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Scholarship Fund Committee

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Committees: Scholarship Fund Committee

2009 Annual Report

The Scholarship Committee is charged to invest the assets of Hingham’s Scholarship Fund. Scholarship Fund assets for the year ending 2009 totaled $2,971,412 compared to $2,378,003 at year-end 2008, an overall increase of 24.9%, which represents investment returns plus capital additions and withdrawals. If the distribution to scholarship recipients during the year is added to portfolio returns, present and future scholarship beneficiaries enjoyed approximately 29.86% return for the year.

During 2009 market returns were positive for many asset classes: The Standard and Poor’s 500 index was up 26.46% for the year, The Lehman Brothers (now Barclay’s) Aggregate Bond index was up 5.93%. A simple weighted average of the two broad asset classes similar to Scholarship Guidelines would imply a “balanced” portfolio return on the order of 19.25%.

At the beginning of 2009, the fund was structured with about 65% of its assets in equity securities and about 35% in bonds and money market instruments. The fund’s current asset mix is: 71% equity / 29% bonds and money market. The committee feels that a large proportional exposure to stocks is justified given the perpetual nature of the fund.

The portfolio enjoyed returns significantly higher than would be expected with a static “balanced” portfolio. Special thanks are due to the leadership of our retired Chairman, Frank Gaul, who accelerated the date of our usual semi-annual meeting. This facilitated a portfolio rebalance that took advantage of the distressed equity market.

Income from the fund provided scholarships to 173 students who graduated from Hingham High School in June 2009, totaling $124,000 (In 2008, 172 students received awards totaling $160,000). The Town of Hingham authorized this program in 1975 and in the intervening years a total of over $1.8 million has been awarded to college bound Hingham High School students.

During 2009, the committee continued to implement the guidelines set forth in the Investment Policy Statement for the Scholarship Fund, which was formalized in 2005.

The fund received new contributions from citizens and friends of the Town of Hingham during the year of $5,559. The Committee welcomes continued contributions to the fund in whatever amounts, however, a minimum of $2,500 is needed to establish a separately named scholarship. For contributions less than the minimum the Hingham Scholarship Memorial Fund has been established.

The members of the committee volunteer their time and are listed below. It must be noted that the committee could not properly function without the efforts of the professional employees of the Town of Hingham; in particular Nancy Leahy of the Treasurer’s office who handles the many administrative details involved with donations and distributions throughout the year.

Recently “Retired” Members:
Frank Gaul
James McAllen