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12-31-2009 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida Investment Advisors Steven Alexander, CTP, CGFO, Managing Director Mel Hamilton, Senior Managing Consultant David Jang, Senior Managing Consultant Gregg Manjerovic, CFA, Portfolio Manager Rebecca Dole, Consultant Investment Performance Review Quarter Ended December 31, 2009 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 December 31, 2009 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 December 31, 2009 Tab III. December 31, 2009 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 i Market Review January 2010 PFM Asset Management LLC 300 S. Orange Avenue, Ste. 1170 , Orlando, FL 32801 (407) 648 -2208 800 Yes -2 -PFM David Jang - Author Kathleen Edwards —Analyst Melissa Lindman - Editor www.pfm.com • The National Association of Realtors developed the pending home sales index as a leading indicator of housing activity. As such, it is a leading indicator of existing home sales, not new home sales. • Existing home sales fell by 16% in November from the prior month as buyers waited for the tax credit to be extended. Pending home sales fell by 25.7% in the Northeast, 25.7% in the Midwest, 15% in the South, and 2.7% in the West. 30% 20% 10% 0% -10% -20% -30% Pending Home Sales November 2001 —November 2009 Nov -01 Nov -02 Nov -03 Nov -04 Nov -05 Nov -06 Nov -07 Nov -08 Nov -09 O 2010 PFM Asset Management LLC Bloomberg • November's non -farm payroll number was revised upwards to 4,000 making it the first month of job growth in almost two years. • This news, however, was overshadowed by the non -farm payroll number for December which was expected to show neutral or positive growth, but instead showed a disappointing - 85,000. • The only reason that the unemployment rate, which is derived from household data, didn't rise is because the civilian labor force shrank (again) by a whopping 661 K, pushing the participation rate down again to a 15 year low of 64.6 %. 800 N 0 400 L CL 200 E U� U. � 0 � N O M Z = a -200 � -400 t U -600 -800 Dec 03 Change in Non -Farm Payrolls vs. Unemployment Rate December 2003 — December 2009 © 2010 PFM Asset Management LLC Bloomberg Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 11% 10% 9% 8% 7% 6% 5% CD 4% 3% 2% CD 1% 0 ®l0 Dec 09 • The level of the ISM manufacturing index indicates whether manufacturing and the overall economy are growing or declining. Historically, readings of 50 percent or above are associated with an expanding manufacturing sector and healthy GDP growth overall. • Growth in the manufacturing sector is accelerating quickly, according to the ISM report. The headline composite index shows solid month -to -month growth in December at 55.9, greater month -to -month growth than the 53.6 reading in November. But the surprise in the report is new orders which, despite a run of very strong gains in prior months, jumped more than 5 points to 65.5. 65 60 55 50 45 40 35 30 ISM Manufacturing December 2000 — December 2009 Dec -00 Dec -01 Dec -02 Dec -03 Dec -04 Dec -05 Dec -06 Dec -07 Dec -08 Dec -09 2010 PFM Asset Management LLC Bloomberg investments associated with increased Treasury supply. U.S. Treasury Yield Curve December 31, 2008 versus January 7, 2010 070 4% 3% 2% 1% 0% W 3 1 2 3 M y y y --*—January 7, 2010 —December 31, 2008 5 10 30 y y y Maturity @ 2010 PFM Asset Management LLC Source: Bloomberg 12/31/08 1/7/10 Change 3 month 0.08% 0.05% -0.04% 6 month 0.26% 0.15% -0,11% 1 year 0.34% 0.36% +0.02% 2 year 0.77% 1.01% +0.24% 3 year 0.97% 1.57% +0.60% 5 year 1.55% 2.60% +11.05% 10 year 2.20% 3.82% +11.62% 30 year 2.66% 4.70% +2.04% • Short -term rates, which are generally tied to the Federal Funds target rate, remain near record lows despite anticipated inflation concerns from a steadily improving U.S. economy. This week, Federal Reserve Vice Chairman Donald Kohn said that lingering credit constraints are a key reason why there are expectations for strengthening in economic activity to be gradual and the drop in the unemployment rate to be slow. • The spread between 2 year U.S. Treasury vs. 10 year U.S. Treasury notes is often used as an indication of the steepness of the yield curve. • On December 22, 2009 the spread reached an all time high of 2.85°/x. 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0 5°/ 2 Year Treasury vs. 10 Year Treasury January lo, .i 999 — January e, 2u_i u � I� I i 1 I __. .7-.___....__.