09-30-2014 Investment Performance ReviewVillage of North Palm Beach, Florida
- ----- North Palrp,-
Investment Performance Review
Quarter Ended September 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 September 30, 2014
Tab II.
Section A Quarterly Summary Report
Section B Investment Portfolio & Performance
Asset Allocation Chart as of September 30, 2014
Tab III. September 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 September 30, 2014
TAB I
Village of North Palm Beach, Florida
Summary
While the U.S. economy continued its recovery during the quarter,
global unrest and uncertainty about future central bank policy —
including actions of the Federal Reserve (Fed) — resulted in volatility in
the bond and equity markets.
Ten -year Treasury bond yields were little changed compared to the
end of the previous quarter, although yields experienced larger
movements throughout the quarter. On the other hand, shorter -term
rates generally rose while longer term rates fell modestly.
Geopolitical uncertainty continued to move the markets. Military
conflicts in Ukraine and the Middle East, as well as weaker economic
data in the euro zone and various emerging markets such as China and
Brazil, factored significantly in investor sentiment.
Economic Snapshot
Second - quarter gross domestic product (GDP) rose at a revised annual
rate of 4.6 %, driven by increased consumption, inventories, exports,
residential and nonresidential investment, and local government
spending.
The U.S. unemployment rate fell from 6.1% in June to 5.9% in
September. While job growth has been impressive, wage growth has
been weak and other measures such as the labor force participation
rate and the number of part time workers for economic reasons
indicate lingering levels of underutilization.
Housing market data was also a "glass half empty, glass half full"
scenario, as housing - related indicators experienced a series of ups and
downs throughout the quarter. Most recently, new -home sales
reached the highest level since 2008, while existing -home sales had a
small, unexpected decline.
Investment Report — Quarter Ended September 30, 2014
Interest Rates
The Federal Open Market Committee (FOMC) reaffirmed that its
quantitative easing bond purchase program will end in October. At
the same time, the FOMC released updated assessments of where
individual participants judged the appropriate level for the federal
funds rate at the end of the next few calendar years. Those
assessments showed a surprisingly fast upward trajectory for
short -term rates that are inconsistent with both Fed Chair Janet
Yellen's public comments and persistently low current market
rates.
Inflation (as measured by the Consumer Price Index) unexpectedly
decreased month over month in August. This marked the first
decline in almost a year and a half. Inflation continues to run
below the Fed's 2% target rate.
Yields on intermediate - maturity (two- to five -year) Treasuries
ended the quarter higher. Surprisingly, this was not the case for
longer maturities (10 -30 years); instead, rates continued to fall
modestly, causing a flattening of the Treasury yield curve.
Sector Performance
Fixed - income performance was very modest for the quarter —or in
some cases modestly negative —as income was offset by interest
rate increases for short- and intermediate -term maturities across
most sectors. The exceptions were longer- maturity Treasury,
Agency, and municipal bonds, where yields actually fell modestly.
Spreads generally widened in the quarter. While the impact was
modest for the Agency sector, spread widening in corporates
negatively affected performance in the sector. Still, corporates
have been one of the best performing sectors over the past one -,
three -, and five -year periods.
Short -term markets continued to be driven by the Fed as well as
new regulations affecting banks and money market funds.
