The Foundation has a solid record of investing. Over the years, investment performance has consistently met internal performance goals and outperformed many peer organizations, ranking in the first or high second investment quartile. The long-term investment pool's 15-year return of 6.4% has accomplished the mission of preserving the spending power of the endowment while enduring two historic market moving events in the 2008 Global Financial Crisis and the 2020 Great Coronavirus Recession.
Prior to 2015, the long-term investment pool (LTIP) was benchmarked against a passive index comprised of a global equity index and a domestic bond index (75% MSCI ACWI/25% Barclays U.S. Bond Aggregate Index). In 2015, the Foundation’s Board of Trustees implemented a new policy benchmark that better reflects the target asset allocation of the LTIP. Our custodian bank was able to back test the new policy benchmark for returns prior to 2015, but only back to 2012. As such, we are not able to produce a 10 and 15-year return for the new policy benchmark. We are still able to report the old 75/25 benchmark for all periods shown here.
Long-Term Investment Pool Asset Allocation
By investing assets, the Foundation seeks to preserve the purchasing power of gifts while providing steady earnings for Texas A&M. The Foundation’s long-term investment pool, which has a total value of $1.9 billion, is composed mostly of endowments, but also includes other non-endowed funds invested for the long term.