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03-31-2015 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida North l Investment Performance Review Quarter Ended March 31, 2015 Investment Advisors PFM Asset Management LLC Steven Alexander, CTP, CGFO, CPPT, Managing Director D. Scott Stitcher, CFA, Senior Managing Consultant Richard Pengelly, CFA, CTP, Senior Managing Consultant Gregg Manjerovic, CFA, Portfolio Manager Rebecca Geyer, CTP, Senior Analyst One Keystone Plaza, Suite 300 North Front & Market Streets Harrisburg, PA 17101 -2044 717 - 232 -2723 • 717 - 233 -6073 fax 300 S. Orange Avenue, Suite 1170 Orlando, FL 32801 (407) 648 -2208 (407) 648 -1323 fax _e Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 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, 2015 Tab III. March 31, 2015 PFM Month -End Statement (statements are available online at www.pfm.com) This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. Table of Contents Section i Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 TAB I Village of North Palm Beach, Florida Summary ■ For the first quarter of 2015, accommodative global central bank policies were a major driver of financial markets. The European Central Bank (ECB) initiated an asset purchase program similar to the Federal Reserve's (Fed's) quantitative easing (QE) policies that concluded last year, and the Federal Open Market Committee (FOMC) seemed to relax its stance on tightening monetary policy in the near future. ■ U.S. Treasuries experienced their longest period of quarterly gains since 1998. The 10 -year Treasury yield fell for the fifth consecutive quarter. ■ After a brief period of recovery, oil prices headed toward the lower end of recent ranges. Economic Snapshot ■ For the fourth quarter of 2014, gross domestic product (GDP) grew at a pace of 2.2 %. The components of the GDP report showed that household spending rose to a nine -year high and that an increase in exports was offset by growth in inventories, which were weaker than previously expected. ■ The U.S. labor market continued to improve, as the unemployment rate fell from 5.6% in December to 5.5% in March, marking its lowest point since mid- 2008. ■ Consumer confidence for the first quarter reached its highest level since the second quarter of 2007, as lower gasoline prices and an increase in personal income helped generate higher amounts of disposable income. However, consumers slowed the pace of their spending for the quarter, as retail sales fell for the months of December, January, and February. ■ New -home sales rose nearly 8% in February, marking their highest level since early 2008 and serving as a bright spot in a mixed bag of recent housing- market data. Investment Report — Quarter Ended March 31, 2015 Interest Rates ■ At its March meeting, the FOMC removed the word "patient" from its previous statement, indicating that the current target range for the federal funds rate will be appropriate until the FOMC is "reasonably confident" that inflation is moving toward its 2% objective. The statement also implied that economic growth has been somewhat weaker than it was earlier in the year. ■ A Reuters poll released at the end of March showed that 17 of 21 primary dealers expect the first interest rate hike to occur in September at the earliest, with only four dealers expecting the first hike to occur in June. Sector Performance ■ Driven by a Treasury market rally, fixed - income market performance was generally positive for the quarter. Returns were dependent on