As of March 1, 2001, the Permanent Health Fund (PHF) and the Long Term Fund (LTF) purchased units in the newly created General Endowment Fund (GEF) in exchange for their contribution of investment assets. The PHF and the LTF owned 23.8% and 76.2%, respectively, of the GEF as of March 1, 2001. The GEF, established by the Board of Regents effective on March 1, 2001, is a pooled fund for the collective investment of long-term funds under the control and management of the Board. The GEF is organized as a mutual fund in which the PHF and LTF purchase and redeem units quarterly at the GEF’s market value per unit. Fiduciary responsibility for the GEF rests with the Board of Regents. The day-to-day operational responsibilities of the GEF are delegated to UTIMCO. The GEF provides for greater efficiencies and cost savings than was possible when the investments of the PHF and LTF were managed separately.
The GEF reports provide information on the various investment details of the PHF’s and LTF’s ownership interest in the GEF. The GEF is excluded from assets under management since its investment value is included in the PHF and the LTF.
An endowment is a permanent investment in the future of the University. Endowed funds are invested, rather than used
as cash for immediate needs. A portion of the earnings from an endowment is distributed to the University.
The remainder is added back into the principal, ensuring steady growth of the endowment. Private endowments are primarily invested in units of the Long Term Fund.
Development staffs at each campus or at the U.T. System are available to assist donors to structure gifts to provide the greatest positive
impact to the institution and the donor. To contact a development officer at one of the 15 U.T. System institutions, or
at the U.T. System itself, please see our list of institution development offices or contact the
U.T. System Office of External Relations.
