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[[underlined]] Investment Policy Committee [[/underlined]]

The Investment Policy Committee met on December 8, 1980, in the offices of Chairman William A.M. Burden.  Present were Messrs. Burden, Linder, Moriarty, Mott, Ripley, Salomon, Wheeler and Hohenlohe.  Unable to attend were Messrs. Austin, Humelsine and Webb.

The Committee reviewed the performance of the endowments for the periods ended September 30, 1980, which is summarized as follows, as well as on the attached charts.

On September 30, 1980, the total market value of the Smithsonian Endowment Funds under outside management totaled $76,460,000, compared to $67,236,000 on June 30, 1980, and $51,759,000 on June 30, 1978.  The change in market value over the last quarter of $9,224,000 was due to:  (1) interest and dividends of $199,000 in excess of total return withdrawal of $743,000, including managers' fees (this excess was reinvested into principal), (2) new cash of $2,704,000, discussed below, and (3) appreciation of $6,321,000, or +9.4% on June 30 assets.  Total return performance (including interest/dividend yield and market value appreciation/depreciation) for the total fund in the last quarter was +11.1%, compared to +9.0% for the Dow Jones and +11.2% for the S&P 500.  Performance by individual managers for recent periods may be seen in the following table as well as on the attached chart B; also shown is the growth in the [[underlined]] principal [[/underlined]] value of the total endowment (including reinvested yield excess to total return income, but adjusted for other new cash) compared to the Consumer Price Index: