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06-30-2017 Investment Performance ReviewVillage of North Palm Beach, FloridaInvestment AdvisorsOne Keystone Plaza, Suite 300North Front & Market StreetsHarrisburg, PA 17101-2044717.232.2723 717.233.6073 faxPFM Asset Management LLC300 South Orange AvenueSuite 1170Orlando, FL 32801407.648.2208 407.648.1323 faxInvestment Performance Review For the Quarter Ended June 30, 2017Steven Alexander, CTP, CGFO, CPPT, Managing DirectorRobert Cheddar, CFA, Chief Credit Officer, Managing DirectorRichard Pengelly, CFA, CTP, DirectorRebecca Geyer, CTP, Senior AnalystCody Raulerson, Analyst1 of 45 VILLAGE OF NORTH PALM BEACH, FLORIDAFor the Quarter Ended June 30, 2017Table of ContentsPFM Asset Management LLCTab IMarket UpdateTab IIExecutive SummaryInvestment PortfolioTab IIIAsset Allocation ChartImportant Disclosures2 of 45 Tab IPFM Asset Management LLC3 of 45 QUARTERLY MARKET SUMMARYSUMMARY•'HVSLWHPL[HGHFRQRPLFGDWDDQGSROLWLFDODQGSROLF\GLI¿FXOWLHVLQWKH86PDUNHWFRQGLWLRQVZHUHFKDUDFWHUL]HGE\LQYHVWRURSWLPLVPDPLGYHU\ORZYRODWLOLW\%RQG\LHOGVZHUHUHODWLYHO\ZHOOEHKDYHGGXULQJWKHTXDUWHUFUHGLWVSUHDGVQDUURZHGIXUWKHUDQGHTXLW\PDUNHWVPRYHGKLJKHUVWLOO•)RUWKHVHFRQGWLPHWKLV\HDUWKH)HGHUDO2SHQ0DUNHW&RPPLWWHH)20&UDLVHGWKHIHGHUDOIXQGVUDWHE\VHWWLQJDQHZWDUJHWUDQJHRIWRIRUWKHRYHUQLJKWEHQFKPDUNUDWH7KH)20&¶VODWHVWHFRQRPLFIRUHFDVWVDQG³GRWSORW´ZHUHODUJHO\XQFKDQJHG7KH)HGHUDO5HVHUYHWKH)HGLVVWLOOIRUHFDVWLQJRQHPRUHUDWHKLNHWKLV\HDUDOWKRXJKPDUNHWLPSOLHGSUREDELOLWLHVVKRZRQO\DERXWDFKDQFHRIDKLNHLQWKHVHFRQGKDOIRIWKH\HDU•3HUKDSVMXVWDVLPSRUWDQWWKH)HGDQQRXQFHGSODQVWRJUDGXDOO\UHGXFHWKHVL]HRILWVEDODQFHVKHHWE\GHFUHDVLQJLWVUHLQYHVWPHQWRISULQFLSDOSD\PHQWVRQH[LVWLQJKROGLQJV7KHUHGXFWLRQZLOOEHELOOLRQSHUPRQWKLQLWLDOO\DQGZLOOLQFUHDVHLQVWHSVRIELOOLRQSHUPRQWKDWWKUHHPRQWKLQWHUYDOVXQWLOLWUHDFKHVELOOLRQSHUPRQWK7KHVSHFL¿FWLPHWDEOHLVOLNHO\WREHDQQRXQFHGODWHUWKLV\HDU•86HTXLW\PDUNHWVKDGDQRWKHUVWURQJTXDUWHU,QWKHSDVWWKUHHPRQWKVDOOWKUHHPDMRU86LQGLFHVKLWQHZDOOWLPHKLJKV7KH6 3,QGH[6 3UHWXUQHGDQGLVXSIRUWKH¿UVWKDOIRIWKH\HDU7KH+HDOWK&DUHDQG,QGXVWULDOVHFWRUVZHUHWKHVWURQJHVWSHUIRUPHUVGXULQJWKHTXDUWHUECONOMIC SNAPSHOT•86HFRQRPLFGDWDUHOHDVHGLQ-XQHZDVEHORZH[SHFWDWLRQV:KLOHEXVLQHVVLQYHVWPHQWDFFHOHUDWHGLWZDVSDUWO\RIIVHWE\ZHDNFRQVXPHUVSHQGLQJDQGDVORZGRZQLQJRYHUQPHQWVSHQGLQJDQGLQYHQWRULHV2QWKHSRVLWLYHVLGHWKHODERUPDUNHWUHPDLQHGVWURQJFRQVXPHUFRQ¿GHQFHUHPDLQHGKLJKEXVLQHVVVXUYH\VZHUHRSWLPLVWLFDQGWKHKRXVLQJPDUNHWUHWXUQHGWRQHDUSUHFULVLVOHYHOV6HFRQGTXDUWHUJURVVGRPHVWLFSURGXFW*'3JURZWKLVH[SHFWHGWRVKRZDUHERXQGIURPWKHZHDNJURZWKUDWHRIWKH¿UVWTXDUWHU•7KHODERUPDUNHWUHPDLQHGVWURQJLQWKHVHFRQGTXDUWHUDVWKH86HFRQRP\DGGHGQHWQHZMREVWKHPRVWVLQFHWKHWKLUGTXDUWHURI7KHXQHPSOR\PHQWUDWHGHFOLQHGWRD\HDUORZHQGLQJWKHTXDUWHUDWEXWWKHODERUIRUFHSDUWLFLSDWLRQUDWHUHPDLQHGVXSSUHVVHG$WWKHVDPHWLPHZDJHJURZWKUHPDLQHGWHSLGDVDYHUDJHKRXUO\HDUQLQJVURVHRQO\\HDURYHU\HDU<R<LQ-XQH7KHODFNRIZDJHSUHVVXUHV²DNH\GULYHURILQÀDWLRQ²VHHPVWRLQGLFDWHIXUWKHUVODFNUHPDLQVLQWKHODERUPDUNHWGHVSLWHVWURQJMREJDLQVINTEREST RATES•6KRUWWHUPWKUHH\HDUVDQGXQGHU\LHOGVHQGHGWKHVHFRQGTXDUWHUKLJKHUUHÀHFWLQJWKH)HG¶V-XQHUDWHKLNHZKLOHPHGLXPWRORQJWHUP\LHOGVGHFOLQHGDPLGVXEGXHGLQÀDWLRQH[SHFWDWLRQVDQGIDGLQJSURVSHFWVIRUQHDUWHUPVWLPXOXVIURPWD[UHIRUPRULQIUDVWUXFWXUHVSHQGLQJ•7KHWZR\HDU7UHDVXU\QRWH\LHOGHQGHGWKHTXDUWHUEDVLVSRLQWVESVKLJKHUDWZKLOHWKH\HDU7UHDVXU\\LHOGIHOOESVWR7KHUHVXOWZDVDQRWDEO\ÀDWWHU\LHOGFXUYHZKLFKUHGXFHGWKHLQFHQWLYHWRLQYHVWLQORQJHUPDWXULWLHV•,QWKHPRQH\PDUNHWVSDFHVKRUWHUWHUP7UHDVXU\\LHOGVFRQWLQXHGWRULVHUHÀHFWLQJWKH)HG¶V-XQHUDWHKLNHEXWEH\RQGPRQWKPDWXULWLHV\LHOGVÀDWWHQHGRXW<LHOGVSUHDGVRQFRPPHUFLDOSDSHU&3DQGFHUWL¿FDWHVRIGHSRVLW&'UHODWLYHWR867UHDVXULHVFRQWLQXHGWRQDUURZIURPWKHLUH[FHSWLRQDOO\ZLGHOHYHOVRIODWHDQGHDUO\&3&'VSUHDGVQRZRIIHURQO\PRGHVWLQFUHPHQWDO\LHOGVLPLODUWRORQJVWDQGLQJDYHUDJHVDQGDUHFRQVLGHUHGIDLUYDOXHSECTOR