Investment Strategies - Third Quarter 2016

Deposit Insurance Fund

Strategy for the 3^rd Quarter 2016

Purchase up to $14 billion (par value) of Treasury securities with maturity dates between September 30, 2016, and September 30, 2021, subject to the following additional provisions: all newly purchased securities will be designated as available-for-sale; and no more than $2 billion (adjusted par value) of such securities shall consist of Treasury Inflation-Protected Securities.

Strategy Changes for 4^th Quarter 2016

Purchase up to $19 billion (par value) of Treasury securities with maturity dates between March 31, 2017, and December 31, 2021, subject to the following additional provisions: all newly purchased securities will be designated as available-for-sale; no more than $2 billion (adjusted par value) of such securities shall consist of Treasury Inflation-Protected Securities; and target at least $3 billion (par value) of newly purchased securities maturing in 2020 or 2021.

National Liquidation Fund

Strategy for 3^rd Quarter 2016

Maintain an overnight deposit target floor balance within a range of $100 million to $300 million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

Strategy Changes for 4^th Quarter 2016

No strategy changes for the fourth quarter of 2016.