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03-31-2018 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 March 31, 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 1 of 48 VILLAGE OF NORTH PALM BEACH, FLORIDA For the Quarter Ended March 31, 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 2 of 48 Tab I PFM Asset Management LLC 3 of 48 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management SUMMARY •The first quarter was characterized by a spike in volatility associated with an equity market correction, talks of tariffs and trade wars, a modest uptick in inflation, and a panoply of geopolitical concerns. Despite healthy fundamentals and a robust global economic backdrop, “risk-off” sentiment began to take hold of the financial markets. For the first time in nearly 10 years, both the stock market and bond market posted losses for the quarter. •During the quarter, President Trump signed a $1.3 trillion omnibus spending bill which averted a government shutdown, significantly increased military spending, and increased funding in a variety of discretionary areas, including background checks for gun purchases, election security, infrastructure, the opioid crisis, child care, low-income housing, the National Park Service, veterans’ hospitals, pay raises for the troops, school safety, and border security. As a result, the Congressional Budget Office (CBO) now estimates that the federal budget deficit will exceed $1 trillion per year by 2020. •Under new Federal Reserve (Fed) chair Jay Powell, the Federal Open Market Committee (FOMC) raised the short-term federal funds target rate 0.25% to a new range of 1.50 to 1.75% at its March meeting. While widely anticipated, the March rate hike indicates the Fed remains committed to its well-defined and well- telegraphed path of monetary policy tightening. Expectations point to two or three more rate hikes over the balance of 2018, with additional hikes likely in 2019 and 2020 as well. •Bond yields continued their ascent over the quarter, with the two-year Treasury reaching a near-decade high. Meanwhile, the S&P 500 index dipped into negative territory for the quarter – the first negative quarter for the headline index since the third quarter of 2015. International indices also posted declines for the quarter, but a weaker U.S. dollar helped temper those relative losses. ECONOMIC SNAPSHOT •Economic data continues to support growth and optimism (both business and consumer) as a myriad of indicators reached or remained at multi-year bests during the quarter, including the unemployment rate, consumer confidence, productivity, and manufacturing. •The U.S. economy posted solid results last year, as the Gross Domestic Product (GDP) for the fourth quarter was revised up to show a real growth rate of 2.9%, after back-to-back readings in excess of 3.0% the prior two quarters. In the midst of eight straight years of domestic economic expansion, global growth is now in synchrony, with nearly every advanced economy around the globe, including the Eurozone, Japan, and China, showing positive growth rates. •The U.S. labor market remained strong as the unemployment rate hovered at a 17-year low of 4.1%. The economy also posted positive net job gains for consecutive months dating back to the fourth quarter of 2010. Meanwhile, wages are beginning to gain some traction, as average hourly earnings – an important measure of wage growth – increased 2.7% over the past year. INTEREST RATES •U.S. Treasury yields rose across the yield curve, as the yield on the 2-year increased 38 basis points (bps) from 1.88 to 2.26%, while the yield on a 10-year increased 33 bps from 2.40 to 2.73%. Although the yield curve initially steepened early in the quarter, as longer-term rates moved up in response to a modest uptick in inflation expectations, the flattening trend ultimately resumed, retreating to post- recession tights by quarter-end. •Money market investors have reaped the benefits of the Fed’s rate increases, as yields on securities with maturities less than one year