Why “Back-Office” Belongs Front and Center…

Texas CLASS Back-office Operations

When it comes to the operations of a local government investment pool (LGIP), the back-office activities (fund accounting and client services) matter as much if not more than any other activity.

Typically, the safety of funds is referred to in very narrow terms, i.e., return of principal. Certainly, that tenet remains the overarching benchmark for any public funds investment.

But does the work to build funds stop with proper investment?

In our opinion, an LGIP is a complex endeavor requiring a high degree of care in the proper selection of securities, deep-dive credit research, risk management, compliance, and last but not least, the day-to-day administration and fund accounting of the LGIP. We believe that the “back-office” is misnamed and the operations of an LGIP play a vital role in ensuring access to the fund’s liquidity. LGIP operations also provide important daily communication regarding the LGIP’s key reporting metrics, i.e. weighted average maturity (WAM), net asset value (NAV), and dividend.

Internal Controls

NYCLASS carries a ‘AAAm’ Principal Stability Fund Rating from S&P Global Ratings. The ‘AAAm’ demonstrates an extremely strong capacity to maintain principal stability and limit principal losses. We believe that the NYCLASS Participants should not only have confidence in the safety of their portfolio but also in the internal controls surrounding their operations. We constantly work to refine and independently test the control objectives and activities for NYCLASS, including the controls over information technology, reporting, and all fund accounting related processes.

Accurate Reporting

We strive to provide you with accurate transaction and position reporting. Our goal is to have your month-end statements available to you by the fifth business day of the month. More often than not, we beat that goal. As a service, we email statements, but we encourage you to sign on to MYACCESS for retrieval purposes. We also strive to provide daily rate reporting, daily yields, WAM, and daily dividends are typically available on the website by 6 p.m. EST.

Account Access and Client Services

We believe that your NYCLASS account belongs to you. We make every effort to make your account management process easy and secure. Our client service team is here at every step to assist you. The NYCLASS client service team prides themselves on their accessibility and understands that the services they provide are critical to the timeliness and effectiveness of your daily operations.

NYCLASS Client Services is available via phone, email, and fax from 8:00 a.m. to 5:00 p.m. EST, and account information is available via MYACCESS 24/7. You may also utilize “Mobile MYACCESS” which allows you to access your accounts while you are at a meeting or on the go.

MYACCESS features high-level data security including the use of “Entrust Identity Guard,” a multi-factor security solution. Our team is committed to ensuring that MYACCESS maintains a high level of security because our job is to protect our Participants and the public’s funds. Because we understand the potential risks associated with having access to public financial information available online, our security measures are without equal making it extremely difficult for non-authorized people to access your local government’s account information.

We believe that the back-office is actually front and center to all responsible LGIP operations. Fund accounting and client service teams play an equally vital role, ensuring you have access to the funds’ liquidity as well as the knowledge and the benefit of the yield.

Our goal is to continually improve upon these services in the years to come, and we hope that you will engage with us, tell us how we’re doing, and most importantly, tell us how we can best serve you.

A ‘AAAm’ rating by S&P Global Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, and management. Ratings are subject to change and do not remove market risk.
All comments and discussions presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.