UTIMCO in the running for Endowment of the Year
AUSTIN – The University of Texas/Texas A&M Management Company (UTIMCO), one of the nation’s largest university endowments, is officially on the fast track to becoming the nation’s best university endowment.
UTIMCO has been nominated for Endowment of the Year by Institutional Investor, the world’s premier publisher of financial news, research and information.
UTIMCO is one of five endowments nominated for the prestigious award to be presented at the 16th Annual Hedge Fund Industry Awards; the other nominees include The J. Paul Getty Trust, Northwestern University, Penn State Office of Investment Management and Texas Tech University System. The winner will be announced on June 28 in New York City.
Over the course of the last few years, UTIMCO has refocused on its purpose, its culture and its long-term performance, said Britt Harris, UTIMCO’s chief investment officer. As a result, the assets under management by UTIMCO has grown by over $6 billion – to $44 billion – and UTIMCO has outperformed most other large endowments.
“To receive this nomination as one of the world’s top investment organizations is a recognition of the work and dedication of all those involved in this important investment and services system,” Harris said. “Our objective is to be the top-performing higher education asset management organization in the nation so that we can support the life-changing and life-saving missions of UT and A&M institutions.”
Harris joined UTIMCO in July, after more than a decade at the helm of the Teacher Retirement System of Texas, one of the nation’s largest public pension funds. He was the 2013 recipient of aiCIO’s Lifetime Achievement Award and is an advisor to the New York Federal Reserve.
According to Institutional Investor, nominees are selected based on performance over the past three years with special consideration given to the most recent year.
For the reporting period ending in June 2017, UTIMCO’s one-year returns were 13.4 percent, placing it ahead of other large peer endowments including Stanford, Princeton, Yale and Harvard.
Earlier this year, Harris unveiled “Total Alignment,” his framework for managing a large endowment that calls for establishing a common culture throughout UTIMCO and improved communication and coordination between investment managers.
Harris has also hired several top national investment managers, including Rich Hall, who previously served as the head of private equity at Harvard Management Company.
“This is a well-deserved honor and validates the exceptional leadership and expertise of Britt Harris and his entire team,” said Jeffery Hildebrand, chairman of the UTIMCO Board of Directors and vice chairman of the UT System Board of Regents. “Fortunately for the state of Texas, the ultimate winners are the UT and A&M institutions who benefit from the performance of the endowment and use its resources to improve student success, provide health care and drive innovation, discovery and research.”
UTIMCO currently manages more than $44 billion in assets (endowed and non-endowed), including the third largest higher education endowment in the nation behind Harvard and Yale. Several of its endowments include the Permanent University Fund for the benefit of UT and A&M institutions, currently valued at $21.4 billion, and the Long Term Fund, which invests and manages donor gifts to UT institutions, currently valued at $8.8 billion.
Created in 1996, The University of Texas/Texas A&M Investment Management Co. (UTIMCO) is the first 501(c)(3) investment corporation formed by a public university system and oversees the investments for The University of Texas and Texas A&M systems. The investment corporation is governed by a nine-member Board of Directors consisting of members appointed by the UT System and Texas A&M Boards of Regents.