continued to reflect rising short-term rates. In addition, a huge surge in the supply of U.S. Treasury bills pushed shorter-term yields higher still. •After years of tightening yield spreads, the spike in market volatility caused spreads on corporates and other non-government sectors to widen sharply. SECTOR PERFORMANCE •The continued federal fund rate hikes resulted in negative returns for most bond indices, with longer maturities performing worst. Although higher yields provide greater income over time, that income was not sufficient to offset the adverse impact of increasing interest rates on fixed income prices. •Although Federal Agency returns were also negative, they generated returns slightly more positive than similar duration Treasuries, as their modest incremental income was a slight benefit. •The municipal sector provided some reprieve for fixed income investors during the quarter, as returns were positive and outperformed most other investment-grade (IG) alternatives. The large decline in new issuance in the first quarter, caused by tax changes enacted in the fourth quarter, created a supply/demand imbalance that benefited the sector. •IG corporate yield spreads ended the quarter wider, resulting in the sector being one of the worst performing fixed-income sectors in the first quarter. Despite the poor quarter, trailing returns over longer time periods remain strong, and the underlying strength of corporate fundamentals remains intact. •The mortgage-backed securities (MBS) sector struggled to find footing during the quarter as low yield spreads, upcoming seasonal supply, and Fed balance sheet unwinding continued to weigh on investor demand. As a result, the sector generated a negative excess return for the quarter. •Short-term commercial paper (CP) and bank Certificates of Deposits (CDs) offered even greater incremental value in the first quarter as short-term yields rose in response to the burgeoning Treasury supply, and credit spreads widened. 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 4 of 48 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management Economic Snapshot Labor Market Dec '17 Mar '17 Unemployment Rate Mar '18 4.1%4.1%4.5% Change In Non-Farm Payrolls Mar '18 103,000 175,000 73,000 Average Hourly Earnings (YoY)Mar '18 2.7%2.7%2.6% Personal Income (YoY)Feb '18 3.7%4.3%3.4% Initial Jobless Claims (week)4/7/18 233,000 248,000 241,000 Growth Real GDP (QoQ SAAR)2017 Q4 2.9%3.2%1.8% GDP Personal Consumption (QoQ SAAR) 2018 Q4 4.0%2.2%2.9% Retail Sales (YoY)Mar '18 4.5%5.1%4.9% ISM Manufacturing Survey (month) Mar '18 59.3 59.3 56.6 Existing Home Sales SAAR (month) Feb '18 5.54 mil. 5.56 mil. 5.67 mil. Inflation / Prices Personal Consumption Expenditures (YoY)Feb '18 1.8%1.7%1.8% Consumer Price Index (YoY)Mar '18 2.4%2.1%2.4% Consumer Price Index Core (YoY) Mar '18 2.1%1.8%2.0% Crude Oil Futures (WTI, per barrel) Mar 31 $64.94 $60.42 $50.60 Gold Futures (oz.)Mar 31 $1,323 $1,309 $1,247 Latest 0 150K 300K 450K 4% 5% 6% Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate 0% 2% 4% Dec '14 Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Real GDP (QoQ) -1% 0% 1% 2% 3% Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Consumer Price Index CPI (YoY)Core CPI (YoY) 2 2 1 1 1. Data as of Third Quarter 2017. 2. Data as of Fourth 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 LLC 5 of 48 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 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 3/31/18 0% 1% 2% 3% 4%3-mo1-yr2-yr3-yr5-yr7-yr10-yr30-yrYieldMaturity March 31, 2018 December 31, 2017 March 31, 2017 Maturity Mar '18 Dec '17 Change over Quarter Mar '17 Change over Year 3-month 1.71% 1.38% 0.33% 0.75% 0.96% 1-year 2.09% 1.74% 0.35% 1.02% 1.07% 2-year 2.27% 1.89% 0.38% 1.26% 1.01% 5-year 2.56% 2.21% 0.35% 1.92% 0.64% 10-year 2.74% 2.41% 0.33% 2.39% 0.35% 30-year 2.97% 2.74% 0.23% 3.01%(0.04%) 0% 1% 2% 3% 4% 5%3-mo1-yr2-yr3-yr5-yr7-yr10-yr25-yr30-yrYieldMaturity U.S. Treasury Federal Agency Industrial Corporates, A Rated 