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12-31-2015 Investment Performance ReviewVillage of North Palm Beach, Florida '�; it/ "� North F .l Investment Performance Review Quarter Ended December 31, 2015 Investment Advisors PFM Asset Management LLC Steven Alexander, CTP, CGFO, CPPT, Managing Director Robert Cheddar, CFA, Chief Credit Officer, Managing Director D. Scott Stitcher, CFA, Senior Managing Consultant Richard Pengelly, CFA, CTP, Senior Managing Consultant 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 December 31, 2015 Tab II. Section A Quarterly Summary Report Section B Investment Portfolio & Performance Section C Asset Allocation Chart as of December 31, 2015 Tab III. December 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 December 31, 2015 TAB I Village of North Palm Beach, Florida Summary The Federal Open Market Committee (FOMC) increased the target federal funds rate by 25 basis points (bps) (0.25%) at its December meeting — its first rate hike since 2006. In doing so, the FOMC stressed its intention to normalize rates at a gradual pace. Investment Report — Quarter Ended December 31, 2015 Interest Rates ■ The new target range for the federal funds rate, as established by the FOMC, is 25 to 50 bps, ending the FOMC's seven -year "zero interest rate policy." ■ The year ended with strong job growth momentum as the economy added Interest rates across the curve moved up significantly throughout the 292,000 new jobs in December. This brought the 2015 tally to 2.65 million quarter, with the 10 -year rising approximately 23 bps to 2.27% and new jobs in total — enough to shrink the unemployment rate to 5 %. Wage the two -year moving almost 42 bps to 1.05 %. inflation edged up modestly, suggesting a chance for future inflation. • While the Federal Reserve (Fed) took the first step to normalize interest rates, other central banks have continued to implement accommodative monetary policies. The European Central Bank (ECB) extended its monetary easing policy through the first quarter of 2017 and cut its deposit rate further into negative territory (- 0.3%). The Bank of Japan (BOJ) and People's Bank of China (PBOC) also remain accommodative. • Economic Snapshot • U.S. gross domestic product (GDP) expanded at a 2% rate in the third quarter, down from the second quarter due to a reduction in inventory accumulation. • In a year -end bipartisan negotiation, Congress passed a $1.1 trillion spending and tax budget, which also lifted the 40 -year ban on U.S. crude oil exports. • Global commodity prices continued to fall, increasing concerns over global growth and the sustainability of producers within the energy sector. Headlining this rout were oil prices, which continued to slide, sinking to less than $35 per barrel in December — the lowest level since February 2009. ■ China continued to allow the yuan to weaken, ending the year at its lowest level versus the U.S. dollar in nearly six years. The Chinese economy continued to slow — stoking market concern over the world's second - largest economy — though it is expected to meet its major economic targets for the year. ■ On the shorter end, 12 -month Treasury bills ticked up approximately 30 bps to 0.60 %. Sector Performance ■ U.S. Treasury benchmark returns were negative for all but the shortest maturities (six months and under), as rates rose across the curve. While the rate increase was less pronounced for longer maturities, their