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Contract 2022-029ADocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
2022-029
AGREEMENT NO. FOR
INVESTMENT ADVISORY SERVICES
THIS AGREEMENT, is made and entered into this 12 day of
April
2022, by and between the CITY OF CLERMONT, FLORIDA, a municipal corporation
under the laws of the State of Florida whose address is: 685 W. Montrose Street, Clermont,
Florida, (hereinafter referred to as "CITY"), and PFM ASSET MANAGEMENT LLC,
whose address is: 225 E. Robinson Street, Suite 250, Orlando, FL 32801, (hereinafter
referred to as "CONTRACTOR").
WHEREAS, Broward County School Board through the public procurement process
awarded an Agreement for investment advisory services, Broward County School Board
Contract Number RFP FY21-209 as of February 15, 2022.
WHEREAS, CITY desires to utilize the above -referenced awarded bid, CONTRACTOR's
response thereto and Agreement in accordance with CITY's procurement policy; and
WHEREAS, CONTRACTOR desires to enter into a contract with CITY based on the terms
and conditions of the Broward County School Board Contract Number RFP FY21-209.
WITNESSETH: That the parties hereto, for the consideration hereinafter set forth,
mutually agree as follows:
ARTICLE I — SCOPE OF WORK
The CONTRACTOR shall provide investment advisory services including management of
a medium -term investment portfolio as described in the Broward County School Board
Contract Number RFP FY21-209, which is attached hereto and incorporated herein as
Exhibit "A" and shall perform everything required by this Agreement and the other exhibits
attached hereto. Provided, however, that nothing herein shall require CITY to purchase or
acquire any items or services from CONTRACTOR that is not specified in the CITY's
purchase order. To the extent of a conflict between this Agreement and Exhibit "A", the
terms and conditions of this Agreement shall prevail and govern. In all instances the CITY
purchasing policy, resolutions and ordinances shall apply.
ARTICLE 2 — THE CONTRACT SUM
CITY shall pay CONTRACTOR, for the faithful performance of the Agreement as set forth
in the Agreement documents and the Unit Price Schedule as set forth in Exhibit "B",
attached hereto and incorporated herein.
ARTICLE 3 — TERM AND TERMINATION
3.1. This Agreement is to become effective upon execution by both parties, and shall
DocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
remain in effect until December 31, 2026 unless terminated or renewed by Broward
County School Board.
3.2. Notwithstanding any other provision of this Agreement, CITY may, upon written
notice to CONTRACTOR, terminate this Agreement: a) without cause and for
CITY's convenience upon thirty (30) days written notice to CONTRACTOR b) if
CONTRACTOR is adjudged to be bankrupt; c) if CONTRACTOR makes a general
assignment for the benefit of its creditors; d) CONTRACTOR fails to comply with
any of the conditions of provisions of this Agreement; or e) CONTRACTOR is
experiencing a labor dispute, which threatens to have a substantial, adverse impact
upon the performance of this Agreement, without prejudice to any other right or
remedy CITY may have under this Agreement. In the event of such termination,
CITY shall be liable only for the payment of all unpaid charges, determined in
accordance with the provisions of this Agreement, for work, properly performed
and accepted prior to the effective date of termination.
ARTICLE 4 — PROVISION OF SERVICES AND COMPLETION OF WORK
4.1. The CONTRACTOR shall only provide to CITY investment advisory services
including management of a medium -term investment portfolio upon receipt of an
authorized order from CITY and shall provide the requested items in the timeframe
and as set forth in Broward County School Board Contract Number RFP FY21-209
or in the specific purchase order or authorized order submitted by CITY. Nothing
herein shall obligate CITY to purchase any specific amount of product from
CONTRACTOR or create an exclusive purchase agreement between CITY and
CONTRACTOR. CITY shall not be obligated or required to pay for any items
received until such time as CITY has accepted the items in accordance with the
order provided to CONTRACTOR.
4.2. CONTRACTOR, upon receipt of an order hereunder, shall immediately notify
CITY if it has an issue or question related to the fulfillment of the order or whether there
will be any delay in providing the items requested. Failure of CONTRACTOR to so notify
CITY will preclude CONTRACTOR from seeking payment of any kind for any items that
were delayed in delivery. Upon receipt of notification of the delay, CITY may at its sole
option cancel the order and seek the items from any available source.
ARTICLE 5 — PAYMENTS
In accordance with the provisions fully set forth in the Agreement Documents (as
hereinafter defined) CONTRACTOR shall submit an invoice to CITY monthly upon
completion of the services and delivery of products to CITY as set forth in the applicable
purchase order. CITY shall make payment to the CONTRACTOR for all accepted services
provided, within thirty (30) calendar days of receipt of the invoice.
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ARTICLE 6 — DISPUTE RESOLUTION - MEDIATION
6.1. Any claim, dispute or other matter in question arising out of or related to this
Agreement shall be subject to mediation as a condition precedent to voluntary
arbitration or the institution of legal or equitable proceedings by either party.
6.2. The CITY and CONTRACTOR shall endeavor to resolve claims, disputes and
other matters in question between them by mediation.
6.3 The parties shall share the mediator's fee and any filing fees equally. The mediation
shall be held in Clermont, Lake County, Florida, unless another location is mutually
agreed upon. Agreements reached in mediation shall be enforceable as settlement
Agreements in any court having jurisdiction thereof.
ARTICLE 7 — INSURANCE AND INDEMNIFICATION RIDER
7.1. Worker's Compensation Insurance — The CONTRACTOR shall take out and
maintain during the life of this Agreement, Worker's Compensation Insurance for
all its employees connected with the work of this Project and, in case any work is
sublet, the CONTRACTOR shall require the subcontractor similarly to provide
Worker's Compensation Insurance for all of the subcontractor employees unless
such employees are covered by the protection afforded by the CONTRACTOR.
Such insurance shall comply with the Florida Worker's Compensation Law. In case
any class of employees engaged in hazardous work under this Agreement at the site
of the Project is not protected under the Worker's Compensation statute, the
CONTRACTOR shall provide adequate insurance, satisfactory to the CITY, for the
protection of employees not otherwise protected.
7.2. CONTRACTOR's Commercial General Liability_ Insurance — The
CONTRACTOR shall maintain during the life of this Agreement, Commercial
General Liability and Business Automobile Liability Insurance as shall protect it
from claims for damage for personal injury, including accidental death, as well as
claims for property damages which may arise from operating under this Agreement
whether such operations are by itself or by anyone directly or indirectly employed
by it, and the amount of such insurance shall be as follows:
(a) CONTRACTOR's Commercial General Liability, $1,000,000 Each,
($2,000,000 aggregate). Liability Coverages, Bodily Injury Occurrence, &
Property Damage Combined Single Limit
(b) Automobile Liability Coverages, $1,000,000 Each, Bodily Injury &
Property Damage Occurrence, Combined Single Limit
(c) Professional Liability: Limits not less than $1,000,000 per claims -made
basis covering services provided under this contract.
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Insurance clause for both BODILY INJURY AND PROPERTY DAMAGE shall
be amended to provide coverage on an occurrence basis.
7.3. Indemnification Rider
(a) To the fullest extent permitted by law, the CONTRACTOR shall indemnify
and hold harmless the CITY and its employees from and against all claims,
damages, losses and expenses, including but not limited to reasonable
attorney's fees, arising out of or resulting from its performance of the Work,
provided that any such claim, damage, loss or expense (1) is attributable to
bodily injury, sickness, disease or death, or to injury to or destruction of
tangible property (other than the Work itself) , and (2) is caused in whole or
in part by any negligent act or omission of the CONTRACTOR, any
subcontractor, anyone directly or indirectly employed by any of them or
anyone for whose acts any of them may be liable, regardless of whether or
not such acts are caused in part by a party indemnified hereunder. Such
obligation shall not be construed to negate, abridge, or otherwise reduce any
other right to obligation of indemnity which would otherwise exist as to any
party or person described in this Article; however, this indemnification does
not include the sole acts of negligence, damage or losses caused by the
CITY and its other contractors.
(b) In any and all claims against the CITY or any of its agents or employees by
any employee of the CONTRACTOR, any subcontractor, anyone directly
or indirectly employed by any of them or anyone for whose acts any of them
may be liable, the indemnification obligations under this Paragraph shall
not be limited in any way by any limitation on the amount or type of
damages, compensation or benefits payable by or for the CONTRACTOR
or any subcontractor under workers' or workmen's compensation acts,
disability benefit acts or other employee benefit acts.
(c) The CONTRACTOR hereby acknowledges receipt of ten dollars and other
good and valuable consideration from the CITY for the indemnification
provided herein.
ARTICLE 8 — NOTICES
All notices shall be in writing and sent by United States mail, certified or registered, with
return receipt requested and postage prepaid, or by nationally recognized overnight courier
service to the address of the party set forth below. Any such notice shall be deemed given
when received by the party to whom it is intended.
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DocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
CONTRACTOR: PFM Asset Management LLC
225 E. Robinson Street, Suite 250
Orlando, FL 32801
Attn: Steven Alexander, Managing Director
COPY TO: PFM Asset Management LLC
213 Market Street
Harrisburg, PA 17101
Attn: Chief Administrative Officer
OWNER: City of Clermont
Attn: Brian Bulthuis, City Manager
685 W. Montrose Street
Clermont, FL 34711
ARTICLE 9 — MISCELLANEOUS
9.1. Attorneys' Fees — In the event a suit or action is instituted to enforce or interpret
any provision of this Agreement, the prevailing party shall be entitled to recover
such sum as the Court may adjudge reasonable as attorneys' fees at trial or on any
appeal, in addition to all other sums provided by law.
9.2. Waiver — The waiver by CITY of breach of any provision of this Agreement shall
not be construed or operate as a waiver of any subsequent breach of such provision
or of such provision itself and shall in no way affect the enforcement of any other
provisions of this Agreement.
9.3. Severability — If any provision of this Agreement or the application thereof to any
person or circumstance is to any extent invalid or unenforceable, such provision, or
part thereof, shall be deleted or modified in such a manner as to make the
Agreement valid and enforceable under applicable law, the remainder of this
Agreement and the application of such a provision to other persons or
circumstances shall be unaffected, and this Agreement shall be valid and
enforceable to the fullest extent permitted by applicable law.
9.4. Amendment — Except for as otherwise provided herein, this Agreement may not be
modified or amended except by an Agreement in writing signed by both parties.
9.5. Entire Agreement — This Agreement including the documents incorporated by
reference contains the entire understanding of the parties hereto and supersedes all
prior and contemporaneous Agreements between the parties with respect to the
performance of services by CONTRACTOR.
9.6. Assi_ng ment — Except in the event of merger, consolidation, or other change of
control pursuant to the sale of all or substantially all of either party's assets, this
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DocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
Agreement is personal to the parties hereto and may not be assigned by
CONTRACTOR, in whole or in part, without the prior written consent of city.
9.7. Venue — The parties agree that the sole and exclusive venue for any cause of action
arising out of this Agreement shall be Lake County, Florida.
9.8. Applicable Law — This Agreement and any amendments hereto are executed and
delivered in the State of Florida and shall be governed, interpreted, construed and
enforced in accordance with the laws of the State of Florida.
9.9. Public Records — Contractor expressly understands records associated with this
project are public records and agrees to comply with Florida's Public Records law,
to include, to:
(a) Keep and maintain public records that ordinarily and necessarily would be
required by the CITY in order to perform the services contemplated herein.
(b) Provide the public with access to public records on the same terms and
conditions that the CITY would provide the records and at a cost that does
not exceed the cost provided in this Florida's Public Records law or as
otherwise provided by law.
(c) Ensure that public records that are exempt or confidential and exempt from
public records disclosure requirements are not disclosed except as
authorized by law.
(d) Meet all requirements for retaining public records and transfer, at no cost,
to the CITY all public records in possession of CONTRACTOR upon
termination of the contract and destroy any duplicate public records that are
exempt or confidential and exempt from public records disclosure
requirements. CONTRACTOR shall use reasonable efforts to provide all
records stored electronically to the CITY in a format that is compatible with
the information technology systems of the CITY.
(e) IF CONTRACTOR HAS QUESTIONS REGARDING THE
APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE
CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS
RELATING TO THIS CONTRACT, CONTRACTOR SHALL
CONTACT THE CITY'S CUSTODIAN OF PUBLIC RECORDS AT
CITY CLERK'S OFFICE, (352) 241-7331.
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DocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
ARTICLE 10 — AGREEMENT DOCUMENTS
The Agreement Documents, as listed below are herein made fully a part of this Agreement
as if herein repeated.
Document Precedence:
10.1. This Agreement
10.2. Purchase Order / Notice To Proceed
10.3. An applicable Contractor Quote or Statement of Work
10.4. All documents contained in the Broward County School Board Contract Number
RFP FY21-209
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
this 12 day of April , 2022.
CITY OF CLERMONT
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DocuSign Envelope ID: A8B68091-3235-4612-A9B9-1ABD84605383
PFM Asset Management LLC
DocuSigned by:
By:
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Print Name: Steven Alexander
Title: Managing Director
Date:4/11/2022
Exhibit B
BROINARD
County Public Schools
Procurement & Warehousing Services
Mary C. Coker, Director
7720 W. Oakland Park Boulevard
Sunrise, Florida 33351
phone: 7544321-0505 • fax: 754-321-0936
[nary.coker@browordschools.com
www.browardschools.com/PWS
March 1, 2022
Mr. Steven Alexander, Managing Director
Mr. Richard Pengelly, Managing Director
PFM Asset Management, LLC
225 East Robinson Street, Suite 250
Orlando, Florida 32801
The School Board of
Broward County. Florida
Laurie Rich Levinson, Chair
Patricia Good, Vice Chair
Lori Alhadeff
Debra Kxon
Donna P. Korn
Sarah Leonardi
Ann Murray
Dr. Rosalind Osgood
Nora Rupert
Dr. Vickie L. Cartwright
Superintendent of Schools
RE: FY21-209 - Investment Advisory Services
To Whom it May Concern:
Attached is the executed Agreement between The School Board of Broward County, Florida, and PFM
Asset Management, LLC. This is the result of the School Boards' approval on February 15, 2022, for item
00-27. Full details are outlined in the Agreement.
Sincere
8
Mary C therine Co er, Director
Procurement & Warehousing Services
MCC:bm
Attachment(s)
cc: Charles High, Purchasing Agent
Ivan Perrone, Treasurer
Annmarie Richards, Coordinator, Economic Development & Diversity Compliance
Educafing Today's Sfudenfs to Succeed in Tomorrow's World
" " Broward County Public Schools is an Equal opportunity Employer s
Status: ORIGINAL
,�ociLaoa THE SCHOOL BOARD 'OF BROWARID COUNTY, FLORIIDA
Agenda Item Number: 00-27.
OOR 2022-02-i5 Regular School Board Meeting
CATEGORY: Consent or Open Item: Open
DO. Strategy &Operations I
'Special Order: NO �
'Ocouts5 L� DEPARTMENT:
Procurement & Warehousing Services
i Time for Special Order:
TITLE: I YAP-FY2I-209 - Investment Advisory Services
REQUESTED Approve the recommendation to award the above -referenced Request for
ACTION:
Proposal (RFPP) - FY21-209 - Investment Advisory Services; Contract Term:
February 15, 2022 through December 31., 2026; 4 Years,10 Months; User
Department: Treasuurerls Office; Award. Amount: $750,000; Awarded Yendor(s):
PFM Asset Manaeement LLC.
STRATEGIC ALIGNMENT
Which strategic initiative(s) best aligns to this item?
& Asset Management
Is approval of this agenda item required to implement a tactic included within an initiative of the strategic plan? YES
Will the implementation of this item have a direct impact on one of the2®24 Strategic Plan Primary Metrics? NO
If YES, identify theprimary metric and include the correspondingfigures in the
table below.
Level.
Baseline 2024 Target .
Most Current
N/A
NIA NIA
Also identify any secondary metrics utilized to evaluate the success of this
item initiative.
Metric B2S6 isre Target
BACKGROUND, SUMMARY EXPLANATION, AND HISTORY OF ITEM
Was this item previously presented to the School Board? �S
The School Board of Broward County, Florida, received two (2)
proposals for RFP FY21-209 - Investment Advisory Services. The
recommended vendor will assist the District in managing,
monitoring, and evaluating .its investments, PFM Asset Management
LLC will adhere to School Board Policy 3110 which sets forth the
investment objectives and parameters for the management of the
District's public funds.
Agreement has been reviewed and approved as to form and
content by the Office of the General Counsel.
If NO, outline below how staff
intends to evaluate the
success/impact of this
item/initiative.
uvestment Advisory
services assists the District
with meeting or exceeding
investment and/or policy
RELATED ITEMS
- 12/15/20
EXHIBITS
Executive Summary
Financial Analysis Worksheet
Recommendation Tabulation
Supplier Evaluation
1659
FDEF)E1iCdDENCFi';S:
Outline critical dependencies that are associated with successful implementation of this itemlinitiative.
i 2.
RESOURCES REQUIRED
Budget
Are additional funds required in relation to the approval of this item? NO --- If YES, How much additional funding is necessary to implement this item?
If NO, How much existingfunding will be spent to implement this item? $750,QOD
SOURCE OF FUNDS: Treasurer's Office Operating Budget.
Spending Authori
Is additional spend authority required for this item? YES
If YES, How much additional spending authority is necessary to implement this item? $750,00D
Staffing
Is additional staff required in relation to the implementation of this item? NO
If YES, identify the number of additional positions and the estimated costs for the additional staff.
No. Cost
BOARD ACTION: SOURCE OF ADDITIONAL INFORMATION
1---- - - - - -
(For Official School Board Records Only) Name: Ivan Perrone Phone: 754-321-1980APPROVE I -
Name: Mary C. Coker Phone: 754-321-0501
THE SCHOOL BOARD OF BROWARID COUNTY, FLORIDA
Senior Leader & Title
j Dr.Ekrumaine Fleming, Acting, Chief Strategy Sc OperationsOf�----- _ ..._.......
