Investments
The Trust Company invests, manages, and oversees over $70 billion in assets. Investments include cash-equivalent funds such as the Texas Treasury Pool and separately managed portfolios for various Texas state agency clients. It oversees the state's two largest Local Government Investment Pools: TexPool and TexPool Prime. It manages 11 separate endowment funds with assets totaling over $4 billion. Endowment portfolios are invested across a broad spectrum of asset classes, ranging from traditional fixed-income and long-only equity investments to hedge funds, private equity and real estate.
EndowmentsThe Trust Company manages eleven endowment funds. The funds are invested in a diversified manner designed to preserve the purchasing power of the funds' assets and provide a stable and growing distribution to beneficiaries. The distributed funds are used by governmental entities to provide funding for health care, health education, higher education, and historic preservation. All funds are invested in accordance with the prudent person or investor standard. The eleven endowments are:
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TexPool / TexPool PrimeTexPool and TexPool Prime are local government investment pools created on behalf of Texas entities whose investment objectives are preservation and safety of principal, liquidity and yield consistent with the Public Funds Investment Act. TexPool and TexPool Prime currently provide investment services to over 2,000 local jurisdictions throughout this State. TexPool Website (link opens new window): www.texpool.com |
Treasury PoolThe investment objectives of the Treasury Pool are as follows:
Interest rate risk is managed by maintaining a weighted-average maturity of no more than two years. The pool invests in a diversified pool of high credit quality, liquid assets primarily consisting of:
In addition, approximately 3% of the assets are invested in fully collateralized deposits in Texas based banks. Related Link: BidTX. BidTX is an innovative and efficient way to invest in State of Texas time deposits. The program is designed to provide approved state depositories the opportunity to interactively compete for State of Texas investment dollars monthly in six-month maturities or semi-annually in one-year maturities. |
Trusts & CustodyThe Trust Company separately manages assets for various state agencies including the Water Development Board, Texas Housing Authority, Lottery Commission and the cigarette stamp tax escrow account. These funds are managed to ensure safety of principal and to maintain sufficient liquidity to meet the agency's operating needs. |