Returns of the two educational endowments managed by University of Texas/Texas A&M Investment Management Co., Austin, were uniformly positive and topped benchmark returns for periods ended June 30, fund documents showed.
Net returns for the $21.5 billion Permanent University Fund as of June 30 were 1.4% for three months; 11.3% for one year, 7.5% for three years; 8.3% for five years; and 5.8% for the 10-year period.
Performance of the $9.2 billion Long Term Fund as of June 30 was 1.4% for three months, 11.6% for the year; 7.7% for three years, 8.5% for five years and 5.8% for 10 years.
The endowment pools are measured against the same policy benchmark, which was down 0.6% in the quarter ended June 30, up 9.7% for the year; three years, 6%; five years, 6.9%; and 10 years, 4.1%.
Multiyear returns for the endowments are annualized.
For the year ended June 30, 2017, the Permanent University Fund returned 13.4%, while the Long Term Fund returned 13.7%.
Separately, the University of Texas Board of Regents approved a new strategic asset allocation for the endowment funds recommended by UTIMCO's investment staff and board of directors at an Aug. 9 meeting, confirmed UT spokeswoman Karen Adler.
The new asset allocation is effective Sept. 1.
The new allocation increases target weightings to global equity, stable value and illiquid investments while decreasing real return and alternatives exposure.
The new long-term strategic asset allocation targets are 63% global equity, up from 61.5%; 19% real return, down from 21.5%; and 18% stable value, up from 17%.