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03-31-2010 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida Investment 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, Consultant Investment Performance Review Quarter Ended March 31, 2010 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 March 31, 2010 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 March 31, 2010 Tab III. March 31, 2010 PFM Month -End Statement 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. Table of Contents Section r Market Update April 12, 2010 PFM Asset Management LLC 300 S. Orange Avenue, Ste. 1170 Orlando, FL 32801 (407) 648 -2208 800 Yes -2 -PFM David Jang, CTP - Author David Freeland - Analyst Melissa Lindman - Editor WWW.Dtm.com • After falling 7.6% month over month in January, pending home sales rebounded up 8.2 %. Much of this demand can be attributed to the pending April expiration of the home buyer tax credits. There is concern that the end of the tax credit and rising mortgage rates could dampen housing demand. Still, February's rebound in pending home sales is a good sign for the housing sector. 30% 20% 10% 0% -10% -20% -30% Pending Home Sales Index February 2005 — February 2010 Feb 05 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Pending Homes Sales MoM Pending Homes Sales YoY Pending home sales is a leading indicator of existing home sales. A pending sale is one in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale. o 2010 PFM Asset Management LLC Source: Bloomberg 30 -year mortgage rates have moved higher since the Fed ended its large mortgaged- backed federal agency purchases at the end of March, which had been keeping long -term mortgage rates artificially low. At the same time, the overall rate level moved higher, which also contributed to the increase in mortgage- rates. Some economists are concerned that rising mortgage rates could stymie housing demand in an already struggling housing market. Still, 30- year mortgage rates, which ended the week at 5.21 % are well below their 10 -year average of 6.20 %. 9% 8% 7% 6% 5% 4% 30 -Year Mortgage Rates April 1, 2000 —April 9, 2010 Apr '00 Apr '02 Apr '04 Apr '06 Apr '08 Apr '10 30 -Year Mortgage Rate 10 -Year Average © 2010 PFM Asset Management LLC 2 Bloomberg 1 ? i Commodity investors' confidence in a global economic recovery, which drove prices higher in recent weeks, stalled at the end of the week. Oil traders point to rising oil inventories, which have increased each week for the past 10 weeks, as an indication that demand isn't meeting supply. As a result, oil prices, which reached their highest point in over a year on Tuesday, went lower at the end of the week. $310 $290 $270 $250 $230 $210 Apr '09 R/J CRB Index April 1, 2009 —April 9, 2010 Aug'09 Dec'09 Apr'10 The Reuters /Jefferies CRB Index is an arithmetic average of commodity futures prices with monthly rebalancing. It is a widely recognized measure of global commodity markets. o i Source: Bloomberg $170 $140 $110 :1 $50 Oil April 1, 2008 —April 9, 2010 Oct '08 Apr '09 Oct '09 Apr ' 10 • Intermediate -term yields jumped on Monday, closing at 1.17% as the markets digested the good payrolls figures released on Friday. Some of this optimism was tempered by lingering concerns over Greece's debt problems, which brought rates lower. Also, Bernanke continued to emphasize the Fed's plan to keep rates low for an extended period. The 2 -year Treasury ended the week near 1.08 %. 1.5% 1.4% 1.3% 1.2% 1.1% 1.0% 0.9% 0.8% 0.7% 0.6% 0.5% 2 -Year U.S. Treasury Yields April 1, 2009 —April 9, 2010 Apr'09 Jul '09 Oct'09 Jan '10 Apr'10 2010 PFM Asset Management LLC 4 Bloomberg • The Fed continues to emphasize that rates will remain low "for an extended period" as the economy slowly recovers. With unemployment at 9.7% and 2010 midterm elections approaching, it is unlikely the Fed will change its stance anytime soon. • An improving economy in the past year has led investors to demand higher yields for longer -term U.S. Treasuries, leading to a very steep yield curve. Risks associated with increased U.S. Treasury supply have led to higher U.S. Treasury rates as well. • World wide foreign currency reserve assets climbed 18% to 7.8 trillion in the 12 months ended March 2010. This is the biggest increase since the collapse of Bear Stearns in March 2008. U.S. Treasury Yield Curve April 9, 2009 versus April 9, 2010 5% 4% 3% as 2% Source: Bloomberg Maturity —40—April 9, 2010 April 9, 2009 30 y 4/9/09 4/9/10 Change 3 month 0.18% 0.15% -0.03% 6 month 0.38% 0.23% -0.15% 1 year 0.58% 0.44% -0.14% 2 year 0.95% 1.06% +0.11% 3 year 1.36% 1.69% +0.33% 5 year 1.89% 2.63% +0.74% 10 year 2.92% 3.88% +0.96% 30 year 3.75% 4.74% +0.99% • The spread between 2 -year and 10 -year U.S. Treasuries remained stable this week near 2.80 %. The 10 -year U.S. Treasury, which had peaked above 4 %, dropped 0.10% to end the week near 3.90 %. The 2 -year U.S. Treasury moved in line with the 10 -year, leaving the steepness of the curve unchanged. 2 -Year and 10 -Year U.S. Treasury Spread April 1, 2000 —April 9, 2010 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% Apr'00 Apr'02 Apr'04 Apr'06 Apr'08 Apr'10 © 2010 PFM Asset Management LLC Source: Bloomberg • Unemployment held steady again at 9.7% in March, however change in non -farm payrolls had its best month since March 2007 at 162,000. Economists expected a large increase in payrolls in March as a result of government hiring for the census. However, the census only accounted for 43,000 jobs. • U -6 Unemployment, which includes discouraged and underemployed workers, moved to 16.9% in March, increasing for the second month in a row. The number is still down from its October 2009 peak of 17.4 %. Change in Non -Farm Payrolls/ Unemployment Rate March 2004 — March 2010 800 12% v, 600 O 400 C a------------------------------------ - - - - -- -------------------- - - - - -- 8% E 200 00 c H (200) (400) fD --------------- - - - - -- ----------------------------------------------------------------- - - - - -- ---------- .