Reports - Report of the Treasurer

The year 2006 was a good year for the Medieval Academy. Credit Suisse, the Academy's investment adviser since fall 2003, has shepherded the original amount of $5.7 million to approximately $7.8 million as of February 2007. And this is after the Academy covered this past year the unbudgeted one-time expenses resulting from the search, recruitment, and hiring of a new Executive Director.

The current asset allocation of the portfolio of 60 percent equities and 40 percent fixed income remains focused on a policy of capital preservation with modest growth adopted several years ago. Approximately 28 percent of the investments are in high-dividend-yielding value stocks (such as a globally situated cement company)-stocks in seventeen different industry sectors. Although this strategy may be perceived as either boring or unimaginative by some, it continues to do well by the Medieval Academy, for a high-dividend and low-risk approach serves as an anchor in times of volatile markets such as has been recently experienced in 2007. The investment philosophy of the Finance Committee has been one of long-term investment with low turnover and limited trading of equities; for fixed income the Committee has endorsed relatively short term and very high quality bonds, in order to maintain both dependable annual yields and optimal liquidity.

As explained in past reports, the Treasurer and Finance Committee are also dedicated to a comprehensive approach to strategic financial planning and budgeting, in which we are attempting to develop a robust revenue stream that extends beyond membership dues, subscriptions, and endowment income. With this goal in mind the Executive Committee (upon the recommendations of the Finance Committee) approved in November 2006 two fund-raising initiatives.

First is the formation of a "Legacy Society." The Society will honor those-twenty in number-who have already bequeathed funds to the Academy as well as those who have announced an intention to do so. The Executive Committee approved that the names of all members of the Legacy Society (with the exception of those who wish to remain anonymous) will be published annually in the July issue of Speculum and that a brief notice about the precise wording to make a bequest to the Academy will run annually in the fall Newsletter and will also be posted on the Academy's Web site. Beginning in spring 2008, the Academy will honor members of the Society at the banquet held at the annual meeting.

The second initiative, the "Honored Teachers Program," started in spring 2006 and will be continued in 2007. The response to this opportunity to acknowledge an inspirational mentor or colleague was remarkable and a testament to those individuals who have had and are continuing to have an enduring impact on the profession. At this juncture twenty-four benefactors have honored twenty-seven teachers. As all of you may have already noticed, each statement of tribute or remembrance for an "Honored Teacher" is published in the Academy's newsletter.

Finally, the Executive Committee endorsed the Finance Committee's submission of a proposal from the Graduate Student Committee for funding to support graduate students who present a scholarly paper at the annual meeting. What more appropriate way can we imagine of ensuring the future vitality of our field and of the Academy? The very first such awards have been authorized for the meetings in 2008, 2009, and 2010.

The work of the Finance Committee is without finality. I must recognize with admiration the extraordinary and tireless dedication of the committee members: Mac Gatch, Lester Little, Gene Lyman, Libby Parker, Emily Rose, and Paul Szarmach, ex officio. Each brings to the meetings and the countless e-mail correspondence a sense of commitment and humor. I am privileged as Treasurer to have such supportive and knowledgeable colleagues.

Respectfully submitted,
BARBARA A. SHAILOR, Treasurer