.... ...__�
Signature
If Dr. Jernuaiue Fleming, Acting
Electronic Signature
Form $4189 Revised 1/20
VLCl7SM
Approved in
Open Board
Meeting On: _-- February 15, 2022
r�X>4�
Y' _. x6avvlbl�
oar air
1660
AGREEMENT
TIIIS AGREEMENT is made and entered into as of this/J day of kAtlutlp 022
by and between
THE SCHOOL BOARD OF BROWARD COUNTY, FLORIDA
(hereinafter referred to as "SBBC" ),
a body corporate and political subdivision of the State ofFlorida,
whose principal place of business is
600 Southeast Third Avenue, Fort Lauderdale, Florida 33301
and
PFM ASSET MANAGEMENT LLC
(hereinafter referred to as "VENDOR"),
whose principal place of business is
213 Market Street
Harrisburg, Pennsylvania 17101
WHEREAS, SBBC issued a Request for Proposal identified as RFP FY21-209 —
Investment Advisory Services (hereinafter referred to as "RFP"), dated May 14, 2021, and
amended by Addendum No. 1, dated June 9, 2021 all of which are incorporated by reference
herein, for the purpose of receiving proposals for investment advisory services; and
WHEREAS, VENDOR offered a proposal dated June 9, 2021 (hereinafter referred to as
"Proposal") which is incorporated by reference herein, in response to this RFP.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants
contained herein and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Parties hereby agree as follows:
ARTICLE 1- RECITALS
1.01 Recitals. The parties agree that the foregoing recitals are true and correct
and that such recitals are incorporated herein by reference.
ARTICLE 2 -- SPECIAL CONDITIONS
2.01 Term of Agreement. Unless terminated earlier pursuant to Section 3.05 of this
Agreement, the term of this Agreement shall commence upon the execution of all parties and
conclude on December 31, 2026. The term of the Agreement may, by mutual agreement between
SBBC and VENDOR be extended for 180 days beyond the expiration date, if needed. SBBC's
Procurement & Warehousing Services Department, will, if considering extending, request a letter
consenting to renewal from VENDOR, prior to the end of the term. Any renewal period shall be
approved by an Amendment to this Agreement executed by both parties.
Agreement with PFMAsset Management LLC Page 1 of 16
2.02 Scope of Services Provided. VENDOR shall provide SBBC with the Scope of
Services in its Proposal and in compliance with this Agreement, the RFP and its Addenda, and as
specified in Attachment A — Scope of Services.
2.03 Cost of Services. SBBC shall pay for services rendered under this Agreement in
accordance with the fee schedule outlined in Attachment B — Cost of Services. VENDOR shall
submit to the Treasurer's Office, The School Board of Broward County, Florida, 600 SE 3rd
Avenue, 2' Floor, Fort Lauderdale, Florida 33301 an appropriate invoice to be paid to VENDOR
upon receipt after the issuance of the same invoice.
2.04 Priority of Documents. In the event of a conflict between documents, the
following priority of documents shall govern.
First: This Agreement, then;
Second: Addendum No. 1, then;
Third: RFP FY21-209 — Investment Advisory Services, then;
Fourth: Proposal submitted in response to the RFP by VENDOR.
2.05 Inspection of VENDOR's Records by SBBC. VENDOR shall establish and
maintain books, records and documents (including electronic storage media) sufficient to reflect
all income and expenditures of funds provided by SBBC under this Agreement. All VENDOR's
applicable records, regardless of the form in which they are kept, shall be open to inspection and
subject to audit, inspection, examination, evaluation and/or reproduction, during nonnal working
hours and upon reasonable notice, by SBBC's agent or its authorized representative to permit
SBBC to evaluate, analyze and verify the satisfactory performance of the terms and conditions of
this Agreement and to evaluate, analyze and verify the applicable business records of VENDOR
directly relating to this Agreement in order to verify the accuracy of invoices provided to SBBC.
Such audit shall be no more than one (1) time per calendar year.
(a) Duration of Right to Inspect. For the purpose of such audits, inspections,
examinations, evaluations and/or reproductions, SBBC's agent or authorized representative shall
have access to VENDOR's records from the effective date of this Agreement, for the duration of
the term of this Agreement, and until the later of five (5) years after the termination of this
Agreement or five (5) years after the date of final payment by SBBC to VENDOR pursuant to this
Agreement.
(b) Notice of Inspection. SBBC's agent or its authorized representative shall provide
VENDOR reasonable advance written notice (not to exceed two (2) weeks) of any intended audit,
inspection, examination, evaluation and or reproduction.
(c) Audit Site Conditions. SBBC's agent or its authorized representative shall have
access to VENDOR's facilities and to any and all records related to this Agreement, and shall be
provided adequate and appropriate work space in order to exercise the rights permitted under this
section.
(d) Failure to Permit Inspection. Failure by VENDOR to permit audit, inspection,
examination, evaluation, and/or reproduction as permitted under this section shall constitute
grounds for termination of this Agreement by SBBC for cause and shall be grounds for SBBC's
denial of some or all of any VENDOR's claims for payment.
Agreement with MdAsset Management LLC Page 2 of 16
(e} Overcharges and Unauthorized Charges. If an audit conducted in accordance with
this section discloses overcharges or unauthorized charges to SBBC by VENDOR in excess of two
percent (21/o) of the total billings under this Agreement, the actual cost of SBBC's audit shall be
paid by VENDOR. If the audit discloses billings or charges to which VENDOR is not contractually
entitled, VENDOR shall pay said sum to SBBC within twenty (20) days of receipt of written
demand unless otherwise agreed to in writing by both parties.
(0 Inspection of Subcontractor's Records. If applicable, VENDOR shall require any
and all subcontractors, insurance agents and material suppliers (hereafter referred to as "Payees")
providing services or goods with regard to this Agreement to comply with the requirements of this
section by insertion of such requirements in any written subcontract. Failure by VENDOR to
include such requirements in any subcontract shall constitute grounds for termination of this
Agreement by SBBC for cause and shall be grounds for the exclusion of some or all of any Payees'
costs from amounts payable by SBBC to VENDOR pursuant to this Agreement and such excluded
costs shall become the liability of VENDOR.
(g) Inspector General Audits. VENDOR shall comply and cooperate immediately
with any inspections, reviews, investigations, or audits deemed necessary by the Florida Office
of the Inspector General or by any other state or federal officials.
2.06 Notice. When any of the parties desire to give notice to the other, such
notice must be in writing, sent by U.S. Mail, postage prepaid, addressed to the party for whom it
is intended at the place last specified; the place for giving notice shall remain such until it is
changed by written notice in compliance with the provisions of this paragraph. For the present, the
Parties designate the following as the respective places for giving notice:
To SBBC: Superintendent of Schools
The School Board of Broward County, Florida
600 S.E. 3`'Avenue, 10"'Floor
Fort Lauderdale, Florida 33301
With a Copy to: Treasurer, Treasurer's Office
The School Board of Broward County, Florida
600 S.E. 31d Avenue, 2nd Floor
Fort Lauderdale, Florida 3330.1
To VENDOR: Mr. Steven Alexander, Managing Director
Mr. Richard Pengelly, Managing Director
PFM Asset Management LLC
225 E. Robinson Street, Suite 250
Orlando, Florida 32801
Email: alexanders(cr�,pfmam.com
Email: pengellyr(cr�pfmam.com
With a Copy to: Chief Administrative Officer
PFM Asset Management LLC
213 Market Street
Harrisburg, PA 17101
Email: molloyj@pfmam.com
Agreement with PFMAsset Management LLC Page 3 of 16
2.07 E-Verify. Pursuant to Section 448.095, Florida Statutes, any party
contracting with SBBC shall register with and use the E-Verify system to verify the work
authorization for all employees hired during the course of this Agreement. Any such parry shall
require any subcontractors used to perform the duties and responsibilities under this Agreement to
register with and use the E-Verify system to verify the work authorization for all employees
subcontractor hires during the course of this Agreement. If applicable, any such party must also
obtain and retain an affidavit from a subcontractor stating that the subcontractor does not employ,
contract with or subcontract with anyone who is not duly authorized to work in the United States.
If SBBC has a good faith belief that any such party has knowingly violated Section 448,09(l),
Florida Statutes, SBBC will immediately terminate this Agreement. Termination pursuant to this
section is not a breach of this Agreement and may not be considered as such.
2.08 Background Screening. VENDOR shall comply with all requirements of
Sections 1012.32 and 1012.465, Florida Statutes, and all of its personnel who (1) are to be
permitted access to school grounds when students are present, (2) will have direct contact with
students, or (3) have access or control of school funds, will successfully complete the background
screening required by the referenced statutes and meet the standards established by the statutes.
This background screening will be conducted by SBBC in advance of VENDOR or its personnel
providing any services under the conditions described in the previous sentence. VENDOR shall
bear the cost of acquiring the background screening required by Section 1012.32, Florida Statutes,
and any fee imposed by the Florida Department of Law Enforcement to maintain the fingerprints
provided with respect to VENDOR and its personnel. The parties agree that the failure of
VENDOR to perform any of the duties described in this section shall constitute a material breach
of this Agreement entitling SBBC to terminate immediately with no further responsibilities or
duties to perform under this Agreement. VENDOR agrees to indemnify and hold harmless SBBC,
its officers and employees from any liability in the form of physical or mental injury, death or
property damage resulting from VENDOR's failure to comply with the requirements of this section
or with Sections 1012.32 and 1012.465, Florida Statutes.
2.09 Public Records. The following provisions are required by Section 119.0701,
Florida Statutes, and may not be amended. VENDOR shall keep and maintain public records
required by SBBC to perform the services required under this Agreement. Upon request from
SBBC's custodian of public records, VENDOR shall provide. SBBC with a copy of any requested
public records or to allow the requested public records to be inspected or copied within a
reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes,
or as otherwise provided by law_ VENDOR shall ensure that public records that are exempt or
confidential and exempt from public records disclosure requirements are not disclosed except as
authorized by law for the duration of the Agreement's term and following completion of the
Agreement if VENDOR does not transfer the public records to SBBC. Upon completion of the
Agreement, VENDOR shall transfer, at no cost, to SBBC all public records in possession of
VENDOR or keep and maintain public records required by SBBC to perform the services required
under the Agreement. If VENDOR transfers all public records to SBBC upon completion of the
Agreement, VENDOR shall destroy any duplicate public records that are exempt or confidential
and exempt from public records disclosure requirements. If VENDOR keeps and maintains public
records upon completion of the Agreement, VENDOR shall meet all applicable requirements for
retaining public records. All records stored electronically must be provided to SBBC, upon request
from SBBC's custodian of public records, in a format that is compatible with SBBC's information
technology systems.
Agreement with PFM Asset Management LLC Page 4 of 16
IF A PARTY TO THIS AGREEMENT HAS QUESTIONS REGARDING
THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO ITS
DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THE
AGREEMENT,. CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT
754-321--1900, RECo "REQUESTS6d,BROWARDSCROOLS.COM, RISK
MANAGEMENT DEPARTMENT, PUBLIC RECORDS DIVISION, 600
SOUTHEAST THIRD AVENUE, FORT LAUDERDALE, FLORIDA 33301.
2.10 Liabili . This section shall survive the termination of all performance or
obligations under this Agreement and shall be fully binding until such time as any proceeding
brought on account of this Agreement is barred by any applicable statute of limitations.
(a) By SBBC: SBBC agrees to be fully responsible up to the li nits of Section 768.28,
Florida Statutes, for its acts of negligence, or its employees' acts of negligence when acting within
the scope of their employment and agrees to be liable, up to the limits of Section 76828, Florida
Statutes, for any damages resulting from said negligence.
(b) By VENDOR: VENDOR agrees to indemnify, hold harmless and defend SBBC,
its agents, servants and employees from any and all claims, judgments, costs, and expenses
including, but not limited to, reasonable attorney's fees, reasonable investigative and discovery
costs, court costs and all other sums which SBBC, its agents, servants and employees may pay or
become obligated to pay on account of any, all and every claim or demand, or assertion of liability,
or any claim or action founded thereon, arising or alleged to have arisen out of the —products,
goods or services wrongfully furnished whether by negligence or willfulness by VENDOR, its
agents, servants or employees; the equipment of VENDOR, its agents, servants or employees while
such equipment is on premises owned or controlled by SBBC; or the negligence of VENDOR or
the negligence of VENDOR's agents when acting within the scope of their employment, whether
such claims, judgments, costs and expenses be for damages, damage to property including SBBC's
property, and injury or death of any person whether employed by VENDOR, SBBC or otherwise.
2.11 Insurance Requirements. VENDOR shall comply with the following
insurance requirements throughout the term of this Agreement:
(a) General Liability. VENDOR shall maintain General Liability insurance during
the term of this Agreement with limits not less than $1,000,000 per occurrence for Bodily Injury/
Property Damage; $1,000,000 General Aggregate; and limits not less than $1,000,000 for
Products/Completed Operations Aggregate.
(b) Errors & Omissions and Fiduciary Liability. VENDOR shall maintain Errors &
Omissions and Fiduciary Liability insurance during the term of this Agreement, combined limit of
not less than $25,000,000 Annual Aggregate. If on a claims -made basis, the coverage must respond
to all claims reported within three (3) years following the term of the contract.
(c) Cyber Liability and Network Security. VENDOR shall maintain Cyber Liability
and Network Security insurance during the term of this Agreement of a limit not less than
$10,000,000 Annual Aggregate. If on a claims -made basis, the coverage must respond to all
claims reported within three (3) years following the term of the contract.
Agreement with PFMAsset Management LLC Page 5 of 16
(d) Crime/Financial Fidelity. VENDOR shall maintain Crime/Financial Fidelity
insurance during the term of this Agreement of a limit not less than $10,000,000, Employee
Dishonesty, Third Party Fidelity Bond, and Inside/Outside Money and Security coverage for
SBBC owned property in the care, custody and control of the VENDOR throughout the term of
this Agreement. If on a claims -made basis, the coverage must respond to all claims reported within
three (3) years following the term of the contract.
(e) Workers' Compensation. VENDOR shall maintain Workers' Compensation
insurance during the term of this Agreement in compliance with the limits specified in Chapter
440, Florida Statutes, and Employer's Liability limits shall not be less than
$100,000/$100,000/$500,000 (each accident/disease-each employee/disease-policy limit).
(f) Auto Liability. VENDOR shall maintain Owned, Non -Owned and Hired Auto
Liability insurance with Bodily Injury and Property Damage limits of not less than $1,000,000
Combined Single Limit.
(g) Acceptability of Insurance Carriers. The insurance policies required under this
Agreement shall be issued by companies qualified to do business in the State of Florida and
having a rating of at least A- VI by AM Best or Aa3 by Moody's Investor Service.
(h) Verification of Coverage. Proof of the required insurance must be furnished by
VENDOR to SBBC's Risk Management Department by Certificate of Insurance within fifteen
(15) days of the date of this -Agreement. To streamline this process, SBBC has partnered with
EXIGIS Risk Management Services to collect and verify insurance documentation. All certificates
(and any required documents) must be received and approved by SBBC's Risk Management
Department before any work commences to permit VENDOR to remedy any deficiencies.
VENDOR must verify its account information and provide contact details for its Insurance Agent
via the link provided to it by email.
(i) Required Conditions. Liability policies must include the following terms on the
Certificate of Insurance:
1) The School Board of Broward County, Florida, its members, officers,
employees and agents are added as additional insured with the exception of
Professional and Cyber Liability.
2) All liability policies are primary of all other valid and collectable coverage
maintained by The School Board of Broward County, Florida.
3) Certificate Holder: The School Board of Broward County, Florida, c/o
EXIGIS Risk Management Services, P.O. Box 4668-ECM, New York, New
York 10163-4668.
(h) Cancellation of Insurance. VENDOR is prohibited from providing services under
this Agreement with SBBC without the minimum required insurance coverage and must notify
SBBC within five (5) business days if required insurance is cancelled.
(i) SBBC reserves the right to review, reject, or accept any required policies of
insurance, including limits, coverage, or endorsements, herein throughout the term of this
Agreement.
Agreemeni with PFMAsset Management LLC Wage 6 of 16
2.12 Nondiscrimination.
(a) As a condition of entering into this Agreement, VENDOR represents and warrants
that it will comply with the SBBC's Commercial Nondiscrimination Policy, as described under,
Section D.1 of SBBC's Policy No. 3330 — Supplier Diversity Outreach Program.
(b) As part of such compliance, VENDOR shall not discriminate on the basis of race,
color, religion, ancestry or national origin, sex, age, marital status, sexual orientation, or on the
basis of disability or other unlawful forms of discrimination in the solicitation, selection, hiring,
or commercial treatment of subcontractors, vendors, suppliers, or commercial customers, nor shall
VENDOR retaliate against any person for reporting instances of such discrimination. VENDOR
shall provide equal opportunity for subcontractors, vendors, and suppliers to participate in all of
its public sector and private sector subcontracting and supply opportunities, provided that nothing
contained in this clause shall prohibit or limit otherwise lawful efforts to remedy the effects of
marketplace discrimination that have occurred or are occurring in the SBBC's relevant
marketplace. VENDOR understands and agrees that a material violation of this clause shall be
considered a material breach of this Agreement and may result in tennination of this Agreement,
disqualification of the company from participating in SBBC Agreements, or other sanctions. This
clause is not enforceable by or for the benefit of, and creates no obligation to, any third party.
2.13 Annual A.Upropriation. The performance and obligations of SBBC under
this Agreement shall be contingent upon an annual budgetary appropriation by its governing body.
If SBBC does not allocate funds for the payment of services or products to be provided under this
Agreement, this Agreement may be terminated by SBBC at the end of the period for which funds
have been allocated. SBBC shall notify the other party at the earliest possible time before such
termination. No penalty shall accrue to SBBC in the event this provision is exercised, and SBBC
shall not be obligated or liable for any future payments due or any damages as a result of
termination under this section.
2.14 Excess Funds. Any party receiving funds paid by SBBC under this
Agreement agrees to promptly notify SBBC of any funds erroneously received from SBBC upon the
discovery of such erroneous payment or overpayment. Any such excess funds shall be refunded to SBBC.
2.15 Incorporation by Reference. Attachment A, Attachment B, Attachment C,
Attachment D attached hereto and referenced herein shall be deemed to be incorporated into this
Agreement by reference.
