The Lynde and Harry Bradley Foundation, Inc.

Proposed Change in Fixed Income Manager

Effective September 1, 1999 the Bradley Foundation retained Firstar Investment Research and Management Company, LLC (FIRMCO) to manage a $20,000,000 fixed income portfolio. In addition, FIRMCO managed a short-term bond fund portfolio in connection with the Firstar Trust Company's cash management program until June 30, 1999.

In February, 2000 practically all of the key members of the FIRMCO fixed income management team left and joined Robert W. Baird & Co., a full-service investment banking and brokerage firm based in Milwaukee. Robert W. Baird then organized Baird Advisors, the principals of which are the seven members of the former FIRMCO fixed income management team. Baird Advisors is organized as an institutional fixed income manager.

The fixed income team's defection from FIRMCO resulted from philosophical and strategic business issues with Firstar's new executive team. A principal difference was an overemphasis on growth without sufficient regard to the customers' interest and service needs.

The former FIRMCO fixed income team earned a record and reputation as a premier investment grade fixed income manager. The Bradley Foundation selected FIRMCO in 1999 for the following reasons:

1.	FIRMCO offered a fixed income portfolio that provided diversification with low volatility. This investment process allowed achievement of competitive returns, while always remaining duration and risk neutral to the portfolio's benchmark.

2.	FIRMCO and Capital Guardian have comparable returns but the FIRMCO Enhanced Bond Market Fixed Income Fund has higher grade securities and lower volatility. For example, Capital Guardian's return is associated with a higher concentration of BBB and lower securities (27%) versus FIRMCO's (14%).

3.	FIRMCO was ranked number two in 1998 by Barron's for managing taxable bond funds.

During the period September 1, 1999 through February 2000, FIRMCO achieved returns equal to or better than the target Lehman Brothers US Aggregate Index:

BRADLEY

FDN.	LEHMAN	CAPITAL

FIRMCO	BROTHERS	GUARDIAN

FIXED	US AGGREG.	FIXED

INCOME	INDEX	INCOME

Sept. 1999 - Dec. 1999	1.08%	0.99%	1.73%

Jan. - Feb. 2000	1.25%	0.88%	0.25%

The fixed income investment strategy employed by Baird Advisors will replicate the strategy that was employed by the fixed income team while at FIRMCO.

Bob Berkopec is currently on the Investment Committee of the Milwaukee Foundation. They also use FIRMCO as a fixed income manager. Their investment consultant, Colonial Consulting Corporation, Inc., recently completed an evaluation comparing Baird Advisors to the fixed income team remaining at FIRMCO. When the fixed income team defected, FIRMCO replaced this team using investment professionals from their Mississippi Valley Advisors division. This division came under the umbrella of Firstar Corporation when Firstar acquired Mercantile Bank based in St. Louis. Colonial meet with both Baird Advisors and FIRMCO personnel. It was their belief that the Baird team is far stronger in terms of experience and depth of investment talent. In addition, their strategy was far more clearly articulated and likely to produce strong long term results.

Bob Berkopec also met with the Baird Advisors and was impressed with the organization they developed in a short period of time. Thus far they have generated $3.3 billion in assets under management.

Enclosed is background information about Baird Advisors and Robert W. Baird & Co.

We recommend the Bradley Foundation transfer the FIRMCO fixed income portfolio to Baird Advisors effective as of July 1, 2000.