extended durations — and accompanying sensitivity to changes in rates — caused their performance to trail the greatest. ■ Non - callable federal agency securities performed in line with comparable maturity Treasuries; callable securities modestly outperformed as their incremental yield helped as rates rose. ■ Corporate yield spreads reversed the prior quarter's widening, which helped the sector to outperform government - related sectors; however, absolute return was still negative. A -rated issuers were the best - performing quality category. ■ Mortgage- backed securities (MBS) were among the strongest - performing sectors in the fourth quarter, aided by slowly rising long- term rates, which helped to slow prepayments; this was particularly true for higher coupon issues. MBS joined municipals as the lone sectors to produce positive performance for the quarter. PFM Asset Management LLC Section A -1 Village of North Palm Beach, Florida Investment Report — Quarter Ended December 31, 2015 Economic Snapshot Labor Market Latest Sep 2015 Dec 2014 Unemployment Rate Dec'15 5.0% 5.1% 5.6% Unemp l oyment Rate (I eft) vs. Change in Nonfarm Pay ro l Is (right) "'o Change Iriftn-Farm Payrolls 292,000 145,000 329,000 8% Change In Nan -Farm Payr - Unemploy entRate Its 350K 300K 0K 22550K 293,000 `12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15 • Real GDP (QoQ SAAR) ' 2.0% 3.9 %' 4.3%2 Real GDP (QoQ) Average Hourly Earnings (YoY) Dec'15 2.5% 2.3% 1.8% 60/0 1 6% GDP Personal Consumption (QoQ SAAR) 2015Q3 - Personal Income o 4.4% ■ 4.6% M 4% 4% Retail Sales (YoY) NOV115 1.4% 2.2% 3.3% 2% 150K 100K 5OK 0% I Manufacturing Survey (month) Initial Jobless Claims (week) 1/1/16 277,000 276,000 293,000 `12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15 • Real GDP (QoQ SAAR) 2015Q3 2.0% 3.9 %' 4.3%2 Real GDP (QoQ) 6% GDP Personal Consumption (QoQ SAAR) 2015Q3 4% Retail Sales (YoY) NOV115 1.4% 2.2% 3.3% 2% 0% I Manufacturing Survey (month) -2% Existing Home Sales SAAR (month) NOV115 4.76 mil. 5.55 mil. 5.07 mil. 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 9/30/15 Inflation Personal Consumption Expenditures (YoY) NOd15 0.4% 0.2% 0.8% Cons umer Price Index 3% -CPI (YoY) Core CPI (YoY) Consumer Price Index (YoY) 0.5% 2% Consumer Price Index Core (YoY) NOd15 2.0% 1.9% 1.6% 1% o °% a Crude Oil Futures (WTI, per barrel) Dec 31 $37.04 $45.09 -1% Gold Futures (oz.) Dec 31 $1,060 $1,116 $1,184 12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 1. Data as of Second Quarter 2015 2. Data as of Third Quarter 2014 Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil Source: Bloomberg 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% 9/30/15 U.S. Treasury Note Yields Investment Report — Quarter Ended December 31, 2015 Investment Rate Overview 10/31/15 11/30/15 12/31/15 2 -Year 5 -Year 10 -Year U.S. Treasury Yields Source: Bloomberg PFM Asset Management LLC U.S. Treasury Yield Curve 4% 3% 2% 2 1% 0% _1% W N W U7 v W O Maturity December 31, 2015 September 30, 2015 December 31, 2014 Yield Curves as of 12/31/2015 5% 4% Change 3% Maturity 3 -month 12131115 0.17% i Quarter 0.19% 0.04% Change over Year 0.13% 1 -year 0.60% 0.31% 0.29% 0.22% 0.38% 2 -year 1.05% 0.63% 0.42% 0.67% 0.38% 5 -year 1.76% 1.36% 0.40% 1.65% 0.11% 10 -year 2.27% 2.04% 0.23% 2.17% 0.10% 30 -year 3.02% 2.85% 0.17% 2.75% 0.27% Source: Bloomberg PFM Asset Management LLC U.S. Treasury Yield Curve 4% 3% 2% 2 1% 0% _1% W N W U7 