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06-30-2018 Investment Performance ReviewVillage of North Palm Beach, Florida
Investment Advisors
213 Market Street
Harrisburg, PA 17101
717.232.2723
717.233.6073 fax
PFM Asset Management LLC
300 South Orange Avenue
Suite 1170
Orlando, FL 32801
407.648.2208
407.648.1323 fax
Investment Performance Review
For the Quarter Ended June 30. 2018
Steven Alexander, CTP, CGFO, CPPT, Managing Director
Robert Cheddar, CFA, Chief Credit Officer, Managing Director
Richard Pengelly, CFA, CTP, Director
Jason Human, Client Manager
Cody Raulerson, Analyst
Page 1 of 57
VILLAGE OF NORTH PALM BEACH, FLORIDA
For the Quarter Ended June 30. 2018
Table of Contents
PFM Asset Management LLC
Tab I
Market Update
Tab II
Executive Summary
Investment Portfolio
Tab III
Asset Allocation Chart
Important Disclosures
Page 2 of 57
Tab I
PFM Asset Management LLC Page 3 of 57
QUARTERLY MARKET SUMMARY
For the Quarter Ended June 30, 2018
Fixed Income Management
SUMMARY
• Economic data continued to indicate strong growth worldwide, despite the
myriad of geopolitical and global trade war events hitting the headlines. During
the quarter, volatility waned, equity markets gained their footing, the U.S. Dollar
(USD) continued its ascent and the Federal Open Market Committee’s (FOMC)
dual mandate came into clearer focus. But, with trade wars officially on, it’s now a
question of whether the strong fiscal stimulus that is fueling the U.S. economy will
be enough to overcome the drag of trade uncertainty.
• Positive economic data released in the second quarter included job gains, housing
starts, new home sales, factory orders, manufacturing survey indices and consumer
sentiment.
• At its June FOMC meeting, the Federal Reserve (Fed) increased the overnight
federal funds rate by 0.25 percent, to a new range of 1.75 to 2.00 percent. While
widely anticipated, the June rate hike was consistent with the Fed’s continuing
resolve to gradually tighten monetary policy. Fed expectations – as measured by
the FOMC’s updated “dot plot” – indicated two more rate hikes in the second half
of 2018 and three more in 2019. Market estimates – as measured by Fed funds
futures contracts – similarly imply two more hikes in 2018, but are less optimistic for
2019.
• The S&P 500 Index (S&P) rebounded by 3.4 percent over the quarter, following
the first quarterly decline (first quarter 2018) in nearly three years. International
indices followed suit, posting gains in local currencies for the quarter; however, the
stronger USD tempered those gains for domestic investors. Meanwhile, bond yields
generally rose, while the yield curve flattened.
ECONOMIC SNAPSHOT
• Real gross domestic product (GDP) in the U.S. increased at an annual rate of
2 percent in the first quarter. The deceleration in growth was driven by weaker
consumer spending, despite being boosted by a significant improvement in net
exports. Looking forward, federal tax cuts and expanded spending point toward
accelerated growth estimates for the second quarter.
• U.S. labor market conditions – part one of the Fed’s dual mandate – remained
strong during the quarter. Despite the quarter-end uptick in the headline
unemployment rate to 4 percent (previously 3.8 percent), it remains near multi-
decade lows. In addition, job growth remains robust (monthly average of 211,000
new jobs in the second quarter), weekly jobless claims reached a generational low
and job openings reached a new record high. In fact, for the first time, there are
more job openings than the number of unemployed persons.
• Inflation – the second part of the Fed’s dual mandate – continued to march higher.
As measured by the personal consumption expenditures (PCE) core price index,
year-over-year (YoY) inflation reached the Fed’s target of 2 percent for the first time
since 2012.
INTEREST RATES
• U.S. Treasury yields generally rose over the quarter, with maturities less than three
years increasing 20 to 25 basis points (bps) (0.20 to 0.25 percent), while maturities
greater than five years increased by a lesser amount and 30-year Treasury bonds
were nearly unchanged. The result was a flatter yield curve; the difference between
10-year and two-year Treasury yields narrowed to 33 bps (0.33 percent) by quarter-
end, a level not hit since June 2007.
• Money market investments, like commercial paper and bank Certificates of Deposit
(CDs), continued to offer attractive yields, reacting quickly to the periodic Fed rate
hikes.
• After widening in the first quarter, credit spreads remained volatile in the second
quarter, but ended the quarter only modestly wider. Healthy corporate fundamentals
remained supportive.
SECTOR PERFORMANCE
• Rising yields caused shorter-maturity to outperform longer-maturity Treasury
indices; the exception was 30-year Treasury bonds, which were buoyed by
incremental income amid relatively unchanged yields over the quarter. For example,
the three-month Treasury bill index generated +0.45 percent of total return for
the quarter, while the five-year Treasury returned -0.05 percent, and the 30-year
Treasury returned +0.51 percent.
• Federal agency returns were in line with similar-duration U.S. Treasury securities
for the quarter, as spreads across the majority of the curve continued to trade very
narrowly. The incremental income benefit from the sector continues to be minimal.
• For the second consecutive quarter, the municipal sector was a top performer,
as the sector continued to reap the benefits of a sharp slowdown in supply
following the year-end flurry of issuance. From both an absolute and excess return
perspective, the sector was a positive contributor to portfolio performance for the
quarter.
• Shorter-term corporates generated positive excess returns in the quarter as
incremental income offset modestly wider yield spreads. But, longer-term
corporates (five years and longer) underperformed Treasuries as the impact of
wider yield spreads on longer-duration securities overwhelmed the benefit of higher
yields.
• After a general underperformance of mortgage-backed securities (MBS) in the first
quarter, the sector found its footing in the second quarter. Nevertheless, returns in
the MBS sector continue to be very much structure-dependent as specific maturity
and coupon characteristics drove relative performance.
• Short-term commercial paper and bank CDs continued to offer incremental
value relative to both short- and intermediate-term government securities. The
incremental yield advantage offered in these sectors continues to be a valuable
return attribute in the face of rising rates.
PFM Asset Management LLC Page 4 of 57
QUARTERLY MARKET SUMMARY
For the Quarter Ended June 30, 2018
Fixed Income Management
Economic Snapshot
Labor Market Mar '18 Jun '17
Unemployment Rate Jun '18 4.0%4.1%4.3%
Change In NonFarm Payrolls Jun '18 213,000 155,000 239,000
Average Hourly Earnings (YoY)Jun '18 2.7%2.6%2.5%
Personal Income (YoY)May '18 4.0%3.7%2.4%
Initial Jobless Claims (week)6/30/18 231,000 242,000 251,000
Growth
Real GDP (QoQ SAAR)2018Q1 2.0%2.9%1.2%
GDP Personal Consumption (QoQ SAAR)2018Q1 0.9%4.0%1.9%
Retail Sales (YoY)May '18 5.9%5.1%3.5%
ISM Manufacturing Survey (month)Jun '18 60.2 59.3 56.7
Existing Home Sales SAAR (month) May '18 5.43 mil. 5.60 mil. 5.50 mil.
Inflation / Prices
Personal Consumption Expenditures (YoY) May '18 2.3%2.0%1.4%
Consumer Price Index (YoY)May '18 2.8%2.4%1.6%
Consumer Price Index Core (YoY)May '18 2.2%2.1%1.7%
Crude Oil Futures (WTI, per barrel)Jun 30 $74.15 $64.94 $46.04
Gold Futures (oz.)Jun 30 $1,255 $1,323 $1,242
Latest
0
150K
300K
450K
3%
4%
5%
6%
Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Jun '18
Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
Change In NonFarm Payrolls Unemployment Rate
0%
2%
4%
Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18
Real GDP (QoQ)
0%
1%
2%
3%
Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Jun '18
Consumer Price Index
CPI (YoY)Core CPI (YoY)
2
2
1
1
1. Data as of Fourth Quarter 2017.
2. Data as of First Quarter 2017.
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 Page 5 of 57
QUARTERLY MARKET SUMMARY
For the Quarter Ended June 30, 2018
Fixed Income Management
Source: Bloomberg.
Interest Rate Overview
U.S. Treasury Note Yields U.S. Treasury Yield Curve
U.S. Treasury Yields Yield Curves as of 6/30/18
0%
1%
2%
3%
4%3-mo1-yr2-yr3-yr5-yr7-yr10-yr30-yrYieldMaturity
June 30, 2018 March 31, 2018 June 30, 2017
Maturity Jun '18 Mar '18
Change
Over
Quarter
Jun '17 Change
Over Year
3-month 1.92% 1.71% 0.21% 1.01% 0.91%
1-year 2.31% 2.09% 0.22% 1.23% 1.08%
2-year 2.53% 2.27% 0.26% 1.38% 1.15%
5-year 2.74% 2.56% 0.18% 1.89% 0.85%
10-year 2.86% 2.74% 0.12% 2.31% 0.55%
30-year 2.99% 2.97% 0.02% 2.84% 0.15%
0%
1%
2%
3%
4%
5%3-mo1-yr2-yr3-yr5-yr7-yr10-yr25-yr30-yrYieldMaturity
U.S. Treasury Federal Agency Corporates, A Rated
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
6/30/17 9/30/17 12/31/17 3/31/18 6/30/18Yield
2-Year 5-Year 10-Year
PFM Asset Management LLC Page 6 of 57
QUARTERLY MARKET SUMMARY
For the Quarter Ended June 30, 2018
Fixed Income Management
Source: ICE BofAML Indices.
June 30, 2018 Duration Yield 3 Month 1 Year 3 Years
1-3 Year Indices
U.S. Treasury 1.81 2.51% 0.22% 0.08% 0.42%
Federal Agency 1.67 2.55% 0.23% 0.30% 0.60%
U.S. Corporates, A-AAA rated 1.89 3.11% 0.47% 0.57% 1.28%
Agency MBS (0 to 3 years)2.40 2.84%(0.05%)0.34% 1.06%
Taxable Municipals 1.58 2.83% 0.40% 1.74% 2.21%
1-5 Year Indices
U.S. Treasury 2.58 2.58% 0.13%(0.35%)0.50%
Federal Agency 2.01 2.59% 0.20% 0.08% 0.69%
U.S. Corporates, A-AAA rated 2.66 3.26% 0.30% 0.08% 1.45%
Agency MBS (0 to 5 years)3.29 3.04%(0.21%) (0.35%)1.00%
Taxable Municipals 2.29 2.96% 0.33% 1.39% 2.37%
Master Indices (Maturities 1 Year or Greater)
U.S. Treasury 6.22 2.71% 0.11%(0.60%)1.13%
Federal Agency 3.78 2.75%(0.02%) (0.04%)1.16%
U.S. Corporates, A-AAA rated 6.90 3.74%(0.70%) (0.80%)2.62%
Agency MBS (0 to 30 years)5.09 3.38% 0.31% 0.15% 1.48%
Taxable Municipals 10.53 3.99%(0.28%)2.81% 5.49%
As of 6/30/18 Returns for Periods ended 6/30/18
Returns for periods greater than one year are annualized.
PFM Asset Management LLC
ICE BofAML Index Returns
Page 7 of 57
QUARTERLY MARKET SUMMARY
For the Quarter Ended June 30, 2018
Fixed Income Management
DISCLOSURES
PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company.
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.
Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment
Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
For more information regarding PFM’s services or entities, please visit www.pfm.com.
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC 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, 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.
© 2018 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.
PFM Asset Management LLC Page 8 of 57
Tab II
PFM Asset Management LLC Page 9 of 57
VILLAGE OF NORTH PALM BEACH, FLORIDA
For the Quarter Ended June 30. 2018
Executive Summary
PFM Asset Management LLC
The Investment Portfolio is of high credit quality and invested in U.S. Treasury,federal agency/GSE, federal agency/CMO,
supranational,municipal,asset-backed, and corporate note securities.
The Investment Portfolio’s quarterly total return performance of 0.35%outperformed the benchmark performance of 0.22%
by 0.13%.The last 12 months total return performance for the Portfolio was 0.38% versus the benchmark’s return of
0.08%.
Despite the myriad of global headwinds to economic growth,including global trade wars and geopolitical uncertainty,the
strength and resolve of domestic economic themes continued to rule the day:
–U.S. GDP grew at 2% in Q1 with YOY growth up to 2.8%;
–Inflation trended higher, as the personal consumption expenditures (PCE) core price index grew at 2%YOY for the
first time since 2012;
–The labor market saw continued strength as the U.S.unemployment rate reached a multi-decade low of 3.8%(before
bouncing back to 4% in June), job growth remained robust, and wages trended modestly higher;
–The S&P 500 Index grinded out a 3.4% return for the quarter;
–The Fed increased short-term rates by an additional ¼percent in June and is expected to continue to pursue
additional gradual rate hikes over the near-term.
In light of continued economic growth, inflation near the Fed’s symmetric target of 2%,and strong labor market conditions,
the Fed appears poised to raise rates further. As a result of the expectation for one or two additional hikes in 2018 and
three to four more in 2019,our view remains that the general trend of interest rates will be to increase gradually over the
near-term.Therefore,we plan to maintain a defensive duration posture to mitigate a portion of interest rate risk relative to
benchmarks.