both maturity and sector. ■ The yield curve flattened modestly over the quarter as longer maturities declined further than shorter maturities. This market movement and its positive impact on longer durations combined to provide performance in excess of initial yields. ■ Agency spreads for short and intermediate maturities widened modestly during the quarter. Accordingly, the sector's performance was largely in line with comparable- maturity Treasuries. ■ Corporate securities slightly outperformed government - related options with similar maturities, as they were aided by excess income and a relatively unchanged yield spread relationship. ■ While still generating positive performance, mortgage- backed and asset - backed securities trailed other high - quality investment options for the quarter. ■ Yields on money market - related securities remained at the elevated levels to which they rose at the end of 2014, making them attractive options for short - maturity investment needs. PFM Asset Management LLC Section A -1 Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 Economic Snapshot Labor Unemployment Rate Mar'l5 5.5% 5.6% 6.6% Unemployment Rate (left) vs. Change in Nonfarm Pay ro l Is (right) 10% 400K Change In Non -Farm Payrolls Mar'l5 126,000 329,000 225,000 � Changeln Nonfarm Payrolls unempIoymentRate 350K 8% I 300K I I 250K �' Average Hourly Earnings (YoY) Marl 2.1% 1.8% 2.2% 6% �� 200K 15 OK Personal Income (YoY) Feb'l5 4.5% 4.8% 3.7% I I I 1115 K 4% 500 I ° ' Initial Jobless Claims (week) 3/27/15 268,000 293,000 329,000 3/31/12 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 • Real GDP (QoQ SAAR) 2014Q4 2.2% 5.0 %1 3.5% Z Real GDP (QoQ) 6% GDP Personal Consumption (QoQ SAAR) 2014Q4 4.4% 3.2 %t 3.7%2 4% 2% Retail Sales (YoY) Feb'l5 1.7% 3.3% 4.1% 0% ISM Manufacturing Survey (month) Mar'l5 51.5 55.1 54.4 -p /° -4% Existing Home Sales SAAR (month) Feb'l5 4.88 mil. 5.07 mil. 4.70 mil. 12/31/11 6/30/12 12/31/12 6/30/13 12/31/13 6/30/14 12131/14 Inflation Personal Consumption Expenditures (YoY) Feb'l5 0.3% 0.8% 1.2% Cons umer Price Index 4% -CPI (YoY) Core CPI (YoY) Consumer Price Index (YoY) Feb'l5 0.0% 0.8% 1.5% 3% Consumer Price Index Core (YoY) Feb'l5 1.7% 1.6% 1.7% 1% v v Crude Oil Futures (WTI, per barrel) Mar 31 $47.60 $53.27 $101.58 0% -1% Gold Futures (oz.) Mar 31 $1,183 $1,184 $1,283 2/29/12 8/31/12 2/28/13 8/31/13 2/28/14 8/31/14 2/28/15 1. Data as of Third Quarter 2014 2. Data as of Fourth Quarter 2013 Source: Bloomberg Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil PFM Asset Management LLC Section A -2 Village of North Palm Beach, Florida 3.0% 2.5% 2.0% m 1.5% } 1.0% 0.5% 0.0% 12/31/14 Investment Report — Quarter Ended March 31, 2015 Investment Rate Overview U.S. Treasury Note Yields 1/31/15 2/28/15 3/31/15 2 -Year ......•• 5 -Year 10 -Year U.S. Treasury Yields 3 -month 0.02% 0.04% Change over e (0.02 %) 0.03% Change (0.01%) 1 -year 0.23% 0.22% 0.01% 0.11% 0.12% 2 -year 0.56% 0.67% (0.11 %) 0.42% 0.14% 5 -year 1.37% 1.65% (0.28%) 1.72% (0.35%) 10 -year 1.92% 2.17% (0.25%) 2.72% (0.80%) 30 -year 2.54% 2.75% (0.21%) 3.56% (1.02 %) Source: Bloomberg PFM Asset Management LLC 4% 3% 'a 2% m } 1% 0% W N W T �I 3� O March 31. 2015 U.S. Treasury Yield Curve W O Maturity December 31. 2014 — — March 31. 