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At the meeting, the managers provided performance figures for the month of October, which were roughly in line with the market averages (DJIA: -6.9%; S&P 500: -6.5%). The managers also briefed the Committee on their outlook for the economy as well as the securities markets.

[[underlined]] Termination of Investment Manager [[/underlined]]

The Committee was satisfied with the investment performance of Batterymarch, Fiduciary Trust and Torray, but the investment record of BEA trailed the other managers. There was discussion of the degree of latitude allowed individual BEA managers, resulting in varied portfolios and performance results, as compared to the image of consolidated management presented by the firm during the selection process. In view of the comparative performance of this account over the seventeen-month period, which has included both advancing and declining markets, and in view of the internal investment procedures of the firm, which differ from the understanding of the Committee when BEA was hired, the Committee voted to recommend prompt termination of the contract with BEA. Mr. Webb, Chairman of the Executive Committee of the Board of Regents, accepted this recommendation, and shortly thereafter the Executive Committee, acting for the Board, approved the termination of the investment contract with BEA, effective December 31, 1979. Of the approximately $14 million managed by BEA, $6 million will be transferred to the account with Torray, and $4 million each to Batterymarch and Fiduciary Trust. After this transfer, the Institution will once again have three investment managers, as it had from 1971 to 1978.

The Committee discussed the issue of alternative investments for Smithsonian investments. There was general agreement that stocks remain the most undervalued asset at the current time, and that while the Committee will continue to consider the possibility of alternative investments, particularly real estate, no immediate recommendations should be expected.