---- - - - - -- - ---------------- - - - - -- 2% v (600) Mar'04 Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 © 2010 PFM Asset Management LLC 7 Bloomberg Market moving economic releases 4/12/2010 Monthly Budget Statement -187 billion -192 billion 4/13/2010 Trade Balance -39.0 billion -37.3 billion 4/13/2010 Import Price Index (MoM) 0.90% - 0.30% 4/13/2010 Import Price Index (YoY) 11.60% 11.20% 4/13/2010 ABC Consumer Confidence - - -43 4/14/2010 Consumer Price Index (MoM) 0.10% 0% 4/14/2010 CPI Ex Food & Energy (MoM) 0.10% 0.10% 4/14/2010 Consumer Price Index (YoY) 2.40% 2.10% 4/14/2010 Advance Retail Sales 1 % 0.30% 4/14/2010 Retail Sales Less Autos 0.40% 0.80% 4/14/2010 CPI Ex Food & Energy (YoY) 1.20% 1.30% 4/14/2010 CPI Core Index SA - - 220.579 4/14/2010 Retail Sales Ex Auto & Gas 0.90% 4/14/2010 Consumer Price Index NSA - - 216.741 4/14/2010 Business Inventories 0.40% 0% 4/15/2010 Initial Jobless Claims - - - - 4/15/2010 Continuing Claims - - - - 4/15/2010 Industrial Production 0.60% 0.10% 4/15/2010 Capacity Utilization 73.20% 72.70% 4/16/2010 Housing Starts 610,000 575,000 4/16/2010 Housing Starts MOM% ru. _ 6.10% a� a - 5.90% 4/16/2010 Building Permits 623,000 612,000 4/16/2010 Building Permits MOM% - 2.20% - 1.60% 4/16/2010 U. of Michiaan Confidence 74.5 73.6 637,000 © 2010 PFM Asset Management LLC $ Bloomberg • The U.S. trade deficit shrank unexpectedly in January, despite the continued upward trend in oil prices that was driving the deficit wider in recent months. The smaller deficit was due in part to a large, 11.5% month over month, decrease in barrels imported in January. Nonpetroleum imports shrank as well, possibly an early indication of expectations of low consumer demand in the U.S. • After growing steadily for months, exports shrank as well, dropping 0.3 %. The decrease may only represent a temporary pullback, following a strong 3.4% gain in December, and not a true decrease in foreign demand. U.S. Trade Deficit January 1996 — January 2010 $80 $70 ----------------------------------------------- ---------------------------------------------------------------------------------------------------- $60 ---------------------------------------------------------------------------------------------- - - - - -- ---- - - - - -- - I - ----- - - - - -- N$50 --------------------------------------------------------------------------------- - - - - -- --------------------------- - - - - -- ---- - - - - -- c ,0 $40 -----..-..-..------------------------------------------------------- - - - - -- -- ----------------------------------------- ------ - - - - -- --- - - - - -- m$30 ------------------------------------ - - - - -- ------------------------------------------------------------------- - - - - -- -- -- $20 ---------------------------- - - - - -- ----------------------------------------------------------------------------------------------------------------- $10 - - -- - - - -- -------------------- - - - - -- ---------------------------------------------------------------------------------------------------- $0 — — — — Jan '96 Jan '98 Jan '00 Jan '02 Jan '04 Jan '06 Jan '08 Jan 10 The U.S. Trade Deficit is equal to U.S. imports of goods and services less U.S. exports of goods and services. It is a component of GDP. © 2010 PFM Asset Management LLC 9 Source: Bloomberg �i Economists forecasted that harsh winter weather in February would keep consumers out of the stores, leading to a drop in retail sales in February. Instead, retail sales increased by 0.3% month over month. Excluding auto sales (which dropped in the month) and gas sales, the retail sales release looks even better at 0.8 %. High unemployment does not seem to be having the dampening effect on retail sales that economists expected. 4% 2% 0% -2% -4% Retail Sales (Month over Month) February 2008 — February 2010 Feb '08 Jun '08 Oct '08 Feb '09 Jun '09 Oct '09 Feb '10 Advance Retail Sales Retail Sales Ex Auto and Gas Retail Sales represent the month over month change in total receipts at retail stores. It is an early indicator of consumer spending, which is a large component of GDP. As auto and gas sales can be volatile, retail sales are often viewed without these components. © 2010 PFM Asset Management LLC Bloomberg • Housing starts dropped in February due, in large part, to unseasonably cold and snowy winter weather. Building permits were originally thought to have dropped as well, but have since been revised higher. Economists are expecting housing starts to increase by 6.1 %, due in part to better weather in March. 2,500 2,000 1,500 0 t 1— 1,000 Kill] I Housing Starts and Building Permits February 2000 — February 2010 Feb '00 Feb '02 Feb '04 Feb '06 Feb '08 Feb '10 Housing Starts Building Permits Housing Starts represents the number of residential buildings which have begun construction in each month. The start of construction is defined as the beginning of excavation of the foundation for a building. © 2010 PFM Asset Management LLC 11 Bloomberg The month over month change in CPI was 0.0% in February. Lower gas prices in February helped keep inflation unchanged. The energy component of CPI fell 0.5% in February, but is expected to rebound in March. Core CPI moved positive in February after January's negative release, the first in almost three decades. Core CPI remained subdued, however, as shelter costs were little changed and apparel costs fell. Economists expect CPI to be 0.1 % in March. 