06-30-2014 Investment Performance ReviewVillage of North Palm Beach, Florida
North P
i
Investment Performance Review
Quarter Ended June 30, 2014
Investment Advisors PFM Asset Management LLC
Steven Alexander, CTP, CGFO, CPPT, Managing Director
D. Scott Stitcher, CFA, Senior Managing Consultant
Richard Pengelly, CFA, CTP, Senior Managing Consultant
Gregg Manjerovic, CFA, Portfolio Manager
Rebecca Geyer, CTP, Senior Analyst
One Keystone Plaza, Suite 300
North Front & Market Streets
Harrisburg, PA 1 71 01 -2044
717 - 232 -2723 • 717 - 233 -6073 fax
300 S. Orange Avenue, Suite 1170
Orlando, FL 32801
(407) 648 -2208
(407) 648 -1323 fax
Village of North Palm Beach, Florida
Table of Contents
&T. om
Section A Market Review
Investment Report - Quarter Ended June 30, 2014
Tab II.
Section A Quarterly Summary Report
Section B Investment Portfolio & Performance
Asset Allocation Chart as of June 30, 2014
Tab III. June 30, 2014 PFM Month -End Statement
(statements are available online at www.pfm.com)
This material is based on information obtained from sources generally believed to be reliable and available to the public,
however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general
information purposes only and is not intended to provide specific advice or recommendation. The information contained in this
report is not an offer to purchase or sell any securities.
Table of Contents Section i
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
TAB I
Village of North Palm Beach, Florida
Summary
Treasury prices rose during the second quarter, marking two
consecutive quarters of price rallies —a pattern that has not occurred
since 2012.
Global central banks seem to be going their separate ways in terms of
monetary policy, as the European Central Bank cut interest rates and
added to bank liquidity in an effort to avoid deflation while the Federal
Reserve (Fed) continued to scale back its quantitative easing program.
Geopolitical uncertainty continued to be a primary focus for the
markets, as tensions in Ukraine, Iraq, and Syria caused investors to
move toward assets that are perceived to have less risk.
Economic Snapshot
First - quarter gross domestic product (GDP) contracted at an annual
rate of 2.9% —the first downward move in three years. The harsh
winter weather was a primary contributor. Most economists expect a
recovery as 2014 further unfolds.
The U.S. unemployment rate fell from 6.7% in March to 6.1% at the
end of the second quarter. While the U.S. is adding jobs at a steady
pace, the reduction in unemployment can also be traced to an increase
in the number of Americans who are no longer actively looking for
work.
The housing market continued to show modest strength during the
quarter. New -home sales for May rose 18.6% from the prior month,
marking a six -year high, while existing -home sales rose 4.9% from the
prior month. However, the pace of housing starts remained well below
pre- recession levels. Mortgage applications for purchase are down
17.6% year over year, and mortgage applications for refinancing are
down 56.5% year over year.
PFM Asset Management LLC
Investment Report — Quarter Ended June 30, 2014
Interest Rates
The Fed continued to taper its bond buying program throughout
the quarter, and at its June meeting, the Federal Open Market
Committee (FOMC) cut bond purchases by another $10 billion,
resulting in monthly purchases of $35 billion. The FOMC has
continued to keep the federal funds target rate in a range of zero
to 25 basis points.
Inflation ticked up during the quarter as the Consumer Price Index
rose at its fastest pace in more than a year in May— increasing
twice as much as economists had anticipated. Core prices (which
exclude food and energy prices) gained 2% on an annual basis,
marking the fastest price increase since February 2013 and
matching the Fed's current target for inflation.
The Treasury yield curve flattened over the quarter as
intermediate- and long- maturity bond prices led the rally. This
flattening expresses the current investor outlook that Fed
tightening will be modest by historical standards and inflation will
remain well- contained in coming years.
Sector Performance
Portfolios maintained a modestly defensive maturity structure,
with durations somewhat short of benchmarks. This structure is in
place to reduce the effects of interest rate rises that normally
occur when economic growth accelerates and the Fed moves to
tighten credit.
Federal Agency and corporate sector holdings generally
contributed returns in excess of those on Treasuries. The excess
resulted from the added income generated by these holdings and
from spread narrowing, offsetting the drag on performance that
resulted from the defensive duration position.
Risk premiums on lower -rated corporate bonds and on callable
and mortgage- backed securities narrowed further during the
quarter to the point where there was diminished value relative to
comparable Treasury benchmarks.
Section A -1
Village of North Palm Beach, Florida
Investment Report - Quarter Ended June 30, 2014
Economic Snapshot
Labor f
f
Unemployment Rate
Jun'14
6.1%
6.7%
7.5%
Unemployment Rate (left) vs. Change in Nonfarm Payro l Is (right)
0 o
� Change In Nonfarm Payrolh
Change In Nonfarm Payrolls
Jun'14
288,000
203,000
- Unemployment Rate 350K
8%
300K
0K
22550K
Average Hourly Earnings (YoY)
Jun'14
2.0%
2.1%
2.2%
6%
Personal Income (YoY)
May'14
3.5%
3.3%
MM
4%
50 K
100K
50K
2%
0
Initial Jobless Claims (week)
Jul 11
302,000
332,000
344,000
6/30/11 12/31/11
6/30/12 12/31/12 6/30/13 12/31/13 6/30/14
Real GDP (QoQ SAAR)
2014Q1
-2.9%
2.6 %1
2.5 %z
Real GDP (QoQ)
6.0%
GDP Personal Consumption (QoQ SAAR)
2014Q1
1.0 %
i
L3. %
L8 °/
4.0%
2.0%
Retail Sales (YoY)
Jun'14
4.3%
4.1%
5.9%
o.o °ro
ISM Manufacturing Survey (month)
Jun'14
55.3
-2.0%
-4.0%
Existing Home Sales SAAR (month)
May'14
4.89 mil.
