HomeMy WebLinkAbout05-29-2025 IOC Agenda Packet
Investment Oversight Committee
AGENDA
Thursday, May 29, 2025, 10:00 a.m.
Council Hearing Room, 990 Palm Street, San Luis Obispo
The Investment Oversight Commission holds in-person meetings. Zoom participation will not be
supported. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of
complimentary parking; restrictions apply, visit Parking for Public Meetings for more details.
INSTRUCTIONS FOR PUBLIC COMMENT:
Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):
Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990
Palm Street, San Luis Obispo, California, 93401.
Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your
email, please include the date of the meeting and the item number (if applicable). Emails will not
be read aloud during the meeting.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the
agenda item number you are calling about, and leave your comment. Verbal comments must be
limited to 3 minutes. Voicemails will not be played during the meeting.
*All correspondence will be archived and distributed to members, however, submissions received
after the deadline may not be processed until the following day.
Public Comment during the meeting:
Meetings are held in-person. To provide public comment during the meeting, you must be
present at the meeting location.
Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy,
Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire
to utilize electronic visual aids to supplement their oral presentation must provide display-ready
material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's
Office at cityclerk@slocity.org or (805) 781-7114.
Pages
1.CALL TO ORDER
Chair Emily Jackson will call the Regular Meeting of the Investment Oversight
Committee to order.
2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
The public is encouraged to submit comments on any subject within the
jurisdiction of the Investment Oversight Committee that does not appear on this
agenda. Although the Committee will not take action on items presented during
the Public Comment Period, the Chair may direct staff to place an item on a
future agenda for discussion.
3.CONSENT
Matters appearing on the Consent Calendar are expected to be non-
controversial and will be acted upon at one time. A member of the public may
request the Revenue Enhancement Oversight Commission to pull an item for
discussion. The public may comment on any and all items on the Consent
Agenda within the three-minute time limit.
3.a CONSIDERATION OF MINUTES - FEBRUARY 27, 2025 INVESTMENT
OVERSIGHT COMMITTEE MINUTES
5
Recommendation:
To approve the Investment Oversight Committee Minutes of February
27, 2025.
4.BUSINESS ITEMS
4.a PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON
PORTFOLIO PERFORMANCE & ECONOMIC OUTLOOK
7
Recommendation:
Receive and confirm investment policy compliance.
5.COMMENT AND DISCUSSION
5.a STAFF UPDATES AND AGENDA FORECAST
Chair Jackson will provide a brief agenda forecast and updates.
6.ADJOURNMENT
The next Regular Meeting of the Investment Oversight Committee is scheduled
for August 28, 2025 at 3:00 p.m. in the Council Hearing Room at City Hall, 990
Palm Street, San Luis Obispo.
LISTENING ASSISTIVE DEVICES are available -- see the Clerk
The City of San Luis Obispo wishes to make all of its public meetings accessible
to the public. Upon request, this agenda will be made available in appropriate
alternative formats to persons with disabilities. Any person with a disability who
requires a modification or accommodation in order to participate in a meeting
should direct such request to the City Clerk’s Office at (805) 781-7114 at least
48 hours before the meeting, if possible. Telecommunications Device for the
Deaf (805) 781-7410.
Agenda related writings or documents provided to the Investment Oversight
Committee are available for public inspection on the City’s website, under the
Public Meeting Agendas web page: https://www.slocity.org/government/mayor-
and-city-council/agendas-and-minutes. Meeting video recordings can be found
on the City’s website:
http://opengov.slocity.org/WebLink/Browse.aspx?id=61037&dbid=0&repo=CityCl
erk
Page 4 of 30
Minutes - Draft
Investment Oversight Committee
Thursday, February 27, 2025
Regular Meeting of the Investment Oversight Committee
CALL TO ORDER
A Regular meeting of the Investment Oversight Committee was called to order on Thursday,
February 27, 2025, at 3:07 p.m. in the Council Hearing Room at City Hall, 990 Palm Street,
San Luis Obispo, by Chair Jackson.
ROLL CALL
Present: Committee Members Whitney McDonald, Riley Kuhn, Debbie Malicoat,
Jan Marx, and Chair Emily Jackson
Absent: Committee Member Anni Wang
Others Present: Justin Resuello PFM Asset Management LLC, and Michelle
Karpovich, Recording Secretary
PUBLIC COMMENT ITEMS NOT ON THE AGENDA
None
--End of Public Comment--
APPROVAL OF MINUTES
1. Review of Minutes of the Investment Oversight Committee Meeting of November
21, 2024
PUBLIC COMMENT
None
--End of Public Comment--
ACTION FOR ITEM 1: UPON MOTION BY COMMITTEE MEMBER MARX SECONDED
BY COMMITTEE MEMBER MALICOAT CARRIED 5-0-1 (with Wang absent), to approve
the November 21, 2024, minutes, as presented.
