Town Government &
Committees: Scholarship Fund Committee
2013 Annual Report
The Scholarship Committee is charged with the investing of assets on behalf of current and future recipients of the Hingham Scholarship Fund. Scholarship Fund assets at the end of 2013 were $4,033,353 compared to $3,442,226 at the end of 2012. These figures include investment returns, deposits of $33,460 and disbursements for scholarships and administrative fees of $199,950. If net disbursements are included with investment returns, present and future beneficiaries enjoyed a return on investments of + 22% in 2013.
2013 was a mixed year for the major asset classes in the global capital markets. The BarCap Aggregate, a broad investment grade bond index returned -2.0%. The S&P 500, an index comprised of the 500 largest US public companies according to market capitalization, returned +32.4%. The Russell 2000 Index, an equity index that includes a broad array of medium sized US companies had a positive +38.8% return. The MSCI EAFE Index, which measures large company equity performance domiciled in Europe, Australasia and the Far East returned +23.3%.
The asset mix, approximately 70% equities and 30% bonds and money market equivalents has been a consistent strategic target of the fund for the past three years. Given the perpetual nature of the fund's beneficiary interests and the low level of interest rates, the committee feels this mix to be most prudent. In 2013 the fund benefited most from holdings in US and International Equity Mutual funds. The fixed income holdings suffered a small negative return.
The committee voted to provide $200,000 in scholarship awards in 2013. This compares to $160,000 in 2012 and $155,000 in 2011. The Town of Hingham authorized this program in 1975. In the subsequent years over $2 million has been awarded to Hingham High School graduates who successfully complete their first semester of higher learning.
The members of the committee volunteer their time and are listed below. We continue to rely heavily upon the skills and professional acumen of members of the Treasurer's Office for trade implementation and accurate processing of donations and disbursements.
(Appt. By Selectmen, ART 26 ATM 1975)