4.59 mil.
5.16 mil.
3/31/11 9/30/11
3/31/12 9/30/12 3/31/13 9/30/13 3/31/14
Inflation / Prices
Personal Consumption Expenditures (YoY)
May'14
1.8%
1.1%
1.3%
consumer Price index
5.0%
CPI (YoY) -Core CPI (YoY)
Consumer Price Index (YoY)
May'14
2.1%
1.5%
4.0%
3.0%
Consumer Price Index Core (YoY)
May'14
2.0%
1.7%
1.6%
2.o °ro
Crude Oil Futures (WTI, per barrel)
Jun 30
$105.37
$101.58
$9
1.0% 1.0%
1116_
0.0%
Gold Futures (oz.)
Jun 30
$1,322
$1,283
$1,224
5/31/11 11/30/11
5/31/12 11/30/12 5/31/13 11/30/13 5/31/14
1. Data as of Fourth Quarter 2013 2. Data as of SecondQuarter2013 Source: Bloomberg
3. Note: YoY =year overyear, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WlI = West Texas Intermediate crude oil
PFM Asset Management LLC Section A -2
Village of North Palm Beach, Florida
3.570
3.0%
2.5%
0 2.0%
m
r 1.5%
1.0%
0.5%
0.0%
3/31/14
U.S. Treasury Note Yields
Investment Report - Quarter Ended June 30, 2014
Investment Rate Overview
4/30/14 5/31/14 6/30/14
2 -Year 5 -Year 10 -Year
U.S. Treasury Yields
3 -month
i
0.02 %7
0.03 %7
Change
Quarter
(0.01%)
6130113
0.03 %7
over Year
(0.01%)
1 -year
0.10 %7
0.11%
(0.01%)
0.15 %7
(0.05 %7)
2 -year
0.46 %7
0.42 %7
0.04 %7
0.36 %7
0.10 %7
5 -year
1.63 %7
1.72 %7
(0.09 %7)
1.40 %7
0.23 %7
10 -year
2.53 %7
2.72 %7
(0.19 %7)
2.49 %7
0.04 %7
30 -year
3.36 %7
3.56 %7
(0.20 %7)
3.50 %7
(0.14 %7)
Source: Bloomberg
PFM Asset Management LLC
3.570
3.0%
2.5%
0 2.0%
m
r 1.5%
1.0%
0.5%
0.0%
3/31/14
U.S. Treasury Yield Curve
570
4%
3%
2
m
r 2%
170
0%
W N W Ui �4
3
o
U.S. Treasury
4/30/14 5/31/14 6/30/14
- 2 -Year ...... • • 5 -Year 10 -Year
Yield Curves as of 6/30/2014
N W
O Cat O
Maturity
Federal Agency Industrial Corporates, A Rated
Section A -3
Village of North Palm Beach, Florida
Investment Report - Quarter Ended June 30, 2014
BofA Merrill Lynch Index Returns
As of 6/30/2014 Returns for Periods ended 6/30/2014
9. Duration and yield are after the indices were rebalanced at month end.
2. Returns are rolling returns. Returns for periods ,greater than one-year are annualised.
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Duration
Yield
3 Month
1 Year
3 Years
Year •
U.S. Treasury
1.93
0.45%
0.27%
0.76%
0.63%
Federal Agency
1.85
0.55%
0.24%
0.87%
0.75%
U.S. Corporates, A -AAA rated
1.95
0.90%
0.49%
2.12%
2.10%
Agency MBS (0 to 3 years)
1.52
0.93%
0.55%
2.68%
1.46%
Municipals
1.73
0.45%
0.34%
1.40%
1.16%
Year •
U.S. Treasury
2.72
0.79%
0.55%
1.16%
1.11%
Federal Agency
2.35
0.80%
0.54%
1.52%
1.15%
U.S. Corporates, A -AAA rated
2.88
1.40%
0.96%
3.45%
2.92%
Agency MBS (0 to 5 years)
3.05
2.04%
1.71%
4.12%
2.52%
Municipals
2.50
0.77%
0.60%
2.25%
1.78%
Master •
or
U.S. Treasury
5.89
1.51%
1.56%
2.29%
3.03%
Federal Agency
3.93
1.34%
1.24%
2.65%
2.18%
U.S. Corporates, A -AAA rated
6.74
2.60%
2.37%
6.58%
5.42%
Agency MBS (0 to 30 years)
4.69
2.61%
2.43%
4.68%
2.79%
Municipals
7.32
2.85%
2.69%
6.54%
5.62%
9. Duration and yield are after the indices were rebalanced at month end.
2. Returns are rolling returns. Returns for periods ,greater than one-year are annualised.
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Village of North Palm Beach, Florida
Disclosures
Investment Report — Quarter Ended June 30, 2014
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC ( PFMAM) at the time of distribution
and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFMAM
cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide
specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities.