2014 Yield Curves as of 3/31/2015 4% 1 % / --------- - - - - -- 0% ° J W N W Y, U O Maturity U.S. Treasury Federal Agency — — Industrial Corporates, A Rated Section A -3 Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 BofA Merrill Lynch Index Returns As of 3/31/15 Returns for Periods ended 3/31/15 Returns for periods greater than one year are annualized. Source: BofA Merrill Lynch Indices Source: BofA Merrill Lynch Indices PFM Asset Management LLC Section A -4 Duration Yield 3 Month 1 Year 3 Years Year • U.S. Treasury 1.87 0.55% 0.52% 1.00% 0.67% Federal Agency 1.72 0.68% 0.54% 1.07% 0.74% U.S. Corporates, A -AAA rated 2.05 1.24% 0.77% 1.43% 1.86% Agency MBS (0 to 3 years) 2.07 1.36% 0.41% 1.25% 1.18% Municipals 1.75 0.65% 0.26% 0.73% 0.88% Year • U.S. Treasury 2.69 0.81% 0.92% 1.91% 1.02% Federal Agency 2.15 0.84% 0.79% 1.77% 1.06% U.S. Corporates, A -AAA rated 2.87 1.56% 1.20% 2.57% 2.64% Agency MBS (0 to 5 years) 3.29 1.88% 0.83% 3.79% 2.20% Municipals 2.54 0.95% 0.35% 1.24% 1.30% Indices Master or U.S. Treasury 6.23 1.33% 1.75% 6.15% 2.57% Federal Agency 3.72 1.21% 1.27% 4.07% 1.97% U.S. Corporates, A -AAA rated 6.96 2.52% 2.18% 6.93% 4.84% Agency MBS (0 to 30 years) 3.78 2.11% 1.00% 5.48% 2.51% Municipals 6.80 2.18% 1.09% 6.90% 4.23% Returns for periods greater than one year are annualized. Source: BofA Merrill Lynch Indices Source: BofA Merrill Lynch Indices PFM Asset Management LLC Section A -4 Village of North Palm Beach, Florida Disclosures Investment Report — Quarter Ended March 31, 2015 The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC ( PFMAM) at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFMAM cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and i s specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. Further distribution is not permitted without prior written consent. not intended to provide PFM Asset Management LLC Section A -5 Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 TAB II Village of North Palm Beach, Florida Current Quarter Previous Quarter Investment Report - Quarter Ended March 31, 2015 Previous Quarter Effective Duration(Years)°° March 31, 2015 December 31, 2014 Quarterly Summary Report December 31. 2014 Investment Portfolio 1.85 Total Portfolio Value' March 31,2015' December 31, 2014 Merrill Lynch 1 -3 Year U.S. Treasury Index Market Value $8,946,712.63 $8,403,999.45 0.71% Amortized Cost $8,919,189.90 $8,402,38922 Quarterly Return Last Last Last Last Since Inception Total Return "° March 31, 2015 12 Months 2 Years 3 Years 5 Years June 30, 2009 Investment Portfolio 0.50% 1.06% 0.71% 0.69% 0.99% 1.14% ML 1 -3 Year U.S. Treasury Index 0.52% *Investment Portfolio 0.50% 1.00 1.50 2.00 Quarterly Interest Income Investment Portfolio TD Bank Money Market Fund Total Quarterly Realized Gain /Loss on Cost Investment Portfolio Current Quarter Previous Quarter March 31, 2015 December 31, 2014 $24,320.1 $22,631.56 1.3 0.73 uuarrer tnoeo uaia if to ML 1 -3 Year U.S. Treasury Index Investment Portfolio 1.15% N 1.14% 1.50 2.00 R Fiscal Year 2015 111= Fiscal Year 2014 Fiscal Year Interest Income Year to Date Investment Portfolio $46,951.71 $99,538.13 TD Bank Money Market Fund 2.12 6.50 .29 Total Current Quarter Previous Quarter Fiscal Year 2015 Fiscal Year 2014 March 31. 2015 December 31.2014 Fiscal Year Realized Gain /Loss on Cost Year to Date ($12,200.17 ($882.90) Investment Portfolio ($13,083.07) (29,087.79) Notes: 1. In order to comply with GASS accrual accounting reporting requirements. End of quarter trade -date market values of portfolio holdings, including accrued interest. 2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). Quarterly retumsare presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results. 3. Since inception the benchmark has been the Merrill Lynch 1 -3 Year U.S. Treasury Note Index. 