03-31-2013 Investment Performance Review Village of North Palm Beach, Florida
North Pal
Investment Performance Review
Quarter Ended March 31, 2013
Investment Advisors PFM Asset Management LLC
Steven Alexander, CTP, CGFO, Managing Director One Keystone Plaza, Suite 300 300 S. Orange Avenue, Suite 1170
D. Scott Stitcher, CFA, Senior Managing Consultant North Front& Market Streets Orlando, FL 32801
Richard Pengelly, CFA, Senior Managing Consultant Harrisburg, PA 1 71 01-2044 (407)648-2208
Gregg Manjerovic, CFA, Portfolio Manager 407 717-232-2723 •717-233-6073 fax (
Rebecca Geyer, CTP, Senior Analyst )648-1323 fax
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
Table of Contents
Tab I.
Section A Market Review
Tab II.
Section A Quarterly Summary Report
Section B Investment Portfolio & Performance
Section C Asset Allocation Chart as of March 31 , 2013
Tab III. March 31 , 2013 PFM Month-End Statement
(statements are available online at www.pfm.com)
This material is based on information obtained from sources generally believed to be reliable and available to the public,
however PFM Asset Management LLC cannot guarantee its accuracy,completeness or suitability.This material is for general
information purposes only and is not intended to provide specific advice or recommendation.The information contained in this
report is not an offer to purchase or sell any securities.
Table of Contents Section i
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
TAB I
Village of North Palm Beach, Florida Investment Report — Quarter Ended March 31, 2013
Summary Interest Rates
• In the first quarter of 2013, investors flocked to relatively riskier assets • Interest rates rose modestly during the quarter across longer-term
(such as corporate bonds and equities) as loose global monetary policy maturities, while the flight to quality stemming from euro-zone
fueled a search for additional yield. fears counteracted the move higher.
• The U.S. housing market continued to strengthen, and the • The markets shrugged off the start of the federal budget
unemployment rate fell to 7.6%. sequestration as they did the "fiscal cliff" in December, but if the
• The domestic economy has continued to experience moderate growth, economy feels growing stress from budget cuts in the coming
but some economists believe that the federal budget cuts that went months, interest rates may be pushed toward recent lows.
into effect March 1 (also known as the sequestration) may lead to • The Federal Reserve (Fed) remained committed to keeping short-
slower growth for the second half of the year. term rates at record-low levels, pegging short-term rates near
Economic Snapshot zero. The Fed also continued to buy $45 billion in Treasuries each
month in addition to its monthly purchases of$40 billion in Agency
• Housing starts have averaged more than 900,000 a year in the first mortgage-backed securities (MBS).
quarter, up more than 25% over 2012 but still much lower than in the Sector Performance
boom years. Home sales and housing prices are also significantly above
recession levels. • High-quality corporate bonds continued to perform well for the
• According to the U.S. Commerce Department, consumer spending rose quarter, as spreads narrowed to post-credit-crisis lows. Security
0.7% in February—a fourth straight increase that was due in part to selection has been important, as certain corporate sectors (such as
higher gas prices. Meanwhile, personal income grew by 1.1% in Financials) performed particularly well.
February after a big downturn in the prior month. Both numbers were • After incurring losses in the fourth quarter of 2012 due to
slightly above expectations. concerns that their tax-exempt status might be curtailed,
• U.S. gross domestic product (GDP) grew by 0.4% in the fourth quarter municipal bonds roared back to life in the first quarter of 2013.
of 2012, while forecasts for first-quarter growth are in the 2%-3% These securities, along with corporate bonds, were the top
range.
performers for the quarter.
• Euro-zone economies struggled with recession and political • Supply scarcity and historically tight spreads resulted in Agencies
uncertainty. The banking crisis in Cyprus, Italy's difficulties creating a contributing little or no additional performance when compared
new government, and weakness in many European economies pushed with similar-maturity Treasuries.
the euro lower against the U.S. dollar and supported U.S. Treasury • MBS recovered somewhat after their fourth-quarter
prices. Once again, heightened concerns about the euro zone caused a underperformance, bolstered by the upturn in housing values and
flight to quality late in the quarter. expectations that the Fed's buying program would continue for the
foreseeable future
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC (PFMAM) at the time of distribution and are subject to cbange.