Further distribution is not permitted without prior written consent.
PFM Asset Management LLC Section A -5
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
TAB II
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
Quarterly Summary Report
Total Portfolio Value June 30,20141 March 31, 2014
Market Value
Amortized Cost
$8,383,529.06
$8,372,712.47
$9,081,914.94
$9,083,838.98
Fiscal Year 2014
Fiscal Year 2013
Quarterly Interest Income
June 30, 2014
Quarterly Return
Last
Last
Last
Last
Since Inception
Total Return•'•°
June 30, 2014
12 Months
2 Years
3 Years
5 Years
June 30, 2009
Investment Portfolio
0.30%
0.82%
0.56%
0.63%
1.56%
1.16%
Merrill Lynch 1 -3 Year U.S. Treasury Index
0.27%
0.76%
0.55%
0.63%
1.18%
1.18%
Fiscal Year 2013
Current Quarter
Previous Quarter
March 31, 2014
Fiscal Year Realized Gain /Loss on Cost
Current Quarter
Previous Quarter
Effective Duration(Years) s
June 30, 2014
March 31, 2014
Investment Portfolio
Yields
June 30, 2014
March 31, 2014
Investment Portfolio
1.70
1.76
Yield at Market
0.50%
0.52%
Merrill Lynch 1 -3 Year U.S. Treasury Index
1.85
1.84
Yield at Cost
0.57%
0.52%
Portfolio Duration % of Benchmark Duration
92%
96%
0.75%
0.50%
E 0.25%
0 0.00%
-0.25%
-0.50%
0.50
Quarter Total Return Comparison
Quarter Ended 06/30/14
Investment Portfolio nnL 1 -3 Year U.S Treasury Index
0.30% J.— -
1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
e
Quarter Ended 06/30/14
Investment Portfolio ML 1 -3 Year U.S. Treasury Index
1.16% * 01.18%
1.50 2.00
Fff.,fi1 r),— fi — /Vco %
Notes:
1. In order to comply with GASB accrual accounting reporting requirements. End of quarter trade-date market values of portfolio holdings, including accrued interest.
2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). Quarterly returns are presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results.
3. Since inception the benchmark has been the Merrill Lynch 1 -3 Year U.S. Treasury Note Index.
4. Merrill Lynch Indices provided by Bloomberg Financial Markets.
5. Includes money market fund /cash in performance and duration computations.
PFM Asset Management LLC Section A - 1
Current Quarter
Previous Quarter
Fiscal Year 2014
Fiscal Year 2013
Quarterly Interest Income
June 30, 2014
March 31, 2014
Fiscal Year Interest Income
Year to Date
Year to Date
Investment Portfolio
$25,865.50
$14,331.94
Investment Portfolio
$73,654.24
$76,459.33
TD Bank Money Market Fund
2.02
1.51
TD Bank Money Market Fund
4.27
5.96
Total
$25,867.52
$14,333.45
Total
$73,658.51
$76,465.29
Current Quarter
Previous Quarter
Fiscal Year 2014
Fiscal Year 2013
Quarterly Realized Gain /Loss on Cost
June 30, 2014
March 31, 2014
Fiscal Year Realized Gain /Loss on Cost
Year to Date
Year to Date
Investment Portfolio
($8,071.12)
($14,801.39)
Investment Portfolio
($19,587.71)
(15,189.44)
Notes:
1. In order to comply with GASB accrual accounting reporting requirements. End of quarter trade-date market values of portfolio holdings, including accrued interest.
2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute's Global Investment Performance Standards (GIPS). Quarterly returns are presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results.
3. Since inception the benchmark has been the Merrill Lynch 1 -3 Year U.S. Treasury Note Index.
4. Merrill Lynch Indices provided by Bloomberg Financial Markets.
5. Includes money market fund /cash in performance and duration computations.
PFM Asset Management LLC Section A - 1
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
Executive Summary
PORTFOLIO STRATEGY
➢ The Village's Investment Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, commercial paper,
municipal obligations, and high quality corporate securities.
➢ PFM continued to actively manage the Investment Portfolio during the second quarter and found value in the market, taking
advantage of market inefficiencies or changes in economic outlook. As a result the Portfolio realized $1,260 in gains on
sales (based on amortized cost) during the quarter. PFM is continually in the market monitoring for opportunities to add
value to the Portfolio.
➢ The Investment Portfolio's quarterly total return performance was 0.30 %, outperforming the benchmark's performance of
0.27% by 0.03 %. Over the past year, the Portfolio earned 0.82 %, versus 0.76% for the benchmark.
➢ U.S. Treasury yields moved in somewhat random fashion, despite generally upbeat economic news. The long- awaited
increase in rates failed to materialize and continued to confound investment managers. Uncertainty around future Fed
action, in terms of the timing and pace of eventual rate increases, posed a significant challenge in assessing the
attractiveness of current yields.
➢ PFM seeks to add value in a variety of ways: duration management, adjusting maturities along the yield curve, emphasizing
sectors that offer the best value, and careful issue -level analysis and security selection. This is supported by both
quantitative and qualitative assessments of market conditions and credit quality.
➢ We believe the Fed is nearing the point where it has engineered the achievement of its dual mandate — full employment with
price stability. Economic growth appears to be accelerating, accompanied by early signs of an uptick in inflation. The
unwinding of the Fed's quantitative easing program of bond purchases has gone remarkably smoothly, opening the door to
their next possible move — a Fed rate hike.
