Operating funds are used primarily to fund UT System institutions' short-term operating needs as well as medium-term institutional needs associated with capital programs, financial reserves, and endowment matching funds. The UT System institutions have two investment fund options, the Short Term Fund (STF) and the Intermediate Term Fund (ITF). The ITF was established February 1, 2006, as a replacement for Short Intermediate Term Fund and the Institutional Index Funds. The ITF was created to improve the efficiency of operating funds management and to improve investment returns on UT System operating reserves. As of August 31, 2008, operating funds of UT System institutions amounted to $5,364 million.