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% -1.5% -2.0% Consumer Price Index (Month Over Month) February 2008 — February 2010 Feb '08 Jun '08 Oct '08 Feb '09 Jun '09 Oct '09 Feb 10 Consumer Price Index (MoM) CPI Ex Food& Energy (MoM) The Consumer Price Index (CPI) represents the month over month change in prices of goods and services purchased by urban households. Urban households represent about 80% of total U.S. population. CPI is the most widely followed indicator of inflation. © 2010 PFM Asset Management LLC 12 Bloomberg Rates as of April 7, 2010 Source: Bloomberg 7 -day Current Yield Change over Week Change over Month Change over Year TreasurY 1 month __ 0.16% -- 0.01% 0.06% 0.00% 3 months 0.17% 0.01% 0.02% -0.03% 6 months 0.24% 0.00% 0.04% -0.15% 12 months 0.46% 0.07% 0.12% -0.09% 7 -day 0.14% 0.06% 0.05% 0.04% 1 month 0.15% 0.04% 0.05% 0.00% 3 months 0.18% 0.01% 0.04% -0.06% 6 months 0.27% 0.01% 0.06% -0.16% 9 months 0.38% 0.03% 0.10% -0.21% 12 months 0.65% 0.07% 0.17% -0.26% Certificates of Deposit 1 month 0.23% 0.02% 0.05% -0.19% 3 months 0.25% 0.01% 0.03% -0.51% 6 months 0.36% 0.01% 0.04% -0.85% 9 months 0.48% 0.01% 0.09% -0.96% 12 months 0.59% -0.03% 0.09% -- Rates as of April 7, 2010 Source: Bloomberg 7 -day 0.21% 0.02% 0.04% -0.11% 1 month 0.23% 0.02% 0.04% -0.30% 3 months 0.29% 0.01% 0.06% -0.88% 6 months 0.41% 0.05% 0.08% - 1.28% 9 months 0.54% -0.02% 0.02% - 1.32% Rates as of April 7, 2010 Source: Bloomberg 0.28% 0.37% 0.27% 0.76% 0.26% -0.17% 0.22% -0.01% 0.37% 0.26% Rates as of April 7, 2010 © 2010 PFM Asset Management LLC 14 Bloomberg 3 year 1.68% 0.11% 5 year Bullets 2.61% 0.06% icy 2 year 1.31% 0.12% 3 year 1.95% 0.12% 5 year 2.86% 0.14% 0.28% 0.37% 0.27% 0.76% 0.26% -0.17% 0.22% -0.01% 0.37% 0.26% Rates as of April 7, 2010 © 2010 PFM Asset Management LLC 14 Bloomberg 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. Village of North Palm Beach Investment Report - Quarter Ended March 31, 2010 Quarterly Summary Report Total Portfolio Value'" March 31, 2010 December 31, 2009 Market Value $8,038,443.82 $7,986,427.21 Amortized Cost $8,008,314.42 $7,975,845.63 Quarter Total Return Comparison Quarter Ended 03/31/10 1.00% - - - -- -- 0.75% _- ..____ -MLA -3 Year U.S. Treasury Index Investment Portfolio X0.70% E 0.65 2 0.50% - - - -- 0.25 0.00% 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Quarterly Return Annualized Quarter Ended 03/31/10 Last ` Since Inception 71 Total Return10"•B6°' r -, March 31, 2010 Quarter -- - - -- - 1.56% . 52% 24 Months June 30 2009 Investment Portfolio 0.65% 2.67% Investment Portfolio NIA 1.56 Merrill Lynch 1 -3 Year U.S. Treasury Index 0.70% 2.89% Effective Duration (Years) NIA 1.52 Total Current Quarter Previous Quarter % Current Quarter `� Previous Quarter Effective Duration lYearsP March 31, 2010 December 31, 2009 Yields 4' March 31, 2010 December 31, 2009 Investment Portfolio 1.69 1.63 Yield at Market 1.04% 1.13% Merrill Lynch 1 -3 Year U.S. Treasury Index 1.84 1.84 x Yield at Cost ... 1.29%, 1.22 Portfolio Duration %of Benchmark Duration 92% 89% Quarter Total Return Comparison Quarter Ended 03/31/10 1.00% - - - -- -- 0.75% _- ..____ -MLA -3 Year U.S. Treasury Index Investment Portfolio X0.70% E 0.65 2 0.50% - - - -- 0.25 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 accmal accounting reporting requiements; forward settling Trades are included in the monthly balances. 2. End ofquarter Irade-datemarkety 1l ofportfolo holdings, including accrued interest. 3. The Investment Portfolio's care balance increased due to a $1 milion CD maturing on 12/16/09 and invested as part of cam 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. Moral Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on both an unannuaized and annualzed basis. The annualized return assumes the quarterly return is compounded at the same rate for four quarters and is presented for reference only. The actual annual return will be the mull of chaining the most recent four quarterly returns. 7. Includes money market fund /cash in performance and duration computations. S. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not kidicabw of future results. PFM Asset Management LLC Section A - I Total Return Comparison Since Inception as of Previous Quarter Quarter Ended 03/31/10 2.00% Fiscal Year 2009 Quarterly Interest Income Investment Portfolio_ 1-3 Year U.S. Treasury Index 'W 1.50% -- - - -- - 1.56% . 52% c w 1.00% _ o! $28,258.08 0.50 Investment Portfolio 0.00 $8,855.91 0.50 1.00 1.50 2.00 2.50 3.00 16.43 Effective Duration (Years) Notes: 1. In order to comply with GASB accmal accounting reporting requiements; forward settling Trades are included in the monthly balances. 2. End ofquarter Irade-datemarkety 1l ofportfolo holdings, including accrued interest. 3. The Investment Portfolio's care balance increased due to a $1 milion CD maturing on 12/16/09 and invested as part of cam 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. Moral Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on both an unannuaized and annualzed basis. The annualized return assumes the quarterly return is compounded at the same rate for four quarters and is presented for reference only. The actual annual return will be the mull of chaining the most recent four quarterly returns. 