PFM Asset Management LLC Section A -1
Village of North Palm Beach, Florida
Investment Report - Quarter Ended September 30, 2014
Economic Snapshot
Labo 14 Sep 2*13 M
Unemployment Rate Sep'14 5.9% 6.1% 7.2% Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
10% _ Change In Nan Farm Payrolls 400K
Change In Non -Farm Payrolls 14 248,000 267,000 164,000 - UnemploymentRale 350K
iIi 8% 300K
0K
Average Hourly Earnings (YoY) Sep'14 2.0% 1.9% 2.0% 6% 22550K
M 15OK
Personal Income (YoY) Aug'14 4.3% 4.1% 2.11 4% 100K
50K
2% 0
Initial Jobless Claims (week) Sep 26 287,000 316,000 318,000 9/30/11 3/31/12 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14
•
Real GDP (QoQ SAAR) 2014Q2 4.6% -2.1 %1 4.5 %2 5.0 ReaIGDP (QoQ)
4.0
GDP Personal Consumption (QoQ SAAR) 2014Q2 3.0%
2.0
Retail Sales (YoY) Aug'14 5.0% 4.4% 3.2% 1.0%
0.0
IS rvey (month 55.3 20%
3.0%
Existing Home Sales SAAR (month) Aug'14 5.05 mil. 5.03 mil. 5.26 mil. 6/30/11 12/31/11 6/30/12 12/31/12 6/30/13 12/31/13 6/30/14
Inflation
Personal Consumption Expenditures (YoY) Aug'14 1.5% 1.6% 1.0% Consumer Price Index
5.0%
-CPI (YoY) -Core CPI (YoY)
Consumer Price Index V�00"14 2.1% go 4.0%
3.0%
Consumer Price Index Core (YoY) Aug'14 1.7% 1.9% 1.7% 2.0%
0 1.0%
Crude Oil Futures (WTI, per barrel) Sep 30 $91.16 $105.37 $102.
0.0
Gold Futures (oz.) Sep 30 $1,211 $1,322 $1,327 8/31/11 2/29/12 8/31/12 2/28/13 8/31/13 2/28/14 8/31/14
1. Data as of First Quarter 2014 2. Data as of Third Quarter 2013
Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil
Source: Bloomber
PFM Asset Management LLC Section A -2
Village of North Palm Beach, Florida
3.570
3.0%
2.5%
2.0%
m
} 1.5%
1.0%
0.5%
0.0%
6/30/14
U.S. Treasury Note Yields
Investment Report - Quarter Ended September 30, 2014
Investment Rate Overview
7/31/14 8/31/14 9/30/14
- 2 -Year 5 -Year 10 -Year
U.S. Treasury Yields
Maturity
3 -month
i
0.02 %7
i
0.02 %7
Change
Quarter
0.00 %7
i
0.01%
Change
0.01%
1 -year
0.10 %7
0.10 %7
0.00 %7
0.09 %7
0.01%
2 -year
0.57 %7
0.46 %7
0.11%
0.32 %7
0.25 %7
5 -year
1.76 %7
1.63 %7
0.13 %7
1.38 %7
0.38 %7
10 -year
2.49 %7
2.53 %7
(0.04 %7)
2.61%
(0.12 %7)
30 -year
3.20 %7
3.36 %7
(0.16 %7)
3.69 %7
(0.49 %7)
Source: Bloomber
PFM Asset Management LLC
4%
3%
-a 2%
m
170
0%
W N W T �I
0
U.S. Treasury Yield Curve
570
4%
3%
a
} 2%
170
0%
WNW Cfl J
O
Maturity
U.S. Treasury Federal Agency
O
Maturity
September 30, 2014 June 30, 2014
Yield Curves as of 9/30/2014
W
O
September 30, 2013
Ul O
Industrial Corporates, A Rated
Section A -3
Village of North Palm Beach, Florida
Investment Report - Quarter Ended September 30, 2014
BofA Merrill Lynch Index Returns
As of 9/30/2014 Returns for Periods ended 9/30/2014
Year •
U.S. Treasury
ge
U.S. Corporates, A -AAA rated
Duration
1.91
1.96
Yield
0.59%
0.71%
3 Month
0.03%
0.07%
0.02%
1 Year
0.50%
0.63%
3 Years
0.48%
0.65%
1.14%
1.39%
2.28%
�m
1 ■
(0.14 %)
-
Municipals
1.81
0.54%
0.12%
1.05%
1.04%
Year •
U.S. Treasury
2.71
0.97%
(0.06 %)
64%
63%
Federal Agency
2.36
0.97%
99%
t2..
U.S. Corporates, A -AAA rated
2.85
1.65%
(0.10 %)
16%
!0.
