03-31-2015 VNPB Investment Performance ReviewVillage of North Palm Beach, Florida
North l
Investment Performance Review
Quarter Ended March 31, 2015
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 17101 -2044
717 - 232 -2723 • 717 - 233 -6073 fax
300 S. Orange Avenue, Suite 1170
Orlando, FL 32801
(407) 648 -2208
(407) 648 -1323 fax
_e
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015
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, 2015
Tab III. March 31, 2015 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, 2015
TAB I
Village of North Palm Beach, Florida
Summary
■ For the first quarter of 2015, accommodative global central bank
policies were a major driver of financial markets. The European Central
Bank (ECB) initiated an asset purchase program similar to the Federal
Reserve's (Fed's) quantitative easing (QE) policies that concluded last
year, and the Federal Open Market Committee (FOMC) seemed to
relax its stance on tightening monetary policy in the near future.
■ U.S. Treasuries experienced their longest period of quarterly gains
since 1998. The 10 -year Treasury yield fell for the fifth consecutive
quarter.
■ After a brief period of recovery, oil prices headed toward the lower
end of recent ranges.
Economic Snapshot
■ For the fourth quarter of 2014, gross domestic product (GDP) grew at a
pace of 2.2 %. The components of the GDP report showed that
household spending rose to a nine -year high and that an increase in
exports was offset by growth in inventories, which were weaker than
previously expected.
■ The U.S. labor market continued to improve, as the unemployment
rate fell from 5.6% in December to 5.5% in March, marking its lowest
point since mid- 2008.
■ Consumer confidence for the first quarter reached its highest level
since the second quarter of 2007, as lower gasoline prices and an
increase in personal income helped generate higher amounts of
disposable income. However, consumers slowed the pace of their
spending for the quarter, as retail sales fell for the months of
December, January, and February.
■ New -home sales rose nearly 8% in February, marking their highest
level since early 2008 and serving as a bright spot in a mixed bag of
recent housing- market data.
Investment Report — Quarter Ended March 31, 2015
Interest Rates
■ At its March meeting, the FOMC removed the word "patient" from
its previous statement, indicating that the current target range for
the federal funds rate will be appropriate until the FOMC is
"reasonably confident" that inflation is moving toward its 2%
objective. The statement also implied that economic growth has
been somewhat weaker than it was earlier in the year.
■ A Reuters poll released at the end of March showed that 17 of 21
primary dealers expect the first interest rate hike to occur in
September at the earliest, with only four dealers expecting the
first hike to occur in June.
Sector Performance
■ Driven by a Treasury market rally, fixed - income market
performance was generally positive for the quarter. Returns were
dependent on both maturity and sector.
■ The yield curve flattened modestly over the quarter as longer
maturities declined further than shorter maturities. This market
movement and its positive impact on longer durations combined
to provide performance in excess of initial yields.
■ Agency spreads for short and intermediate maturities widened
modestly during the quarter. Accordingly, the sector's
performance was largely in line with comparable- maturity
Treasuries.
■ Corporate securities slightly outperformed government - related
options with similar maturities, as they were aided by excess
income and a relatively unchanged yield spread relationship.
■ While still generating positive performance, mortgage- backed and
asset - backed securities trailed other high - quality investment
options for the quarter.
■ Yields on money market - related securities remained at the
elevated levels to which they rose at the end of 2014, making
them attractive options for short - maturity investment needs.
PFM Asset Management LLC Section A -1
Village of North Palm Beach, Florida
Investment Report - Quarter Ended March 31, 2015
Economic Snapshot
Labor
Unemployment Rate
Mar'l5
5.5%
5.6%
6.6%
Unemployment Rate (left) vs. Change in Nonfarm Pay ro l Is (right)
10% 400K
Change In Non -Farm Payrolls
Mar'l5
126,000
329,000
225,000
� Changeln Nonfarm Payrolls
unempIoymentRate 350K
8% I 300K
I I 250K
�'
Average Hourly Earnings (YoY)
Marl
2.1%
1.8%
2.2%
6% �� 200K
15 OK
Personal Income (YoY)
Feb'l5
4.5%
4.8%
3.7%
I I I 1115 K
4%
500
I
° '
Initial Jobless Claims (week)
3/27/15
268,000
293,000
329,000
3/31/12 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15
•
Real GDP (QoQ SAAR)
2014Q4
2.2%
5.0 %1
3.5% Z
Real GDP (QoQ)
6%
GDP Personal Consumption (QoQ SAAR)
2014Q4
4.4%
3.2 %t
3.7%2
4%
2%
Retail Sales (YoY)
Feb'l5
1.7%
3.3%
4.1%
0%
ISM Manufacturing Survey (month)
Mar'l5
51.5
55.1
54.4
-p /°
-4%
Existing Home Sales SAAR (month)
Feb'l5
4.88 mil.