4. Merrill Lynch Indices provided by Bloomberg Financial Markets. 5. Includes money market fund /cash in performance and duration computations. PFM Asset Management LLC Section A - 1 Current Quarter Previous Quarter Current Quarter Previous Quarter Effective Duration(Years)°° March 31, 2015 December 31, 2014 Yields March 31, 2015 December 31. 2014 Investment Portfolio 1.85 1.73 Yield at Market 0.64% 0.68% Merrill Lynch 1 -3 Year U.S. Treasury Index 1.79 1.82 Yield at Cost 0.80% 0.71% Portfolio Duration % of Benchmark Duration 104% 95% ML 1 -3 Year U.S. Treasury Index 0.52% *Investment Portfolio 0.50% 1.00 1.50 2.00 Quarterly Interest Income Investment Portfolio TD Bank Money Market Fund Total Quarterly Realized Gain /Loss on Cost Investment Portfolio Current Quarter Previous Quarter March 31, 2015 December 31, 2014 $24,320.1 $22,631.56 1.3 0.73 uuarrer tnoeo uaia if to ML 1 -3 Year U.S. Treasury Index Investment Portfolio 1.15% N 1.14% 1.50 2.00 R Fiscal Year 2015 111= Fiscal Year 2014 Fiscal Year Interest Income Year to Date Investment Portfolio $46,951.71 $99,538.13 TD Bank Money Market Fund 2.12 6.50 .29 Total Current Quarter Previous Quarter Fiscal Year 2015 Fiscal Year 2014 March 31. 2015 December 31.2014 Fiscal Year Realized Gain /Loss on Cost Year to Date ($12,200.17 ($882.90) Investment Portfolio ($13,083.07) (29,087.79) Notes: 1. In order to comply with GASS accrual accounting reporting requirements. End of quarter trade -date market values of portfolio holdings, including accrued interest. 2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). Quarterly retumsare presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results. 3. Since inception the benchmark has been the Merrill Lynch 1 -3 Year U.S. Treasury Note Index. 4. Merrill Lynch Indices provided by Bloomberg Financial Markets. 5. Includes money market fund /cash in performance and duration computations. PFM Asset Management LLC Section A - 1 Village of North Palm Beach, Florida Executive Summary PORTFOLIO STRATEGY Investment Report - Quarter Ended March 31, 2015 ➢ The Village's Investment Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, commercial paper, municipal obligations, and high quality corporate securities. ➢ PFM continued to actively manage the Investment Portfolio during the first quarter and found value in the market, taking advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $1,806 in gains on sales (based on amortized cost) during the quarter. PFM is continually in the market monitoring for opportunities to add value to the Portfolio. ➢ The Investment Portfolio's quarterly total return performance of 0.50 %, underperformed the benchmark's performance of 0.52% by 0.02 %. This slight underperformance is due to exposure in corporate notes rated "A" — "AA ". U.S. Treasuries added slightly to performance. During the quarter interest rates rose in the 2 -7 year range which dampened performance in all sectors. ➢ Macroeconomic conditions in the U.S. moderated throughout the quarter evidenced by lackluster economic data, Greek inspired geopolitical uncertainty, and a FOMC that indicated a tendency for lower rates throughout the period. The market reacted with a Treasury rally that sent yields across the curve generally lower; the impact being greater on longer maturities which continued to reflect persistently low inflation expectations. ➢ The FOMC has indicated a strong focus on their inflation mandate by removing its "patient" guidance in favor of a need to be "reasonably