Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Monthly Investment Report - November 30, 2018
en , cocoo) c libmil , n .- fco 6ainC p « K § ■ ._ $ k¢ ' NO ) # k� 6 \ § R � Eq kGRCg ■ N a.a. col 26aw — N- wwwai0 � < > TrnN _ � wcooco N Q _ Odr- \ fu,e CO - 7 Z 0 2 $ 7$ k � ~ N) � u. a � § « @ 4 •. co 014 2 ¥ u t 00.C4 � °i8 Kk2k . ± b U 4,3I- ƒ © { -Q =ci . a 0 � 0 { .0 k : 0 z ' k ] 2 = § \ 7 ( 0. 0 e •G � § f z 7 co . £ 2 %--- la T. k k \ .. ` 8 / k u $ t ( J ƒ /\ 7 a) .. 2A3 0 _ a . � \ $ § C 2 $ $ « f. E . > E / # £ § k k § $ ; ■ £ 3 G / c § , § e e - a © _ ■ v) .... ƒ , # ; , » ew £ = � f ■ » 477 Om � E � } jk § � � uk2 j k \ \ \ � 0m CO k / \ § C 0. '- A.... ., 4.) § \\ cr f/\ / © k ,aa It .0Q a » u § ) U .0 ' § i .- 0 \ / § \ / ) \ { — \ ) 2 2 ± ] > § y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y O ` 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20 E E 3i3333wa) wa3waw3ww33wwwww3wwaww333= am am aaaaaa) aaaaaaaaaaaaaaaaaaaaam aa0O 0ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ 0 M ° ° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 > (n _0 _0 _0 _0 _0 .0 .0 .0 .0 .0 ..0 _0 .0 .0 .0 _0 _0 _0 _w _0 _0 _0 _0 _0 _0 .0 .0 .0 .0 _0 Y Y Y Y Y L LLL C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C O MM m WM MMMMMMMMMMMMMMMMM CO MM CO m m m m m m m m m gg mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 0 1' y N '" Q QM M M N O I� N r (O N O O (0 N- N N N I� (O M M M M M (O M (N O C N .- 7 M M M (O (D r CT ,- N V (O (O O O CD O) N M M M M M (D W M M N N N M (D(O M1,- M .' ZZ a- - T- N N N N N N N N N N M M M M M M M M M M M N N } 2 N- 00 O 0 O O M LO (O (M O M CO LU (O 'ctO O M M M (O (O CD O N O O 0) (O N 0 0 (O o C) 1 O 7 M OO M (O r- (O (O N (O V M CD O LO stM O �O V N N N LO Cb (O N O (D 6) M O O O N (O O O M tt - 6 M (O N N _V M M V' W Cb O (O M V (D (O M M (O (C) O o0 O M O 6) M Ca V I- ' OO O (O O) M LU N- (O LU (D V' M N- O o0 M O V N 6) L O) N tO O (fl O LU M O V > — M h (O CO O M (O O) ,- (O M (O m t` O M M ao M CD 1` M (O t` M V (O (O O M N O O O (O . N O O M N C7) M C) C) O N M ('M N CD M 00 N M (D M 6) (0 (0 1- O) M M N CO (O N M N M 0 N N Y O O N (O M O O V (D M N ,- (O I a0 LU r (O M M M W 0) M 6) N U) (N I� - O (O M O O N [O N (O M (O (D M N I� (O tO N N M M 'a O) (O M (O M N V M V (O N m L() (C) 2 'C- N- 00 N O CO N V' V M O Q) r O (O M (t) CO r V r N e- N M N M O (O 6) O M N- oO O O O (O tO O M OO r O) CD O V c- iO oD (D O) O O) (O N oO V O) (D V - N- N- (O (O (O CO O I,- OO O CO I� N O 7 O M �!' O) L N 6) 6) V O) I- O M m N M co (O r o oO CD I- O) CO O .- 666O V N- O) N 00 V t N .-- O 1- (O M r O (O (O O) c0 M 6) 00 r CO o (D (O L V o 00 O M O N M (O O) (O V M oO CD CD e- CT CO ,- .- W to V (D N o 0 W V V (0 M O O' LU (O M V 6) M W O c0 CO 00 M O N M CO O NI O (O N M CO N- CO (D M r V M LU V' M M V 6) Y O O 1- N r LU O (O N- (O O N O 0) (D (f) O N CO N- 00 (D (D W O O O s- N CO N LO M (O (D M N I- LU to (O N N M M V n O) L V (D M N V M .- V U) N O (O u)' m t O O a y O m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X W 0 0 0 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 y CO o0 N- N- (O (1) (O (!7 tO O (O C] (N (O (O O O O O 0 (f) O (!7 (!7 (O (!7 (O O O O C7 O O '7 O (O C7 O (O (n O O I) U) n I r N N N- r O ti U) U) (O O O O O CO CO 1X) U) U) (` n O (O (O O (O O r O U) O O N _ ` N N M M M M M (D (O r- M O M M M N O O 0 0 CO 1- W OO W W M O t` (O M (O (O U O N N ,- ,- ,- N ,- ,-- N .