06-30-2015 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida
'�;
it/ "�
North F .l
Investment Performance Review
Quarter Ended June 30, 2015
Investment Advisors PFM Asset Management LLC
Steven Alexander, CTP, CGFO, CPPT, Managing Director
Robert Cheddar, CFA, Chief Credit Officer, Managing Director
D. Scott Stitcher, CFA, Senior Managing Consultant
Richard Pengelly, CFA, CTP, Senior Managing Consultant
Rebecca Geyer, CTP, Senior Analyst
One Keystone Plaza, Suite 300
North Front & Market Streets
Harrisburg, PA 1 71 01 -2044
717 - 232 -2723 • 717 - 233 -6073 fax
300 S. Orange Avenue, Suite 1170
Orlando, FL 32801
(407) 648 -2208
(407) 648 -1323 fax
Village of North Palm Beach, Florida
Table of Contents
&T. om
Section A Market Review
Investment Report - Quarter Ended June 30, 2015
Tab II.
Section A Quarterly Summary Report
Section B Investment Portfolio & Performance
Section C Asset Allocation Chart as of June 30, 2015
Tab III. June 30, 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 June 30, 2015
TAB I
Village of North Palm Beach, Florida
Summary
■ Throughout the quarter, improving U.S. economic conditions
contrasted with global economic uncertainty, particularly the
deteriorating negotiations between Greece and its international
creditors, which came to a vital impasse at the end of the quarter.
■ Market participants continued to weigh the impact that adverse global
economic conditions would have on the interest rate setting policies of
the Federal Open Market Committee (FOMC).
Economic Snapshot
■ For the first quarter of 2015, gross domestic product (GDP) declined by
0.2 %. While estimates initially reflected a larger decline, increases in
consumer spending and inventories contributed to the upward
revision.
■ The U.S. labor market continued to improve, as the unemployment
rate fell from 5.5% in March to 5.3% in June. While robust headline job
creation continued, some of the underlying metrics related to
employment — particularly wage growth —were weak.
■ The housing market strengthened, as reflected by improvements in the
pace of pending home sales, building permits, new -home sales, and
housing starts.
■ Greek - related tensions grew as the troubled nation missed a payment
of 1.6 billion euros to the International Monetary Fund (IMF), and
Greek voters overwhelmingly rejected austerity measures demanded
by creditors as a condition for further financial assistance. These
actions leave open the possibility that Greece would abandon the euro
and even leave the eurozone.
Interest Rates
■ The FOMC kept the federal funds target rate unchanged for the
quarter. While the FOMC's statement left open the possibility of an
interest rate increase in the latter half of 2015, this policy decision will
depend on labor market conditions and inflation expectations.
Investment Report — Quarter Ended June 30, 2015
■ The timing for a potential interest rate hike became more
uncertain at the end of the quarter due to the potential for the
Greek debt crisis to affect the overall global economy.
■ Treasury yields reacted differently across the curve. Yields for
short maturities rose only modestly (two- and three -year
Treasuries ended the quarter up 0.06% and 0.09 %, respectively)
while yields for intermediate and longer maturities had sizeable
increases (five- and 10 -year Treasuries ended the quarter higher
by 0.24% and 0.40 %, respectively).
Sector Performance
■ Benchmark Treasury indices for shorter - maturity securities ended
the quarter slightly positive, as more than sufficient income was
generated to overcome the limited decrease in market value that
resulted from the rise in yields. Longer maturities did not perform
as well because they had significantly larger rate increases.
■ Yield spreads for Federal Agency securities fluctuated within their
historically low ranges for the quarter; as a result, the sector's
performance was relatively flat when compared to Treasuries.
■ Corporate securities underperformed government issues as yield
spreads widened throughout the quarter; bonds with higher credit
quality underperformed the most.
■ Within the mortgage- backed securities (MBS) sector, structure and
coupon were the major determinants of performance for the
quarter. Higher- coupon structures were the strongest performers
on both an absolute return and relative return basis (compared to
similar- duration Treasuries).