v W O Maturity December 31, 2015 September 30, 2015 December 31, 2014 Yield Curves as of 12/31/2015 5% 4% 3% m ' 2% I� 1% 0% N W Ui �I U.S. Treasury N W O Ut O Maturity Federal Agency — — Industrial Corporates, A Rated Section A -3 Village of North Palm Beach, Florida Investment Report - Quarter Ended December 31, 2015 BofA Merrill Lynch Index Returns As of 12/31/2015 Returns for Periods ended 12/31/2015 Returns for periods greater than one year are annualized 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 1.06% (0.44 %) 0.54% 0.51% ge 1.14% (0.37 %) 0.69% 0.61% 1.22% U.S. Corporates, A -AAA rated 1.90 1.82% (0.05 %) 1.16% �m 1 ■ 0.98% - Municipals 1.84 0.96% (0.08 %) 0.76% 0.85% Year • U.S. Treasury 2.70 1.29% (0.66 %) 0.98% 0.67% Federal Agency 49 %) 0.97% 0.76% U.S. Corporates, A -AAA rated 2.71 2.13% (0.16 %) 1.52% 1.59% Agency MBS (0 to 5 years) Municipals 2.52 1.15% 0.08% 1.20% 1.24% Indices Master or U.S. Treasury 6.19 1.77% (0.93 %) 0.83% 1.09% F 1.69% 1w _ U.S. Corporates, A -AAA rated 6.64 3.08% (0.09 %) 0.67% 1.97% Agenc BS (0 to 30 years) 2.63% (0.06 %) 1.46% 2.00% Municipals 76r.74 2.34% 1.72% 3.55% 3.35% 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 December 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 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. PFMAM is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. PFMAM's clients are state and local governments, non- profit corporations, pension funds, and similar institutional investors. www.pfm.com. © 2015 PFM Asset Management LLC. 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 December 31, 2015 TAB II Village of North Palm Beach, Florida Investment Report - Quarter Ended December 31, 2015 Quarterly Summary Report Total Portfolio Value' December 31.2015' September 30, 2015 Market Value Amortized Cost $8,957,696.35 $8,981,291.20 $8,985,587.57 $8,959,815.29 Fiscal Year 2016 Fiscal Year 2015 Quarterly Interest Income December 31, 2015 September 30, 2015 Quarterly Return Last Last Last r Last $28,068.51 Since Inception Total Return '° December 31, 2015 12 Months 2 Years 3 Years 5 Years 2.01 June 30, 2009 Investment Portfolio -0.31% 0.63% 0.65% 0.55% 0.73% 1.02% Merrill Lynch 1 -3 Year U.S. Treasury Index -0.44% 0.54% 0.58% 0.51% 0.70% Previous Quarter 1.02% Fiscal Year 2016 Current Quarter Previous Quarter December 31, 2015 September 30, 2015 Current Quarter Year to Date Previous Quarter Effective Duration(Years) s December 31, 2015 September 30. 2015 Investment Portfolio Yields December 31, 2015 September 30. 2015 Investment Portfolio 1.81 1.63 Yield at Market 1.13% 0.70% Merrill Lynch 1 -3 Year U.S. Treasury Index 1.80 1.79 Yield at Cost L 1.00% 0.90% Portfolio Duration % of Benchmark Duration 100% 91% E P CU Of 0.00% -0.25% -0.50% -0.75% 1.00 Quarter Total Return Comparison Quarter Ended 12/31/15 1.50 2.00 2.50 3.00 Effective Duration (Years) Quarter Ended 12/31 /15 2.00 Notes: 1. In order to comply with GAS 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 W_ Current Quarter Previous Quarter Fiscal Year 2016 Fiscal Year 2015 Quarterly Interest Income December 31, 2015 September 30, 2015 Fiscal Year Interest Income Year to Date Investment Portfolio $20,711.43 $28,068.51 Investment Portfolio $20,711.43 $95,240.05 TD Bank Money Market Fund 2.01 1.96 TD Bank Money Market Fund 2.01 5.76 Total $20,713.44 $28,070.47 Total $20,713.44 $95,245.81 Current Quarter Previous Quarter Fiscal Year 2016 