7. Includes money market fund /cash in performance and duration computations. S. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not kidicabw of future results. PFM Asset Management LLC Section A - I Current Quarter Previous Quarter Fiscal Year 2010 Fiscal Year 2009 Quarterly Interest Income March 31, 2010 December 31, 2009 Fiscal Year Interest Income Year to Date Year to Date Investment Portfolio $28,258.08 $26,980.26 Investment Portfolio $55,238.34 $8,855.91 TD Bank Money Market Fund 7 51 16.43 TD Bank Money Market Fund 23.94 94.97 Total $28,265.59 $26,996.69 Total $55,262.28 $8,950.88 Current Quarter Previous Quarter Fiscal Year 2010 Fiscal Year 2009 Quarterly Realized Gain /Loss on Cost March 31, 2010 December 31. 2009 Fiscal Year Realized Gain /Loss on Cost Year to Date Year to Date Investment Portfolio ($815.33); $7,107.71 Investment Portfolio $6,292.38 $7,165.26 Notes: 1. In order to comply with GASB accmal accounting reporting requiements; forward settling Trades are included in the monthly balances. 2. End ofquarter Irade-datemarkety 1l ofportfolo holdings, including accrued interest. 3. The Investment Portfolio's care balance increased due to a $1 milion CD maturing on 12/16/09 and invested as part of cam 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. Moral Lynch Indices provided by Bloomberg Financial Markets. 6. Quarterly returns are presented on both an unannuaized and annualzed basis. The annualized return assumes the quarterly return is compounded at the same rate for four quarters and is presented for reference only. The actual annual return will be the mull of chaining the most recent four quarterly returns. 7. Includes money market fund /cash in performance and duration computations. S. Returns presented for 12 months or longer are presented on an annual basis. 9. Past performance is not kidicabw of future results. PFM Asset Management LLC Section A - I Village of North Palm Beach Executive Summary Investment Report - Quarter Ended March 31, 2010 ➢ 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 in the portfolios are allocated among high quality issuers rated AAA. ➢ 2 -Year U.S. Treasury rates peaked at 1.14% to end the fourth quarter of 2009 before falling to 0.82% to end January on concerns over debt in the European Union and China's new policies to cool economic growth. Yields remained generally range bound between 0.80% and 0.90% during the middle of the quarter before moving higher to end the quarter above 1% as the downgrade of Portugal's sovereign debt brought attention to risks associated with increased U.S. Treasury supply and a positive employment report increased investors' confidence in an economic recovery. ➢ During the quarter, the Fed began allowing some of its stimulus programs to expire. At the March FOMC meeting, the Fed announced it would be ending its large agency and mortgage- backed agency purchase programs by the end of March. The Fed's language was mixed regarding the economic recovery, stating "that economic activity has continued to strengthen and that the labor market is stabilizing," but pointing to obstacles to recovery such as the current high level of unemployment and a struggling housing market. The Fed continues to believe that economic conditions merit a low fed funds target rate "for an extended period." ➢ In addition to removing some stimulus programs, the Fed raised the discount rate from 0.50% to 0.75% on February 18th. The discount rate is the rate that the Fed, the lender of last resort, charges banks to borrow money, whereas the Federal Funds rate is the rate that banks charge to lend to other banks. The Fed emphasized that this move was not a general tightening of credit. Rather, the increase in the discount rate showed the Fed felt ready to wean banks off increased use of Federal Reserve credit, encouraging banks to return to interbank borrowing as the main source of raising capital. ➢ We continued to emphasize safety and liquidity in our management of the portfolio. During this period of historically low interest rates, we relied heavily on active management to safely enhance the portfolio's long -term performance. ➢ Over the quarter, we targeted a duration of 85 -95% of benchmark duration in anticipation of an increase in rates. However, rates ended the quarter lower than they began leading our portfolios to gain less than the benchmark. Additionally, by being short of the benchmark, the Investment portfolio had a lower yield and less roll down than the benchmark and thus ended the quarter with slight underperformance. The portfolio had a total return of 0.65 %, falling short of the benchmark's return of 0.70% by 5 basis points (0.05 %). ➢ PFM will continue to follow the prudent investment strategies that have safely provided the Village with favorable long -term performance during this period of significant market and economic turmoil. ➢ PFM continues to have a cautious outlook regarding the potential for interest rates to move higher. However, given the yield curve's historic steepness and potential for roll -down, we intend to employ a moderate strategy, balancing the current gains from investing longer term with the potential for market value losses if yields do move higher. We will continue to monitor the markets for indications of increases in rates and for opportunities in the federal agency sector. ➢ We will position the portfolio's duration at approximately 88 % -92% of the benchmark's duration, remaining short in anticipation that a rise in interest rates may result in negative returns for longer duration portfolios with more exposure to interest rate risk. However, we are targeting a longer duration than last quarter to take advantage of higher yields and greater potential for roll -down associated with a steep yield curve. ➢ In the coming quarter, we plan to implement a strategy of purchasing 2 -year securities and floating rate securities, which we believe will outperform 1 -year securities with comparable duration. 