investment performance review for the quarter ended june ...eagendatoc.brevardschools.org/08-27-2019...

Investment Advisors

213 Market StreetHarrisburg, PA 17101

717.232.2723 717.233.6073 fax

PFM Asset Management LLC

300 South Orange AvenueSuite 1170

Orlando, FL 32801407.648.2208

407.648.1323 fax

Investment Performance Review For the Quarter Ended June 30, 2019

Steven Alexander, CTP, CGFO, CPPT, Managing DirectorRobert Cheddar, CFA, Chief Credit Officer, Managing DirectorD. Scott Stitcher, CFA, DirectorJason Human, Client ManagerSean Gannon, CTP, Senior Analyst

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BREVARD PUBLIC SCHOOLS

For the Quarter Ended June 30, 2019

Source: Bloomberg, as of second quarter 2019. SAAR is seasonally adjusted annualized rate. Orange denotes rolling four-quarter averages.

Market Update

U.S. economic activity experienced considerable growth during the first quarter of 2019.

• The third estimate of U.S. GDP growth remained at 3.1%, which marks a significant bounce-back from the 4th quarter’srevised growth of 2.2%.

Growth is projected to decline in in the remaining quarters of 2019 and into 2020.

• The main causes for this expected decrease in future growth include overall slower global growth and increasing tradetensions between the U.S. and other nations, primarily China.

Economic Growth Bounces Back in the First Quarter

0%

2%

4%

6%

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2015 2016 2017 2018 2019 2020

U.S. Real GDPQoQ, SAAR

Bloomberg Survey of

Economists

3.1%

Rolling 4 quarter average

3.2%

2014

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Market Update

The U.S. economy added 224,000 jobs in June, a strong comeback after a disappointing May. • Average hourly earnings YoY remained at 3.1% in June for a second straight month.

For the year, the economy added an average of 172,000 jobs, underscoring a still healthy labor market.

Following the theme of an overall strong labor market, the unemployment rate remained near its 50-year low at 3.7%.

U.S. Job Growth Remains Strong

Source: Bloomberg, as of June 2019.

0k

100k

200k

300k

400k

Jun '14 Jun '15 Jun '16 Jun '17 Jun '18 Jun '19

Monthly Change in Nonfarm Payrolls

Nonfarm Payrolls 12-Month Moving Average

6.1%

5.3%

4.9%

4.3%4.0%

3.7%

3%

4%

5%

6%

7%

8%

Jun '14 Jun '15 Jun '16 Jun '17 Jun '18 Jun '19

Unemployment Rate

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Market Update

The core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, decelerated to 1.6% in May, notably below the Fed’s 2% target.

Core Inflation Continues to Undershoot the Fed’s 2% Target

Source: Bloomberg, latest data available as of June 30, 2019. Inflation expectations based on yield difference between 5-year Treasury note and 5-year Treasury Inflation Protected Securities (TIPS).

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

May '14 May '15 May '16 May '17 May '18 May '19

Inflation Measures (YoY)

Core CPI

Core PCE

Fed's Long TermInflation Target

0.5%

1.0%

1.5%

2.0%

2.5%

Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Expectations for Average Inflation Rate over Next 5 Years

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Market Update

U.S. Yield Curve Inversion Becomes More Pronounced

The yield curve inversion continued to remain between the 3-month Treasury bill and the 10-year Treasury note that yielded 2.09% and 2.01%, respectively, as of June 30, 2019.

The yield on the 10-year Treasury note has fallen by more than a full percentage point in the past three quarters, which has been the biggest decline over such a period since 2011.

Source: Bloomberg, as of June 30, 2019.

