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The Finance Committee herewith submits a detailed report of all of the actions of the agent,
State-Planters Bank and Trust Company, Richmond, Virginia, for the period January 25, 1948, to January
25, 1949.

This attached report speaks for itself as to all of the transactions in connection with the
handling of the Consolidated Endowment Funds for the above period.

However, there are certain outstanding features and comparisons which the Committee desires
to bring to the attention of the Board.

During 1948 a large amount of inherited securities were turned over to the Consolidated Endowment
Fund. It became necessary to sell many of these securities in order to strengthen the portfolio.
From these transactions there resulted a book value lose of $35,322.27. However, this book
value loss was more than offset by additions to the portfolio. As of January 25, 1948 the book value
of all of the securities was $4,560,245.47. As of January 1, 1949, the book value of all of the securities
was $5,076,440.00.

The steady process of eliminating small units and those securities which for one reason or
another were not considered as proper for retention has continued. In all $504,663.24 of securities
have been sold.

They have been replaced by other securities and these replacements have shown an improved
yield of 3.94% as compared with a yield of 3.30% on those sold. Some securities of prime quality
have been sold such as the large block of City of Baltimore and County of Prince George bonds. But
here the purpose has been to recapture a premium of $6,000.00.

There have also been certain issues which have either matured or been called.

The replacements have in the main been additions to units already held. Those new securities
added have been of a conservative nature mainly insurance company and utility preferreds with one
railroad preferred.

For the period covered by this report (January 25, 1948, to January 25, 1949) there was
turned over to the Bursar the sum of $189,183.33 net income, after all deductions and expenses. This
compares with $173,397.00 for the corresponding period in the previous year (January 25, 1947 to January
25, 1948) although of course, there were substantial additions to the fund during 1948.

The actual yield improved to a figure of 4.02% (on a monthly weighted average of the book
value - giving a weight of 12 to the first month of the year and declining to a weight of 1 to the
last month of the year - in order to give proper consideration to the additions to the book value at
various times during the year). While we do not have an exact comparison with last year on a similar
monthly weighted average, yet the gross yield last year as related to book value was 3.98%.

This improvement in yield has not resulted from any decided shift in the character of the
investments. The percentages as to taxes, bonds, stocks, etc., remain only slightly changed. Diversification
has been improved.

Attention is called to the fact that restrictions have been placed upon the sale of many of
the securities in the portfolio. These have been to a limited extent identified by letters on the
margin of the agency report, attached hereto. It is planned to elaborate on the meaning of these
identification marks. Of course restrictions placed upon the sale of these securities by the donors,
or otherwise must be honored. However, the Finance Committee desires to convey the thought that
under certain circumstances in the interest of strengthening the portfolio these securities should be
sold, a step which we are barred from taking.

It is the opinion of the Finance Committee that the steps taken during the period covered
by this report have strengthened and bettered the position of the Consolidated Endowment Funds.