5.07 mil.
4.70 mil.
12/31/11 6/30/12 12/31/12 6/30/13 12/31/13 6/30/14 12131/14
Inflation
Personal Consumption Expenditures (YoY)
Feb'l5
0.3%
0.8%
1.2%
Cons umer Price Index
4%
-CPI (YoY) Core CPI (YoY)
Consumer Price Index (YoY)
Feb'l5
0.0%
0.8%
1.5%
3%
Consumer Price Index Core (YoY)
Feb'l5
1.7%
1.6%
1.7%
1% v v
Crude Oil Futures (WTI, per barrel)
Mar 31
$47.60
$53.27
$101.58
0%
-1%
Gold Futures (oz.)
Mar 31
$1,183
$1,184
$1,283
2/29/12 8/31/12 2/28/13 8/31/13 2/28/14 8/31/14 2/28/15
1. Data as of Third Quarter 2014
2. Data as of Fourth Quarter 2013
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
3.0%
2.5%
2.0%
m 1.5%
}
1.0%
0.5%
0.0%
12/31/14
Investment Report — Quarter Ended March 31, 2015
Investment Rate Overview
U.S. Treasury Note Yields
1/31/15 2/28/15 3/31/15
2 -Year ......•• 5 -Year 10 -Year
U.S. Treasury Yields
3 -month
0.02%
0.04%
Change
over
e
(0.02 %)
0.03%
Change
(0.01%)
1 -year
0.23%
0.22%
0.01%
0.11%
0.12%
2 -year
0.56%
0.67%
(0.11 %)
0.42%
0.14%
5 -year
1.37%
1.65%
(0.28%)
1.72%
(0.35%)
10 -year
1.92%
2.17%
(0.25%)
2.72%
(0.80%)
30 -year
2.54%
2.75%
(0.21%)
3.56%
(1.02 %)
Source: Bloomberg
PFM Asset Management LLC
4%
3%
'a 2%
m
}
1%
0%
W N W T �I
3�
O
March 31. 2015
U.S. Treasury Yield Curve
W
O
Maturity
December 31. 2014 — — March 31. 2014
Yield Curves as of 3/31/2015
4%
1 % / --------- - - - - --
0% ° J
W N W Y, U O
Maturity
U.S. Treasury Federal Agency — — Industrial Corporates, A Rated
Section A -3
Village of North Palm Beach, Florida
Investment Report - Quarter Ended March 31, 2015
BofA Merrill Lynch Index Returns
As of 3/31/15
Returns for Periods ended 3/31/15
Returns for periods greater than one year are annualized.
Source: BofA Merrill Lynch Indices
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Duration
Yield
3 Month
1 Year
3 Years
Year •
U.S. Treasury
1.87
0.55%
0.52%
1.00%
0.67%
Federal Agency
1.72
0.68%
0.54%
1.07%
0.74%
U.S. Corporates, A -AAA rated
2.05
1.24%
0.77%
1.43%
1.86%
Agency MBS (0 to 3 years)
2.07
1.36%
0.41%
1.25%
1.18%
Municipals
1.75
0.65%
0.26%
0.73%
0.88%
Year •
U.S. Treasury
2.69
0.81%
0.92%
1.91%
1.02%
Federal Agency
2.15
0.84%
0.79%
1.77%
1.06%
U.S. Corporates, A -AAA rated
2.87
1.56%
1.20%
2.57%
2.64%
Agency MBS (0 to 5 years)
3.29
1.88%
0.83%
3.79%
2.20%
Municipals
2.54
0.95%
0.35%
1.24%
1.30%
Indices Master
or
U.S. Treasury
6.23
1.33%
1.75%
6.15%
2.57%
Federal Agency
3.72
1.21%
1.27%
4.07%
1.97%
U.S. Corporates, A -AAA rated
6.96
2.52%
2.18%
6.93%
4.84%
Agency MBS (0 to 30 years)
3.78
2.11%
1.00%
5.48%
2.51%
Municipals
6.80
2.18%
1.09%
6.90%
4.23%
Returns for periods greater than one year are annualized.
