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06-30-2009 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida Investment Advisors Steven Alexander, CTP, CGFO, Managing Director Mel Hamilton, Senior Managing Consultant David Jang, Senior Managing Consultant Gregg Manjerovic, CFA, Portfolio Manager Rebecca Dole, Consultant Investment Performance Review Quarter Ended June 30, 2009 PFM Asset Management LLC 300 S. Orange Avenue, Suite 1170 One Keystone Plaza, Suite 300 Orlando, FL 32801 North Front & Market Streets (407) 648 -2208 Harrisburg, PA 17101 -2044 (407) 648 -1323 fax 717 - 232 -2723 717 - 233 -6073 fax lu W T /s /o9 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2009 Table of Contents Tab I. Section A Market Review Tab II. Section B Investment Portfolio & Performance Section C Asset Allocation Chart as of June 30, 2009 Tab III. June 30, 2009 PFM Month -End Statement This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. Table of Contents Section i Village of North Palm Beach Market Update July 14, 2009 PFM Asset Management LLC 300 South Orange Avenue, Suite 1170 Orlando, FL 32801 (P) 800 - 695 -4PFM www.pfm.com • During the recent run up in rates, we targeted a portfolio duration of around 94% of the benchmark. • Since the portfolio extension, rates have fallen over 50 bps, which allowed the portfolio to produce strong returns. 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2 -year US Treasury Yield June 2007 to July 2009 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 o 2009 PFM Asset Management )uration 93% of mchmark • In November the spread between agencies and Treasuries climbed to 2.06% - nearly 7 times the historical average (PFM allocated approximately 66.5% to agencies during this time). • As spreads have decreased, we have decreased agency exposure and increased Treasury exposure. • Currently, the spread is 17 basis points (0.17 %), below its historical average. 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Jui Yield Spread — 2 year Federal Agency vs. 2 -year US Treasury June 2006 to July 2009 © 2009 PFM Asset Management LLC 2 Treasury -0.11% - 0.78% 4.39% 1.08% Agency e 0.77% - 0.05% 5.80% 1.88% AAA Corporate 2.09% 0.98% 3.30% - 1.63% AA Corporate 4.74% 3.43% 4.13% - 1.27% A Corporate 7.34% 5.74% 0.11% - 5.95% ' Merrill Lynch 1 -5 year Indices Total Return 2Q 2009 _ Price Return Total Return `hs Price Return Treasury - 0.87% -1.58% 5.48% 2.04% Agency 0.53% - 0.30% 6.57% 2.56% AAA Corporate 4.08% 2.99% 5.48% 0.46% AA Corporate 5.30% 3.99% 4.35% - 1.10% A Corporate 7.76% 6.23% 0.10% - 5.74% *Merrill Lynch Index data taken from Bloomberg Financial o 009 PFM Asset Management LLC • The U.S. Treasury yield curve has fallen precipitously since July 2008, but at the same time the curve has steepened dramatically — In July 2008, the spread between the 3 -month and 10 -year Treasury was 215 basis points (2.15 %); in July 2009, the spread had steepened to 316 basis points (3.16 %) 4.00% 3.00% 2.00% 1.00% 0.00% Source data: Bloon U.S. Treasury Yield Curve July 2008 and July 2009 © 2009 PFM Asset Management LLC • Economy lost over 6.3 million jobs since January 2008. • In recent months, job losses seemed to have slowed, which may be a sign that a bottom has been reached. • April's unemployment rate at 9.5% is highest in over 25 years 600 400 200 0 V -200 -400 - -600 ... _. -800 2002 10.0% 9.0% 8.0% -- 7.0% 6.0% J 5.0% -- Change in Non -Farm Payrolls (in thousands) August 2002 —June 2009 2003 2004 2005 2006 Unemployment Rate August 2002 — June 2009 2007 2008 4.0% 2002 2003 2004 2005 2006 2007 2008 © 2009 PFM Asset Management LLC LdI LY. Cl I dLU, UI IVII IIy. JI IUI L LCI I I I I dLUb LU I IIbLUI IC:dl IUWS The Fed has not changed the target rate from their December meeting • The markets believe that the Fed Funds effective rate will remain below 