Professional Investment Management Through a Jewish Lens

The Minnesota Jewish Community Foundation (MN JCF) is one of the largest repositories and conduits for Jewish charitable giving in the Upper Midwest. As such, MN JCF provides the long-term financial underpinnings that ensure our Jewish community’s future continuity through invested funds. We work with individuals, families, and non-profits, to determine optimal fund structure, and investment strategy, and provide professional investment management services.

MN JCF’s subject matter expertise includes deep financial and investment management of charitable assets. Together with our outsourced chief investment officer (OCIO), SEI Investment Management Corporation (SEI), we provide world-class investment expertise. Our fund holders reap the benefits of SEI’s services through MN JCF. SEI is an award-winning OCIO and provides investment management and advisory services. Their Institutional Group is one of the largest OCIO providers to institutional clients with 427 clients worldwide, including many Jewish Community Foundations around the USA.

A Unique Investment Approach

MN JCF provides distinct services and investment structures. As our OCIO, SEI professionally manages our assets day-to-day — part of $1.5 trillion of assets under SEI’s management. SEI supports many institutional clients, including multiple Jewish federations and other Jewish community foundations, bringing a great deal of experience to bear. They have a singular focus on an OCIO approach, a long-term track record as an OCIO, and a significant size that affords their clients with scale-to-manager access and significant cost savings. SEI serves as a fiduciary in our relationship, overseeing investment management and selection in compliance with MN JCF’s Investment Policy Statement and other mutually agreed-upon restrictions and requirements. This autonomy enables them to act in our best interest, leveraging their expertise and judgment to manage our investments. MN JCF entrusts SEI with investment risk management as part of its OCIO responsibilities. Risk management is a critical part of our investment and asset allocation processes. The goal of SEI’s investment approach is to produce a portfolio that achieves risk-adjusted alpha targets while delivering diversification and risk mitigation benefits.

Part of MN JCF’s selection of SEI as our OCIO in 2022 was based on its experience, expertise, and use of screens in its investments. Besides offering an Investment Pool screening large capital U.S. equities for compliance with Jewish values (i.e., the JAIP), SEI screens all MN JCF investments to eliminate any investments in organizations that are “anti-Israel”. On behalf of MN JCF’s Long-Term Growth & Income Pool (LTGI), SEI utilizes the Screened World Equity Fund which is specifically designed to support Israel and screen out companies whose activities directly or indirectly benefit the governments of countries that support terrorism, genocide, or human rights abuses. Another screen SEI utilizes on our behalf is an anti-BDS (Boycott, Divestment, and Sanctions) screen. The anti-BDS screen helps us avoid investing in companies identified as having adopted or implemented a BDS stance, which is a movement that promotes boycotts, divestments, and economic sanctions against Israel.

Unique Investment Options

MN JCF fund holders have four (4) investment options to choose from for investing their charitable dollars in their fund. All assets in MN JCF are pooled for investment purposes, allowing our fund holders to access unique investment products they may not otherwise be able to access on their own. Through our LTGI, fund holders have access to alternative investments (such as hedge funds and private equity) that have the investment profile, albeit with more risk, of providing higher returns without impacting the short-term liquidity needs of the fund holders.

Having your charitable dollars at MN JCF helps align your charitable investments with Jewish values through another local Jewish organization. With two Jewish-values-aligned investment options, we provide opportunities for fund holders to literally invest in Jewish values. In 2021, we opened the Jewish Advocacy Impact Pool (JAIP), expanding our commitment to Jewish values by investing directly in pre-screened companies that share these values. We are the only community foundation in Minnesota and one of the few nationally, that offers an investment option that is specifically aligned with Jewish values. The JAIP is managed by JLens, which utilizes six mitzvot (obligations) in a framework for evaluating companies and engages in long-term investor advocacy on Jewish communal concerns. For many years, we have also offered a social impact investment option through the Israel Bond pool.

 Learn more about our investment options.

Statement on Market Fluctuations

We recognize the recent investment market volatility may be causing concern. Please know that the investment pools in which a fund holder’s fund sit have been thoughtfully constructed by SEI to navigate uncertain times like these. Each investment pool is designed based on specific investment objectives and includes a diversified allocation across asset classes, geographies, and investment styles. This diversification, along with strategic rebalancing and active management where present, is key to managing risk — especially now. The equity allocations have benefited from a balanced approach, including a tilt toward value-oriented investments. Meanwhile, the fixed income strategy remains focused on quality and defensiveness, continuing to play its role as a stabilizer in the investment pools.

We remain vigilant and committed to your long-term goals, actively monitoring developments and adjusting where appropriate.

If you have specific concerns, please contact us at 952.417.2316.