GEISINGER HEALTH FOUNDATION
Endowment Report
Fiscal year 2020 (July 1, 2019–June 30, 2020) Investment management at Geisinger The Geisinger Health Board of Directors has established a Finance Committee and an Investment Subcommittee to assist with oversight and monitoring of Geisinger’s investments. The Investment Subcommittee monitors performance relative to Geisinger’s investment objectives, and meets regularly to discuss capital markets, investment strategy, risk parameters, investment policies and asset allocations. Endowment assets are invested alongside other long-term operating assets of Geisinger and managed by an outsourced chief investment officer (OCIO). The OCIO is a fiduciary responsible for oversight and daily investment management including selection and monitoring of investments, tactical asset allocation, and facilitation of trading and fund flows. Geisinger also engages an independent investment consultant to assist with oversight of investment assets. These parties coordinate closely with Geisinger leadership on the day-to-day management and operations of Geisinger’s investments.
Endowment investment objectives • • •
Preserve the real spending power of the assets Grow assets over the long term in excess of inflation Optimize the long-term investment return for an appropriate level of risk
Endowment investment strategy and asset allocation is developed in adherence with these principles: • • • •
The focus on a long-term investment horizon (perpetuity) can provide opportunities to avoid distractions from, and take advantage of, short-term volatility. Investment markets are largely efficient, yet not perfectly efficient, which allows for targeted opportunities to exploit these inefficiencies. Investment markets are increasingly global, and it is important to understand the differing risk and return profiles across all assets, globally. We seek to exploit opportunities to enhance total portfolio returns through broad diversification across asset classes with low correlations.
Endowment structure As of June 30, 2020, approximately 190 individual restricted endowment funds, comprising $75.5 million, were held as investments for Geisinger. Endowments have been created to support a broad range of programs, departments, and initiatives across Geisinger. Critical to our future, endowments afford us the financial stability to make strategic investments in the health and well-being of our communities. As our research programs continue to expand and grow, these gifts will allow leadership to plan and allocate resources knowing that funding sources are secured. The chart (to the right) shows a break-down of endowment funds categorized by purpose.
Scholarship 4% Research and Innovation 4% Clinical 58%
Community 4%