February 21, 2019
10:00 AM – 11:30 AM
UNDERSTANDING CASH FLOW
AND CASH FLOW FORECASTING
CarlosOblites
SeniorVicePresident,
PortfolioStrategist
GennyLynkiewicz,CFA
VicePresident,
PortfolioManager
CashFlowsWebinar– CashFlowAnalysis
CHANDLER ASSET MANAGEMENT | 800.317.4747 | chandlerasset.com
February21,2019
CarlosOblites
SeniorVicePresident,
PortfolioStrategist
ChandlerAssetManagement
Do your investments meet cash needs?
How Much Liquidity Is Enough?
$35
$20
$10
$5
$1
$8
$16
$19
$25
$10
$0
$5
$10
$15
$20
$25
$30
$35
$40
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments CashOutflows
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
Are your investments optimized for return?
How Much Liquidity Is Enough?
$35
$20
$10
$5
$1
$8
$16
$19
$25
$10
$0
$5
$10
$15
$20
$25
$30
$35
$40
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments CashOutflows
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
How Much Liquidity Is Enough?
Costofinsufficientliquidity
• Delayed payments
• Additional borrowing costs
• Additional transaction costs
• Negative headlines, both internally and externally
Costofexcessliquidity
• Lost investment income
• Bad press
ChandlerAssetManagement
How Much Liquidity Is Enough?
MostCrucialQuestions:
• Am I meeting my Code‐mandated goal of safety and liquidity?
• Will I have the cash available when I need it?
• Am I earning as much as I could?
ChandlerAssetManagement
The Cost of Too Much Liquidity
SelectFixed‐IncomeHypotheticalReturnsByDuration
Index Duration
10YR
Annualized
Return
CumulativeValue
of$100Million
Additional
ValueOver
LAIF
LocalAgencyInvestmentFund 0.57Years 0.680% $107,011,898 N/A
ICEBAML1YRTreasuryIndex 0.98Years 0.619% $106,365,300 ($646,598)
ICEBAML1‐3YRTreasuryIndex 1.87Years 0.951% $109,927,475 $2,915,577
ICEBAML1‐5YRTreasuryIndex 2.62Years 1.332% $114,147,432 $7,135,534
ICEBAML3‐5YRTreasuryIndex 3.76Years 1.916% $120,899,276 $13,887,378
Source: Bloomberg, ICE BAML Indices and LAIF. Data as of December 31, 2018. Performance for ICE BAML benchmarks based on a $100 million
portfolio, relative to LAIF. Performance shown is hypothetical and not based on an actual client's account. LAIF returns include an administrative
fee charged to investors by the California State Treasurer. LAIF duration estimated based on average maturity in days, as of December 31, 2018,
divided by 365 days. Past performance is not a guarantee of future results. Please see disclosures at the end of this presentation for further details.
ChandlerAssetManagement
Why Cash Flow Analysis?
“The analysis is intended to measure and assess the government’s ability to
meet its needs, to negate the need for any short‐term borrowing or
liquidation of long‐term investments before maturity, and to identify any
idle funds, and the duration of that idle period, to determine whether those
funds could be invested over that time frame. Cash flow analysis is therefore
an essential tool for informed management decision making.”
‐ GFOABestPractice:“CashFlowAnalysis”
Source: GFOA
Question 1
Liquidity has several definitions. Which is most applicable for our
cash flow discussion?
a) The investment has a sizeable secondary market
b) The investment maturity coincides with cash needs
c) The investment has high credit quality and is widely held
ChandlerAssetManagement
What is Cash Flow Analysis?
Projectionofanticipatedcashreceipts
Projectionofanticipatedcashdisbursements
Itconsidersallfunds
Itconsiderstimingofreceiptsandexpenses
Tocreateanestimateofinvestablecashbalances,categorizeyourfunds:
• Funds that need to be kept liquid = Liquidity Funds
• Funds available to invest longer = Core Funds
ChandlerAssetManagement
What Cash Flow Analysis Is Not
“Cash”istheoperativewordin“CashFlowForecasting”
• Itisnot accrualsorbudgetedfunds
• Only cashisspendableorinvestable!
