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Report on TTUS EndowmentsGary BarnesVice Chancellor and Chief Financial Officer
February 27, 2020
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Endowment Funds
• Gifts that are invested for long term growth to produce earnings that will last into perpetuity. Definition:
• Support strategic mission and goals of institution while also fulfilling philanthropic goals of individual donors.Purpose:
• Support that will impact both current and future generations.• Consistent and stable source of revenue that will last into
perpetuity. Benefits:
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TTU System Total EndowmentFY 1999 – FY 2019 (in Millions)
$1,305
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Over 400% increase in Total Endowment over the past 20 years Significant increase attributed to generous support from donors and investment performance
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How Did We Get Here?
Historical Perspective of Endowment CompositionAs of 8/31/2019
Growth from Contributions
$1,113.36 85%
Growth from Investments*
$191.58 15%
Growth from ContributionsGrowth from Investments*
*Growth from Investments (as shown) is net of total distributions and management fees
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TTUS Total Endowment by AgencyAs of August 31, 2019
Texas Tech Foundation44%
Texas Tech University18%
Carr Foundation11%
Funds Held in Trust by Others11%
Health Sciences Center
7%
HSC - El Paso4%
ASU1%
ASU Foundation2%
TTU Alumni Association1%
TTUSA0%
Texas Tech Foundation
Texas Tech University
Carr Foundation
Funds Held in Trust by Others
Health Sciences Center
HSC - El Paso
ASU
ASU Foundation
TTU Alumni Association
TTUSA
577,116,988
239,997,195
147,366,103
145,559,385
92,389,402
52,719,708
17,789,416
19,854,838
11,286,869
859,777
44%
18%
11%
11%
7%
4%
1%
2%
1%
0%
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TTUS Total Endowment by ComponentAs of August 31, 2019
TTU58%HSC
17%
ASU14%
HSC EP11%
TTUSA0%
TTU
HSC
ASU
HSC EP
TTUSA
758,658,407
221,899,518
185,010,357
138,189,574
1,181,826
58%
17%
14%
11%
0%
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Distributions to Component InstitutionsFY 1999 – FY 2019(in Millions)
$3 $6
$9 $11
$13 $15 $16
$19 $21
$26
$32 $33 $34 $36
$39 $43
$47 $51
$52 $54 $56
$-
$10
$20
$30
$40
$50
$60
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
Through careful stewardship, the target distribution rate of 4.5% has been realized every year since inception. Over $619M in total earnings paid since inception with $56M in FY 2019 alone. Increases in total distributions realized EVERY year since inception
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Endowment Distribution by TypeAs of August 31, 2019
In FY 2019, earnings of $56 million were distributed to all 4 universities to support their academic, research and community engagement missions, as directed by donors.
Scholarship/Fellowship46%
Faculty Chairs and Salaries
27%
Academic Support12%
Research10%
Other5%
Scholarship/Fellowship 46%Faculty Chairs and Salaries 27%Academic Support 12%Research 10%Other 5%
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Endowment Distribution by ComponentAs of August 31, 2019
TTU57%
ASU (including CARR)
20%
TTUHSC13%
TTUHSC EP8%
TTUSA2%
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Investment Update
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NACUBO Annual Study of EndowmentsAs of June 30, 2019
TTUS 1/3/5/10 YR RETURNS VS. TOTAL & PEER GROUP (750M-1.5B)
1 YR 3 YR 5 YR 10 YRTTUS 2.3% 8.8% 5.0% 7.4%Avg. (Peer Group) 5.6% 9.2% 5.6% 8.6%Lowest (Peer Group) 2.1% 6.3% 3.7% 6.6%Highest (Peer Group) 10.2% 11.5% 7.9% 10.4%Avg. (All) 5.2% 8.7% 5.2% 8.4%
2.3%
8.8%
5.0%
7.4%
5.6%
9.2%
5.6%
8.6%
2.1%
6.3%
3.7%
6.6%
10.2%11.5%
7.9%
10.4%
5.2%
8.7%
5.2%
8.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
TTUS Avg. (Peer Group) Lowest (Peer Group) Highest (Peer Group) Avg. (All)
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LTIF Returns / Performance Update
1 YEAR 3 YEAR 5 YEAR 10 YEAR
As of 6/30/19 2.31% 8.80% 5.01% 7.41%
As of 8/31/19 0.18% 7.31% 4.87% 6.90%
As of 12/31/19 10.92% 7.08% 5.93% 6.36%
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