Since 1993, Cavanaugh Capital Management (CCM) has been providing religious institutions with a unique specialty in the management of socially responsible fixed income portfolios. This specialization, which offers an alternative approach to traditional negative screening, has helped CCM build relationships with religious communities across the country.

CCM works closely with clients to focus and prioritize their views on Socially Responsible Investing (SRI). All CCM portfolios are customized, and as such, each portfolio can be crafted to reflect the distinctive character and values of a particular religious community. (See Fixed Income Portfolio Management – Portfolio Types – Socially Responsible Investing, for more details on CCM’s approach toward SRI).

In 2000, James M. Dugan, CFA of CCM and Rev. Timothy Brown, SJ, then a professor of ethics at Loyola College in Maryland, sent a survey to the membership of NATRI (National Association of Treasurers of Religious Institutes) and ICCR (Interfaith Center on Corporate Responsibility). The purpose of the survey was to gauge investment policies and practices of socially-conscious investors. (See "Socially Responsible Investment Policies and Their Application With Fixed Income Portfolios” for a copy of the survey results). Some of the survey findings include:

• Most SRI polices are equity-oriented.
• In reviewing SRI portfolios, bonds get less attention than stocks.
• Religious institutes have a preference for high credit quality bond portfolios.
• Investors have a desire for socially pro-active investing.

CCM’s portfolio management approach and portfolio attributes are highly correlated to the SRI preferences of many religious communities.