The operating funds of the 15 institutions that comprise the UT System are invested in the STF and ITF funds. These funds are used primarily to fund the institution’s operating cycle and long term institutional needs associated with capital programs and financial reserves. UTIMCO offers UT System institutions three investment funds that allow the institutions to match the particular time horizon of their operating funds with the time horizon of each investment fund. Please see the file below:
Intermediate Term Fund - ITF
The Intermediate Term Fund (ITF) was established February 1, 2006, as a replacement for the University of Texas System Short Intermediate Term Fund and the Institutional Index Funds. The ITF is a pooled fund for the collective investment of operating funds and other intermediate and long term funds held by UT System institutions and System Administration. The Fund was created to improve the efficiency of operating funds management and to improve investment returns on UT System operating reserves. The ITF functions as a mutual fund in which each eligible account purchases and redeems ITF units on the first business day of each month at the market value per unit at the time of purchase or redemption. A distribution is paid the first day of each month based on a percentage of each unitholder’s prior month beginning balance.
Short Intermediate Term Fund - SITF
The Short Intermediate Term Fund (SITF) was established December 3, 1992, by the Board of Regents of The University of Texas System (the "Board") and commenced operations on March 1, 1993. The SITF served as a pooled investment vehicle for operating funds of The University of Texas System component institutions and System Administration. Operating funds are defined as those with an investment horizon of one to five years. The SITF also served as the source of self-liquidity for the UT System's $350 million commercial paper program and for the series 2001A revenue bonds. The SITF is structured as a mutual fund where participants can purchase or sell units at market value weekly on Wednesdays and the first business day of each month. The SITF's income is either reinvested or distributed to the unitholders monthly. The SITF's structure allows for greater economies of scale, enhanced flexibility, and centralized, full-time professional management. All units of the SITF were liquidated January 31, 2006. The proceeds were allocated to the Short Term Fund or the newly created Intermediate Term Fund.
Short Term Fund - STF
The Short Term Fund (STF) is comprised of an investment in the Dreyfus Institutional Preferred Money Market Fund. The STF is utilized for the "overnight" operating funds of the component institutions and is the cash equivalent investment for endowments and other trust funds.
Institutional Index Funds - IIF
The vast majority of UT System institutional funds are expected to be expended within five years. Nevertheless, a significant portion of funds classified as institutional funds represents long-term capital reserves such as depreciation reserves. For such funds where achievement of replacement cost and preservation of purchasing power are significant objectives, UTIMCO created the Institutional Index Funds (IIFs). These funds consist of a U.S. debt index fund (DIF) and a U.S. equity index fund (EIF) and are designed to offer higher expected returns than those available with the STF and the SITF. Prior to January 31, 2006, all units were liquidated and were invested in the Short Term Fund.
