HomeMy WebLinkAbout2011 02 14 Informational 102 PFM Asset Management LLC Investment Report First Quarter Fiscal Year 2011 COMMISSION AGENDA
CONSENT
INFORMATIONAL X
ITEM 102 PUBLIC HEARING
REGULAR
February 14, 2011 MGR /DEPT
Meeting Authorization
REQUEST: The City Manager and Finance Department providing the Investment Report
for the first quarter of fiscal year 2011 (quarter ending December 31, 2010) as prepared by
PFM Asset Management LLC.
SYNOPSIS:
Distribution of the investment report for the quarter- ending December 31, 2010.
CONSIDERATIONS:
The General City Account portfolio is of high credit quality and maintains adequate liquidity.
The portfolio is invested entirely in Federal Agency, U.S. Treasury and FDIC guaranteed
corporate securities. The securities are allocated among high quality issuers rated AAA. PFM's
attached report provides additional information regarding the City's investment position at
December 31, 2010.
FISCAL IMPACT:
The weighted average yield at December 31, 2010 is .54 %. The weighted average yield at
September 30, 2010 was 0.71 %. This portfolio has an average maturity of less than one year.
COMMUNICATION EFFORTS:
This Agenda Item has been forwarded to the Mayor and City Commission; City Manager; City
Attorney /Staff; placed in Press Packets; placed in the City Hall (Lobby) City Commission
Meeting binder; and is available on the City's Website, LaserFiche, and the City's Server.
Additionally, information related to this Agenda Item has been sent to media /press
representatives who have requested Agendas /Agenda Item information, all Homeowner's
Associations on file with the City, all individuals who have requested Agendas /Agenda Item
information, Department Directors; and also posted outside City Hall; posted inside City Hall
with additional copies available for the general public; and posted at five (5) different locations
around the City.
Furthermore, the following has also been completed to further communicate the information in
this Agenda Item:
The investment report will be posted to the website within a week of acceptance.
RECOMMENDATION:
Staff requests the City Commission to review and accept the information provided in this
Agenda Item.
ATTACHMENTS:
Investment Report for quarter- ending December 31, 2010
021411_COMM_ Informational_ 102 _1s`Qtr_FY11_InvestmentReport
City of Winter Springs
Investment Performance Review
Quarter Ended December 31, 2010
S
6
Investment Advisors PFM Asset Management LLC
Steven Alexander, CTP, CGFO, Managing Director 300 S. Orange Avenue, Suite 1170 One Keystone Plaza, Suite 300
Mel Hamilton, Senior Managing Consultant Orlando, FL 32801 North Front & Market Streets
David Jang, CTP, Senior Managing Consultant (407) 648 -2208 Harrisburg, PA 17101 -2044
Gregg Manjerovic, CFA, Portfolio Manager (407) 648 -1323 fax 717 - 232 -2723
Rebecca Dole, CTP, Consultant 717- 233 -6073 fax
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
Table of Contents
Tab 1.
Section A Market Review
Tab 11.
Section B Executive Summary and General City Account Portfolio Performance
Section C Asset Allocation Chart
Tab 111. December 31, 2010 PFM Month -End Statement
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 recommendation. The information
contained in this report is not an offer to purchase or sell any securities.
Table of Contents Section i
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
TAB I
City of Winter Springs Investment Report-. Quarter Ended December 31, 2010
A sharp mid- quarter interest rate reversal drove intermediate- and long- ending the quarter at 0.59 %. The 17 basis point increase is the greatest
term interest rates higher, ending a seven -month trend of lower rates. As a quarter- over - quarter change in a year. As illustrated in the following
result longer- duration fixed income portfolios posted negative returns for table, yields on intermediate- and long -term U.S. Treasuries also
the fourth quarter, but over the full year they out - performed cash increased. Short-term rates remained anchored to the Federal Funds target
investments by significant margins. In the quarter, corporate and Federal range of 0.00% to 0.25 %.
