March 10, 2014 - The USAW Board of Directors has committed to replenishing the lost principal in the United States Amateur Weightlifting Foundation (USAWF) with a donation of $100,000 per year, finances permitting. Having made the first donation in 2012. The balance of Foundation funds, currently invested in the US Olympic Endowment* fund, is currently over $634,000.
USAWF Investments with the US Olympic Foundation Mutual Fund*
In April 2009 the Board of Directors of the Foundation deposited the full amount of the Foundation holdings, $235,781, with the US Olympic Foundation Fund. That non-profit pool or mutual fund, with investments from many Olympic sports governing bodies, is highly diversified in terms of the types of investments held. While the largest holdings are in the US stock market, there are also significant amounts in interest bearing bonds as well as in hedge funds and private equity holdings. While the stated objective is to provide growth in the valuation of the fund, the substantial diversification should add some additional stability. Nevertheless, it is likely that the value of the USOF mutual fund, and of course the value of the USAWF share in that mutual fund, will vary broadly in line with the US stock market.
Largely as a result of the rebound in the stock market, the USAWF portfolio showed good growth in the months following the initial deposit, increasing from the initial deposit of $235,781 at end-April, 2009, to $296,061 at end-December 2009, a cumulative increase of over 25%.
In spite of some declines in the first half, 2010 was also a strong year for the US stock market. At end-December the S&P 500 was up 12.8% on a year earlier, and the corresponding gain for the Foundation’s investment in the USOF was 12.3%. The gains continued in the first four months of 2011. At end-April the S&P 500 index was up 8.4% from year-end 2010, and the Foundation portfolio up 8.0%. However, uncertainties arising over the strength of the US and the world recovery, along with continuing financial strains in Europe, resulted in pull-backs in global stock markets in May and June of 2011. The corresponding loss in the Foundation portfolio in May was 1.3%, but figures are not yet available for June.
The USAWF portfolio at end-May 2011 was valued at $354.4 thousand or a gain of 22.5% on a year earlier. The total gain in the Foundation portfolio from the initial deposit in the USOF mutual fund at end-April 2009 through May 2011 was 50.3%, or over $118.6 thousand. .
Contributions of the USAWF to the budget of the USAW were very substantial up through 2007, and were taken into consideration along with the disastrous capital losses of 2007 and 2008. Because of those losses, it has been decided to forego any further contributions to the USAW budget as long as the value of the Foundation remains so depressed.