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ATTY/AGR/2016.150/PFM-INVESTMENT ADVISORY SVC <br />REV: 06-22-16 JS <br />Page 15 of 16 <br />Monthly (Available online by the 3rd business day and mailed by the 5th business day) <br />Market Commentary (Internet) <br />Monthly Performance Report (In-person meeting, Internet, and by mail) <br />Quarterly (Available 30-40 days after quarter-end, depending on required exhibits) <br />City will be able to log in through the PFMAM portfolio reporting website, to view past <br />monthly portfolio statements, holdings as of the prior trading day, and the current <br />month’s transactions through the prior trading day. Monthly statements will typically be <br />available by the third business day following the end of the month. Reports follow GAAP <br />and GASB 31 and 40 standards, providing market valuations as well as book values <br />(amortized cost). Certain customized reports can be created and uploaded with online <br />access. <br />Performance benchmarks <br />PFMAM will hold an in-depth discussion about goals, risk and return preferences, and <br />cash flow needs with City staff. PFMAM will recommend a benchmark based on its <br />understanding of the City’s goal for the portfolio and tolerance for risk. <br />Complete fee schedule <br />The annual fee schedule follows based on the scope of services outlined in the City’s <br />request for proposal. <br />Assets under Management Annual Fee <br />First $100 million 7 basis <br />points (0.07%) <br />Next $100 million 6 basis <br />points (0.06%) <br />Assets over $200 million 5 <br />basis points (0.05%) <br />PFMAM will bill the City monthly in arrears based on the average amortized cost value, <br />accrued interest, and cash or money market fund balances of assets under <br />management for the month. The actual fees accrued each year pursuant to such <br />monthly billing will depend on the average amount of assets under PFMAM’s <br />management, provided, however, that, the amount billed for each year (dated from the <br />effective date of the Agreement or its anniversary, as appropriate) shall be no less than <br />$25,000 . No fee will be charged for assets invested outside of PFMAM’s management, <br />including those in LAIF and the County Pool. <br />PFMAM will fix the proposed fee schedule for three years, retaining the option to <br />negotiate a fee adjustment, in line with CPI, after the third year. There will be no <br />additional expenses for PFMAM’s normal service. <br />The City will incur the cost of custody and safekeeping with a third-party custodial bank. <br />6.1.I. - Page 44