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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

March 8, 2016
March 8, 2016
Cash Management

 

Part 18. Non-Endowment Funds Investment Management


A. Introduction

The University of Texas at Austin non-endowment investment management processes are governed by The University of Texas System Allocation Policy for Non-Endowment Funds.

B. Requirements

  1. The target allocation for non-endowment funds held by the university is 10 percent in the Short Term Fund (STF) and 90 percent in the Intermediate Term Fund (ITF). 
  2. Should the STF allocation end below 5 percent or greater than 15 percent of the university’s non-endowment funds for a month, the university will execute a rebalancing transaction to get back to the target percentage of 10 percent STF, unless there are expected cash inflows or outflows within the next calendar month that will bring balances back within the allowed range.
  3. The university will notify UT System Administration should STF funds be outside of the allowed range at the end of the month but no rebalancing is initiated due to expected cash inflows or outflows.
  4. Should a rebalancing transaction greater than $25 million be necessary, the university will inform the University of Texas Investment Management Company (UTIMCO) at least three business days in advance to facilitate UTIMCO’s ability to transact efficiently.

C. Mark to Market

The market value of ITF investments shall be determined monthly, and the university’s ledgers shall be adjusted to reflect the market value of the investments each month.

D. Related Offices

The University of Texas System Board of Regents' Rules and Regulations Series 70201*
The University of Texas System Allocation Policy for Non-Endowment Funds
University of Texas Investment Management Company (UTIMCO)

E. Related Offices

Office of the Vice President and Chief Financial Officer
http://www.utexas.edu/business/

University of Texas Investment Management Company (UTIMCO)
http://www.utimco.org/scripts/internet/index.asp

University of Texas System Board of Regents
http://www.utsystem.edu/board-of-regents

 

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