Agency securities outperformed comparable U.S. Treasuries and had a Summary of U.S. Treasury Security Yields
positive effect on accounts that held these investments.
e The market - reversal followed the early November announcement by the I)9t sNi 11 21 3' 51 101
Federal Reserve of a plan to purchase up to $600 billion of U.S. Treasury December 31, 2010 0.12 % 0.18% 0.26% 0.59% 0.99% 2.01% 3.29%
securities through June 2011 via a second round of Quantitative Easing September 30, 2010 0 15% 0 19% 0 25% 0 42% 0.63% _1.26%_2.51%
( "QE2 "). Quantitative easing is a form of monetary policy in which a Chan eover, urrrter z a � " � % X 0'36% , 015% 0 %% •
central bank attempts to keep yields low by creating money to purchase
December 31, 2009 0.05% 0.19% 0.44% 1.14% 1.68% 2.68% 3 84%
fixed income securities, thereby decreasing the supply of such securities.
Chan a t� `eut 0 ^ 07% s0 O1°% 0 18% 0 55% =0 69% 067% .0 55%
In the weeks leading up to the Federal Reserve's decision to implement 8 a _ .
QE2, investors began aggressively purchasing U.S. Treasuries in an Source data: Bloomberg
attempt to front -run the announcement, causing U.S. Treasury prices to As illustrated in the following chart, even with the back -up, 2 -year U.S.
increase sharply. Following the Fed's official announcement of QE2,
yields across all sectors (corporate, municipal, U.S. Treasury, and Federal Treasury yields remain below year -to -date highs set last January and
Agency) actually increased due to a combination of positive economic April but have increased significantly since hitting record lows in
data and increased expectations for growth and future inflation. November of 2010.
U.S. interest rate movements were paralleled in Europe where the 2 U.S. Treasury Note Yield
European Central Bank (ECB) acted to alleviate sovereign debt concerns January 1, 2009 through December 31, 2010
1.50%
by purchasing Greek, Irish, and Portuguese bonds in addition to other
euro- region government and corporate bonds. Since the program's 1.25%
inception in May 2010, the ECB purchased over €72.5 billion ($95.5 1.00%
billion) of European sovereign debt. Quarter- over - quarter, the yield on
10 -year German Bunds increased by over 65 basis points while yields on 0.75%
10 -year bonds issued by the French government increased by 64 basis o.so °i°
points. Concerns over possible default by Ireland from earlier in the
quarter dissipated after Ireland accepted an €85 billion ($112 billion) o.25%
bailout package from the European Union and International Monetary
Fund. Such actions combined to boost global investor optimism and push 0.00%
interest rates higher.
Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10
Interest Rates and Returns Source data: Bloomberg
The yield on 2 -year U.S. Treasury notes, which is influenced by overnight
Intra - quarter volatility was high as 2 -year U.S. Treasuries hit a record low rates, increased less than 10 -year U.S. Treasury notes, which is more
of 0.33% on November 12 before peaking to 0.73% on December 29 and
PFM Asset Management LLC Section A -1
City of Winter Springs Livestment Report — Quarter Ended December 31, 2010
affected by inflation and growth expectations. As illustrated in the chart benchmark was 3.80 years, more than twice that of the 1- to 3 -year U.S.
below, the steepness of the U.S. Treasury yield curve, measured as the Treasury benchmark with a duration of 1.85 years.
spread between 2- and 10 -year U.S. Treasuries, reached record highs in
December 2010. As of December 31, the spread was 270 basis points. A Total Returns of Merrill Lynch U.S. Treasury Indices
steeper yield curve generally signals that the pace of economic growth Quarterly and 12 -Month Total Return as of December 31, 2010
and/or future inflation will increase.
U.S. Treasury Yields and Yield Curve Steepness 7%
December 2000 to December 2010 6% 5,.69%n ..........
7% -. 3.0% 5%
6 % x 2.4% 4% 361.. °!0
4 , , 3%
-'r 2.35%
5%
t � � � t "�. 1
` „ s� ,4 � , 2% 3, h
. j 4% r 0 w ' 1.2% o Q.13. °!0
�' ° -� 1a�a w,,,,.;,1 � o G 0 0.04 %, m sr _
3 gi. i� a� ` � 0.6/0 0%
IAA ak a 2� d ffi r^ r� - $ - 0.15%
Vie: ' ,. sR " o -1% - 6.67
- 2% - 1•.55% .......................