__ . o Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan 99 00 01 02 03 04 05 06 07 08 09 10 o 2010 PFM Asset Management LLC Source: Bloomberg 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 2 Year Treasury Curve January 6, 2008 — January 6, 2010 0.50% _. _ - - - - -- - - --- - - - - -- 0.00% L ----- - - - - -- Jan 08 May 08 Sep 08 Jan 09 May 09 Sep 09 Jan 10 o 2010 PFM Asset Management LLC Source: Bloomberg 1/12/2010 NFIB Small Business Optimism - - - - 88.3 - - 1/12/2010 Trade Balance - $34.6B - - - $32.9B - - 1/12/2010 IBD /TIPP Economic Optimism - - - - 46.8 - - 1/12/2010 ABC Consumer Confidence - - - - -41 - - 1/13/2010 MBA Mortgage Applications - - - - 0.50% - - 1/13/2010 Monthly Budget Statement - $100.OB - - - $51.88 - - 1/13/2010 Fed's Beige Book 1/14/2010 Import Price Index (MoM) 0.10% - - 1.70% - - 1/14/2010 Import Price Index (YoY) - - - - 3.70% - - 1/14/2010 Advance Retail Sales 0.40% - - 1.30% - - 1/14/2010 Retail Sales Less Autos 0.30% - - 1.20% - - 1/14/2010 Retail Sales Ex Auto & Gas - - - - 0.60% - - 1/14/2010 Initial Jobless Claims 440K - - - - - - 1/14/2010 Continuing Claims 4950K - - - - - - 1/14/2010 Business Inventories 0.00% - - 0.20% - - 1/15/2010 Consumer Price Index (MoM) 0.20% - - 0.40% - - 1/15/2010 CPI Ex Food & Energy (MoM) 0.10% - - 0.00% - - 1/15/2010 Consumer Price Index (YoY) 2.80% - - 1.80% - - 1/15/2010 CPI Ex Food & Energy (YoY) 1.80% - - 1.70% - - 1/15/2010 CPI Core Index SA - - - - 220.527 - - 1/15/2010 Consumer Price Index NSA - - - - 216.33 - - 1/15/2010 Empire Manufacturing 11.25 - - 2.55 - - 1/15/2010 Industrial Production 0.60% - - 0.80% - - 1/15/2010 Capacity Utilization 71.80% - - 71.30% - - • This week the market will focus on the trade balance, retail sales, consumer price index, and industrial production. o 2010 PFM Asset Management LLC Source: Bloomberg t i t • Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. 0 -10 -20 -30 -40 -50 -60 -70 -80 Oct -92 Oct -94 Oct -96 Oct -98 Oct -00 Oct -02 Oct -04 Oct -06 Oct -08 Trade Balance October 1992 — October 2009 ©2010 PFM Asset Management LLC Bloomberg • Retail sales measure the total receipts at stores that sell durable and nondurable goods. Consumer spending accounts for two - thirds of GDP and is therefore a key element in economic growth. 4.00% 3.00% 2.00% 1.00% 0.00% - 1.00% - 2.00% - 3.00% - 4.00% Nov -07 Mar -08 Retail Sales November 2007 — November 2009 Jul -08 Nov -08 Mar -09 Jul -09 Nov -09 Advance Retail Sales ,. ° Retail Sales Less Autos ­­­Retail Retail Sales Ex Auto and Gas o 2010 PFM Asset Management LLC Source: Bloomberg • The consumer price index is the most widely followed monthly indicator of inflation. 225 220 215 210 205 200 CPI November 2007 — November 2009 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% -2.00% The index of industrial production shows how much factories, mines and utilities are producing. The manufacturing sector accounts for less than 20 percent of the economy, but most of its cyclical variation. Consequently, this report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. 2.00% 1.00% 0.00% - 1.00% - 2.00% - 3.00% Industrial Production November 2000 — November 2009 - 4.00% Nov -00 Nov -01 Nov -02 Nov -03 Nov -04 Nov -05 Nov -06 Nov -07 Nov -08 Nov -09 O 2010 PFM Asset Management Source: Bloomberg ■�K!Fll1�� 1 month 0.02% -0.01% - 0.05% -0.01% 3 months 0.05% 0.00% 0.03% -0.05% 6 months 0.16% -0.04% 0.02% -0.13% 12 months 0.37% -0.07% 0.10% -0.04% Agency Bullets 7 -day 0.04% 0.02% -0.02% 0.03% 1 month 0.06% 0.03% 0.01% 0.00% 3 months 0.10% 0.01% 0.02% -0.07% 6 months 0.18% -0.03% 0.01% -0.21% 9 months 0.28% -0.04% 0.03% -0.35% 12 months _...: ,Deposit 0.06% 0.09% - 0.27% Certificates • 1 month 0.22% -0.03% -0.03% -0.37% 3 months 0.24% -0.07% -0.06% -1.12% 6 months 0.42% 0.04% 0.01% -1.30% 9 months 0.59% 0.04% 0.02% - 1.330/4 12 months 0,86% 0.16% 0.16% - 1.27 °la 7 -day 0.16% 0.01% -0.02% -0.19% 1 month 0.19% -0.02% 0.00% -0.19% 3 months 0.23% -0.02% -0.04% -1.15% 6 months 0.37% -0.02% -0.03% -1.38% 9 months 0.54% -0.04% 0.00% -1.46% -Rates as of January 7, 2010 o 2010 PFM Asset Management LLC_ Source: Bloomberg 2 year 1.01% -0.13% 0.29% 0.197% .m*p 3 year 1.57% -0.11% 0.40% 0.47% r 5 ear Y 2.60% , . - 0.09% _ 0.49% __ 0.930X � z year i..i4 "/0 - u."IL "/o u.Zi ro -U.,50 7C 3 year 1.88% -0.10% 0.41% 0.12% 5 year 2.91% -0.07% 0.45% 0.29% -Rates as of January 7, 2010 © 2010 PFM Asset Management LLC 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. © 2009 PFM Asset Management LLC Village of North Palm Beach Previous Quarter December 31 2009 j September 30, 2009 Investment Report - Quarter Ended December 31, 2009 1.56 1.84 1.85 89% 84% Quarterly Sutmnary Report 0.90 % ML 1 -3 Year U.S. Treasury Index 0.75% - -.. 0.81 % .