PERMANENT UNIVERSITY FUND Report on Certain…

          PERMANENT UNIVERSITY FUND

          Report on Certain Specified Data
  as Required by Art. 4413 (34e) of the Civil Statutes

                     December 31, 2007




This report is available on the UTIMCO website at www.utimco.org
                              PERMANENT UNIVERSITY FUND


Beneficiaries of the Fund

The Permanent University Fund (PUF) is a public endowment contributing to the support of institutions
of The University of Texas System (UT System) and the Texas A&M University System (A&M
System). The Constitution of 1876 established the PUF through the appropriation of land grants
previously given to The University of Texas plus one million acres. Additional land grants to the PUF
were completed in 1883 with the contribution of another one million acres. Today the PUF contains 2.1
million acres located in 24 counties primarily in West Texas.

Responsibility and Management of the Fund

The State Constitution vests fiduciary responsibility for the PUF with the Board of Regents of The
University of Texas System. The Board has entered into a contract with a nonprofit corporation, The
University of Texas Investment Management Company (UTIMCO), for UTIMCO to invest funds under
the control and management of the Board. UTIMCO may not engage in any business other than
investing funds designated by the Board under the contract. Specific investment decisions are handled
by the investment staff as well as unaffiliated investment managers who are employed from time to time.

Investment Objectives

The primary investment objective shall be to preserve the purchasing power of PUF assets and annual
distributions by earning an average annual total real return after inflation of 5.1% over rolling ten-year
periods or longer. This 5.1% target was derived by adding the current target distribution rate of 4.75%
plus an annual expected expense of .35% The PUF's success in meeting its objectives depends upon its
ability to generate high returns in periods of low inflation that will offset lower returns generated in
years when the capital markets underperform the rate of inflation.

The secondary fund objective is to generate a fund return in excess of the Policy Portfolio benchmark
and the median return of the universe of the college and university endowments with assets greater than
$1 billion as reported by Cambridge Associates over rolling five-year periods or longer. The Policy
Portfolio benchmark will be maintained by UTIMCO and will be comprised of a blend of asset class
indices weighted to reflect PUF's asset allocation policy targets.


Market Value and Book Value of the PUF

On December 31, 2007 the market value and book value of the PUF was $12.1 billion and $10.6 billion,
respectively, exclusive of land acreage.




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                             PERMANENT UNIVERSITY FUND

Investment Performance of Ten Largest Stock Holdings - January 1, 2007 through December 31, 2007

                                                        Market         Total       Percentage of Fund
                     Name                               Value          Return      December 31, 2007
ISHARES TR S&P GLOBAL 100                           $   90,793,766      11.11%            0.75%
SIMON PPTY GROUP INC                                    28,510,753     -11.34%            0.24%
BOSTON PROPERTIES INC                                   26,063,482     -10.36%            0.22%
DEVRY INC                                               25,408,440      86.03%            0.21%
PUBLIC STORAGE                                          22,117,846     -22.83%            0.18%
SL GREEN REALTY CORP                                    19,677,816     -27.81%            0.16%
STARWOOD HOTELS & RESORTS CO                            18,873,019     -28.09%            0.16%
EQUITY RESIDENTIAL                                      18,427,744     -24.90%            0.15%
HOST HOTELS & RESORTS INC                               16,882,857     -27.14%            0.14%
PROLOGIS INT                                            15,761,845       7.35%            0.13%




Asset Allocation

Asset allocation is the primary determinant in the volatility of the Fund's performance, subject to the
asset allocation range as specified by the investment policy, and is the responsibility of UTIMCO. The
following represents asset allocation at December 31, 2007.

               U.S. Equities                               19.13%
               Global Ex US Equities                       19.13
               Directional Hedge Funds                     11.18
               Absolute Return Hedge Funds                 14.46
               Private Capital                             13.77
               Inflation Linked                            12.95
               Fixed Income                                 8.30
               Cash & Cash Equivalents                      1.08
                                                          100.00%




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Economically Targeted Investments

The PUF is invested, as well as committed to invest, in various private equity funds which are
considered economically targeted investments. Economically targeted investments means an investment
in which at least 50% of the total investment is allocated to economic development within the state of
Texas or investment in businesses or entities located within the state of Texas.

The following is the market value of these investments:


                             Investment Name                               MarketValue
        AUSTIN VENTURES IV LP                                             $      24,736
        AUSTIN VENTURES IX LP                                                 3,662,431
        AUSTIN VENTURES V LP                                                    466,607
        AUSTIN VENTURES VI LP                                                 3,333,385
        AUSTIN VENTURES VII LP                                                4,625,634
        AUSTIN VENTURES VIII LP                                               7,044,859
        CTIP PARTNERS LP                                                         75,845
        ENCAP ENERGY CAPITAL FUND III-B LP                                    5,397,918
        ENCAP ENERGY CAPITAL FUND IV-B LP                                     1,517,602
        ENCAP ENERGY CAPITAL FUND VII LP                                      2,529,326
        ENERGY ASSET OPTION FUND                                                931,903
        ESCALATE CAPITAL I LP                                                13,006,086
        GOLDSTON OIL CO - GLADEWATER JETER ROYALTY INTEREST                   1,647,823
        GOLDSTON OIL CO - JETER #3                                              871,448
        GOLDSTON OIL-GLADEWATER JETER                                         2,164,984
        GOLDSTON OIL CO -JETER #5                                               619,369
        GOLDSTON OIL CO -JETER #4                                               950,537
        JATOTECH VENTURES LP                                                  2,513,385
        PRIME VIII LP                                                         4,214,866
        PTV SCIENCES II LP                                                    5,860,395
        PTV SCIENCES LP                                                      17,526,115
        PINTO TV ANNEX FUND LP                                                  939,941
        RSTW PARTNERS III LP                                                    610,099
        SCF-IV LP                                                            24,513,800
        SCF-V LP                                                              8,298,797
        SCF-VI LP                                                            10,512,476
        SOUTHWEST OPPORTUNITY FUND I LP                                       2,532,540
        TEXAS GROWTH FUND - 1991 TRUST                                           10,363
        TEXAS GROWTH FUND - 1995 TRUST                                        1,216,516
        WINGATE PARTNERS II LP                                                1,208,400
                                                                          $ 128,828,186




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