Disciplined, risk-focused approach to analyzing market opportunities

Overview

Liquidity

Custom

Broad Market

Solutions Defined by Your Objectives

We partner with our clients to address their specific investment objectives and define the role of fixed income in their portfolio.

Liquidity Solutions

Pursue yield and return goals while also managing the cadence of cash flows

Example solutions

Cash management

Ultra-Short Duration

Short-Term Income

Custom Fixed Income

Investment solutions tailored to client-specific needs and objectives

Example solutions

Sector/Issuer/Quality Restrictions
(e.g., Socially Responsible)

Duration/Yield Objectives
(e.g., Liability-Hedging, Insurance)

Broad Market Strategies

Traditional fixed income strategies with benchmark-based objectives for total return

Example solutions

Short Duration 1-3 Year

Government/Credit

Core

Assets Under Management

by Strategy

Liquidity

Liability-Hedged/ Insurance

Ultra Short/ Short Duration

Other Custom

Intermediate Duration

Core/
Core Plus

by Client Type

Public

Corporate

Insurance

Healthcare

Nonprofit

Taft Hartley

Other

As of March 31, 2021

Investment Process Continuity

We strive to provide our clients with an investment experience that minimizes undue performance volatility.

Underpinning all investment strategies are four key process elements that work together to balance risk and return objectives.

Opportunistic Sector Allocation

We frame relative value across a matrix of more than 50 market subsectors using historical excess returns and volatility.

Security Selection Integrity

Research teams partner with portfolio managers to evaluate sectors, issuers, and securities using a consistent Fundamentals-Valuation-Tactics framework.

Dynamic Position Limits Based on Duration

The concepts of contribution to duration and duration times spread provide a common lens to evaluate relative risk and potential volatility.

Ongoing Quantitative Analysis

We seek to ensure primary dimensions of risk (key rates, sector, issuer/securities) are consistent across each strategy.

Solving For Unique Liquidity Objectives

Our clients have both routine and unpredictable cash flows; we can design a portfolio based on their specific liquidity objectives.

We seek to balance client yield objectives with risk tolerances, while considering operating, reserve, and strategic cash needs.

Operating Cash

Short-term operating expenses
Zero tolerance for loss and interest rate risk
Easy access (same-day settlement)

Reserve Cash

For intermediate-term obligations & unexpected expenses
Low risk tolerance, sensitive to realized gains and losses
Access to majority of cash with timely settlement

Strategic Cash

Intermediate-term obligations
Moderate risk tolerance, with emphasis on higher
yielding securities
Access to cash determined by client liquidity needs

Operating Cash

Short-term operating expenses
Zero tolerance for loss and interest rate risk
Easy access (same-day settlement)

Reserve Cash

For intermediate-term obligations & unexpected expenses
Low risk tolerance, sensitive to realized gains and losses
Access to majority of cash with timely settlement

Strategic Cash

Intermediate-term obligations
Moderate risk tolerance, with emphasis on higher
yielding securities
Access to cash determined by client liquidity needs

Portfolio Composition Determined by Goals and Risk Tolerance

Portfolio managers, traders, credit analysts, and quantitative analysts collaborate to construct clients’ portfolios within a strategic framework.

Opportunistic sector allocation is a key focus of our process.

Capital Preservation

Example investments

U.S. Treasury/Agency
Asset-Backend Securities
A-1/P-1 Commercial Paper

Liquidity

Example investments

U.S. Treasure/Agency
A-1/P-1 Commercial Paper
High-quality Credit

Yield Seeking

Example investments

BBB Credit
Floating-rate Notes
A-2/P-2 Commercial Paper

Select a strategy

Enhanced Cash

Short Term Income

Ultra Short

Enhanced Cash

Strategy Description

The Enhanced Cash strategy seeks liquidity, capital preservation, and current income.

The strategy typically invests in obligations issued or guaranteed by the U.S. government or its agencies, cash equivalents, and/or short-term corporate obligations.