PERFORMANCE•867UHDVXU\LQGLFHVSRVWHGSRVLWLYHUHWXUQVLQWKHVHFRQGTXDUWHU5HWXUQVIRUVKRUWHULQGLFHVZHUHJHQHUDWHGPRVWO\E\LQFRPHRIIVHWE\PRGHVWSULFHGHSUHFLDWLRQDV\LHOGVRQVKRUWHUPDWXULWLHVLQFUHDVHG5HWXUQVRQORQJHU7UHDVXU\LQGLFHVZHUHTXLWHVWURQJEHQH¿WWLQJIURPERWKLQFRPHUHWXUQDQGSULFHDSSUHFLDWLRQIURPIDOOLQJORQJWHUPUDWHVDQGDÀDWWHQLQJ\LHOGFXUYH•)HGHUDODJHQF\\LHOGVSUHDGVJURXQGWLJKWHUGXULQJWKHTXDUWHUDVGHPDQGFRQWLQXHGWRRXWSDFHVXSSO\7KHVHFWRUPRGHVWO\RXWSHUIRUPHGFRPSDUDEOHGXUDWLRQ7UHDVXULHVIRUWKHIRXUWKTXDUWHULQDURZ•&RUSRUDWH\LHOGVSUHDGVWLJKWHQHGIXUWKHUGXULQJWKHTXDUWHUUHDFKLQJWKHLUQDUURZHVWOHYHOVVLQFHDVWKHUHDFKIRU\LHOGFRQWLQXHGJOREDOO\7KHVHFWRUJHQHUDWHGVWURQJRXWSHUIRUPDQFHUHODWLYHWRFRPSDUDEOHPDWXULW\7UHDVXULHVLWVVHYHQWKVWUDLJKWTXDUWHURIRXWSHUIRUPDQFH•6KRUWHUGXUDWLRQPRUWJDJHEDFNHGVHFXULWLHV0%6RXWSHUIRUPHG7UHDVXULHVEXWORQJHUGXUDWLRQVWUXFWXUHVFRXOGQRWNHHSSDFH0%6UHPDLQVDWULVNIURPWKHH[SHFWHGUHGXFWLRQLQWKH)HG¶VEDODQFHVKHHWKROGLQJVODWHUWKLV\HDU•)RUWKHVHFRQGTXDUWHULQDURZDVVHWEDFNHGVHFXULWLHV$%6SRVWHGVWURQJRXWSHUIRUPDQFHYHUVXV7UHDVXULHV6SUHDGVDFURVVQHDUO\DOOFUHGLWVHFWRUVWLJKWHQHGLQFOXGLQJ$%6PFM Asset Management LLCFor the Quarter Ended June 30, 2017 Fixed Income Management 4 of 45 QUARTERLY MARKET SUMMARYEconomic SnapshotLabor MarketMar '17 Jun '168QHPSOR\PHQW5DWH-XQ &KDQJH,Q1RQ)DUP3D\UROOV-XQ $YHUDJH+RXUO\(DUQLQJV<R<-XQ 3HUVRQDO,QFRPH<R<0D\ ,QLWLDO-REOHVV&ODLPVZHHN Growth5HDO*'34R46$$54*'33HUVRQDO&RQVXPSWLRQ4R46$$5 45HWDLO6DOHV<R<0D\ ,600DQXIDFWXULQJ6XUYH\PRQWK-XQ ([LVWLQJ+RPH6DOHV6$$5PRQWK 0D\ PLO PLO PLOInflation / Prices3HUVRQDO&RQVXPSWLRQ([SHQGLWXUHV<R< 0D\ &RQVXPHU3ULFH,QGH[<R<0D\ &RQVXPHU3ULFH,QGH[&RUH<R<0D\ &UXGH2LO)XWXUHV:7,SHUEDUUHO-XQ *ROG)XWXUHVR]-XQ Latest...-XQ 'HF -XQ 'HF -XQ 'HF -XQ Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)&KDQJH,Q1RQ)DUP3D\UROOV8QHPSOR\PHQW5DWH Real GDP (QoQ)-XQ 'HF -XQ 'HF -XQ 'HF Consumer Price Index&3,<R<&RUH&3,<R<1. Data as of First Quarter 2017.2. Data as of Second Quarter 2016.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 LLCFor the Quarter Ended June 30, 2017 Fixed Income Management 5 of 45 QUARTERLY MARKET SUMMARYSource: Bloomberg.Interest Rate OverviewU.S. Treasury Note YieldsU.S. Treasury Yield CurveU.S. Treasury YieldsYield Curves as of 6/30/17PR \U \U \U \U \U \U \U YieldMaturity-XQH0DUFK-XQHMaturity Jun '17 Mar '17Change over QuarterJun '16Change over YearPRQWK \HDU \HDU \HDU \HDU \HDU PR \U \U \U \U \U \U \U\U YieldMaturity867UHDVXU\)HGHUDO$JHQF\,QGXVWULDO&RUSRUDWHV$5DWHG-XQ 6HS 'HF 0DU -XQ Yield<HDU<HDU<HDUPFM Asset Management LLCFor the Quarter Ended June 30, 2017 Fixed Income Management 6 of 45 QUARTERLY MARKET SUMMARYSource: BofA Merrill Lynch Indices.June 30, 2017Duration Yield 3-month 1-year 3-years1-3 Year IndicesU.S. Treasury Federal Agency U.S. Corporates, A-AAA rated Agency MBS (0 to 3 years) Taxable Municipals 1-5 Year IndicesU.S. Treasury Federal Agency U.S. Corporates, A-AAA rated Agency MBS (0 to 5 years) Taxable Municipals Master Indices (Maturities 1 Year or Greater)U.S. Treasury Federal Agency U.S. Corporates, A-AAA rated Agency MBS (0 to 30 years) Taxable Municipals As of 6/30/17 Returns for Periods ended 6/30/17Returns for periods greater than one year are annualized.PFM Asset Management LLCBofA Merrill Lynch Index ReturnsFor the Quarter Ended June 30, 2017 Fixed Income Management 7 of 45 QUARTERLY MARKET SUMMARYDISCLOSURES 3)0LVWKHPDUNHWLQJQDPHIRUDJURXSRIDI¿OLDWHGFRPSDQLHVSURYLGLQJDUDQJHRIVHUYLFHV$OOVHUYLFHVDUHSURYLGHGWKURXJKVHSDUDWHDJUHHPHQWVZLWKHDFKFRPSDQ\7KLVPDWHULDOLVIRUJHQHUDOLQIRUPDWLRQSXUSRVHVRQO\DQGLVQRWLQWHQGHGWRSURYLGHVSHFL¿FDGYLFHRUDVSHFL¿FUHFRPPHQGDWLRQ,QYHVWPHQWDGYLVRU\VHUYLFHVDUHSURYLGHGE\3)0$VVHW0DQDJHPHQW//&ZKLFKLVUHJLVWHUHGZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQXQGHUWKH,QYHVWPHQWAdvisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.)RUPRUHLQIRUPDWLRQUHJDUGLQJ3)0¶VVHUYLFHVRUHQWLWLHVSOHDVHYLVLWZZZSIPFRP7KHYLHZVH[SUHVVHGZLWKLQWKLVPDWHULDOFRQVWLWXWHWKHSHUVSHFWLYHDQGMXGJPHQWRI3)0$VVHW0DQDJHPHQW//&DWWKHWLPHRIGLVWULEXWLRQDQGDUHVXEMHFWWRFKDQJH,QIRUPDWLRQLVREWDLQHGIURPVRXUFHVJHQHUDOO\EHOLHYHGWREHUHOLDEOHDQGDYDLODEOHWRWKHSXEOLFKRZHYHU3)0$VVHW0DQDJHPHQW//&FDQQRWJXDUDQWHHLWVDFFXUDF\FRPSOHWHQHVVRUVXLWDELOLW\7KLVPDWHULDOLVIRUJHQHUDOLQIRUPDWLRQSXUSRVHVRQO\DQGLVQRWLQWHQGHGWRSURYLGHVSHFL¿FDGYLFHRUUHFRPPHQGDWLRQ7KHLQIRUPDWLRQcontained in this report is not an offer to purchase or sell any securities. 