Page 5 of 30
City of San Luis Obispo, Title, Subtitle
Minutes - Investment Oversight Committee Minutes of Thursday, February 27, 2025 Page 2
BUSINESS ITEMS
2. Presentation of the Quarterly Investment Report on Portfolio Performance &
Economic Outlook
Justin Resuello for PFM Asset Management LLC provided an update via PowerPoint
presentation and responded to Committee inquiries.
PUBLIC COMMENT
None
--End of Public Comment--
ACTION FOR ITEM 2: UPON MOTION BY COMMITTEE MEMBER MCDONALD,
SECONDED BY COMMITTEE MEMBER MARX, 4-0-1 (with Wang absent), to approve
the recommendation to accept the report.
COMMENT AND DISCUSSION
Annual Review during the May 22, 2025 meeting.
The Investment Oversight Committee will now be meeting on the fourth Thursday of every
quarter at 10:00 a.m.
ADJOURNMENT
The meeting was adjourned at 3:45 p.m. The next Regular Meeting of the Investment
Oversight Committee is scheduled for Thursday , May 22, 2025 at 10:00 a.m.
APPROVED BY INVESTMENT OVERSIGHT COMMITTEE: XX/XX/XXXX
Page 6 of 30
Quarterly Investment Report
AS OF MARCH 31, 2025
Page 7 of 30
This report presents the City’s investment portfolio for
the quarter ending March 31,2025.It has been
prepared to comply with regulations contained in
California Government Code Section 53646.The report
includes all investments managed by the City on its
own behalf as well as for other third-party agencies on
a fiduciary basis such as the Whale Rock Commission.
It also includes all City related investments held by
trustees for bond debt service obligations.As required,
the report provides information on the investment type,
issuer,maturity date,cost,and current market value for
each security.
Page 8 of 30
Market Considerations
U.S. economy is clouded by tariff
and policy uncertainty
•Labor market continues to serve
as backbone
•Goods inflation weighs on
progress towards Fed’s 2%
inflation target
•Fiscal policy uncertainty and
volatile tariff rollouts weigh on
consumer sentiment
The Federal Open Market
Committee (FOMC) opted to
maintain the target range for the
federal funds rate at 4.25-4.5%
during both meetings in Q1, citing
sticky inflation, a stable
unemployment rate, and ‘solid’ labor
market conditions.
The yield curve reinverted on the
front end while the steepness of the
curve between 2 years and 10 years
was unchanged
Source: Bloomberg Financial L.P. and ICE BofA Indices. ABS indices are 0-5 year, based on weighted
average life. As of March 31, 2025.
4.29%
3.88%3.95%
4.07%4.21%
4.57%
3.00%
3.50%
4.00%
4.50%
5.00%
Yi
e
l
d
Maturity
U.S. Treasury Yield Curve
March 31, 2025
December 31, 2024
3mo 2yr 5yr 7yr 10yr 30 yr
2.00%
1.72%
1.39%
2.01%1.95%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
U.
S
.
T
r
e
a
s
u
r
y
Ag
e
n
c
y
AB
S
Co
r
p
A
-
A
A
A
Co
r
p
B
B
B
First Quarter 2025 Returns
Page 9 of 30
What we are watching…
U.S. economic growth remained
steady in 2024, but worsening
consumer sentiment may weigh on
spending going forward.
Financial conditions remained
supportive in the first half of the
quarter but tightened as ongoing tariff
risks weighed on equity prices and
credit spreads. While credit spreads
widened modestly during the first
quarter they remain below historic
averages.
The labor market remains surprisingly
resilient with both initial jobless claims
and the unemployment rate at
historically low levels. Monthly job
gains continue to keep pace with labor
force growth.
Progress towards the Fed’s 2% target
remains stalled with goods inflation
moving higher even before tariff
policies were enacted.
Fed Chair Powell said the data are not
yet reflecting tariffs and reiterated it
will be difficult to directly measure the
impact of these policies on prices.
Source: Federal Reserve, latest economic projections as of March 2025.