1.00% for the next 12 months. Federal Funds Effective Rate January 2008 to July 2010 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -I — Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Fed Funds Effective Rate Futures f: Source data: Bloomberg O 2009 PFM Asset Management • Money market yields are currently trading at historically low levels across most investment sectors. — Short -term U.S. Treasury bills continue to trade near historical lows. Current Market Yields (as of July 10, 2009) i - rnUnui U.L 1% 0.34% — Source data: Bloomberg " The overnight rate for the PFM Funds is the 7 -day SEC yield as of July 9, 2009 o 2009 • Short and intermediate -term spreads of federal agencies over Treasuries have decreased significantly in the past few months, indicating increasing stability in the markets. • 2 -year Treasury yields fell below 1.00% at the beginning of July after being above 1.00% for most of June, indicating that expectations of a recovery may have been overly optimistic. Current Market Yields (as of July 10, 2009) Source data: Bloomberg © 2009 PFM Asset Management LLC This information does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security by anyone in any jurisdiction in which such offer or solicitation is not authorized, or in which the person making such offer is not qualified to do so, or to anyone to whom it is unlawful to make such an offer or solicitation, or to anyone in any jurisdiction outside the United States. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Fund's portfolios. This and other information about the Fund is available in the Fund's current Prospectus, which should be read carefully before investing. A copy of the Fund's Prospectus may be obtained by calling 1- 800- 338 -3383 or is available on the Fund's website at www.pfmfunds.com. While the Fund's portfolios seek to maintain a stable net asset value of $1.00 per share, it is possible to lose money investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Fund are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC. Member SIPC. The yields shown above represent past performance. Past performance is no guarantee of future results and yields may vary. The current fund performance may be higher or lower than that cited. The current seven -day yield does not include realized gains and losses on the sale of securities. The yields shown above may reflect fee waivers by service providers that subsidize and reduce the total operating expenses of the Funds. Fund yields would be lower if there were no such waivers. © 2009 PFM Asset Management LLC Village of North Palm Beach Investment Report - Quarter Ended June 30, 2009 Executive Summary PORTFOLIO STRATEGY ➢ The United States remains mired in its longest lasting recession since the Great Depression. Most economists believe that intermediate term growth will be sluggish at best. This recession is not unique to the United States; most developing countries continue to experience negative growth. For instance, the European Commission estimates that all but one European Union member state will experience negative growth for 2009. Economists are predicting that World GDP will contract by 1.5% in 2009. The Village's portfolio has performed extremely well, especially considering the current state of the market: the portfolio is well diversified among U.S. Treasury, federal agency, and FDIC - insured corporate securities. The Investment Portfolio's quarter average Yield to Maturity at Cost exceeded the quarterly average Yield to Maturity of its benchmark Merrill Lynch 1 -3 Year U.S. Treasury Index by 14 basis points (0.14 %). ➢ The portfolio complies with the Village's investment policy and Florida investment statutes. During these uncertain times, we continue to focus on safety and liquidity in the portfolios. The portfolio's strong performance during