Assets Under Management

$13,484M

Inception

12/31/2002

Benchmark

ICE BofAML US 3-Month Treasury Bill Index

Download Factsheet

Investment Team

Keith L. Erwin

Portfolio Manager

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Industry Experience: 24 years

Education: BA, Alma College; MA, Western Michigan University

Keith is a portfolio manager for liquidity solutions and cash management strategies. He also has significant experience in credit research and custom portfolio management. Prior to joining the firm in 1998, Keith was a credit analyst with First of America Bank. Keith earned a Bachelor of Arts degree from Alma College and a Master of Arts degree from Western Michigan University.

Kelley K. Peel, CFA

Portfolio Manager

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Industry Experience: 22 years

Education: BS, Salisbury University; MBA, Loyola University Maryland

Kelley is a portfolio manager for the firm's cash management and short-term income strategies. Prior to joining the firm in 2000, she was a portfolio service associate with Legg Mason Wood Walker, Inc. Kelley earned a Bachelor of Science degree in finance and economics from Salisbury University and an MBA in finance from Loyola University Maryland. She is a CFA^® charterholder.

Sean T. Rhoderick, CFA

Chief Investment Officer

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Industry Experience: 26 years

Education: BBA, James Madison University

Sean is managing director and chief investment officer of PNC Capital Advisors. Drawing on his extensive experience in fixed income research and portfolio management, he leads the team's overall investment strategy and process and directs the implementation of these ideas across the firm's investment solutions. Prior to joining the firm in 2004, Sean spent six years at Freddie Mac in credit research and four years as a bank credit analyst at the rating agency LACE Financial Corporation (now Kroll Bond Rating Agency). Sean graduated cum laude from James Madison University with a Bachelor of Business Administration degree. He is a CFA^® charterholder and serves on the Baltimore CFA Society's Board of Directors.

Richard J. Stevenson

Portfolio Manager

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Industry Experience: 25 years

Education: BA, Baldwin-Wallace College; MBA, Baldwin-Wallace College

Rick is lead portfolio manager for the firm's liquidity solutions and cash management strategies. Prior to joining the firm in 2002, he was with Productive Portfolios, Inc. where he focused on short duration/liquidity portfolio management for Ohio public sector clients. Additionally, he has experience as a corporate lending representative with Fifth Third Bank in Cleveland. Rick joined the firm in 2002 and holds both a Bachelor of Arts degree and an MBA from Baldwin-Wallace College.

Short Term Income

Strategy Description

The Short Term Income strategy seeks capital preservation, liquidity, and income in excess of money market funds.

The strategy typically invests in commercial paper, floating-rate and fixed-rate short-term corporate bonds, as well as AAA-rated asset-backed securities.

Assets Under Management

$564M

Inception

03/31/2014

Benchmark

ICE BofAML 3-6 Mo U.S. Treasury Bill Index

Download Factsheet

Investment Team

Keith L. Erwin

Portfolio Manager

READ BIO

Industry Experience: 24 years

Education: BA, Alma College; MA, Western Michigan University

Kelley K. Peel, CFA

Portfolio Manager

READ BIO

Industry Experience: 22 years

Education: BS, Salisbury University; MBA, Loyola University Maryland

Sean T. Rhoderick, CFA

Chief Investment Officer

READ BIO

Industry Experience: 26 years

Education: BBA, James Madison University

Richard J. Stevenson

Portfolio Manager

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Industry Experience: 25 years

Education: BA, Baldwin-Wallace College; MBA, Baldwin-Wallace College

Ultra Short

Strategy Description

The Ultra Short Duration strategy seeks income stability, capital preservation, and liquidity, with a goal of delivering superior risk-adjusted returns versus the benchmark.

The strategy typically invests in investment-grade corporate bonds, commercial paper, AAA-rated asset-backed securities, and U.S. Treasury bonds.

Assets Under Management

$585M

Inception

12/31/2002

Benchmark

ICE BofAML 1-Year U.S. Treasury Index

Download Factsheet

Investment Team

Mark A. Lozina, CFA

Senior Portfolio Manager

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Industry Experience: 25 years

Education: BS, State University of New York at Geneseo; MBA, University of Rochester

Mark is lead portfolio manager for short duration strategies and is also the head of structured product research. Prior to joining the firm in 2002, he was with National City Corporation's Equity Sponsor Group, involved with senior debt lending for equity buyouts. Mark earned a Bachelor of Science degree from the State University of New York at Geneseo and an MBA from the University of Rochester. He is a CFA^® charterholder.