Fiscal Year 2015 Quarterly Realized Gain /Loss on Cost December 31, 2015 September 30, 2015 Fiscal Year Realized Gain /Loss on Cost Year to Date Investment Portfolio ($53,487.04) ($5,213.73) Investment Portfolio ($53,487.04) (15,727.71) Notes: 1. In order to comply with GAS 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 December 31, 2015 ➢ The Village's Investment Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, Supranational Agency, commercial paper, municipal obligations, and high quality corporate securities. ➢ The Portfolio's quarterly total return performance of -0.31 %, outperformed the benchmark's performance of -0.44% by 0.13 %. Over the past year, the Portfolio earned 0.63 %, versus 0.54% for the benchmark. ➢ PFMAM maintained a modestly defensive duration position for much of the quarter as rates trended higher. As rates approached the upper end of recent ranges ahead of the FOMC meeting, we extended portfolio durations from short of the benchmark's duration to a near - neutral position; this more closely aligned portfolio durations with the durations of their respective benchmarks. ➢ Ahead of the December FOMC meeting, market expectations were for an initial Fed Funds hike, supported by assurances that future policy changes would be gradual. Market reaction after the FOMC's announcement to raise the target range for the federal funds rate was relatively subdued, evidence that the action was in line with these expectations, a goal of the FOMC's effort to provide transparency to investors. ➢ Recent FOMC projections indicate that Committee members anticipate that three or four rate hikes may be appropriate in 2016 — projections that most market participants believe to be overstated. We believe that expectations for low inflation will limit this year's rate hikes to two or three, and that short term yields will trend only modestly higher in the near term. We expect long -term rates to remain within modest ranges, resulting in further flattening of the yield curve. ➢ We maintain the outlook that the economy will continue to expand at a moderate pace in the intermediate term. We will continue to monitor any spillover effect that modest global growth and muted inflation may have on the U.S. economy. These factors will help justify the FOMC's stated intention to remain patient in the pace at which it raises the federal funds rate. ➢ 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 December 31, 2015 Investment Portfolio Composition and Credit Quality Characteristics Security Type' December 31, 2015 % of Portfolio September 30, 2015 % of Portfolio U.S. Treasuries $5,915,869.06 66.0% $5,647,583.74 62.9% Federal Agencies 930,627.66 10.4% 934,039.89 10.4% Commercial Paper 199,849.20 2.2% 199,681.00 2.2% 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 120,620.80 1.3% 121,118.20 1.3% Corporate Notes /Bonds 1,602,387.18 17.9% 1,867,338.37 20.8% Supranational Agency 119,054.69 1.3% 120,391.97 1.3% Mortgage Backed Securities 0.00 0.0% 0.00 0.0% Money Market Fund /Cash 69,287.76 0.8% 95,434.40 1.1% Totals $8,957,696.35 100.0% $8,985,587.57 100.0% Portfolio Composition as of 12/31/15 A -1 (Short 2.250/ A- 2.25' A 9.90% E 0.7 4.75% AAA Credit Quality Distribution 1.34 %l as of 12/31 /15 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. AA+ 78.72% PFM Asset Management LLC Section B - 2 Village of North Palm Beach, Florida Investment Report - Quarter Ended December 31, 2015 