■ Asset - backed securities (ABS) were among the stronger -
performing sectors, as their superior income and limited sensitivity
to changes in interest rates fared well in what was a volatile
market environment.
PFM Asset Management LLC Section A -1
Village of North Palm Beach, Florida
Investment Report — Quarter Ended June 30, 2015
Economic Snapshot
Labor
Unemployment Rate
Jun'l5
5.3%
5.5%
6.1% Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
10% 400K
Change In Non -Farm P
Jun'l5
-Change In N.r Fa. Payrdls 350K
nemploynnen to
8% 300K
250K
Avarage Hourly Earnings (YoY)
Jun'l5
2.0%
2.1%
2.0% 6% I 200K
=
150K
Personal Income (YoY
May'15
4% 100K
50K
2% 0
Initial Jobless Claims (week)
7/2/15
281,000
267,000
313,000 6/30/12 12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15
•
Real GDP (QoQ SAAR)
2015Q1
-0.2%
2.2 %1
-2.1 % z Real GDP (QoQ)
6%
GDP Personal Consumption (QoQ SAAR)
2015Q1
4%
Retail Sales (YoY)
May'15
2.7%
2.1%
2% .
4.3%
ISM Manufacturing Survey (month)
Jun'l5
2%
-4%
Existing Home Sales SAAR (month)
May'15
5.35 mil.
5.21 mil.
5.01 mil. 3/31/12 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15
Inflation
Personal Consumption Expenditures (YoY)
May'15
0.2%
0.3%
1.6% Consumer Price Index
3%
Consumer Price Index (YoY)
May'15
CPI (YoY) Core CPI (YoY)
2%
Consumer Price Index Core (YoY)
May'15
1.7%
1.8%
1.9% 1%
0%
Crude Oil Futures (WTI, per barrel)
Jun 30
$59.47
$47.60
$105.
-1%
Gold Futures (oz.)
Jun 30
$1,172
$1,183
$1,322 5/31/12 11/30/12 5/31/13 11/30/13 5/31/14 11/30/14 5/31/15
1. Data as of Fourth Quarter 2014
2. Data as of First Quarter 2014
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%
1.5%
1.0%
0.5%
0.0%
U.S. Treasury Note Yields
Investment Report — Quarter Ended June 30, 2015
Investment Rate Overview
rYr16 le
N
6/30/14 12/31/14
2 -Year ...... • • 5 -Year 10 -Year
U.S. Treasury Yields
4%
3%
'2 2%
m
r
1%
0%
W N W N V
O �
U.S. Treasury Yield Curve
W
O O
`G `G
6/30/15 Maturity
June 30, 2015 — — March 31, 2015
Maturity
3 -month
i
0.01%
0.02%
Change
Quarter
(0.01%)
i
0.02%
Change
(0.01%)
1 -year
0.27%
0.23%
0.04%
0.10%
0.17%
2 -year
0.65%
0.56%
0.09%
0.46%
0.19%
5 -year
1.65%
1.37%
0.28%
1.63%
0.02%
10 -year
2.35%
1.92%
0.43%
2.53%
(0.18 %)
30 -year
3.12%
2.54%
0.58%
3.36%
(0.24 %)
Source: Bloomberg
PFM Asset Management LLC
5%
4%
3%
m
2%
1%
0%
W N W N V
Maturity
U.S. Treasury — • Federal Agency
Yield Curves as of 6/30/2015
June 30, 2014
N W
(3t O
Industrial Corporates, A Rated
Section A -3
Village of North Palm Beach, Florida
Investment Report - Quarter Ended June 30, 2015
BofA Merrill Lynch Index Returns
As of 6/30/2015 Returns for Periods ended 6/30/2015
Returns for periods greater than one year are annualized
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
0.63%
0.15%
0.88%
0.66%
�gency
2.05
1.45%
0.08%
1.02%
1.76%
U.S. Corporates, A -AAA rated
Municipals
1.79
0.86%
0.01%
0.40%
0.80%
Year •
U.S. Treasury
2.70
0.93%
0.02%
1.38%
0.83%
gency
2.18
0.96%
0.09%
1.31%
0.94%
U.S. Corporates, A -AAA rated
2.81
1.80%
(0.13 %)
1.45%
2.36%
Agency MBS (0 to 5 years)
M
2.10%
(0.46 %)
1.58%
1.68%
Municipals
2.54
1.13%
(0.01 %)
0.62%
1.13%
Indices Master
or
U.S. Treasury
6.04
1.56%
(1.84 %)
2.59%
0.94%
Federal Agenc�
_am&_
6.68
1.41%
2.89%
(0.66 %)
(2.59 %)
2..