➢ Higher interest rates triggered by anticipated Fed action are widely expected in the future. The timing and pace of how
interest rates rise will determine the optimal investment strategy. Since rising rates can result in unrealized market losses,
we remain somewhat defensive. But, the steep yield curve offers considerably higher yields for even modest maturity
extension. Balancing the benefit of higher yields available on longer maturities today against the negative impact of
potentially rising rates in the future will be a difficult and dynamic undertaking, requiring frequent reassessments of strategy.
➢ Market volatility has been extremely low in the financial markets recently, encouraging risk taking. This extremely low level
of volatility is likely not sustainable indefinitely. Any increase in volatility should create more trading opportunities,
accentuating the role of active management.
PFM Asset Management LLC Section B - 1
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
Investment Portfolio Composition and Credit Quality Characteristics
Security Type'
June 30, 2014
% of Portfolio
March 31, 2014
% of Portfolio
U.S. Treasuries
$4,728,654.54
56.4%
$4,968,964.69
54.7%
Federal Agencies
1,145,001.22
13.7%
915,516.42
10.1%
Commercial Paper
399,727.80
4.8%
999,513.00
11.0%
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
121,492.00
1.4%
121,094.33
1.3%
Corporate Notes /Bonds
1,891,004.53
22.6%
1,998,899.55
22.0%
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
97,648.97
1.2%
77,926.95
0.9%
Totals
$8,383,529.06
100.0%
$9,081,914.94
100.0%
U.S. Treasuries
56.40%
Portfolio Composition Federal Agency
as of 06/30/14
Obligations
Commercial
Paper
4.77%
unicipal
)ligations
1.45%
-porate
s /Bonds
!.56%
Fund /Cash
1.16%
terr
2.4'
A-
4.24
A
6.68%
A
A -1 (Short- Credit Quality Distribution
term) as of 06/30/14
94101.
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.
3.63%
1.82%
AA+
72.72%
PFM Asset Management LLC Section B - 2
Village of North Palm Beach, Florida
Investment Report - Quarter Ended June 30, 2014
Investment Portfolio Maturity Distribution
Maturity Distribution'
June 30, 2014
March 31, 2014
Overnight (Monedy Market Fund)
$97,648.97
$77,926.95
Under 6 Months
399,727.80
999,513.00
6 - 12 Months
201,306.03
201,016.33
1 - 2 Years
3,770,238.62
2, 950, 599.98
2 - 3 Years
3,914,608.64
4,456,860.39
3 - 4 Years
0.00
395,998.29
4 - 5 Years
0.00
0.00
5 Years and Over
0.00
0.00
Totals $8,383,629.06 $9,081,914.94
F VI IIVIIV IVIQIUI Ily LJIJII ILJUIIVI I
11%
5% 2% 2%
Under 6 Months 6 - 12 Months
Notes:
1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.
■June 30, 2014
®March 31, 2014
4 - :.J T udIJ :.J T CdIJ dl lu %Jvt
PFM Asset Management LLC Section B - 3
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
Investment Portfolio Maturity Distribution versus the Benchmark'
25.0%
20.0%
15.0%
I
10.0%
5.0%
0.0%
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
State and /or Local
Government De "*
and /or Tax Exen
Debt
0.66%
Corporate Notes
10.38%
Commercial Pal
2.20%
Feder
Instrument u„ 1,11
6.29%
Money Market
Mutual Funds
Interest Bearing
Checkiniz or Savinjzs
Florida SBA Prime
Fund and Fund B
2.70%
States
�. , ., ecurities
26.01%
State and /or Local Government Debt
Amortized Cost
Allocation
Permitted
In
Security Type
(Includes Interest)
Percentage
Notes by Policy
Compliance
Florida SBA Prime Fund and Fund B
490,258.62
2.70%
2 25%
YES
United States Treasury Securities
4,726,958.85
26.01%
100%
YES
United States Government Agency Securities
-
0.00%
50%
YES
Federal Instrumentalities
1,142,211.18
6.29%
50%
YES
Mortgage- Backed Securities
-
0.00%
0%
YES
Certificates of Deposit
-
0.00%
100%
YES
Commercial Paper
399,692.44
2.20%
15%
YES
Corporate Notes
1,885,510.89
10.38%
25%
YES
State and /or Local Government Debt
120,690.14
0.66%
20%
YES
and /or Tax Exempt Debt
Money Market Mutual Funds
248,575.98
1.37%
50%
YES
Intergovernmental Investment Pool
-
0.00%
25%
YES
Interest Bearing Checking or Savings Account
9,156,675.36
50.39% 2
100%
YES
Village Managed
9,797,861.04
53.92%
PFM Managed
8,372,712.42
46.08%
Total
$18,170,573.46
100.00%
Notes:
1. All Assets.
2. These Accounts are managed by the Village.
'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis
Amortized Cost Allocation Permitted In
Individual Issuer Breakdown (Includes Interest) Percentage Notes by Policy Compliance
Government National Mortgage Association (GNMA)
-
Federal Farm Credit Bank (FFCB)
-
Federal Home Loan Bank (FHLB)
427,775.91
Federal National Mortgage Association (FNMA)
714,435.27
Federal Home Loan Mortgage Corporation (FHLMC)
-
Rabobank USA Fin Corp Commercial Paper
199,864.44
Bank of Tokyo Mitsubishi Commercial Paper
199,828.00
Bank of New York Mellon Corporate Notes
281,846.28
Toyota Corporate Notes
100,072.12
Wells Fargo & Company Corporate Notes
150,224.23
General Electric Corporate Notes
150,285.04
Berkshire Hathaway Corporate Notes
100,216.44
American Honda Corporate Notes
69,998.99
John Deere Corporate Notes
100,136.81
Coca -Cola Corporate Notes
50,017.70
AT &T Corporate Notes
201,189.69
IBM Corporate Notes
200,092.74
PepsiCo Corporate Notes
150,327.26
JP Morgan Chase & Co. Corporate Notes
106,774.86
Walt Disney Corporate Notes
224,328.73
California State Taxable GO Bonds
120,690.14
Interest Bearing Checking /Savings Acct -Wells Fargo
6,632,614.88
Interest Bearing Checking /Savings Acct -Chase
11,572.92
Interest Bearing Checking /Savings Acct- BankUnited
2,512,487.56
Money Market Fund - TD Bank Sweep Account
97,648.92
Money Market Fund - Wells Fargo Advantage Fund
150,927.06
Florida Prime
465,774.42
SBA Fund B
24,484.20
ivoies:
1. All Assets.
2. These Accounts are managed by the Village.
'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis
0.00%
100%
YES
0.00%
10%
YES
2.35%
10%
YES
3.93%
10%
YES
0.00%
10%
YES
1.10%
5%
YES
1.10%
5%
YES
1.55%
5%
YES
0.55%
5%
YES
0.83%
5%
YES
0.83%
5%
YES
0.55%
5%
YES
0.39%
5%
YES
0.55%
5%
YES
0.28%
5%
YES
1.11%
5%
YES
1.10%
5%
YES
0.83%
5%
YES
0.59%
5%
YES
1.23%
5%
YES
0.66%
5%
YES
36.50%
2
50%
YES
0.06%
2
50%
YES
13.83%
2
50%
YES
0.54%
33%
YES
0.83%
2
33%
YES
2.56%
2
25%
YES
0.13%
2
N/A
YES
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
TAB III
Village of North Palm Beach, Florida Investment Report - Quarter Ended June 30, 2014
Insert Month End Statement here to complete the report.
In consideration of the safety and security of our client's
sensitive information, PFM Asset Management's
compliance department does not allow the inclusion of
month end statements in any electronic communication
including this version of the quarterly performance report.
Statements are available online at www.pfm.com login
and click on the link to "Monthly Statements" on the left
side of the screen.
The most current statements are always available to the
client online, however they can only be accessed with the
designated username and password.
And
NCustomer Service
PO Box 11813
Harrisburg, PA 17108 -1813
ACCOUNT STATEMENT
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 http: / /www.pfm.com Customer Service 1- 717 - 232 -2723
m V
......
WF
Account Statement
Important Disclosures For the Month Ending June 30, 2014
This statement is for general information purposes only and is not
Tax Reporting Cost data and realized gains / losses are provided for
Average maturity represents the average maturity of all securities and
intended to provide specific advice or recommendations. PFM Asset
informational purposes only. Please review for accuracy and consult your
investments of a portfolio, determined by multiplying the par or
Management LLC ("PFM") is an investment advisor registered with the
tax advisor to determine the tax consequences of your security transactions.
principal value of each security or investment by its maturity (days or
Securities and Exchange Commission, and is required to maintain a
PFM does not report such information to the IRS or other taxing authorities
years), summing the products, and dividing the sum by the total
written disclosure statement of our background and business experience.
and is not responsible for the accuracy of such information that may be
principal value of the portfolio. The stated maturity date of mortgage
If you would like to receive a copy of our current disclosure statement,
required to be reported to federal, state or other taxing authorities.
backed or callable securities are used in this statement. However the
please contact Service Operations at the address below.
Financial Situation In order to better serve you, PFM should be promptly
actual maturity of these securities could vary depending on the level or
Proxy Voting PFM does not normally receive proxies to vote on behalf of
notified of any material change in your investment objective or financial
prepayments on the underlying mortgages or whether a callable
its clients. However, it does on occasion receive consent requests. In the
situation.
security has or is still able to be called.
event a consent request is received the portfolio manager contacts the
Callable Securities Securities subject to redemption prior to maturity may
Monthly distribution yield represents the net change in the value of one
client and then proceeds according to their instructions. PFM's Proxy
be redeemed in whole or in part before maturity, which could affect the yield
share (normally $1.00 per share) resulting from all dividends declared
Voting Policy is available upon request by contacting Service Operations
represented.
during the month by a fund expressed as a percentage of the value of
at the address below.
