SPSSI Investment Update
 
A Membership-Led Call to Enhance SPSSI's Mission Alignment Across Financial Reservations

Alaina Brenick, Ph.D., SPSSI Secretary-Treasurer

Matt O'LONE, CIMA®, Portfolio Manager, Raffa Investment Advisors

As we celebrate SPSSI's 90th anniversary, our leadership has been tasked with reevaluating our investment strategies, with the overarching goal of balancing SPSSI's long-term financial sustainability with our social justice principles. SPSSI has historically always taken social justice into account in our investing, and our current investment practice—Environmental, Social, and Governance investing [1]—ensures we account for issues such as labor practices, human rights, community responsibility, and environmental impact. However, these definitions as well as corporate practices can change over time. We must continually revisit the central question, "How does SPSSI balance ethical and financial considerations (e.g., financial return and organizational health) when our portfolio includes companies whose values or practices conflict with our mission?" It was this question that guided the process through which SPSSI leadership evaluated, and ultimately approved, a member-initiated petition for divestment based on the Palestinian civil society-led Boycott, Divest, Sanction (BDS) movement. As part of SPSSI's ongoing commitment to aligning its investments with its mission and values, the organization approved of taking this important step to further refine its investment approach. Below we provide a brief description of our investment strategy and the changes brought about through divestment.

A Values-Based Investment Approach
SPSSI's long-term reserves are structured to support the organization's mission over time, with a target asset allocation of 70% to stocks and 30% to bonds. The portfolio is invested in individual securities that broadly invest in the U.S. stock market and the broader U.S. fixed income market, while being customized to align with SPSSI's mission-driven guidelines.

These guidelines exclude investments in companies whose primary business activities do not meet socially responsible investing standards (e.g., tobacco, defense, fossil fuels). The portfolio also seeks to minimize exposure to companies engaged in unfair labor practices or those not meeting environmental standards.

Expanding Alignment: Targeted Divestment
Building on this foundation, SPSSI has taken an additional step to further align its investments by divesting from companies identified as complicit in and/or profiting from Palestinian genocide. Prior to the 2026 mid-winter SPSSI Council vote by which divestment was approved, and at the request of the Executive Committee, the Audit and Finance Committee reviewed the financial impact of divesting from a list of companies identified by the Palestinian BDS National Committee and the United Nations as complicit in and/or profiting from genocide. The financial review was carried out under the advisement of our investment management team. SPSSI and Raffa Investment Advisers utilized research and screening frameworks provided by the United Nations (UN), as well as resources from the BDS movement, to inform this process. Applying the BDS+UN screen, SPSSI held 20 companies[2] —including large firms such as Amazon, Microsoft, Caterpillar, and Alphabet[3]—in our portfolio that would require divestment. Projections of the impact of divesting from these companies yielded an estimated additional tracking error (i.e., the potential difference in what the broader market is returning compared to the returns from our portfolio) of approximately 1 percentage point.[4] These 20 companies accounted for roughly 12% of the portfolio as of April 2026 (about $380k at the time of divestment, although we expect the exact dollar amount will fluctuate over time). Although these exclusions may introduce additional tracking error relative to broad market benchmarks in the near term, it's Raffa's belief that divestment from the 20 companies still allows for diversified investment in thousands of other publicly traded companies, and over the long-term the portfolio is still expected to deliver market-like performance while more fully reflecting the organization's values. As a result, Audit and Finance members concluded that divestment would not pose a significant financial risk to the organization. We shared this finding with SPSSI's Executive Committee and Council for vote at the February 11, 2026 Mid-winter SPSSI Council meeting. Divestment was completed in April 2026. 

Implementation and Stewardship
SPSSI works in partnership with Raffa Investment Advisers to inform decisions such as these and evaluate the implications for diversification, risk, and long-term return expectations. This collaborative approach helps ensure that the organization's investment strategy continues to be implemented in a disciplined manner, balancing financial objectives with a strong commitment to mission alignment. Through this partnership, SPSSI's reserves remain both a source of financial strength and a meaningful extension of its commitment to advancing social justice.

General Disclosure:
 This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Any views or opinions expressed are subject to change without notice. All investing involves risk, including the possible loss of principal. There can be no assurance that any investment strategy or approach will achieve its objectives or be successful. Statements regarding expectations, projections, or future outcomes are forward-looking in nature and are based on assumptions believed to be reasonable at the time made. Actual results may differ materially due to market conditions, economic factors, or other variables. Certain information referenced herein is derived from third-party sources believed to be reliable; however, accuracy and completeness are not guaranteed. Screening frameworks and criteria developed by third parties are independently maintained and may change over time. Neither SPSSI nor its investment adviser controls or is responsible for the methodologies or conclusions of such third parties. Indexes are unmanaged and cannot be invested in directly. Index performance does not reflect the deduction of advisory fees, transaction costs, or other expenses that would affect actual investment performance. SPSSI works with an independent registered investment adviser (Raffa Investment Advisers) to manage its investment portfolio. Raffa provides investment advisory services pursuant to an advisory agreement and does not control SPSSI's governance decisions or organizational policies.