Impacting Generations

This past year, the universities of the Texas Tech University System celebrated historic advances. Two projects, only possible because of philanthropy, included approval for the School of Veterinary Medicine at Texas Tech University and the Woody L. Hunt School of Dental Medicine at Texas Tech University Health Sciences Center El Paso.

Capping off system-wide gifts of more than $146 million this past year, the Texas Tech University Rawls College of Business launched a new Excellence in Banking Program that is unique in the nation. With more than $10 million in endowments given before the program opened, it demonstrates the potential of generosity to drive innovation and impact our four universities for generations.

Read the 2019 Endowment Report

Understanding the Endowment

The Texas Tech University System endowment includes a range of funds that are invested for the benefit of the Texas Tech University System and its universities. Donor endowments given to the Texas Tech Foundation are invested as part of the Long-Term Investment Fund.

Investment Performance

$1.3B
Value of the Texas Tech University System endowment

Across more than two decades, the combined asset value of the Texas Tech University System endowment has grown to more than $1.3 billion. This consistent growth is driven by sustained giving from donors and an investment strategy focused on a balanced approach to the market.

Endowment Activity (in millions) FY2015 FY2016 FY2017 FY2018 FY2019
Beginning Fair Market Value $1,179.5 $1,155.7 $1,150.3 $1,256.3 $1,331.0
Contributions Received $50.5 $33.8 $38.4 $35.4 $38.0
Investment Returns ($20.9) $18.8 $126.8 $100.2 ($0.7)
Cash Distributions ($47.4) ($51.1) ($52.2) ($53.7) ($55.9)
Management Fee ($6.0) ($6.9) ($7.0) ($7.2) ($7.5)
Ending Fair Market Value $1,155.7 $1,150.3 $1,256.3 $1,331.0 $1,304.9

Benchmark Comparison

The Long-Term Investment Fund continues to show strong historical performance. Our 3-year return exceeds the fund's 4.5% distribution. We also saw a year-over-year increase in the fund's 10-year performance of 6.9%. As we continue to improve the positions that led to fiscal year 2019's return, we remain confident in the investment strategy that continues to deliver consistent, reliable growth for our universities.

Fund Performance (%) 1-Year 3-Year 5-Year 10-Year
TTUS Long-Term Investment Fund 0.18 7.31 4.87 6.90
60/40 Benchmark* 3.56 6.81 4.45 6.71

* 60/40 Benchmark consists of 60 percent Global Stocks and 40 percent Global Bonds

Asset Allocation

The Long-Term Investment Fund maintains a balanaced approach to investment by diversifying across global equity and fixed income markets as well as investments in private companies, real estate, and oil and gas.

Distribution

Through careful stewardship, the target distribution rate of 4.5 percent has been realized every year since the Long-Term Investment Fund's inception. In fiscal year 2019, earnings of $55.9 million were distributed to support our four universities.

$619M
Total earnings paid to our universities since the establishment of the Long-Term Investment Fund

Stories of Impact

Each year, donors across the Texas Tech University System impact the lives of our students and faculty through philanthropy. Whether giving for the first time or through an endowment, these donnors continue to make a difference through their generosity.

Making History

Driven by community support from Amarillo and beyond, Texas Tech University broke ground on facilities for the state's first veterinary school in more than 100 years.