HomeMy WebLinkAbout2020-07-22 e-packet@6:31Wednesday, July 22, 2020
6:31 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
TELECONFERENCE MEETING
Special City Council
Special Meeting Agenda
July 22, 2020Special City Council Special Meeting Agenda
TELECONFERENCE MEETING NOTICE
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE
GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION
OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE
ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS
THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY
BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL
GOVERNMENTAL FUNCTION.
The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff
and the public while allowing for public participation.
Councilmembers Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino and essential
City staff will participate via Teleconference. Members of the public may submit their comments on any agenda
item or public comment via email or City Council hotline.
PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES
SHALL BE BY ROLL CALL DUE TO COUNCIL MEMBERS PARTICIPATING BY
TELECONFERENCE.
MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY:
Internet: https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council
Local cable channel: Astound, Channel 26 or Comcast, Channel 27
Page 2 City of South San Francisco Printed on 12/15/2020
July 22, 2020Special City Council Special Meeting Agenda
Call to Order.
Roll Call.
Agenda Review.
Remote Public Comments - comments are limited to items on the Special Meeting Agenda.
Remote Public Comments Received1.
Members of the public wishing to participate are encouraged to submit public comments in writing in
advance of the meeting by 4:31 p.m. on Wednesday, July 22nd. State law prevents Council from
taking action on any matter not on the agenda; your comments may be referred to staff for follow up.
Emails received before the meeting start time will be emailed to the City Council, posted on the
City’s website and will become part of the public record for that meeting. The email and phone line
below will be monitored during the meeting. If a comment is received after the set time or during the
meeting but before the close of the meeting, the comment will still be included as a part of the record
of the meeting. The Clerk will make every effort to read emails received but cannot guarantee such
emails will be read during the meeting, subject to the Mayor’s discretion to limit the total amount of
time for public comments (Gov. Code sec. 54954.3.(b)(1).). Comments that are not in compliance with
the City Council's rules of decorum may be summarized for the record.
Email: [email protected]
Public comments can be made on items not on the agenda, or must clearly identify the Agenda Item Number in
the SUBJECT Line of the email. The length of an email comment shall commensurate to the three minutes
customarily allowed per individual comment, approximately 300 words total.
City Council Hotline: (650) 829-4670
Please limit your voicemail to comply with the 3-minute time limitation for public comment.
ADMINISTRATIVE BUSINESS
Report regarding the creation of a Management Fellow position to support the
Mayor’s Commission on Racial and Social Equity (Leah Lockhart, Human Resources
Director)
2.
Presentation providing a market update and review of the City’s investment portfolio.
(Janet Salisbury, Finance Director, and Jeff Probst, Chandler Asset Management)
3.
Adjournment.
Page 3 City of South San Francisco Printed on 12/15/2020
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-505 Agenda Date:7/22/2020
Version:1 Item #:1.
Remote Public Comments Received
City of South San Francisco Printed on 7/17/2020Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-482 Agenda Date:7/22/2020
Version:1 Item #:2.
Report regarding the creation of a Management Fellow position to support the Mayor’s Commission on Racial
and Social Equity (Leah Lockhart, Human Resources Director)
RECOMMENDATION
By motion,approve the creation of a one-year Management Fellow position fund to support the Mayor’s
Commission on Racial and Social Equity and related City initiatives.
BACKGROUND/DISCUSSION
In July,2020 Mayor Garbarino announced the formation of the Mayor’s Commission on Racial and Social
Equity.The Commission was formed in recognition of,and response to,calls from community members to re-
examine City’s policies and practices with respect to policing,mental health,and other community services
with respect to systemic racial inequities.During recent Council meetings,City Council received significant
community input regarding the need to prioritize services to the communities where structural inequities
persist,and to re-examine the role of police services in South San Francisco.Council acknowledged the
immediate importance of prioritizing these issues,while recognizing that policy decisions will require more
dialogue and exploration of solutions with a variety of community stakeholders.Following Council discussion
with staff,a Commission charter (Attachment 1)was developed with the goal of advancing equity in the City’s
internal and external processes,and to recommend policy and program changes to overcome institutional
inequities in education,policing,healthcare (including mental health and addiction services),and other social
services.