ChandlerAssetManagement
Identify Liquid & Reserve Balances
Totalbalancesaretrending
higher
Butbalancesfluctuate
throughouttheyear
The“LiquidBalances"are
establishedtomeetcash
needs
The“Core/ReserveBalances"
aregenerallystableand
availableforlonger‐term
morediversifiedinvesting
0
1
2
3
4
5
6
$ millions
Month
Core/ReserveBalances
LiquidBalances
Entity’sBalances
5YearPeriod
ChandlerAssetManagement
Objectives of Cash Flow Forecasting
Ensuresufficientliquidityfor6‐12monthdisbursements
Improveinvestmentearningsby:
• Matchingsourcesandusesoffunds
• Investingreserve/corefundslonger‐termandmorediversified
• Managinginvestmentrisks
o Liquidityrisk
o Marketrisk
Identifyshort‐termcashdeficits
Warnofimpendingbudgetproblems
ChandlerAssetManagement
Annual Cash Flow Forecasts
Estimatesmonthlycashposition
Determinescashavailableforinvestmentsofmorethan30days
Providesausefulmonthlyoverviewforinvestmentdecision‐making
Preparedforthisfiscalyearandnextonetothreefiscalyears
ChandlerAssetManagement
Creating Annual Cash Flow Forecast
Beginningbalanceofcashandinvestments
Monthlyrevenueprojections
Monthlyexpenditureprojections
Projectednetchange
Projectedcumulativebalanceofcashandinvestments
Scheduleofcurrentinvestmentsandcouponpayments
ChandlerAssetManagement
Identify Revenues and Expenditures
MajorRevenues
• Propertytax
• Salesandusetax
• Userfees
• Sharedrevenues
• Non‐recurring
o Bondproceeds
• Other
MajorExpenditures
• Payrollandbenefits
• Operatingexpenses
• Debtservice
• Capitalprojects
o Draw‐downschedule
• Non‐recurring
• Other
ChandlerAssetManagement
Sources of Information
Historicaldatafromgeneralledger
Historicaldatafrombankandpoolstatements
Currentyearbudget
Capitalprojectspendingprojections
Scheduleofinvestmentmaturitiesandcouponpayments
ChandlerAssetManagement
Annual Cash Flow ‐ Example
Beg.Balance Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18
LiquidFundBalance 95,542,961.00 94,422,259.00 93,301,557.00 92,180,855.00 91,060,153.00 89,939,451.00
Inflow
SalesTaxCollections 3,516,116 3,516,116 3,516,116 3,516,116 3,516,116
PropertyTaxCollections 10,507,259 10,507,259 10,507,259 10,507,259 10,507,259
Intergovernmental 10,264,623 10,264,623 10,264,623 10,264,623 10,264,623
OtherRevenues 7,919,282 7,919,282 7,919,282 7,919,282 7,919,282
Outflows
Personnel (12,778,319) (12,778,319) (12,778,319) (12,778,319) (12,778,319)
Operating&Maintenance (1,199,030) (1,199,030) (1,199,030) (1,199,030) (1,199,030)
ChargesforServices (1,597,717) (1,597,717) (1,597,717) (1,597,717) (1,597,717)
DebtService (1,093,706) (1,093,706) (1,093,706) (1,093,706) (1,093,706)
OtherExpenses (6,659,210) (6,659,210) (6,659,210) (6,659,210) (6,659,210)
Actual/ProjectedNetChange (1,120,702) (1,120,702) (1,120,702) (1,120,702) (1,120,702)
ProjectedLiquidBalance 94,422,259 93,301,557 92,180,855 91,060,153 89,939,451
ProjectedInvestedBalance 141,565,000 141,565,000 141,565,000 141,565,000 141,565,000
TotalProjectedBalance 235,987,259 234,866,557 233,745,855 232,625,153 231,504,451
ActualLiquidBalance 85,562,465 203,231,573 124,216,038 201,625,430 150,181,434
ActualInvestedBalance 141,565,000 146,645,000 146,645,000 146,645,000 149,645,000
TotalActualBalance 227,127,465 349,876,573 270,861,038 348,270,430 299,826,434
Difference (8,859,794) 115,010,016 37,115,183 115,645,277 68,321,983
Thissampleillustrationisbeingprovidedtodemonstratethetoolsonhowweanalyzecashbalances.Pleaserefertodisclosures attheendofthispresentation.
