09-30-2011 VNPB Investment Performance ReviewInvestment Advisors
Steven Alexander, CTP, CGFO, Managing Director
Mel Hamilton, Senior Managing Consultant
David Jang, CTP, Senior Managing Consultant
Gregg Manjerovic, CFA, Portfolio Manager
Rebecca Dole, CTP, Consultant
Village of North Palm Beach
Investment Performance Review
Quarter Ended September 30, 2011
RL l 4
North Pala ea
Unid. awl
t
PFM Asset Management LLC
300 S. Orange Avenue, Suite 1170
Orlando, FL 32801
(407) 648 -2208
(407) 648 -1323 fax
One Keystone Plaza, Suite 300
North Front & Market Streets
Harrisburg, PA 17101 -2044
717 - 232 -2723
717 - 233 -6073 fax
Village of North Palm Beach Investment Report - Quarter Ended September 30, 2011
Table of Contents
Tab I.
Section A Market Review
Tab II.
Section A Quarterly Summary Report
Section B Investment Portfolio & Performance
Section C Asset Allocation Chart as of September 30, 2011
Tab III. September 30, 2011 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 Investment Report — Quarter Ended September 30, 2011
Intermediate -term and long -term interest rates fell sharply for the
second consecutive quarter, in many cases to new all -time lows, as
market participants digested a myriad of events, including:
• Renewed slowdown in U.S. and global economies,
• Heightened concern over European sovereign and bank debt,
• Budget and debt ceiling wrangling in Washington,
• S &P's downgrade of the U.S. government's credit rating, and
• Bold new Federal Reserve initiatives.
These factors conspired to cause a collapse in consumer and business
confidence, a sharp sell -off in equity markets around the globe, and a
continued "flight -to- quality" into U.S. Treasuries. U. S. monetary
policy initiatives also contributed to declining interest rates, as the
Federal Reserve promised to keep short-term rates low for at least the
next two years and announced a new program to purchase long -term
debt. As a result, longer -term fixed - income portfolios posted their
largest quarterly returns in nearly three years, while shorter -term
portfolios remained hostage to near zero rate levels. High quality U.S.
fixed- income investments continued to be one of the strongest
performing asset classes during the third quarter.
The Economy: Recap of a Historic Quarter
At the beginning of the quarter, European debt concerns continued to
serve as a shadowy backdrop to a sputtering U.S. recovery. In the face
of stubbornly high unemployment, a battered housing market and
plunging consumer confidence, GDP growth in the U.S. averaged only
0.8% in the first half of the year. Throughout the quarter, economists,
including those at the Federal Reserve, progressively lowered their
GDP projections for the balance of the year. At the same time,
Washington grappled with the debt ceiling and a possible default.
Capitol Hill was in need of an eleventh hour agreement to give the
Treasury the authority to issue additional debt to pay the government's
bills. On August 2"d, one day before the Treasury's drop dead date,
Congress finally agreed on a stopgap policy, which included upwards
of $2.4 trillion in spending cuts over the next decade and an increase in
the statutory debt limit by at least $2.1 trillion. Default was averted,
but much of the hard work of hammering out the details was pushed
off to a bipartisan "Super Committee." The process revealed the worst
of the U.S. government's political gridlock and gamesmanship.
As it had previously warned, on August 8th Standard and Poor's (S &P)
cut the long -term sovereign debt rating of the United States from AAA
to AA +. S &P characterized the budget deal as insufficient to stabilize
the government's debt over the long term and noted that "the political
brinksmanship of recent months highlights what we see as America's
governance and policymaking becoming less stable, less effective, and
less predictable." The rating downgrade also affected U.S. Federal
Agencies, FDIC - backed debt, thousands of municipal bonds, and
many funds that invest in Treasuries and Agencies. Even after the
downgrade, investors continued to flock to the safety of U.S.
Treasuries, further driving down yields and pushing prices upward.
At the August 9t11 meeting of the Federal Open Market Committee
(FOMC), the Fed stated that weak economic conditions were "likely to
warrant exceptionally low levels for the federal funds rate at least
through mid - 2013." This marked the first time in history that the Fed
had placed an explicit timetable on its monetary policy. Increased
certainty that short-term rates are likely to remain low for two years
drove rates lower still.
Then, at an extended two -day September meeting, the Fed announced
"Operation Twist," yet another initiative designed to boost economic
recovery. The FOMC said it would extend the average maturity of its
security holdings to "put downward pressure on longer -term interest
rates and help make broader financial conditions more
accommodative." The Committee intends to purchase, by the end of
June 2012, $400 billion of Treasury securities with remaining
maturities of 6 to 30 years and to sell an equal amount of Treasury
securities with remaining maturities of 3 years or less. The market
initially responded by pushing long -term rates down and shorter -term
rates up, although the rise in short-term rates was limited by the Fed's
near -zero rate policy.
PFM Asset Management LLC Section A - 1
Village of North Palm Beach Investment Report — Quarter Ended September 30, 2011
Interest Rates and Returns
Treasury yields continued their descent over the quarter, with yields of
longer -term maturities falling the most, as shown in the following
table.
U.S. Treasury Yields — Quarter and Year - over -Year Chan
11 0.02% 0.10% 0.24% 0.95% 1.92% 2.91%
30- Jun -11
0.01%
0.18%
0.46%
1.76%
3.16%
4.37%
Change over Quarter
0.01%
-0.08%
-0.22%
-0.81%
-1.24%
-1.46%
30-Sep-10
0.15%
0.25%
0.42%
1.26%
2.51%
3.69%
Change over Year
-0.13%
- . o
-0.18%
-0. o
-0.59%
-0.78%
Source data: Bloomberg
Because yields on maturities less than one year are in large part
dictated by the federal funds target rate, short-term yields continue to
be anchored near all- time -low levels. In fact, given very strong
demand for high quality short-term investments, it has become
commonplace for ultra -short Treasury bills to trade at zero or negative
yields.