The Commission will be comprised of two Council members and two City staff members,along with a
representative from the South San Francisco Unified School District,a member from San Mateo County
government,and eight community members representing diverse backgrounds and experiences in South San
Francisco.The work of the Committee will consist of gathering input and information from a variety of
community stakeholders,regional and local organizations,City staff,and the public regarding current programs
and challenges in the community;identify and evaluate a wide range of policy and program solutions to address
racial inequities;and develop final recommendations and implementation plans for Council consideration by
July, 2021.
In order to provide staff support for the Commission,staff recommends the creation of a management fellow
opportunity for a final-year graduate student or recent graduate with a Master’s degree in the field of public
policy,public health,social work or other related fields with an academic focus on racial equity and inclusion
in a variety of contexts.The Management Fellow will be expected to bring current knowledge and
understanding of successful policies and best practices in the area of community racial equity initiatives,
possess research,analytical,and organizational skills,and be able to work effectively and collaboratively with a
variety of City staff and members of the public.The management fellow will report directly to the City
Manager, with mentorship and guidance from other City executive staff members.
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File #:20-482 Agenda Date:7/22/2020
Version:1 Item #:2.
Key responsibilities and deliverables for the Management Fellow include:
·Gather information from City staff,outside agencies,and other sources regarding existing community
programs and services as they relate to racial equity and inclusion;
·Coordinate communications and information sharing among a variety of outside agencies,regional and
national subject matter experts, and community stakeholders;
·Review literature on successful policies and practices from a variety of sources,academic research
public policy evaluation, best practices from and provide written summaries to Commission members;
·Record action minutes from Commission meetings,collaborate with Commission chair to develop
meeting agendas and reports;
·Coordinate with City staff to plan and schedule Commission meetings,manage meeting logistics,and
make arrangements for guest speakers;
·Deliver periodic status updates to City Council on the status and progress of the Commission’s work;
·Compile and draft a final report summarizing Committee policy and program recommendations,and
action plans, no later than July 15, 2021.
The Management Fellow will be employed on an hourly,at-will basis with compensation at a rate of $46 -$50
per hour depending on graduate status,equivalent to the City’s Management Analyst I classification.Benefits
include the option to enroll in the City’s health plan with 75%premium contribution by the City.While
scheduled hours may vary,it is estimated that the position will work an average of 35 hours per week between
early September,2020 through mid-July,2021.Upon Council approval,recruitment and outreach will be
conducted with regional universities with related graduate programs,with an application deadline of August 7,
2021.From there,review and selection process will be conducted by staff and designated Commission
members. It is anticipated that the selected incumbent will begin work by early September.
FISCAL IMPACT
The cost of one hourly Management Fellow position as proposed above is approximately $86,000 -$104,000
depending on hourly rate and total number of hours of work.In the 2020-2021 Fiscal Year Operating Budget,
Council approved $185,000 in funds transferred to establish the Community Action Fund within the City
Manager’s office.These funds will be used to create the Management Fellow position and to support the work
of the Commission.
RELATIONSHIP TO STRATEGIC PLAN
This recommendation supports the City Council’s strategic initiatives of Quality of Life and Community
Connections,by ensuring staff support for the Commission’s work to address racial and social inequity within
the South San Francisco community.
CONCLUSION
A Management Fellow position is recommended in order to provide staff support to the Mayor’s Commission
on Racial and Social Equity,in order to bring the necessary knowledge and skills to the Commission’s work for
a one-year period, and to ensure the Commission’s ability to meet its objectives no later than July, 2021.
Attachment 1: Mayor’s Commission on Racial and Social Equity Charter
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Mission Statement
Charter
South San Francisco Mayor’s Commission
on Racial and Social Equity
July 13, 2020
The South San Francisco Mayor’s Commission on Racial and Social Equity aims to proactively
advance equity in the City’s internal and external processes, as well as to recommend policy
and program changes to overcome institutional inequities in education, policing, healthcare
(including mental health and addiction services), and other social services.
The commission recognizes that each of these areas has a direct impact on the other. They are
interrelated and there is a need to develop solutions to address each area of concern.
Objectives
The Commission is to:
Develop a thorough knowledge of institutional racial and social inequities in the areas of
education, policing, healthcare (including mental health and addiction services), and
other social services, identifying cumulative impacts of institutional and structural
inequities, as each area relates to South San Francisco;
Examine police presence and relationships with respect to communities of color in order
to build trust
Build trust and strengthen partnerships with local community based organizations,
community health organizations and agencies, and social justice organizations;
Collaborate with the community and other institutions/partners to develop and offer
opportunities for change relating to racial and social inequities exploring and elevating
successful models and best practices;
Submit recommendations for action to the South San Francisco City Council designed to
reduce or eliminate racial and social inequities within the scope of the areas of inquiry,
and help the City of South San Francisco better serve a diverse community and staff.
