Operations

20. How and when are LTF units purchased and redeemed?
Units are purchased on quarterly buy-in dates of March 1, June 1, September 1, and December 1. Funds wired to UTIMCO prior to a quarterly purchase date are immediately invested in a money market account until LTF units can be purchased. Interest earned on the money market account during the interim period is distributed to the component institution of record.

21. What are the expenses of the GEF and LTF?
UTIMCO's large asset base allows for economies of scale in the management of the endowment funds. UTIMCO incurs expenses associated with strategy and analysis, portfolio management, custody and safekeeping, accounting and other investment related functions. The GEF was created as the investment vehicle in which the LTF and PHF could get cost effective exposure to a well diversified investment portfolio. Both the LTF and PHF pay the same fee for every unit of GEF owned by these funds. However, there are additional expenses which differ for the LTF and PHF. Therefore, the total fee paid by each unit of the LTF includes LTF expenses plus a portion of the GEF expenses. The UTIMCO fee for 2003 fiscal year was 0.12% of LTF average net assets; fees and expense paid to external managers and other service providers totaled 0.17% of LTF average net assets. The LTF is also assessed an annual administrative fee on behalf of UT System components for the support of enhanced and expanded endowment compliance. In addition, the LTF is assessed an education fee by UT System. The compliance and education fees for 2003 were 0.11% of LTF average net assets.

22. What types of reporting and services are available to obtain periodic information about the Fund?
UTIMCO provides a variety of reports and services, including an annual report, an endowment funds brochure and individual donor statements that are available via UTIMCO's website at www.utimco.org. UT System component institutions may obtain daily individual account information via the Component Reporting Information System (CRIS), also accessed through the UTIMCO website.