says the strategy is the only offering that seeks to match the returns and
characteristics of the U.S. Community Investing Index (USCII).
According to a press release, the underlying investment approach for SSgA’s U.S. Community Investing Index strategy is to buy and hold securities with the aim to minimize turnover and transaction costs, trading only when the composition of the Index changes or when cash flow activity occurs in the strategy.
Launched in 2005 by
the F.B. Heron Foundation in collaboration with Innovest Strategic Value
Advisors, the U.S. Community Investing Index is comprised of more than 300 large-
and mid-cap companies spanning all sectors that have demonstrated successful
and proactive engagement with economically underserved populations in rural and
urban communities in the United
employs a methodology that positively evaluates the community investment and
engagement performance of a broad universe of companies, using three main
factors: strategic alignment, workforce development and wealth creation, and
community engagement and corporate philanthropy, the announcement said.
positively screening for companies with strong track records in community
investing, the U.S. Community Investing Index can be considered part of the
second generation of the evolution of environmental, social and governance
(ESG) investing,” said Luther M. Ragin, Jr., chief investment officer, the
F.B. Heron Foundation, in the announcement.