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[[underlined]] Report of the Investment Policy Committee [[/underlined]]

Mr. Burden reported that the Investment Policy Committee held its regular semiannual meeting in New York City on November 26, 1979, to review the performance of the Institution's four investment managers.  A summary schedule of endowment holdings and a chart of investment performance are attached to this report.

[[underlined]] Investment Performance [[/underlined]]

The total market value of the Smithsonian Endowment Funds on September 30, 1979 was $64,952,000, compared to $60,617,000 on June 30, 1979, and $51,759,000 on June 30, 1978.  Increase in market value during the last quarter was attributable to: (1) additions to endowment of $815,000 ($500,000 Unrestricted and $315,000 Restricted); (2) interest and dividends of $215,000 in [[underline]]excess[[/underline]] of total return withdrawal of $714,000 (including manager fees); and (3) market appreciation of $3,305,000, or +5.5% of beginning assets.  The total return performance (including interest and dividend yield) of the managers since June 30, 1978, is as follows:

[[4 column table]]
[[headings underlined]]

[[fund]] | Last Quarter 6/30/79-9/30/79 | Last 12 mos. 9/30/78-9/30/79 | Last 15 mos. 6/30/78-9/30/79

BEA | + 3.2% | +6.5% | +11.6%
Batterymarch | +8.7%  | +17.0% | +27.4%
Fiduciary Trust | +7.6% | +16.1% | +25.4%
Torray, Clark | [[underlined]]+7.9% | +21.0% | +28.8%[[/underlined]]
Total Endowment | +6.9% | +14.3% | +22.7%

[[underline]] Market Averages (Total Return) [[/underline]]

DJIA | +5.8%| +7.8% | +15.5%
S&P 500 | +7.7% | +12.5% | +22.3%
Paper Chase* | +9.8% | +13.2% | +20.4%
[[/table]]

*Paper portfolio of Smithsonian Senate of Scientists