The Hyams Endowment
As of December 31, 2015, the Hyams Foundation, Inc.’s total assets (unaudited) were $134 million. Total grants paid in 2015 were $5.5 million.
The endowment is managed to provide consistent, inflation adjusted spending in perpetuity. In order to achieve this goal, the trustees’ objective is to achieve an investment return that exceeds an average annual real (inflation adjusted, and net of fees) return of 5.5% over the long term. The Foundation’s spending policy is to pay the lesser amount of 5.4% of the average value of the endowment over the previous 16 quarters, or 6% of the value of the endowment as of the previous September.
The endowment is managed by the Investment/Finance Committee of the board and by staff. They are assisted by the Foundation’s investment consultants from Cambridge Associates. In addition to traditional investments in US and Global Equities and Fixed Income, the endowment is highly diversified and is invested in Marketable Alternative Assets, Private Equity and Venture Capital and Real Assets.
The Foundation currently has $3.4 million in Program Related Investments (PRIs), made from its endowment, mainly in the form of long-term, very low interest rate loans to support the creation and preservation of affordable housing. Additionally, the Foundation has invested $5 million in affordable housing mortgage backed bonds with Community Capital Management. This is intended to earn market rate returns while also achieving the Foundation’s goal of supporting affordable housing. The Foundation also has invested $750,000 in Certificate of Deposit Account Registry Service (CDARS) in a local bank, Boston Private, also to support affordable housing in the local area, and has its cash accounts at this same bank.
See our Mission Related Investing to learn more about the Foundation’s activities in this area.