TexasTERM was created in 2000 to allow Texas local governments and school districts to pool their funds for investment. By pooling the funds of many government entities, the Pool can help investors achieve the following investment objectives:

• Safety TexasTERM invests only in those securities authorized by the statutes governing investment of funds by local governments in the state.
• Liquidity The Pool offers TexasDAILY, a fully liquid money market portfolio that is rated AAAm* by Standard and Poor's.
• Higher potential yield By pooling the funds of investors, TexasTERM can invest in money-market instruments of larger denominations than possible for a single local government entity, which may result in higher yields. 
• Accounting and safekeeping TexasTERM provides a system which accounts for each investor’s investments in a manner compatible with municipal accounting and auditing requirements.
• Convenience TexasTERM offers the advantages of investment by same-day wire or next-day transfer through automated clearing house (“ACH”) funds.

TexasTERM is directed by an Advisory Board of experienced local government officials, finance directors and treasurers and is managed by a team of industry leaders that are focused on providing professional investment services to investors.
TexasTERM has been organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code (the “PFIA”).

Arbitrage Rebate Compliance Services 

The Investment Manager of the Pool provides comprehensive Arbitrage Rebate Compliance services to Participants who invest their bond proceeds in TexasDAILY or TexasTERM. Participants receive the following correspondence/reports/services from the Investment Manager:

• Spending exception compliance reports including notification of an upcoming benchmark;
• Yield restriction compliance notification;
• Annual estimates of accrued arbitrage rebate and yield restriction liabilities;
• Notification of Installment Calculation Date sent 60 days in advance of the required calculation date; and
• Retention of arbitrage related documents and investment records

For More Information

To find out more about how TexasTERM can meet your needs, please call one of our Program Representatives at 1-866-839-8376.

*The liquid portfolio has received a AAAm rating from Standard & Poor’s ("S&P"). S&P fund ratings are based on analysis of credit quality, market price exposure, and management. According to S&P's rating criteria, the AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share net asset value. However, it should be understood that these ratings are not "market" ratings nor a recommendation to buy, hold or sell the securities. For a full description on rating methodology, visit Standard & Poor's website (Standard And Poor's).