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HomeMy WebLinkAbout6-30-15 PFM rptCi t y o f S a n L u i s O b i s p o In v e s t m e n t R e p o r t Pe r i o d E n d i n g J u n e 3 0 , 2 0 1 5 PF M A s s e t M a n a g e m e n t L L C 50 C a l i f o r n i a S t r e e t , S u i t e 2 3 0 0 Sa n F r a n c i s c o , C A 9 4 1 1 1 (4 1 5 ) 9 8 2 - 5 5 4 4 © P F M A s s e t M a n a g e m e n t L L C • Se c t i o n I . E c o n o m i c U p d a t e • Se c t i o n I I . A c c o u n t P r o f i l e • Se c t i o n I I I . C o n s o l i d a t e d I n f o r m a t i o n • Se c t i o n I V . P o r t f o l i o H o l d i n g s • Se c t i o n V . M o n t h l y T r a n s a c t i o n s Ta b l e o f C o n t e n t s Se c t i o n I . E c o n o m i c U p d a t e © 2015 PFM Asset Management LLC Summary • Throughout the quarter, improving U.S. economic conditions contrasted with global economic uncertainty, particularly the deteriorating negotiations between Greece and its international creditors, which came to a vital impasse at the end of the quarter. • Market participants continued to weigh the impact that adverse global economic conditions would have on the interest rate setting policies of the Federal Open Market Committee (FOMC). Economic Snapshot • For the first quarter of 2015, gross domestic product (GDP) declined by 0.2%. While estimates initially reflected a larger decline, increases in consumer spending and inventories contributed to the upward revision. • The U.S. labor market continued to improve, as the unemployment rate fell from 5.5% in March to 5.3% in June. While robust headline job creation continued, some of the underlying metrics related to employment—particularly wage growth—were weak. • The housing market strengthened, as reflected by improvements in the pace of pending home sales, building permits, new-home sales, and housing starts. • Greek-related tensions grew as the troubled nation missed a payment of 1.6 billion euros to the International Monetary Fund (IMF), and Greek voters overwhelmingly rejected austerity measures demanded by creditors as a condition for further financial assistance. These actions leave open the possibility that Greece would abandon the euro and even leave the eurozone. Interest Rates • The FOMC kept the federal funds target rate unchanged for the quarter. While the FOMC’s statement left open the possibility of an interest rate increase in the latter half of 2015, this policy decision will depend on labor market conditions and inflation expectations. • The timing for a potential interest rate hike became more uncertain at the end of the quarter due to the potential for the Greek debt crisis to affect the overall global economy. • Treasury yields reacted differently across the curve. Yields for short maturities rose only modestly (two- and three-year Treasuries ended the quarter up 0.09% and 0.12%, respectively) while yields for intermediate and longer maturities had sizeable increases (five- and 10-year Treasuries ended the quarter higher by 0.28% and 0.43%, respectively). Sector Performance • Benchmark Treasury indices for shorter-maturity securities ended the quarter slightly positive, as more than sufficient income was generated to overcome the limited decrease in market value that resulted from the rise in yields. Longer maturities did not perform as well because they had significantly larger rate increases. • Yield spreads for Federal Agency securities fluctuated within their historically low ranges for the quarter; as a result, the sector’s performance was relatively flat when compared to Treasuries. • Corporate securities underperformed government issues as yield spreads widened throughout the quarter; bonds with higher credit quality underperformed the most. • Within the mortgage-backed securities (MBS) sector, structure and coupon were the major determinants of performance for the quarter. Higher-coupon structures were the strongest performers on both an absolute return and relative return basis (compared to similar-duration Treasuries). • Asset-backed securities (ABS) were among the stronger-performing sectors, as their superior income and limited sensitivity to changes in interest rates fared well in what was a volatile market environment. Second Quarter 2015 © 2015 PFM Asset Management LLC Labor Market Mar 2015Jun 2014 Unemployment Rate Jun'15 5.3%5.5%6.1% Change In Non-Farm Payrolls Jun'15223,000119,000286,000 Average Hourly Earnings (YoY)Jun'15 2.0%2.1%2.0% Personal Income (YoY )May'15 4.4%4.0%3.7% Initial Jobless Claims (week)7/2/15 281,000267,000313,000 Growth Real GDP (QoQ SAAR)2015Q1 -0.2%2.2%-2.1% GDP Personal Cons umption (QoQ SAAR)2015Q1 2.1%4.4%1.2% Retail Sales (YoY)May'15 2.7%2.1%4.3% ISM Manufacturing Survey (month)Jun'15 53.5 51.5 55.7 Existing Home Sales SAAR (month)May'155.35 mil.5.21 mil.5.01 mil. Inflation / Prices Personal Consumption Expenditures (YoY)May'15 0.2%0.3%1.6% Consumer Pric e Index (YoY)May'15 0.0%-0.1%2.1% Consumer Pric e Index Core (YoY)May'15 1.7%1.8%1.9% Crude Oil Futures (WTI, per barrel)Jun 30 $59.47$47.60$105.37 Gold Futures (oz.)Jun 30 $1,172$1,183$1,322 1. Data as of Fourth Quarter 2014 2. Data as of First Quarter 2014 Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil Latest 0 50K 100K 150K 200K 250K 300K 350K 400K 2% 4% 6% 8% 10% 6/30/12 12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate -4% -2% 0% 2% 4% 6% 3/31/12 9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 Real GDP (QoQ) -1% 0% 1% 2% 3% 5/31/12 11/30/12 5/31/13 11/30/13 5/31/14 11/30/14 5/31/15 Consumer Price Index CPI (YoY)Core CPI (YoY) 2 2 1 1 Economic Snapshot Source: Bloomberg © 2015 PFM Asset Management LLC Source: Bloomberg Interest Rate Overview U.S. Treasury Note Yields U.S. Treasury Yield Curve U.S. Treasury Yields Yield Curves as of 6/30/15 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 6/30/14 12/31/14 6/30/15 Yi e l d 2-Year 5-Year 10-Year 0% 1% 2% 3% 4% 3- m o 1- y r 2- y r 3- y r 5- y r 7- y r 10 - y r 30 - y r Yi e l d Maturity June 30, 2015 March 31, 2015 June 30, 2014 Maturity 6/30/153/31/15 Change over Quarter 6/30/14 Change over Year 3-month0.01%0.02%(0.01%)0.02%(0.01%) 1-year0.27%0.23%0.04%0.10%0.17% 2-year0.65%0.56%0.09%0.46%0.19% 5-year1.65%1.37%0.28%1.63%0.02% 10-year2.35%1.92%0.43%2.53%(0.18%) 30-year3.12%2.54%0.58%3.36%(0.24%) 0% 1% 2% 3% 4% 5% 3- m o 1- y r 2- y r 3- y r 5- y r 7- y r 10 - y r 25 - y r 30 - y r Yi e l d Maturity U.S. Treasury Federal Agency Industrial Corporates, A Rated © 2015 PFM Asset Management LLC Source: BofA Merrill Lynch Indices Duration Yield 3 Month 1 Year3 Years 1-3 Year Indices U.S. Treasury 1.870.63%0.15%0.88%0.66% Federal Agency 1.740.76%0.16%0.99%0.73% U.S. Corporates, A-AAA rated 2.051.45%0.08%1.02%1.76% Agency MBS (0 to 3 years)1.931.53%(0.07%)0.62%0.96% Municipals 1.790.86%0.01%0.40%0.80% 1-5 Year Indices U.S. Treasury 2.700.93%0.02%1.38%0.83% Federal Agency 