.06%
Agency MBS (0 to 5 years)
Municipals
2.58
0.83%
0.31%
1.88%
1.56%
Indices Master
or
U.S. Treasury
5.93
1.63%
0.43%
2.70%
1.08%
F
IM
1 ■
0.■
2.■
1.0
U.S. Corporates, A -AAA rated
6.71
2.76%
0.17%
5.85%
4.58%
Agenc BS (0 to 30 years)
2.75%
0.15%
3.72%
Municipals
6.99
2.65%
1.64%
8.73%
4.83%
Returns for periods greater than one year are annualized
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Village of North Palm Beach, Florida
Disclosures
Investment Report — Quarter Ended September 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 September 30, 2014
TAB II
Village of North Palm Beach, Florida Investment Report - Quarter Ended September 30, 2014
Quarterly Summary Report
Total Portfolio Value September 30,2014' June 30, 2014
Market Value $8,386,908.94 $8,383,529.06
Amortized Cost $8,387,249.96 $8,372,712.47
0.75%
0.50%
E 0.25%
0.00%
-0.25%
-0.50%
0.50
Quarter Total Return Comparison
Quarter Ended 09/30/14
Investment Portfolio ML 1 -3 Year U.S. Treasury Index
0.04% * 0 0.03%
1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
Quarter Ended 09/30/14
Investment Portfolio ML 1 -3 Year U.S. Treasury Index
1.11% * 01.13%
1.50 2.00
Effective Duration (Years)
Quarterly Return
Last
P Last
Last
Last
Since Inception
Total Return '°
September 30, 2014
12 Months
2 Years
3 Years
5 Years
June 30, 2009
Investment Portfolio
0.04%
0.57%
0.46%
0.52%
1.01%
1.11%
Merrill Lynch 1 -3 Year U.S. Treasury Index
0.03%
0.50%
0.43%
0.48%
1.03%
1.13%
$99,544.63
Current Quarter
Previous Quarter
Current Quarter
Previous Quarter
Current Quarter
Previous Quarter
Effective Duration(Years) s
September 30, 2014
June 30, 2014
June 30, 2014
Yields
September 30, 2014
June 30, 2014
Investment Portfolio
1.69
1.70
Investment Portfolio
Yield at Market
0.63%
0.50%
Merrill Lynch 1 -3 Year U.S. Treasury Index
1.84
1.85
Yield at Cost
0.63%
0.57%
Portfolio Duration % of Benchmark Duration
92%
92%
0.75%
0.50%
E 0.25%
0.00%
-0.25%
-0.50%
0.50
Quarter Total Return Comparison
Quarter Ended 09/30/14
Investment Portfolio ML 1 -3 Year U.S. Treasury Index
0.04% * 0 0.03%
1.00 1.50 2.00 2.50 3.00
Effective Duration (Years)
Quarter Ended 09/30/14
Investment Portfolio ML 1 -3 Year U.S. Treasury Index
1.11% * 01.13%
1.50 2.00
Effective Duration (Years)
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
September 30, 2014
June 30, 2014
Fiscal Year Interest Income
Year to Date
Year to Date
Investment Portfolio
$25,883.89
$25,865.50
Investment Portfolio
$99,538.13
$76,459.33
TD Bank Money Market Fund
2.23
2.02
TD Bank Money Market Fund
6.50
5.96
Total
$25,886.12
$25,867.52
Total
$99,544.63
$76,465.29
Current Quarter
Previous Quarter
Fiscal Year 2014
Fiscal Year 2013
Quarterly Realized Gain /Loss on Cost
September 30, 2014
June 30, 2014
Fiscal Year Realized Gain /Loss on Cost
Year to Date
Year to Date
Investment Portfolio
($9,500.081
($8,071.12)
Investment Portfolio
($29,087.79)
(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
Executive Summary
PORTFOLIO STRATEGY
Investment Report - Quarter Ended September 30, 2014
➢ 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 third quarter and found value in the market, taking
advantage of market inefficiencies or changes in economic outlook. As a result the Portfolio realized $1,941 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 0.04 %, outperforming the benchmark's performance of
0.03% by 0.01%. Over the past year, the Portfolio earned 0.57 %, versus 0.50% for the benchmark.