2.16 Services of VENDOR. SBBC hereby engages VENDOR to serve as investment
advisor under the terms of this Agreement with respect to the funds described in this Agreement and
such other funds as SBBC may from time to time assign by written notice to VENDOR (collectively
the "Managed Funds"), and VENDOR accepts such appointment. In connection therewith, VENDOR
will provide investment research and supervision of the Managed Funds investments and conduct a
continuous program of investment, evaluation and, when appropriate, sale and reinvestment of the
Managed Funds assets. VENDOR shall continuously monitor investment opportunities and evaluate
investments of the Managed Funds. VENDOR shall furnish SBBC with statistical information and
reports with respect to investments of the Managed Funds. VENDOR shall place all orders for the
purchase, sale, loan or exchange of portfolio securities for SBBC's account with brokers or dealers
recommended by VENDOR and/or SBBC, and to that end VENDOR is authorized as agent of SBBC
to give instructions to the custodian designated by SBBC (the "Custodian') as to deliveries of
securities and payments of cash for the account of SBBC. In connection with the selection of such
Agreement with PFMAsset Management LLC Page 7 of 16
brokers and dealers and the placing of such orders, VENDOR is directed to seek for SBBC the most
favorable execution and price, the determination of which may take into account, subject to any
applicable laws, rules and regulations, whether statistical, research and other information or services
have been or will be furnished to VENDOR by such brokers and dealers. The Custodian shall have
custody of cash, assets and securities of SBBC. VENDOR shall not take possession of or act as
custodian for the cash, securities or other assets of SBBC and shall have no responsibility in
connection therewith. Authorized investments shall include only those investments which are
currently authorized by the state investment statutes and the applicable covenants and as
supplemented by such other written instructions as may from time to time be provided by SBBC to
VENDOR. VENDOR shall be entitled to rely upon SBBC's written advice with respect to anticipated
drawdowns of Managed Funds. VENDOR will observe the instructions of SBBC with respect to
broker/dealers who are approved to execute transactions involving the Managed Funds and in the
absence of such instructions will engage broker/dealers which VENDOR reasonably believes to be
reputable, qualified and financially sound.
2.17 Registered Advisor; Duty of Care. VENDOR hereby represents it is a registered
investment advisor under the Investment Advisers Act of 1940. VENDOR shall immediately notify
SBBC if at any time during the term of this Agreement it is not so registered or if its registration is
suspended. VENDOR agrees to perform its duties and responsibilities under this Agreement with
reasonable care. The federal securities laws impose liabilities under certain circumstances on persons
who act in good faith. Nothing herein shall in any way constitute a waiver or limitation of any rights
which SBBC may have under any federal securities laws. SBBC hereby authorizes VENDOR to sign
I.R.S. Form W-9 on behalf of SBBC and to deliver such form to broker -dealers or others from time
to time as required in connection with securities transactions pursuant to this Agreement.
2.18 VENDOR's Other Clients. SBBC understands that VENDOR performs investment
advisory services for various other clients which may include investment companies, cominingled
trust funds and/or individual portfolios. SBBC agrees that VENDOR, in the exercise of its
professional judgment, may give advice or take action with respect to any of its other clients which
may differ from advice given or the timing or nature of action taken with respect to the Managed
Funds. VENDOR shall not have any obligation to purchase, sell or exchange any security for the
Managed Funds solely by reason of the fact that VENDOR, its principals, affiliates, or employees
may purchase, sell or exchange such.security for the account of any other client or for itself or its
own accounts.
2.19 Disciplinary Actions. VENDOR shall promptly give notice to SBBC if VENDOR
shall have been found to have violated any state or federal securities law or regulation in any final
and unappealable judgment in any criminal action or civil suit in any state or federal court or in any
disciplinary proceeding before the Securities and Exchange Commission ("SEC") or any other
agency or department of the United States, any registered securities exchange, FINRA, or any
regulatory authority of any State based upon the performance of services as an investment advisor.
2.20 Brochure and Brochure Supplement. VENDOR warrants that it has delivered to
SBBC prior to the execution of this Agreement VENDOR's current SEC Form ADV, Part 2A
(brochure) Attachment C and Part 2B (brochure supplement) Attachment D. SBBC acknowledges
receipt of such brochure and brochure supplement prior to the execution of this Agreement.
Agreement with PFMAsset Management LLC Page 8 of 16
ARTICLE 3 — GENERAL CONDITIONS
3.01 No Waiver of Sovereign Immunity. Nothing herein is intended to serve
as a waiver of sovereign immunity by any agency or political subdivision to which sovereign
immunity may be applicable or of any rights or limits to liability existing under Section 768.28,
Florida Statutes. This section shall survive the termination of all performance or obligations under
this Agreement and shall be fully binding until such time as any proceeding brought on account of
this Agreement is barred by any applicable statute of limitations. ,
3.02 No Third Party Beneficiaries. The parties expressly acknowledge that it is
not their intent to create or confer any rights or obligations in or upon any third person or entity
under this Agreement. None of the parties intend to directly or substantially benefit a third party
by this Agreement. The parties agree that there are no third party beneficiaries to this Agreement
and that no third party shall be entitled to assert a claim against any of the parties based upon this
Agreement. Nothing herein shall be construed as consent by an agency or political subdivision of
the State of Florida to be sued by third parties in any matter arising out of any Agreement.
3.03 Independent Contractor: The parties to this Agreement shall at all times be
acting in the capacity of independent contractors and not as an officer, employee or agent of one
another. Neither party or its respective agents, employees, subcontractors or assignees shall
represent to others that it has the authority to bind the other party unless specifically authorized in
writing to do so. No right to SBBC retirement, leave benefits or any other benefits of SBBC
employees shall exist as a result of the performance of any duties or responsibilities under this
Agreement. SBBC shall not be responsible for social security, withholding taxes, contributions to
unemployment compensation funds or insurance for the other party or the other party's officers,
employees, agents, subcontractors or assignees.
3.04 Default. The parties agree that, in the event that either party is in default of
its obligations under this Agreement, the non -defaulting party shall provide to the defaulting party
(30) calendar days written notice to cure the default. However, in the event said default cannot be
cured within said thirty (30) calendar day period and the defaulting party is diligently attempting
in good faith to cure same, the time period shall be reasonably extended to allow the defaulting
party additional cure time. Upon the occurrence of a default that is not cured during the applicable
cure period, this Agreement may be terminated by the non -defaulting party upon thirty (30)
calendar days notice. This remedy is not intended to be exclusive of any other remedy, and each
and every such, remedy shall be cumulative and shall be in addition to every other remedy now or
hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by
any party of any right, power, or remedy hereunder shall preclude any other or future exercise
thereof. Nothing in this section shall be construed to preclude termination for convenience
pursuant to Section 3.05.
3.05 Termination. This Agreement may be canceled with or without cause by SBBC
during the term hereof upon thirty (30) calendar days written notice to the other parties of its desire
to terminate this Agreement. In the event of such termination, SBBC shall be entitled to a pro rota
refund of any pre -paid amounts for any services scheduled to be delivered after the effective date
of such termination. SBBC shall have no liability for any property left on SBBC's property by any
party to this Agreement after the termination of this Agreement. Any party contracting with SBBC
under this Agreement agrees that any of its property placed upon SBBC's facilities pursuant to
this Agreement shall be removed within ten (10) business days following the termination,
conclusion or cancellation of this Agreement and that any such property remaining upon SBBC's
facilities after that time shall be deemed to be abandoned, title
Agreement with PF'Mrlsset Management LLC Page 9 of 16
to such property shall pass to SBBC, and SBBC may use or dispose of such property as SBBC
deems fit and appropriate. 1
3.06 Compliance with Laws. Each party shall comply with all applicable federal,
state and local laws, SBBC policies, codes, rules and regulations in performing its duties,
responsibilities and obligations pursuant to this Agreement.
3.07 Place of Performance. All obligations of SBBC under the terms of this
Agreement are reasonably susceptible of being performed in Broward County, Florida and shall
be payable and performable in Broward County, Florida.
3.08 Governing Law and Venue. This Agreement shall be interpreted and construed
in accordance with and governed by the laws of the State of Florida. Any controversies or legal
problems arising out of this Agreement and any action involving the enforcement or interpretation
of any rights hereunder shall be submitted exclusively to the jurisdiction of the State courts of the
Seventeenth Judicial Circuit of Broward County, Florida or to the jurisdiction of the United States
District Court for the Southern District of Florida. Each parry agrees and admits that the state
courts of the Seventeenth Judicial Circuit of Broward County, Florida or the United States District
Court for the Southern District of Florida shall have jurisdiction over it for any dispute arising
under this Agreement.
3.09 Entirety of Agreement. This document incorporates and includes all prior
negotiations, correspondence, conversations, agreements and understandings applicable to the
matters contained herein and the parties agree that there are no commitments, agreements or
understandings concerning the subject matter of this Agreement that are not contained in this
document. Accordingly, the parties agree that no deviation from the terms hereof shall be
predicated upon any prior representations or agreements, whether oral or written.
3.10 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.
3.11 Assignment. Neither this Agreement nor any interest herein may be assigned,
transferred or encumbered by any party without the prior written consent of the other party. There
shall be no partial assignments of this Agreement including, without limitation, the partial
assignment of any right to receive payments from SBBC.
3.12 Captions. The captions, section designations, section numbers, article
numbers, titles and headings appearing in this Agreement are inserted only as a matter of
convenience, have no substantive meaning, and in no way define, limit, construe or describe the
scope or intent of such articles or sections of this Agreement, nor in any way affect this Agreement
and shall not be construed to create a conflict with the provisions of this Agreement.
3.13 Severability. In the event that any one or more of the sections, paragraphs,
sentences, clauses or provisions contained in this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, unlawful, unenforceable or void in any respect, such shall not
affect the remaining portions of this Agreement and the same shall remain in fiilI force and effect
as if such invalid, illegal, unlawful, unenforceable or void sections, paragraphs, sentences, clauses
or provisions had never been included herein.
3.14 Preparation of Agreement. The parties acknowledge that they have sought and
obtained whatever competent advice and counsel as was necessary for them to form a full and
complete understanding of all rights and obligations herein and that the preparation of this
Agreement with PFMAsset Management LLC Page 10 of 16
Agreement has been their joint effort. The language agreed to herein expresses their mutual intent
and the resulting document shall not, solely as a matter of judicial construction, be construed more
severely against one of the parties than the other.
3.15 Amendments. No modification, amendment, or alteration in the terms or
conditions contained herein shall be effective unless contained in a written document prepared
with the same or similar formality as this Agreement and executed by each party hereto.
3.16 Waiver. The parties agree that each requirement, duty and obligation set
forth herein is substantial and important to the fonnation of this Agreement and, therefore, is a
material terra hereof. Any party's failure to enforce any provision of this Agreement shall not be
deemed a waiver of such provision or modification of this Agreement unless the waiver is in
writing and signed by the party waiving such provision. A written waiver shall only be effective
as to the specific instance for which it is obtained and shall not be deemed a continuing or future
waiver.
3.17 Force Maieure. Neither party shall be obligated to perfonn any duty,
requirement or obligation under this Agreement if such performance is prevented by fire,
hurricane, earthquake, explosion, wars, sabotage, accident, flood, acts of God, strikes, or other
labor disputes, riot or civil commotions, epidemics, pandemics, government regulations, and the
issuance or extension of existing government orders of the United States, the State of Florida, or
local county and municipal governing bodies, or by reason of any other matter or condition beyond
the control of either party, and which cannot be overcome by reasonable diligence and without
unusual expense ("Force Majeure"). In no event shall a lack of funds on the part ofeither party be
deemed Force Majeure.
3.18 Survival. All representations and warranties made herein, indemnification
obligations, obligations to reimburse SBBC, obligations to maintain and allow inspection and audit
of records and property, obligations to maintain the confidentiality of records, reporting
requirements, and obligations to return public funds shall survive the termination of this
Agreement.
3.19 Agreement Administration. SBBC has delegated authority to the
Superintendent of Schools or his/her designee to take any actions necessary to implement and
administer this Agreement.
3.20 Counterparts and Multiple Originals. This Agreement may be executed in
multiple originals, and may be executed in counterparts, each of which shall be deemed to be an
original, but all of which, taken together, shall constitute one and the same Agreement.
3.21 AuthoritE. Each person signing this Agreement on behalf of either party
individually warrants that he or she has full legal power to execute this Agreement on behalf of
the party for whore he or she is signing, and to bind and obligate such party with respect to all
provisions contained in this Agreement.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement
on the date first above written.
Agreement with PFMAsset Management LLC Page t 1 of 16
(Corporate Seal)
ATTEST:
Dr. Vickie L. Cartwright
Interim Superintendent of Schools
FOR SBBC:
THE SCHOOL BOARD OF BROWARD
COUNTY, FLORIDA
Approved as to Form and Legal Content:
Digitally signed by Eric Abend
Reason: PFM Asset
Management
Date: 2022,02,02 13:39:59
-05'00'
Office of the General Counsel
[THIS SPACE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]
Agreement with PFMasset Management LLC Page 12 of 16
(Corporate Seal)
ATTEST:
, Secretary
Witness
--Witness
PFM ASSET MANAGEMENT TLC
By
Name:
Title:
of ^CC -
The Following EXtUL,&gEtvjnad Without Regard to
Whether the Party Chose to Use a Secretary's Attestation or Two (2) Witnesses.
STATE OF,
COUNTY OF
The foregoing instrument was acknowledged before me by means of Rphysical presence
or 0 online notarization, this, � ;date} bye � (name
of officer or agent, title of o�cer or age o a
(name of corporation acknowledgif. a 2:�(state or place of
incorporation) corporation, on behalf of the corporation.. He/she is 0 personally known to -me
(underline if applicable) or has produced _ (iype of
identification) as identification and who ®did/®slid not first take an oath this , �day of
2022.
My Commission Expires:
o� Y pia •. MELISSA D L DMAN
Notary Public State of Florida
�' A= Commission # GG` 329475
(SEA My Comm. Expires Apr 10, 2023
9onded through National Notary Assn.
Agreement with PFMAsset Mawgement LLC
Si at .re — Notary Pu is
Printed Dame of Notary
Notary's Commission. No.
Page 13 of 16
ATTACFIMEN T A
SCOPE OF SERVICES_PROVIDED
VENDOR shall actively manage, on a total return basis, SBBC's separate investment
portfolios pursuant to the specific, stated investment objectives and SBBC's investment
policy.
2. VENDOR shall place orders for the purchase and sale of securities, communicate
settlement information to SBBC staff, and assist in coordinating security settlement.
3. VENDOR shall have the necessary qualified professional staff to conduct an annual or
periodic operational review on the treasury management functions of SBBC to ensure that
SBBC complies with SBBC's Investment Policy, Internal Controls, and standard
investment practices.
4. VENDOR shall serve as a general resource to SBBC staff for information, advice, and
training regarding fixed -income securities, investments, and treasury operations.
5. VENDOR shall work with SBBC staff to develop a detailed, accurate cash flow analysis
and projections to ensure that the investment strategy is consistent with SBBC's cash
requirements. In addition, VENDOR shall work with capital budget and accounting staff
and assist in the development of project expenditure schedules for the purpose of
developing an investment plan, for all capital funds, including bond proceeds.
6. VENDOR shall provide monthly statements to SBBC on investment activity, earnings, and
the current value of the investment portfolio. These reports must include the information
as required by Governmental Accounting Standards Board® (GASB) standards and
pronouncements. The selected investment manager must maintain accurate reports of
investments, including a monthly asset allocation report of the investments and compliance
with applicable investment policies of SBBC and State of Florida statutes.
7. VENDOR shall provide quarterly investment reports, including a description of market
conditions, investment strategies, employed performance, and suggested changes to
investment strategy.
VENDOR shall meet with SBBC on a quarterly basis to report on the performance of the
investment portfolio and assist SBBC with the development of both short and long-term
investment strategies.
9. VENDOR's attendance at other meetings may also be required, as needed.
10. VENDOR shall conduct all aspects of the bond and structure products investment program
in compliance with the arbitrage and rebate requirements of the U.S. Treasury, currently
described in Section 148 of the Internal Revenue Code of 1986 as amended and of the
related Code of Federal Regulations.
Agreement with PFMAsset Management LLC Page 14 of 16
ATTACHMENT A
SCOPE OF SERVICES PROVIDED_
11. On occasion, VENDOR may be assigned by an engagement letter setting forth the terms
and conditions and cost of such services.
12. VENDOR shall adhere to the Code of Professional and Ethical Standards as described by
CFA Institute, Association for Investment Management and Research (AWR).
13. If this service is requested by SBBC in the future, VENDOR shall have the capability and
experience to develop, design, and independently bid a wide array of complex financial
investments (structure products) like advance refunding escrow accounts, repurchase
agreements, forward rate agreements, flexible investment contracts, and other municipal
derivatives. This service will be applied to SBBC's current bond proceeds, escrows, and
future bond issues with the knowledge of public sector asset and liability management.
(a) These services would be provided under this RFP as an Amendment to Agreement
with PFM Asset Management LLC or as a separate Agreement with PFM Swap
Advisors LLC.
[THIS SPACE INTENTIONALLY LEFT BLANK]
Agreement -with PFMAssetManagement LLC Page 15 of 16
ATTACHMENT B
COST OF SERVICE
The fees listed in this Agreement shall cover all of VENDOR's normal costs for these services, including
travel and out-of-pocket expenses. VENDOR is proposing to lower SBBC's fees in recognition of current
and the future near -term impacts of the COVTD-19 pandemic. The fee schedule below represents a 26%
reduction in annual costs for SBBC. VENDOR's fees do not include custodial fees, which would be
negotiated between SBBC and the custodian. The fees listed below represent the only compensation
VENDOR will receive for this engagement. Since fees are assessed based upon assets under management,
there will be no hourly fees associated with this engagement. Fees will be based on the average daily net
assets under management for the month and will be billed in arrears.
Separately Managed Account Fee Schedule, based on portfolio size. Assume a Portfolio Size of $200
Million.
Asset Under Management
Fixed Annual Fee (%)
First $25 Million
0.080%
Next $25 Million
0.060%
Next $50 Million
0.050%
Above $100 Million
0.050%
For all Assets Under Management up to $200 million
$92,000
For all Assets Under Management over $200 million
No Limit.
Pay incremental basis
points of .050%.
Calculation is based on a
daily aver a e balance
Additional Services
Outsourced Chief Investment Officer (OLIO) Fee Schedule for the Other Post Employment Benefits
(OPEB) Portfolio
All of the discretionary OC10 investment advisory services for the OPEB fund described in this Agreement
are included in the fee schedule outlined below, which includes administrative fees, investment advisory
for a multi -employer or single -employer trust structure, travel and meetings, as well as policy development
and implementation, asset allocation analysis, manager search, selection and monitoring, performance
calculation and attribution and customized .reporting exhibits. Underlying manager fees are netted from
returns, not included in the fee schedule and are subject to' change based on asset allocation and manager
lineup.