1.75%
1.28%
3.04%
U.S. Corporates, A -AAA rated
Agenc BS (0 to 30 years)
2.60%
(0.79 %)
2.16%
1.87%
Municipals
6.93
2.63%
(0.97 %)
3.10%
3.21%
Returns for periods greater than one year are annualized
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Village of North Palm Beach, Florida
Disclosures
Investment Report — Quarter Ended June 30, 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 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.
Further distribution is not permitted without prior written consent.
PFM Asset Management LLC Section A -5
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2015
TAB II
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2015
Quarterly Summary Report
Total Portfolio Value June 30,20151 March 31, 2015
Market Value $8,956,854.02 $8,946,712.63
Amortized Cost $8,939,266.76 $8,919,189.90
Quarter Total Return Comparison
Quarter Ended 06/30/15
0.50%
0.25% ML 1 -3 Year U.S. Treasury Index
Investment Portfolio `00.15%
E 0.11%
0.00%
n_
0.25%
-0.50% ,'
1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
I oLal R6LUm l.OmpaFISOn OInGe InGepLIUn a5 QI
Quarter Ended 06/30/15
ML 1 -3 Year U.S. Treasury Index
Investment Portfolio 0 1.13%
1.11%
2.00
Effective Duration (Years)
Quarterly Return
Last
P Last
Last
Last
Since Inception
Total Return•'•°
June 30, 2015
12 Months
2 Years
3 Years
5 Years
June 30, 2009
Investment Portfolio
0.11%
0.86%
0.84%
0.66%
0.80%
1.11%
Merrill Lynch 1 -3 Year U.S. Treasury Index
0.15%
0.88%
0.82%
0.66%
0.82%
1.13%
$67,175.34
Current Quarter
Previous Quarter
Current Quarter
Previous Quarter
Current Quarter
Previous Quarter
Effective Duration(Years) s
June 30, 2015
March 31, 2015
March 31, 2015
Yields
June 30, 2015
March 31, 2015
Investment Portfolio
1.78
1.85
Investment Portfolio
Yield at Market
0.74%
0.64%
Merrill Lynch 1 -3 Year U.S. Treasury Index
1.80
1.79
Yield at Cost
0.86%
0.80%
Portfolio Duration % of Benchmark Duration
99%
104%
Quarter Total Return Comparison
Quarter Ended 06/30/15
0.50%
0.25% ML 1 -3 Year U.S. Treasury Index
Investment Portfolio `00.15%
E 0.11%
0.00%
n_
0.25%
-0.50% ,'
1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
I oLal R6LUm l.OmpaFISOn OInGe InGepLIUn a5 QI
Quarter Ended 06/30/15
ML 1 -3 Year U.S. Treasury Index
Investment Portfolio 0 1.13%
1.11%
2.00
Effective Duration (Years)
Notes:
1. In order to comply with GASB 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 returns are 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
Fiscal Year 2015
Fiscal Year 2014
Quarterly Interest Income
June 30, 2015
March 31, 2015
Fiscal Year Interest Income
Year to Date
Investment Portfolio
$20,219.83
$24,320.15
Investment Portfolio
$67,171.54
$99,538.13
TD Bank Money Market Fund
1.68
1.39
TD Bank Money Market Fund
3.80
6.50
Total
$20,221.51
$24,321.54
Total
$67,175.34
$99,544.63
Current Quarter
Previous Quarter
Fiscal Year 2015
Fiscal Year 2014
Quarterly Realized Gain /Loss on Cost
June 30, 2015
March 31, 2015
Fiscal Year Realized Gain /Loss on Cost
Year to Date
Investment Portfolio
$2,569.09'
($12,200.17)
Investment Portfolio
($10,513.98)
(29,087.79)
Notes:
1. In order to comply with GASB 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 returns are 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 June 30, 2015
➢ The Village's Investment Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, Supranational
Agency, commercial paper, municipal obligations, and high quality corporate securities.