1% - - -0.6% 3mo 1 -3yr 1 -5yr 3 -5yr
0% r -1.2%
• Quarter 1 Year
Dec 00 Dec 02 Dec 04 Dec 06 Dec 08 Dec 10 Source data: Bank of America Merrill Lynch; Bloomberg
c...;;;. Spread (Right Axis) 2 -Year TSY 10 -Year TSY Federal Agency and corporate securities out - performed comparable
Treasuries. Spreads between U.S. Treasuries and Federal Agencies
Source data: Bloomberg generally widened for longer maturities, but remained narrow by historical
In 2010, portfolios with longer durations outperformed shorter portfolios standards. The 10 -year average spread between 2 -year U.S Treasuries and
as a result of declining interest rates. Even with negative returns for the Federal Agencies has been 0.35 %, while they are currently at 0.15 %.
fourth quarter, 1 to 3 -year U.S. Treasuries returned 2.35% for the year, Spreads on 10 -year obligations have historically traded at 0.50% and they
which is significantly above bank deposits and money market funds with are currently at 0.30 %.
yields near zero. Spreads between U.S. Treasuries and corporate securities remained
generally unchanged on the short end of the curve and slightly tightened
Portfolios with longer durations have more price sensitivity to changes in on the long end of the curve. As shown in the chart on the next page, on a
interest rates than do shorter duration portfolios; thus the 3- to 5 -year U.S. duration - adjusted basis, corporate benchmarks outperformed both Federal
Treasury benchmark returned -1.55% in the quarter ( -6.01% annualized)
and 5.69% for the year. The duration of the 3- to 5 -year U.S. Treasury
PFM Asset Management LLC Section A - 2
e Springs Investment —
City of Winter Sp gs tmc. Report Quarter Ended December 31, 2010
Agency and U.S. Treasury benchmarks as a result of the higher income averages. The Case - Shiller Home -Price Index continued to show falling
generated by corporate securities. home prices, and building permits remained disappointing throughout the
quarter.
Duration Adjusted Returns of Merrill Lynch 1 - 3 Year Indices
Quarterly and 12 - Month Total Return as of December 31, 2010 While the unemployment rate remains elevated, there have been some
positive developments in the labor market. December's initial jobless
5% claims number of 388,000 was the lowest level since July 2008, while
3.96% both the 3- and 6 -month moving averages for initial jobless claims appear
4% to show a downward trend from mid -2010 plateaus as illustrated in the
accompanying chart. Continuing jobless claims also demonstrate a similar
3%
2.35% 2.36% downward trend.
2% Initial Jobless Claims, Thousands
Current vs. 3 -Month Moving Average vs. 6 -Month Moving Average
1% " "' "' ° ° "' January 1, 2009 to December 31, 2010
-0.15% -0.09% 0.11 %
0% 700
U.S. Treasury Federal Agency AA/AAA Corporate 600 ,y. r °
-1% '� • 1�
Current Quarter • Past 12 Months 500
Source data: Bank of America Merrill Lynch; Bloomberg
Duration - adjusted return incorporates an adjustment to the market value return 400
(but not the income return) of each benchmark to account for their varied 300
durations, making it easier for investors to assess the relative risk and return of
benchmarks of different lengths.
200
Improving credit and stable spreads led us generally to increase corporate
100
holdings to take advantage of the incremental yield offered on highly -
rated issuers. We will remain cautious with regard to issuer concentration -
due to continued expectations of high volatility and uncertainty Jan 09 Apr 09 Jul 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10
surrounding the pace of economic recovery; which may impact credit
spreads. — — 6 -month Moving Average — • — 3 -month Moving Average Current Reading
Economic Outlook Source data: Bloomberg
However, the consumer remains strained as personal income and personal
Economic data indicated some signs of improvement in the fourth spending showed only marginal improvements in the fourth quarter. For
quarter. GDP appeared to accelerate towards the end of the year. the year, over 1.5 million Americans filed for personal bankruptcy, which
The housing sector remained weak and continues to be a drag on the represents a 9% increase from 2009.
economy. Housing starts remained at depressed levels throughout the Economists generally expect that the passing of the Tax Relief,
quarter and new home sales remain well below 15 -year historical Unemployment Insurance Reauthorization, and Job Creation Act of 2010
PFM Asset Management LLC Section A - 3
City of Winter Springs Investment Report — Quarter Ended December 31, 2010
in December will give the economy a boost over the next year. Included
in the legislation was an extension of the Bush -era tax cuts and reduction
of the FICA payroll tax, both of which are designed to spur growth via
additional consumer spending. The bill also included an extension of
federal unemployment benefits. The fiscal impact is about equal to that of
the American Recovery and Reinvestment Act, though the emphasis is on
boosting consumer spending, whereas the first stimulus program
contained large federal construction and state and local government aid
programs.
