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06-30-2011 VNPB Investment Performance ReviewInvestment Advisors Steven Alexander, CTP, CGFO, Managing Director Mel Hamilton, Senior Managing Consultant David Jang, CTP, Senior Managing Consultant Gregg Manjerovic, CFA, Portfolio Manager Rebecca Dole, CTP, Consultant Village of North Palm Beach Investment Performance Review Quarter Ended June 30, 2011 ■-' North a PFM Asset Management LLC 300 S. Orange Avenue, Suite 1170 One Keystone Plaza, Suite 300 Orlando, FL 32801 North Front & Market Streets (407) 648 -2208 Harrisburg, PA 17101 -2044 (407) 648 -1323 fax 717 - 232 -2723 717 - 233 -6073 fax Village of North Palm Beach Investment Report - Quarter Ended June 30, 2011 Table of Contents Tab I. Section A Market Review Tab II. Section A Quarterly Summary Report Section B Investment Portfolio & Performance Section C Asset Allocation Chart as of June 30, 2011 Tab III. June 30, 2011 PFM Month -End Statement (statements are available online at www.pfm.com) This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. 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Orange Avenue, Ste. 1170 Orlando, FL 32801 (407) 648 -2208. 800 Yes -2 -PFM • f7\ •iii• •ri a• „ rr � David Jang, CTP Greg Babiarz Melissa Lindman ! ,1• •i ••iiii► i• ii►►• fl• i Author Analyst Editor www.pfm.com Steven Alexander, CTP, CGFO Managing Director "Raise the Roof!" f r I Source: gocomics.com 76-7F-F map on © 2011 PFM Asset Management LLC 1 Greek Debt Crisis Eased... For Now • Greece is set to receive up to $124 billion in aid after Prime Minister George Papandreou was able to push through 78 billion Euros of budget cuts and revenue measures on June 30t" • The country continues to be plagued by protests and riots as workers demonstrate against increasingly strict austerity measures. • The Euro surged to a three -week high on the news and markets all over the world were buoyed by the positive outcome. • Greece remains Europe's most indebted country with its debt at 150% of its yearly output. Greek debt is currently the world's lowest rated according to Standard & Poor's. -/%AAA r%r R11 A 1111 - L 1 1 P% � LW 1 1 1 1 IYI A L IYI GI IG%J. �illl�il IL LLV Source: Bloomberg The IEA Unexpectedly Releases Oil Stocks • The International Energy Agency announced on June 23rd that IEA members will release 60 million barrels of oil from strategic reserves over 30 days beginning on July 1 st, to curb high prices and make up for the Libyan production shortfall caused by unrest in the country. Oil prices dropped 8% in response. Former U.S. Vice President Dick Cheney described such a release as a "nuclear option," one that would almost never be used. Analysts warn that prolonged intervention could backfire and disturb the world's balance of oil supply and demand. 1 -Month Future Oil Contract Price January 1, 2011 — July 1, 2011 Mar'11 Apr'11 May'11 Jun'11 Jul'11 © 2011 PFM Asset Management LLC 3 120 110 m ca m100 -------------------------------------- CL v a 90 - - - -- ---- - - - - -- 80 70 Jan '11 Feb '11 Source: Bloomberg; Financial Times 1 -Month Future Oil Contract Price January 1, 2011 — July 1, 2011 Mar'11 Apr'11 May'11 Jun'11 Jul'11 © 2011 PFM Asset Management LLC 3 Personal Income Growth Below Analyst Expectations Personal Income rose 0.3% in May, lower than analyst projections of 0.4 %, but in line with the previous month's growth. Income was softened by no month - over -month change in the government wages subcomponent. Personal spending weakened in May, posting no change from the previous month. Lower car sales and a dip in gasoline prices were largely to blame for the dip. These unimpressive results add credence to the idea that the economy is slowing, but many market observers, including the Federal Reserve, believe the slow -down is only transitory. 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% -0.25% Personal Income and Outlays May 2010 — May 2011 May'10 Sep'10 Jan'11 May'11 Personal Income MoM Personal Spending MoM Personal income includes wages and salaries, fringe benefits such as employer contributions of private pension plans, proprietors' income, income from rent, dividends and interest and transfer payments less contributions for social insurance. Personal outlays include consumption expenditures, interest payments, and transfer payments. Consumption expenditures make of a major portion of outlays and give an advanced indication of the quarterly consumption component of GDP. © 2011 PFM Asset Management LLC �4 Source: Bloomberg Consumer Sentiment Falls Slightly • Pessimism over current economic conditions, driven by continued high joblessness and a perceived slowdown of the economic recovery, brought Consumer Sentiment down to 71.3 from June's initial reading of 71.8. Unfortunately, the weakness of the report centered around the leading component — future economic expectations — which declined to 64.8, two points lower than mid - month's reading. 