3)0$VVHW0DQDJHPHQW//&)XUWKHUGLVWULEXWLRQLVQRWSHUPLWWHGZLWKRXWSULRUZULWWHQFRQVHQWPFM Asset Management LLCFor the Quarter Ended June 30, 2017 Fixed Income Management 8 of 45 Tab IIPFM Asset Management LLC9 of 45 VILLAGE OF NORTH PALM BEACH, FLORIDAFor the Quarter Ended June 30, 2017Executive SummaryPFM Asset Management LLCThe Investment Portfolio is of high credit quality and investedin 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 0.34% outperformed the benchmark performance of 0.17%by 0.17%. The last 12 months total return performance forthe Portfolio was 0.36% versus the benchmark’s return of -0.11%.Key drivers of market conditions in the 2nd quarter included:•An additional Federal Reserve (Fed) rate hike,•Mixed readings on key economic data in the U.S.,•Persistently subdued inflation readings, •Narrowing credit spreads, and•Stronger growth readings and higher yields in Europe and elsewhere.Short-term and long-term Treasury yields diverged during the second quarter as short-term (three years and under) yields moved higher, pricing in the Fed’s June rate hike, while yields on longer-term maturities fell amid muted inflation and fading prospects for stimulative fiscal policy. As a result, the yield curve flattened, retracing all the steepening that took place following the U.S. presidential election. Our duration strategy is to remain largely in line with benchmark durations unless we have a strong conviction that rates are not appropriately reflecting market risks and expectations. Since market conditions were consistent with moderate growth and a Fed on track to gradually raise rates, we positioned portfolios to be “neutral” – that is with durations equal to benchmark durations – to start the second quarter. During May and June, however, we allowed durations to drift shorter as we believed that rates were not adequately pricing in the likelihood of a near-term Fed rate increase. When the Fed did raise rates in June, shorter-term portfolios benefited as yields adjusted to reflect a higher Fed funds rate.Our outlook for the third quarter is for continued modest growth in the U.S. economy. But, the future path of Fed tighteningis less certain, as recent economic data has been disappointing, fiscal policy initiatives have stalled, and inflation remains below the Fed’s 2% target.With rates priced for the current level of uncertainty, we are once again positioning portfolio durations to match that of benchmarks. We will continue to assess our duration positioning during the quarter as we gain more clarity surrounding Fed policy and trajectory of the U.S. and global economy.10 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Snapshot Portfolio Statistics As of June 30, 2017 $9,101,029 $9,126,260 $9,074,950 $25,362 $25,948 Accrued Interest: Cash: Par Value: Total Market Value: Security Market Value: $9,100,903 1.57% 1.40% AAAverage Credit: ** Yield at Cost: Amortized Cost: Yield at Market: Effective Duration:1.82 Years Duration to Worst:1.89 Years Average Maturity:2.13 Years Credit Quality (S&P Ratings) 5.6% A 4.1% A- 8.5% A+ 2.4% AA 9.6% AA- 47.9% AA+ 16.9% AAA 5.0% 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 12.7% 33.7% 39.0% 8.6% 4.1% 1.8% Maturity Distribution Sector Allocation 13.5% Asset-Backed 30.6% Corporate 0.6% Federal Agency/CMO 27.0% Federal Agency/GSE 2.0% Municipal 7.4% Supra-Sov / Supra-Natl Agency 18.9% 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. 