The pace of manufacturing activity continued to accelerate as evidenced
by strong Philadelphia Fed and ISM Manufacturing numbers. Capacity
utilization, which measures the relationship between actual output and
potential output, continued to increase but remains significantly below
pre - financial crisis levels.
Gold reached record highs in December and finished up 29.67% for the
year, while oil traded above $91 per barrel for the first time since October
2008. The S &P 500 reached 2 -year highs in December and ended the year
up 15.06 %.
Investment Stratesv
With the prospect for higher rates ahead, investors are faced with the
choice of keeping money in cash for a future chance to invest at higher
rates or investing now to take advantage of the positively sloped yield
curve. Our view is that short-term rates will remain low for the
foreseeable future as the Fed keeps its easy money bias in place, and that
this presents an opportunity for a return that exceeds the near -zero rate on
cash. The economic recovery will take some time to accelerate to the
point where unemployment falls to acceptable levels and /or inflation
takes hold. Meanwhile we plan to continue to take advantage of the
sharply - sloped yield curve. We also expect to continue to add corporate
exposure where permitted to take advantage of incremental yield versus
U.S. Treasuries. We remain cautious m executing this strategy because
we recognize that with rates not far from historic lows there is more room
for them to widen than narrow from here.
PFM Asset Management LLC Section A - 4
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
TAB II
•
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
Executive Summary
<�, „;- s r- ,,,, . 3 w Ns:s * F ... .'. Ir�� -r x '� a ,� a�.k ' �3ek a a
PORTFOLIO STRATEGY
a x . ...... ..,. - ? �` 3rM ... �:� ��;a h�?,��?i'ix �.'��..,_�re'�n. "�4�,.n...'�'"�'��r.','3� �-$r.r
➢ The City's General City Account Portfolio is of high credit quality and maintains adequate liquidity. The portfolio is invested entirely in
Federal Agency, U.S. Treasury, and FDIC guaranteed corporate securities. The securities in the portfolio are allocated among high
quality issuers rated AAA.
➢ Intermediate -term Treasury yields declined to record lows over the quarter. Two -year U.S. Treasury rates closed at 0.33% in early
November, spurred by the announcement of a second round of quantitative easing ( "QE2 ") by the Federal Reserve at its November 3`
FOMC meeting. The Fed called for an additional $600 billion in longer -term Treasury purchases through June 2011 in an attempt to
reduce corporate, consumer, and mortgage borrowing rates, thus stimulating economic growth through corporate investment and
support for the housing sector. By the end of the fourth quarter of 2010, the Fed had purchased nearly $168 billion in Treasury
securities.
➢ By the end of the quarter, intermediate -term yields increased sharply from record lows in early November, but remained well below long-
term historical averages. The yield increases were due in part to increased inflation expectations as a result of QE2, as well as the
extension of the Bush -era tax cuts, which will add an additional $858 billion to the economy over two years. The two -year U.S. Treasury
yield ended the quarter at 0.59 %, closing 0.17% higher than it opened.
➢ Overall economic conditions appear to be improving. For example, third quarter GDP was 2.6 %, a substantial improvement over
second quarter GDP. However this level of growth remains insufficient to impact the problematically high unemployment rate.
Nonetheless, the unemployment rate was 9.4% in December, the lowest reading of the year. At the same time, the number of
discouraged workers hit a record high 3.1 million — these workers are not counted in the headline unemployment rate.
➢ The General City Account Portfolio continues to provide the City with favorable yield relative to the benchmark. At quarter end the
portfolio had a Yield to Maturity at Cost of 1.07 %, exceeding the Yield to Maturity of its benchmark the Merrill Lynch 6 Month U.S.
