Short Term Fund ($1,315.1 million)
The UT System Short Term Fund (STF) is an institutional money market mutual fund consisting of the UT System institutions' working capital and other operating fund balances with an investment horizon less than one year. Withdrawals from the STF are used by the UT System institutions for day-to-day operating purposes and in the management of cash. The STF is invested in the Dreyfus Institutional Preferred Money Market Fund (Dreyfus Fund). The STF's investment objective is to maximize current income consistent with the absolute preservation of capital and maintenance of adequate STF liquidity. The STF maintains a degree of liquidity and safety of principal by investing in short-term money market obligations, including securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, U.S. dollar denominated time deposits, certificates of deposits, banker's acceptances and other short-term obligations issued by domestic and foreign banks, repurchase agreements, asset-backed securities, and high quality domestic and foreign commercial paper and other short-term corporate obligations, including those with floating or variable rates of interest. The Dreyfus Institutional Preferred Money Market Fund was rated AAAm by Standard and Poor's Inc., the highest credit rating that a money market fund may receive from the firm.
For the year ended August 31, 2002, STF balances invested in the Dreyfus Fund increased from $843.2 million to $1,315.1 million. Endowment and other operating funds (PUF, PHF, LTF, GEF, SIF and SITF) also invested in the Dreyfus Fund increased from $1,870.7 million to $2,114.4 million, resulting in a combined UT System total balance of $3,429.5 million. As of August 31, 2002, total UT System balances represented 35.9% of the Dreyfus Fund.
The chart below presents the performance of the STF compared to the 90 Day Treasury Bill rate and the iMoneyNet, Inc. Money Market Funds average return for money market funds.
Click to print charts in this section using PDF format