Source: BofA Merrill Lynch Indices
Source: BofA Merrill Lynch Indices
PFM Asset Management LLC Section A -4
Village of North Palm Beach, Florida
Disclosures
Investment Report — Quarter Ended March 31, 2015
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 i s
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.
not intended to provide
PFM Asset Management LLC Section A -5
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015
TAB II
Village of North Palm Beach, Florida
Current Quarter
Previous Quarter
Investment Report - Quarter Ended March 31, 2015
Previous Quarter
Effective Duration(Years)°°
March 31, 2015
December 31, 2014
Quarterly Summary Report
December 31. 2014
Investment Portfolio
1.85
Total Portfolio Value'
March 31,2015'
December 31, 2014
Merrill Lynch 1 -3 Year U.S. Treasury Index
Market Value
$8,946,712.63
$8,403,999.45
0.71%
Amortized Cost
$8,919,189.90
$8,402,38922
Quarterly Return
Last Last Last
Last
Since Inception
Total Return "°
March 31, 2015
12 Months 2 Years 3 Years
5 Years
June 30, 2009
Investment Portfolio
0.50%
1.06% 0.71% 0.69%
0.99%
1.14%
ML 1 -3 Year U.S. Treasury Index
0.52% *Investment Portfolio
0.50%
1.00 1.50 2.00
Quarterly Interest Income
Investment Portfolio
TD Bank Money Market Fund
Total
Quarterly Realized Gain /Loss on Cost
Investment Portfolio
Current Quarter Previous Quarter
March 31, 2015 December 31, 2014
$24,320.1 $22,631.56
1.3 0.73
uuarrer tnoeo uaia if to
ML 1 -3 Year U.S. Treasury Index Investment Portfolio
1.15% N 1.14%
1.50 2.00
R Fiscal Year 2015 111= Fiscal Year 2014
Fiscal Year Interest Income Year to Date
Investment Portfolio $46,951.71 $99,538.13
TD Bank Money Market Fund 2.12 6.50
.29 Total
Current Quarter Previous Quarter Fiscal Year 2015 Fiscal Year 2014
March 31. 2015 December 31.2014 Fiscal Year Realized Gain /Loss on Cost Year to Date
($12,200.17 ($882.90) Investment Portfolio ($13,083.07) (29,087.79)
Notes:
1. In order to comply with GASS 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 retumsare 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
Current Quarter
Previous Quarter
Effective Duration(Years)°°
March 31, 2015
December 31, 2014
Yields March 31, 2015
December 31. 2014
Investment Portfolio
1.85
1.73
Yield at Market 0.64%
0.68%
Merrill Lynch 1 -3 Year U.S. Treasury Index
1.79
1.82
Yield at Cost 0.80%
0.71%
Portfolio Duration % of Benchmark Duration
104%
95%
ML 1 -3 Year U.S. Treasury Index
0.52% *Investment Portfolio
0.50%
1.00 1.50 2.00
Quarterly Interest Income
Investment Portfolio
TD Bank Money Market Fund
Total
Quarterly Realized Gain /Loss on Cost
Investment Portfolio
Current Quarter Previous Quarter
March 31, 2015 December 31, 2014
$24,320.1 $22,631.56
1.3 0.73
uuarrer tnoeo uaia if to
ML 1 -3 Year U.S. Treasury Index Investment Portfolio
1.15% N 1.14%
1.50 2.00
R Fiscal Year 2015 111= Fiscal Year 2014
Fiscal Year Interest Income Year to Date
Investment Portfolio $46,951.71 $99,538.13
TD Bank Money Market Fund 2.12 6.50
.29 Total
Current Quarter Previous Quarter Fiscal Year 2015 Fiscal Year 2014
March 31. 2015 December 31.2014 Fiscal Year Realized Gain /Loss on Cost Year to Date
($12,200.17 ($882.90) Investment Portfolio ($13,083.07) (29,087.79)
Notes:
1. In order to comply with GASS 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 retumsare 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 March 31, 2015
➢ 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 first quarter and found value in the market, taking
advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $1,806 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 of 0.50 %, underperformed the benchmark's performance of
0.52% by 0.02 %. This slight underperformance is due to exposure in corporate notes rated "A" — "AA ". U.S. Treasuries
added slightly to performance. During the quarter interest rates rose in the 2 -7 year range which dampened performance in
all sectors.