110 W919] .9 :E 70 C0i7 University of Michigan Consumer Sentiment June 2001 — June 2011 50 Jun '01 Jun '03 Jun '05 Jun '07 Jun '09 Current Level 10 Yr. Average The University of Michigan's Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. © 2011 PFM Asset Management LLC Source: Bloomberg Jun '11 Manufacturing Surprises To The Upside • ISM Manufacturing rose to 55.3, rebounding from the 2011 low reached in May, and eclipsing analyst estimates of 52.0. However, the headline number is misleading: a strong rise in inventories overstates the Index's gains. The orders subcomponent — considered the best gauge of manufacturing — only rose by 0.6 from May's 51.0. The stock market responded positively to this release as investors began to feel more confident about an improving global economy. NO 0 0 We a� c� 0 U 30 ISM Manufacturing Composite Index June 2007 — June 2011 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09 Dec'09 Jun'10 Dec'10 Jun'11 ISM manufacturing is created from a qualitative survey of manufacturing firms covering new orders, production, employment, supplier deliveries, and inventories. Historically, readings of 50 or above are associated with an expanding manufacturing sector and healthy GDP growth. Readings below 50 indicate a contracting manufacturing sector, but GDP growth is still positive until the ISM index falls below 42.7. © 2011 PFM Asset Management -E Source: Bloomberg 2 -Year U.S. Treasury Rebounds After 11 Weeks of Yield Decline • The 2 -year U.S. Treasury yield finished Friday at 0.49 %, 16 basis points (0.16 %) higher than the previous week's all - time low of 0.331 %. The rally was fueled by the successful passage of austerity measures in Greece, which secured up to $124 billion in aid for the country. In addition, Friday's ISM Manufacturing report was significantly better than expected. In response to this good news, investors moved their money from safe haven investments like Treasuries to more risky assets like domestic equity, driving yields higher. 1.0% 0.9% 0.8% -- - - - - -- 0.7% --------- - - - - -- 0.6% 0.5% I 0.4% -- - - - - -- 0.3% 0.2% 07/01/10 Source: Bloomberg 10/01/10 2 -Year U.S. Treasury Yields July 1, 2010 — July 1, 2011 01/01/11 ©2011 PFM Asset Management LLC 04/01/11 07/01/11 Despite Lower Oil Prices, USD Falls • Historically, the U.S. Dollar has been negatively correlated with the price of oil — when oil fell, the Dollar rose. Recently, however, that has not been the case. Although U.S. Treasury yields rallied and the price of oil declined, the Dollar lost value. The unusual behavior can be attributed to an increase in investor appetite for Euros following a positive outcome in the Greek debt crisis. Despite the fall in oil and U.S. Treasury yields, investors moved into the now attractive Euro, reducing the Dollar's international value. .E M a Mal 70 The U.S. Dollar Index July 1, 2009 - July 1, 2011 Jul '06 Jan '07 Jul '07 Jan '08 Jul '08 Jan '09 Jul '09 Jan 10 Jul 10 Jan '11 Jul '11 The U. S. Dollar Index (USDX) indicates the general international value of the US Dollar. The USDX does this by averaging the exchange rates between the USD and 6 major world currencies. © 2011 PFM Asset Management EEC Source: Bloomberg Disclaimer This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some but not all of which are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities. n I%f% A nrnn A nn_____.Y__L I I n V LV I I I I IYI AJJVi IYI {AI IYAMVIIIVI Ii LLV 9 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2011 Quarterly Summary Report Total Portfolio Value'23 June 30,20111 March 31, 2011 Market Value $8,227,936.99 $8,159,533.19 Amortized Cost $8,167,241.49 $8,144,546.71 Notes: 1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement) 2. End of quarter trade -date market values of portfolio holdings, including accrued interest. 3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance. 4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on an unannuali -c! basis. 7. Includes money market fund /cash in performance and duration computations. 8. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not indicative of future results. PFM Asset Management LLC Section A - 1 Quarterly Return Annualized Last Last Since Inception Total Return123d56'a' June 30, 2011 Quarter 12 Months 24 Months June 30, 2009 Investment Portfolio 0.82% 3.31% 1.25% 1.96% 1.96% Merrill Lynch 1 -3 Year U.S. Treasury Index 0.83% 3.38% 1.34% 2.01% 2.01 Total Current Quarter Previous Quarter Total Current Quarter Previous Quarter Effective Duration(Years) ° June 30, 2011 March 31, 2011 Yields June 30, 2011 March 31, 2011 Investment Portfolio 1.61 1.80 Yield at Market 0.43% 0.75% Merrill Lynch 1 -3 Year U.S. Treasury Index 1.80 1.78 Yield at Cost 0.93% 0.95% Portfolio Duration % of Benchmark Duration 90% 101 Notes: 1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement) 2. End of quarter trade -date market values of portfolio holdings, including accrued interest. 3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance. 4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on an unannuali -c! basis. 7. Includes money market fund /cash in performance and duration computations. 8. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not indicative of future results. PFM Asset Management LLC Section A - 1 Quarter Total Return Comparison Previous Quarter Quarter Ended 06/30/11 1.00% Fiscal Year 2010 3.00 ML 1 -3 Year U.S. Treasury Index 2.50% Investment Portfolio * ]10.83% 0.75% 0.82% E a) 0.50% 1.96% ry Investment Portfolio 0.25% $108,801.81 TD Bank Money Market Fund 0.50 1.00 1.50 2.00 2.50 3.00 0.00% 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Notes: 1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement) 2. End of quarter trade -date market values of portfolio holdings, including accrued interest. 3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance. 4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on an unannuali -c! basis. 7. Includes money market fund /cash in performance and duration computations. 8. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not indicative of future results. PFM Asset Management LLC Section A - 1 Total Return Comparison Since Inception as of Previous Quarter Quarter Ended 06/30/11 3.50 Fiscal Year 2010 3.00 June 30, 2011 2.50% Fiscal Year Interest Income 2.00% ML 1 -3 Year U.S. Treasury Index Investment Portfolio* 02.01% Investment Portfolio 1.96% 1.50 Investment Portfolio 1.00% $108,801.81 TD Bank Money Market Fund 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Notes: 1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement) 2. End of quarter trade -date market values of portfolio holdings, including accrued interest. 3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance. 4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on an unannuali -c! basis. 7. Includes money market fund /cash in performance and duration computations. 8. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not indicative of future results. PFM Asset Management LLC Section A - 1 Current Quarter Previous Quarter Fiscal Year 2011 Fiscal Year 2010 Quarterly Interest Income June 30, 2011 March 31, 2011 Fiscal Year Interest Income Year to Date Year to Date Investment Portfolio $20,124.86 $22,714.50 Investment Portfolio $79,293.40 $108,801.81 TD Bank Money Market Fund 11.32 12.84 TD Bank Money Market Fund 33.61 34.32 Total $20,136.18 $22,727.34 Total $79,327.01 $108,836.13 Current Quarter Previous Quarter Fiscal Year 2011 Fiscal Year 2010 Quarterly Realized Gain /Loss on Cost June 30, 2011 March 31, 2011 Fiscal Year Realized Gain /Loss on Cost Year to Date Year to Date Investment Portfolio 1,905.07 (681.27) Investment Portfolio $18,517.30 $21,419.26 Notes: 1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement) 2. End of quarter trade -date market values of portfolio holdings, including accrued interest. 3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance. 4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on an unannuali -c! basis. 7. Includes money market fund /cash in performance and duration computations. 8. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not indicative of future results. PFM Asset Management LLC Section A - 1 Village of North Palm Beach Executive Summary PORTFOLIO STRATEGY Investment Report - Quarter Ended June 30, 2011 ➢ The Village's Investment Portfolio is of high credit quality and maintains adequate liquidity. The portfolio is invested entirely in Federal Agency, U.S. Treasury, and FDIC guaranteed corporate securities. The securities are allocated among high quality issuers rated AAA. ➢ The economic recovery continued in the second quarter, albeit at a slower pace. Many economists believe the slower pace of the recovery reflects temporary factors, including the dampening effect of higher food and energy prices on consumer purchasing power and spending, as well as, supply chain disruptions associated with the tragic events in Japan. Although these factors are being considered temporary, Federal Reserve officials lowered their growth forecasts for the second time this year. U.S. central bankers said the economy will expand 2.7% to 2.9% this year, down from forecasts ranging from 3.1 % to 3.3% in April. ➢ Debates over government spending and budget cuts have been at the forefront of the conversation in Europe and the United States during the second quarter. Greece was on the verge of default until Greek officials passed strict austerity measures needed to secure a bailout from the European Union. Meanwhile, in America, Congress has been unable to agree on the Federal budget and debt limit. The ongoing debate almost caused a government shutdown and prompted Standard & Poor's to put America's AAA credit rating on negative watch. Investors are concerned that cuts in government spending in the short run will slow future growth prospects. ➢ During the quarter, speculation of a Greek default drove intermediate -term U.S. Treasury yields near or below November 2010 lows. The 2 -year U.S. Treasury fell for eleven consecutive weeks, the longest rally since the 1980s, until the last week of June, when Greek officials eased concerns of a Greek default by passing large budget cuts. By the end of the quarter, the 2 -year U.S. Treasury yield hit 0.46 %, approximately 37 bps lower than it was on March 31, 2011. ➢ The Federal Reserve completed its second round of quantitative easing on June 30, 2011. Although the Fed will continue its existing policy of reinvesting principal payments from its securities holdings, Fed Chairman Ben Bernanke indicated that the Fed is putting extraordinary monetary policy action on hold. However, Chairman Bernanke said the Fed will continue to monitor the economy and act as needed. ➢ At the beginning of the quarter, we targeted the portfolio's duration at 101 % of the benchmark's duration in order to benefit from the yield and roll down offered by the steep yield curve. Over the quarter, as rates decreased we allowed the duration of the portfolio to shorten compared to the benchmark's duration. The portfolio's return of 0.82 %, slightly underperformed the benchmark's return of 0.83% by 1 basis points (0.01%). In an interest rate environment where yields remain at or near record lows, we will continue to position the portfolio's duration short of the benchmark's duration to reduce interest rate risk and the market value erosion that will occur if rates rise. ➢ PFM will continue to follow the prudent investment strategies that have safely provided the Village with favorable long -term performance during this period of historically low interest rates. ➢ Intermediate -term rates remain at or near all -time lows. Further, the Fed continues to state that it plans to keep the target federal funds rates low for an extended period which is likely to keep short -term rates at their currently low levels. For the most part, the market is expecting higher rates in the future as measured by the steepness of the yield curve, or the difference in yield between the 2 -year U.S. Treasury Note and the 10 -Year U.S. Treasury note, which is at historically wide levels. ➢ As such, we are currently positioning the portfolio's duration short of the benchmark's duration in order to provide additional protection from market value losses in the event of a sharp yield increase. A shorter duration will also allow for the extension of duration to capitalize on higher yields in the event they increase. We will closely monitor the markets to make select purchases of securities when rates move towards the upper end of their range. PFM Asset Management LLC Section B - 1 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2011 Investment Portfolio Composition and Credit Quality Characteristics Security Type' June 30, 2011 % of Portfolio March 31, 2011 % of Portfolio U.S. Treasuries $5,156,878.54 62.7% $5,523,508.15 67.7% Federal Agencies 2,148,060.23 26.1% 1,510,632.66 18.5% Commercial Paper 0.00 0.0% 0.00 0.0% Certificates of Deposit 0.00 0.0% 0.00 0.0% Bankers Acceptances 0.00 0.0% 0.00 0.0% Repurchase Agreements 0.00 0.0% 0.00 0.0% Municipal Obligations 0.00 0.0% 0.00 0.0% Corporate Notes /Bonds 0.00 0.0% 0.00 0.0% Corporate Notes /Bonds - FDIC Insured 907,184.30 11.0% 914,490.53 11.2% Mortgage Backed 0.00 0.0% 0.00 0.0% Money Market Fund /Cash 15,813.92 0.2% 210,901.85 2.6% Totals $8,227,936.99 100.0% $8,159,533.19 100.0% Portfolio Composition as of 06/30/11 Federal Agency Obligations U.S. Treasuries J Corporate 63% Notes /Bonds - ;" ^FDIC Insured 11% Money Market Fund /Cash 0.19% Notes: 1. End of quarter trade -date market values of portfolio holdings, including accrued interest. 