SSgA Introduces Community Investing Index Strategy

The company said 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 composed 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 States.

The USCII 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.

“By 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.