Information is obtained from sourcesgenerally believed to be reliable and available to the public;however, PFMAM cannotguarantee its accuracy, completeness, or suitability. This material is
forgeneral information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purcbase or sell any securities.
PFM Asset Management LLC Section A-1
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2013
Economic Snapshot
Labor Market Latest Dec 2012 Mar 2012
Unemployment Rate Marl 3 7.6% 7.8% 8.2% Unemployment Rate(left)vs.Change in Nonfarm Payrolls(right)
11.0% 600K
Change In Non-Farm Payrolls Mael3 88,000 219,000 205,000 �Unempl yrrienRaePayrdls 500K
10.0% 400K
9.0% 300K
Average Hourly Earnings(YoY) Marl 1.8% 2.1% 2.1% 200K
8.0% 100K
II I � I 1 111
Personal Income(YoY) Feb'l3 2.6% 7.1% 3.2% 7.0% 0
-100K
-200K
Initial Jobless Claims(week) Mar 29 385,000 372,000 368,000 3/31/10 9/30/10 3/31/11 9/30/11 3/31/12 9/30/12
•
Real GDP (QoQ SAAR) 2012Q4 0.4% 3.1%1 2.0%' 5.0% Real GDP (QoQ)
GDP Personal Consumption(QoQ SAAR) 2012Q4 1.8% 1.6%1 2.4%2 4.0%
3.0% -
Retail Sales (YoY) Feb'l3 4.6% 4.8% 6.3%
2.0%
ISM Manufacturing Survey(month) Mar l3 51.3 50.2 53.3 1.0% '
0.0%
Existing Home Sales(month) Feb'l3 4.98 mil. 4.90 mil. 4.46 mil. 12/31/09 6/30/10 12/31/10 6/30/11 12/31/11 6/30/12 12/31/12
Inflation
Personal Consumption Expenditures(YoY) Feb'l3 1.3% 1.5% 2.2% consumer Price Index
5.0%
CPI(YoY) CPI Core(YoY)
Consumer Price Index (YoY) Feb'l3 2.0% 1.7% 2.7% 4.0%
3.0%
Consumer Price Index Core(YoY) Feb'l3 1.7% 1.3% 2.8% 2.0% �^
Crude Oil Futures (WTI, per barrel) Mar 31 $97.23 $91.82 $103.02 1.0%
0.0%
Gold Futures (oz) Mar 31 $1,595 $1,676 $1,669 2/28/10 8/31/10 2/28/11 8/31/11 2/29/12 8/31/12
1. Data as of Third Quarter 2012 2. Data as of First Quarter 2012 Source:Bloomberg
Note: YoY=year over year, QoQ= quarter over quarter, SAAR=seasonally adjusted annual rate, WTI= West Texas Intermediate crude oil
PFM Asset Management LLC Section A-2
Village of North Palm Beach, Florida Investment Report — Quarter Ended March 31, 2013
Interest Rate Overview
U.S. Treasury Note Yields U.S. Treasury Note Yield Curve
2.5% 4%
2.0%
3%
1.5% �_
_d 6 2% /
1% /
0.5% /
w
0.0% 0%
W N W Ul J W
3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 0 0
o
2-Year 5-Year 10-Year Maturity
March 29,2013 December 31,2012 — — March 31,2012
U.S. Treasury Yields Yield Curves as of 3/31/2013
Change Change 5%
Maturity 3/31/13 12/31/12 over 3/31/12 • 4%
Quarter 3-month 0.07% 0.09% (0.02%) 0.11% (0.04%) a 3%
Z 01
1-year 0.13% 0.14% (0.01%) 0.22% (0.09%) >- 2% .40
I
2-year 0.28% 0.27% 0.00% 0.35% (0.07%) 1%
5-year 0.79% 0.74% 0.05% 1.07% (0.28%) 0%
WNW U7 �l N W
O U7 O
10-year 1.93% 1.81% 0.12% 2.28% (0.35%) o 14 1414 14 14
Maturity
30-year 3.10% 1 2.94% 1 0.16% 1 3.33% 1 (0.23%) U.S.Treasury Federal Agency — — Industrial Corporates,A Rated
Source:Bloomberg
PFM Asset Management LLC Section A-4
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2013
B of A Merrill Lynch Index Returns
As of 3/31/2013 Returns for Periods ended 3/31/2013
