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SMITHSONIAN INSTITUTION   1553

FREER FUND

Original Book Value   $1,958,591.42

Total Book Value, December 31, 1961   10,048,989.94

Gain in Book Value   $8,090,398.52

Market Value December 29, 1961   $16,086,223.73

Gains on Securities now owned   $6,037,233.79

Profit on Securities sold from

December 31, 1960 to December 31, 1961   $814,897.71

Summary of Profits on Securities sold from Consolidated and Freer Funds from December 31, 1960 to December 31, 1961:

Consolidated Fund $260,408.88

Freer Fund $814,897.71

$1,075,306.59

During the year ended December 31, 1961, the turnover from sales and purchases and the collection and reinvestment of maturing obligations in securities of the Smithsonian Institution amounted to $5,077,312. The net profit accruing to the Institution from these transactions amounted to $1,075,307.

The net amount received during the year from profits in the Freer Fund, which have been reinvested amounted to $814,898. The Consolidated Fund was increased by $270,413, of which amount $260,409 was derived from the investment of profits on sales of securities. The remainder was made up of new bequests and the investment of accumulated income.

The members of the Board of Regents know, as I have said each year since I have had the privilege of serving as Chairman of the Executive Committee, that I will always use my best judgment in this work for the Smithsonian Institution. I feel sure, however, that the members of the Board will agree with me that at a time such as the present, no individual or group of individuals can be infallible in matters related to the investment of trust funds.

Respectfully submitted,

/s/ Robert V. Fleming
Chairman

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