Operating funds are used primarily to fund UT System institutions’ short-term and intermediate-term operating needs as well as long-term institutional needs associated with capital programs, financial reserves, and endowment matching funds. The UT System institutions have two investment fund options for the investment of operating funds, the Short Term Fund (STF) and the Intermediate Term Fund (ITF). The ITF was established February 1, 2006, as a replacement for the 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, 2006, the amount invested in the STF and ITF amounted to $4,331.1 million.