2 -year securities offer extra yield and roll -down associated with the steep yield curve and floating rate securities offer some protection in the case that interest rates rise. PFM Asset Management LLC Section B -1 Village of North Palm Beach Investment Report - Quarter Ended March 31, 2010 Investment Portfolio Composition and Credit Quality Characteristics Security Type' March 31, 2010 % of Portfolio December 31, 2009 % of Portfolio U.S. Treasuries $3,348,857.07 41.7% $4,166,718.86 52.2% Federal Agencies 2,775,110.31 34.5% 2,327,527.11 29.1% 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 1,883,634.32 23.4% 1,369,248.42 17.1% Mortgage Backed 0.00 0.0% 0.00 0.0% Money Market Fund /Cash 30,842.12 0.4% 122,932.82 1.5% Totals $8,038,443.82 100.0% $7,986,427.21 100.0% Portfolio Composition as of 03/31/10 Money Market Fund /Cash Corporate 0.38% Notes /Bonds - �- FDIC Insured 23% U.S. Treasuries 42% Federal Agency Obligations 35% 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. 3. A rating of "TSY" indicates the security is an obligation of, or explicitly guaranteed by the U. S. Government. PFM Asset Management LLC Section B - 2 Village of North Palm Beach' Asset Allocation as of March 31, 2010* Security Type March 31, 2010 March 31, 2010 Notes Permitted by Policy Florida SBA 357,526.74 1.88% 2 25% United States Treasury Securities 3,340,18172 17.57% 100% United States Government Agency Securities - 0.00% 2 100% Federal Instrumentalities 2,764,471.28 14.54% 50% Certificates of Deposit - 0.00% 2 100% Repurchase Agreements - 0.00% 0% Commercial Paper - 0.00% 0% Corporate Notes 1,872,817.30 9.85% 25% Mortgage - Backed Securities - 0.00 % 0% Bankers' Acceptances - 0.00% 0% Money Market Mutual Funds 2,749,386.22 14.46% 2 50% Intergovernmental Investment Pool - 0.00% 25% Interest Bearing Checking or Savings Account 7,930,133.54 0.71% 2 100% Village Managed $11,006,204.38 57.88% PFM Managed $8,008,314.42 42.12% Total $19,014,518.80 100.00% Individual Issuer Breakdown March 31, 2010 March 31, 2010 Notes Permitted by Policy Government National Mortgage Association (GNMA) - 0.00% 100% US Export-Import Bank (Ex -Im) - 0.00% 100% Farmers Home Administration (FMHA) - 0.00% 100% Federal Financing Bank - 0.00% 100% Federal Housing Administration (FHA) - 0.00% 100% General Services Administration - 0.00% 100% New Communities Act Debentures - 0.00% 100% US Public Housing Notes & Bonds - 0.00% 100% US Dept. of Housing and Urban Development - 0.00% 100% Federal Farm Credit Bank (FFCB) 155,242.28 0.82% 10% Federal Home Loan Bank (FHLB) 782,031.92 4.11% 10% Federal National Mortgage Association (FNMA) 705,312.40 3.71% 10% Federal Home Loan Mortgage Corporation (FHLMC) 1,121,884.68 5.90% 10% Student Loan Marketing Association (SLMA) - 0.00% 0% 1. All Assets. 2. These Accounts are managed by the Village. 'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis. Individual Issuer Breakdown March 31, 2010 March 31, 2010 Notes Permitted by Policy CD - BankA - 0.00% 2 33% CD - Bank B - 0.00% 33% Interest Bearing Checking or Savings Account - Wachovia 7,930,133.54 41.71% 2 50% Interest Bearing Checking or Savings Account - B - 0.00% 50% Citigroup Corporal Notes - FDIC insured 967,823.10 5.09% 33% General Electric Corporate Notes - FDIC insured 496,858.06 2.61% 33% Bank of America Corporate Notes - FDIC insured 408,136.14 2.15% 33% Corporate Notes D - 0.00% 33% Corporate Notes E - 0.00% 33% Money Markel Fund - TD Bank Sweep Account 30,842.12 0.16% 33% Money Market Fund - Evergreen 2,718,544.10 14.30% 2 33% PFM Asset Management LLC Section C - I f � I Customer Service PO Box 11813 Harrisburg, PA 17108 -1813 ACCOUNT STATEMENT Client Management Team Mel Hamilton Senior Managing Consultant 300 South Orange Avenue, Suite 1170 Orlando, FL 32801 407 -648 -2208 hamiltonm @pfm.com Steven Alexander, CTP, CGFO Managing Director 300 South Orange Avenue, Suite 1170 Orlando, FL 32801 407 - 648 -2208 alexanders @pfm.com Gregg Manjerovic, CFA Senior Portfolio Manager One Keystone Plaza, Suite 300 Harrisburg, PA 17101 717 - 232 -2723 manjerovicg @pfm.com Rebecca Dole Consultant 300 South Orange Street, Suite 1170 Orlando, FL 32801 407- 648 -2208 doler @pfm.com Contents Cover /Disclosures Summary Statement Individual Accounts Accounts included in Statement NORTH PALM BEACH INVESTMENT PORTFOLIO Online Access Www•pfm.com VILLAGE OF NORTH PALM BEACH SAMIA JANJUA 501 US HIGHWAY 1 NORTH PALM BEACH, FL 33408 Customer Service 1- 717 - 232 -2723 �r PF Important Disclosures This statement is for general information purposes only and is not intended to provide specific advice or recommendations. PFM Asset Management LLC ( "PFM ") is an investment advisor registered with the Securities and Exchange Commission, and is required to maintain a written disclosure statement of our background and business experience. If you would like to receive a copy of our current disclosure statement, please contact Service Operations at the address below. Proxy Voting PFM does not normally receive proxies to vote