<\/p>\n
Investing is a long-term game, but Fort Lewis College\u2019s first foray with $6 million of its assets is showing success, increasing in value by more than $255,000 in its first six months.<\/p>\n
That\u2019s 7.5 times better than what it would\u2019ve made if the state had invested that money.<\/p>\n
The college\u2019s Investment Committee met Thursday to review the report from its adviser, Public Financial Management Group, through the second quarter of 2016, which ended June 30. FLC received permission from the Colorado General Assembly to remove the $6 million \u2013 about 20 percent of its assets \u2013 from the Colorado Department of the Treasury and take charge of investing some of its own funds at a higher rate of return and risk.<\/p>\n
The funds invested by the Colorado treasurer will bring in less than 1 percent this year, FLC Associate Vice President of Finance and Administration Michele Peterson said. The funds invested by PFM have increased in value 6.4 percent, just slightly more than the index of 6.3 percent, as of Aug. 11, representatives of PFM said during the teleconference.<\/p>\n
\u201cThat means the $6 million would have increased less than $30,000 in the same six months if we\u2019d left it with the treasurer,\u201d Peterson said.<\/p>\n
It\u2019s not completely apples to apples to compare FLC\u2019s investing to the treasurer\u2019s, said Steve Schwartz, vice president of finance and administration. The treasurer operates under strict guidelines in investing strategy to minimize risk.<\/p>\n
\u201cBut it is an important comparison to measure the success of the investment program and another benchmark,\u201d said Steve Short, chairman of the committee and a member of the college\u2019s Board of Trustees.<\/p>\n
One move PFM made with the portfolio may spare FLC from some of the volatility in the market after Great Britain\u2019s recent vote to exit the European Union. In two moves, one before and one after the Brexit vote, PFM moved the college\u2019s money out of international markets and into domestic markets, focusing primarily on fixed-income funds.<\/p>\n
\u201cWhen Brexit happened,\u201d Schwartz said, \u201cI was worrying about what would happen to our investments. But we\u2019re in it for the long haul, so what matters is how it looks in five years, in 10 years.\u201d<\/p>\n
Taking over some of its own investing is part of Fort Lewis\u2019 strategic plan, he said.<\/p>\n
\u201cThe plan should develop new streams of revenue,\u201d Schwartz said. \u201cWe need to learn how this all works and prepare ourselves for a possible future (where state funding continues to decrease), be more entrepreneurial.\u201d<\/p>\n