Yield Curve History

Maturity 6/30/2019 3/31/2019 6/30/2018

3-Mo. 2.09% 2.38% 1.91%

6-Mo. 2.09% 2.42% 2.11%

1-Yr. 1.93% 2.39% 2.31%

2-Yr. 1.75% 2.26% 2.53%

3-Yr. 1.71% 2.20% 2.62%

5-Yr. 1.77% 2.23% 2.74%

7-Yr. 1.89% 2.32% 2.82%

10-Yr. 2.01% 2.41% 2.86%

U.S. Treasury Yield Curve

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

3M6M 1Y 2Y 3Y 5Y 10Y

Yiel

d

Maturity

June 30, 2019March 31, 2019June 30, 2018

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Source: Bloomberg, as of June 30, 2019. 6-mo CP yield spread based on A1/P1 rated CP index. Some yields are not available at certain maturities and are extrapolated based on linear growth. Not a specific recommendation.

Market Update

Shorter-term commercial paper and bank certificate of deposit (CP/CD) yield spreads widened slightly during June, while longer-maturities experienced significant tightening. Yields across all maturity ranges continue to fall with the market’s anticipation a rate cut.

Treasuries continue to be relatively attractive versus agency discount notes, especially in the 3- to 11-month maturity range.

Longer Maturity Spreads Tighten

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

Jun

'18

Jul '

18

Aug

'18

Sep

'18

Oct

'18

Nov

'18

Dec

'18

Jan

'19

Feb

'19

Mar

'19

Apr '

19

May

'19

Jun

'19

Yield Spread on 6-month Commercial Paper over T-Bill

1.75%

1.85%

1.95%

2.05%

2.15%

2.25%

2.35%

2.45%

1 2 3 4 5 6 7 8 9 10 11 12

Maturity in Months

Money Market Yield Curves

CP/CD

Treasuries

Agencies

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Market Update

Market Projects Three Rate Cuts by Year End

Source: Federal Reserve and Bloomberg. Individual dots represent each Fed members’ judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end. Fed funds futures as of June 19, 2019.

0%

1%

2%

3%

4%

Fed Participants’ Assessments of ‘Appropriate’ Monetary Policy

Jun-19 FOMC Projections

Jun-19 Median

Fed Funds Futures

2019 2020 2021

Majority of Fed participants expect no change to current

policy in 2019

History of RecentFed Rate Hikes

Dec ’18 2.25 - 2.50%

Sept ’18 2.00 - 2.25%

Jun ’18 1.75 - 2.00%

Mar ’18 1.50 - 1.75%

Dec ’17 1.25 - 1.50%

Jun ’17 1.00 - 1.25%

Mar ’17 0.75 - 1.00%

Dec ’16 0.50 - 0.75%

Dec ’15 0.25 - 0.50%

Longer Term

Market is pricing in 3 rate cuts

by year end 2019

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Executive Summary


The Portfolios are of high credit quality and invested in U.S. Treasury, Federal Agency/GSE, Federal Agency/CMO, CommercialPaper, and Corporate Notes securities.

The Capital and Operating Portfolios continue to provide the District with favorable yield relative to the benchmark. At quarter end, theportfolios had Yields to Maturity at Cost of 2.21% and 2.24%, respectively. All portfolios exceeded the 2.10% Effective Yield of theirbenchmark, the Merrill Lynch 3 Month U.S. Treasury Bill Index.

The Self Insurance and Health Insurance Portfolios’ quarterly total return performances were both level with benchmark return of1.44%. Over the past year, the Self Insurance and Health Insurance portfolios returned 4.04% and 4.05% respectively, compared tothe benchmark performance of 3.96%.

Interest rates plummeted in the second quarter, with yields on intermediate-term maturity (2-5 year) Treasuries falling by about 50basis points (0.50%) to the lowest levels since late 2017. Rates fell in response to slowing global growth expectations, weakness inmanufacturing triggered by renewed trade disputes, muted inflation and expectations for multiple Federal Reserve (Fed) rate cuts inthe second half of the year. Much of the yield curve remains inverted, with longer-term yields lower than short-term yields.

Somewhat counterintuitively, credit-sensitive assets performed strongly during the quarter as yield spreads on corporate bondsnarrowed and U.S. equity markets reached new all-time highs.