Assets Under Management
Management Fee in
Basis Points ("bps"..
First $25 Million
30 bps (0.30%)
Next $25 Million
15 bps (0.15%)
Assuming $10 million in assets, the annual fee would total $30,000 (or 30 basis points). SBBC would
receive an invoice outlining the calculation of monthly fees. This represents the only compensation
VENDOR will care. Additional costs may include underlying mutual fund expense ratios deducted directly
from returns, which currently range between 0.07% for an all passive implementation and 0.54% for a
heavily active implementation, depending on the final asset allocation and active vs. passive product mix.
Agreement with PFM.Afsset Management.LLC Page 16 of 16
ATTACH Rq, E H 7 C
ATTACHMENT C
Fora ARV, Part 2A
12/23/2021
This brochure provides information about the qualifications and business practices of PFM Asset Management LLC.
if you have any questions about the contents of this brochure, please contact us at fmarnre uest fmam.corn.
The information in this brochure has not been approved or verified by the United States Securities and Exchange
Commission or by any state securities authority.
Additional information about PFM Asset Management LLC is also available on the SEC's website at
www.adviserinfo.sec.gov_. The searchable IARD/CRD number for PFM Asset Management LLC is 122141.
PFM Asset Management LLC is a Registered Investment Adviser. Registration with the United States Securities and
Exchange Commission or any state securities authority does not imply a certain level of skill or training.
The following is a summary of material changes from our last Brochure dated March 30, 2021:
Effective December 7, 2021, PFM Asset Management LLC (PFMAM) became a wholly -owned subsidiary of U.S.
Bancorp Asset Management, Inc. (USBAM). USBAM is a direct wholly -owned subsidiary of U.S. Bank National
Association (U.S. Bank) and an indirect wholly -owned subsidiary of U.S. Bancorp. PFMAM continues to operate as a
separate registered investment adviser.
Changes made throughout this Brochure are reflective of this new relationship and are focused primarily in the
following areas:
® Item 4: Advisory Business
® item 5: Fees and Compensation
* Item 10: Other Financial industry Activities and Affiliations
e Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
* Item 12: Brokerage Practices
Item 14" Client Referrals and Other Compensation
Item 1S: Custody
Item 17: Voting Client Securities
We may, at any time, make material changes to this Brochure and if we do, we will either send you a copy or offer
to send you a copy (either by electronic means (email) or in hard copy form). if you would like another copy of this
Brochure, please download it from the SEC website as indicated above or you may contact our Chief Compliance
Officer, Leo Karwejna, at 717-231-6200 or at pfrnamrecluest@pfmam.com.
PAGE 2
ATTACHMENT C
Form ADV, Park 2A
12/23/2021
[ten 4: Advisory Business.............................................................................................................................4
Item 5: Fees and Compensation...................................................................................................................7
Item 6: Performance -Based Fees and Side -by -Side Management...........................................................1.
10
Item7: Types of Clients...... ................................................................. ......................... .... ...... .... I ...........
10
Item 8: Methods of Analysis, Investment Strategies and Risk of Loss .......................................................
10
Item 9: Disciplinary Information..................................................................................................•.............
17
Itern 10: Other Financial Industry Activities and Affiliations.......................................................................
17
Item 11: Code of Ethics, Participation or Interest in .
Client Transactions and Personal T rading ......................................................................................
19
Item12: Brokerage Practices.......................................................................................................................
20
Item 13: Review of Accounts.......................................................................................................................
21
Item 14: Client Referrals and Other Compensation....................................................................................
22
Item15: Custody..........................................................................................................................................
22
Item 16: Investment Discretion...................................................................................................................
23
Item17: Voting Client Securities.................................................................................................................
23
Item 18: Financial Information...................................................................................................................
25
PAGE 3
ATTACHMENT C
Form ADV, Part
12/23/2021
Effective December 7, 2021, PFMAM became a wholly -owned subsidiary of USBAM. USBAM is a direct
wholly -owned subsidiary of U.S. Bank and an indirect wholly -owned subsidiary of U.S. Bancorp. U.S. Bank is not
responsible for and does not guarantee the products, services or performance of PFMAM. PFMAM continues to
operate as a separate registered investment adviser.
PFMAM is a Delaware limited liability company.
As of December 31, 2020, the amount of client assets we managed on a discretionary basis was
$120,613,630,589 and the amount we managed on a nondiscretionary basis was $550,367,371. In addition, as of
December 31, 2020, we provided investment consulting services with respect to assets in the amount of
$42,069,033,081.
We offer the following types of investment advice:
Discretionary Advice
We offer discretionary advisory services for government, nonprofit and other institutional investors who
invest in fixed -income and multi -asset class strategies. When a client gives us investment discretion, we have the
authority to determine, without obtaining specific approval, (1) overall asset allocation, (2) the specific securities to
be bought and sold, (3) the amount of securities to be bought and sold and (4) the broker or dealer through which
the securities are bought or sold. For some accounts we may also have discretion to select the manager or sub -
adviser to be utilized to manage some, or all, of the portfolio assets. These decisions are subject to limitations of law
and restrictions in the contract with our client and limitations in our client's written investment policies. For
discretionary advisory engagements, we assume day -to -clay management responsibility for the assets covered by
the investment advisory agreement. Examples of the securities we may recommend include U.S. Treasury securities,
Federal Agency securities, high-grade corporate obligations, mortgage and asset backed securities, municipal
securities, institutional mutual funds (including exchange traded funds) and money market instruments. we arrange
for the purchase and sale of these securities to meet the investment objectives and cash flow requirements of each
client_
We manage many fixed -income portfolios on a total return basis. We also implement liability -driven
strategies that seek to generate cash flows from a portfolio of fixed -income securities to match specific liabilities
such as bond -funded defeasance accounts, construction accounts and insurance liabilities.
We also provide services to the PFM Multi -Manager Series Trust (MMST or the Trust), a registered open-
end investment company, utilizing a manager -of -managers structure. The Trust offers several funds (MMST Funds),
with each MMST Fund having specific investment objectives, policies, and restrictions. We are responsible for,
among other overall management services, determining investment strategies, selecting and monitoring unaffiliated
investment sub -advisers for each MMST Fund and for allocating and reallocating assets among the sub -advisers
consistent with each MMST Fund's investment obiective and strategies. We can also purchase securities directly for
the MMST Funds.
For some of our clients, including trusts, pension plans, endowments, foundations, other post -employment
benefits (OPEB) plans or other similar asset pools, we serve as a discretionary manager to invest a client's assets in
multiple types of investments. Generally, these accounts include a variety of asset classes, which may include
domestic equity, international equity, fixed income and alternative asset classes, including shares of MMST Funds.
PAGE 4
ATTACHMENT
N Forrfl ADV, Pan 2A
/23/2021
We provide discretionary multi -asset class investment services for multi -asset class mandates (sometimes
known as outsourced CIO, implemented consulting and a variety of other generic terms). We work with the client to
determine a target asset allocation based on a variety of risk and return characteristics. We then implement the
asset allocation, either by buying shares of mutual funds (including exchange -traded funds (ETF's) and shares of the
MMST Funds) and/or pooled funds or other investment vehicles (collectively, Funds), or by selecting separate
investment managers (sub -advisers) who will manage separate accounts of specific asset classes and/or strategies.
Under this approach, we have discretion to make the initial selection of the funds or investment sub -advisers. We
also provide ongoing periodic monitoring by evaluating the Fund's or the investment sub -adviser's portfolio
management philosophy, policies, processes, controls, personnel and investment performance. Clients who hire us
give us authority to change, drop or add funds or investment sub -advisers. The client generally gives the investment
sub -advisers both investment and brokerage discretion in managing its portion of the portfolio. We prepare forthese
clients periodic reports on the investment performance of the various funds, investment sub -advisers and the
portfolio as a whole.
We also offer clients the option to integrate ESG (Environmental, Social and Governance) factors into the
investment approach employed for their separately managed fixed -income or multi -asset class strategies. Through
this approach, our clients define objective ESG investment parameters that would be applied to select permitted
issuers for their separately managed fixed -income portfolio and permitted funds, strategies and/or managers for
their multi -asset class strategies. In addition, our multi -asset class ESG strategy provides clients with the option to
implement ESG into a dedicated sleeve of the portfolio or in funds or managers that incorporate ESG themes or
considerations.
We utilize third -party ESG data and analytics to evaluate issuer level and equity fund level ESG risks. For
multi -asset class strategies, eligible domestic equity funds are required to meet certain screening criteria on a best-
efforts basis. We monitor those funds' ESG risk scores to help ensure they continue to exhibit the appropriate ESG
risk characteristics.
Services to Registered Investment Companies and Local Government Investrrient Pools
PFMAM currently provides investment advisory and/or administrative services to 18 pooled investment
programs (generally known as local government investment pools) across 15 states and one registered investment
company whose series or classes are registered in multiple states. We generally, but not always, provide
administration services and an affiliate generally provides distribution services as described in this document. Where
PFMAM is the investment adviser to a pooled investment vehicle, investment objectives, guidelines and any
investment restrictions are described in the relevant offering documents for the vehicle.
Non discretionary Advice
We also may provide advice on a nondiscretionary basis where we offer clients investment
recommendations, subject to their specific approval and further execution instructions. In this case our client makes
trades directly or specifically approves our purchase or sale of specific securities, which may include non-negotiable
certificates of deposit.
Consulting Servlces
We also provide nondiscretionary investment consulting services to;
® governmental entities,
® public, Taft -Hartley and corporate pension funds,
® hospital endowments and foundations,
® trusts,
OPEB plans, and
® other similar institutional investors.
PAGE 5
ATTACHMENT C
Form AD , Part 2A
12/23/2021
As a consultant we may provide advice to the client in developing or revising its investment policy,
evaluating investment options; establishing and implementing a target asset allocation, determining performance
benchmarks, and selecting money managers, pooled trusts or mutual funds to carry out the client's investment
strategy. Subject to the client's specific approval, we may also purchase or sell pooled trusts or mutual funds, hire
or drop managers, or reallocate assets between managers or funds.
We typically begin these services by assessing the client's investment objectives, time horizon and risk
tolerance. As part of our consulting service, we provide reporting that may include an inventory of holdings, portfolio
analytics, credit analysis and investment performance, and whether the client's portfolio complies with its
investment policy.
Our consulting services to OPES plans and pension plans may involve financial reporting, analyzing cash
flow implications of different funding strategies, and other matters relatingto the OPEB benefits or pension benefits
and funding arrangements. Often, we perform these services by working with our client's other professional
advisors, such as the client's auditor or actuary.
Structured Prod€acts
We also provide analytical services for structuring and procuring portfolios in connection with the current
issuance or advance refunding of municipal bonds and the investment of bond proceeds. For these engagements we
arrange for purchases of specific securities that are generally government obligations or structured investments such
as forward delivery agreements or guaranteed investment contracts by obtaining bids on a competitive basis or by
negotiating on behalf of our client.
Services for Corporations, Insurers, Banks and Other Similar Financial Institutions
We also provide discretionary and nondiscretionary advice tailored for corporations, insurers, banks and
other similar financial institutions which invest in fixed -income securities. These services are tailored to the
particular investment needs, restrictions and requirements which apply to these types of clients.
These services may be subject to limitations of certain industry or regulatory requirements, and any other
restrictions in the contract with our client and our client's written investment policies. Examples of the securities we
may recommend include U.S. Treasury securities, Federal Agency securities, high-grade corporate obligations,
mortgage and asset backed securities, institutional bond mutual funds, municipal securities and money market
instruments. We arrange for or recommend the purchase and sale of these securities to meet the investment
objective, strategies, and risk preferences of each client.
Stable Value Management
We also offer stable value investment strategies for employee benefit plans that typically include fixed -
income investments and benefit -responsive wrap contracts or "wrappers" offered by insurance companies and
banks with an overall objective of seeking capital preservation and current income. Stable value strategies are
generally offered to defined contribution retirement plan participants either as a separately managed account which
we presently offer or via a sponsor's commingled fund.
These structures may utilize any or all of the following types of investments, which we refer to as "stable
value contracts":
® Guaranteed Investment Contracts (GIC): A stable value investment contract issued by. an insurance
company that pays a specified rate of return for a specified period and is backed by the financial strength
of the issuing entity. The GIC is supported by securities which are typically held on the issuing insurer's
balance sheet in either a general or separate account.
CUi
ATTACHMENT C
_ Form ADY, Part 2A
12/23/2021
Synthetic GIC: A stable value investment contract issued by an insurance company or a bank that
simulates the performance of a GIC through the use of financial instruments. The underlying assets
associated with a synthetic GIC are held in trust for the benefit of the investing plan's participants. Those
assets typically include high -quality fixed -income securities which are actively managed. To enable the
policyholder to realize a specific known value for the assets if it there is a need to liquidate them,
synthetic GICs utilize a benefit -responsive wrap contract that is designed to provide market, credit and
cash flow risk protection to the policyholder.
Separate account GIC: A stable value investment contract issued by an insurance company. The
underlying assets which we may sub -advise are owned by the issuing insurance company but held in a
separate account for the benefit of a participating plan or plans.
Synthetic GICs and separate account GICs typically require that the account be managed within specified
investment guidelines as a part of the underwriting and contract process of the issuer of the contract. These
additional guidelines serve to limit the scope or types of investments otherwise included within a client portfolio.
As part of a stable value strategy for the assets we manage, we will make allocations to various underlying
internally managed PFMAM and externally managed third -party fixed income investment accounts, monitor and
maintain portfolio duration, and coordinate the resources of various investment, legal and compliance professionals
and third -party managers. An ongoing review of portfolio structure, cash flow history, guidelines and objectives for
each client will occur. We may provide a full range of services such as advising on overall structure or third -party
manager asset allocation.
Acquiring stable value contracts is an important aspect of stable value management. Where requested, we
will identify and select, or assist in the selection of, the financial organizations issuing stable value contracts and
negotiate contracts on behalf of clients.
General Approach to AdvisM Services
We tailor our advisory services taking into account the following factors:
® the services that the client has requested,
9 the client's investment objective,
s the client's investment policy,
r the client's time horizon, and
® the client's risk tolerance.
A client may impose additional restrictions, including restrictions on the types, quality or maturity of
securities in which we can invest. We adhere to any investment restrictions provided by the client.
The fees we charge our advisory clients vary depending upon several factors including the types of
investments permitted, the personnel providing the advisory services, the particular strategy, the size of portfolio
being managed, the relationship with the client, and service requirements associated with the account.
Fees may also differ based on account type (e.g., a commingled, pooled account or a separate individual
portfolio account).
Fees for Discretionary Advice m Separate Accounts
We generally receive compensation calculated as a percentage of assets we manage. We receive this
compensation after a service is provided, and we bill in arrears on a monthly or quarterly basis. As a general
PAGE 7
ATTACHMENT T C
m Form ADV, Part 2A
12/23/2021
guideline, we charge the following fees for investment advisory services for fixed -income separate account
management and stable value strategy management:
Fixed -Income Assets Ender Management Annual Rate
First $25,000,000
In excess of $25,000,000
Stable Value Assets tinder Management
First $50,000,000
Next $50,000,000
Next $150,000,000
Next $250,000,000
0.25%
0.15 %
i
--Annual Rate
0.30%
0.25%
i
3
0.15
i
0.10 %
In excess of $500,000,000 0,075%
i
Generally, the fees we charge for these types of engagements are calculated based on the value of the
assets as determined by us using the agreed -upon measure in the contract with our client.
As a general guideline for the multi -asset class discretionary management, we charge the following fees for
investment advisory services:
Assets Under Management
First $10,000,000
Next $10,000,000
Next $30,000,000
Next $50,000,000
In excess of $100,000,000
Annual Rate
0.45 %
0.35%
0.25%
I.
i
0.20%
i
0.15
{
Generally, the fees we charge for these types of engagements are calculated based on the agreed -upon
measure in the contract with our client, typically market value of assets or amortized value plus accrued interest, as
determined by the custodian.
Registered Investrnent Cornpanies and Pools
The fees we charge for the investment services we provide to the registered investment company and local
government investment poois vary by program. The fee schedule may include various breakpoints depending on
asset levels and may include fee caps or waivers which can be triggered by the overall expense ratio of the pool. We
may also receive compensation for providing marketing and administrative services to the registered investment
company or local government investment pools.
WI DPW
ATTACHMENT C
12/23/2021
We generally provide these administrative and marketing services as an integral part of our investment
advisory services, and the fees we receive for these services may be included as a component of the investment
advisory fees we charge.
Nondiscretionaiy Advice
We generally charge fixed fees forthese services, depending upon the services thatthe client requests, and
the complexity of the services.
We also offer nondiscretionary advice on certificate of deposit investment programs, which are designed
to provide clients with a fixed rate to a fixed maturity date. Fees typically range up to 0.25% per annum of the cost
of the investment purchased by our clients. Under the certificate of deposit programs, we provide clients with the
option to set aside moneys in client accounts to pay our fee after we have performed the service.
Consulting Services
For investment consulting services we generally charge clients either a fixed fee or a fee that is based on a
percentage of assets. The fixed fee is based on the size of the portfolio, complexity, and scope of services which we
perform. As a general guideline, we charge asset -based fees in a range from 0.05% to 0.30% annually, based on the
characteristics listed above. From time to time, we charge hourly fees for these types of services.
Structured Products
In these engagements, we usually charge a fixed fee. We and our clients agree upon a fee at the Outset of
each of these engagements and the fee is a function of the size and complexity of the engagement. The client may
pay the fee or may instruct the investment contract counterparty or underwriter in writing to pay our fee on the
client's behalf. As a general guideline, the typical fee for investment of municipal bond proceeds in a structured
investment, or in a refunding bond escrow structuring and procurement engagement, is less than or equal to 0.20%
of the cost of the portfolio or the sum of the total deposits under the agreement. in limited circumstances, the fee
percentage will be higher, often because the portfolio is small.
Other Imponant Information About Our Compensation
Because we tailor our services to the individual needs of a client, we may offer clients more than one of the
services described above. In addition, we may also provide services not mentioned above, such as assisting our
clients with a one-time purchase or sale of securities_ The fees we charge are negotiable and vary depending upon
the particular services we perform and the complexity and extent of the work we provide.
We may charge a minimum fee for small accounts, as explained in Item 5, subsection 1 above. Other than
these minimum fee requirements, there are no other requirements for maintaining the account.
Fees are negotiable so one client may pay a higher fee than another client with similar investment
objectives or goals.