The Commission will update the City Council regularly on the Commission’s progress, but no
less than quarterly.
Timeline and Expected Outcomes
The Commission will establish milestones, track outcomes and issue a final report documenting
its findings and recommendations, guided by the following three-phased approach:
Phase One: Focused on information gathering, including presentations by regional and
national experts, city staff, outside agencies, and the public, to gain the requisite base
knowledge to understand the complexities surrounding current conditions and
determining areas where meaningful change is possible. Phase one is expected to take
three months.
Phase Two: Focused on solutions, refining and stress testing various options, engaging
stakeholders, analyzing financial and legal constraints, and collaboratively arriving at a
set of draft recommendations for policy and program changes. Phase two is expected
to take three months.
Phase Three: Focused on refinement of recommendations, development of
implementation plans and production of final report. The Commission is to deliver its
final report to the South San Francisco City Council no later than July 15, 2021.
Commission Membership
The South San Francisco Mayor will appoint 12 members to the Commission, as follows:
Councilmember Mark Nagales
Councilmember Flor Nicolas
One member nominated by Vice-Mayor Addiego
One member nominated by Councilmember Matsumoto
City Manager Mike Futrell
Police Chief Jeff Azzopardi
A representative of the South San Francisco Unified School District
A representative of the County of San Mateo
A representative of Change SSF
Three South San Francisco residents appointed as members-at-large, ensuring a diverse
Commission representing the ethnic and geographic diversity of the City; and one
alternate member.
Should any outside agency or organization refuse to appoint a member, or fail to appoint a
member within a reasonable amount of time, or should an appointed member resign or fail to
participate in three or more meetings during the term of the Commission, the Mayor can, at his
discretion, remove non-participating member(s) and appoint member(s) to ensure the
Commission has twelve participating members.
Authority
The South San Francisco Mayor’s Commission on Racial and Social Equity is created pursuant to
provisions of the South San Francisco City Council Handbook governing City Council structure
and administration. Specifically, the “Council Committees” section of the Handbook authorizes
the Mayor to form ad hoc committees from time to time to address special concerns of short
duration and appoint council members thereto (Handbook pp. 7 -8). The term of the
Commission is temporary, with the Commission charged to conclude its work by July 15, 2021,
after which the Commission shall be automatically dissolved.
The Commission shall have the authority to create committees and/or subcommittees for the
purpose of gathering information, developing a deeper understanding of specific issues, vettin g
proposals, and other work necessary to support the work of the Commission. The term of any
such committees and/or subcommittees created for this purpose shall be coterminous with the
Commission unless dissolved earlier by the Commission.
The Chair of the Commission shall be Councilmember Flor Nicolas.
Meetings
The Commission shall meet as necessary, but no less than once per month unless prevented by
exigent circumstances. A simple majority of members of the Commission then serving shall
constitute a quorum. The Commission may act by an affirmative vote of a simple majority of a
quorum, but no fewer than four affirmative votes shall be required.
A simple majority of the members of a committee or subcommittee created by the Commission
shall constitute a quorum. Such a committee or subcommittee may act by an affirmative vote
of a simple majority of a quorum.
All Commission meetings shall be open to the public, with agendas publicly noticed in advance
and with an opportunity for public comment provided at all meetings. The Chair may limit the
total amount of time for public comments and the length of individual public comments to
ensure that the Commission can complete the business on the published agenda within a
reasonable period of time.
Commission meetings may be conducted by videoconference or teleconference, consistent
with Executive Orders N-25-20 and N-29-20 issued by Governor Newsom.
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-504 Agenda Date:7/22/2020
Version:1 Item #:3.
Presentation providing a market update and review of the City’s investment portfolio.(Janet Salisbury, Finance
Director, and Jeff Probst, Chandler Asset Management)
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
COUNCIL INVESTMENT REPORT
Period Ending June 30, 2020
City of South San Francisco
Economic and Portfolio Highlights
Economic Quick Take
•COVID-19 news flow has guided the market over the past five months.The economy and market are operating under a
state of uncertainty as the rate of spread and severity of the virus has negatively impacted world markets.
