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

FROM:	Robert N. Berkopec	DATE:	August 19, 1999

RE:	Investment Survey Information – Cambridge Associates, Inc.

This memo presents a summary of the 1999 investment performance survey conducted by Cambridge Associates, Inc. The survey included 83 foundations of which 71 were independent foundations and the remaining 12 were operating or community foundations. The eighty-three foundations reported endowment assets as of December 31, 1998 which total $80.1 billion. The Bradley Foundation was one of the survey respondents.

1998	COMMENTS

Bradley	Mean %

Asset Allocation:	Foundation	Survey	•	Bradley Foundation has a greater

Domestic Common Stock	55.3%	49.9%	commitment to equities especially

Foreign Currency Common Stock	22.3	11.4	related to foreign common stock.

77.6	61.3

Domestic Fixed Income	11.1	21.1	•	Bradley Foundation commitment to

Foreign Currency Fixed Income	0.9	1.6	other investments (7.8%) is below

Domestic Cash & Cash Equivalents	2.6	3.6	the mean percent (12.4%).

Other:	•	Bradley Foundation has maintained

Equity Real Estate	-	2.2	a more fully invested position

Public Real Estate	1.5	1.0	with cash and cash equivalents at

Mortgage Real Estate	-	0.1	2.6% compared to the 3.6% mean

Venture Capital	2.6	2.0	amount.

Buyouts

Hedge Funds	-	4.1

High-Yield Bonds	2.5	0.1

Distressed Securities	1.0	1.0

Oil and Gas	-	0.3

Event Arbitrage	1.3

Other	.2	0.3

Total Other	7.8	12.4

100.0%	100.0%

Nominal Average Annual Compound Total Return:

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

1998	97-98	96-98	95-98	94-98

Bradley Fdn.	17.3%	18.2%	17.9%	19.9%	15.3%	•	On a five year basis the

Bradley Foundation is

Gross mean	12.5	15.9	15.9	18.1	14.1	1.2% above the gross

mean. During the last

Ranking	16	16	14	three years the Bradley

Foundation has substan-

Note: Bradley Foundation returns are reported as gross returns	tially exceeded the gross

before deduction of investment management fees.	mean due principally to

the increasing equity

and portfolio allocation

and the termination of poor performing managers.

1998	•	Bradley Foundation has

Bradley	Mean %	had a spending rate

Spending Rate	Foundation	Survey	consistently higher than

(Grants paid + operating	the mean %. As of

expenses + investment	1998	7.79%*	5.15%	December 31, 1998 the

related expenses divided	Bradley Foundation has

by the beginning pool	1997	7.91%	5.40% Est.	total excess qualifying

market value)	distributions available

1996	6.47%	5.44%	from the last five years to be carried forward

*Includes $4,000,000 Stadium	totaling $41,788,000.

commitment paid in December 1998.	The good news is, in spite of the higher spending rate, the Bradley Foundation has exceeded the total target asset growth rate of 4% by $122,461,000 as of July 31, 1999.

1998

Bradley	Mean %	COMMENTS

External Investment Management Expenses	Foundation	Survey

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

externally managed assets as	0.47%	0.56%	cent has been steadily

of 12/31/97 and 12/31/98)	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	higher custodial fees

assets held in custody as of	0.05%	0.04%	associated with foreign

12/31/97 and 12/31/98)	securities.