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Credit Review Process PFMAM employs an extensive issuer review process built upon its independent and in- depth analysis of nongovernmental issuers. PFMAM's Credit Committee is the cornerstone of its issuer review process. The Committee is responsible for approving new issuers, monitoring existing holdings, and maintaining PFMAM's appraved issuer list. Issuers are added to PFMAM's approved list only if they: (1) Meet stringent credit requirements, (2) Have stable or improving credit fundamentals, (3) Are frequent issuers, and (4) Offer yields which represent value in their respective sector and industry. Daily Investment Procedures The PFMAM portfolio management team will review the City's portfolio on a daily basis. The team will discuss market developments, product offerings, new issues, and the potential impact of pending economic announcements will affect the portfolio. The team will also review portfolio holdings, upcoming maturities, cash flows, and any other specific directives. If a trade is identified, the trade process starts with a review of market conditions and relative value relationships. In strict compliance with the City's Investment Policy, PFMAM will decide what sector and maturity to purchase—the one with the best available combination of return and risk characteristics and which fulfills a need within the portfolio. Once executed, full details of all trades, including competitive bids and offers, will be provided to the City's staff on the same day as execution. The City will also have access to all trading activity through PFMAM's internet reporting site, Easy Online Network ("EON"), the day after the trade and will receive a complete reconciled reporting of transactions and holdings on a monthly basis. In addition, members of PFMAM`s engagement team will be available to answer any of the City's questions as needed. Reporting PFMAM will use a sophisticated portfolio management, reporting, and investment accounting system, CAMRA, (or its equivalent) to provide accurate and timely reports on security transactions and portfolio positions and to track credit quality on issuers and securities. Report include fair value, original and amortized cost, interest accruals, purchases and sales of accrued interest, and more. CAMRA also provides the data used for making decisions on investments. It interacts with Charles River, PFMAM's compliance software used to ensure adherence with investment policies and to measure portfolio performance. Daily Holdings (Internet only) Daily Transactions (Internet only) Daily Accounting Statement (Internet and by mail) ATTY/AGR/2016.150/PFM-INVESTMENT ADVISORY SVC REV:06-22-16 JS Page 14 of 16