Tom Reis The W.K. Kellogg Foundation has become an early adopter of mission-related investing and one of the few foundations to pursue MRI initiatives abroad. Led by Tom Reis, director of innovation and design, and Program Director Karen Whalen, the $8.4 billion foundation has carved out a $100 million foray into MRI.
Tom Reis
Kellogg has committed $25 million to an Africa fund of funds managed by Sanlam. It focuses on agriculture and working-class farmers and is expected to produce a market rate return of 10-20%.
Kellogg is investing $75 million in domestic MRI and has hired Imprint Capital Advisors in San Francisco as its advisor. It is putting the money to work quickly through a bond portfolio managed by Community Capital Management and cash deposits with community banks and credit unions. Longer-term, the foundation will invest in a variety of asset classes, including venture capital, loan funds and cash deposits.
The U.S. investments will aim for sufficient returns to preserve capital, protect against inflation, cover consultant fees and pay part of Reis and Whalen's salaries. Kellogg expects the program to return at least 4-6%. The foundation will focus on education and wealth creation efforts targeting small and medium community-based enterprises. This could include educational technologies, support for community centers, day care services and schools, and wealth creation targeting vulnerable children.
The foundation, which was started in 1930 by breakfast cereal inventor W.K. Kellogg, started with all its assets in Kellogg stock. Over time, it has been diversified, and now has a 29% allocation to alternatives.