The Permanent University Fund (PUF) is a state endowment fund contributing to the support of 18 institutions and 6 agencies of The University of Texas System (UT System) and The Texas A&M University System. The Texas Constitution of 1876 established the PUF through the appropriation of land grants previously given to The University of Texas at Austin, as well as an additional one million acres. The land grants to the PUF were completed in 1883 with the contribution of another one million acres of land. The PUF continues to receive contributions of mineral income from PUF lands although the contributions have been in a gradual decline for over a quarter of a century.
The University of Texas System General Endowment Fund (GEF) was created in March 2001 as the investment vehicle for the Permanent Health Fund (PHF) and The University of Texas System Long Term Fund (LTF). The GEF is organized as a mutual fund in which the PHF and LTF purchase and redeem units quarterly at the GEF's market value price per unit. The GEF's creation allows the PHF and LTF to benefit from their identical investment objectives by providing greater efficiencies and cost savings. The GEF does not represent any additional funds under UTIMCO's management.
The PHF is an internal mutual fund for the pooled investment of state endowment funds for health-related institutions of higher education created in August 1999 with proceeds from state tobacco litigation. The PHF distributions support programs that benefit medical research, health education, public health, nursing, and treatment programs at health-related institutions of higher education. The PHF assets are invested in the GEF.
The LTF is an internal mutual fund for the pooled investment of over 6,000 privately raised endowments and other long-term funds of the 15 component institutions of The University of Texas System. Distributions from the LTF to the individual endowments support scholarships, teaching, and research programs across the UT System. Each endowment purchases units at the LTF's market value per unit on a quarterly buy-in date. Cash distributions are paid quarterly, on a per unit basis, directly to the component on record. The LTF assets are invested in the GEF.