ChandlerAssetManagement
Funds Balance Cash Flow
Month BegBalance CashInflows CashOutflows NetChange
January‐16 95,542,961 243,572,384 (253,257,765) (9,685,381)
February‐16 85,857,580 143,962,217 (26,607,427) 117,354,790
March‐16 203,212,370 41,584,603 (119,098,784) (77,514,181)
April‐16 125,698,189 94,526,488 (17,116,990) 77,409,498
May‐16 203,107,687 33,277,738 (84,727,349) (51,449,611)
June‐16 151,658,076 102,278,132 (76,404,216) 25,873,916
July‐16 177,531,992 2,747,874 (36,416,262) (33,668,388)
August‐16 143,863,604 32,888,804 (39,493,932) (6,605,128)
September‐16 137,258,476 251,833,487 (251,697,780) 135,707
October‐16 137,394,183 242,834,825 (242,187,729) 647,096
November‐16 138,041,279 232,485,117 (239,719,807) (7,234,690)
LowBalance $85,857,580
HighBalance $259,994,231
Prior12Months $155,641,677
Prior36Months $159,324,198
ForPeriod
ConsolidatedCashFlow
FundBalance
AverageBalance
Thissampleillustrationisbeingprovidedtodemonstratethetoolsonhowweanalyzecashbalances.Pleaserefertodisclosures attheendofthispresentation.
ChandlerAssetManagement
Jul‐14 Oct‐14 Jan‐15 Apr‐15 Jul‐15 Oct‐15 Jan‐16 Apr‐16 Jul‐16 Oct‐16 Jan‐17 Apr‐17
SampleInvestedAssets
FY2015—FY2017
ActualPortfolioof
Securities
MinimumNeededtoCover
Expenditures
FundsNotNeeded
Immediately
Excess
Liquidity
ThatCan
Be
Invested
in
Securities
Graphing Balances Over Time
Identifypastgrowthrates
Observeseasonalchangesinbalances
Pinpointhowmuchisneededliquidandhowmuchcanbeinvestedinaportfolio
ofsecurities
Thissampleillustrationisbeingprovidedtodemonstratethetoolsonhowweanalyzecashbalances.Pleaserefertodisclosures attheendofthispresentation.
Millions($)
ChandlerAssetManagement
Statistical Forecast of Future Balances
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Jan‐15 Jul‐15 Jan‐16 Jul‐16 Jan‐17 Jul‐17 Jan‐18 Jul‐18 Jan‐19 Jul‐19 Jan‐20 Jul‐20
Millions
HistoricalBalances
ForecastBalances
ForecastofFuture
TotalBalance
Thissampleillustrationisbeingprovidedtodemonstratethetoolsonhowweanalyzecashbalances.Pleaserefertodisclosures attheendofthispresentation.
ChandlerAssetManagement
Challenges to Developing Forecasts
Systems
• Limitationsofcomputersystemsforhistoricaldataordata
management
PhysicalStructure
• Locationsofpeople
Political
• Electedofficialsagenda
Inter‐departmentalCommunications
• Departmentsnotunderstandingimportanceofinformation
ChandlerAssetManagement
Review and Maintain Cash Flow Forecast
Compareactualversusforecast
Identifyreasonsforvariances
Adjustassumptionsifwarranted
Followupwithdepartmentheadsoncapitalprojectslippage
Updatedatabaseforaccuratefutureprojection
Retaindocumentationforfuturereference
ChandlerAssetManagement
How Do I Invest It?
