New Beginnings, Enduring Commitments

This fall, the Texas Tech University System welcomed our fifth chancellor, Dr. Tedd L. Mitchell. His leadership brings new opportunities to innovate and build on two decades of success, while preserving our commitment to advance scholarship, research and patient care for the benefit of Texas and the world.

Philanthropy remains a crucial source of support for our four universities, and this past year, gifts from alumni and donors surpassed $173 million. Gifts to endowments underpin the future success of our universities, sustaining the work of our students and faculty and empowering them to make a difference around the world.

Read the 2018 Endowment Report

Investment Performance

By design, endowment funds are invested to benefit our universities over the long term. Texas Tech University System and Texas Tech Foundation endowments are invested in the Long-Term Investment Fund.

$1.33B
Value of the Texas Tech University System endowment

For more than two decades, the Texas Tech University System endowment has grown to a combined market value of approximately $1.33 billion. This phenomenal growth is fueled by sustained giving from donors and a solid investment strategy focused on a balanced approach to the market.

Endowment Activity (in millions) FY2014 FY2015 FY2016 FY2017 FY2018
Beginning Fair Market Value $973.1 $1,179.5 $1,155.7 $1,150.3 $1,256.3
Contributions Received $112.3 $50.5 $33.8 $38.4 $35.4
Investment Earnings $141.0 ($20.9) $18.8 $126.8 $100.2
Cash Distributions ($42.7) ($47.4) ($51.1) ($52.2) ($53.7)
Management Fee ($4.2) ($6.0) ($6.9) ($7.0) ($7.2)
Ending Fair Market Value $1,179.5 $1,155.7 $1,150.3 $1,256.3 $1,331.0

Benchmark Comparison

The Long-Term Investment Fund's strong return of 9.06 percent, outperformed the 60/40 policy benchmark by more than two percent. The fund also beat the benchmark over each time period below, demonstrating the success of a balanced approach.

Fund Performance (%) 1-Year 3-Year 5-Year 10-Year
TTUS Long-Term Investment Fund 9.06 8.30 7.69 5.88
60/40 Benchmark* 6.19 8.13 6.38 5.49

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

Asset Allocation

The Long-Term Investment Fund maintains a balanaced investment approach through diversification 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. In fiscal year 2018, earnings of $53.7 million were distributed to support the missions of our four universities.

$563M
Total earnings paid to our universities since the establishment of the Long-Term Investment Fund in 1996

Stories of Impact

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

A Legacy Impossible to Measure

Through scholarship and faculty endowments, J.T. and Margaret Talkington's philanthropy continues to make a mark on Texas Tech University and a difference in the lives of students and faculty.