➢ Macroeconomic conditions in the U.S. moderated throughout the quarter evidenced by lackluster economic data, Greek
inspired geopolitical uncertainty, and a FOMC that indicated a tendency for lower rates throughout the period. The market
reacted with a Treasury rally that sent yields across the curve generally lower; the impact being greater on longer maturities
which continued to reflect persistently low inflation expectations.
➢ The FOMC has indicated a strong focus on their inflation mandate by removing its "patient" guidance in favor of a need to be
"reasonably confident that inflation will move back to its two percent objective." This emphasis on what continues to be
stubbornly low inflation, combined with the FOMC's more conservative projections for the future trajectory of the federal
funds rate, formulates our market view that rates will remain in their current range in the coming months. With this
expectation, we will maintain portfolio durations closer to their respective benchmarks in an effort to maximize investment
income.
➢ We expect volatility to continue throughout the quarter; particularly around the announcement of key economic releases as
market participants digest the impact not only on the timing of an initial FOMC rate hike, but also on the pace and rate of
subsequent hikes as well. In a potentially turbulent market environment, we will respect well defined trading ranges; adding
duration when rates are elevated, and remaining patient when rates are restrained. Additionally, we will stress security
selection, exposure to non - government sectors, and yield curve placement, as we believe those factors will be the primary
drivers of performance.
➢ 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 March 31, 2015
Investment Portfolio Composition and Credit Quality Characteristics
Security Type'
March 31, 2015
% of Portfolio
December 31. 2014
% of Portfolio
U.S. Treasuries
$5,914,025.67
66.1%
$5,463,799.81
65.0%
Federal Agencies
933,706.34
10.4%
1,288,838.57
15.3%
Commercial Paper
199,924.80
2.2%
199,742.00
2.4%
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
121,413.40
1.4%
121,105.60
1.4%
Corporate Notes /Bonds
1,692,615.10
18.9%
1,293,465.02
15.4%
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
85,027.32
1.0%
37,048.45
0.4%
Totals
$8,946,712.63
100.0%
$8,403,999.45
100.0%
Money Market
Fund /Cash
0.95%
Corporate
Notes /Bonds
18.92%
Municipal
Obligations
1.36%
Commercial
Paper
2.23% Federal Agency
Obligations
10.44%
Portfolio Composition
as of 03/31/15
U.S. Treasuries
66.10%
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
Credit Quality Distribution
A -1 (Short- as of 03/31/15
term)
2.26%
A-
1.70%
AA+
78.98%
A
8.10%
A+
3.871
AA-
3.39%
AA
1.70%
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, 2015
100%
Investment Portfolio Maturity Distribution
Maturity Distribution' March 31, 2015
December 31, 2014
Overnight (Money Market Fund)
$85,027.32
$37,048.45
Under 6 Months
199,924.80
199,742.00
6 - 12 Months
200,190.14
0.00
1 - 2 Years
4,263,785.30
4,531,981.99
2 - 3 Years
3,416,264.59
3,635,227.01
3 - 4 Years
781,520.48
0.00
4 - 5 Years
0.00
0.00
5 Years and Over
0.00
0.00
Totals $8,946,712.63 $8,403,999.45
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
