UTIMCO's endowments post 6.2% fiscal-year loss

A preliminary report shows the University of Texas/Texas A&M Investment Management Co. posted a loss in its permanent university fund and long-term fund for its fiscal year ended Aug. 31, though its historical numbers still show growth.

The company, founded in 1996 has the fiduciary responsibility for investment assets and managing the endowments that belong to the University of Texas and Texas A&M systems, according to its website.

The $30.9 billion Permanent University Fund recorded a preliminary net loss of 6.17%, with assets falling from nearly $32 billion as of Aug. 31, 2021. Its $19.9 billion Long Term Fund saw a preliminary net loss of 6.22%, with assets dropping about $40 million.

Both funds recorded returns of greater than 31% the prior fiscal year.

Over the longer term, net annualized preliminary returns for its permanent fund as of Aug. 31 were 10.58% for three years, 9.05% for five years and 8.51% for 10 years.

The preliminary annualized returns for its Long Term Fund were 10.57% for three years, 9.15% for five years and 8.59% for 10 years.

Benchmark performance and individual asset class net returns were not provided in UTIMCO's report.

Overall, the preliminary data shows that UTIMCO now manages $65.2 billion, with $52.5 billion in endowments and $12.6 billion in total operating funds.

UTIMCO's decline for the year was muted in comparison to broad public market indexes such as the S&P 500, which was down 11.2% for the year ended Aug. 31, and the Bloomberg U.S. Aggregate Bond index, which was down 11.5% over that same period.