The market value of the Foundation's investments exceeded $3.4 billion at the end of the 1983 fiscal year, an increase of almost $700 million over 1982. The Foundation benefited from the strong upward surge in the capital markets and, as a result, the performance of the total fund was 31.8 percent for the year. The nominal value of the Foundation's investments reached its highest level in fifteen years.

The returns for the various components of the Foundation's investment portfolio are shown on the following table:

These returns compare with 44.0 percent for the Standard & Poor's 500 Index, 37.2 percent for the Capital International Index for Europe, Australia, and the Far East, and 15.3 percent for the Lehman Government-Corporate Bond Index. Changes in the deployment of the Foundation's portfolio assets throughout the fiscal year (see opposite page) also contributed to the record performance of the total fund.

Other Investment Developments

The reorganization of the Foundation's internal investment staff was completed in fiscal 1983. The Foundation's international portfolio was extensively restructured, and the Northern Trust Company of Chicago was selected to provide master custodian services for the Foundation's total portfolio. In addition to managing the custody of the Foundation's securities, Northern Trust is providing securities accounting, performance measurement,