For some accounts, we may charge a minimum fee and for some we may apply a fee cap.
All fees are payable to us only after we perform the services. We do not require our clients to pay our fees
in advance. Under the majority of our investment advisory engagements clients authorize us to deduct fees from
their investment accounts after they are notified. Under some engagements, the client pays our fees from other
sources. The method of payment of our fees is subject to negotiation, and clients have the ability to choose the
method of payment, depending on the type of service. For most of our accounts, we bill monthly in arrears. Under
some client contracts we bill the client quarterly. For some services, we bill the client on a one-time basis only when
we complete the service.
—W
ATTACH EMT C
Form ADV, Part 2A
12/23/2021
We have an affiliate, PFM Fund Distributors, Inc., that is a broker -dealer under the Securities Exchange Act
of 1934. PFM Fund Distributors, Inc. typically serves as exclusive distributor of shares of the registered investment
company and local government investment pools (Pooled Funds) for which we serve as investment adviser and/or
administrator and we receive fees from this arrangement, as more fully described in Item 10 below.
No supervised person of our affiliated broker -dealer is compensated for the sale of securities.
PFMAM employees are paid a base salary plus a year-end bonus. The annual bonus is dependent upon the
profitability of the firm, each group's contribution to the overall profitability of the firm, and each individual's
contribution to the group's success. The firm's compensation plan is intended to recognize and reward excellent
performance on the part of individuals; however, no PFMAM employee is compensated on a commission -related
basis.
In rare instances we enter into advisory agreements under which the client pays us a fee, part of which is
performance based. For example, we may enter into agreements where the client pays us all or part of our fee to
the extent that the performance of the portfolio, we manage exceeds a predetermined benchmark, measured over
a designated period of time. We may manage both accounts that are charged a performance -based fee and accounts
which are charged other fees, typically a percentage of the value of assets managed. To address any concern that
we may have an incentive to favor certain investment opportunities for a performance -based account we follow
written procedures designed to allocate trades on an equitable basis considering the investment objectives of the
account and without regard to whether an account has a performance -based fee. Accounts with the same objectives
and permitted investments should receive a fair allocation over time of similar securities purchased.
PFMAM provides investment advisory services to institutional investors, including state and local
governments and their agencies, local government investment pools, non-profit organizations, pension and ®PEB
funds, banks and corporations. For information concerning minimum fee requirements, please see Item 5 above.
Fixed-incorne Porftlios - Analysis and Strategy
Investment strategies are developed by the Fixed -income Investment Committee which considers the
macroeconomic and interest rate conditions described below. The strategies provide guidance for portfolio
managers with regard to appropriate duration and sector allocation for individual portfolios. We may use a variety
of analyses as well as internal (including affiliates) and external data sources and market research. External sources
include various news and information sources, books, government bulletins, databases, research prepared byothers
and publications from rating agencies, unaffiliated broker -dealers and third -party information providers. We also
collect information from clients to determine their liquidity requirements, risk tolerances and any other policies or
procedures that guide the investment of the client's assets.
For clients whose objectives are measured by total return or income our investment approach emphasizes
the use of active management strategies that seek to add value. For liability -driven investment portfolios, such as
those funded with bond proceeds and used to pay project costs, we identify securities whose cash flows are expected
to meet a draw schedule and we may modify the portfolio as the draw schedule changes or as investment
opportunities present themselves, although in the latter case the draw schedule is considered first when making
modifications.
Our Fixed -Income Active Management Process
The following describes the principles of our fixed -income investment strategy:
Disciplined decision -malting process,
PAGE 10
ATTACHMENT
Fora ADV, Part 2A
12/23/2021
Duration positioning to manage risk: generally manage durations so they are close to relevant
benchmarks, usually no more than +/- 25% of a designated benchmark, and
Seek relative value through spread analysis, yield curve positioning, sector weightings and duration
management.
We use top -down analysis to assess macroeconomic conditions including interest rates, the shape of the
yield curve, Federal Reserve monetary policy, and current and historical yield spreads between sectors. Top -down
analysis is a key element of our duration and sector allocation decision -making process.
We believe identifying macro -level trends in these areas is important for adding value, controlling risk, and
lowering volatility.
We use a bottom -up approach to security selection that seeks to identify those industries and issuers with
fundamental characteristics and financial strength that enhances their potential to perform well. We seek to
combine fundamentally sound investments into a portfolio that optimizes return potential in consideration of
investment guidelines or restrictions.
Lastly, we incorporate low -risk active management techniques designed to augment our relative value
approach. We believe active management can capture market inefficiencies that create opportunities for return
enhancement. While we expectthat every security we buy will be suitable to hold to maturity, we frequently identify
opportunities to swap one investment for another to increase earnings, adjust portfolio duration, improve liquidity,
or restructure a portfolio to better meet future needs.
Many of the accounts we manage are short and intermediate -term fixed -income assets of governmental
entities, so we have tailored our research capabilities and resources to this area of the market. Our portfolio
managers and analytical team have access to three major on-line market trading systems: Bloomberg, MarketAxess,
and TradeWeb. These systems provide active market quotes, including real-time securities pricing. We also have
access to news from Bloomberg News, Dow Jones/Wall Street Journal, CVBC, and other public or specialized news
services. in addition, we communicate daily with approximately 30 major government securities dealers and receive
market information from them that assists us in identifying specific market opportunities. We supplement these
external systems and data sources with proprietary trading tools which we have developed.
After selecting investments to meet cash flow requirements and other objectives, we may position a
portfolio's duration to take advantage of expected interest rate movements: positioning with a shorter bias when
we expect rates to rise and longer when we expect rates to tall. We establish a duration (or average maturity) target
for the portfolio based on our macro view of the economy and the financial markets, the type of funds, cash -flow
analysis and benchmark chosen by a client. We seek to add value by re -balancing the portfolio to take advantage of
market opportunities and in anticipation of interest rate movements. Duration targets for our strategies are
established by our Fixed -Income Investment Committee and may be provided to our clients as a management and
oversight tool.
While maintaining the target duration range for a portfolio, we add value through asset allocation strategies
which involve sector selection (security type), yield curve placement (maturity), yield spread analysis and issue
selection. Our overall view of the financial markets provides the context for selecting maturities which we believe
represent the best relative value along the yield curve and the highest potential for enhanced return, for example
by "rolling down the curve" and for selecting specific securities within a sector. We perform proprietary analysis on
the yield curve to identify "cheap„ areas of the curve, and to evaluate a variety of portfolio structures. Using the
results of this analysis, our portfolios may be over- or under -weighted in certain maturity ranges.
We think there is a significant opportunity to enhance earnings with a strategy that focuses on the selection
of securities based on relative value. Sectors are selected which represent the best relative value based on our sector
outlook and historical sector spreads. Investments other than Treasuries are purchased when spreads are wide and
ATTACHMENT T C
Fo
rm ADV, Part 2A
avoided or sold when spreads are narrow. our portfolio managers and traders are assigned to specific market sectors
in order to monitor products and opportunities and these responsibilities run across all portfolios. Individual issues
are selected based on our assessment of issuerfinancial quality and rating trends, interest rate spread, credit trends,
issue structure and liquidity. Portfolios are generally diversified by security type and maturity to avoid a significant
investment in a single issuer and to accommodate varying cash flow needs to provide periodic liquidity.
We furnish monthly account summaries to each fixed -income portfolio client with assets under continuous
management. The summaries include details of all transactions and holdings at the end of the period. We also
provide account summaries on a daily basis via our internet portal. We may also provide an investment advice
memorandum upon advising and/or completing an order for a buy or sell of securities.
Fixed-Incorne Portfolio* - Kish
our fired -income strategies, like all investment strategies, involve certain risks. For portfolios whose
investments are limited to obligations of the U.S government we believe the risk of default is minimal; for those
invested in obligations of Federal agencies, we believe the risk is nearly as low as it is for direct obligations of the
U.S. government. Portfolios whose Investments include corporate and municipal obligations are subject to the risk
that an issuer will fail to pay principal or interest on a timely basis, while those containing mortgage -backed securities
are subject to the risk of uncertain timing of principal payments. in order to manage risks, we seek to diversify
portfolio holdings and we limit our investments in corporate and municipal obligations and in mortgage -backed
securities to those that are investment grade.
Portfolios are also subject to interest rate risk. This is because the market value of securities changes as
interest rates change, with a rise in rates reducing market values and a decline in rates increasing market values.
Changes in interest rates affect longer maturity securities more than they affect shorter maturity securities, other
things being equal. We manage this risk by managing these portfolios within duration ranges consistent with
portfolio objectives. Nonetheless, investors should expect to experience market value and total return volatility
which can include unrealized losses in excess of periodic income. Although the investment strategies we employ do
not involve significant or unusual risk beyond that of the general investment grade fixed -income markets, investors
should recognize that investing in securities involves a risk of loss that the investor should be prepared to bear. Past
performance is not a guarantee of future returns.
The risk of our top -down strategy is that our macro view of the economy and financial markets is wrong
and we position a portfolio's duration or sector allocation in a manner that is not optimal. We seek to manage this
risk by limiting variations from duration or maturity concentrations from those of client benchmarks and by
diversifying holdings among security types_ For liability -driven investment portfolios, we seek to minimize market
risk by approximately matching portfolio cash flows with expected liabilities.
The risk of our bottom -up strategy is that securities that we include in a portfolio because they are
perceived to have relative value may later lose value when compared with the general fixed -income market. We
seek to manage this risk by careful and systematic analysis of relative values, by performing credit analysis on issuers
of securities we recommend and by diversifying holdings.
Frequent trading of securities can create higher overall transaction costs that will reduce portfolio income.
We manage portfolios actively and we seekto minimize trading costs by recommending liquid issues that are actively
traded in the markets and by utilizing competitive bidding wherever feasible.
Certain portfolios may invest in ETFs. An ET F is an individual security that trades on an exchange and
represents a basket of securities or other assets that is designed to track the performance of specified indices,
sectors or asset classes. ETFs are subject to various risks, including the ability of the ETF's managers to meet the
investment objective, and to manage appropriately the ETF's portfolio when the underlying securities are redeemed
or sold, particularly during periods of market turmoil and as investors' perceptions regarding ETFs or their underlying
investments change. There is also no guarantee that an ETF will achieve a high degree of correlation to its targeted
index and therefore achieve its investment objective.
PAGE J2
,.
ATTACHMENT
Form ADV, Part 2A
12/23/2021
Stable value strategies are subject to many of the risks described above as well as those risks related to
stable valise contracts, which are designed to permit plan participant withdrawals for permitted purposes in
accordance with the plan, to occur at book value on the terms set forth in each contract.
The obligations of providers of stable value contracts are those of the providers, not us. There is no
guarantee that stable value contracts will continue to be valued at their contract value rather than market or fair
value or that providers under stable value contracts will fulfill their obligations. If the assets under a stable value
contract were revalued attheir market values, for purposes of redeeming investments by participants in a retirement
plan, this could cause a significant loss in value to the investor. In addition, certain stable value contracts typically
provide for an adjustment to contract value if a security that is part of the covered assets defaults or otherwise has
its credit risk deteriorate or becomes "impaired" as defined in the contract.
The market for stable value contracts is limited. There can be no assurance that sufficient stable value
contracts will be available in the future to replace or supplement existing contracts or, even if available, will be
available on favorable financial terms. Certain stable value providers offer bundled arrangements, under which the
provider has both the contract value obligation and the provider (or an affiliate) manages the underlying portfolio -
Multi -Asset Class Asset Management - Analysis and Sirafe6dy
The Multi -Asset Gass Investment Committee: 1) oversees multi -asset class portfolio strategies by
establishing asset allocation targets and approving investment sub -advisers (investment manager)/funds for all
discretionary multi -asset class accounts; Zj provides investment and portfolio risk oversight for investment decisions;
and 3) determines Capital Market Assumptionsthat are utilized to develop our multi -asset class portfolio strategies.
Capital Market Assumptions are generally determined annually for intermediate- and long-term time periods and
include expected returns and volatility measures for a wide range of asset classes. Intermediate -term (five years)
assumptions are derived from our assessment of current economic conditions, including corporate profits, balance
sheets, and current valuations for various asset classes. long-term assumptions (thirty years) are derived using an
economic building block approach that projects economic and corporate profit growth; and that takes into
consideration the fundamental factors driving long-term real economic growth, and our expectation for inflation,
productivity and labor force growth. We may use a variety of analyses as well as internal (including affiliates) and
external data sources and market research.
We use a consistent approach to multi -asset class accounts that involves:
Portfolio planning - we use a survey to facilitate a discussion with clients on all the asset classes to
help decide which should be permitted in the Final overall allocation. The survey also provides
information about goals, objectives, cash flow projections, risktolerance, ability to withstand losses, as
well as the view of the economy and the markets. The survey is revisited periodically throughout the
life of the engagement as client circumstances change.
Determining asset allocation structure - we believe that the asset allocation decision is the most
important factor in determining the expected investment return of a portfolio. The use of the portfolio
planning survey and Capital Market Assumptions allow us to determine an asset allocation plan for the
client. We use a modeling program from Ibbotson Associates (now owned by Morningstar, Inc.), along
with a proprietary modeling program which allow us to conduct a detailed asset/liability modeling
study. Each model uses the latest historical data on asset class investment returns, volatility, and
correlation with other asset classes. Our goal is to determine an "optimal" portfolio. We do this by
running a series of tests on each model to determine the probability of achieving the desired
investment objective under different market scenarios. Existing funding requirements may override
the more subjective "tolerance for loss." This process helps inform our clients of the range of outcome
possibilities associated with each asset allocation plan, and to identify a plan that best meets the
expectations set forth in the portfolio planning survey.
Investment manager selection - our research team monitors the investment products included in our
client portfolios. The research team corresponds with investment managers on a regular basis and
meets with there routinely to maintain an understanding of each manager's investment process and
strategy. As part of ongoing manager due diligence, research analysts run a series of risk/return
PAGE 13
ATTACHMENT C
Form AW4, Part 2A
12/23/2021.
statistics, peer universe analysis, portfolio attribution and style analysis on all investment strategies
employed in our clients' portfolios to help ensure they continue to bean appropriate component of
the overall portfolio.
Rebalancing - we evaluate a client's portfolio regularly to determine the need for rebalancing based
on factors including current allocation targets, perceived assessment of relative value, and changes in
Capital Market Assumptions. For multi -asset class portfolios where we have discretion, we establish
target levels for each asset class in the planning stages along with a minimum /maximum range and
may update these as our Capital Markets Assumptions and market conditions change. These
parameters are recommended for inclusion in the client's investment policy statement.
Ongoing Monitoring - we monitor a client's asset allocation, as well as the portfolio's money
managers/mutual funds on an ongoing basis through detailed analysis and our proprietary manager
ranking system. For our discretionary accounts, we may place a manager or fund on the watch list as a
result of lagging performance, poor risk metrics and/or qualitative issues, among other things. Removal
from the watch list is typically based on several quarters of improved performance against peers and
an appropriate benchmark or remediation of other issues. If problems endure, probation is a
subsequent step in the process of reviewing managers. Ultimately, if the problem persists, our Multi -
Asset Gass Investment Committee approves a termination recommendation.
Reporting -- we report investment performance for multi -asset class accounts on at least a quarterly
basis. Each client receives a report containing its own performance measures allowing the client to
review its plan and its investment managers' performance compared to the established benchmark,
while monitoring cash flows and other financial indicators. There is also a review of the economy,
financial markets and our investment strategy. Quarterly conference calls/meetings are held with
clients to review performance reports.
The strategies are implemented in multi -asset class accounts by investing in mutual funds or ETFs advised
by advisers that are not affiliated with us. In MMST the strategies are implemented either by allocating assets to
investment managers or by investing in mutual funds or ETFs advised by advisers that are not affiliated with us.
Shares of MMST Funds may make up a portion or all of the assets of a client's multi -asset class account.
Multi -Asset Class feet Mann eMent ® Risk
Investing in multi -asset class strategies involves a risk of loss that an investor should be prepared to bear.
The investment strategies we employ do not involve significant or unusual risk beyond that of the general markets
for international and domestic equities, fixed income, publicly traded real estate, and other investments we
recommend. In order to manage the risks inherent in these markets we seek to diversify portfolios by blending
equity, fixed income, and cash -based securities, in a manner that is designed to meet the client's risktolerance, with
the objective of reducing the risk of long-term losses. There is no assurance that the clients objectives will be met.
Past performance is not a guarantee of future returns.
Investing in cash, fixed income:, and equity funds through separate account managers, mutual funds or ETFs
involves risk. Each asset class has its own idiosyncratic risk and return characteristics. in modeling portfolios for our
clients, we assess the individual characteristics of asset classes from a historic and forward -looking point of view, to
optimize the best blend given the client's investment objectives and tolerance for risk. There is risk that our macro
view of the economy and assumptions about asset class characteristics is wrong and we position a portfolio's asset
allocation in a manner that is not optimal.
An ETF is an individual security that trades on an exchange and represents a basket of securities or other
assets that is designed to track the performance of targeted indices, sectors or asset classes. ETFs are subject to
various risks, including the ability of the ETF's managers to meet the investment objective, and to manage
appropriately the ETF's portfolio when the underlying securities are redeemed or sold, particularly during periods of
market turmoil and as investors' perceptions regarding ETFs or their underlying investments change. There is also
no guarantee that an ETF will achieve a high degree of correlation to its targeted index and therefore achieve its
investment objective.
PAG E 14
ATTACHMENT C
Form ADV, Part 2A
12/23/202 1
Use of Co- and rib -Advisers ;or Certain Strategy tmpliamentations
When third -party managers are engaged to carry out our fixed -income strategy or multi -asset class strategy,
they are chosen based upon their skill in specific investment styles or sectors and there is risk involved. We employ
a .due diligence process to review the capabilities of any proposed third -party manager and monitor third -parties on
an ongoing basis. Specifically, we examine their experience, background, expertise, investment philosophies,.
applicable operational capabilities, and past performance to assess how the manager has invested over a period of
time and in different economic conditions. We monitor managers, with such monitoring typically including
evaluating the underlying holdings, strategies, concentrations, terms and performing reference checks as part of our
initial and/or periodic risk assessment. A risk of investing with a third -party manager who has been successful in the
past is that the third -parity manager will not be able to replicate that success in the future. In addition, because we
do not control the underlying investments in a third -party manager's portfolio, there is also a risk that a manager
will deviate from the stated investment mandate or strategy of the portfolio, making it a less suitable investment.