Page 10 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Snapshot
Portfolio Statistics
As of June 30, 2018
$9,248,603
$9,161,120
$9,116,517
$34,596
$10,007
Accrued Interest:
Cash:
Par Value:
Total Market Value:
Security Market Value:
$9,232,381
2.65%
1.84%
AAAverage Credit: *
Yield at Cost:
Amortized Cost:
Yield at Market:
Effective Duration:1.72 Years
Duration to Worst:1.79 Years
Average Maturity:2.10 Years
Credit Quality (S&P Ratings)
4.8%
A
3.8%
A-
12.5%
A+
3.1%
AA
7.7%
AA-
43.0%
AA+
17.9%
AAA
0.9%
BBB+
6.3%
Not Rated
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years
10.4%
38.9%
36.1%
9.3%
3.9%
1.4%
Maturity Distribution
Sector Allocation
15.4%
Asset-Backed
31.5%
Corporate
1.3%
Federal
Agency/CMO
10.4%
Federal
Agency/GSE
3.1%
Municipal
7.6%
Supra-Sov /
Supra-Natl
Agency
30.7%
U.S.
Treasury
PFM Asset Management LLC
* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.
Account ****0001Page 11 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Performance
Portfolio Performance (Total Return)
Effective
DurationPortfolio/Benchmark
Annualized Return
10 Year1 Year 3 Year 5 Year Since Inception
(06/30/09) **
Current
Quarter
NORTH PALM BEACH INVESTMENT PORTFOLIO 1.72 0.35%-0.38%0.75%0.79%0.99%
ICE BofAML 1-3 Year U.S. Treasury Index 1.80 0.22%-0.08%0.42%0.58%0.89%
Difference 0.30% 0.13%0.33%0.21%-0.10%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception
0.35%0.38%
0.75%0.79%
0.99%
0.22%
0.08%
0.42%
0.58%
0.89%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index
PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated. **Since Inception performance is not shown for periods less than one year.
Account ****0001Page 12 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Performance
Portfolio Performance (Total Return)
Effective
DurationPortfolio/Benchmark
Annualized Return
03/31/18 09/30/1706/30/18 12/31/17
Quarter Ended
5 Year1 Year 3 Year
NORTH PALM BEACH INVESTMENT PORTFOLIO 1.72 0.35%0.38%0.75%0.79%-0.17% -0.15% 0.35%
ICE BofAML 1-3 Year U.S. Treasury Index 1.80 0.22%0.08%0.42%0.58%-0.13% -0.25% 0.24%
Difference 0.30% 0.13%0.33%0.21%-0.04% 0.10% 0.11%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
06/30/18 03/31/18 12/31/17 09/30/17 1 Year 3 Year 5 Year
0.35%
-0.17%-0.15%
0.35%0.38%
0.75%0.79%
0.22%
-0.13%
-0.25%
0.24%
0.08%
0.42%
0.58%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index
PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated.
Account ****0001Page 13 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Performance
Portfolio Performance (Total Return)
03/31/18 09/30/1706/30/18 12/31/17
Quarter Ended Annualized Return
5 Year1 Year 3 YearPortfolio/Benchmark
Effective
Duration
0.38%0.75%0.79%-0.17% -0.15% 0.35%NORTH PALM BEACH INVESTMENT PORTFOLIO 0.35%1.72
0.30%0.67%0.71%-0.19% -0.17% 0.33% Net of Fees ** 0.33%-
0.08%0.42%0.58%-0.13% -0.25% 0.24%ICE BofAML 1-3 Year U.S. Treasury Index 0.22%1.80
0.30% 0.13%0.33%0.21%-0.04% 0.10% 0.11%Difference (Gross)
Difference (Net) 0.11% -0.06% 0.08% 0.09%0.22%0.25%0.13%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
06/30/18 03/31/18 12/31/17 09/30/17 1 Year 3 Year 5 Year
0.35%
-0.17%-0.15%
0.35%0.38%
0.75%0.79%
0.22%
-0.13%
-0.25%
0.24%
0.08%
0.42%
0.58%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index
PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated. ** Fees were calculated based on average assets during the period at the contractual rate.
Account ****0001Page 14 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Performance
Portfolio Earnings
Quarter-Ended June 30, 2018
Market Value Basis Accrual (Amortized Cost) Basis
Net Purchases/Sales
Change in Value
Interest Earned
$9,035,700.03
$87,540.87
($6,724.32)
$38,960.78
$32,236.46
$9,116,516.58
$9,152,902.68
$87,540.87
($8,062.52)
$38,960.78
$30,898.26
$9,232,381.03
Portfolio Earnings
Beginning Value (03/31/2018)
Ending Value (06/30/2018)
PFM Asset Management LLC Account ****0001Page 15 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Sector Allocation
June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017
% of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM)
Corporate 2.9 31.5% 2.7 30.4% 3.0 32.7% 2.9 31.9%
U.S. Treasury 2.8 30.7% 3.0 33.4% 2.5 28.1% 2.4 26.6%
Asset-Backed 1.4 15.4% 1.4 15.0% 1.3 14.2% 1.2 13.1%
Federal Agency/GSE 0.9 10.4% 0.9 10.5% 1.4 15.7% 1.7 19.0%
Supra-Sov / Supra-Natl Agency 0.7 7.6% 0.8 8.5% 0.6 7.0% 0.6 7.1%
Municipal 0.3 3.1% 0.2 2.0% 0.2 2.0% 0.2 2.0%
Federal Agency/CMO 0.1 1.3% 0.0 0.2% 0.0 0.3% 0.0 0.3%
$9.1 100.0%$9.0 100.0%$9.1 100.0%$9.0 100.0%Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
June 2018 March 2018 December 2017 September 2017
Federal Agency/CMO
Municipal
Supra-Sov / Supra-Natl
Agency
Federal Agency/GSE
Asset-Backed
U.S. Treasury
Corporate
PFM Asset Management LLC
Detail may not add to total due to rounding.
Account ****0001Page 16 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Maturity Distribution
As of June 30, 2018
>5
Years
4-5
Years
3-4
Years
2-3
Years
1-2
Years
0-1
Years
Yield
at MarketPortfolio/Benchmark
Average
Maturity
NORTH PALM BEACH INVESTMENT PORTFOLIO 2.65% 10.4% 38.9% 36.1% 9.3% 3.9% 1.4%2.10 yrs
ICE BofAML 1-3 Year U.S. Treasury Index 2.53% 2.9% 54.0% 43.1% 0.0% 0.0% 0.0%1.94 yrs
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
10.4%
38.9%
36.1%
9.3%
3.9%1.4%2.9%
54.0%
43.1%
0.0%0.0%0.0%
NORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index
PFM Asset Management LLC Account ****0001Page 17 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
As of June 30, 2018
Duration Distribution
> 5 YEARS4-5 YEARS3-4 YEARS2-3 YEARS1-2 YEARS0-1 YEARSEffective
DurationPortfolio / Benchmark
NORTH PALM BEACH INVESTMENT PORTFOLIO 1.72 17.2% 44.2% 38.6% 0.0% 0.0% 0.0%
ICE BofAML 1-3 Year U.S. Treasury Index 1.80 2.9% 55.4% 41.7% 0.0% 0.0% 0.0%
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
17%
44%
39%
0%0%0%3%
55%
42%
0%0%0%
Distribution by Effective Duration
NORTH PALM BEACH INVESTMENT PORTFOLIO
ICE BofAML 1-3 Year U.S. Treasury Index
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
8%
37%
55%
0%0%0%2%
44%
54%
0%0%0%
Contribution to Portfolio Duration
ICE BofAML 1-3 Year U.S. Treasury Index
NORTH PALM BEACH INVESTMENT PORTFOLIO
PFM Asset Management LLC Account ****0001Page 18 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Credit Quality
As of June 30, 2018
S&P Rating Market Value ($)% of Portfolio
43.0%$3,920,658AA+
17.9%$1,629,599AAA
12.5%$1,140,942A+
7.7%$702,088AA-
6.3%$571,455Not Rated
4.8%$435,137A
3.8%$349,354A-
3.1%$283,798AA
0.9%$83,486BBB+
Totals 100.0%$9,116,517
4.8%
A
3.8%
A-
12.5%
A+
3.1%
AA
7.7%
AA-
43.0%
AA+
17.9%
AAA
0.9%
BBB+
6.3%
Not Rated
PFM Asset Management LLC
Detail may not add to total due to rounding.