➢ PFM continued to actively manage the Investment Portfolio during the second quarter and found value in the market, taking
advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $1,744 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 0.11 %, underperformed the benchmark's performance of
0.15% by 0.04 %. This slight underperformance is attributed to the portfolio being overweight in the 3 year area of the yield
curve. As the yield curve steepened over the quarter, performance was negatively impacted in the 3 year space. A flight to
quality occurred at the end of the quarter as a result of turmoil in Greece. Spreads widened causing other sectors besides
agencies and treasuries to perform poorly. Since the macroeconomic issue has been resolved, corporate securities should
provide additional income and benefit to the portfolio going forward.
➢ Improving employment statistics in the U.S. suggest that an increase in the benchmark Federal Funds rate may be
appropriate soon. However, stubbornly low inflation remains a concern for the Federal Reserve policy makers. Market
participants still expect the FOMC to initiate at least one rate hike in 2015, but the pace of subsequent increases is likely to
be gradual.
➢ Recovering U.S. economic conditions, heightened geopolitical uncertainty, and expectations that the FOMC will tighten
monetary policy slowly should keep rates in their current ranges in the coming months, with a modest bias towards slightly
higher levels. Based on this expectation, we will maintain the portfolio's duration near the duration of the benchmark's
duration.
➢ Our strategy will be to focus on identifying relative value from among the full range of investment options. We will pay careful
attention to sector allocation, yield curve placement, credit market dynamics, and individual security selection. These factors
will likely be key drivers of performance in an uncertain rate environment.
➢ 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 June 30, 2015
Investment Portfolio Composition and Credit Quality Characteristics
Security Type'
June 30, 2015
% of Portfolio
March 31, 2015
% of Portfolio
U.S. Treasuries
$5,544,234.42
61.9%
$5,914,025.67
66.1%
Federal Agencies
934,736.77
10.4%
933,706.34
10.4%
Commercial Paper
199,426.80
2.2%
199,924.80
2.2%
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
121,080.40
1.4%
121,413.40
1.4%
Corporate Notes /Bonds
1,960,462.52
21.9%
1,692,615.10
18.9%
Supranational Agency
119,893.49
1.3%
0.00
0.0%
Mortgage Backed Securities
0.00
0.0%
0.00
0.0%
Money Market Fund /Cash
77,019.62
0.9%
85,027.32
1.0%
Totals
$8,956,854.02
100.0%
$8,946,712.63
100.0%
Portfolio Composition
as of 06/30/15
Supranational
Agency
1.34%
Corporate
Notes /Bonds
21.89% _
A -1 (Short
2.250/
A
10.66%
4.;
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.
AAA Credit Quality Distribution
1 35% as of 06/30/15
V 0.56%
AA+
74.66%
PFM Asset Management LLC Section B - 2
Village of North Palm Beach, Florida
Investment Report - Quarter Ended June 30, 2015
Investment Portfolio Maturity Distribution
Maturity Distribution'
June 30, 2015
March 31, 2015
Overnight (Money Market Fund)
$77,019.62
$85,027.32
Under 6 Months
0.00
199,924.80
6 - 12 Months
399,661.04
200,190.14
1 - 2 Years
4,679,287.46
4,263,785.30
2 - 3 Years
3,800,986.90
3,416,264.59
3 - 4 Years
0.00
781, 520.48
4 - 5 Years
0.00
0.00
5 Years and Over
0.00
0.00
Totals $8.966.864.02 $8,946,712.63
r-Ut uUttU tvtaLut ny utau tuuuUt t -
■June 30, 2015
■March 31, 2015
42 4'/0 � 38.2%
0 2.2% � 2.2%
0.0 /o
Under 6 Months 6 - 12 Months
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.
