On December 31, 2009, the Foundation’s portfolio was valued at approximately
$472 million, an increase of $18 million for the year. Spending for grants, administrative
expenses, investment fees and taxes totaled nearly $34.0 million. Total return on the
investments, income plus realized and unrealized capital gains, was 11.5 percent.
Audited financial statements were not completed in time for this printing, but will be
available on the Foundation’s Web site.

The Foundation’s investment objective continues to be securing maximum long-term
total return on its investment portfolio in order to maintain a strong grants program,
while assuring continued growth of its assets at a level greater than the rate of inflation.
To that end, in 2009, after an extensive review by its outsourced investment office, New
Providence Asset Management, the Foundation adopted new investment guidelines and
changed its asset allocation and manager structure. We are confident that the changes
made will allow the Foundation to benefit from the recovery in the financial markets and
to better withstand future periods of negative returns from financial assets.

At the end of the year the Foundation’s asset mix was 49 percent marketable equities,
17 percent fixed income, and a total of 34 percent in private equity and real estate funds,
compared with 35 percent public equities, 15 percent fixed income and 50 percent in
non-marketable alternatives as of the end of 2008.

As of December 31, 2009, Cubic Asset Management, Lateef Investment Management,
Neuberger Berman – The Bolton Group, Sanderson Asset Management, Silchester
International Investors, Sound Shore Management, and T. Rowe Price Associates
manage the Foundation’s long-only equity investments. High Rise Capital Management,
New Providence Asset Management, Pennant Capital Management, Viking Global
Investors and York Capital Management manage the marketable alternatives. In addition,
the Foundation is an investor in venture capital funds managed by Oak Investment
Partners, Brentwood Associates and William Blair Capital Partners. Private equity
partnerships are managed by GE Investments, GCP Capital Partners, Angelo, Gordon
& Co. and Brentwood Associates. Real estate investments consist of funds managed by
TA Associates Realty, Angelo, Gordon & Co., and Heitman/JMB Advisory Corporation.

The Finance Committee and the Board of Trustees meet regularly with New Providence
to review asset allocation, investment strategy and the performance of the individual
investment advisors and funds. Northern Trust Company is the custodian for all the
Foundation’s securities. A complete listing of investments is available for review at the
Foundation offices.