Treasury Bill Index by 92 basis points (0.92 %).
➢ PFM will continue to follow the prudent investment strategies that have safely provided the City with favorable yield and maintained
adequate liquidity during this period of significant market and economic turmoil.
PFM Asset Management LLC Section B -
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
The City's Investment Statistics
Amowllxed Cpltit 1. Amortized Cost's Niirketlfiliti! Market Values' ' ° ttatlpft (1�eare)
Account Name ' ljeCemb# *1 �01wi 1 September 30. 2010 1 be00111Bbl' $1 t September 30. 2010 b& x '3 1 2 010I
General City Account Portfolio i,[8 0A1 ' $16,253,670. �� °I2 &16,319,617.28 F (`0 St
Fidelity Institutional Money Market Fund Govemment Portfolio (Fund #257) � " 8 ,9'ir2'ti e3 23 4 2,809,471 , , $f! t � 2 ,809,471 47 k � 03� P `�"
Money Market Fund - State Board of Administration Pool A r t >s,> 1000615 4.06 F ' . 4.06 F :10 i1 �
Money Market Fund -State Board of Administration Pool B 019 $# 782,763.06 �, d i 0if , 782,763 06 , nu gay
Bank of America Cash for Operation - depository � � 8 2 2 23 s 3,537,881.75 y , 3,537,881 75 ,� ' ' ,
# .rr #' ^4bj' V. 1'u' ii T E
Water & Sewer 2000 - Fidelity Institutional Money Market Fund Government Portfolio (Account #364) x tlhfiOaril 716,566.48 � a 716,566 481 1 >#
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool A A300 49 0.11 1 30)144 0 :. 4
Water & Sewer 2000 - Money Market Fund - S Board of Administration Pool B 0itle 5 , 22,717.86 ' 084t$5 22,71788 � U14 r
Water & Sewer Series 1992 Refundin r Revenue Reserve - BONY ii":"4 :0$ i 1,305,069.93 "k 0 01 ,,a99.1 1 305,069.9301
05,069 93 Iiii4,011101
Total „. 1 tS10 $25 , 428 , 1 45.58 ft:11224810,084128iit $25,494,092.00 R
Y i e ld tts F A if u r ity Yield to Maturi 'IT:11Mtilittitlitittirityitr Yield to Maturity
It 0>t; xfa on Cost' gAi:: at Market Duration (Years)
Account Name kipitietkiibet 31s 11110 September 30, 2010 pe _,° September 30. 2010 September 30. 2010
General City 's' , # s 1 ' ' a ri
ty Account Portfolio er4 , °” 0# tl h 1.05% i 0.30% 0.54
Fidelity Institutional Money Market Fund Govemment Portfolio (Fund #257) ' 0 01 0.01 % a rx Tit ''r 0.01% 0.003
Money Market Fund - State Board of Administration Pool A z Oe2Tk 0.32% ; , ,41 0.32% 52 Days
Money Market Fund - State Board of Administration Pool B O0 0.00% 00 svam 0.00% N/A
Bank of America Cash for Operation - depository vow 0 ti 441 . 0 . ° / 4' $ 30 r ? t i 0.30% 0.003
Water & Sewer 2000 - Fidelity Institutional Money Market Fund Govemment Portfolio (Account #364) 3' : r '..001 £ / 0.01 % 7 0,0i% f1,, , x 0.01 % 0.003
g '* ' � .
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool A k 0 3 I RFt, _ 0.32% N a 0 $ 0.32% 52 Days
l ' '", �
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool B , 00i0i k "" 0 0.00% M 00ai b 1 0.00% N/A
Water & Sewer Series 1992 Refundin! Revenue Reserve - BONY IT ..0,21 :- i?' 3 <� 0.00% 0 ` 0 0 .003
Wei rhiedAverareYield 1 == 0.71% e' "0Y 0.24%
Benchmarks ecairibi 31, 2010) September 30. 2010
Merrill Lynch 6 Month U.S. Treasury Bill Index' ' 4 0 153 i 0.15%
Note.;
1. On a trade -date bads, Including accrued interest
2. In order to comply with GASB scowl eccountlng reporting requirement.; forwerd settling trades are Included In the monthly balances.