Richard P. Mears, CFA

Senior Portfolio Manager

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Industry Experience: 24 years

Education: BS, Miami University (Ohio); MBA, Case Western Reserve University

Rich leads the team's high yield strategy efforts across the firm's investment solutions, partnering with other portfolio managers and analysts to implement high yield securities in their portfolios. He also serves as co-portfolio manager for short-duration strategies and as a credit analyst specializing in oil & gas pipelines. He joined the firm in 2004 after seven years as a financial analyst with National City Corporation's Institutional Asset Management division. Rich earned a Bachelor of Science degree from Miami University (Ohio) and an MBA from Case Western Reserve University. He is a CFA^® charterholder.

Sean T. Rhoderick, CFA

Chief Investment Officer

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Industry Experience: 26 years

Education: BBA, James Madison University

Composite Investment Results

Enhanced Cash Composite Gross of Fees Return (%)
QTD	0.04
YTD	0.04
1 Year	0.45
3 Year*	1.64
5 Year*	1.35
Since Inception*	1.05

Enhanced Cash Composite Net of Fees Return (%)
QTD	0.00
YTD	0.00
1 Year	0.30
3 Year*	1.49
5 Year*	1.20
Since Inception*	0.91

ICE BofAML US 3 Mo Treasury Bill Index Benchmark Return (%)
QTD	0.03
YTD	0.03
1 Year	0.12
3 Year*	1.49
5 Year*	1.19
Since Inception*	0.90

Enhanced Cash Composite Gross of Fees Return (%)
2020	0.86
2019	2.42
2018	1.98
2017	1.02
2016	0.57
2015	0.19
2014	0.06

Enhanced Cash Composite Net of Fees Return (%)
2020	0.71
2019	2.27
2018	1.83
2017	0.87
2016	0.42
2015	0.05
2014*	-0.01

IICE BofAML US 3 Mo Treasury Bill Index Benchmark Return (%)
2020	0.67
2019	2.28
2018	1.87
2017	0.86
2016	0.33
2015	0.05
2014	0.03

Composite Investment Results

Short Term Income Gross of Fees Return (%)
QTD	0.07
YTD	0.07
1 Year	1.79
3 Year*	2.05
5 Year*	1.73
Since Inception*	1.39

Short Term Income Net of Fees Return (%)
QTD	0.03
YTD	0.03
1 Year	1.64
3 Year*	1.90
5 Year*	1.58
Since Inception*	1.24

ICE BofAML 3-6 Mo US Treasury Bill Index Benchmark Return (%)
QTD	0.04
YTD	0.04
1 Year	0.14
3 Year*	1.64
5 Year*	1.29
Since Inception*	0.96

*These are annualized numbers

Short Term Income Gross of Fees Return (%)
2020	1.42
2019	2.90
2018	2.13
2017	1.38
2016	1.09
2015	0.51
2014	0.26

Short Term Income Net of Fees Return (%)
2020	1.27
2019	2.75
2018	1.98
2017	1.23
2016	0.94
2015	0.36
2014*	0.15

ICE BofAML 3-6 Mo US Treasury Bill Index Benchmark Return (%)
2020	0.87
2019	2.44
2018	1.93
2017	0.85
2016	0.46
2015	0.12
2014	0.08

*Represents return from 6/30/14 (data of inception) through 12/31/14.

Composite Investment Results

Ultra Short Duration Fixed Income Gross of Fees Return (%)
QTD	0.05
YTD	0.05
1 Year	2.08
3 Year*	2.57
5 Year*	1.92
Since Inception*	2.13

Ultra Short Duration Fixed Income Net of Fees Return (%)
QTD	0.00
YTD	0.00
1 Year	1.88
3 Year*	2.37
5 Year*	1.72
Since Inception*	1.93

ICE BofAML 1 Yr US Treasury Index Benchmark Return (%)
QTD	0.07
YTD	0.07
1 Year	0.17
3 Year*	2.14
5 Year*	1.52
Since Inception*	1.67

*These are annualized numbers

Ultra Short Duration Fixed Income Gross of Fees Return (%)
2020	2.40
2019	3.42
2018	1.96
2017	1.15
2016	1.14
2015	0.50
2014*	0.38

Ultra Short Duration Fixed Income Net of Fees Return (%)
2020	2.20
2019	3.21
2018	1.76
2017	0.94
2016	0.93
2015	0.30
2014*	0.18

ICE BofAML 1 Yr US Treasury Index Benchmark Return (%)
2020	1.82
2019	2.93
2018	1.86
2017	0.57
2016	0.76
2015	0.15
2014*	0.18

*Represents return from 6/30/14 (data of inception) through 12/31/14.