We maintained portfolio durations in line with benchmarks, as we have since early in the year, given the backdrop of falling yields,likely Fed rate cuts and continuing uncertainty with regard to the sustainability of the now record-long economic expansion. Despitethe inverted yield curve, maintaining durations in-line with their respective benchmarks was vitally important in the second quarter asthe sharp drop in yields drove strong market value returns across most fixed-income sectors. As a result, longer duration strategiesoutperformed shorter ones by a wide margin.

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BREVARD CNTY SCHOOL BOARD CAPITAL - ST


Portfolio Snapshot

Portfolio Statistics

As of June 30, 2019

$48,000,000

$48,036,382

$47,870,923

$165,459

-

Accrued Interest:

Cash:

Par Value:

Total Market Value:

Security Market Value:

Benchmark Eff. Yield: 2.09%

$47,815,159

2.21%

2.50%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:

Effective Duration: 0.27 Years

Duration to Worst: 0.27 Years

Average Maturity: 0.28 Years

Credit Quality (S&P Ratings)

15.6%

A-1

16.6%

A-1+

67.8%

AA+

0%

20%

40%

60%

80%

100%

0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years

100.0%

0.0% 0.0% 0.0% 0.0% 0.0%

Maturity Distribution

Sector Allocation

15.6%

Commercial

Paper

11.5%

Federal

Agency/GSE

72.9%

U.S.

Treasury


* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.

Account ****0017

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BREVARD CNTY SCHOOL BOARD OPERATING - ST


Portfolio Snapshot


As of June 30, 2019

$49,200,000

$64,435,933

$49,114,150

$199,908

$15,121,875

Accrued Interest:

Cash:

Par Value:

Total Market Value:



$49,079,359

2.24%

2.67%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:





23.1%

A-1

76.9%

AA+

0%

20%

40%

60%

80%

100%


100.0%

0.0% 0.0% 0.0% 0.0% 0.0%


Sector Allocation

23.1%

Commercial

Paper

76.9%

U.S.

Treasury



Account ****0018

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BREVARD COUNTY DISC SALES SURTAX ACCOUNT


Portfolio Snapshot


As of June 30, 2019

$43,630,000

$48,367,570

$43,434,370

$130,239

$4,802,961

Accrued Interest:

Cash:

Par Value:

Total Market Value:



$43,422,279

2.18%

2.42%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:





31.3%

A-1

9.1%

A-1+

59.6%

AA+

0%

20%

40%

60%

80%

100%


95.5%

4.5%0.0% 0.0% 0.0% 0.0%


Sector Allocation

40.4%

Commercial

Paper

59.6%

U.S.

Treasury



Account ****0019

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BREVARD COUNTY FLA SD SELF INSURANCE FD


Portfolio Snapshot


As of June 30, 2019

$15,532,905

$15,755,060

$15,644,646

$88,379

$22,035

Accrued Interest:

Cash:

Par Value:

Total Market Value:


$15,482,135

1.90%

2.34%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:





8.0%

A

3.4%

A-

2.5%

A+

1.6%

AA

2.5%

AA-

82.1%

AA+

0%

10%

20%

30%

40%

50%


9.9%

35.5%

47.9%

6.2%

0.6% 0.0%


Sector Allocation

19.9%

Corporate

4.2%

Federal

Agency/CMO

3.9%

Federal

Agency/GSE

72.0%

U.S.

Treasury



Account ****0010

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BREVARD COUNTY SD HEALTH INSURANCE FUND


Portfolio Snapshot


As of June 30, 2019

$12,877,066

$13,063,508

$12,974,799

$74,671

$14,038

Accrued Interest:

Cash:

Par Value:

Total Market Value:


$12,840,201

1.89%

2.34%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:





7.8%

A

3.5%

A-

2.5%

A+

1.6%

AA

2.3%

AA-

82.3%

AA+

0%

10%

20%

30%

40%

50%


10.3%

35.4%

47.7%

6.0%

0.5% 0.0%


Sector Allocation

19.6%

Corporate

4.1%

Federal

Agency/CMO

4.6%

Federal

Agency/GSE

71.7%

U.S.

