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[[page number]] 32 [[/page number]]

[[underline]] Report of the Investment Policy Committee [[/underline]]
Mr. Burden, Chairman of the Investment Policy Committee, reported that at its meeting on April 29, 1974, the Smithsonian Investment Policy Committee reviewed the performance of the three investment managers for the past quarter as well as since their appointment on July 1, 1971. The table below shows the percentage changes of the endowment funds (adjusted for additions or withdrawals of capital, but without consideration of interest or dividend income) since July 1, 1971, since the market high point in December, 1972, and for the last quarter. For comparative purposes, the Dow-Jones Industrials, Standard & Poor's 500, and the Value Line Composite, an average of 1,470 leading publicly owned common stocks, are also shown. Further detail is given in attachment A.

[[begin four columns]]

|   | Last 3 Months 12/31/73-[[underline]] 3/31/74 [[/underline]] | Last 15 Months 12/31/72-[[underline]] 3/31/74 [[/underline]] | 33-Month Period 7/1/71-[[underline]] 3/31/74 [[/underline]] |
| [[underline]] FREER FUND [[/underline]] |   |   |   |
| T. Rowe Price | -6.0% | -28.9% | -13.9% |
| Thorndike, Doran, Paine & Lewis | [[underline]] -2.8% [[/underline]] | [[underline]] -23.9% [[/underline]] | [[underline]] -10.3% [[/underline]] |
| Total | 5.1% | -27.5% | -12.9% |

| [[underline]] CONSOLIDATED FUND [[/underline]] |   |   |   |
| Thorndike, Doran, Paine & Lewis | 0% | -19.9% | -5.3% |
| Davis, Palmer & Biggs | [[underline]] -7.4% [[/underline]] | [[underline]] -21.2% [[/underline]] | [[underline]] +2.0% [[/underline]] |
| Total | -3.2% | -20.4% | -2.1% |

| [[underline]] ENDOWMENT FUND #3 [[/underline]] (3 Managers) | -4.2% | -17.8% | +10.8% |

| [[underline]] SPECIAL ENDOWMENT FUND [[/underline]] (DPB) | -5.9% | -17.7% | -7.0% |

- - - - -

| [[underline]] Market Averages [[/underline]] |   |   |   |
| DJIA | -0.87% | -17.4% | -5.35% |
| S&P 500 | -3.66% | -20.4% | -6.02% |
| Value Line | +6.58% | -31.21% | -32.55% |