Our Investment Approach
The Foundation’s investment strategy seeks to realize strong long-term returns while aligning with our values.
A sound investment strategy is crucial in our work to create an equitable and just Minnesota where all communities and people thrive. Our Investments team seeks to realize strong returns while minimizing volatility, ensuring that the Foundation and our donors are able to support community-led solutions for years to come.
Our Investment Philosophy
The Foundation aspires to envision an equitable, just and vibrant Minnesota where all communities and people thrive. The Board believes mission aligning the investment portfolio is a critical part of their fiduciary responsibility to and financial success of the Foundation.
To that effect, the Investment Committee (and Staff) shall adhere to the following practices:
- Investment returns should be sufficient to maintain the Foundation’s spending policy in perpetuity
- Investments should be aligned, not in conflict, with the Foundation’s grantmaking in the community
- Investments must be evaluated in line with the Foundation’s purpose in the ways they can/cannot inspire generosity, advocate for equity, and invest in community-led solutions
- Engagement is critical to changing the institutional investing industry and the Foundation should play a leadership role in this industry
Expanding Ways to Invest in Minnesota’s Future
In 2025, our Investments team introduced two new portfolios that expand the ways charitable institutions, nonprofits and donor advised fundholders can align their charitable capital with community priorities.
Both portfolios are place-based and invest in Minnesota nonprofits, mission-driven businesses and other initiatives that advance outcomes across the state through the lens of the Social Determinants of Health (SDOH). Each is managed by the Foundation’s Investments team and draws on decades of experience in impact-first and mission-related investing.
Both portfolios invest across multiple asset classes and offer opportunities for charitable institutions and Foundation donor advised fundholders to participate.
The Future Ready Portfolio focuses on community impact first, aiming to preserve charitable capital while supporting efforts that improve outcomes for all Minnesotans. This strategy targets a 1% return and is designed for those who want their investments to prioritize measurable community benefit.
To learn more about the Future Ready portfolio, email our team.
Email Us
The Momentum Minnesota Portfolio is a place-based, multi-asset investment strategy. Momentum Minnesota invests charitable capital in Minnesota-based opportunities with the goal of earning competitive returns while supporting projects and organizations that strengthen communities across the state.
To learn more about the Momentum Minnesota portfolio, email our team.
Email UsMeet the Investments Team
Concessionary Investments
The Future Ready Portfolio evolved from our previous experience managing concessionary investments. For nearly 40 years the Foundation has used concessionary investments, commonly referred to as Program Related Investments (PRIs), to amplify giving. The Foundation has used this tool to complement traditional grantmaking by offering another way to have an impact on the community — by investing in a loan.
PRIs have a social and capital return, as they provide below-market-rate loans to organizations that might not have access to traditional financing.
These community investments provided a modest return, allowing the Foundation to reinvest dollars and giving our donors a unique opportunity to invest in the community. The historic rate of return has been between 1-3% in addition to a return of principal at the end of the loan term.
Principles for Responsible Investment
The Foundation is a signatory to the Principles for Responsible Investment instituted by the United Nations. We were the first community foundation in the United States to become a UNPRI signatory.
- Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
- Principle 6: We will each report on our activities and progress towards implementing the Principles.
In the News
June 10, 2025
Chief Investment Officer Shannon O'Leary named to Kayo’s Top 25 Women in Endowments and Foundations list - Kayo Conference Series
May 15, 2025
Community Lenders Fear Tightening of Credit With Trump Cuts - The Chronicle of Philanthropy
April 18, 2025
Chief Investment Officer Shannon O'Leary named to the Power100 Allocators in Endowments and Foundations Part II list - Blueprint Capital Advisors LLC
March 10, 2025
Relationship Capital Investing at Saint Paul & Minnesota Foundation With: Shannon O'Leary - Capital Allocators with Ted Seides Podcast
September 9, 2024
Chief Investment Officer Shannon O'Leary named one of Pensions & Investments' 2024 Most Influential Women in Institutional Investing - Pensions & Investments
July 15, 2024
The Diverse Investing Collective Announces Advisory Board - Austin Daily Herald
Oct. 17, 2023
Investing in Diversity - I So Appreciate You! podcast
Sept. 25, 2023
Why Local Foundations Should Invest in Local Venture Funds - Twin Cities Business
May 18, 2023
The Source for Asset Owners: Live - Diversity, Equity & Inclusion in Manager Selection - Nasdaq
Feb. 14, 2023
Chief Investment Officer Shannon O'Leary ‘Saying It Out Loud’ - SEI Novus Podcast
Aug. 16, 2022
Saint Paul & Minnesota Foundation's O'Leary outlines mission-oriented investment themes - Alternatives Watch
July 25, 2022
Saint Paul investment officer focuses on diversity, ESG because it's good for business - Star Tribune
The Role of Investments 101
Learn how the Saint Paul & Minnesota Foundation deploys values-aligned practices to manage our investment portfolio.
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Beyond ESG: Sustainable Investment
Chief Investment Officer Shannon O’Leary participated in a global panel discussion on sustainable investment trends.
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Values-based Investing: What It Is and How We Do It
Chief Investment Officer Shannon O’Leary discusses how the Foundation’s investment strategy promotes equity.
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A Reparative Approach to Affordable Housing and Wealth Building
Learn how this Black-led land trust is creating homeownership and economic opportunities in Saint Paul.
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First U.S. Community Foundation to Join World’s Leading Responsible Investment Proponent
The Saint Paul & Minnesota Foundation becomes the first U.S. based community foundation signatory to the United Nations Principles for Responsible Investment.
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