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Annual ReportDecember 31, 2015

TexasTERM Local Government Investment Pool221 West 6th Street, Suite 1900

Austin, Texas 78701

table of contents1 ABOUT TEXASTERM

3 MESSAGE FROM THE INVESTMENT ADVISER

5 REPORT OF INDEPENDENT AUDITORS

7 SCHEDULES OF INVESTMENTS

20 STATEMENTS OF ASSETS AND LIABILITIES

20 STATEMENTS OF OPERATIONS

21 STATEMENTS OF CHANGES IN NET ASSETS

22 FINANCIAL HIGHLIGHTS

24 NOTES TO FINANCIAL STATEMENTS

For further information on TexasTERM, call 1-866-TEX-TERM or visit www.texasterm.net

This information is for institutional investor use only, not for furtherdistribution to retail investors, and does not represent an offer to sell or asolicitation of an offer to buy or sell any fund or other security. Investorsshould consider the Pool’s investment objectives, risks, charges andexpenses before investing. This and other information about the Pool isavailable in the Pool’s Information Statement, which should be readcarefully before investing. A copy of the Pool’s Information Statementmay be obtained by calling 1-866-839-8376 or is available on the Pool’swebsite at www.texasterm.net. While TexasDAILY seeks to maintain astable net asset value of $1.00 per share and TexasTERM seeks toachieve a net asset value of $1.00 per share at its stated maturity, it ispossible to lose money investing in the Pool. An investment in the Pool isnot insured or guaranteed by the Federal Deposit Insurance Corporationor any other government agency. Shares of the Pool are distributed byPFM Fund Distributors, Inc., member Financial Industry RegulatoryAuthority (FINRA) (www.finra.org) and Securities Investor ProtectionCorporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is awholly owned subsidiary of PFM Asset Management LLC.

TEXASTERM Annual Report | December 31, 2015 1

ABOUT TEXASTERM (UNAUDITED)

The TexasTERM Local Government Investment Pool (the “Pool”) portfolios seek to

provide safety, flexibility and competitive yields. As a Participant, you may use the

portfolio(s) that best suit your deposit and investment needs.

Limited to Permitted InvestmentsThe primary goal of the Pool is the safety and security of the local government funds

entrusted to it. TexasTERM portfolio and TexasDAILY portfolio are rated AAAf and

AAAm, respectively, by Standard & Poor’s(1) (“S&P”) and are overseen by the

TexasTERM Advisory Board. The Pool is designed to comply with all of the Texas

statutes, including the Public Funds Investment Act and other regulations for the

allowable investment of public funds. Additionally, all securities must further meet the

Pool’s own high standards of investment.

The Pool’s portfolios may contain a combination of:

• Obligations of the U.S. Government or its Agencies or Instrumentalities

• Repurchase Agreements with Primary Dealers

• Certificates of Deposit (CDs) that are FDIC-insured(2) and fully collateralized

according to law

• Money Market Mutual Funds rated AAA or equivalent

FlexibilityThe TexasTERM Local Government Investment Pool offers two (2) distinct investment

portfolios. Working together, these portfolios allow you the flexibility to safely

maximize yield and liquidity. The TexasTERM portfolio allows participants to obtain a

fixed-rate quote in advance. You choose the maturity date that best suits your needs.

TexasTERM is available for investments from 60 days to 1 year, with a minimum

investment of $100,000. You choose the settlement and maturity dates to satisfy your

investment needs. The TexasDAILY portfolio provides a variable rate with availability of

funds on a daily basis.

(1) Standard & Poor’s fund ratings are based on analysis of credit quality, market price exposure and management.According to Standard & Poor’s rating criteria, the AAAm rating signifies excellent safety of invested principal and asuperior capacity to maintain a $1.00 per share net asset value and the AAAf rating signifies that a portfolio’s holdingsprovide extremely strong protection against losses from credit defaults. However, it should be understood that these ratingsare not a “market” rating or a recommendation to buy, hold or sell the securities. For a full description on ratingmethodology, visit Standard & Poor’s website (http://www.standardpoors.com/ratings/fund-main/en/us).

(2) FDIC insurance coverage up to $250,000

TEXASTERM Annual Report | December 31, 20152

Portfolios at a Glance

Investment Period One Day Minimum • Minimum 60 Days

• Maximum 1 Year

Balance Requirements No Minimum Balance $100,000 Minimum

Additional Deposits • No Minimum

• Unlimited Number $100,000 Minimum

• Direct Deposit Available

Withdrawals • No Minimum

• Unlimited At Maturity

Checkwriting • Unlimited, for bond

proceeds N/A

• No Charge

Transactional Charges/Fees None None

Accounts Unlimited Unlimited

Interest Earnings • Calculated Daily • Fixed Rate of Interest

• Paid Monthly • Paid At Redemption

• Via Internet • Via Internet

• Each Transaction • Each Purchase

Statements • Monthly Transaction

• Cumulative Fiscal • Monthly

Year-End (Upon Request)

We Value Your ParticipationThe Advisory Board is committed to managing the Pool in a manner that meets the

investment and associated record-keeping and cash management needs of local

governments. We are interested in your feedback. For additional information, please call

us at (866) TEX-TERM or visit us online at www.texasterm.net.


MESSAGE FROM THE INVESTMENT ADVISER (UNAUDITED)

We are pleased to present the Annual Report for the TexasTERM Local Government

Investment Pool (the “Pool” or the “Program”) for the period ended December 31, 2015.

Safety of principal and liquidity remain our top priorities when managing the Pool.

Despite a continued low interest-rate environment, the Pool continues to generate

relatively competitive yields.

Economic UpdateOver the past year, the U.S. economy continued on the path of modest growth. The

progress has been uneven, but overall the rate of expansion was faster than that in other

advanced economies. The U.S. labor market continued to improve, with the pace of new

job creation averaging more than 200,000 jobs per month over the past year and the

unemployment rate dipping to 5.0% — its lowest rate in eight years. Economic

expansion was driven by growth in consumption, and was focused on the services sector,

while manufacturing and energy showed weakness.

The sharp decline in oil and commodity prices has been a significant force in the global

economy — strengthening the U.S. dollar, dampening inflation in the U.S., and boosting

inflation in emerging markets. Some have attributed this to slowing of the Chinese

economy; however, the reality is that over-supply and not slowing demand were the

major factors as the Organization of Petroleum Exporting Countries (“OPEC”)

maintained its production ceiling in the face of expanding production from other

countries, including the United States.

Interest RatesThe Federal Open Market Committee (“FOMC”) raised the target federal funds rate by

25 basis points at its December 2015 meeting. The new target range is 0.25% to 0.50%

percent, up from zero to 0.25%, where it had been for seven years. Federal Reserve

(“Fed”) governors urged investors not to look to history for guidance on the pace of

tightening or the final resting point for overnight rates, stressing that rates will be raised

at a gradual pace.