confident that inflation will move back to its two percent objective." This emphasis on what continues to be stubbornly low inflation, combined with the FOMC's more conservative projections for the future trajectory of the federal funds rate, formulates our market view that rates will remain in their current range in the coming months. With this expectation, we will maintain portfolio durations closer to their respective benchmarks in an effort to maximize investment income. ➢ We expect volatility to continue throughout the quarter; particularly around the announcement of key economic releases as market participants digest the impact not only on the timing of an initial FOMC rate hike, but also on the pace and rate of subsequent hikes as well. In a potentially turbulent market environment, we will respect well defined trading ranges; adding duration when rates are elevated, and remaining patient when rates are restrained. Additionally, we will stress security selection, exposure to non - government sectors, and yield curve placement, as we believe those factors will be the primary drivers of performance. ➢ PFM will continue to navigate the market environment with a keen focus on relative value sector analysis, prudent duration management, and efficient yield curve placement. While producing strong investment returns remains a priority, it is secondary to maintaining safety and liquidity, particularly in the current environment where we expect yields to trend higher. PFM Asset Management LLC Section B - 1 Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 Investment Portfolio Composition and Credit Quality Characteristics Security Type' March 31, 2015 % of Portfolio December 31. 2014 % of Portfolio U.S. Treasuries $5,914,025.67 66.1% $5,463,799.81 65.0% Federal Agencies 933,706.34 10.4% 1,288,838.57 15.3% Commercial Paper 199,924.80 2.2% 199,742.00 2.4% 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 121,413.40 1.4% 121,105.60 1.4% Corporate Notes /Bonds 1,692,615.10 18.9% 1,293,465.02 15.4% Corporate Notes /Bonds - FDIC Insured 0.00 0.0% 0.00 0.0% Mortgage Backed 0.00 0.0% 0.00 0.0% Money Market Fund /Cash 85,027.32 1.0% 37,048.45 0.4% Totals $8,946,712.63 100.0% $8,403,999.45 100.0% Money Market Fund /Cash 0.95% Corporate Notes /Bonds 18.92% Municipal Obligations 1.36% Commercial Paper 2.23% Federal Agency Obligations 10.44% Portfolio Composition as of 03/31/15 U.S. Treasuries 66.10% Notes: 1. End of quarter trade -date market values of portfolio holdings, including accrued interest. 2. Credit rating of securities held in portfolio, exclusive of money market fund /LGIP. Standard & Poor's is the source of the credit ratings. PFM Asset Management LLC Section B - 2 Credit Quality Distribution A -1 (Short- as of 03/31/15 term) 2.26% A- 1.70% AA+ 78.98% A 8.10% A+ 3.871 AA- 3.39% AA 1.70% Notes: 1. End of quarter trade -date market values of portfolio holdings, including accrued interest. 2. Credit rating of securities held in portfolio, exclusive of money market fund /LGIP. Standard & Poor's is the source of the credit ratings. PFM Asset Management LLC Section B - 2 Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 100% Investment Portfolio Maturity Distribution Maturity Distribution' March 31, 2015 December 31, 2014 Overnight (Money Market Fund) $85,027.32 $37,048.45 Under 6 Months 199,924.80 199,742.00 6 - 12 Months 200,190.14 0.00 1 - 2 Years 4,263,785.30 4,531,981.99 2 - 3 Years 3,416,264.59 3,635,227.01 3 - 4 Years 781,520.48 0.00 4 - 5 Years 0.00 0.00 5 Years and Over 0.00 0.00 Totals $8,946,712.63 $8,403,999.45 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' 100% 90% ■ March 31, 2015 80% ■ December 31, 2014 = 70% 0 n 60% 53.9% m 50% 47.7% 0 43.3% 40% 38.2% 0 I 30% M 20% a> 10% 8.7% a_ 1.0% 0.4% 2.2% 2.4% 2.2% 0.0% 0.0% 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, Florida Investment Report - Quarter Ended March 31, 2015 Investment Portfolio Maturity Distribution versus the Benchmark' � � tip" �) �h" DR) tih" �1Z .