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3/31/17 6/30/17 9/30/17 12/31/17 3/31/18Yield 2-Year 5-Year 10-Year PFM Asset Management LLC 6 of 48 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management Source: ICE BofAML Indices. March 31, 2018 Duration Yield 3-Month 1-Year 3-Years 1-3 Year Indices U.S. Treasury 1.80 2.27%(0.13%)0.03% 0.40% Federal Agency 1.74 2.31%(0.02%)0.32% 0.58% U.S. Corporates, A-AAA rated 1.81 2.90%(0.41%)0.65% 1.15% Agency MBS (0 to 3 years)2.38 2.57% 0.01% 0.99% 1.05% Taxable Municipals 1.49 2.76% 0.25% 1.69% 1.83% 1-5 Year Indices U.S. Treasury 2.59 2.36%(0.38%) (0.10%)0.47% Federal Agency 2.10 2.36%(0.18%)0.26% 0.65% U.S. Corporates, A-AAA rated 2.61 3.04%(0.80%)0.62% 1.31% Agency MBS (0 to 5 years)3.27 2.75%(0.61%)0.52% 0.92% Taxable Municipals 2.23 2.84% 0.13% 1.62% 1.99% Master Indices (Maturities 1 Year or Greater) U.S. Treasury 6.24 2.55%(1.21%)0.51% 0.47% Federal Agency 3.86 2.53%(0.53%)0.85% 0.94% U.S. Corporates, A-AAA rated 6.97 3.50%(2.31%)2.11% 1.96% Agency MBS (0 to 30 years)5.03 3.26%(1.21%)0.74% 1.10% Taxable Municipals 10.63 3.88%(1.73%)6.82% 3.73% As of 3/31/18 Returns for Periods ended 3/31/18 Returns for periods greater than one year are annualized. PFM Asset Management LLC ICE BofAML Index Returns 7 of 48 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 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 8 of 48 Tab II PFM Asset Management LLC 9 of 48 VILLAGE OF NORTH PALM BEACH, FLORIDA For the Quarter Ended March 31, 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 -0.17%underperformed the benchmark performance of -0.13% by 0.04%. Over the last 12 months the total return performance for the Portfolio was 0.37%, outperforming the benchmark's return of 0.03%. New Fed Chair Jay Powell made his first public address at February’s semi-annual monetary policy report to Congress. His maiden testimony hinted at a continuance of gradual rate hikes,while acknowledging that “the economic outlook remains strong”and the expectation for inflation to increase and closely approach the FOMC’s 2%objective remains intact. The combined effects of less predictable U.S. politics and policy (e.g. tariffs,trade wars,Facebook, global relations, budget deficits,etc.)created an environment of heightened volatility.The “risk off”sentiment triggered wider credit spreads. Wider spreads caused corporate-related investments to underperform for the quarter. While portfolios typically benefit from increased credit allocations,returns in Q1 were negatively affected. Federal agency yield spreads remained very narrow throughout the quarter.New issue agencies continued to be our preferred – in some cases only --outlet to add exposure at relatively attractive yields. Generally,the agency sector added modest positive excess returns in Q1 (returns in excess of similar duration Treasuries)across much of the yield curve, benefitting portfolio performance. The economic themes that carried over into 2018 remain:healthy job production, consistent GDP growth, positive corporate guidance, and heightened consumer confidence. However, where complacency had characterized the global markets quarter after quarter,volatility roared back in Q1. While rising volatility increases some market risks, it can also create investment opportunities. 10 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Snapshot Portfolio Statistics As of March 31, 2018 $9,164,361 $9,128,882 $9,035,700 $29,430 $63,752 Accrued Interest: Cash: Par Value: Total Market Value: Security Market Value: $9,152,903 2.44% 1.66% AAAverage Credit: * Yield at Cost: Amortized Cost: Yield at Market: Effective Duration:1.75 Years Duration to Worst:1.85 Years Average Maturity:2.10 Years Credit Quality (S&P Ratings) 5.2% A 2.8% A- 12.1% A+ 2.6% AA 6.7% AA- 45.5% AA+ 17.8% AAA 0.4% BBB+ 6.8% Not Rated 0% 10% 20% 30% 40% 50% 0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years 5.1% 47.1% 31.5% 11.7% 3.9% 0.8% Maturity Distribution Sector Allocation 15.0% Asset-Backed 30.4% Corporate 0.2% Federal Agency/CMO 10.5% Federal Agency/GSE 2.0% Municipal 