Treasury



Account ****0016

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BREVARD COUNTY SCHOOL DISTRICT Asset Allocation

Security TypeAmortized Cost

(Includes Interest)Allocation

PercentagePermitted by

Policy In Compliance

United States Treasury Securities 119,406,148.39 51.16% 100% YESFederal Agency 6,721,759.89 2.88% 80% YESCorporate Notes 5,650,114.92 2.42% 20% YESMunicipals - 0.00% 20% YESAgency Mortgage-Backed Securities (MBS) 1,171,234.17 0.50% 80% YESCertificates of Deposit and Savings Accounts - 0.00% 25% YESCommercial Paper 36,348,530.14 15.57% 35% YESBankers’ Acceptances - 0.00% 35% YESRepurchase Agreements - 0.00% 50% YESMoney Market Funds 19,960,908.70 8.55% 75% YESIntergovernmental Pools 44,152,343.36 18.92% 25% YES

End of month trade-date amortized cost of portfolio holdings, including accrued interest. The combined total of Federal Instrumentalities and Mortgage Backed Securities can not be more than 80%.

0.5%

15.6%

2.4%

2.9%

8.6%

51.2%

18.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agency Mortgage-Backed Securities (MBS)

Commercial Paper

Corporate Notes

Federal Agency

Money Market Funds

United States Treasury Securities

Intergovernmental Pools

2019 PFM Asset Management LLC of 23



Sector Individual Issuer BreakdownAmortized Cost


PercentagePermitted by Policy In Compliance

Us Tsy Bond/Note UNITED STATES TREASURY 119,406,148.39 51.16% 100% YESMny Mkt/Mutual Fnd MONEY MARKET FUND 19,960,908.70 8.55% 25% YESMbs / Cmo FREDDIE MAC 155,269.52 0.07% 40% YESMbs / Cmo FANNIEMAE-ACES 389,738.41 0.17% 40% YESMbs / Cmo FHLMC MULTIFAMILY STRUCTURED P 626,226.24 0.27% 40% YESIntergovernmental Pools FL PALM 44,152,343.36 18.92% 25% YESFed Agy Bond/Note FANNIE MAE 632,699.72 0.27% 40% YESFed Agy Bond/Note FEDERAL HOME LOAN BANKS 413,450.84 0.18% 40% YESFed Agy Bond/Note FREDDIE MAC 5,675,609.33 2.43% 40% YESCorporate Note AMERICAN HONDA FINANCE 270,691.70 0.12% 5% YESCorporate Note APPLE INC 270,623.41 0.12% 5% YESCorporate Note CISCO SYSTEMS 194,791.81 0.08% 5% YESCorporate Note HSBC USA 476,414.43 0.20% 5% YESCorporate Note IBM CORP 236,203.50 0.10% 5% YESCorporate Note JOHN DEERE CAPITAL CORP 225,197.01 0.10% 5% YESCorporate Note MELLON BANK 228,839.69 0.10% 5% YESCorporate Note THE WALT DISNEY CORPORATION 140,589.40 0.06% 5% YESCorporate Note TOYOTA MOTOR CREDIT CORP 352,782.16 0.15% 5% YESCorporate Note WELLS FARGO & COMPANY 279,925.49 0.12% 5% YESCorporate Note AMERICAN EXPRESS CREDIT 151,345.34 0.06% 5% YESCorporate Note EXXON MOBIL CORP 279,733.03 0.12% 5% YESCorporate Note JP MORGAN CHASE & CO 274,113.05 0.12% 5% YESCorporate Note US BANK NA CINCINNATI 282,219.65 0.12% 5% YESCorporate Note CATERPILLAR FINANCIAL SERVICES CORP 201,135.38 0.09% 5% YESCorporate Note BANK OF AMERICA CORP 275,503.06 0.12% 5% YESCorporate Note HONEYWELL INTERNATIONAL 80,233.55 0.03% 5% YESCorporate Note WAL-MART STORES INC 455,848.30 0.20% 5% YESCorporate Note PROCTER & GAMBLE CO/THE 135,425.55 0.06% 5% YESCorporate Note PACCAR FINANCIAL CORP 250,962.94 0.11% 5% YESCorporate Note NATIONAL RURAL UTIL COOP 271,626.00 0.12% 5% YESCorporate Note HERSHEY COMPANY 145,495.01 0.06% 5% YESCorporate Note GENERAL DYNAMICS CORP 170,415.46 0.07% 5% YESCommercial Paper TOYOTA MOTOR CREDIT CORP 3,940,094.44 1.69% 10% YESCommercial Paper BNP PARIBAS NY BRANCH 5,825,912.00 2.50% 10% YESCommercial Paper CREDIT AGRICOLE CIB NY 5,871,008.18 2.52% 10% YESCommercial Paper JP MORGAN SECURITIES LLC 6,465,783.35 2.77% 10% YESCommercial Paper COOPERATIEVE RABOBANK U.A. 2,487,427.08 1.07% 10% YESCommercial Paper MUFG BANK LTD/NY 5,819,788.47 2.49% 10% YESCommercial Paper NATIXIS NY BRANCH 5,938,516.62 2.54% 10% YES




