Endowment Income, Appreciation Reserve & Values

Investment of Endowment Funds

All endowment funds held by Texas A&M University are invested by The Texas A&M University System as governed by the TAMUS Investment Policy 22.02, System Investment.

Endowment Income, Appreciation Reserve & Values

Distributions are normally made to the endowment income account. Distributions may also be made to the endowment corpus to increase the endowment. Distributions are made quarterly after the last calendar day of November, February, May, and August of each fiscal year.

The distribution for the coming fiscal year is calculated on an annual basis using February balances. The distribution or payout per unit, amount for each quarter is the average of the quarterly market value per unit for the 20 fiscal quarters ending the previous February, multiplied times 5.0% and divided by 4. The payout per unit is multiplied by the number of units in your endowment to reach the quarterly distribution to the income or endowment account. This distribution is split into an Interest portion and an Appreciation Reserve portion. The Interest portion is posted to sub code 0395 at “XQYY SEF Int Income” (where X is the quarter number and YY is the last two digits of the year). The Appreciation Reserve portion is posted to sub code 1000 as “XQYY Apprec Reserve.” The Interest and Appreciation Reserve portions will vary from quarter to quarter, but the total of the two entries as quarterly distribution will remain the same for the fiscal year. Note that the distribution may increase during a fiscal year if more funds are added to the corpus of the endowment.

To view the number of units, the quarterly distribution, and the market value of the endowment, go to http://endowments.system.tamus.edu/ and search by the six digit endowment account number, starting with 074XXX or 076XXX. This report will also show the income account, listed as recipient account.

The calculation of the payout per unit may be seen at System Endowment Fund » The Texas A&M University System in the reports under the “Endowment Spending Calculation” heading.

Use of Endowment Income

Endowment Income deposited into spending accounts must be used for the designated purpose established by the donor (in the case of true or term endowments) or the Board of Regents (in the case of quasi-endowments) per System Investment Policy 22.02 Section 2.4.

Contact: Martha Weeks
Last Updated: May 17, 2012