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[[table, 6 columns]]
--- | --- | --- | [[underlined]] Annualized [[/underlined]] --- | ---
--- | [[underlined]] Last Quarter | Last Year | Last 2 Years | Last 3 Years | Since 6/38/78 [[/underlined]]

Batterymarch | +10.2% | +14.4% | +12.0% | +12.1% | +14.5%
Fiduciary | +12.4% | +14.6% | +4.8% | +11.8% | +14.1%
Torray | [[underlined]] +14.6% | +20.9% | 15.5% | 13.6% | +16.2% [[/underlined]]
Composite SI | +12.1% | +15.7% | +8.9% | +12.1% | +13.5%*

DJIA | +12.0% | +12.1% | +4.0% | +6.9% | +8.2%
S&P 500 | +11.5% | +9.9% | +3.4% | +9.0% | +11.4%
Balances Fund** | +11.8% | +13.7% | +5.3% | +8.8% | +10.6% [[/table, 6 columns]]
___
*Includes BEA from 6/30/78 - 12/31/79
**Based on S&P 500 (80.3%); Salomon Brothers Index (11.4%); Treasury Bills (8.3%), reflecting historic asset mix of SI Composite.

The holdings of the three portfolios are shown on attachment A; as of September 30, 1982, 73% of the fund was invested in common stock, a reduction from higher levels earlier in the year.  The relative total return performance of each manager, as well as the total Smithsonian fund, is charted on attachments B and C in comparison to the Dow Jones and S&P 500 market averages.  As indicated, the Smithsonian endowments continue to outperform the market.

Representatives from Fiduciary Trust projected a slow and weak economic recovery in 1983, carrying into 1984; while further good returns are expected from bonds in the near term, this firm prefers equities in the longer term, particularly growth companies as well as those benefitting from lower inflation and interest rates.  Torray Clark's portfolio as of the meeting date was approximately 45% in cash equivalents, representing the result of their usual pattern of selling equities into a rising stock market; reinvestment back into stocks is expected, but no specific securities were identified.  Batterymarch intends to shift their portion of the endowment into stock which, when compared to the market averages, have higher yield, reduced institutional ownership, higher book-to-price ratio, greater cyclical exposure and lower capitalization.

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