➢ Our duration strategy remained defensive throughout the quarter, driven largely by our positive assessment of U.S.
economic conditions and the expected market reaction to an eventual change in Federal Reserve monetary policy. We
sought, and capitalized on, opportunities to modestly extend portfolio duration when rates moved toward the higher end of
recent trading ranges.
➢ Yield spreads between U.S. Agencies and similar maturity U.S. Treasuries temporarily deviated from their recent
tightening trend, presenting a brief yet attractive opportunity to add exposure to Agencies of various maturities. Where
feasible, we swapped out of Treasuries and into Agencies to capture higher yields.
➢ The yield curve remains steep by historical standards, which means longer maturities continue to benefit from the
favorable impact of "roll- down." The steep curve also increases the opportunity cost associated with maintaining liquid
balances at near zero short -term rates. Our strategy has been to minimize excess liquidity, maintain a reasonable balance
between liquid assets and longer term "core" investments, and carefully manage duration to mitigate exposure to
potentially rising rates.
➢ As economic data continues to signal a prospering U.S. economy, we believe the Federal Reserve will reduce the
significant monetary support that has driven capital markets for the past 6 years. The Fed will conclude its large -scale
asset purchase program in October, after which all eyes will turn to the FOMC's main policy tool — the Fed Funds Rate —
and the potential timing and magnitude of expected rate hikes in 2015.
➢ We expect yield spreads will remain narrow; however, portfolios are positioned with the flexibility to capitalize on any
temporary market dislocations or specific opportunities. We will continue to evaluate the broadest range of permitted
investments, as we seek to capture favorable investment opportunities and optimize sector allocations.
➢ PFM will continue to navigate the market environment with a keen focus on relative value sector analysis, prudent duration
management, and efficient yield curve placement. While producing strong investment returns remains a priority, it is
secondary to maintaining safety and liquidity, particularly in the current environment where we expect yields to trend
higher.
PFM Asset Management LLC Section B - 1
Village of North Palm Beach, Florida Investment Report - Quarter Ended September 30, 2014
Investment Portfolio Composition and Credit Quality Characteristics
Security Type'
September 30, 2014
% of Portfolio
June 30, 2014
% of Portfolio
U.S. Treasuries
$4,758,250.43
56.7%
$4,728,654.54
56.4%
Federal Agencies
1,485,577.66
17.7%
1,145,001.22
13.7%
Commercial Paper
399,947.60
4.8%
399,727.80
4.8%
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
121,117.00
1.4%
121,492.00
1.4%
Corporate Notes /Bonds
1,572,902.18
18.8%
1,891,004.53
22.6%
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
49,114.07
0.6%
97,648.97
1.2%
Totals
$8,386,908.94
100.0%
$8,383,529.06
100.0%
Portfolio Composition
aQ of ngr�n /l a
Federal Agency
Obligations
17.71%
Commercial
Paper
4.77%
Municipal
Obligations
1.44%
Corporate
Notes /Bonds
18.75%
A -1+ (Shnrt-
terrr
2.40
A-
1.79 °r
A
5.29%
A+
6.00'
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.
A -1 (Short- Credit Quality Distribution
term) as of 09/30/14
1.81%
AA+
76.70%
PFM Asset Management LLC Section B - 2
Village of North Palm Beach, Florida
Investment Report - Quarter Ended September 30, 2014
Investment Portfolio Maturity Distribution
Maturity Distribution' September 30, 2014
June 30, 2014
Overnight (Monedy Market Fund)
$49,114.07
$97,648.97
Under 6 Months
399,947.60
399,727.80
6 - 12 Months
0.00
201,305.03
1 - 2 Years
4,889,443.78
3,770,238.62
2 - 3 Years
3,048,403.49
3,914,608.64
3 - 4 Years
0.00
0.00
4 - 5 Years
0.00
0.00
5 Years and Over
0.00
0.00
Totals $8,386,908.94 $8,383,529.06
I VI IIVIIV IVICALUI IIy LJIJII IkFULIVI I
5% 5% 2%
0%
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.
