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analysis/limiting unnecessary liquidity; proactive management; and competitive <br /> shopping. <br /> PFMAM will also be responsible for day-to-day tasks related to portfolio management, <br /> including coordinating trade settlement with the broker and custodian, reconciling <br /> investment activity, monitoring credit quality, and preparing investment reports. <br /> Technical and Research Capabilities <br /> PFMAM tailors research capabilities to focus on short- and intermediate-term fixed- <br /> income assets of public agencies. Accordingly, its research and technical capabilities <br /> are focused only on those investments suitable for the public sector and rely on a <br /> combination of internal and external sources. <br /> Internal Technical and Research Capabilities <br /> PFMAM's internal technical and research capabilities include: <br /> • A dedicated Portfolio Strategies Group that analyzes macro-level trends in the <br /> economy and the fixed income markets. <br /> • Internally developed models that assess which market sectors have the best <br /> relative value based on current market conditions. <br /> • Weekly in-depth internal research reports focused on six key asset classes: <br /> Treasuries, agencies, callable agencies, mortgage-backed securities, corporates, <br /> and municipal securities. <br /> • Yield curve diagnostics that evaluate and quantify which maturities offer the best <br /> . risk/return characteristics. <br /> • Portfolio optimization methods that seek to construct portfolios that outperform <br /> benchmarks with lower volatility. <br /> External Sources of Research <br /> While PFMAM's primary investment research and analysis is done internally, it also has <br /> access to a wide range of external sources of economic and market information, <br /> including: <br /> � Bloomberg <br /> • Credit research from Moody's Investors Service ("Moody's"), Standard & Poor's <br /> ("S&P"), and Fitch Ratings <br /> � ("Fitch") <br /> • Broker/dealer research <br /> • Research and views of financial industry economists <br /> • Electronic real-time trading platforms, including Bloomberg Fixed-Income Trading <br /> ("FIT"), TradeWeb, and MarketAxess. <br /> These external sources of information will provide alternative perspectives to enhance <br /> the portfolio management process. <br /> ATTY/AGR/2016.150/PFM-INVESTMENT ADVISORY SVC <br /> REV:06-22-16 JS <br /> Page 13 of 16 <br />