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

The Investment Policy Committee held its regular semiannual meeting in New York City on April 24, 1980, to review the performance of the Institution's three investment managers and to discuss other related matters.

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

The total market value of the Smithsonian Endowment Funds on March 31, 1980, was $59,741,000, compared to $64,390,000 on December 31, 1979, and $51,759,000 on June 30, 1978.  The change in market value during the period was due to (1) interest and dividends of $239,000 in [[underlined]] excess [[/underlined]] of total return withdrawal of $743,000 (includes managers' fees), and (2) market depreciation of $4,888,000.  Transfer of assets previously managed by BEA to the other managers took place in the first week of the quarter, but no other additions to endowment were made; transfers were $4,091,000 to Batterymarch, $4,097,000 to Fiduciary Trust, and $6,137,000 to Torray & Clark.  The total return performance (includes interest and dividend yield) of the managers since June 30, 1978, is as follows:

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

[[funds]] | Last Quarter 1/1/80-3/31/80 | Last 15 mos. 1/1/79-3/31/80 | Last 21 mos. 7/1/78-3/31/80

Batterymarch | -7/4% | +14.9% | +15.0%
Fiduciary Trust | -4.6% | +19.4% | +24.0%
Torray & Clark | [[underlined]] -6.7% | +13.3% | +17.7% [[/underlined]]
Total* | -5.7% | +14.5% | +16.5%

DJIA | -4.4% | +5.7% | +7.0%
S&P 500 | -4.2% | +13.7% | +17.5%

[[line]]
*Includes BEA from 7/1/78 - 12/31/79

These performance figures displayed above were provided by the managers and are subject to change after receipt of Callan Associates' evaluation.