__.._... -._. v K Total Portfolio Value'" December 31, 2009 September 30, 2009 0.25 $7,165.26 Market Value $7,986,427.21 $6,966,233.37 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Amortized Cost $7,975,845.63 $6,934,922.20 Investment Portfolio 1.47% M 1.74% �-r Quarterly Return Annualized Last Last Since Inception . Total Return- .1.1 7...' December 31. 2009 Quarter 12 Months 24 Months June 30, 2009 Investment Portfolio. 0.11% 0.45% NIA NIA 0.90% Merrill I unch 1 -3 Voar I I R Top -tun Ind- n mil / A 0.11% N/A N/A 0,81% Effective Duration(Years)' Investment Portfolio Merrill Lynch 1 -3 Year U.S. Treasury Index Portfolio Duration % of Benchmark Duration Current Quarter Previous Quarter December 31 2009 j September 30, 2009 1.63 1.56 1.84 1.85 89% 84% Quarter Total Return Comparison Quarter Ended 12/31/09 0.50% T -- 0.25% Investment Portfolio E 0.11% ML 1 -3 Year U.S. Treasury Index 0.00% -- __0.03P/ m -0.25% -0.50% , 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Current Quarter A Previous Quarter Quarterly Interest Income (Accrual Basis) December 31. 2009 : September 30, 2009 Investment Portfolio $34,308.26 $13,662.68 TD Bank Monev Market Fund 16.43 6.76 Yields Yield at Market Yield at Cost Current Quarter Previous Quarter December 31, 2009 September 30, 2009 1.13% j 0.88% 1.22% 1.15% Fiscal Year 2010 Fiscal Year 2009 Fiscal Year Interest Income (Accrual Basis) Year to Date Year to Date Investment Portfolio $34,308.26 $33,558.51 TD Bank Monev Market Fund ti, ,_... 16.43 94.97 Total $34,324.69 $13,669.44 Total Return Comparison Since Inception as of $34,324.69 Quarter Ended 12/31/09 1.50% 1.25% __.... _.... _. - 1.00% - Investment Portfolio Year to Date 0.90 % ML 1 -3 Year U.S. Treasury Index 0.75% - -.. 0.81 % .__.._... -._. v K 0.50% Investment Portfolio 0.25 $7,165.26 Current Quarter Previous Quarter -- 0.00% - 0.50 1.00 1.50 2.00 2.50 3.00 Effective Duration (Years) Fiscal Year 2010 Fiscal Year 2009 Fiscal Year Interest Income (Accrual Basis) Year to Date Year to Date Investment Portfolio $34,308.26 $33,558.51 TD Bank Monev Market Fund ti, ,_... 16.43 94.97 Total $34,324.69 $13,669.44 Total $34,324.69 $33,653.48 Current Quarter Previous Quarter Fiscal Year 2010 Fiscal Year 2009 Quarterly Realized Gain /Loss on Cost December 31, 2009 September 30, 2009 Fiscal Year Realized Gain/Loss on Sale Year to Date Year to Date 4 Investment Portfolio `5, $7,107.71 $7,165.26 Investment Portfolio $7,107.71 $7,165.26 Current Quarter Previous Quarter Accrual Based Earnings Yield December 31. 2009 September 30, 2009 Investment Portfolio 1.47% M 1.74% �-r Notes: 1. In order to wmply with GASB accrual accounting mpoding requeemenls; forward eell bade, are included in th monlNy balances. 2. End ofgwrler bade -date market wluesofwrtflio holdings, including accrued interest. 3. The Iressur enl Portfolio's care balance increased due to a SI milion CD maturing on 12/18109 and invested as part of won batanw. 4. Performance on trade date basis, gross le., before fees), I, in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). 5. Merrill Lynch Indices provided by Bloomberg Financial Markets. 6. Quartedy returns ere presenled on both an on -iwol and annualized basis. The annual'¢ed mlurn assumes the quededy reNm is compounded al the same rate for four quarters and is presented for reference only. The actual annual return will be the result of chaining the most recent four quaderty returns. 7. Includes money market fund/w,h in performance and duration computations. 8. Returns presented for 12 m,nft or longer are presented on an annual basis. 9. Past performance is not indimom of future results. FFM Asset Management LLC Section A - 1 Village of North Palm Beach Investment Report - Quarter Ended December 31, 2009 Executive Summary n p,Q T - D 10, BATS' Sam NMI 11111 1 ➢ 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. ➢ Rates fell in the first two months of the quarter before rising precipitously to finish the quarter higher than they started. After hitting an all -time low of 0.65% at the end of November, 2 -year U.S. Treasury yields rose 49 basis points (0.49 %) to end the quarter at 1.14 %. The increase in rates was fueled in part by a slackening of demand from indirect bidders, a class of investors which includes foreign central banks. In the December 28th 2 -Year auction, indirect bidders purchased 34.8% of notes (the lowest amount since July), which was well below the 45% average of the previous 10 auctions. ➢ During the quarter, we found value in FDIC - guaranteed corporate securities with maturities between 2 and 2.5 years. On December 16, 2009, in the Village's Investment Portfolio, we sold a 2 -year Federal Agency security yielding 0.94% and purchased a 2 -year FDIC - guaranteed Citigroup security yielding 