11 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 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 1.82 0.34%-0.36%0.92%0.77%1.07% BofA ML 1-3 Year U.S. Treasury Index 1.82 0.17%--0.11%0.69%0.63%1.00% Difference 0.47% 0.17%0.23%0.14%-0.07% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception 0.34%0.36% 0.92% 0.77% 1.07% 0.17% -0.11% 0.69%0.63% 1.00%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 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 61350001 12 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Performance Portfolio Performance (Total Return) Effective DurationPortfolio/Benchmark Annualized Return 03/31/17 09/30/1606/30/17 12/31/16 Quarter Ended 5 Year1 Year 3 Year NORTH PALM BEACH INVESTMENT PORTFOLIO 1.82 0.34%0.36%0.92%0.77%0.37% -0.34% -0.01% BofA ML 1-3 Year U.S. Treasury Index 1.82 0.17%-0.11%0.69%0.63%0.26% -0.43% -0.11% Difference 0.47% 0.17%0.23%0.14%0.11% 0.09% 0.10% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 06/30/17 03/31/17 12/31/16 09/30/16 1 Year 3 Year 5 Year 0.34%0.37% -0.34% -0.01% 0.36% 0.92% 0.77% 0.17% 0.26% -0.43% -0.11%-0.11% 0.69%0.63%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Portfolio performance is gross of fees unless otherwise 61350001 13 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Performance Portfolio Performance (Total Return) 03/31/17 09/30/1606/30/17 12/31/16 Quarter Ended Annualized Return 5 Year1 Year 3 YearPortfolio/Benchmark Effective Duration 0.36%0.92%0.77%0.37% -0.34% -0.01%NORTH PALM BEACH INVESTMENT PORTFOLIO 0.34% 1.82 0.28%0.84%0.69%0.35% -0.36% -0.03% Net of Fees ** 0.32% 0.00 -0.11%0.69%0.63%0.26% -0.43% -0.11%BofA ML 1-3 Year U.S. Treasury Index 0.17% 1.82 0.47% 0.17%0.23%0.14%0.11% 0.09% 0.10%Difference (Gross) Difference (Net) 0.15% 0.09% 0.07% 0.08%0.39%0.15%0.06% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 06/30/17 03/31/17 12/31/16 09/30/16 1 Year 3 Year 5 Year 0.34%0.37% -0.34% -0.01% 0.36% 0.92% 0.77% 0.17% 0.26% -0.43% -0.11%-0.11% 0.69%0.63%Total ReturnNORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 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 61350001 14 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Performance Portfolio Earnings Quarter-Ended June 30, 2017 Market Value Basis Accrual (Amortized Cost) Basis Net Purchases/Sales Change in Value Interest Earned $9,060,411.29 $13,917.92 $620.55 $30,435.16 $31,055.71 $9,074,949.76 $9,090,523.71 $13,917.92 ($3,538.33) $30,435.16 $26,896.83 $9,100,903.30 Portfolio Earnings Beginning Value (03/30/2017) Ending Value (06/30/2017) PFM Asset Management LLC 15 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Sector Allocation As of June 30, 2017 Market Value ($)% of PortfolioSector Corporate 2,776,463 30.6% Federal Agency/GSE 2,451,903 27.0% U.S. Treasury 1,715,033 18.9% Asset-Backed 1,229,093 13.5% Supra-Sov / Supra-Natl Agency 671,063 7.4% Municipal 181,021 2.0% Federal Agency/CMO 50,374 0.6% Total $9,074,950 100.0% 13.5% Asset-Backed 30.6% Corporate 0.6% Federal Agency/CMO 27.0% Federal Agency/GSE 2.0% Municipal 7.4% Supra-Sov / Supra-Natl Agency 18.9% U.S. Treasury PFM Asset Management LLC Detail may not add to total due to rounding. 16 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Sector Allocation As of June 30, 2017 Market Value ($)Sector % of Portfolio % of Benchmark - 30.6% 2,776,463 Corporate - 27.0% 2,451,903 Federal Agency/GSE 100.0% 18.9% 1,715,033 U.S. Treasury - 13.5% 1,229,093 Asset-Backed - 7.4% 671,063 Supra-Sov / Supra-Natl Agency - 2.0% 181,021 Municipal - 0.6% 50,374 Federal Agency/CMO $9,074,950 100.0% 100.0%Total 0% 20% 40% 60% 80% 100% Asset-Backed Corporate Federal Agency/CMO Federal Agency/GSE Municipal Supra-Sov / Supra-Natl Agency U.S. Treasury 13.5% 30.6% 0.6% 27.0% 2.0% 7.4% 18.9% 0.0%0.0%0.0%0.0%0.0%0.0% 100.0% NORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Detail may not add to total due to rounding. 