2.180.96%0.09%1.31%0.94% U.S. Corporates, A-AAA rated 2.811.80%(0.13%)1.45%2.36% Agency MBS (0 to 5 years)3.342.10%(0.46%)1.58%1.68% Municipals 2.541.13%(0.01%)0.62%1.13% Master Indices (Maturities 1 Year or Greater) U.S. Treasury 6.041.56%(1.84%)2.59%0.94% Federal Agency 3.711.41%(0.66%)2.11%1.28% U.S. Corporates, A-AAA rated 6.682.89%(2.59%)1.75%3.04% Agency MBS (0 to 30 years)4.652.60%(0.79%)2.16%1.87% Municipals 6.932.63%(0.97%)3.10%3.21% Returns for periods greater than one year are annualized Returns for Periods ended 6/30/2015As of 6/30/2015 BofA Merrill Lynch Index Returns Se c t i o n I I . A c c o u n t P r o f i l e In v e s t m e n t O b j e c t i v e s – T h e i n v e s t m e n t o b j e c t i v e s o f t h e C i t y o f S a n L u i s O b is p o a r e f i r s t , t o p r o v i d e s a f e t y o f p r i n c i p a l t o en s u r e t h e p r e s e r v a t i o n o f c a p i t a l i n t h e o v e r a l l p o r t f o l i o ; s e c o n d , t o pr o v i d e s u f f i c i e n t l i q u i d i t y t o me e t a l l o p e r a t i n g r e q u i r e m e n t s ; a n d t h i r d , t o e a r n a c o m m e n s u r a t e r a t e o f r e t u r n c o n s i s t e n t w i t h th e c o n s t r a i n t s i m p o s e d b y t h e sa f e t y a n d l i q u i d i t y o b j e c t i v e s . Pe r f o r m a n c e O b j e c t i v e s – T h e p e r f o r m a n c e o b j e c t i v e f o r t h e p o r t f o l i o i s t o e a r n a t o t a l r a t e o f r e t u r n o v e r a m a r k e t c y c l e th a t e q u a l s o r e x c e e d s t h e m a r k e t i n d e x , t h e Bo f A M e r r i l l L y n c h I n d e x o f 0 - 5 Y e a r T r e a s u r y se c u r i t i e s . St r a t e g y – I n o r d e r t o a c h i e v e t h i s o b j e c t i v e , t h e p o r t f o l i o in v e s t s i n h i g h - q u a l i t y m o n e y m a r k e t i n s t r u m e n t s , U. S . T r e a s u r y s e c u r i t i e s , F e d e r a l A g e n c y s e c u r i t i es , a n d h i g h - g r a d e c o r p o r a t e s e c u r i t i e s , w i t h a ma x i m u m m a t u r i t y o f f i v e y e a r s . Ob j e c t i v e s 5 © P F M A s s e t M a n a g e m e n t L L C Ca t e g o r y S t a n d a r d C o m m e n t Tr e a s u r y O b l i g a t i o n s 5 y e a r m a x i m u m m a t u r i t y C o m p l i e s Go v e r n m e n t S p o n s o r e d E n t e r p r i s e ( G S E ) Se c u r i t i e s 5 y e a r m a x i m u m m a t u r i t y , A A A b y S & P o r M o o d y ’ s C o m p l i e s Co r p o r a t e N o t e s 5 y e a r m a x i m u m m a t u r i t y At l e a s t o n e “ A A ” r a t i n g 30 % m a x i m u m , 5 % p e r i s s u e r Complies Lo c a l G o v e r n m e n t I n v e s t m e n t P o o l ( L A I F ) U p t o m a x i m u m p e r m i t t e d b y S t a t e L a w C o m p l i e s Ne g o t i a b l e C e r t i f i c a t e s o f D ep o s i t 5 y e a r m a x i m u m m a t u r i t y 30 % m a x i m u m , 5 % p e r i s s u e r Complies Co l l a t e r a l i z e d B a n k D e p o s i t s 5 % p e r i s s u e r C o m p l i e s Mo n e y M a r k e t M u t u a l F u n d s H i g h e s t r a t i n g c a t e g o r y b y 2 N R S R O ’ s 20 % m a x i m u m , 1 0 % p e r i s s u e r Complies % m a t u r i n g i n l e s s t h a n 9 0 d a y s 5 % m i n i m u m C o m p l i e s Ma x i m u m m a t u r i t y o f c o r po r a t e 5 y e a r s C o m p l i e s Ma x i m u m m a t u r i t y 1 0 y e a r s ; 1 0 % m a xi m u m o f p o r t f o l i o i n T r e a s u r y a n d GS E o b l i g a t i o n s w i t h m a t u r i t y > 5 y e a r s Complies Co m p l i a n c e 6 © P F M A s s e t M a n a g e m e n t L L C • Po r t f o l i o C o m p l i e s w i t h C a l i f o r n i a G o v e r n m e n t C o d e a n d t h e C i t y o f S a n L u i s O b i s p o ’ s I n v e s t m e n t P o l i c y i n r e g a r d s t o cr e d i t q u a l i t y , a s w e l l a s m a t u r i t y , s e c t o r , a n d i s s u e r l i m i t s . Ad d i t i o n a l l y , n o n e o f t h e C i t y ’ s f u n d s a r e i n v e s t e d i n a n y se c u r i t i e s p r o h i b i t e d b y C o d e . Ci t y o f S a n L u i s O b i s p o Po r t f o l i o C o m p l i a n c e * – P F M M a n a g e d *A p p l i e s t o a g g r e g a t e p o r t f o l i o . Ci t y o f S a n L u i s O b i s p o – P F M M a n a g e d Po r t f o l i o C h a r a c t e r i s t i c s 6/ 3 0 / 1 5 3 / 3 1 / 1 5 Be n c h m a r k P o r t f o l i o P o r t f o l i o Av e r a g e M a t u r i t y ( y r s . ) 2. 2 5 2 . 2 1 2 . 1 6 Ef f e c t i v e D u r a t i o n * 2. 1 8 2 . 1 5 2 . 1 2 Av e r a g e P u r c h a s e Y i e l d N/ A 1 . 1 2 % 1 . 1 1 % Av e r a g e M a r k e t Y i e l d 0. 7 5 % 0 . 8 4 % 0 . 7 0 % Av e r a g e Q u a l i t y AA + A A + / A a a A A + / A a a To t a l M a r k e t V a l u e 45 , 6 2 2 , 7 1 8 4 5 , 6 3 3 , 3 4 3 Ac c o u n t P r o f i l e 7 © P F M A s s e t M a n a g e m e n t L L C • Th e C i t y o f S a n L u i s O b i s p o ’ s c u r r e n t b e n c h m a r k i s t h e B a n k o f A m e r i c a M e r r i l l L y n c h ( B A M L ) 0 - 5 Y e a r U. S . T r e a s u r y I n d e x . *E f f e c t i v e d u r a t i o n u s e d i n p l a c e o f m o d i f i ed d u r a t i o n . E f f e c t i v e d u r a t i o n i s t h e a p p r ox i m a t e p e r c e n t a g e c h a n g e i n p r i c e , f o r e a ch 1 % c h a n g e i n i n t e r e s t r a t e s . M o d i f i e d d u r a t i o n i s a s i m i l a r r i s k me a s u r e , b u t i t i g n o r e s h o w c h a n g e s i n r a t e s w i l l i m p a c t c a s h fl o w s o n b o n d s w i t h e m b e d d e d o p t i o n s s u c h a s c a l l a b l e n o t e s , M B S , o r A B S . E f f e c t i v e d u r a t i o n t a k e s i n t o a c c o u n t t h e i m p a c t t h a t ch a n g i n g i n t e r e s t r a t e s h a s o n c a s h f l o w s ( i . e . i f i n t e r e s t ra t e s f a l l a n d a c a l l a b l e b o n d i s m o r e l i k e l y t o b e c a l l e d p r i o r t o i t s f i n a l m a t u r i t y , t h e e f f e c t i v e d u r a t i o n w i l l d e c r e a s e ) . Se c t o r D i s t r i b u t i o n 8 © P F M A s s e t M a n a g e m e n t L L C Ju n e 3 0 , 2 0 1 5 M a r c h 3 1 , 2 0 1 5 U. S . T r e a s u r y $1 4 , 2 7 0 , 5 7 1 31 % Fe d e r a l Ag e n c y $2 3 , 9 2 8 , 0 6 2 53 % Corporate $7,018,227 15%Money Market Fund $416,483 1% Ci t y o f S a n L u i s O b i s p o Se c t o r D i s t r i b u t i o n – P F M M a n a g e d *S e c t o r d i s t r i b u t i o n i n c l u d e s m a r k e t v a l u e a n d e x c l u d e s a c c r u e d i n t e r e s t . U. S . T r e a s u r y $1 4 , 2 0 0 , 2 4 0 31 % Fe d e r a l Ag e n c y $2 4 , 6 5 6 , 5 9 5 54 % Co r p o r a t e $6 , 6 9 1 , 1 9 9 15 % Mo n e y M a r k e t Fu n d $7 4 , 6 8 4 <1 % Is s u e r s 9 © P F M A s s e t M a n a g e m e n t L L C Is s u e r N a m e I n v e s t m e n t T y p e % P o r t f o l i o U. S . T r e a s u r y U . S . T r e a s u r y 3 1 . 1 3 % FN M A F e d e r a l A g e n c y 1 9 . 1 4 % FH L M C F e d e r a l A g e n c y 1 8 . 