CAMBRIDGE ASSOCIATES, INC.

Analysis of Foundation Investment Pool Returns

2001

[No Formal Committee Action Required]

This is a summary of the 2001 investment performance survey conducted by Cambridge Associates, Inc. with comparative amounts for 2000. The survey included 72 foundations with endowment assets as of December 31, 2001 which total $97.5 billion. The Bradley Foundation was one of the survey respondents.

Exhibit A includes a summary of the survey information. Comparative information from the Foundation Financial Officers Group (FFOG) investment survey that was previously provided to the Finance Committee is provided where appropriate. Key highlights are:

•	Bradley Foundation continues to have a greater commitment to equities especially related to foreign equities.

Cambridge	FFOG

Bradley Fdn.	Survey	Survey

U.S. Equity	50.7%	43.5%	49.0%

Non U.S. Equity	19.3%	12.9%	13.0%

70.0%	56.4%	62.0%

•	Bradley Foundation's negative -0.7% return in 2001 resulted in a 31st percentile ranking for the Cambridge survey and 25th percentile ranking for the FFOG survey.

•	For 3 years and 5 years the ranking is 39th (35th FFOG) and 23rd percentile, respectively.

•	Bradley Foundation continues to have an above average spending rate (7.55% in 2001 versus survey amount of 6.10%).

•	External management and custodial fees are higher than survey amounts, due mainly to the performance based fee of Acacia.

CAMBRIDGE ASSOCIATES, INC.	Exhibit A

Analysis of Foundation Investment Pool Returns

2001

Bradley Fdn.	Mean % Survey	COMMENTS

Asset Allocation:	2001 2000 2001	2000	•	Bradley Foundation has a greater

U.S. Equity	50.7% 50.8% 43.5% 45.3%	commitment to equities especially

Non-U.S. Equity	19.3 20.0	12.9 13.2	related to foreign common stock.

70.0 70.8	56.4	58.5

U.S. Bonds	8.9 11.2	24.3 21.9	•	Bradley Foundation investment

commitment in other investments

Non-U.S. Bonds	0.2 0.8	0.9 1.3	(15.1%) is above the mean survey

U.S. Cash & Cash Equivalents	5.8 3.3	3.6 3.6	percent (14.8%).

Other:	•	It should be noted for survey

Private Real Estate	1.3 1.3	1.7 1.8	purposes the Bradley Foundation's

Public Real Estate	3.8 2.6	2.2 1.7	REIT portfolio is included in the

Mortgage Real Estate	- -	- -	other category.

Venture Capital	0.1 0.1	1.4 2.5

Non-Venture Private Equity	6.7 6.9	1.1 1.0	•	Bradley Foundation's cash and cash

Hedge Funds	- -	4.7 4.2	equivalents at 5.8% is above the

High-Yield Bonds	1.7 1.5	0.2 0.3	mean survey percent of 3.6%. This

Distressed Securities	1.5 1.3	0.8 0.8	excess is due in part to Acacia's

Oil and Gas	- -	0.3	0.3	19% cash position at 12/31/01.

Event Arbitrage	- -	1.8	1.5

Other	- 0.2	0.6	0.6

Total Other	15.1 13.9	14.8 14.7

100.0% 100.0% 100.0% 100.0%

Nominal Average Annual Compound Total Return:

1 year	3 years	5 years	COMMENTS

2001	1999-2001	1997-2001

Bradley Fdn.	-0.7%	6.5%	11.0%	•	The Bradley Foundation's negative -0.7% return in 2001

Median survey	-2.9%	5.9%	9.7%	resulted in a 31st percentile

ranking. For 3 years and

Percentile ranking	31st	39th	23rd	5 years the ranking is in the 39th/23rd percentile, respectively.

Bradley	Mean %	•	Bradley Foundation has had a

Foundation	Survey	spending rate consistently

Spending Rate	higher than the mean %. As of

(Grants paid + operating	2001	7.55%	6.10%	December 31, 2001 the Bradley

expenses + investment	Foundation has total excess

related expenses divided	2000	7.07%	5.40%	qualifying distributions

by the beginning pool	available from the last five

market value)	1999	9.80%*	5.37%	years to be carried forward

totaling approximately

1998	7.79%*	5.15%	$70,274,000.

1997	7.81%	5.40% Est.

1996	6.47%	5.44%

*Includes $4,000,000 Stadium commitment paid in

December 1998 and $16,000,000 paid in 1999.

COMMENTS

Bradley	Mean %

External Investment Management Expenses Foundation	Survey

(% of average market value of	2001 2000	2001 2000	•	Bradley Foundation

externally managed assets as	percent increased in 2001

of 12/31/2000 and 12/31/2001)	0.72% 0.40%	0.60% 0.64%	due to the increased performance based fee for Acacia.

Custody Expenses	•	The switch to Northern

(% of average market value of	2001 2000	2001 2000	Trust is proving to be

assets held in custody as of	beneficial.

12/31/2000 and 12/31/2001)	0.04% 0.03%	0.04% 0.05%