ASSET ALLOCATION REVIEW

Page 2 includes the Bradley Foundation portfolio asset allocation as of April 30, 1999. Equities represent 77.38% of the portfolio versus a target allocation of 75%. The equity portfolio will be reduced by using appreciated stock to fund selected grants and selling equities as needed to fund alternative investment capital calls and other grant payments and expenses.

Some questions and observations regarding the current asset allocation strategy are summarized below:

1.	Is the international allocation worthwhile?

See pages 2 and 3 for article suggesting that international investing still offers powerful diversification benefits for investors.

2.	Is allocation to value style managers worthwhile given the poor returns in recent years?

Included on page 4 is an interesting chart highlighting the wide disparity in stock returns for the various equity classes and styles. The value managers have suffered. However, page 5 includes an article indicating a trend back to value oriented holdings as highlighted by Fidelity actions.

3.	Is there hope for the small- and mid-cap market sectors?

Included on pages 6-10 are two articles discussing the case for small- and mid-cap stock portfolio diversification.

Included on pages 11 and 12 are comments from TCW regarding the TCW Small Cap growth portfolio.

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