Program Strategy Pool yields rose modestly in the second half of 2015 as we took advantage of increases

in money market rates in anticipation of tightening by the FOMC. We also shortened

weighted average maturity (“WAM”) of the liquid pool in an attempt to better protect the

net asset value (“NAV”) against declines in a rising interest rate environment. With the

first tightening in December 2015, markets adjusted further and we sought to incorporate

higher-yielding investments in the portfolio while maintaining a defensive WAM. We

also were active in seeking investments with maturities of six to 12 months for the

TERM portfolio because we perceive that these maturities offer value for investors who

do not need daily liquidity.

The FOMC’s current guidance that the pace of tightening will be gradual affords us

comfort in maintaining the WAM of the Pool’s TexasDAILY portfolio in the range of 35

to 45 days. This should enable us to continue to provide investors in these portfolios

with competitive yields while focusing on protecting the NAV.


We’re pleased to assist investors in benefitting from the first rise in short-term rates in

more than seven years, and we are cautiously optimistic that continued recovery from

the Great Recession will support the gradual return of interest rates to normal levels.

The Program continued to experience significant growth during 2015, reaching an all-

time high of $3.6 billion in assets on June 3, 2015 and finishing the year with a record

169 active investors. We are proud to serve the Program investors and appreciate their

continued confidence in PFMAM. We look forward to continuing our work as the

Program’s Investment Advisor and implementing effective investment strategies to

address your financial objectives.

Respectfully,

PFM Asset Management LLC

December 31, 2015


REPORT OF INDEPENDENT AUDITORS

To the Advisory Board of the

TexasTERM Local Government Investment Pool

We have audited the accompanying financial statements of the TexasDAILY portfolio

and TexasTERM Series DD, which comprise the statements of assets and liabilities,

including the schedules of investments, and the statement of assets and liabilities of

TexasTERM Series CC (collectively, the “Portfolios”) as of December 31, 2015, and

TexasDAILY portfolio’s related statement of operations for the year then ended,

statements of changes in net assets for each of the two years in the period then ended

and financial highlights for each of the five years in the period then ended, TexasTERM

Series DD’s statements of operations, changes in net assets and financial highlights for

the period July 7, 2015 (commencement of operations) through December 31, 2015, and

TexasTERM Series CC’s statements of operations, changes in net assets and financial

highlights for the periods September 15, 2014 (commencement of operations) through

June 30, 2015 and July 1, 2015 through December 31, 2015, and the related notes to the

financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial

statements in conformity with U.S. generally accepted accounting principles; this

includes the design, implementation, and maintenance of internal control relevant to the

preparation and fair presentation of financial statements that are free of material

misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our

audits. We conducted our audits in accordance with auditing standards generally

accepted in the United States. Those standards require that we plan and perform the

audits to obtain reasonable assurance about whether the financial statements and

financial highlights are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the Portfolios’ preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of

the Portfolios’ internal control. Accordingly, we express no such opinion. An audit also

includes evaluating the appropriateness of accounting policies used and the

reasonableness of significant accounting estimates made by management, as well as

evaluating the overall presentation of the financial statements.


We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements and financial highlights referred to above present

fairly, in all material respects, the financial position of TexasDAILY portfolio at

December 31, 2015, and the results of its operations for the year then ended, changes in

its net assets for each of the two years in the period then ended, and its financial

highlights for each of the five years in the period then ended, the financial position of

TexasTERM Series DD at December 31, 2015, and the results of its operations, changes

in its net assets and its financial highlights for the period July 7, 2015 (commencement

of operations) through December 31, 2015, and the financial position of TexasTERM

Series CC at December 31, 2015, and the results of its operations, changes in its net

assets and its financial highlights for the periods September 15, 2014 (commencement of

operations) through June 30, 2015 and July 1, 2015 through December 31, 2015, in

conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

April 28, 2016


TEXASDAILY

Schedule of InvestmentsDecember 31, 2015

FaceAmount Value(1)

CERTIFICATES OF DEPOSIT(3) (26.63%)Albina Community Bank (OR)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 243,500 $ 243,500 Allegiance Bank Texas (TX)

0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,578 223,578 Alliant Bank (MO)

0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000 16,000 American Community Bank (IL)

0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,821 38,821 American Midwest Bank (IL)

0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500 American National Bank & Trust Co. (VA)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500 Anchor Commercial Bank (FL)

0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000 Anchor D Bank (OK)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500 Androscoggin Savings Bank (ME)

0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000 Ann Arbor State Bank (MI)

0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500 Apollo Trust Co. (PA)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500 Arvest Bank (AR)

0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000 Atlantic Capital Bank (TN)

0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500AVB Bank (OK)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,168 143,168 Avenue Bank (TN)

0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000 Bank Midwest (IA)

0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 200 Bank of America (NC)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500 Bank of Belleville (IL)

0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500 Bank of Blue Valley (KS)

0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,514 56,514 Bank of China (NY)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500 Bank of Eastern Oregon (OR)

0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,219 2,219 Bank of England (AR)

0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,318 11,318 Bank of Georgetown (DC)

0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,398 12,398 Bank of Marin (CA)

0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000 Bank of Oak Ridge (NC)

0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,617 206,617

The accompanying notes are an integral part of these financial statements.


TEXASDAILY


FaceAmount Value(1)

Bank of Santa Clarita (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 246,000 $ 246,000

Bank of the Sierra (CA)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,124 207,124

Bankfirst Financial Services (MS)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,249 54,249

Bankunited Miami Lakes (FL)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,876 100,876 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,124 140,124

Belmont Bank & Trust Company (IL)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

BNC National Bank (AZ)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 150,000 0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 30,000

BOKF (OK)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242,000 242,000

Border State Bank of Greenbush (MN)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Burke & Herbert Bank & Trust Co. (VA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,537 112,537 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,288 31,288

Business First Bank (LA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

C US Bank (IA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Cadence Bank (AL)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,375 40,375 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,289 124,289

Capital Bank (MD)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,616 162,616

Capitol Bank (WI)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,369 77,369

Cass Commercial Bank of Bridgeton (MO)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,982 227,982

Centennial Bank (CO)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Central Bank of Lake of the Ozarks (MO)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Central National Bank & Trust of Enid (OK)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,748 30,748

Centric Bank (PA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,187 93,187

Citizens Bank (PA)0.35%(4) 1/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000,000 37,000,000 0.40%(4) 1/19/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000,000 110,000,000 0.40%(4) 2/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 0.55%(4) 3/22/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000

Citizens Bank of Oklahoma (OK)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 195

Citizens Business Bank (CA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500



TEXASDAILY


FaceAmount Value(1)

Citizens National Bank of Bluffton (OH)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 238,500 $ 238,500

Citizens Security Bank & Trust Co. (OK)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

CNB (MD)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Cobiz Bank (Co)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,150 100,150

Commonwealth Bank & Trust Co. (KY)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Community Bank (CA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Community Bank of the Chesapeake (MD)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,369 66,369

Community Bank, Coast (MS)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,902 162,902

Community Business Bank (CA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Community Development Bank (MN)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Community National Bank (MO)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,058 149,058

County First Bank (MD)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Covenant Bank of Clarksdale (MS)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Crossroads Bank (IN)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Eaton Federal Savings Bank (MI)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Executive National Bank (FL)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204,000 204,000

Farm Bureau Bank FSB (NV)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Farmers & Merchants Bank (VA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Farmers and Merchants Union Bank (WI)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000