The continued decline in interest rates through the quarter is illustrated
in the chart below.
2 -Year, 5 -Year, and 10 -Year U.S. Treasury Note Yields
September 30, 2010 through September 30, 2011
4.0%
3.0%
2.0%
1.0%
0.0%
Sep 10
Source data: Bloomberg
10 -Year TSY
5 -Year TSY
ir
2 -Year TSY
Dec 10 Mar 11 Jun 11
Sep 11
The announcement of "Operation Twist" contributed to a significant
flattening of the yield curve. As shown in the chart below, the
steepness of the yield curve, measured by the spread between 2- and
10 -year U.S. Treasury notes, flattened significantly. Note that the
steepness of the yield curve through time is mostly a function of short-
term rates, especially during periods of strong Fed accommodation.
The most recent move, however, was more unusual, being driven by
sharply lower long -term yields.
U.S. Treasury Yields and Yield Curve Steepness
September 30, 2001 through September 30, 2011
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
Sep 01
Sep 03 Sep 05 Sep 07 Sep 09
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
Sep 11
a Spread (Right Axis) 2 -Year TSY 10 -Year TSY
Source data: Bloomberg
Since intermediate- and long -term interest rates fell more than short-
term rates, longer- duration strategies outperformed shorter - duration
strategies for the quarter ended September 30, 2011, as seen on the
chart on the following page. As was the case last quarter, longer was
better by a wide margin.
PFM Asset Management LLC Section A - 2
Village of North Palm Beach Investment Report — Quarter Ended September 30, 2011
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Total Returns of Merrill Lynch U.S. Treasury Indices
Periods ended September 30, 2011
3mo 1 -3yr 1 -5yr 3 -5yr 1 -10yr
■ Quarter ■ 1 Year
Source data: Bank ofAmerica Merrill Lynch; Bloomberg
U.S. Treasuries, in particular, had a very strong quarter, outperforming
similar maturity federal agency and high- quality corporate securities.
The outperformance of Treasuries was due to the significant decrease
in Treasury yields across the curve — a result of the continuing flight -
to- quality — while weaker economic data and troubles in Europe
pressured yield spreads wider on other sectors.
As shown on the next chart, the risk aversion trade during the quarter
punished riskier asset classes, as the return on Treasuries surpassed
that of federal agencies and, in general, low risk fixed - income
investments outpaced equities and alternative investment classes,
which fell sharply during the quarter. As is usually the case during
periods of uncertainty, yield spreads widened, risk premiums rose, and
equity multiples fell. In such volatile market conditions,
diversification remains an important principle of prudent portfolio
management.
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
-25.0%
Total Returns of Various Asset Classes
Quarter ended September 30, 2011
1 -5 Year 1 -5 Year 1 -5 Year Barclays S &P Index MSCI
Treasury Federal A -AAA Euro- (Domestic EAFE -net
Index Agency Corporate Aggregate Equity) (International
Index Index Bond Equity)
Index
Source data: Bank ofAmerica Merrill Lynch; Barclays Capital; Bloomberg
For an additional comparison of the disparity in returns along the risk
spectrum, 1 -5 year AAA -rated corporate securities outperformed 1 -5
year A -rated corporate securities by 206 basis points (2.06 %), for the
quarter, 1.28% versus - 0.78 %.
Worldwide concern over bank exposure to European debt also took its
toll on corporate sector returns, as 1 -5 year industrials outperformed
financials by 192 basis points (1.92 %), 0.34% versus -1.58% for the
quarter.
Economic and Market Outlook
Although the U. S. economy has posted eight straight quarters of
positive GDP growth, recent growth has been anemic. With
uncertainty regarding future fiscal policy, both here and abroad,
economists expect the lackluster GDP trend to remain at sub -3%
growth levels for the foreseeable future.
PFM Asset Management LLC Section A - 3
Village of North Palm Beach Investment Report — Quarter Ended September 30, 2011
The European sovereign debt and bank crisis was a significant
storyline throughout the quarter and a continuing major headwind to
the U.S. recovery. The sovereign debt woes of Greece have spread to
other EU nations, including Spain, Italy, and Portugal. In June, in an
attempt to quiet those fears, a series of new austerity measures was
passed by the Greek parliament. In July, euro -zone members agreed to
a,6440 billion European Financial Stability Facility (ESFS) to address
the growing crisis; however, as of quarter end, that measure was still
being held up by Slovakia lawmakers. Getting 17 countries to agree
on any proposal will be an ongoing challenge.
Until the European debt crisis is resolved, equity markets are expected
to remain volatile. Volatility, as measured by the VIX index, rose to a
2' /z year high during the third quarter. Amid the heightened volatility,
the S &P 500 Index had shown signs of strength through the first two
quarters of 2011, only to have those returns dissipate over the last
three months.
In light of European debt issues, the dollar experienced a healthy rally
relative to the euro — increasing over 8% for the quarter. Similarly, or
perhaps in parallel, gold also rose 8 %. However, commodity prices in
general fell sharply over the quarter with oil leading the way, down
17 %, as global demand slowed.
Although the economy added nearly 100,000 jobs per month in the
past two quarters, the unemployment rate remains stuck above 9 %.
Current job creation is simply insufficient to have significant positive
impact on the unemployment rate.
On the housing front, the story remains unchanged. Despite the
biggest drop in home prices in over two years and mortgage rates at
all -time lows, home sales have been disappointing. Credit remains
tight while consumers are focused on relieving their own personal debt
concerns. With winter around the corner, prospects remain dim.
Personal consumption increased modestly, led by stronger auto sales,
but the ISM manufacturing index still experienced a sharp decline.
Consumer confidence plunged during the quarter as economic
conditions weakened, equity markets fell, and jobs remain scarce.
Despite these obstacles, the Fed continues to express resolve and
remains prepared to consider "the range of policy tools available to
promote a stronger economic recovery in a context of price stability."
