Investment and Financial Management Strategy
This foundation was established with the goal of creating a better future for the organizations we love, need, and rely on. However, an equally important aspect is the need to set an example for ordinary people to show that investing is a fundamental tool for achieving financial freedom in a capitalist world. A well-fed person asks questions, seeks out like-minded individuals, and builds horizontal connections—creating a civil society without even realizing it.
It should be noted that Hexagonby advocates for socially responsible investing that does not contribute to the main anthropogenic drivers of climate change, as well as for minimizing risk to its assets. Based on the above, the fund’s main investment principles are as follows:
1. Diversification (ETFs, index funds).
2. Long-term investments (5–10 years).
3. A small portion of the portfolio (no more than 10%) may be invested in higher-risk assets.
4. Financing of industries most responsible for anthropogenic climate change—fossil fuels and livestock farming—is not permitted.
5. Financing of companies with a low Social Responsibility Index (SRI) score is not permitted.
6. Investment structure: 54–60% stocks, 36–40% bonds, 0–10% other assets (including cash, metals, individual stocks and bonds, derivatives, cryptocurrencies, etc.). 30% of the stocks must be from European companies.
Accordingly, the portfolio could look as follows:
45–50% – iShares MSCI World SRI UCITS ETF EUR (2B7K)
9–10% – iShares MSCI Europe SRI UCITS ETF (IUSK)
36–40% – iShares EUR Green Bond UCITS ETF EUR (CBUP/GRON)
0–10% – others.
7. All income of the endowment is reinvested.
8. Withdrawals are limited to a maximum of 4% per year of the endowment’s value.
9. Operating expenses must be covered by the endowment; however, as long as they do not exceed 0.4% of the value of assets, they may be covered directly from donations. In such a case, the Foundation’s Board of Directors must ensure that the Foundation’s bank account holds 115% of the organization’s annual expenses.