the second quarter was achieved by PFM's analysis of and quick reaction to short -lived dislocations in the market over the past two quarters, which arose from such items as new investment types (i.e. FDIC - guaranteed corporates), Federal Reserve interventions, and the overall high degree of economic uncertainty. ➢ While recent economic news has been less negative, there is no clear evidence that the economy has begun its recovery. At its June meeting, the Federal Open Market Committee reiterated their position that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." We are unlikely to see any consistent significant change in rates until there are clear signs of economic recovery. ➢ We will start the third quarter with a more neutral duration target that is around 90 -95% of the benchmark's duration. This target should help the Investment Portfolio's returns to remain in line with the benchmark. ➢ We will maintain a well diversified portfolio. Over the past quarter, federal agencies lost much of their yield advantage relative to Treasuries. While the additional yield offered by federal agencies over Treasuries remains low, we will likely maintain a higher allocation to Treasury securities than in the recent past. We continue to look for opportunities to safely enhance the portfolio's long -term performance by taking advantage of changes between sectors and maturities. However, as interest rates remain very low, we expect that total returns will be low in the coming quarters due to current and anticipated levels of investment yields. PFM Asset Management LLC Section B - 1 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2009 Portfolio Statistics Account Name Investment Portfolio Account Name Investment Portfolio Benchmarks Merrrill Lynch 1 -3 Year U.S. Treasury Index' Notes Amortized Cost',z,' June 30, 2009 $6,369,955.37 Average Quarterly Yield to Maturity on Cost' June 30, 2009 1.04% June 30, 2009 0.90% Amortized Cost' Z.3 March 31, 2009 N/A Average Quarterly Yield to Maturity on Cost' March 31, 2009 N/A March 31, 2009 0.83% 1. End of quarter trade -date amoritized cost and market values of portfolio holdings, including accrued interest. 2. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances. 3. Excludes any money market fund /cash balances held in custodian account. 4. Past performance is not indicative of future results. 5. Average quarterly returns, source Bloomberg. Market Value',' -' June 30, 2009 $6,377,176.85 Average Quarterly Yield to Maturity at Market June 30, 2009 1.00% Market Value' Z.3 March 31, 2009 N/A Average Quarterly Yield to Maturity at Market March 31, 2009 N/A Duration (Years) June 30, 2009 1.62 Duration (Years) March 31, 2009 N/A PFM Asset Management LLC Section B - 2 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2009 Investment Portfolio Composition and Credit Quality Characteristics Security Type' June 30, 2009 % of Portfolio March 31, 2009 % of Portfolio U.S. Treasuries $2,995,628.73 47.0% N/A N/A Federal Agencies 2,362,357.48 37.0% N/A N/A Commercial Paper 0.00 0.0% N/A N/A Certificates of Deposit 0.00 0.0% N/A N/A Bankers Acceptances 0.00 0.0% N/A N/A Repurchase Agreements 0.00 0.0% N/A N/A Municipal Obligations 0.00 0.0% N/A N/A Corporate Notes /Bonds 0.00 0.0% N/A N/A Corporate Notes /Bonds - FDIC Insured 1,019,190.64 16.0% N/A N/A Mortgage Backed 0.00 0.0% N/A N/A Money Market Fund /Cash 0.00 0.0% N/A N/A Totals $6,377,176.85 100.0% N/A N/A Portfolio Composition Corporate as of 06/30/09 Notes /Bonds - FDIC Insured 16% f � U.S. Treasuries 47% r Federal Agency Obligations 37% 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. Credit Quality Distribution as of 06/30/09 AAA 53% TSY 47% luw, PFM Asset Management LLC Section B - 3 Village of North Palm Beach Investment Report - Quarter Ended June 30, 2009 Investment Portfolio Maturity Distribution