Investment Strategy
The Federal Reserve's commitment to maintain the federal funds
target rate at its current range until at least mid -2013 has essentially
removed much of the uncertainty regarding potential short- to
intermediate -term interest rate spikes in the near future. Because the
Fed is on hold, maturity extensions can safely add value to portfolios.
The benefits of "roll- down" can be viewed as a valuable contributor to
fixed- income portfolio performance.
Short- maturity U.S. Treasury and federal agency yields remain at near
zero levels. Some analysts have dubbed this relationship as "return -
less risk" — the lack of total return opportunities in that portion of the
yield curve is insufficient relative to the impact of potential interest
rate fluctuations. Alternative short-term sectors, including high- quality
certificates of deposit and commercial paper, floating rate securities,
and callable agencies do have value, but each must be evaluated
carefully.
Further out the yield curve, as credit spreads have widened, federal
agency and high - quality corporate securities are attractive. Where
applicable, we will increase exposure in both, but the corporate sector
requires investors to be both thoughtful and nimble.
Still, as yields remain very low by historical measures, we will take a
cautious approach to duration management. For this reason, we will
target duration at or below benchmarks. In these unprecedented
economic and market conditions, taking on extreme duration or credit
risk is not warranted.
PFM Asset Management LLC Section A - 4
Village of North Palm Beach Investment Report - Quarter Ended September 30, 2011
Quarterly Summary Report
Total Portfolio Value' '' September 30,20111 June 30, 2011
Market Value $8,257,389.21 $8,227,936.99
Amortized Cost $8,194,212.86 $8,167,241.49
Quarter Total Return Comparison
Quarter Ended 09/30/11
i[@I@FA
0.75%
E ML 1 -3 Year U.S. Treasury Index
0.50% 410.49%
ry Investment Portfolio♦
0.36%
0.25%
0.00% 1
0.50 1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
J
Total Return Comparison Since Inception as of
Quarter Ended 09/30/11
3.50
3.00
2.50%
� ML 1 -3 Year U.S. Treasury Index
2.00% Investment Portfolio* 412.00%
1.90%
1.50%
1.00
0.50 1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
J
Quarterly Return
Annualized
Last
Last
Since Inception
Total Retum1,2,s4,aa1a•a
September 30, 2011
Quarter
12 Months
24 Months
June 30, 2009
Investment Portfolio
0.36%
1.43%
1.07%
1.74%
1.90%
Merrill Lynch 1 -3 Year U.S. Treasury Index
0.49%
1.95%
1.20%
1.87%
2.00%
Total
Current Quarter
Previous Quarter
Total
Current Quarter
Previous Quarter
Effective Duration(Years) °
September 30, 2011
June 30, 2011
Yields
September 30, 2011
June 30, 2011
Investment Portfolio
1.71
1.61
Yield at Market
0.34%
0.43%
Merrill Lynch 1 -3 Year U.S. Treasury Index
1.81
1.80
Yield at Cost
0.89%
0.93%
Portfolio Duration % of Benchmark Duration
95%
90%
Quarter Total Return Comparison
Quarter Ended 09/30/11
i[@I@FA
0.75%
E ML 1 -3 Year U.S. Treasury Index
0.50% 410.49%
ry Investment Portfolio♦
0.36%
0.25%
0.00% 1
0.50 1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
J
Total Return Comparison Since Inception as of
Quarter Ended 09/30/11
3.50
3.00
2.50%
� ML 1 -3 Year U.S. Treasury Index
2.00% Investment Portfolio* 412.00%
1.90%
1.50%
1.00
0.50 1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
J
Notes:
1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement)
2. End of quarter trade -date market values of portfolio holdings, including accrued interest.
3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance.
4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS).
5. Merrill Lynch Indices provided by Bloomberg Financial Market,
6. Quarterly returns are presented on an unannuali -c! basis.
7. Includes money market fund /cash in performance and duration computations.
8. Returns presented for 12 months or longer are presented on an annual basis.
9. Past performance is not indicative of future results.
PFM Asset Management LLC Section A - 1
Current Quarter
Previous Quarter
Fiscal Year 2011
Fiscal Year 2010
Quarterly Interest Income
September 30, 2011
June 30, 2011
Fiscal Year Interest Income
Year to Date
Year to Date
Investment Portfolio
$17,351.28
$20,124.86
Investment Portfolio
$96,644.68
$108,801.81
TD Bank Money Market Fund
1.17
11.32
TD Bank Money Market Fund
34.78
34.32
Total
$17,352.45
$20,136.18
Total
$96,679.46
$108,836.13
Current Quarter
Previous Quarter
Fiscal Year 2011
Fiscal Year 2010
Quarterly Realized Gain /Loss on Cost
September 30, 2011
June 30, 2011
Fiscal Year Realized Gain /Loss on Cost
Year to Date
Year to Date
Investment Portfolio
6,023.12
1,905.07
Investment Portfolio
$24,540.42
$21,419.26
Notes:
1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances: Includes 2 trades settling 10/5/10 for total $551,114.77 (pgs 10 &11 of Monthly Statement)
2. End of quarter trade -date market values of portfolio holdings, including accrued interest.
3. The Investment Portfolio's core balance increased due to a $1 million CD maturing on 12/18/09 and invested as part of core balance.
4. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS).
5. Merrill Lynch Indices provided by Bloomberg Financial Market,
6. Quarterly returns are presented on an unannuali -c! basis.
7. Includes money market fund /cash in performance and duration computations.
8. Returns presented for 12 months or longer are presented on an annual basis.
9. Past performance is not indicative of future results.
PFM Asset Management LLC Section A - 1
Village of North Palm Beach
Executive Summary
PORTFOLIO STRATEGY
Investment Report - Quarter Ended September 30, 2011
➢ The Village's Investment Portfolio is of high credit quality and maintains adequate liquidity. The portfolio is invested entirely in Federal Agency, U.S. Treasury, and
U.S. Government supported corporate debt securities. The securities are allocated among high quality issuers rated AA.