Account ****0001Page 19 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Issuer Distribution
As of June 30, 2018
Market Value ($)% of PortfolioIssuer
UNITED STATES TREASURY 2,800,017 30.7%
FANNIE MAE 505,275 5.5%
FEDERAL HOME LOAN BANKS 402,199 4.4%
TOYOTA MOTOR CORP 250,278 2.8%
AFRICAN DEVELOPMENT BANK 231,888 2.5%
CITIGROUP INC 198,313 2.2%
AMERICAN EXPRESS CO 181,852 2.0%
FLORIDA ST HURRICAN CAT FUND 178,886 2.0%
CNH EQUIPMENT TRUST 178,469 2.0%
CHEVRON CORPORATION 178,372 2.0%
FREDDIE MAC 159,100 1.8%
WELLS FARGO & COMPANY 148,656 1.6%
BANK OF NOVA SCOTIA 148,379 1.6%
INTER-AMERICAN DEVELOPMENT BANK 143,212 1.6%
WESTPAC BANKING CORP 138,568 1.5%
INTL BANK OF RECONSTRUCTION AND DEV 137,486 1.5%
HONDA AUTO RECEIVABLES 123,981 1.4%
BANK OF AMERICA CO 122,662 1.4%Top 5 = 46.0%Top 10 = 56.0% PFM Asset Management LLC Account ****0001Page 20 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Market Value ($)% of PortfolioIssuer
HYUNDAI AUTO RECEIVABLES 108,860 1.2%
WAL-MART STORES INC 104,912 1.2%
CALIFORNIA ST 99,762 1.1%
ALLY AUTO RECEIVABLES TRUST 99,127 1.1%
AMERICAN HONDA FINANCE 98,945 1.1%
BANK OF MONTREAL 98,623 1.1%
ROYAL BANK OF CANADA 98,575 1.1%
CANADIAN IMPERIAL BANK OF COMMERCE 98,529 1.1%
HSBC HOLDINGS PLC 98,453 1.1%
NISSAN AUTO RECEIVABLES 96,099 1.1%
CARMAX AUTO OWNER TRUST 89,256 1.0%
INTERNATIONAL FINANCE CORPORATION 89,219 1.0%
BP PLC 89,136 1.0%
ASIAN DEVELOPMENT BANK 88,846 1.0%
MICROSOFT CORP 88,675 1.0%
INTEL CORPORATION 88,592 1.0%
THE WALT DISNEY CORPORATION 87,990 1.0%
TORONTO-DOMINION BANK 77,942 0.9%
JOHN DEERE OWNER TRUST 76,604 0.8%
TOTAL SA 74,651 0.8%
PACCAR FINANCIAL CORP 73,965 0.8%
PFM Asset Management LLC Account ****0001Page 21 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Market Value ($)% of PortfolioIssuer
JP MORGAN CHASE & CO 73,499 0.8%
CAPITAL ONE FINANCIAL CORP 68,583 0.8%
CATERPILLAR INC 63,298 0.7%
CHARLES SCHWAB 60,240 0.7%
DEERE & COMPANY 59,621 0.7%
FORD CREDIT AUTO OWNER TRUST 59,310 0.7%
GENERAL DYNAMICS CORP 54,940 0.6%
APPLE INC 54,068 0.6%
UNITED PARCEL SERVICE INC 53,650 0.6%
VISA INC 49,188 0.5%
MORGAN STANLEY 48,834 0.5%
HERSHEY COMPANY 44,944 0.5%
BB&T CORPORATION 44,249 0.5%
HOME DEPOT INC 44,191 0.5%
NATIONAL RURAL UTILITIES CO FINANCE CORP 39,702 0.4%
GLAXOSMITHKLINE PLC 35,059 0.4%
GOLDMAN SACHS GROUP INC 34,652 0.4%
PEPSICO INC 29,775 0.3%
HONEYWELL INTERNATIONAL 24,689 0.3%
JOHNSON & JOHNSON 19,671 0.2%
9,116,517 100.0%Grand Total:
PFM Asset Management LLC Account ****0001Page 22 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
Sector/Issuer Distribution
As of June 30, 2018
% of SectorSector / Issuer Market Value ($)% of Total Portfolio
Asset-Backed
ALLY AUTO RECEIVABLES TRUST 1.1% 7.1% 99,127
AMERICAN EXPRESS CO 1.1% 7.0% 98,038
BANK OF AMERICA CO 0.7% 4.6% 64,005
CAPITAL ONE FINANCIAL CORP 0.8% 4.9% 68,583
CARMAX AUTO OWNER TRUST 1.0% 6.4% 89,256
CITIGROUP INC 2.2% 14.1% 198,313
CNH EQUIPMENT TRUST 2.0% 12.7% 178,469
FORD CREDIT AUTO OWNER TRUST 0.7% 4.2% 59,310
HONDA AUTO RECEIVABLES 1.4% 8.8% 123,981
HYUNDAI AUTO RECEIVABLES 1.2% 7.8% 108,860
JOHN DEERE OWNER TRUST 0.8% 5.5% 76,604
NISSAN AUTO RECEIVABLES 1.1% 6.9% 96,099
TOYOTA MOTOR CORP 1.6% 10.1% 141,410
100.0% 15.4% 1,402,057 Sector Total
Corporate
AMERICAN EXPRESS CO 0.9% 2.9% 83,813
AMERICAN HONDA FINANCE 1.1% 3.4% 98,945
APPLE INC 0.6% 1.9% 54,068
BANK OF AMERICA CO 0.6% 2.0% 58,656
PFM Asset Management LLC Account ****0001Page 23 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
% of SectorSector / Issuer Market Value ($)% of Total Portfolio
BANK OF MONTREAL 1.1% 3.4% 98,623
BANK OF NOVA SCOTIA 1.6% 5.2% 148,379
BB&T CORPORATION 0.5% 1.5% 44,249
BP PLC 1.0% 3.1% 89,136
CANADIAN IMPERIAL BANK OF COMMERCE 1.1% 3.4% 98,529
CATERPILLAR INC 0.7% 2.2% 63,298
CHARLES SCHWAB 0.7% 2.1% 60,240
CHEVRON CORPORATION 2.0% 6.2% 178,372
DEERE & COMPANY 0.7% 2.1% 59,621
GENERAL DYNAMICS CORP 0.6% 1.9% 54,940
GLAXOSMITHKLINE PLC 0.4% 1.2% 35,059
GOLDMAN SACHS GROUP INC 0.4% 1.2% 34,652
HERSHEY COMPANY 0.5% 1.6% 44,944
HOME DEPOT INC 0.5% 1.5% 44,191
HONEYWELL INTERNATIONAL 0.3% 0.9% 24,689
HSBC HOLDINGS PLC 1.1% 3.4% 98,453
INTEL CORPORATION 1.0% 3.1% 88,592
JOHNSON & JOHNSON 0.2% 0.7% 19,671
JP MORGAN CHASE & CO 0.8% 2.6% 73,499
MICROSOFT CORP 1.0% 3.1% 88,675
MORGAN STANLEY 0.5% 1.7% 48,834
NATIONAL RURAL UTILITIES CO FINANCE CORP 0.4% 1.4% 39,702
PACCAR FINANCIAL CORP 0.8% 2.6% 73,965
PEPSICO INC 0.3% 1.0% 29,775
ROYAL BANK OF CANADA 1.1% 3.4% 98,575
PFM Asset Management LLC Account ****0001Page 24 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
% of SectorSector / Issuer Market Value ($)% of Total Portfolio
THE WALT DISNEY CORPORATION 1.0% 3.1% 87,990
TORONTO-DOMINION BANK 0.9% 2.7% 77,942
TOTAL SA 0.8% 2.6% 74,651
TOYOTA MOTOR CORP 1.2% 3.8% 108,868
UNITED PARCEL SERVICE INC 0.6% 1.9% 53,650
VISA INC 0.5% 1.7% 49,188
WAL-MART STORES INC 1.2% 3.6% 104,912
WELLS FARGO & COMPANY 1.6% 5.2% 148,656
WESTPAC BANKING CORP 1.5% 4.8% 138,568
100.0% 31.6% 2,878,571 Sector Total
Federal Agency/CMO
FANNIE MAE 0.9% 69.3% 81,270
FREDDIE MAC 0.4% 30.7% 36,074