Portfolio The securities in this portfolio, including shares of mutual funds,
one share at the beginning of the month. This resulting net change is
Questions About an Account PFM's monthly statement is intended to
are not guaranteed or otherwise protected by PFM, the FDIC (except for
then annualized by multiplying it by 365 and dividing it by the number of
detail our investment advisory activity as well as the activity of any
certain non-negotiable certificates of deposit) or any government agency.
calendar days in the month.
accounts held by clients in pools that are managed by PFM. The custodian
Investment in securities involves risks, including the possible loss of the
YTM at Cost The yield to maturity at cost is the expected rate of return,
bank maintains the control of assets and executes (i.e., settles) all
amount invested.
based on the original cost, the annual interest receipts, maturity value
investment transactions. The custodian statement is the official record of
Rating Information provided for ratings is based upon a good faith inquiry of
and the time period from purchase date to maturity, stated as a
security and cash holdings and transactions. PFM recognizes that clients
selected sources, but its accuracy and completeness cannot be guaranteed.
percentage, on an annualized basis.
may use these reports to facilitate record keeping and that the custodian
Shares of some money market and TERM funds are marketed through
YTM at Market The yield to maturity at market is the rate of return,
bank statement and the PFM statement should be reconciled and
representatives of PFM's wholly owned subsidiary, PFM Fund Distributors,
based on the current market value, the annual interest receipts,
differences resolved. Many custodians use a settlement date basis which
Inc. PFM Fund Distributors, Inc. is registered with the SEC as a
maturity value and the time period remaining until maturity, stated as a
may result in the need to reconcile due to a timing difference.
broker/dealer and is a member of the Financial Industry Regulatory
percentage, on an annualized basis.
Account Control PFM does not have the authority to withdraw funds from
Authority ("FINRA") and the Municipal Securities Rulemaking Board
Managed Account A portfolio of investments managed discretely by
or deposit funds to the custodian. Our clients retain responsibility for their
("MSRB"). You may reach the FINRA by calling the FINRA Regulator Public
PFM according to the clients specific investment policy and
internal accounting policies; implementing and enforcing internal controls
Disclosure Hotline at 1-888-289-9999 or at the FINRA Regulation Internet
requirements. The investments are directly owned by the client and
and generating ledger entries or otherwise recording transactions.
website address www.nasd.com. A brochure describing the FINRA
held by the client's custodian.
Market Value Generally, PFM's market prices are derived from closing bid
Regulation Public Disclosure Program is also available from the FINRA
Unsettled Trade A trade which has been executed however the final
prices as of the last business day of the month as supplied by Interactive
upon request.
consummation of the security transaction and payment has not yet
Data, Bloomberg or Telerate. Where prices are not available from
Key Terms and Definitions
taken place.
generally recognized sources the securities are priced using a yield-based
Dividends on money market funds consist of interest earned, plus any
matrix system to arrive at an estimated market value. Prices that fall
discount ratably amortized to the date of maturity, plus all realized gains and
Please review the detail pages of this statement carefully. If you think
between data points are interpolated. Non-negotiable FDIC-insured bank
losses on the sale of securities prior to maturity, less ratable amortization of
your statement is wrong, missing account information, or if you need
certificates of deposit are priced at par. Although PFM believes the prices
any premium and all accrued expenses to the fund. Dividends are accrued
more information about a transaction, please contact PFM within 60
to be reliable, the values of the securities do not always represent the
daily and may be paid either monthly or quarterly. The monthly earnings on
days of receipt. If you have other concerns or questions regarding your
prices at which the securities could have been bought or sold. Explanation
this statement represent the estimated dividend accrued for the month for
account you should contact a member of your client management team
of the valuation methods for money market and TERM funds is contained
any program that distributes earnings on a quarterly basis. There is no
or PFM Service Operations at the address below.
in the appropriate fund information statement.
guarantee that the estimated amount will be paid on the actual distribution
PFM Asset Management LLC
Amortized Cost The original cost of the principal of the security is
date.
Attn: Service Operations
adjusted for the amount of the periodic reduction of any discount or
Current Yield is the net change, exclusive of capital changes and income
One Keystone Plaza, Suite 300
premium from the purchase date until the date of the report. Discount or
other than investment income, in the value of a hypothetical fund account
N. Front & Market Sts
premium with respect to short term securities (those with less than one
with a balance of one share over the seven-day base period including the
Harrisburg, PA 17101
year to maturity at time of issuance) is amortized on a straightline basis.
statement date, expressed as a percentage of the value of one share
Such discount or premium with respect to longer term securities is
(normally $1.00 per share) at the beginning of the seven-day period. This
amortized using the constant yield basis.
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.