17 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Sector Allocation June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 % of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM) Corporate 2.8 30.6% 2.4 26.4% 2.2 23.9% 2.2 25.1% Federal Agency/GSE 2.5 27.0% 3.3 36.4% 3.6 39.5% 3.2 36.1% U.S. Treasury 1.7 18.9% 1.3 14.9% 2.1 23.1% 2.3 26.0% Asset-Backed 1.2 13.5% 1.1 11.7% 0.4 4.9% 0.3 3.9% Supra-Sov / Supra-Natl Agency 0.7 7.4% 0.7 7.4% 0.5 5.3% 0.5 5.4% Municipal 0.2 2.0% 0.2 2.0% 0.2 2.0% 0.2 2.1% Federal Agency/CMO 0.1 0.6% 0.1 1.2% 0.1 1.3% 0.1 1.4% $9.1 100.0%$9.1 100.0%$9.0 100.0%$8.9 100.0%Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% June 2017 March 2017 December 2016 September 2016 Federal Agency/CMO Municipal Supra-Sov / Supra-Natl Agency Asset-Backed U.S. Treasury Federal Agency/GSE Corporate PFM Asset Management LLC Detail may not add to total due to rounding. 18 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Maturity Distribution As of June 30, 2017 >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 1.57% 12.7% 33.7% 39.0% 8.6% 4.1% 1.8%2.13 yrs BofA ML 1-3 Year U.S. Treasury Index 1.40% 3.1% 53.5% 43.4% 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 12.7% 33.7% 39.0% 8.6% 4.1%1.8%3.1% 53.5% 43.4% 0.0%0.0%0.0% NORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 1-3 Year U.S. Treasury Index PFM Asset Management LLC 19 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition As of June 30, 2017 Duration Distribution > 5 YEARS4-5 YEARS3-4 YEARS2-3 YEARS1-2 YEARS0-1 YEARSEffective DurationPortfolio / Benchmark NORTH PALM BEACH INVESTMENT PORTFOLIO 1.82 15.8% 42.1% 41.7% 0.5% 0.0% 0.0% BofA ML 1-3 Year U.S. Treasury Index 1.82 3.1% 54.2% 42.7% 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 16% 42%42% 0%0%0% 3% 54% 43% 0%0%0% Distribution by Effective Duration NORTH PALM BEACH INVESTMENT PORTFOLIO BofA ML 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 6% 36% 56% 1%0%0%2% 43% 55% 0%0%0% Contribution to Portfolio Duration BofA ML 1-3 Year U.S. Treasury Index NORTH PALM BEACH INVESTMENT PORTFOLIO PFM Asset Management LLC 20 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Credit Quality As of June 30, 2017 S&P Rating Market Value ($)% of Portfolio 47.9%$4,342,470AA+ 16.9%$1,534,757AAA 9.6%$868,103AA- 8.5%$772,474A+ 5.6%$505,390A 5.0%$454,764Not Rated 4.1%$375,995A- 2.4%$220,996AA Totals 100.0%$9,074,950 5.6% A 4.1% A- 8.5% A+ 2.4% AA 9.6% AA- 47.9% AA+ 16.9% AAA 5.0% Not Rated PFM Asset Management LLC Detail may not add to total due to rounding. 21 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Issuer Distribution As of June 30, 2017 Market Value ($)% of PortfolioIssuer UNITED STATES TREASURY 1,715,033 18.9% FEDERAL HOME LOAN BANKS 1,394,804 15.4% FANNIE MAE 983,963 10.8% INTER-AMERICAN DEVELOPMENT BANK 218,382 2.4% THE BANK OF NEW YORK MELLON CORPORATION 200,105 2.2% JP MORGAN CHASE & CO 200,069 2.2% HSBC HOLDINGS PLC 200,038 2.2% AFRICAN DEVELOPMENT BANK 194,513 2.1% CISCO SYSTEMS INC 190,377 2.1% FLORIDA ST HURRICAN CAT FUND 181,021 2.0% CHEVRON CORPORATION 179,476 2.0% CARMAX AUTO OWNER TRUST 175,556 1.9% HONDA AUTO RECEIVABLES 169,479 1.9% INTL BANK OF RECONSTRUCTION AND DEV 167,906 1.9% TOYOTA AUTO RECEIVABLES 154,805 1.7% WELLS FARGO & COMPANY 149,709 1.7% BANK OF NOVA SCOTIA 149,389 1.7% WESTPAC BANKING CORP 139,251 1.5%Top 5 = 49.8% = 60.4% PFM Asset Management LLC Account 61350001 22 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Market Value ($)% of PortfolioIssuer APPLE INC 125,160 1.4% FREDDIE MAC 123,510 1.4% TOYOTA MOTOR CORP 110,058 1.2% CITIBANK CREDIT CARD ISSUANCE 100,128 1.1% ALLY AUTO RECEIVABLES TRUST 99,981 1.1% AMERICAN EXPRESS CREDIT ACCOUN 99,841 1.1% NISSAN AUTO RECEIVABLES 99,692 1.1% AMERICAN HONDA FINANCE 99,578 1.1% ROYAL BANK OF CANADA 99,232 1.1% BANK ON MONTREAL CHI 99,061 1.1% CANADIAN IMPERIAL BANK OF COMMERCE 99,054 1.1% CNH EQUIPMENT TRUST 94,894 1.1% BP PLC 90,826 1.0% ASIAN DEVELOPMENT BANK 90,262 1.0% INTEL CORPORATION 90,025 1.0% THE WALT DISNEY CORPORATION 89,806 1.0% MICROSOFT CORP 89,365 1.0% AMERICAN EXPRESS CO 85,100 0.9% HYUNDAI AUTO RECEIVABLES 79,678 0.9% TOTAL SA 75,637 0.8% PEPSICO INC 69,925 0.8% PFM Asset Management LLC 23 