Sector Individual Issuer BreakdownAmortized Cost


PercentagePermitted by Policy In Compliance

End of month trade-date amortized cost of portfolio holdings, including accrued interest. The combined total of Federal Instrumentalities and Mortgage Backed Securities can not be more than 80%.


2019 PFM Asset Management LLC

Issuer Par Value Book Value Market Value Accured Interest Maturity Date Effective Duration Coupon Rate Yield at Cost Yield at Market

FREDDIE MAC 35,000 34,999 34,972 138 7/19/2019 0.053 0.88% 0.96% 2.40%

FREDDIE MAC 5,500,000 5,498,603 5,495,551 21,656 7/19/2019 0.053 0.88% 1.40% 2.40%

UNITED STATES TREASURY 10,800,000 10,790,037 10,792,159 61,943 7/31/2019 0.086 1.38% 2.50% 2.21%


BNP PARIBAS 2,500,000 2,493,600 2,494,265 - 8/2/2019 0.089 0.00% 2.94% 2.51%

JP MORGAN CHASE & CO 1,500,000 1,496,000 1,496,562 - 8/2/2019 0.089 0.00% 3.07% 2.51%



MITSUBISHI UFJ FINANCIAL GROUP INC 700,000 696,980 697,423 - 8/23/2019 0.146 0.00% 3.00% 2.46%

CREDIT AGRICOLE SA 3,000,000 2,986,373 2,988,924 - 8/26/2019 0.154 0.00% 2.99% 2.34%


BNP PARIBAS 3,350,000 3,332,312 3,334,982 - 9/5/2019 0.181 0.00% 2.94% 2.42%

CREDIT AGRICOLE SA 2,900,000 2,884,635 2,887,495 - 9/5/2019 0.182 0.00% 2.95% 2.33%

MITSUBISHI UFJ FINANCIAL GROUP INC 5,150,000 5,122,808 5,126,665 - 9/5/2019 0.181 0.00% 2.94% 2.45%

IBM CORP 130,000 129,991 129,824 675 9/6/2019 0.183 1.63% 1.66% 2.35%

IBM CORP 105,000 104,993 104,858 545 9/6/2019 0.183 1.63% 1.66% 2.35%

RABOBANK NEDERLAND 2,500,000 2,487,427 2,487,858 - 9/10/2019 0.195 0.00% 2.59% 2.44%

JP MORGAN CHASE & CO 5,000,000 4,969,783 4,975,005 - 9/13/2019 0.203 0.00% 3.01% 2.41%



WAL-MART STORES INC 100,000 100,000 99,830 399 10/9/2019 0.273 1.75% 1.75% 2.36%


UNITED STATES TREASURY 5,000,000 4,964,510 4,970,610 - 10/10/2019 0.277 0.00% 2.58% 2.09%

PROCTER & GAMBLE CO 75,000 74,996 74,870 241 10/25/2019 0.317 1.75% 1.77% 2.29%

PROCTER & GAMBLE CO 60,000 59,997 59,896 193 10/25/2019 0.317 1.75% 1.77% 2.29%

HONEYWELL INTERNATIONAL 45,000 44,994 44,921 137 10/30/2019 0.331 1.80% 1.84% 2.32%

HONEYWELL INTERNATIONAL 35,000 34,995 34,938 107 10/30/2019 0.331 1.80% 1.84% 2.32%



AMERICAN HONDA FINANCE 150,000 149,984 149,804 400 11/13/2019 0.366 2.00% 2.03% 2.35%

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Aggregated HoldingsBREVARD PUBLIC SCHOOLS

Aggregate Portfolio Holdings (1/6)


Issuer Par Value Book Value Market Value Accrued Interest Maturity Date Effective Duration Coupon Rate Yield at Cost Yield at Market

