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.
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.
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|
|Ending Fair Market Value||$1,155.7||$1,150.3||$1,256.3||$1,331.0||$1,304.9|
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 consists of 60 percent Global Stocks and 40 percent Global Bonds
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.
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.
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.
Innovative Banking Program Receives Industry Support
The Rawls College of Business' Excellence in Banking Program received more than $10 million in statewide gifts from banking industry leaders.
Foundation Gift Supports Angelo State Residence Hall Expansion
Recognizing a $5.5 million foundation donation, Angelo State University renamed the Centennial Village's main building Seibel Commons.
Endowed Gift Supports El Paso Radiology Faculty
Family gift established a new $1.5 million chair honoring the founder of Texas Tech University Health Sciences Center El Paso's radiology residency program.