Report of the Committee on Finances
for the Year Ending June 30, 1998

The Committee on Finances met on February 28, 1998, in Research Triangle Park, North Carolina, reviewed the performance of Sigma Xi's investments, and recommended a draft budget for FY 1999 to the Executive Committee. In consultation with representatives of J. C. Bradford & Company, the Society's investment manager, the committee also developed a revised investment policy statement.

The Society's investments are divided into the following four major funds:

the Endowment Fund, composed of two parts:

• Research Endowment Funds, whose income is designated to support the Grants-in-Aid of Research program
• Other Endowment Funds, whose income and gains are designated to support other programs of the Society

the Life Member Fund, which is a depository of life member payments, with income and gains credited to the annual dues for life members

the Operating and Reserve Fund, in which operating funds are invested over periods of several months to balance the cyclic cash flows of the Society

the Capital Fund, which is a depository of contributions from various sources toward construction of the new Sigma Xi Center in Research Triangle Park.

At its February meeting, the Finance Committee took action to combine the Life Member Fund with Other Endowment Funds for investment management purposes.

As of June 30, 1998, the balances in each of these funds were as follows:

Dividend/interest yields and total returns, based on cost, for the three funds on June 30, 1998 were :

These yields reflect the decision of the Board of Directors to favor long-term growth potential over current yields in the Endowment Fund portfolio, combined with a favorable equities market. The market value of all Sigma Xi funds increased by 7.57 percent from July 1, 1997 to June 30, 1998.

John W. Prados, Chair, Committee on Finances
Peter D. Blair
S. Gaylen Bradley
Robert A. Frosch
Millicent Goldschmidt
Lawrence M. Kushner
Raymond P. Lutz
Richard L. Meyer
John H. Moore