AMERICAN HONDA FINANCE 120,000 119,987 119,843 320 11/13/2019 0.366 2.00% 2.03% 2.35%

APPLE INC 150,000 149,986 149,791 360 11/13/2019 0.367 1.80% 1.83% 2.17%

APPLE INC 120,000 119,989 119,833 288 11/13/2019 0.367 1.80% 1.83% 2.17%


UNITED STATES TREASURY 3,000,000 2,966,572 2,973,669 - 12/5/2019 0.429 0.00% 2.62% 2.02%

NATIXIS NY BRANCH 6,000,000 5,938,517 5,936,220 - 12/18/2019 0.463 0.00% 2.19% 2.26%





HSBC HOLDINGS PLC 125,000 124,432 125,005 947 3/5/2020 0.667 2.35% 3.03% 2.34%

HSBC HOLDINGS PLC 135,000 134,373 135,005 1,022 3/5/2020 0.667 2.35% 3.05% 2.34%



EXXON MOBIL CORP 75,000 75,093 74,873 458 3/6/2020 0.573 1.91% 1.71% 2.16%

EXXON MOBIL CORP 65,000 65,081 64,890 397 3/6/2020 0.573 1.91% 1.71% 2.16%

TOYOTA MOTOR CORP 200,000 200,288 199,902 1,302 3/12/2020 0.687 2.15% 1.94% 2.22%

TOYOTA MOTOR CORP 150,000 150,216 149,926 976 3/12/2020 0.687 2.15% 1.94% 2.22%

TOYOTA MOTOR CORP 4,000,000 3,940,094 3,934,948 - 3/20/2020 0.715 0.00% 2.08% 2.25%




FREDDIE MAC 120,000 119,888 119,391 325 4/20/2020 0.794 1.38% 1.49% 2.01%

GENERAL DYNAMICS CORP 95,000 94,853 95,471 379 5/11/2020 0.847 2.88% 3.06% 2.29%

GENERAL DYNAMICS CORP 75,000 74,884 75,372 299 5/11/2020 0.847 2.88% 3.06% 2.29%

HERSHEY COMPANY 80,000 79,977 80,409 296 5/15/2020 0.858 2.90% 2.93% 2.30%

HERSHEY COMPANY 65,000 64,981 65,332 241 5/15/2020 0.858 2.90% 2.93% 2.30%



UNITED STATES TREASURY 720,000 720,872 717,638 32 6/30/2020 0.986 1.63% 1.50% 1.96%

of 23




Aggregated Holdings




WELLS FARGO & COMPANY 150,000 150,964 150,493 1,723 7/22/2020 1.030 2.60% 1.98% 2.28%

WELLS FARGO & COMPANY 125,000 125,803 125,411 1,435 7/22/2020 1.030 2.60% 1.98% 2.28%

UNITED STATES TREASURY 530,000 530,134 528,240 3,593 7/31/2020 1.063 1.63% 1.60% 1.93%




THE BANK OF NEW YORK MELLON CORPORATION 125,000 125,923 125,647 1,210 8/17/2020 0.989 2.60% 1.90% 2.13%

THE BANK OF NEW YORK MELLON CORPORATION 100,000 100,739 100,518 968 8/17/2020 0.989 2.60% 1.90% 2.13%

CATERPILLAR INC 110,000 109,963 109,613 661 9/4/2020 1.152 1.85% 1.88% 2.15%

CATERPILLAR INC 90,000 89,970 89,683 541 9/4/2020 1.152 1.85% 1.88% 2.15%

BANK OF AMERICA CO 150,000 149,487 150,590 788 10/19/2020 1.269 2.63% 2.90% 2.32%

BANK OF AMERICA CO 125,000 124,572 125,492 656 10/19/2020 1.269 2.63% 2.90% 2.32%









