University Lands FY20 Annual Report

U N D E R S T A N D I N G

Established in the Texas Constitution of 1876 through the appropriation of land.

PERMANENT UNIVERSITY FUND

CONST I TUT I ON S T A T E O F T E X A S

UTSYSTEM.EDU/PUF

A constitutional permanent endowment that supports excellence in the The University of Texas and Texas A&M University Systems.

KEY FACTS CONSTITUTION GIVESMANAGEMENT TO UT SYSTEM BOARD;

THE UN I VERS I TY OF T EXAS SYST EM

GROWS FROMOIL AND GAS PRODUCTION AND INVESTMENT INCOME;

SUPPORTS CONSTRUCTION AND CAPITAL EXPENSES AT INSTITUTIONS OF UT AND TAMU SYSTEMS; CORPUS IS NOT SPENT EXCEPT FOR EXPENSES OF MANAGING THE LAND AND THE INVESTMENT ASSETS; CONSTITUTION DOES NOT PERMIT UT SYSTEMTO USE AUF FOR OPERATIONAL EXPENSES AT INSTITUTIONS OTHER THAN UT AUSTIN;

CONSTITUTIONAL USES OF AUF:

Support and maintenance of UT System Administration

Support and maintenance of UT Austin

Payment of principal and

interest on PUF bonds

2020 VALUE OF ~$24 BILLION

AUF

T EXAS A&M UN I VERS I TY SYST EM

The Available University Fund is PUF surface income plus an annual distribution from the total return on PUF investments, constitutionally allocated 2/3 to UT System and 1/3 to Texas A&M University System.

The Texas A&M University System has similar constitutional restrictions on use of AUF. Some Texas A&M institutions are not eligible for PUF bonds.

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Fiscal Year 2020 Annual Report

The PUF Fund Explained

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