University of Virginia Library

It is our pleasure to submit herewith a report and summary of the handling of the Consolidated
Endowment Fund by State-Planters Bank and Trust Company, Richmond, Virginia, for the period January 25,
1949, to January 25, 1950.

It will be observed that the large volume of transactions during the year resulted in the
elimination of a number of inherited investments which, for various reasons, were not deemed suitable
for continued retention, and in an improvement of the general quality and diversification of the investments
at no sacrifice of income. Actually, the yield on investments disposed of averaged 3.67%
whereas a yield of 4.81% was obtained on the new investments during the year

The handling of the account as a whole by State-Planters Bank and Trust Company is most
gratifying to your Committee, as it will be observed that the effective yield on the book value of
the fund at the present time is estimated at 4.29% compared with 3.96% one year ago. These yield
figures are based upon an estimate of the income to be received during the coming year on the present
investments at present dividend and interest rates. The actual yield obtained during 1949,
based upon a weighted average by months of the actual book value during 1949, was 4.26%, which compares
with a yield of 4.02% on book value during 1948.

Attached to the report and summary you will observe certain schedules showing the diversification
of the assets at market values as of January 25, 1950. The diversification is first shown
as between bonds, preferred stocks, and common stocks - 44%, 20%, and 36%, respectively. The diversification
is then shown by industries. Heading the list is the utility industry representing 26.5%
of the account as a whole. From the first page of the complete list of assets it will be noted that
utility bonds represent 8.3% of the account as a whole, utility preferred stocks represent 8.4% and
the utility common stocks represent 9.8%. This latter common stock figure has also been broken down
to show the telephone and telegraph stocks represent 3.1%, natural gas stocks 1.4%, and electric
utility stocks 5.3% of the total account.

In the detailed list of investments in industries it is to be noted that each individual
investment is stated at its cost and at its current price, and in this manner the Board will be
able to observe the performance of each individual investment and of each category of investments.

In order that the Rector and each member of the Board may have an opportunity critically
to review the report and summary provided by the State-Planters Bank and Trust Company, fifteen
copies thereof are submitted with this report.

It is the purpose of your Committee to ask that consideration of the report be made a
special order of business at the March meeting of the Board, at which time officers of the State-Planters
Bank and Trust Company will be asked to appear, for the purpose of reviewing the account
personally and presenting to the Board a general statement of their views and recommendations in
respect to the handling of the funds