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Ford Foundation Annual Report 1990







Introduction to Financial Statements

INVESTMENTS

The market value of the Foundation's investment portfolio at the end of fiscal 1990 was $5.3 billion, down from $5.7 billion at the close of fiscal 1989. The investment return on the total portfolio was negative 1.6 percent for the 1990 fiscal year. Equity portfolios, including both U.S. and international securities, had a negative 8.1 percent return. By comparison, the Standard and Poor's 500 Stock Index declined 9.3 percent, and the Morgan Stanley Capital International Equity Index for Europe, Australia, and the Far East declined by 27.2 percent. Fixed income portfolios returned 6.9 percent for the year compared to 6.8 percent for the Shearson Lehman Government/Corporate Bond Index. The allocation of funds to various asset classes is shown in the table below.

PORTFOLIO COMPONENTS (as of September 30)
1990 1989
Market value Percent of total Market value Percent of total
(in millions) (in millions)
Marketable securities
U.S. equities $2,250.5 42.8% $2,465.6 43.7%
U.S. fixed income 1,631.5 31.0 1,900.1 33.6
International securities 406.7 7.7 369.8 6.5
Short-term investments 761.9 14.5 715.5 12.7
Investments with limited marketability 210.1 4.0 200.0 3.5
$5,260.7 100.0% $5,651.0 100.0%

INCOME AND EXPENDITURES

Dividends and interest income amounted to $314 million, or $7 million above fiscal 1989. Total program activities (primarily grants to organizations and individuals, direct charitable activities, and program support) were $271 million, representing an increase of $26 million over the previous year. General management expenditures and expenses incurred in the production of income were $17 million and $15 million, respectively, representing a roughly $1 million increase in each case over the previous year.