a r ears ana uvE
PFM Asset Management LLC Section B - 3
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2015
Investment Portfolio Maturity Distribution versus the Benchmark'
11 �O ^'� QO �'� �O ^'-� QO �'-� �O ^'-� QO �'� r1Q ^� QO n �O ^h aQ QQ
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
Municipal Obligations
0.68%
Corporate Notes
11.06%
Commercial Paper
1.12%
Money Market
Mutual Funds
1.29%
Supranationals
0.68%
Federal Agency (GSE)
5.26%
Security Type
Florida Prime (SBA)
United States Treasury Securities
Federal Agency (GSE)
Supranationals
Mortgage- Backed Securities
Asset Backed Securities
Certificates of Deposit
Commercial Paper
Corporate Notes
Interest Bearing
Checking or Savings
Account
45.93%
- Florida Prime (SBA)
2.77%
United States
- Treasury Securities
31.21%
Amortized Cost Allocation
(Includes Interest) Percentage Notes
491,124.59
2.77% 2
5, 531, 657.01
31.21%
931, 926.14
5.26%
119,859.37
0.68%
-
0.00%
-
0.00%
-
0.00%
199,176.67
1.12% 3
1,959,125.93
11.06% 3
Municipal Obligations 120,502.02 0.68%
Money Market Mutual Funds 227,961.27 1.29%
Intergovernmental Investment Pool - 0.00%
Interest Bearing Checking or Savings Account 8,140,257.92 45.93% 2
Village Managed 8,782,324.24 49.56%
PFM Managed 8,939,266.68 50.44%
Total 17,721,590.92 100.00%
Notes:
1. All assets are included. PFM managed securities are shown on Amortized Cost plus Accrued Interest basis
2. These Accounts are managed by the Village.
3. Maximum allocation to all corporate and bank credit instruments is 50% combined.
Permitted In
by Policy Compliance
25%
YES
100%
YES
75%
YES
25%
YES
25%
YES
25%
YES
50%
YES
50%
YES
50%
YES
25%
YES
50%
YES
50%
YES
100%
YES
Individual Issuer Breakdown
Amortized Cost
(Includes Interest)
Allocation
Percentage
Notes
Permitted
by Policy
In
Compliance
Government National Mortgage Association (GNMA)
-
0.00%
40%
YES
Federal Farm Credit Bank (FFCB)
-
0.00%
40%
YES
Federal Home Loan Bank (FHLB)
315,336.90
1.78%
40%
YES
Federal National Mortgage Association (FNMA)
100,002.14
0.56%
40%
YES
Federal Home Loan Mortgage Corporation (FHLMC)
516,587.10
2.92%
40%
YES
State of California Municipal Bonds
120,502.02
0.68%
5%
YES
American Honda Finance Corporate Notes
70,080.34
0.40%
5%
YES
Bank of New York Company Inc. Corporate Notes
200,266.99
1.13%
5%
YES
Cisco Systems, Inc. Corporate Notes
190,090.03
1.07%
5%
YES
Coca -Cola Company Corporate Notes
50,036.85
0.28%
5%
YES
ConocoPhillips Corporate Notes
40,067.06
0.23%
5%
YES
Deere & Company Corporate Notes
100,179.10
0.57%
5%
YES
General Electric Capital Corporation Corporate Notes
150,304.78
0.85%
5%
YES
HSBC Holdings plc Corporate Notes
201,362.37
1.14%
5%
YES
IBM Corporation Corporate Notes
200,110.44
1.13%
5%
YES
JP Morgan Chase & Company Corporate Notes
201,066.81
1.13%
5%
YES
PepsiCo, Inc. Corporate Notes
190,496.38
1.07%
5%
YES
The Walt Disney Corporation Corporate Notes
214,823.25
1.21%
5%
YES
Wells Fargo & Company Corporate Notes
150,241.53
0.85%
5%
YES
JP Morgan Chase & Company Commercial Paper
199,176.67
1.12%
5%
YES
Money Market Fund - TD Bank Sweep Account
77,019.54
0.43%
25%
YES
Interest Bearing Checking /Savings Acct -Wells Fargo
5,116,914.51
28.87%
2
100%
YES
Interest Bearing Checking /Savings Acct - Flagler Bank
500,570.86
2.82%
2
100%
YES
Interest Bearing Checking /Savings Acct- BankUnited
2,522,772.55
14.24%
2
100%
YES
Money Market Fund - Wells Fargo Advantage Fund
150,941.73
0.85%
2
25%
YES
International Bank of Recon and Dev Global Notes
119,859.37
0.68%
10%
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 June 30, 2015
TAB III
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 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.
