The "new economic indicators" headlined two weeks ago in The New York Times supposedly snow that the upturn is imminent, but for Harvard's portfolio, the swing back to pre-depression value appears to be well under way.

Although the value of the endowment sank to under $1.1 billion early last fall, by May 30 it had climbed back up to $1.297 billion. In 1973 the endowment reached an all-time high of almost 1.4 billion.

However, preliminary figures for the overall University budget in the fiscal year ending June 30 are not as bright.

Hale Champion, financial vice president, told the Corporation two weeks ago that the expected 1975 University deficit is about $1.5 million, or one and a half times greater than last year's. Final figures on the deficit will not be available until the fall.

On July 1, the Harvard Management Co., Harvard's new internal money manager, will celebrate its first year of handling the endowment.

While Harvard Management President Walter M. Cabot '54 has not changed the ratio of stocks to bonds in the first year, the rate of turnover for common stocks has been very active, especially considering the market situation.

One of the major investment decisions by the company was to move Harvard's portfolio away from growth-restricted public utilities and international oil companies and place more emphasis on growth and technology stocks.

As soon as utilities improved in the market this spring, the management company dumped large amounts of Harvard's utility stock--including all its holdings in Middle South Utilities, the controversial southern holding company that has been sharply criticized by environmentalists and equal employment advocates.

The management company has experienced significant savings since the institution of competitive brokerage fees on May 1. Although Harvard Treasurer George Putnam '49 says that the University originally expected to save about 25 per cent on brokerage fees, he said last week that savings have reached as much as 60 per cent for small specialty brokers. Putnam estimated that the savings might be as much as $1 million per year if the management company continues its present level of activity.

In January, the University names five outside managers to handle about $125 million of the portfolio. In addition to managing a portion of Harvard's money, each of the managers is now cooperating with Harvard in making available economic and investment information to share for the benefit of the whole portfolio.