- N N N N N a- N ,- ,- N r- ,- N O O .+ wZSrp c CO CC) J ON w- (O — co O - LL O c C m O O o 0 0 0 0 0 a- N N N N N N N N N N N M M Cr O O O 0 - 0 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Z Z o a- a- (n a0 o 00 0 o eo (n ao O O M r` m V. Z Z M M M M M M I- M M N M M M M M M M M M N M M M M M M M M M M N a- N N M - C 7 M M M V O N V (n LU O O O N M M U M M N- Q) 0) O N V Op (..1 'E co..., o 0 0 0 0 0 0 c-- O O O O O O O ,-- — s- O O 0 0 0 0 0 0 0 0 c-- O O O O O O o 0 a 0) (0 m O (0 (0 O (D (O (D to CO CO M N- N- N- CO (O N- r CO 00 00 N- n CO m Cn CO Lo n n r W CD C Q Q1-.--- 1--10-5- 4 -.= c (n M M M (n (A (n (n (n O V U M M M V 4- (n (n CD O M O N N N O O M O s-- N 0 0 0 0 N 0 0 0 O ,-. ,- O N 0 0 0 M 0 O 0 O O N N N O EZ Z O a CO N N M 6) (n O N 0 ,- N V M 1) M N CO 00 O (A O 1) CM N CO a0 0 0 a 0 O � 0 0 0 0 � 0 0 0 � � 0 0 0 0 0 � � 0 0 0 0 ,- a 0 0 s- 0 0 0 a 0 0 a 0 0 0) O (n N O C O O m (n N N co (nu) o (n o m woo N N N (n fn N co co cn N o w (n N w Z m N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O (DP O O O O O O O O O O O O O O O O O O O O O O O O O O O O m 0 0 0 Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z O ` Z ` Z` Z` Z` ZL- L- a- Z � - L- L- ZL- Z` Z Z Z SL- Z - L- U) o n (n 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 O O O O O Q J (n (n (n (n (n (n (n u) (n 0 0 m (n (n (n (n 0 (n (n (n a 0 0 0 m U) 0 0 (n (n (n X 0 0 0 0 0 HO 0000 (000000000000C00000000000000 m I. ocr Ta 00000000000000000000000000000001_ < < < < < 0LL LL 0 H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H (0 2 2 2 2 2 N o Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y -' Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y d Y 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 crrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr * 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 33 3 3 3 3 3 ... +- N a) a) N a) 0) a) a) a) a) N N N N N a) O U) U) U) a) a) O 0 C) a) U) U) a) U) C) a) O U) N N 0) ommzz_ z_ zzzzz _zzzzzzzz_ _zzzzz_ zzz _z _zzzzzz _z _zzzz_ z V m O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y _,C Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 3 C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C o (a as as ca ca ca m (a m ca CO CO CO CO ca ca CO ca m m m m CO ca m ca CO ca m m m m m m m m ca CO m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m o �+ Y z N N O 00 V M V' CO m 00 O (O M N (D V O N cN V' co N No N O N (O N 00 W O t` n - m M M t` ap N N M O .- M m M M M M r O N M V' ap N M M V O W - N M m M (O M (D m O) m 6) m '' N N M M O O O N N N N N N N N M M M M C) V' 4 0 0 0 0 '- - m W E M 0) O N O O OO CO O N M V' O CO 00 V N O M LU N- O (O c) 0 C) (O N (O V' O M O) 'cY D) 1` 7 M N- (D V' (0 O) M O) O) M LU CO CO O O CO N O N- V LU N N- M M N O) to CO N O N- N LO CO V: (D O O N V O 00 '7 O M CO (O .-. a0 O r N r- O N M O LO N- CO V' M M O) CO L CO (O CO CD (f) to C (O (O N (D V' M O O N- () N CD N- N V O (D M M O LU CO N N- r CD CO M N IA CD V h (D O M (D M LO O M_ 1. 1. M (O (O t` s- V (O m .- N-- M M O M 1� M (O CO A- (O N-- M - O V' N '7 (O 00 (D (O N M M - O V' N n N V O O) M O O N V' N 1. O O C) N (D CO N M d (O CO (O N O O N OO (D O M N O (O V' (D (O O M V' CD M '7 O) LO N (O (D O (O (D N CO (D (C) V' V' M (O V V N .