8.5% Supra-Sov / Supra-Natl Agency 33.4% 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 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 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 1.75 -0.17%-0.37%0.67%0.69%0.98% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 -0.13%-0.03%0.40%0.52%0.89% Difference 0.34%-0.04%0.27%0.17%-0.09% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception -0.17% 0.37% 0.67%0.69% 0.98% -0.13% 0.03% 0.40% 0.52% 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 61350001 12 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Performance Portfolio Performance (Total Return) Effective DurationPortfolio/Benchmark Annualized Return 12/31/17 06/30/1703/31/18 09/30/17 Quarter Ended 5 Year1 Year 3 Year NORTH PALM BEACH INVESTMENT PORTFOLIO 1.75 -0.17%0.37%0.67%0.69%-0.15% 0.35% 0.34% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 -0.13%0.03%0.40%0.52%-0.25% 0.24% 0.17% Difference 0.34%-0.04%0.27%0.17%0.10% 0.11% 0.17% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 03/31/18 12/31/17 09/30/17 06/30/17 1 Year 3 Year 5 Year -0.17%-0.15% 0.35%0.34%0.37% 0.67%0.69% -0.13% -0.25% 0.24% 0.17% 0.03% 0.40% 0.52%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 61350001 13 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Performance Portfolio Performance (Total Return) 12/31/17 06/30/1703/31/18 09/30/17 Quarter Ended Annualized Return 5 Year1 Year 3 YearPortfolio/Benchmark Effective Duration 0.37%0.67%0.69%-0.15% 0.35% 0.34%NORTH PALM BEACH INVESTMENT PORTFOLIO -0.17%1.75 0.29%0.59%0.61%-0.17% 0.33% 0.32% Net of Fees **-0.19%- 0.03%0.40%0.52%-0.25% 0.24% 0.17%ICE BofAML 1-3 Year U.S. Treasury Index -0.13%1.80 0.34%-0.04%0.27%0.17%0.10% 0.11% 0.17%Difference (Gross) Difference (Net)-0.06% 0.08% 0.09% 0.15%0.26%0.19%0.09% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 03/31/18 12/31/17 09/30/17 06/30/17 1 Year 3 Year 5 Year -0.17%-0.15% 0.35%0.34%0.37% 0.67%0.69% -0.13% -0.25% 0.24% 0.17% 0.03% 0.40% 0.52%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 61350001 14 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Performance Portfolio Earnings Quarter-Ended March 31, 2018 Market Value Basis Accrual (Amortized Cost) Basis Net Purchases/Sales Change in Value Interest Earned $9,074,906.61 $11,450.22 ($50,656.80) $35,478.24 ($15,178.56) $9,035,700.03 $9,145,924.07 $11,450.22 ($4,471.61) $35,478.24 $31,006.63 $9,152,902.68 Portfolio Earnings Beginning Value (12/31/2017) Ending Value (03/31/2018) PFM Asset Management LLC 15 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Sector Allocation As of March 31, 2018 Market Value ($)% of PortfolioSector U.S. Treasury 3,024,198 33.4% Corporate 2,744,058 30.4% Asset-Backed 1,356,043 15.0% Federal Agency/GSE 948,497 10.5% Supra-Sov / Supra-Natl Agency 765,092 8.5% Municipal 179,554 2.0% Federal Agency/CMO 18,257 0.2% Total $9,035,700 100.0% 15.0% Asset-Backed 30.4% Corporate 0.2% Federal Agency/CMO 10.5% Federal Agency/GSE 2.0% Municipal 8.5% Supra-Sov / Supra-Natl Agency 33.4% U.S. Treasury PFM Asset Management LLC Detail may not add to total due to rounding. 16 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Sector Allocation As of March 31, 2018 Market Value ($)Sector % of Portfolio % of Benchmark 100.0% 33.4% 3,024,198 U.S. Treasury - 30.4% 2,744,058 Corporate - 15.0% 1,356,043 Asset-Backed - 10.5% 948,497 Federal Agency/GSE - 8.5% 765,092 Supra-Sov / Supra-Natl Agency - 2.0% 179,554 Municipal - 0.2% 18,257 Federal Agency/CMO $9,035,700 100.0% 100.0%Total 0% 20% 40% 60% 80% 100% Asset-Backed Corporate Federal Agency/CMO Federal Agency/GSE Municipal Supra-Sov / Supra-Natl Agency U.S. Treasury 15.0% 30.4% 0.2% 10.5% 2.0% 8.5% 33.4% 0.0%0.0%0.0%0.0%0.0%0.0% 100.0% NORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC Detail may not add to total due to rounding. 