SIF Beneficiaries

UT Arlington
UT Austin
UT Brownsville
UT Dallas
UT El Paso
UT Pan American
UT Permian Basin
UT San Antonio
UT Health Science Center at Houston
UT Tyler
UT Health Center at Tyler
UT Southwestern Medical Center at Dallas
UT Medical Branch at Galveston
UT Health Science Center at San Antonio
UT M. D. Anderson Cancer Center
UT System

Separately Invested Funds ($174.0 million)

Overview
The UT System Separately Invested Funds (SIF) consist of private endowments and over 40 charitable trusts. The nature of the underlying asset or donor restrictions preclude the SIF's investment in the Long Term Fund.

Distributions from separately invested endowments support a variety of academic and health programs at UT System institutions.

The charitable trusts are separate legal entities established according to statutory and regulatory requirements. The UT Board is trustee for these trusts, which had a combined market value of $33.2 million as of August 31, 2002. UTIMCO provides investment management and all accounting and tax reporting services. Personnel of the Office of Estates and Trusts of UT System, acting as trust officers, provide all other services including review of trust instruments, coordination of gift receipts, and response to donor and beneficiary questions. Upon termination of a charitable trust, the remaining value of the trust is distributed to the named institution in accordance with the terms of the trust instrument.

UTIMCO invests the trust assets in both fixed income securities and fixed income and equity mutual funds. The allocation between fixed income and equity depends on various factors including the type of trust, the payout percentage, and the age of the beneficiaries or term of the trust. The fixed income asset allocation for most trusts is between 40% and 60% and the remainder is allocated to equities. This allocation is intended to provide a balanced investment mix emphasizing reasonable growth of principal for the remainder beneficiaries.

Currently, expenses associated with the charitable trusts are minimal custody fees (less that $20 per trust per year at this time). The investment management fees of the mutual fund investments used by the trusts range from .57% to 1.1% of the mutual funds' net asset value.

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