Viewing page 39 of 175

This transcription has been completed. Contact us with corrections.

-26-

EXHIBIT 1

[[12 column table]]

[[span 5 columns]] SMITHSONIAN INSTITUTION FY 1989 TOTAL RETURN INCOME PAYOUT RECOMMENDATION [[/span 5 columns]] | [[span 7 columns]] (using "5 year average") [[/span 7 columns]]

  | FY 1985 | FY 1986 | FY 1987 | FY 1988 | FY 1989 4 1/2% Formula | FY 1989 5% Formula | FY 1989 5% Increase | FY 1989 No Change | FY 1989 1.5% Increase | FY 1989 2.5% Increase | FY 1989 3.5% Increase

Payout Rate/Unit | | | | | | | | | | |
  Actual - To Units | 5.50/7.41 | 8.27 | 9.29 | 9.48 | 10.78 | 11.98 | 9.95 | 9.48 | 9.62 | 9.71 | 9.81
  -For investment managers | 0.86 | 1.05 | 1.34 | 1.41 | 1.43 | 1.43 | 1.43 | 1.43 | 1.43 | 1.43 | 1.43
[[summation line across columns 2-12]]
 | 6/36/8.27 | 9.32 | 10.63 | 10.89 | 12.21 | 13.41 | 11.38 | 10.91 | 11.05 | 11.14 | 11.24

Dividend & Interest Yield/Unit | 11.22 | 10.33 | 10.62 | 12.08 | 11.74 | 11.74 | 11.74 | 11.74 | 11.74 | 11.74 | 11.74
  -Total Amount ($1,000's) | 7,235 | 6,982 | 7,388 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578

Amount Reinvested in Principal | | | | | | | | | | |
  -Per Unit | 4.86/2.95 | 0.98 | (0.00) | 1.18 | (0.47) | (1.67) | 0.36 | 0.83 | 0.69 | 0.59 | 0.50
  -Total Amount ($1,000's) | 2,384 | 681 | (3) | 841 | (348) | (1,223) | 260 | 607 | 503 | 434 | 364

Distributions: ($1,000's) | | | | | | | | | | |
  -To Freer | 1,131 | 1,262 | 1,421 | 1,457 | 1,706 | 1,896 | 1,574 | 1,500 | 1,522 | 1,537 | 1,552
  -To Other Restr'd Funds | 1,581 | 1,797 | 2,067 | 2,159 | 2,529 | 2,810 | 2,334 | 2,223 | 2,256 | 2,278 | 2,300
  -To Unrestricted Funds | 1,583 | 2,530 | 2,972 | 3,116 | 3,647 | 4,052 | 3,366 | 3,205 | 3,254 | 3,286 | 3,318
[[summation line across columns 2-12]]

Total to Beneficiaries | 4,295 | 5,589 | 6,460 | 6,732 | 7,882 | 8,758 | 7,274 | 6,928 | 7,032 | 7,101 | 7,170

Investment Managers Fees | 556 | 712 | 931 | 1,005 | 1,044 | 1,044 | 1,044 | 1,044 | 1,044 | 1,044 | 1,044

Total Distributed | 4,851 | 6,301 | 7,391 | 7,737 | 8,926 | 9,802 | 8,318 | 7,972 | 8,076 | 8,145 | 8,214

  Total distributed | $4,851 | $6,301 | $7,391 | $7,737 | $8,926 | $9,802 | $8,318 | $7,972 | $8,076 | $8,145 | $8,214
  Total reinvested | 2,384 | 681 | (3) | 841 | (348) | (1,223) | 260 | 607 | 503 | 434 | 364
  [[summation line across columns 2-12]]
  | 7,235 | 6,982 | 7,388 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578
  Total int. & div yield | 7,235 | 6,982 | 7,388 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578 | 8,578
  [[summation line across columns 2-12]]
proof diff. | 0 | 0 | 0 | (0) | 0 | 0 | 0 | 0 | 0 | 0 | 0

[[/table]]