Farmers Bank & Trust (KS)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

First A National Banking (MS)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

First Bank of Charleston (WV)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,798 135,798

First Bankers Trust Co. (IL)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

First Choice Bank (NJ)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,777 171,777

First Commercial Bank (MS)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,040 101,040

First Fidelity Bank (OK)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,442 36,442



TEXASDAILY


FaceAmount Value(1)

First Interstate Bank (MT)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 119,917 $ 119,917

First National Bank (LA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,000 146,000 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000

First National Bank in Green Forest (AR)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

First National Community Bank (PA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

First Security Bank (IL)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,399 100,399

First Western Bank (AR)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Freehold Savings Bank (NJ)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Fremont Bank (CA)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000 0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,737 32,737

Fresno First Bank (CA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Georgia Banking Company (GA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Glacier Bank (MT)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,541 143,541

Grandpoint Bank (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Grandsouth Bank (SC)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Great Southern Bank (MO)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Green Bank0.59%(4) 2/26/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 7,500,000 0.65%(4) 10/18/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 7,500,000

Happy State Bank (TX)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Hawthorn Bank (MO)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,032 171,032

Heartland State Bank (ND)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Heritage Bank (NE)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Heritage Bank (MN)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Heritage Bank of Nevada (NV)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Heritage Oaks Bank (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219,341 219,341

Home Federal Bank (SD)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,415 52,415

Illinois National Bank (IL)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000



TEXASDAILY


FaceAmount Value(1)

Independence Bank (MT)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 246,000 $ 246,000

Independent Bank (MI)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Independent Bank (TN)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Inland Bank & Trust (IL)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Insbank (TN)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000 54,000 0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,851 83,851

Interbank (OK)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000 33,000 0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,000 208,000

Kirkpatrick Bank (OK)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Lakeside Bank (IL)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Landmark Bank (MO)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Lincoln Savings Bank (IA)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Lone Star State Bank of West Texas (TX)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Machias Savings Bank (ME)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,098 19,098

Malvern Trust & Savings Bank (IA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

MB Financial Bank (IL)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,469 100,469

Merrick Bank (UT)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Milford National Bank & Trust Co. (MA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Missouri Bank & Trust of Kansas City (MO)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Monument Bank (MD)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000 0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,500 88,500

Morris Bank (GA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Mutual of Omaha Bank (NE)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

National Bank of St. Anne (IL)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 65,000

National Penn Bank (PA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

New Resource Bank (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Newbridge Bank (NC)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500



TEXASDAILY


FaceAmount Value(1)

North State Bank (NC)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,737 $ 200,737

Northern California National Bank (CA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,145 171,145

Nuvo Bank & Trust Company (MA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Old Line Bank (MD)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

One Pacificcoast Bank (CA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Pacific Western Bank (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Passumpsic Savings Bank (VT)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,214 114,214

Pentagon Federal Credit Union (VA)0.65%(4) 4/25/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000 0.85%(4) 10/25/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 0.99%(4) 12/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000

Phenix-Girard Bank (AL)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Pinnacle Bank (NE)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,136 163,136

Pinnacle Bank (TN)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Post Oak Bank (TX)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,135 150,135

Premier Valley Bank (CA)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Progressive Savings Bank (TN)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817 817

Range Bank (MI)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,452 215,452

Regent Bank (OK)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,677 75,677

Republic Bank & Trust Company (KY)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,203 75,203

River City Bank (CA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,624 8,624

Rockford Bank & Trust Company (IL)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,911 240,911

Rockland Trust Company (MA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Sabine State Bank And Trust Company (LA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Saco & Biddeford Saving Institution (ME)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,000 158,000

Santander Bank (DE)0.30%(4) 1/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,000,000 98,000,000 0.48%(4) 2/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,000,000 79,000,000 0.48%(4) 2/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500



TEXASDAILY


FaceAmount Value(1)

Select Bank & Trust Co. (NC)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 246,000 $ 246,000

Severn Savings Bank (MD)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

Sound Banking Co. (NC)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 20,000

Southern Bancorp Bank (AR)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Southern Missouri Bank Marshfield (MO)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,000 59,000

St. Louis Bank (MO)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,449 200,449

State Bank Financial (WI)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,114 193,11

State Bank of Southern Utah (UT)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,929 22,929

Stonegate Bank (FL)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,005 24,005 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,743 32,743 0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,102 41,102

Sunwest Bank (CA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,006 34,006 0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,250 100,250

Susquehanna Bank (PA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,000 126,000

Synergy Bank (LA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Texas Champion Bank (TX)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Texas Community Bank (TX)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Texstar National Bank (TX)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,000 123,000

The Bank of Tioga (ND)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

The Cape Cod Five Cents Saving Bank (MA)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,677 97,677

The Citizens Bank of Clovis (NM)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,943 58,943

The Citizens Banking Company (OH)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

The Cortland Savings & Banking Co. (OH)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

The Delaware County Bank & Trust Co. (OH)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,500 238,500

The First National Bank & Trust Co. (OK)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,810 32,810

The Freedom Bank of Virginia (VA)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

The Paducah Bank & Trust Company (KY)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,985 162,985



TEXASDAILY


FaceAmount Value(1)

The Peoples Bank (SC)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,906 $ 1,906 0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,094 239,094

The Provident Bank (NJ)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Transportation Alliance Bank, Inc. (UT)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Treynor State Bank (IA)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Union Bank & Trust Company (NE)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

United Bank (WV)0.40% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,509 7,509 0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,075 25,075

United Community Bank (MN)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,500 194,500

United State Bank (MO)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,500 61,500

Valley National Bank (NJ)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Viewpoint Bank (TX)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Vision Bank (OK)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000

Washington Federal (WA)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,000 246,000

Washington First Bank (VA)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Waumandee State Bank (WI)0.40% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 200,000

Welch State Bank of Welch (OK)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,000 241,000

Wesbanco Bank, Inc. (WV)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Western Alliance Bank (AZ)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Western Bank (MN)0.50% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,254 118,254

Western National Bank (MN)0.45% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,500 243,500

Wilmington Savings Fund Society, FSB (DE)0.50% 1/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,470 43,470

Total Certificates of Deposit (Amortized Cost $539,000,000). . . . . . . . . . . . . . . . . . . . . . . . 539,000,000

U.S. GOVERNMENT & AGENCY OBLIGATIONS (40.51%)Fannie Mae Mortgage-Backed Security Discount Notes

0.19% 2/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,250,000 29,245,3400.59% 4/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,971,400

Federal Farm Credit Bank Notes0.37%(2) 2/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,999,8240.44%(2) 2/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,001,8900.37%(2) 3/24/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,999,5680.45%(2) 4/22/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,002,3250.39%(2) 5/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,995,8580.40%(2) 2/1/17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000,000 64,964,3270.44%(2) 3/29/17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000,000 33,008,3480.42%(2) 4/20/17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,984,190



TEXASDAILY


FaceAmount Value(1)

Federal Home Loan Bank Discount Notes0.41% 2/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000 $ 24,990,604 0.32% 3/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,973,3130.33% 3/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000,000 11,992,6330.48% 3/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,986,0000.47% 3/16/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,980,625

Federal Home Loan Bank Notes0.20%(2) 6/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000,000 74,998,4190.45% 8/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,993,632

Freddie Mac Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.31%(2) 6/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,998,6450.40%(2) 7/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,997,1860.41%(2) 4/20/17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,995,024

U.S. Treasury Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.31% 1/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,154,510 176,095,0670.59% 8/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,500,000 34,594,076

Total U.S. Government & Agency Obligations (Amortized Cost $819,768,294). . . . . . . . . . 819,768,294

REPURCHASE AGREEMENTS (33.73%)BNP Paribas Securities Corp.

