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[[underline]] Report of the Investment Policy Committee [[/underline]]
The Secretary called on Mr. Wheeler, Treasurer, who summarized the following report.
The Smithsonian Investment Policy Committee met with our three investment managers on May 4, 1976 for the regular semi-annual review of performance and economic and investment views of the managers. The attached table and chart provide data on the status of the funds as of March 31, 1976, compared to prior periods. In the past quarter ending March 31, 1976 the total market value of the Smithsonian endowment funds has risen to $41,345,000, compared to $37,450,000 on December 31, 1975, and $43,897,000 on June 30, 1971. Adjusted for additions and withdrawals of funds, the recent total value is 95.8% of that on June 30, 1971. While the recent increases in market value are most welcome, these gains, whether measured by total return or otherwise, have not been commensurate with the leading market averages and the performance of the funds since inception (four and three-quarter years) has also--with one exception--trailed the DJIA and S&P's 500 (see table below).
After adjustments for additions and withdrawals of capital, and also reflecting interest and dividend income (i.e., total return), the percentage changes of the portions of the funds under each manager through March 31, 1976 have been:

[[five column table]]

|   | Last Quarter 12/31/75-3/31/76 | Last 15 Mos. 12/31/74-3/31/76 | Last 39 Mos. 12/31/72-3/31/76 | Since Inception 6/30/71-3/31/76 |

| T. Rowe Price | +11/2% | +41.8% | -16.6% | +6/1% |
| Davis, Palmer & Biggs | +9.9% | +31.6 % | -2/1% | +24.9% |
| Thorndike, Doran, P&L | +10.3% | +36.5% | -13.4% | +8.9% |
| Total Smithsonian Consolidated Endowment | +10.5% | +36.4% | -10.6% | +13.9% |

[[underline]] Market Averages [[/underline]]
| DJIA | +18.2% | +62.7% | +11.9% | +34.0% |
| S&P's 500 | +14.4% | +50.7% | -2.6% | +20.3% |
| Value Line | +21.1% | +66.0% | -13.9% | -8.1% |