Kroll Bond Rating Agency Assigns AAAkf Fund Rating to TexasTERM Local Government Investment Pool TexasTERM Portfolio

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned a AAAkf Fund Rating to the TexasTERM Local Government Investment Pool TexasTERM Term Portfolio. The AAAkf rating reflects the TexasTERM Portfolio’s Primary Quantitative Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix, which is based on the credit quality of the underlying instruments that comprise the portfolio. Additionally, the fund rating is influenced by the results of the qualitative assessment of the investment advisor, PFM Asset Management LLC (PFMAM). The qualitative shadow rating (QSR) for the fund was found to be strong.

The TexasTERM Local Government Investment Pool (“TexasTERM” or “the Pool”) was created in 2000 as a governmental agency and as a public funds investment pool under Texas government Code. The Pool was created by and for Texas local governments to provide investment programs tailored to their needs. Pool documents permit and provide for the creation of specialized asset portfolios within the TexasTERM structure. This allows TexasTERM to offer portfolios designed to meet specific investment objectives and needs of those participating. Currently, TexasTERM offers two investment options: TexasDAILY, a money market portfolio with daily liquidity; and the TexasTERM Portfolio, a fixed-rate, fixed-term portfolio, which can have multiple series with staggered maturity dates.

The TexasTERM Portfolio is a fixed-rate, fixed-term investment with an investment strategy designed to match the cash flow requirements of investors with the cash flows from the portfolio. The TexasTERM Portfolio investment objective is to provide an investment subject to preset redemptions occurring from 60 days to one year that will produce the highest earnings consistent with maintaining principal at maturity and meeting the redemption schedule. The TexasTERM Portfolio seeks to return principal on the planned maturity date. There may be a penalty for early withdrawal and the NAV may fluctuate prior to maturity.

To meet the investment objective, PFMAM must abide by certain investment restrictions. The portfolios only purchase U.S. dollar denominated instruments, and the investment advisor will invest in a security only if they are satisfied that credit risk of that instrument is appropriate. Permitted investments include, but are not limited to, U.S. Government debt, repurchase agreements, commercial paper, and bank obligations.

PFMAM is the investment advisor and a member of the PFM Group. The Harrisburg, PA-based manager has been providing investment advice and portfolio management services to a broad group of government and not-for-profit organizations, corporations, pension funds and other institutions since 1980. As of year-end 2016, PFMAM reported total assets under management and advisement of $112.3 billion, with discretionary assets under management representing $70.9 billion of that total.

The ratings are based on KBRA’s Global Investment Funds Rating Methodology published on August 10, 2016.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Barry Weiss, CFA, 646-731-2475
Director
bweiss@kbra.com
or
Joe Scott, 646-731-2438
Managing Director
jscott@kbra.com

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Barry Weiss, CFA, 646-731-2475
Director
bweiss@kbra.com
or
Joe Scott, 646-731-2438
Managing Director
jscott@kbra.com