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Is there a maximum number of transactions?
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No, there is no limit to the number of transactions a Participant may execute with California CLASS Enhanced Cash.
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How can I become a California CLASS Enhanced Cash Participant?
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Current California CLASS Participants simply need to complete the Enhanced Cash Registration Form in order to begin investing.
Public agencies looking to invest in any of the California CLASS portfolios will first need to read the California CLASS Joint Exercise of Powers Agreement and complete the California CLASS Registration Packet. For more information, please contact the California CLASS Relationship Team to receive the necessary paperwork to get started.
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How do I make transactions?
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To invest in Enhanced Cash, California CLASS Participants must enter contributions through the Online Participant Portal. Withdrawn funds are available the business day after the transaction date that is entered in the online portal.
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Will I see my California CLASS Enhanced Cash account when I log in to the online portal?
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Yes, you will see your California CLASS Enhanced Cash account alongside your Californa CLASS Prime account. You may also view any reports, such as monthly statements, that are associated with your California CLASS Enhanced Cash account in the Documents section under the Accounts tab.
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Is there a minimum dollar amount required for a California CLASS Enhanced Cash investment?
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No, there is no minimum initial investment or ongoing minimum account balance to participate.
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Does Board oversight differ between California CLASS Prime and California CLASS Enhanced Cash?
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No, the California CLASS Board of Trustees administers and oversees all investment portfolios offered by California CLASS now and in the future.
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Does California CLASS Enhanced Cash seek to maintain a stable $1.00 net asset value (NAV)?
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Enhanced Cash will be a variable NAV fund managed to approximate a $10.00 transactional share price, calculating and publishing a fair value NAV on a daily basis. The California CLASS Enhanced Cash portfolio has designated a $10.00 transactional share price in order to clearly differentiate the portfolio from a traditional $1.00 stable NAV fund. While $0.50 and $2.00 are examples of other variable NAV strike prices, a $10.00 per share NAV is one of the most commonly used strike prices for variable NAV funds.
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Which of my funds are best suited for investment with California CLASS Enhanced Cash?
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The Enhanced Cash fund offers next-day liquidity and is suitable for non-operating dollars and strategic reserves that a public agency would not anticipate withdrawing for 12 to 18 months.
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What types of securities are purchased for California CLASS Enhanced Cash?
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All investments made on behalf of California CLASS Enhanced Cash will comply with the provisions of the California CLASS Enhanced Cash Investment Policy and California Government Code relating to the investment of public funds; investment funds may only be invested in a manner that is permitted pursuant to California Government Code Section 53601. For a complete list of eligible investments for California CLASS Enhanced Cash, please contact the California CLASS Relationship Team.
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Is California CLASS Enhanced Cash rated?
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Yes, the California CLASS Enhanced Cash portfolio is rated ‘AAAf/S1’ by FitchRatings.
The ‘AAAf’ rating is Fitch’s opinion on the overall credit profile within a fixed-income fund/portfolio and indicates the highest underlying credit quality of the pool’s investments. The ‘S1’ volatility rating is Fitch’s opinion on the relative sensitivity of a portfolio’s total return and/or net asset value to assumed changes in credit spreads and interest rates. The ‘S1’ volatility rating indicates that the fund possesses a low sensitivity to market risks. For a full description of rating methodology, please visit www.fitchratings.com. Ratings are subject to change and do not remove credit risk.
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What are the investment objectives of California CLASS Enhanced Cash?
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The general objective of the Enhanced Cash Fund is to generate additional investment income for the Participants while maintaining safety and liquidity. The Enhanced Cash Fund seeks to outperform the yields generated by the Prime Fund by taking modest interest rate and liquidity risk and maintaining similar credit risk while preserving capital by investing only in securities that comply with the requirements of California law, specifically California Government Code Section 53601.