Public Stewardship

The Advancing a Healthier Wisconsin funds are invested with the Medical College of Wisconsin Endowment Funds using a diversified asset allocation strategy that includes money market funds held by external investment managers, marketable debt and equity securities, bond and equity mutual funds, commingled bond and equity funds, other equity securities, and accrued interest and dividends thereon and are reported at fair value. The investment goal for the Advancing a Healthier Wisconsin funds, as approved by the Medical College of Wisconsin Board of Trustees, is to preserve the purchasing power of its investment, while providing a level of investment return and liquidity that funds its purposes within a reasonable and prudent level of risk. The Medical College of Wisconsin has a long-term investment objective for the endowment assets to earn on average a real (inflation adjusted) annual rate of return and to provide a return for appropriation of not less than the total annual spendable income rate under the endowment fund spending policy. 

All Endowment Funds, including the Advancing a Healthier Wisconsin funds, are invested in a unitized pool. Pooling of funds allows an individual participating fund to benefit from diversification and economies of scale in the investment process. 

Income is also unitized and allocated based on relative value on the first of the month. Realized capital gains are reinvested in the pool. The separate identity of each fund participating in the Endowment Fund pool is fully preserved, and each fund’s share in the income and gains and losses of the pool is assured. 

The Advancing a Healthier Wisconsin funds are segregated within the Endowment Fund. With respect to the 35% allocation of the funds for the Healthier Wisconsin Partnership Program and the 65% allocation of the funds for the Research and Education Program, separate accounts for the endowed funds and the spendable income funds available for current and future program distribution are maintained. 

Distributions are based on the MCW Endowment Fund Spending Policy. Investment earnings that are not distributed are restricted under the terms of the Order of the Insurance Commissioner.