1.02 %. At the end of December we also purchased a 2.5 -year FDIC - guaranteed Bank of America security, yielding 1.53 %. ➢ At the December FOMC meeting, the Fed acknowledged improving economic conditions, slowing job losses, and increasing household spending. As a result, the Fed will begin rolling back stimulus measures and will allow the Fed's special liquidity facilities to expire on February 1, 2010. Despite these positive signs, the Fed still points to high unemployment and resource slack as barriers to a full recovery. ➢ As well, at the December meeting, the FOMC reaffirmed that "economic conditions... are likely to warrant exceptionally low levels of the federal funds rate for an extended period" and left the target rate unchanged at the range of 0 %- 0.25 %. Short term rates, anchored to the low target range set by the Fed, are likely to remain low for an extended period as well. ➢ We continued to emphasize safety and liquidity in our management of the Investment 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, as yields fell to historic lows, we allowed durations to drift shorter. When rates picked up at the end of the quarter, we extended duration slightly taking advantage of the higher yields. We are now targeting 80 -85% of benchmark duration. ➢ In the fourth quarter of 2009, the Investment Portfolio provided the Village with favorable performance relative to the benchmark. The portfolio had a total return of 0.11 %, exceeding the return of its Merrill Lynch 1 -3 U.S. Treasury Note Index benchmark by 9 basis points (0.09 %). ➢ 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. ➢ We believe 2010 will continue to provide challenges during a protracted recovery. With interest rates remaining low to begin the year and a possible increase in rates during the year, we anticipate that total returns will be low or may even be negative in the coming quarters. We will closely monitor the markets for opportunities to safely enhance the portfolio's long -term performance by taking advantage of pricing differences that develop between different sectors, maturities and issuers. ➢ We will position the portfolio's duration at approximately 80 % -85% of the benchmark's duration in anticipation that a rise in interest rates may result in negative returns for longer duration portfolios with more exposure to interest rate risk. As well, a shorter duration portfolio allows for the reinvestment of securities at higher yields in the case that interest rates rise. ➢ The yield curve steepened further over the quarter, increasing the value of the "roll down" effect. As securities move closer to maturity, we anticipate selling those securities to reinvest the proceeds in the 3 -year range, where we currently find value. ➢ We will maintain a well- diversified portfolio. We currently see more value in U.S. Treasury securities compared with Agency securities with maturities within 2 years. We will look for opportunities to add value to the portfolio through callable, step -up, and longer -dated Federal Agency securities. As well, we will look for opportunities to add value with FDIC - guaranteed corporate securities. PFM Asset Management LLC Section B -1 Village of North Palm Beach Investment Report - Quarter Ended December 31, 2009 Investment Portfolio Composition and Credit Quality Characteristics Security Type' December 31, 2009 % of Portfolio September 30, 2009 % of Portfolio U.S. Treasuries '; $4,166,718.86 52.2% $4,056,234.97 58.2% Federal Agencies 2,327,527.11 29.1% 1,999,223.98 28.7% Commercial Paper 0.00 0.0% 0.00 0.0% Certificates of Deposit 0.00 0.0% 0.00 0.0% �2 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 1,369,248.42 17.1% 854,839.78 12.3% Mortgage Backed 0.00 0.0% 0.00 0.0% Money Market Fund /Cash 122,932.82 1.5% 55,934.64 0.8% Totals $7,986,427.21 100.0% $6,966,233.37 100.0% Portfolio Composition as of 12/31/09 Money Market Corporate Fund /Cash Notes /Bonds - 2% FDIC Insured 17% i Federal Agency U.S. Treasuries Obligations 52% 29% 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. Credit Quality Distribution 3 as of 12/31/09 PFM Asset Management LLC Section B - 2 Village of North Palm Beach Investment Report - Quarter Ended December 31, 2009 70% Investment Portfolio Maturity Distribution Maturity Distribution' December 31, 2009 September 30, 2009 Overnight (Monedy Market Fund) $122,932.82 $55,934.64 Under 6 Months 0.00 0.00 6 - 12 Months 514,421.88`; 998,075.00 1 - 2 Years 4,738,439.71! 