Another Fund Heavily Used by Schools Is Frozen

A second investment fund offered by investment adviser Commonfund froze most withdrawals this week, posing possible financial strains for the 200 colleges and schools invested in the fund.

The Commonfund Intermediate Term Fund held $1 billion in assets for the schools. Commonfund, a Wilton, Conn., investment adviser for colleges and schools, told clients they could withdraw only 30% of their money now, and said it will make the rest available "as quickly as possible," depending on market conditions. The fund would normally give investors any part of their money the day after a withdrawal request.

Keith Luke, managing ...