As of 3/31/21. Source: Advent Portfolio Exchange® (APX). Performance returns are presented gross and net of fees and include the reinvestment of all income. Gross of fee performance returns do not reflect the payment of investment advisory fees and other expenses related to your account. Actual returns will be reduced by the advisory fee specific to your account and other expenses that may be incurred in the management of the account. Please refer to our GIPS®-compliant presentation, which includes additional disclosures. Past performance is no guarantee of future results.

Custom Solutions

We collaborate to address a range of needs, from investment portfolio objectives to more
complex, specialized solutions.

Solve for corporate and institutional business challenges

Tailor exposures to align with risk tolerances

Target certain portfolio characteristics

Customization Examples

Sector / Issuer / Quality

Refine portfolio strategy to align with desired characteristics
(e.g. Responsible Investing)

Tax-Managed

Maximize after-tax income; tax gain or loss harvesting

Liability-Hedging

Minimize variability between duration profile of liabilities and investment portfolio

Insurance Asset Pools

Portfolios constructed to specific risk/yield objectives and regulatory quality and liquidity parameters

Distributions

Customized cash portfolios with maturities matched to scheduled disbursement dates

Maturity / Duration

Portfolio strategy focused on particular areas of the yield curve

Team

Cynthia D. Cole, FMLI, ACS

Senior Portfolio Manager

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Industry Experience: 36 years

Education: BS, Trine University; MBA, Xavier University

Cindy is lead portfolio manager for the insurance and custom strategies. She has extensive investment experience, including positions in insurance company portfolio management, research, and portfolio strategy. Prior to joining the firm in 1999, she was senior vice president and portfolio manager for Ohio Casualty Group (now owned by Liberty Mutual). Cindy earned a Bachelor of Science degree from Trine University and an MBA from Xavier University. Additionally, she holds the Fellow, Life Management Institute (FMLI) and the Associate, Customer Service (ACS) designations.

Melvin P. Fernandes

Portfolio Manager

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Industry Experience: 22 years

Education: BS, Cleveland State University; MBA, John Carroll University

Mel is a portfolio manager responsible for the insurance and custom strategies. He also has extensive investment experience in fixed income security analysis, particularly in the structured products area. Prior to joining the firm in 2001, Mel served as a derivative securities analyst with National City Corporation, focused on portfolio structure, fixed income analytics, and optimization. Mel earned a Bachelor of Science degree from Cleveland State University and an MBA from John Carroll University.

John Graziani, CFA

Senior Portfolio Manager

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Industry Experience: 14 years

Education: BBA, University of Notre Dame; MBA, University of Chicago

John is lead portfolio manager for the long duration strategies and also leads the firm's Quantitative & Risk Analytics team. Prior to joining the firm in 2015, John served as a senior analyst managing corporate merger and divestiture transactions for various business units within PNC Financial Services Group. Previously, he served as a senior auditor at Ernst & Young. John graduated magna cum laude with a Bachelor of Business Administration degree in accounting from the University of Notre Dame and he earned an MBA in finance, economics, and strategy from the University of Chicago Booth School of Business. He is a CFA^® charterholder.

Sean T. Rhoderick, CFA

Chief Investment Officer

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Industry Experience: 26 years

Education: BBA, James Madison University

Nathan L. Willi, CFA

Portfolio Analyst

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Industry Experience: 9 years

Education: BA, University of Michigan

Nathan is a portfolio analyst responsible for providing credit security analysis and idea generation for custom insurance and liability-hedging strategies. He also supports firm-wide credit research efforts, specializing in diversified manufacturing and energy companies. Nathan joined PNC 2013, serving as a financial advisor with PNC Investments and later as an analyst with the Institutional Asset Management group. Previously, he served as a financial advisor with Morgan Stanley Smith Barney. Nathan earned a Bachelor of Arts degree in economics from the University of Michigan. He is a CFA^® charterholder.

