UJA Federation Toronto Reports Madoff Related Loss
The Jewish Foundation of Greater Toronto took a $486,000 (Cdn) hit as a result of an investment that was indirectly linked to Bernard Madoff. The loss represents .26 per cent of the foundation’s total assets.
“Although any loss is regrettable, and we are by no means minimizing its significance, our exposure is very small compared to other individuals and organizations,” said Howard English, vice-president of corporate communications for UJA Federation of Greater Toronto. “On any given day, considering the size of Jewish Foundation assets and the amount that we invest, market fluctuations of $486,000 either up or down, would not be unusual. In other words, when market conditions are good, we can just as easily make $486,000.”
The nearly half a million dollars is the income that would be generated by a $5.4 million (Cdn) investment in a fund of funds, which included an investment managed by Madoff. However, according to English, the foundation’s investment advisors are not yet prepared to write off the $5.4 million investment that produced the $486,000 return.
“We believe the $5 million is recoverable. We hired an investment consultant who is looking into it, and he believes there is a good chance it is recoverable,” he said.
We’re not sure if Toronto’s loss is part of the seven mentioned by the UJC’s Howard Rieger last week or if this is number eight. We do know there are still many federation’s who have not yet officially commented on possible exposure.
On an upbeat note, as of today and with two months to go, the Toronto Federation’s annual campaign is running slightly ahead of this time last year.