Maturity Distribution' June 30, 2009 March 31, 2009 PFM Funds2 $0.00 N/A Under 6 Months 998,451.00 N/A 6 - 12 Months 0.00 N/A 1 - 2 Years 4,064,447.23 N/A 2 - 3 Years 1,314,278.62 N/A 3 - 4 Years 0.00 N/A 4 - 5 Years 0.00 N/A 5 Years and Over 0.00 N/A Totals $6,377,176.85 N/A 70% 60% -o 50% 0 40% m 1�0 30% 0 co 20% m c v 10% a� d 0% Portfolio Maturity Distribution' 64% 21% 0% 1 1 0% Overnight Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years ❑June 30, 2009 13 March 31, 2009 0% 0% 0% 0% 0% 0% 3 - 4 Years 4 - 5 Years 5 Years and Over Notes: 1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity. 2. In September 2008 CCRF Money Market Fund became PFM Funds. PFM Asset Management LLC Section B - 4 Village of North Palm Beach' Asset Allocation as of June 30, 2009* Security Type June 30, 2009 June 30, 2009 Notes Permitted by Policy Florida SBA 439,765.67 2.85% 2 25% United States Treasury Securities 2,996,278.95 19.45% 100% United States Government Agency Securities - 0.00% 2 100% Federal Instrumentalities 2,357,033.29 15.30% 50% Certificates of Deposit 1,000,000.00 6.49% 2 100% Repurchase Agreements - 0.00% 0% Commercial Paper - 0.00% 0% Corporate Notes 1,016,643.13 6.60% 25% Mortgage- Backed Securities - 0.00% 0% Bankers' Acceptances - 0.00% 0% Money Market Mutual Funds 3,252.808.93 21.12% 2 50% Intergovernmental Investment Pool - 0.00% 25% Interest Bearing Checking or Savings Account 4,342,289.17 28.19% 2 100% Village Managed $8,500,311.76 55.18% PFM Managed $6,904,507.38 44.82% Total $15,404,819.14 100.00% Individual Issuer Breakdown June 30, 2009 June 30, 2009 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 Act Debentures - 0.00% 100% US Public Housing Notes & Bonds - 0.00% 100% US Dept. of Housing and Urban Development 0.00% 100% Federal Farm Credit Bank (FFCB) 679,615.81 4.41% 10% Federal Home Loan Bank (FHLB) 669,094.35 4.34% 10% Federal National Mortgage Association (FNMA) 503,226.88 3.27% 10% Federal Home Loan Mortgage Corporation (FHLMC) 505,096.25 3.28% 10% Student Loan Marketing Association (SLMA) .,. 0.00% 0% Notes: 1. All Assets. 2. These Accounts are managed by the Village. 'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis. Asset Allocation as of June 30, 2009 Corporate Notes Money Market Mutual 6.60% Funds Certificates of Deposit 21.12% 6.49% o,k; vim, Federal Instrumentalities 15.30% Interest Bearing Checking or Savings Account 28.19 United States Treasury Securities 19.45% Florida SBA 2.85% Individual Issuer Breakdown June 30, 2009 June 30, 2009 Notes Permitted by Policy CD - Bank of America 1,000,000.00 6.49% 2 33% CD - Bank B - 0.00% 33% Interest Bearing Checking or Savings Account - Wachovia 4,342,289.17 28.19% 2 50% Interest Bearing Checking or Savings Account - B 0.00% 50% JP Morgan Chase Corporate Notes - FDIC Insured 512,003.51 3.32% 33% Bank of America Corporate Notes - FDIC Insured 504,639.62 3.28% 33% Corporate Notes C - 0.00% 33% Corporate Notes D - 0.00% 33% Corporate Notes E - 0.00% 33% Money Market Fund - Sweep Account 534,552.01 3.47% 33% Money Market Fund - Evergreen 2,718,256.92 17.65% 2 33% PFM Asset Management LLC Section C -1 ar-- A PFINI Customer Service VP PO Box 11813 Harrisburg, PA 17108 -1813 ACCOUNT STATEMENT Client Management Team Contents Cover /Disclosures Summary Statement Individual Accounts Accounts included in Statement 61350001 NORTH PALM BEACH INVESTMENT PORTFOLIO VILLAGE OF NORTH PALM BEACH SAMIA JANJUA 501 US HIGHWAY 1 NORTH PALM BEACH, FL 33408 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 June 30, 2009 Average maturity represents the average maturity of all securities and investments of a portfolio, determined by multiplying the par or principal value of each security or investment by its maturity (days or years), summing the products, and dividing the sum by the total principal value of the portfolio. The