THE UNIVERSITY OF TEXAS SYSTEM

HISTORICAL PERFORMANCE

PERMANENT UNIVERSITY FUND,
LONG TERM FUND
AND SHORT / INTERMEDIATE TERM FUND

FOR THE YEARS 1992 - 1996


PERMANENT UNIVERSITY FUND

	Years Ending August 31					Five Years Ending August 31
Fund	1992	1993	1994	1995	1996	1992-96
Fixed Income (1)	14.8 %	11.7 %	1.1 %	13.9 %	3.9 %	8.5 %
Domestic Equities (2)	7.4 %	12.9 %	5.8 %	19.7 %	17.2 %	12.5 %
International Equities (3)	N/A	N/A	12.5 %	0.3 %	9.7 %	N/A
Alternative Assets (4)	5.9 %	12.9 %	41.5 %	23.5 %	25.9 %	18.5 %
Total Fund1	10.8 %	12.4 %	3.3 %	16.1 %	10.7 %	10.6 %

LONG TERM FUND

	Years Ending August 31					Five Years Ending August 31
Fund	1992	1993	1994	1995	1996	1992-96
Fixed Income (1)	15.1 %	12.0 %	1.1 %	13.2 %	4.5 %	8.6 %
Domestic Equities (2)	7.4 %	12.9 %	5.7 %	N/A	17.4 %	12.5 %
International Equities (3)	N/A	N/A	12.5 %	0.1 %	9.5 %	N/A
Alternative Assets (4)	0.8 %	11.9 %	32.1 %	35.1 %	14.2 %	18.1 %
Total Fund1	11.1 %	12.2 %	4.2 %	15.8 %	11.6 %	10.9 %

SHORT / INTERMEDIATE TERM FUND

	Years Ending August 31					Five Years Ending August 31
Fund	1992	1993	1994	1995	1996	1992-96
Total Fund (5)	N/A	N/A	2.0 %	6.7 %	4.8 %	N/A

BENCHMARKS

		Years Ending August 31					Five Years Ending August 31
	Fund	1992	1993	1994	1995	1996	1992-96
(1)	Salomon Broad Index	13.7 %	11.1 %	1.5 %	11.4 %	4.1 %	7.6 %
(2)	S & P 500 Index	7.9 %	15.2 %	5.5 %	21.5 %	18.7 %	13.6 %
(2)	Russell 3000	8.7 %	18.1 %	4.8 %	21.8 %	17.3 %	14.0 %
(3)	Financial Times Actuaries World (excluding U.S.)	0.4 %	26.9 %	10.8 %	0.1 %	8.3 %	8.7 %
(4)	S & P 500 + 5%	12.9 %	20.2 %	10.5 %	26.5 %	23.7 %	18.6 %
(5)	Composite Index	N/A	N/A	1.7 %	7.6 %	5.2 %	N/A
	Consumer Price Index	3.1 %	2.8 %	2.9 %	2.6 %	2.9 %	2.9 %