17 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Sector Allocation March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 % of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM) U.S. Treasury 3.0 33.4% 2.5 28.1% 2.4 26.6% 1.7 18.9% Corporate 2.7 30.4% 3.0 32.7% 2.9 31.9% 2.8 30.6% Asset-Backed 1.4 15.0% 1.3 14.2% 1.2 13.1% 1.2 13.5% Federal Agency/GSE 0.9 10.5% 1.4 15.7% 1.7 19.0% 2.5 27.0% Supra-Sov / Supra-Natl Agency 0.8 8.5% 0.6 7.0% 0.6 7.1% 0.7 7.4% Municipal 0.2 2.0% 0.2 2.0% 0.2 2.0% 0.2 2.0% Federal Agency/CMO 0.0 0.2% 0.0 0.3% 0.0 0.3% 0.1 0.6% $9.0 100.0%$9.1 100.0%$9.0 100.0%$9.1 100.0%Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% March 2018 December 2017 September 2017 June 2017 Federal Agency/CMO Municipal Supra-Sov / Supra-Natl Agency Federal Agency/GSE Asset-Backed Corporate U.S. Treasury PFM Asset Management LLC Detail may not add to total due to rounding. 18 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Maturity Distribution As of March 31, 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 2.44% 5.1% 47.1% 31.5% 11.7% 3.9% 0.8%2.10 yrs ICE BofAML 1-3 Year U.S. Treasury Index 2.28% 3.0% 54.2% 42.8% 0.0% 0.0% 0.0%1.93 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 5.1% 47.1% 31.5% 11.7% 3.9% 0.8%3.0% 54.2% 42.8% 0.0%0.0%0.0% NORTH PALM BEACH INVESTMENT PORTFOLIO ICE BofAML 1-3 Year U.S. Treasury Index PFM Asset Management LLC 19 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition As of March 31, 2018 Duration Distribution > 5 YEARS4-5 YEARS3-4 YEARS2-3 YEARS1-2 YEARS0-1 YEARSEffective DurationPortfolio / Benchmark NORTH PALM BEACH INVESTMENT PORTFOLIO 1.75 10.0% 52.2% 37.9% 0.0% 0.0% 0.0% ICE BofAML 1-3 Year U.S. Treasury Index 1.80 3.0% 55.2% 41.8% 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 10% 52% 38% 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 3% 44% 53% 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 20 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Credit Quality As of March 31, 2018 S&P Rating Market Value ($)% of Portfolio 45.6%$4,114,676AA+ 17.8%$1,612,158AAA 12.1%$1,089,904A+ 6.8%$617,351Not Rated 6.7%$601,657AA- 5.2%$470,586A 2.8%$255,772A- 2.6%$238,987AA 0.4%$34,610BBB+ Totals 100.0%$9,035,700 5.2% A 2.8% A- 12.1% A+ 2.6% AA 6.7% AA- 45.5% AA+ 17.8% AAA 0.4% BBB+ 6.8% Not Rated PFM Asset Management LLC Detail may not add to total due to rounding. 21 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Issuer Distribution As of March 31, 2018 Market Value ($)% of PortfolioIssuer UNITED STATES TREASURY 3,024,198 33.5% FEDERAL HOME LOAN BANKS 466,746 5.2% FANNIE MAE 377,155 4.2% TOYOTA MOTOR CORP 260,367 2.9% AFRICAN DEVELOPMENT BANK 232,204 2.6% INTER-AMERICAN DEVELOPMENT BANK 216,896 2.4% CITIGROUP INC 198,579 2.2% AMERICAN EXPRESS CO 181,916 2.0% FLORIDA ST HURRICAN CAT FUND 179,554 2.0% CHEVRON CORPORATION 178,290 2.0% WELLS FARGO & COMPANY 148,299 1.6% BANK OF NOVA SCOTIA 148,060 1.6% THE BANK OF NEW YORK MELLON CORPORATION 139,794 1.6% WESTPAC BANKING CORP 138,290 1.5% INTL BANK OF RECONSTRUCTION AND DEV 137,325 1.5% CARMAX AUTO OWNER TRUST 128,488 1.4% APPLE INC 123,723 1.4% FREDDIE MAC 122,853 1.4%Top 5 = 48.3% = 58.8% PFM Asset Management LLC Account 61350001 22 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Market Value ($)% of PortfolioIssuer BANK OF AMERICA CO 122,763 1.4% CNH EQUIPMENT TRUST 118,419 1.3% HONDA AUTO RECEIVABLES 108,389 1.2% ALLY AUTO RECEIVABLES TRUST 99,021 1.1% HSBC HOLDINGS PLC 98,999 1.1% NISSAN AUTO RECEIVABLES 98,740 1.1% AMERICAN HONDA FINANCE 98,651 1.1% ROYAL BANK OF CANADA 98,368 1.1% CANADIAN IMPERIAL BANK OF COMMERCE 98,325 1.1% BANK OF MONTREAL 98,301 1.1% INTERNATIONAL FINANCE CORPORATION 89,674 1.0% BP PLC 89,019 1.0% ASIAN DEVELOPMENT BANK 88,994 1.0% MICROSOFT CORP 88,700 1.0% INTEL CORPORATION 88,589 1.0% THE WALT DISNEY CORPORATION 88,180 1.0% JOHN DEERE OWNER TRUST 83,701 0.9% HYUNDAI AUTO RECEIVABLES 78,785 0.9% TORONTO-DOMINION BANK 77,857 0.9% TOTAL SA 74,499 0.8% PACCAR FINANCIAL CORP 74,322 0.8% PFM Asset Management LLC 23 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Market Value ($)% of PortfolioIssuer PEPSICO INC 69,677 0.8% CAPITAL ONE FINANCIAL CORP 68,760 0.8% CATERPILLAR INC 63,458 0.7% DEERE & COMPANY 59,568 0.7% FORD CREDIT AUTO