted hiring policies to attract, retain, and train Black, Indigenous and People of Color, Women, and
    persons of underrepresented communities in the finance industry at all levels in the firm.
  • Outcomes: Where the firm’s investment strategy does not intentionally invest in industries that exploit Black,
    Indigenous and People of Color, Women LGBTQ+ and persons of underrepresented communities.
  • Next Generation Pipeline: Where Maddox makes intentional efforts to promote diverse people to senior roles
    of leadership.

Looking at Impact

The Maddox Fund utilizes an ABC framework that integrates impact measurement into investment decision-making by considering the social and environmental outcomes alongside financial returns.

Act to avoid harm

  • “I have regulatory requirements to meet (e.g., I have to cut my carbon emissions)”
  • “I want to mitigate risk”
  • “I want to behave responsibly”

Benefit Stakeholders

  • “I want to have a positive effect  on the world to sustain long-term financial performance”
  • “I want a world where all businesses try to have a positive effect on society”

Contribute to Solutions

  • “We want to reduce the amount of microplastics in our rivers”
  • “We want to help tackle the education gap”

Investment Impact Classifications

We evaluate the impact of our managers on the following:

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asset allocations 202403

Our Learning Objectives

The Maddox Investment Committee is early in its mission-aligned learning process.  As such, we have identified areas of learning for the year ahead, including:
 
  • Mission-Related Investments
  • Program-Related Investments
  • Impact Reporting
  • Shareholder Activism and Proxy Voting
  • Risk Assessment
  • Fossil-free Investing
  • Net Zero/Just Transition. 

Resources on Mission-Aligned Investments

Here are some resources we found useful.

The Maddox Fund is committed to being deeply rooted in the Middle Tennessee community.  “Undergirding this commitment is the conviction that all human beings are interconnected, not just with one another, but with all of nature – a belief that makes our desire to foster connection and a sense of belonging even more urgent.” We believe that our shared liberation is intertwined—tied in a single garment of destiny.

Through the year, we offer several pathways to communication with the Maddox Fund, including:  Listening Meetings, scheduled 1-on-1 CHAT conversations and surveys,  as well as walking and coffee meetings.  Maddox staff is always available to you.  Please reach out any time.  If you prefer, you can use this link to anonymously submit feedback on a specific staff member or to the organization as a whole.  Your viewpoint is valued and can make us better community members.  Thank you in advance for your comments.