Investment Performance

The investment performance of the Foundation's broadly-diversified endowment portfolios for periods ended December 31, 2009 follows:

The recovery in the equity and credit markets during 2009 and during the first few months of 2010 continued to contribute to an increase in the value of the Hartford Foundation's endowment over the past year.

For the year ended June 30, 2010, the Corporate Portfolio returned 13.9% versus a benchmark return of 12.8%, while the Trust Portfolio returned 14.0% relative to its benchmark return of 12.5%. These returns compare with a rise of 14.4% in the S&P 500 index and an increase in the Barclays Capital Aggregate Bond Index of 9.5% over the same timeframe.

The Hartford Foundation aims to achieve investment returns that preserve the long-term purchasing power of the endowment after grants and administrative expenses have been paid. We measure portfolio progress toward this goal by comparing it to the Consumer Price Index plus 5% (CPI+5%).

Since September 1996, when systematic measurement of the Foundation’s investment returns commenced, through June 2010, the Corporate Portfolio has returned 6.8% per year, net of investment management fees. The Trust Portfolio produced a net return of 6.2% annualized over that period. These returns compare with a return on the S&P 500 index of 4.8% per year over the same timeframe. As a result of the equity market decline during the latter half of 2008, the returns of both portfolios moved from a surplus to a deficit relative to our current purchasing power goal of 7.9% per annum. A continued recovery in equities would reverse this trend.

Please note that past performance is not a guarantee of future results.

About the endowment portfolios:

HFPG, Inc. (The Corporate Portfolio)

Created in 1979 as a nonprofit corporation and serves as a corporate affiliate of the Hartford Foundation. The donor funds that are held in HFPG, Inc. are invested with professional investment managers retained by the Foundation’s Investment Committee. Colonial Consulting Corporation, of New York, N.Y., serves as the investment consultant to the Committee. Funds established in HFPG, Inc. are invested on a diversified basis with investment managers selected by the Foundation's Investment Committee at the recommendation of Foundation staff and Colonial Consulting. These managers are chosen based on their specialization in a given asset class after rigorous due diligence to measure key attributes of manager capability and firm stability. Manager performance is monitored regularly by Foundation investment staff and Colonial Consulting, and reviewed with the Investment Committee and the Foundation’s Board of Directors on a quarterly basis.

The Trusts Managed by the Trustee Banks (The Trust Portfolio)

Consists of numerous trusts established by many donors with trustee banks since 1925, each governed by a Declaration of Trust. Today, Bank of America, N.A. acts as the Trustee of most of these component trusts, which are held in a common fund. The Trustee has sole authority to invest in a diversified portfolio with professional investment managers (which may include Bank of America, N.A. or any of its investment management affiliates) chosen on a competitive basis. The other trustee bank is Trust Company of Connecticut, A Division of NewAlliance Bank. Evaluation Associates of Norwalk, Connecticut, serves as investment consultant to the Trust.

Investment manager selection for the Trust is reviewed with the Foundation's investment staff and Investment Committee prior to the retention or dismissal of an investment manager. Investment performance is monitored regularly by Trustee and Foundation investment staff and Evaluation Associates and reviewed by the Foundation's Investment Committee and Board of Directors on a quarterly basis.

These two entities are included in the Foundation's annual audited financial statements and IRS Form 990. Click here to view the audited financial statements. The Hartford Foundation's Form 990 can be viewed at www.guidestar.org, or you can request a copy by contacting the Foundation at 860-548-1888 or hfpg@hfpg.org. Selected consolidated financial information is also shown in the Foundation’s annual report.

The determining factor in setting up a fund with either organization is the inclination of the donor. The service provided by the Foundation is the same. Click here for more information about giving to the Hartford Foundation.

For further information on the Foundation's investment strategy and results, contact Alison Granger, Senior Investment Officer, 860-548-1888 or agranger@hfpg.org.