INVESTMENT CUSTODIAN RELATIONSHIP

Firstar Trust Company has been the investment custodian for the Bradley Foundation since its inception in 1985. Chase Manhattan Bank has been the sub-custodian for the international securities. Overall their performance has been satisfactory.

The proposed acquisition of Firstar Bank by Star Banc and certain recent personnel changes appears to have created some uncertainty as to the future direction of Firstar Trust Company. In addition, the use of two custodians has created additional administrative work for the Foundation staff and potential excess custodian fees. Accordingly, it is recommended that the Bradley Foundation obtain proposals from three to four investment custodians. This process would either reaffirm Firstar Trust Company as the preferred investment custodian or identify a new investment custodian better suited to fulfill the needs of the Bradley Foundation.

Some items that are important to the Bradley Foundation include:

1.	A custodian that has the capability to process both domestic and international securities.

2.	Reporting system that will provide financial and investment information for the annual 990- PF tax return.

3.	Experience with processing and reporting alternative investment transactions.

4.	Readily accessible and user friendly comparative performance data and benchmark information.

5.	On line capability to permit customer access to custodian data base.

6.	Security lending program that will maximize the revenue from the Foundation's available lendable securities.

7.	Risk management and investment objective monitoring programs.

8.	Timely preparation and issuance of monthly investment reports.

9.	Enhanced cash management program of pooled investment manager cash funds.

10.	Investment reports that are flexible and adaptable to the reporting needs and account classifications required by the

Foundation.

A change of investment custodian would require extensive planning and coordination to insure a smooth transition. A general time schedule would be as follows:

December 15, 1998	--	Issue request for proposals

January 15, 1999	--	Receipt of proposals

February 26, 1999	--	Selection of custodian

Investment Committee

Meeting

June 30, 1999	--	Complete transfer of all securities and records to new custodian