Texas Endowment Performance 2019

The school system from the Lone State announced their endowment figures last month.

The $22.6 billion Permanent University Fund returned an annualized 9.8%, 6.2% and 9% for the three, five and 10 years, respectively, ended June 30, while the $11.5 billion Long Term Fund returned an annualized 10%, 6.4% and 9.1%, respectively, during those same periods.

UTIMCO endowments return 5% for year, Pensions&Investments

What is the Permanent University Fund?

The Permanent University Fund, or PUF, makes up the most substantial part of the funds generally referred to as “the endowment.”

The PUF, worth about $22.6 billion, generates revenue by leasing 2.1 million acres of land in West Texas. Mark Houser, CEO of University Lands, said 1.4 million acres of it is leased to oil and gas developers and about 110,000 acres are leased to renewable energy generation such as solar and wind. The income collected from the land is then invested by UTIMCO.

Compared with schools such as Yale or Harvard, funding from the University of Texas’ endowment makes up a relatively small portion of its operating budget. For the 2018-19 fiscal year, only 12% of UT Austin’s budget came from endowment funds.

How UT invests: a process unknown to most and sometimes even to UT itself, The Daily Texan

Fireworks on top of the UT Tower at the University of Texas at Austin.
Photo by Koushik Chowdavarapu on Unsplash

Post by Marcelino Pantoja