• September 30, 2014
■June 30, 2014
4- 0 Tears 0 Tears ana uvt
PFM Asset Management LLC Section B - 3
Village of North Palm Beach, Florida Investment Report - Quarter Ended September 30, 2014
Investment Portfolio Maturity Distribution versus the Benchmark'
�o• o• o•
o• o• o
\11) oo 11� 1�) o0 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
State and /or Local Government Debt
State and /or Local
0.71%
Interest Bearing
YES
and /or Tax Exempt Debt
Government Debt
Money Market Checking
or Savings
200,044.87
1.17%
50%
and /or Tax Exempt
Mutual Funds
Account
0.00%
25%
YES
Interest Bearing Checking or Savings Account
Debt
1.17%
47.04%
YES
Village Managed
8,662,184.01
50.81%
0.71%
PFM Managed
8,387,250.02
49.19%
Corporate Notes
Total
$17,049,434.03
100.00%
9.21%
Florida SBA Prime
Fund
Commercial Paper
2.88%
2.35%
Federal
United
States
Instrumentalities
Treasury
Securities
8.71%
27.93%
Amortized Cost
Allocation
Permitted
In
Security Type
(Includes Interest)
Percentage Notes
by Policy
Compliance
Florida SBA Prime Fund
490,454.25
2.88% 2
25%
YES
United States Treasury Securities
4,761,962.66
27.93%
100%
YES
United States Government Agency Securities
-
0.00%
50%
YES
Federal Instrumentalities
1,485,575.44
8.71%
50%
YES
Mortgage- Backed Securities
-
0.00%
0%
YES
Certificates of Deposit
-
0.00%
100%
YES
Commercial Paper
399,917.34
2.35%
15%
YES
Corporate Notes
1,569,662.73
9.21%
25%
YES
State and /or Local Government Debt
121, 017.72
0.71%
20%
YES
and /or Tax Exempt Debt
Money Market Mutual Funds
200,044.87
1.17%
50%
YES
Intergovernmental Investment Pool
-
0.00%
25%
YES
Interest Bearing Checking or Savings Account
8,020,799.02
47.04% 2
100%
YES
Village Managed
8,662,184.01
50.81%
PFM Managed
8,387,250.02
49.19%
Total
$17,049,434.03
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
Individual Issuer Breakdown
Amortized Cost
(Includes Interest)
Allocation
Percentage
Notes
Permitted
by Policy
In
Compliance
Government National Mortgage Association (GNMA)
-
0.00%
100%
YES
Federal Farm Credit Bank (FFCB)
-
0.00%
10%
YES
Federal Home Loan Bank (FHLB)
591,088.92
3.47%
10%
YES
Federal National Mortgage Association (FNMA)
553,920.36
3.25%
10%
YES
Federal Home Loan Mortgage Corporation (FHLMC)
340,566.16
2.00%
10%
YES
Rabobank USA Fin Corp Commercial Paper
199,966.67
1.17%
5%
YES
Bank of Tokyo Mitsubishi Commercial Paper
199,950.67
1.17%
5%
YES
Bank of New York Mellon Corporate Notes
278,890.64
1.64%
5%
YES
Toyota Corporate Notes
100,275.56
0.59%
5%
YES
Wells Fargo & Company Corporate Notes
150,232.24
0.88%
5%
YES
General Electric Corporate Notes
150,290.85
0.88%
5%
YES
Berkshire Hathaway Corporate Notes
99,995.83
0.59%
5%
YES
American Honda Corporate Notes
70,216.37
0.41%
5%
YES
John Deere Corporate Notes
100,409.97
0.59%
5%
YES
Coca -Cola Corporate Notes
50,116.27
0.29%
5%
YES
IBM Corporate Notes
200,097.57
1.17%
5%
YES
PepsiCo Corporate Notes
150,017.11
0.88%
5%
YES
Walt Disney Corporate Notes
219,120.32
1.29%
5%
YES
California State Taxable GO Bonds
121,017.72
0.71%
5%
YES
Interest Bearing Checking /Savings Acct -Wells Fargo
5,494,210.03
32.23%
2
50%
YES
Interest Bearing Checking /Savings Acct -Chase
11,573.79
0.07%
2
50%
YES
Interest Bearing Checking /Savings Acct- BankUnited
2,515,015.20
14.75%
2
50%
YES
Money Market Fund - TD Bank Sweep Account
49,114.13
0.29%
33%
YES
Money Market Fund - Wells Fargo Advantage Fund
150,930.74
0.89%
2
33%
YES
Florida Prime
490,454.25
2.88%
2
25%
YES
Notes:
1. All Assets.
2. These Accounts are managed by the Village.
'PFM managed securities are shown on Amortized Cost plus Accrued Interest basis.
