Viewing page 22 of 95

This transcription has been completed. Contact us with corrections.

20

[[underlined]] Report of the Investment Policy Committee [[/underlined]]

Mr. Burden, Chairman of the Investment Policy Committee, had presented the following report at the Executive Committee meeting. 

[[underlined]] Pooling of the Endowment Funds [[/underlined]] -

Following a resolution of the Smithsonian Board of Regents at the September 24, 1974 meeting, and with the approval of the Investment Policy Committee, the Institution's Endowment Funds have been pooled for investment purposes, although maintained separately for accounting and income distribution purposes.  Retroactive to July 1, 1974, the pooled funds consist of the Freer Fund, the Consolidated Fund, and Endowment Fund #3, and this new fund is known as the Consolidated Endowment Fund. The Special Endowment Fund will be invested separately since it represents current funds rather than a true endowment.

The same three managers continue to manage the funds in the same proportion as before -- amounting to roughly one-third each -- but record-keeping and performance evaluation of each of the managers will be greatly facilitated by the pooling, while investment decisions themselves should be simplified.

[[underlined]] Status of the Endowment Funds [[/underlined]]-

The total market values of the funds, including the Special Endowment Fund, equaled $31,757,000 on December 31, 1974, as compared to $29,007,000 on September 30, 1974.  This represents only a modest recovery toward the market values of $43,897,000 on June 30, 1971 (the date on which the present managers assumed responsibilities) and $53,690,000 on December 31, 1972 (the high point for our funds).