- Common investment vehicles grant charities access across multiple asset classes, such as equities, bonds and property, for less money then it would cost to invest in individual securities. They are pooled investment vehicles, which means they are comprised of investments from multiple charity sources. This increases the buying power of the portfolio manager overseeing the fund.
- Common funds can be aligned with a charity's cause. For instance, a fund may be comprised entirely of socially responsible investments, meaning that the fund will avoid investments that may be deemed harmful to the environment or to one's health. A fund might offer an engagement policy that outlines the types of investments it screens out.
- Charities and foundations may discover their investments are locked in a common fund for months or even years. This is because the portfolio management team at a common fund might have the flexibility to "restrict withdrawals" from the fund for a period of time based on the needs of the fund, according to Bloomberg.
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