OWNER TRUST 59,352 0.7% UNITED PARCEL SERVICE INC 53,792 0.6% VISA INC 49,210 0.5% HOME DEPOT INC 44,205 0.5% NATIONAL RURAL UTILITIES CO FINANCE CORP 39,890 0.4% WAL-MART STORES INC 39,570 0.4% GOLDMAN SACHS GROUP INC 34,610 0.4% HONEYWELL INTERNATIONAL 24,671 0.3% BB&T CORPORATION 24,368 0.3% BERKSHIRE HATHAWAY INC 19,864 0.2% JOHNSON & JOHNSON 19,674 0.2% 9,035,700 100.0%Grand Total: PFM Asset Management LLC 24 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition Sector/Issuer Distribution As of March 31, 2018 % of SectorSector / Issuer Market Value ($)% of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 1.1% 7.3% 99,021 AMERICAN EXPRESS CO 1.1% 7.2% 98,204 BANK OF AMERICA CO 0.7% 4.7% 64,090 CAPITAL ONE FINANCIAL CORP 0.8% 5.1% 68,760 CARMAX AUTO OWNER TRUST 1.4% 9.5% 128,488 CITIGROUP INC 2.2% 14.6% 198,579 CNH EQUIPMENT TRUST 1.3% 8.7% 118,419 FORD CREDIT AUTO OWNER TRUST 0.7% 4.4% 59,352 HONDA AUTO RECEIVABLES 1.2% 8.0% 108,389 HYUNDAI AUTO RECEIVABLES 0.9% 5.8% 78,785 JOHN DEERE OWNER TRUST 0.9% 6.2% 83,701 NISSAN AUTO RECEIVABLES 1.1% 7.3% 98,740 TOYOTA MOTOR CORP 1.7% 11.2% 151,515 100.0% 15.0% 1,356,043 Sector Total Corporate AMERICAN EXPRESS CO 0.9% 3.1% 83,712 AMERICAN HONDA FINANCE 1.1% 3.6% 98,651 APPLE INC 1.4% 4.5% 123,723 BANK OF AMERICA CO 0.6% 2.1% 58,673 PFM Asset Management LLC 25 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio BANK OF MONTREAL 1.1% 3.6% 98,301 BANK OF NOVA SCOTIA 1.6% 5.4% 148,060 BB&T CORPORATION 0.3% 0.9% 24,368 BERKSHIRE HATHAWAY INC 0.2% 0.7% 19,864 BP PLC 1.0% 3.2% 89,019 CANADIAN IMPERIAL BANK OF COMMERCE 1.1% 3.6% 98,325 CATERPILLAR INC 0.7% 2.3% 63,458 CHEVRON CORPORATION 2.0% 6.5% 178,290 DEERE & COMPANY 0.7% 2.2% 59,568 GOLDMAN SACHS GROUP INC 0.4% 1.3% 34,610 HOME DEPOT INC 0.5% 1.6% 44,205 HONEYWELL INTERNATIONAL 0.3% 0.9% 24,671 HSBC HOLDINGS PLC 1.1% 3.6% 98,999 INTEL CORPORATION 1.0% 3.2% 88,589 JOHNSON & JOHNSON 0.2% 0.7% 19,674 MICROSOFT CORP 1.0% 3.2% 88,700 NATIONAL RURAL UTILITIES CO FINANCE CORP 0.4% 1.5% 39,890 PACCAR FINANCIAL CORP 0.8% 2.7% 74,322 PEPSICO INC 0.8% 2.5% 69,677 ROYAL BANK OF CANADA 1.1% 3.6% 98,368 THE BANK OF NEW YORK MELLON CORPORATION 1.5% 5.1% 139,794 THE WALT DISNEY CORPORATION 1.0% 3.2% 88,180 TORONTO-DOMINION BANK 0.9% 2.8% 77,857 TOTAL SA 0.8% 2.7% 74,499 TOYOTA MOTOR CORP 1.2% 4.0% 108,852 PFM Asset Management LLC 26 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio UNITED PARCEL SERVICE INC 0.6% 2.0% 53,792 VISA INC 0.5% 1.8% 49,210 WAL-MART STORES INC 0.4% 1.4% 39,570 WELLS FARGO & COMPANY 1.6% 5.4% 148,299 WESTPAC BANKING CORP 1.5% 5.0% 138,290 100.0% 30.4% 2,744,058 Sector Total Federal Agency/CMO FANNIE MAE 0.2% 100.0% 18,257 100.0% 0.2% 18,257 Sector Total Federal Agency/GSE FANNIE MAE 4.0% 37.8% 358,898 FEDERAL HOME LOAN BANKS 5.2% 49.2% 466,746 FREDDIE MAC 1.4% 13.0% 122,853 100.0% 10.5% 948,497 Sector Total Municipal FLORIDA ST HURRICAN CAT FUND 2.0% 100.0% 179,554 100.0% 2.0% 179,554 Sector Total Supra-Sov / Supra-Natl Agency AFRICAN DEVELOPMENT BANK 2.6% 30.3% 232,204 ASIAN DEVELOPMENT BANK 1.0% 11.6% 88,994 PFM Asset Management LLC 27 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Composition % of SectorSector / Issuer Market Value ($)% of Total Portfolio INTER-AMERICAN DEVELOPMENT BANK 2.4% 28.3% 216,896 INTERNATIONAL FINANCE CORPORATION 1.0% 11.7% 89,674 INTL BANK OF RECONSTRUCTION AND DEV 1.5% 17.9% 137,325 100.0% 8.5% 765,092 Sector Total U.S. Treasury UNITED STATES TREASURY 33.5% 100.0% 3,024,198 100.0% 33.5% 3,024,198 Sector Total 100.0% 9,035,700 Portfolio Total 100.0% PFM Asset Management LLC 28 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 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 1/25/18 1/31/18 100,000 AFRICAN DEVELOPMENT BANK NOTE 3/22/21 39,958.80 2.66%2.62% 945,000 940,561.82Total BUY INTEREST 1/1/18 1/1/18 180,000 CARMX 2017-4 A2A 4/15/21 90.00 1.80% PFM Asset Management LLC 29 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 1/15/18 1/15/18 60,000 FNMA SERIES 2016-M9 ASQ2 6/1/19 34.18 1.78% PFM Asset Management LLC 30 