100.0% 1.3% 117,345 Sector Total
Federal Agency/GSE
FANNIE MAE 4.7% 44.7% 424,005
FEDERAL HOME LOAN BANKS 4.4% 42.4% 402,199
FREDDIE MAC 1.3% 13.0% 123,025
100.0% 10.4% 949,229 Sector Total
Municipal
CALIFORNIA ST 1.1% 35.8% 99,762
PFM Asset Management LLC Account ****0001Page 25 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Composition
% of SectorSector / Issuer Market Value ($)% of Total Portfolio
FLORIDA ST HURRICAN CAT FUND 2.0% 64.2% 178,886
100.0% 3.1% 278,648 Sector Total
Supra-Sov / Supra-Natl Agency
AFRICAN DEVELOPMENT BANK 2.5% 33.6% 231,888
ASIAN DEVELOPMENT BANK 1.0% 12.9% 88,846
INTER-AMERICAN DEVELOPMENT BANK 1.6% 20.7% 143,212
INTERNATIONAL FINANCE CORPORATION 1.0% 12.9% 89,219
INTL BANK OF RECONSTRUCTION AND DEV 1.5% 19.9% 137,486
100.0% 7.6% 690,651 Sector Total
U.S. Treasury
UNITED STATES TREASURY 30.7% 100.0% 2,800,017
100.0% 30.7% 2,800,017 Sector Total
100.0% 9,116,517 Portfolio Total 100.0%
PFM Asset Management LLC Account ****0001Page 26 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Quarterly Portfolio Transactions
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
BUY
4/10/18 4/18/18 30,000
FANNIE MAE NOTES 6/22/21 64,985.05 2.76%2.75%
1,096,264 1,093,718.78Total BUY
INTEREST
4/1/18 4/1/18 55,000
MONEY MARKET FUND 94.00
PFM Asset Management LLC Account ****0001Page 27 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
4/9/18 4/9/18 40,000
US TREASURY NOTES 4/30/20 1,478.13 1.37%
PFM Asset Management LLC Account ****0001Page 28 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
4/30/18 4/30/18 30,000
JOHN DEERE ABS 2017-B A3 10/15/21 45.50 1.82%
PFM Asset Management LLC Account ****0001Page 29 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
5/15/18 5/15/18 50,000
ALLY ABS 2017-1 A3 6/15/21 42.50 1.70%
6/15/18 6/15/18 24,058 47788NAC2 JOHN DEERE ABS 2016-B A3 6/15/20 25.06 1.25%
PFM Asset Management LLC Account ****0001Page 30 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
6/15/18 6/15/18 50,000
US TREASURY NOTES 6/30/20 1,990.63 1.62%
7,162,945 34,773.95Total INTEREST
MATURITY
4/30/18 4/30/18 40,000 PEPSICO, INC CORP NOTES 4/30/18 40,000.00 0.00 1.25%
PFM Asset Management LLC Account ****0001Page 31 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
5/22/18 5/22/18 140,000 BANK OF NEW YORK MELLON CORP (CALLABLE)5/22/18 140,000.00 0.00 1.60%
180,000 180,000.00 0.00Total MATURITY
PAYDOWNS
4/1/18 4/25/18 2,203
HONDA ABS 2016-3 A3 6/18/19 4,726.44 0.00 1.16%
77,021 77,021.12 0.00Total PAYDOWNS
PFM Asset Management LLC Account ****0001Page 32 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security Description
Transact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
SELL
4/12/18 4/17/18 100,000 912828G61 US TREASURY NOTES 11/30/19 99,267.90 2.32% (1,368.67)1.50%
4/18/18 4/25/18 100,000 912828G61 US TREASURY NOTES 11/30/19 99,199.31 2.40% (1,469.31)1.50%
5/9/18 5/11/18 20,000 912828G61 US TREASURY NOTES 11/30/19 19,835.08 2.48% (311.47)1.50%
5/11/18 5/15/18 70,000 037833BQ2 APPLE INC CORP NOTES 2/22/19 69,943.46 2.32% (324.52)1.70%
5/14/18 5/16/18 20,000 084664CG4 BERKSHIRE HATHAWAY INC NOTES 3/15/19 19,948.81 2.36% (104.59)1.70%
6/4/18 6/6/18 65,000 3130AAE46 FHLB NOTES 1/16/19 64,948.07 2.19% (367.14)1.25%
6/4/18 6/6/18 130,000 458182DX7 INTER-AMERICAN DEVELOPMENT BANK 5/13/19 128,376.16 2.43% (1,588.79)1.00%
6/6/18 6/8/18 125,000 912828G61 US TREASURY NOTES 11/30/19 123,297.82 2.47% (1,820.57)1.50%
6/13/18 6/18/18 25,000 912828G61 US TREASURY NOTES 11/30/19 24,666.88 2.49% (366.76)1.50%
6/21/18 6/27/18 50,000 912828G61 US TREASURY NOTES 11/30/19 49,356.11 2.50% (729.09)1.50%
6/22/18 6/25/18 40,000 912828G61 US TREASURY NOTES 11/30/19 39,486.29 2.49% (578.68)1.50%
6/22/18 6/25/18 10,000 912828H52 US TREASURY NOTES 1/31/20 9,853.59 2.51% (155.30)1.25%
755,000 748,179.48 -9,184.89Total SELL
PFM Asset Management LLC Account ****0001Page 33 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Quarterly Portfolio Transactions
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
4/1/18 4/1/18 55,000.00
TOYOTA ABS 2016-C A3INTEREST 8/15/20 45.79 1.14%
4/15/18 4/15/18 30,000.00
COMET 2017-A4 A4INTEREST 7/17/23 116.08 1.99%
PFM Asset Management LLC Account ****0001Page 34 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
4/15/18 4/15/18 39,999.28
US TREASURY NOTESSELL 11/30/19 99,199.31 2.40%(1,469.31)1.50%
PFM Asset Management LLC Account ****0001Page 35 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
4/21/18 4/21/18 45,000.00
INTER-AMERICAN DEVELOPMENT BANKINTEREST 5/13/19 650.00 1.00%
PFM Asset Management LLC Account ****0001Page 36 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
5/13/18 5/13/18 25,000.00
JDOT 2018-A A3INTEREST 4/15/22 55.42 2.66%
PFM Asset Management LLC Account ****0001Page 37 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
5/15/18 5/15/18 50,000.00
US TREASURY NOTESINTEREST 11/30/19 1,800.00 1.50%
PFM Asset Management LLC Account ****0001Page 38 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
5/31/18 6/5/18 20,000.00
TOYOTA ABS 2016-C A3INTEREST 8/15/20 39.16 1.14%