on behalf of its clients. However, it does on occasion receive consent requests. In the event a consent request is received the portfolio manager contacts the client and then proceeds according to their instructions. PFM's Proxy Voting Policy is available upon request by contacting Service Operations at the address below. Questions About an Account PFM's monthly statement is intended to detail our investment advisory activity as well as the activity of any accounts held by clients in pools that are managed by PFM. The custodian bank maintains the control of assets and executes (i.e., settles) all investment transactions. The custodian statement is the official record of security and cash holdings and transactions. PFM recognizes that clients may use these reports to facilitate record keeping; therefore the custodian bank statement and the PFM statement should be reconciled and differences resolved. Many custodians use a settlement date basis which may result in the need to reconcile due to a timing difference. Account Control PFM does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retain responsibility for their internal accounting policies; implementing and enforcing internal controls and generating ledger entries or otherwise recording transactions. Market Value Generally, PFM's market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg or Telerate. Where prices are not available from generally recognized sources the securities are priced using a yield -based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated. Non - negotiable FDIC - insured bank certificates of deposit are priced at par. Although PFM believes the prices to be reliable, the values of the securities do not always represent the prices at which the securities could have been bought or sold. Explanation of the valuation methods for money market and TERM funds is contained in the appropriate fund information statement. Amortized Cost The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short term securities (those with less than one year to maturity at time of issuance) is amortized on a straightline basis. Such discount or premium with respect to longer term securities is amortized using the constant yield basis. Important Disclosures Tax Reporting Cost data and realized gains / losses are provided for informational purposes only. Please review for accuracy and consult your tax advisor to determine the tax consequences of your security transactions. PFM does not report such information to the IRS or other taxing authorities and is not responsible for the accuracy of such information that may be required to be reported to federal, state or other taxing authorities. Financial Situation In order to better serve you, PFM should be promptly notified of any material change in your investment objective or financial situation. Callable Securities Securities subject to redemption prior to maturity may be redeemed in whole or in part before maturity, which could affect the yield represented. Portfolio The securities in this portfolio, including shares of mutual funds, are not guaranteed or otherwise protected by PFM, the FDIC (except for certain non - negotiable certificates of deposit) or any government agency. Investment in securities involves risks, including the possible loss of the amount invested. Rating Information provided for ratings is based upon a good faith inquiry of selected sources, but its accuracy and completeness cannot be guaranteed. Shares of some money market and TERM funds are marketed through representatives of PFM's wholly owned subsidiary, PFM Fund Distributors, Inc. PFM Fund Distributors, Inc. is registered with the SEC as a broker /dealer and is a member of the Financial Industry Regulatory Authority ( "FINRA') and the Municipal Securities Rulemaking Board ( "MSRS "). You may reach the FINRA by calling the FINRA Regulator Public Disclosure Hotline at 1- 888 - 289 -9999 or at the FINRA Regulation Internet website address www.nasd.com. A brochure describing the FINRA Regulation Public Disclosure Program is also available from the FINRA upon request. Key Terms and Definitions Dividends on money market funds consist of interest earned, plus any discount ratably amortized to the date of maturity, plus all realized gains and losses on the sale of securities prior to maturity, less ratable amortization of any premium and all accrued expenses to the fund. Dividends are accrued daily and may be paid either monthly or quarterly. The monthly earnings on this statement represent the estimated dividend accrued for the month for any program that distributes earnings on a quarterly basis. There is no guarantee that the estimated amount will be paid on the actual distribution date. Current Yield is the net change, exclusive of capital changes and income other than investment income, in the value of a hypothetical fund account with a balance of one share over the seven -day base period including the statement date, expressed as a percentage of the value of one share (normally $1.00 per share) at the beginning of the seven -day period. This resulting net change in account value is then annualized by multiplying it by 365 and dividing the result by 7. The yields quoted should not be considered a representation of the yield of the fund in the future, since the yield is not fixed. Account Statement For the Month Ending March 31, 2010 Average maturity represents the average maturity of all securities and investments of a portfolio, determined by multiplying the par or principal value of each security