stated maturity date of mortgage backed or callable securities are used in this statement. However the actual maturity of these securities could vary depending on the level or prepayments on the underlying mortgages or whether a callable security has or is still able to be called. Monthly distribution yield represents the net change in the value of one share (normally $1.00 per share) resulting from all dividends declared during the month by a fund expressed as a percentage of the value of one share at the beginning of the month. This resulting net change is then annualized by multiplying it by 365 and dividing it by the number of calendar days in the month. YTM at Cost The yield to maturity at cost is the expected rate of return, based on the original cost, the annual interest receipts, maturity value and the time period from purchase date to maturity, stated as a percentage. YTM at Market The yield to maturity at market is the rate of return, based on the current market value, the annual interest receipts, maturity value and the time period from purchase date to maturity, stated as a percentage. Managed Account A portfolio of investments managed discretely by PFM according to the client's specific investment policy and requirements. The investments are directly owned by the client and held by the client's custodian. Unsettled Trade A trade which has been executed however the final consummation of the security transaction and payment has not yet taken place. Please review the detail pages of this statement carefully. If you think your statement is wrong, missing account information, or if you need more information about a transaction, please contact PFM within 60 days of receipt. If you have other concerns or questions regarding your account you should contact a member of your client management team or PFM Service Operations at the address below. PFM Asset Management LLC Attn: Service Operations One Keystone Plaza, Suite 300 N. Front & Market Sts Harrisburg, PA 17101 1 1 4 r a v.� Managed Account Summary Statement For the Month Ending June 30, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Opening Market Value $5,063,859.50 Maturities /Calls 0.00 Sale Proceeds 0.00 Maturities /Calls 0.00 Coupon /Interest Income 19,895.83 Principal Dispositions 0.00 Principal Payments 0.00 Principal Acquisitions 1,302,087.18 Security Purchases (1,304,405.54) Unsettled Trades 0.00 Net Cash Contribution 1,004,200.00 Change in Current Value (4,103.43) Reconciling Transactions 0.00 Closing Market Value $6,361,843.25 Earnings Reconciliation (Cash Basis) - Managed Account Cash Balance Interest /Coupons Received 19,895.83 Closing Cash Balance $534,532.86 Less Purchased Interest Related to Interest /Coupons (2,318.36) Plus Net Realized Gains /Losses 0.00 Total Cash Basis Earnings $17,577.47 Earnings Reconciliation (Accrual Basis) Ending Amortized Value of Securities Total 6,354,621.77 Ending Accrued Interest 15,333.60 Plus Proceeds from Sales 0.00 Plus Proceeds of Maturities /Calls /Principal Payments 0.00 Plus Coupons Received 19,895.83 Less Cost of New Purchases (1,304,405.54) Less Beginning Amortized Value of Securities (5,055,380.55) Less Beginning Accrued Interest (25,173.98) Total Accrual Basis Earnings $4,891.13 � y1• Account 61350001 Page 1 __ PFM Asset Management LLC de -- R. Portfolio Summary and Statistics NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Description Par Value Market Value Percent U.S. Treasury Bond / Note 2,000,000.00 1,993,890.50 31.34 U.S. Treasury Bill 1,000,000.00 998,451.00 US TSY Bond / 15.69 31. Federal Agency Bond / Note 2,300,000.00 2,351,593.75 36.97 Corporate Note - Temp. Liq. Guar. Prog. 1,000,000.00 1,017,908.00 16.00 Managed Account Sub -Total 6,300,000.00 6,361,843.25 100.00% Accrued Interest 15,333.60 Total Portfolio 6,300,000.00 6,377,176.85 Unsettled Trades 