September 30 Investment Returns

Paul A. Robell, Vice President for Development and Alumni Affairs

As you are all painfully aware, investment markets have been highly volatile. This is reflected in the endowment investment pool’s September 30 returns which are -8.29%. In accordance with the endowment spending policy, this would have resulted in a reduction of spending bases of endowments of an average of -7.18% for the next quarter.

These are, however, extraordinary times. At President Machen’s request, the Foundation Board has agreed to forgo the policy-mandated reductions. Accordingly the endowment spending bases will hold steady at their June 30 valuations through December 31, 2008. The situation will be reassessed at that time.

The non-endowed Pool B investors did incur losses this quarter. After administrative fees and adjustments, the Pool B investors will incur a loss of -5.66%.

Please take the possibility of a significant reduction in endowment spendable income into account as your manage your UFF funds. In this unprecedented market, we cannot speculate on future quarterly performance but will keep you advised as we learn more.