Investments

The Trust Company invests, manages, and oversees over $45 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 12 separate endowment funds with assets totaling over $3 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.

Endowments

The Trust Company manages thirteen 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 thirteen endowments are:

  • Tobacco Settlement Permanent Trust Account
  • Permanent Fund for Health and Tobacco Education and Enforcement
  • Permanent Fund for Emergency Medical Services and Trauma Care
  • Permanent Fund for Children and Public Health
  • Permanent Fund for Rural Health Facility Capital Improvement
  • Permanent Hospital Fund for Capital Improvements and the Texas Center for Infectious Disease
  • Permanent Fund for Higher Education Nursing, Allied Health, and Other Health-Related Programs
  • Permanent Fund for Minority Health Research and Education
  • Permanent Endowment Fund for the Rural Communities Health Care Investment Program
  • National Research University Fund (f/k/a Higher Education Fund)
  • Texas Preservation Trust Fund
  • Permanent Fund Supporting Military & Veterans Exemptions
  • Office of Consumer Credit Commissioner

Read more detail about the endowments. (In pdf format, get reader here.)

TexPool / TexPool Prime

TexPool 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 Pool

The investment objectives of the Treasury Pool are as follows:

  • Preservation of capital and protection of principal
  • Maintenance of sufficient liquidity to meet the state’s operating needs
  • Maximization of return

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:

  • U.S. Treasury securities
  • Debt instruments of Government Sponsored Entities (including mortgage-backed securities)
  • Repurchase transactions
  • High quality corporate debt
  • Asset-backed securities

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 & Custody

The 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.