University of Montana Foundation

Overview

This Financial Report to Donors briefly describes the manner in which The University of Montana Foundation’s assets are held, distributed and invested. This Report also provides summary financial statements for the fiscal year ended June 30, 2009.

The dramatic slump in global investment markets during the 2009 fiscal year provided a great challenge to The University of Montana Foundation. Falling asset values impaired the ability of many Foundation-held endowments to provide their intended financial support for the University. The decline in value also caused the UM Foundation’s operating revenues to contract. UM Foundation reserves were used to supplement endowment spending and to offset the UM Foundation’s operating loss for the year.

The portfolio’s investment loss of 19.7 percent, although large, was in line with those of the UM Foundation's peers. The asset allocation used to manage the UM Foundation’s long term portfolio remained unchanged throughout the year. Beginning late in fiscal year 2009 the portfolio has shown considerable growth, providing the promise of significant recovery in the value of the assets managed.