63.731% 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 TS' 15.69% For the Month Ending June 30, 2009 Corp Note - TLGP 16.00% Fed Agy Bond / Note 36.97 % Yield to Maturity at Cost 1.07% Yield to Maturity at Market 0.99% Duration to Worst 1.62 Weighted Average Days to Maturity 604 � 1. Account 61350001 Page 2 PFM Asset Management LLC Managed Account Issuer Summary NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Issuer Market Value of Holdings Percent BANK OF AMERICA CORP 505,778.00 7.95 FANNIE MAE 502,031.25 7.89 FEDERAL FARM CREDIT BANKS 677,937.50 10.66 FEDERAL HOME LOAN BANKS 667,875.00 10.50 FREDDIE MAC 503,750.00 7.92 JP MORGAN CHASE & CO 512,130.00 8.05 UNITED STATES TREASURY 2,992,341.50 47.03 Total $6,361,843.25 100.000/0 TSY 47.04% For the Month Ending June 30, 2009 52.96% � Ng' Account 61350001 Page 3 toPFM Asset Management LLC A .� Managed Account Detail of Securities Held For the Month Ending June 30, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity U.S. Treasury Bond / Note CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value 03/2009 1.875% 04/20/2012 Security Type Sub -Total 2,300,000.00 2,350,945.30 1.31 10,763.73 2,346,269.56 2,351,593.75 Corporate =PFrl, Account 61350001 Page 4 PFM Asset Management LLC A Amortized Market Interest Cost Value 1,093.75 Managed Account Detail of Securities Held 512,130.00 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 504,450.73 505,778.00 Security Type/ Description S &P Moody's Trade Settle Original YTM Dated Date /Coupon /Maturity CUSIP Corporate .g Par Rating Rating Date Date Cost at Cost DTD 12/23/2008 1.700% 12/23/2010 For the Month Ending June 30, 2009 Accrued Amortized Market Interest Cost Value 1,093.75 510,909.76 512,130.00 188.89 504,450.73 505,778.00 Security Type Sub -Total 1,000,000.00 1,017,148.00 1.08 1,282.64 1,015,360.49 1,017,908.00 Managed Account Sub -Total 6,300,000.00 6,360,393.74 1.07 15,333.60 6,354,621.77 6,361,843.25 Securities Sub -Total $6,300,000.00 $6,360,393.74 1.07% $15,333.60 $6,354,621.77 $6,361,843.25 Accrued Interest $15,333.60 Total Investments $6,377,176.85 � rg• Account 61350001 Page 5 _u PFM Asset Management LLC � PFM Managed Account Fair Market Value & Analytics For the Month Ending June 30, 2009 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 US TREASURY NOTES 03/2009 1.875% 04/20/2012 Security Type Sub -Total 2,300,000.00 2,351,593.75 648.45 5,324.19 1.82 1.17 P 17,I, Account 61350001 Page 6 �- PFM Asset Management LLC '�. Managed Account Fair Market Value & Analytics NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Security Type/ Description Next Call Market Market Dated Date /Coupon /Maturity CUSIP Corporate Par Broker Date Price Value .. 23/2008 1.700% 12/23/2010 For the Month Ending June 30, 2009 Unreal G/L Unreal G/L Duration YTM On Cost Amort Cost to Worst at Mkt (64.50) 1,220.24 1.39 0.90 824.50 1,327.27 1.46 0.91 Security Type Sub -Total 1,000,000.00 1,017,908.00 760.00 2,547.51 1.43 0.91 Managed Account Sub -Total 6,300,000.00 6,361,843.25 1,449.51 7,221.48 1.62 0.99 Securities Sub -Total $6,300,000.00 $6,361,843.25 Accrued Interest $15,333.60 Total Investments $6,377,176.85 t- I' �PFN PFM Asset Management LLC $1,449.51 $7,221.48 1.62 0.990/0 Account 61350001 Page 7 �P1 Managed Account Security Transactions & Interest For the Month Ending June 30, 2009 NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001 Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method 06/17/09 06/18/09 US TREASURY NOTES 500,000.00 0.00 4,250.00 4,250.00 NOTE DTD 12/23/2008 1.700% 12/23/2010 Transaction Type Sub -Total 1,500,000.00 0.00 19,895.83 19,895.83 Managed Account Sub -Total 2,800,000.00 (1,302,087.18) 17,577.47 (1,284,509.71) Total Security Transactions $2,800,000.00 ($1,302,087.18) $17,577.47 ($1,284,509.71) _`,(. Account 61350001 Page 8 PFM Asset Management LLC