��" DO" ti`s" �O" .��" DO" ti`s" �O" Z3O" Years to Maturity ■ Investment Portfolio ■ Merrill 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 Money Market Interest Bearing Mutual Funds State and /or Local Checking or Savings 1.15% Government Debt Account 53.42% and /or Tax Exempt Debt 0.59% Corporate Notes 8.22% Florida Prime (SBA) Commercial Paper 2.39% 0.97% Federal United States Instrumentalities Treasury Securities 4.53% 28.73% Amortized Cost Allocation Permitted In Security Type (Includes Interest) Percentage Notes by Policy Compliance Florida Prime (SBA) 490,873.89 2.39% 2 25% YES United States Treasury Securities 5,896,437.19 28.73% 100% YES United States Government Agency Securities - 0.00% 50% YES Federal Instrumentalities 929,974.11 4.53% 50% YES Mortgage- Backed Securities - 0.00% 0% YES Certificates of Deposit - 0.00% 100% YES Commercial Paper 199,901.78 0.97% 15% YES Corporate Notes 1,686,925.58 8.22% 25% YES State and /or Local Government Debt 120,923.92 0.59% 20% YES and /or Tax Exempt Debt Money Market Mutual Funds 235,965.34 1.15% 50% YES Intergovernmental Investment Pool - 0.00% 25% YES Interest Bearing Checking or Savings Account 10,963,798.88 53.42% 2 100% YES Village Managed 11,605,610.84 56.54% PFM Managed 8,919,189.85 43.46% Total $20,524,800.69 100.00% Notes: 1. All Assets. 2. These Accounts are managed by the Village. *PFM managed securities are shown on Amortized Cost plus Accrued Interest basis S W PFN Individual Issuer Breakdown Amortized Cost (Includes Interest) Allocation Percentage Notes Permitted by Policy In Compliance Government National Mortgage Association (GNMA) - 0.00% 100% YES Federal Farm Credit Bank (FFCB) - 0.00% 10% YES Federal Home Loan Bank (FHLB) 314,772.50 1.53% 10% YES Federal National Mortgage Association (FNMA) 99,723.36 0.49% 10% YES Federal Home Loan Mortgage Corporation (FHLMC) 515,478.25 2.51% 10% YES PNC Bank Commercial Paper 199,901.78 0.97% 5% YES Toyota Corporate Notes 100,282.37 0.49% 5% YES Wells Fargo & Company Corporate Notes 150,232.70 0.73% 5% YES General Electric Corporate Notes 150,293.18 0.73% 5% YES Berkshire Hathaway Corporate Notes 100,029.24 0.49% 5% YES American Honda Corporate Notes 70,256.94 0.34% 5% YES John Deere Corporate Notes 100,431.06 0.49% 5% YES Coca -Cola Corporate Notes 50,125.82 0.24% 5% YES IBM Corporate Notes 200,099.34 0.97% 5% YES JP Morgan Corporate Notes 200,211.47 0.98% 5% YES HSBC Corporate Notes 200,537.20 0.98% 5% YES PepsiCo Corporate Notes 150,045.66 0.73% 5% YES Walt Disney Corporate Notes 214,380.60 1.04% 5% YES California State Taxable GO Bonds 120,923.92 0.59% 5% YES Interest Bearing Checking /Savings Acct -Wells Fargo 8,432,200.30 41.08% 2 50% YES Interest Bearing Checking /Savings Acct -Chase 11,575.51 0.06% 2 50% YES Interest Bearing Checking /Savings Acct- BankUnited 2,520,023.07 12.28% 2 50% YES Money Market Fund - TD Bank Sweep Account 85,027.27 0.41% 33% YES Money Market Fund - Wells Fargo Advantage Fund 150,938.07 0.74% 2 33% YES Florida Prime (SBA) 490,873.89 2.39% 2 25% YES Notes: 1. All Assets. 