�PF a Customer Service
PO Box 11813
Harrisburg, PA 17108 -1813
ACCOUNT STATEMENT
Client Management Team
Ed Polansky
Key Account Manager
PO Box 11813
Harrisburg, PA 17108
1- 877 - 495 -8246
polanskye @pfm.com
Gregg Manjerovic, CFA
Director
One Keystone Plaza, Suite 300
Harrisburg, PA 17101
717 - 232 -2723
manjerovicg @pfm.com
Steven Alexander, CTP, CGFO
Managing Director
300 South Orange Avenue, Suite 1170
Orlando, FL 32801
407 - 406 -5750
alexanders @pfm.com
Contents
Cover /Disclosures
Summary Statement
Individual Accounts
Accounts included in Statement
NORTH PALM BEACH INVESTMENT PORTFOLIO
VILLAGE OF NORTH PALM BEACH
MERLE GOLDBERG
501 US HIGHWAY 1
NORTH PALM BEACH, FL 33408
Online Access http: / /www.pfm.com Customer Service 1- 717 - 232 -2723
�P1 MT
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 and that 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.
Imuortant 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
( "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.
Account Statement
For the Month Ending June 30, 2015
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, on an annualized basis.
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 remaining until maturity, stated as a
percentage, on an annualized basis.
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
PFM'
ivManaged Account Summary Statement
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Opening Market Value $8,877,545.78
Maturities/Calls (200,000.00)
Principal Dispositions (199,082.03)
Principal Acquisitions 389,067.70
Unsettled Trades 0.00
Change in Current Value (8,908.61)
Closing Market Value $8,858,622.84
Interest /Dividends /Coupons Received 11,217.96
Less Purchased Interest Related to Interest /Coupons 0.00
Plus Net Realized Gains /Losses 624.42
Total Cash Basis Earnings $11,842.38
Ending Amortized Value of Securities
8,841,035.58
Ending Accrued Interest
21,211.56
Plus Proceeds from Sales
199,243.29
Plus Proceeds of Maturities /Calls /Principal Payments
200,000.00
Plus Coupons /Dividends Received
11,056.70
Less Cost of New Purchases
(389,067.70)
Less Beginning Amortized Value of Securities
(8,852,960.23)
Less Beginning Accrued Interest
(24,177.85)
Total Accrual Basis Earnings $6,341.35
For the Month Ending June 30, 2015
Maturities/Calls
200,000.00
Sale Proceeds
199,243.29
Coupon /Interest /Dividend Income
11,056.70
Principal Payments
0.00
Security Purchases
(389,067.70)
Net Cash Contribution
0.00
Reconciling Transactions
0.00
Closing Cash Balance $77,019.62
�PF1I
Account Page i
PFM Asset Management LLC
Portfolio Summa ry and Statistics
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Description
Par Value
Market Value
Percent
U.S. Treasury Bond / Note
5,510,000.00
5,533,727.63
62.48
Supra - National Agency Bond / Note
120,000.00
119,840.16
1.35
Municipal Bond / Note
120,000.00
120,830.40
1.36
Federal Agency Bond / Note
930,000.00
932,076.99
10.52
Corporate Note
1,940,000.00
1,952,720.86
22.04
Commercial Paper