Youmusttakeintoaccount:
• Cashflowneeds
• CaliforniaGovernmentCode
• Investmentpolicy
• Investmentobjectives
• Currentmarketconditions
ChandlerAssetManagement
In Summary
Determinehowmuchtokeepliquid‐ therestiscorefunds
Checkinwithallofyoursources
• Revenuesandexpenditureshistoricalandtodate
• Debtpayments
• EverchangingCIPschedules
Reduceunnecessaryliquidity
Makesureyouemphasizesafetyandcorrectliquiditylevelbefore
optimizing
Questions2,3,&4
ChandlerAssetManagement
Sample Cash Flow Projection
4,600,000
4,700,000
4,800,000
4,900,000
5,000,000
5,100,000
5,200,000
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
Aninitialviewofthechartshowsthat
a) Onaverage,balanceshavebeenfalling
b) Onaverage,balanceshavebeengrowing
c) Balanceshaveperiodicallyfluctuatedby
about$500,000
ChandlerAssetManagement
Sample Cash Flow Projection
4,600,000
4,700,000
4,800,000
4,900,000
5,000,000
5,100,000
5,200,000
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
Thepublicagencythatputthischarttogethercancounton
a) Balancesgrowingforever
b) Atleast$4.7millionincorefundsthatwillnotlikelybespent
c) Nodiscernableseasonalitytotheflowsoffunds
ChandlerAssetManagement
Sample Cash Flow Projection
4,600,000
4,700,000
4,800,000
4,900,000
5,000,000
5,100,000
5,200,000
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
Tomakethisprojectionmoreaccurate,theagencycan
a) Continueprojectinggrowthoffundsathistoricalgrowth
b) Lowerthebalancesby10%tocreateacushion
c) Compareactualvs.projectedreceipts/expensesandadjust
CashFlowsWebinar– InvestingCashFlows
CHANDLER ASSET MANAGEMENT | 800.317.4747 | chandlerasset.com
February21,2019
GennyLynkiewicz,CFA
VicePresident,
PortfolioManager
ChandlerAssetManagement
Meet Your Code‐Mandated Objectives
Your
Investment
Program
Protect
Principal
Provide
liquidityto
coverboth
ongoingand
unexpected
cashneeds
Optimize
earnings
while
providing
safetyand
liquidity
ChandlerAssetManagement
Positioningsecuritiesalongtheyieldcurveto
capturevalueacrossmaturities
Implementation
Portfolio
Duration
Sector
Allocation
Term
Structure
Credit
Quality
Constrainingportfoliodurationrelativetoabenchmark
Strategicallocationstokeysectors,withvalue‐basedrotation
SelectingsecuritiesthatmeettherequirementsofCode,andare
anappropriateriskforpublicfunds
Based on cash flow analysis, California Government Code, and the Investment
policy, these decisions must be made:
Security
Selection
Selectingbondsthatareundervaluedandofferthegreatest
potentialforrisk‐adjustedreturn
ChandlerAssetManagement
Structuring General Funds
LocalGovernmentInvestmentPool
(LGIP)
Matchingmaturitiestoknown
expenditures
• Moneymarketinstruments
o AgencyDiscountNotes
o CommercialPaper
o CertificatesofDeposit
Targetgenerallytoahigherduration
toenhancethepotentialtoincrease
earnings
• InvestinsecuritiesallowedbyCode:
o U.S.TreasurySecurities
o U.S.AgencySecurities
o High‐GradeCredit
TotalPortfolio
CoreFundsLiquidityFunds
ChandlerAssetManagement
Question 1 ‐ Investing
Approximatelywhatpercentageofyourpublicagency’sassetsare
liquidvs.core?