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 2/2/18 2/2/18 130,000 HONDA ABS 2017-1 A3 7/21/21 64.50 1.72% PFM Asset Management LLC 31 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 2/22/18 2/22/18 50,000 BERKSHIRE HATHAWAY INC NOTES 3/15/19 170.00 1.70% PFM Asset Management LLC 32 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 3/15/18 3/15/18 70,000 US TREASURY NOTES 3/31/21 3,375.00 2.25% 8,530,957 40,886.57Total INTEREST MATURITY 2/1/18 2/1/18 200,000 HSBC USA CORP NOTES 3/5/18 200,000.00 0.00 1.70% 400,000 400,000.00 0.00Total MATURITY PAYDOWNS 1/1/18 1/25/18 2,096 FNMA SERIES 2016-M9 ASQ2 6/1/19 2,104.42 0.00 1.78% PFM Asset Management LLC 33 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 2/15/18 2/15/18 6,272 HONDA ABS 2016-3 A3 6/18/19 4,829.01 0.00 1.16% 55,424 55,423.92 0.00Total PAYDOWNS SELL 1/26/18 1/31/18 50,000 FNMA BENCHMARK NOTE 2/26/19 296,891.33 2.11% (3,348.85)1.00% 475,000 470,225.25 -5,103.44Total SELL PFM Asset Management LLC 34 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Quarterly Portfolio Transactions Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 1/1/18 1/1/18 180,000.00 NISSAN ABS 2016-C A3INTEREST 1/15/21 49.17 1.18% PFM Asset Management LLC 35 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 1/15/18 1/15/18 75,000.00 US TREASURY NOTESINTEREST 7/31/20 2,153.13 1.62% PFM Asset Management LLC 36 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 1/31/18 1/31/18 125,000.00 US TREASURY NOTESINTEREST 2/15/20 3,953.13 1.37% PFM Asset Management LLC 37 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 2/15/18 2/15/18 70,000.00 JDOT 2018-A A3BUY 4/16/22 (24,998.20) 2.66%2.66% PFM Asset Management LLC 38 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 2/22/18 2/22/18 50,000.00 INTERNATIONAL FINANCE CORPORATION NOTEBUY 3/9/21 (89,932.50) 2.66%2.63% PFM Asset Management LLC 39 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 3/11/18 3/11/18 80,000.00 ALLY ABS 2017-1 A3INTEREST 6/15/21 42.50 1.70% PFM Asset Management LLC 40 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 Portfolio Activity Security DescriptionCUSIPPar ($) Settle Date Trade Date Tran. Type Maturity Date Transact Amt ($)Yield Realized G/L (BV)Coupon 3/15/18 3/15/18 65,000.00 US TREASURY NOTESINTEREST 3/31/21 3,375.00 2.25% TOTALS 25,973.92 (5,103.44) PFM Asset Management LLC 41 of 48 Tab III PFM Asset Management LLC 42 of 48 © 2018 PFM Asset Management LLC For the Quarter Ended March 31, 2018 VILLAGE OF NORTH PALM BEACH Asset Allocation Security Type Amortized Cost (Includes Interest) Allocation Percentage Permitted by Policy In Compliance Florida Prime (SBA)1,529,083.09 6.71%25%YES United States Treasury Securities 3,074,394.19 13.49%100%YES Federal Agency 965,461.31 4.24%75%YES Supranationals 776,225.19 3.41%25%YES Corporate Notes 2,794,261.88 12.26%50%YES Municipals 180,973.35 0.79%25%YES Agency Mortgage-Backed Securities (MBS)18,446.79 0.08%25%YES Asset-Backed Securities 1,372,569.96 6.02%25%YES Certificates of Deposit and Savings Accounts 6,994,648.66 30.69%50%YES Demand Deposit Bank Account - 0.00%100%YES Commercial Paper - 0.00%50%YES Money Market Funds 63,751.64 0.28%50%YES Intergovernmental Pools 5,022,835.05 22.04%50%YES End of month trade-date amortized cost of portfolio holdings, including accrued interest. 0.1% 6.0% 12.3% 4.2% 0.3% 0.8% 13.5% 6.7% 30.7% 22.0% 3.4% 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 43 of 48 © 2018 PFM Asset Management LLC For the Quarter Ended March 31, 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 3,074,394.19 13.49%100%YES Supranatl AFRICAN DEVELOPMENT BANK 234,950.23 1.03%10%YES Supranatl ASIAN DEVELOPMENT BANK 90,323.38 0.40%10%YES Supranatl INTER-AMERICAN DEVELOPMENT BANK 220,775.81 0.97%10%YES Supranatl INTL BANK OF RECONSTRUCTION AND DEV 140,143.47 0.61%10%YES Supranatl INTERNATIONAL FINANCE CORPORATION 90,032.30 0.40%10%YES Muni Bond/Note FLORIDA ST HURRICAN CAT FUND 180,973.35 0.79%5%YES Mny Mkt/Mutual Fnd MONEY MARKET FUND 63,770.78 0.28%33%YES Mbs / Cmo FANNIE MAE 18,446.79 0.08%25%YES