200,000.00
199,426.80
2.25
Managed Account Sub -Total
8,820,000.00
8,858,622.84
100.00%
Accrued Interest
21,211.56
Total Portfolio
8,820,000.00
8,879,834.40
Unsettled Trades
52.69%
42.80%
4.51%
0.00% 1
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years
0.00 0.00
0.00% 0.00% 0.00%
3- 4 Years 4- 5 Years Over 5 Years
US TSY Bond / Note
62.48%
For the Month Ending June 30, 2015
Commercial Paper
2.25%
Corporate Note
22.04%
Fed Agy Bond /
Note
10.52%
Muni Bond / Note
1.36%
Supra - National
Agency Bond / Note
1.35%
Yield to Maturity at Cost 0.86%
Yield to Maturity at Market 0.74%
Duration to Worst 1.80
Weighted Average Days to Maturity 675
• Account Page 2
PFM Asset Management LLC
PFM'
Managed Account Issuer Summary
NORTH PALM BEACH INVESTMENT PORTFOLIO - M
Total $8,858,622.84 100.000/0
AAA
1.35%
AA-
4.41%
AA+
74.70%
For the Month Ending June 30, 2015
0.62%
.11%
-1
.25%
A
.56%
• Account 61350001 Page 3
�PF1I
PFM Asset Management LLC
Market Value
Issuer
of Holdings
Percent
AMERICAN HONDA FINANCE
70,200.13
0.79
BANK OF NEW YORK CO INC
199,882.00
2.26
CISCO SYSTEMS INC
190,675.07
2.15
COCA -COLA COMPANY
50,042.75
0.56
CONOCOPHILLIPS
39,970.92
0.45
DEERE & COMPANY
100,428.00
1.13
FANNIE MAE
100,380.80
1.13
FEDERAL HOME LOAN BANKS
315,318.26
3.56
FREDDIE MAC
516,377.93
5.84
GENERAL ELECTRIC CO
150,812.25
1.70
HSBC HOLDINGS PLC
199,449.80
2.25
IBM CORP
200,023.80
2.26
INTL BANK OF RECONSTRUCTION AND DEV
119,840.16
1.35
JP MORGAN CHASE & CO
398,724.40
4.50
PEPSICO, INC
189,821.79
2.14
STATE OF CALIFORNIA
120,830.40
1.36
THE WALT DISNEY CORPORATION
211,570.00
2.39
UNITED STATES TREASURY
5,533,727.63
62.48
WELLS FARGO & COMPANY
150,546.75
1.70
Total $8,858,622.84 100.000/0
AAA
1.35%
AA-
4.41%
AA+
74.70%
For the Month Ending June 30, 2015
0.62%
.11%
-1
.25%
A
.56%
• Account Page 3
�PF1I
PFM Asset Management LLC
Ir PFM,
Managed Account Detail of Securities Held For the Month Ending June 30, 2015
�ALM BEACH INVESTMENT PORTFOLIO -
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 Bond / Note
US TREASURY NOTES
375,000.00 AA+ Aaa 08/28/14 08/29/14 370,883.79 1.00 783.37 372,030.93 374,355.38
DTD 08/31/2012 0.625% 08/31/2017
�
M• Account Page 4
PFM Asset Management LLC
a_
Managed Account Detail of Securities Held For the Month Ending June 30, 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
2015 0.840% 03/24/2017
,I. Account Page 5
quPFM Asset Management LLC
a_
Managed Account Detail of Securities Held For the Month Ending June 30, 2015
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description
Dated Date /Coupon /Maturity
Federal Agency Bond / Note
CHASE CORP NOTES
46623EKD0
200,000.00
A
A3
03/02/15
03/05/15
199,936.00
1.71
1,123.89
199,942.92
199,297.60
(CALLABLE)
DTD 03/02/2015 1.700% 03/01/2018
,I. Account Page 6
quPFM Asset Management LLC
a_
Managed Account Detail of Securities Held For the Month Ending June 30, 2015
NORTH PALM BEACH INVESTMENT PORTFOLIO -
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