3. Excludes any money market fundca.h balances held In custodian account.
4. Pest performance la not Indicative of future results.
5. Source Bloomberg.
PFM Asset Management LLC Section B - 2
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
General City Account Portfolio Composition and Credit Quality Characteristics
�. 3 %
Security Type' . +# .° o Pt�rtl1t0 F September 30, 2010 /o of Portfolio
9; s Air?- : 1' ; 12.k- x a .
U.S. Treasuries ' $2,618,551.28 16.05%
Federal Agencies if : '� � `�_
g M" 6 a � 9,166,601.33 56.17%
Commercial Paper :� ra w + o+ , „ g ' f tli.i0� 0.00 0.00%
4 k ; Sl at
Certificates of Deposit r + i +,b ! 0.00 0.00%
Bankers Acceptances . ,4 +.0+ ii 0' 0.00 0.00%
Repurchase Agreements „� ti. + +E' ii 0.00 0.00%
Municipal Obligations @ + + , $ 8 + + #425 0.00 0.00%
Corporate Notes /Bonds + Obi 4 + 11% 0.00 0.00% .44 Corporate Notes /Bonds - FDIC Insured i + c + : )414. k 4,534,464.67 27.79%
Mortgage Backed + + + , � 6�OOV6 45 0.00 0.00%
Money Market Fund /Cash + + +t IIo l V 0.00 0,00%
Totals i1 3 :�:g1'�� .: X 1101 °Ia $16,319,617.28 100.00%
Portfolio Composition Credit Quality Distribution
as of 12/31/10 as of 12/31/10
U.S.
Treasuries ���
20% - �� Federal , `
a� � � Agency AAA '�� Y 0 r a
�� Obligations 80% l ' q� �
57%
g� e saw ' ^ �' - a�i 2 F
3 4
i • bF swT O sflv h
w, , . ,. TSY
Corporate 20%
Notes /Bonds -
FDIC Insured
23%
Notes:
1. End of quarter trade -date market values of portfolio holdings, including accrued interest.
2. Credit rating of securities held in portfolio, exclusive of money market fund.
3. A rating of "TSY" indicates the security Is an obligation of, or explicitly guaranteed by the U. S. Government.
Section B - 3
PFM Asset Management LLC
City of Winter Springs Investment Report - Quarter Ended December 31, 2010
General City Account Portfolio Maturity Distribution
Maturity Distribution' De tt b 1 2040 September 30, 2010
Ovemight (Money Market Fund) ,P �1 $0.00
Under 6 Months Q 5 $ , 10,575,963.08
6 - 12 Monthsrr : E 3,116,285.94
1- 2 Years Q � r 2,627,368.26
2 - 3 Years y F: + Il 0.00
PAWCIAPOWANINtA 441
3 - 4 Years , V a A4O 0.00
4 - 5 Years Ale 4A + . QO, 0.00
�4
5 Years and Over ri + OO 0.00
Totals ;a -$43 '138 871;:31 ^` $16,319,617.28
Portfolio Maturity Distribution'
90% -
80% o December 31, 2010
80% -
September 30, 2010
70% - : On 65%
eg
660% -
t
o 50%
40%
H 30% - 4 f7 i
° :� % 19% 16%
o 20 /o �'
r , k 10% 10%
P 10% 0% 0% -, ,, 0% 0% 0% 0% 0% 0% 0% 0
. 0% 0% 0% 0% 0% 0% 0% 0%
a 0% �_-,; z t
Overnight Under 6 Months 6 -12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5 Years and Over
Notes:
1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.