➢ Following the financial crisis in 2008, the investment universe bifurcated into safe assets (e.g. U.S. Treasuries and Agencies, gold, and currencies of export -based
economies) and risky assets (e.g. almost everything else). The third quarter of 2011 was clearly a "risk off" quarter, as the weakening U.S. economy and lack of a
comprehensive solution to the continuing European sovereign debt crisis weighed heavily on investors. As a result, safe assets performed well and riskier assets
lost significant ground. In broad market terms, U.S. Treasuries were one of the best asset classes, while equities and lower -grade corporates lagged.
➢ Standard and Poor's lowered the United States of America's sovereign long -term credit rating to AA+ from AAA. Consequently, the ratings of agency securities that
are backed by the U.S. Treasury also dropped to AA+ from AAA. The downgrade represents the credit rating agency's opinion that the effectiveness, stability and
predictability of policymaking and political institutions have diminished, and therefore limit the government's ability to stabilize the medium term debt dynamics,
during times of fiscal and economic challenges. The A -1+ short -term rating was affirmed. Standard and Poor's outlook on the long -term credit rating remained
negative, leaving the possibility for a further downgrade to AA, if the fiscal and economic conditions do not improve within the next two years.
➢ Although the quarter began with rates very low, longer -term Treasury yields fell further in response to weakening economic fundamentals and the Fed's aggressively
accommodative monetary policy actions. The 2 -year Treasury note, which started the third quarter at a yield of 0.45 %, hit a new all -time low of 0.15% (dating back
to 1976) during the quarter before rebounding slightly to end the quarter at 0.25 %. 5 -year Treasuries also hit an all -time low (dating to 1953) of 0.76 %. Treasuries
of 10 year maturity and longer fell the most, as the market anticipated "Operation Twist," which was officially announced in late September.
➢ On September 21st, the Federal Reserve announced its new strategy, known as "Operation Twist ", in which it will sell $400 billion of short -term treasury securities
and purchase the same amount in long -term maturities. The goal is to stimulate business investment and to allow for consumers to re- finance their mortgages at a
lower rate. The Federal Reserve hopes that this action will increase disposable income and consumption, without having to further grow its balance sheet. This
strategy is likely to result in a flatter yield curve, lowering yields on the long -end and raising yields on the short -end. The positive "roll down effect" would be reduced
as the yield curve loses its steepness. Given that the Federal Reserve will stick to its strategy, this trend is likely to continue and may allow for us to take advantage
of the yield increase going forward.
➢ Over the course of the quarter, we executed several trades, in the Investment Portfolio, to take advantage of the steepness of the yield curve. For example, early in
August, we sold treasury notes in the 1 -year maturity range and purchased treasury notes securities in the 2 -year range, in order to increase the portfolio's yield.
This strategy resulted in a 16 basis points (0.16 %) yield pick -up. Following, the Federal Reserve's commitment to keep interest rates low until mid 2013, we
extended the portfolio's duration by selling treasury securities in the 1 -year maturity range and treasury notes in the 3 -year maturity range. The portfolio realized
over $8,000 in gains on sales, as a result of active management during the quarter.
➢ At the beginning of the quarter, we targeted the Investment Portfolio's duration at 90% of the benchmark's duration and during the quarter the duration increased to
95% of the benchmark. For the third quarter, the portfolio's performance slightly underperformed the benchmark by 0.13 %. U.S. Treasuries had a very strong
quarter, outperforming similar maturity federal agency and high - quality corporate securities. The outperformance of Treasuries was due to the significant decrease in
Treasury yields across the curve — a result of the continuing flight -to- quality — while weaker economic data and troubles in Europe pressured yield spreads wider on
other sectors. The portfolio's underperformance is a result of the portfolio holding approximately 57% in U.S. Treasuries, 31% in Agencies, and 11% in corporate
(FDIC), during the quarter as compared to the benchmark which held 100% in U.S. Treasuries. With the higher percentage in treasuries the benchmark appreciated
more than the portfolio. We will continue to monitor the markets and maintain a strategy to preserve principal. With the Federal Reserve determined to keep interest
rates low until mid 2013, "Operation Twist" will likely increase short -term rates in the 1 to 5 year segment, in which we operate. Holding the duration of the portfolio
slightly short of the benchmark's duration will allow for the extension of duration to capitalize on higher yields in the event they increase. We will closely monitor the
markets to make select purchases of securities when rates move towards the upper end of their range.
➢ As always, we strive to maintain the safety of principal while at the same time positioning the Portfolio for growth and searching for tactical opportunities to enhance
return. In these changing times, our strategy will remain flexible and may change in response to changes in interest rates, economic data, market outlook or specific
opportunities that arise.
PFM Asset Management LLC Section B - 1
Village of North Palm Beach Investment Report - Quarter Ended September 30, 2011
Investment Portfolio Composition and Credit Quality Characteristics
Security Type
September 30, 2011
% of Portfolio
June 30, 2011
% of Portfolio
U.S. Treasuries
$4,741,652.00
57.4%
$5,156,878.54
62.7%
Federal Agencies
2,569,126.28
31.1%
2,148,060.23
26.1%
Commercial Paper
0.00
0.0%
0.00
0.0%
Certificates of Deposit
0.00
0.0%
0.00
0.0%
Bankers Acceptances
0.00
0.0%
0.00
0.0%
Repurchase Agreements
0.00
0.0%
0.00
0.0%
Municipal Obligations
0.00
0.0%
0.00
0.0%
Corporate Notes /Bonds
0.00
0.0%
0.00
0.0%
Corporate Notes /Bonds - FDIC Insured
907,643.30
11.0%
907,184.30
11.0%
Mortgage Backed
0.00
0.0%
0.00
0.0%
Money Market Fund /Cash
38,967.63
0.5%
15,813.92
0.2%
Totals
$8,257,389.21
100.0%
$8,227,936.99
100.0%
U.S. Treasuries
57%
Portfolio Composition
as of 09/30/11
I,- Federal Agency
Obligations
31%
Corporate
Notes /Bonds -
_FDIC Insured
11%
Money Market
Fund /Cash
0.47%
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.