Village of North Palm Beach, Florida Investment Report - Quarter Ended September 30, 2014
TAB III
Village of North Palm Beach, Florida Investment Report - Quarter Ended September 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.
�P. Customer Service
"MEMEEMML
�� PO Box 11813
Harrisburg, PA 17108 -1813
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
geyerr @pfm.com
4'>
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
00 - T
Managed Account Summary Statement For the Month Ending September 30, 2014
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Transaction Summary - Managed Account Cash Transactions Summary - Managed Account
Opening Market Value $8,331,901.64 Maturities /Calls 0.00
Sale Proceeds 0.00
Maturities /Calls 0.00
Coupon /Interest /Dividend Income 10,272.00
Principal Dispositions 0.00 Principal Payments 0.00
Principal Acquisitions 0.00
Unsettled Trades 0.00 Security Purchases 0.00
Net Cash Contribution 0.00
Change in Current Value (12,219.45)
Reconciling Transactions 0.00
Closing Market Value $8,319,682.19
Interest /Dividends /Coupons Received
Less Purchased Interest Related to Interest /Coupons
Plus Net Realized Gains /Losses
10,272.00 Closing Cash Balance
0.00
0.00
Total Cash Basis Earnings $10,272.00
1.
Ending Amortized Value of Securities
8,320,023.21
Ending Accrued Interest
18,112.68
Plus Proceeds from Sales
0.00
Plus Proceeds of Maturities /Calls /Principal Payments
0.00
Plus Coupons /Dividends Received
10,272.00
Less Cost of New Purchases
0.00
Less Beginning Amortized Value of Securities
(8,323,423.96)
Less Beginning Accrued Interest
(20,769.73)
Total Accrual Basis Earnings $4,214.20
$49,114.07
� Account 61350001 Page 1
iF.NI'
iv PFM Asset Management LLC
PFM'
Portfolio Summary and Statistics For the Month Ending September 30, 2014
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Account Summary Sector Allocation
Description
Par Value
Market Value
Percent
U.S. Treasury Bond / Note
4,705,000.00
4,745,769.47
57.03
Municipal Bond / Note
120,000.00
120,492.00
1.45
Federal Agency Bond / Note
1,485,000.00
1,484,728.14
17.85
Corporate Note
1,541,000.00
1,568,744.98
18.86
Commercial Paper
400,000.00
399,947.60
4.81
Managed Account Sub -Total
8,251,000.00
8,319,682.19
100.00%
Accrued Interest
18,112.68
Total Portfolio
8,251,000.00
8,337,794.87
Unsettled Trades
0.00
0.00
Maturity Distribution
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years
US TSY Bond /
57.03%
Commercial Paner
Note
and /
/ Note
I Characteristics
Yield to Maturity at Cost 0.63%
Yield to Maturity at Market 0.63%
Duration to Worst 1.77
Weighted Average Days to Maturity 675
I'1 Account 61350001 Page 2
i i i i i i W n
m PFM'
Managed Account Issuer Summary For the Month Ending September 30, 2014
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Total $8,319,682.19 100.000/0
76.71%
=� Account 61350001 Page 3
PFM Asset Management LLC
Market Value
Issuer
of Holdings
Percent
AMERICAN HONDA FINANCE
70,239.61
0.84
BANK OF NEW YORK
277,531.37
3.34
1.8:
BERKSHIRE HATHAWAY INC
100,364.80
1.21
A-
2.4(
COCA -COLA COMPANY
49,940.60
0.60
DEERE & COMPANY
100,229.30
1.20
2.4(
FANNIE MAE
554,926.68
6.67
FEDERAL HOME LOAN BANKS
591,199.20
7.11
1.8(
FREDDIE MAC
338,602.26
4.07
5 9j
GENERAL ELECTRIC CO
151,300.65
1.82
IBM CORP
