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responsibility for the oversight and direction of the management of the Institution's endowment funds was firmly in the hands of the Committee, as it should be. He felt it equally important that the Committee create a public record of the discussion, debate, and decision in matters as involved and important as appropriate investment mix.

Mr. Humelsine registered that, in terms of investment performance, he was not particularly concerned with the possible impact on future donors as the Institution had a very good record of performance and oversight, as Mr. Mott had pointed out. He also felt that an overall allocation of fifty-fifty as between equities and fixed income holdings was a bit too conservative. He recalled that the average holdings during his long tenure at Colonial Williamsburg had averaged approximately sixty percent equities and forty percent fixed at the most.

The consensus of the Committee was that it would like to hear thorough presentations by both Fiduciary Trust and Miller Anderson on their capabilities and performance records in fixed income securities at the next regular meeting of the Committee. A representative of Cambridge Associates will also attend to discuss venture capital opportunities, an interest of Regent Humelsine.

As a final item, Miss Leven requested guidance from the Committee on the future distribution to managers of new money to the Endowment. For example, approximately $1.5 million has recently been received for programs at the Smithsonian Tropical Research Institute and the National Museum of African Art. The Board of Regents will be voting on the acceptance of these gifts establishing endowment funds. The associated cash must then be transferred to managers, assuming Regents' approval at their meeting on February 1.

The Committee agreed unanimously that since any future overall adjustments in asset mix would likely occur by reductions in holdings of the present equity managers, for the time being new money should be split equally between Fiduciary Trust and Miller Anderson. However, since the transfer of fiscal year-end budgeted funds was split equally between Fiduciary and Batterymarch ($1.5 million each), the proposed transfer of $1.5 million should be entirely allocated to Miller Anderson.

The Chairman thanked each member for their continued participation and active interest. He also thanked the Secretary for expressing his concerns and ideas. The next meeting will be scheduled in New York in April 1988.

Whereupon the meeting was adjourned promptly at 2:00 p.m.

ADDENDUM: THE STATUS OF THE ENDOWMENT

The Institution's pooled endowment fund finished fiscal year 1987 with a market value of $232.8 million as of September 30. This compares to a market value of $181.2 million as of the same date a year ago. "Black Monday," October 19, however, saw the value of the Institution's fund drop to $179.0 million. As of December 31, the Smithsonian's Endowment Fund had an unreconciled value of $188.4 million, reflecting a loss of $44.4 million or 19% since September 30. The Dow was down 25%, so the Institution's