Fulfilling - Maine Community Foundation

Investment Performance
The return of the Primary Investment
Portfolio for the five years ended
December 31, 2002 was 3.27 %, which
compares favorably to the Maine
Community Foundation’s custom
benchmark designed to reflect its asset
mix. The Foundation’s total return for
2002 was -7.4 percent; the annual return
for the last three years is -1.6 percent.
Compared to the Standard & Poor’s 500
all U.S. equity index, these returns are
very impressive. The S&P 500 was down
22.1 percent for 2002 and was down on
average 14.5 percent in each of the
last three years.
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
TOTAL
ASSETS
$120,000
100,000
80,000
60,000
40,000
20,000
ASSETS
0
Primary Investment Portfolio
Comparative Average Annual Return
for Periods Ending December 31, 2002
-7.38%
-11.22%
-7.71%
-1.61%
-7.62%
-2.78%
21
A strategy using the S&P 500 alone
would have resulted in a cumulative loss
of almost 40 percent of assets over the
last three years. The Maine Community
Foundation has retained 95 percent of
its total assets over the last three years
because of a disciplined and welldiversified
investment strategy.
It is noteworthy that in the difficult
investment market environment of the
past three years, the return on the
Primary Investment Portfolio was in
the top third of non-profit portfolios
monitored by Cambridge Associates.
The Foundation also ranked in the top
3.27% 1.79% 3.88%
1 Year 3 Years 5 Years
MCF
Custom Benchmark*
Cambridge Median**
*55% Wilshire 5000 Index/30% Lehman Brothers
Aggregate Bond Index; 15% Morgan Stanley
All Country Index excluding U.S.
**Cambridge Associates group of endowments
of similar size
Past performance is not a
reliable indicator of future performance.
MCF Total Assets and Grants 1983 - 2002 (000's)
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
ten percent of the 87 community
foundations recently reporting their
three-year investment results.
The Maine Community Foundation
adheres to the standards and practices
described in the Uniform Management
of Institutional Funds Act (UMIFA)
passed by the Maine State Legislature in
1993. The act encourages long-term
investment strategies that moderate
portfolio value fluctuations resulting
from sudden shifts in interest rates and
market valuations.
1999
2000
2001
2002
TOTAL
GRANTS
$10,000
GRANTS
8,000
6,000
4,000
2,000
0