Anchor Fund

Purpose

The Anchor Fund is a long-term, values-aligned investment portfolio designed to:

  • Provide stable, predictable income to sustain The Collective’s daily operations.
  • Build capital reserves for future growth and strategic initiatives.
  • Act as a financial buffer against the cyclical and unpredictable nature of film and TV production revenues.

Core Principles

  1. Passive Management
    • Use low-cost, diversified index funds and ESG-compliant vehicles to minimize risk and administrative overhead.
  2. Values Alignment
    • Apply strict ESG screens and negative filters to avoid investments that contradict The Collective’s mission (e.g., fossil fuels, exploitative labor).
  3. Liquidity Planning
    • Maintain sufficient liquid assets to cover operational needs and emergency payroll financing.
  4. Long-Term Horizon
    • Focus on steady growth and capital preservation over 10+ years, with annual rebalancing.

Target Allocation (Yale-Inspired, Passive & ESG-Compliant)

Asset Class Allocation Role in Anchor Fund
Global ESG Equities 20% Growth engine for long-term capital appreciation
Green Bonds / Sustainable Fixed Income 10% Stability and predictable income
Impact Private Equity 20% Higher returns aligned with social/environmental goals
Sustainable Real Assets 20% Inflation hedge and steady cash flow (e.g., renewable energy, green real estate)
ESG Hedge / Absolute Return 10% Downside protection during market volatility
Cash & Short-Term ESG Instruments 5% Liquidity for operations and payroll financing
Community Impact Funds 15% Direct alignment with The Collective’s values and regional development

Revenue Strategy

  • Annual Drawdown: 3–5% of portfolio value to fund The Collective’s operations and payroll financing pool.
  • Dividend & Interest Income: From ESG equities and green bonds.
  • Impact Returns: From renewable energy and community investments.
  • Capital Appreciation: Reinvested for long-term growth.

Governance & Oversight

  • Investment Policy Statement (IPS): Defines objectives, ESG criteria, and prohibited sectors.
  • Investment Committee: Includes The Collective’s leadership and external advisors for fiduciary oversight.
  • Reporting: Quarterly performance reports and annual impact audits.
  • Rebalancing: Annually to maintain target allocation and liquidity.

Risk Management

  • Diversification across asset classes and geographies.
  • Liquidity buffer for operational needs.
  • Stress testing for market downturns.
  • Strict ESG compliance to avoid reputational risk.

Implementation Roadmap

Phase 1 (Months 1–3):

  • Draft IPS with ESG screens and liquidity targets.
  • Select passive ESG ETFs and impact funds.
  • Secure custodian and reporting systems.

Phase 2 (Months 4–6):

  • Deploy initial capital (e.g., $5M–$10M).
  • Begin quarterly reporting and compliance checks.

Phase 3 (Months 7–12):

  • Integrate annual drawdown for operations.
  • Publish first Impact & Performance Report.