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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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