The Bigco pension plan has invested in dozens of VC funds. The director of the pension plan is preparing his annual report to the Bigco board of directors. Summary information for Bigco’s VC portfolio is given in Exhibit 3-9.

The board has asked for a five-year report of net returns and gross returns by year, plus the compound returns and annualized returns for all five years.

You can assume that all new investments and management fees were paid for at the beginning of the year, and all distributions were paid at the end of the year.

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EXHIBIT 3-9 BIGCO PENSION PLAN, VC PORTFOLIO Year 2010 2011 2012 2013 2014 Beginning value New investments Ending value (before distributions 13,800 6,605 9,063 9,832 12,498 Distributions to LPs Distributions to GPs Management fees 10,000 10,300 13,105 5,563 6,332 2,000 2,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 3,000 500 200 500 200 500 200 500 50 200 200