• About Us
  • Purpose
  • Philosophy
  • Investments
  • Partnership
    • Members
    • Meetings
    • Agreement
    • Governance
• Portfolio
  • Growth
  • Income
• Research
• FAQ
• Forum
• Join Us
  • Agreement
  • Important Forms

Frequently Asked Questions

• Who can join RainFrog? top

  RainFrog is open to anyone with a genuine concern for environmental responsibility and social justice. No prior investment experience is necessary. RainFrog partners may be citizens of any country, and current partners include citizens of the United States, Australia, Canada, New Zealand and Japan. If you are a Canadian citizen, you may also want to consider the Ethical Investors Group, a Montreal-based collective investment organization.

• What is the minimum investment? top

  There is no minimum investment. RainFrog believes that everyone should be able to particpate in socially responsible investment. By working together, the members of RainFrog are able to overcome the obstacles of "small" investment.

• Will I pay a fee or commission when I join RainFrog? top

  There is no fee or commission for joining RainFrog. However, RainFrog pays commissions to assume its investment positions, and all RainFrog members share in those commissions just as they share in the partnership's return. New members or current members adding to their investments pay their share of commissions as a one-time front-end load on their capital contributions. The front-end load varies with the value of RainFrog's investment portfolio, generally going down as the portfolio value goes up and vice versa. RainFrog tries to keep the front-end load on the Growth Portfolio at less than 2%, and on the Income Portfolio at 1% or less.

  Because members pay their share of commissions when they join the partnership, RainFrog does not need to pass on commissions when members withdraw their capital. Thus, members can receive the full value of their capital accounts when they cash out.

• What is the difference between a limited and a general partner? top

  According to RainFrog's Agreement of Partnership, limited partners and general partners achieve the same return on their investments and share all the same rights in the governance of the partnership.  The sole difference is that limited partners enjoy "limitation of liability."  This means that even if the partnership were to incur a debt larger than its assets, the limited partners cannot lose more than the value of their investments in the partnership.  RainFrog's Agreement of Partnership forbids the partnership to borrow, short sell, or buy shares on margin, and so the partnership carries no debt.  However, as a matter of principle, RainFrog strongly encourages each new partner to join as a limited partner.

• What kinds of investments does RainFrog make? top

  The RainFrog Growth Portfolio is composed primarily of equity investments in publicly traded common stock. The Growth Portfolio invests in organic products, recycling, energy efficiency and alternative energy, education, and health care. The Income Portfolio invests primarily in interest-bearing preferred stock, and maintains at least 80% of its investment in investment grade or government backed securities. Industries supported include socially responsible lending, alternative energy, education, and health care.

• How much risk is involved in investing with RainFrog? top

  RainFrog offers two portfolios with different levels of risk. The Growth Portfolio invests primarily in publicly traded equity, and is RainFrog's more aggressive portfolio. The Growth Portfolio aims to achieve an annual yield of 10%, and accepts a substantial amount of risk in the process. The RainFrog Income Portfolio invests primarily in investment grade and government-backed interest-bearing investments. The Income Portfolio aims to achieve an annual yield of 8% with lower risk to investment principal.

  Because each of RainFrog's partners has different investment goals, each partner has a different risk tolerance. RainFrog's partners arrive at their own acceptable risk levels by balancing their investment between the Growth and Income Portfolios.

• What criteria does RainFrog use when considering an investment? top

  RainFrog considers its investments using the triple bottom line of social, environmental, and financial return. We carefully research each potential investment to determine whether it is financially sound and whether it is likely to provide the return we seek. We examine risk and reward, and try to create a balanced portfolio with a competitive return and a reasonable amount of stability.

  On the social and environmental side, RainFrog uses a positive screen evaluation. Not only do we strictly avoid socially and environmentally damaging investments like fossil fuel exploration, weaponry, and tobacco, but we actively seek out investments with positive social and environmental returns.

  RainFrog's investment criteria are constantly evolving. As a member-run organization, we are able to set investment screens that reflect the specific concerns of our members. We pride ourselves on being the most progressive and responsive investment option available.

• Do RainFrog members have a voice in how there money is invested? top

  Absolutely! RainFrog is a member-run investment organization. Our partners research and discuss each potential investment. Then, we vote on our investment options by email at our monthly meeting. No investment is made until every member has had the opportunity to comment and vote.

  RainFrog's participatory investment system means that our decision-making process is slower than that of speculators and day-traders. However, in the long-term investments that RainFrog favors, we believe that care and forethought provide the greatest returns.

• Who does the work involved in managing RainFrog? top

  RainFrog's partners share the work involved in managing the partnership. Each partner contributes one hour of work per year for every US$500 he or she has invested in the partnership. Partners can participate by doing research or ethical screens on potential investments, answering email from prospective partners, following current investments in the news, working on the partnership's web site, or performing any one of a number of day-to-day management tasks. RainFrog's officers will be happy to coordinate partner efforts, and each partner keeps track of his or her time on the honor system.

  Partners who would rather not participate in the management of the partnership can opt instead to pay a 1% annual management fee. Fees collected by the partnership are used to compensate partners who contribute more than their minimum work commitment.

• I am a beginner at managing my own investments. Is RainFrog right for me? top

  RainFrog is an excellent opportunity for novices and experts alike. Experienced investors will have the oportunity to directly manage their own investments, while beginners will get the chance to "learn by doing."

  We believe everyone can benefit from RainFrog's community format. Ultimately however, whether RainFrog is right for you is something only you can decide.

• Can RainFrog accept investment in non-dollar currencies like Euros or Japanese yen? top

  RainFrog can accept capital contributions in US dollars or in Japanese yen. In the case of yen, the contributing member pays for the conversion of their yen to US dollars. Conversion through RainFrog is generally cheaper than members can achieve on their own.

  RainFrog is not currently set up to accept capital contributions in currencies other than yen or US dollars. Members wishing to invest other currencies are responsible for the conversion of those currencies to US dollars. Moreover, all RainFrog capital accounts are denominated in US dollars. Members hoping to achieve savings in non-dollar currencies bear some risk due to the fluctuation of those currencies relative to the dollar. Members will benefit if the dollar strengthens versus their target currency, but may suffer if the value of the dollar falls.

• How do I join RainFrog? top

  Go to the Join Us page to see the step by step process by which you can become a RainFrog member.

• How do I cash out? top

  Partners can withdraw some or all of their investment from RainFrog at any time. To make a withdrawal, a partner must notify the treasurer two weeks prior to the meeting at which the withdrawal will become effective. This gives the partnership time to decide which assets should be liquidated to pay the withdrawing partner.

  After the withdrawal become effective, the partnership has 20 days to make payment to the withdrawing partner. Payment may be faster than this if the selected assets can be readily liquidated.

  RainFrog is never entitled to deny a partner's request to withdraw funds. However, the total time from the notice of withdrawal to payment may be more than one month. It is best not to invest any money that you think you might need on short notice.

  RainFrog is happy to provide a list of past and current partners who can describe their experiences in withdrawing funds from the partnership.