4 6 % FF C B F e d e r a l A g e n c y 8 . 3 6 % FH L B F e d e r a l A g e n c y 8 . 0 8 % Mi c r o s o f t C o r p C o r p o r a t e N o t e 2 . 1 9 % Pr o c t e r & G a m b l e C o r p o r a t e N o t e 2 . 0 2 % IB M C o r p o r a t e N o t e 1 . 6 3 % Be r k s h i r e H a t h a w a y Co r p o r a t e N o t e 1 . 5 5 % Ge n e r a l E l e c t r i c C o rp o r a t e N o t e 1 . 5 4 % Wa l - M a r t S t o r e s C o r p o r a t e N o t e 1 . 5 3 % Ap p l e I n c C o r p o r a t e N o t e 1 . 5 3 % Jo h n s o n & J o h n s o n C o r p o r a t e N o t e 1 . 5 0 % Go o g l e I n c C o r p o r a t e N o t e 1 . 1 6 % Dr e y f u s P r i m e C a s h M a n a g e m e n t F u n d M o n e y M a r k e t F u n d 0 . 1 6 % To t a l 10 0 . 0 0 % As o f J u n e 3 0 , 2 0 1 5 Ci t y o f S a n L u i s O b i s p o Is s u e r D i s t r i b u t i o n – P F M M a n a g e d Qu a l i t y D i s t r i b u t i o n 10 © P F M A s s e t M a n a g e m e n t L L C 0% 20 % 40 % 60 % 80 % 10 0 % 12 0 % AA A A A A < A N R 6/30/2015 3/31/2015 AA A A A A < A N R 6/ 3 0 / 2 0 1 5 3. 9 % 9 6 . 1 % 0 . 0 % 0 . 0 % 0 . 0 % 3/ 3 1 / 2 0 1 5 3. 8 % 9 6 . 2 % 0 . 0 % 0 . 0 % 0 . 0 % Ci t y o f S a n L u i s O b i s p o Cr e d i t Q u a l i t y – P F M M a n a g e d Ju n e 3 0 , 2 0 1 5 v s . M a r c h 3 1 , 2 0 1 5 Ra t i n g s b y S t a n d a r d & P o o r ’ s Du r a t i o n D i s t r i b u t i o n 11 © P F M A s s e t M a n a g e m e n t L L C 0%5% 10 % 15 % 20 % 25 % 30 % 0 - 0 . 2 5 0 . 2 5 - 0 . 5 0 0 . 5 0 - 1 . 0 0 1 - 2 2 - 3 3 - 4 4 - 5 O v e r 5 Portfolio Benchmark 0 – 0 . 2 5 0 . 2 5 – 0 . 5 0 . 5 0 – 1 1 - 2 2 - 3 3 - 4 4 - 5 O v e r 5 Po r t f o l i o 3. 5 % 6 . 0 % 1 9 . 4 % 2 3 . 2 % 1 8 . 6 % 1 6 . 9 % 1 2 . 4 % 0 . 0 % Be n c h m a r k 6. 6 % 4 . 1 % 1 3 . 7 % 2 5 . 1 % 2 0 . 1 % 1 7 . 4 % 1 3 . 0 % 0 . 0 % Ci t y o f S a n L u i s O b i s p o Po r t f o l i o E f f e c t i v e D u r a t i o n v s . B e n c h m a r k – P F M M a n a g e d Be n c h m a r k i s t h e B a n k o f A m e r i c a M e r r i l l Ly n c h ( B A M L ) 0 - 5 Y e a r U . S . T r e a s u r y I n d e x As o f D e c e m b e r 3 1 , 2 0 1 4 In v e s t m e n t P e r f o r m a n c e 12 © P F M A s s e t M a n a g e m e n t L L C 3 Mo n t h s 3  Mo n t h s  An n u a l i z e d 6  Mo n t h s 6  Months Annualized Ci t y  of  Sa n L u i s  Ob i s p o 0. 0 0 % ‐0. 0 1 % 0 . 6 5 % 1 . 3 2 % 0‐5 Yr . T r e a s u r y  In d e x 0. 0 3 % 0 . 1 3 % 0 . 7 7 % 1 . 5 6 % Ci t y o f S a n L u i s O b i s p o T o t a l R e t u r n Pe r i o d E n d i n g J u n e 3 0 , 2 0 1 5 To t a l R a t e o f R e t u r n * -0 . 2 0 % 0. 0 0 % 0. 2 0 % 0. 4 0 % 0. 6 0 % 0. 8 0 % 1. 0 0 % 1. 2 0 % 1. 4 0 % 1. 6 0 % 1. 8 0 % 3 M o n t h s 3 M o n t h s A nn u a l i z e d 6 M o n t h s 6 M o n t h s A n n u a l i z e d Ci t y o f S a n L u i s O b i s p o 0- 5 Y r . T r e a s u r y I n d e x • Pe r f o r m a n c e o n t r a d e - d a t e b a s i s , g r o s s ( i . e . , b e f o r e f e e s ) i n a c c o r da n c e w i t h t h e C F A I n s t i t u t e ’ s G l o b a l I n v e s t m e n t P e r f o r m a n c e S t a n d a r d s ( G I P S ) . • Pe r f o r m a n c e n u m b e r s f o r p e r i o d s o n e y e a r a n d gr e a t e r a r e p r e s e n t e d o n a n a n n u a l i z e d b a s i s . • Me r r i l l L y n c h I n d i c e s p r o v i d e d by B l o o m b e r g F i n a n c i a l M a r k e t s . Ci t y o f S a n L u i s O b i s p o - I n t e r n a l Po r t f o l i o C h a r a c t e r i s t i c s 6/ 3 0 / 1 5 3 / 3 1 / 1 5 Po r t f o l i o P o r t f o l i o Ave r a g e M a t u r i t y ( y r s . ) 0. 0 2 0 . 0 3 Ef f e c t i v e D u r a t i o n * 0. 0 2 0 . 0 3 Ave r a g e P u r c h a s e Y i e l d 0. 3 2 % 0 . 3 2 % Ave r a g e M a r k e t Y i e l d 0. 1 5 % 0 . 1 5 % Ave r a g e Q u a l i t y AA + / A a a A A + / A a a To t a l M a r k e t V a l u e 55 , 5 7 5 , 1 5 2 5 4 , 4 3 4 , 5 8 1 Ac c o u n t P r o f i l e 13 © P F M A s s e t M a n a g e m e n t L L C *E f f e c t i v e d u r a t i o n u s e d i n p l a c e o f m o d i f i ed d u r a t i o n . E f f e c t i v e d u r a t i o n i s t h e a p p r ox i m a t e p e r c e n t a g e c h a n g e i n p r i c e , f o r e a ch 1 % c h a n g e i n i n t e r e s t r a t e s . M o d i f i e d d u r a t i o n i s a s i m i l a r r i s k me a s u r e , b u t i t i g n o r e s h o w c h a n g e s i n r a t e s w i l l i m p a c t c a s h fl o w s o n b o n d s w i t h e m b e d d e d o p t i o n s s u c h a s c a l l a b l e n o t e s , M B S , o r A B S . E f f e c t i v e d u r a t i o n t a k e s i n t o a c c o u n t t h e i m p a c t t h a t ch a n g i n g i n t e r e s t r a t e s h a s o n c a s h f l o w s ( i . e . i f i n t e r e s t ra t e s f a l l a n d a c a l l a b l e b o n d i s m o r e l i k e l y t o b e c a l l e d p r i o r t o i t s f i n a l m a t u r i t y , t h e e f f e c t i v e d u r a t i o n w i l l d e c r e a s e ) . Se c t o r D i s t r i b u t i o n 14 © P F M A s s e t M a n a g e m e n t L L C LA I F $2 7 , 2 5 6 , 9 9 4 49 % U. S . T r e a s u r y $1 , 0 5 5 , 7 8 0 2% Mo n e y M a r k e t Ra t e A c c o u n t $1 , 0 0 8 , 4 6 8 2% Ne g o t i a b l e CD $1 , 0 0 0 , 0 0 0 2% Ca s h $2 5 , 2 5 3 , 9 0 9 45 % Ju n e 3 0 , 2 0 1 5 M a r c h 3 1 , 2 0 1 5 LA I F $2 7 , 2 3 9 , 5 2 5 50 % U. S . T r e a s u r y $1 , 0 7 7 , 7 3 0 2% Mo n e y M a r k e t Ra t e A c c o u n t $1 , 0 0 7 , 7 1 4 2% Ne g o t i a b l e CD $1 , 0 0 0 , 0 0 0 2% Cash $24,109,611 44% Ci t y o f S a n L u i s O b i s p o S e c t o r D i s t r i b u t i o n – I n t e r n a l *S e c t o r d i s t r i b u t i o n i n c l u d e s m a r k e t v a l u e a n d e x c l u d e s a c c r u e d i n t e r e s t . Is s u e r s 15 © P F M A s s e t M a n a g e m e n t L L C As o f J u n e 3 0 , 2 0 1 5 Is s u e r D i s t r i b u t i o n – I n t e r n a l Is s u e r N a m e I n v e s t m e n t T y p e % P o r t f o l i o LA I F L A I F 4 9 . 0 5 % Ca s h C a s h 4 5 . 4 4 % U. S . T r e a s u r y U . S . T r e a s u r y 1 . 9 0 % He r i t a g e O a k s B a n k M o n e y M a r k e t R a t e A c c o u n t 1 . 8 1 % He r i t a g e O a k s B a n k N e g o t i a b l e C D 1 . 8 0 % To t a l 10 0 . 0 0 % Se c t i o n I I I . C o n s o l i d a t e d I n f o r m a t i o n Ca t e g o r y S t a n d a r d C o m m e n t Tr e a s u r y O b l i g a t i o n s 5 y e a r m a x i m u m m a t u r i t y C o m p l i e s Go v e r n m e n t S p o n s o r e d E n t e r p r i s e ( G S E ) Se c u r i t i e s 5 y e a r m a x i m u m m a t u r i t y , A A A b y S & P o r M o o d y ’ s C o m p l i e s Co r p o r a t e N o t e s 5 y e a r m a x i m u m m a t u r i t y At l e a s t o n e “ A A ” r a t i n g 30 % m a x i m u m , 5 % p e r i s s u e r Complies Lo c a l G o v e r n m e n t I n v e s t m e n t P o o l ( L A I F ) U p t o m a x i m u m p e r m i t t e d b y S t a t e L a w C o m p l i e s Ne g o t i a b l e C e r t i f i c a t e s o f D ep o s i t 5 y e a r m a x i m u m m a t u r i t y 30 % m a x i m u m , 5 % p e r i s s u e r Complies Co l l a t e r a l i z e d B a n k D e p o s i t s 5 % p e r i s s u e r C o m p l i e s Mo n e y M a r k e t M u t u a l F u n d s H i g h e s t r a t i n g c a t e g o r y b y 2 N R S R O ’ s 20 % m a x i m u m , 1 0 % p e r i s s u e r Complies % m a t u r i n g i n l e s s t h a n 9 0 d a y s 5 % m i n i m u m C o m p l i e s Ma x i m u m m a t u r i t y o f c o r po r a t e 5 y e a r s C o m p l i e s Ma x i m u m m a t u r i t y 1 0 y e a r s ; 1 0 % m a xi m u m o f p o r t f o l i o i n T r e a s u r y a n d GS E o b l i g a t i o n s w i t h m a t u r i t y > 5 y e a r s Complies Co m p l i a n c e 16 © P F M A s s e t M a n a g e m e n t L L C Ci t y o f S a n L u i s O b i s p o Po r t f o l i o C o m p l i a n c e – C o n s o l i d a t e d • Po r t f o l i o C o m p l i e s w i t h C a l i f o r n i a G o v e r n m e n t C o d e a n d t h e C i t y o f S a n L u i s O b i s p o ’ s I n v e s t m e n t P o l i c y i n r e g a r d s t o cr e d i t q u a l i t y , a s w e l l a s m a t u r i t y , s e c t o r , a n d i s s u e r l i m i t s . Ad d i t i o n a l l y , n o n e o f t h e C i t y ’ s f u n d s a r e i n v e s t e d i n a n y se c u r i t i e s p r o h i b i t e d b y C o d e . Ci t y o f S a n L u i s O b i s p o - C o n s o l i d a t e d Po r t f o l i o C h a r a c t e r i s t i c s 6/ 3 0 / 1 5 3 / 3 1 / 1 5 Po r t f o l i o P o r t f o l i o Ave r a g e M a t u r i t y ( y r s . ) 1. 0 1 1 . 0 0 Ef f e c t i v e D u r a t i o n * 0. 9 8 0 . 9 8 Ave r a g e P u r c h a s e Y i e l d 0. 6 8 % 0 . 6 8 % Ave r a g e M a r k e t Y i e l d 0. 4 6 % 0 . 4 0 % Ave r a g e Q u a l i t y AA + / A a a A A + / A a a To t a l M a r k e t V a l u e 10 1 , 1 9 7 , 8 7 0 1 0 0 , 0 6 7 , 9 2 3 Ac c o u n t P r o f i l e 17 © P F M A s s e t M a n a g e m e n t L L C *E f f e c t i v e d u r a t i o n u s e d i n p l a c e o f m o d i f i ed d u r a t i o n . E f f e c t i v e d u r a t i o n i s t h e a p p r ox i m a t e p e r c e n t a g e c h a n g e i n p r i c e , f o r e a ch 1 % c h a n g e i n i n t e r e s t r a t e s . M o d i f i e d d u r a t i o n i s a s i m i l a r r i s k me a s u r e , b u t i t i g n o r e s h o w c h a n g e s i n r a t e s w i l l i m p a c t c a s h fl o w s o n b o n d s w i t h e m b e d d e d o p t i o n s s u c h a s c a l l a b l e n o t e s , M B S , o r A B S . E f f e c t i v e d u r a t i o n t a k e s i n t o a c c o u n t t h e i m p a c t t h a t ch a n g i n g i n t e r e s t r a t e s h a s o n c a s h f l o w s ( i . e . i f i n t e r e s t ra t e s f a l l a n d a c a l l a b l e b o n d i s m o r e l i k e l y t o b e c a l l e d p r i o r t o i t s f i n a l m a t u r i t y , t h e e f f e c t i v e d u r a t i o n w i l l d e c r e a s e ) . Se c t o r D i s t r i b u t i o n 18 © P F M A s s e t M a n a g e m e n t L L C Ju n e 3 0 , 2 0 1 5 M a r c h 3 1 , 2 0 1 5 U. S . T r e a s u r y $1 5 , 3 4 8 , 3 0 1 15 % Fe d e r a l Ag e n c y $2 3 , 9 2 8 , 0 6 2 24 % Co r p o r a t e $7 , 0 1 8 , 2 2 7 7% Ne g o t i a b l e CD $1 , 0 0 0 , 0 0 0 1% Mo n e y M a r k e t Fu n d $4 1 6 , 4 8 3 1% Mo n e y M a r k e t Ra t e A c c o u n t $1 , 0 0 7 , 7 1 4 1% LAIF $27,239,525 27%Cash $24,109,611 24% Ci t y o f S a n L u i s O b i s p o Se c t o r D i s t r i b u t i o n – C o n s o l i d a t e d *S e c t o r d i s t r i b u t i o n i n c l u d e s m a r k e t v a l u e a n d e x c l u d e s a c c r u e d i n t e r e s t . U. S . T r e a s u r y $1 5 , 2 5 6 , 0 2 0 15 % Fe d e r a l Ag e n c y $2 4 , 6 5 6 , 5 9 5 24 % Co r p o r a t e $6 , 6 9 1 , 1 9 9 7% Ne g o t i a b l e CD $1 , 0 0 0 , 0 0 0 1% Mo n e y M a r k e t Fu n d $7 4 , 6 8 4 <1 % Mo n e y M a r k e t Ra t e A c c o u n t $1 , 0 0 8 , 4 6 8 1% LA I F $2 7 , 2 5 6 , 9 9 4 27 % Ca s h $2 5 , 2 5 3 , 9 0 9 25 % Is s u e r s 19 © P F M A s s e t M a n a g e m e n t L L C Is s u e r N a m e I n v e s t m e n t T y p e % P o r t f o l i o LA I F L A I F 2 6 . 9 3 % Ca s h C a s h 2 4 . 9 5 % U. S . T r e a s u r y U . S . T r e a s u r y 1 5 . 0 8 % FN M A F e d e r a l A g e n c y 8 . 6 3 % FH L M C F e d e r a l A g e n c y 8 . 3 2 % FF C B F e d e r a l A g e n c y 3 . 7 7 % FH L B F e d e r a l A g e n c y 3 . 6 4 % He r i t a g e O a k s B a n k M o n e y M a r k e t R a t e A c c o u n t 1 . 0 0 % Mi c r o s o f t C o r p C o r p o r a t e N o t e 0 . 9 9 % He r i t a g e O a k s B a n k N e g o t i a b l e C D 0 . 9 9 % Pr o c t e r & G a m b l e C o r p o r a t e N o t e 0 . 9 1 % IB M C o r p o r a t e N o t e 0 . 7 4 % Be r k s h i r e H a t h a w a y Co r p o r a t e N o t e 0 . 7 0 % Ge n e r a l E l e c t r i c C o rp o r a t e N o t e 0 . 6 9 % Wa l - M a r t S t o r e s C o r p o r a t e N o t e 0 . 6 9 % Ap p l e I n c C o r p o r a t e N o t e 0 . 6 9 % Jo h n s o n & J o h n s o n C o r p o r a t e N o t e 0 . 6 8 % Go o g l e I n c C o r p o r a t e N o t e 0 . 5 2 % Dr e y f u s P r i m e C a s h M a n a g e m e n t F u n d M o n e y M a r k e t F u n d 0 . 0 7 % To t a l 100.00% As o f J u n e 3 0 , 2 0 1 5 Is s u e r D i s t r i b u t i o n – C o n s o l i d a t e d Se c t i o n I V . P o r t f o l i o H o l d i n g s C i t y o f S a n L u i s O b i s p o H o l d i n g s R e p o r t For the Quarter Ending June 30, 2015 Se c u r i t y D e s c r i p t i o n Se t t l e D a t e YT M a t Co s t P a r C o s t V a l u e A m o r t i z e d C o s t YT M a t Ma r k e t M a r k e t V a l u e * Acc r u e d In t e r e s t % o f Po r t f o l i o Un r e a l G / L Am o r t C o s t S&P/Moody'sYears to MaturityDuration LA I F LO C A L A G E N C Y I N V E S T M E N T F U N D Va r i o u s 0 . 2 8 % 2 7 , 2 5 6 , 9 9 4 . 3 0 27 , 2 5 6 , 9 9 4 . 3 0 27 , 2 5 6 , 9 9 4 . 3 0 0. 2 8 % 2 7 , 2 5 6 , 9 9 4 . 3 0 - 2 6 . 9 3 % - NR NR0.000.00 To t a l L A I F 0. 2 8 % 2 7 , 2 5 6 , 9 9 4 . 3 0 27 , 2 5 6 , 9 9 4 . 3 0 27 , 2 5 6 , 9 9 4 . 3 0 0. 2 8 % 2 7 , 2 5 6 , 9 9 4 . 3 0 - 2 6 . 9 3 % - NR NR0.000.00 Mo n e y M a r k e t F u n d DR E Y F U S P R I M E C A S H M A N A G E M N T M O N E Y MA R K E T F U N D Va r i o u s 0 . 0 0 % 7 4 , 6 8 4 . 0 4 74 , 6 8 4 . 0 4 74 , 6 8 4 . 0 4 0. 0 0 % 7 4 , 6 8 4 . 0 4 - 0 . 0 7 % - AAA Aaa0.000.00 To t a l M o n e y M a r k e t F u n d 0. 0 0 % 7 4 , 6 8 4 . 0 4 74 , 6 8 4 . 0 4 74 , 6 8 4 . 0 4 0. 0 0 % 7 4 , 6 8 4 . 0 4 - 0 . 0 7 % - AAA Aaa0.000.00 Ca s h CA S H A C C O U N T Va r i o u s 0 . 0 0 % 2 5 , 2 5 3 , 9 0 9 . 0 4 25 , 2 5 3 , 9 0 9 . 0 4 25 , 2 5 3 , 9 0 9 . 0 4 0. 0 0 % 2 5 , 2 5 3 , 9 0 9 . 0 4 - 2 4 . 9 5 % - NR NR0.000.00 CA S H H E R I T A G E O A K S B A N K M O N E Y M A R K E T RA T E A C C O U N T Va r i o u s 0 . 2 1 % 1 , 0 0 8 , 4 6 8 . 2 4 1, 0 0 8 , 4 6 8 . 2 4 1, 0 0 8 , 4 6 8 . 2 4 0. 2 1 % 1 , 0 0 8 , 4 6 8 . 2 4 - 1 . 0 0 % - NR NR0.000.00 To t a l C a s h 0. 0 1 % 2 6 , 2 6 2 , 3 7 7 . 2 8 26 , 2 6 2 , 3 7 7 . 2 8 26 , 2 6 2 , 3 7 7 . 2 8 0. 