The five University of Texas endowment funds enjoyed returns of about 20% for the 12 months ended June 30 and about 17% for the fiscal year to date, said Bruce Zimmerman, CEO of the University of Texas Investment Management Co. UT's fiscal year ends Aug. 31.
The UT endowment funds totaled $20.3 billion as of May 31. UTIMCO, based in Austin, managed a total of $27.5 billion as of the same date, which is a new high for the company, according to data on its website.
In an interview, Mr. Zimmerman said returns for both time periods outpaced the pools' customized internal benchmark return by about 100 basis points. “The capital markets have been performing fairly well this year. We're the beneficiaries of a rising tide,” Mr. Zimmerman said.
At their July 14 board meeting, UTIMCO directors approved a 2012 budget for the start of the fiscal year on Sept. 1 that includes average base salary increases of 4% for all 60 employees of the investment management company. The total budget increase for salaries will be about $300,000, Mr. Zimmerman said.
The University of Texas Board of Regents is expected to approve the UTIMCO budget at its August meeting, Mr. Zimmerman said.