Endowment Funds

Investment Performance*

Annualized results12/156/16
1 year =-1.2%-1.4%
3 years =6.9%5.2%
5 years =6.4%5.5%
10 years =5.2%4.8%

Endowment funds represent an extremely important asset base that provides current and future revenues for the University of Wisconsin. The Wisconsin Foundation and Alumni Association staff, along with the investment committee of WFAA’s board of directors, manages the endowment fund on a total return basis. This allows the endowment to be invested with a long-term perspective and an emphasis on diversified, equity-related strategies.

The investment, spending, and expense fee policies associated with our endowment are designed to enable endowment balances to increase at the rate of inflation over the long term, after all fees and spending distributions. WFAA allocates the annual income based on a spending plan rate of 4.5 percent, multiplied by the average market value of the total endowment fund for the most recent 16 quarters. This rate, reviewed annually by the board of directors, was last adjusted during 2010.

The table on this page shows the total return figures, and the circular charts show the asset allocation of WFAA’s endowment fund. Because WFAA changed its fiscal year from one ending December 31 to one ending June 30, performance is annualized looking back from the end of each period. The endowment fund-asset allocation targets have been established to promote overall portfolio diversification while providing a return necessary to meet the investment objectives. Each allocation is a snapshot at the end of the reporting period.

*Net of external manager fees.

Asset Allocation as of June 30, 2016

Total Endowment Fund Assets: 2,419,160,796

Asset Allocation as of December 31, 2015

Endowment Fund Assets 2011–16

Assets under management have grown from $1,812.1 million on January 1, 2012, to $2,419.2 million as of June 30, 2016, as reflected in this graph. Note that the reporting period shifts from December 31 to June 30 in 2016. While this report covers 18 months, future reports will cover 12 months.