Duration Yield 3 Month 1 Year 3 Years
Indices 1-3 Year
U.S. Treasury 1.87 0.25% 0.12% 0.64% 1.24%
Federal Agency 1.71 0.32% 0.11% 0.67% 1.37%
U.S. Corporates, A-AAA rated 1.99 0.90% 0.44% 2.75% 2.93%
Agency MBS (0 to 3 years) 1.81 1.29% 0.01% 1.19% 2.84%
Municipals 1.82 0.51% 0.45% 1.05% 1.63%
Indices 1-5 Year
U.S. Treasury 2.73 0.39% 0.15% 1.26% 2.36%
Federal Agency 2.38 0.47% 0.14% 1.19% 2.04%
U.S. Corporates, A-AAA rated 2.86 1.18% 0.58% 4.05% 4.23%
Agency MBS (0 to 5 years) 2.81 1.96% (0.03%) 1.88% 3.82%
Municipals 2.55 0.71% 0.65% 1.68% 2.48%
Indices Master
U.S. Treasury 5.95 1.01% (0.26%) 3.23% 5.41%
Federal Agency 3.82 0.89% 0.05% 2.51% 3.72%
U.S. Corporates, A-AAA rated 6.79 2.39% (0.18%) 6.88% 7.45%
Agency MBS 3.23 2.02% (0.07%) 1.91% 4.17%
Municipals 7.51 2.62% 0.52% 5.61% 6.56%
Returns for periods greater than one year are annualized
Source:Bloomberg
PFM Asset Management LLC Section A-5
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
TAB II
Village of North Palm Beach,Florida Investment Report-Quarter Ended March 31,2013
Quarterly Summary Report
Total Portfolio Value'' March 31,20131 December 31,2012
Market Value $8,323,893.78 $8,317,772.03
Amortized Cost $8,303,089.76 $8,293,955.99
Quarterly Retu Annualized Last Last Last Since Inception
Total Return'''°s`'a' March 31 201 Quarter 12 Months 2 Years 3 Years June 30,2009
Investment Portfolio 0.11% 0.46% 0.64% 1.01% 1.18% 1.36%
Merrill Lynch 1-3 Year U.S.Treasury Index 0.12% 0.48% 0.64% 1.03% 124% 1.40%
Current Quarter Previous Quarter Current Quarter Previous Quarter
Effective Duration(Yearsl° March 31,2013 December 31,2012 Yields March 31.2 013 December 31,2012
Investment Portfolio 1.77 1.81 Yield at Market 0.26% 0.26%
Merrill Lynch 1-3 Year U.S.Treasury Index 1.79 1.80 Yield at Cost 0.44% 0.47%
Portfolio Duration%of Benchmark Duration L 99% 100%
Quarter Total Return Comparison Total Return Comparison Since Inception as of
Quarter Ended 03/31/13 Quarter Ended 03/31/13
0.75% 2.50%
0.50% 2.00%
E 025% 1.50% - L 1-3 Year U.S.Treasury Index
g Investment Portfolio ML 1-3 Year U.S.Treasury Index g Investment Portfolio` 1.40%
a) ° 0.11% 0.12% 1.00% 1.36%
K 0.00/o °
-0.25% 1 - -
-0.50% 0.00%
0.50 1.00 1.50 2.00 2.50 3.00 0.50 1.00 1.50 2.00 2.50 3.00
Effective Duration(Years) Effective Duration(Years)
Current Quarter Previous Quarter Fiscal Year 2013 Fiscal Year 2012
Quarterly Interest Income March 31,2013 December 31,2012 Fiscal Year Interest Income Year to Date Year to Date
Investment Portfolio $10,634.47 $27,555.99 Investment Portfolio $38,190.46 $82,633.24
TD Bank Money Market Fund r 1.47 1.50 TD Bank Money Market Fund 2.97 5.47
Total $10,635.94 $27,557.49 Total $38,193.43 $82,638.71
Current Quarter Previous Quarter Fiscal Year 2013 Fiscal Year 2012
Quarterly Realized Gain/Loss on Cost March 31,2013 December 31,2012 Fiscal Year Realized Gain/Loss on Cost Year to Date Year to Date
Investment Portfolio 2,448.251 (8,331.84) Investment Portfolio (5,883.59) $19,132.88
Notes:
1.In order to comply with GASB accrual accounting reporting requirements.