- N (O M V' N N M N N N N N N (O N N M N N V V '7 N (O M M (p (D E N V' O O (O O O O O O O O O O O O O (O (O O O U) O O O O O O (O 0 0 0 0 0 0 0 O O O N- (l) O M N (n O M (O V' M O O O O O V r- V M O O LO .-- (O O O O N O O O O O '7 O O (D O O N (O D) (O GD LO M N . CO (D N- O (D O r V O (O CO M N O) N O O O (O O O O O O O O O 0) O h -' O N M N O OO O) N V' M (O M (C) V' C) N- N- (O O) (O CO N- (O O O O O O O O O V' O O M O N (a 1� (O O O O COO (D O) N O) d) O COO LO M n O) V' N- +- (O N O O r O O O O O CO O O (D O (D a- > N r 00 O M Cn N- O) 0) m V' V' O 00 N- N (O N M V M tO O O V (O U") to (O O O) (O O V' O h CO Y r O N- CO CO O M OO (D M N O (D (f) 00 (0 O) M V' (D V V' O (D N (0 (O O U (D (O N- (D M 4 V' O M (O V V L0 - N '- (O - - C) Lo N N M N - - N N N N - N M N N M N N V' '7 V' N (O C)) C)) O m N V' t 0 y Q .' O R 1 W 0 0o 0 00 0 0 0 0 0 0 0 0 0 00 00 0 0 0 0 0 00 0 0 00 a. OOO (OOO000000OO (OOOOOOOO (OOOOOOOO O00O 0O _ y (O (n O CO O O O O (f) O (O (O O O N (O O O O (O O (O N O (O V' n ND , 00 N O M OO (T O — O(O h C mf, ` N N O M O M 1` N O O .- m e (O CD N O r , V' N (D N- O O W O MN N U O N '- — N — (D — V' N '- 4- N N N N N (n .-- N N N N C)) N N T— N T— N N N N N M M N N N w 4 °' c m co N -1 d W CU M ' r r O C 0 N N O) O O O O O N N N N M M O O O O 0 0 0 0 0 0 0 0 O N N N N = 1- N N N N N N N N N N N N N N N N N ,- .- x- N N N N N N N N N 4+ N- N D M N- M — M N� (n = M M M O) r.- M M M (O M — (O M N (O 1- O O O (f) M M (O (D z a- '- O O O N- 0 0 .-- .- O ,- ,- N O O O O N N O O O O O N O N N- - 0 0 O C 7 CO CO V co CO O M ' N N 4 V' V V h O) N M V V O) CO V V M co m N N V' V' CO CO OO .- U 'E 0 0 0 O O O - O O - O O O O O O O - O O O O O O O O O 0 0 0 0 0 0 0 O - - oa P.' 4-1 ( (c C o CO (D N- 1- (O (D (D N. N. N . N- CO n n N- ti (D N- CO CO CO CO CO OO N- N- 1- r M CO CO CO W CO n N- N 0) E % N m M M W M N-z O (O M O ,- M r V' N M M D M M M M V V' M N O O r ` N� O ,— N N +- O O 1— N N .- '- N— O O N— N 0 0 0 O O O O O O N O N A— 1— 0 0 0 N E > M 00 M (D 04 00 CD M Vt.0 O ' V' O M ,— '- m 0 0 0 V 0 0 0 0 00 0 N N 0 0 CD 0000 .— 1— > 0 0 0 0 0 0 0 O O O O r 0 0 0 0 0 0 0 0 0 00000000 0 C N —N O F- O r O m m 0. 0) O Z r o . ) NJL ° t Q n' a n o Z c z a) o 0 > a) 0 8 00 m U c c U U ZY ZU a 0 a 0 a) o 0 mcOW E '650 Z m ca - C = cm0teUE = c oUDUaQ (a ,„T, o o a a UZoo o-t0 - .... O ooC0 00 - Ommm Um = Uma n n0 mU vc ,8Z0 En K3pmZrzm0 mo on . YU Yop) p t c WNmUYO° UOON COn (n O O .O .. F- U aU O . L 0 Q (0 r C. ZZ o UrocUn <2 c — a c m a) 3amc oo Z ncL nu0 a) a) Wa) = w UmocaE = ( . o > c . - ooma)m o � N EE Om2rmg - Z < cmao0mmaz mmmmozozza (bao m3 o omovUm07O 00 (n Q0om m ;ao o QQl ). 2mo0E . o mC ao -o0 - 0 cmcw - 0 oo omm mEcECccc Eo Nzzu7E - mmo < EmrO uu_ _ mmQF- smrnmm0oz , ommnwEozoommsom • pfm CITY OF SEAL BEACH Investment Performance Review For the Quarter Ended September 30, 2018 Client Management Team PFM Asset Management LLC Sarah Meacham,Managing Director 601 South Figueroa,Suite 4500 213 Market Street Richard Babbe,CCM,Senior Managing Consultant Los Angeles,CA 90017 Harrisburg,PA 17101-2141 213-489-4075 717-232-2723 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Overview Key Messages Economic Conditions • Economic growth has strengthened over the past year. • The labor market remains strong with the unemployment rate at a 49-year low. • Inflation has firmed up at the federal reserve's desired target level. • Interest rates are up sharply year-over-year with