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09-30-2018 Investment Performance ReviewVillage of North Palm Beach, Florida Investment Advisors 213 Market Street Harrisburg, PA 17101 717.232.2723 717.233.6073 fax PFM Asset Management LLC 300 South Orange Avenue Suite 1170 Orlando, FL 32801 407.648.2208 407.648.1323 fax Investment Performance Review For the Quarter Ended September 30, 2018 Steven Alexander, CTP, CGFO, CPPT, Managing Director Robert Cheddar, CFA, Chief Credit Officer, Managing Director Richard Pengelly, CFA, CTP, Director Jason Human, Client Manager Sean Gannon, Senior Analyst Page 1 of 62 VILLAGE OF NORTH PALM BEACH, FLORIDA For the Quarter Ended September 30, 2018 Table of Contents PFM Asset Management LLC Tab I Market Update Tab II Executive Summary Investment Portfolio Tab III Asset Allocation Chart Important Disclosures Page 2 of 62 Tab I PFM Asset Management LLC Page 3 of 62 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2018 Fixed Income Management SUMMARY •U.S. growth remained healthy in the third quarter as the unemployment rate hit historical lows, confidence rose further and stocks surged. This occurred despite ongoing concerns about a trade war with China, a disorderly Brexit, Italian budget concerns, Iran sanctions, a Turkish debt crisis and other geopolitical risks. •Positive domestic economic data included strong readings on the labor market, auto sales, industrial production, manufacturing and service sector purchasing manager surveys and consumer sentiment. On the weaker side, residential housing has slowed due to escalating prices and higher mortgage rates. Broad measures of inflation also moderated a bit during the quarter. Lastly, the twin deficits – the federal budget deficit and trade deficit – both portend long-term imbalances that could be problematic for sustainable long-term growth of the U.S. economy. •Amid strong economic fundamentals, the Federal Reserve (Fed) stayed the course, raising the federal funds rate by 0.25% to a new target range of 2.00% to 2.25%. Despite the removal of longstanding language from the Federal Open Market Committee (FOMC) statement that previously characterized the stance of monetary policy as “accommodative,” updated FOMC forecasts indicated an additional 0.25% hike is expected in December, followed by two to four more hikes in 2019. •The S&P 500 Index (S&P) soared by 7.7% during the quarter, lifting the year-to- date (YTD) return to 10.6%. But, prices may have gotten ahead of themselves, increasing the risk of a near-term pullback. International indices also posted healthy gains, despite a few struggling emerging market (EM) economies. ECONOMIC SNAPSHOT •Real gross domestic product (GDP) in the U.S. grew at an annualized rate of 4.2% in the second quarter, the fastest pace since 2014. Growth in the third quarter is expected to slow a bit, but remains healthy. •U.S. labor market conditions remained strong during the quarter. The U.S. economy has added an average of more than 200,000 jobs per month this year, and the unemployment rate dropped to a 48-year low of 3.7%. Although there are a record number of job openings in the U.S., strong employment reports continue to suggest that the job market remains tight. •On the inflation front, many gauges are now at or near the Fed’s 2% target. While job growth is solid, wage growth has been slower than in previous expansionary cycles, as companies continue to resist raising wages. Tariffs could, however, push prices higher as a result of the increased cost of raw materials and growing supply bottlenecks. Rising oil prices may nudge overall prices higher in coming quarters. INTEREST RATES •U.S. Treasury yields rose by 20-30 basis points (bps) (0.20% to 0.30%) in the quarter, with short-term yields outpacing longer-term yields. For example, the yield on the two-year Treasury note rose 29 bps to 2.82%, while the yield on the 10-year note rose 20 bps to end the quarter at 3.06%. The result was a flatter yield curve over the quarter, but the pace of flattening moderated near quarter-end. •The yield curve remains very flat from a historical perspective (less incentive for investors to increase maturity). The yield difference between 10-year and two-year U.S. Treasury notes ended the quarter at 24 bps (0.24%), only 8 bps off of the decade low. While a flattening curve is not a foolproof indicator of future recession, it is one of many signals investors look at for indications of the future economy. •As a result of rising yields, shorter Treasury indices outperformed longer-maturity ones. Although longer maturities provided higher yields, the small incremental benefit due to a flat yield curve was not sufficient to offset the adverse impact on market values due to increasing yields. For example, the three-month Treasury bill index generated a return of 0.49% for the quarter, while the five- and 10-year Treasury returned -0.26% and -1.1%, respectively. SECTOR PERFORMANCE •Although Treasury returns were muted by rising rates during the quarter, diversification into other sectors added value as most other investment-grade (IG), fixed-income asset classes outperformed Treasuries. Corporates and asset-backed securities (ABS) performed well, generating strong, positive excess returns. •Despite very narrow spreads available in the federal agency sector, returns in the sector generated excess returns near double digits for the third quarter. Because of their incremental yield and shorter durations, callable agencies accounted for the majority of the excess returns from the sector. •Supranational securities performed well, as the combination of tighter spreads and incremental income led to the sector posting attractive returns relative to both Treasuries and agencies. •The corporate sector benefitted the most from incremental income, posting attractive