M E M O

TO:	Thomas L. Rhodes

FROM:	Robert N. Berkopec

DATE:	April 28, 1997

RE:	Investment Information

Thank you for the information about the Heritage Foundation. The results for 1996 and the 1st quarter 1997 were very good. Acacia is a significant player and so far has made a positive contribution.

The 80%/100% equity allocation study is quite interesting. However, I would have some reservations regarding a 100% equity allocation for the Bradley Foundation because of the following reasons:

1.	The Foundation's spending obligations, at least for a 1-2 year period, are rather fixed. In a down market, the fixed income portfolio provides a payout reserve funding source to minimize liquidating the equity portfolio at an inopportune time.

2.	Over half of the added value of the 100% equity portfolio allocation occurred in the past 10 years. It would appear the overall market results will most likely return to the historical mean in the future. Because of this added risk and the aforementioned item 1, a 100% allocation for the Bradley Foundation does not appear prudent.

Wilshire has all the information they need to proceed with the Bradley Foundation's asset allocation study. Mike Palmer assures me the study will be completed on time and a draft report will be available around May 23rd for our review and comments. I will also obtain Mike Palmer's observations regarding a 80%/100% equity scenario.

We're off to Paris to visit our son! I will return to the office on May 13th . If any questions arise or actions are needed, please call Karen Dwyer , the Foundation's accountant. I will be periodically in contact with her to resolve questions and deal with other matters.

RNB/ye