The Permanent University Fund (PUF) is a public endowment contributing to the support of eligible institutions of The University of Texas and The Texas A&M University Systems. The PUF was established in the Texas Constitution of 1876 through the appropriation of land grants previously given to The University of Texas, as well as an additional one million acres of land. Additional land grants to the PUF were completed in 1883 with the contribution of another one million acres. Today, the PUF contains over 2.1 million acres of land primarily located in 19 counties in West Texas.

The PUF's primary investment objective is to maximize investment returns within the risk parameters specified in the PUF Investment Policy Statement without regard to the distribution rate.

The PUF is invested in a broad mix of investments and is actively managed to its policy portfolio or benchmark. UTIMCO allocates the PUF’s assets to internally and externally managed portfolios in accordance with guidelines approved in the PUF Investment Policy Statement.



PUF Lands

The UT System Board of Regents’ mission is to maximize the revenue of the PUF Lands by applying intensive management, accounting, conservation, and environmental programs, which improve and sustain productivity, protect their interests and promote awareness and sensitivity for the environment. In keeping with these purposes, the lands are managed to produce two streams of income: one from oil, gas, and mineral interests, and the other from surface interests such as grazing.

Mineral income generated by PUF Lands consists primarily of bonuses and rentals from the periodic sale of mineral leases, and royalties on gross revenues from oil, gas, and sulphur production. The Constitution requires that all income from the sale of PUF Lands and leasing of mineral interests be retained within the PUF and invested in PUF Investments.

Surface acreage of the sparsely populated PUF Lands has been leased primarily for grazing and easements for power lines and pipelines. As mandated by the Constitution, all surface lease income is deposited in the Available University Fund (AUF).

PUF Distributions

The Texas Constitution allows for (a) distributions to the AUF from the "total return" on PUF investments, including income return as well as capital gains (realized and unrealized) and (b) the payment of PUF expenses from PUF assets. The Texas Constitution directs the UT Board to establish a distribution policy that provides stable, inflation-adjusted annual distributions to the AUF and preserves the real value of the PUF investments over the long term. Accordingly, distributions to the AUF in any given fiscal year are subject to the following: (1) A minimum amount equal to the amount needed to pay debt service on PUF bonds; (2) No increase from the preceding year (except as necessary to pay debt service on PUF bonds) unless the purchasing power of PUF investments for any rolling 10-year period has been preserved; (3) A maximum amount equal to seven percent of the average net fair market value of PUF's net position in any fiscal year, except as necessary to pay debt service on PUF bonds. Distributions from PUF Investments to the AUF are allocated two-thirds for the benefit of eligible institutions of the UT System and one-third for the benefit of eligible institutions and agencies of the Texas A&M System. PUF distributions paid to the AUF are expended by each university system to fund two major programs:

(1) Debt Service on PUF Bonds Issued to Fund Capital Expenditures; and

(2) Academic Excellence Programs

PUF Beneficiaries

  • UT Arlington
  • UT Austin
  • UT Dallas
  • UT El Paso
  • UT Permian Basin
  • UT Rio Grande Valley
  • UT San Antonio
  • UT Tyler
  • UT Southwestern Medical Center
  • UT Medical Branch at Galveston
  • UT Health Science Center at Houston
  • UT Health Science Center at San Antonio
  • UT MD Anderson Cancer Center
  • Stephen F. Austin State University
  • Prairie View A&M University
  • Tarleton State University
  • Texas A&M University
    • Texas A&M at Galveston
  • Texas A&M - Central Texas
  • Texas A&M University - San Antonio
  • The Texas A&M Health Science Center
  • Texas A&M AgriLife Research
  • Texas A&M AgriLife Extension
  • Texas A&M Engineering Experiment Station
  • Texas A&M Engineering Extension Service
  • Texas A&M Forest Service
  • Texas A&M Transportation Institute