0.31% 1/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,700,000 211,700,000 (Dated 12/31/15, repurchase price $211,707,292, collateralized by: U.S. Treasury certificates, 0.00%-2.00%, maturing 2/15/22-2/15/31, fair value $134,743,769; Freddie Mac securities, 2.94%, maturing 12/1/41, fair value $13,414,676; Federal Farm Credit Banks, 0.00%, maturing 12/6/16, fair value $104,046; Fannie Mae securities, 2.78%, maturing 10/1/44, fair value $23,208,793; and Ginnie Mae securities, 1.625%-3.50%, maturing 1/20/22-2/20/45, fair value $44,470,154)

Goldman Sachs & Co.0.32% 1/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,900,000 320,900,000 (Dated 12/31/15, repurchase price $320,911,410, collateralized by: Fannie Mae securities, 2.35%-2.95%, maturing 3/1/23-5/1/25, fair value $11,057,338; Freddie Mac securities, 3.50%-4.00%, maturing 5/1/42-2/1/45, fair value $120,591,766; and Ginnie Mae securities, 3.00%-5.60%, maturing 4/15/37-4/15/53, fair value $195,680,535)0.18% 1/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000,000 150,000,000 (Dated 11/24/15, repurchase price $150,031,500, collateralized by: Ginnie Mae securities, 3.50%, maturing 11/20/45-12/20/45, fair value $152,679,624; and Fannie Mae securities, 5.50%, maturing 10/1/38, fair value $351,741)

Total Repurchase Agreements (Amortized Cost $682,600,000). . . . . . . . . . . . . . . . . . . . . . 682,600,000TOTAL INVESTMENTS (100.87%) (Amortized Cost $2,041,368,294) . . . . . . . . . . . . . . . 2,041,368,294OTHER LIABILITIES IN EXCESS OF OTHER ASSETS (-0.87%) . . . . . . . . . . . . . . . . . . (17,669,442)NET ASSETS (100.00%)

Applicable to 2,023,698,852 outstanding shares of beneficial interest (unlimited authorization – no par value). Equivalent to $1.00 per share.) $ 2,023,698,852

(1) See Note B to the financial statements.(2) Adjustable rate security. Rate shown is that which was in effect at December 31, 2015.(3) FDIC insurance coverage up to $250,000 of principal and accrued interest per issuing bank, except thosenoted in note (4) below.(4) Guaranteed by Federal Home Loan Bank Letter of Credit and subject to put with 1 day notice. The accompanying notes are an integral part of these financial statements.


TEXASTERM SERIES DD


FaceAmount Value(1)

CERTIFICATES OF DEPOSIT(2) (20.07%)Citizens Bank (PA)

0.25%(3) 1/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,000,000 0.55%(3) 2/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 11,000,000 0.55%(3) 2/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000 0.55%(3) 2/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,800,000 25,800,000

Green Bank0.64% 8/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,300,000 5,300,000 0.62% 9/27/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000

Santander Bank (DE)0.29% 1/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200,000 7,200,000 0.29% 1/19/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 0.35% 2/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000 0.35% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,500,000 0.35% 4/20/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 0.47% 5/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,600,000 31,600,000 0.47% 5/13/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 0.47% 6/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000,000 19,000,000 0.50% 9/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,500,000 42,500,000

Total Certificates of Deposit (Amortized Cost $205,900,000). . . . . . . . . . . . . . . . . . . . . . . . 205,900,000

COMMERCIAL PAPER (70.37%)Bank of Tokyo Mitsubishi UFJ LTD

0.44% 2/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 3,997,116 0.51% 3/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,065 0.51% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,983,864 0.52% 3/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,994,728 0.46% 3/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,996,933 0.51% 3/22/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,150,000 4,145,238 0.52% 4/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,997,285 0.52% 4/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,100,000 6,091,541 0.49% 4/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,496,563 0.51% 4/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,700,000 4,693,009 0.63% 4/20/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,990,375 0.56% 5/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,705,000 12,680,982 0.54% 5/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500,000 12,476,938 0.82% 6/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,200,000 22,109,814

BNP Paribas (NY) 0.33% 1/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,945 0.45% 2/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,975,000 4,972,9480.40% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,498,1390.50% 4/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,800,000 8,788,2670.59% 4/7/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,005,000 4,997,0430.59% 4/18/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,025,000 5,016,1050.54% 5/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,250,000 9,232,9850.67% 5/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,005,000 4,992,9840.64% 6/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000,000 11,967,1460.74% 6/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 5,980,1430.57% 6/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,700,000 9,674,6590.57% 6/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100,000 4,088,8350.54% 6/30/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,495,9280.61% 7/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,020,000 5,004,179



TEXASTERM SERIES DD


FaceAmount Value(1)

Canadian Imperial Holding0.50% 3/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,040,000 $ 1,038,8440.52% 4/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 998,5410.43% 4/13/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,993,849 0.55% 4/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,996,8210.54% 5/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,020,000 5,008,6300.57% 6/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 3,990,2040.57% 6/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,100,000 5,087,0800.57% 6/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 7,979,6070.50% 6/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200,000 4,190,3750.52% 6/20/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,493,8250.67% 8/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,540,000 7,508,5670.71% 8/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,110,000 20,019,9560.90% 9/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,975,000 19,854,013

Credit Agricole Corporate and Investment Bank (NY)0.39% 2/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,050,000 58,030,5050.35% 2/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 7,997,5110.42% 3/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,498,2330.54% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,996,9850.52% 3/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,0180.56% 3/14/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 998,864

HSBC USA Inc.0.50% 3/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,989,000

JP Morgan Securities LLC0.60% 4/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,010,000 3,005,4350.60% 4/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,795,000 3,788,9910.60% 4/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,000 1,003,3590.60% 4/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,196,2970.57% 4/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,495,9620.65% 5/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,715,000 1,711,1920.67% 5/27/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,015,000 2,009,4870.67% 5/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,310,000 1,306,3180.67% 6/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,620,000 11,586,6960.62% 7/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,060,000 10,028,4680.62% 7/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,035,000 7,012,4650.62% 7/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,535,000 7,509,9550.62% 7/19/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,020,000 4,006,1530.62% 7/22/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,205,000 1,200,7870.67% 7/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,760,000 1,753,1210.67% 8/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,010,000 1,005,9960.78% 8/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 6,966,3300.86% 8/19/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,030,000 4,008,0200.90% 8/26/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,910,000 9,851,7000.96% 9/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,800,000 6,756,0361.01% 9/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,000 997,8811.01% 9/13/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600,000 4,567,289

