3/25/2024

Dear Campus Community,

We are reaching out today to address concerns that have been raised regarding the University of Puget Sound's investments in companies or entities located in or associated with Israel. As a university, we are committed to being transparent and responsible with our endowment, which funds important academic programs, research initiatives, and student scholarships. We understand that many of you are interested in how we manage our portfolio, and we want to ensure that you have full and accurate information about our investment policy and philosophy guiding our investment decisions for the endowment.

Puget Sound utilizes an external investment manager to manage the endowment based on criteria we establish. Our investment policy prioritizes Environmental, Social, and Governance (ESG) factors alongside achieving a sustainable maximum level of return that is consistent with prudent risk levels. This means we consider our investments' social and environmental impact alongside their financial viability. You can learn more about our endowment policies and investment practices on our website at https://www.pugetsound.edu/finance-administration/university-puget-sound-endowment/financial-support-endowment.

We understand some in our community may advocate for complete divestment from certain sectors. However, our rigorous fossil fuel screening achieves similar goals without sacrificing the endowment's long-term health and ability to fund important priorities. Our fossil fuel screen restricts investments directly in public companies with fossil fuel reserves, as well as in private investments primarily focused on fossil fuels.  ESG issues are considered as part of the investment process for each new investment. This allows our investments to more closely align with our values without compromising our ability to support the university's mission.

It is important to note that investment holdings fluctuate daily.  Using standard reporting methods, our endowment has revealed minimal investments in certain sectors as of the latest reporting period:

  • No investments related to civilian firearms companies.
  • Less than one-half of one percent (0.43%) of the portfolio in investments related to the defense industry.
  • Less than one-twentieth of one percent (0.03%) of the portfolio in investments associated with Israel. None of these holdings are associated with military or defense.

As fiduciaries charged with making decisions that are in the long-term best interests of the university, the Board of Trustees has a duty to manage the endowment responsibly to ensure a strong financial foundation for our future. This requires balancing our values with achieving financial goals to support the university's mission. We believe our current investment strategy achieves this balance by incorporating ESG factors without sacrificing returns.

We hear the concerns some in our community have about our investments. Your voices matter, and we will carefully consider all divestment calls in light of our fiduciary duty. However, managing a large endowment responsibly requires a thorough review process for any potential changes. We will continue this conversation with the Board of Trustees and with you as we strive for transparency and responsible investment practices that align with our university's mission and values.

Isiaah Crawford, Ph.D. | President

Kimberly Kvaal, Ed.D | Executive Vice President & Chief Financial Officer