Viewing page 205 of 320

This transcription has been completed. Contact us with corrections.

SMITHSONIAN INSTITUTION

The relationship of market value to book value was presented, as follows:

Relationship of Market Value to Book Value
[[6 column table]]
| | MARKET VALUE 12/31/66 |MARKET VALUE 9/29/67 |MARKET VALUE 12/29/67|Adjusted Book Value 12/29/67 |Gain/(Loss) from Book|
|------|-----|-----|-----|-----|-----| 
|Freer | $16,809,333 | $18,753,634 | $18,781,445 | $12,412,620 | $6,368,825 |
|Consolidated | 9,308,414 | 10,142,623 | 9,775,410 | 8,863,770 | 911,640|
|General | 1,703,310 | 1,188,735 | 1,180,200 | 1,196,699 | (16,499) |
|Special Endow. | 1,322,810 | 1,375,409 | 1,341,529 | 1,474,233 | (132,704) |
| TOTALS | $29,143,867 | $31,460,401 | $31,078,584 | $23,947,322 | $7,131,262 |
[[/table]]

Note: A net amount of approximately $389,565 was withdrawn from Funds during calendar 1967.

The Committee discussed a suggestion that the firm, Endowment Management and Research Corporation, which is responsible for the investment portfolio of Yale University, be asked to advise the Smithsonian on the investment of a small portion of the endowment funds of the Smithsonian not to exceed $1 million. The Secretary commented that this arrangement would provide a basis for comparing investment results of the two firms.

After discussing factors of possible anticipated alternative investment policies of the new firm versus Scudder, Stevens and Clark, the Committee requested the Secretary and Mr. George S.Johnston to undertake to define the policy now controlling the Institution's investments and an alternative policy which might be followed in order to give greater emphasis to growth.

A statement describing the relationship of the investment counsellors with Mr. Fleming in managing the investments of the Institution is attached to