3,739,000.90 2 - 3 Years 2,610,632.80 2,173,222.83 3 - 4 Years 0.00 0.00 4 - 5 Years 0.W 0.00 5 Years and Over 0.00" 0.00 Totals $7,986,427.21 $6,966,233.37 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 Portfolio Maturity Distribution' 70% 60% 59% ❑ December 31, 2009 54% ❑September 30, 2009 g 50% 0 c) 40% �0 33% 31% 1-0 30% 0 20% 14% m C v 10% 6% 1) 2% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% - Overnight Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5 Years and Over 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 December 31, 2009 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 25.0% 20.0% 15.0% Cd Cd 10.0% 5.0% n I I 0.0% -� _i, . 00 �h hO Years to Maturity InvestmentPoitfolio 0Merrill Lynch 1 -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 (All Assets)' Asset Allocation as of December 31, 2009* Security Type December 31, 2009 December 31, 2009 Notes Permitted by Florida SBA 396,924.26 2.04% 2 25% United Slates Treasury Securities 4,164,347.85 21.35% 100 United States Government Agency Securities - 0.00% 100 Federal Instrumentalities 2,318,843.30 11.89% 50% Certificates of Deposit - 0.00% 100% Repurchase Agreements - 0.00% 0% Commercial Paper - 0.00% 0% Corporate Notes 1,369,721.66 7.02% 25% Mortgage - Backed Securities - 0.00% 0% Bankers' Acceptances - 0.00% 0% Money Market Mutual Funds _ 2,841,412.27 14.57% 50% Intergovernmental Investment Pool - 0.00% 25% Interest Bearing Checking or Savings Account 8,412,913.39 43.13% 2 100% Village Managed $11,528,317.10 59.11 Permitted by Policy PFM Managed $7,975,845.63 40.89% 33% Total $19,504,162.73 100.00% 33% Individual Issuer Breakdown December 31, 2009 December 31, 2009 Notes Permitted by Policy Government National Mortgage Association (GNMA) - 0.00% 100% US Export- Import Bank (Ex-1m) - 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) 157,516.34 0.81% 10% Federal Home Loan Bank (FHLB) 1,167,842.95 5.99% 10% Federal National Mortgage Association (FNMA) 502,979.29 2.58% 10% Federal Home Loan Mortgage Corporation (FHLMC) 490,504.72 2.51% 10% Student Loan Marketing Association (SLMA) - 0.00% 0% Notes: 1. All Assets. 2. These Accounts are managed by the Village. 'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis. Asset Allocation as of December 31, 2009 Money Market Mutual Corporate Notes Funds 7.02% Federal Instrumentalities 11.89% Interest Bearing Checking orSavings Account 43.13% United States Treasury Securities Florida SBA 21.35 % 2.04% Individual Issuer Breakdown December 31, 2009 December 31, 2009 Notes Permitted by Policy CD - BankA - 0.00% 33% CD - Bank 8 - 0.00% 33% Interest Bearing Checking or Savings Account - Wachovia 8,412,913.39 43.13% 2 50% Interest Bearing Checking or Savings Account - B - 0.00% 50% Citigroup Corporal Notes - FDIC insured 468,075.66 2.40% 33% General Electric Corporate Notes - FDIC insured 495,063.61 2.54% 33% Bank of America Corporate Notes - FDIC insured 406,582.39 2.08% 33% Corporate Notes D - 0.00% 33% Corporate Notes E - 0.00% 33% Money Market Fund - TD Bank Sweep Account 122,932.82 0.63% 33% Money Market Fund - Evergreen 2,718,479.45 13.94% 2 33% PFM Asset Management LLC Section C - I Accrual Basis Earnings Summary for NPALMBCH Settlement Basis 06/30/09 07/31/09 08/31/09 09/30/09 Quarter End Portfolio Balances: July-09 August -09 (1) Amortized Cost of Holdings $ 6,354,621.77 $ 6,855,935.62 $ 6,851,114.00 $ 6,849,714.80 (2) Accrued Interest 15,333.60 16,392.18 23,546.82 29,272.76 Amortized Cost of Securities $ 6,369,955.37 $ 6,872,327.80 $ 6,874,660.82 $ 6,878,987.56 (3) Reconcilled Money Fund Balance $534,552.01 $46,400.64 $53,747.19 $55,934.64 Total Amortized Cost of Portfolio $ 6,904,507.38 $ 6,918,728.44 $ 6,928,408.01 $ 6,934,922.20 (1) Detail of Securities Held page Amortized Cost total. (2) Detail of Securities Held page Accrued Interest total. (3) Cash /Money Report page Cash /Money Fund Balance. (4) Security Transactions & Interest page subtotal Sales. (5) Security Transactions & Interest page subtotal Maturities, Sinks, MBS Pmts., Calls (6) Security Transactions & Interest page subtotal Interest. (7) Security Transactions & Interest page subtotal Buys. (8) Bank Statement vs PFM Statement Reconciled Cash +Money Fund Balance Net Cash Contributions /(Withdraws) 0.00 0.00 (0.05) (0.05) CHECK: (Earnings) -(Net Chg) +(Net Cash) =Zero (0.05) 0.00 0.00 (0.05) Monthly Earnings Yield 2.42% 1.65% 1.14% 1.74% Net Change in Amortized Cost $ 14,221.06 $ 9,679.57 $ 6,514.19 $ 30,414.82 July-09 August -09 September -09 Quarter End Portfolio Earnings: Ending Amortized Cost of Securities $ 6,872,327.80 $ 6,874,660.82 $ 6,878,987.56 $ 6,878,987.56 (4) Plus Proceeds on Sales 3,054,986.95 1,799,999.70 - 4,854,986.65 (5) Plus Proceeds of Maturities - - - - (6) Plus Coupons Received 308.87 2,907.49 2,187.50 5,403.86 (7) Less Cost of New Purchases (3,543,447.24) (1,795,560.64) - (5,339,007.88) Less Beginning Amortized Cost of Securities (6,369,955.37) (6,872,327.80) (6,874,660.82) (6,369,955.37) (8) Plus (Minus) Reconciling Transactions - Total Portfolio Accrual Basis Earnings $ 14,221.01 $ 9,679.57 $ 6,514.24 $ 30,414.82 (1) Detail of Securities Held page Amortized Cost total. (2) Detail of Securities Held page Accrued Interest total. (3) Cash /Money Report page Cash /Money Fund Balance. (4) Security Transactions & Interest page subtotal Sales. (5) Security Transactions & Interest page subtotal Maturities, Sinks, MBS Pmts., Calls (6) Security Transactions & Interest page subtotal Interest. (7) Security Transactions & Interest page subtotal Buys. (8) Bank Statement vs PFM Statement Reconciled Cash +Money Fund Balance Net Cash Contributions /(Withdraws) 0.00 0.00 (0.05) (0.05) CHECK: (Earnings) -(Net Chg) +(Net Cash) =Zero (0.05) 0.00 0.00 (0.05) Monthly Earnings Yield 2.42% 1.65% 1.14% 1.74% Accrual Basis Earnings Summary for NPALMBCH 61350001 Settlement Basis 09/30/09 10/31/09 11/30/09 12131/09 Quarter End Portfolio Balances: October -09 November -09 (1) Amortized Cost of Holdings $ 6,849,714.80 $ 6,843,331.64 $ 6,834,616.58 $ 7,824,792.55 (2) Accrued Interest 29,272.76 19,208.79 26,275.41 28,120.26 Amortized Cost of Securities $ 6,878,987.56 $ 6,862,540.43 $ 6,860,891.99 $ 7,852,912.81 (3) Reconcilled Money Fund Balance $55,935.98 $83,091.10 $91,904.00 $122,932.82 Total Amortized Cost of Portfolio $ 6,934,923.54 $ 6,945,631.53 $ 6,952,795.99 $ 7,975,845.63 (1) Detail of Securities Held page Amortized Cost total. (2) Detail of Securities Held page Accrued Interest total. (3) Cash /Money Report page Cash /Money Fund Balance. (4) Security Transactions & Interest page subtotal Sales. (5) Security Transactions & Interest page subtotal Maturities, Sinks, MBS Pmts., Calls (6) Security Transactions & Interest page subtotal Interest. (7) Security Transactions & Interest page subtotal Buys. (8) Bank Statement vs PFM Statement Reconciled Cash +Money Fund Balance Net Cash Contributions /(Withdraws) 0.00 0.00 1,014,599.99 1,014,599.99 CHECK: (Earnings) -(Net Chg) +(Net Cash) =Zero 0.00 0.00 0.00 0.00 Monthly Earnings Yield 1.82% 1.25% 1.33% 1.47% Net Change in Amortized Cost $ 10,707.99 $ 7,164.46 $ 1,023,049.64 $ 1,040,922.09 October -09 November -09 December -09 Quarter End Portfolio Earnings: Ending Amortized Cost of Securities $ 6,862,540.43 $ 6,860,891.99 $ 7,852,912.81 $ 7,852,912.81 (4) Plus Proceeds on Sales 1,061,955.28 399,686.99 664,716.82 2,126,359.09 (5) Plus Proceeds of Maturities - - - - (6) Plus Coupons Received 19,145.49 2,511.25 8,700.11 30,356.85 (7) Less Cost of New Purchases (1,053,945.65) (393,385.34) (1,656,988.10) (3,104,319.09) Less Beginning Amortized Cost of Securities (6,878,987.56) (6,862,540.43) (6,860,891.99) (6,878,987.56) (3) Plus (Minus) Reconciling Transactions - Total Portfolio Accrual Basis Earnings $ 10,707.99 $ 7,164.46 $ 8,449.65 $ 26,322.10 (1) Detail of Securities Held page Amortized Cost total. (2) Detail of Securities Held page Accrued Interest total. (3) Cash /Money Report page Cash /Money Fund Balance. (4) Security Transactions & Interest page subtotal Sales. (5) Security Transactions & Interest page subtotal Maturities, Sinks, MBS Pmts., Calls (6) Security Transactions & Interest page subtotal Interest. (7) Security Transactions & Interest page subtotal Buys. (8) Bank Statement vs PFM Statement Reconciled Cash +Money Fund Balance Net Cash Contributions /(Withdraws) 0.00 0.00 1,014,599.99 1,014,599.99 CHECK: (Earnings) -(Net Chg) +(Net Cash) =Zero 0.00 0.00 0.00 0.00 Monthly Earnings Yield 1.82% 1.25% 1.33% 1.47% Affi:-- �4�t i FM Customer Service PO Box 11813 Harrisburg, PA 17108 -1813 ACCOUNT STATEMENT Contents Cover /Disclosures Summary Statement Individual Accounts Accounts included in Statement [.i S c 3.7 � I � I � � � ► [ sT:i :: � 7_1 I !'u 1 ��_Ti l : � f ► l�l �� :'u l � ► : � Z i 7 �: 3 i ] � [ i 7 VILLAGE OF NORTH PALM BEACH SAM IA JANJUA 501 US HIGHWAY 1 NORTH PALM BEACH, FL 33408 Online Access www.Pfm.com Customer Service 1- 717 - 232 -2723 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. 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 ( "MSRB "). 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. 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 ff Managed Account Summary Statement For the Month Ending December 31, 2009 r ,rfif O P.,L CHIT E0' F 613 OU �� p -, ., ,S:R.0 v..,� �. ��.,�. � •.::,,<., , � � n2� � .k��.��. r i.. ,A Opening-. ..h:,.c.m,5. .... .t YF9rer� «.. ,., s r. � M1a � �?., iC. •. <,�, ..Er ,�, _ �.., .. < .f ..�, .. , . i ... k � - ..