0 1 % 2 6 , 2 6 2 , 3 7 7 . 2 8 - 2 5 . 9 5 % - NR NR0.000.00 U. S . T r e a s u r y B o n d / N o t e US T R E A S U R Y N O T E S 91 2 8 2 8 N P 1 1 . 7 5 % D u e 7 / 3 1 / 2 0 1 5 4/ 1 2 / 2 0 1 1 1 . 9 1 % 5 0 0 , 0 0 0 . 0 0 49 6 , 6 4 2 . 3 0 49 9 , 9 3 3 . 0 8 0. 1 1 % 5 0 0 , 7 0 3 . 0 0 3, 6 4 9 . 8 6 0. 4 9 % 7 6 9 . 9 2 AA+Aaa0.080.09 US T R E A S U R Y N O T E S 91 2 8 2 8 P J 3 1 . 3 8 % D u e 1 1 / 3 0 / 2 0 1 5 5/ 1 6 / 2 0 1 1 1 . 6 3 % 1 , 0 5 5 , 0 0 0 . 0 0 1, 0 4 3 , 2 1 7 . 2 1 1, 0 5 3 , 8 8 6 . 9 5 0. 0 8 % 1 , 0 6 0 , 6 8 7 . 5 1 1, 2 2 8 . 6 7 1. 0 5 % 6 , 8 0 0 . 5 6 AA+Aaa0.420.42 US T R E A S U R Y N O T E S 91 2 8 1 0 D V 7 9 . 2 5 % D u e 2 / 1 5 / 2 0 1 6 2/ 1 5 / 1 9 8 6 9 . 2 5 % 1 , 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 0. 3 9 % 1 , 0 5 5 , 7 8 0 . 0 0 34 , 4 9 5 . 8 6 1. 0 4 % 5 5 , 7 8 0 . 0 0 AA+Aaa0.630.61 US T R E A S U R Y N O T E S 91 2 8 2 8 Q J 2 2 . 1 3 % D u e 2 / 2 9 / 2 0 1 6 5/ 1 9 / 2 0 1 1 1 . 7 4 % 4 5 0 , 0 0 0 . 0 0 45 7 , 9 9 9 . 6 5 45 1 , 1 5 3 . 5 0 0. 2 2 % 4 5 5 , 7 3 0 . 3 0 3, 1 9 6 . 1 6 0. 4 5 % 4 , 5 7 6 . 8 0 AA+Aaa0.670.66 US T R E A S U R Y N O T E S 91 2 8 2 8 Q J 2 2 . 1 3 % D u e 2 / 2 9 / 2 0 1 6 8/ 3 0 / 2 0 1 1 0 . 8 2 % 6 0 0 , 0 0 0 . 0 0 63 4 , 5 4 8 . 8 9 60 5 , 1 8 7 . 0 9 0. 2 2 % 6 0 7 , 6 4 0 . 4 0 4, 2 6 1 . 5 5 0. 6 0 % 2 , 4 5 3 . 3 1 AA+Aaa0.670.66 US T R E A S U R Y N O T E S 91 2 8 2 8 U W 8 0 . 2 5 % D u e 4 / 1 5 / 2 0 1 6 4/ 2 4 / 2 0 1 3 0 . 3 4 % 9 0 0 , 0 0 0 . 0 0 89 7 , 6 4 7 . 5 5 89 9 , 3 7 3 . 4 9 0. 2 9 % 8 9 9 , 7 1 9 . 2 0 47 3 . 3 6 0. 8 9 % 3 4 5 . 7 1 AA+Aaa0.790.79 US T R E A S U R Y N O T E S 91 2 8 2 8 V C 1 0 . 2 5 % D u e 5 / 1 5 / 2 0 1 6 9/ 2 6 / 2 0 1 3 0 . 5 4 % 7 0 0 , 0 0 0 . 0 0 69 4 , 6 9 7 . 6 6 69 8 , 2 3 7 . 3 0 0. 2 9 % 6 9 9 , 7 8 1 . 6 0 22 3 . 5 1 0. 6 9 % 1 , 5 4 4 . 3 0 AA+Aaa0.880.87 US T R E A S U R Y N O T E S 91 2 8 2 8 V L 1 0 . 6 3 % D u e 7 / 1 5 / 2 0 1 6 10 / 7 / 2 0 1 3 0 . 5 7 % 7 5 0 , 0 0 0 . 0 0 75 1 , 1 4 5 . 0 9 75 0 , 4 3 1 . 5 1 0. 3 6 % 7 5 2 , 0 5 0 . 5 0 2, 1 6 2 . 4 7 0. 7 4 % 1 , 6 1 8 . 9 9 AA+Aaa1.041.03 US T R E A S U R Y N O T E S 91 2 8 2 8 S Y 7 0 . 6 3 % D u e 5 / 3 1 / 2 0 1 7 5/ 1 3 / 2 0 1 3 0 . 6 2 % 1 3 5 , 0 0 0 . 0 0 13 5 , 0 0 5 . 7 3 13 5 , 0 0 2 . 7 5 0. 6 3 % 1 3 4 , 9 7 8 . 9 4 71 . 4 7 0 . 1 3 % ( 2 3 . 8 1 ) AA+Aaa1.921.90 US T R E A S U R Y N O T E S 91 2 8 2 8 T B 6 0 . 7 5 % D u e 6 / 3 0 / 2 0 1 7 9/ 1 7 / 2 0 1 3 1 . 1 8 % 5 7 5 , 0 0 0 . 0 0 56 5 , 8 8 2 . 7 9 57 0 , 1 3 9 . 7 0 0. 6 5 % 5 7 6 , 1 2 2 . 9 8 11 . 7 2 0 . 5 7 % 5 , 9 8 3 . 2 8 AA+Aaa2.001.98 US T R E A S U R Y N O T E S 91 2 8 2 8 U E 8 0 . 7 5 % D u e 1 2 / 3 1 / 2 0 1 7 8/ 1 3 / 2 0 1 3 1. 2 8 % 6 2 5 , 0 0 0 . 0 0 61 1 , 0 6 1 . 6 6 61 6 , 9 5 9 . 6 1 0. 8 4 % 6 2 3 , 6 8 1 . 8 8 12 . 7 4 0 . 6 2 % 6 , 7 2 2 . 2 7 AA+Aaa2.512.47 US T R E A S U R Y N O T E S 91 2 8 2 8 U R 9 0 . 7 5 % D u e 2 / 2 8 / 2 0 1 8 4/ 2 4 / 2 0 1 4 1 . 3 2 % 9 2 5 , 0 0 0 . 0 0 90 5 , 1 6 6 . 1 8 91 1 , 1 6 5 . 5 2 0. 9 0 % 9 2 1 , 3 1 4 . 8 0 2, 3 1 8 . 7 8 0. 9 1 % 1 0 , 1 4 9 . 2 8 AA+Aaa2.672.63 US T R E A S U R Y N O T E S 91 2 8 2 8 R H 5 1 . 3 8 % D u e 9 / 3 0 / 2 0 1 8 2/ 1 9 / 2 0 1 5 1 . 2 5 % 4 0 0 , 0 0 0 . 0 0 40 1 , 7 6 5 . 6 3 40 1 , 5 9 3 . 6 3 1. 1 1 % 4 0 3 , 3 1 2 . 4 0 1, 3 8 2 . 5 1 0. 4 0 % 1 , 7 1 8 . 7 7 AA+Aaa3.253.16 US T R E A S U R Y N O T E S 91 2 8 2 8 R Y 8 1 . 3 8 % D u e 1 2 / 3 1 / 2 0 1 8 2/ 9 / 2 0 1 5 1 . 0 8 % 5 0 0 , 0 0 0 . 0 0 50 5 , 5 2 7 . 3 4 50 4 , 9 8 1 . 8 7 1. 2 1 % 5 0 2 , 8 5 1 . 5 0 18 . 6 8 0 . 5 0 % ( 2 , 1 3 0 . 3 7 ) AA+Aaa3.513.41 US T R E A S U R Y N O T E S 91 2 8 2 8 R Y 8 1 . 3 8 % D u e 1 2 / 3 1 / 2 0 1 8 3/ 2 4 / 2 0 1 5 1 . 1 7 % 1 , 0 0 0 , 0 0 0 . 0 0 1, 0 0 7 , 5 3 9 . 0 6 1, 0 0 7 , 0 0 8 . 0 5 1. 2 1 % 1 , 0 0 5 , 7 0 3 . 0 0 37 . 3 6 0 . 9 9 % ( 1 , 3 0 5 . 0 5 ) AA+Aaa3.513.41 US T R E A S U R Y N O T E S 91 2 8 2 8 R Y 8 1 . 3 8 % D u e 1 2 / 3 1 / 2 0 1 8 4/ 1 3 / 2 0 1 5 1 . 1 0 % 6 0 0 , 0 0 0 . 0 0 60 6 , 0 7 0 . 3 1 60 5 , 7 2 3 . 2 1 1. 2 1 % 6 0 3 , 4 2 1 . 8 0 22 . 4 2 0 . 6 0 % ( 2 , 3 0 1 . 4 1 ) AA+Aaa3.513.41 US T R E A S U R Y N O T E S 91 2 8 2 8 S D 3 1 . 2 5 % D u e 1 / 3 1 / 2 0 1 9 1/ 8 / 2 0 1 5 1 . 3 4 % 1 , 7 7 5 , 0 0 0 . 0 0 1, 7 6 8 , 9 6 7 . 7 7 1, 7 6 9 , 6 6 6 . 9 8 1. 2 4 % 1 , 7 7 5 , 5 5 3 . 8 0 9, 2 5 5 . 0 1 1. 7 5 % 5 , 8 8 6 . 8 2 AA+Aaa3.593.48 US T R E A S U R Y N O T E S 91 2 8 2 8 S H 4 1 . 3 8 % D u e 2 / 2 8 / 2 0 1 9 2/ 2 7 / 2 0 1 5 1 . 3 8 % 5 0 0 , 0 0 0 . 0 0 49 9 , 9 6 0 . 9 4 49 9 , 9 6 4 . 2 1 1. 2 8 % 5 0 1 , 7 5 8 . 0 0 2, 2 9 7 . 8 9 0. 5 0 % 1 , 7 9 3 . 7 9 AA+Aaa3.673.55 US T R E A S U R Y N O T E S 91 2 8 2 8 U F 5 1 . 1 3 % D u e 1 2 / 3 1 / 2 0 1 9 1/ 8 / 2 0 1 5 1 . 4 8 % 7 7 5 , 0 0 0 . 0 0 76 1 , 8 9 1 . 6 0 76 3 , 1 1 6 . 3 5 1. 5 3 % 7 6 1 , 3 7 7 . 0 5 23 . 6 9 0. 7 5 % ( 1 , 7 3 9 . 3 0 ) AA+Aaa4.514.37 20 C i t y o f S a n L u i s O b i s p o H o l d i n g s R e p o r t For the Quarter Ending June 30, 2015 Se c u r i t y D e s c r i p t i o n Se t t l e D a t e YT M a t Co s t P a r C o s t V a l u e A m o r t i z e d C o s t YT M a t Ma r k e t M a r k e t V a l u e * Acc r u e d In t e r e s t % o f Po r t f o l i o Un r e a l G / L Am o r t C o s t S&P/Moody'sYears to MaturityDuration US T R E A S U R Y N O T E S 91 2 8 2 8 N D 8 3 . 5 0 % D u e 5 / 1 5 / 2 0 2 0 5/ 2 9 / 2 0 1 5 1 . 5 0 % 1 , 3 0 0 , 0 0 0 . 0 0 1 , 4 2 3 , 5 5 0 . 7 8 1 , 4 2 1 , 3 9 3 . 5 6 1 . 6 2 % 1 , 4 1 3 , 8 5 1 . 4 0 5 , 8 1 1 . 1 4 1 . 4 0 % ( 7 , 5 4 2 . 1 6 ) AA+Aaa4.884.49 To t a l U . S . T r e a s u r y B o n d / N o t e 1 . 7 6 % 1 5 , 0 6 5 , 0 0 0 . 0 0 1 5 , 1 6 8 , 2 8 8 . 1 4 1 5 , 1 6 4 , 9 1 8 . 3 6 0 . 8 3 % 1 5 , 2 5 6 , 0 2 0 . 0 6 7 0 , 9 5 4 . 8 5 1 5 . 0 8 % 9 1 , 1 0 1 . 7 0 AA+Aaa2.402.32 Fe d e r a l A g e n c y B o n d / N o t e FF C B N O T E S 31 3 3 E A D W 5 0 . 5 5 % D u e 8 / 1 7 / 2 0 1 5 4/ 2 7 / 2 0 1 2 0 . 6 0 % 1 , 0 0 0 , 0 0 0 . 0 0 9 9 8 , 5 1 1 . 0 0 9 9 9 , 9 4 2 . 0 0 0 . 1 8 % 1 , 0 0 0 , 4 8 0 . 0 0 2 , 0 4 7 . 2 2 0 . 9 9 % 5 3 8 . 0 0 AA+Aaa0.130.13 FF C B N O T E S 31 3 3 1 J 2 S 1 1 . 5 0 % D u e 1 1 / 1 6 / 2 0 1 5 3/ 2 5 / 2 0 1 1 2 . 2 0 % 4 0 2 , 0 0 0 . 0 0 3 8 9 , 6 4 0 . 9 1 4 0 0 , 9 5 5 . 9 5 0 . 2 6 % 4 0 3 , 8 8 2 . 9 7 7 5 3 . 7 5 0 . 4 0 % 2 , 9 2 7 . 0 2 AA+Aaa0.380.38 FE D E R A L H O M E L O A N B A N K G L O B A L N O T E S 31 3 3 8 0 L 9 6 0 . 5 0 % D u e 1 1 / 2 0 / 2 0 1 5 6/ 2 7 / 2 0 1 3 0 . 5 3 % 7 0 0 , 0 0 0 . 0 0 6 9 9 , 4 4 7 . 0 0 6 9 9 , 9 1 0 . 5 4 0 . 1 9 % 7 0 0 , 8 5 2 . 6 0 3 9 8 . 6 1 0 . 6 9 % 9 4 2 . 0 6 AA+Aaa0.390.39 FF C B N O T E S 31 3 3 1 J 6 C 2 2 . 3 5 % D u e 1 2 / 2 2 / 2 0 1 5 3/ 2 8 / 2 0 1 1 2 . 2 7 % 5 8 0 , 0 0 0 . 0 0 5 8 2 , 0 9 9 . 6 0 5 8 0 , 2 2 1 . 9 1 0 . 3 2 % 5 8 5 , 6 0 6 . 2 8 3 4 0 . 7 5 0 . 5 8 % 5 , 3 8 4 . 3 7 AA+Aaa0.480.48 FH L B N O T E S 31 3 3 X X P 4 3 3 . 1 3 % D u e 3 / 1 1 / 2 0 1 6 8/ 1 0 / 2 0 1 1 1 . 1 2 % 9 6 5 , 0 0 0 . 