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This is a program for the future.  As can be imagined, immediate returns will be small, but, over time, this program can be expected to make an important annual contribution to Smithsonian endowment.

While the Smithsonian could act as trustee and manage the fund itself, this would involve numerous technical procedures and reporting requirements which the Treasurer believes could be performed more suitably by a Trust Institution or Bank.  In addition, the assets of this fund could not legally be commingled with the Endowment Funds of the Institution, but would have to be held and invested independently.  The Treasurer has therefore contacted a number of institutions to obtain proposals for their management of a Pooled Income Fund on behalf of the Smithsonian.  The Treasurer reviewed information submitted by nine banks and, based on the four criteria of prior experience with Pooled Income Funds, investment performance, fee structure, and proximity to Washington, recommends the selection of the United Virginia Bank (a subsidiary of United Virginia Bankshares, Inc.) as Trustee for this fund.  This Institution, with assets of $1.25 billion under management, has headquarters in Richmond with offices in Alexandria, which would be a convenience to donors from the Washington area.  United Virginia has substantially more experience in administering such funds (currently managing some 16 Pooled Income Funds) than other responding banks, and their investment performance shows results for equities better than