SECURITIES LLC COMM PAPER
46640PC43
200,000.00
A -1
P -1
06/08/15
06/08/15
199,100.00
0.60
0.00
199,176.67
199,426.80
-- 0.000% 03/04/2016
Security Type Sub -Total
200,000.00
199,100.00
0.60
0.00
199,176.67
199,426.80
Managed Account Sub -Total
8,820,000.00
8,890,608.44
0.86
21,211.56
8,841,035.58
8,858,622.84
Securities Sub -Total
$8,820,000.00
$8,890,608.44
0.86%
$21,211.56
$8,841,035.58
$8,858,622.84
Accrued Interest
$21,211.56
Total Investments
$8,879,834.40
Cp NI Account Page 7
VF PFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending June 30, 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
01/2013 0.750% 03/31/2018
�
,I. Account Page 8
quPFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending June 30, 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
U.S. Treasury Bond / Note
US TREASURY NOTES
NOTES
3135GOZL0
100,000.00
MORGANST
100.38
100,380.80
737.80
639.77
2.21
2.21
0.83
DTD 08/25/2014 1.000% 09/27/2017
Security Type Sub -Total 930,000.00 932,076.99 3,141.68 2,810.63 1.74 1.62 0.68
�PF1I
Account Page 9
PFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending June 30, 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
SYSTEMS INC CORP NOTE
17275RAU6
190,000.00 GOLDMAN
100.36
190,675.07
707.37
706.96
2.88
2.88
1.53
DTD 06/17/2015 1.650% 06/15/2018
Security Type Sub -Total 1,940,000.00 1,952,720.86 (10,183.14) 1,336.59 1.67 1.83 1.10
�PF1I
Account Page 10
PFM Asset Management LLC
= PFM'
Managed Account Fair Market Value & Analytics
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description Next Call Market Market
Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value
For the Month Ending June 30, 2015
Unreal G/L Unreal G/L Effective Duration YTM
On Cost Amort Cost Duration to Worst at Mkt
JP MORGAN SECURITIES LLC COMM PAPER 200,000.00 JPMCHASE 99.71 199,426.80 326.80 250.13 0.68 0.68 0.42
-- 0.000% 03/04/2016
Security Type Sub -Total 200,000.00 199,426.80 326.80 250.13 0.68 0.68 0.42
Managed Account Sub -Total 8,820,000.00 8,858,622.84 (31,985.60) 17,587.26 1.78 1.80 0.74
Securities Sub -Total $8,820,000.00 $8,858,622.84 ($31,985.60) $17,587.26
Accrued Interest $21,211.56
Total Investments $8,879,834.40
=PF1I
PFM Asset Management LLC
1.78 1.80 0.74%
Account Page 11
Managed Account Security Transactions & Interest For the Month Ending June 30, 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
06/08/15 06/08/15 JP MORGAN SECURITIES LLC COMM
50,000.00 49,626.95 14.52 49,641.47 (9.77) (74.91) SPEC LOT
DTD 11/30/2012 0.625% 11/30/2017
�PF1I
Account Page 12
PFM Asset Management LLC
= PFM'
Managed Account Security Transactions & Interest For the Month Ending June 30, 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
Transaction Type Sub -Total 200,000.00 199,082.03 161.26 199,243.29 306.64 61.53
Managed Account Sub -Total 10,014.33 11,217.96 21,232.29 624.42 61.53
Total Security Transactions $10,014.33 $11,217.96 $21,232.29 $624.42 $61.53
=PF1I
Account Page 13
PFM Asset Management LLC