THE WALT DISNEY CORPORATION 75,000 74,650 75,278 666 2/12/2021 1.567 2.30% 2.60% 2.06%

THE WALT DISNEY CORPORATION 65,000 64,696 65,241 577 2/12/2021 1.567 2.30% 2.60% 2.06%



EXXON MOBIL CORP 75,000 73,750 75,208 556 3/1/2021 1.516 2.22% 3.26% 2.05%

EXXON MOBIL CORP 65,000 63,917 65,180 481 3/1/2021 1.516 2.22% 3.26% 2.05%

JP MORGAN CHASE & CO 150,000 148,241 150,524 1,275 3/1/2021 1.509 2.55% 3.28% 2.33%

JP MORGAN CHASE & CO 125,000 123,534 125,436 1,063 3/1/2021 1.509 2.55% 3.28% 2.33%

NATIONAL RURAL UTILITIES CO FINANCE CORP 150,000 149,623 151,776 1,281 3/15/2021 1.648 2.90% 3.05% 2.19%

of 23




Aggregated Holdings



NATIONAL RURAL UTILITIES CO FINANCE CORP 120,000 119,698 121,421 1,025 3/15/2021 1.648 2.90% 3.05% 2.19%









PACCAR FINANCIAL CORP 135,000 134,927 137,257 593 5/10/2021 1.797 1.04% 3.13% 2.18%

PACCAR FINANCIAL CORP 115,000 114,938 116,923 505 5/10/2021 1.797 3.10% 3.13% 2.18%



DEERE & COMPANY 125,000 124,918 125,343 192 6/7/2021 1.882 7.94% 2.33% 2.15%

DEERE & COMPANY 100,000 99,934 100,274 153 6/7/2021 1.882 2.30% 2.33% 2.15%











CISCO SYSTEMS INC 110,000 106,565 109,354 571 9/20/2021 2.072 1.85% 3.32% 2.12%

CISCO SYSTEMS INC 90,000 87,189 89,472 467 9/20/2021 2.072 1.85% 3.32% 2.12%

FEDERAL HOME LOAN BANKS 220,000 220,000 220,300 1,852 9/20/2021 0.370 3.00% 3.00% 2.93%

FEDERAL HOME LOAN BANKS 190,000 190,000 190,259 1,599 9/20/2021 0.370 3.00% 3.00% 2.93%

FANNIE MAE 85,028 86,127 86,698 - 9/25/2021 1.660 3.56% 2.27% 1.65%

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Aggregated Holdings



FANNIE MAE 73,937 74,893 75,390 - 9/25/2021 1.660 3.56% 2.27% 1.65%





FANNIE MAE 150,000 149,908 153,115 1,859 1/11/2022 2.415 2.63% 2.65% 1.78%

FANNIE MAE 200,000 200,069 204,153 2,479 1/11/2022 2.415 2.63% 2.61% 1.78%

FANNIE MAE 125,000 124,924 127,596 1,549 1/11/2022 2.415 2.63% 2.65% 1.78%

FANNIE MAE 150,000 150,051 153,115 1,859 1/11/2022 2.415 2.63% 2.61% 1.78%





UNITED STATES TREASURY 1,000,000 984,684 1,003,516 7,821 1/31/2022 2.495 1.88% 2.49% 1.74%




AMERICAN EXPRESS CO 80,000 80,010 80,855 708 3/3/2022 2.445 2.70% 2.70% 2.29%

AMERICAN EXPRESS CO 70,000 70,008 70,748 620 3/3/2022 2.445 2.70% 2.70% 2.29%


US BANCORP 150,000 152,613 153,386 1,325 3/15/2022 2.465 3.00% 2.33% 2.14%