PFM Asset Management LLC Account ****0001Page 39 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
6/15/18 6/15/18 70,000.00
JOHN DEERE ABS 2016-B A3PAYDOWNS 6/15/20 1,736.73 0.00 1.25%
PFM Asset Management LLC Account ****0001Page 40 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Activity
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield Realized
G/L (BV)Coupon
6/15/18 6/15/18 3,280.79
US TREASURY NOTESINTEREST 6/30/20 1,990.63 1.62%
TOTALS (53,744.23)(9,184.89)
PFM Asset Management LLC Account ****0001Page 41 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
U.S. Treasury Bond / Note
AA+ Aaa 1/3/2017 1/5/2017 114,092.58 599.62 114,531.31 112,798.791.51US TREASURY NOTES
DTD 02/02/2015 1.250% 01/31/2020
250,000.00
1.80 2,800,016.89 2,841,678.12 10,164.23 2,855,000.00 2,839,286.13Security Type Sub-Total
Supra-National Agency Bond / Note
AAA Aaa 7/6/2016 7/13/2016 139,970.60 462.78 139,989.31 137,485.600.88INTL BANK OF RECON AND DEV SN
NOTE
DTD 07/13/2016 0.875% 08/15/2019
140,000.00
PFM Asset Management LLC Account ****0001Page 42 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Supra-National Agency Bond / Note
AAA Aaa 9/14/2016 9/20/2016 89,904.60 284.06 89,961.14 88,446.601.16AFRICAN DEVELOPMENT BANK NOTE
DTD 09/20/2016 1.125% 09/20/2019
55,000.00
1.77 690,650.53 699,495.11 3,537.44 700,000.00 699,224.60Security Type Sub-Total
Municipal Bond / Note
AA Aa3 2/23/2016 3/8/2016 180,000.00 1,946.70 180,000.00 178,885.802.16FL ST BOARD ADMIN FIN CORP TXBL
REV BD
DTD 03/08/2016 2.163% 07/01/2019
100,000.00
2.39 278,647.80 280,003.75 2,460.03 280,000.00 280,004.00Security Type Sub-Total
Federal Agency Collateralized Mortgage Obligation
AA+ Aaa 6/9/2016 6/30/2016 15,565.94 22.93 15,460.26 15,351.191.05FNMA SERIES 2016-M9 ASQ2
DTD 06/01/2016 1.785% 06/01/2019
15,411.83
PFM Asset Management LLC Account ****0001Page 43 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Federal Agency Collateralized Mortgage Obligation
AA+ Aaa 4/11/2018 4/30/2018 66,292.92 192.83 66,227.21 65,919.112.27FNA 2018-M5 A2
DTD 04/01/2018 3.560% 09/25/2021
36,264.01
2.28 117,344.69 117,767.34 296.42 116,675.84 117,937.30Security Type Sub-Total
Federal Agency Bond / Note
AA+ Aaa 6/2/2016 6/3/2016 39,983.20 12.50 39,994.64 39,514.361.14FHLB GLOBAL NOTE
DTD 06/03/2016 1.125% 06/21/2019
65,000.00
1.20 949,228.67 964,249.92 3,275.29 965,000.00 963,324.15Security Type Sub-Total
Corporate Note
AA- Aa3 7/8/2015 7/13/2015 44,961.75 325.50 44,999.58 44,986.591.58TOYOTA MOTOR CREDIT CORP
DTD 07/13/2015 1.550% 07/13/2018
45,000.00
PFM Asset Management LLC Account ****0001Page 44 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Corporate Note
A A2 1/3/2017 1/6/2017 34,977.25 121.92 34,996.27 34,919.121.69JOHN DEERE CAPITAL CORP
DTD 01/06/2017 1.650% 10/15/2018
60,000.00
PFM Asset Management LLC Account ****0001Page 45 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Corporate Note
A+ A1 8/29/2016 9/6/2016 99,982.00 511.11 99,992.90 98,528.701.61CANADIAN IMPERIAL BANK CORP
NOTES
DTD 09/06/2016 1.600% 09/06/2019
45,000.00
PFM Asset Management LLC Account ****0001Page 46 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Corporate Note
A+ A2 6/1/2017 6/6/2017 89,895.60 117.00 89,932.78 87,989.851.84WALT DISNEY COMPANY CORP
NOTES
DTD 06/06/2017 1.800% 06/05/2020
50,000.00
PFM Asset Management LLC Account ****0001Page 47 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Corporate Note
A+ A2 5/10/2018 5/15/2018 34,905.85 139.76 34,909.89 35,058.733.22GLAXOSMITHKLINE CAPITAL
DTD 05/15/2018 3.125% 05/14/2021
60,000.00
2.02 2,878,571.26 2,912,370.14 12,062.78 2,915,000.00 2,913,536.00Security Type Sub-Total
Asset-Backed Security / Collateralized Mortgage Obligation
AAA Aaa 8/15/2016 8/23/2016 49,757.94 20.85 49,762.49 49,395.591.17HONDA ABS 2016-3 A3
DTD 08/23/2016 1.160% 06/18/2019
37,937.18
PFM Asset Management LLC Account ****0001Page 48 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Asset-Backed Security / Collateralized Mortgage Obligation
NR Aaa 8/2/2016 8/10/2016 47,313.18 24.82 47,315.10 46,790.261.18NISSAN ABS 2016-C A3
DTD 08/10/2016 1.180% 01/15/2021
25,000.00
PFM Asset Management LLC Account ****0001Page 49 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Portfolio Holdings
Managed Account Detail of Securities Held
Original
Cost
Settle
Date
Trade
Date
Moody's
Rating
S&P
Rating
Accrued
Interest
Amortized
Cost
Market
Value
YTM
at Cost
Security Type/Description
CUSIP ParDated Date/Coupon/Maturity
Asset-Backed Security / Collateralized Mortgage Obligation
AAA NR 3/15/2017 3/22/2017 44,998.81 41.40 44,999.10 44,467.302.20CNH ABS 2017-A A3
DTD 03/22/2017 2.070% 05/15/2022
70,000.00
1.85 1,402,056.74 1,416,816.65 2,799.70 1,416,927.62 1,416,762.19Security Type Sub-Total
9,230,074.37 9,248,603.46 34,595.89 9,232,381.03 9,116,516.58 1.84 Managed Account Sub Total
$34,595.89 $9,232,381.03 $9,116,516.58 Securities Sub-Total
Accrued Interest $34,595.89
Total Investments $9,151,112.47
1.84%$9,248,603.46 $9,230,074.37
Bolded items are forward settling trades.
