UTIMCO's large asset base allows for economies of scale in the management of the endowment funds. UTIMCO incurs expenses associated with strategy and analysis, portfolio management, custody and safekeeping, accounting and other investment related functions. Investment fees and other expenses paid to external managers are, by far, the largest component of expenses. External manager fees and expenses are paid from the endowment assets and are not netted against distributions. UTIMCO maintains tight control of expenses.