or investment by its maturity (days or years), summing the products, and dividing the sum by the total principal value of the portfolio. The stated maturity date of mortgage backed or callable securities are used in this statement. However the actual maturity of these securities could vary depending on the level or prepayments on the underlying mortgages or whether a callable security has or is still able to be called. Monthly distribution yield represents the net change in the value of one share (normally $1.00 per share) resulting from all dividends declared during the month by a fund expressed as a percentage of the value of one share at the beginning of the month. This resulting net change is then annualized by multiplying it by 365 and dividing it by the number of calendar days in the month. YTM at Cost The yield to maturity at cost is the expected rate of return, based on the original cost, the annual interest receipts, maturity value and the time period from purchase date to maturity, stated as a percentage. YTM at Market The yield to maturity at market is the rate of return, based on the current market value, the annual interest receipts, maturity value and the time period from purchase date to maturity, stated as a percentage. Managed Account A portfolio of investments managed discretely by PFM according to the client's specific investment policy and requirements. The investments are directly owned by the client and held by the client's custodian. Unsettled Trade A trade which has been executed however the final consummation of the security transaction and payment has not yet taken place. Please review the detail pages of this statement carefully. If you think your statement is wrong, missing account information, or if you need more information about a transaction, please contact PFM within 60 days of receipt. If you have other concerns or questions regarding your account you should contact a member of your client management team or PFM Service Operations at the address below. PFM Asset Management LLC Attn: Service Operations One Keystone Plaza, Suite 300 N. Front & Market Sts Harrisburg, PA 17101 WFManaged Account Summary Statement For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Transaction Summary - Managed Account Cash Transactions Summary - Managed Account Opening Market Value $7,860,846.73 Maturities /Calls 0.00 Maturities /Calls 0.00 Sale Proceeds 1,942,920.87 Principal Dispositions (1,937,669.54) Coupon /Interest Income 1,764.82 Principal Acquisitions 2,076,785.84 Principal Payments 0.00 Unsettled Trades 0.00 Security Purchases (2,077,410.25) Change in Current Value (21,914.98) Net Cash Contribution 0.00 Reconciling Transactions 0.00 Closing Market Value $7,978,048.05 Earnings Reconciliation (Cash Basis) - Managed Account Cash Balance Interest /Coupons Received 7,016.15 Closing Cash Balance $30,842.13 Less Purchased Interest Related to Interest /Coupons (624.41) Plus Net Realized Gains /Losses 1,978.14 Total Cash Basis Earnings $8,369.88 Earnings Reconciliation (Accrual Basis) Total Ending Amortized Value of Securities 7,947,918.65 Ending Accrued Interest 29,553.65 Plus Proceeds from Sales 1,942,920.87 Plus Proceeds of Maturities /Calls /Principal Payments 0.00 Plus Coupons Received 1,764.82 Less Cost of New Purchases (2,077,410.25) Less Beginning Amortized Value of Securities (7,807,524.42) Less Beginning Accrued Interest (25,892.88) Total Accrual Basis Earnings $11,330.44 CPFINY Account 61350001 Page 1 wrrrr } PFM Asset Management LLC A, Portfolio Summary and Statistics NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Description Par Value Market Value Percent U.S. Treasury Bond / Note 3,341,000.00 3,343,847.75 41.91 U.S. Government Supported Corporate 1,830,000.00 1,869,127.55 US TSY Bond / Note 23.43 41.91% Debt Federal Agency Bond / Note 2,750,000.00 2,765,072.75 34.66 Managed Account Sub -Total 7,921,000.00 7,978,048.05 100.00% Accrued Interest 29,553.65 Total Portfolio 7,921,000.00 8,007,601.70 Unsettled Trades 4.54% 51.13% Maturity Distribution 40.59% 0.00 0.00 3.74% 0.00% 1 1 1 1 1 1 1 0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 0.00% 0.00% 4 - 5 Years Over 5 Years For the Month Ending March 31, 2010 Fed Agy Bond / Note 34.66% US Govt Supported Corp Debt 23.43% Yield to Maturity at Cost 1.29% Yield to Maturity at Market 1.04% Duration to Worst 1.75 Weighted Average Days to Maturity 692 P fl, IN i. Account 61350001 Page 2 PFM Asset Management LLC .rrrr� ..r_ ■_err wrwm Managed Account Issuer Summary NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Market Value Issuer of Holdings Percent BANK OF AMERICA CORP TLGP 407,366.00 5.11 CITIGROUP INC 965,731.95 12.10 FANNIE MAE 706,750.00 8.86 FEDERAL FARM CREDIT BANKS 156,375.00 1.96 FEDERAL HOME LOAN BANKS FREDDIE MAC GENERAL ELECTRIC CO UNITED STATES TREASURY Total 781,675.01 9.80 1,120,272.74 14.04 496,029.60 6.22 3,343,847.75 41.91 $7,978,048.05 100.000/0 TSY 41.91% For the Month Ending March 31, 2010 58.09% �-is:- Account 61350001 Page 3 PP I' WF PFM Asset Management LLC � P�M Managed Account Detail of Securities Held For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity U.S. Treasury Bond / Note CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value US TREASURY NOTES 400,000.00 TSY TSY 03/25/10 03/26/10 396,843.75 1.65 254.08 396,861.20 397,656.00 DTD 03/15/2010 1.375% 03/15/2013 Security Type Sub -Total 3,341,000.00 3,333,571.19 1.14 5,009.32 3,335,174.40 3,343,847.75 Supported U.S. Government .. CITIBANK NA (FDIC) NOTE 110,000.00 AAA Aaa 12/16/09 12/17/09 