excess returns for the third quarter. Record earnings, stable credit fundamentals and a generally positive economic environment continued to serve as tailwinds to the sector. Specifically, one- to three-year BBB-rated corporate issuers were one of the best-performing segments of the IG market during the third quarter. •Similarly, AAA-rated ABS were a positive contributor to performance for the third quarter, posting excess returns on average in the 25-30 bps range. •Mortgage-backed securities (MBS) generated positive excess returns for the second consecutive quarter, despite still being in the red YTD. Longer was better for the third quarter, as 30-year collateral pools outperformed their 15-year counterparts. Meanwhile, agency-backed commercial MBS (CMBS) was the best segment of the securitized asset class, as these structures are less sensitive to increasing interest rates. •Commercial paper and certificate of deposit yield spreads grinded to one-year lows over the quarter. As a result, short-term credit instruments now look more expensive relative to U.S. Treasuries. Still, they offer incrementally higher yields relative to similar-maturity government alternatives. PFM Asset Management LLC Page 4 of 62 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2018 Fixed Income Management Economic Snapshot Labor Market Jun '18 Sep '17 Unemployment Rate Sep'18 3.7%4.0%4.2% Change In Non-farm Payrolls Sep'18 134,000 208,000 14,000 Average Hourly Earnings (YoY)Sep'18 2.8%2.8%2.8% Personal Income (YoY)Aug'18 4.7%4.9%4.6% Initial Jobless Claims (week)10/6/18 214,000 232,000 254,000 Growth Real GDP (QoQ SAAR)2018Q2 4.2%2.2%3.0% GDP Personal Consumption (QoQ SAAR) 2018Q2 3.8%0.5%2.9% Retail Sales (YoY)Sep'18 4.7%6.1%5.2% ISM Manufacturing Survey (month)Sep'18 59.8 60.2 60.2 Existing Home Sales SAAR (month)Aug'18 5.34 mil. 5.38 mil. 5.37 mil. Inflation / Prices Personal Consumption Expenditures (YoY) Aug'18 2.2%2.3%1.8% Consumer Price Index (YoY)Sep'18 2.3%2.9%2.2% Consumer Price Index Core (YoY)Sep'18 2.2%2.3%1.7% Crude Oil Futures (WTI, per barrel)Sep 30 $73.25 $74.15 $51.67 Gold Futures (oz.)Sep 30 $1,192 $1,255 $1,282 Latest 0 150K 300K 450K 3% 4% 5% 6% Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Sep '18 Unemployment Rate (left) vs. Change in Non-farm Payrolls (right) Change In Non-farm Payrolls Unemployment Rate 0% 2% 4% 6% Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Jun '18 Real GDP (QoQ) 0% 1% 2% 3% 4% Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Sep '18 Consumer Price Index CPI (YoY)Core CPI (YoY) 2 2 1 1 1. Data as of First Quarter 2018. 2. Data as of Second Quarter 2017. Note: YoY = year-over-year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil. Source: Bloomberg. PFM Asset Management LLC Page 5 of 62 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2018 Fixed Income Management Source: Bloomberg. Interest Rate Overview U.S. Treasury Note Yields U.S. Treasury Yield Curve U.S. Treasury Yields Yield Curves as of 9/30/18 0% 1% 2% 3% 4%3-mo1-yr2-yr3-yr5-yr7-yr10-yr30-yrYieldMaturity September 30, 2018 June 30, 2018 September 30, 2017 0% 1% 2% 3% 4% 5%3-mo1-yr2-yr3-yr5-yr7-yr10-yr25-yr30-yrYieldMaturity U.S. Treasury Federal Agency Corporates, A Rated 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 9/30/17 12/31/17 3/31/18 6/30/18 9/30/18Yield 2-Year 5-Year 10-Year Maturity Sep '18 Jun '18 Change Over Quarter Sep '17 Change Over Year 3-month 2.20% 1.92% 0.28% 1.05% 1.15% 1-year 2.57% 2.31% 0.26% 1.29% 1.28% 2-year 2.82% 2.53% 0.29% 1.49% 1.33% 5-year 2.95% 2.74% 0.21% 1.94% 1.01% 10-year 3.06% 2.86% 0.20% 2.33% 0.73% 30-year 3.21% 2.99% 0.22% 2.86% 0.35% PFM Asset Management LLC Page 6 of 62 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2018 Fixed Income Management Source: ICE BofAML Indices. September 30, 2018 Duration Yield 3 Month 1 Year 3 Years 1-3 Year Indices U.S. Treasury 1.81 2.80% 0.19% 0.04% 0.38% Federal Agency 1.69 2.80% 0.32% 0.34% 0.59% U.S. Corporates, A-AAA-rated 1.83 3.21% 0.67% 0.67% 1.38% Agency MBS (0 to 3 years)4.53 3.45%(0.37%) (0.38%)0.82% Taxable Municipals 1.80 3.06% 0.60% 1.32% 2.14% 1-5 Year Indices U.S. Treasury 2.58 2.85% 0.05%(0.58%)0.29% Federal Agency 2.03 2.84% 0.26% 0.03% 0.59% U.S. Corporates, A-AAA-rated 2.59 3.35% 0.66% 0.06% 1.47% Agency MBS (0 to 5 years)3.65 3.30% 0.11%(0.82%)0.81% Taxable Municipals 2.41 3.38% 0.57% 1.08% 2.15% Master Indices (Maturities 1 Year or Greater) U.S. Treasury 6.13 2.95%(0.66%) (1.64%)0.28% Federal Agency 3.89 2.99%(0.01%) (0.56%)0.80% U.S. Corporates, A-AAA-rated 6.82 3.79% 0.67%(1.29%)2.43% Agency MBS (0 to 30 years)5.11 3.56%(0.12%) (0.88%)1.00% Taxable Municipals 10.33 4.19%(0.67%) (0.38%)4.67% As of 9/30/18 Returns for Periods ended 9/30/18 Returns for periods greater than one year are annualized. PFM Asset Management LLC ICE BofAML Index Returns Page 7 of 62 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2018 Fixed Income Management DISCLOSURES PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFM’s services or entities, please visit www.pfm.com. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC 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, 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. © 2018 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. PFM Asset Management LLC Page 8 of 62 Tab II PFM Asset Management LLC Page 9 of 62 VILLAGE OF NORTH PALM BEACH, FLORIDA For the Quarter Ended September 30, 2018 Executive Summary PFM Asset Management LLC The Investment Portfolio is of high credit quality and invested in U.S.Treasury, federal agency/GSE,federal agency/CMO, supranational, municipal, asset-backed,and corporate note securities. The Investment Portfolio’s quarterly total return performance of 0.44%outperformed the benchmark performance of 0.19% by 0.25%. The last 12 months total return performance for the Portfolio was 0.47% versus the benchmark’s return of 0.04%. We positioned portfolios with a defensive duration posture for the majority of the past two quarters in light of the Fed’s impact on short-term rates.This has benefited portfolio returns as yields across the curve approached new highs for this cycle.Economic conditions were characterized by: –The yield on the 2-year Treasury note rising by 29 basis points to end the quarter at 2.82%, –A robust labor market, with the U.S. unemployment rate near 48 year lows, –Core inflation near the Fed’s 2% target, while oil prices surged and wages trended higher, –Consumer confidence is at a near two-decade high, while measures of manufacturing activity are also very strong, –A resurging stock market, with the S&P 500 Index rising 7.7% for the third quarter, the largest quarterly gain since Q4 2013, –As well as, an escalating trade war with China, weakness in emerging market economies and currencies, and political uncertainty. While the Fed’s policy actions will depend on future economic data,we believe the current strength of the U.S. economy, coupled with a strong labor market and rising inflation,will cause the Fed to continue raising rates at a pace of about one ¼percent hike per quarter well into 2019.Therefore,we plan to maintain a defensive duration posture to mitigate a portion of interest rate risk relative to benchmarks. Page 10 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Snapshot Portfolio Statistics As of September 30, 2018 $9,270,740 $9,201,412 $9,145,059 $33,485 $22,869 Accrued Interest: Cash: Par Value: Total Market Value: Security Market Value: $9,253,341 2.82% 2.04% AAAverage Credit: * Yield at Cost: Amortized Cost: Yield at Market: Effective Duration:1.69 Years Duration to Worst:1.77 Years Average Maturity:2.10 Years Credit Quality (S&P Ratings) 5.3% A 3.8% A- 12.2% A+ 3.7% AA 7.5% AA- 40.2% AA+ 20.4% AAA 0.9% BBB+ 6.1% Not Rated 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years 17.0% 32.5% 40.6% 3.9%5.4% 0.6% Maturity Distribution Sector Allocation 16.8% Asset-Backed 32.1% Corporate 1.1% Federal Agency/CMO 2.7% Federal Agency/GSE 3.1% Municipal 8.5% Supra-Sov / Supra-Natl Agency 35.7% U.S. Treasury PFM Asset Management LLC * An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio. Page 11 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Performance Portfolio Performance (Total Return) Effective DurationPortfolio/Benchmark Annualized Return 10 Year1 Year 3 Year 5 Year Since Inception (06/30/09) ** Current Quarter NORTH PALM BEACH INVESTMENT PORTFOLIO 1.69 0.44%-0.47%0.79%0.82%1.01% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 0.19%-0.04%0.38%0.56%0.89% Difference 0.43% 0.25%0.41%0.26%-0.12% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception 0.44%0.47% 0.79%0.82% 1.01% 0.19% 0.04% 0.38% 0.56% 0.89%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Portfolio performance is gross of fees unless otherwise indicated. **Since Inception performance is not shown for periods less than one year. Page 12 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Performance Portfolio Performance (Total Return) Effective DurationPortfolio/Benchmark Annualized Return 06/30/18 12/31/1709/30/18 03/31/18 Quarter Ended 5 Year1 Year 3 Year NORTH PALM BEACH INVESTMENT PORTFOLIO 1.69 0.44%0.47%0.79%0.82%0.35% -0.17%-0.15% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 0.19%0.04%0.38%0.56%0.22% -0.13% -0.25% Difference 0.43% 0.25%0.41%0.26%0.13% -0.04% 0.10% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 09/30/18 06/30/18 03/31/18 12/31/17 1 Year 3 Year 5 Year 0.44% 0.35% -0.17%-0.15% 0.47% 0.79%0.82% 0.19%0.22% -0.13% -0.25% 0.04% 0.38% 0.56%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Portfolio performance is gross of fees unless otherwise indicated. Page 13 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Performance Portfolio Performance (Total Return) 06/30/18 12/31/1709/30/18 03/31/18 Quarter Ended Annualized Return 5 Year1 Year 3 YearPortfolio/Benchmark Effective Duration 0.47%0.79%0.82%0.35% -0.17%-0.15%NORTH PALM BEACH INVESTMENT PORTFOLIO 0.44%1.69 0.39%0.71%0.74%0.33% -0.19% -0.17% Net of Fees ** 0.42%- 0.04%0.38%0.56%0.22% -0.13% -0.25%ICE BofAML 1-3 Year U.S. Treasury Index 0.19%1.80 0.43% 0.25%0.41%0.26%0.13% -0.04% 0.10%Difference (Gross) Difference (Net) 0.23% 0.11%-0.06% 0.08%0.35%0.33%0.18% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 09/30/18 06/30/18 03/31/18 12/31/17 1 Year 3 Year 5 Year 0.44% 0.35% -0.17%-0.15% 0.47% 0.79%0.82% 0.19%0.22% -0.13% -0.25% 0.04% 0.38% 0.56%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Portfolio performance is gross of fees unless otherwise indicated. ** Fees were calculated based on average assets during the period at the contractual rate. Page 14 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Performance Portfolio Earnings Quarter-Ended September 30, 2018 Market Value Basis Accrual (Amortized Cost) Basis Net Purchases/Sales Change in Value Interest Earned $9,116,516.58 $31,099.29 ($2,557.34) $42,850.07 $40,292.73 $9,145,058.53 $9,232,381.03 $31,099.29 ($10,139.16) $42,850.07 $32,710.91 $9,253,341.16 Portfolio Earnings Beginning Value (06/30/2018) Ending Value (09/30/2018) PFM Asset Management LLC Page 15 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Sector Allocation September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 % of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM) U.S. Treasury 3.3 35.7% 2.8 30.7% 3.0 33.4% 2.5 28.1% Corporate 2.9 32.1% 2.9 31.5% 2.7 30.4% 3.0 32.7% Asset-Backed 1.5 16.8% 1.4 15.4% 1.4 15.0% 1.3 14.2% Supra-Sov / Supra-Natl Agency 0.8 8.5% 0.7 7.6% 0.8 8.5% 0.6 7.0% Municipal 0.3 3.1% 0.3 3.1% 0.2 2.0% 0.2 2.0% Federal Agency/GSE 0.3 2.7% 0.9 10.4% 0.9 10.5% 1.4 15.7% Federal Agency/CMO 0.1 1.1% 0.1 1.3% 0.0 0.2% 0.0 0.3% $9.1 100.0%$9.1 100.0%$9.0 