Portfolio Maturity Distribution'
100%
90%
■ March 31, 2015
80%
■ December 31, 2014
=
70%
0
n
60%
53.9%
m
50%
47.7%
0
43.3%
40%
38.2%
0
I
30%
M
20%
a>
10%
8.7%
a_
1.0% 0.4% 2.2% 2.4% 2.2% 0.0%
0.0% 0.0% 0.0% 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, 2015
Investment Portfolio Maturity Distribution versus the Benchmark'
� �
tip" �) �h" DR) tih" �1Z .��" DO" ti`s" �O" .��" DO" ti`s" �O" Z3O"
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
Money Market
Interest Bearing
Mutual Funds
State and /or Local
Checking or Savings
1.15%
Government Debt
Account
53.42%
and /or Tax Exempt
Debt
0.59%
Corporate Notes
8.22%
Florida Prime (SBA)
Commercial Paper
2.39%
0.97%
Federal
United States
Instrumentalities
Treasury
Securities
4.53%
28.73%
Amortized Cost
Allocation
Permitted
In
Security Type
(Includes Interest)
Percentage Notes
by Policy
Compliance
Florida Prime (SBA)
490,873.89
2.39% 2
25%
YES
United States Treasury Securities
5,896,437.19
28.73%
100%
YES
United States Government Agency Securities
-
0.00%
50%
YES
Federal Instrumentalities
929,974.11
4.53%
50%
YES
Mortgage- Backed Securities
-
0.00%
0%
YES
Certificates of Deposit
-
0.00%
100%
YES
Commercial Paper
199,901.78
0.97%
15%
YES
Corporate Notes
1,686,925.58
8.22%
25%
YES
State and /or Local Government Debt
120,923.92
0.59%
20%
YES
and /or Tax Exempt Debt
Money Market Mutual Funds
235,965.34
1.15%
50%
YES
Intergovernmental Investment Pool
-
0.00%
25%
YES
Interest Bearing Checking or Savings Account
10,963,798.88
53.42% 2
100%
YES
Village Managed
11,605,610.84
56.54%
PFM Managed
8,919,189.85
43.46%
Total
$20,524,800.69
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
S
W PFN
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)
314,772.50
1.53%
10%
YES
Federal National Mortgage Association (FNMA)
99,723.36
0.49%
10%
YES
Federal Home Loan Mortgage Corporation (FHLMC)
515,478.25
2.51%
10%
YES
PNC Bank Commercial Paper
199,901.78
0.97%
5%
YES
Toyota Corporate Notes
100,282.37
0.49%
5%
YES
Wells Fargo & Company Corporate Notes
150,232.70
0.73%
5%
YES
General Electric Corporate Notes
150,293.18
0.73%
5%
YES
Berkshire Hathaway Corporate Notes
100,029.24
0.49%
5%
YES
American Honda Corporate Notes
70,256.94
0.34%
5%
YES
John Deere Corporate Notes
100,431.06
0.49%
5%
YES
Coca -Cola Corporate Notes
50,125.82
0.24%
5%
YES
IBM Corporate Notes
200,099.34
0.97%
5%
YES
JP Morgan Corporate Notes
200,211.47
0.98%
5%
YES
HSBC Corporate Notes
200,537.20
0.98%
5%
YES
PepsiCo Corporate Notes
150,045.66
0.73%
5%
YES
Walt Disney Corporate Notes
214,380.60
1.04%
5%
YES
California State Taxable GO Bonds
120,923.92
0.59%
5%
YES
Interest Bearing Checking /Savings Acct -Wells Fargo
8,432,200.30
41.08%
2
50%
YES
Interest Bearing Checking /Savings Acct -Chase
11,575.51
0.06%
2
50%
YES
Interest Bearing Checking /Savings Acct- BankUnited
2,520,023.07
12.28%
2
50%
YES
Money Market Fund - TD Bank Sweep Account
85,027.27
0.41%
33%
YES
Money Market Fund - Wells Fargo Advantage Fund
150,938.07
0.74%
2
33%
YES
Florida Prime (SBA)
490,873.89
2.39%
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 March 31, 2015
TAB III
Village of North Palm Beach, Florida Investment Report - Quarter Ended March 31, 2015
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.