Broad Market Portfolios

We offer a suite of strategies with total return objectives oriented toward standard fixed income benchmarks. We apply the same key principles and investment process across all strategies.

Higher Volatility

Sector Factors

Lower Volatility

Interest Rate Factors

Higher Volatility

Core

Strategies

$947M

Assets Under Management

Intermediate

Strategies

$1.9B

Assets Under Management

Short Duration

Strategies

$4.0B

Assets Under Management

As of March 31, 2021

Investment Process

Our portfolio strategy follows a team-oriented, disciplined, top-down investment process.

Risk Management

Formulate Market Outlook

Assess economic environment

Develop market thesis

Determine Sector/Industry Exposure

Evaluate sector and subsector outlook

Contemplate relative value opportunities

Conduct Security Analysis

Perform fundamental and structural analysis

Consider risk-reward profile

Construct Portfolio

Quantify appropriate risk attributes

Select securities consistent with macro outlook

Verify portfolio strategic intent

Select a strategy

Short Term Income

Ultra Short

Short Duration 1-3 Year

Short Duration 1-5 Year

Intermediate Government/Credit

Intermediate Aggregate

Core

Core Plus

Short Term Income

Strategy Description

The Short Term Income strategy seeks capital preservation, liquidity, and income in excess of money market funds.

The strategy typically invests in commercial paper, floating-rate and fixed-rate short-term corporate bonds, as well as AAA-rated asset-backed securities.

Assets Under Management

$564M

Inception

03/31/2014

Benchmark

ICE BofAML 3-6 Mo U.S. Treasury Bill Index

Download Factsheet

Investment Team

Keith L. Erwin

Portfolio Manager

READ BIO

Industry Experience: 24 years

Education: BA, Alma College; MA, Western Michigan University

Kelley K. Peel, CFA

Portfolio Manager

READ BIO

Industry Experience: 22 years

Education: BS, Salisbury University; MBA, Loyola University Maryland

Sean T. Rhoderick, CFA

Chief Investment Officer

READ BIO

Industry Experience: 26 years

Education: BBA, James Madison University

Richard J. Stevenson

Portfolio Manager

READ BIO

Industry Experience: 25 years

Education: BA, Baldwin-Wallace College; MBA, Baldwin-Wallace College

Ultra Short

Strategy Description

The Ultra Short Duration strategy seeks income stability, capital preservation, and liquidity, with a goal of delivering superior risk-adjusted returns versus the benchmark.

The strategy typically invests in investment-grade corporate bonds, commercial paper, AAA-rated asset-backed securities, and U.S. Treasury bonds.

Assets Under Management

$585M

Inception

12/31/2002

Benchmark

ICE BofAML 1-Year U.S. Treasury Index

Download Factsheet

Investment Team

Mark A. Lozina, CFA

Senior Portfolio Manager

READ BIO

Industry Experience: 25 years

Education: BS, State University of New York at Geneseo; MBA, University of Rochester

Richard P. Mears, CFA

Senior Portfolio Manager

READ BIO

Industry Experience: 24 years

Education: BS, Miami University (Ohio); MBA, Case Western Reserve University

Sean T. Rhoderick, CFA

Chief Investment Officer

READ BIO

Industry Experience: 26 years

Education: BBA, James Madison University

Short Duration 1-3 Year

Strategy Description

The Short Duration 1-3 Year strategy seeks income stability, capital preservation, and liquidity, with a goal of delivering competitive risk-adjusted returns versus the benchmark.

The strategy typically invests in investment-grade corporate bonds, mortgage-backed securities, AAA-rated asset-backed securities, and U.S. Treasury bonds.

Assets Under Management

$2,228M

Inception

12/31/1994

Benchmark

ICE BofAML 1-3 Yr US Corp & Govt Index

Download Factsheet

Investment Team

Mark A. Lozina, CFA

Senior Portfolio Manager

READ BIO

Industry Experience: 25 years

Education: BS, State University of New York at Geneseo; MBA, University of Rochester

Richard P. Mears, CFA

Senior Portfolio Manager

READ BIO

Industry Experience: 24 years

Education: BS, Miami University (Ohio); MBA, Case Western Reserve University

Sean T. Rhoderick, CFA

Chief Investment Officer

READ BIO

Industry Experience: 26 years

Education: BBA, James Madison University

Short Duration 1-5 Year

Strategy Description

The Short Duration 1- 5 Year strategy seeks income stability, capital preservation, and liquidity, with a goal of delivering competitive risk adjusted returns versus the benchmark.