0 0 1 , 0 5 1 , 4 4 9 . 5 3 9 7 8 , 3 7 0 . 1 2 0 . 3 2 % 9 8 3 , 8 3 1 . 0 1 9 , 2 1 4 . 4 1 0 . 9 7 % 5 , 4 6 0 . 8 9 AA+Aaa0.700.69 FF C B N O T E S 31 3 3 E A J U 3 1 . 0 5 % D u e 3 / 2 8 / 2 0 1 6 9/ 1 4 / 2 0 1 2 0 . 5 3 % 9 2 4 , 0 0 0 . 0 0 9 4 0 , 8 7 9 . 2 8 9 2 7 , 5 6 2 . 9 5 0 . 2 9 % 9 2 9 , 1 9 0 . 1 1 2 , 5 0 6 . 3 5 0 . 9 2 % 1 , 6 2 7 . 1 6 AA+Aaa0.750.74 FA N N I E M A E G L O B A L N O T E S 31 3 5 G 0 V A 8 0 . 5 0 % D u e 3 / 3 0 / 2 0 1 6 3/ 2 7 / 2 0 1 3 0 . 4 5 % 9 5 0 , 0 0 0 . 0 0 9 5 1 , 4 3 4 . 5 0 9 5 0 , 3 5 8 . 0 5 0 . 3 1 % 9 5 1 , 3 1 7 . 6 5 1, 2 0 0 . 6 9 0. 9 4 % 9 5 9 . 6 0 AA+Aaa0.750.75 FH L B N O T E S 31 3 3 7 0 T W 8 2 . 0 0 % D u e 9 / 9 / 2 0 1 6 10 / 2 4 / 2 0 1 3 0 . 6 7 % 2 8 0 , 0 0 0 . 0 0 29 0 , 5 5 0 . 4 0 28 4 , 3 8 7 . 2 9 0. 4 8 % 2 8 5 , 0 6 0 . 4 4 1, 7 4 2 . 2 2 0. 2 8 % 6 7 3 . 1 5 AA+Aaa1.201.17 FA N N I E M A E N O T E S 31 3 5 G 0 E S 8 1 . 3 8 % D u e 1 1 / 1 5 / 2 0 1 6 3/ 1 4 / 2 0 1 2 1 . 2 1 % 9 8 5 , 0 0 0 . 0 0 99 2 , 5 4 5 . 1 0 98 7 , 2 6 2 . 3 1 0. 5 2 % 9 9 6 , 5 8 3 . 6 0 1, 7 3 0 . 5 9 0. 9 8 % 9 , 3 2 1 . 2 9 AA+Aaa1.381.36 FH L B N O T E S 31 3 0 A 3 J 7 0 0 . 6 3 % D u e 1 1 / 2 3 / 2 0 1 6 2/ 9 / 2 0 1 5 0 . 5 2 % 5 0 0 , 0 0 0 . 0 0 50 0 , 9 1 5 . 0 0 50 0 , 7 1 4 . 3 7 0. 5 8 % 5 0 0 , 3 0 3 . 0 0 32 9 . 8 6 0. 4 9 % ( 4 1 1 . 3 7 ) AA+Aaa1.401.39 FA N N I E M A E G L O B A L N O T E S 31 3 5 G 0 G Y 3 1 . 2 5 % D u e 1 / 3 0 / 2 0 1 7 2/ 2 7 / 2 0 1 2 1 . 0 7 % 8 0 0 , 0 0 0 . 0 0 80 7 , 0 1 6 . 0 0 80 2 , 2 9 2 . 0 9 0. 5 9 % 8 0 8 , 2 9 4 . 4 0 4, 1 9 4 . 4 4 0. 8 0 % 6 , 0 0 2 . 3 1 AA+Aaa1.591.56 FF C B N O T E S 31 3 3 1 K B X 7 2 . 8 8 % D u e 2 / 1 0 / 2 0 1 7 7/ 2 5 / 2 0 1 2 0 . 7 4 % 8 6 5 , 0 0 0 . 0 0 94 7 , 4 7 7 . 7 5 89 4 , 5 2 0 . 8 6 0. 7 1 % 8 9 4 , 9 1 7 . 7 6 9, 7 4 0 . 2 6 0. 8 8 % 3 9 6 . 9 0 AA+Aaa1.621.56 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D C 0 1 . 0 0 % D u e 3 / 8 / 2 0 1 7 3/ 1 4 / 2 0 1 2 1 . 2 9 % 1 , 0 0 0 , 0 0 0 . 0 0 98 6 , 0 5 0 . 0 0 99 5 , 1 8 0 . 8 7 0. 6 2 % 1 , 0 0 6 , 2 9 9 . 0 0 3, 1 3 8 . 8 9 0. 9 9 % 1 1 , 1 1 8 . 1 3 AA+Aaa1.691.67 FH L M C N O T E S 31 3 7 E A D F 3 1 . 2 5 % D u e 5 / 1 2 / 2 0 1 7 10 / 1 7 / 2 0 1 2 0 . 8 2 % 5 0 0 , 0 0 0 . 0 0 50 9 , 6 3 5 . 0 0 50 3 , 9 7 3 . 5 6 0. 6 5 % 5 0 5 , 5 8 9 . 5 0 85 0 . 6 9 0. 5 0 % 1 , 6 1 5 . 9 4 AA+Aaa1.871.84 FN M A N O T E S ( E X - C A L L A B L E ) 31 3 6 F P Y B 7 2 . 0 5 % D u e 5 / 2 3 / 2 0 1 7 8/ 7 / 2 0 1 2 0 . 9 0 % 3 6 5 , 0 0 0 . 0 0 38 4 , 7 3 9 . 2 0 37 2 , 9 0 0 . 8 0 0. 7 6 % 3 7 3 , 8 6 4 . 7 6 78 9 . 8 2 0. 3 7 % 9 6 3 . 9 6 AA+Aaa1.901.86 FH L B G L O B A L N O T E S 31 3 0 A 5 E P 0 0 . 6 3 % D ue 5 / 3 0 / 2 0 1 7 5/ 1 5 / 2 0 1 5 0 . 6 7 % 5 1 5 , 0 0 0 . 0 0 51 4 , 5 7 2 . 5 5 51 4 , 5 9 8 . 9 6 0. 7 3 % 5 1 3 , 9 4 8 . 8 9 27 7 . 1 7 0. 5 1 % ( 6 5 0 . 0 7 ) AA+Aaa1.921.90 FE D E R A L H O M E L O A N B A N K G L O B A L N O T E S 31 3 3 7 9 D D 8 1 . 0 0 % D u e 6 / 2 1 / 2 0 1 7 11 / 2 6 / 2 0 1 2 0 . 7 0 % 7 0 0 , 0 0 0 . 0 0 70 9 , 4 7 8 . 0 0 70 4 , 1 2 8 . 1 0 0. 7 3 % 7 0 3 , 6 5 8 . 2 0 19 4 . 4 4 0. 7 0 % ( 4 6 9 . 9 0 ) AA+Aaa1.981.95 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D H 9 1 . 0 0 % D u e 6 / 2 9 / 2 0 1 7 7/ 3 0 / 2 0 1 2 0 . 8 5 % 7 7 5 , 0 0 0 . 0 0 78 0 , 6 7 3 . 0 0 77 7 , 3 3 1 . 4 8 0. 7 2 % 7 7 9 , 2 5 2 . 4 3 43 . 0 6 0 . 7 7 % 1 , 9 2 0 . 9 5 AA+Aaa2.001.98 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D H 9 1 . 0 0 % D u e 6 / 2 9 / 2 0 1 7 12 / 1 4 / 2 0 1 2 0 . 7 4 % 1 3 5 , 0 0 0 . 0 0 13 6 , 5 8 7 . 6 0 13 5 , 7 0 3 . 7 5 0. 7 2 % 1 3 5 , 7 4 0 . 7 5 7. 5 0 0 . 1 3 % 3 7 . 0 0 AA+Aaa2.001.98 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D J 5 1 . 0 0 % D u e 7 / 2 8 / 2 0 1 7 11 / 2 6 / 2 0 1 2 0 . 8 0 % 9 0 0 , 0 0 0 . 0 0 90 8 , 3 1 6 . 0 0 90 3 , 7 3 2 . 1 7 0. 7 7 % 9 0 4 , 1 9 1 . 3 0 3, 8 2 5 . 0 0 0. 8 9 % 4 5 9 . 1 3 AA+Aaa2.082.05 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D J 5 1 . 0 0 % D u e 7 / 2 8 / 2 0 1 7 3/ 2 3 / 2 0 1 5 0 . 8 2 % 4 9 5 , 0 0 0 . 0 0 49 7 , 0 1 9 . 6 0 49 6 , 7 8 8 . 0 2 0. 7 7 % 4 9 7 , 3 0 5 . 2 2 2, 1 0 3 . 7 5 0. 4 9 % 5 1 7 . 2 0 AA+Aaa2.082.05 FA N N I E M A E G L O B A L N O T E S 31 3 5 G 0 M Z 3 0 . 8 8 % D u e 8 / 2 8 / 2 0 1 7 6/ 2 0 / 2 0 1 4 1 . 1 0 % 6 2 5 , 0 0 0 . 0 0 62 0 , 6 8 7 . 5 0 62 2 , 0 6 9 . 0 1 0. 7 6 % 6 2 6 , 4 8 1 . 8 8 1, 8 3 8 . 1 1 0. 6 2 % 4 , 4 1 2 . 8 7 AA+Aaa2.162.14 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D L 0 1 . 0 0 % D u e 9 / 2 9 / 2 0 1 7 1/ 4 / 2 0 1 3 0 . 8 9 % 9 5 0 , 0 0 0 . 0 0 95 4 , 7 8 8 . 0 0 95 2 , 2 9 5 . 1 5 0. 8 9 % 9 5 2 , 2 3 8 . 2 0 2, 4 2 7 . 7 8 0. 9 4 % ( 5 6 . 9 5 ) AA+Aaa2.252.21 FA N N I E M A E G L O B A L N O T E S 31 3 5 G 0 P Q 0 0 . 8 8 % D u e 1 0 / 2 6 / 2 0 1 7 6/ 2 0 / 2 0 1 4 1 . 1 7 % 6 2 5 , 0 0 0 . 0 0 61 8 , 9 8 7 . 5 0 62 0 , 8 1 3 . 9 5 0. 8 5 % 6 2 5 , 2 8 6 . 2 5 98 7 . 4 1 0. 6 2 % 4 , 4 7 2 . 3 0 AA+Aaa2.332.29 FH L M C N O T E S 31 3 7 E A D N 6 0 . 7 5 % D u e 1 / 1 2 / 2 0 1 8 10 / 1 / 2 0 1 4 1 . 2 6 % 8 0 0 , 0 0 0 . 0 0 78 7 , 0 0 8 . 0 0 78 9 , 9 3 3 . 4 6 0. 9 5 % 7 9 6 , 0 1 6 . 0 0 2, 8 1 6 . 6 7 0. 7 9 % 6 , 0 8 2 . 5 4 AA+Aaa2.542.49 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D P 1 0 . 8 8 % D u e 3 / 7 / 2 0 1 8 11 / 2 0 / 2 0 1 4 1 . 2 0 % 9 0 0 , 0 0 0 . 0 0 89 0 , 4 6 9 . 0 0 89 2 , 2 1 8 . 3 9 1. 0 1 % 8 9 6 , 8 7 2 . 5 0 2, 4 9 3 . 7 5 0. 8 9 % 4 , 6 5 4 . 1 1 AA+Aaa2.692.64 21 C i t y o f S a n L u i s O b i s p o H o l d i n g s R e p o r t For the Quarter Ending June 30, 2015 Se c u r i t y D e s c r i p t i o n Se t t l e D a t e YT M a t Co s t P a r C o s t V a l u e A m o r t i z e d C o s t YT M a t Ma r k e t M a r k e t V a l u e * Acc r u e d In t e r e s t % o f Po r t f o l i o Un r e a l G / L Am o r t C o s t S&P/Moody'sYears to MaturityDuration FA N N I E M A E G L O B A L N O T E S 31 3 5 G 0 W J 8 0 . 8 8 % D u e 5 / 2 1 / 2 0 1 8 4/ 2 4 / 2 0 1 4 1 . 4 6 % 9 2 5 , 0 0 0 . 0 0 9 0 3 , 6 9 1 . 7 0 9 0 9 , 7 6 7 . 1 6 1 . 0 9 % 9 1 9 , 4 6 3 . 8 8 8 9 9 . 3 1 0 . 9 1 % 9 , 6 9 6 . 7 2 AA+Aaa2.892.84 FR E D D I E M A C N O T E S 31 3 7 E A D G 1 1 . 7 5 % D u e 5 / 3 0 / 2 0 1 9 8/ 4 / 2 0 1 4 1 . 6 7 % 9 0 0 , 0 0 0 . 0 0 9 0 3 , 4 2 0 . 0 0 9 0 2 , 8 0 2 . 4 7 1 . 4 6 % 9 0 9 , 7 9 3 . 8 0 1 , 3 5 6 . 2 5 0 . 9 0 % 6 , 9 9 1 . 3 3 AA+Aaa3.923.77 FN M A N O T E S 31 3 5 G 0 Z E 6 1 . 7 5 % D u e 6 / 2 0 / 2 0 1 9 10 / 2 / 2 0 1 4 1 . 7 7 % 5 0 0 , 0 0 0 . 0 0 49 9 , 6 3 0 . 0 0 49 9 , 6 9 0 . 6 0 1. 4 7 % 5 0 5 , 3 4 4 . 0 0 26 7 . 3 6 0. 5 0 % 5 , 6 5 3 . 4 0 AA+Aaa3.983.83 FN M A N O T E S 31 3 5 G 0 Z E 6 1 . 7 5 % D u e 6 / 2 0 / 2 0 1 9 8/ 5 / 2 0 1 4 1 . 7 4 % 3 5 0 , 0 0 0 . 0 0 35 0 , 2 2 7 . 5 0 35 0 , 1 8 8 . 7 1 1. 4 7 % 3 5 3 , 7 4 0 . 8 0 18 7 . 1 5 0. 3 5 % 3 , 5 5 2 . 0 9 AA+Aaa3.983.83 FN M A N O T E S 31 3 5 G 0 Z E 6 1 . 7 5 % D u e 6 / 2 0 / 2 0 1 9 11 / 2 1 / 2 0 1 4 1 . 7 1 % 1 0 0 , 0 0 0 . 0 0 10 0 , 1 5 7 . 