Credit Quality Distribution
as of 09/30/11
PFM Asset Management LLC Section B - 2
Village of North Palm Beach Investment Report - Quarter Ended September 30, 2011
Investment Portfolio Maturity Distribution
Maturity Distribution'
September 30, 2011
June 30, 2011
Overnight (Monedy Market Fund)
$38,967.63
$15,813.92
Under 6 Months
0.00
0.00
6 - 12 Months
1,440,988.82
2,465,715.56
1 - 2 Years
3,394,318.79
2,642,097.63
2 - 3 Years
3,383,113.97
3,104,309.88
3 - 4 Years
0.00
0.00
4 - 5 Years
0.00
0.00
5 Years and Over
0.00
0.00
Totals $8,257,389.21 $8,227,936.99
Notes:
1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.
PFM Asset Management LLC Section B - 3
Village of North Palm Beach Investment Report - Quarter Ended September 30, 2011
Investment Portfolio Maturity Distribution versus the Benchmark'
25.0% -
20.0% - -- - - - - -- -----------------------------
15.0% ------------ - - - - -- ------------------
---------------------------------------------
10.0%
5.0% .-------------------------------------------------------------
0.0% 1E E, 111 1.1
:
o• 0. 0. _1 N17,11
1. 11 N", 1 . 1 • r,,,. 11) . �• �• 11). b, �• �• �•
Years to Maturity
■ Investment Portfolio OMenill Lynch' -3 YearU.S. Treasury Note Index
Notes:
1. Due to the nature of the security, Mortgage- Backed Securities are represented based on their average life maturity rather than their final maturity.
PFM Asset Management LLC Section B - 4
Village of North Palm Beach' Asset Allocation as of September 30, 2011*
Security Type
September 30, 2011
September 30, 2011
Notes Permitted by Policy
Florida Prime (SBA)
786,497.94
5.04%
2 25%
United States Treasury Securities
4,708,684.03
30.18%
100%
United States Government Agency Securities
-
0.00%
100%
Federal Instrumentalities
2, 545, 489.46
16.32%
50
Certificates of Deposit
-
0.00%
100%
Repurchase Agreements
-
0.00%
0%
Commercial Paper
-
0.00%
0%
Corporate Notes
901,071.74
5.78%
25%
Mortgage - Backed Securities
-
0.00%
0%
Bankers' Acceptances
-
0.00%
0%
Money Market Mutual Funds
1,189,799.72
7.63%
50%
Intergovernmental Investment Pool
-
0.00%
25%
Interest Bearing Checking or Savings Account
5,470,330.70
35.06%
2 100%
Village Managed
$7,407,660.61
47.48%
Notes Permitted by Policy
PFM Managed
$8,194,212.98
52.52%
33%
Total
$15,601,873.59
100.00
33%
Individual Issuer Breakdown
September 30, 2011
September 30, 2011
Notes Permitted by Policy
Government National Mortgage Association (GNMA)
-
0.00%
100%
US Export-Import Bank (Ex -Im)
-
0.00%
100%
Farmers Home Administration (FMHA)
-
0.00%
100%
Federal Financing Bank
-
0.00%
100%
Federal Housing Administration (FHA)
-
0.00%
100%
General Services Administration
-
0.00%
100%
New Communities Ad Debentures
-
0.00%
100%
US Public Housing Notes & Bonds
-
0.00%
100%
US Dept. of Housing and Urban Development
-
0.00%
100%
Federal Farm Credit Bank(FFCB)
611,343.30
3.92%
10%
Federal Home Loan Bank (FHLB)
690,987.67
4.43%
10%
Federal National Mortgage Association (FNMA)
539,005.11
3.45%
10%
Federal Home Loan Mortgage Corporation (FHLMC)
704,153.38
4.51%
10%
Student Loan Marketing Association (SLMA)
I -
0.00%
0%
1. All Assets.
2. These Accounts are managed by the Village.
*PFM managed securities are shown on Amortized Cost plus Accrued Interest basis.
Asset Allocation
as of September 30, 2011
Federal Instrumentalities
16.32%
Individual Issuer Breakdown
September 30, 2011
September 30, 2011
Notes Permitted by Policy
CD - BankA
-
0.00%
33%
CD - BankB
-
0.00%
33%
Interest Bearing Checking or Savings Account - Wells Fargo
5,470,330.70
35.06%
2 50%
Interest Bearing Checking or Savings Account - B
-
0.00%
50%
Citigroup Corporate Notes - FDIC insured
496,261.68
3.18%
33%
Bank of America Corporate Notes - FDIC insured
404,810.06
2.59%
33%
Corporate Notes C
-
0.00%
33
Corporate Notes D
-
0.00%
33%
Corporate Notes E
-
0.00%
33%
Money Market Fund - TD Bank Sweep Account
38,967.75
0.25%
33%
Money Market Fund - Wells Fargo Advantage Fund
1,150,831.97
7.38%
2 33%
PFM Asset Management LLC Section C - 1
PFM{ Customer Service
PO Box 11813
Harrisburg, PA 17108 -1813
ACCOUNT STATEMENT
Client Management Team
Mel Hamilton
Senior Managing Consultant
300 South Orange Avenue, Suite 1170
Orlando, FL 32801
407 - 648 -2208
hamiltonm @pfm.com
Steven Alexander, CTP, CGFO
Managing Director
300 South Orange Avenue, Suite 1170
Orlando, FL 32801
407 -648 -2208
alexanders @pfm.com
Gregg Manjerovic, CFA
Senior Portfolio Manager
One Keystone Plaza, Suite 300
Harrisburg, PA 17101
717 - 232 -2723
manjerovicg @pfm.com
Rebecca Dole, CTP
Consultant
300 South Orange Street, Suite 1170
Orlando, FL 32801
407 - 648 -2208
doter @pfm.com
Contents
Cover /Disclosures
Summary Statement
Individual Accounts
Accounts included in Statement
NORTH PALM BEACH INVESTMENT PORTFOLIO
VILLAGE OF NORTH PALM BEACH
SAMIA JANJUA
501 US HIGHWAY 1
NORTH PALM BEACH, FL 33408
T{ Online Access www.pfm.com Customer Service 1- 717 - 232 -2723
Important Disclosures
This statement is for general information purposes only and is not
intended to provide specific advice or recommendations. PFM Asset
Management LLC ( "PFM ") is an investment advisor registered with the
Securities and Exchange Commission, and is required to maintain a
written disclosure statement of our background and business experience.