2. End of quarter trade-date market values of portfolio holdings,including accrued interest.
3.Performance on trade date basis,gross(i.e.,before fees),is in accordance with The CFA Institute's Global Investment Performance Standards(GIPS).
4.Merrill Lynch Indices provided by Bloomberg Financial Markets.
5.Quarterly returns are presented on an unannualized basis.
6.Includes money market fund/cash in performance and duration computations.
7.Returns presented for 12 months or longer are presented on an annual basis.
8.Past performance is not indicative of future results.
PFM Asset Management LLC Section A-1
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
Executive Summary
PORTFOLIO STRATEGY
The Village's Investment Portfolio is of high credit quality and invested in U.S. Treasury and Federal Agency securities.
PFM continued to actively manage the Investment Portfolio during the first quarter and found value in the market, taking advantage
of market inefficiencies or changes in economic outlook. In February PFM sold U.S. Treasuries maturing in less than a year and
purchasing a 3 year U.S. Treasury. This trade extended the duration of the portfolio and picked up additional yield when rates were
at their peak for the quarter.
y The Investment Portfolio's quarterly total return performance was 0.11%, underperforming the benchmark's performance of 0.12%
by 0.01%. The slight underperformance is due to a few specific issues that had negative performance during the quarter and
dragged the overall Portfolio's performance down modestly. We expect the pricing of these securities to improve in the upcoming
quarter. Over the past year, the Portfolio earned 0.64%, in-line with the benchmark.
y Interest rates for short maturity Treasuries (3 years or less) barely budged during the quarter as the Federal Reserve's zero interest
rate policy on overnight lending continued to anchor the front end of the yield curve. Yields on Two year Treasury Notes started the
quarter at 0.25%, fluctuated no higher than 0.29% and no lower than 0.23%, before ending the quarter at 0.24% for a net change of
-1 basis point.
Intermediate maturity Treasuries (5 — 10 years) saw a little more intra-quarter volatility as stronger economic data in the U.S.
encouraged yields higher and unfolding developments in the European debt crisis and consequent demand for safe assets drove
bond yields lower. Five year Treasury Notes began the year at 0.72%, climbed as high as 0.91% on strong February Retail Sales
and then fell back to 0.78% at the end of the quarter as the Cyprus bailout became more chaotic. Ten year yields reached 2% for
the first time in a year.
Moderate economic expansion has so far corresponded to job growth only slightly faster than population growth. Therefore the
unemployment rate should only come down slowly and the consensus still expects the Fed to continue their monthly purchases of
Treasury and Agency bonds through 2013 although the Fed may taper the amount somewhat.
y Besides Fed purchases, ongoing issues in the Eurozone such as Italy's failure to form a government post-election will keep
Treasury bonds bid among European investors as well as export-oriented economies in Asia with growing foreign-exchange
reserves that require Treasury bonds to absorb their U.S. dollars.
Treasuries and Agency bonds will benefit from rolldown as the yield curve is expected to steepen when yields on longer maturity
bonds drift higher and shorter maturity yields are more or less tethered by the Fed's zero interest rate policy. At current yield
spreads, however, Agencies offer little value over Treasuries.
y As always, we strive to maintain safety of principal and appropriate liquidity, while maximizing value through careful, prudent active
management. 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, Florida Investment Report-Quarter Ended March 31,2013
Investment Portfolio Composition and Credit Quality Characteristics
Security Type' March 31,2013 %of Portfolio December 31.2012 %of Portfolio
U.S.Treasuries $6,869,656.42 82.5% $7,132,204.18 85.7%
Federal Agencies 1,390,094.50 16.7% 1,130,543.35 13.6%
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 0.00 0.0% 0.00 0.0%
Mortgage Backed 0.00 0.0% 0.00 0.0%
Money Market Fund/Cash 64,142.86 0.8% 55,024.50 0.7%
Totals $8,323,893.78 100.0% $8,317,772.03 100.0%
Portfolio Composition Credit Quality Distribution
as of 03/31/13 as of 03/31/13
AA+
100%
Federal Agency
Obligations
17%
U.S.Treasuries
82%
Money Market
Fund/Cash
0.77%
Notes:
1.End of quarter trade-date market values of portfolio holdings,including accrued interest.