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Market Value ($)% of PortfolioIssuer BANK OF AMERICA CREDIT CARD TRUST 65,217 0.7% DEERE & COMPANY 60,226 0.7% FORD CREDIT AUTO OWNER TRUST 59,956 0.7% HOME DEPOT INC 45,021 0.5% BERKSHIRE HATHAWAY INC 39,976 0.4% JOHN DEERE OWNER TRUST 29,867 0.3% 9,074,950 100.0%Grand Total: PFM Asset Management LLC 24 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition Sector/Issuer Distribution As of June 30, 2017 % of SectorSector / Issuer Market Value ($)% of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 1.1% 8.1% 99,981 AMERICAN EXPRESS CREDIT ACCOUN 1.1% 8.1% 99,841 BANK OF AMERICA CREDIT CARD TRUST 0.7% 5.3% 65,217 CARMAX AUTO OWNER TRUST 1.9% 14.3% 175,556 CITIBANK CREDIT CARD ISSUANCE 1.1% 8.1% 100,128 CNH EQUIPMENT TRUST 1.0% 7.7% 94,894 FORD CREDIT AUTO OWNER TRUST 0.7% 4.9% 59,956 HONDA AUTO RECEIVABLES 1.9% 13.8% 169,479 HYUNDAI AUTO RECEIVABLES 0.9% 6.5% 79,678 JOHN DEERE OWNER TRUST 0.3% 2.4% 29,867 NISSAN AUTO RECEIVABLES 1.1% 8.1% 99,692 TOYOTA AUTO RECEIVABLES 1.7% 12.6% 154,805 100.0% 13.5% 1,229,093 Sector Total Corporate AMERICAN EXPRESS CO 0.9% 3.1% 85,100 AMERICAN HONDA FINANCE 1.1% 3.6% 99,578 APPLE INC 1.4% 4.5% 125,160 BANK OF NOVA SCOTIA 1.6% 5.4% 149,389 BANK ON MONTREAL CHI 1.1% 3.6% 99,061 PFM Asset Management LLC 25 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio BERKSHIRE HATHAWAY INC 0.4% 1.4% 39,976 BP PLC 1.0% 3.3% 90,826 CANADIAN IMPERIAL BANK OF COMMERCE 1.1% 3.6% 99,054 CHEVRON CORPORATION 2.0% 6.5% 179,476 CISCO SYSTEMS INC 2.1% 6.9% 190,377 DEERE & COMPANY 0.7% 2.2% 60,226 HOME DEPOT INC 0.5% 1.6% 45,021 HSBC HOLDINGS PLC 2.2% 7.2% 200,038 INTEL CORPORATION 1.0% 3.2% 90,025 JP MORGAN CHASE & CO 2.2% 7.2% 200,069 MICROSOFT CORP 1.0% 3.2% 89,365 PEPSICO INC 0.8% 2.5% 69,925 ROYAL BANK OF CANADA 1.1% 3.6% 99,232 THE BANK OF NEW YORK MELLON CORPORATION 2.2% 7.2% 200,105 THE WALT DISNEY CORPORATION 1.0% 3.2% 89,806 TOTAL SA 0.8% 2.7% 75,637 TOYOTA MOTOR CORP 1.2% 4.0% 110,058 WELLS FARGO & COMPANY 1.6% 5.4% 149,709 WESTPAC BANKING CORP 1.5% 5.0% 139,251 100.0% 30.6% 2,776,463 Sector Total Federal Agency/CMO FANNIE MAE 0.6% 100.0% 50,374 100.0% 0.6% 50,374 Sector Total PFM Asset Management LLC 26 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio Federal Agency/GSE FANNIE MAE 10.3% 38.1% 933,588 FEDERAL HOME LOAN BANKS 15.4% 56.9% 1,394,804 FREDDIE MAC 1.4% 5.0% 123,510 100.0% 27.0% 2,451,903 Sector Total Municipal FLORIDA ST HURRICAN CAT FUND 2.0% 100.0% 181,021 100.0% 2.0% 181,021 Sector Total Supra-Sov / Supra-Natl Agency AFRICAN DEVELOPMENT BANK 2.1% 29.0% 194,513 ASIAN DEVELOPMENT BANK 1.0% 13.5% 90,262 INTER-AMERICAN DEVELOPMENT BANK 2.4% 32.5% 218,382 INTL BANK OF RECONSTRUCTION AND DEV 1.9% 25.0% 167,906 100.0% 7.4% 671,063 Sector Total U.S. Treasury UNITED STATES TREASURY 18.9% 100.0% 1,715,033 100.0% 18.9% 1,715,033 Sector Total 100.0% 9,074,950 Portfolio Total 100.0% PFM Asset Management LLC 27 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon BUY 4/5/17 4/12/17 90,000 US TREASURY NOTES 6/30/20 429,942.31 1.50%1.62% 1,410,000 1,415,786.23Total BUY INTEREST 4/1/17 4/1/17 480,000 ALLYA 2017-2 A3 8/15/21 55.38 1.78% PFM Asset Management LLC 28 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 4/15/17 4/15/17 30,000 FORDO 2017-A A3 6/15/21 83.50 1.67% PFM Asset Management LLC 29 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 5/15/17 5/15/17 30,000 INTL BANK OF RECON AND DEV GLOBAL NOTES 6/15/18 150.00 1.00% PFM Asset Management LLC 30 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 6/15/17 6/15/17 85,000 US TREASURY NOTES 12/31/18 2,700.00 1.50% 7,286,356 31,127.45Total INTEREST PAYDOWNS 4/1/17 4/25/17 41,270 CARMX 2016-4 A2 11/15/19 7,810.41 0.00 1.21% 70,241 70,241.37 0.00Total PAYDOWNS PFM Asset Management LLC 31 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon SELL 4/5/17 4/12/17 90,000 FHLB NOTES 8/7/18 298,529.37 1.29% (1,483.49)0.62% 1,330,000 1,329,424.13 -3,503.54Total