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 Arbitrage Rebate
The IFA Investment Management & Arbitrage Rebate Program links arbitrage rebate compliance and documentation services with investment management to ensure that compliance is a consideration in all
investment decisions and is not merely addressed at the time a payment is due to the Federal Government. The IFA Investment Management Program, through its Investment Manager, offers the following services:
Available Services
- Annual estimates of rebate liability
- Periodic exception compliance reports for funds eligible for the 18-month or 24-month expenditure exception from arbitrage rebate
- Yield restriction of funds which may not be invested above the bond yield
- Competitive bidding of all investments to establish compliance with the IRS’s market price rules
- Assistance in making any arbitrage payments and filing required forms with the U.S. Treasury Department
Scenario review
- Identifying all “gross proceeds”
- Evaluating available exceptions to arbitrage rebate and yield restriction
- Identifying any fees or interest rate swap cash flows that should be included in the arbitrage yield calculation
Exploration of Outcomes
- Calculating the arbitrage yield
- Calculating the arbitrage rebate and yield restriction liability
- Calculating the investment return of each fund
- Calculating the combined investment return for all funds
Services for Special Circumstances
- For variable rate bond issues, identifying the lowest liability by computing liabilities based on all available yield period combinations
- Performing allocation analysis for commingled funds
- Calculating transferred proceeds factors and allocations
- Reviewing compliance with the universal cap
- Evaluating alternative investment valuations
- Yield restriction monitoring services for synthetic fixed-rate issues
Reporting and Guidance
- Providing a summary of investment holdings and investment values
- Reporting the methodologies employed, major assumptions and our conclusions
- Preparing an IRS form 8038-T and providing filing instructions
- Assisting issuers in the event of an IRS inquiry
- Advising on arbitrage rebate compliance matters
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IllinoisPrime Shares are a class of the Prime Portfolio of the Commonwealth Cash Reserve Fund,
Inc. (the "Fund"). This information does not represent an offer to sell or a solicitation of
an offer to buy or sell any fund or other security in any jurisdiction, or for the benefit of
any person. Investors should consider the investment objective, risks, charges, and expenses
before investing in any of the Fund's portfolios. This and other information about the Fund
is available in the Fund's current Prospectus, which should be read carefully before investing.
A copy of the Fund's Prospectus may be obtained by calling 1-866-690-4432 or is available on the
Fund's website at
www.il-fa.com/bondproceeds. Although the Fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money by investing in the Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other governmental agency. Shares of the Fund are offered and distributed solely by
PFM
Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC.
Important Legal Information and Disclaimers Regarding This Website.
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