If you would like to receive a copy of our current disclosure statement,
please contact Service Operations at the address below.
Proxy Voting PFM does not normally receive proxies to vote on behalf of
its clients. However, it does on occasion receive consent requests. In the
event a consent request is received the portfolio manager contacts the
client and then proceeds according to their instructions. PFM's Proxy
Voting Policy is available upon request by contacting Service Operations
at the address below.
Questions About an Account PFM's monthly statement is intended to
detail our investment advisory activity as well as the activity of any
accounts held by clients in pools that are managed by PFM. The custodian
bank maintains the control of assets and executes (i.e., settles) all
investment transactions. The custodian statement is the official record of
security and cash holdings and transactions. PFM recognizes that clients
may use these reports to facilitate record keeping; therefore the custodian
bank statement and the PFM statement should be reconciled and
differences resolved. Many custodians use a settlement date basis which
may result in the need to reconcile due to a timing difference.
Account Control PFM does not have the authority to withdraw funds from
or deposit funds to the custodian. Our clients retain responsibility for their
internal accounting policies; implementing and enforcing internal controls
and generating ledger entries or otherwise recording transactions.
Market Value Generally, PFM's market prices are derived from closing bid
prices as of the last business day of the month as supplied by Interactive
Data, Bloomberg or Telerate. Where prices are not available from
generally recognized sources the securities are priced using a yield -based
matrix system to arrive at an estimated market value. Prices that fall
between data points are interpolated. Non - negotiable FDIC - insured bank
certificates of deposit are priced at par. Although PFM believes the prices
to be reliable, the values of the securities do not always represent the
prices at which the securities could have been bought or sold. Explanation
of the valuation methods for money market and TERM funds is contained
in the appropriate fund information statement.
Amortized Cost The original cost of the principal of the security is
adjusted for the amount of the periodic reduction of any discount or
premium from the purchase date until the date of the report. Discount or
premium with respect to short term securities (those with less than one
year to maturity at time of issuance) is amortized on a straightline basis.
Such discount or premium with respect to longer term securities is
amortized using the constant yield basis.
Important Disclosures
Tax Reporting Cost data and realized gains / losses are provided for
informational purposes only. Please review for accuracy and consult your
tax advisor to determine the tax consequences of your security transactions.
PFM does not report such information to the IRS or other taxing authorities
and is not responsible for the accuracy of such information that may be
required to be reported to federal, state or other taxing authorities.
Financial Situation In order to better serve you, PFM should be promptly
notified of any material change in your investment objective or financial
situation.
Callable Securities Securities subject to redemption prior to maturity may
be redeemed in whole or in part before maturity, which could affect the yield
represented.
Portfolio The securities in this portfolio, including shares of mutual funds,
are not guaranteed or otherwise protected by PFM, the FDIC (except for
certain non - negotiable certificates of deposit) or any government agency.
Investment in securities involves risks, including the possible loss of the
amount invested.
Rating Information provided for ratings is based upon a good faith inquiry of
selected sources, but its accuracy and completeness cannot be guaranteed.
Shares of some money market and TERM funds are marketed through
representatives of PFM's wholly owned subsidiary, PFM Fund Distributors,
Inc. PFM Fund Distributors, Inc. is registered with the SEC as a
broker /dealer and is a member of the Financial Industry Regulatory
Authority ( "FINRA ") and the Municipal Securities Rulemaking Board
( "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 September 30, 2011
Average maturity represents the average maturity of all securities and
investments of a portfolio, determined by multiplying the par or
principal value of each security or investment by its maturity (days or
years), summing the products, and dividing the sum by the total
principal value of the portfolio. The stated maturity date of mortgage
backed or callable securities are used in this statement. However the
actual maturity of these securities could vary depending on the level or
prepayments on the underlying mortgages or whether a callable
security has or is still able to be called.
Monthly distribution yield represents the net change in the value of one
share (normally $1.00 per share) resulting from all dividends declared
during the month by a fund expressed as a percentage of the value of
one share at the beginning of the month. This resulting net change is
then annualized by multiplying it by 365 and dividing it by the number of
calendar days in the month.
YTM at Cost The yield to maturity at cost is the expected rate of return,
based on the original cost, the annual interest receipts, maturity value
and the time period from purchase date to maturity, stated as a
percentage.
YTM at Market The yield to maturity at market is the rate of return,
based on the current market value, the annual interest receipts,
maturity value and the time period from purchase date to maturity,
stated as a percentage.