further increases possible through 2019. • Trade concerns, higher interest rates,and geo-political events could impact longer-term economic trends. Portfolio Review • We continued to actively manage the portfolio to add value in a rapidly rising interest rate environment. • The portfolio has benefited from higher interest rates which have driven higher accrual earnings, but the rise in rates has also resulted in market value depreciation in the portfolio which has lowered the portfolio's total return. • We positioned the portfolio with a modestly defensive duration posture relative to the benchmark, holding maturities shorter than the benchmark for the majority of the past two quarters in light of the Fed's impact on short-term rates. • With yield spreads(the difference in yield for similar maturity securities), narrow by recent standards,we shifted additional funds into the U.S. Treasury sector. • The portfolio continues outperform its benchmark by a good margin. PFM Asset Management LLC Market Update For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Market Update Economic Summary U.S. Real GDP Inflation Measures 6% (QoQ,SAAR) 2.5% (YoY) 5% .��� OM�Mt —Rolling 4-Quarter Avg. _` 4% 1.5% 3% 2% 0.5% —Core CPI Core PCE 1% —-Fed's Long Term Inflation Target 0% III1 • 111 ' -0.5% Sep'13 Sep'14 Sep'15 Sep'16 Sep'17 Sep'18 -1% 3Q13 3Q14 3Q15 3Q16 3Q17 3Q18 Unemployment Rate Consumer Confidence 9% 160 Highest since 2000 �a. 8% 140 2% 120 7% 5.9% 6% 100 5.0% 5. 5/o 0 80 4.2% 4% 3.7% 60 3% 40 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Source:Bloomberg,data available as of 9/30/2018.SAAR is seasonally adjusted annualized rate. PFM Asset Management LLC 2 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Market Update Treasury Yields Continue to Rise • The third quarter marked the eighth straight quarterly rise in the 2-year yield as the U.S.economy remained strong and the Federal Reserve continued on its path of quantitative tightening, raising the federal funds target rate by 25 basis points at its September meeting. Quarter Ending QoQ 2-Year U.S.Treasury Yield Change 3.00% 3Q2018 2.82% 0.29% 2.82% 2Q2018 2.53% 0.26% 2.75% 1Q2018 2.27% 0.38% 4Q2017 1.89% 0.42% 2.50% 2.53% 3Q2017 1.47% 0.09% 2.25% 2Q2017 1.38% 0.11% 2.27% 1Q2017 1.27% 0.07% 2.00% 4Q2016 1 20% 0.56% 1.89% 3Q2016 0.64% 0.00% 1.75% Dec-17 Mar-18 Jun-18 Sep-18 Source:Bloomberg,as of 9/30/2018. PFM Asset Management LLC 3 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Economic Conditions Where Are We in the Economic Cycle? Different Indicators Give Differing Views The Conference Board Leading Economic Index Continues to Rise 112 _ ------- Duration Length of cycle Late —I tie Conference Board Leading Econc, c tde,0(LEi)tar the Wiled States LEI 108 —The Conference Board Coincident Economic tnde>r®(CO)for the United Staten Slack Labor market slack Late 104 Output market slack Late 100 CEI Cost Wage growth Mid 96 pressures Unit labor cost growth Early g0 y . ,, 92 Resi investment/GDP Early Cyclical Housing starts Mid i 58 0011 Irow demand Consumer durables/GDP Early es Capital spending Mid 80 Confidence Cyclically adj. confidence Mid /8j Levera a Household leverage Early Jun'18 g Most levered companies Mid 72 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Bond default rates Mid i alnsr I FI Trngh Marrh 2f1f10 I a4PsI CFI Trngb Alm 70110 Shaded