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<br />ATTY/AGR/2016.150/PFM-INVESTMENT ADVISORY SVC <br />REV: 06-22-16 JS <br />Page 12 of 16 <br />EXHIBIT “A” <br /> <br />SCOPE OF SERVICES <br /> <br />Itemized List of what Consultant will do for City and at what price and schedule. <br /> <br />PFM Asset Management LLC (“PFMAM”) will provide the following services: <br /> <br />Portfolio Management <br />PFMAM will directly manage the City’s portfolio by: <br /> <br />• Assisting the City with strategy development, Investment Policy review, and <br />coordinating delivery of other services including reporting. <br />• Assisting the City’s portfolio management team by reviewing the City’s <br />investment requirements, evaluating macro investment options, and coordinating <br />an overall investment approach. <br />• Providing the City with a dedicated portfolio management team, responsible for <br />implementing the investment strategy, including comparatively analyzing <br />securities, executing trades, and coordinating and overseeing efficient <br />settlement, and have discretion for sector and issue selections within the context <br />of the City’s approved strategy and Investment Policy. <br /> <br />PFMAM’s understands that the management of public-sector funds is an important and <br />highly visible public service. For this reason, the investment objectives, in order of <br />priority, are: <br /> <br />• Safety: Preserve capital with high-quality investments <br />• Liquidity: Plan for and provide liquidity as needed <br />• Yield: Enhance return using low-risk active-management techniques <br /> <br />PFMAM will implement a portfolio designed to produce higher returns than high-quality <br />benchmarks with lower volatility and to work closely with the City to gain an in-depth <br />understanding of its objectives and risk tolerance. <br /> <br />PFMAM will create investment programs that are safe, diversified, and have lower <br />volatility. The PFMAM investment approach is based on relative value including the <br />thorough analysis of the relative merits and risks of various investment types, maturities, <br />and issuers in the context of current market conditions. <br /> <br />PFMAM’s portfolio management teams will review the City’s portfolios on a daily basis <br />to discuss market developments, product offerings, new issues, and the potential impact <br />of pending economic announcements. Portfolio manager teams also review portfolio <br />holdings, upcoming maturities, cash flows, and any other client-specific needs. <br /> <br />PFMAM will use the following strategies for portfolio management: duration <br />management; sector weighting; yield curve placement; issue selection; cash flow <br />6.1.I. - Page 41