UM losses small, curators hear

By JENNA YOUNGS of the Tribune’s staff

Published Tuesday, September 23, 2008

Like many investors the past few weeks, the University of Missouri System has not been immune from feeling a financial strain.

In a meeting yesterday of the Board of Curators’ finance and audit committee, however, UM System President Gary Forsee told curators losses were small and it’s too early to tell what the long-term effect on UM investments will be.

The market value of UM’s retirement and endowment funds has declined by about 7 percent since June 30, spokeswoman Jennifer Hollingshead said after the meeting. That includes 1 percent drops in July and August and a 5 percent drop in the first few weeks of September.

Robin Pellish, CEO of Rotacon Investment Advisors, told five curators who participated in a teleconference that although UM lost market value in these funds the past few months, the university has "fared relatively well" because its portfolio is so diversified.

"There wasn’t any need for short-term crisis management on our part," Forsee said.

Forsee assured curators the treasurer’s office would continue to adjust investment and borrowing strategies as the long-term impact of the market turmoil becomes more clear.

Reach Jenna Youngs at (573) 815-1733 or jbyoungs@tribmail.com.