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-34- Mr. Hohenlohe presented the Report of the Investment Policy Committee. Discussion followed on the Committee's recommendation that under our total return policy a payout of $5.50 be made for the next fiscal year to each participating unit in our endowment funds. This payout, representing a 10% increase over the payout given to these funds in the current fiscal year, would leave roughly $920 thousand for reinvestment into principal. It was noted that with the recent consolidation of the Institution's funds under three investment managers the Institution's investment portfolio is now composed of about 86 percent equities including preferred stocks and convertibles. The following resolution, proposed by the Investment Policy Committee, was approved by the Regents: VOTED that the Board of Regents accepts the report of the Investment Policy Committee and approves a total return income payout rate to the pooled Smithsonian Endowment funds of $5.50 per unit in Fiscal Year 1981. The possibility of funding the underground parking garage planned as part of the South Quadrangle as an investment from unrestricted endowment funds was also discussed. The investment Policy Committee's support for this action, in spite of the relatively modest investment return, was noted; however, action by the full Board on this recommendation was not proposed at this time. The Report of the Investment Policy Committee follows: * * * * *