Investments
The Foundation employs independent professional asset managers and financial advisors to manage its assets and maintains sole control of those assets. The Foundation’s Investment Committee provides oversight and recommends asset managers and the allocation of assets among managers. Currently, the Foundation uses three professional asset managers who pursue diverse strategies in owning public and private equity and fixed income securities.
The John Charles Townes Foundation (JCT) which holds assets for the exclusive benefit of the Law School is resident within The University of Texas. Its assets are managed by UTIMCO, along with other UT assets.
A history of the management of our assets follows:
- Through 1994
- Two investment Managers – Eagle and Vaughn Nelson
- 30%-40% common stock
- 10%-20% cash
-
December 1994
- Hired MacKay Shields, an all cap growth equity manager, to replace Eagle and manage approximately half of the assets (stocks and bonds).
- Maximum equity commitment increased.
- 1995
- Adopted “Total Return” philosophy as to the Foundation’s spending policy. Among other things, the adoption permits a more aggressive strategy for investments.
- Adopted “Total Return” philosophy as to the Foundation’s spending policy. Among other things, the adoption permits a more aggressive strategy for investments.
- October 1995
- Hired Hotchkis and Wiley, large cap value manager, to replace remaining original manager, Vaughn Nelson.
- Maximum equity commitment increased.
- 1997
- Hotchkis and Wiley replaced by INVESCO – Hotchkis and Wiley was bough by Merrill Lynch, staff departed.
- Hotchkis and Wiley replaced by INVESCO – Hotchkis and Wiley was bough by Merrill Lynch, staff departed.
- 1998
- Maximum equity commitment changed to 65% (up to 15% can be foreign).
- Maximum equity commitment changed to 65% (up to 15% can be foreign).
- 1999
- Maximum equity commitment increased to 70%.
- Maximum equity commitment increased to 70%.
- 2000
- Added Torrey Funds (Hedge Fund).
- Added two technology funds (Invesco and Nicholas Applegate) to bring the overall portfolio technology exposure to that of the market.
- 2001
- Invesco, because of poor performance, replaced by Nicholas Applegate.
- Invesco, because of poor performance, replaced by Nicholas Applegate.
- 2004
- The Investment assets overseen by the Foundation were completely restructured. Two new investment companies were retained:
- The Investment Fund for Foundations’ Multi Asset Fund.
- Vanguard’s STAR Fund.
- The Investment assets overseen by the Foundation were completely restructured. Two new investment companies were retained:
- 2006
- UTIMCO became money manager.
- UTIMCO became money manager.
- 2013
- Terminated management agreement with UTIMCO.
- Renewed relationship with The Investment Fund for Foundations (TIFF) for a majority of the Foundation’s assets, dividing a percentage of the assets under management between TIFF’s multi-asset fund and private equity fund for endowments.
- Employed Wallace Capital Management, Inc. of Dallas and BlackGold Capital Management LP of Houston to employ, respectively, public equity and fixed income strategies for a minority of the Foundation’s assets.