University of Alabama system hurt by fund freeze

BIRMINGHAM, Ala. (AP) - The University of Alabama system is being forced to look for cash in alternate investments due to a freeze in one of its market funds.

The system is among 1,000 colleges nationwide that invest in Commonfund, a money market fund that is managed by Wachovia.

Wachovia limited withdrawals from the fund because of the economic climate, leaving colleges to find other sources of income.

The UA system had $175 million in the fund that was used for daily operating expenses at the system's three campuses and at UAB Hospital.

Spokeswoman Kellee Reinhart said the university was able to withdraw $61 million and expects to get the rest back as the underlying assets mature.

She said the system has adequate funds to meet current operating expenses.

(Copyright 2008 by The Associated Press. All Rights Reserved.) AP-NY-10-13-08 1527EDT