UT Endowments Drop

Financial meltdown trigeers nearly $1 billion decline

The University of Texas at Austin endowment has declined by nearly $1 billion this year as a result of the turmoil in worldwide financial markets.

The university's share of the Permanent University Fund, plus its other endowment holdings, stood at $7 billion at the start of the year.

By the end of September, the value had declined by nearly 13 percent to $6.1 billion.

The Austin American-Statesman is reporting that UT officials are already revising next year's budget projections, even as they brace for more bad news about the endowment's performance in the past month.

Two-thirds of the Permanent University Fund is earmarked for UT System campuses and one-third for Texas A&M University System institutions.

That fund was worth $13.8 billion at the start of the year but its value dropped nearly 14 percent to $11.9 billion by the end of September.

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