As of 31 December 2008, our net assets were approximately $2.2 billion, which includes approximately $853 million already committed to grantees. Atlantic’s endowment consists of a diversified portfolio of absolute return strategies, private equity investments and cash. The total fund portfolio had a 15.8 per cent loss against a benchmark return of negative 6.3 per cent. We also own interests in hotels, resorts, health clubs and retailers through General Atlantic Group Limited (GAGL), a subsidiary. These businesses account for approximately 6.1 per cent of our net assets. (A)

The financial highlights below present the combined financial results of the eight charities and eight service companies that comprise The Atlantic Philanthropies. All are united by shared charitable objectives and overlapping management. The combined results also include the subsidiaries that hold the charities’ investments and, through General Atlantic Group Limited, a number of operating businesses. These highlights have been extracted from our Combined Financial Statements to provide a convenient and concise overview of our financial position and operating results.

Notes:

A. For accounting purposes, certain operating entities under United States generally accepted accounting principles (GAAP) must be recorded at cost. Atlantic for investment purposes, re-values these entities at market value through an on-going monitoring process of its endowment assets. GAGL represented 6.1% of the endowment assets at year end.
B. The data for years 2008 and 2007 should be read in conjunction with the full audited combined financial statements and related footnotes.
C. In 2008, Atlantic sold all of its holdings in an operating entity for a net profit of $108m. The related assets and liabiities in the net amount of $93m have been reflected in the investment related assets and liabilities for the year ended December 31, 2007.
D. Other assets include such items as property and equipment, investment in associated companies within an operating business, and other operating assets.
E. U.S. generally accepted accounting principles stipulate that grant commitments requiring performance of certain conditions by the grantee be recorded separately from all other donation commitments as Conditional Donations, which must be carried off balance sheet until the conditions are substantially met.
F. Other liabilties include such items as short term financing transactions, general accounts payable and other liabilities including a term loan within an operating business.
G. Donations expense represents the net change, year on year, arising from new donations committed, including conditional donations where the conditional terms have been substantially met during the period, and amounts paid out under existing or new committments during the period net of adjustments for foreign exchange gains or losses and present value discounting.
H. Administrative expenses represent general and administrative costs arising from charitable activities, internal expenses related to investment activities, including staff and staff related overheads, plus various consultancy fees.