2.Credit rating of securities held in portfolio,exclusive of money market fund/LGIP.Standard&Poor's is the source of the credit ratings.
PFM Asset Management LLC Section B -2
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2013
Investment Portfolio Maturity Distribution
Maturity Distribution' March 31, 2013 December 31, 2012
Overnight(Monedy Market Fund) $64,142.86 $55,024.50
Under 6 Months 0.00 0.00
6- 12 Months 1,593,153.36 1,823,056.40
1 -2 Years 3,860,377.96 2,769,865.42
2- 3 Years 2,159,801.21 3,669,825.71
3-4 Years 646,418.41 0.00
4- 5 Years 0.00 0.00
5 Years and Over 0.00 0.00
Totals $8,323,893.78 $8,317,772.03
loo°%° Portfolio Maturity Distribution'
90% ■March 31, 2013
80% ■December 31, 2012
—°0 70%
o 60%
a
m 50% 46% 44%
0
~ 40%
0 33%
�, 30% 22% 26%
20% 19%
m 10% 8%
a 0% 1% 1% 0% 0% % 0% 0% 0% 0%
Overnight Under 6 Months 6- 12 Months 1 -2 Years 2- 3 Years 3-4 Years 4- 5 Years 5 Years and Over
Notes:
1.Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date,although they may be called prior to maturity.
PFM Asset Management LLC Section B - 3
Village of North Palm Beach, Florida Investment Report- Quarter Ended March 31,2013
Investment Portfolio Maturity Distribution versus the Benchmark'
25.0%
20.0%
15.0%
Cd
x
10.0%
5.0%
0.0% --- I I t I�—][
00
Years to Maturity
■ Investment Portfolio ■Merrill Lynch 1-3 Year U.S.Treasury Note Index
Notes:
1. Due to the nature of the security,Mortgage-Backed Securities are represented based on their average life maturity rather than their final maturity.
PFM Asset Management LLC Section B-4
Village of North Palm Beach,Florida' Asset Allocation as of March 31,2013*
Security Type March 31,2013 March 31,2013 Notes Permitted by Policy
Asset Allocation
Florida SBA Prime Fund and Fund B 489,390.85 2.36% 2 25% as of March 31,2013
United States Treasury Securities 6,857,008.71 33.05% 100% Money Market Mutual
Funds
United States Government Agency Securities - 0.00% 100% 1.04% Interest Bearing Checking
Federal Instrumentalities 1,381,938.19 6.66% 50% Federal Instrumentalities or Savings Account
Mortgage-Backed Securities - 0.00% 50
6.66% 56.89
Certificates of Deposit - 0.00% 100%
Repurchase Agreements - 0.00% 0%
Commercial Paper - 0.00% 0%
Corporate Notes - 0.00% 25%
Bankers'Acceptances - 0.00% 0% United States Treasury
Securities
Money Market Mutual Funds 215,048.56 1.04% 50% 33.05
Intergovernmental Investment Pool - 0.00% 25% Florida SBA Prime Fund and Fund B
Interest Bearing Checking or Savings Account 11,802,407.10 56.89% 2 100% 2.36
Village Managed 12,442,703.65 59.98%
PFM Managed 8,303,089.76 40.02%
Total 20,745,793.41 100.00%
Individual Issuer Breakdown March 31,2013 March 31,2013 Notes Permitted by Policy Individual Issuer Breakdown March 31,2013 March 31,2013 Notes Permitted by Policy
Government National Mortgage Association(GNMA) - 0.00% 100% Interest Bearing Checking or Savings Account-Wells Fargo 8,793,850.30 42.39% 2 50%
US Export-Import Bank(Ex-1m) - 0.00% 100% Interest Bearing Checking or Savings Account-Chase 3,008,556.80 14.50% 50%
Farmers Home Administration(FMHA) - 0.00% 100% Money Market Fund-TD Bank Sweep Account 64,142.86 0.31% 33%
Federal Financing Bank - 0.00% 100% Money Market Fund-Wells Fargo Advantage Fund 150,905.70 0.73% 2 33%
Federal Housing Administration(FHA) - 0.00% 100% Florida Prime 301,761.93 1.45% 2 25%
General Services Administration - 0.00% 100% SBA Fund B 187,628.92 0.90% 2 N/A
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) - 0.00% 10%
Federal Home Loan Bank(FHLB) 341,429.75 1.65% 10%
Federal National Mortgage Association(FNMA) 639,422.94 3.08% 10%
Federal Home Loan Mortgage Corporation(FHLMC) 401,085.50 1.93% 10%
Notes:
1. All Assets.
2. These Accounts are managed by the Village.
`PFM managed securities are shown on Amortized Cost plus Accrued Interest basis.
