Common use of Diversification and Concentration Clause in Contracts

Diversification and Concentration. Direct obligations of the U.S. Government are exempt from all diversification limits in these guidelines. · Obligations of each of the U.S. government agencies are limited to no more than 10% of the Collateral Account per issuer. This concentration limit does not apply to U.S. government agencies received as collateral for repurchase agreements. · Repurchase agreements are limited to the lesser of 25% or $250 million of the Collateral Account per counterparty, provided that such limit shall never be less than $1 million per counterparty. · Assets that are not U.S. Government Securities, Agency Debt, Agency RMBS, US Government Money Market Funds, or Repurchase Agreements are limited to no more than 70% of the Collateral Account. · Investments in Designated Funds are limited to no more than 5% of the Collateral Account in any one Designated Fund and 10% of the Collateral Account in aggregate for all Designated Funds combined. · Commercial Paper is limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · The Funds will provide and amend from time to time a list of prohibited programs, such as ones with only one dealer. · Notes, bonds, and other debt obligations are limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · Certificates of Deposit, time deposits, and other bank obligations are limited to the greater of 3% or $1 million per issuer, and is limited to no more than 50% of the Collateral Account. · Asset-Backed Commercial Paper is limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · Weighted Average Life (WAL) of the portfolio is limited to 120 days. For purposes of such calculation investments in Designated Funds shall have a life of 1 day. WAL is based on final maturity. · Weighted Average Maturity (WAM) is limited to 60 days. For purposes of such calculation investments in Designated Funds shall have a life of 1 day. WAM is based on the shorter of final maturity or days to reset for floating obligations. · Target 20% of the portfolio to overnight maturities. For purposes of this calculation investments in Designated Fund shall be an overnight maturity. · Illiquid Assets are not permitted. These are defined as repurchase agreements with a maturity greater than 99 days and time deposits having a maturity greater than 7 days. Repurchase agreements with a maturity at the time of purchase greater than 7 days, but no longer than 99 days are permitted up to 30% of the portfolio. This 30% limit would include evergreen repurchase agreements with a maturity of 99 days or less.

Diversification and Concentration. Direct obligations of the U.S. Government are exempt from all diversification limits in these guidelines. · • Obligations of each of the U.S. government agencies are limited to no more than 10% of the Collateral Account per issuer. This concentration limit does not apply to U.S. government agencies received as collateral for repurchase agreements. · • Repurchase agreements are limited to the lesser of 25% or $250 million of the Collateral Account per counterparty, provided that such limit shall never be less than $1 million per counterparty. · • Assets that are not U.S. Government Securities, Agency Debt, Agency RMBS, US Government Money Market Funds, or Repurchase Agreements are limited to no more than 70% of the Collateral Account. · • Investments in Designated Funds are limited to no more than 5% of the Collateral Account in any one Designated Fund and 10% of the Collateral Account in aggregate for all Designated Funds combined. · • Commercial Paper is limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · • The Funds will provide and amend from time to time a list of prohibited programs, such as ones with only one dealer. · • Notes, bonds, and other debt obligations are limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · • Certificates of Deposit, time deposits, and other bank obligations are limited to the greater of 3% or $1 million per issuer, and is limited to no more than 50% of the Collateral Account. · • Asset-Backed Commercial Paper is limited to the greater of 3% or $1 million per issuer, and is limited to no more than 30% of the Collateral Account. · • Weighted Average Life (WAL) of the portfolio is limited to 120 days. For purposes of such calculation investments in Designated Funds shall have a life of 1 day. WAL is based on final maturity. · • Weighted Average Maturity (WAM) is limited to 60 days. For purposes of such calculation investments in Designated Funds shall have a life of 1 day. WAM is based on the shorter of final maturity or days to reset for floating obligations. · • Target 20% of the portfolio to overnight maturities. For purposes of this calculation investments in Designated Fund shall be an overnight maturity. · • Illiquid Assets are not permitted. These are defined as repurchase agreements with a maturity greater than 99 days and time deposits having a maturity greater than 7 days. Repurchase agreements with a maturity at the time of purchase greater than 7 days, but no longer than 99 days are permitted up to 30% of the portfolio. This 30% limit would include evergreen repurchase agreements with a maturity of 99 days or less.