PFM Asset Management LLC Account ****0001Page 50 of 57
Tab III
PFM Asset Management LLC Page 51 of 57
© 2018 PFM Asset Management LLC
For the Quarter Ended June 30, 2018
VILLAGE OF NORTH PALM BEACH Asset Allocation
Security Type
Amortized Cost
(Includes Interest)
Allocation
Percentage
Permitted by
Policy In Compliance
Florida Prime (SBA)1,536,863.78 8.43%25%YES
United States Treasury Securities 2,851,842.35 15.65%100%YES
Federal Agency 967,525.21 5.31%75%YES
Supranationals 703,032.55 3.86%25%YES
Corporate Notes 2,924,432.92 16.05%50%YES
Municipals 282,463.78 1.55%25%YES
Agency Mortgage-Backed Securities (MBS)118,063.76 0.65%25%YES
Asset-Backed Securities 1,419,616.35 7.79%25%YES
Certificates of Deposit and Savings Accounts 4,361,667.50 23.93%50%YES
Demand Deposit Bank Account - 0.00%100%YES
Commercial Paper - 0.00%50%YES
Money Market Funds 10,007.15 0.05%50%YES
Intergovernmental Pools 3,047,547.94 16.72%50%YES
End of month trade-date amortized cost of portfolio holdings, including accrued interest. A balance of 15,184,521.80 in the Florida Education Investment Trust Fund was excluded from calculation as it is
a part of the Country Club Clubhouse bank loan and not governed by the investment policy.
0.6%
7.8%
16.0%
5.3%
0.1%
1.6%
15.6%
8.4%
23.9%
16.7%
3.9%
0%10%20%30%40%50%60%70%80%90%100%
Agency Mortgage-Backed Securities (MBS)
Asset-Backed Securities
Corporate Notes
Federal Agency
Money Market Funds
Municipals
United States Treasury Securities
Florida Prime (SBA)
Certificates of Deposit and Savings Accounts
Intergovernmental Pools
Supranationals
Page 52 of 57
© 2018 PFM Asset Management LLC
For the Quarter Ended June 30, 2018
VILLAGE OF NORTH PALM BEACH Asset Allocation
Sector Individual Issuer Breakdown
Amortized Cost
(Includes Interest)
Allocation
Percentage
Permitted
by Policy In Compliance
Us Tsy Bond/Note UNITED STATES TREASURY 2,851,842.35 15.65%100%YES
Supranatl AFRICAN DEVELOPMENT BANK 235,982.29 1.29%10%YES
Supranatl ASIAN DEVELOPMENT BANK 90,721.48 0.50%10%YES
Supranatl INTER-AMERICAN DEVELOPMENT BANK 145,245.87 0.80%10%YES
Supranatl INTL BANK OF RECONSTRUCTION AND DEV 140,452.09 0.77%10%YES
Supranatl INTERNATIONAL FINANCE CORPORATION 90,630.82 0.50%10%YES
Muni Bond/Note FLORIDA ST HURRICAN CAT FUND 181,946.70 1.00%5%YES
Muni Bond/Note CALIFORNIA ST 100,517.08 0.55%5%YES
Mny Mkt/Mutual Fnd MONEY MARKET FUND 10,026.29 0.06%33%YES
Mbs / Cmo FANNIE MAE 15,483.19 0.08%25%YES
Mbs / Cmo FANNIEMAE-ACES 66,420.04 0.36%25%YES
Mbs / Cmo FHLMC MULTIFAMILY STRUCTURED P 36,160.53 0.20%25%YES
Intergovernmental Pools FEITF 3,047,547.94 16.72%50%YES
Florida Prime (SBA)FLORIDA PRIME (SBA)1,536,863.78 8.43%25%YES
Fed Agy Bond/Note FANNIE MAE 431,243.50 2.37%40%YES
Fed Agy Bond/Note FEDERAL HOME LOAN BANKS 410,895.42 2.25%40%YES
Fed Agy Bond/Note FREDDIE MAC 125,386.29 0.69%40%YES
Corporate Note AMERICAN EXPRESS CREDIT CORP 30,070.56 0.17%5%YES
Corporate Note AMERICAN HONDA FINANCE 100,566.93 0.55%5%YES
Corporate Note APPLE INC 55,102.69 0.30%5%YES
Corporate Note BANK OF MONTREAL CHI 100,645.68 0.55%5%YES
Corporate Note BANK OF NOVA SCOTIA HOUS 150,260.10 0.82%5%YES
Corporate Note BP CAPITAL MARKETS PLC 91,225.41 0.50%5%YES
Corporate Note CHEVRON CORP 180,351.23 0.99%5%YES
Corporate Note GOLDMAN SACHS GROUP INC 35,297.31 0.19%5%YES
Corporate Note JOHN DEERE CAPITAL CORP 60,272.12 0.33%5%YES
Corporate Note MICROSOFT CORP 90,452.23 0.50%5%YES
Corporate Note ROYAL BANK OF CANADA NY 100,592.42 0.55%5%YES
Corporate Note TOYOTA MOTOR CREDIT CORP 110,567.72 0.61%5%YES
Corporate Note WESTPAC BANKING CORP 140,306.79 0.77%5%YES
Corporate Note AMERICAN EXPRESS CREDIT 55,364.72 0.30%5%YES
Corporate Note WALT DISNEY COMPANY/THE 90,049.78 0.49%5%YES
Corporate Note TOTAL CAPITAL SA 75,307.21 0.41%5%YES
Corporate Note PEPSICO INC 30,066.81 0.16%5%YES
Corporate Note INTEL CORP 90,210.03 0.50%5%YES
Corporate Note JP MORGAN CHASE & CO 74,251.24 0.41%5%YES
Corporate Note WELLS FARGO BANK NA 150,592.39 0.83%5%YES
Corporate Note BRANCH BANKING & TRUST 45,237.79 0.25%5%YES
Corporate Note MORGAN STANLEY 49,116.34 0.27%5%YES
Corporate Note CATERPILLAR FINANCIAL SERVICES CORP 65,351.05 0.36%5%YES
Corporate Note CANADIAN IMPERIAL BANK OF COMMERCE 100,504.01 0.55%5%YES
Page 53 of 57
© 2018 PFM Asset Management LLC
For the Quarter Ended June 30, 2018
VILLAGE OF NORTH PALM BEACH Asset Allocation
Sector Individual Issuer Breakdown
Amortized Cost
(Includes Interest)
Allocation
Percentage
Permitted
by Policy In Compliance
Corporate Note VISA INC 50,458.81 0.28%5%YES
Corporate Note TORONTO DOMINION BANK 80,385.93 0.44%5%YES
Corporate Note JOHNSON & JOHNSON 20,038.40 0.11%5%YES
Corporate Note HOME DEPOT INC 45,041.71 0.25%5%YES
Corporate Note BANK OF AMERICA CORP 60,349.20 0.33%5%YES
Corporate Note HONEYWELL INTERNATIONAL 25,063.27 0.14%5%YES
Corporate Note WAL-MART STORES INC 105,178.25 0.58%5%YES
Corporate Note PACCAR FINANCIAL CORP 75,527.04 0.41%5%YES
Corporate Note UNITED PARCEL SERVICE 55,211.11 0.30%5%YES
Corporate Note NATIONAL RURAL UTIL COOP 40,363.37 0.22%5%YES
Corporate Note HSBC BANK USA NA 99,598.32 0.55%5%YES
Corporate Note HERSHEY COMPANY 45,157.28 0.25%5%YES
Corporate Note GENERAL DYNAMICS CORP 55,038.50 0.30%5%YES
Corporate Note CHARLES SCHWAB CORP 60,209.52 0.33%5%YES
