Some HPBC churches and institutions from time to time can benefit from monitored
investment opportunities. HBF makes available such opportunities. Under the oversight
of HBF’s Board of Directors, HBF’s Investment Committee, has structured two options.
One option is a pool of diversified investments in interest bearing fixed income
debt obligations and the other is a pool of well diversified portfolios of common
stock. Companies known for their involvement with alcoholic beverages, tobacco, gambling,
and some other objectionable products and services are not included in (screened
out of)the portfolios.
In deciding what portion to invest in which options, a primary selection criteria
is often how long the funds are expected to be invested. This is because the short
term volatility of common stock prices might make it difficult to withdraw funds
at a gain when the money is needed.
A secondary selection criteria has to do with how much risk the investor is willing
to assume. The assumption of more risk usually results in higher returns. For example,
the returns on investments with banks that are FDIC insured (not one of HBF’s offerings)
are usually comparatively low. On the other hand, investments in common stock equity
usually provide a comparatively high return in the long run, but are subject to short
term price volatility.
Academic research usually suggests that the best mix between equity and fixed
income, for long term investments, is 60% in equity and 40% in fixed income investments.
That is the allocation that over time usually provides the greatest risk adjusted
Hawaii Baptist Foundation is available to discuss appropriate allocations for
the circumstances of particular investable funds.
All investments are received by the HBF in accordance with a signed Funds Management
Agreement that clarifies the roles of the parties and explains that for its role
the HBF receives a cost reimbursement fee of .5% per year of the amount invested.
Investors receive statements of earnings monthly or quarterly, as desired. Funds
can be withdrawn upon 30 days’ notice.
More information about the two investment pools overseen by the Foundation can
be seen at: