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©2017 Lili‘uokalani Trust

Investment Portfolio

The Trust's global investment portfolio provides asset and income diversification.

Our mission-related programs are funded in their entirety from revenues generated by the endowment assets of the Liliuokalani Trust.  Hawai’i real estate represents 73% of the value of the endowment assets; the investment portfolio makes up the remaining 27%.  As of April 30, 2016, the portfolio was valued at $192 million, invested across a broad range of investment asset classes.

At our core we:

  • Remain focused on the long term; perpetuity is our greatest advantage
  • Have a valuation approach to investing
  • Believe in prudent concentration
  • Partner with exceptional people

Our objectives are to:

  • Create quality income streams in perpetuity
  • Manage and create value on assets
  • Minimize risk through a diversified asset base and income stream
  • Realize a real return above the Trust’s spending rate in order to grow and preserve purchasing power

The policy portfolio is a theoretical portfolio allocated among asset classes in a mix that is judged to be most appropriate for the Trust from both the perspective of potential return and risk over the long term. It differs from a traditional stock/bond portfolio, including allocations to less traditional and less liquid asset categories, such as private equity, real estate and absolute return strategies. 

Historical spending from the endowment assets averages 3.8%; this exceeds the current minimum required distribution of 3.3%.  Spending on mission-related activities helps to achieve our goal of assisting as many Hawaiian children as we can, in perpetuity.