Where multiple third -party managers are employed to manage a single account there is risk that the managers will
have offsetting strategies or overlapping investment holdings. We do not control a third -party manager's daily
business, regulatory compliance or operations, and seek to mitigate the investment, business, regulatory and
reputation@[ risks by undertaking due diligence and ongoing monitoring of the managers including monitoring of
their adherence to the investment policy and guidelines they are employed to implement.
ESG Investing — Analysis and Strategy
A growing number of investors are integrating environmental, social, and governance factors (ESG) into the
investment decision making process. As such, we have developed an investment approach to help our clients
implement ESG into their investment process and to manage ESG compliance on an ongoing basis. Ourfixed-income
ESG strategy provides our clients with the tools and methodology to develop and implement a customized ESG
strategy based on their defined ESG criteria. We employ third -parties such as Sustainalytics who provide ESG data
and ratings of companies that issue securities that we may recommend. We may also use third -party sub -advisers
to manage funds with specific ESG or impact investing goals, such as geographically -targeted mortgage -backed
securities or municipals.
We offer the potential for further customization through a range of screening tools, which can allow our
clients to exclude specific issuers, industries, and funds based on certain defined criteria. since objective ESG criteria
are defined, we work with the client to evaluate Investment strategies based on ESG investment parameters.
Investment parameters are applied using an ESG risk rating system and other evaluation tools. The risk rating system
is designed to objectively quantify an issuer's or fund's ESG risk from both an industry/sub-industry and issuer/fund-
specific standpoint. Much like traditional credit ratings, the risk rating system provides a basis to evaluate issuers
on a consistent basis and facilitates comparisons across industries and Issuers.
Our multi -asset class ESG investment strategy enables our clients to select approved funds that meet certain
ESG risk rating threshold as determined by third party providers. in addition, our multi -asset class ESG strategy
provides clients with the option to implement ESG into a dedicated sleeve of the portfolio or into a customized ESG
product that addresses a specific theme.
The following provides some additional detail related to our ESG strategies:
ESG integration strategies include systematic and explicit consideration of ESG factors in the
investment decision -malting process.
Values -based strategies, including screening for or avoiding certain companies or industries as
specified by the client.
Best in class strategies include making investments in companies based on positive ESG performance
relative to industry peers.
PAGE 15
ATTACHMENT C
Form ADV, Part 2A
12/23/2021
Theme -based strategies, including snaking investments based on specific environmental or social
themes or assets related to sustainability.
Hybrid strategy, including a combination of two or more of the above approaches.
We work through this process with our clients to help them develop and implement ESG investment
strategies that are customized to their sustainable investment objectives. This dynamic approach also provides our
clients with the flexibility to modify their ESG strategy as their sustainable investment objectives evolve.
ESG Risk
ESG strategies could cause an account to perform differently compared to accounts that do not utilize ESG
investment strategies. The criteria related to certain ESG strategies may result in an account forgoing opportunities
to buy certain securities when it might otherwise be advantageous to do so or selling securities for ESG reasons
when it might be otherwise disadvantageous for it to do so.
In addition, there is a risk that the companies identified by an ESG strategy do not operate as expected
when addressing ESG issues. A company's orfund's ESG performance or per oormance of the strategy could vary over
time, which could cause a portfolio to be temporarily invested in companies that do not comply with the client's
objectives in considering ESG characteristics. There can be significant differences in interpretations of what it means
for a company to have positive ESG characteristics and strategy investment decisions may differ depending on these
interpretations. In making investment decisions, we rely on information and data that could be incomplete or
erroneous, which could cause us to incorrectly assess a company's ESG characteristics.
Consulting Engage meats - Analysis Straletgy and Risk
For multi -asset class consulting ongagements where we do not have discretion, the methods and analysis
generally are similar to those for discretionary accounts as described above. However, determining asset allocation,
setting an appropriate asset mix and manager selection are the responsibilities of the client, and not us. We
generally make recommendations and report the results at quarterly client meetings and follow client direction with
regard to selecting managers and re -balancing accounts. As directed by the client, managers may include those that
are not approved for our discretionary accounts. In cases where a client directs assets to a manager that is not
approved, the level of ongoing diligence we perform may be limited and clients acknowledge this in writing. Risk for
these accounts is similar to risk for discretionary multi -asset class accounts.
Re ulirtory Risk
Changes to monetary policy by the Federal Reserve or other regulatory actions could expose fixed income and
related markets to heightened volatility, interest rate movements, yield spread changes, and reduced liquidity,
which may impact the universe of potential investment options, market values, and return potential.
Gybersecurity Risk
In addition to the risks identified above for each strategy, investing involves various operational and
financial risks associated with cybersecurity. These risks include both intentional and unintentional events at our
facilities or at one of our clients, third -party counterparties or service providers, that may result in a theft, loss or
corruption of data, result in the unauthorized release or other misuse of confidential information, and generally
compromise our ability to conduct our business. A cybersecurity breach may also result in a third -party obtaining
unauthorized access to our clients' information, including account numbers, account balances, and account holdings.
We have established and maintain business continuity plans and cybersecurity systems and protections designed to
reduce the risks associated with cybersecuritty breaches. However, there are inherent limitations in these plans and
ATTACHMENT C
Form ADV, Part 2A
12/23/2021
systems, including that certain risks may not have been identified, in large part because different or unknown threats
may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because we do
not directly control the cybersecurity systems of clients, issuers, trading counterparties, or third -party service
providers. There is also a risk that cybersecurity breaches may not be detected.
Business, Terrorism, and Catastrophe Risks
These are the risks of loss that maybe incurred, indirectly, due to the occurrence of various events, including
hurricanes, earthquakes and other natural disasters, terrorism and other catastrophic events such as a pandemic.
These catastrophic risks of loss can be substantial and could have a material adverse effect on our business and on
clients' portfolios, including investments we make.
We must disclose material facts about any legal or disciplinary event that is material to a client's evaluation
of our advisory business or the integrity of our management. Please refer to our ADV, Part J. for additional details.
We and other entities under the common control of U.S. Bancorp, including USBAM, U.S. Bank, U.S. Bank
Global Fund Services (USBGFS), and U.S. Bancorp Investments, Inc. (USBII), are related persons. We have certain
relationships with related persons, as described below, which may conflict with clients' interests. At a minimum,
conflicts are addressed by disclosing the conflicts to affected clients or prospective clients.
Our affiliate, PFM Fund Distributors, Inc. (PFMFD), is registered as a broker -dealer under the Securities
Exchange Act of 1934. Its sole activities are to serve as exclusive distributor to the registered investment company
and local government investment pools (Pooled Funds) for which we serve as investment adviser and/or
administrator. if our client invests in a Pooled Fund, we disclose this relationship to the client, through the Form ADV
Part 2A and the offering statement For the Pooled Fund. In addition, where Pooled Funds are employed as part of
our investment strategy, our investment advisory agreement with the client provides that if we invest client assets
in a Pooled Fund, either we will not take these assets into account for purposes of calculating our fees under the
client's investment advisory agreement, or we will credit the investment advisoryfee we earn on the client's Pooled
Fund investment against investment advisory fees due us related to the client's separately managed account that
holds assets in the Pooled Fund.
We serve as investment adviser to the MM5T and the MMST Funds. we may enter arrangements with a
third party to compensate for services provided. Such compensation payable to the third party is paid out of the fee
we receive from the Pooled Fund. We also serve as administrator and/or investment adviser to the following local
government investment pools:
® California Asset Management Trust (CAMP),
® Colorado Statewide investment Pool (CSiP),
® Florida Public Assets_ for Liquidity Management (FL PALM),
Illinois Trust,
® Massachusetts Development Finance Agency Short -Term Asset Reserve Fiend (Mass STAR),
® Michigan Liquid Asset Fund Plus (MILAF+),
® Minnesota Association of Governments Investing for Counties (MAGIC),
® Minnesota School District Liquid Asset Fund Plus (MSDLAF+),
m Missouri Securities Investment Program (MOSIP),
® Nebraska Liquid Asset Fund (NLAF),
® New Hampshire Public Deposit Investment Pool (NH PDIP),
New Jersey Asset & Rebate Management Program (NJ/ARM),
® North Carolina Investment Pool (NCIP),
® Pennsylvania Local Government Investment Trust (PLGIT),
® Pennsylvania OPEB Trust (adviser and distributor only),
PAGE V
As of November 30, 2021, PFMFU served as distributor to all pools.
We may receive referral business from our related persons and may pay referral fees to them, as described
further under "Client Referrals and Other Compensation" below.
USBAM also provides credit research and analysis to PFMAM, including development and management of
various approved issuers lists and approved counterparties used by both PFMAM and USBAM,
U.S. Bank serves as custodian and/or depository for a significant number of our separately managed
accounts and Pooled Funds. We may provide various investment advisory services to U.S. Bands for compensation,
including managing accounts of certain U.S. Bank clients as sub -adviser under authority delegated by U.S. Bank, for
which we may earn a negotiated fee.
We may invest client assets in mutual funds (including the First American Funds for which USBAM serves as
investment adviser) or other pooled investment vehicles to whom U5BGFS provides services and receives a fee.
USBII, a direct subsidiary of U.S. Bancorp, is a registered broker -dealer and SEC -registered investment
adviser. USBII may participate as a member of underwriting syndicates in securities offerings, for which it may
receive underwriting discounts or commissions. In certain circumstances and in compliance with applicable laws,
regulations and regulatory guidance, including Rule 10f-3 under the Investment Company Act of 1940 (the
"Investment Company Act"), we may recommend or purchase such securities for a client from a member of an
underwriting syndicate of which USBII is also a member. For non -investment company client accounts, we may
recommend or purchase such securities in which USBII participates in the underwriting syndicate if client investment
guidelines, restrictions, or other directives do not specifically prohibit the account from purchasing during such
securities offering and purchases are made from unaffiliated broker -dealers, unless client consent is obtained to
allow for purchases from USBII.
We have no arrangements with other investment advisers for direct or indirect compensation for
recommending those advisers to our clients. As a matter of policy and practice, we do not accept any fees,
commissions or other forms of compensation from any underlying investment managers or others affiliated with
our clients' accounts_
We may invest client assets in the publicly traded securities of other PFMAM clients or prospective clients.
In such circumstances, we do not and will not receive any compensation from the Issuers specifically for investing
client assets in such issuers' securities. We may also invest the assets of the clients in securities issued by companies
that are customers of our affiliates. For example, an issuer may be an investment advisory or commercial banking
customer of one of our affiliates; or one of our affiliates may be involved in the underwriting or distribution of debt
securities purchased by us on behalf of our clients. In such circumstances, the potential for a conflict of interest
exists between our obligation to seek the most suitable investments for our clients and the perception that we have
an incentive to assist in the success of our affiliate. In certain cases, we may also manage an issuer's proceeds from
an underwriting in which an affiliate has been involved, and may receive an advisory fee for doing so, including
where we have used our discretionary authority to purchase a portion of that issue for other clients.
PFMAM may have arrangements with certain of its affiliates under which PFMAM may provide
supplemental account administration, operations, client service, sales and marketing, product development and
management, risk management, information technology, legal and compliance services, human resources and other
corporate, finance or administrative services to orfor such affiliates or its clients, or PFMAM or its clients may receive
PAGE iS
Under Rule 204A-1 of the Investment Advisers Act of 1940, our employees are subject to our Code of Ethics
("Code"). Compliance with the Code is a condition of employment for all our employees.
This Code sets out ethical standards applicable to our employees. Employees are expected to maintain the
highest ethical standards, embody a business culture that supports actions based on what is right rather than
expediency, deal fairly with clients and one another, protect confidential information and seek guidance about
ethical questions. More specifically with respect to advisory activities, the Code requires that whenever our
personnel act in a fiduciary capacity, we will endeavor to put the client's interest ahead of the firm's. We will disclose
actual and potential meaningful conflicts of interest. We will manage actual conflicts in accordance with applicable
regulatory and legal standards. If applicable regulatory and legal standards do not permit management of a conflict,
we will seek to avoid the conflict.
We will not engage in fraudulent, deceptive or manipulative conduct with respect to clients. We will act
with appropriate care, skill and diligence.
Our employees are required to know when we are acting as a fiduciary with respect to the work they are
doing. if we are acting as a fiduciary, they are expected to comply with all fiduciary standards which apply to us in
performing their duties. In addition, they must also put the client's interest ahead of their own personal interest. An
employee's fiduciary duty is a personal obligation. While advisory personnel may rely upon subordinates to perform
many tasks that are part of their responsibilities, they are personally responsible for fiduciary obligations even if
carried out through subordinates.
in general, the Code expresses our recognition of our responsibilities to the public, clients and professional
associates. Our Code also contains various reporting, disclosure and approval requirements regarding employees'
personal securities transactions. The Code requires that our employees whom we deem to be "Access Persons" must
report certain personal securities transactions, including transactions in mutual funds advised by us, to our Chief
Compliance Officer, or to the person he designates. Additionally, designated Access Persons are required to pre -
clear personal securities transactions. We prohibit our Access Persons from participating in initial public offerings
unless our Chief Compliance Officer gives his approval_ We also prohibit ouremployees from purchasing any security
on PFMAM's restricted list.
You can receive a copy of our Code by contacting us at 213 Market Street, Harrisburg, PA 17101, by calling
717-231-6200 or by emailing pfmamrequest_@Ifm.com.
On infrequent occasions, our employees may invest in securities that coincidentally we also recommend
for purchase or sale in our client accounts. The securities we recommend for purchase and sale within our fixed -
income and multi -asset class portfolios are of the type which the Securities and Exchange Commission has expressly
recognized as presenting little opportunity for the type of improper trading which compliance with the Code of Ethics
reporting requirements is designed to uncover. Further, our employees are subject to our Code described above,
and because our personnel are acting in a fiduciary capacity, we require our employees to put the client's interests
ahead of their individual interests or that of the firm with respect to the purchase and sale of securities.
We have no obligation to buy, sell or recommend for purchase or sale any security that we or our employees
may purchase or sell for themselves or for any of our clients. We have no obligation to seek to obtain any material
nonpublic information about any issuer of securities, nor to effect transactions for our clients based on any material
nonpublic information as may come into our possession.
PAC F 19
ATTACHMENT C
Form ADV, Part 2A
12/23/2021.
In certain circumstances and in compliance with applicable laws, regulations and regulatory guidance, we
may effect a transaction between and among clients. We will only perform such transactions when it is determined
to be advantageous to participating clients. We will not act as a broker and do not receive compensation (other than
our investment advisory fees) related to such transactions. However, we may use a non-affiliated broker to facilitate
the trade when determined to'be in the client's interests. This is typically the case with client accounts that are not
custodied with an affiliate of ours.
Certain client assets are invested in investment companies for which we or an affiliate provide investment
advisory services. However, in such circumstances, we do not charge a separate advisory fee with respect to the
portion of the assets in a client's account that are invested in such fund(s).
We generally exercise brokerage discretion as follows: typically, our clients allow us to choose the broker
or dealer to execute the trades. In these situations, we deal with brokers and dealers whom we determine to be
major market makers for the types of securities purchased or sold. As a matter of policy, we do not recommend,
request or require a client to direct us to execute transactions through a specified broker -dealer. If a client provides
us with an approved list of brokers and dealers, we place all orders for the purchase or sale of securities for the
client's account with those brokers or dealers and this may limit our ability to achieve the most favorable price or
execution. Under these circumstances, the client and the broker or dealer determine the commission rates.
The factors that we consider in selecting or recommending a particular broker or dealer may include: the
execution, clearance and settlement capabilities of the firm; our knowledge of negotiated commission rates
currently available and other current transaction costs; the nature of the portfolio transaction; the size of the
transaction; the timing of the trade; the activity existing and expected in the market for the particular transaction;
confidentiality; the availability of research and research related services provided through such firms (as discussed
below); our knowledge of the financial stability of the firm; and our knowledge of actual or apparent operational
problems of the firm. Given these factors, our clients may pay transaction costs in excess of those which another
firm might have charged for effecting the same transaction.
When we select or recommend a firm that executes orders or is a party to portfolio transactions, relevant
factors taken into consideration may also include whether that firm has furnished research and research related
products and/or services. We receive a broad range of research services, including information on the economy,
industries, groups of securities and individual companies, statistical information, market data, accounting and tax
law interpretations, political developments, pricing and appraisal services, credit analysis, risk measurement
analysis, performance analysis and other information which may affect the economy and/or security prices.
Research may also consist of computer databases. Currently, as a matter of policy, we do not enter into any third
party or proprietary soft dollar arrangements where a broker -dealer provides research services in exchange for an
expectation of receiving a certain dollar amount of commissions.
From time to time some brokers offer us market commentary and data and statistical research reports on
the economy and financial markets and on specific issuers. We believe that this information improves the quality of
our investment and trading decisions for the benefit of all our clients. We obtain express authorization from our
clients to consider the furnishing of statistical research and other information by the broker or dealer. it is possible
that the use of a particular brokerage firm or firms may result from time to time in a less favorable price for a
transaction than if we canvassed a broader range of brokers. We believe that the practice of taking into account the
furnishing of market information is reasonable. For fixed -income and ETF securities we seek to minimize the effect,
if any, of research on the transaction costs by seeking multiple competitive bids and offers and involving major
market makers wherever feasible and use electronic trading platforms for many trades to facilitate market access
and to minimize transaction costs.
PAGE 20
ATTACHMENT
Form ADV, Part 2A
/23/2021
We have no agreement, understanding or other arrangement, either internal or with broilers and/or
dealers, which would influence the allocation of securities transactions among brokers and/or dealers, and we do
not utilize soft dollar arrangements other than those activities explicitly authorized under Section 28(e) of the
Securities Exchange Act of 1934.
In the fixed -income and ETF markets, we may cause securities transactions to be executed for a client's
account concurrently with authorizations to purchase or sell the same securities or shares for other accounts we
manage. It is our policy where feasible to aggregate the purchase or sale of securities or shares for various client
accounts in order to achieve efficiency of execution and better pricing. Each client participating in an aggregate
transaction will participate at the same price. Where we receive an allocation that is less than our aggregate order,
we normally allocate the securities or shares to the participating client accounts on a pro rata basis in proportion to
the size of the orders placed for each account, to the extent that we can. We may increase or decrease the amount
of securities or shares allocated to a client if necessary due to factors including avoiding odd lots in a particular
security,
We do not currently anticipate effecting brokerage transactions with any broker -dealer affiliated with us,
except for potential transactions with USBII, as described above under "Other Financial Industry Activities and
Affiliations."