0 0 10 0 , 1 3 7 . 1 9 1. 4 7 % 1 0 1 , 0 6 8 . 8 0 53 . 4 7 0 . 1 0 % 9 3 1 . 6 1 AA+Aaa3.983.83 FR E D D I E M A C G L O B A L N O T E S 31 3 7 E A D K 2 1 . 2 5 % D u e 8 / 1 / 2 0 1 9 9/ 1 5 / 2 0 1 4 1 . 8 8 % 1 , 0 5 0 , 0 0 0 . 0 0 1, 0 1 9 , 0 7 7 . 5 0 1, 0 2 3 , 9 2 9 . 7 6 1. 5 2 % 1 , 0 3 8 , 8 4 3 . 7 5 5, 4 6 8 . 7 5 1. 0 3 % 1 4 , 9 1 3 . 9 9 AA+Aaa4.093.95 FN M A N O T E S 31 3 5 G 0 Z G 1 1 . 7 5 % D u e 9 / 1 2 / 2 0 1 9 2/ 9 / 2 0 1 5 1 . 3 6 % 5 0 0 , 0 0 0 . 0 0 50 8 , 6 6 5 . 0 0 50 7 , 9 4 2 . 9 1 1. 5 5 % 5 0 4 , 0 0 6 . 0 0 2, 6 4 9 . 3 1 0. 5 0 % ( 3 , 9 3 6 . 9 1 ) AA+Aaa4.214.02 FN M A N O T E S 31 3 5 G 0 A 7 8 1 . 6 3 % D u e 1 / 2 1 / 2 0 2 0 4/ 3 0 / 2 0 1 5 1 . 5 4 % 1 , 2 7 0 , 0 0 0 . 0 0 1, 2 7 4 , 8 8 9 . 5 0 1, 2 7 4 , 7 2 7 . 1 8 1. 6 6 % 1 , 2 6 8 , 2 3 9 . 7 8 9, 1 7 2 . 2 2 1. 2 5 % ( 6 , 4 8 7 . 4 0 ) AA+Aaa4.564.34 FN M A N O T E S 31 3 5 G 0 A 7 8 1 . 6 3 % D u e 1 / 2 1 / 2 0 2 0 6/ 2 9 / 2 0 1 5 1 . 7 1 % 7 0 0 , 0 0 0 . 0 0 69 7 , 2 9 8 . 0 0 69 7 , 3 0 1 . 4 0 1. 6 6 % 6 9 9 , 0 2 9 . 8 0 5, 0 5 5 . 5 6 0. 6 9 % 1 , 7 2 8 . 4 0 AA+Aaa4.564.34 To t a l F e d e r a l A g e n c y B o n d / N o t e 1. 1 3 % 2 4 , 5 3 1 , 0 0 0 . 0 0 24 , 7 0 8 , 0 3 3 . 2 2 24 , 5 5 4 , 6 5 3 . 4 9 0. 8 2 % 2 4 , 6 5 6 , 5 9 5 . 3 1 81 , 1 0 2 . 5 7 24 . 3 6 % 1 0 1 , 9 4 1 . 8 2 AA+Aaa2.162.11 Ne g o t i a b l e C D HE R I T A G E O A K S B A N K Y A N K E E C D 0. 2 7 % D u e 1 2 / 2 0 / 2 0 1 5 12 / 2 0 / 2 0 1 4 0 . 2 7 % 1 , 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 0. 2 7 % 1 , 0 0 0 , 0 0 0 . 0 0 75 0 . 0 0 0. 9 9 % - NR NR0.470.47 To t a l N e g o t i a b l e C D 0. 2 7 % 1 , 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 1, 0 0 0 , 0 0 0 . 0 0 0. 2 7 % 1 , 0 0 0 , 0 0 0 . 0 0 75 0 . 0 0 0. 9 9 % - NR NR0.470.47 Co r p o r a t e N o t e GE N E R A L E L E C T R I C C O N O T E S 36 9 6 0 4 B E 2 0 . 8 5 % D u e 1 0 / 9 / 2 0 1 5 4/ 2 4 / 2 0 1 3 0 . 5 9 % 7 0 0 , 0 0 0 . 0 0 70 4 , 5 1 5 . 0 0 70 0 , 5 0 2 . 8 7 0. 3 2 % 7 0 1 , 0 2 4 . 1 0 1, 3 5 5 . 2 8 0. 6 9 % 5 2 1 . 2 3 AA+A10.280.90 WA L - M A R T S T O R E S I N C G L O B A L N O T E S 93 1 1 4 2 D E 0 0 . 6 0 % D u e 4 / 1 1 / 2 0 1 6 6/ 2 7 / 2 0 1 3 0 . 8 1 % 7 0 0 , 0 0 0 . 0 0 69 6 , 0 1 7 . 0 0 69 8 , 8 8 0 . 8 4 0. 5 5 % 7 0 0 , 2 5 9 . 0 0 93 3 . 3 3 0. 6 9 % 1 , 3 7 8 . 1 6 AA Aa20.780.78 AP P L E I N C G L O B A L N O T E S 03 7 8 3 3 A H 3 0 . 4 5 % D u e 5 / 3 / 2 0 1 6 5/ 1 3 / 2 0 1 3 0 . 5 5 % 7 0 0 , 0 0 0 . 0 0 69 8 , 0 0 5 . 0 0 69 9 , 4 3 3 . 7 8 0. 5 1 % 6 9 9 , 6 7 1 . 0 0 50 7 . 5 0 0. 6 9 % 2 3 7 . 2 2 AA+Aa10.840.84 JO H N S O N & J O H N S O N G L O B A L N O T E 47 8 1 6 0 A Y 0 2 . 1 5 % D u e 5 / 1 5 / 2 0 1 6 1/ 1 5 / 2 0 1 3 0 . 5 8 % 6 7 5 , 0 0 0 . 0 0 70 9 , 8 7 0 . 5 0 68 4 , 1 8 9 . 0 5 0. 6 0 % 6 8 4 , 1 3 4 . 1 0 1, 8 5 4 . 3 8 0. 6 8 % ( 5 4 . 9 5 ) AAA Aaa0.880.87 GO O G L E I N C G L O B A L N O T E S 38 2 5 9 P A C 6 2 . 1 3 % D u e 5 / 1 9 / 2 0 1 6 4/ 2 3 / 2 0 1 2 0 . 9 1 % 5 2 3 , 0 0 0 . 0 0 54 8 , 3 6 0 . 2 7 52 8 , 5 7 9 . 9 8 0. 4 4 % 5 3 0 , 8 0 4 . 7 3 1, 2 9 6 . 6 0 0. 5 2 % 2 , 2 2 4 . 7 5 AA Aa20.890.88 PR O C T E R & G A M B L E C O N O T E S ( E X - C A L L A B L E ) 74 2 7 1 8 D V8 1 . 4 5 % D u e 8 / 1 5 / 2 0 1 6 8/ 3 / 2 0 1 2 0 . 8 2 % 9 1 5 , 0 0 0 . 0 0 93 7 , 8 9 3 . 3 0 92 1 , 4 4 4 . 8 0 0. 7 7 % 9 2 1 , 9 7 1 . 3 9 5, 0 1 2 . 1 7 0. 9 1 % 5 2 6 . 5 9 AA-Aa31.131.11 BE R K S H I R E H A T H A W A Y F I N G L O B A L N O T E S 08 4 6 6 4 B S 9 1 . 6 0 % D u e 5 / 1 5 / 2 0 1 7 4/ 2 4 / 2 0 1 3 1 . 0 0 % 7 0 0 , 0 0 0 . 0 0 71 6 , 7 6 5 . 0 0 70 7 , 8 1 7 . 9 2 1. 0 2 % 7 0 7 , 5 2 0 . 8 0 1, 4 3 1 . 1 1 0. 7 0 % ( 2 9 7 . 1 2 ) AA Aa21.881.84 IB M C O R P N O T E S 45 9 2 0 0 H Z 7 1 . 1 3 % D u e 2 / 6 / 2 0 1 8 2/ 9 / 2 0 1 5 1 . 1 6 % 7 5 0 , 0 0 0 . 0 0 74 9 , 3 1 7 . 5 0 74 9 , 4 0 6 . 3 3 1. 3 7 % 7 4 5 , 2 3 7 . 5 0 3, 3 9 8 . 4 4 0. 7 4 % ( 4 , 1 6 8 . 8 3 ) AA-Aa32.612.54 MI C R O S O F T C O R P N O T E 59 4 9 1 8 A Y 0 1 . 8 5 % D u e 2 / 1 2 / 2 0 2 0 4/ 1 3 / 2 0 1 5 1 . 5 8 % 1 , 0 0 0 , 0 0 0 . 0 0 1, 0 1 2 , 5 7 0 . 0 0 1, 0 1 2 , 0 3 0 . 9 1 1. 8 4 % 1 , 0 0 0 , 5 7 6 . 0 0 7, 1 4 3 . 0 6 0. 9 9 % ( 1 1 , 4 5 4 . 9 1 ) AAA Aaa4.624.38 To t a l C o r p o r a t e N o t e 0. 9 2 % 6 , 6 6 3 , 0 0 0 . 0 0 6, 7 7 3 , 3 1 3 . 5 7 6, 7 0 2 , 2 8 6 . 4 8 0. 8 8 % 6 , 6 9 1 , 1 9 8 . 6 2 22 , 9 3 1 . 8 7 6. 6 1 % ( 1 1 , 0 8 7 . 8 6 ) AA Aa21.701.71 To t a l P o r t f o l i o 0. 6 8 % 1 0 0 , 8 5 3 , 05 5 . 6 2 1 0 1 , 2 4 3 , 6 9 0 . 5 5 1 0 1 , 0 1 5 , 9 1 3 . 9 5 0. 4 6 % 1 0 1 , 1 9 7 , 8 6 9 . 6 1 17 5 , 7 3 9 . 2 9 1 0 0 . 0 0 % 1 8 1 , 9 5 5 . 6 6 AA+1.010.98 To t a l M a r k e t V a l u e P l u s A c c r u e d 10 1 , 3 7 3 , 6 0 8 . 9 0 *G e n e r a l l y , P F M ’ s m a r k e t p r i c e s a r e d e r i v e d f r om c l o s i n g b i d p r i c e s a s o f t h e l a s t b u s i n e s s d a y o f t h e m o n t h a s s u p p l i e d b y I n t er a c t i v e D a t a , B l o o m b e r g o r T e l e r a t e . W h e r e p r i c e s a r e n o t a v a i l a b l e f r o m g e n e r a l l y r e c o g n i z e d s o u r c e s t h e se c u r i t i e s a r e p r i c e d us i n g a y i e l d - b a s e d m a t r ix s y s t e m t o a r r i v e at a n e s t i m a t e d m a r k e t v a l u e . Pr i c e s t h a t f a ll b e t w e e n d a t a p oi n t s a r e i n t e r p o l a t e d . N o n - n e g o t i a b l e FD I C - i n s u r e d b a n k c e r t i f i c a t e s o f d e p o s it are priced at par. Although PFM be l i e v e s t h e p r i c e s t o b e r e l i a b l e , t h e v a l u e s o f t h e s e c u r i t i e s d o n o t a l w a y s r e p r e s e n t t h e p r i c e s a t w h i c h t h e s e c u r i t i e s c o u ld h a v e b e e n b o u g h t o r s o l d . 22 Se c t i o n V . M o n t h l y T r a n s a c t i o n s For the Month Ending April 30, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 04/13/15 MICROSOFT CORP NOTE DTD 02/12/2015 1.850% 02/12/2020 594918AY0 (1,012,570.00)(3,134.72)(1,015,704.72) 1,000,000.00 04/08/15 04/13/15 US TREASURY NOTES DTD 01/03/2012 1.375% 12/31/2018 912828RY8 (606,070.31)(2,347.38)(608,417.69) 600,000.00 04/08/15 04/30/15 FNMA NOTES DTD 01/12/2015 1.625% 01/21/2020 3135G0A78 (1,274,889.50)(5,675.31)(1,280,564.81) 1,270,000.00 04/29/15 (11,157.41)(2,904,687.22)(2,893,529.81) 2,870,000.00 Transaction Type Sub-Total INTEREST 04/09/15 GENERAL ELECTRIC CO NOTES DTD 10/09/2012 0.850% 10/09/2015 369604BE2 0.00 2,975.00 2,975.00 700,000.00 04/09/15 04/11/15 WAL-MART STORES INC GLOBAL NOTES DTD 04/11/2013 0.600% 04/11/2016 931142DE0 0.00 2,100.00 2,100.00 700,000.00 04/11/15 04/15/15 US TREASURY NOTES DTD 04/15/2013 0.250% 04/15/2016 912828UW8 0.00 1,125.00 1,125.00 900,000.00 04/15/15 04/26/15 FANNIE MAE GLOBAL NOTES DTD 09/24/2012 0.875% 10/26/2017 3135G0PQ0 0.00 2,734.38 2,734.38 625,000.00 04/26/15 8,934.38 8,934.38 0.00 2,925,000.00 Transaction Type Sub-Total SELL 04/13/15 MICROSOFT CORP