Investment Policy at the Hewlett Foundation (2005)

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H A R v A R I B u s r N E s sI s c x o o r D
9-205-126
R E v ,j A N U A R Y 6 , 2 0 0 6 2

LUIS M. VICE]RA HELEN H, TUNG

Investment Policy at the Hewlett Foundation (2005)
In early January 2005, laurance (,aurie) Hoagland Jr., the vice president and chief invesunent officer of the William and Flora Hewlett Foundation (tIF), arrd hjs investrrent teaanmet to finish their recomnendationsi to the IIF Invesfrrent Corrrrittee of a new asset allocation policv for the foundation's investment porffolio, which was then valued at $5.4 billion. The FIF Investmmt Connittee included three members of the foundation's board and three nonboard merrbers. Hoagland was not a mernber of the committee. It was a war::r Srmday aftemoon in PaIo A-lto, and sunlight inundated the bright, open spacesof the forurdation's building. The building, completed in May 2002, reflected FIF's coxnmitment to erergy corservation aid environ:rrental protection- More gmerally, the buildhg was also a reflection of FIF's approach to philanthropy, based on mcouraging innovation and attaining d€monstable results in the solution of complex social and enwironurental problems. The building was orrly the fifth in the nation to receive a gold-level certifrcadon by the Ll.S. Green Building Council for its outstanding and irmovative "grem" design- IIF had earned this recognition by addressing a wide range of building-related environmmtal issues conceming site design, water and energy efficiency, materia.lsand resources,arrd indoor envAonmartal qua-lity and by creating a healthy and productive workplace. If the investment team went ahead with the proposal, and the Inveshnert Committee approved it, FIF would adopt a new asset allocation policy that induded a substantial reduction in the overall exposure of the invesF€nt porffolio to domestic public equities (from 30% to 21%) and a significant increase in the allocation to absoluteretum sEategies (from 10% to 20%) and to TIPS1(from 7"/oto 13%).The new...
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