SELL PFM Asset Management LLC 32 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Quarterly Portfolio Transactions Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 4/1/17 4/1/17 480,000.00 TAOT 2017-A A3INTEREST 2/15/21 43.25 1.73% PFM Asset Management LLC 33 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 4/15/17 4/15/17 35,000.00 FNMA SERIES 2016-M9 ASQ2PAYDOWNS 6/1/19 18,432.81 0.00 1.78% PFM Asset Management LLC 34 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 5/4/17 5/11/17 55,000.00 AMXCA 2017-3 AINTEREST 11/15/22 98.33 1.77% PFM Asset Management LLC 35 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 5/15/17 5/15/17 65,000.00 TAOT 2017-A A3INTEREST 2/15/21 43.25 1.73% PFM Asset Management LLC 36 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 6/15/17 6/15/17 65,000.00 US TREASURY NOTESBUY 6/30/20 (429,942.31) 1.50%1.62% PFM Asset Management LLC 37 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 6/26/17 6/28/17 125,000.00 US TREASURY NOTESINTEREST 12/31/18 2,700.00 1.50% TOTALS 15,006.72 (3,503.54) PFM Asset Management LLC 38 of 45 Tab IIIPFM Asset Management LLC39 of 45 For the Quarter Ended June 30, 2017VILLAGE OF NORTH PALM BEACH, FLORIDA¹Asset AllocationSecurity TypeAmortized Cost(Includes Interest)Allocation PercentageNotesPermitted by PolicyIn ComplianceFlorida Prime (SBA)518,233.40 2.76% 225%YESUnited States Treasury Securities1,717,811.88 9.15%100%YESFederal Agency (GSE)2,475,099.71 13.18%75%YESSupranationals 676,843.17 3.61%25%YESMortgage-Backed Securities50,725.67 0.27%25%YESAsset Backed Securities1,232,111.44 6.56%25%YESCertificates of Deposit- 0.00%50%YESCommercial Paper - 0.00% 350%YESCorporate Notes 2,791,726.60 14.87% 350%YESMunicipal Obligations181,946.70 0.97%25%YESMoney Market Mutual Funds25,947.81 0.14%50%YESIntergovernmental Investment Pool- 0.00% 4100%YESInterest Bearing Checking or Savings Account9,101,716.14 48.49% 2100%YESVillage Managed9,645,897.35 51.38%PFM Managed9,126,265.17 48.62%Total18,772,162.52 100.00%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. 4. A balance of $14,992,403 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 allocation limits.PFM Asset Management LLCFlorida Prime (SBA)2.76%United States Treasury Securities9.15%Federal Agency (GSE)13.18%Supranationals3.61%Mortgage‐Backed Securities0.27%Asset Backed Securities6.56%Corporate Notes 14.87%Municipal Obligations0.97%Money Market Mutual Funds0.14%Interest Bearing Checking or Savings Account48.49%40 of 45 For the Quarter Ended June 30, 2017VILLAGE OF NORTH PALM BEACH, FLORIDA¹Asset AllocationIndividual Issuer BreakdownAmortized Cost(Includes Interest)Allocation PercentageNotesPermitted by PolicyIn ComplianceGovernment National Mortgage Association (GNMA)- 0.00%40%YESFederal Farm Credit Bank (FFCB)- 0.00%40%YESFederal Home Loan Bank (FHLB)1,406,821.55 7.49%40%YESFederal National Mortgage Association (FNMA)993,718.47 5.29%40%YESFederal Home Loan Mortgage Corporation (FHLMC)125,285.36 0.67%40%YESFlorida State Hurricane Cat Fund Municipal Bonds 181,946.70 0.97%5%YESAmerican Express Company Corporate Notes85,404.32 0.45%5%YESAmerican Honda Finance Corporate Notes100,546.92 0.54%5%YESApple, Inc. Corporate Notes125,500.59 0.67%5%YESBank of Montreal Corporate Notes100,613.68 0.54%5%YESBank of New York Company Inc. Corporate Notes200,341.30 1.07%5%YESBank of Nova Scotia Corporate Notes150,410.31 0.80%5%YESBerkshire Hathaway, Inc. Corporate Notes40,177.02 0.21%5%YESBP Capital Markets Corporate Notes91,488.51 0.49%5%YESCanadian Imperial Corporate Notes100,498.01 0.54%5%YESChevron Corporation Corporate Notes180,351.23 0.96%5%YESCisco Corporate Notes190,129.03 1.01%5%YESHome Depot Corporate Notes45,033.02 0.24%5%YESHSBC Holdings plc Corporate Notes201,162.94 1.07%5%YESIntel Corporate Notes90,198.64 0.48%5%YESJohn Deere Corporate Notes60,249.73 0.32%5%YESJP Morgan Chase & Company Corporate Notes201,119.09 1.07%5%YESMicrosoft Corporation