PFM Asset Management LLC Section C-1
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
TAB III
Village of North Palm Beach, Florida Investment Report-Quarter Ended March 31,2013
Insert Month End Statement here to complete the report.
Statements are available online at www.pfm.com
login and click on the link to "Monthly Statements"
on the left side of the screen.
A
� PFM Customer Service
PO Box 11813
�r�rr
Harrisburg, PA 17108 -1813
�'�` ACCOUNT STATEMENT
Client Management Team
Steven Alexander, CTP, CGFO
Managing Director
300 South Orange Avenue, Suite 1170
Orlando, FL 32801
407 -648 -2208
alexanders @pfm.com
Gregg Manjerovic, CFA
Director
One Keystone Plaza, Suite 300
Harrisburg, PA 17101
717 - 232 -2723
manjerovicg @pfm.com
Rebecca Geyer, CTP
Senior Analyst
300 South Orange Street, Suite 1170
Orlando, FL 32801
407 -648 -2208
doler @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
Online Access http: / /www.pfm.com Customer Service 1- 717 - 232 -2723
MIZZ
W_��
Important isc ro sures {'
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Such discount or premium with respect to longer term securities is
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Callable Securities Securities subject to redemption prior to maturity may
be redeemed in whole or in part before maturity, which could affect the yield
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Portfolio The securities in this portfolio, including shares of mutual funds,
are not guaranteed or otherwise protected by PFM, the FDIC (except for
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Investment in securities involves risks, including the possible loss of the
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Rating Information provided for ratings is based upon a good faith inquiry of
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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 March 31, 2013
Average maturity represents the average maturity of all securities and
investments of a portfolio, determined by multiplying the par or
principal value of each security or investment by its maturity (days or
years), summing the products, and dividing the sum by the total
principal value of the portfolio. The stated maturity date of mortgage
backed or callable securities are used in this statement. However the
actual maturity of these securities could vary depending on the level or
prepayments on the underlying mortgages or whether a callable
security has or is still able to be called.
Monthly distribution yield represents the net change in the value of one
share (normally $1.00 per share) resulting from all dividends declared
during the month by a fund expressed as a percentage of the value of
one share at the beginning of the month. This resulting net change is
then annualized by multiplying it by 365 and dividing it by the number of
calendar days in the month.
YTM at Cost The yield to maturity at cost is the expected rate of return,
based on the original cost, the annual interest receipts, maturity value
and the time period from purchase date to maturity, stated as a
percentage, on an annualized basis.
YTM at Market The yield to maturity at market is the rate of return,
based on the current market value, the annual interest receipts,
maturity value and the time period remaining until maturity, stated as a
percentage, on an annualized basis.
Managed Account A portfolio of investments managed discretely by
PFM according to the client's specific investment policy and
requirements. The investments are directly owned by the client and
held by the client's custodian.
Unsettled Trade A trade which has been executed however the final
consummation of the security transaction and payment has not yet
taken place.
Please review the detail pages of this statement carefully. If you think
your statement is wrong, missing account information, or if you need
more information about a transaction, please contact PFM within 60
days of receipt. If you have other concerns or questions regarding your
account you should contact a member of your client management team
or PFM Service Operations at the address below.
PFM Asset Management LLC
Attn: Service Operations
One Keystone Plaza, Suite 300
N. Front & Market Sts
Harrisburg, PA 17101
�P M°
Managed Account Summary Statement For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
..
Opening Market Value $8,245,962.89
Maturities /Calls
0.00
Maturities /Calls 0.00
Sale Proceeds
0.00
Principal Dispositions 0.00
Coupon /Interest /Dividend Income
6,009.85
Principal Acquisitions 0.00
principal Payments
0.00
Unsettled Trades (2,764.85)
Security Purchases
0.00
Change in Current Value (4,057.41)
Net Cash Contribution
0.00
Reconciling Transactions
0.00
Closing Market Value $8,239,140.63
Managed Earnings Reconciliation (Cash Basis) - .