1.7%1.8%1.8%1.8%
0%
1%
2%
3%
4%
2025 2026 2027 Longer
Run
Change in Real GDP
Dec Projections Mar Projections 4.4%4.3%4.3%4.2%
0%
1%
2%
3%
4%
5%
6%
2025 2026 2027 Longer
Run
Unemployment Rate
Dec Projections Mar Projections
2.7%
2.2%2.0%2.0%
0%
1%
2%
3%
4%
2025 2026 2027 Longer
Run
PCE Inflation
Dec Projections Mar Projections
3.9%3.4%3.1%3.0%
0%
1%
2%
3%
4%
5%
6%
2025 2026 2027 Longer
Run
Federal Funds Rate
Dec Projections Mar Projections
Page 10 of 30
Current Cash and Investment Summary
The following is a summary of the City’s cash
and investments based on market value, as of
March 31, 2025, compared to the prior quarter.
Investment Entity March 31, 2025 Percent of Total**December 31, 2024
City Held Cash & Investments $51,913,323.29 20.0%$38,572,051.90
JPMorgan Money Market Account $50,000,000.00 19.2%$50,000,000.00
LAIF Held Investments $48,639,801.25 18.7%$48,080,610.62
PFMAM Managed Investments*$109,639,050.83 42.1%$107,859,211.60
TOTAL**$260,192,175.37 100%$244,511,874.12
*Figures shown exclude accrued interest. **Details may not add up to total due to rounding.
Page 11 of 30
Current Cash and Investment Summary
There are several factors
which result in changes in
cash and investment
balances from month-to-
month and quarter-to-
quarter, dependent on the
receipt of revenues or a
large disbursement.
•Some major City revenues are received on a
periodic rather than a monthly basis. Property Tax
is received in December, January, April, and May
of each year. Transient Occupancy Tax is
received monthly but varies considerably due to
seasonality.
•Payments for bonded indebtedness or large
capital projects can reduce the portfolio
substantially in the quarter in which they occur.
•The City pays its CalPERS obligation in a lump
sum at the beginning of the fiscal year to achieve
interest savings.
Factors
Page 12 of 30
Securities
Securities in the City’s
portfolio are priced by
Refinitiv, an independent
pricing service, at the end
of every month. In some
cases, the City may have
investments with a current
market value that is greater
or less than the recorded
value. These changes in
market value are due to
fluctuations in the
marketplace, having no
effect on yield, as the City
does not intend to sell
securities prior to maturity.
Nevertheless, these
market changes can
impact the total value of
the portfolio.
Security Type Market Value
% of
Portfolio
% Change
vs. 12/31/24
Permitted by
Policy
U.S. Treasury 71,664,096 65.0%6.8%100%
Federal Agency 9,805,537 8.9%-14.9%100%
Municipal Obligations 453,788 0.4%0.8%30%
Negotiable CDs 1,016,471 0.9%-0.3%30%
Corporate Notes 17,685,680 16.0%-7.2%30%
Asset-Backed
Securities 8,785,217 8.0%4.9%15%
Securities Sub-Total 109,410,788 1.8%
Money Market Fund 228,263 0.2%-32.8%20%
Accrued Interest 629,464 0.6%
Securities Total 110,268,515 100.0%2.2%
Page 13 of 30
PFMAM Managed 3/31/2025 12/31/2024
Average Maturity
(Years)2.35 2.44
Effective Duration1 1.95 2.04
Average Market Yield 4.18%4.45%
Total Return
Total return is calculated
based on interest and both
realized and unrealized
changes in market value;
this is expressed as a rate
of return over a specified
period of time based on
cost and is backward-
looking.
•Focused on long-term
performance and
growth
•Affected by both yield
and market value
fluctuations
•Reflects “true value” of
the portfolio
•Recommended
approach by the
Government Finance
Officers Association
Total Rate
of Return 3 Months 1 Year 3 Years Since
Inception
City of SLO 1.72%5.53%3.08%1.81%
0-5 Treasury
Index 1.81%5.43%2.87%1.62%
Variance -0.08%+0.10% +0.21% +0.20%
1Effective duration is the approximate percentage change in price for each 1% change in interest rates.
Page 14 of 30
Investment Objectives
The investment objectives of the City of San Luis Obispo are first, to
provide safety of principal to ensure the preservation of capital in the
overall portfolio; second, to provide sufficient liquidity to meet all
operating requirements; and third, to earn a commensurate rate of
return consistent with the constraints imposed by the safety and
liquidity objectives. The City follows the practice of pooling cash and
investments for all funds under its direct control. Funds held by outside
fiscal agents under provisions of bond indentures are maintained
separately. Interest earned on pooled cash and investments is
allocated quarterly to the various Quarterly Investment Report funds
based on the respective fund’s average quarterly cash balance.