J Managed Account Summary Statement
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Opening Market Value $8,358,092.55
Maturities /Calls
(225,000.00)
Principal Dispositions
(349,015.63)
Principal Acquisitions
1,047,602.05
Unsettled Trades
0.00
Change in Current Value
12,927.97
Closing Market Value $8,844,606.94
Interest /Dividends /Coupons Received 13,990.04
Less Purchased Interest Related to Interest /Coupons (1,917.09)
Plus Net Realized Gains /Losses (3,890.71)
Total Cash Basis Earnincs $8,182.24
Ending Amortized Value of Securities
8,817,084.21
Ending Accrued Interest
17,078.37
Plus Proceeds from Sales
349,439.70
Plus Proceeds of Maturities /Calls /Principal Payments
225,000.00
Plus Coupons/ Dividends Received
13,565.97
Less Cost of New Purchases
(1,049,519.14)
Less Beginning Amortized Value of Securities
(8,346,582.34)
Less Beginning Accrued Interest
(21,353.67)
Total Accrual Basis Earnings $4,713.10
For the Month Ending March 31, 2015
Maturities /Calls
225, 000.00
Sale Proceeds
349,439.70
Coupon /Interest /Dividend Income
13,565.97
Principal Payments
0.00
Security Purchases
(1,049,519.14)
Net Cash Contribution
500,000.00
Reconciling Transactions
0.00
Closing Cash Balance $85,027.32
•-%5:- Account Page 1
�PF4I
quPFM Asset Management LLC
J Portfolio Summary and Statistics
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Description
Par Value
Market Value
Percent
U.S. Treasury Bond / Note
5,870,000.00
5,901,643.01
66.72
Municipal Bond / Note
120,000.00
120,788.40
1.37
Federal Agency Bond / Note
930,000.00
932,886.56
10.55
Corporate Note
1,670,000.00
1,689,364.17
19.10
Commercial Paper
200,000.00
199,924.80
2.26
Managed Account Sub -Total
8,790,000.00
8,844,606.94
100.00%
Accrued Interest
17,078.37
Total Portfolio
8,790,000.00
8,861,685.31
Unsettled Trades
48.07%
0.00 0.00
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years
US TSY Bond / Note
66.72 %
For the Month Ending March 31, 2015
Commercial Paper
2.26 %
Corporate Note
19.10%
Fed Agy Bond /
Note
10.55 %
Muni Bond / Note
1.37 %
Yield to Maturity at Cost 0.80%
Yield to Maturity at Market 0.64%
Duration to Worst 1.89
Weighted Average Days to Maturity 708
Fbi Account Page 2
VF PFM Asset Management LLC
J Managed Account Issuer Summary
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Total $8,844,606.94 100.000/0
AA-
3.40%
AA+
78.98%
For the Month Ending March 31, 2015
.10 %
.86 %
.70 %
-1
.26 %
A
.70 %a
F4t Account
Page 3
PFM Asset Management LLC
Managed Account Detail of Securities Held For the Month Ending March 31, 2015
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 Bond / Note
CUSIP
Par
Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
US TREASURY NOTES
695,000.00
AA+
Aaa
02/02/15
02/03/15
692,855.27
0.63
575.97
692,989.76
692,339.54
DTD 07/31/2012 0.500% 07/31/2017
,i. Account Page 4
quPFM Asset Management LLC
Managed Account Detail of Securities Held For the Month Ending March 31, 2015
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 Bond / Note
CUSIP
Par
Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
US TREASURY NOTES
130,000.00
AA+
Aaa
08/12/14
08/14/14
129,983.88
1.00
227.50
129,987.32
130,969.54
DTD 06/25/2012 1.000% 07/28/2017
,I. Account Page 5
quPFM Asset Management LLC
Managed Account Detail of Securities Held For the Month Ending March 31, 2015
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Security Type/ Description
Dated Date /Coupon /Maturity
Federal Agency Bond / Note
FREDDIE MAC GLOBAL NOTES