100.0%$9.1 100.0%Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% September 2018 June 2018 March 2018 December 2017 Federal Agency/CMO Federal Agency/GSE Municipal Supra-Sov / Supra-Natl Agency Asset-Backed Corporate U.S. Treasury PFM Asset Management LLC Detail may not add to total due to rounding. Page 16 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Maturity Distribution As of September 30, 2018 >5 Years 4-5 Years 3-4 Years 2-3 Years 1-2 Years 0-1 Years Yield at MarketPortfolio/Benchmark Average Maturity NORTH PALM BEACH INVESTMENT PORTFOLIO 2.82% 17.0% 32.5% 40.6% 3.9% 5.4% 0.6%2.10 yrs ICE BofAML 1-3 Year U.S. Treasury Index 2.81% 2.8% 54.2% 43.0% 0.0% 0.0% 0.0%1.94 yrs 0% 10% 20% 30% 40% 50% 60% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 17.0% 32.5% 40.6% 3.9%5.4% 0.6%2.8% 54.2% 43.0% 0.0%0.0%0.0% NORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Page 17 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition As of September 30, 2018 Duration Distribution > 5 YEARS4-5 YEARS3-4 YEARS2-3 YEARS1-2 YEARS0-1 YEARSEffective DurationPortfolio / Benchmark NORTH PALM BEACH INVESTMENT PORTFOLIO 1.69 23.5% 36.5% 40.0% 0.0% 0.0% 0.0% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 2.8% 54.9% 42.3% 0.0% 0.0% 0.0% 0% 10% 20% 30% 40% 50% 60% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 24% 36% 40% 0%0%0%3% 55% 42% 0%0%0% Distribution by Effective Duration NORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index 0% 10% 20% 30% 40% 50% 60% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 10% 33% 57% 0%0%0%1% 44% 55% 0%0%0% Contribution to Portfolio Duration ICE BofAML 1-3 Year U.S. Treasury Index NORTH PALM BEACH INVESTMENT PORTFOLIO PFM Asset Management LLC Page 18 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Credit Quality As of September 30, 2018 S&P Rating Market Value ($)% of Portfolio 40.2%$3,672,780AA+ 20.4%$1,861,729AAA 12.2%$1,113,035A+ 7.5%$684,300AA- 6.1%$555,373Not Rated 5.3%$485,244A 3.8%$349,845A- 3.7%$339,145AA 0.9%$83,608BBB+ Totals 100.0%$9,145,059 5.3% A 3.8% A- 12.2% A+ 3.7% AA 7.5% AA- 40.2% AA+ 20.4% AAA 0.9% BBB+ 6.1% Not Rated PFM Asset Management LLC Detail may not add to total due to rounding. Page 19 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Issuer Distribution As of September 30, 2018 Market Value ($)% of PortfolioIssuer UNITED STATES TREASURY 3,269,649 35.8% AFRICAN DEVELOPMENT BANK 231,750 2.5% INTL BANK OF RECONSTRUCTION AND DEV 222,357 2.4% FANNIE MAE 217,722 2.4% CITIGROUP INC 198,398 2.2% TOYOTA MOTOR CORP 196,552 2.2% AMERICAN EXPRESS CO 182,165 2.0% FLORIDA ST HURRICAN CAT FUND 179,388 2.0% CNH EQUIPMENT TRUST 177,026 1.9% TORONTO-DOMINION BANK 153,270 1.7% WELLS FARGO & COMPANY 149,072 1.6% BANK OF NOVA SCOTIA 148,913 1.6% INTER-AMERICAN DEVELOPMENT BANK 142,739 1.6% WESTPAC BANKING CORP 139,072 1.5% BANK OF AMERICA CO 122,802 1.3% HONDA AUTO RECEIVABLES 110,746 1.2% HYUNDAI AUTO RECEIVABLES 108,200 1.2% WAL-MART STORES INC 104,769 1.2%Top 5 = 45.3%Top 10 = 55.0% PFM Asset Management LLC Page 20 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Market Value ($)% of PortfolioIssuer CHEVRON CORPORATION 104,344 1.1% CALIFORNIA ST 99,668 1.1% AMERICAN HONDA FINANCE 99,213 1.1% ROYAL BANK OF CANADA 98,970 1.1% BANK OF MONTREAL 98,967 1.1% CANADIAN IMPERIAL BANK OF COMMERCE 98,864 1.1% HSBC HOLDINGS PLC 98,648 1.1% ALLY AUTO RECEIVABLES TRUST 97,935 1.1% FEDERAL HOME LOAN BANKS 97,185 1.1% BP PLC 89,196 1.0% INTERNATIONAL FINANCE CORPORATION 89,186 1.0% MICROSOFT CORP 88,867 1.0% ASIAN DEVELOPMENT BANK 88,807 1.0% INTEL CORPORATION 88,559 1.0% CATERPILLAR INC 88,395 1.0% THE WALT DISNEY CORPORATION 88,298 1.0% NISSAN AUTO RECEIVABLES 87,226 1.0% DEERE & COMPANY 84,498 0.9% CARMAX AUTO OWNER TRUST 75,256 0.8% TOTAL SA 74,753 0.8% PACCAR FINANCIAL CORP 73,891 0.8% PFM Asset Management LLC Page 21 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Market Value ($)% of PortfolioIssuer JP MORGAN CHASE & CO 73,654 0.8% JOHN DEERE OWNER TRUST 71,353 0.8% CAPITAL ONE FINANCIAL CORP 68,565 0.8% CHARLES SCHWAB 60,007 0.7% FORD CREDIT AUTO OWNER TRUST 59,459 0.7% PFIZER INC 54,988 0.6% WORLD OMNI AUTO REC TRUST 54,975 0.6% GENERAL DYNAMICS CORP 54,867 0.6% APPLE INC 54,079 0.6% UNITED PARCEL SERVICE INC 53,557 0.6% MERCEDES-BENZ AUTO RECEIVABLES 49,940 0.6% VISA INC 49,135 0.5% MORGAN STANLEY 48,853 0.5% HERSHEY COMPANY 44,939 0.5% BB&T CORPORATION 44,282 0.5% HOME DEPOT INC 44,281 0.5% NATIONAL RURAL UTILITIES CO FINANCE CORP 39,722 0.4% GLAXOSMITHKLINE PLC 34,945 0.4% GM FINANCIAL SECURITIZED TERM 34,933 0.4% GOLDMAN SACHS GROUP INC 34,755 0.4% FREDDIE MAC 34,144 0.4% PFM Asset Management LLC Page 22 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Market Value ($)% of PortfolioIssuer FORD CREDIT AUTO LEASE TRUST 24,999 0.3% 3M COMPANY 24,958 0.3% HONEYWELL INTERNATIONAL 24,755 0.3% GM FINANCIAL AUTO LEASING TRUST 20,003 0.2% JOHNSON & JOHNSON 19,596 0.2% 9,145,059 100.0%Grand Total: PFM Asset Management LLC Page 23 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition Sector/Issuer Distribution As of September 30, 2018 % of SectorSector / Issuer Market Value ($)% of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 1.1% 6.4% 97,935 AMERICAN EXPRESS CO 1.1% 6.4% 98,153 BANK OF AMERICA CO 0.7% 4.2% 64,100 CAPITAL ONE FINANCIAL CORP 0.7% 4.5% 68,565 CARMAX AUTO OWNER TRUST 0.8% 4.9% 75,256 CITIGROUP INC 2.2% 12.9% 198,398 CNH EQUIPMENT TRUST 1.9% 11.5% 177,026 FORD CREDIT AUTO LEASE TRUST 0.3% 1.6% 24,999 FORD CREDIT AUTO OWNER TRUST 0.7% 3.9% 59,459 GM FINANCIAL AUTO LEASING TRUST 0.2% 1.3% 20,003 GM FINANCIAL SECURITIZED TERM 0.4% 2.3% 34,933 HONDA AUTO RECEIVABLES 1.2% 7.2% 110,746 HYUNDAI AUTO RECEIVABLES 1.2% 7.1% 108,200 JOHN DEERE OWNER TRUST 0.8% 4.7% 71,353 MERCEDES-BENZ AUTO RECEIVABLES 0.5% 3.3% 49,940 NISSAN AUTO RECEIVABLES 1.0% 5.7% 87,226 TOYOTA