Interest earned from cash and investments with fiscal agents is
credited directly to the related accounts.
It is common for governments to pool the cash and investments of
various funds to improve investment performance. By pooling funds,
the City can benefit from economies of scale, diversification, liquidity,
and ease of administration. The City uses the services of an
investment advisor, PFM Asset Management, to manage a portion of
the City’s portfolio. The City’s strategy is to retain approximately 25%
of the portfolio to manage its day-to-day cash flow needs, while PFM’s
focus is on longer-term investment management. In addition, the City
has retained direct control of several investments that had been
acquired before the City began to use investment advisors. All
investments are held by the City in a safekeeping account with Bank of
New York Mellon, except for investments held by trustees related to
bond financings, which are held by either US Bank or Bank of New
York Mellon.
Page 15 of 30
Environmental, Social, and Governance (ESG) Investment Objectives
ESG investing is the process of incorporating the
analysis of non-financial environmental, social, and
governance factors into investment decisions
alongside traditional financial criteria. As set forth in
the City’s Investment Management Plan dated
August 18, 2020, it is City’s objective to integrate
environmental, social, and governance (“ESG”)
factors into investment decisions for its investment
portfolio to the extent practical and possible.
In order to achieve this objective, the City will apply
the ESG Investment Criteria to the following
Investments: Asset-Backed Securities, Bankers’
Acceptances, Commercial Paper, Corporate,
Medium-Term & Bank Notes, and Negotiable Bank
Deposit Obligations.
The ESG investment criteria is based on ESG Risk
Ratings, industry and subindustry definitions, and
subindustry rankings as provided by Sustainalytics.
Page 16 of 30
Market Value includes accrued interest as of March 31, 2025. Average ESG Risk Rating is weighted by market
value. Please see important disclosures at the end of this presentation.
* U.S. Treasury and municipal obligations are not included in the analysis.
ESG Risk Composition Overview
The ESG Risk Rating measures
economic value at risk based on
ESG factors.
A company’s ESG Risk Rating is
comprised of a quantitative score
and a risk category. The score
indicates unmanaged ESG risk.
Risk categories are absolute and
comparable across industries.
Lower scores represent less
unmanaged risk. Ratings are
scored on a scale of 1-100 and are
assigned to one of the following
ESG risk categories:
•Negligible Risk (overall score
of 0-9.99 points)
•Low Risk (10-19.99 points)
•Medium Risk (20-29.99 points)
•High Risk (30-39.99 points)
•Severe Risk (40 and higher
points)
29/32 of portfolio issuers are rated with a total rated market value of $37.5 million (34%)
Negligible Low Medium High Severe
Portfolio Average
ESG Risk Rating
19.5
Allocation by ESG Risk Rating
Low
22%
Medium
11%
High
1%
Not Rated
66%
Page 17 of 30
Industry Diversification
Portfolio holdings and Sustainalytics data as of March 31, 2025. Average ESG Risk Rating represents the market
value-weighted average ESG risk rating for each industry.
27.2
18.4 19.0 20.3
22.5
18.7
14.9
16.5
0%
20%
40%
60%
80%
0
10
20
30
40
Po
r
t
f
o
l
i
o
W
e
i
g
h
t
(
%
)
ES
G
R
i
s
k
R
a
t
i
n
g
Industry Exposure and Weighted Average Risk Score
Page 18 of 30
S&P Credit Rating Distribution
ESG Risk Rating Key
Negligible Low Medium High Severe
0-9.99 10-19.99 20-29.99 30-39.99 40-100
Portfolio holdings and Sustainalytics data as of March 31, 2025. If a security is not rated by S&P, the equivalent
Moody’s rating is used. NR stands for ‘no rating’ and implies that the issuer is not rated by S&P or Moody’s but is
rated by Fitch.
$0 $5 $10 $15
A
AA
AAA
Market Value Allocation (Millions $)
Credit Rating Grouped by ESG Risk Rating Category
22.5
16.2
20.5
0
10
20
30
AAA AA A
Average ESG Risk Rating by S&P Credit Rating
Page 19 of 30
Holdings as of March 31, 2025
Sorted By ESG Risk Rating
Source: Sustainalytics. Holdings as of March 31, 2025.