Opening Market Value
Maturities /Calls
Principal Dispositions
Principal Acquisitions
Unsettled Trades
Change in Current Value
Closing Market Value
Interest/Dividends /Coupons Received
Less Purchased Interest Related to Interest/Coupons
Plus Net Realized Gains /Losses
Total Cash Basis Earnings
Ending Amortized Value of Securities
Ending Accrued Interest
Plus Proceeds from Sales
Plus Proceeds of Maturities /Calls /Principal Payments
Plus Coupons /Dividends Received
Less Cost of New Purchases
Less Beginning Amortized Value of Securities
Less Beginning Accrued Interest
Total Accrual Basis Earnings
Managed Account Summary Statement
For the Month Ending June 30, 2014
$8,279,751.96
Maturities /Calls
0.00
Sale Proceeds
(1,174,290.21)
Coupon /Interest /Dividend Income
1,172,397.66
Principal Payments
0.00
Security Purchases
(11,984.67)
Net Cash Contribution
Reconciling Transactions
$8,265,874.74
13,479.69 Closing Cash Balance
(1,433.57)
2,155.71
$14,201.83
8,255,058.15
20,005.35
1,174,800.37
0.00
12,969.53
(1,173,831.23)
(8,259,230.87)
(23,684.61)
$6,086.69
0.00
1,174,800.37
12,969.53
0.00
(1,173,831.23)
0.00
0.00
$97,648.97
�
A1, Account 61350001 Page 1
WPFM Asset Management LLi C
�i
AMMM
Portfolio Summary and Statistics
Description
Par Value
Market Value
Percent
U.S. Treasury Bond / Note
4,650,000.00
4,720,480.75
57.10
Municipal Bond / Note
120,000.00
121,242.00
1.47
Federal Agency Bond / Note
1,140,000.00
1,143,442.30
13.83
Corporate Note
1,841,000.00
1,880,981.89
22.76
Commercial Paper
400,000.00
399,727.80
4.84
Managed Account Sub -Total
8,151,000.00
8,265,874.74
100.00%
Accrued Interest
20,005.35
Total Portfolio
8,151,000.00
8,285,880.09
Unsettled Trades
47.22%
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
For the Month Ending 3une 30, 2014
Paper
tote
nd /
Note
US TSY Bond / Noted 1.47%
57.10%
Characteristics
Yield to Maturity at Cost 0.57%
Yield to Maturity at Market 0.50%
Duration to Worst 1.78
Weighted Average Days to Maturity 691
=PF,Nf Account 61350001 Page 2
PFM Asset Management LLC
Managed Account Issuer Summary
Total $8,265,874.74 100.000/0
AA-
3.64%
AA+
72.77%
For the Month Ending June 30, 2014
A
4%
5%
4%
2%
2%
2%
Account 61350001 Page 3
PFM Asset Management LLC
Market Value
Issuer
of Holdings
Percent
AMERICAN HONDA FINANCE
70,411.60
0.85
AT &T
200,634.20
2.43
BANK OF NEW YORK
279,029.19
3.38
BERKSHIRE HATHAWAY INC
100,536.70
1.22
COCA -COLA COMPANY
49,954.50
0.60
DEERE & COMPANY
100,484.60
1.22
FANNIE MAE
716,058.20
8.65
FEDERAL HOME LOAN BANKS
427,384.10
5.17
GENERAL ELECTRIC CO
151,361.55
1.83
IBM CORP
200,030.80
2.42
JP MORGAN CHASE & CO
105,999.90
1.28
MITSUBISHI UFJ FINANCIAL GROUP INC
199,846.00
2.42
PEPSICO, INC
149,799.00
1.81
RABOBANK NEDERLAND
199,881.80
2.42
STATE OF CALIFORNIA
121,242.00
1.47
THE WALT DISNEY CORPORATION
221,238.20
2.68
TOYOTA MOTOR CORP
100,550.80
1.22
UNITED STATES TREASURY
4,720,480.75
57.10
WELLS FARGO & COMPANY
150,950.85
1.83
Total $8,265,874.74 100.000/0
AA-
3.64%
AA+
72.77%
For the Month Ending June 30, 2014
A
4%
5%
4%
2%
2%
2%
Account 61350001 Page 3
PFM Asset Management LLC
Managed Account Detail of Securities Held
For the Month Ending June 30, 2014
Security Type/ Description
S &P
Moody's
Trade
Settle
Original
YTM
Accrued
Amortized
Market
Dated Date /Coupon /Maturity
U.S. Treasury :. Note
CUSIP
Par Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
US TREASURY NOTES
475,000.00
AA+
Aaa
06/02/14
06/03/14
477,560.55
0.67
1,733.68
477,486.87
477,115.18
DTD 01/31/2012 0.875% 01/31/2017
AMpFA1' Account 61350001 Page 4
WF PFM Asset Management LLC
PF
Managed Account Detail of Securities Held For the Month Ending June 30, 2014
X"M" + . � "^T,+vM y'.y px -2T;'f m'•RT","'; ..�'.` {: FrvidY.A L`".S"� *.F,: .;���su`rt "k ^1hC'S!k@'five 3"F *':�' }
O4RT ALM BEACHxINVESTMENT PORTFOLIO 6:13500:01. �U, � „�,
Security Type /Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
US TREASURY NOTES
100,000.00 A A3 03/31/14 04/03/14 106,953.00 0.85 898.06 105,876.80 105,999.90;
NOTES
DTD 10/31/2005 5.300% 10/30/2015
=PFtif Account 61350001 Page 5
WPPM Asset Management LLC
F$
Managed Account Detail Of Securities Held For the Month Ending June 30, 2014
e,.,. - °n-v°c .*�'.� rc -m ;x.�' a".M"!F , �"�`i, � t `�`F• +;�-; ,�^�m.� ^�.�.-- <s��K.,� :7 r *�- z.ma a.^.,�n<s;r.. _ '^'._.r a. „-�,..