We are prohibited from entering into any agreements or understandings under which brokerage with
respect to portfolio securities transactions, or other compensation, is directed to a broker dealer as consideration
for the promotion or distribution of the First American Funds' shares, also referred to as "directed brokerage
arrangements." Portfolio management and management involved in the process of selecting broker -dealers for
portfolio securities transactions are prohibited from considering the level of the First American Funds' sales or
promotional efforts of any broker -dealer in connection with such selection process.
For fixed -Income accounts our Fixed -Income Investment Committee generally meets monthly, or more
frequently as necessary to review the overall strategic direction and relative value and market risks. Tactical
opportunities are presented routinely through a report and analysis prepared and distributed by a sector specialist
and ,may be discussed at a meeting. These reports highlight interest rate trends and the relative value of different
sectors and maturity structures in the market. This investment committee consists of portfolio managers, senior
research staff and our chief investment officer.
Ad -hoc strategy discussions take place regularly, and may occur after any significant market moving event,
such as sudden changes in financial market conditions, change in general economic conditions, credit ratings
downgrades, and/or a ;material change in the value of a particular portfolio security or market sector.
Our fixed -income portfolio managers and traders are assigned specific accounts and review client portfolios
on a reguiar basis. The review includes upcoming maturities and any upcoming deposits or cash needs in a portfolio.
Stable value portfolios are overseen by the Stable Value Investment Committee which also meets monthly, or more
frequently as necessary. The stable value portfolio managers and research analysts monitor client positions on a
regular basis. They discuss regular cash positions, changes in issuers' credit conditions, anticipated cash flow,
economic conditions, potential liquidity needs and anticipated upcoming placements.
Multi -asset class accounts are overseen by our Multi -Asset Class Investment Committee which also meets
generally on a monthly basis, or more frequently as necessary to review the overall strategic direction of markets.
This investment committee consists of portfolio managers, research staff, our chief investment officer, and other
investment professionals. We monitorthe performance of multi -asset class accounts on at least a quarterly basis to
determine whether the underlying investments selected are performing in line with expectations and are meeting
the needs of the individual client. We provide our multi -asset class clients a quarterly analysis of the performance of
the underlying funds in which the client's assets are invested and of any reallocation of assets among these
ATTACHMENT C
Form ADV, Part 2A
12/23/2021
underlying funds. At least annually, we will consult with the client to determine whether there are reasons to revise
the client's target investment strategy.
Changes in our Capital Market Assumptions, our outlook for asset class valuation, sudden changes in
financial market conditions, and general economic conditions may trigger a review of our multi -asset class accounts.
Accounts are reviewed by an investment professional or in consultation with research staff or a portfolio manager.
Normally, we sequence account reviews in a manner that provides for first review of the accounts that have the
greatest potential exposure to the effects of the event which triggers the review.
Pursuant to our investment advisory agreements, we may also provide quarterly performance and
economic reviews for some clients.
The custodian of our multi -asset class portfolio clients provides each client with a monthly statement of
account detailing the client's month -end balances and anytransactions which occurred duringthe month. We review
these statements monthly to determine whether transactions executed by the custodian are in agreement with any
instructions which we or the client provided. In addition, we provide monthly written statements and quarterly
performance reports.
We maintain relationships with U.S. sank, and at times with unaffiliated third parties pursuant to which we
pay U.S. Bank and such unaffiliated third parties if they are responsible for introducing new client relationships.
Under these arrangements, we enter into a written agreement with the party that describes the party's activities on
our behalf and the amount we agree to pay the parity. The agreement also contains the party's undertaking to act
in a manner consistent with our instructions and with the provisions of the investment Advisers Act of 1940, and to
provide the referral with a copy of our Form ADV, Para: 2A and Part 2B. If the referral subsequently enters into an
investment advisory agreement with us, we pay the solicitor a percentage of our investment advisory fee, which fee
arrangement is disclosed to the prospect by the solicitor prior to any contact or meeting with the prospect. From
time to time, our employees could be eligible for certain referral fees or awards related to referring business to other
U.S. Bancorp affiliates. Such referrals do not occur in the context of providing investment advice or providing
investment management services, and do not result in additional fees to the referred party.
We do not have direct custody of client funds or securities. The custody function is performed by other
providers such as brokers, banks, or other qualified custodians with whom our clients contract. However, there are
certain cases in which we have authority to initiate a withdrawal from a client account to pay our management fees;
we are deemed to have custody for regulatory purposes solely as a consequence of this. For example, certain of our
clients have authorized us to charge our fee against the account we manage after they have received our invoice.
The client also has instructed the custodians to disburse funds from the managed account to pay our advisory fees.
At all times, the custodial Dank maintains actual custody of those assets. We expect that clients should receive
regular statements from theircustodians which iisttheir assets, including information such as cost and market value,
and transaction activity for the period. We urge clients to review these statements carefully and to contact their
custodians if they have any concerns.
ifferers-,es Between Our Statements and Custodial Statements
The statements clients receive from us can differ from the statements clients receive from their custodian.
We advise clients to consider the records of its custodian as the official records of its assets. A common difference
involves the market value of certain securities. Since custodians may use a different pricing vendorto price securities
than we do, the prices for certain securities may vary. In addition, the accounting system used by a client's custodian
ATTACHMENT C
W.
orrre ,4DV, fort 2A
12/23/2021
may differ from our accounting systern and may employ a different reporting method. Our reports are based upon
trade date accounting with accruals, whereas some custodians report activity on a settlement date basis with or
without accruals. While both reporting methods are accurate and acceptable, clients should be aware of the
potential differences that could appear. We urge clients to compare our reports with those received from their
custodian and to contact us with any questions they may have.
We offer discretionary advisory services with respect to a client's investable assets. When a client gives us
investment discretion, we then have the authority to determine, without obtaining their specific approval, (1) overall
asset allocation, (2) the manager or sub-adviserto be utilized for the portfolio, (3) the specific securities to be bought
and sold, (4) the amount of securities to be bought and sold including overall asset allocation and (5) the broker or
dealer through which the securities are bought or sold. These decisions are subject to limitations of law and any
other restrictions in the contract with our client or in our client's investment policies. Many of our clients have their
own investment policies which usually contain restrictions on the types and credit quality of investments. We agree
contractually to follow those guidelines. In addition, many of our clients are subject to state investment statutes or
other applicable regulatory requirements which we comply with as well. Our clients typically grant us discretionary
authority in the investment advisory agreement which we enter into with them.
Because many of our clients will be invested primarily in fixed income securities, the probability of us
receiving a proxy request on behalf of a client is rare. In these situations, while we expect client accounts will rarely
hold voting securities, clients may confer upon us complete discretion to vote proxies. We also offer certain of our
clients discretionary investment advice on securities which are mutual funds (including ETFs). These mutual funds
send us proxies, which we vote on behalf of these discretionary clients if they have given us the authorization to
vote them. We also occasionally receive consent requests related to fixed -income securities. Generally we arrange
for the portfolio manager overseeing the client's investments to be responsible for snaking proxy -voting decisions.
We seek to vote proxy proposals, consents or resolutions in a manner that serves the best interests of our clients
because it is our fiduciary duty to do so. When reviewing whether a proposed action would be in our client's best
interests, we take into account the following factors;
The impact on the valuation of securities,
® The anticipated costs and benefits associated with the proposal,
® An increase or decrease in costs, particularly management fees, of investment in the securities,
® The effect on liquidity, and
® Customary industry and business practices.
In reviewing proxy issues of the type described below, we will apply the following general principles:
With respect to an election of directors, we will typically vote in favor of the management -proposed
slate of directors unless there is a proxy contest for seats on the board of a portfolio fund or other
important reasons for withholding votes for directors. We may abstain if there is insufficient
information about the nominees disclosed in the proxy statement.
Similarly, we will also generally support management's recommendation for the appointment of
auditors unless there are reasons for us to question the independence or performance of the
nominees.
ATTACHMENT C
Form ADV, Part 2A
12/23/2021
We will vote in accordance with management's recommendations on issues that are technical and
administrative in nature, such as changes to increase the numberof directors orto adopt term limits.
However, we review and vote on a ease -by -case basis any non -routine proposals which are likely to
affect the structure and operation of the portfolio company. Examples of these types of proposals
include any limitations on shareholder rights, or those which have a material economic effect on the
company.
® We will generally vote in favor of proposals that give shareholders a greater vote in the affairs of the
company and oppose any measure that seeks to limit those rights.
® We also generally support proposals promoting transparency and accountability within a company
to ensure that the directors fulfill their obligations to shareholders.
• We review proposals that result in an increase of compensation to investment advisors and other
service providers of portfolio mutual finds an a case -by -case basis, with particular emphasis an the
relative performance of the fund.
We also review proposals relating to executive compensation plans to ensure that the long -terns
interests of management and shareholders are properly aligned.
e We generally oppose proposals to give shareholders the right to vote on executive compensation.
These policies are not exhaustive due to the variety of proxy voting issues that we may be required to
consider,
With the exception of a client's shareholdings in the Pooled Funds, a conflict of interest between us, and a
client whose investments are managed by us, is unlikely. We are the investment adviser to the Pooled Funds. We
either eeeeive rio investment advisory fee from a client for managing client assets which we invest in the Pooled
Funds, or we credit to the client any investment advisory fee we receive from the Pooled Funds investment. In regard
to voting of securities in the Pooled Funds for which we are the investment adviser (or where it would appear that
we have an interest), we apply the following principles:
if the proposal relates to the matters in which the outcome does not directly affect us, vie will follow
our general voting policies.
if the proxy proposal relates to a transaction which directly affects us, or otherwise requires a case -
by -case determination by us under our voting policies, we will seek the advice either of the managers
of the client or of a qualified, independent third party, and we will submit the proxy statement to
them. We will then follow the decision of our client's management or the recommendation of the
third party in voting the proxy.
As an affiliate of U-S. Bancorp, a large, multi -service financial institution, we recognize that there are
circumstances where we have a perceived or real conflict of interest in voting the proxies of issuers or proxy
proponents (e.g., a special interest group) who are clients or potential clients of some part of the U.S, Bancorp
enterprise. Directors and officers of such companies may have personal or familial relationships with the U.S.
Bancorp enterprise and/or its employees that could give rise to potential conflicts of interest. We will vote proxies
in the best interest of our clients regardless of such real or perceived conflicts of interest. T o minimize this risk, we
will discuss conflict avoidance at least annually with our affiliates to ensure that appropriate parties understand the
actual and perceived conflicts of interest we face in voting proxies on behalf of our clients.
if we become aware of a material conflict, we will discuss with our affiliates and determine a course of
action designed to address the conflict. Such actions could include, but are not limited to: (1) obtaining instructions
from the affected clients on how to vote the proxy; (2) disclosing the conflict to the affected clients and seeking their
consent to permit us to vote the proxy; (3) abstaining from voting; (4) voting in proportion tothe other shareholders
PASSE 24
ATTACHMENT NT C
Form ADV, Part 2A
12/23/2021
to the extent this can be determined; or (5) recusing a party from all discussion or consideration of the matter, if the
material conflict is due to such person's actual or potential conflict of interest.
In addition to the above, our employees must notify the CCO of any direct, indirect or perceived improper
influence exerted by any employee, officer or director within the U,S. Bancorp enterprise about how we should vote
proxies. The CCO will investigate any such allegations and report the findings to the appropriate parties, typically the
CEO and legal personnel. if it is determined that improper influence was attempted, appropriate action will be taken,
which may include disciplinary action, notification of the appropriate senior managers within the U.S. Bancorp
enterprise, or notification of the appropriate regulatory authorities. In all cases, we will not consider any improper
influence in determining how to vote proxies and will vote in the best interests of clients.
We maintain records relating to all proxy voting for five years. We will provide information to any client
about how we voted proxies for securities in the client's account. Our Proxy Voting Policy is available upon request
by contacting us at 213 Market Street, Harrisburg, PA 17101, by calling 717-231-6200 or by emailing
c)fmarnreauest@pfm.com.
Under certain of our engagements we do not assure the responsibility for voting proxies on client
securities. The clients make arrangements to receive proxies from their custodian. if we receive a proxy and we do
not have authority to vote on it, we forward it to our client. Clients may contact the portfolio manager for their
account if they have questions about a particular solicitation.
We are not aware of any financial condition that is reasonably likely to impair our ability to carry out our
commitments and responsibilities under our client contracts.
PAGE 25
A R 9 AUHRA�--N I V
'-
�
ATTACHMENT
Form ADV, Part 213
12/23/2021
Brochure Supplement
This Brochure Supplement provides information about our investment personnel listed below
and supplements the PFM Asset Management LLC brochure. You should have received a copy
of that brochure. Please contact our Compliance Department at 717.231.6200, or contact gas by
ernailing if you did not receive our Firm's brochure or if you have
any questions about the contents of this supplement.
Marc D. Ammaturo
Philadelphia, PA
Robert H. Cheddar, CFA
Harrisburg, PA
Sandra A. Cosa
New York, NY
Joseph W. Creason
Harrisburg, PA
Michael P. Downs, CFA
Harrisburg, PA
Matthew R. Eisel, CFA
Harrisburg, PA
Alex Gurvich, PhD
Philadelphia, PA
Kyle Jones
Harrisburg, PA
Biagio Manieri, CFA, PhD
Philadelphia, PA
David J. Molin, CFA
New York, NY
Kerri Muskin
Harrisburg, PA
Brian Raubenstine
Harrisburg, PA
Jeffrey H. Rowe, CFA
Harrisburg, PA
Kenneth E. 5chiebel, CFA
Harrisburg, PA
Steven J. Schaeffer, CFA
New York, NY
James P. Sims, CFA
Harrisburg, PA
Floyd Simpson ill, CFA
Philadelphia, PA
John Spagnola
Philadelphia, PA
Surya Pisapati, CFA
Philadelphia, PA
213 Market Street 1735 Market Street, 43rd Floor
Harrisburg, PA 17101-2141 Philadelphia, PA 19103
100 Wall Street,16t" Floor
New York, NY 10005
ATTACHMENT D
fora ADV,Part 2E
12/23/2021
Educational Background and Business Experience 4
Disciplinary Information 10
Other Business Activities 12
Additional Compensation 13
Supervision 13
ATTACHMENT D
Forrn ADV, Part 2B
12/23/2021
Item 2
Item 2 of Form ADV, part 2B asks us to disclose background in education and business for our supervised
persons who formulate the various types of investment advice we offer. Most types of our investment advice
are provided to you by a team of more than five individuals. We have prepared background information for the
team members who have the most responsibility for the advice the team prepares, We have provided the
person's name, year of birth, formal education after high school, and business background (including an
identification of the specific positions held) for the preceding five years of our supervised persons. Also listed
are certain professional designations held by the supervised persona. An explanation of the minimum
qualifications required for each designation is included so you may better understand the value of the
designation.
Marc D. Anima uru Formal Education after High School Multi -Asset Ciass
Year of Birth: 1974 e Pennsylvania State University, University Park, PA, Bachelor of Management
Science, Accounting, Graduated 1996
® University of Maryland, College Park, MD, Master of Business
Administration, Finance, Graduated 2004
Ousiness Background — Previous Five Fears
e PFM Asset Management LLC, Philadelphia, PA, Managing
Director,1/2012 — Present
Robert K Cheddar, CFA Formal Education after High School o Fixed income
Year of Birth:1966 ® Susquehanna University, Selinsgrove, PA, Bachelor of Science, a Credit
Business, Graduated 1988
® Pennsylvania State University, Malvern, PA, Master of Business
Administration, Graduated 2003
Business Background — Previous Five Years
r PFM Asset Management LLC, Harrisburg, PA, Managing Director,
1/2011— Present
Certifications
Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Santora A. Costa Formal Education after High School a Stable Value
Year of Birth:1976 ® Post University, Waterbury, CT, Bachelor of Science Finance,
Graduated 1998
Business Background — Previous Five Years
® PFM Asset Management LLC, New York, NY, Portfolio Manager,
Stable Value,12/2017 — Present
® Fiduciary Capital Management, Inc., Senior Vice President &
Portfolio Manager, 5/1998 — 12/2017
ATTACHMENT
Form A®V, Part 28
12/23/2021
Joseph W. Creason, CFA Formal Education after E-iigh Sh9 ! ® Fixed Income
Year of Birth:1976 ® Shippensburg University, Shippensburg, PA, Bachelor of ® Credit
Science, Finance, and Bachelor of Science, Economics,
Graduated 2000
Business Background — Previous Five dears
PFM Asset Management LLC, Harrisburg, PA, Portfolio
Manager, 07/2009—1/2017; Director/Sr. Portfolio Manager,
2/2017 - Present
Certifications
Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this item.