Managed Account 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
1 1
11111=PFM
Interest /Coupons Received
Less Purchased Interest Related to Interest /Coupons
Plus Net Realized Gains /Losses
7,215.78 Closing Cash Balance
(244.57)
5,420.00
Total Cash Basis Earnings $12,391.21
Ending Amortized Value of Securities
Managed Account Summary Statement
For the Month Ending September 30, 2011
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Transaction Summary - Managed Account
Cash
677,381.61
Opening Market Value
$8,212,374.97
Transactions Summary - Managed
Maturities /Calls
Account
0.00
Maturities /Calls
0.00
Sale Proceeds
677,381.61
Principal Dispositions
(676,344.11)
Coupon /Interest Income
6,178.28
Principal Acquisitions
671'887'89
Principal Payments
0.00
Unsettled Trades
0.00
Security Purchases
(672,132.46)
Change in Current Value
(15,684.84)
Net Cash Contribution
0.00
Reconciling Transactions
0.00
Closing Market Value
$8,192,233.91
Interest /Coupons Received
Less Purchased Interest Related to Interest /Coupons
Plus Net Realized Gains /Losses
7,215.78 Closing Cash Balance
(244.57)
5,420.00
Total Cash Basis Earnings $12,391.21
Ending Amortized Value of Securities
8,129,057.56
Ending Accrued Interest
26,187.67
Plus Proceeds from Sales
677,381.61
Plus Proceeds of Maturities /Calls /Principal Payments
0.00
Plus Coupons Received
6,178.28
Less Cost of New Purchases
(672,132.46)
Less Beginning Amortized Value of Securities
(8,129,286.02)
Less Beginning Accrued Interest
(25,484.07)
Total Accrual Basis Earnings $11,902.57
$38,967.63
f Account 61350001 Page i
PFM Asset Management LLC
Portfolio Summary and Statistics
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Description
Par Value
Market Value
Percent
U.S. Treasury Bond/ Note
4,690,000.00
4,732,474.71
57.77
U.S. Government Supported Corporate
890,000.00
899,752.50
10.98
Debt
Federal Agency Bond / Note
2,520,000.00
2,560,006.70
31.25
Managed Account Sub -Total
8,100,000.00
8,192,233.91
100.00%
Accrued Interest
26,187.67
Total Portfolio
8,100,000.00
8,218,421.58
Unsettled Trades
0.00
0.00
Maturity Distribution
41.35% 41.16%
I
I
17.49%
i
I
' i I
I
0.00% 0.00% 0.00% 0.00%
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years
US TSY Bond /
57.77%
For the Month Ending September 30, 2011
Fed Agy Bond /
Note
31.25%
JS Govt Supported
Corp Debt
10.98%
Characteristics
Yield to Maturity at Cost 0.89%
Yield to Maturity at Market 0.34%
Duration to Worst 1.73
Weighted Average Days to Maturity 640
PFM' Account 61350001 Page 2
PFM Asset Management LLC
PFM'
Managed Account Issuer Summary
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Issuer Summary
Market Value
Issuer
of Holdings
Percent
BANK OF AMERICA CORP TLGP
404,338.00
4.94
CITIGROUP INC
495,414.50
6.05
FANNIE MAE
545,432.94
6.66
FEDERAL FARM CREDIT BANKS
607,970.78
7.42
FEDERAL HOME LOAN BANKS
699,720.58
8.54
FREDDIE MAC
706,882.40
8.63
UNITED STATES TREASURY
4,732,474.71
57.76
Total
PFM Asset Management LLC:
$8,192,233.91 100.000/0
AA+
100.00%
For the Month Ending September 30, 2011
Account 61350001 Page 3
P ,,
Managed Account Detail of Securities Held For the Month Ending September 30, 2011
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description
S &P
Moody's
Trade
Settle
Original
YTM
Accrued
Amortized
Market
Dated Date /Coupon /Maturity
U.S. Treasury Bond / Note
CUSIP
Par
Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
US TREASURY NOTES
470,000.00
AA+
Aaa
09/22/11
09/23/11
468,880.08
0.33
51.65
468,888.31
467,687.60
DTD 09/15/20110.250% 09/15/2014
Security Type Sub -Total 4,690,000.00 4,698,087.90 0.74 9,177.29 4,699,506.74 4,732,474.71
Supported U.S. Government ..
Account 61350001 Page 4
PFM Asset Management LLC
Managed Account Detail of Securities Held For the Month Ending September 30, 2011
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
Government .. . Corporate Debt
BANK OF AMERICA CORP (FDIC) GLOBAL
490,000.00 AA+ Aaa 01/06/10 01107110 497,541.10 1.45 4,367.47 491,894.21 495,414.50
DTD 01/30/2009 2.125% 04/30/2012
Security Type Sub -Total
Federal Agency :. Note
890,000.00
902,712.30
1.49
7,890.80
893,180.94
899,752.50
MAC GLOBAL NOTES
3134G2WG3
400,000.00
AA+
Aaa
08/30111
08/31/11
402,096.00
0.58
75.00
402,037.88
401,111.60
DTD 08/05/20110.750% 09/22/2014
Security Type Sub -Total 2,520,000.00 2,537,695.34 0.97 9,119.58 2,536,369.88 2,560,006.70
Managed Account Sub -Total 8,100,000.00 8,138,495.54 0.89 26,187.67 8,129,057.56 8,192,233.91
PYN1 Account 61350001 Page 5
WF PFM Asset Management LLC
Ai '�.
