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What is Texas CLASS?

Established in 1996…

The Texas Cooperative Liquid Assets Securities System Trust (Texas CLASS) was created as a local government investment pool (LGIP) pursuant to Section 2256.016 of the Public Funds Investment Act, Texas Government Code (PFIA). Per state code, entities may pool any of their funds, or funds under their control. Texas CLASS seeks to preserve principal, maintain the liquidity of the funds, and prioritize yield. The Texas CLASS Trust Agreement is an agreement of indefinite term regarding the investment, reinvestment, and redemption of local government funds. The parties to the Trust Agreement are Texas local government entities that choose to participate in the Trust (the Participants), Public Trust Advisors, LLC (Public Trust) as Program Administrator, and UMB Bank, N.A. as Custodian.

 

Under the Trust Agreement, Texas CLASS has four general objectives:

  1. Legality
  2. Safety
    • To minimize risk by managing portfolio investments to preserve principal and maintain a stable Net Asset Value (NAV).
    • To maintain the highest rating for Texas CLASS from a nationally recognized statistical rating organization as long as such rating is required by Texas State Law.
  3. Liquidity
    • To manage portfolio investments so cash can be available as required to finance Participants’ operations.
  4. Yield
    • To enhance current income to the degree consistent with legality, safety, and liquidity.

 

Any local government that becomes a Participant has the same rights and obligations under the Trust Agreement as other Participants. Each such Participant shall have the right to invest funds for credit to such Participant’s account. There is no minimum amount that must be invested pursuant to the Trust Agreement nor is there any limitation on the aggregate amount of funds that any Participant may invest at one time. Similarly, each Participant has the right from time-to-time to request payment of an amount equal to or less than the amount of funds in the Participant’s account. Subject to meeting the daily times for giving notice (times may be adjusted by the Program Administrator), there is no limitation on the period of time that funds may be invested through the Trust prior to such payment.

General Questions

  • Who oversees Texas CLASS?

  • Texas CLASS is overseen by the Texas CLASS Board of Trustees, comprised of active members of the pool and elected by the Participants, guided by the Advisory Board. The Board is responsible for selecting the Administrator and Investment Advisor. The Board retains the services of Public Trust Advisors, LLC (Public Trust).

  • Who is eligible to use Texas CLASS?

  • Any municipality, county, school district, or authority created under Section 52(b)(1) or (2), Article III or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district and any political subdivision, authority, public corporation, body politic, or instrumentality of the state of Texas, any office, department, commission, board, or other agency that is part of any branch of State government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities that has taken the actions required by Section 2256.016 of the Act and that has executed either the Trust Agreement or a counterpart of the Trust Agreement or a participation certificate.

Texas CLASS is for Local Governments

Take Your First Step Towards Investing Public Funds

Learn more about investing public funds on behalf of your community. We encourage you to check out our Investment Calculator and see how much your investments could have earned if you had already started your investment journey. Let us help you determine the right investment option for your local government!

Investment Calculator

 

Texas CLASS is not a bank. An investment in Texas CLASS is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although Texas CLASS seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Please review the Texas CLASS Information Statement before investing. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. For risks associated with investing in a prime-style or government-style local government investment pool, please click here. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.