M E M O

TO:	Members of the Investment Committee of The Lynde and Harry Bradley Foundation:

T.L. Rhodes, Chairman	J.R. Coleman	T. Considine	M.S. Joyce

I.A. Rader	W.J. Roper	A.M. Taylor

cc:	Dan Schmidt	C. Friauf

FROM:	Robert N. Berkopec	DATE:	July 11, 2000

RE:	Investment Survey Information – Cambridge Associates, Inc.

This memo presents a summary of the 1999 investment performance survey conducted by Cambridge Associates, Inc. with comparative amounts for 1998. The survey included 89 foundations of which 75 were independent foundations and the remaining 14 were operating or community foundations. The eighty-nine foundations reported endowment assets as of December 31, 1999 which total $104.6 billion. The Bradley Foundation was one of the survey respondents.

Bradley Fdn.	Mean % Survey	COMMENTS

Asset Allocation:	1999 1998	1999 1998	•	Bradley Foundation has a greater

U.S. Equity	55.4% 55.3%	51.1% 49.9%	commitment to equities especially

Non-U.S. Equity	21.7	22.3	13.6 11.4	related to foreign common stock.

77.1	77.6	64.7	61.3	The trend of the other foundations

U.S. Bonds	10.3 11.1	19.0 21.1	is toward the Bradley Foundation's higher commitment.

Non-U.S. Bonds	0.2	0.9	1.1 1.6

U.S. Cash & Cash Equivalents	3.4	2.6	2.9	3.6	•	Bradley Foundation investment

commitment in other investments

Other:	(9.0%) is below the mean percent

Equity Real Estate	-	-	1.4	2.2	(12.3%). The segregation between

Public Real Estate	1.2	1.5	1.2	1.0	venture capital and non-venture

Mortgage Real Estate	-	-	0.0	0.1	private equity is not precise.

Venture Capital	-	-	2.1	1.2

Non-Venture Private Equity	4.2	2.6	1.0	0.8	•	Bradley Foundation's cash and cash

Hedge Funds	-	-	3.5	4.1	equivalents at 3.4% compared to the

High-Yield Bonds	2.2	2.5	0.4	0.1	2.9% mean amount was temporarily

Distressed Securities	1.2	1.0	0.8	1.0	higher due to a rebalancing of the

Oil and Gas	-	-	0.2	0.3	portfolio at year end.

Event Arbitrage	-	-	1.1	1.3

Other	0.2	0.2	0.6	0.3

Total Other	9.0	7.8	12.3	12.4

100.0% 100.0% 100.0% 100.0%

Nominal Average Annual Compound Total Return:

1 yr.	2 yrs.	3 yrs.	4 yrs.	5 yrs.	COMMENTS

1999	98-99	97-99	96-99	95-99

Bradley Fdn.	29.0%	23.0%	21.7%	20.6%	21.6%	•	The Bradley Foundation's 29.0% return in 1999 has

Gross mean-survey	18.3%	15.2%	16.7%	16.5%	18.2%	propelled the Foundation

performance ranking to

Bradley Fdn. Ranking 8	10	12	number eight of the

foundation's surveyed.

On a five year basis the

Note: Bradley Foundation returns are reported as gross returns	Bradley Foundation is

before deduction of investment management fees.	3.4% above the gross

mean. During the last

five years the Bradley

Foundation has substan-

tially exceeded the gross

mean due principally to

the increasing equity

portfolio allocation

and the termination of poor performing managers.

Bradley	Mean %	•	Bradley Foundation has

Foundation	Survey	had a spending rate

Spending Rate	consistently higher than

(Grants paid + operating	1999	9.80%*	5.37%	the mean %. As of

expenses + investment	December 31, 1999 the

related expenses divided	1998	7.79%*	5.15%	Bradley Foundation has

by the beginning pool	total excess qualifying

market value)	1997	7.91%	5.40% Est.	distributions available

from the last five years

1996	6.47%	5.44%	to be carried forward

totaling approximately

*Includes $4,000,000 Stadium commitment paid in	$54,800,000. The good

December 1998 and $16,000,000 paid in 1999.	news is, in spite of the

higher spending rate, the

Bradley Foundation has

exceeded the total target

COMMENTS

asset growth rate of 4%

by $160,897,000 as of

May 31, 2000.

Bradley	Mean %

External Investment Management Expenses	Foundation	Survey

(% of average market value of	1999 1998	1999 1998	•	Bradley Foundation per-

externally managed assets as	cent has been steadily

of 12/31/98 and 12/31/999)	0.50% 0.47%	0.47% 0.56%	increasing due to higher

fees associated with small cap managers, performance based fee arrangement and higher fees of newer managers.

Custody Expenses	•	Slightly higher due to

(% of average market value of	1999 1998	1999 1998	higher custodial fees

assets held in custody as of	associated with foreign

12/31/98 and 12/31/99)	0.05% 0.05%	0.03% 0.04%	securities.