Interest/Dividends /Coupons Received 6,009.85
Closing Cash Balance
$67,024.11
Less Purchased Interest Related to Interest /Coupons 0.00
Plus Net Realized Gains /Losses 0.00
Total Cash Basis Earnings $6,009.85
Earnings Reconciliation (Accrual Basis) TotJE
Ending Amortized Value of Securities 8,218,336.61
Ending Accrued Interest 20,610.29
Plus Proceeds from Sales 386,600.79
Plus Proceeds of Maturities /Calls /Principal Payments 0.00
Plus Coupons /Dividends Received 6,009.85
Less Cost of New Purchases (386,172.61)
Less Beginning Amortized Value of Securities (8,222,269.43)
Less Beginning Accrued Interest (18,308.09)
Total Accrual Basis Earnings $4,807.41
PFM Account Page 1
qu PFM Asset Management LLC
P FN'S..
Portfolio Summary and Statistics
NORTH PALM BEACH INVESTMENT PORTFOLIO -
US TSY Bond / Note
83.15%
For the Month Ending March 31, 2013
Fed Agy Bond /
Note
16.85%
Yield to Maturity at Cost 0.44%
Yield to Maturity at Market 0.26%
Duration to Worst 1.77
Weighted Average Days to Maturity 654
=PFM Account
Page 2
VF PFM Asset Management LLC
aff-
-
�iFM'
Managed Account Issuer Summary
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Issuer
Summary
Market Value
Issuer
of Holdings
Percent
FANNIE MAE
640,389.26
7.77
FEDERAL HOME LOAN BANKS
344,588.64
4.18
FREDDIE MAC
402,963.20
4.89
UNITED STATES TREASURY
6,851,199.53
83.16
Total
PFM Asset Management LLC
$8,239,140.63 100.000/0
AA+
100.00%
For the Month Ending March 31, 2013
Account Page 3
PFM'
Managed Account Detail of Securities Held For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description
S &P
Moody's
Trade
Settle
Original
YTM
Accrued
Amortized
Market
Dated Date /Coupon /Maturity
U.S. Treasury :. Note
CUSIP
Par
Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
US TREASURY NOTES
125,000.00
AA+
Aaa
09/06/12
09/10/12
128,437.50
0.34
4.27
127,811.66
127,939.50
DTD 09/30/2010 1.250% 09/30/2015
CPFNI` Account Page 4
PFM Asset Management LLC
q-P �LW w
Managed Account Detail of Securities Held For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
U.S. Treasury Bond / Note
US TREASURY NOTES
365,000.00 AA+ Aaa 03/27/13 04/01/13 383,107.42 0.38 3,065.19 383,107.42 383,050.35
DTD 05/02/20112.000% 04/30/2016
Security Type Sub -Total
6,760,000.00
6,865,541.03
0.38
18,456.89
6,838,551.82
6,851,199.53
Federal Agency Bond / Note
FEDERAL HOME LOAN BANK GLOBAL NOTES
260,000.00
AA+
Aaa
02/14/13
02/15/13
259,703.60
0.54
3.61
259.715.31
260,299.26
DTD 02/15/2013 0.500% 03/30/2016
Security Type Sub -Total 1,380,000.00 1,380,394.80 0.76 2,153.40 1,379,784.79 1,387,941.10
Managed Account Sub -Total 8,140,000.00 8,245,935.83 0.44 20,610.29 8,218,336.61 8,239,140.63
�
'41 Account Page 5
PFM Asset Management LLC
PFW
Managed Account Detail of Securities Held
NORTH PALM BEACH INVESTMENT PORTFOLIO -
For the Month Ending March 31, 2013
Securities Sub -Total $8,140,000.00 0
$8,245,935.83 0.44% $20,610.29 $8,218,336.61 $8,239,140.63
Accrued Interest $20,610.29
Total Investments
Bolded items are forward settling trades.
