Case Statement

The Cornell Office of University Investment (OUI) has recognized an opportunity for a sustainable investment mandate in the University Endowment. Specifically, the office would like to identify investment strategies that can meet the financial needs of Cornell's educational mission by investing in established businesses, new ventures, or other investment vehicles that are consistent with the principles of sustainability.

The OUI and the Investment Committee, which oversees the office, emphasize creative strategies that integrate environmental, social or corporate governance (ESG) issues into the investment process. The office will consider a broad range of strategies, from those focused on global concerns to those that give attention to local communities.

The OUI has earmarked $10 million for this new mandate and is now seeking proposals for investment. The office is looking for a clear articulation of an investment strategy that addresses the following criteria:

           • Competitive financial returns
           • Risk management commensurate with target returns

           • Positive social or environmental impact

Particular consideration will be given to strategies that design a portfolio that balances risk and positive returns related to financial, environmental and social factors. The Endowment considers this an alternative investment and is therefore open to multiple asset classes, including but not limited to:

           • Public equities
           • Private equity/venture capital

           • Real assets

           • Fixed income securities

           • Microfinance lending and investing*

           • Loans

Any strategy should consider the following issues:

           • Potential volatility of market value
           • The lock-up or time commitment required

           • Financial returns

           • Fit with the Endowment portfolio

           • The larger scale environmental and social impact of the investment

REGISTRATION is open and portfolio strategies must be SUBMITTED by Monday, March 15, 2010.

*While microfinance lending and investing is not normally part of an endowment's portfolio, it has been included in this competition as examples of sustainable investing.