Castilleja Reinforces Its Commitment to DEIJ Through Diverse Investing

(This story appeared in the Spring 2024 issue of Full Circle, Castilleja School Magazine) 

In the 2022 Annual Report, we shared that Kathy Layendecker, then the Associate Head for Finance and Operations, and Alyssa Rieder P’20 ’23, then the Chair of the Board’s Investment Committee, had convened a working group of Investment Committee members with a mission-driven directive.

They were to investigate new possible approaches to diversity, 股本, and inclusion (DEI) in relation to the school’s investment strategies. “To create 股本 is to create more economic opportunities for those who identify as people of color,女士说。. Layendecker. 

为了实现这一目标, in partnership with advisors from Cambridge Associates, the Investment Committee’s task force studied other institutions’ approaches to DEI, and after months of research, they developed an approach to amend our Investment Policy to define, 目标, and track investments in diverse firms. The Board adopted this plan, 结果就是, Castilleja has significantly increased its endowment investments in funds owned or managed by women and people of color. The percentage of our endowment invested with diverse managers is now over 30%—up from 22% in 2022. 供参考, according to a Knight Foundation study of Diversity of Asset Managers in Philanthropy, the average foundation invests approximately 20% of its assets in diverse-owned firms. At the same time, Castilleja’s endowment has enjoyed competitive investment returns; the 8.8% return over the three years ended June 30, 2023, places Castilleja in the upper quartile of like endowments*.

This progress is exciting, and as with any effort to create lasting change, there is still work ahead. However, it is satisfying to see the measurable differences as we continue forward.  作为一个学校, we continue to work to deepen our commitment to DEI by engaging investment professionals who are consistent with this commitment and contribute to the successful growth of our endowment.

Castilleja’s Investment Programs’ Definition of Diverse Firms

  • Firms are considered women-owned or people of color-owned if at least 33% of firm ownership is held by women or people of color.

  • Strategies are considered women-led or people of color-led if at least 33% of senior portfolio manager positions on the team are held by a woman or a person of color.

  • Strategies which specifically seek to invest in organizations and securities that address the needs of diverse groups are also considered diverse.

*Source: Commonfund Study of Independent Schools 2023