Accolade Investment Advisory, LLC (“Accolade”) is a wholly owned credit union service organization (“CUSO”) of Corporate One Federal Credit Union (“Corporate One”). Accolade registered as an investment adviser with the U.S. Securities and Exchange Commission in January 2008. Accolade’s clients are credit unions, banks, other financial institutions and members (owners) of Corporate One. Portfolio Management Accolade provides portfolio management to credit unions, banks and other financial institutions. Accolade’s services also include bond accounting, safekeeping and customized reporting packages. Initially, we analyze your portfolio objectives and constraints. Our analysis includes:
•Review and, if necessary, revision of your investment policy
•Determining available funds by analyzing current liquidity The initial analysis allows us to construct our recommendations for your portfolio with consideration of interest rate risk, varied economic and interest rate scenarios, credit and interest rate risk parameters and regulatory concerns. All advisory services are on a non- discretionary basis. Recommendations are primarily for the purchase and sale of fixed income securities. We research securities and their markets for the availability of investments that are appropriate to your needs. Once you approve our recommendations, we enter your orders and send you copies of tickets, confirmations, and documents used in investment analysis and recommendation. We also provide you with regulatory and management reports. Our portfolio management seeks to optimize the return on your excess liquidity, subject to the credit unions, banks and other financial institutions liquidity needs and balance sheet structure. Currently, Accolade’s preferred custodian for your securities is BNY Mellon (“BNY”). You will authorize the transfer of assets to BNY or the custodian of your choice to recompense the investment transaction(s). Additionally, you will authorize BNY, or the custodian of your choice, to act upon Accolade’s instructions as to the investment transactions of your account. Bond Accounting Our investment portfolio accounting provides the accounting needs for all your investments. The key features of our bond accounting are:
•Monthly

Reporting oAccounting entries for interest accruals and amortization/accretion oAccounting for MBS adjusted monthly according to prepayments oPrincipal and interest payment verification reports oReports organized by investment type and ASC 320 (FASB 115) category oGeneral ledger reconciliation reports oPortfolio Summary and Maturity Distribution reports oCash flow and budget projection reports oRegulatory reporting for credit unions oFair market values
•Quarterly Shock Test o-300 to +500 basis point shock oSummary reports show effect of rate changes on entire portfolio oReports by investment type and individual security oQuarterly Interest Rate and Bond Market Recap
•Year-to-date and Audit Reports oQuarterly recap of year-to-date purchases, sales, calls and maturities oYear to date amortization, accretion and interest accrued oRoll forward reporting (summary, investment type and security) oContractual Maturity Schedule oUnrealized Gain/Loss Summary Accounting entries may be mapped to your general ledger system providing seamless entry of investment information. Reporting In order to assist you in meeting your compliance obligations under Rule 703 or applicable state statues, our services include:
•Providing an initial and an annual investment policy statement to present to your board of directors for approval prior to implementing advisory services.

•Ensuring that the credit union, banks and other financial institutions is provided with a confirmation of each purchase and sale of securities.

•Providing pre-purchase analysis (and credit analysis if required) documentation on investments.

•Executing transactions with broker-dealers specifically approved by the credit unions, banks and other financial institutions board of directors.

•Valuing securities before a purchase or sale by obtaining quotations from an industry- recognized information provider or at least two broker-dealers.

•Providing monthly and quarterly reports of securities holdings in conformance with Rule 703.12 “Monitoring Securities”.
Assets Under Management As of December 31, 2023, Accolade managed $1,367,788,716 in credit unions’ securities portfolios on a non-discretionary basis. We do not manage portfolios on a discretionary basis.