Endowment Funds

Performance*
Annualized for periods
ending December 31, 2014
1 year = 5.9%
3 years = 11.4%
5 years = 9.1%
10 years = 6.5%

Endowment funds represent an extremely important asset base that provides current and future revenues for the University of Wisconsin. The University of Wisconsin Foundation staff, along with the Investment Committee of the Foundation’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. The Foundation 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 adjusted during 2010.

The table on this page shows the total return figures, and the circular chart shows asset allocation of the Foundation’s endowment fund as of December 31, 2014. The endowment fund-asset allocation targets have been established to promote overall portfolio diversification while providing a return necessary to meet the investment objectives.

*Net of external manager fees.

Asset Allocation as of December 31, 2014

Total Endowment Fund Assets: $2,318,538,096

Endowment Fund Assets 2010-2014

Endowment fund assets have grown from $1,765.6 million as of December 31, 2010 to $2,318.5 million as of December 31, 2014, as reflected in this graph above. The Foundation received a total of 79,535 gifts in 2014.