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Team Information
Complete before beginning the IPS sections
Instructions: Enter all team members' names, your assigned portfolio phase, and the date you plan to present at the Youth Economic Summit.
Team Name *
Presentation Date *
Portfolio Phase *
Team Members
Faculty / Mentor Advisor
Section I — Purpose & Mission
1
Purpose & Mission Statement
IPS Section 1 — Why does this portfolio exist?
Instructions: Write the formal purpose statement for the Swanson Initiative portfolio in your own words. It should answer: What is this portfolio funding? Who does it serve? How long does it exist? Use the study guide's framework but express it as your team's own commitment. Aim for 3–5 sentences that you could read aloud at the Summit.
Portfolio Purpose Statement *
This statement appears at the top of every IPS and Annual Report. Make it specific to Birmingham-Bessemer. Reference Pratt City, youth ages 10–18, the Swanson Initiative, and perpetual community wealth.
The Community Problem This Portfolio Addresses
Reference the racial wealth gap, Birmingham's history of redlining, and the structural barriers BBYM participants face. This is your "why" for community investors.
The Change This Portfolio Will Create (in 10 Years)
Be specific and bold. How many youth employed? How much community lending? How many scholarships? What will Pratt City look like differently?
2
Investment Objectives & Return Targets
IPS Section 2 — Quantified financial and social return goals
Instructions: Set specific, measurable targets for both financial return and social impact. These become the benchmarks by which the Investment Committee evaluates performance each year. Be ambitious but realistic — targets your team can defend with analysis from the study guide.
Target Annual Return (%) *
Minimum: CPI+2%. Recommend 5–7% for dual mandate. Explain your choice.
Annual Spending Rate (%) *
Standard endowment: 5%. Higher = more current distributions, less growth. Range: 4–6%.
SROI Target (%) *
Study guide standard: 300%+. Higher for community asset heavy portfolios.
Rationale for Return Target
Why did your team choose this return target? How does it balance financial sustainability with community mission? Reference the dual mandate framework from the study guide.
5-Year Financial Goal ($)
Total portfolio value target at end of Year 5.
5-Year Community Impact Goal
Concrete: # youth employed, $ community loans made, # scholarships awarded.
3
Risk Tolerance & Constraints
IPS Section 3 — What risks can the Swanson Initiative bear?
Instructions: Risk tolerance for a community trust differs from a personal portfolio. The community depends on the Swanson Initiative — a catastrophic drawdown threatens scholarships, enterprise grants, and operations. Set conservative limits while leaving room for the long-term growth a perpetual trust requires.
Maximum Acceptable Annual Drawdown (%) *
The largest portfolio loss acceptable in any single year. Phase 1: 10–15%. Phase 2: 15–20%. Phase 3: 20–25%.
Minimum Liquidity Reserve (months) *
Months of operating expenses that must be held in liquid assets at all times. Minimum: 12 months.
Investment Exclusions (ESG Screens) *
List industries or types of investments the Swanson Initiative will NOT hold, even if they offer high financial returns. Consider: predatory lending, tobacco, private prisons, weapons, extractive industries.
Positive Community Investment Screens
Industries and types of investments you PREFER, all else equal. Consider: Birmingham-area employers, minority-owned businesses, affordable housing, clean energy, health equity.
Why These Risk Parameters Are Appropriate for a Community Trust
Connect to fiduciary duty: duty of prudence, diversification, loyalty, and impartiality between current and future beneficiaries.
Section II — Portfolio Design
4
Strategic Asset Allocation
IPS Section 4 — The heart of the portfolio
Instructions: Assign a target percentage to each asset class. Your allocations must total exactly 100%. The CDFI/Impact + Cooperative Equity combined must be at least 15% — this is the minimum community investment commitment. Use the study guide's phase-appropriate model as a starting point, then adjust based on your team's reasoning. Your allocation bar updates in real time below.
| Asset Class | Target % | Acceptable Range | Expected Return | Primary Vehicle |
|---|---|---|---|---|
| 📈 Public Equities | 7–10% | |||
| 📆 Fixed Income | 3–6% | |||
| 🏠 Real Estate | 5–9% | |||
| 🌐 Alternatives / Inflation Protection | Varies | |||
| 💵 Cash & Equivalents | 4–5% | |||
| 🏛 CDFI / Impact Bonds ★ | 3–8% + SROI | |||
| 🍂 Cooperative / CLT Equity ★ | Variable + SROI | |||
| TOTAL ALLOCATION | 0% (must equal 100%) | |||
Rationale for This Allocation
Why did your team weight the portfolio this way? How does the allocation reflect your phase, risk tolerance, and dual mandate? What trade-offs did you make?
Community Asset Minimum Check
CDFI/Impact + Cooperative Equity must total at least 15%. What is your combined community allocation and why is it appropriate for your phase?
5
Expected Portfolio Return Calculation
IPS Section 5 — Show your math
Instructions: Using the weighted average return formula from the study guide, calculate your portfolio's expected return. Enter your allocation % and the midpoint expected return for each asset class. The calculator will compute the weighted contribution and total expected return.
| Asset Class | Allocation (%) | Expected Return (%) | Weighted Contribution |
|---|---|---|---|
| Public Equities | 0.00% | ||
| Fixed Income | 0.00% | ||
| Real Estate | 0.00% | ||
| Alternatives | 0.00% | ||
| Cash | 0.00% | ||
| CDFI/Impact | 0.00% | ||
| Cooperative Equity | 0.00% | ||
| Expected Portfolio Return | 0.00% | ||
Projected Annual Portfolio Return
0.00%
Does This Return Meet Your Objective?