Prudential Funding LLC0.32% 2/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,015,000 1,014,468



TEXASTERM SERIES DD


FaceAmount Value(1)

Rabobank Nederland NV (NY)0.40% 1/19/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,030,000 $ 4,029,1940.34% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,4140.34% 3/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,997,0250.44% 3/22/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,900,000 20,879,3090.42% 4/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,994,5170.42% 4/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,198,6700.41% 4/11/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,510,000 7,501,361 0.46% 4/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,075,000 5,067,2830.57% 6/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100,000 7,081,9500.75% 7/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,988,3120.81% 7/25/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,080,000 19,986,929

Swedbank0.56% 5/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,025,000 10,005,9750.52% 7/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,110,000 27,027,766

Toyota Motor Credit Corp.0.33% 1/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,999,6980.40% 3/3/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 3,997,2440.40% 3/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,498,2500.39% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,498,9110.43% 3/24/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,497,5210.37% 3/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400,000 4,396,0660.43% 3/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,497,3120.41% 4/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,540,000 28,509,8270.47% 4/12/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,520,000 7,509,9860.47% 4/26/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 998,4860.48% 4/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,500,000 6,489,7690.53% 6/28/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,013,000 3,005,0600.63% 7/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 996,3250.89% 8/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,035,000 6,001,5110.81% 8/26/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 965,000 959,8320.94% 9/13/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,375,000 2,359,293

UBS Finance Delaware LLC0.54% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,982,9150.53% 3/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,150,000 20,123,3190.49% 4/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,050,000 2,047,4040.47% 4/5/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800,000 3,795,2870.47% 4/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300,000 6,292,1040.55% 5/2/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,700,000 8,683,8520.52% 5/26/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,989,4550.59% 5/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,992,618

US Bank0.25% 3/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,498,9060.26% 4/4/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,498,3030.26% 4/6/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,900,000 8,893,8290.43% 4/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,298,1580.44% 6/21/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000 898,108

Total Commercial Paper (Amortized Cost $721,782,645) . . . . . . . . . . . . . . . . . . . . . . . . . . 721,782,645



TEXASTERM SERIES DD


FaceAmount Value(1)

U.S. GOVERNMENT & AGENCY OBLIGATIONS (9.44%)Fannie Mae Discount Notes

0.55% 6/29/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,100,000 $ 5,085,975Federal Home Loan Bank Discount Notes

0.40% 2/16/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,998,4670.17% 3/8/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,6930.24% 4/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,820,000 2,818,0260.65% 6/10/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,230,000 3,220,6100.58% 6/17/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 997,293

Federal Home Loan Bank Notes0.73% 9/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,130,000 3,157,0990.73% 9/9/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,870,000 7,011,661

U.S. Treasury Notes0.41% 5/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 999,871 0.50% 8/1/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,440,000 19,749,3600.54% 8/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,795,000 34,673,8820.67% 8/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,190,000 6,193,2210.63% 8/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,877,000 4,953,0780.64% 8/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,990,000 2,997,2000.69% 9/15/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,278

Total U.S. Government & Agency Obligations (Amortized Cost $96,856,714). . . . . . . . . . . 96,856,714TOTAL INVESTMENTS (99.88%) (Amortized Cost $1,024,539,359) . . . . . . . . . . . . . . . . 1,024,539,359OTHER ASSETS IN EXCESS OF LIABILITIES (0.12%) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,162,398NET ASSETS (100.00%)

Applicable to 1,027,688,576 outstanding shares of beneficial interest (unlimited authorization – no par value). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,025,701,757

(1) See Note B to the financial statements.(2) Guaranteed by Federal Home Loan Bank Letter of Credit. (3) Subject to put with 1 day notice. The accompanying notes are an integral part of these financial statements.


Statements of Assets and LiabilitiesDecember 31, 2015

TexasTERM TexasTERMTexasDAILY Series DD Series CC

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 428,121 $ 123,223 $ 90,625

Investments (Amortized Cost

$2,041,368,294, $1,024,539,359

and $0 respectively . . . . . . . . . . . . . . . . . . 2,041,368,294 1,024,539,359 –

Interest Receivable . . . . . . . . . . . . . . . . . . . . 2,318,932 1,304,508 –

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 2,044,115,347 1,025,967,090 90,625

LIABILITIES

Payable for Securities Purchased . . . . . . . . . 19,971,400 – –

Redemptions Payable . . . . . . . . . . . . . . . . . . 250,532 – –

Management Fees Payable . . . . . . . . . . . . . 152,599 242,670 73,930

Custodian Fees Payable . . . . . . . . . . . . . . . . 16,560 6,752 1,330

Audit Fees Payable . . . . . . . . . . . . . . . . . . . . 24,700 13,333 15,255

Other Accrued Expenses . . . . . . . . . . . . . . . . 704 2,578 110

Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . 20,416,495 265,333 90,625

NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,023,698,852 $ 1,025,701,757 $ -

Statements of OperationsTexasTERMSeries DD TexasTERM Series CC

TexasDAILY July 7, 2015(1) September 5, July 1, 2015Year Ended through 2014(1) through through

December 31, December 31, June 30, December 31, 2015 2015 2015 2015(2)

INCOME

Interest Income . . . . . . . . . . . . . . . . . . . . . . $ 4,229,420 $ 1,119,683 $ 1,627,792 $ 766,185

Total Income . . . . . . . . . . . . . . . . . . . . . . . 4,229,420 1,119,683 1,627,792 766,185

EXPENSES

Management Fees. . . . . . . . . . . . . . . . . . . . 2,446,557 329,170 714,554 337,437

Custodian Fees . . . . . . . . . . . . . . . . . . . . . . 112,099 12,817 26,198 9,766

Audit Fees . . . . . . . . . . . . . . . . . . . . . . . . . 24,700 13,333 25,000 15,000

Legal Fees . . . . . . . . . . . . . . . . . . . . . . . . . . 4,125 351 1,016 396

Other Expenses. . . . . . . . . . . . . . . . . . . . . . 24,466 7,524 4,683 2,910

Total Expenses . . . . . . . . . . . . . . . . . . . . . 2,611,947 363,195 771,451 365,509

Less: Management Fee Waivers . . . . . . . (712,774) – – (453,060)

Expenses Paid Indirectly . . . . . . . . . (5,793) – – –Net Expenses . . . . . . . . . . . . . . . . . . . . . . 1,893,380 363,195 771,451 (87,551)(3)

Net Investment Income . . . . . . . . . . . . . . . . 2,336,040 756,488 856,341 853,736

Net Realized Gain on Sale of Investments . 28,536 3,795 62,299 41,148

Net Increase in Net Assets Resultingfrom Operations . . . . . . . . . . . . . . . . . . . $ 2,364,576 $ 760,283 $ 918,640 $ 894,884

(1)Commencement of operations for each respective TexasTERM series.(2)Scheduled termination date.(3)Expenses reflect result of recording management fee waivers for full term of the series at its termination date

once such waivers are finalized.The accompanying notes are an integral part of these financial statements.