200,079.00
2.40
5.21
MITSUBISHI UFJ FINANCIAL GROUP INC
199,965.00
2.40
F
PEPSICO, INC
149,387.55
1.80
3.6:
RABOBANK NEDERLAND
199,982.60
2.40
STATE OF CALIFORNIA
120,492.00
1.45
THE WALT DISNEY CORPORATION
218,576.40
2.63
TOYOTA MOTOR CORP
100,233.20
1.20
UNITED STATES TREASURY
4,745,769.47
57.05
WELLS FARGO & COMPANY
150,862.50
1.81
Total $8,319,682.19 100.000/0
76.71%
=� Account 61350001 Page 3
PFM Asset Management LLC
AIMMMOr-
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Managed Account Detail of Securities Held For the Month Ending September 30, 2014
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description
S &P
Moody's
Trade
Settle
Original
YTM
Accrued
Amortized
Market
Dated Date /Coupon /Maturity
Note
U.S. Treasury Bond
CUSIP
Par Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
/
US TREASURY NOTES
295,000.00
AA+
Aaa
03/19/14
03/21/14
295,633.79
0.93
8.10
295,522.62
295,898.83
DTD 03/31/2012 1.000% 03/31/2017
Account 61350001 Page 4
Managed Account Detail of Securities Held For the Month Ending September 30, 2014
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
US TREASURY NOTES
DTD 07/31/2012 0.500% 07/31/2017
100,000.00
AA+
Aaa
08/21/14
08/25/14
99,643.00
1.12
11.11
99,654.70
99,578.60
Account 61350001 Page 5
PFM Asset Management LLC
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Managed Account Detail of Securities Held For the Month Ending September 30, 2014
NORTH ' .... ..
PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
Commercial Paper
BANK OF TOKYO MITSUBISHI COMM PAPER 200,000.00 A -1 P -1 05/12/14 05/12/14 199,761.33 0.24 0.00 199,950.67 199,965.00
-- 0.000% 11/07/2014
Security Type Sub -Total 400,000.00 399,564.66 0.22 0.00 399,917.34 399,947.60
Managed Account Sub -Total 8,251,000.00 8,361,852.71 0.63 18,112.68 8,320,023.21 8,319,682.19
Securities Sub -Total $8,251,000.00 $8,361,852.71 0.63% $18,112.68 $8,320,023.21 $8,319,682.19
Accrued Interest $18,112.68
Total Investments $8,337,794.87
`F �1 Account 61350001 Page 7
PFM Asset Management LLC;
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Managed Account Fair Market Value & Analytics
NORTH PALM BEACH INVESTMENT PORTFOLIO - 61350001
Security Type/ Description Next Call Market Market Unreal G/L
Dated Date /Coupon /Maturity CUSIP Par Broker Date Price Value On Cost
For the Month Ending September 30, 2014
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
CA ST TAXABLE GO BONDS
150,000.00 CITIGRP
DTD 07/12/2013 0.884% 07/12/2016
100.87
151,300.65
1,300.65
1,300.65
0.25
1.77
0.41
2w'PFM Asset Management
Account 61350001 Page 9
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Managed Account Security Transactions & Interest For the Month Ending September 30, 2014
NORTH" PALM BEACH INVESTMENT PORTFOLIO - 61350001 n .e..,x�..
. .
"a�
Transaction Type
Principal Accrued Realized G/L Realized G/L Sale
Trade Settle Security Description CUSIP Par Proceeds Interest Tnt-A r-4. A... -- �
09/02/14
09/02/14
MONEY MARKET FUND
295,000.00
0.00
1,475.00
DTD 03/31/2012 1.000% 03/31/2017
1,475.00
Transaction Type Sub -Total
1,440,000.00
0.00
10,272.00
10,272.00
Managed Account Sub -Total 0.00 10,272.00 10,272.00
Total Security Transactions $0.00 $10,272.00 $10,272.00
Account 61350001 Page 11
PFM Asset .Management LL.0