Investment Portfolio Maturity Distribution Maturity Distribution' December 31, 2015 September 30, 2015 Overnight (Money Market Fund) $69,287.76 $95,434.40 Under 6 Months 199,849.20 199,681.00 6 - 12 Months 767,210.46 1,423,951.54 1 - 2 Years 3,863,044.13 4, 709, 063.41 2 - 3 Years 3,179,268.39 2,557,457.22 3 - 4 Years 889,046.41 0.00 4 - 5 Years 0.00 0.00 5 Years and Over 0.00 0.00 Totals $8.967.696.36 $8,985,587.57 r-Ut uUttU tvtaLut ny utau tuuuUt t - ■December 31, 2015 ■September 30, 2015 52.4% 43.1 %_ 2.2% 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. a r ears ana uvE PFM Asset Management LLC Section B - 3 Village of North Palm Beach, Florida Investment Report - Quarter Ended December 31, 2015 Investment Portfolio Maturity Distribution versus the Benchmark' 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% IVJ �O �� �O nI 1O �'^� �O �'^� h0 �� �O ,tip �O �� �O IVJ �O �h �O O O 1 1 ' 1 ti ti `ti ti ^� ^� D h �Z. ^� 00. L i ,0 i ^� . 00 i n� . �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 Municipal Obligations 0.56% Corporate Notes_ 7.40% Commercial Paper 0.92% Supranationals 0.55% Money Market Mutual Funds 1.02% Interest Bearing Checking or Savings Account 55.53% Federal Agency (GSE) -,-"' United States \ 4.30% Treasury Securities Florida Prime (SBA) 27.36% 2.36% Security Type - Amortized Cost (Includes Interest) Allocation Percentage Notes Permitted by Policy In Compliance Florida Prime (SBA) 511,976.74 2.36% 2 25% YES United States Treasury Securities 5,934,720.63 27.36% 100% YES Federal Agency (GSE) 932,125.93 4.30% 75% YES Supranationals 119,892.72 0.55% 25% YES Mortgage- Backed Securities - 0.00% 25% YES Asset Backed Securities - 0.00% 25% YES Certificates of Deposit - 0.00% 50% YES Commercial Paper 199,790.00 0.92% 3 50% YES Corporate Notes 1,605,066.97 7.40% 3 50% YES Municipal Obligations 120,407.19 0.56% 25% YES Money Market Mutual Funds 220,242.19 1.02% 50% YES Intergovernmental Investment Pool - 0.00% 50% YES Interest Bearing Checking or Savings Account 12,044,494.38 55.53% 2 100% YES Village Managed 12,707,425.58 58.59% PFM Managed 8,981,291.17 41.41% Total 21,688,716.75 100.00% Notes: 1. All assets are included. PFM managed securities are shown on Amortized Cost plus Accrued Interest basis 2. These Accounts are managed by the Village. 3. Maximum allocation to all corporate and bank credit instruments is 50% combined. Individual Issuer Breakdown Amortized Cost (Includes Interest) Allocation Percentage Notes Permitted by Policy In Compliance Government National Mortgage Association (GNMA) - 0.00% 40% YES Federal Farm Credit Bank (FFCB) - 0.00% 40% YES Federal Home Loan Bank (FHLB) 315,424.14 1.45% 40% YES Federal National Mortgage Association (FNMA) 100,060.32 0.46% 40% YES Federal Home Loan Mortgage Corporation (FHLMC) 516,641.47 2.38% 40% YES State of California Municipal Bonds 120,407.19 0.56% 5% YES American Honda Finance Corporate Notes 70,121.35 0.32% 5% YES Bank of New York Company Inc. Corporate Notes 200,332.26 0.92% 5% YES Cisco Systems, Inc. Corporate Notes 190,112.88 0.88% 5% YES ConocoPhillips Corporate Notes 40,072.87 0.18% 5% YES Deere & Company Corporate Notes 100,200.42 0.46% 5% YES General Electric Capital Corporation Corporate Notes 150,327.43 0.69% 5% YES HSBC Holdings plc Corporate Notes 201,312.17 0.93% 5% YES JP Morgan Chase & Company Corporate Notes 201,087.03 0.93% 5% YES PepsiCo, Inc. Corporate Notes 190,526.05 0.88% 5% YES Toyota Motor