Safety in a Rising Rate Environment

Texas CLASS Think Safety

As summer heats up, we are pleased to be in the midst of the first rising rate environment in the last decade. We have seen three 25 basis point increases in the Fed funds target rate within the past seven months which has led to a meaningful increase for the Texas CLASS rates. While increasing rates are always welcome, we want to remind our Texas CLASS Participants that the safety of Participants’ funds is always our
primary objective.

How does Texas CLASS focus on safety?

Texas CLASS has an all-encompassing view on safety. This means that we want your funds to be safe, your information to be secure, and all transactions to be safeguarded. Below are some highlights regarding the safety features of Texas CLASS:

Experience: The portfolio management team responsible for the day-today management of Texas CLASS has successfully managed local government investment pools for more than 25 years through multiple interest rate cycles and economic environments.

This team is guided by a proven credit research process approved by both the Texas CLASS Board of Trustees and Advisory Board that features strategic investments based on the time and research devoted to each investment decision. Investments are made via an approved list compiled by our portfolio management professionals who have a wealth of knowledge about the public funds sector, with over 75 combined years of experience.

Rating: Texas CLASS is rated ‘AAAm’ by S&P Global Ratings, the highest money market rating available. According to S&P*, the world’s leading provider of credit ratings, a ‘AAAm’ rating indicates an “extremely strong capacity to meet financial commitments” and is a direct reflection of the outstanding credit quality of the Texas CLASS portfolio holdings.

State Statutes: Texas CLASS investments are only made in accordance with the Public Funds Investment Act of Texas (PFIA). Under the PFIA established guidelines, Texas CLASS seeks out investments that optimize the opportunity to maximize safety and minimize risk while providing acompetitive return.

Additional Oversight: Texas CLASS is governed by a Board of Trustees and an Advisory Board comprised of local government leaders and finance officials who closely monitor the activities of the program. The individuals on these boards represent the varying units of local government within the state of Texas. This serves as an added level of oversight for investment decisions made on behalf of Texas CLASS and the safety of Participants’ funds.

Board of Trustees
Mr. Steve Williams, Chairman
Asst. City Administrator/CFO
City of Conroe
Ms. Amy Perez
Investment Manager
Harris County
Ms. Cindy Brown
Denton County
Mr. Roger Roecker
City Manager
City of Friendswood
Mr. Mike Hagar
School Business Administrator
Alamo Heights ISD
Ms. Monika Arris
Director of Budget & Finance
Collin County

Advisory Board
Mr. Mark Burton
Managing Partner
Municipal Accounts & Consulting, L.P.
Mr. Arthur Martin
Chief Financial Officer
Crane ISD
Mr. Rodney Rhoades
Qualified Non-Participant

MYACCESS: Texas CLASS is committed to ensuring a secure online transaction experience through MYACCESS. We have implemented and maintain strong security measures for MYACCESS because we understand the risks associated with retrieving public financial information online. MYACCESS features include multifactor authentication, masked account numbers, and “The Safe Zone” (data secured in a stored environment monitored by a live person who identifies any unauthorized access attempts).

As rates continue to rise, so does the continued need for safety and security within the management of public funds. Texas CLASS is committed to taking every precaution to best ensure the safekeeping of Participants’ public funds. If you have any questions regarding Texas CLASS safety or the current rising rate environment, please feel free to contact our Texas CLASS investment professionals via

*Source: S&P Global Ratings

A ‘AAAm’ rating by S&P Global Ratings is obtained after S&P evaluates a number of factors, including credit quality, market price exposure, and management. Ratings are subject to change and do not remove credit risk.
All comments and discussions presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.