AUSTIN, Texas -- A resolution allowing the Texas Permanent University Fund to invest in a broader range of asset classes passed Nov. 2 with 61.2% of the vote on the statewide ballot.
The proposal was in the form of a constitutional amendment that would enable the endowment to be managed on a "total-return" basis, thus freeing it from relying solely on income generated from investments to pay outstanding debt.
The fund has $7.2 billion, according to the Money Market Directory.
The change will allow investment in less income-oriented asset classes such as alternatives.
Under the amendment, annual distributions from the fund will not exceed 7% of the average market value of the total fund assets, and there will be no increase in annual distributions if the purchasing power of the endowment is not kept in check over a rolling 10-year period.