MOTOR CORP 1.4% 8.6% 132,533 WORLD OMNI AUTO REC TRUST 0.6% 3.6% 54,975 100.0% 16.8% 1,533,800 Sector Total PFM Asset Management LLC Page 24 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio Corporate 3M COMPANY 0.3% 0.8% 24,958 AMERICAN EXPRESS CO 0.9% 2.9% 84,012 AMERICAN HONDA FINANCE 1.1% 3.4% 99,213 APPLE INC 0.6% 1.8% 54,079 BANK OF AMERICA CO 0.6% 2.0% 58,701 BANK OF MONTREAL 1.1% 3.4% 98,967 BANK OF NOVA SCOTIA 1.6% 5.1% 148,913 BB&T CORPORATION 0.5% 1.5% 44,282 BP PLC 1.0% 3.0% 89,196 CANADIAN IMPERIAL BANK OF COMMERCE 1.1% 3.4% 98,864 CATERPILLAR INC 1.0% 3.0% 88,395 CHARLES SCHWAB 0.7% 2.0% 60,007 CHEVRON CORPORATION 1.1% 3.6% 104,344 DEERE & COMPANY 0.9% 2.9% 84,498 GENERAL DYNAMICS CORP 0.6% 1.9% 54,867 GLAXOSMITHKLINE PLC 0.4% 1.2% 34,945 GOLDMAN SACHS GROUP INC 0.4% 1.2% 34,755 HERSHEY COMPANY 0.5% 1.5% 44,939 HOME DEPOT INC 0.5% 1.5% 44,281 HONEYWELL INTERNATIONAL 0.3% 0.8% 24,755 HSBC HOLDINGS PLC 1.1% 3.4% 98,648 INTEL CORPORATION 1.0% 3.0% 88,559 JOHNSON & JOHNSON 0.2% 0.7% 19,596 JP MORGAN CHASE & CO 0.8% 2.5% 73,654 PFM Asset Management LLC Page 25 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio MICROSOFT CORP 1.0% 3.0% 88,867 MORGAN STANLEY 0.5% 1.7% 48,853 NATIONAL RURAL UTILITIES CO FINANCE CORP 0.4% 1.4% 39,722 PACCAR FINANCIAL CORP 0.8% 2.5% 73,891 PFIZER INC 0.6% 1.9% 54,988 ROYAL BANK OF CANADA 1.1% 3.4% 98,970 THE WALT DISNEY CORPORATION 1.0% 3.0% 88,298 TORONTO-DOMINION BANK 1.7% 5.2% 153,270 TOTAL SA 0.8% 2.5% 74,753 TOYOTA MOTOR CORP 0.7% 2.2% 64,018 UNITED PARCEL SERVICE INC 0.6% 1.8% 53,557 VISA INC 0.5% 1.7% 49,135 WAL-MART STORES INC 1.1% 3.6% 104,769 WELLS FARGO & COMPANY 1.6% 5.1% 149,072 WESTPAC BANKING CORP 1.5% 4.7% 139,072 100.0% 32.1% 2,938,663 Sector Total Federal Agency/CMO FANNIE MAE 0.7% 65.4% 64,575 FREDDIE MAC 0.4% 34.6% 34,144 100.0% 1.1% 98,720 Sector Total Federal Agency/GSE FANNIE MAE 1.7% 61.2% 153,147 FEDERAL HOME LOAN BANKS 1.1% 38.8% 97,185 PFM Asset Management LLC Page 26 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio 100.0% 2.7% 250,331 Sector Total Municipal CALIFORNIA ST 1.1% 35.7% 99,668 FLORIDA ST HURRICAN CAT FUND 2.0% 64.3% 179,388 100.0% 3.1% 279,056 Sector Total Supra-Sov / Supra-Natl Agency AFRICAN DEVELOPMENT BANK 2.5% 29.9% 231,750 ASIAN DEVELOPMENT BANK 1.0% 11.5% 88,807 INTER-AMERICAN DEVELOPMENT BANK 1.6% 18.4% 142,739 INTERNATIONAL FINANCE CORPORATION 1.0% 11.5% 89,186 INTL BANK OF RECONSTRUCTION AND DEV 2.4% 28.7% 222,357 100.0% 8.5% 774,839 Sector Total U.S. Treasury UNITED STATES TREASURY 35.8% 100.0% 3,269,649 100.0% 35.8% 3,269,649 Sector Total 100.0% 9,145,059 Portfolio Total 100.0% PFM Asset Management LLC Page 27 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Maturity DatePar ($)CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon BUY 7/11/18 7/18/18 35,000 US TREASURY N/B 9/15/21 99,643.24 2.89%2.75% 1,090,000 1,087,676.49Total BUY INTEREST 7/1/18 7/1/18 180,000 MONEY MARKET FUND 34.82 PFM Asset Management LLC Page 28 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 7/10/18 7/10/18 90,000 BANK OF MONTREAL 7/18/19 750.00 1.50% PFM Asset Management LLC Page 29 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 7/18/18 7/18/18 30,000 JOHN DEERE ABS 2017-B A3 10/15/21 45.50 1.82% PFM Asset Management LLC Page 30 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 8/15/18 8/15/18 44,202 FHLMC MULTIFAMILY STRUCTURED P 2/25/23 77.98 2.66% PFM Asset Management LLC Page 31 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 9/1/18 9/25/18 63,143 HYUNDAI ABS 2017-A A3 8/15/21 58.67 1.76% 9/15/18 9/15/18 25,000 FORD ABS 2017-A A3 6/15/21 83.50 1.67% PFM Asset Management LLC Page 32 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($)CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 9/15/18 9/15/18 30,000 US TREASURY NOTES 3/31/21 3,375.00 2.25% 8,762,875 43,751.80Total INTEREST MATURITY 7/13/18 7/13/18 45,000 TOYOTA MOTOR CREDIT CORP 7/13/18 45,000.00 0.00 1.55% 45,000 45,000.00 0.00Total MATURITY PAYDOWNS 7/1/18 7/25/18 620 CARMAX ABS 2017-1 A2 2/15/20 5,272.23 0.00 1.54% PFM Asset Management LLC Page 33 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($)CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 7/15/18 7/15/18 5,643 HONDA ABS 2017-1 A3 7/21/21 61.78 0.00 1.72% 97,863 97,862.97 0.00Total PAYDOWNS PFM Asset Management LLC Page 34 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon SELL 7/18/18 7/25/18 50,000 CHEVRON CORP NOTES 5/16/19 74,943.01 2.52% (463.50)1.56% 925,000 913,923.59 -11,665.29Total SELL PFM Asset Management LLC Page 35 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Quarterly Portfolio Transactions Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 7/1/18 7/1/18 180,000.00 NISSAN ABS 2016-C A3INTEREST 1/15/21 46.53 1.18% PFM Asset Management LLC Page 36 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 7/15/18 7/15/18 56,516.63 JOHN DEERE ABS 2016-B A3PAYDOWNS 6/15/20 1,688.90 0.00 1.25% PFM Asset Management LLC Page 37 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 7/17/18 7/17/18 100,000.00 BRANCH BANKING & TRUST (CALLABLE) NOTESINTEREST 2/1/21 268.75 2.15% PFM Asset Management LLC Page 38 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 8/1/18 8/1/18 0.00 TOYOTA ABS 2017-A A3INTEREST 2/15/21 43.25 1.73% PFM Asset Management LLC Page 39 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 8/15/18 8/15/18 25,000.00 NISSAN ABS 2016-C A3PAYDOWNS 1/15/21 2,965.88 0.00 1.18% PFM Asset Management LLC Page 40 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 8/15/18 8/15/18 5,183.75 FNA 2018-M5 A2PAYDOWNS 9/25/21 1,776.21 0.00 3.56% PFM Asset Management LLC Page 41 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 9/1/18 9/25/18 585.21 JOHN DEERE ABS 2017-B A3INTEREST 10/15/21 45.50 1.82% PFM Asset Management LLC Page 42 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 