a) 25%liquid
b) 50%liquid
c) 75%liquid
d) 100%liquid
e) Notsure
ChandlerAssetManagement
Structuring Your Maturities
Havingselectedatargetduration,buildaportfoliostructurethatwillcapitalize
onmarketconditions
• Liquidity
o LGIPs
o MoneyFunds
o SMAs
• Matchcashflows
o BondLadder
o Bulletstructure
o Barbellstructure
• Totalreturnstrategy
ChandlerAssetManagement
BankAccounts
LGIPs
MoneyMarketFunds
Separately‐ManagedAccounts
Liquidity
ChandlerAssetManagement
Matching Cash Flows Maturity Structure
$8
$20
$10
$5
$10
$8
$20
$10
$5
$10
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments CashOutflows
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
Laddered Maturity Structure
$16 $16 $16 $16
$0
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
Bullet Maturity Structure
$8
$9
$18
$10
$6
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
Barbell Maturity Structure
$12
$9
$6 $6
$9
$0
$2
$4
$6
$8
$10
$12
$14
Overnight 1Day‐1Year 1‐2Years 2‐3Years 3‐5Years
Millions
Investments
Thisisshownasanexampleforillustrativepurposesonly.Pleaserefertoimportantdisclosuresattheendofthispresentation.
ChandlerAssetManagement
PeriodEndingDecember31,2018
Annual Benchmark Study
Source:ICEBAMLIndices.PleaseseeBenchmarkdisclosures;Pastperformanceisnotindicativeoffutureresults.Indexreturnsassumereinvestmentofalldistributionsanddonotreflectfeesor
expenses.Itisnotpossibletoinvestdirectlyinanindex.
ICEBAML1‐3Yr US
Treasury/AgencyIndex
ICEBAML1‐5Yr US
Treasury/AgencyIndex
ICEBAML1‐10Yr US
Treasury/AgencyIndex
0‐6months
6‐12months
1‐3years 100.00% 61.09% 43.81%
3‐5years 38.91% 27.90%
5‐10years 28.29%
Treasury 94.92% 96.00% 96.78%
Agency 5.08% 4.00% 3.22%
Corporate
ModifiedDuration12/31/2018 1.87 2.60 3.64
10YearAnnualizedTotalReturn 1.01% 1.38% 1.85%
10YearStandardDeviation 1.84% 2.36% 3.43%
SharpeRatio 0.34 0.43 0.43
QualitativeRiskObjective 12/31/1988‐ 12/31/2018 12/31/1988‐ 12/31/2018 12/31/1988‐ 12/31/2018
NegativeQuarterlyReturnOccurrences 13 23 33
2ConsecutiveNegativeQuarterlyReturnOccurrences 2 3 7
NegativeReturnForYearOccurrences 0 2 3
WorstYearTotalReturn 0.37% ‐0.63% ‐1.61%
ChandlerAssetManagement
Developing Solutions Designed to Meet Your Goals
Demonstrated Value Over Time
Hypothetical10‐YearBenchmarkPerformance
December2008– December2018
InvestmentStyle
Portfolio
Duration
AnnualizedTotalReturn
10 YearPeriod
10‐YearGrowthof$10
MillionPortfolio
AddedValue
OverLAIF
LAIF
0.57 0.68% $10.7million N/A
ICEBAML1‐3Yr US
Treasury/AgencyIndex
1.80 1.01% $11.1million $0.4million
ICEBAML1‐5Yr US
Treasury/AgencyIndex
2.54 1.38% $11.5million $0.8million
ICEBAML1‐10Yr US
Treasury/AgencyIndex
3.58 1.85% $12.0million $1.3million
Performance for ICE BAML benchmarks based on a $10 million portfolio, relative to LAIF. Performance shown is hypothetical and not based on an actual client's account. Data as of
December 31, 2018. LAIF returns include an administrative fee charged to investors by the California State Treasurer. LAIF duration estimated based on average maturity in days, as
of November 30, 2018, divided by 365 days. Past performance is not a guarantee of future results. Please see disclosures at the end of this presentation for further details.
ChandlerAssetManagement
Normal Yield Curve
Source:Bloomberg
ChandlerAssetManagement
Flattening Yield Curve
Source:Bloomberg
ChandlerAssetManagement
Inverted Yield Curve
Source:Bloomberg
ChandlerAssetManagement
Yield Spread Between 2‐Year and 10‐Year Treasury Securities
Source:Bloomberg
ChandlerAssetManagement
Yield Levels as of February 13, 2019
Source:Bloomberg.DataasofFebruary13,2019.