...r. P
Managed Account Detail of Securities Held
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
For the Month Ending September 30, 2011
Securities Sub -Total $8,100,000.00 $8,138,495.54 0.89% $26,187.67 $8,129,057.56 $8,192,233.91
Accrued Interest
$26,187.67
Total Investments
Pfw
PFM Asset Management LLC
$8,218,421.58
Account 61350001 Page 6
US TREASURY NOTES
DTD 08/15/2009 1.750% 08/15/2012
US TREASURY NOTES
DTD 12/15/2009 1.125% 12/15/2012
US TREASURY NOTES
DTD 01/31/20110.625% 01/31/2013
US TREASURY NOTES
DTD 02/15/2010 1.375% 02/15/2013
US TREASURY NOTES
DTD 03/15/2010 1.375% 03/15/2013
US TREASURY NOTES
DTD 05/15/2010 1.375% 05/15/2013
US TREASURY NOTES
DTD 09/15/2010 0.750% 09/15/2013
US TREASURY NOTES
DTD 10/15/2010 0.500% 10/15/2013
US TREASURY NOTES
DTD 11/15/2010 0.500% 11/15/2013
US TREASURY NOTES
DTD 11/15/2010 0.500% 11/15/2013
US TREASURY NOTES
DTD 12/31/2008 1.500% 12/31/2013
US TREASURY NOTES
DTD 09/15/20110.250% 09/15/2014
Security Type Sub -Total
912828LH1
200,000.00
BARCLAYS
101.36
202,718.80
(289.01)
(78.55)
0.87
0.19
912828MB3
200,000.00
DEUTSCHE
101.10
202,203.20
4,781.32
3,254.96
1.20
0.21
912828PR5
730,000.00
MERRILL
100.55
733,992.37
3,621.67
3,743.53
1.33
0.21
912828MN7
490,000.00
BK AMER
101.55
497,598.92
7,043.84
7,340.64
1.36
0.24
912828MT4
100,000.00
JPMCHASE
101.64
101,641.00
2,465.22
2,048.13
1.45
0.25
912828NCO
300,000.00
BK AMER
101.78
305,331.00
4,311.47
4,768.50
1.60
0.28
912828NY2
340,000.00
MORGANST
100.89
343,041.30
1,487.39
2,006.81
1.94
0.29
912828PBO
500,000.00
JPMCHASE
100.39
501,953.00
1,718.62
1,790.87
2.03
0.31
912828PU8
400,000.00
BARCLAYS
100.38
401,531.20
4,562.45
3,709.21
2.11
0.32
912828PU8
470,000.00
NOMURA
100.38
471,799.16
5,838.22
4,679.96
2.11
0.32
912828JW1
490,000.00
CITIGRP
102.65
502,977.16
38.10
904.62
2.21
0.32
912828RG7
470,000.00
NOMURA
99.51
467,687.60
(1,192.48)
(1,200.71)
2.94
0.42
BANK OF AMERICA CORP (FDIC) GLOBAL
MTN
DTD 01/30/2009 2.100% 04/30/2012
PFM Asset Management LLC
4,690,000.00 4,732,474.71 34,386.81 32,967.97 1.84 0.29
400,000.00 BARCLAYS 101.08 404,338.00 (833.20) 3,051.27 0.58 0.24
Account 61350001 Page 7
Managed Account Fair Market Value & Analytics For the Month Ending September 30, 2011
NORTH PALM BEACH INVESTMENT PORTFOLIO;- 61350001
Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Duration YTM
Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost to Worst at Mkt
Supported U.S. Government .. D•.
CITIGROUP INC (FDIC) GLOBAL NOTE 490,000.00 RBS_SEC 101.11 495,414.50 (2,126.60) 3,520.29 0.58 0.23
DTD 01/30/2009 2.125% 04/30/2012
Security Type Sub -Total
890,000.00
899,752.50
(2,959.80)
6,571.56
0.58
0.23
Federal Agency :. Note
FFCB BONDS (FLOATING)
400,000.00
BARCLAYS
100.28
401,111.60
(984.40)
(926.28)
2.94
0.66
DTD 08/05/20110.750% 09/22/2014
Security Type Sub -Total 2,520,000.00 2,560,006.70 22,311.36 23,636.82 1.93 0.46
Managed Account Sub -Total 8,100,000.00 8,192,233.91 53,738.37 63,176.35 1.73 0.34
Securities Sub -Total
Accrued Interest
Total Investments
�1.
PFM Asset Management LLC
$8,100,000.00
$8,192,233.91 $53,738.37
26,187.67
$8,218,421.58
$63,176.35 1.73 0.34%
Account 61350001 Page 8
PF W
Managed Account Security Transactions & Interest For the Month Ending September 30, 2011
NORTH PALMBEACH INVESTMENT PORTFOLIO - 61350001 A
Transaction Type Principal Accrued Realized G/L Realized G/L Sale
Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method
09/06/11 09/07/11 US TREASURY NOTES
DTD 09/15/20110.250% 09/15/2014
Transaction Type Sub -Total
09/01/11
FANNIE MAE GLOBAL NOTES
1,056.25
DTD 08/06/2010 1.000% 09/23/2013
Transaction Type Sub -Total
09/06/11 09/07/11 FNMA GLOBAL NOTES
DTD 01/15/2010 1.750% 02/22/2013
09/22/11 09/23/11 US TREASURY NOTES
DTD 05/31/2010 0.750% 05/31/2012
09/22/11 09/23/11 US TREASURY NOTES
DTD 07/31/2010 0.625% 07/31/2012
200,000.00 (203,007.81) (218.75) (203,226.56)
470,000.00 (468,880.08) (25.82) (468,905.90)
670,000.00 (671,887.89) (244.57) (672,132.46)
MONEY0002
0.00
0.00
0.48
0.48
31331JKP7
330,000.00
0.00
67.38
67.38
912828MT4
100,000.00
0.00
687.50
687.50
912828NY2
340,000.00
0.00
1,275.00
1,275.00
3133XX7F8
130,000.00
0.00
1,056.25
1,056.25
3134G2WG3
400,000.00
0.00
391.67
391.67
31398A2S0
540,000.00
0.00
2,700.00
2,700.00
1,840,000.00 0.00 6,178.28 6,178.28
31398AE24
200,000.00
204,232.00
145.83
204,377.83
4,520.00
4,367.62
SPEC
LOT
912828NE6
320,000.00
321,450.00
754.10
322,204.10
337.50
858.40
SPEC
LOT
912828NO9
150,000.00
150,662.11
137.57
150,799.68
562.50
603.69
SPEC
LOT
�
y1 Account 61350001 Page 9
PPM Asset Management LL,C
.mss
Managed Account Security Transactions & Interest For the Month Ending September 30, 2011
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Transaction Type Principal Accrued Realized G/L Realized G/L Sale
Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method
Transaction Type Sub -Total 670,000.00 676,344.11 1,037.50 677,381.61 5,420.00 5,829.71
Managed Account Sub -Total 4,456.22 6,971.21 11,427.43 5,420.00 5,829.71
Total Security Transactions $4,456.22 $6,971.21 $11,427.43 $5,420.00 $5,829.71
}' Account 61350001 Page 10
PFM Asset Management LL,C