I write to update you on MacArthur's endowment and our grantmaking.
MacArthur’s investment performance has been very strong historically. From 2002 to 2007 our investment assets grew from $3.7 billion to $6.9 billion. Like those of most institutional investors, in 2008, our endowment lost value. MacArthur ended the year with investment assets of approximately $5.2 billion, reflecting our spending and a 20 percent decline in the value of our investments.
Still, in keeping with our history and our belief in the importance of steady funding, our grant budget was $260 million in 2008, an increase from $235 million in 2007. We did not reduce or cease our support for any project or initiative due to the weak economy. In fact, we began or continued several new initiatives and deepened our work in longstanding fields of interest, such as peace and security, juvenile justice reform, and affordable housing preservation
We announced a new $68 million foreclosure prevention and mitigation initiative in Chicago. We also increased funding for local arts and culture organizations from $5.5 million to $7 million annually. And we launched a new fund to strengthen international connections between our grantees and organizations around the world.
We intend to maintain our grantmaking budget in 2009 at the same level as in 2008. We continue to remain in close contact with our grantees to learn how they are faring and what we might be able to do to help.
For 30 years, the MacArthur Foundation and our dedicated grantees have been working to build a more just, verdant, and peaceful world. Despite the downturn in the economy, this important work must continue and it will.