113,974.30 1.02 983.89 113,396.32 113,501.41 DTD 12/09/2008 2.875% 12/09/2011 1 Account 61350001 Page 4 i PFM Asset Management LLC � F '� , Managed Account Detail of Securities Held For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Supported U.S. Government . .. GENERAL ELEC CAP CORP (FDIC) GLOBAL 490,000.00 AAA Aaa 01/06/10 01/07/10 497,541.10 1.45 4,367.47 496,790.56 498,969.94 DTD 01/30/2009 2.125% 04/30/2012 Security Type Sub -Total 1,830,000.00 1,865,115.80 1.40 14,506.77 1,858,310.53 1,869,127.55 Federal Agency :. Note FHLB NOTES 130,000.00 AAA Aaa 02/18/10 02/19/10 129,763.40 1.69 64.55 129,772.02 129,878.13 DTD 02/19/2010 1.625% 03/20/2013 PFII' Account 61350001 Page 5 PFM Asset Management LLC M PFM, �- Managed Account Detail of Securities Held For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity Federal Agency :. Note CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value FHLMC NOTES 300,000.00 AAA Aaa 03/03/10 03/04/10 299,580.00 1.67 365.63 299,590.34 298,218.75 DTD 03/04/2010 1.625% 04/15/2013 Security Type Sub -Total 2,750,000.00 2,758,013.09 1.41 10,037.56 2,754,433.72 2,765,072.75 Managed Account Sub -Total 7,921,000.00 7,956,700.08 1.29 29,553.65 7,947,918.65 7,978,048.05 Securities Sub -Total $7,921,000.00 $7,956,700.08 1.29% $29,553.65 $7,947,918.65 $7,978,048.05 Accrued Interest $29,553.65 Total Investments $8,007,601.70 Account 61350001 Page 6 PFM Asset Management 1.LC WFManaged Account Fair Market Value & Analytics NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description Next Call Market Market Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value US TREASURY NOTES DTD 03/31/2009 0.875% 03/31/2011 US TREASURY NOTES DTD 05/31/2009 0.875% 05/31/2011 US TREASURY NOTES DTD 07/31/2009 1.000% 07/31/2011 US TREASURY NOTES DTD 07/31/2009 1.000% 07/31/2011 US TREASURY NOTES DTD 07/31/2009 1.000% 07/31/2011 US TREASURY NOTES DTD 08/31/2009 1.000% 08/31/2011 US TREASURY NOTES DTD 03/31/2010 1.000% 03/31/2012 US TREASURY NOTES DTD 12/15/2009 1.125% 12/15/2012 US TREASURY NOTES DTD 02/15/2010 1.375% 02/15/2013 US TREASURY NOTES DTD 03/15/2010 1.375% 03/15/2013 Security Type Sub -Total For the Month Ending March 31, 2010 Unreal G/L Unreal G/L Duration YTM On Cost Amort Cost to Worst at Mkt 912828KH2 361,000.00 MORGANST 100.42 362,508.98 (493.44) (194.01) 1.00 0.46 91282803 540,000.00 JPMCHASE 100.43 542,320.38 5,231.32 4,057.95 1.16 0.51 912828LG3 200,000.00 BK AMER 100.52 201,031.20 1,718.70 1,488.91 1.33 0.61 912828LG3 300,000.00 JPMCHASE 100.52 301,546.80 2,835.86 2,413.30 1.33 0.61 912828LG3 400,000.00 CSFB 100.52 402,062.40 1,328.02 1,444.91 1.33 0.61 912828LVO 190,000.00 BNP PARI 100.46 190,875.71 690.16 718.19 1.40 0.67 912828MUI 260,000.00 JPMCHASE 99.95 259,877.80 162.17 161.78 1.98 1.02 912828MB3 200,000.00 DEUTSCHE 99.13 198,265.60 843.72 624.31 2.65 1.45 912828MN7 490,000.00 BK AMER 99.53 487,702.88 (2,852.20) (2,836.79) 2.81 1.54 912828MT4 400,000.00 JEFFERIE 99.41 397,656.00 812.25 794.80 2.88 1.58 3,341,000.00 3,343,847.75 10,276.56 8,673.35 1.80 0.91 CITIBANK NA (FDIC) NOTE 480,000.00 BK AMER 103.34 496,029.60 (621.60) 3,651.54 1.64 1.00 NOTE DTD 12/09/2008 3.000% 12/09/2011 �Pf N1• Account 61350001 Page 7 PFM Asset Management LLC PFM° Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Duration YTM Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost to Worst at Mkt U.S. Government Supported Corporate Debt BANK OF AMERICA CORP (FDIC) GLOBAL 490,000.00 RBS_SEC 101.83 498,969.94 1,428.84 2,179.38 2.02 1.23 DTD 01/30/2009 2.125% 04/30/2012 Security Type Sub -Total 1,830,000.00 1,869,127.55 4,011.75 10,817.02 1.75 1.06 FHLB NOTES 300,000.00 JPMCHASE 99.41 298,218.75 (1,361.25) (1,371.59) 2.95 1.83 DTD 03/04/2010 1.625% 04/15/2013 Security Type Sub -Total 2,750,000.00 2,765,072.75 7,059.66 10,639.03 1.68 1.19 PFM' Account 61350001 Page 8 quPFM Asset Management LLC �i— Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2010 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Duration YTM Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost to Worst at Mkt Managed Account Sub -Total 7,921,000.00 7,978,048.05 21,347.97 30,129.40 1.75 1.04 Securities Sub -Total $7,921,000.00 $7,978,048.05 $21,347.97 $30,129.40 1.75 1.04% Accrued Interest $29,553.65 Total Investments $8,007,601.70 Account 61350001 Page 9 PFM Asset Management LLC M' Managed Account Security Transactions & Interest NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Transaction Type Principal Accrued Trade Settle Security Description CUSIP Par Proceeds Interest Total 03/01/10 03/02/10 US TREASURY NOTES 250,000.00 251,025.39 1,063.70 252,089.09 1,171.88 1,102.93 FIFO DTD 03/31/2009 0.875% 03/31/2011 �PFjl, Account 61350001 Page 30 qu PFM Asset Management LLC ai'7-- P FM Managed Account Security Transactions & Interest NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Transaction Type Principal Accrued Trade Settle Security Description CUSIP Par Proceeds Interest 03/25/10 03/26/10 US TREASURY NOTES 590,000.00 592,442.97 2,153.42 DTD 04/30/2009 0.875% 04/30/2011 For the Month Ending March 31, 2010 Realized G/L Realized G/L Sale Total Cost Amort Cost Method 151,253.46 (216.79) (104.04) FIFO 594,596.39 (69.14) 705.17 FIFO Transaction Type Sub -Total 1,930,000.00 1,937,669.54 5,251.33 1,942,920.87 1,978.14 3,249.49 Managed Account Sub -Total 4,501,000.00 (139,116.30) 6,391.74 (132,724.56) 1,978.14 3,249.49 Total Security Transactions $4,501,000.00 ($139,116.30) $6,391.74 ($132,724.56) $1,978.14 $3,249.49 Pl Nl Account 61350001 Page 11 PFM Asset Management LLC