Issuer % Weight Subindustry Subindustry
Percentile
ESG Risk
Rating
3/31/2025
Page 20 of 30
Holdings as of March 31, 2025
Sorted By ESG Risk Rating
Source: Sustainalytics. Holdings as of March 31, 2025.
(continued)
Issuer % Weight Subindustry Subindustry
Percentile
ESG Risk
Rating
3/31/2025
Page 21 of 30
Socially Responsible Investment Policy
In addition to the ESG
criteria, the City’s Socially
Responsible Investment
(SRI) Policy restricts portfolio
issuers who generate
revenue from casinos,
gambling, racetracks,
brewery, wine/spirits,
tobacco, electronic cigarette,
or tobacco-related products,
or who support the direct
production or drilling of fossil
fuels. The tables to the right
show the Bloomberg Industry
Classifications (“BICS”) for all
the portfolio’s holdings.
Issuer Sector (BICS)
American Express Co Credit Card ABS
BA Credit Card Trust Credit Card ABS
Bank of America Corp Diversified Banks
Bank of New York Mellon Corp Banks
BlackRock Inc Financial Services
Bristol-Myers Squibb Co Pharmaceuticals
Citigroup Inc Banks
Cooperatieve Rabobank UA Banks
Deere & Co Machinery Manufacturing
Eli Lilly & Co Pharmaceuticals
Federal Home Loan Banks Government Agencies
Federal Home Loan Mortgage Corp Government Agencies
Federal National Mortgage Association Government Agencies
Fifth Third Auto Trust Automobile ABS
GM Financial Consumer Automobile Receiv Automobile ABS
Home Depot Inc Retail - Consumer Discretionary
Honda Auto Receivables Owner Trust Automobile ABS
Issuer Sector (BICS)
Hyundai Auto Receivables Trust Automobile ABS
JPMorgan Chase & Co Diversified Banks
Kubota Credit Owner Trust Other ABS
Mastercard Inc Consumer Finance
Microsoft Corp Software & Services
New Jersey Turnpike Authority Transportation
Nissan Auto Receivables Owner Trust Automobile ABS
Novartis AG Pharmaceuticals
PACCAR Inc Transportation & Logistics
PepsiCo Inc Food & Beverage
PNC Financial Services Group Inc Banks
State Street Corp Financial Services
Target Corp Mass Merchants
Toyota Auto Receivables Owner Trust Automobile ABS
Toyota Motor Corp Automobiles
United States Treasury Sovereigns
University of California Board of Regen Education
Source: Bloomberg. BICs is an industry classification system developed and utilized by Bloomberg that classifies securities based on
business, economic function, and other characteristics.Page 22 of 30
Distribution List
City Council
Erica A. Stewart
Mayor
Michelle Shoresman
Vice Mayor
Michael R. Boswell
Council Member
Emily Francis
Council Member
Jan Marx
Council Member
Investment Oversight
Committee
Jan Marx
Council Liaison
Anni Wang
Public Member
Whitney McDonald
Interim City Manager
Emily Jackson
Director of Finance
Debbie Malicoat
Deputy Director of Finance/City
Controller
Riley Kuhn
Principal Financial Analyst—Budget
Independent Auditor
Badawi & Associates
PFM Asset
Management
Monique Spyke
Managing Director
Justin Resuello
Institutional Sales & Relationship
Manager
Page 23 of 30
Appendix
•Additional ESG Information
•ESG Themes Information
Page 24 of 30
Source: Sustainalytics. Data as of March 31, 2025. Bars represent the range of held issuers’ ESG risk rating that
fall under each sector, and lines indicate the sectors market value-weighted average ESG risk rating. Please see
important disclosures at the end of this presentation.
