A Look at how Allstate leverages resources as an institutional investor to be a force for good.

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Responsible Investment

Allstate leverages our resources as an institutional investor to be a force for good.

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With over $80 billion in investments, Allstate’s investment decisions represent a critical part of our corporate responsibility footprint. How we choose to invest our assets affects our employees, customers and investors. By investing in various client-mandated portfolios, we protect our ability to pay the claims of our customers and attract further investment.

Definition

Including environmental, social, and governance factors and the long-term health and stability of the company in Allstate investment decisions.

Holistic

Our socially responsible portfolios provide Allstate with strong returns, keep risk at appropriate levels, and weave corporate responsibility into their overall approach.

HIGHLIGHT STORY

Bonds to Better Communities

As Allstate proactively manages over $80 billion of investments, we seek opportunities to direct a portion of our funds to high-quality portfolios with benefits to the communities where we live and work.

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We provide the best value to our shareholders by taking a competitive and holistic approach to investing. Our socially responsible portfolios provide Allstate with strong returns, keep risk at appropriate levels, and weave corporate responsibility into their overall approach. Although the financial impacts of our socially responsible investments may sometimes be difficult to quantify, we see the social benefits come to life in the communities and projects we support.

In 2016, our socially responsible investments included a low-income-housing tax credit portfolio of $441 million. The renewable energy assets in Allstate’s investment portfolio had a book value of approximately $228M. This is predominantly made up of hydro, wind and solar plants in the U.S., but also includes renewable energy investments in the United Kingdom, Latin America and Africa. Additionally, we had a municipal portfolio with a socially responsible focus of $2.1 billion.

Nurturing Diverse Talent in Asset Management

The number of multicultural and diverse households continues to grow, shifting the United States toward a nation where minorities compose a majority of the population. Despite research showing that diverse investing teams consistently outperform less diverse investing teams, women and minorities are still underrepresented in the private equity and real estate private equity investment sectors. Allstate works to secure the continuity of our workforce through a variety of diversity initiatives (Read more about inclusive diversity at Allstate). To ensure our investment team demonstrates superior performance and helps bridge the underrepresentation gap, Allstate created the Diversity Emerging Managers program.

The goal of Allstate’s Diversity Emerging Manager program is to identify the next generation of women and minority investment managers. To do this, we collaborate with Grosvenor Capital Management to select women- and minority-owned firms that demonstrate excellence to participate in the program.

Allstate committed $83 million of the $100 million allocated to the program to participating firms. We carefully assess the returns on the funds we commit for investment.

In addition to our financial commitment, the participating firms also receive development training from Grosvenor Capital Management that covers a wide range of topics related to operating an asset management firm, including management, finance and marketing.

Impact Community Capital

Impact Community Capital was founded to create a bridge between low-income communities in need of investment and insurance companies. It aims to invest policyholders’ capital in profitable investments while at the same time making a positive impact. Since its inception, the sum of ICC’s socially responsible investments in underserved communities has grown to more than $1 billion. The ICC invests in affordable housing, healthcare and economic development.

Since 2000, Allstate has helped ICC increase its ability to finance affordable housing by investing in securitized loans packaged by its Impact Community Impact Loan affiliate. Impact CIL purchases mortgage loans on newly constructed or rehabilitated affordable multifamily housing properties, most of which are eligible for Low Income Housing Tax Credits. When the mortgage pool reaches an optimal size, the loans are securitized. Under the Community Impact Loan Program, Impact CIL has provided more than $800 million of financing on project loans containing more than 33,000 low-income housing units.

 

Education

We emphasize to interns the need to plan for their career through a strong focus on education and networking, and to plan for retirement at an early age—both of which help to achieve long-term financial health.

The Perspectives Charter Schools and Allstate Partnership

In 2010, Allstate Investments began hosting students from Perspectives Charter School, a school on the South Side of Chicago, at our Northbrook, IL headquarters. Over the course of a five-day internship, up to 20 high school juniors are exposed to the broad range of professions at Allstate, with a focus on investing, which is a professional field often overlooked by high school students. This program enables Allstate to deepen our relationship with the Chicago community.

The program introduces the students to investment concepts and what it means to trade for a large institutional investor. Through our Investing Challenge, the students apply these investment concepts by selecting stocks, tracking performance and presenting the results to the Investment Department. The internship also provides the students with opportunities to meet diverse employees from disciplines across the company, including marketing, legal, technology, agency ownership, communications and human resources. We emphasize to interns the need to plan for their career through a strong focus on education and networking, and to plan for retirement at an early age—both of which help to achieve long-term financial health. We are proud of this unique partnership and continue to expand the reach and depth of programming each year.