TEXASDAILY

Statements of Changes in Net Assets

Year Ended Year Ended

December 31, December 31,

2015 2014

INCREASE (DECREASE) IN NET ASSETS

Operations

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,336,040 $ 588,022

Net Realized Gain on Sale of Investments . . . . . . . . . . . . . . 28,536 18,475

Net Increase in Net Assets Resulting from Operations . . . . 2,364,576 606,497

Distributions

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,336,040) (588,022)

Net Realized Gain on Sale of Investments . . . . . . . . . . . . . . (28,536) (18,475)

Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,364,576) (606,497)

Capital Share Transactions (at $1.00 per share)

Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,097,011,004 3,463,876,686

Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,738,893,726) (2,813,763,998)

Distributions Reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,364,576 606,497

Net Increase Resulting from Capital Share Transactions . . . 360,481,854 650,719,185

Total Increase in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 360,481,854 650,719,185

Net Assets

Beginning of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,663,216,998 1,012,497,813

End of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,023,698,852 $ 1,663,216,998

TEXASTERM SERIES DD

Statement of Changes in Net AssetsJuly 7, 2015(1)

through

December 31,

2015

INCREASE (DECREASE) IN NET ASSET

Operation

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 756,488

Net Realized Gain on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,795

Net Increase in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760,283

Distribution

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,659)

Net Realized Gain on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –

Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,659)

Capital Share Transaction

Shares Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,048,771,676

Shares Redeemed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,830,202)

Distributions Reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,659

Net Increase Resulting from Capital Share Transactions . . . . . . . . . . . . . . . . . . 1,024,951,133

Total Increase in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,025,701,757

Net Assets

Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –

End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,025,701,757

(1) Commencement of operations.The accompanying notes are an integral part of these financial statements.


TEXASDAILY

Financial HighlightsFor a share outstanding throughout each period

Year Ended December 31,

2015 2014 2013 2012 2011

Net Asset Value, Beginning of Year . . . . $1.0000 $ 1.0000 $ 1.000 $ 1.000 $ 1.000

Operations

Net Investment Income . . . . . . . . . . . . . .0011 .0005 .001 .002 .001

Total from Operations. . . . . . . . . . . . . . .0011 .0005 .001 .002 .001

Distributions

Net Investment Income . . . . . . . . . . . . . (.0011) (.0005) (.001) (.002) (.001)

Total Distributions. . . . . . . . . . . . . . . . . (.0011) (.0005) (.001) (.002) (.001)

Net Asset Value, End of Year . . . . . . . . . . $1.0000 $ 1.0000 $ 1.000 $ 1.000 $ 1.000

Ratios/Supplemental Data

Net Assets, End of Year (000) . . . . . . . . . $2,023,699 $1,663,217 $1,012,498 $915,527 $1,016,009

Total Return . . . . . . . . . . . . . . . . . . . . . . . 0.11% 0.05% 0.07% 0.12% 0.10%

Ratio of Expenses to Average

Net Assets Before Fee Waivers

and Expenses Paid Indirectly . . . . . . . . 0.12% 0.14% 0.15% 0.15% 0.14%

Ratio of Expenses to Average

Net Assets . . . . . . . . . . . . . . . . . . . . . . . . 0.09% 0.09% 0.10% 0.11% 0.10%

Ratio of Net Investment Income to

Average Net Assets Before Fee Waivers

and Expenses Paid Indirectly. . . . . . . . . 0.08% 0.00% 0.01% 0.07% 0.06%

Ratio of Net Investment Income to

Average Net Assets . . . . . . . . . . . . . . . . 0.11% 0.05% 0.06% 0.11% 0.10%


TEXASTERM SERIES CC

Statement of Changes in Net AssetsJuly 1, 2015 September 5, 2014(1)

through throughDecember 31, June 30,

2015(2) 2015

INCREASE (DECREASE) IN NET ASSETS

Operations

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 853,736 $ 856,341

Net Realized Gain on Sale of Investments . . . . . . . . . . . . . . 41,148 62,299

Net Increase in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 894,884 918,640

Distributions

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,384,281) (429,243)

Total Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,384,281) (429,243)

Capital Share Transactions

Shares Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,778,658 1,560,621,355

Shares Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,031,794,908) (648,418,629)

Distributions Reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,384,281 429,243

Net (Decrease) Increase Resulting from Capital Share Transactions . . . . . . . . . . . . . . . . . . . . . . . . . (912,631,969) 912,631,969

Total (Decrease) Increase in Net Assets . . . . . . . . . . . . . . . . . (913,121,366) 913,121,366

Net Assets

Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 913,121,366 –

End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ – $ 913,121,366

(1) Commencement of operations.(2) Scheduled termination date.


TEXASTERM SERIES CC

Financial HighlightsFor a share outstanding throughout the period

September 5, 2014(1) July 1, 2015

through through

June 30, December 31,

2015 2015(2)

Total return(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15% 0.21%

Ratio of Expenses to Average Net Assets Before Fee Waivers(4) . . 0.16% 0.17%

Ratio of Expenses to Average Net Assets After Fee Waivers(4)` . . . . 0.16% -0.04%(5)

Ratio of Net Investment Income to Average Net Assets

Before Fee Waivers(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.18% 0.18%

Ratio of Net Investment Income to Average Net Assets

After Fee Waivers(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.18% 0.39%

(1) Commencement of operations for each respective TexasTERM series.

(2) Scheduled termination date.

(3) Not annualized. Determined by geometrically linking daily returns.

(4) Ratios are computed on an annualized basis using the period during which shares of each TexasTERM serieswere outstanding as noted above. See Note A.

(5) Expense ratio reflects result of recording management fee waivers for the full term of the series at itstermination date once such waivers are finalized. The ratio of expenses to average net assets after fee waivers forthe full term of the series, September 5, 2014 through December 31, 2015, was 0.09%.

The financial highlights are calculated for the fund taken as a whole. The computation of such ratios and total returnfor an individual investor in TexasTERM may vary based on the timing of capital transactions. Since the net assetvalue of each investor’s investment in TexasTERM varies based on the timing and rate upon which they invest, pershare information for the fund as a whole is not included in the financial highlights presented above.


TEXASTERM SERIES DD

Financial HighlightsFor a share outstanding throughout the period

July 7, 2015(1)

through

December 31,

2015

Total Return(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.17%

Ratio of Expenses to Average Net Assets(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.16%

Ratio of Net Investment Income to Average Net Assets(4) . . . . . . . . . . . . . . . . . . . 0.34%


NOTES TO FINANCIAL STATEMENTS

A. OrganizationTexasTERM Local Government Investment Pool (the “Pool”) was organized under a common

investment contract on September 18, 2000. An elected Advisory Board is responsible for the

overall management of the Pool, including formation and implementation of its investment

and operating policies. The Pool is a non-taxable investment fund established for local

governments under the provisions of the Texas Interlocal Cooperation Act. The Pool has not

provided or obtained any legally binding guarantees to support the value of shares. All

participation in the Pool is voluntary.