9/15/18 9/15/18 18,636.83 COMET 2017-A4 A4INTEREST 7/17/23 116.08 1.99% PFM Asset Management LLC Page 43 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 9/15/18 9/15/18 25,000.00 CHEVRON CORP NOTESSELL 5/16/19 74,943.01 2.52%(463.50)1.56% PFM Asset Management LLC Page 44 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 9/21/18 9/21/18 45,000.00 US TREASURY NOTESINTEREST 3/31/21 3,375.00 2.25% TOTALS 12,861.87 (11,665.29) PFM Asset Management LLC Page 45 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity U.S. Treasury Bond / Note AA+Aaa 1/3/2017 1/5/2017 39,684.38 84.24 39,862.88 39,225.001.51US TREASURY NOTES DTD 02/02/2015 1.250% 01/31/2020 912828H52 40,000.00 AA+ Aaa 8/31/2017 9/1/2017 575,067.38 1,009.77 575,037.71 564,421.151.37US TREASURY NOTES DTD 02/15/2017 1.375% 02/15/2020 912828W22 575,000.00 AA+ Aaa 4/7/2017 4/10/2017 213,891.40 1,237.13 214,426.83 210,338.801.55US TREASURY NOTES DTD 04/30/2015 1.375% 04/30/2020 912828K58 215,000.00 AA+ Aaa 6/26/2017 6/28/2017 245,880.47 1,006.13 245,511.60 240,080.891.50US TREASURY NOTES DTD 06/30/2015 1.625% 06/30/2020 912828XH8 245,000.00 AA+ Aaa 7/5/2017 7/7/2017 265,186.33 725.51 265,111.30 259,389.421.60US TREASURY NOTES DTD 07/31/2015 1.625% 07/31/2020 912828XM7 265,000.00 AA+ Aaa 8/1/2017 8/3/2017 199,164.06 235.50 199,479.40 194,640.601.51US TREASURY NOTES DTD 08/31/2015 1.375% 08/31/2020 912828L32 200,000.00 AA+ Aaa 10/4/2017 10/5/2017 143,838.87 834.34 144,212.46 140,734.971.64US TREASURY NOTES DTD 10/31/2015 1.375% 10/31/2020 912828L99 145,000.00 AA+ Aaa 11/1/2017 11/3/2017 119,507.81 655.33 119,653.32 116,939.041.76US TREASURY NOTES DTD 11/30/2015 1.625% 11/30/2020 912828M98 120,000.00 AA+ Aaa 12/7/2017 12/8/2017 223,690.43 995.07 224,038.01 219,656.251.95US TREASURY NOTES DTD 12/31/2015 1.750% 12/31/2020 912828N48 225,000.00 AA+ Aaa 2/1/2018 2/2/2018 194,453.13 463.32 195,675.06 193,336.002.34US TREASURY NOTES DTD 01/31/2016 1.375% 01/31/2021 912828N89 200,000.00 AA+ Aaa 8/27/2018 8/29/2018 148,482.42 431.05 148,538.00 147,908.252.68US TREASURY N/B NOTES DTD 02/15/2018 2.250% 02/15/2021 9128283X6 150,000.00 AA+ Aaa 3/5/2018 3/6/2018 298,312.50 18.54 298,627.12 295,581.902.44US TREASURY NOTES DTD 03/31/2014 2.250% 03/31/2021 912828C57 300,000.00 AA+ Aaa 6/4/2018 6/6/2018 246,201.17 1,342.56 246,598.02 245,048.752.64US TREASURY NOTES DTD 06/30/2014 2.125% 06/30/2021 912828WR7 250,000.00 AA+ Aaa 9/5/2018 9/7/2018 250,205.08 878.06 250,200.49 249,072.252.72US TREASURY NOTES DTD 08/15/2018 2.750% 08/15/2021 9128284W7 250,000.00 AA+ Aaa 8/1/2018 8/3/2018 53,721.68 94.20 53,788.78 53,655.092.79US TREASURY NOTES DTD 09/02/2014 2.000% 08/31/2021 912828D72 55,000.00 PFM Asset Management LLC Page 46 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity U.S. Treasury Bond / Note AA+Aaa 9/20/2018 9/21/2018 99,597.66 121.55 99,601.35 99,621.102.89US TREASURY N/B DTD 09/17/2018 2.750% 09/15/2021 9128285A4 100,000.00 1.97 3,269,649.46 3,320,362.33 10,132.30 3,335,000.00 3,316,884.77Security Type Sub-Total Supra-National Agency Bond / Note AAA Aaa 7/6/2016 7/13/2016 139,970.60 156.53 139,991.71 137,881.660.88INTL BANK OF RECON AND DEV SN NOTE DTD 07/13/2016 0.875% 08/15/2019 459058FK4 140,000.00 AAA Aaa 9/14/2016 9/20/2016 89,904.60 30.94 89,969.16 88,608.691.16AFRICAN DEVELOPMENT BANK NOTE DTD 09/20/2016 1.125% 09/20/2019 00828EBQ1 90,000.00 AAA Aaa 1/4/2017 1/12/2017 89,947.80 354.38 89,977.74 88,806.961.77ASIAN DEVELOPMENT BANK NOTE DTD 01/12/2017 1.750% 01/10/2020 045167DT7 90,000.00 AAA Aaa 3/8/2017 3/16/2017 104,844.60 82.03 104,924.57 103,502.701.93AFRICAN DEVELOPMENT BANK NOTE DTD 03/16/2017 1.875% 03/16/2020 00828ECA5 105,000.00 AAA Aaa 4/5/2017 4/12/2017 89,786.70 564.69 89,888.43 88,238.971.70INTER-AMERICAN DEVEL BK NOTE DTD 04/12/2017 1.625% 05/12/2020 4581X0CX4 90,000.00 AAA Aaa 3/9/2018 3/16/2018 89,932.50 144.93 89,944.83 89,186.402.66INTERNATIONAL FINANCE CORPORATION NOTE DTD 03/16/2018 2.635% 03/09/2021 45950VLQ7 90,000.00 AAA Aaa 3/14/2018 3/22/2018 39,958.80 26.25 39,966.06 39,638.522.66AFRICAN DEVELOPMENT BANK NOTE DTD 03/22/2018 2.625% 03/22/2021 00828ECZ0 40,000.00 AAA Aaa 4/12/2018 4/19/2018 54,879.00 649.69 54,897.22 54,500.332.70INTER-AMERICAN DEVELOPMENT BANK NOTE DTD 04/19/2018 2.625% 04/19/2021 4581X0DB1 55,000.00 AAA Aaa 7/18/2018 7/25/2018 84,801.10 428.54 84,813.46 84,475.212.83INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 07/25/2018 2.750% 07/23/2021 459058GH0 85,000.00 1.89 774,839.44 784,373.18 2,437.98 785,000.00 784,025.70Security Type Sub-Total PFM Asset Management LLC Page 47 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Municipal Bond / Note AA Aa3 2/23/2016 3/8/2016 180,000.00 973.35 180,000.00 179,388.002.16FL ST BOARD ADMIN FIN CORP TXBL REV BD DTD 03/08/2016 2.163% 07/01/2019 100,000.00 2.39 279,056.00 280,003.41 2,186.68 280,000.00 280,004.00Security Type Sub-Total Federal Agency Collateralized Mortgage Obligation AA+ Aaa 6/9/2016 6/30/2016 2,673.19 3.94 2,652.75 2,629.961.05FNMA SERIES 2016-M9 ASQ2 DTD 06/01/2016 1.785% 06/01/2019 34,475.25 2.42 98,719.75 99,395.68 262.67 98,488.54 99,559.23Security Type Sub-Total Federal Agency Bond / Note AA+ Aaa 2/24/2017 2/28/2017 89,942.40 123.75 89,972.91 88,460.821.52FNMA NOTES DTD 02/28/2017 1.500% 02/28/2020 65,000.00 1.83 250,331.44 254,749.90 611.88 255,000.00 254,606.45Security Type Sub-Total Corporate Note PFM Asset Management LLC Page 48 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Corporate Note A+A2 2/18/2016 2/23/2016 49,990.00 92.08 49,998.69 49,811.151.71AMERICAN HONDA FINANCE CORP NOTES DTD 02/23/2016 1.700% 02/22/2019 40,000.00 PFM Asset Management LLC Page 49 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Corporate Note A A2 10/23/2017 10/30/2017 24,980.50 188.75 24,989.48 24,755.201.84HONEYWELL INTERNATIONAL CORP NOTES DTD 10/30/2017 1.800% 10/30/2019 90,000.00 PFM