About The Program
About The Program
The TexasTERM Local Government Investment Pool was created in 2000 to provide commingled investment services to Texas public funds investors. In 2021 a new investment portfolio, TexasDAILY Select, was created to expand the investment options available to investors. Concurrent with the new portfolio, TexasTERM rebranded as the Texas Range Investment Program ("Texas Range" or the "Program") to better communicate the expansive range of investment options available to investors.
The Texas Range investment options are designed to help investors achieve:
- Safety - Texas Range invests only in those securities authorized by the statutes governing investment of funds by local governments in the state.
- Liquidity - The Program offers TexasDAILY and TexasDAILY Select, fully liquid portfolios that are rated AAAmmf* by Fitch.
- Higher potential yield - By pooling the funds of investors, Texas Range can invest in money market instruments of larger denominations than possible for a single local government entity, which presents an opportunity for higher yields.
- Laddered maturities with a fixed rate - The TexasTERM Portfolio allows funds to be invested in a fixed rate to a specific maturity date to match expected cash flow needs.
- Accounting and safekeeping - Texas Range provides access to a system which accounts for each investor’s investments in a manner compatible with municipal accounting and auditing requirements.
- Convenience - Texas Range offers the advantages of investment by same-day wire or next-day transfer through automated clearing house (ACH) funds.
Texas Range investors elect an Advisory Board of experienced local government officials, finance directors and treasurers who are responsible for overall management of the Program, including the selection of service providers that are focused on providing professional investment services to investors.
Texas Range 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 Adviser of the Program provides comprehensive arbitrage rebate compliance services to investors who invest their bond proceeds in TexasDAILY, TexasDAILY Select, or TexasTERM. Investors receive the following correspondence/reports/services from the Investment Adviser:
- 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
*AAAmmf Fitch Rating
The TexasDAILY and TexasDAILY Select portfolios have received a AAAmmf rating from Fitch Ratings ("Fitch"). The Fitch AAAmmf rating reflects Fitch's review of the portfolios' overall credit quality and diversification and low exposure to interest rate and spread risks as well as the capabilities and resources of PFM Asset Management LLC as investment adviser. According to Fitch's rating criteria, the AAAmmf rating signifies an extremely strong capacity to achieve the portfolios' investment objective of preserving principal and providing shareholder liquidity through limiting credit, market, and liquidity risk. However, it should be understood that this rating is not a "market" rating nor a recommendation to buy, hold or sell the securities. For a full description on rating methodology, visit Fitch Ratings.
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