$8,259,750.92
.r
�PFM' Account Page 6
PFM Asset Management L LC
PPM=
iw Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2013
NORTH PALM ;BEACH INVESTMENT PORTFOLIO -
Security Type/ Description
Next Call Market
Market
Unreal G/L
Unreal G/L
Effective
Duration
YTM
Dated Date /Coupon /Maturity
U.S. Treasury Bond / Note
CUSIP
Par Broker
Date Price
Value
On Cost
Amort Cost
Duration
to Worst at Mkt
US TREASURY NOTES
390,000.00 BARCLAYS
102.38
399,292.92
(975.05)
158.30
2.53
2.53
0.32
DTD 11/01/2010 1.250% 10/31/2015
1 Account Page 7
PFM Asset Management L.LC
PF "I
Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM
Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt
US TREASURY NOTES
365,000.00 CITIGRP 104.95 383,050.35 (57.07) (57.07) 2.98 2.98 0.38
DTD 05/02/20112.000%
04/30/2016
Security Type Sub -Total
6,760,000.00
6,851,199.53
(14,341.50)
12,647.71
1.73
1.73
0.24
Federal Agency Bond / Note
FEDERAL HOME LOAN BANK GLOBAL
260,000.00 CITIGRP
100.12
260,299.26
595.66
583.95
2.97
2.97
0.46
DTD 02/15/2013 0.500% 03/30/2016
Security Type Sub -Total
1,380,000.00
1,387,941.10
7,546.30
8,156.31
1.96
1.96
0.32
Managed Account Sub -Total 8,140,000.00 8,239,140.63 (6,795.20) 20,804.02 1.77 1.77 0.26
Securities Sub -Total $8,140,000.00
$8,239,140.63 ($6,795.20) $20,804.02 1.77 1.77 0.260/a
Accrued Interest $20,610.29
Total Investments $8,259,750.92
Bolded items are forward settling trades.
Account Page 8
PFM Asset Management LLC
PFM'
Managed Account Security Transactions & Interest For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Transaction Type Principal Accrued Realized G/L Realized G/L Sale
Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method
03/27/13 04/01/13 US TREASURY N/B
9128280FO
365,000.00
(383,107.42)
(3,065.19)
(386,172.61)
DTD 05/02/2011 2.0000/b
04/30/2016
Transaction Type Sub -Total
INTEREST
365,000.00
(383,107.42)
(3,065.19)
(386,172.61)
03/01/13 03/01/13 MONEY MARKET FUND
MONEY0002
0.00
0.00
0.47
0.47
03/15/13 03/15/13 US TREASURY NOTES
912828RG7
470,000.00
0.00
587.50
587.50
DTD 09/15/20110.250% 09/15/2014
03/15/13 03/15/13 US TREASURY NOTES
912828SK7
525,000.00
0.00
984.38
984.38
DTD 03/15/2012 0.375% 03/15/2015
03/15/13 03/15/13 US TREASURY NOTES
912828SK7
30,000.00
0.00
56.25
56.25
DTD 03/15/2012 0.375% 03/15/2015
03/22/13 03/22/13 FREDDIE MAC GLOBAL NOTES
3134G2WG3
400,000.00
0.00
1,500.00
1,500.00
DTD 08/05/20110.750% 09/22/2014
03/30/13 03/30/13 FANNIE MAE GLOBAL NOTES
3135GOVA8
260,000.00
0.00
162.50
162.50
DTD 02/15/2013 0.500% 03/30/2016
03/31/13 03/31/13 US TREASURY NOTES
912828NZ9
125,000.00
0.00
781.25
781.25
DTD 09/30/2010 1.250% 09/30/2015
03/31/13 03/31/13 US TREASURY NOTES
912828NZ9
310,000.00
0.00
1,937.50
1,937.50
DTD 09/30/2010 1.250% 09/30/2015
Transaction Type Sub -Total
2,120,000.00
0.00
6,009.85
6,009.85
03/27/13 04/01/13 US TREASURY NOTES
912828PU8
385,000.00
385,872.27
728.52
386,600.79 4,180.86 1,565.61 SPEC LOT
DTD 11/15/20100.500%
11/15/2013
Transaction Type Sub -Total 385,000.00 385,872.27 728.52 386,600.79 4,180.86 1,565.61
Managed Account Sub -Total 2,764.85 3,673.18 6,438.03 4,180.86 1,565.61
Total Security Transactions $2,764.85 $3,673.18 $6,438.03 $4,180.86 $1,565.61
�PF` I Account Page 9
WF PFM Asset Management LLC
�x
Managed Account Security Transactions & Interest For the Month Ending March 31, 2013
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Bolded items are forward settling trades.
1
=PF1 Account Page 10
PFM Asset Management LLC