About the Endowment Portfolios
Whether to set up a fund with HFPG, Inc. or in trust with the Hartford Foundation for Public Giving is at the discretion of the donor. The service provided by the Foundation is the same. Learn more about giving to the Hartford Foundation.
These two entities are included in the Foundation's annual audited financial statements and IRS Form 990.
Created in 1979 as a nonprofit corporation, HFPG, Inc. serves as a corporate affiliate of the Hartford Foundation. The assets which comprise the donor funds that are held in HFPG, Inc. are held in custody at Northern Trust and are invested with professional investment managers retained by the Foundation with oversight by the Investment Committee. Colonial Consulting, LLC 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.
This 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 these component trusts, which are held in a common fund. Bank of America also serves as the custodian of the trusts held in the Trust portfolio. 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 KeyBank. NEPC, LLC of Boston, Massachusetts, 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 the Trustee and Foundation investment staff and the consultant and reviewed by the Foundation’s Investment Committee and Board of Directors on a quarterly basis.
Investment Philosophy and Managers
We are patient, long-term investors and maintain broad diversification within the investment portfolio. Outside investment professionals, selected and monitored by staff, the consultants, the Investment Committee and/or the trustee bank, manage the endowment. We seek to retain sophisticated, operationally-sound, institutionally-oriented investment management firms which actively control the growth of their firm’s assets under management. We also strongly prefer that the investment professionals have a significant ownership interest in their employer. These investment professionals should be experienced, focused, disciplined, patient, and consistently able to balance the risk and reward of the securities they purchase and the portfolios they manage. We pay close attention to the management fees we pay for these services.
THE ALLOCATION OF THE ENDOWMENT AMONG AVAILABLE ASSET CLASSES HAS A KEY INFLUENCE ON LONG-TERM INVESTMENT RESULTS.
The endowment’s asset allocation is reviewed on a continual basis, and portfolio rebalancing to long-term asset allocation targets is conducted when needed.
The Hartford Foundation’s assets are managed by its corporate affiliate, HFPG, Inc. (the “Corporate Portfolio”) and by the Hartford Foundation Trust (the “Trust Portfolio”).
The investment returns, net of investment management fees, for the Foundation’s broadly-diversified endowment portfolios for periods ended December 31, 2019 follow. Average annual returns are shown for periods longer than one year.
*Rounded to the nearest $1 million. The market values of the portfolios shown represent unaudited figures.
** These annualized investment returns are net of investment management fees.
HOW HAVE THE HARTFORD FOUNDATION'S INVESTMENTS PERFORMED?
In spite of investor concerns related to global trade wars, particularly between the US and China, the potential for a no-deal Brexit and other challenges in the political arena, it was a good year for investors. Stocks, bonds, gold, and oil all rebounded from their 2018 declines to deliver strong gains in 2019.
Against this backdrop, the Foundation’s broadly diversified Corporate Portfolio posted a 2019 investment return of 17.3%, while the Trust Portfolio returned 19.4%. Longer-term results are shown in the chart above.
*When reviewing these returns, please note that past performance is not a guarantee of future results.
The Foundation’s Form 990 and past financial statements are available for public review.
FINANCIAL STATEMENTS (PDFs)