The Hartford Foundation’s assets are managed by its corporate affiliate, HFPG, Inc. (the “Corporate Portfolio”) and by the Trustee Banks (the “Trust Portfolio”).
The investment returns, net of investment management fees, for the Foundation’s broadly-diversified endowment portfolios for periods ended June 30, 2017 follows. Average annual returns are shown for periods longer than one year.* The market values of the portfolios shown below represent unaudited figures.
|Corporate Portfolio (HFPG, Inc.):||$393MM|
|Trust Portfolio (Trustee Bank):||$565MM|
How have the Hartford Foundation's investments performed?
The investment environment during the second quarter of 2017 was generally constructive and contributed positively to portfolio returns. The portfolios’ investments in equities domiciled overseas and in growth-oriented equities based in the US were particularly beneficial to portfolio returns. During the one-year period ended June 30, 2017, the S&P 500 index rose 17.9%. Overseas, the MSCI EAFE Index rose 20.3% while the MSCI Emerging Market index rose 23.7%. The Barclays Capital Aggregate Bond Index, a broad measure of the US bond market, lost .3% for the year. Against this backdrop, the Foundation’s portfolios which are invested across a wide variety of asset classes posted the following returns: The Corporate portfolio investment return was 3.6% during the second quarter of 2017 and 15.3% during the one year ended June 30th. The Trust portfolio returned 3.6% and 13.8% over these respective timeframes.
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 2017, the Corporate Portfolio has returned 7.6% per year, net of investment management fees. The Trust Portfolio produced a net return of 7.2% annualized over that period. Over the same timeframe, the CPI+5% measured 7.6% per year, while the S&P 500 index and the Barclays Capital Aggregate Bond Index produced average annual returns of 8.3% and 5.4%, respectively.
*When reviewing these returns, please note that past performance is not a guarantee of future results.