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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.