GLOBAL NOTES DTD 12/06/2013 1.625% 12/06/2018 594918AV6 609,930.00 3,439.58 613,369.58 9,852.00 9,864.65 SPEC LOT 600,000.00 04/08/15 04/13/15 US TREASURY NOTES DTD 12/31/2012 1.125% 12/31/2019 912828UF5 991,132.81 3,200.97 994,333.78 8,046.87 7,184.01 SPEC LOT 1,000,000.00 04/08/15 04/30/15 TENN VALLEY AUTHORITY GLOBAL NOTES DTD 06/21/2005 4.375% 06/15/2015 880591DY5 1,055,533.50 17,226.56 1,072,760.06 (112,852.95) 1,741.31 SPEC LOT 1,050,000.00 04/29/15 04/30/15 FFCB NOTES DTD 05/18/2011 1.600% 05/18/2015 31331KLE8 230,169.97 1,656.00 231,825.97 (2,532.53) 133.89 SPEC LOT 230,000.00 04/29/15 25,523.11 18,923.86 (97,486.61) 2,912,289.39 2,886,766.28 2,880,000.00 Transaction Type Sub-Total 23 For the Month Ending April 30, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/LRealized G/L Sale Amort Cost Method (6,763.53) 23,300.08 16,536.55 (97,486.61) 18,923.86 Managed Account Sub-Total Total Security Transactions ($97,486.61)$16,536.55 $23,300.08 ($6,763.53)$18,923.86 24 For the Month Ending May 31, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/LRealized G/L Sale Amort Cost Method BUY 05/15/15 FHLB GLOBAL NOTES DTD 05/15/2015 0.625% 05/30/2017 3130A5EP0 (514,572.55) 0.00 (514,572.55) 515,000.00 05/14/15 05/29/15 US TREASURY NOTES DTD 05/17/2010 3.500% 05/15/2020 912828ND8 (1,423,550.78)(1,730.98)(1,425,281.76) 1,300,000.00 05/28/15 (1,730.98)(1,939,854.31)(1,938,123.33) 1,815,000.00 Transaction Type Sub-Total INTEREST 05/03/15 APPLE INC GLOBAL NOTES DTD 05/03/2013 0.450% 05/03/2016 037833AH3 0.00 1,575.00 1,575.00 700,000.00 05/03/15 05/12/15 FHLMC NOTES DTD 03/26/2012 1.250% 05/12/2017 3137EADF3 0.00 3,125.00 3,125.00 500,000.00 05/12/15 05/15/15 US TREASURY NOTES DTD 05/15/2013 0.250% 05/15/2016 912828VC1 0.00 875.00 875.00 700,000.00 05/15/15 05/15/15 FANNIE MAE NOTES DTD 10/20/2011 1.375% 11/15/2016 3135G0ES8 0.00 6,771.88 6,771.88 985,000.00 05/15/15 05/15/15 BERKSHIRE HATHAWAY FIN GLOBAL NOTES DTD 05/15/2012 1.600% 05/15/2017 084664BS9 0.00 5,600.00 5,600.00 700,000.00 05/15/15 05/15/15 JOHNSON & JOHNSON GLOBAL NOTE DTD 05/20/2011 2.150% 05/15/2016 478160AY0 0.00 7,256.25 7,256.25 675,000.00 05/15/15 05/16/15 FFCB NOTES DTD 11/15/2010 1.500% 11/16/2015 31331J2S1 0.00 3,015.00 3,015.00 402,000.00 05/16/15 05/19/15 GOOGLE INC GLOBAL NOTES DTD 05/19/2011 2.125% 05/19/2016 38259PAC6 0.00 5,556.88 5,556.88 523,000.00 05/19/15 05/20/15 FEDERAL HOME LOAN BANK GLOBAL NOTES DTD 08/23/2012 0.500% 11/20/2015 313380L96 0.00 1,750.00 1,750.00 700,000.00 05/20/15 05/21/15 FANNIE MAE GLOBAL NOTES DTD 04/15/2013 0.875% 05/21/2018 3135G0WJ8 0.00 4,046.88 4,046.88 925,000.00 05/21/15 05/23/15 FNMA NOTES (EX-CALLABLE) DTD 11/23/2010 2.050% 05/23/2017 3136FPYB7 0.00 3,741.25 3,741.25 365,000.00 05/23/15 05/23/15 FHLB NOTES DTD 11/17/2014 0.625% 11/23/2016 3130A3J70 0.00 1,614.58 1,614.58 500,000.00 05/23/15 25 For the Month Ending May 31, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 05/30/15 FREDDIE MAC NOTES DTD 04/16/2012 1.750% 05/30/2019 3137EADG1 0.00 7,875.00 7,875.00 900,000.00 05/30/15 05/30/15 FHLB GLOBAL NOTES DTD 05/15/2015 0.625% 05/30/2017 3130A5EP0 0.00 134.11 134.11 515,000.00 05/30/15 05/31/15 US TREASURY NOTES DTD 05/31/2012 0.625% 05/31/2017 912828SY7 0.00 421.88 421.88 135,000.00 05/31/15 05/31/15 US TREASURY NOTES DTD 11/30/2010 1.375% 11/30/2015 912828PJ3 0.00 7,253.13 7,253.13 1,055,000.00 05/31/15 60,611.84 60,611.84 0.00 10,280,000.00 Transaction Type Sub-Total SELL 05/15/15 US TREASURY NOTES DTD 05/31/2012 0.625% 05/31/2017 912828SY7 515,181.05 1,467.89 516,648.94 159.21 169.84 SPEC LOT 515,000.00 05/14/15 05/29/15 US TREASURY NOTES DTD 08/02/2010 1.750% 07/31/2015 912828NP1 501,484.38 2,852.21 504,336.59 4,842.08 1,624.91 SPEC LOT 500,000.00 05/28/15 05/29/15 US TREASURY NOTES DTD 08/02/2010 1.750% 07/31/2015 912828NP1 50,148.44 285.22 50,433.66 484.21 162.49 SPEC LOT 50,000.00 05/29/15 05/29/15 FHLB NOTES DTD 03/11/2011 2.125% 06/30/2015 313372XB5 400,703.20 3,518.06 404,221.26 (9,408.80) 484.83 SPEC LOT 400,000.00 05/29/15 8,123.38 2,442.07 (3,923.30) 1,475,640.45 1,467,517.07 1,465,000.00 Transaction Type Sub-Total (470,606.26) 67,004.24 (403,602.02)(3,923.30) 2,442.07 Managed Account Sub-Total Total Security Transactions ($3,923.30)($403,602.02)$67,004.24 ($470,606.26)$2,442.07 26 For the Month Ending June 30, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/LRealized G/L Sale Amort Cost Method BUY 06/29/15 FNMA NOTES DTD 01/12/2015 1.625% 01/21/2020 3135G0A78 (697,298.00)(4,992.36)(702,290.36) 700,000.00 06/25/15 (4,992.36)(702,290.36)(697,298.00) 700,000.00 Transaction Type Sub-Total INTEREST 06/05/15 CHEVRON CORP (CALLABLE) GLOBAL NOTES DTD 12/05/2012 1.104% 12/05/2017 166764AA8 0.00 3,864.00 3,864.00 700,000.00 06/05/15 06/20/15 FNMA NOTES DTD 05/12/2014 1.750% 06/20/2019 3135G0ZE6 0.00 4,375.00 4,375.00 500,000.00 06/20/15 06/20/15 FNMA NOTES DTD 05/12/2014 1.750% 06/20/2019 3135G0ZE6 0.00 875.00 875.00 100,000.00 06/20/15 06/20/15 FNMA NOTES DTD 05/12/2014 1.750% 06/20/2019 3135G0ZE6 0.00 3,062.50 3,062.50 350,000.00 06/20/15 06/21/15 FEDERAL HOME LOAN BANK GLOBAL NOTES DTD 05/04/2012 1.000% 06/21/2017 313379DD8 0.00 3,500.00 3,500.00 700,000.00 06/21/15 06/22/15 FFCB NOTES DTD 12/22/2010 2.350% 12/22/2015 31331J6C2 0.00 6,815.00 6,815.00 580,000.00 06/22/15 06/29/15 FREDDIE MAC GLOBAL NOTES DTD 05/14/2012 1.000% 06/29/2017 3137EADH9 0.00 3,875.00 3,875.00 775,000.00 06/29/15 06/29/15 FREDDIE MAC GLOBAL NOTES DTD 05/14/2012 1.000% 06/29/2017 3137EADH9 0.00 675.00 675.00 135,000.00 06/29/15 06/30/15 US TREASURY NOTES DTD 01/03/2012 1.375% 12/31/2018 912828RY8 0.00 4,125.00 4,125.00 600,000.00 06/30/15 06/30/15 US TREASURY NOTES DTD 07/02/2012 0.750% 06/30/2017 912828TB6 0.00 2,156.25 2,156.25 575,000.00 06/30/15 06/30/15 US TREASURY NOTES DTD 12/31/2012 1.125% 12/31/2019 912828UF5 0.00 4,359.38 4,359.38 775,000.00 06/30/15 06/30/15 US TREASURY NOTES DTD 12/31/2012 0.750% 12/31/2017 912828UE8 0.00 2,343.75 2,343.75 625,000.00 06/30/15 06/30/15 US TREASURY NOTES DTD 01/03/2012 1.375% 12/31/2018 912828RY8 0.00 3,437.50 3,437.50 500,000.00 06/30/15 27 For the Month Ending June 30, 2015Managed Account Security Transactions & Interest CITY OF SAN LUIS OBISPO OPERATING FUNDS Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/LRealized G/L Sale Amort Cost Method INTEREST 06/30/15 US TREASURY NOTES DTD 01/03/2012 1.375% 12/31/2018 912828RY8 0.00 6,875.00 6,875.00 1,000,000.00 06/30/15 50,338.38 50,338.38 0.00 7,915,000.00 Transaction Type Sub-Total SELL 06/29/15 CHEVRON CORP (CALLABLE) GLOBAL NOTES DTD 12/05/2012 1.104% 12/05/2017 166764AA8 696,703.00 515.20 697,218.20 (5,739.00)(4,504.23)SPEC LOT 700,000.00 06/25/15 515.20 (4,504.23)(5,739.00) 697,218.20 696,703.00 700,000.00 Transaction Type Sub-Total (595.00) 45,861.22 45,266.22 (5,739.00)(4,504.23)Managed Account Sub-Total Total Security Transactions ($5,739.00)$45,266.22 $45,861.22 ($595.00)($4,504.23) 28