The strategy typically invests in investment grade corporate bonds, mortgage-backed securities, AAA-rated asset-backed securities, and U.S. Treasury bonds.

Assets Under Management

$1,170M

Inception

12/31/1994

Benchmark

ICE BofAML 1-5 Yr US Corp & Govt Index

Download Factsheet

Investment Team

Kelly Guerrier, CFA

Senior Risk Analyst
Assistant Portfolio Manager

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Industry Experience: 17 years

Education: BSBA, University of Pittsburgh; MBA, Washington University in St. Louis

Kelly is a senior risk analyst, responsible for verifying and monitoring the key risk attributes of the firm's investment strategies. He also serves as a structured product analyst and assistant portfolio manager for custom short duration strategies. He joined the firm in 2010 following his role as an analyst with PNC's distressed consumer-mortgage portfolios. His prior industry experience includes roles as a portfolio assistant at Brown Brothers Harriman and a research analyst at Interactive Data Corp. Kelly earned a Bachelor of Science in Business Administration degree from the University of Pittsburgh and an MBA from Washington University in St. Louis. He is a CFA^® charterholder.

Jeffrey Neer, CFA

Client Portfolio Manager

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Industry Experience: 20 years

Education: BS, University of Delaware; MBA, Loyola University Maryland

As a client portfolio manager, Jeff acts as a liaison between the portfolio management teams and clients, relationship managers, and business development officers. Additionally, he participates in the development and communication of client and marketing content. Jeff is also lead portfolio manager for custom short duration strategies. Prior to joining the firm in 2016, Jeff served as a fixed income portfolio manager with Wilmington Trust Investment Advisors. Jeff earned a Bachelor of Science degree in accounting from the University of Delaware and an MBA from Loyola University Maryland. He is a CFA^® charterholder.

Sean T. Rhoderick, CFA

Chief Investment Officer

READ BIO

Industry Experience: 26 years

Education: BBA, James Madison University

Investment Solutions

Related Insight

Quarterly Perspectives 3Q20

Solutions Defined by Your Objectives

Liquidity Solutions

Example solutions

Custom Fixed Income

Example solutions

Broad Market Strategies

Example solutions

Assets Under Management

by Strategy

by Client Type

Investment Process Continuity

Opportunistic Sector Allocation

Opportunistic Sector Allocation

Security Selection Integrity

Security Selection Integrity

Dynamic Position Limits Based on Duration

Dynamic Position Limits Based on Duration

Ongoing Quantitative Analysis

Ongoing Quantitative Analysis

Solving For Unique Liquidity Objectives

Operating Cash

Reserve Cash

Strategic Cash

Operating Cash

Reserve Cash

Strategic Cash

Portfolio Composition Determined by Goals and Risk Tolerance

Capital Preservation

Example investments

Liquidity

Example investments

Yield Seeking

Example investments

Select a strategy

Enhanced Cash

Strategy Description

Assets Under Management

$13,484M

Inception

12/31/2002

Benchmark

ICE BofAML US 3-Month Treasury Bill Index

Investment Team

Short Term Income

Strategy Description

Assets Under Management

$564M

Inception

03/31/2014

Benchmark

ICE BofAML 3-6 Mo U.S. Treasury Bill Index

Investment Team

Ultra Short

Strategy Description

Assets Under Management

$585M

Inception

12/31/2002

Benchmark

ICE BofAML 1-Year U.S. Treasury Index

Investment Team

Composite Investment Results

Composite Investment Results

Composite Investment Results

Custom Solutions

Specialized Solutions

InvestmentPortfolio Solutions

Specialized Solutions

InvestmentPortfolio Solutions

Customization Examples

Sector / Issuer / Quality

Sector / Issuer / Quality

Tax-Managed

Tax-Managed

Liability-Hedging

Liability-Hedging

Insurance Asset Pools

Specialized
Solutions

Investment
Portfolio Solutions

Specialized
Solutions

Investment
Portfolio Solutions