Texas Permanent University Fund (PUF)

The Texas Permanent University Fund (PUF) is an endowment fund established in 1876 to support the University of Texas System and the Texas A&M University System. These two university systems are among the largest and most prominent public higher education systems in the United States.

The PUF was created by the Texas Constitution, which set aside land in West Texas to be used for the benefit of the University of Texas and Texas A&M University. Over time, the PUF has grown through the leasing of land for grazing, agriculture, and, most significantly, oil and gas production.

The income generated from these activities is invested in various assets, such as stocks, bonds, and real estate, to grow the fund's principal and provide a consistent source of revenue for the university systems. The University of Texas Investment Management Company (UTIMCO) manages the investments of the PUF.

The PUF is unique among university endowments in the United States because of its large land holdings and the significant revenue generated from oil and gas production. The market value of the PUF was approximately $33.9 billion, making it one of the largest university endowments in the country.

The PUF's revenues are distributed to the university systems through the Available University Fund (AUF), which is subject to legislative appropriation. The AUF funds are used to support various initiatives, including capital projects, faculty salaries, research, financial aid, and other academic programs at the University of Texas and Texas A&M University systems.