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 42% of the value of the endowment assets; the investment portfolio makes up the remaining 58%. As of December 31, 2019, the portfolio was valued at $522 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 4.0%; 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.