Asset Management LLC Page 50 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Corporate Note A A3 9/5/2017 9/7/2017 64,945.40 90.19 64,964.83 63,424.011.88CATERPILLAR FINL SERVICE NOTE DTD 09/07/2017 1.850% 09/04/2020 35,000.00 PFM Asset Management LLC Page 51 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Corporate Note A A2 5/17/2018 5/22/2018 59,998.20 698.75 59,998.42 60,007.443.25CHARLES SCHWAB CORP NOTES DTD 05/22/2018 3.250% 05/21/2021 60,000.00 2.14 2,938,662.84 2,967,326.83 15,835.48 2,970,000.00 2,968,440.40Security Type Sub-Total Asset-Backed Security / Collateralized Mortgage Obligation AAA Aaa 8/15/2016 8/23/2016 36,446.27 15.27 36,450.05 36,236.141.17HONDA ABS 2016-3 A3 DTD 08/23/2016 1.160% 06/18/2019 36,451.33 PFM Asset Management LLC Page 52 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Asset-Backed Security / Collateralized Mortgage Obligation NR Aaa 1/25/2017 1/31/2017 7,144.30 4.89 7,144.31 7,139.811.60CARMAX ABS 2017-1 A2 DTD 01/31/2017 1.540% 02/15/2020 50,000.00 PFM Asset Management LLC Page 53 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Asset-Backed Security / Collateralized Mortgage Obligation NR Aaa 3/21/2017 3/29/2017 69,991.75 55.38 69,994.59 69,475.531.79ALLY ABS 2017-2 A3 DTD 03/29/2017 1.780% 08/15/2021 25,000.00 PFM Asset Management LLC Page 54 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Portfolio Holdings Managed Account Detail of Securities Held Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP ParDated Date/Coupon/Maturity Asset-Backed Security / Collateralized Mortgage Obligation AAA NR 5/16/2018 5/23/2018 59,987.11 83.20 59,988.01 59,912.183.24CNH 2018-A A3 DTD 05/23/2018 3.120% 07/15/2023 55,000.00 2.05 1,533,799.60 1,547,129.83 2,017.81 1,547,251.95 1,547,069.64Security Type Sub-Total 9,250,590.19 9,270,740.49 33,484.80 9,253,341.16 9,145,058.53 2.04 Managed Account Sub Total $33,484.80 $9,253,341.16 $9,145,058.53 Securities Sub-Total Accrued Interest $33,484.80 Total Investments $9,178,543.33 2.04%$9,270,740.49 $9,250,590.19 Bolded items are forward settling trades. PFM Asset Management LLC Page 55 of 62 Tab III PFM Asset Management LLC Page 56 of 62 For the Quarter Ended September 30, 2018VILLAGE OF NORTH PALM BEACH Asset AllocationSecurity TypeAmortized Cost(Includes Interest)Allocation PercentagePermitted by Policy In ComplianceFlorida Prime (SBA)695,009.42 4.53%25%YESUnited States Treasury Securities3,330,494.63 21.70%100%YESFederal Agency255,361.78 1.66%75%YESSupranationals786,811.16 5.13%25%YESCorporate Notes2,983,162.31 19.44%50%YESMunicipals282,190.09 1.84%25%YESAgency Mortgage-Backed Securities (MBS)99,664.92 0.65%25%YESAsset-Backed Securities1,549,147.64 10.10%25%YESCertificates of Deposit and Savings Accounts4,301,327.42 28.03%50%YESDemand Deposit Bank Account- 0.00%100%YESCommercial Paper- 0.00%50%YESMoney Market Funds- 0.00%50%YESIntergovernmental Pools1,061,451.87 6.92%50%YESEnd of month trade-date amortized cost of portfolio holdings, including accrued interest. A balance of 12,026,601.81 in the Florida Education Investment Trust Fund was excluded from calculation as it is a part of the Country Club Clubhouse bank loan and not governed by the investment policy.0.6%10.1%19.4%1.7%1.8%21.7%4.5%28.0%6.9%5.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Agency Mortgage-Backed Securities (MBS)Asset-Backed SecuritiesCorporate NotesFederal AgencyMunicipalsUnited States Treasury SecuritiesFlorida Prime (SBA)Certificates of Deposit and Savings AccountsIntergovernmental PoolsSupranationals© 2018 PFM Asset Management LLCPage 57 of 62 For the Quarter Ended September 30, 2018VILLAGE OF NORTH PALM BEACHAsset AllocationSectorIndividual Issuer BreakdownAmortized Cost(Includes Interest)Allocation PercentagePermitted by Policy In ComplianceUs Tsy Bond/NoteUNITED STATES TREASURY3,330,494.63 21.70% 100%YESSupranatlAFRICAN DEVELOPMENT BANK234,999.01 1.53% 10%YESSupranatlASIAN DEVELOPMENT BANK90,332.12 0.59% 10%YESSupranatl INTER-AMERICAN DEVELOPMENT BANK146,000.03 0.95% 10%YESSupranatl INTL BANK OF RECONSTRUCTION AND DEV225,390.24 1.47% 10%YESSupranatl INTERNATIONAL FINANCE CORPORATION90,089.76 0.59% 10%YESMuni Bond/Note FLORIDA ST HURRICAN CAT FUND180,973.35 1.18% 5%YESMuni Bond/Note CALIFORNIA ST101,216.74 0.66% 5%YESMbs / Cmo FANNIE MAE2,656.69 0.02% 25%YESMbs / Cmo FHLMC MULTIFAMILY STRUCTURED P34,386.48 0.22% 25%YESMbs / Cmo FANNIEMAE-ACES62,621.75 0.41% 25%YESIntergovernmental Pools FEITF1,061,451.87 6.92% 50%YESFlorida Prime (SBA) FLORIDA PRIME (SBA)695,009.42 4.53% 25%YESFed Agy Bond/Note FANNIE MAE155,559.72 1.01% 40%YESFed Agy Bond/Note FEDERAL HOME LOAN BANKS99,802.06 0.65% 40%YESCorporate Note WAL-MART STORES INC105,861.44 0.69% 5%YESCorporate NoteAPPLE INC55,354.90 0.36% 5%YESCorporate Note MICROSOFT CORP90,155.36 0.59% 5%YESCorporate Note TOYOTA MOTOR CREDIT CORP65,562.03 0.43% 5%YESCorporate Note GENERAL DYNAMICS CORP55,458.32 0.36% 5%YESCorporate NoteAMERICAN HONDA FINANCE100,209.47 0.65% 5%YESCorporate NoteCATERPILLAR FINANCIAL SERVICES CORP90,088.69 0.59% 5%YESCorporate NoteAMERICAN EXPRESS CREDIT CORP30,201.06 0.20% 5%YESCorporate Note BRANCH BANKING & TRUST45,266.14 0.29% 5%YESCorporate Note BANK OF AMERICA CORP60,698.40 0.40% 5%YESCorporate Note JOHN DEERE CAPITAL CORP85,109.21 0.55% 5%YESCorporate Note GOLDMAN SACHS GROUP INC35,127.22 0.23% 5%YESCorporate Note JP MORGAN CHASE & CO73,904.06 0.48% 5%YESCorporate Note NATIONAL RURAL UTIL COOP40,015.82 0.26% 5%YESCorporate Note PACCAR FINANCIAL CORP75,291.86 0.49% 5%YESCorporate Note HONEYWELL INTERNATIONAL25,178.23 0.16% 5%YESCorporate Note PFIZER INC55,037.36 0.36% 5%YESCorporate NoteAMERICAN EXPRESS CREDIT55,067.02 0.36% 5%YESCorporate Note WALT DISNEY COMPANY/THE90,463.55 0.59% 5%YESCorporate Note HERSHEY COMPANY45,487.24 0.30% 5%YESCorporate Note HOME DEPOT INC45,246.40 0.29% 5%YESCorporate Note INTEL CORP90,629.15 