Viewing page 21 of 119

This transcription has been completed. Contact us with corrections.

-19-

[[4-column table]]
| Last 6 Months | Last Year | Since Inception
| 6/30/75-12/31/75 | 12/31/74 12/31/75 | 6/30/71-12/31/75
| ---------------- | ----------------- | ----------------
[[underline]]T. Rowe Price[[/underline]] | -10.3% | +26.6% | -20.4%
[[underline]]Davis, Palmer & Biggs[[/underline]] | -6.6% | +15.1% | -3.0%
[[underline]]Thorndike, Doran, P&L[[/underline]] | -9.6% | +22.6% | -19.1%
  | ------ | ------ | ------ 
  [[underline]]Total Smithsonian Consolidated Endowment[[/underline]] | -8.8% | +20.9% | -13.9%
| - - - - - - - | |
[[underline]]Market Averages[[/underline]] | | |
  DJIA | -3.0% | +38.2% | -4,4%
  S&P's 500 | -5.2% | +31.4% | -9.6%
  Value Line Index | -9.9 | +44.2% | -39.3%
[[/4-column table]]

As these figures indicated, only Davis, Palmer & Biggs has been able to out-perform the Dow Jones and Standard & Poor's averages over the four and one-half year period, and even their results have lagged behind during 1975.  The records of both Thorndike, Doran, Paine & Lewis and T. Rowe Price are distinctly worse than these averages over the period, although ahead of the broadly based Value Line Index.  While no change in managers is now recommended, this question is scheduled to receive critical attention at the next meeting in early May.

[[underline]]Transfer to Endowment Funds[[/underline]]

The Investment Policy Committee has been advised that the Institution's projected FY 1976 income in relation to its financial commitments, together with its current cash flow picture, should permit the transfer by June 30, 1976 of about $1.0 million from its current funds into endowment funds, and, further, that, subject to approval of the Regents, it would be possible to transfer about $500,000 of such funds at this time.  The Committee believes that conditions in financial markets are now favorable for investments and therefore recommends that $500,000 be made available