Investment philosophy

MFC employs prudent investment management practices so that the constituency we serve benefits from the pool of capital invested through the MFC loan program, and from the realized earnings through disbursements to charities.

MFC’s investment objectives are:

To realize a competitive return on investments in order to produce adequate earnings to cover distributions to charities, provide operating revenue, and preserve the value of the gifted capital.
To make investments that will be socially screened in keeping with the convictions of Anabaptist faith.
To make sound and secure investments that will be in keeping with prudent and professional portfolio management.

Socially Responsible Investing (SRI)

Conduct careful research—MFC management will ensure that prospective investments are researched as thoroughly as possible. This is part of its continuing effort to avoid participating in any businesses that are out of harmony with the nature and mission of the church.
Refine criteria regularly – MFC subjects its SRI guidelines to regular review and appraisal by members and staff and will refine its SRI guidelines as a result of new information and understanding.
Dispose of unacceptable holdings – While few companies may reach the ideal in all aspects of social responsibility, the following criteria articulate MFC’s highest expectations for corporate behaviour. Therefore, if MFC receives new information, which reveals that an investment it holds violates its SRI indices, it will sell the holdings within a period of one year. MFC also considers the use of proxies or letters as legitimate ways to voice concern.
SRI criteria – MFC uses, but is not limited to, the following criteria to evaluate companies in which it may consider investing:
1. Respect the dignity and value of all people – MFC will seek to invest in companies that respect and support the basic human rights of all people and who do not attempt to benefit from the misfortunes that may befall disadvantaged individuals or communities. This includes providing fair and sustainable compensation for employees and sub-contractors and extending opportunities to disabled, disadvantaged, and marginalized people.
2. Support world peace – MFC will seek to invest in companies whose activities and practices contribute to peaceful and healthy relationships between individuals, communities, nations, and within society in general. Therefore, MFC will avoid investing in companies whose focus is in the development, production, and sale of weapons and other instruments of war and destruction. MFC will also avoid companies that manufacture abortion related equipment.
3. Promote social betterment – MFC will seek to invest in companies that work towards building healthy families and communities by providing some fulfillment in areas such as housing, environmental control, food, education, and health care. Consequently, MFC will avoid investments in companies materially engaged in the production and sale of liquor, tobacco, pornography, and gaming.
4. Observe management practices – MFC will seek to invest in companies that operate in an honest, compassionate, and responsible manner, value and empower employees, respect workers rights, engage in responsible resource management, employ sound practices of corporate governance, avoid unnecessary litigation and pursue alternative dispute resolution options, and are competitive but respectful of their competitors.
5. Seek church opportunities – MFC will continue to make loans to conferences, churches, and related agencies and institutions within the Anabaptist community. We also look for other opportunities to employ resources in ways that will contribute to the work of the church.