From: Chuck McClenon <cmcc@utexas.edu>

Sent: Monday, December 03, 2012 11:06 PM

To: Sr. Carol McClenon

Cc: Tom or Cass Baisden; Rob-Bob McClenon; David McClenon; Carol Livaditis; clara mcclenon; Jean'Michel Giraud; Kathy Clark 6/11; Patience Musingarimi; Paul McClenon DSL; RBobob- McClenon 5/03

Subject: WHMC Fund treasurer's report

General Endowment:

Assets

• Wells Fargo Checking $525.00
• Fidelity                               $57,754.81
•                                            -------------
• Total Assets                    $58,279.81

Income year-to-date     $1336.05

Grants made, year to date     $  250.00

Special Endowment

Assets

• BBVA/Compass checking          $1069.93
• Fidelity                                       $95,731.73
•                                                    -------------
• Total Assets                            $97,001.66

Income year-to-date $  1,520.74

Grants made, year-to-date            $  1,000.00

Under the IRS code, the Special Endowment is expected to give away 5% of its assets each year, otherwise it incurs additional taxes.  Therefore it is advisable for the special endowment to make total grants of at least $4850 this year, so the recommendation is to make grants of $4,000 at this meeting.

There is no requirement for the General Endowment to make contributions.  Traditional practice is to give approximately equal to income, but with interest rate and dividends low this year and in the foreseeable future, thee board could consider retaining earnings.

The portfolio of the general endowment appears to be earning at a higher rate of return than that of the special endowment. This deserves review.

Chuck