The Investment Portfolio’s objective is to provide a continuing and stable funding source to support the overall mission of the Muhammad Subuh Foundation. In addition to the General Funds, the Investment Portfolio includes restricted endowment funds subject to the provisions of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). The Board of Directors has decided to manage the Investment Portfolio on a total return basis, consistent with the applicable standard of conduct set forth in UPMIFA.
The portfolio is invested to achieve a long-term return above inflation (measured by US CPI-U) +3%).
The portfolio is highly diversified across asset class (equities, fixed income, property, commodities and alternatives) and geographies to reduce risk and volatility. The portfolio is mostly invested in a mix of low-cost Exchange Traded Funds (passive investment strategies) and actively managed mutual funds and Investment Trusts.
As the mission of MSF is to support the worldwide growth and long-term development of Subud, the board of directors have decided to follow a global investment strategy investing in the US, developed markets outside the US and emerging markets.
MSF has adopted an Ethical Investment Policy which excludes direct investments in armaments, tobacco, gambling and adult entertainment. The policy adopted by MSF is to select funds that exclude the sectors above. This is not always possible when investing in certain asset classes and markets.