Corporation Corporate Notes 110,716.84 0.51% 5% YES Wells Fargo & Company Corporate Notes 150,257.67 0.69% 5% YES JP Morgan Chase & Company Commercial Paper 199,790.00 0.92% 5% YES Money Market Fund - TD Bank Sweep Account 69,287.73 0.32% 33% YES Interest Bearing Checking /Savings Acct -Wells Fargo 10,514,725.50 48.48% 2 50% YES Interest Bearing Checking /Savings Acct - Flagler Bank 502,720.36 2.32% 2 50% YES Interest Bearing Checking /Savings Acct- BankUnited 1,027,048.52 4.74% 2 50% YES Money Market Fund - Wells Fargo Advantage Fund 150,954.46 0.70% 2 33% YES International Bank of Recon and Dev Global Notes 119,892.72 0.55% 10% 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 December 31, 2015 TAB III Village of North Palm Beach, Florida Investment Report - Quarter Ended December 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. PFM' ivManaged Account Summary Statement NORTH PALM BEACH INVESTMENT PORTFOLIO - Opening Market Value $8,874,787.54 Maturities/Calls 0.00 Principal Dispositions (881,528.13) Principal Acquisitions 891,032.82 Unsettled Trades 0.00 Change in Current Value (16,625.88) Closing Market Value $8,867,666.35 Interest /Dividends /Coupons Received 10,729.50 Less Purchased Interest Related to Interest /Coupons (6,045.04) Plus Net Realized Gains /Losses (3,045.70) Total Cash Basis Earnings $1,638.76 Ending Amortized Value of Securities 8,891,261.20 Ending Accrued Interest 20,742.24 Plus Proceeds from Sales 883,469.44 Plus Proceeds of Maturities /Calls /Principal Payments 0.00 Plus Coupons /Dividends Received 8,788.19 Less Cost of New Purchases (897,077.86) Less Beginning Amortized Value of Securities (8,882,555.68) Less Beginning Accrued Interest (18,088.18) Total Accrual Basis Earnings $6,539.35 For the Month Ending December 31, 2015 Maturities/Calls 0.00 Sale Proceeds 883,469.44 Coupon /Interest /Dividend Income 8,788.19 Principal Payments 0.00 Security Purchases (897,077.86) Net Cash Contribution 0.00 Reconciling Transactions 0.00 Closing Cash Balance $69,287.76 �PF1I Account Page i PFM Asset Management LLC Portfolio Summa ry and Statistics NORTH PALM BEACH INVESTMENT PORTFOLIO - Description Par Value Market Value Percent U.S. Treasury Bond / Note 5,915,000.00 5,903,247.96 66.58 Supra - National Agency Bond / Note 120,000.00 119,001.36 1.34 Municipal Bond / Note 120,000.00 120,370.80 1.36 Federal Agency Bond / Note 930,000.00 927,994.61 10.46 Corporate Note 1,600,000.00 1,597,202.42 18.01 Commercial Paper 200,000.00 199,849.20 2.25 Managed Account Sub -Total 8,885,000.00 8,867,666.35 100.00% Accrued Interest 20,742.24 Total Portfolio 8,885,000.00 8,888,408.59 Unsettled Trades 43.45% 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 66.58% For the Month Ending December 31, 2015 Commercial Paper 2.25% Corporate Note 18.01% Fed Agy Bond / Note 10.46% Muni Bond / Note 1.36% Supra - National Agency Bond / Note 1.34% Yield to Maturity at Cost 1.00% Yield to Maturity at Market 1.13% Duration to Worst 1.82 Weighted Average Days to Maturity 677 M• Page 2 PFM Asset Management LLC PFM' Managed Account Issuer Summary NORTH PALM BEACH INVESTMENT PORTFOLIO - M Market Value Issuer of Holdings Percent AMERICAN HONDA FINANCE 70,056.07 0.79 BANK OF NEW YORK CO INC 199,252.00 2.25 CISCO SYSTEMS INC 190,794.01 2.15 CONOCOPHILLIPS 39,266.88 0.44 DEERE & COMPANY 100,116.90 1.13 FANNIE MAE 99,774.60 1.13 FEDERAL HOME LOAN BANKS 314,489.63 3.55 FREDDIE MAC 513,730.38 5.79 GENERAL