Compare your calculated return to the target you set in Section 2. If it falls short, how would you adjust the allocation?
6
Social Return on Investment (SROI) Projection
IPS Section 6 — Measuring community impact alongside financial return
Instructions: Using the SROI framework from Unit 17, estimate the annual social value your community asset allocations will create. Be specific — every number you enter should be defensible. These projections become the social return benchmarks in your Annual Report.
Total $ in CDFI bonds + cooperative equity per year
Estimated Annual Social Value Created
$0
Estimated Annual SROI
0%
SROI Methodology — Explain Your Numbers *
Where did your estimates come from? What assumptions did you make? Why are these reasonable for the Birmingham-Bessemer context? This section is crucial for community investor credibility.
Non-Monetized Community Benefits
What social value does the portfolio create that cannot be easily monetized? Education outcomes, cultural preservation, political empowerment, community cohesion.
Section III — Governance & Capital Formation
7
Governance Structure & Rebalancing Policy
IPS Section 7 — Who decides, when, and how
Instructions: Define the governance structure that will protect the portfolio's integrity over time. Be specific about who has authority over which decisions. Remember that youth representation is non-negotiable per the study guide — the portfolio exists for Birmingham-Bessemer youth and they must have a voice in governing it.
Investment Committee Composition *
List each seat on the Investment Committee, what background/role they represent, and why that voice matters. Minimum 5 members including at least one BBYM graduate.
Rebalancing Trigger (drift %) *
At what allocation drift % does the committee rebalance? Study guide recommends 5%.
Meeting Schedule *
How often does the Investment Committee meet? Who receives reports?
Spending Policy — How Annual Distributions Are Determined
What formula governs how much the portfolio distributes each year? What are the distribution priorities (operating reserves first, then scholarships, then enterprise grants, etc.)?
Amendment Process
How can the IPS be changed? Who has to approve? What protects against short-term reactive changes during market downturns?
8
Capital Formation Strategy
IPS Section 8 — How the Swanson Initiative raises its first $250,000
Instructions: Design the fundraising plan that turns this IPS into actual investment capital. Be specific: name the foundations, CDFIs, and community investors you will approach. Show the math of how you reach Phase 1 funding ($50,000 minimum). This section is the bridge between the capstone document and real capital formation.
Community Investor Campaign *
How many community investors will you recruit? What is the minimum investment? What events will you use to cultivate them? (Youth Economic Summit, Saturday brunches, church presentations, etc.)
Foundation & Grant Targets
List at least 3 specific foundations or grant programs you will apply to, the grant range, and why they are mission-aligned with the Swanson Initiative.
CDFI & Bank Partnership Strategy
Which Birmingham-area CDFIs and community banks will you partner with for Program-Related Investments or CRA-qualified deposits? What is your ask from each?
Enterprise Revenue Share Model
What % of revenue will BBYM enterprise incubator graduates commit to the portfolio? How many enterprises, at what average revenue, creates what annual portfolio contribution?
Year 1 Capital Target ($)
Phase 1 Capital Target ($)
9
Youth Economic Summit Presentation Checklist
Final preparation — your public commitment to the community
Instructions: Your team will present this Investment Policy Statement at the BBYM Youth Economic Summit. Community members, faith partners, potential investors, and BBYM program graduates will be in the audience. Check off each element as you prepare. The presentation is not a school project — it is a public promise to the community you are serving.
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📚 Complete IPS Document (All 8 Sections)
Every section of this template is completed, reviewed by your team, and submitted to your BBYM advisor at least one week before the Summit.
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📈 Allocation Bar Visual
Your asset allocation is displayed as a clear visual (bar chart or pie chart) that community investors can immediately understand — printed or projected during your presentation.
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🏆 SROI Story — Put a Face on the Numbers
You can name a specific BBYM enterprise, a specific youth worker, and explain how the community asset allocation in your IPS would fund their work and create measurable SROI. The numbers must tell a human story.
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💰 The Ask — Specific Capital Request
Your presentation ends with a specific ask: "We are seeking ___ community investors at $___minimum to launch Phase 1 of the Swanson Initiative portfolio. Here is what your investment makes possible." You have the number memorized and can answer follow-up questions.
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🏛 The Wealth Gap Connection
You can explain, in 2 minutes, how the racial wealth gap was created (redlining, GI Bill exclusion, urban renewal), why individual financial literacy alone cannot close it, and how the Swanson Initiative portfolio is a structural solution — not just personal empowerment.
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⚖ Governance Confidence
Every team member can explain fiduciary duty, the IPS amendment process, and why the portfolio's governance structure protects community investors' capital from short-term decisions. You can answer: "How do I know my investment is safe?"
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👥 Community Voice
A BBYM program participant (not just program staff) speaks during the presentation — sharing what this portfolio would have meant to them personally, and what community wealth means to the next generation of Birmingham-Bessemer youth.
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✅ Follow-Up Plan
After the Summit, your team has a plan for following up with interested community investors — a sign-up sheet, a contact email, and a timeline for the first investment commitment. The Summit opens the door; follow-up closes it.
Opening Statement (2 Minutes — Memorize This)
Write the exact words your team will use to open the Summit presentation. It should hook the audience in the first 30 seconds with a specific story, fact, or question rooted in Birmingham-Bessemer's history and BBYM's mission.
Your Personal Commitment
As a BBYM Financial Literacy Program graduate, what is your personal commitment to the Swanson Initiative — in dollars, time, or community role? This is the final statement of your presentation.