Corporate Notes90,424.93 0.48%5%YESPepsiCo, Inc. Corporate Notes70,138.95 0.37%5%YESRoyal Bank of Canada Corporate Notes100,554.42 0.54%5%YESThe Walt Disney Company Corporate Notes90,010.48 0.48%5%YESTotal Capital SA Corporate Notes75,570.58 0.40%5%YESToyota Motor Corporation Corporate Notes110,545.03 0.59%5%YESWells Fargo & Company Corporate Notes150,952.48 0.80%5%YESWestpac Banking Corp Corporate Notes140,305.39 0.75%5%YESAmerican Express ABS100,060.75 0.53%5%YESAlly Auto Receivables Trust ABS100,067.91 0.53%5%YESBank of America ABS65,038.52 0.35%5%YESPFM Asset Management LLC41 of 45 For the Quarter Ended June 30, 2017VILLAGE OF NORTH PALM BEACH, FLORIDA¹Asset AllocationCarmax Auto Owner Trust ABS175,811.66 0.94%5%YESCitiBank Credit Card Issuance Trust ABS100,749.17 0.54%5%YESCNH Equipment Trust ABS95,063.70 0.51%5%YESFord Auto Receivables ABS60,044.33 0.32%5%YESHonda Auto Receivables ABS170,060.57 0.91%5%YESHyundai Auto Receivables ABS80,046.70 0.43%5%YESJohn Deere ABS30,014.85 0.16%5%YESNissan Auto Receivables ABS100,056.09 0.53%5%YESToyota Auto Receivables ABS155,097.19 0.83%5%YESAfrican Development Bank195,647.39 1.04%10%YESAsian Development Bank90,695.30 0.48%10%YESInter-American Development Bank220,060.25 1.17%10%YESInternational Bank of Recon and Dev Notes170,440.23 0.91%10%YESMoney Market Fund - TD Bank Sweep Account25,947.81 0.14%33%YESInterest Bearing Checking/Savings Acct-Wells Fargo 6,551,405.63 34.90%50%YESInterest Bearing Checking/Savings Acct-Flagler Bank 1,515,486.16 8.07%50%YESInterest Bearing Checking/Savings Acct-BankUnited 1,034,824.35 5.51%50%YESPFM Asset Management LLC42 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Portfolio Activity 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 Ã 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. Ã 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. Ã 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. Ã Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets. Ã Money market fund/cash balances are included in performance and duration computations. Ã Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings. Ã 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. Ã MBS maturities are represented by expected average life. PFM Asset Management LLC Account of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Appendix GLOSSARY Ã ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made. Ã AGENCIES: Federal agency securities and/or Government-sponsored enterprises. Ã 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. Ã 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. Ã COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory. Ã 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. Ã 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. Ã EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years. Ã 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. Ã FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount. Ã INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage. Ã MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date. Ã MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. Ã NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets. Ã PAR VALUE: The nominal dollar face amount of a security. PFM Asset Management LLC 44 of 45 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended June 30, 2017 Appendix GLOSSARY Ã 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. Ã 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. Ã 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. Ã TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place. Ã UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place. Ã U.S. TREASURY: The department of the U.S. government that issues Treasury securities. Ã 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. Ã 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. Ã 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 45 of 45