•Economic data has started to reflect the severity of COVID-19,but investors are now focused on the recovery path.
Elevated new inflection levels in many states and uncertainty around the timing of vaccines and treatments may delay a
robust economic recovery.Unemployment statistics remain at tragic levels and more attention is being paid to the
trajectory of permanent job losses.
•Investors sought safety during the first part of the COVID-19 crisis,and investors saw US Treasury yields set new all-time
lows in a dramatic fashion.The entire yield curve closed on March 9th,2020 with yields under 1%(except the fed funds
rate).Since then yields on long maturity Treasury securities have rebounded above 1%.
•In reaction to market uncertainty,the Federal Reserve made two emergency fed funds rate cuts The Federal Reserve cut
fed funds rate 50 basis points (0.50%)on March 3rd and 100 basis points (1.00%)on March 15th.The Federal Reserve
also acted in unprecedented ways to support the economy and markets using nearly every tool in their toolbox.The Fed
created several liquidity facilities and has purchased over $2 trillion in government securities since March.
•Second quarter corporate earnings and future forecasts will be in focus the next couple months.
Portfolio Highlights
•The City’s portfolio is composed of a mix of high-quality fixed income securities that performed well during recent
periods of market volatility.
•We remain cautious and will focus on the highest rated issuers,including US Treasury and agency securities.The City
does not own any securities with one or more BBB ratings.
1
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%YIeld (%)10-Year Treasury Yield vs 10-Year AAA Municipal Yield
10-Year AAA Municipal Bond Yield
10-Year Treasury
Source: Bloomberg Source: Bloomberg
Bond Yields
•US Treasury yields have fallen by nearly 150 basis points (1.50%)over the past six months
•The Federal Reserve cut the federal funds rate to a range of 0.00-0.25%during two unscheduled Federal Open Market
Committee meetings in early March.
•We expect interest rates to remain in low as prospects for growth,inflation and employment remain challenging.
•The City of South San Francisco priced their municipal bond deal at near all-time low yields (2/27/2020)
•Priced before municipal credit spreads started to widen and liquidity became challenging.
•There will be significant financing cost savings.
Bond Pricing
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
US Treasury Yield Curve
Jun-20
Mar-20
Jun-19
Yield (%)2
Portfolio Income
Please note: The estimates in this report are based on current portfolio holdings and use assumptions derived from currently available data, and may fluctuate depending on market conditions,
portfolio activity and other factors. While the firm uses best efforts when compiling these projections, there is no guarantee that these estimates will be realized. Past performance is not indicative of
future results.
•If the current interest rate environment persists for an extended period,we expect investment portfolio interest income
to decrease.
•The long-term reserve strategy provides a near-term buffer to lower interest rates and falling portfolio earnings.
•Interest income may drop in FY 21-22 with the potential to drop further in future years,very difficult project that far
out.
Reserve Account Liquidity Account
Income Income Total
7/1/2018-6/30/2019 2,112,825 377,433 2,490,258
7/1/2019-6/30/2020 2,431,685 839,733 3,271,418
Projected FY 20-21 2,473,280 250,940 2,724,220
3
Source: US Department of Labor Source: US Department of Labor
Employment
-22,000
-18,000
-14,000
-10,000
-6,000
-2,000
2,000
6,000
10,000
MOM Change In (000's)Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)Rate (%)•Nonfarm payrolls have bounced back from the lows seen in April,with 4.8 million jobs added in June,beating
expectations of 3.2 million
•The unemployment rate decreased to 11.1%in June from 13.3%in May,still at a historically very high level
•The current unemployment rate may not be capturing the complete magnitude of the unemployment situation
4
Initial Claims for Unemployment
1,427 1,482 1,540 1,566 1,897 2,123 2,446 2,687 3,176 3,867 4,442 5,237
6,615
6,867
19,290 19,231
20,289 20,606 21,268 20,841
24,912 22,548 22,377
18,011
15,819
11,914
7,446
-
5,000
10,000
15,000
20,000
25,000
In thousandsInitial Jobless Claims
Continuing Claims
Initial Claims For Unemployment March 27, 2020 -June 26, 2020
Source: US Department of Labor
•Initial jobless claims and continuing claims provide weekly data points on the health of the labor market.
•The trajectory of both indicators are positive, but both are at historically very high levels.
