The Texas Permanent School Fund has increased in value to $22 billion from $15.9 billion in the spring, resulting in a total return of 2.55% over the past 12 months.

The latest analysis released last week by the State Board of Education showed an annualized return of 4.74% over the past five years.

Chief investment officer Holland Timmins said the fund outperformed its policy benchmark by 84 basis points, calling it a solid return for a year in which capital markets experienced their worst decline since the Great Depression.

The PSF was established in 1854 with a $2 million state investment. The fund includes stocks, bonds, and oil and gas royalties from state-owned land. It has been used to guarantee school district debt since 1985, and offers a triple-A enhancement to general obligation bonds issued by most local school districts.

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