ELECTRIC CO 150,354.60 1.70 HSBC HOLDINGS PLC 198,883.60 2.24 INTL BANK OF RECONSTRUCTION AND DEV 119,001.36 1.34 JP MORGAN CHASE & CO 398,879.40 4.50 PEPSICO, INC 189,571.63 2.14 STATE OF CALIFORNIA 120,370.80 1.36 TOYOTA MOTOR CORP 109,740.18 1.24 UNITED STATES TREASURY 5,903,247.96 66.56 WELLS FARGO & COMPANY 150,136.35 1.69 Total $8,867,666.35 100.000/0 AAA 1.34% AA- 4.75% AA+ 78.74% For the Month Ending December 31, 2015 .89% .79% .24% -1 .25% • Page 3 �PF1I PFM Asset Management LLC S Ir PFM, Managed Account Detail of Securities Held For the Month Ending December 31, 2015 �ALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description S &P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date /Coupon /Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note US TREASURY NOTES 450,000.00 AA+ Aaa 11/05/15 11/09/15 451,265.63 1.15 958.10 451,203.92 449,367.30 DTD 10/31/2013 1.250% 10/31/2018 � M• Page 4 PFM Asset Management LLC a_ Managed Account Detail of Securities Held For the Month Ending December 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 TREASURY NOTES 912828A75 525,000.00 AA+ Aaa 12/01/15 12/04/15 529,429.69 1.22 21.63 529,319.24 527,378.78 DTD 12/31/2013 1.500% 12/31/2018 Security Type Sub -Total Supra-National Agency Bond / Note 5,915,000.00 5,920,496.31 0.94 12,621.10 5,922,099.53 5,903,247.96 DTD 04/30/2015 1.000% 06/15/2018 Security Type Sub -Total Municipal Bond Note 120,000.00 119,794.80 1.06 53.33 119,839.39 119,001.36 / TAXABLE GO BONDS 13063CFD7 120,000.00 AA- Aa3 10/22/13 11/05/13 120,562.80 1.09 250.00 120,157.19 120,370.80 DTD 11/05/2013 1.250% 11/01/2016 Security Type Sub -Total Federal Agency Bond / Note 120,000.00 120,562.80 1.09 250.00 120,157.19 120,370.80 25/2012 1.000% 07/28/2017 �PF1I Page 5 PFM Asset Management LLC a_ Managed Account Detail of Securities Held For the Month Ending December 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Security Type/ Description Dated Date /Coupon /Maturity Federal Agency Bond / Note 25/2014 1.000% 09/27/2017 CUSIP 3135GOZL0 Par 100,000.00 S &P Rating AA+ Moody's Rating Aaa Trade Date 08/21/14 Settle Date 08/25/14 Original Cost 99,643.00 YTM at Cost 1.12 Accrued Interest 261.11 Amortized Cost 99,799.21 Market Value 99,774.60 Security Type Sub -Total Corporate 930,000.00 928,935.31 0.84 2,633.05 929,492.88 927,994.61 SYSTEMS INC CORP NOTE 17275RAU6 190,000.00 AA- Al 06/10/15 06/17/15 189,967.70 1.66 139.33 189,973.55 190,794.01 DTD 06/17/2015 1.650% 06/15/2018 ,I. Page 6 quPFM Asset Management LLC PFM, ivManaged Account Detail of Securities Held For the Month Ending December 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 CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate TOYOTA MOTOR CREDIT CORP 110,000.00 AA- Aa3 07/08/15 07/13/15 109,906.50 1.58 795.67 109,921.17 109,740.18 DTD 07/13/2015 1.550% 07/13/2018 Security Type Sub -Total 1,600,000.00 1,599,534.00 1.37 5,184.76 1,599,882.21 1,597,202.42 Commercial Paper JP MORGAN SECURITIES LLC COMM PAPER 200,000.00 A -1 P -1 06/08/15 06/08/15 199,100.00 0.60 0.00 199,790.00 199,849.20 -- 0.000% 03/04/2016 Security Type Sub -Total 200,000.00 199,100.00 0.60 0.00 199,790.00 199,849.20 Managed Account Sub -Total 8,885,000.00 8,888,423.22 1.00 20,742.24 8,891,261.20 8,867,666.35 Securities Sub -Total $8,885,000.00 $8,888,423.22 1.00% $20,742.24 $8,891,261.20 $8,867,666.35 Accrued Interest $20,742.24 Total Investments $8,888,408.59 •-%5:- Page 7 �PF1I WF PFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending December 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 NOTES 912828A75 525,000.00 HSBC 100.45 527,378.78 (2,050.91) (1,940.46) 2.93 2.93 1.35 DTD 12/31/2013 1.500% 12/31/2018 Security Type Sub -Total 5,915,000.00 5,903,247.96 (17,248.35) (18,851.57) 2.01 2.01 1.10 e:- Page 8 �PF1I quPFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending December 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 INTL BANK OF RECON AND DEV GLOBAL 120,000.00 BARCLAYS 99.17 119,001.36 (793.44) (838.03) 2.41 2.41 1.35 NOTES DTD 04/30/2015 1.000% 06/15/2018 Security Type Sub -Total 120,000.00 119,001.36 (793.44) (838.03) 2.41 2.41 1.35 CA ST TAXABLE GO BONDS 120,000.00 CITIGRP 100.31 120,370.80 (192.00) 213.61 0.83 0.83 0.88 DTD 11/05/2013 1.250% 11/01/2016 Security Type Sub -Total 120,000.00 120,370.80 (192.00) 213.61 0.83 0.83 0.88 3135GOZL0 100,000.00 MORGANST 99.77 99,774.60 131.60 (24.61) 1.71 1.71 1.13 DTD 08/25/2014 1.000% 09/27/2017 Security Type Sub -Total 930,000.00 927,994.61 (940.70) (1,498.27) 1.27 1.28 0.98 GENERAL ELEC CAP CORP (FLOATING) 150,000.00 WELLSFAR DTD 07/29/2013 0.847% 07/20/2016 �pr"M quPFM Asset Management LLC 100.24 150,354.60 354.60 354.60 0.25 0.53 0.54 100.09 150,136.35 136.35 136.35 0.25 0.55 0.69 Page 9 Managed Account Fair Market Value & Analytics For the Month Ending December 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 MOTOR CREDIT CORP 89236TCP8 110,000.00 JPMCHASE 99.76 109,740.18 (166.32) (180.99) 2.46 2.46 1.65 DTD 07/13/2015 1.550% 07/13/2018 Security Type Sub -Total 1,600,000.00 1,597,202.42 (2,331.58) (2,679.79) 1.62 1.67 1.41 JP MORGAN SECURITIES LLC COMM PAPER 200,000.00 JPMCHASE 99.92 199,849.20 749.20 59.20 0.18 0.18 0.42 -- 0.000% 03/04/2016 Security Type Sub -Total 200,000.00 199,849.20 749.20 59.20 0.18 0.18 0.42 Managed Account Sub -Total 8,885,000.00 8,867,666.35 (20,756.87) (23,594.85) 1.81 1.82 1.13 �PF1I Page 10 PFM Asset Management LLC = PFM' Managed Account Fair Market Value & Analytics For the Month Ending December 31, 2015 NORTH PALM BEACH INVESTMENT PORTFOLIO - Securities Sub -Total $8,885,000.00 $8,867,666.35 ($20,756.87) ($23,594.85) 1.81 1.82 1.13% Accrued Interest $20,742.24 Total Investments $8,888,408.59 =PF1I Page 11 PFM Asset Management LLC Managed Account Security Transactions & Interest For the Month Ending December 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 12/01/15 12/04/15 US TREASURY NOTES 360,000.00 (361,603.13) (2,685.33) (364,288.46) DTD 12/31/2013 1.500% 12/31/2018 Transaction Type Sub -Total 885,000.00 (891,032.82) (6,045.04) (897,077.86) 12/01/15 TREASURY NOTES 912828A75 525,000.00 0.00 3,937.50 3,937.50 186.82 200,764.95 DTD 12/31/2013 1.500% 12/31/2018 (140.62) (103.66) SPEC LOT Transaction Type Sub -Total 1,195,000.00 0.00 8,788.19 8,788.19 12/01/15 12/ TREASURY NOTES 912828SC5 90,000.00 90,070.31 325.27 90,395.58 (414.85) (128.14) SPEC LOT DTD 01/31/2012 0.875% 01/31/2017 �PF1I Page 12 PFM Asset Management LLC = PFM' Managed Account Security Transactions & Interest For the Month Ending December 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 Transaction Type Sub -Total 880,000.00 881,528.13 1,941.31 883,469.44 (3,045.70) (781.11) Managed Account Sub -Total (9,504.69) 4,684.46 (4,820.23) (3,045.70) (781.11) Total Security Transactions ($9,504.69) $4,684.46 ($4,820.23) ($3,045.70) ($781.11) =PF1I Page 13 PFM Asset Management LLC