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<br /> <br />Consulting Services Agreement between City of San Leandro and 7/1/2021 <br />Chandler Asset Management for Investment Services Exhibit F – Page 17 of 19 <br /> <br />MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and <br />operating expenses. <br /> <br />MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of <br />securities which is specifically defined in the fund’s prospectus. Mutual funds can be <br />invested in various types of domestic and/or international stocks, bonds, and money market <br />instruments, as set forth in the individual fund’s prospectus. For most large, institutional <br />investors, the costs associated with investing in mutual funds are higher than the investor <br />can obtain through an individually managed portfolio. <br /> <br />NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). <br />A credit rating agency that the Securities and Exchange Commission in the United States <br />uses for regulatory purposes. Credit rating agencies provide assessments of an <br />investment's risk. The issuers of investments, especially debt securities, pay credit rating <br />agencies to provide them with ratings. The three most prominent NRSROs are Fitch, <br />S&P, and Moody's. <br /> <br />NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings <br />or federal association, state or federal credit union, or state-licensed branch of a foreign <br />bank. Negotiable CDs are traded in a secondary market and are payable upon order to the <br />bearer or initial depositor (investor). <br /> <br />PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost <br />is above par. <br /> <br />PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage <br />securities. <br /> <br />PREPAYMENT WINDOW. The time period over which principal repayments will be received on <br />mortgage securities at a specified prepayment speed. <br /> <br />PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal <br />Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) <br />that participates for statistical reporting purposes in compiling data on activity in the U.S. <br />Government securities market. <br /> <br />PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to <br />fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, <br />skill, prudence and diligence, under the circumstances then prevailing, that a prudent <br />person, acting in a like capacity and familiar with such matters, would use in the conduct <br />of an enterprise of like character and with like aims to accomplish similar purposes.” <br /> <br />REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned <br />and realized gains and losses. It does not give effect to changes in market value on <br />securities, which have not been sold from the portfolio. <br />158