Assuming a long‐term time horizon, what is the main risk of keeping
funds invested one year or less?
LAIF 1Year 2Years 3Years 4Years 5Years
2.39% 2.55% 2.52% 2.52% 2.53% 2.53%
ChandlerAssetManagement
Question 2 ‐ Investing
ChandlerAssetManagement
APublicAgencyhasatotalportfoliosizethatgenerallyfluctuatesbetween$80
and$100millionduringtheyear.
Totalassetshavebeengrowingslowlyovertime.
TotalReturnInvestmentPortfoliois$50million,theremainderisinLAIF.
Assuminga$100millioncurrentportfoliosize,approximatelyhowmuchcanbe
consideredcorefundsandinvestedintoalonger‐termstrategy?
Whatstrategywouldyouuseforcorefunds?
Case Study
ChandlerAssetManagement
Question 3 ‐ Investing
Assuminga$100millioncurrentportfoliosize,howmuchcanbe
consideredcorefundsandinvestedintoalonger‐termstrategy?
a) $50million
b) $60million
c) $70million
d) $80million
e) Notsure
ChandlerAssetManagement
Question 4 ‐ Investing
Whatstrategywouldyouuseforcorefunds?
a) Ladder
b) Bullet
c) Barbell
d) TotalReturn
e) Noneoftheabove
ChandlerAssetManagement
Disclosures
2019 Chandler Asset Management, Inc., An Independent Registered Investment Adviser.
The information herein is provided for informational purposes only and should not be construed as a recommendation of any security, strategy, or investment
product, nor an offer or solicitation for the purchase or sale of any financial instrument. References to sample securities, products or investment indices are for
informational purposes and do not imply that managing portfolios to those securities or styles will achieve comparable returns.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction
and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance
results. It is not possible to invest directly in an index. Past performance is not indicative of future results.
Any forecasts, forward‐looking statements and assumptions are inherently limited and should not be relied upon as an indicator of future results. Any opinions or
views constitute judgments made by the author at the date of this presentation and may become outdated or superseded at any time without notice. Any
statements concerning financial market trends are based on current market conditions, which will fluctuate.
Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or
outperform any particular benchmark. The data contained in this presentation is the property of those providers, which was obtained from sources believed to be
reliable, but are subject to change at any time at the provider’s discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise.
Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract
investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising
interest rates.
ChandlerAssetManagement
Disclosures
ICE BAML 1‐3 Year US Treasury & Agency Index
The ICE BAML 1‐3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US
domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year
remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a
minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. (Index: G1A0. Please visit www.mlindex.ml.com for more information).
ICE BAML 1‐5 Year US Treasury & Agency Index
The ICE BAML 1‐5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US
domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year
remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a
minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. (Index: GVA0. Please visit www.mlindex.ml.com for more information).
ICE BAML 1‐10 Year US Treasury & Agency Index
The ICE BAML 1‐10 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issuedintheUS
domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year
remaining term to final maturity and less than ten years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a
minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. (Index: G5A0. Please visit www.mlindex.ml.com for more information).
LAIF
The California State Local Agency Investment Fund (LAIF) is an investment portfolio managed by the State Treasurer. All securities are purchased under the authority of
Government Code Section 16430 and 16480.4 and include securities issued by entities of the US Government, including the US Treasury and Agencies, Corporate debt,
Certificates of Deposit, Mortgage Backed Securities and certain loans to the State and state agencies. The average maturity of the Fund will be between 120 days and 18 months.
Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits the use of ICE Indices and related data on an “as is” basis; ICE, its affiliates and their respective third party
suppliers disclaim any and all warranties and representation, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use,
including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third‐party providers guarantee the
quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof
are provided on an “as is” basis and licensee’s use is at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend
Chandler, or any of its products or services.
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