Texas A&M University is one of the leading public research universities in Texas and the United States. The university has a sizable endowment fund that helps support its educational mission. In recent years, Texas A&M’s endowment investment performance has been quite strong thanks to smart management by the university’s investment professionals.
Texas A&M endowment size reached $13.5 billion in 2022
According to data from the National Association of College and University Business Officers (NACUBO), Texas A&M’s endowment reached $13.5 billion in size as of 2022 fiscal year end. This makes it one of the top 20 largest university endowments in the United States. The endowment provides crucial funding for student scholarships, faculty hiring, research initiatives and more at Texas A&M.
Texas A&M endowment returned 17% in 2022 fiscal year
Texas A&M’s endowment generated a return of 17% for the 2022 fiscal year ending August 31, 2022. This compared favorably to an average return of 10.2% for all U.S. university endowments. The endowment’s outstanding performance was driven by successful investments across the portfolio, including public and private equity, real assets, hedge funds and more.
Texas A&M pursues diversified investment strategy
The Texas A&M endowment fund pursues a diversified investment strategy managed by the Texas A&M Foundation. Asset allocation includes public equity (23%), private equity (23%), real assets (16%), fixed income (4%), hedge funds (17%) and cash (17%). The diversified approach provides exposure to multiple asset classes while managing overall portfolio risk.
Texas A&M spends over $300 million a year from endowment
Texas A&M relies heavily on its endowment to support the university’s academic mission. In 2022, Texas A&M spent $327 million from the endowment to fund scholarships, faculty chairs, research and other initiatives. This spending rate of 5.2% is in line with endowment best practices for preserving intergenerational equity.
Texas A&M endowment managed by experienced investment office
The Texas A&M Foundation investment office oversees management of the university’s endowment fund. The Chief Investment Officer leads a team of experienced investment professionals responsible for asset allocation, manager selection, risk management and more. The investment office aims to maximize returns over the long run while controlling risk.
In summary, Texas A&M University has built an endowment of over $13 billion that provides crucial support for the university. Thanks to skilled investment management, the endowment has delivered strong returns well above average in recent years. Texas A&M spends around 5% of the endowment annually to fund its academic mission while preserving the endowment for future generations.