MISSION-BASED INVESTMENT

The term «mission-based investments» is used to designate investments that are closely linked to a foundation's grant-making objectives – i. e., that are closely aligned to with the foundation purpose. Any «value-based investment» would, so to speak, have to take a «back seat»; in other words, it would at best have to support the foundation's mission (purpose) and at the same time not obstruct this purpose by impairing revenues.

In light of the foundation purpose of Gebert Rüf Stiftung, a «mission-based investment» would imply a targeted investment in innovative assets. However, such an investment strategy could not be justified for the following reasons:

  • Investment opportunities closely related to the grant-making objectives of Gebert Rüf Stiftung (university-based support for innovation) are very limited and/or difficult to access. They do not meet the foundation's investment criteria.
  • Innovation-based investments require active investment decisions and more intensive analysis and monitoring without promising higher returns. Moreover, higher administrative costs are incurred at the expense of funds available for grant-making.
  • Furthermore, restricting investments to a few supported projects is detrimental to risk diversification. If investments in supported projects fail, this reduces the funds available for future grants.