Michael P. Downs, CFA Forman Education after HiA.Srho ol Fixed Income
Year of Birth:1964 ® the Ohio State University, Columbus, OH, Bachelor of
Science, Finance and Accounting, Graduated 1987
@ the Ohio State University, Columbus, OH, Master of Business
Administration, Finance, Graduated 1991
Business Background — Previous Five Years
® PFM Asset Management LLC, Harrisburg, PA, Portfolio
Manager, 4/2014 — Present
Certifications
® Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Matthew R. Eisel, CFA Formal Education after High School Structured Products
Year of Birth: 1983 ® University of South Carolina, Columbia, SC, Bachelor of
Science, Entrepreneurial Management, Finance, and Risk
Management & Insurance, Graduated 2005
Business Background — Previous Five years
PFM Asset Management LLC, Harrisburg, PA, Managing
Director, 2/2015 — Present
Certifications
Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
PAGE 5
ATTACHMENT
Form ADV, Part 213
12/23/2021
Alex Gurvich, PhD Formal Education after High School e Multi -Asset Class
Year of Birth: 1964 ® University of Chicago, Chicago, IL, Bachelor of Arts, Physics, Management
Graduated 1986
a INSEAD, Fontainebleau, France, Master of Business
Administration, Graduated 1993
1D New York University, New York, NY, Master of Science, Financial
Engineering, Graduated 2009
Stevens Institute of Technology, Hoboken, NJ, Doctor of
Philosophy, Financial Engineering, Graduated 2020
Business Background — Previous Five Years
e PFM Asset Management LLC, Philadelphia, PA, Director of
Research, 6/2018 — Present
® Commonfund Asset Management, Wilton, CT, Director Asset
Allocation and Quantitative Research, 12/2014 — 5/2017
Kyle Jones Formal Education after High School a Fixed Income
Year of Birth: 1981 0 Dillard University, New Orleans, LA, Bachelor of Arts, Business o Credit
Management, Graduated 2003
* University of Chicago, Chicago, IL, Master of Business
Administration, Finance, Graduated 2006
Business Background — Previous Five Year
® PFM Asset Management LLC, Harrisburg, PA, Senior Portfolio
Strategist, 9/2016—1/2019, Managing Director and Co -Plead of
Portfolio Strategies, 2/2019 -- Present
Biagio Mnnlerl, Ph.D., CFA Formal Education after High School ® Multi -Asset Class
Year of Birth:1960 ® City College of the City University of New York, New York, NY, Management
Bachelor of Science, Electrical Engineering, Graduated 1983
o Columbia University, New York, NY, Doctor of Philosophy,
International Relairions, Graduated 1995
Business Background —Previous Five Veers
PFM Asset Management LLC, Philadelphia, PA, Global Chief
Multi -Asset Class Strategist; 6/2018 — Present; Managing
Director, 2/2017 — Present; Director of Research 1/2012 —
6/2018
Certifications
e Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
PAGE 6
f
David J. Molin, CFA
Year of Birth:1970
ATTACHMENT
Form ADV, Pact 28
12/23/2021
Formal Education after High School Stable Value
® Bentley University, Waltham, MA, Bachelor of Science Finance,
Graduated 1992
Business Background -- Previous Five Years
® PFM Asset Management LLC, New York, NY, Director of
Research, Stable Value,12/2017 — Present
Fiduciary Capital Management, Inc., Senior Vice President and
(director of Research and Enterprise Risk Management, 6/2000 —
12/2017
Certifications
® Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Kerr! L. muskin Formpi Educafoon after High School a Fixed Income
Year of Birth:1983 Pennsylvania State University, Harrisburg, PA, Bachelor of o Credit
Science, Business Management, Graduated 2006
Business Background — Previous Five Years
® PFM Asset Management LLC, Harrisburg, PA, Portfolio
Manager, 7/2012—1/2017; Director/Sr. Portfolio Manager,
2/2017—Present
Surya Pisapafi, CFA Formal Education after High School ® Multi -Asset Class
Year of Birth 1984 ® Jawaharlal Nehru Technological University, Hyderabad, Management
Telangana, India, Bachelors in Mechanical Engineering,
Graduated 2005
* Indian Institute of Management, Indore, Madhya Pradesh,
India, MBA (Finance), Graduated 2007
® Villanova University, Radnor, PA, MS in Finance, Graduated
2012
business Background — Previous Five Years
PFM Asset Management LLC, Philadelphia, PA, Director of
Global Equities a Portfolio Strategist, 1/2021—Present;
Manager, Research & Portfolio Strategy, 1/2019--12/2020;
Senior Research Analyst 5/2016--12/2015
Certifications
Chartered Frinanciai Anaiyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Brian Raubenstine Formal Education after High School r Fixed Income
Year of Birth: 19o3 Pennsylvania State University, University Park, PA, Bachelor ® Credit
of Science, Finance, and a Minor in History, Graduated 2006
Business Background — Previous Fire Years
PFM Asset Management LLC, Harrisburg, PA, Senior
Portfolio Manager, 9/2008-1/2021; Director, 2/2021--
Present
PAGE 7
ATTACHMENT '
F®[iri ADV, Part 213
12/23/2021
Jeffrey H. Rowe, CFA Formal EdeicatiOn after High School a Fixed Income
Year of Birth:1982 Pennsylvania State University, University Park, PA, Bachelor a Credit
of Science, Finance, and a Minor in Supply Chain and
information Systems Technology, graduated 2005
Business Background — Previous Five'�ear5
PFM Asset Management LLC, Harrisburg, PA, Portfolio
Manager, 5/2010—1/2017; Managing Director, 2/2017—
Present
Certifications
Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Steven J. Schaefer, CFA
Formal Education after High School
Stable Value
Year of Birth: 1960
® Temple University, Philadelphia, PA, Bachelor of Business
Administration, Marketing, graduated 1982
Michigan State University, East Lansing, MI, Master of
Business Administration, Finance, Graduated 1984
Business Background — Previous Five Years
® PFM Asset Management LLC, New York, NY, Director Stable
Value,10/2019 - Present
® Stable Value Solutions LLC, West Hartford, CT, Owner &
Founder,l0/2018 - 9/2019
® MUFG Americas, New York, NY, Director Stable Value,
4/2012 - 2/2018
Certifications
o Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
Kr;z nneth E. SchWi el, CPA
Formal Education alter High School
Fixed Income
Year of Birth:1959
® University of Michigan, Ann Arbor, MI, Bachelor of Arts,
® Multi -Asset Class
Mathematics & Computer Science, Graduated 1981
Management
Business Background — Previous Five Years
Structured
o PFM Asset Management LLC, Harrisburg, PA, Managing Director
Products
and Co-head of Portfolio Strategies, 1/1997—11/2021; Chief
® Credit
Investment Officer,12/2021-Present
Certifications
e Chartered Financial Analyst. An explanation of the minimum
qualifications required for this designation is provided at the
conclusion of this Item.
ATTACHMENT
Frsrerr ASV, Part 213
/23/2021
.. :!'.
_... .. _.t.�?.. .. .. t .fit ..-.
Ja€yes P. Sims, CFA
Formal EducationAfter Ili h School ® Fixed Income
Year of Birth: 1970
9 Georgia State University, Atlanta, GA, Bachelor of ® Credit
Business Administration, Finance, Graduated 1993
® Georgia State University, Atlanta, GA, Master of
Science, Finance, Graduated 1997
Business Background — Previous Five Years
* PFM Asset Management LLC, Harrisburg, PA, Managing
Director, 10/2021 — Present; Director/Senior Portfolio
Manager, 2/2015—10/2021
Certifications
® Chartered Financial Analyst. An explanation of the
minimum qualifications required for this designation is
provided at the conclusion of this Item
Floyd Simpson III, CFA
Formal Education after High School Multi -Asset Class
Year of Birth: 1950
-z Truman State University, Kirksville, MCA, Bachelor of Management
Business Administration, Finance, Graduated 2002
* Fie Paul University, Chicago, IL, Master of Business
Administration, Financial Analysis and Strategy, Execution,
and Valuation, Graduated 2005
® Northwestern University, Evanston, IL, School of
Continuing Studies -Financial Planning, Completed 2007
Business Background _-_Previous Five Years
* PFM Asset Management LLC, Philadelphia, PA, Senior
Managing Consultant,10/2019 — Present
* Xponance (FIS Group), Philadelphia, PA, Investment Officer,
9/2010 — 9/2019
Certifications
4 Chartered Financial Analyst. An explanation of the
minimum qualifications required for this designation is
provided at the conclusion of this Item.
John S. 5pagnola Formal Education after High School ® Multi -Asset Class
Year of Birth: 1957 e Yale University, New Haven, CT, Bachelor of Arts, Management
Political Science, Graduated 1950
Business Bacl ground — Previous Five Years
Q PFM Asset Management LLC, Philadelphia, PA,
Managing Director,1/2003 — Present
ATTACHMENT
Fora ADV, Past 2B
/23'2®21
This Summary should assist you with evaluating the professional designations and the minimum requirements that
an individual Wrest meet in order to hold this designation.
CFA — Chartered Financial Analyst
This designation is issued by the CFA institute (). The requirements to become a CFA
charterholder include: 1) Obtaining a bachelor's degree or equivalent from a 4-year college/university or meeting a
combination of higher education and qualified professional work requirements; 2) Passing the three levels of CFA
exams, each of which involves approximately 300 hours of self -study; 3) Having at least 4,000 hours of relevant
investment -related work experience, completed in a minimum of 36 months; and 4) Abiding by the CFA Code of
Ethics. Continuing education is encouraged but not required.
CAIA,- Chartered Alternative Investment Analyst
This designation is issued by the Chartered Alternative Investment Analyst Association (err+rvw.caia.org). In order to
participate in the CAIA program, a candidate must: 1) Hold a bachelor's degree or the equivalent, and have more
than one year of professional experience (defined as full-time employment in a professional capacity within the
regulatory, banking, financial, or related field); or 2) Have at least four years of professional experience. The
educational requirements that must be completed involve 200 hours of study for each of the 2 levels, and there are
2 course exams. There is a continuing education requirement every three years.
CRPC -- Chartered Retirement Planning Counselor
This designation is awarded by The College for Financial Planning (Lv�,nr.cff .edu). In order to participate in the CRPC
program individuals must have completed a course of study of investments, insurance, tax, retirement and estate
planning issues. The program is designed for 120-150 hours of self -study. The program is self -paced and must be
completed in one year from enrollment. Individuals are required to pass an online, timed and proctored end -of -
course examination with a score of 70% of higher. Credentials must be renewed every two years by completing 16
hours of continuing education.
QPFC —Qualified Plaza Financial Consultant
This designation is the professional credential for financial professionals who sell, advise, market or support qualified
retirement plans. QPFC is not an entry-level credential. A minimum of two years' experience in retirement plan
related matters is required along with completion of American Society of Pension Professionals & Actuaries' QPA
examination series which includes completion of the Plan Financial Consulting Part 1 and Part 2. A candidate must
meet one of the following additional requirements: Series 6, 7 or 65 license issued by the Financial Industry
Regulatory Authority and two letters of reference demonstrating at least two years of retirement plan related
experience; or state -life or annuity insurance license and two letters of reference demonstrating at feast two years
of retirement plan related experience; or Investment Advisor Representative or Registered Investment Advisor
credential and two letters of reference demonstrating at least two years of retirement plan related experience; or
two letter of reference demonstrating at least three years of retirement plan experience. Credentialed members
must acquire 40 hours of Continuing Education credits (2 of these must he Ethics) in a two-year cycle as well as
renew ASPPA membership annually to retain credentials.
PAGE 10
ATTACHMENT
Form ADV, Part 2B
12/23/2021
Item 3
ffthere are legal ordiselpfinaty events material to your evaluatlon ofItem 3 requIrw r
to d1solose all Maier/a/facts regardingthose events.
A A crPninal or vivIl a.- loan in a do e tf P f0feld"I Or MlIftery couit of con, Iq which the
satarvlscda"son
1, was convicted of, or pled guilty or nolo contenderrr ("no contest") to (a) any felony; (b) a misdemeanor
that involved investments or an investment -related business, fraud, false ,statements or omissions,
wrongful tailing of property, bribery, perjury, forgery, counterfeftfrrg, or extortion; or (c) a cons;'Wracy
to commit any of these offenses;
2. is the named subject of a pending crinninal proceeding that involves an investment-raiaied business,
fraud, false statements or omissions, wrongful taking of property, bribery, perfuy, forgem
counterfeiting, extortion, or a conspiracy to commit any of these offenses;
3. Yvas found to have been involved in a violation of an investment -related statute or regula=ion; or
4. was the subject of any order, judgment, or decree permanently or temporarily enjoining, or otherwise
limiting, the supervised person from engaging In any investment -related activity, or from violating any
investment -related statute, rule, or carder.
Not applicable. None of the personnel listed in item 2 above has ever been subject to any such criminal or civil action.
B An adwinIsMaflve proceeding before the SEC, any other federal fe ulatory agency, any scuts regulatory
ag-ancy, Gr a y foreign t3narrolal regulatory awhorlty In whlch Ma supervizwFer5on,
1 was found to have caused an Investiment-related .business to lose its authorization to do business; or
2. was found to have been involved in a violation of an investment -related statute or regulation and eras
the subject of an carder by the agency or authority
(a) denying, suspending, or revolting the authorization of the .supervised person to act in an
investment -related business;
(b) barring or suspending the supervised person's association withan investment -relaxed business;
(c) otherwise sighificantly limiting the supervised person's Investment -related activitles; or
(d) imposing a civil money penalty of more than $2,500 on the superrispd Person.
Not applicable. None of the personnel fisted in item 2 above has ever been subject to any such administrative
proweding
G A eslf ragaviWofy organlzatlan MO) lrro eedingira willch the s���rvlsed, rsi�ra
1. was found to have caused an investment -related business to lose its authorization to do business; or
2. was found to have been involved in a violation of the SRO's rules and vvas: (i) barred or•suspended from
membership or from association with other members or was expelled from membership; (ii) otherwise
significantly 11n7lea'd fro Yn invesbmentrelated activities; or (cif) fired ei7o a titan $2,5010.
Not applicable. None of the personnel listed in item 2 above has ever been subject to any such proceeding by an
SRO.
D. Any other proceedingr In wAlch a profaSsional a ain ont, de-5ignadon, or 11conse of she supamLeed parson
w 're Vokad arsus rlded Der= e° of vlerladon ofrcales selatin" toProfessional conduct, if the supervised
gemon rfgrred (or offiatnT5e rallragaishad .his area m ent, designation, or lloerrse) In ar dolpatlon of such
a pro a in (and the adWer know®, or should have kno era, of such reslgnatlon or relin€i�isi�rraerrt),
dlsolose
the er'en
Not applicable. None of the personnel listed in item 2 above has ever been subject to any such suspension or
revocation.
PAGE 11
ATTACHMENT
Fora AD1l, Part 28
12/23/2021
A. ff the smuervisadpwaan is zotfvaly engaged In anyinvestmankelatc-dbugIness or occupation, Includingif
tfes�eels,rsota raitr�, orhas an a broker, dealer, rastared
rawsse7faffi,a of a brokar-dealar, fidures oom Isslart morciwnf ("F;!N9, camnTedIfy 1 opwato °
(WO '',, con7modiry tradIng advlsor it CT �), or an assoclatod pxsoft of an FCM, CFO, or OTA VIR are
requIrad to dkolose titl, fact and d crlbe rite bfisfn re®atle nsb1p, trey, bwfwasn the arrvlsOtyb sIness
and tl70 other br-Tlrie-Es
We have an affiliate, PFM Fund Distributors, Inc. ("PFMFD"), which is a broker -dealer registered under the Securities
Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority ("FINRA"). PFMFD serves as
exclusive distributor of shares of a registered investment company and local government investment pools (Pooled
Funds) for which we serve as investment adviser and/or administrator and we receive fees from this arrangement.
Messrs. Armnaturo, Eisel, Jones, Schiebel, Simpson and Spagnola are registered representatives of PFMFD.
If a relationship between the advisory Business and the supervised person's other financial industry
activities creates a material conflict of interest with clients, describe the nature of the conflict and
generally how you address it -
If a client invests in a Pooled Fund, we disclose this relationship to the client through our firm brochure (the
Form ADV, Part 2A) and the offering statement for the Pooled Fund. in addition, if we have an investment
advisory arrangement with a client to manage a separate account, our investment advisory agreement with the
client provides that if we invest client assets in a Pooled Fund, we will not take these assets into account for
purposes of calculating our fees for managing the separate account or we will credit investment advisory fees
we earn on the client's Pooled Fund investment against investment advisory fees due us related to the client's
separately managed account that holds assets in the Pooled Fund.
® if the supervised person receives commissions, Bonuses or lather can, pensation ,basest on the sale of
securities or other investment products, including as a broker -dealer or registered representative, ,and
including distribution or service ("trail") fees from the sale of mutual farads, disclose this fact. If this
compensation is not cash, explain what type of compensation the supervised person receives, Explain
that bass practice gyres the supervised person an incentive to recommend investrnem products ,based
on the compensation received, rather than on the client's creeds.
PFMFD registered representatives listed in this Brochure Supplement do not receive commissions, bonuses or
other compensation directly based on the sale of shares in the Pooled Funds.
B. If the Star Wredporsor? blielness tarOccupado'l for vomrtsatl s? riot dISCIlwad
in response to Item 4A, above, and the OffieTbUSIM55 Rotrarlty Or ZctivrtPes Pr vl4f8 a sUbsWfltlal source of
& eA rt nod a`Y�#." de 1G` V V Y9-- 015'
S61k"'r �d69�'d��dd �F�'93Ub8 � ddfir�'PSiL FdF 153i'48did e8 WSdde;��OffIiPG;B ]'7886F�f1d8 �+d 61d� ,�s`���d ���a:�id y�::lu�'rd � SPir sw rsma0
this fact and describe fire rtatrrre of fhar b�,sltte If the otj7or busInew acdv&W impn ent less than 10
rcertt flame and hwome, you may pr* m a that the
'Y ar6 fi Ots"lrstan tial
None of our supervised persons described in this Brochure Supplement engages in any other business or occupation
which provides a substantial source of income or involves a substantial amount of time.
PAGE 12
ATTACHMENT
Form ADV, Part 213
Item
ff SOa e0ne W130 lg not a offent pmyldas an evono lc benefit to the supaMsed person for pa'raviding advlSoF
services, 9-orm-refly desert the arrangemant For jourposw of th/s Rases, economic beflefft IVOIU65 i09
shards and ether prize4 but do not lalofude the -rap_-fs- any R regular Bolaq AnI Dorms test as ftse4at
1e,95t 11) part, 01) the number or amount of gafe'S, GTlene referrals, or nowarcounis spould be ��n�1��9 e an
evonomfe bonaflt, but otPar re Ular bonvsas eliould not
We do not have any arrangements in which someone other than a client provides any economic benefit to our
supervised persons for providing advisory services.
Etas 16
plain howyou C "Penr .se the supervisedwrson, fi7cludInghowyou monflor the anry1va the sgfaenlsed, ofl
pro yides to cl/enTs Provide tee name, title and telephone nmrrt er of fhapomon'respoaRlble forsuparvfsingthe
.50,0eaws?ed rlon's dvison/ actIVIVes On behalf of your firm
Kenneth Schiebel as Chief investment Officer of PFM Asset Management LLC oversees or participates in meetings of
the committees which develop investment strategies for the various types of investment advice we offer to our
clients. The strategies and advice developed by these committees are then marketed to our clients and prospects by
the managing directors of our firm and our additional personnel. As -the Chief Investment officer of the firm, Mr.
Schiebel meets regularly with the other members of senior management, the Firm's Chief Compliance Officer, and
the Board of Directors and officers of the Firm's parent company. Mr. Schiebel reports to Eric Thole, CEO and
President of PFM Asset Management LLC (PFMAM). Mr. Thole is also the CEO and President of U.S. Bancorp Asset
Management (USBAM). Effective December 7, 2021, PFMAM became a wholly -owned subsidiary of USBAM. Mr.
Schiebel may be reached at 717.231.5215.
PAGE 13