PFM Asset Management LLC Section B - 4
1
of Winter Springs, Florida'
tY Asset Allocation as of December 31, 2010*
security Typa ' pitlaiiiiiifii (ifd " Or!i iii, I QO�q„ Notes Pannlltad by Pol cy Asset Allocation ,
City
States Treasury Securities' ( ' 100% as of December 31, 2010
United States Government Agency Secudtles f� 75%
, , q r Corporate Notes - FDIC
roll Instrumentalities gSa ,y,,,�,? SOX Federal Instrumentalities Insured Insured Fede
Csrtlflcafea of Deposit ' r > > 25%
25.74%
10.39Y.
a. tea" 0 '' .! "
Repurchase Agreements adz : "� , 50%
-' - - Money Market Mutual Funds
G mmerdal Paper a i ` r q 30% 26.4l /
0 fi �'f , Vag,: s
Corporate Notes - FDICinsured } 50%
' "
Mortgage-Backed Securities �'�" p% m
Bankers' Acceptances t 0 (_ 0 6bti �it gl 30% United Steles Treasury • State and/or Local Government Debt (GO and Revenue �"° IF
Securities
( ). :. , � , u ;t ,„ � q F�� 20% 8.9G'/.
Money Market Mutual Funds ?M r g 00@ni .�i 7 #1 2 100%
i Bank of America Cash for
Intergovernmental Investment Pool
a r " -� ,�0 r `" 25% Operation
�., " 28.50/
Bank of America Cash for Operation a,,4 ESN � l ,,, et , 2 100%
di
Individual Issuer Breakdown
';plfis il5�i'801 sg1Q ;u.pigaglbif It2q� ,Notes Permitted by Polley Individual Issuer Breakdown y_Didlr7nb 13x0114 -1200ti(itbi)W 1i2010:gi:' Notes Permitted by Polley
Government National Mortgage Acsodetlon (GNMA) I -gil ft 0 0(P#, 50% CD - Bank A p : y '� __ f 3 ' rq 0 c- 15%
US Export-Import Bank (Exdm) '"" �' , gd0yi, �, �s; 50% CD -Bank B t"" ' y , 01,0 r 3 �h ait sill n - as ,. 15%
Farmers Horns Administretlon (FMHA) g q 01� 50% Fully collateralized Repo - A �" �' +# ",g0rli 25%
Federal Financing Bank ; t �W t 7. ' x 0 . S0% Fu collateralized Repo a + �' �' a �
s; ,, Ay po -B 512 3"
i k �i s 0�N�1 25%
Federal Housing AdmnlstraUon (FHA) - r .� r.` , 50% CP A aa... , .> '� &1. 4..0 10%
General Services Administration j '�. �' ,, ' ' ` 0 x. «� ,. 50% CP B `) f. r r 10%
� 0
New Communities Act Debentures l I fie eg 3 ''" - 50%
General Electric Corporate Notes -FDIC Insured' y $ 1 , '° 25%
US Pubic Housing Notes & Bonds c ;r - 3 80% JP Morgan Chase Corporate Notes -FDIC Insured r r Q q++ 1 3 � '€ 25%
US Dept. of Housing and Urban Development 3l l � i '� t .�: 50% Corporate Notes -FDIC Insured C +: ill!% x 25%
Federal Fann Credit Bank (FFCB) r� xd 4' 4 1 25% Corporate Notes -FDIC Insured 0 r r d , 0 } 00m 3 1 25%
Federal Home Loan Bank (FHLB) Z i' 25% Corporate Notes -FDIC insured E ) � � ..� z ,�k 25%
Federal National Mortgage Association (FNMA) s y lf{ ; 1Q%
' ¢6 25% BA BenkA '' �y.�,Y 3r
Federal Home Loan Mortgage Coryoretlon (FHLMC) 3; r ,r � f - ��11TT� ;;� 25% BA Bank!, `v i,, ! � , 0 bo .f a ' /. 10%
Student Loan Marketing Aesodatlon (SLMA) - 0.z;.' * 25X BA Bank C ' � '� "� � � - R' 10%
Municipal Notes/Bonds
ilaill s 00% 'r' 20%
Fidelity Inatltutlonal Money Market Fund Government Portfolio (Fund #257) 3 6)y$it'f r q � i'.;' 4 �.,. 2 4 25X
•
Money Market Fund - State Board of Administration 7 c.3i` S 2 50% 2 26%
Nor..:
1. Doss owa rd. bonderoo.d..
2. M.np.d by m. City.
3. End of month Cud.dNe an,000.d MM of porsoto Poking.. bdueno.nu.d FM
rar..
4. The City h In the e proem of moving funds to • mo n 1p.1 now.xwnt a
PFM Asset Management LLC Section C - 1