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Expenses
PUF
Texas A&M University

The large asset base under UTIMCO's management allows for economies of scale in management of the endowment funds. UTIMCO incurs expenses associated with portfolio management, custody and safekeeping, accounting, risk measurement, and other investment related functions. UTIMCO's management fee amounted to $7.5 million for fiscal year 2008, and $6.5 million for fiscal year 2007, or .06% of average net assets for 2008, and .07% of average net assets for 2007. Non-investment manager related fees that were paid totaled $3.0 million and $2.8 million, or .03% and .04%, respectively, of average net assets for the periods ended August 31, 2008 and 2007. Fees paid to external managers, including base and incentive fees, totaled $13.0 million and $18.6 million, respectively, for the years ended August 31, 2008 and 2007, and equated to .11% and .16%, respectively, of average net assets. The PUF also incurred expenses related to the management of the PUF Lands and an oversight fee by UT System, together representing .06% and .04% of the average net asset value and totaling $6.6 million and $4.8 million for the years ended August 31, 2008 and 2007, respectively. In total, expenses paid directly from PUF Investments were $30.1 million during 2008 versus $32.7 million in 2007, which equated to .25% and .29%, respectively of the average net asset value. There are other fees which are incurred by the PUF that are charged by the general partners in partnership investments, mutual fund managers, and hedge fund managers which are netted directly against the investment returns or capital for those investments in accordance with standard industry practice.