2. Credit rating of securities held in portfolio, exclusive of money market fund /LGIP. Standard & Poor's is the source of the credit ratings. 3. A rating of'TSY" indicates the security is an obligation of, or explicitly guaranteed by the U. S. Government. Credit Quality Distribution 2 3 as of 06/30/11 AAA / 37% TSY__---` 63% PFM Asset Management LLC Section B - 2 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2011 Investment Portfolio Maturity Distribution Maturity Distribution' June 30, 2011 March 31, 2011 Overnight (Monedy Market Fund) $15,813.92 $210,901.85 Under 6 Months 0.00 0.00 6 - 12 Months 2,465,715.56 0.00 1 - 2 Years 2,642,097.63 4,549,171.77 2 - 3 Years 3,104,309.88 3,399,459.57 3 - 4 Years 0.00 0.00 4 - 5 Years 0.00 0.00 5 Years and Over 0.00 0.00 Totals $8,227,936.99 $8,159,533.19 Notes: 1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity. PFM Asset Management LLC Section B - 3 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2011 Investment Portfolio Maturity Distribution versus the Benchmark' Notes: 1. Due to the nature of the security, Mortgage- Backed Securities are represented based on their average life maturity rather than their final maturity. PFM Asset Management LLC Section B - 4 35.0% -- - - - - -- 30.0% -- - - - - -- 25.0% -- - - - - -- 20.0% 15.0% 10.0% 5.0% 0.0% , �� _1 00, �h �O �' Years to Maturity Investment Portfolio OMerrill Lynch' -3 Year U.S. Treasury Note Index Notes: 1. Due to the nature of the security, Mortgage- Backed Securities are represented based on their average life maturity rather than their final maturity. PFM Asset Management LLC Section B - 4 Village of North Palm Beach' Asset Allocation as of June 30, 2011* Security Type June 30, 2011 June 30, 2011 Notes Permitted by Policy Florida Prime (SBA) 786,198.82 4.50% 2 25% United States Treasury Securities 5,130,245.65 29.38% 100% United States Government Agency Securities - 0.00% 100% Federal Instrumentalities 2,123,432.90 12.16% 50% Certificates of Deposit - 0.00% 100% Repurchase Agreements - 0.00% 0% Commercial Paper - 0.00% 0% Corporate Notes 897,749.02 5.14% 25% Mortgage - Backed Securities - 0.00% 0% Bankers' Acceptances - 0.00% 0% Money Market Mutual Funds 1,166,616.60 6.68% 50% Intergovernmental Investment Pool - 0.00% 25% Interest Bearing Checking or Savings Account 7,357,002.33 42.13% 2 100% Village Managed $9,294,003.83 53.23% PFM Managed $8,167,241.49 46.77% Total $17,461,245.32 100.00% Individual Issuer Breakdown June 30, 2011 June 30, 2011 Notes Government National Mortgage Association (GNMA) - 0.00% US Export -Import Bank (Ex -Im) - 0.00% Farmers Home Administration (FMHA) - 0.00% Federal Financing Bank - 0.00% Federal Housing Administration (FHA) - 0.00% General Services Administration - 0.00% New Communities Act Debentures - 0.00% US Public Housing Notes & Bonds - 0.00% US Dept. of Housing and Urban Development - 0.00% Federal Farm Credit Bank (FFCB) 610,863.07 3.50% Federal Home Loan Bank (FHLB) 470,467.51 2.69% Federal National Mortgage Association (FNMA) 741,314.52 4.25% Federal Home Loan Mortgage Corporation (FHLMC) 300,787.80 1.72% Student Loan Marketing Association (SLMA) - 0.00% 1. All Assets. 2. These Accounts are managed by the Village. *PFM managed securities are shown on Amortized Cost plus Accrued Interest basis. Permitted by Policy Individual Issuer Breakdown June 30, 2011 June 30, 2011 Notes Permitted b� 100% CD - BankA - 0.00% 33% 100% CD - BankB - 0.00% 33% 100% Interest Bearing Checking or Savings Account - Wachovia 7,357,002.33 42.13% 2 50% 100% Interest Bearing Checking or Savings Account - B - 0.00% 50% 100% Citigroup Corporate Notes - FDIC insured 494,480.57 2.83% 33% 100% Bank of America Corporate Notes - FDIC insured 403,268.45 2.31% 33% 100% Corporate Notes C - 0.00% 33% 100% Corporate Notes D - 0.00% 33% 100% Corporate Notes E - 0.00% 33% 10% Money Market Fund - TD Bank Sweep Account 15,813.92 0.09% 33% 10% Money Market Fund- Wells Fargo Advantage Fund 1,150,802.68 6.59% 2 33% 10% 10% 0% PFM Asset Management LLC Section C - 1