Sector Analysis
23.5
20.5
12.3
14.7
Page 25 of 30
ESG Themes Glossary
ESG Theme Theme Description Key Indicators
Environment
Carbon Output &
Energy Use
Refers to a company’s management of risks
related to its energy efficiency and
greenhouse gas emissions in its operation
as well as its products and services in the
production phase and during the product
use phase
•Carbon intensity
•Renewable energy use
•Env. Mgt. System certification
•GHG reporting / risk management
•Hazardous products
•Sustainable products & services
Waste & Pollution
Evaluates the management of emissions
and releases from a company’s own
operations to air, water, and land, excluding
greenhouse gas emissions
•Emergency response program
•Solid waste management
•Effluent management
•Radioactive waste management
•Hazardous waste management
•Non-GHG air emissions programs
•Oil spill disclosure & performance
•Recycled material use
Resource Use &
Biodiversity
Analyzes how efficiently and effectively a
company uses its raw material inputs and
water in production. It also encompasses
how a company manages the impact of its
operations on land, ecosystems, and wildlife
•Biodiversity programs
•Deforestation programs / polices
•Site closure & rehabilitation
•Water intensity & risk management
•Forest certifications
•Supplier environmental programs / certifications
•Sustainable agriculture programs
Community
Impact
(Environmental)
Evaluates the community impact from an
environmental risk perspective based on an
assessment of Community Relations,
Products & Services, Occupational Health
and Safety, and Product Governance
•Env Impact – Community Relations
•Env Impact – Products & Services
•Env Impact – Occupational Health and Safety
•Env Impact – Product Governance
Page 26 of 30
ESG Theme Theme Description Key Indicators
Social
Human Capital
Management
Evaluates the management of risks
related to human rights, labor rights,
equality, talent development,
employee retention, and labor health
and safety
•Discrimination policy
•Diversity programs
•Gender pay equality / disclosures
•Employee development
•Supply chain management / standards
•Human rights policies & programs
•Employee health & safety
Product
Governance
Focuses on the management of
risks related to product quality,
safety, wellness, and nutrition, as
well as customer data privacy &
cybersecurity
•Product & service safety programs /
c certifications
•Data privacy management
•Media & advertising ethics policy
•Organic products / GMO policy
•Product health statement
Community
Impact (Social)
Assesses how companies engage
with local communities and their
management of access to essential
products or services to
disadvantaged communities or
groups
•Equitable pricing and availability
•Access to health care
•Price transparency
•Human rights / indigenous policy
•Community involvement programs
•Noise management
ESG Financial Integration
& Resilience
Analyzes financial stability and
issues that pose systemic risks and
potential external costs to society in
the financial services industry. Also
measures ESG activities by financial
institutions
•Systemic risk management / reporting
•Tier 1 capital
•Leverage ratio
•Responsible investment / asset management
•Underwriting standards
•Financial inclusion
•Credit & loan standards
•Green buildings investments
ESG Themes Glossary
Page 27 of 30
ESG Themes Glossary
ESG Theme Theme Description Key Indicators
Governance Corporate
Governance
Evaluates a company’s rules, policies, and
practices with a focus on how a company's
board of directors manages and oversees
the operations of a company. Also assesses
the management of general professional
ethics and lobbying activities
•Board / management quality & integrity
•Board structure
•Ownership & shareholder rights
•Remuneration
•Audit & financial reporting
•Stakeholder governance
•Bribery & corruption policies / programs
•Money laundering policy
•Whistleblower programs
•Business ethics programs
•Political involvement policy
•Lobbying and political expenses
Page 28 of 30
Disclosures
This report contains information developed by Sustainalytics. Such information and data are proprietary of Sustainalytics
and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. The use of the data does
not constitute an endorsement of any product or project, nor investment advice and are not warranted to be complete, timely,
accurate or suitable for a particular purpose. The use of their data is subject to their conditions. For more information vis it
http://www.sustainalytics.com/legal-disclaimer.
Although PFM Asset Management’s information providers, including without limitation, Sustainalytics, Inc. and its affiliates
(the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees
the originality, accurate and/or completeness of any data herein. None of the ESG Parties make any express or implied
warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a
particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or
omissions in connect with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG
Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost pr ofits)
even if notified of the possibility of such damages.
There is a risk that the issuers selected to support client sustainable objectives may not perform as expected in addressing
sustainability considerations or such performance may change over time, which could cause a client account to temporarily
hold securities that are not in alignment with the account’s sustainable objectives. Further, there is a risk that informatio n used
to evaluate ESG criteria may not be readily available, complete or accurate, which could negatively impact an account’s
ability to apply its sustainable objectives. In managing client's sustainability objectives, PFM Asset Management may rely on
analysis and ratings provided by third parties in determining whether an issuer meets an account’s sustainability objectives. A
client’s perception may differ from PFM Asset Management’s or a third party’s on how to judge an issuer’s adherence to
client's guidelines.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which
is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment
adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible
for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.
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Disclosures (cont.)
The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. at
the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy,
economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also
subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance.
Information contained herein is based on data obtained from recognized statistical services, issuer reports or
communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which
is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment
adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible
for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or
quotation to the general public.
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