Intergovernmental Pools FEITF 5,022,835.05 22.04%50%YES Florida Prime (SBA)Florida Prime (SBA)1,529,083.09 6.71%25%YES Fed Agy Bond/Note FANNIE MAE 365,202.37 1.60%40%YES Fed Agy Bond/Note FEDERAL HOME LOAN BANKS 475,171.25 2.08%40%YES Fed Agy Bond/Note FREDDIE MAC 125,087.69 0.55%40%YES Corporate Note AMERICAN EXPRESS CREDIT CORP 30,195.09 0.13%5%YES Corporate Note AMERICAN HONDA FINANCE 100,199.44 0.44%5%YES Corporate Note APPLE INC 125,467.60 0.55%5%YES Corporate Note BANK OF MONTREAL CHI 100,262.70 0.44%5%YES Corporate Note BANK OF NOVA SCOTIA HOUS 150,916.30 0.66%5%YES Corporate Note BERKSHIRE HATHAWAY INC 20,010.28 0.09%5%YES Corporate Note BP CAPITAL MARKETS PLC 90,770.12 0.40%5%YES Corporate Note CHEVRON CORP 181,053.68 0.79%5%YES Corporate Note GOLDMAN SACHS GROUP INC 35,126.17 0.15%5%YES Corporate Note JOHN DEERE CAPITAL CORP 60,274.17 0.26%5%YES Corporate Note MELLON BANK 140,802.08 0.62%5%YES Corporate Note MICROSOFT CORP 90,141.67 0.40%5%YES Corporate Note PEPSICO, INC 40,209.59 0.18%5%YES Corporate Note ROYAL BANK OF CANADA NY 100,207.94 0.44%5%YES Corporate Note TOYOTA MOTOR CREDIT CORP 110,704.58 0.49%5%YES Corporate Note WESTPAC BANKING CORP 140,883.94 0.62%5%YES Corporate Note AMERICAN EXPRESS CREDIT 55,057.47 0.24%5%YES Corporate Note WALT DISNEY COMPANY/THE 90,446.11 0.40%5%YES Corporate Note TOTAL CAPITAL SA 75,766.62 0.33%5%YES Corporate Note PEPSICO INC 30,180.25 0.13%5%YES Corporate Note INTEL CORP 90,623.44 0.40%5%YES Corporate Note WELLS FARGO BANK NA 151,338.42 0.66%5%YES Corporate Note BRANCH BANKING & TRUST 25,079.59 0.11%5%YES Corporate Note CATERPILLAR FINANCIAL SERVICES CORP 65,045.88 0.29%5%YES Corporate Note CANADIAN IMPERIAL BANK OF COMMERCE 100,102.51 0.44%5%YES Corporate Note VISA INC 50,776.51 0.22%5%YES Corporate Note TORONTO DOMINION BANK 80,008.41 0.35%5%YES 44 of 48 © 2018 PFM Asset Management LLC For the Quarter Ended March 31, 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 JOHNSON & JOHNSON 20,134.12 0.09%5%YES Corporate Note HOME DEPOT INC 45,242.04 0.20%5%YES Corporate Note BANK OF AMERICA CORP 60,748.84 0.27%5%YES Corporate Note HONEYWELL INTERNATIONAL 25,173.34 0.11%5%YES Corporate Note WAL-MART STORES INC 40,312.44 0.18%5%YES Corporate Note PACCAR FINANCIAL CORP 75,302.96 0.33%5%YES Corporate Note UNITED PARCEL SERVICE 55,351.90 0.24%5%YES Corporate Note NATIONAL RURAL UTIL COOP 40,069.74 0.18%5%YES Corporate Note HSBC BANK USA NA 100,275.94 0.44%5%YES CD / Savings Account Wells Fargo 5,431,693.16 23.83%100%YES CD / Savings Account BankUnited 1,041,805.56 4.57%100%YES CD / Savings Account Flagler Bank 521,149.94 2.29%100%YES Asset-Backed Ally Auto Receivables Trust 100,069.78 0.44%5%YES Asset-Backed CARMAX AUTO OWNER TRUST 129,066.34 0.57%5%YES Asset-Backed CNH EQUIPMENT TRUST 120,087.88 0.53%5%YES Asset-Backed FORD CREDIT AUTO OWNER TRUST 60,044.37 0.26%5%YES Asset-Backed HONDA AUTO RECEIVABLES 64,440.17 0.28%5%YES Asset-Backed HYUNDAI AUTO RECEIVABLES TRUST 80,048.15 0.35%5%YES Asset-Backed JOHN DEERE OWNER TRUST 84,506.67 0.37%5%YES Asset-Backed NISSAN AUTO RECEIVABLES 50,023.21 0.22%5%YES Asset-Backed CITIBANK CREDIT CARD ISSUANCE 200,766.21 0.88%5%YES Asset-Backed AMERICAN EXPRESS CREDIT ACCOUN 100,063.25 0.44%5%YES Asset-Backed BANK OF AMERICA CREDIT CARD TR 65,041.13 0.29%5%YES Asset-Backed Toyota Auto Receivables Owner 105,074.61 0.46%5%YES Asset-Backed Honda Auto Receivables Owner T 45,019.45 0.20%5%YES Asset-Backed Nissan Auto Receivables Owner 50,034.60 0.22%5%YES Asset-Backed TOYOTA AUTO RECEIVABLES 48,227.20 0.21%5%YES Asset-Backed CAPITAL ONE MULTI-ASSET EXECUT 70,056.94 0.31%5%YES End of month trade-date amortized cost of portfolio holdings, including accrued interest. 45 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 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 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 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 47 of 48 NORTH PALM BEACH INVESTMENT PORTFOLIO For the Quarter Ended March 31, 2018 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 48 of 48