:NORTH.; PALM: - BEACH�INUEST.,MENT� PORTFOLIO - n.61350001 {„ ;�; { � � � � .: =�
' °>.�...,,..,� �oLs.nd....��:ass,':�.'�1 . �s. m�z .�..�nr...,a�,.�..�.n�„sa.�a• �. w.,. �., �,.... �; �. �..,..,., a�.. k.° aL;: a,. s.,. e..... c. ��,;., m�.,,, �,.. �., w�' G�. ,,a���,._.,.,....,,,,.rrk....., raw.: a. a.., w.. �,.,,..: a�' �c...,..,... a.. w,.. z.„.... ,..,.�..<,„.,.��..,_s,e..,_,„._ _,.,.m�.�.,.. .._z...as:.,... _.... ,,.,.,r .. <._...,._,,..,.b....�.....,..- ..._...>. �.. � ,...,...�,..r,..,,e�.....:.�..�
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
BANK OF NEW YORK MELLON
200,000.00 A -1 P -1 05/12/14 05/12/14 199,761.33 0.24 0.00 199,828.00 199,846.00
-- 0.000% 11/07/2014
PEW Account 61350001 Page 6
_' PFM Asset Management LL+C
�PFM
For the Month Ending June 30 2014
=PFAf Account 61350001 Page 7
WF PFM Asset Management LLC
Managed Account WC1,01111 of Sewr!L!CS Held
I
Security Type/ Description
S&P Moody's Trade Settle Original
YTM
Accrued
Amortized
Market
Dated Date/Coupon/Maturity CUSIP
Commercial Paper
Par Rating Rating Date Date Cost
at Cost
Interest
Cost
Value
Security Type Sub-Total
400,000.00 399,564.66
0.22
0.00
399,692.44
399,727.80
Managed Account Sub-Total
8,151,000.00 8,296,931.57
0.57
20,005.35
8,255,058.15
8,265,874.74
Securities Sub-Total
$811511000.00 $8,296,931.57
0.57%
$20,005.35
$8,255,058.15
$8,265,874.74
Accrued Interest
$20,005.35
Total Investments
$8r285,880.09
=PFAf Account 61350001 Page 7
WF PFM Asset Management LLC
a- F
Security Type /Description
Dated Date /Coupon /Maturity CUSIP
Managed Account Fair Market Value & Analytics
Next Call Market Market
Par Broker Date Price Value
For the Month Ending June 30, 2014
Unreal G/L Unreal G/L Effective Duration YTM
On Cost Amort Cost Duration to Worst at Mkt
US TREASURY NOTES
395 .000.00 BARCLAYS '
100.59
397,345.51
1,496.88
1,575.15
2.70
2.70
0.78
DTD 03/31/20121.000% 03/31/2017_
Security Type Sub -Total 4,650,000.00 4,720,480.75 (35,649.91) 1,695.69 2.02 2.02 0.48
Municipal Bond I Note
Account 61350001 Page 8
PFM .Asset Management LLC
L
Managed Account Fair Market Value & Analytics
For the Month Ending June 30, 2014
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
Municipal Bond / Note
CA ST TAXABLE GO BONDS
150,000.00 CITIGRP
100.91
151,361.55
1,361.55
1;361.55
0.25
2.01
0.44
DTD 07/12/2013 0.877% 07/12/2016
,,%1, Account 61350001 Page 9
WPFM Asset Management LLC
,E
AM PFM
Managed Account Fair Market Value & Analytics For the Month Ending June 30, 2014
Security Type/ Description
Next Call Market
Market
Unreal G/L
Unreal G/L
Effective
Duration
YTM
Dated Date /Coupon /Maturity
Corporate
CUSIP
Par Broker
Date Price
Value
On Cost
Amort Cost
Duration
to Worst at Mkt
WELLS FARGO & COMPANY (FLOATING)
200,000.00 BTM_DIR 99.92 199,846.00 84.67 18.00 0.36 0.36 0.21
PAPER
-- 0.000% 11/07/2014
Security Type Sub -Total 400,000.00 399,727.80 163.14 35.36 0.35 0.35 0.19
Managed Account Sub -Total 8,151,000.00 8,265,874.74 (31,056.83) 10,816.59 1.70 1.78 0.50
Securities Sub -Total $8,151,000.00 $8,265,874.74 ($31,056.83) $10,816.59 1.70 1.78 0.50%
Accrued Interest $20,005.35
Total Investments $8,285,880.09
-pg,N.f Account 61350001 Page 10
'' PFM Asset Management LLC
PF&
Managed Account Security Transactions & Interest For the Month Ending June 30, 2014
Transaction Type
Principal
Accrued
Realized G/L Realized G/L Sale
Trade
Settle
Security Description
CUSIP
Par
Proceeds
Interest
Total
Cost Amort Cost Method
06/02/14
' 06103114
US TREASURY NOTES
100,000.00
106,249.00
485.83
106,734.83
(704.00) 33.62 SPEC LOT
STEARNS) NOTES
DTD 10/31/2005 5.300% 10/30/2015
iCtAf Account 61350001 Page 11
WPFM Asset Management LLC
Managed Account Security Transactions & Interest For the Month Ending June 30, 2014
Transaction Type
Principal
Accrued
Realized G/L
Realized G/L Sale
Trade Settle Security Description CUSIP
Par Proceeds
Interest
Total
Cost
Amort Cost Method
06/02/14 '- 06/03/14 WELLS FARGO & COMPANY COMM 9497FIH12
200:000.00 199,945.11
0.00
199,945.11
152.78
33.78 SPEC LOT
PAPER
-- 0.000% 08/18/2014
Transaction Type Sub -Total
1,175,000.00 1,174,290.21
510.16
1,174,800.37
2,155.71
2,287.86
Managed Account Sub -Total
1,892.55
12,046.12
13,938.67
2,155.71
2,287.86
Total Security Transactions $1,892.55 $12,046.12 $13,938.67
$2,155.71 $2,287.86
A1, Account 61350001 Page 12
=' PFM Asset Management LLC
-