The Pool offers two investment portfolios including TexasTERM and TexasDAILY (each a

“Portfolio” and collectively, the “Portfolios”). TexasTERM began operations on September 25,

2000 and TexasDAILY began operations on March 25, 2002. At December 31, 2015, the

TexasTERM Portfolio consisted of two series: Series CC and Series DD. TexasTERM Series

CC commenced operations September 5, 2014 and terminated its operations on December 31,

2015. TexasTERM Series DD commenced operations on July 7, 2015 and is scheduled to

terminate its operations December 31, 2016.

These financial statements and related notes encompass TexasDAILY, TexasTERM Series CC

and TexasTERM Series DD.

B. Summary of Significant Accounting PoliciesThe Pool follows the accounting and reporting guidelines for investment companies in

conformity with U.S. generally accepted accounting principles (“GAAP”), but the Pool is not

required to register as an investment company with the Securities & Exchange Commission

(“SEC”). The preparation of financial statements in conformity with GAAP requires

management to make estimates and assumptions that affect amounts and disclosures in the

financial statements and accompanying notes. Actual results could differ from those estimates.

The following significant accounting policies of the Pool are in conformity with GAAP:

1. Securities are stated at fair value, which is determined by using the amortized cost method.

This method involves valuing a portfolio security initially at its original cost and thereafter

adjusting for amortization of premium or accretion of discount to maturity. Significant

inputs to the amortized cost method include purchase cost of security, premium or discount

at the purchase date and time to maturity. It is the Pool’s policy to compare amortized cost

and market value of securities periodically and no less frequently than as of the last

business day of each month. Market value is determined by reference to market prices.

2. Security transactions are accounted for on trade date. Costs used in determining realized

gains and losses on the sale of investment securities are those of specific securities sold.

Interest income is recorded using the accrual method. Discounts and premiums are

accreted and amortized, respectively, to interest income over the lives of the respective

securities. The rates shown on the Schedule of Investments are the yield-to-maturity at

original cost unless otherwise noted. The dates shown on the Schedule of Investments are

the actual maturity dates.

3. Dividends from net investment income, net of realized gains or losses on the sale of

investments, are declared daily and are paid monthly for TexasDAILY and at maturity for

TexasTERM. For TexasTERM, a projected dividend to investors is determined when


shares are purchased and the dividend is declared and paid on the termination date of each

Series, except for dividends on shares redeemed pursuant to a planned early redemption or

a premature redemption before the termination date of such series, which will be declared

and paid when such shares are redeemed.

4. The Portfolios may invest cash in repurchase agreements secured by the U.S. Government

and its Agency obligations. Securities pledged as collateral for repurchase agreements are

constructively held by the Portfolio’s custodian bank until maturity of the repurchase

agreement. The Portfolios also may invest in tri-party repurchase agreements. Securities

held as collateral for tri-party repurchase agreements are maintained for the Portfolios in

the Pool’s account by the broker’s custodian bank until maturity of the repurchase

agreement. Provisions of the repurchase agreements require that the market value of the

collateral, including accrued interest thereon, be monitored daily. In the event of default or

bankruptcy by the other party to the agreement, realization and/or retention of the collateral

may be subject to legal proceedings. Repurchase agreements may be terminated at the

option of the Pool with seven days notice. U.S. GAAP requires balance sheet offsetting

disclosures for derivatives, repurchase agreements and securities lending transactions to the

extent that they are (1) offset in the financial statements or (2) subject to an enforceable

master netting arrangement or similar agreement. The disclosure requirements for the Pool

are included within the TexasDAILY Schedule of Investments under the section titled

Repurchase Agreements. The total market value of repurchase agreements held by

TexasDAILY at December 31, 2015 is $682,600,000 and they are collateralized by

$696,302,442 of non-cash collateral. TexasTERM Series DD did not hold any repurchase

agreements at December 31, 2015.

5. The Pool is not subject to federal or state taxes upon the income realized by it.

Accordingly, no provision for federal income taxes is required in the financial statements.

The Pool has evaluated this tax position to determine whether the tax position is “more

likely-than-not” of being sustained by the applicable tax authority. Management has

concluded that no provision for federal income tax is required for the Pool’s financial

statements.

6. The Pool has evaluated subsequent events through April 28, 2016, the date through which

procedures were performed to prepare the financial statements for issuance. No events have

taken place that meet the definition of a subsequent event that requires disclosure in these

financial statements.

C. Fair Value MeasurementsIn accordance with the authoritative guidance on fair value measurements and disclosures

under GAAP, the Pool discloses the fair value of its investments in a hierarchy that prioritizes

the inputs to valuation techniques used to measure the fair value. The hierarchy gives the

highest priority to valuations based upon unadjusted quoted prices in active markets for

identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based

upon unobservable inputs that are significant to the valuation (level 3 measurements). The

guidance establishes three levels of the fair value hierarchy as follows:

Level 1 – Quoted prices in active markets for identical assets.

Level 2 – Inputs other than quoted prices that are observable for the asset, including

quoted prices for similar investments based on interest rates, credit risk and like factors.

Level 3 – Unobservable inputs for the assets, including the Portfolios’ own assumption for

determining fair value.


Portfolio investments are assigned a level based upon the observability of the inputs which are

significant to the overall valuation. The inputs or methodology used for valuing securities are

not necessarily an indication of the risk associated with investing in those securities. Money

market securities are valued using amortized cost, as outlined in Rule 2a-7 under the

Investment Company Act of 1940, although the Portfolios are not registered under this act.

Generally, amortized cost approximates the current fair value of a security, but since the value

is not obtained from a quoted price in an active market, such securities held by the

TexasDAILY and TexasTERM Series DD portfolio are categorized as Level 2. There were no

transfers between levels in any of the Pool’s portfolios during the year ended December 31,

2015.

D. Fees and ChargesPFM Asset Management LLC (“PFMAM”) is a registered investment adviser under the

Investment Advisers Act of 1940. PFMAM provides investment management services to the

Portfolios, including investment advisory, distribution, shareholder accounting and certain

administrative services. Fees for all management services provided to the TexasTERM

portfolio are calculated at an annual rate of 0.15% of the average daily net assets of the

portfolio. Fees for all management services provided to the TexasDAILY portfolio are

calculated at an annual rate of 0.17% of the average daily net assets of the Portfolio up to $250

million, 0.13% on the next $250 million, 0.12% on the next $500 million, and 0.10% on such

assets in excess of $1 billion. Shares of the Pool’s portfolios are distributed by PFM Fund

Distributors, Inc., a wholly owned subsidiary of PFMAM. PFM Fund Distributors, Inc. is not

compensated by the Pool for these services.

In accordance with this contract, PFMAM is obligated to reimburse each Portfolio for the

amount by which annual operating expenses, including investment management services,

custodian, legal and audit fees, exceed 0.20% of each portfolio’s average daily net assets.

During the period September 5, 2014 through December 31, 2015, PFMAM voluntarily waived

$453,060 of the fees to which it was entitled for services provided to the TexasTERM Series

CC. In addition, during the year ended December 31, 2015, PFMAM voluntarily waived

$712,774 of the fees they were entitled for services provided to the TexasDAILY portfolio.

