Kroll Bond Rating Agency Assigns AAAkf Fund Rating to Michigan Liquid Asset Fund Plus Michigan Term Portfolio

Kroll Bond Rating Agency (KBRA) has assigned a AAAkf Fund Rating to the
Michigan Liquid Asset Fund Plus Michigan Term Portfolio. The AAAkf
rating reflects the Michigan Term Portfolio’s Primary Quantitative
Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix,
which is based on the credit quality of the underlying instruments that
comprise the portfolio. Additionally, the fund rating is influenced by
the results of the qualitative assessment of the investment advisor, PFM
Asset Management LLC (PFMAM). The qualitative shadow rating (QSR) for
the fund was found to be strong.

The Michigan Liquid Asset Fund Plus (“MILAF+”) was created in May 1987.
MILAF+ is a trust organized under the laws of the State of Michigan. The
Trust is designed to be a comprehensive cash management program for
Michigan public agencies to seek the highest possible yield while
maintaining liquidity and preserving capital. Trust documents permit and
provide for the creation of specialized asset portfolios within the
MILAF+ structure. This allows MILAF+ to offer portfolios designed to
meet specific investment objectives and needs of those participating.
Currently, MILAF+ offers two portfolios: the MILAF+ Portfolio, which has
three share classes, including the Cash Management Class, MAX Class, and
GovMIC Class; and the Michigan Term Portfolio, which can have multiple
series with staggered maturity dates.

The Michigan Term Portfolio is a fixed rate investment with an
investment strategy designed to match the cash flow requirements of
investors with the cash flows from the portfolio. The Michigan Term
Portfolio investment objective is to provide an investment subject to
pre-set redemptions occurring from 60 days to one year that will produce
the highest earnings consistent with maintaining principal at maturity
and meeting the redemption schedule. There may be a penalty for early
withdrawal and the NAV may fluctuate prior to maturity.

To meet the investment objective, PFMAM must abide by certain investment
restrictions. The portfolios only purchase U.S. dollar denominated
instruments, and the investment advisor will invest in a security only
if they are satisfied that credit risk of that instrument is
appropriate. Permitted investments include, but are not limited to, U.S.
Government debt, repurchase agreements, commercial paper, obligations of
the State of Michigan, and bank obligations.

PFMAM is the investment advisor and a member of the PFM Group. The
Harrisburg, PA-based manager has been providing investment advice and
portfolio management services to a broad group of government and
not-for-profit organizations, corporations, pension funds and other
institutions since 1980. As of year-end 2016, PFMAM reported total
assets under management and advisement of $112.3 billion, with
discretionary assets under management representing $70.9 billion of that

The ratings are based on KBRA’s Global
Investment Funds Rating Methodology
published on August 10, 2016.

To read the full report, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a
Nationally Recognized Statistical Rating Organization (NRSRO). In
addition, KBRA is recognized by the National Association of Insurance
Commissioners (NAIC) as a Credit Rating Provider (CRP).

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