5
Source: US Department of Commerce Source: US Department of Commerce
6/19 9/19 12/19 3/20
3.0% 2.1% 1.2% -4.7%
-1.2% -0.2% -1.1% -1.8%
-0.7% -0.1% 1.5% 1.3%
0.5% 0.2% 0.2% 0.1%
0.3% 0.1% 0.2% 0.1%
2.0% 2.1% 2.1% -5.0%
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and
Gross Investment)
Net Exports and Imports
Total
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
•First quarter GDP at -5.0%came in below expectations and showed COVID-19 was having a severe impact on the
economy before most shelter in place orders were mandated
•Bloomberg median estimate for second quarter GDP is -34.7%
•We expect third quarter GDP to be positive,but the magnitude of the positive reading is dependent on containing the
spread of COVID-19
6
Portfolio Characteristics
So San Francisco Mid-Term (Chandler) Portfolio
6/30/2020 3/31/2020
Benchmark*Portfolio Portfolio
Average Maturity (yrs)2.66 2.84 2.82
Average Modified Duration 2.55 2.56 2.52
Average Purchase Yield n/a 1.78%1.97%
Average Market Yield 0.20%0.42%1.04%
Average Quality**AAA AA/Aa1 AA/Aa1
Total Market Value 149,074,744 137,182,729
*ICE BAML 1-5 Yr US Treasury/Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of June 30, 2020
ABS
8.2%
Agency
33.1%
CMO
7.2%
Corporate
22.3%
Money Market
Fund FI
0.8%
Supranational
3.7%
US Treasury
24.7%
7
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
12 months 2 years 3 years 5 years 10 years Since Inception
So San Francisco Mid-Term (Chandler) Portfolio ICE BAML 1-5 Year US Treasury/Agency Index
Total Rate of Return Annualized Since Inception 03/31/2009
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since
Inception
So San Francisco Mid-Term (Chandler) Portfolio 1.40%5.14%5.04%3.31%2.51%1.93%2.13%
ICE BAML 1-5 Year US Treasury/Agency Index 0.30%5.21%5.04%3.22%2.30%1.83%1.94%
Total rate of return:A measure of a portfolio’s performance over time.It is the internal rate of return,which equates the beginning value of the portfolio with the
ending value;it includes interest earnings,realized and unrealized gains and losses in the portfolio.
Investment Performance
So San Francisco Mid-Term (Chandler) Portfolio
As of June 30, 2020
8
Important Disclosures
2020 Chandler Asset Management,Inc,An Independent Registered Investment Adviser.
Information contained herein is confidential.Prices are provided by IDC,an independent pricing source.In the event IDC does not provide a price or if the price provided is not reflective of fair market
value,Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in
Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of
dividends and other earnings.Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy
will be profitable or equal to past performance levels.All investment strategies have the potential for profit or loss.Economic factors,market conditions or changes in investment strategies,
contributions or withdrawals may materially alter the performance and results of your portfolio.
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.
Source ice Data Indices,LLC ("ICE"),used with permission.ICE permits use of the 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 representations,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 it at licensee's own risk.ICE data,its affiliates and their
respective third party do not sponsor,endorse,or recommend chandler asset management,or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice.The information contained herein was obtained from sources believed to be
reliable as of the date of publication,but may become outdated or superseded at any time without notice.Any opinions or views expressed are based on current market conditions and are subject to
change.This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results.Past performance is not indicative of
future results.This report is not intended to constitute an offer,solicitation,recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a
substitute for the exercise of their own judgment.
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.
Ratings information have been provided by Moody’s,S&P and Fitch through data feeds we believe to be reliable as of the date of this statement,however we cannot guarantee its accuracy.
Security level ratings for U.S.Agency issued mortgage-backed securities (“MBS”)reflect the issuer rating because the securities themselves are not rated.The issuing U.S.Agency guarantees the full and
timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P,Moody’s and Fitch respectively.
As of June 30, 2020
9
Benchmark Disclosures
ICE BAML 6-Month US Treasury Bill Index
The ICE BAML US 6-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month.At the end of the month that issue is sold and rolled into a
newly selected issue.The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to,but not beyond,three months from the rebalancing date.(Index:G0O2.
Please visit www.mlindex.ml.com for more information)
ICE BAML 1-5 Yr 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 1-3 Yr 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)
As of June 30, 2020
10