How the HBF can help your ministry finances grow 

Investments for Churches

The Hawaii Baptist Foundation (HBF) provides opportunities for HPBC churches and institutions to benefit from monitored investments. The HBF works to manage and maintain your investments under the oversight of the HBF’s Board of Directors and Investment Committee. Under the oversight of the HBF’s Board of Directors and the HBF’s Investment Committee, we provide two types of investment options: Common stock and Fixed Income.

Studies suggests a 60% equity and 40% fixed income investments is the best mix for long term investments. This allocation usually provides the greatest risk adjusted return while taking into account the volatility of common stock over time. 

We are also available to discuss appropriate changes in allocations according to the amount of risk you are willing to assume as well as the inclusion of other investable funds.  

All investments are received by the HBF in accordance with a signed Funds Management Agreement which clarifies the roles of the parties and explains that for its role the HBF receives a cost reimbursement fee of approximately .5% per year of the amount invested.

Investors receive monthly statements on their earnings. Funds can be withdrawn upon 30 days’ notice.

**Companies known for their involvement with alcoholic beverages, tobacco, gambling, and some objectionable products and services have been screened

Here are our two types of investment options: 

EQUITY POOL (Common Stock)
The Foundation currently invests in a pool of mostly passively managed funds, selected and monitored by the HBF Investment Committee. The diverse selection of funds have been chosen across multiple investment types. 

The total return (income and price change) on investments in common stock are usually more volatile (they fluctuate up and down more intensely) than investments with a fixed income or interest. However, over the long term, investments in common stock usually result in higher returns. 

The total returns of the equity investments, as presently constructed, would have averaged over 13% over the ten years ending in 2019.  Past returns do not inform or predict future returns.

FIXED INCOME
The Foundation currently invests in a pool of funds, selected and monitored by the HBF Investment Committee. 

Investments from Fixed Income funds are much less volatile than those of an equity pool, but the returns are more reliable. This pool is constructed of funds that collectively stress quality, diversification, flexibility, and along with income, across global fixed income economic sectors.  

The returns of the fixed income portfolio, as presently constructed, would have averaged nearly 7% returns over the ten years ending in 2019. Past returns do not inform or predict future returns.