years ending December 31, 2009, the Pool return is 4.5% compared with the market composite benchmark of 3.3%.


The Finance Committee will continue to monitor the performance of investments and the portfolio overall asset allocation compared to policy, and to review possible future investments. The comparison of these guidelines to the actual portfolio allocation at December 31, 2009, is as follows:

Overview of Current Investment Structure

 

 

Guideline

Portfolio Allocation

Fixed-Income:

 

 

 

U.S. Fixed/Cash

12.0%

7.4%

Non-U.S. Fixed

3.0%

6.4%

Equities:

U.S. Large Cap Funds

25.0%

19.4%

U.S. Small-Mid Cap Funds

12.0%

9.9%

Non-U.S. Stocks — Developed

20.0%

23.6%

Non-U.S. Stocks — Emerging

8.0%

13.8%

Real Estate Investments

5.0%

2.8%

Hedge Funds

12.0%

13.2%

Other Alternative Investments

3.0%

3.5%

Total

100.0%

100.0%

  • See Schedule 2-A on page 21 for details of investments by asset class.

  • Included in the $344.4 million total market value of the Pool as of December 31, 2009, are $6.6 million for the Woods Hole Endowment Funds, $57.9 million for the Institute of Medicine (IOM), and $8.8 million for The National Academies’ Corporation (TNAC). TNAC, which is equally owned by the NAS and the National Academy of Engineering Fund (NAEF), owns and operates the Beckman Center (see note 1 to the financial statements on page 45).

  • Withdrawals of $15.5 million were made to fund the President’s Committee, NAS General Fund’s activity, and prizes and awards for the current period. Additional withdrawals of $2.2 million were made to fund Woods Hole, IOM, and TNAC activity.

NAS General Fund

The NAS General Fund accounts for the activities of the Council, the Officers, and the Members. The primary funding for these activities is received from specified endowment, trust, and other long-term investment funds (see page 16 for detailed listing), normally based on the 5% spending rule.


For fiscal year 2009, the General Fund revenue totaled $7.7 million and expenditures totaled $5.8 million, resulting in a $1.9 million surplus. Comparable figures for fiscal year 2008 were $7.0 million in revenues, $5.4 million in expenditures, resulting in a surplus of $1.6 million.


The NAS Reserve is the accumulation of prior year surpluses, and one of the anticipated and appropriate uses of the NAS Reserve is to provide a cushion for ongoing operations during periods of revenue shortfalls. During 2009, President Ralph Cicerone has prudently spent less than the funds available, returning to the NAS Reserve $1.6 million. There are plans for a comparable degree of fiscal caution in 2010 as well. The remaining balance of the NAS Reserve at December 31, 2009, is $4.4 million. The $1.6 million of the surplus from fiscal year 2009 will be added to this balance in early 2010, for a net NAS Reserve balance of $6.0 million.


The 2009 NAS General Fund activity is summarized as follows:

 

(dollars in thousands)

Revenues:

 

Unrestricted Endowment

$ 5,896

Woods Hole Endowment

401

Communications Initiative Fund

201

Annual Giving from Members

327

Membership Dues

252

Annual Meeting

207

NAS Reserve

385

Short-Term Investment Interest, Royalties, etc.

46

Total Revenue

$ 7,715



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