Corporate Note GLAXOSMITHKLINE CAPITAL 35,049.65 0.19%5%YES
CD / Savings Account WELLS FARGO 2,795,212.35 15.34%100%YES
CD / Savings Account BANKUNITED 1,044,134.53 5.73%100%YES
CD / Savings Account FLAGLER BANK 522,320.62 2.87%100%YES
Asset-Backed ALLY AUTO RECEIVABLES TRUST 100,070.39 0.55%5%YES
Asset-Backed CARMAX AUTO OWNER TRUST 89,649.78 0.49%5%YES
Asset-Backed CNH EQUIPMENT TRUST 180,159.01 0.99%5%YES
Asset-Backed FORD CREDIT AUTO OWNER TRUST 60,044.38 0.33%5%YES
Asset-Backed HONDA AUTO RECEIVABLES 49,783.34 0.27%5%YES
Asset-Backed HYUNDAI AUTO RECEIVABLES TRUST 110,081.52 0.60%5%YES
Asset-Backed JOHN DEERE OWNER TRUST 77,382.85 0.42%5%YES
Asset-Backed NISSAN AUTO RECEIVABLES 47,339.92 0.26%5%YES
Asset-Backed CITIBANK CREDIT CARD ISSUANCE 201,824.40 1.11%5%YES
Asset-Backed AMERICAN EXPRESS CREDIT ACCOUN 100,064.08 0.55%5%YES
Asset-Backed BANK OF AMERICA CREDIT CARD TR 65,042.00 0.36%5%YES
Asset-Backed TOYOTA AUTO RECEIVABLES OWNER 105,075.17 0.58%5%YES
Asset-Backed HONDA AUTO RECEIVABLES OWNER T 75,051.57 0.41%5%YES
Asset-Backed NISSAN AUTO RECEIVABLES OWNER 50,034.90 0.27%5%YES
Asset-Backed TOYOTA AUTO RECEIVABLES 37,955.86 0.21%5%YES
Asset-Backed CAPITAL ONE MULTI-ASSET EXECUT 70,057.18 0.38%5%YES
End of month trade-date amortized cost of portfolio holdings, including accrued interest. A balance of 15,184,521.80 in the Florida Education Investment Trust Fund was excluded from calculation as it is a part
of the Country Club Clubhouse bank loan and not governed by the investment policy.
Page 54 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Appendix
IMPORTANT DISCLOSURES
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 a specific recommendation. All statements as
to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven
correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does
not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities.
Dime
à Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate.
Where prices are not available from generally recognized sources, the securities are priced using a yield based matrix system to arrive at an estimated market value.
à In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and
forward settling sales are excluded.
à Performance is presented in accordance with the CFA Institute ’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees.
Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of
future returns.
à Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
à Money market fund/cash balances are included in performance and duration computations.
à Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
à Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.
à MBS maturities are represented by expected average life.
PFM Asset Management LLC Account ****0001Page 55 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Appendix
GLOSSARY
à ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.
à AGENCIES: Federal agency securities and/or Government-sponsored enterprises.
à AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until
the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis.
Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.
à BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.
à COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
à CONTRIBUTION TO DURATION: Represents each sector or maturity range ’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since
duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate
sensitivity of the portfolio.
à DURATION TO WORST: A measure of the sensitivity of a security ’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put
date, whichever results in the highest yield to the investor.
à EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
à EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on
investment returns, while ominal yield does not.
à FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
à INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage.
à MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
à MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
à NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.
à PAR VALUE: The nominal dollar face amount of a security.
PFM Asset Management LLC Account ****0001Page 56 of 57
NORTH PALM BEACH INVESTMENT PORTFOLIO
For the Quarter Ended June 30, 2018
Appendix
GLOSSARY
à PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the
mortgage-backed security.
à REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
à SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity
proceeds) occurs on a non-business day, the funds are exchanged on the next business day.
à TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.
à UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.
à U.S. TREASURY: The department of the U.S. government that issues Treasury securities.
à YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on
an annualized basis.
à YTM AT COST: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from
purchase date to maturity, stated as a percentage on an annualized basis.
à YTM AT MARKET: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period
remaining until maturity, stated as a percentage on an annualized basis.
PFM Asset Management LLC Account ****0001Page 57 of 57