DTD 06/25/2012 1.000% 07/28/2017
FNMA NOTES
DTD 08/25/2014 1.000% 09/27/2017
CUSIP
150,000.00
A-
Al
02/25/14
02/28/14
149,829.00
0.99
154.38
149,891.28
150,255.30
DTD 02/28/2014 0.950% 02/22/2017
,i. Account Page 6
quPFM Asset Management LLC
Managed Account Detail of Securities Held
NORTH PALM BEACH INVESTMENT PORTFOLIO -
For the Month Ending March 31, 2015
Security Type/ Description
S &P
Moody's
Trade
Settle
Original
YTM
Accrued
Amortized
Market
Dated Date /Coupon /Maturity
Corporate
CUSIP
Par
Rating
Rating
Date
Date
Cost
at Cost
Interest
Cost
Value
JP MORGAN CHASE CORP NOTES
200,000.00
A -1
P -1
10/31/14
10/31/14
199,682.22
0.26
0.00
199,901.78
199,924.80
-- 0.000% 06/08/2015
Security Type Sub -Total
200,000.00
199,682.22
0.26
0.00
199,901.78
199,924.80
Managed Account Sub -Total
8,790,000.00
8,859,809.92
0.80
17,078.37
8,817,084.21
8,844,606.94
Securities Sub -Total
$8,790,000.00
$8,859,809.92
0.80 %
$17,078.37
$8,817,084.21
$8,844,606.94
Accrued Interest
$17,078.37
Total Investments
$8,861,685.31
F4t Account Page 7
PFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015
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
150,000.00
MERRILL
99.99
149,988.30
849.63
730.18
2.55
2.55
0.75
DTD 10/31/2012 0.750% 10/31/2017
,i. Account Page 8
quPFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015
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
200,000.00 BNP PARI 100.05 200,090.80 90.80 90.80 0.25 0.85 0.28
DTD 02/12/2014 0.325% 02/05/2016
e:- Account Page 9
�PF4I
quPFM Asset Management LLC
Managed Account Fair Market Value & Analytics For the Month Ending March 31, 2015
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
TOYOTA MOTOR CREDIT CORP
200,000.00 JPMCHASE 99.96 199,924.80 242.58 23.02 0.19 0.19 0.20
-- 0.000% 06/08/2015
Security Type Sub -Total 200,000.00 199,924.80 242.58 23.02 0.19 0.19 0.20
e:- Account Page 10
�PF4I
quPFM Asset Management LLC
� PFM'
Managed Account Fair Market Value & Analytics
NORTH PALM BEACH INVESTMENT PORTFOLIO -
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 March 31, 2015
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
Managed Account Sub -Total 8,790,000.00 8,844,606.94 (15,202.98) 27,522.73 1.86 1.89 0.64
Securities Sub -Total $8,790,000.00 $8,844,606.94 ($15,202.98) $27,522.73
Accrued Interest $17,078.37
Total Investments $8,861,685.31
4[
PFM Asset Management LLC
1.86 1.89 0.64%
Account Page 11
Managed Account Security Transactions & Interest For the Month Ending March 31, 2015
NORTH PALM BEACH INVESTMENT PORTFOLIO -
Transaction Type Principal Accrued Realized G/L Realized G/L Sale
Trade Settle Securitv Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method
03/02/15
03/05/15
JP MORGAN CHASE CORP NOTES
250,000.00
0.00
937.50
937.50
DTD 04/01/2013 0.750% 03/31/2018
Transaction Type Sub -Total 2,020,000.00 0.00 13,565.97 13,565.97
e:- Account Page 12
�PF4I
quPFM Asset Management LLC
� PFM'
WFManaged Account Security Transactions & Interest For the Month Ending March 31, 2015
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
03/27/15 03/27/15 FHLB NOTES (CALLED, OMD 3/27/17)
150,000.00 151,031.25 97.83 151,129.08 (855.47) (53.36) SPEC LOT
DTD 08/31/2011 1.000% 08/31/2016
Transaction Type Sub -Total 350,000.00 349,015.63 424.07 349,439.70 (1,417.96) (738.16)
Managed Account Sub -Total (473,586.42) 12,072.95 (461,513.47) (3,890.71) (738.16)
Total Security Transactions ($473,586.42) $12,072.95 ($461,513.47) ($3,890.71) ($738.16)
Ft Account Page 13
PFM Asset Management LLC