US BANCORP 125,000 127,177 127,822 1,104 3/15/2022 2.465 3.00% 2.33% 2.14%

FREDDIE MAC 150,000 148,166 150,663 - 3/25/2022 2.450 2.27% 3.03% 1.85%

FREDDIE MAC 120,000 118,533 120,530 - 3/25/2022 2.450 2.27% 3.03% 1.85%






FANNIE MAE 687,689 687,689 687,689 - 10/1/2022 1.607 8.21% 7.88% 8.01%

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Aggregated Holdings



FANNIE MAE 125,000 126,543 126,427 - 11/25/2022 3.150 2.51% 1.70% 1.75%

FANNIE MAE 100,000 101,234 101,141 - 11/25/2022 3.150 2.51% 1.70% 1.75%

FREDDIE MAC 155,000 156,356 157,261 - 11/25/2022 3.140 2.51% 1.92% 1.57%

FREDDIE MAC 125,000 126,094 126,823 - 11/25/2022 3.140 2.51% 1.92% 1.57%

FREDDIE MAC 39,388 39,213 39,739 - 2/25/2023 1.800 2.67% 2.81% 2.09%

FREDDIE MAC 36,762 36,599 37,090 - 2/25/2023 1.800 2.67% 2.81% 2.09%

FREDDIE MAC 88,490 88,489 89,980 - 7/1/2023 1.710 3.20% 3.11% 2.28%

FREDDIE MAC 66,367 66,367 67,485 - 7/1/2023 1.710 3.20% 3.11% 2.28%

FANNIE MAE 24,580 24,580 24,580 - 6/1/2026 0.321 4.89% 5.04% 3.56%

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 11,488 11,488 11,488 - 2/1/2027 0.750 7.75% 5.40% 7.43%

FREDDIE MAC 26,982 27,344 27,344 - 6/1/2027 0.562 8.31% 4.14% 6.23%

FANNIE MAE 161,727 164,355 164,355 - 8/1/2027 0.191 8.57% -3.93% -2.92%

FANNIE MAE 21,248 21,248 21,248 - 8/1/2027 0.589 4.37% 4.40% 2.21%


FREDDIE MAC 12,197 12,150 12,150 - 1/1/2028 0.841 6.35% 6.42% 6.43%

FANNIE MAE 222,053 224,343 224,343 - 6/1/2028 3.951 7.99% 7.27% 7.59%

FANNIE MAE 3,182 3,188 3,188 - 9/1/2028 0.940 5.07% 4.87% 3.66%

FANNIE MAE 279,253 281,871 281,871 - 9/1/2028 0.373 8.48% 2.27% 4.45%








FANNIE MAE 422,628 424,741 424,741 - 2/1/2030 0.281 7.80% 2.93% 4.17%

FANNIE MAE 52,156 52,123 52,123 - 3/1/2030 0.415 3.01% 5.59% 2.81%

FANNIE MAE 20,277 20,277 20,277 - 4/1/2030 0.465 4.00% 5.91% 3.78%

FREDDIE MAC 55,447 55,447 55,447 - 6/1/2030 0.904 6.21% 5.73% 5.68%



Totals / Weighted Average 171,607,976.36 171,016,912.78 171,417,585.25 656,034.28 0.575 1.33% 2.53% 2.20%

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Aggregated Holdings


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

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.



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