-. .: , .. .. .. Opening Market Value $6,891,973.80 Maturities /Calls 0.00 Sale Proceeds 664,716.82 Maturities /Calls 0.00 Coupon /Interest Income 8,700.11 Principal Dispositions (662,287.16) Principal Payments 0.00 Principal Acquisitions 1,652,975.59 Security Purchases (1,656,988.10) Unsettled Trades 0.00 Net Cash Contribution 1,014,599.99 Change in Current Value (47,288.10) Reconciling Transactions 0.00 Closing Market Value $7,835,374.13 Earnings Reconciliation (Cash Basis) - Managed Account Interest /Coupons Received 11,129.77 Cash Balance Closing Cash Balance $122,932.82 Less Purchased Interest Related to Interest /Coupons (4,012.51) Plus Net Realized Gains /Losses 1,385.37 Total Cash Basis Earnings $8,502.63 Earnings Reconciliation (Accrual Basis) Ending Amortized Value of Securities Total 7,824,792.55 Ending Accrued Interest 28,120.26 Plus Proceeds from Sales 664,716.82 Plus Proceeds of Maturities /Calls /Principal Payments 0.00 Plus Coupons Received 8,700.11 Less Cost of New Purchases (1,656,988.10) Less Beginning Amortized Value of Securities (6,834,616.58) Less Beginning Accrued Interest (26,275.41) Total Accrual Basis Earnings $8,449.65 —ff— Account 61350001 Page 1 �PPN1' vPFM Asset Management LLC Description Par Value Market Value Percent U.S. Treasury Bond / Note 4,160,000.00 4,156,699.37 53.05 U.S. Government Supported Corporate 1,340,000.00 1,364,112.25 17.41 Debt Federal Agency Bond / Note 2,290,000.00 2,314,562.51 29.54 Managed Account Sub -Total 7,790,000.00 7,835,374.13 100.00% Accrued Interest 28,120.26 Total Portfolio 7,790,000.00 7,863,494.39 Unsettled Trades 60.28% Maturity Distribution 0.00 0.00 0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years US TSY Bond / 53.05% Fed Agy Bond / Note 29.54% JS Govt Supported Corp Debt 17.41% Yield to Maturity at Cost 1.22% Yield to Maturity at Market 1.13% Duration to Worst 1.61 Weighted Average Days to Maturity 647 �1< Account 61350001 Page 2 PFM Asset Management LLC Issuer Market Value of Holdings Percent BANK OF AMERICA CORP 403,692.40 5.15 CITIGROUP INC 465,625.29 5.94 FANNIE MAE 505,156.25 6.45 FEDERAL FARM CREDIT BANKS 156,796.88 2.00 FEDERAL HOME LOAN BANKS 1,163,015.63 14.84 FREDDIE MAC 489,593.75 6.25 GENERAL ELECTRIC CO 494,794.56 6.31 UNITED STATES TREASURY 4,156,699.37 53.06 Total $7,835,374.13 100.000/0 TSY 53.05% AAA 46.95% �`1, Account 61350001 Page 3 ivPFM Asset Management 11..0 PM Managed Account Detail of Securities Held For the Month Ending December 31, 2009 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 U.S. Treasury :• Note US TREASURY NOTES 550,000.00 TSY TSY 12/28/09 12/30/09 542,910.16 1.57 288.98 542,923.28 541,189.00 DTD 12/15/2009 1.125% 12/15/2012 Security Type Sub -Total 4,160,000.00 4,153,618.37 1.02 10,019.49 4,154,328.36 4,156,699.37 Supported U.S. Government .• CITIBANK NA (FDIC) NOTE 110,000.00 AAA Aaa 12/16/09 12/17/09 113,974.30 1.02 193.26 113,891.73 113,299.89 DTD 12/09/2008 2.875% 12/09/2011 Account 61350001 Page 4 `q 4 PFM Asset Management LLC , Managed Account Detail of Securities Held For the Month Ending December 31, 2009 NORTH' PALM BEACH INVESTMENT P0RTF0.L:I0 - 6, 135000,1 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 U.S. Government Supported Corporate GENERAL ELEC CAP CORP (FDIC) GLOBAL 400,000.00 AAA Aaa 12/29/09 12/30/09 405,171.20 1.53 1,423.33 405,159.06 403,692.40 MTN DTD 01/30/2009 2.100% 04/30/2012 Security Type Sub -Total Note Federal Agency Bond 1,340,000.00 1,367,574.70 1.38 5,136.17 1,364,585.49 1,364,112.25 / GLOBAL NOTES 3137EACC1 150.000.00 AAA Aaa 07/08/09 07/09/09 150.124.95 1.72 116.67 150,104.44 150,656.25 DTD 05/21/2009 1.750% 06/15/2012 Security Type Sub -Total 2,290,000.00 2,315,966.65 1.49 12,964.60 2,305,878.70 2,314,562.51 Managed Account Sub -Total 7,790,000.00 7,837,159.72 1.22 28,120.26 7,824,792.55 7,835,374.13 � `1, Account 61350001 Page 5 PFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending December 31, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO.-- 61350001 Securities Sub -Total $7,790,000.00 $7,837,159.72 1.22% $28,120.26 $7,824,792.55 $7,835,374.13 Accrued Interest $28,120.26 Total Investments $7,863,494.39 ��t, Account 61350001 Page 6 PFM Asset Management LLC US TREASURY NOTES DTD 01/31/2009 0.875% 01/31/2011 US TREASURY NOTES DTD 03/31/2009 0.875% 03/31/2011 US TREASURY NOTES DTD 04/30/2009 0.875% 04/30/2011 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 04/15/2009 1.375% 04/15/2012 US TREASURY NOTES DTD 12/15/2009 1.125% 12/15/2012 912828JY7 390,000.00 CITIGRP 100.31 391,218.75 (1,081.64) (884.62) 1.07 0.59 912828KH2 500,000.00 CSFB 100.18 500,917.97 1,210.94 1,108.25 1.24 0.73 912828KL3 590,000.00 JPMCHASE 100.13 590,783.52 (1,728.59) (1,345.84) 1.32 0.77 912828KU3 540,000.00 JPMCHASE 100.12 540,653.91 3,564.85 2,759.43 1.40 0.79 912828LG3 200,000.00 BK AMER 100.15 200,304.60 992.10 847.07 1.56 0.90 912828LG3 300,000.00 JPMCHASE 100.15 300,456.90 1,745.96 1,483.87 1.56 0.90 912828LG3 400,000.00 CSFB 100.15 400,609.20 (125.18) (122.64) 1.56 0.90 912828LVO 190,000.00 BNP PARI 100.05 190,096.52 (89.03) (88.42) 1.64 0.97 912828KK5 500,000.00 BK AMER 100.09 500,469.00 312.75 348.19 2.24 1.33 912828MB3 550,000.00 DEUTSCHE 98.40 541,189.00 (1,721.16) (1,734.28) 2.89 1.68 Security Type Sub -Total 4,160,000.00 4,156,699.37 3,081.00 2,371.01 1.68 0.97 ELEC CAP CORP (FDIC) GLOBAL 36967HAD9 480,000.00 BK AMER 103.08 494,794.56 (1,856.64) 610.95 1.88 1.38 NOTE DTD 12/09/2008 3.000% 12/09/2011 � 1. Account 61350001 Page 7 WOPFM Asset Management LLC g - PFi\ ' Managed Account Fair Market Value & Analytics For the Month Ending December 31, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO - `613500b1 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 Government .p. rted Corpo BANK OF AMERICA CORP (FDIC) GLOBAL 400,000.00 BARCLAYS 100.92 403,692.40 (1,478.80) (1,466.66) 2.26 1.69 MTN DTD 01/30/2009 2.100% 04/30/2012 Security Type Sub -Total 1,340,000.00 1,364,112.25 (3,462.45) (473.24) 1.90 1.39 FHLB GLOBAL BONDS 150,000.00 CITIGRP 100.44 150,656.25 531.30 551.81 2.39 1.57 DTD 05/21/2009 1.750% 06/15/2012 Security Type Sub -Total 2,290,000.00 2,314,562.51 (1,404.14) 8,683.81 1.33 1.25 Managed Account Sub -Total 7,790,000.00 7,835,374.13 (1,785.59) 10,581.58 1.61 1.13 Securities Sub -Total $7,790,000.00 $7,835,374.13 ($1,785.59) $10,581.58 1.61 1.13% Accrued Interest $28,120.26 Total Investments $7,863,494.39 � 41' Account 61350001 Page 8 iuPFM Asset Management LLC 12/16/09 TREASURY NOTES 912828LVO 190,000.00 (190,185.55) (635.08) (190,820.63) DTD 08/31/2009 1.000% 08/31/2011 Transaction Type Sub -Total 1,650,000.00 (1,652,975.59) (4,012.51) (1,656,988.10) 12/09/09 12/09/09 GENERAL ELEC CAP CORP (FDIC) 0.00 0.00 12.61 12.61 Transaction Type Sub -Total 630,000.00 0.00 8,700.11 8,700.11 12/16/09 12/17/09 FNMA NOTES 20,000.00 20,079.69 87.02 20,166.71 25.00 42.21 FIFO DTD 12/31/2008 0.875% 12/31/2010 �.1 Account 61350001 Page 9 PFM Asset Management LLC �M' Managed Account Security Transactions & Interest For the Month Ending December 31, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO 61350001 Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method Transaction Type Sub -Total 660,000.00 662,287.16 2,429.66 664,716.82 1,385.37 1,731.66 Managed Account Sub -Total 2,940,000.00 (990,688.43) 7,117.26 (983,571.17) 1,385.37 1,731.66 Total Security Transactions $2,940,000.00 ($990,688.43) $7,117.26 ($983,571.17) $1,385.37 $1,731.66 � W 1, Account 61350001 Page SO PFM Asset Management LLC Page: I MATURITY BOND EQUIV. PORTF TRADE SETTLE TRAN TYPE CUSIP SECURITY DESCRIPTION COUPON DATE BROKER PAR VALUE PRICE/RATE YIELD G/L ON SALE NET AMOUNT NPALIVCI `' 61350001 NORTH PALM BEACH INVESTMENT PORTFOLIO 08/06/09 08/07/09 SELL 912795569 US TREASURY BILL 12/17/2009 JPMCHASE 300,000.00 99.9230 .213 143.00 299,769.00 Page: I (998,442.30) Page: 2 BOND EQUIV. MATURITY PRICE/RATE PORTF TRADE SETTLE TRAN TYPE CUSIP SECURITY DESCRIPTION COUPON DATE BROKER 12/28/09 12/30/09 SELL 912828JV3 US TREASURY NOTES 0.875 12/31/2010 CSFB (998,442.30) Page: 2 BOND EQUIV. PAR VALUE PRICE/RATE YIELD G/L ON SALE NET AMOUNT 1,000.99 (300,000.00) 99.6725 .404 (299,017.43) 300,000.00 99.9180 1.043 761.14 299,892.50 875.07 (700,000.00) 99.6920 .391 (697,844.00) 700,000.00 99.9435 .183 351.55 699,604.50 1,760.50 (480,000.00) 103.4690 1.442 (499,931.20) 500,000.00 100.0625 .967 1,958.26 500,733.70 802.50 (590,000.00) 100.4258 .602 (594,742.65) 300,000.00 99.8405 .236 313.90 299,521.44 300,000.00 99.8405 .236 338.59 299,521.44 4,300.23 (120,000.00) 99.7580 1.116 (119,709.60) 120,000.00 100.3594 .655 975.46 120,807.07 1,097.47 (340,000.00) 99.8510 1.195 (339,493.40) 340,000.00 100.2773 .701 2,454.01 342,105.33 2,611.93 (390,000.00) 100.5898 .374 (393,385.34) 400,000.00 99.9217 .145 529.71 399,686.99 6,301.65 (110,000.00) 103.6130 1.025 (114,044.58) 120,000.00 100.1130 .941 400.14 120,215.60 6,171.02 (400,000.00) 101.2928 1.534 (406,571.20) (400,000.00) 100.1836 .883 (402,386.55) (190,000.00) 100.0977 .941 (190,820.63) (550,000.00) 98.7109 1.573 (543,165.14) 20,000.00 100.3984 .476 42.21 20,166.71 520,000.00 100.3984 .476 1,289.31 524,334.51 (998,442.30) Page: 2 MATURITY PORTF TRADE SETTLE TRAN TYPE CUSIP SECURITY DESCRIPTION COUPON DATE BROKER BOND EQUIV. PAR VALUE PRICE/RATE YIELD G/L ON SALE (7,790,000.00) 17,844.70 NET AMOUNT (7,842,685.27) Page: