HomeMy WebLinkAbout2013 02 25 Informational 101 1st Quarter Investment ReportCOMMISSION AGENDA
ITEM 101
February 25, 2013
Regular Meeting
Informational
X
Consent
Public Hearings
Regular
KS
SB
City Manager Department
REQUEST:
The City Manager and the Finance and Administrative Services Department providing the
Investment Report for the first quarter of Fiscal Year 2013 (quarter ending December 31,
2012) as prepared by PFM Asset Management LLC.
SYNOPSIS:
Distribution of the investment report for the first quarter of the 2013 fiscal year
(quarter- ending December 31, 2012).
CONSIDERATIONS:
The General City Account portfolio is of high credit quality and maintains adequate
liquidity. The portfolio is invested in Federal Agency, U.S. Treasury and commercial paper
securities. PFM's attached report provides additional information regarding the City's
investment position at December 31, 2012.
FISCAL IMPACT:
The weighted average yield at December 31, 2012 is .28 %. The weighted average yield
at September 30, 2012 was .33 %. The General Account portfolio has a duration of .94
years.
COMMUNICATION EFFORTS:
This Agenda Item has been electronically forwarded to the Mayor and City Commission,
City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and
the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the
Informational 101 PAGE 1 OF 2 - February 25, 2013
respective Meeting Agenda which has also been electronically forwarded to the individuals
noted above, and which is also available on the City's Website, LaserFiche, and the City's
Server; has been sent to applicable City Staff, Media/Press Representatives who have
requested Agendas /Agenda Item information, Homeowner's Associations/Representatives
on file with the City, and all individuals who have requested such information. This
information has also been 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, this information is also available to any individual requestors. City Staff
is always willing to discuss this Agenda Item or any Agenda Item with any interested
individuals.
Additionally, the investment report will be placed on the City's website within one week of
acceptance in the section titled Budgets and Financial Documents.
RECOMMENDATION:
Staff requests the City Commission receive and review the information provided in this
Agenda Item.
ATTACHMENTS:
Investment Report for quarter ending December 31, 2012
Informational 101 PAGE 2 OF 2 - February 25, 2013
City of Winter Springs, Florida
Investment Advisors
Investment Performance Review
Quarter Ended December 31, 2012
PFM Asset Management LLC
Steven Alexander, CTP, CGFO, Managing Director
D. Scott Stitcher, CFA, Senior Managing Consultant
Gregg Manjerovic, CFA, Portfolio Manager
Rebecca Geyer, CTP, Senior Analyst
One Keystone Plaza, Suite 300
North Front & Market Streets
Harrisburg, PA 1 71 01 -2044
717- 232 -2723 • 717- 233 -6073 fax
300 S. Orange Avenue, Suite 1170
Orlando, FL 32801
(407) 648 -2208
(407) 648 -1323 fax
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
Table of Contents
Tab I.
Section A Market Review
Tab II.
Section B Executive Summary and General City Account Portfolio Performance
Section C Asset Allocation Chart
Tab III. December 31, 2012 PFM Month -End Statement
(statements are available online at www.pfm.com)
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, Florida Investment Report - Quarter Ended December 31, 2012
TAB I
City of Winter Springs, Florida
Investment Report — Quarter Ended December 31, 2012
Summary
• In the fourth quarter, the markets were impacted by U.S. politics
and policies — particularly the presidential election, the Federal
Reserve's (Fed's) new round of quantitative easing (QE3), and fiscal
cliff negotiations.
• The U.S. housing market continued to show signs of improvement,
and the unemployment rate was unchanged for the quarter at 7.8 %.
• The domestic economy has seen modest growth over the past year,
and while the resolution of the fiscal cliff talks has relieved
investors, increasing the federal debt ceiling must now be
addressed.
Economic Snapshot
• New -home sales in the U.S. rose to their highest level in two- and -a-
half years in November, jumping 15.3% from a year earlier.
• The Consumer Price Index rose 1.8 %year- over -year in November
before seasonal adjustment. Wage increases have been subdued as
evidenced by the change in hourly earnings, which has averaged
less than 2% in recent months.
• Fourth quarter U.S. gross domestic product (GDP) growth is
expected to be in a range of 1% to 2 %, which is slower than GDP
growth experienced in the third quarter.
• Superstorm Sandy, which blew through the East Coast in October,
caused massive amounts of damage, closed the markets for two
days, and depressed economic activity across a third of the nation.
• Economic concerns about Europe somewhat subsided, which
pushed European stock markets higher. The MSCI Europe Index
rose 7.02% for the quarter.
Interest Rates
• Interest rates rose slightly during the quarter across most
maturities, while yield spreads on Agencies, corporates, and
mortgage- backed securities (MBS) remained narrow.
• Treasury yields fell in the first half of November, but then
moved higher as investors shifted assets into the rallying stock
market.
• The Fed announced that it will keep short -term rates at
extremely low levels until the unemployment rate falls below
6.5 %, and the prospect remains for long -run inflation to stay
below 2.5 %. The Fed also initiated further quantitative easing
with an open -ended program to buy $45 billion in Treasuries in
addition to its existing program to purchase $40 billion in
Agency mortgage- backed securities each month.
Sector Performance
• Returns of high - quality corporate bonds (especially financial
firms) performed well for the quarter, as these issuers
continued to be bolstered by global central bank support for
financial markets.
• The Fed's QE3 purchase program initially caused Agency MBS to
appreciate sharply in value, but that trend quickly reversed and
Agency MBS underperformed other fixed - income sectors for
the quarter.
• The performance of municipal bonds suffered in the fourth
quarter, as fiscal cliff negotiations about possible changes to the
tax code caused investors to sell positions.
• Reduced supply of Agencies kept spreads at historically narrow
levels; Agencies became relatively less attractive over the
quarter.
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC ( PFMAM) at the time of distribution and are subject
to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFMAM 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.
PFM Asset Management LLC
Section A -1
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
Economic Snapshot
Labor Market
Latest Sep 2012 Dec 2011
Unemployment Rate
Dec
7.8%
7.8%
8.5%
Change In Non -Farm Payrolls (month) Dec
155,000
132,000 223,000
Average Hourly Earnings (YoY)
Dec 2.1% 1.9% 2.1%
Personal Income (YoY)
Nov
4.1%
3.5%
3.6%
Initial Jobless Claims (Month)
Dec 28
372,000
369,000
383,000
Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
11.0% - Change in Nonfarm Payrolls 600K
Unemployment Rate
10.0%
9.0%
8.0%
7.0%
6.0%
��jII�III:�II I IIII
I
400K
200K
0
-200K
-400K
12/31/09 6/30/10 12/31/10 6/30/11 12/31/11 6/30/12 12/31/12
Growth
Real GDP (QoQ SAAR)
Q3
3.1%
1.3%
4.1%2
GDP Personal Consumption (QoQ SAAR) Q3
1.6%
1.5%
2
2.0%
Retail Sales (YoY)
Nov 3.7% 5.4% 6.8%
ISM Manufacturing Survey
Dec
50.7
Existing Home Sales (millions) - month
Nov
5.04
4.69
4.38
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Real GDP (QoQ)
I 1
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12
Inflation / Prices
Personal Consumption Expenditures (YoY) Nov
1.4%
1.6%
2.4%
Consumer Price Index (YoY)
Nov
1.8%
2.0%
Consumer Price Index Core (YoY)
Nov 1.5% 2.1% 4.7%
Crude Oil Futures (WTI, per barrel) Dec 31
$91.82 $92.19 $98:
Gold Futures (oz)
Dec 31 $1,676
$1,771 $1,567
5.0%
4.0%
3.0%
2.0%
1.0%
Consumer Price Index
CPI (YoY) -CPI Core (YoY)
0.0% ,
11/30/09 5/31/10 11/30/10 5/31/11 11/30/11 5/31/12 11/30/12
1. Data as of Second Quarter 2012 2. Data as of Fourth Quarter 2011
Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate
Source: Bloomberg
PFM Asset Management LLC
Section A -2
City of Winter Springs, Florida
Investment Report — Quarter Ended December 31, 2012
2.5%
2.0%
0.5%
U.S. Treasury Note Yields
Interest Rate Overview
•
0.0% ,
12/31/11
V
or
3/31/12 6/30/12 9/30/12 12/31/12
2 -Year
5 -Year
U.S. Treasury Note Yields
10 -Year
Source: Bloomberg
PFM Asset Management LLC
4%
3%
U.S. Treasury Note Yield Curve
1%
0%
361 2 3 5 7 10
Y Y Y Y Y Y
5%
4%
3%
} 2%
0%
361 2 3 5 7 rrITY Y Y Y
30
Y
Maturity
December 31, 2012 September 30, 2012 — — December 31, 2011
Yield Curves as of 12/31/2012
we
i
we
i
we
•
Maturity
U.S. Treasury Federal Agency — — Industrial Corporates, A Rated
25
Y
30
Y
Section A -3
Change
Change
Maturity
12/31/12
9/30/12
over
12/31/11
over Year
Quarter
3 -month
0.09%
0.12%
(0.03 %)
0.02%
0.07%
1 -year
0.14%
0.16%
(0.02 %)
0.13%
0.01%
2 -year
0.27%
0.25%
0.03%
0.28%
(0.00 %)
5 -year
0.74%
0.63%
0.11%
0.85%
(0.11 %)
10 -year
1.81%
1.70%
0.12%
1.96%
(0.14 %)
30 -year
2.94%
2.82%
0.12%
2.91%
0.03%
Source: Bloomberg
PFM Asset Management LLC
4%
3%
U.S. Treasury Note Yield Curve
1%
0%
361 2 3 5 7 10
Y Y Y Y Y Y
5%
4%
3%
} 2%
0%
361 2 3 5 7 rrITY Y Y Y
30
Y
Maturity
December 31, 2012 September 30, 2012 — — December 31, 2011
Yield Curves as of 12/31/2012
we
i
we
i
we
•
Maturity
U.S. Treasury Federal Agency — — Industrial Corporates, A Rated
25
Y
30
Y
Section A -3
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
B of A Merrill Lynch Index Returns
As of 12/31/2012
Returns for Periods Ended 12/31/2012
1-3 Year Indices
Duration
Yield
3 Month
1 Year
3 Years
U.S. Treasury
1.87
0.26%
0.07%
0.43%
1.44%
Federal Agency
1.70
0.31%
0.12%
0.85%
1.56%
U.S. Corporates, A -AAA Rated
1.94
0.95%
0.44%
4.02%
3.31%
Agency MBS (0 to 3 years)
1.85
1.37%
(0.31 %)
1.60%
3.42%
Municipals
1.81
0.61%
0.02%
1.03%
1.56%
1-5 Year Indices
U.S. Treasury
2.72
0.38%
0.04%
0.91%
2.62%
Federal Agency
2.36
0.44%
0.16%
1.38%
2.28%
U.S. Corporates, A -AAA Rated
2.80
1.22%
0.55%
5.85%
4.70%
Agency MBS (0 to 5 years)
2.11
1.45%
(0.26 %)
2.50%
4.45%
Municipals
2.53
0.84%
(0.10 %)
1.63%
2.37%
Master Indices
U.S. Treasury
5.99
0.96%
(0.10 %)
2.16%
5.89%
Federal Agency
3.84
0.85%
0.22%
2.44%
4.10%
U.S. Corporates, A -AAA Rated
6.80
2.32%
0.79%
9.19%
8.32%
Agency MBS
2.14
1.47%
(0.27 %)
2.59%
4.78%
Municipals
7.47
2.59%
0.51%
7.26%
6.83%
Returns for periods greater than one year are annualized; 3 Month return is periodic
Source: Bloomberg
PFM Asset Management LLC
Section A -4
City of Winter Springs, Florida Investment Report - Quarter Ended December 31, 2012
TAB II
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
Executive Summary
PORTFOLIO STRATEGY
➢ The General City Account Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency and commercial paper
securities.
➢ PFM continued to manage the General City Account Portfolio during the fourth quarter and found value in the market, taking
advantage of market inefficiencies or changes in economic outlook. As a result the Portfolio realized over $3,265 in gains on sales
during the quarter. PFM is continually in the market monitoring for opportunities to add value to the Portfolio.
➢ 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 0.30 %, exceeding the average Yield to Maturity of its benchmark the Merrill Lynch 1
Year U.S. Treasury Index by 11 basis points (0.11 %).
➢ Five year Treasury yields swung in a 24 basis point range. Yields were driven lower by economic disruption from Hurricane Sandy,
a higher projection for Greek debt, President Obama's re- election and assured continuity of an accommodative Federal Reserve
(Fed), an expansion of the Fed's bond purchase program, and fears the U.S. would go over the fiscal cliff. Bond yields were
pushed higher by stronger than expected job reports for September and November, a Greek debt buyback program, the prospect
of Presidential candidate Mitt Romney appointing a replacement for Ben Bernanke at the Fed, a global rally in stocks, and
confidence that the fiscal cliff would be avoided.
➢ After all the ups and downs, Treasury yields finished the quarter modestly higher. Political turmoil may cause a transient flight -to-
quality as has been seen this quarter and may be seen in the coming quarter. Yet, the larger, lasting effect is likely to come from
the budding trend of equity fund inflows at the expense of bond fund outflows. The so- called "Great Rotation ", as it is popularly
called, is the reversal of fund flows from the past 4 years.
➢ Fiscal drag caused by tax hikes on the wealthy and resumption of full payroll taxes, and concern over a possible government
shutdown may be supportive of a counter -trend rally in the bond market. While our longer term view is that yields will eventually
drift gradually higher, we intend to keep durations close to neutral to protect the City's portfolio against the regularly recurring
flights into Treasuries.
➢ As always, we strive to maintain safety of principal and appropriate liquidity, while seeking opportunities to add value. Our
strategy will remain flexible and may change in response to changes in interest rates, economic data, market outlook or specific
opportunities that arise.
PFM Asset Management LLC Section B -1
Yield to Maturity
on Cost°
December 31, 2012
1
1 Yield to Maturity
at Market
December 31, 2012
1
Amortized Cost'"
December 31, 2012
Market Value"
December 31, 2012
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
The City's Investment Statistics
Account Name
General City Account Portfolio
Fidelity Institutional Money Market Fund Government Portfolio (Fund #257)
Money Market Fund - State Board of Administration Pool A
Money Market Fund - State Board of Administration Pool B
Bank of America Cash for Operation - depository
Water & Sewer 2000 - Fidelity Institutional Money Market Fund Government Portfolio (Account #364)
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool A
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool B
Total
Account Name
General City Account Portfolio
Fidelity Institutional Money Market Fund Government Portfolio (Fund #257)
Money Market Fund - State Board of Administration Pool A
Money Market Fund - State Board of Administration Pool B
Bank of America Cash for Operation - depository
Water & Sewer 2000 - Fidelity Institutional Money Market Fund Government Portfolio (Account #364)
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool A
Water & Sewer 2000 - Money Market Fund - State Board of Administration Pool B
Weighted Average Yield
Benchmarks
Merrill Lynch 1 Year U.S. Treasury Note Index'
Notes:
1. On a trade-date basis, including accrued interest.
2. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances.
3. Excludes any money market fund/cash balances held in custodian account.
4. Past performance is not indicative of future results.
5. Source Bloomberg.
$29,040,317.08
25,639.02
30,486.66
481,151.91
2,804,015.60
716,749.42
884.81
13,964.33
$33,113,208.83
Amortized Cost' z3
September 30, 2012
$23,830,926.22
910,279.14
7.86
511,616.90
2,319,251.50
716,731.55
0.22
14,848.51
$28,303,661.90
0.30%
0.01%
0.25%
0.00%
0.25%
0.01%
0.25%
0.00%
0.28%
December 31, 2012
0.19%
Yield to Maturity
on Cost°
September 30, 2012
0.37
0.01
0.31
0.00
025%
0.01
0.31
0.00
0.33
September 30, 2012
0 18%
$29,060,938.11
25,639.02
30,486.66
481,151.91
2,804,015.60
716,749.42
884.81
13,964.33
$33,133,829.86
Market Value'." Duration (Years)
September 30, 2012 December 31, 2012
$23,854,238.40
910,279.14
7.86
511,616.90
2,319,251.50
716,731.55
0.22
14,848.51
$28,326,974.08
0.20%
0.01%
0.25%
0.00%
0.25%
0.01%
0.25%
0.00%
0.20%
Yield to Maturity
at Market
September 30, 2012
024%
0.01
0.31
0.00
025%
0.01
0.31
0.00
022%
0.95
0.003
44 Days
N/A
0.003
0.003
44 Days
N/A
Duration (Years)
September 30, 2012
0.94
0.003
39 Days
N/A
0.003
0.003
39 Days
N/A
PFM Asset Management LLC Section B - 2
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
General City Account Portfolio Composition and Credit Quality Characteristics
Security Type'
U.S. Treasuries
Federal Agencies
Commercial Paper
Certificates of Deposit
Bankers Acceptances
Repurchase Agreements
Municipal Obligations
Corporate Notes /Bonds
Corporate Notes /Bonds - FDIC Insured
Mortgage Backed
Money Market Fund /Cash
Totals
December 31, 2012 % of Portfolio
$16,917,846.22 58.22%
6,245,858.09 21.49%
5,897,233.80 20.29%
0.00 0.00%
0.00 0.00%
0.00 0.00%
0.00 0.00%
0.00 0.00%
0.00 0.00%
0.00 0.00%
0.00 0.00%
$29,060,938.11
100.00%
U.S.
Treasuries
58%
Portfolio Composition
as of 12/31/12
Commercial
Paper
20%
Federal
Agency
Obligations
22%
September 30, 2012
$14,532,193.67
6,424,248.63
2,897,796.10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% of Portfolio
60.92%
26.93%
12.15%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$23,854,238.40
100.00%
AA+
80%
Credit Quality Distribution2
as of 12/31/12
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 /LGIP. Standard & Poor's is the source of the credit ratings.
PFM Asset Management LLC
A -1+ (Short -
term)
8%
A -1 (Short -
term)
12%
Section B - 3
City of Winter Springs, Florida
Investment Report - Quarter Ended December 31, 2012
General City Account Portfolio Maturity Distribution
Maturity Distribution'
Overnight (Money Market Fund)
Under 6 Months
6 - 12 Months
1 - 2 Years
2 - 3 Years
3 - 4 Years
4 - 5 Years
5 Years and Over
Totals
December 31, 2012
$0.00
7,422,464.88
7,189,131.81
14,449,341.42
0.00
0.00
0.00
0.00
$29,060,938.11
September 30, 2012
$0.00
6, 326, 956.42
0.00
17, 527,281.98
0.00
0.00
0.00
0.00
$23,854,238.40
Percentage of Total Portfolio
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0% 0%
26% 27%
25%
Portfolio Maturity Distribution'
0%
50%
73%
• December 31, 2012
• September 30, 2012
0% 0% 0% 0% 0% 0% 0% 0%
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
December 31, 2012 December 31, 2012
City of Winter Springs, Florida'
Security Type'
United States Treasury Securities 16,904,406.17 52.20%
United States Government Agency Securities - 0.00%
Federal Instrumentalities 6,239,717.27 19.27%
Mortgage- Backed Securities - 0.00%
Certificates of Deposit - 0.001/4
Repurchase Agreements - 0.00%
Commercial Paper 5,896,193.64 18.21%
Corporate Notes - FDIC Insured - 0.001/4
Bankers' Acceptances - 0.00%
State and /or Local Government Debt (GO and Revenue - 0.00%
Money Market Mutual Funds 537,277.59 1.66%
Intergovernmental Investment Pool - 0.00%
Bank of America Cash for Operation 2,804,015.60 8.66%
Individual Issuer Breakdown
Government National Mortgage Association (GNMA)
US Export-Import Bank (Ex -Im)
Farmers Home Administration (FMHA)
Federal Financing Bank
Federal Housing Administration (FHA)
General Services Administration
New Communities Act Debentures
US Public Housing Notes & Bonds
US Dept. of Housing and Urban Development
Federal Farm Credit Bank (FFCB)
Federal Home Loan Bank (FHLB)
Federal National Mortgage Association (FNMA)
Federal Home Loan Mortgage Corporation (FHLMC)
December 31, 2012 December 31, 2012
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4,717,204.51 14.57%
1,522,512.76 4.70%
Notes:
1_ Does not include bond proceeds_
2 Managed by the City_
3_ End of month hadedate amortized cost of portfolio holdings, including accrued interest.
PFM Asset Management LLC
Notes Permitted by Policy
100%
75%
80%
0%
25%
50%
30%
50%
30%
20%
100%
25%
2 100%
Asset Allocation as of December 31, 2012
Asset Allocation
as of December 31, 2012
United States Treasury
Securities
5220%
Bank of America Cash for
Operation
8.66%
Money Market Mutual Funds
1.66%
Commercial Paper
1621%
Federal Instrumentalities
19.27%
Notes Permitted by Policy Individual Issuer Breakdown
50% Bank of Tokyo Mitsubishi CP
50% Toyota CP
50% Nordea North America CP
50% Barclays CP
50% JP Morgan Chase CP
50% Fidelity Institutional Money Market Fund Govemment Portfolio (Fund 8257)
50% Money Market Fund - Florida Prime (SBA)
50% Money Market Fund - Florida SBA Fund B
50%
25%
25%
25%
25%
December 31, 2012 December 31, 2012 1
1
1,598,593.78
1,299,528.75
999,506.95
999,432.22
999,131.94
25,639.02
30,486.66
481,151.91
4.94%
4.01%
3.09%
3.09%
3.09%
0.08%
0.09%
1.49%
Notes Permitted by Policy
10%
10%
10%
10%
10%
2 25%
2 25%
2 N/A
Section C - 1
City of Winter Springs, Florida Investment Report - Quarter Ended December 31, 2012
TAB III
Managed Account Summary Statement
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Transaction Summary - Managed Account
Opening Market Value
Maturities /Calls
Principal Dispositions
Principal Acquisitions
Unsettled Trades
Change in Current Value
$25,686,543.52
(1,600,000.00)
0.00
4,923,557.41
0.00
(8,803.46)
Closing Market Value
$29,001,297.47
Earnings Reconciliation (Cash Basis) - Managed Account
Interest /Dividends /Coupons Received
Less Purchased Interest Related to Interest /Coupons
Plus Net Realized Gains /Losses
10,771.89
(6,591.84)
2,241.33
Total Cash Basis Earnings
$6,421.38
Earnings Reconciliation (Accrual Basis)
Total
Ending Amortized Value of Securities
Ending Accrued Interest
Plus Proceeds from Sales
Plus Proceeds of Maturities /Calls /Principal Payments
Plus Coupons /Dividends Received
Less Cost of New Purchases
Less Beginning Amortized Value of Securities
Less Beginning Accrued Interest
28,980,676.44
59,640.64
0.00
1,600,000.00
10,771.89
(4,930,084.00)
(25,672,071.48)
(41,746.70)
Total Accrual Basis Earnings
$7,186.79
Cash Transactions Summary - Managed Account
Maturities /Calls
Sale Proceeds
Coupon /Interest /Dividend Income
Principal Payments
Security Purchases
Net Cash Contribution
Reconciling Transactions
1,600,000.00
0.00
10,771.89
0.00
(6,830,371.91)
2,300,000.00
0.00
Cash Balance
Closing Cash Balance
$25,639.02
—PFM
PFM Asset Management LLC
Account 94730001 Page 1
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Portfolio Summary and Statistics
For the Month Ending December 31, 2012
Account Summary
Description
U.S. Treasury Bond / Note
Federal Agency Bond / Note
Commercial Paper
Managed Account Sub -Total
Accrued Interest
Total Portfolio
Unsettled Trades
Par Value
16,700,000.00
6,140,000.00
5,900,000.00
28,740,000.00
28,740,000.00
0.00
Market Value Percent
16,867,159.64 58.16
6,236,904.03 21.51
5,897,233.80 20.33
29,001, 297.47 100.00%
59,640.64
29,060,938.11
0.00
Maturity Distribution
25.59%
24.69%
0 - 6 Months 6 - 12 Months
49.72%
1 - 2 Years
0.00%
0.00%
0.00%
0.00%
2 - 3 Years 3 - 4 Years
4 - 5 Years Over 5 Years
Sector Allocation
US TSY Bond / Note
58.16%
Commercial Paper
20.33%
Fed Agy Bond /
Note
21.51%
Characteristics
Yield to Maturity at Cost
Yield to Maturity at Market
Duration to Worst
Weighted Average Days to Maturity
0.30%
0.20%
0.95
348
FM
PFM Asset Management LLC
Account 94730001 Page 2
Managed Account Issuer Summary
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Issuer Summary
Issuer
BARCLAYS PLC
FANNIE MAE
FREDDIE MAC
JP MORGAN CHASE & CO
MITSUBISHI UFJ FINANCIAL GROUP INC
NORDEA BANK AB
TOYOTA MOTOR CORP
UNITED STATES TREASURY
Market Value
of Holdings
999,509.00
4,714,617.95
1,522,286.08
999,615.00
1,598,662.40
999,632.00
1,299,815.40
16,867,159.64
Percent
3.45
16.26
5.25
3.45
5.51
3.45
4.48
58.15
Total
$29,001,297.47 100.00%
Credit Quality (S &P Ratings)
AA+
79.66%
A -1
12.41%
A -1+
7.93%
—rPFM
PFM Asset Management LLC
Account 94730001 Page 3
Managed Account Detail of Securities Held
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Security Type /Description
Dated Date /Coupon /Maturity
CUSIP
S &P Moody's Trade Settle
Par Rating Rating Date
Date
Original YTM
Cost at Cost
Accrued
Interest
Amortized
Cost
Market
Value
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 09/30/2008 3.125% 09/30/2013
US TREASURY NOTES
DTD 10/31/2008 2.750% 10/31/2013
US TREASURY NOTES
DTD 10/31/2008 2.750% 10/31/2013
US TREASURY N/B
DTD 01/31/2012 0.250% 01/31/2014
US TREASURY N/B
DTD 02/29/2012 0.250% 02/28/2014
US TREASURY NOTES
DTD 03/31/2009 1.750% 03/31/2014
US TREASURY N/B
DTD 05/31/2012 0.250% 05/31/2014
US TREASURY N/B
DTD 07/31/2012 0.125% 07/31/2014
US TREASURY NOTES
DTD 08/31/2009 2.375% 08/31/2014
912828JM3
912828J04
912828J04
912828SB7
912828SG6
912828KJ8
912828SW1
912828TF7
912828LK4
2,140,000.00 AA+
600,000.00 AA+
1,445,000.00 AA+
1,900,000.00 AA+
3,200,000.00 AA+
3,125,000.00 AA+
1,900,000.00 AA+
1,910,000.00 AA+
480,000.00 AA+
Aaa
09/06/12
Aaa 05/16/12
Aaa 06/01/12
Aaa 02/08/12
Aaa 03/13/12
Aaa 06/27/12
Aaa 11/29/12
Aaa 11/01/12
Aaa 12/18/12
09/10/12
05/17/12
06/01/12
02/09/12
03/15/12
06/29/12
12/05/12
11/05/12
12/19/12
2,205,871.88 0.20
621,515.63 0.28
1,496,365.23 0.23
1,899,777.34 0.26
3,195,125.00 0.33
3,203,002.93 0.32
1,900,222.66 0.24
1,905,001.17 0.28
497,193.75 0.26
17,086.20
2,825.97
6,805.87
1,987.77
2,718.23
13,972.36
417.58
999.12
3,873.48
2,186,538.05
612,254.20
1,475,103.80
1,899,878.19
3,197,115.90
3,180,333.34
1,900.211.57
1,905,451.30
496,833.24
2,186,728.91
612,726.56
1,475,649.81
1,901,187.50
3,201,750.00
3,184,446.88
1,900,891.10
1,906,791.20
496,987.68
Security Type Sub -Total
16,700,000.00
16,924,075.59 0.27
50,686.58
16,853,719.59
16,867,159.64
Federal Agency Bond / Note
FHLMC NOTES
DTD 02/04/2011 0.750% 03/28/2013
FNMA NOTES
DTD 11/01/2010 0.750% 12/18/2013
FNMA GLOBAL NOTES
DTD 10/26/2009 2.625% 11/20/2014
3137EACS6
31398A5W8
31398AZV7
1,520,000.00 AA+
2,870,000.00 AA+
1,750,000.00 AA+
Aaa
03/08/11
Aaa 07/31/12
Aaa 12/14/12
03/09/11
07/31/12
12/14/12
1,516,230.40 0.87
2,890,549.20 0.23
1,828,925.00 0.28
2,945.00
777.29
5,231.77
1,519,567.76
2,884,282.70
1,826,912.75
1,522,286.08
2,886,531.20
1,828,086.75
Security Type Sub -Total
6,140,000.00
6,235,704.60 0.40
8,954.06
6,230,763.21 6,236,904.03
=PFNI
PFM Asset Management LLC
Account 94730001 Page 4
Managed Account Detail of Securities Held
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Security Type /Description
Dated Date /Coupon /Maturity
Commercial Paper
TOYOTA MOTOR CREDIT CORP COMM
PAPER
0.000% 02/15/2013
CUSIP
89233GPF7
NORDEA NORTH AMERICA INC COMM 6555P0OD4
PAPER
-- 0.000% 03/13/2013
BARCLAYS US FUNDING LLC COMM PAPER 06737HOF9
-- 0.000% 03/15/2013
BANK OF TOKYO MITSUBISHI UFJ LTD CP 06538BR08
-- 0.000% 04/24/2013
JP MORGAN CHASE & CO COMM PAPER 4662J0560
-- 0.000% 05/06/2013
S &P Moody's Trade Settle Original YTM
Cost at Cost
P -1 08/22/12 08/22/12 1,298,146.42 0.29
P -1 11/13/12 11/15/12 999,180.56 0.25
Par Rating Rating Date
1,300,000.00 A -1+
1,000,000.00 A -1+
1,000,000.00 A -1
1,600,000.00 A -1
1,000,000.00 A -1
Date
11/13/12 11/15/12 999,066.67 0.28
12/24/12 12/24/12 1,598,494.22 0.28
12/05/12 12/05/12 998,944.44 0.25
Accrued
Interest
Amortized
Cost
Market
Value
0.00 1, 299, 528.75 1,299,815.40
0.00 999.506.95 999,632.00
0.00 999,432.22 999,509.00
0.00 1, 598, 593.78 1, 598, 662.40
0.00 999,131.94 999,615.00
Security Type Sub -Total 5,900,000.00
Managed Account Sub -Total 28,740,000.00
5,893,832.31 0.27 0.00 5,896,193.64 5,897,233.80
29,053,612.50 0.30 59,640.64 28,980,676.44 29,001,297.47
Securities Sub -Total $28,740,000.00
Accrued Interest
Total Investments
$29,053,612.50 0.30% $59,640.64 $28,980,676.44 $29,001,297.47
$59,640.64
$29,060,938.11
=.1PFM4
PFM Asset Management LLC
Account 94730001 Page 5
Managed Account Fair Market Value & Analytics
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Security Type /Description
Dated Date /Coupon /Maturity
CUSIP
Par
Broker
Next Call Market
Date Price
Market
Value
Unreal G/L
On Cost
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 09/30/2008 3.125% 09/30/2013
US TREASURY NOTES
DTD 10/31/2008 2.750% 10/31/2013
US TREASURY NOTES
DTD 10/31/2008 2.750% 10/31/2013
US TREASURY N/B
DTD 01/31/2012 0.250% 01/31/2014
US TREASURY N/B
DTD 02/29/2012 0.250% 02/28/2014
US TREASURY NOTES
DTD 03/31/2009 1.750% 03/31/2014
US TREASURY N/B
DTD 05/31/2012 0.250% 05/31/2014
US TREASURY N/B
DTD 07/31/2012 0.125% 07/31/2014
US TREASURY NOTES
DTD 08/31/2009 2.375% 08/31/2014
912828JM3
912828J04
912828J04
912828SB7
912828SG6
912828KJ8
912828SW1
912828TF7
912828LK4
2,140,000.00 BARCLAYS
600,000.00 BARCLAYS
1,445,000.00 MERRILL
1,900,000.00 BNP PARI
3,200,000.00 CITIGRP
3,125,000.00 BNP PARI
1,900,000.00 GOLDMAN
1,910,000.00 BNP PARI
480,000.00 BNP PARI
102.18 2,186,728.91 (19,142.97)
102.12 612,726.56 (8,789.07)
102.12 1,475,649.81 (20,715.42)
100.06 1,901,187.50 1,410.16
100.05 3,201,750.00 6,625.00
101.90 3,184,446.88 (18,556.05)
100.05 1,900,891.10 668.44
99.83 1,906,791.20 1,790.03
103.54 496,987.68 (206.07)
190.86
472.36
546.01
1,309.31
4,634.10
4,113.54
679.53
1,339.90
154.44
0.74
0.74
0.20
0.82 0.82 0.20
0.82 0.82 0.20
1.08 1.08 0.19
1.16 1.16 0.20
1.23 1.23 0.22
1.41 1.41 0.22
1.58 1.58 0.23
1.63 1.63 0.24
Security Type Sub -Total
16,700,000.00
16,867,159.64
(56,915.95)
13,440.05
1.16 1.16 0.21
Federal Agency Bond / Note
FHLMC NOTES
DTD 02/04/2011 0.750% 03/28/2013
FNMA NOTES
DTD 11/01/2010 0.750% 12/18/2013
FNMA GLOBAL NOTES
DTD 10/26/2009 2.625% 11/20/2014
3137EACS6
31398A5W8
31398AZV7
1,520,000.00 MORGANST
2,870,000.00 NOMURA
1,750,000.00 SOC GEN
100.15
100.58
104.46
1,522,286.08
2,886,531.20
1,828,086.75
6,055.68
(4,018.00)
(838.25)
2,718.32
2,248.50
1,174.00
0.24
0.24
0.13
0.96 0.96 0.15
1.85 1.85 0.25
Security Type Sub -Total
6,140,000.00
6,236,904.03
1,199.43
6,140.82
1.05 1.05 0.17
Commercial Paper
�PFM
PFM Asset Management LLC
Account 94730001 Page 6
Managed Account Fair Market Value & Analytics
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Security Type /Description
Dated Date /Coupon /Maturity
CUSIP
Par Broker
Next Call Market
Date Price
Market Unreal G/L
Value On Cost
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
Commercial Paper
TOYOTA MOTOR CREDIT CORP COMM 89233GPF7 1,300,000.00 TOYOTA 99.99 1,299,815.40 1,668.98 286.65 0.13 0.13 0.11
PAPER
-- 0.000% 02/15/2013
NORDEA NORTH AMERICA INC COMM 6555P00D4 1,000,000.00 JPMCHASE 99.96 999,632.00 451.44 125.05 0.20 0.20 0.18
PAPER
-- 0.000% 03/13/2013
BARCLAYS US FUNDING LLC COMM PAPER 06737H0F9 1,000,000.00 BARCLAYS 99.95 999,509.00 442.33 76.78 0.20 0.20 0.24
-- 0.000% 03/15/2013
BANK OF TOKYO MITSUBISHI UFJ LTD CP 06538BR08 1,600,000.00 BTM_DIR 99.92 1,598,662.40 168.18 68.62 0.31 0.31 0.26
-- 0.000% 04/24/2013
JP MORGAN CHASE & CO COMM PAPER 4662J0S60 1,000,000.00 JPMCHASE 99.96 999,615.00 670.56 483.06 0.35 0.35 0.11
-- 0.000% 05/06/2013
Security Type Sub -Total 5,900,000.00 5,897,233.80 3,401.49 1,040.16 0.24 0.24 0.19
Managed Account Sub -Total 28,740,000.00 29,001,297.47 (52,315.03) 20,621.03 0.95 0.95 0.20
Securities Sub -Total
Accrued Interest
Total Investments
$28,740,000.00
$29,001,297.47 ($52,315.03) $20,621.03 0.95 0.95 0.20%
$59,640.64
$29,060,938.11
=PFNI
PFM Asset Management LLC
Account 94730001 Page 7
Managed Account Security Transactions & Interest
For the Month Ending December 31, 2012
WINTER SPRINGS GENERAL CITY ACCOUNT - 94730001
Transaction Type
Trade Settle
Security Description
CUSIP
Par
Principal
Proceeds
Accrued
Interest
Realized G/L Realized G/L Sale
Total Cost Amort Cost Method
BUY
11/29/12
12/05/12
12/14/12
12/18/12
12/24/12
12/05/12
12/05/12
12/14/12
12/19/12
12/24/12
US TREASURY N/B
DTD 05/31/2012 0.250% 05/31/2014
JP MORGAN CHASE & CO COMM PAPER
-- 0.000% 05/06/2013
FNMA GLOBAL NOTES
DTD 10/26/2009 2.625% 11/20/2014
US TREASURY NOTES
DTD 08/31/2009 2.375% 08/31/2014
BANK OF TOKYO MITSUBISHI UFJ LTD
CP
-- 0.000% 04/24/2013
912828SW1 1,900,000.00 (1,900,222.66)
4662J0S60 1,000,000.00 (998,944.44)
31398AZV7 1,750,000.00 (1,828,925.00)
912828LK4 480,000.00 (497,193.75)
06538BR08 1,600,000.00 (1,598,494.22)
(65.25)
0.00
(3,062.50)
(3,464.09)
0.00
(1,900,287.91)
(998,944.44)
(1,831,987.50)
(500,657.84)
(1,598,494.22)
Transaction Type Sub -Total
6,730,000.00
(6,823,780.07)
(6,591.84)
(6,830,371.91)
INTEREST
12/03/12 12/03/12 MONEY MARKET FUND
12/18/12 12/18/12 FNMA NOTES
DTD 11/01/2010 0.750% 12/18/2013
MONEY0002
31398A5W8
0.00
2,870,000.00
0.00
0.00
9.39
10,762.50
9.39
10,762.50
Transaction Type Sub -Total
2,870,000.00
0.00
10,771.89
10,771.89
MATURITY
12/24/12 12/24/12 BANK OF TOKYO MITSUBISHI COMM
PAPER
0.000% 12/24/2012
06538BM03
1,600,000.00
1,600,000.00
0.00
1,600,000.00
2,241.33
0.00
Transaction Type Sub -Total
Managed Account Sub -Total
Total Security Transactions
1,600,000.00 1,600,000.00 0.00 1,600,000.00 2,241.33 0.00
(5,223,780.07) 4,180.05 (5,219,600.02) 2,241.33 0.00
($5,223,780.07) $4,180.05 ($5,219,600.02) $2,241.33 $0.00
�PFM
LPFM Asset Management LLC
Account 94730001 Page 8