The Pool pays expenses incurred by its Advisory Board members, fees for cash management

and custodian services, audit fees, rating fees and legal fees. Expenses specific to a Portfolio of

the Pool are allocated to the Portfolio to which they relate. Expenses common to all Portfolios

are allocated based on the relative net assets of each Portfolio. During the year ended

December 31, 2015, cash management fees of the TexasDAILY Portfolio were reduced $5,793

as a result of earnings credits from cash balances.

The Pool has entered into agreements with several of its service providers which provide for

indemnification against losses, costs, claims and liabilities arising from the performance of

their obligations under such agreements, except for gross negligence or bad faith. The Pool has

had no claims or payments pursuant to these or prior agreements, and the Pool’s management

believes the likelihood of a claim being made is remote.

E. Governmental Accounting Standards (unaudited)Under Governmental Accounting Standards ("GAS"), state and local governments and other

municipal entities are required to disclose credit risk, concentration of credit risk, and interest

rate risk for investment portfolios. Although the Pool’s Portfolios are not reported herein under

GAS, the following risk disclosures of the TexasDAILY and TexasTERM Series DD portfolios

as of December 31, 2015 have been provided for the information of the Portfolios’ Participants.


Credit Risk

The Portfolio’s investment policies, as outlined in the Pool’s Information Statement, limits their

investments to those which are authorized investments under Chapter 2256 of the Texas

Government Code, the Public Funds Investment Act (“PFIA”). As of December 31, 2015, the

TexasDAILY and TexasTERM Series DD Portfolio was comprised of investments which were,

in aggregate, rated by Standard and Poor’s (“S&P”) as follows:

TexasDAILY TexasTERM

S&P Portfolio Series DD

Rating % %

AA+ 48.4% 1.0%

A-1+ 33.1% 34.5%

A-1 - 57.6%

Exempt* 16.8% 6.9%

Not Rated** 1.7% -

* Represents investments in U.S. Treasury securities, as well as the portion of repurchase agreements collateralized by U.S. Treasury securities, since U.S. Treasury securities are not considered to be exposed to overall credit risk per GAS.

** Represents investments in certificates of deposit insured by the FDIC.

The above ratings of the TexasDAILY Portfolio include the ratings of collateral underlying

repurchase agreements in effect for the portfolio at December 31, 2015.

Concentration of Credit Risk

As outlined in the Pool’s Information Statement, each Portfolio’s investment policy establishes

certain restrictions on investments and limitations on portfolio composition. The TexasDAILY

and TexasTERM Series DD investment portfolios at December 31, 2015 included the following

issuers which individually represented greater than 5% of each Portfolio’s total investment

portfolio:

TexasDAILY TexasTERM

Portfolio Series DD

Issuer % %

Bank of Tokyo Mitsubishi UFJ LTD – 9.9%

BNP Paribas* 10.4% 7.8%

Canadian Imperial Holding – 8.3%

Citizens Bank (PA)** 9.2% <5.0%

Credit Agricole CIB (NY) – 7.2%

Federal Farm Credit Banks 12.6% –

Federal Home Loan Banks 10.4% <5.0%

Goldman Sachs & Co.* 23.1% –

JP Morgan Securities LLC – 9.3%

Pentagon Federal Credit Union (VA)** 5.6% –

Rabobank Nederland NV (NY) – 7.8%

Santander Bank (DE)** 9.2% 14.0%

Toyota Motor Credit Corp. – 7.5%

UBS Finance Delaware LLC – 6.4%

U.S. Treasury 10.3% 6.9%

* These issuers are also counterparties to repurchase agreements entered into by the TexasDAILY Portfolio. These repurchase agreements are collateralized by obligations of the U.S. Government or its agencies or instrumentalities.

** Guaranteed by Federal Home Loan Bank letters of credit.


Interest Rate Risk

The Portfolio’s investment policies limit their exposure to market value fluctuations due to

changes in interest rates by requiring that (1) the TexasDAILY portfolio maintain a dollar-

weighted average maturity of not greater than sixty days; and (2) requiring that any investment

securities purchased by the Portfolios have a remaining maturity of 397 days or less at the

time of purchase (except for variable rate notes issued by the United States government or its

agencies or instrumentalities, which must have remaining maturities of 762 days or less). The

weighted average maturities of the TexasDAILY and TexasTERM Series DD portfolios at

December 31, 2015 were 18 days and 136 days, respectively.

The fair value and weighted average maturity of the types of investments TexasDAILY and

TexasTERM Series DD were invested at December 31, 2015 are as follows:

TexasDAILY Portfolio TexasTERM Series DD

Weighted Weighted

Fair Average Fair Average

Type of Investments Value Maturity Value Maturity

Cash and Cash Equivalents $ 428,121 1 Day $ 123,223 1 Day

Certificates of Deposit 539,000,000 10 Days 205,900,000 122 Days

Commercial Paper – – 721,782,645 130 Days

Repurchase Agreements 682,600,000 4 Days – –

U.S. Government Agency:

Discount Notes 121,923,175 60 Days 16,120,064 131 Days

Mortgage-Backed

Security Discount Notes 49,216,740 56 Days – –

Notes 437,939,236 14 Days 10,168,760 253 Days

U.S. Treasury Notes 210,689,143 53 Days 70,567,890 225 Days

$ 2,041,796,415 $1,024,662,582

The weighted-average maturities shown above are calculated based on the stated maturity

dates with the following exceptions: (1) floating or variable rate securities are assumed to have

an effective maturity of the date upon with the security’s interest rate next resets; (2) the

effective maturity of callable securities is assumed to be its stated maturity unless the security

had been called as of the reporting date, in which case the effective maturity would be

assumed to be its called date; and (3) the effective maturity of cash and cash equivalents is

assumed to be one day.

4720 • 3/16

Advisory Board Members and Officers Wes Eversole

President and Participant Board Member

Assistant Superintendent for Operations & Finance,Lake Dallas Independent School District

Deborah Laudermilk

Treasurer and Participant Board Member

Investment Officer,Travis County

Art Alfaro

Secretary and Participant Board Member

Treasurer,City of Austin

Leandro Garcia, CPA

Participant Board Member

Chief Financial Officer, Brownsville Public Utilities Board

Margie Grimes, CPA


Chief Financial Officer, Goose Creek Consolidated Independent School District

Susan Morgan, CPA


Chief Financial Officer, City of Round Rock

Edward B. Peacock, CPA

Non-Participant Board Member

Owner, Eddie Peacock, PLLC

Service ProvidersInvestment Advisor, Administrator

& Transfer Agent

PFM Asset Management LLC

One Keystone Plaza, Suite 300

North Front and Market Streets

Harrisburg, PA 17101-2044

221 West 6th Street

Suite 1900

Austin, TX 78701

Custodian

U.S. Bank, N.A.

123 South Broad Street

Philadelphia, PA 19109

Independent Auditors

Ernst & Young LLP

One Commerce Square

2005 Market Street, Suite 700

Philadelphia, PA 19103

Legal Counsel

McCall, Parkhurst & Horton L.L.P.

717 North Harwood

Suite 900

Dallas, TX 75201-6587

221 West 6th Street, Suite 1900 • Austin, Texas 78701512-472-7194 phone • 512-472-0932 fax

1-866-TEX-TERMwww.texasterm.net www.texasterm.org

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