2. These Accounts are managed by the Village. *PFM managed securities are shown on Amortized Cost plus Accrued Interest basis. Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 TAB III Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015 Insert Month End Statement here to complete the report. In consideration of the safety and security of our client's sensitive information, PFM Asset Management's compliance department does not allow the inclusion of month end statements in any electronic communication including this version of the quarterly performance report. Statements are available online at www.pfm.com login and click on the link to "Monthly Statements" on the left side of the screen. The most current statements are always available to the client online, however they can only be accessed with the designated username and password. J Managed Account Summary Statement NORTH PALM BEACH INVESTMENT PORTFOLIO - Opening Market Value $8,358,092.55 Maturities /Calls (225,000.00) Principal Dispositions (349,015.63) Principal Acquisitions 1,047,602.05 Unsettled Trades 0.00 Change in Current Value 12,927.97 Closing Market Value $8,844,606.94 Interest /Dividends /Coupons Received 13,990.04 Less Purchased Interest Related to Interest /Coupons (1,917.09) Plus Net Realized Gains /Losses (3,890.71) Total Cash Basis Earnincs $8,182.24 Ending Amortized Value of Securities 8,817,084.21 Ending Accrued Interest 17,078.37 Plus Proceeds from Sales 349,439.70 Plus Proceeds of Maturities /Calls /Principal Payments 225,000.00 Plus Coupons/ Dividends Received 13,565.97 Less Cost of New Purchases (1,049,519.14) Less Beginning Amortized Value of Securities (8,346,582.34) Less Beginning Accrued Interest (21,353.67) Total Accrual Basis Earnings $4,713.10 For the Month Ending March 31, 2015 Maturities /Calls 225, 000.00 Sale Proceeds 349,439.70 Coupon /Interest /Dividend Income 13,565.97 Principal Payments 0.00 Security Purchases (1,049,519.14) Net Cash Contribution 500,000.00 Reconciling Transactions 0.00 Closing Cash Balance $85,027.32 •-%5:- Account Page 1 �PF4I quPFM Asset Management LLC J Portfolio Summary and Statistics NORTH PALM BEACH INVESTMENT PORTFOLIO - Description Par Value Market Value Percent U.S. Treasury Bond / Note 5,870,000.00 5,901,643.01 66.72 Municipal Bond / Note 120,000.00 120,788.40 1.37 Federal Agency Bond / Note 930,000.00 932,886.56 10.55 Corporate Note 1,670,000.00 1,689,364.17 19.10 Commercial Paper 200,000.00 199,924.80 2.26 Managed Account Sub -Total 8,790,000.00 8,844,606.94 100.00% Accrued Interest 17,078.37 Total Portfolio 8,790,000.00 8,861,685.31 Unsettled Trades 48.07% 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 / Note 66.72 % For the Month Ending March 31, 2015 Commercial Paper 2.26 % Corporate Note 19.10% Fed Agy Bond / Note 10.55 % Muni Bond / Note 1.37 % Yield to Maturity at Cost 0.80% Yield to Maturity at Market 0.64% Duration to Worst 1.89 Weighted Average Days to Maturity 708 Fbi Account Page 2 VF PFM Asset Management LLC J Managed Account Issuer Summary NORTH PALM BEACH INVESTMENT PORTFOLIO - Total $8,844,606.94 100.000/0 AA- 3.40% AA+ 78.98% For the Month Ending March 31, 2015 .10 % .86 % .70 % -1 .26 % A .70 %a F4t Account Page 3 PFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - 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 695,000.00 AA+ Aaa 02/02/15 02/03/15 692,855.27 0.63 575.97 692,989.76 692,339.54 DTD 07/31/2012 0.500% 07/31/2017 ,i. Account Page 4 quPFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - 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 130,000.00 AA+ Aaa 08/12/14 08/14/14 129,983.88 1.00 227.50 129,987.32 130,969.54 DTD 06/25/2012 1.000% 07/28/2017 ,I. Account Page 5 quPFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Dated Date /Coupon /Maturity Federal Agency Bond / Note FREDDIE MAC GLOBAL NOTES DTD 06/25/2012 1.000% 07/28/2017 FNMA NOTES DTD 08/25/2014 1.000% 09/27/2017 CUSIP 150,000.00 A- Al 02/25/14 02/28/14 149,829.00 0.99 154.38 149,891.28 150,255.30 DTD 02/28/2014 0.950% 02/22/2017 ,i. Account Page 6 quPFM Asset Management LLC Managed Account Detail of Securities Held NORTH PALM BEACH INVESTMENT PORTFOLIO - For the Month Ending March 31, 2015 Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity Corporate CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value JP MORGAN CHASE CORP NOTES 200,000.00 A -1 P -1 10/31/14 10/31/14 199,682.22 0.26 0.00 199,901.78 199,924.80 -- 0.000% 06/08/2015 Security Type Sub -Total 200,000.00 199,682.22 0.26 0.00 199,901.78 199,924.80 Managed Account Sub -Total 8,790,000.00 8,859,809.92 0.80 17,078.37 8,817,084.21 8,844,606.94 Securities Sub -Total $8,790,000.00 $8,859,809.92 0.80 % $17,078.37 $8,817,084.21 $8,844,606.94 Accrued Interest $17,078.37 Total Investments $8,861,685.31 F4t Account Page 7 PFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt US TREASURY NOTES 150,000.00 MERRILL 99.99 149,988.30 849.63 730.18 2.55 2.55 0.75 DTD 10/31/2012 0.750% 10/31/2017 ,i. Account Page 8 quPFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt US TREASURY NOTES 200,000.00 BNP PARI 100.05 200,090.80 90.80 90.80 0.25 0.85 0.28 DTD 02/12/2014 0.325% 02/05/2016 e:- Account Page 9 �PF4I quPFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt TOYOTA MOTOR CREDIT CORP 200,000.00 JPMCHASE 99.96 199,924.80 242.58 23.02 0.19 0.19 0.20 -- 0.000% 06/08/2015 Security Type Sub -Total 200,000.00 199,924.80 242.58 23.02 0.19 0.19 0.20 e:- Account Page 10 �PF4I quPFM Asset Management LLC � PFM' Managed Account Fair Market Value & Analytics NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Next Call Market Market Unreal G/L Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost For the Month Ending March 31, 2015 Unreal G/L Effective Duration YTM Amort Cost Duration to Worst at Mkt Managed Account Sub -Total 8,790,000.00 8,844,606.94 (15,202.98) 27,522.73 1.86 1.89 0.64 Securities Sub -Total $8,790,000.00 $8,844,606.94 ($15,202.98) $27,522.73 Accrued Interest $17,078.37 Total Investments $8,861,685.31 4[ PFM Asset Management LLC 1.86 1.89 0.64% Account Page 11 Managed Account Security Transactions & Interest For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Securitv Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method 03/02/15 03/05/15 JP MORGAN CHASE CORP NOTES 250,000.00 0.00 937.50 937.50 DTD 04/01/2013 0.750% 03/31/2018 Transaction Type Sub -Total 2,020,000.00 0.00 13,565.97 13,565.97 e:- Account Page 12 �PF4I quPFM Asset Management LLC � PFM' WFManaged Account Security Transactions & Interest For the Month Ending March 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method 03/27/15 03/27/15 FHLB NOTES (CALLED, OMD 3/27/17) 150,000.00 151,031.25 97.83 151,129.08 (855.47) (53.36) SPEC LOT DTD 08/31/2011 1.000% 08/31/2016 Transaction Type Sub -Total 350,000.00 349,015.63 424.07 349,439.70 (1,417.96) (738.16) Managed Account Sub -Total (473,586.42) 12,072.95 (461,513.47) (3,890.71) (738.16) Total Security Transactions ($473,586.42) $12,072.95 ($461,513.47) ($3,890.71) ($738.16) Ft Account Page 13 PFM Asset Management LLC