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REV: 07-22-2021 MI Technical and Research Capabilities Consultant tailors research capabilities to focus on short- and intermediate-term fixed- income assets of public agencies. Accordingly, its research and technical capabilities are focused only on those investments suitable for the public sector and rely on a combination of internal and external sources. Internal Technical and Research Capabilities Consultant’s internal technical and research capabilities include: A dedicated Portfolio Strategies Group that analyzes macro-level trends in the economy and the fixed income markets. Internally developed models that assess which market sectors have the best relative value based on current market conditions. Weekly in-depth internal research reports focused on six key asset classes: Treasuries, agencies, callable agencies, mortgage-backed securities, corporates, and municipal securities. Yield curve diagnostics that evaluate and quantify which maturities offer the best risk/return characteristics. Portfolio optimization methods that seek to construct portfolios that outperform benchmarks with lower volatility. External Sources of Research While Consultant’s primary investment research and analysis is done internally, it also has access to a wide range of external sources of economic and market information, including: Bloomberg Credit research from Moody’s Investors Service (“Moody’s”), Standard & Poor’s (“S&P”), and Fitch Ratings (“Fitch”) Broker/dealer research Research and views of financial industry economists Electronic real-time trading platforms, including Bloomberg Fixed-Income Trading (“FIT”), TradeWeb, and MarketAxess. These external sources of information will provide alternative perspectives to enhance the portfolio management process. Credit Review Process Consultant employs an extensive issuer review process built upon its independent and in- depth analysis of nongovernmental issuers. Consultant’s Credit Committee is the cornerstone of its issuer review process. The Committee is responsible for approving new issuers, monitoring existing holdings, and maintaining Consultant’s approved issuer list. Issuers are added to Consultant’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. ATTY/AGR.2021.129/PFM Asset Management LLC (Investment Advisory Services) (Page 14 of 17)