0.59% 5%YESCorporate Note CHARLES SCHWAB CORP60,697.17 0.40% 5%YESCorporate Note 3M COMPANY24,984.97 0.16% 5%YESCorporate Note UNITED PARCEL SERVICE55,499.46 0.36% 5%YESCorporate Note VISA INC50,690.63 0.33% 5%YES© 2018 PFM Asset Management LLCPage 58 of 62 For the Quarter Ended September 30, 2018VILLAGE OF NORTH PALM BEACHAsset AllocationSectorIndividual Issuer BreakdownAmortized Cost(Includes Interest)Allocation PercentagePermitted by Policy In ComplianceCorporate NoteCHEVRON CORP105,614.64 0.69% 5%YESCorporate NoteWESTPAC BANKING CORP140,884.64 0.92% 5%YESCorporate NoteBANK OF NOVA SCOTIA HOUS150,840.99 0.98% 5%YESCorporate NoteTOTAL CAPITAL SA75,634.58 0.49% 5%YESCorporate Note BANK OF MONTREAL CHI100,278.75 0.65% 5%YESCorporate Note ROYAL BANK OF CANADA NY100,226.99 0.65% 5%YESCorporate Note BP CAPITAL MARKETS PLC90,638.21 0.59% 5%YESCorporate Note CANADIAN IMPERIAL BANK OF COMMERCE100,105.52 0.65% 5%YESCorporate Note GLAXOSMITHKLINE CAPITAL35,330.99 0.23% 5%YESCorporate Note HSBC BANK USA NA100,396.34 0.65% 5%YESCorporate Note TORONTO DOMINION BANK155,099.95 1.01% 5%YESCorporate Note WELLS FARGO BANK NA151,157.88 0.99% 5%YESCorporate Note JOHNSON & JOHNSON20,137.70 0.13% 5%YESCorporate Note MORGAN STANLEY49,529.97 0.32% 5%YESCD / Savings Account WELLS FARGO2,731,339.10 17.80% 100%YESCD / Savings Account BANKUNITED1,046,494.39 6.82% 100%YESCD / Savings Account FLAGLER BANK523,493.93 3.41% 100%YESAsset-BackedHONDA AUTO RECEIVABLES36,465.32 0.24% 5%YESAsset-BackedALLY AUTO RECEIVABLES TRUST98,730.68 0.64% 5%YESAsset-BackedCARMAX AUTO OWNER TRUST75,523.92 0.49% 5%YESAsset-BackedFORD CREDIT AUTO OWNER TRUST60,044.39 0.39% 5%YESAsset-BackedJOHN DEERE OWNER TRUST72,093.00 0.47% 5%YESAsset-BackedNISSAN AUTO RECEIVABLES38,179.94 0.25% 5%YESAsset-BackedTOYOTA AUTO RECEIVABLES28,785.91 0.19% 5%YESAsset-BackedAMERICAN EXPRESS CREDIT ACCOUN100,064.92 0.65% 5%YESAsset-BackedCNH EQUIPMENT TRUST178,772.21 1.17% 5%YESAsset-BackedCITIBANK CREDIT CARD ISSUANCE200,836.76 1.31% 5%YESAsset-BackedFORD CREDIT AUTO LEASE TRUST25,020.06 0.16% 5%YESAsset-BackedGM FINANCIAL AUTO LEASING TRUST20,007.26 0.13% 5%YESAsset-BackedHONDA AUTO RECEIVABLES OWNER T74,989.96 0.49% 5%YESAsset-BackedHYUNDAI AUTO RECEIVABLES TRUST109,248.82 0.71% 5%YESAsset-BackedNISSAN AUTO RECEIVABLES OWNER50,035.20 0.33% 5%YESAsset-BackedTOYOTA AUTO RECEIVABLES OWNER105,075.75 0.68% 5%YESAsset-BackedBANK OF AMERICA CREDIT CARD TR65,042.87 0.42% 5%YESAsset-BackedCAPITAL ONE MULTI-ASSET EXECUT70,057.41 0.46% 5%YESAsset-BackedGM FINANCIAL SECURITIZED TERM35,036.23 0.23% 5%YESAsset-BackedMERCEDES-BENZ AUTO RECEIVABLES50,065.49 0.33% 5%YESAsset-BackedWORLD OMNI AUTO RECEIVABLES TR55,071.54 0.36% 5%YESEnd of month trade-date amortized cost of portfolio holdings, including accrued interest. A balance of 12,026,601.81 in the Florida Education Investment Trust Fund was excluded from calculation as it is a part of the Country Club Clubhouse bank loan and not governed by the investment policy.© 2018 PFM Asset Management LLCPage 59 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Appendix IMPORTANT DISCLOSURES 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. Dime Ã Market values that include accrued interest 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. Ã In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded. Ã Performance is presented in accordance with the CFA Institute ’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns. Ã Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets. Ã Money market fund/cash balances are included in performance and duration computations. Ã Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings. Ã Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity. Ã MBS maturities are represented by expected average life. PFM Asset Management LLC Page 60 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Appendix GLOSSARY Ã ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made. Ã AGENCIES: Federal agency securities and/or Government-sponsored enterprises. Ã 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 straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis. Ã BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer. Ã COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory. Ã CONTRIBUTION TO DURATION: Represents each sector or maturity range ’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate sensitivity of the portfolio. Ã DURATION TO WORST: A measure of the sensitivity of a security ’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put date, whichever results in the highest yield to the investor. Ã EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years. Ã EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while ominal yield does not. Ã FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount. Ã INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage. Ã MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date. Ã MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. Ã NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets. Ã PAR VALUE: The nominal dollar face amount of a security. PFM Asset Management LLC Page 61 of 62 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended September 30, 2018 Appendix GLOSSARY Ã PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security. Ã REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. Ã SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day. Ã TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place. Ã UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place. Ã U.S. TREASURY: The department of the U.S. government that issues Treasury securities. Ã YIELD: 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. Ã 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. Ã 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. PFM Asset Management LLC Page 62 of 62