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Maintaining a Stable Net Asset Value

The primary goal of FL SAFE is to maintain $1.00 per share Net Asset Value (NAV). No investment pool or money market fund can “guarantee” a NAV of $1.00 per share. Investing in any type of security introduces elements of risk. Among those risks are interest rate risk, liquidity risk and credit risk. In a local government investment pool like FL SAFE, the task of the investment advisor is to mitigate those risks so that participants and taxpayer dollars are protected.

$1.00 per Share NAV Goal

Portfolio securities are valued using the amortized cost method of valuation. This method involves valuing each investment at cost on the date of purchase and assuming a constant amortization to maturity of any discount or premium. Amortized cost valuation provides certainty in valuation, but may result in valuations that are higher or lower than the market price of a particular portfolio security. As a result, the Fund has implemented Pricing Procedures for Stable Value LGIPs, which require the portfolio to be priced at least weekly using a third-party pricing service. If the difference between the aggregate market value and the aggregate amortized cost of the portfolio securities exceeds 0.10%, key personnel at the investment advisor will be notified. If such difference exceeds 0.25%, the Fund’s Board will be notified and will consider what action, if any, should be initiated. If the market value remains between $0.9950 and $1.0050, transactions can be executed at $1.00 per share.

The Approach to Maintaining A AAAm Credit Rating

FL SAFE invests in high-quality short-term debt instruments and follows S&P’s credit rating requirements for credit quality, maturity, liquidity, diversification and internal controls. The Fund’s advisor has implemented risk management policies and procedures for purchasing and monitoring the Fund’s investments. Through these risk management techniques, including those required by S&P for a AAAm rated Net Stable Value Fund, FL SAFE seeks to maintain a NAV of $0.9975 or higher as required to achieve a AAAm rating. According to S&P’s rating criteria, the AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share Net Asset Value.

For a complete analysis of S&P rating methodology and the strategies employed to maintain a $1.00 NAV, view the S&P Fund Ratings Criteria document.

Variable NAV Fund

The FL SAFE Variable NAV Fund seeks to provide excess income over money market and deposit products while maintaining limited price volatility. FL SAFE Variable NAV invests in high quality fixed income investments with short term maturities around one year that are compliant with Florida State Statutes.

For more information:

FL SAFE Variable NAV Fact Sheet

For complete information about risks, expenses and other important facts associated with investing in the FL SAFE Variable NAV Fund, please contact your FL SAFE representative at 855-202-9650 or see the FL SAFE Information Statement available here.

Ratings Methodology:

S&P Fund Volatility Ratings
S&P Fund Credit Quality Ratings

Term Series

About the Term Series Product

The Board of Trustees of FL SAFE has authorized the creation of an unlimited number of investment pools called Term Series. Each Term Series will be comprised of statute allowable investments and will have a designated maturity between 30 days and 3 years. Key features of an investment in a Term Series are a fixed rate of return and a fixed maturity date. These characteristics make Term Series investments different from the FL SAFE Stable NAV Fund which has a fluctuating rate and no fixed maturity date. Participants may want to consider Term Series investments to meet a specific cash flow or investment need in their portfolio.

Portfolio Composition of a Term Series Pool

Investment shares in a Term Series represent a beneficial interest in the underlying instruments in the pool. The eligible investments in each pool may include bank deposit products, government securities, and municipal securities. With respect to bank deposits that may be included in a Term Series pool, the deposit amounts will be collateralized or insured. Each Term Series is unique and independent of all other Term Series, thus Participants should make sure that the specific Term Series they are considering meets their individual investment criteria and objectives.

Making Investments in Term Series Pools

Participants can contact Chandler Asset Management, Inc. to obtain additional information about the availability of Term Series pools. It is anticipated that new pools will be created on a regular basis with varying maturity dates. Participants may purchase Term Series pool shares by redeeming shares in their FL SAFE account or by depositing additional funds. Chandler Asset Management, Inc. serves as Investment Advisor to the Term Series.