The Foundation currently invests in a pool of passively managed indexed mutual funds selected by HBF’s Investment Committee. The investments are diversified among multiple equity asset classes. They are screened for companies known to be involved with alcoholic beverages, tobacco, gambling, and other objectionable products and services.
The total return (income an price change) on investments in common stock are usually more volatile (they fluctuate up and down more intensely) than investments in fixed income securities, such as bonds. However, over the long term, investments in common stock usually result in higher returns than in fixed income securities.
The returns of the equity portfolio, as presently constructed, would have averaged over 9% returns over the past ten years ending in 2017. Past returns are no guarantee of future returns.