areas represent recessions asdetermined bythe NBERBusiness Cycle Dating Commttee. Credit Loan delinquencies Mid Bank lending standards Mid • Supports the continuing solid growth in the economy Profits S&P 500 margins Late Earnings rel.to normalized Mid • Suggests no recession in the near-term Source(left):Wall Street Journal:Deutsche Bank.Source(right):Conference Board. PFM Asset Management LLC 4 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Market Conditions Equity Selloff Erases Year-to-Date Gains • After hitting an all-time high in late September,the S&P 500 fell into correction territory driven by a range of concerns ranging from higher interest rates to peak profits worries. S&P 500 Year-to-Date Change High: +9.6%YTD 2,950 2,900 2,850 I 2,800 1 8 • a I +2.4% 2,750 YTD 2,700 2,650 p 2017 close 2,600 2,550 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Source:Bloomberg,as of 11/&2018. PFM Asset Management LLC 5 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Market Update FOMC "Dot Plot" —A Third 2018 Rate Hike in September Fed Participants'Assessments of`Appropriate' Monetary Policy September 2018 5% i • Sept-18 FOMC Projections I 1 —Sept-18 Median • 1 4% • • I • •••••• •• loll • 1 • • 3% History of Recent -- -_-_----- •4000 �• • •••i••� Fed Rate Hikes loll • • • 1 Sep'18 2.00-2.25% • I ••• Jun 18 1.75-2.00% oleo • • • I 2% Mar 18 1.50- 1.75% 1 1 Dec'17 1.25-1.50% I Jun'17 1.00-1.25% 1% I Mar 17 0.75-1.00% Fed expects 1 more Dec'16 0.50-0.75% rate hike in 2018& 1 maintained future Dec'15 0.25-0.50% projections 1 0% t 2018 2019 2020 2021 Longer Term Source:Federal Reserve and Bloomberg.Individual dots represent each Fed members'judgment of the midpoint of the appropriate target range for the federal funds rate at each year-end Fed funds futures as of 9/26/2018. PFM Asset Management LLC 6 Investment Strategy & Portfolio Review For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Compliance Sector Allocation and Compliance • The portfolio is in compliance with the City's Investment Policy and California Government Code Security Type Market Value %of %Change Permitted by In Compliance Portfolio vs.6/30/18 Policy U.S.Treasury $12,668,320 48.0% +7.8% 100% ✓ Federal Agency $3,458,877 13.1% -1.3% 100% ✓ Municipal Obligations $313,337 1.2% - 100% ./ Negotiable CDs $4,636,195 17.6% -2.5% 30% 1 Corporate Notes $5,212,881 19.8% -4.2% 30% 1 Securities Sub-Total $26,289,611 99.7% Accrued Interest $125,429 Securities Total $26,415,040 Money Market Fund $75,473 0.3% +0.2% 100% ✓ Total Investments $26,490,513 100.0% Current Investment Policy as approved February 8,2018 PFM Asset Management LLC 7 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Snapshot Credit Quality(S&P Ratings) Sector Allocation A Certificate BBB+ 1 9.8% US. —of Deposit 19% ti A- Treasury17.6% Portfolio Statistics 4.8% 48.2% As of September 30,2018 ____A+ 7.4% Par Value: $26,895,000 Total Market Value: 526490,513A-1Corporate Security Market Value: 526.289,611 F' 6.1 19.8% Accrued Interest: $125,429 AA Federal 2.4% L Agency/GSE Cash: 575,473 AA- Municipal 13.2% Amortized Cost: 526,811,642 AA+ 6.3% 1.2% 61.4% Yield at Market: 2.93% Yield at Cost: 2.09% Effective Duration: 2.41 Years Maturity Distribution 32% Duration to Worst: 2.44 Years 28.7% 28.5 28% Average Maturity: 2.55 Years 24.4% Average Credit:' AA 24% 20% 16% 12% 9.6% 8.8% 8% 4% 0% 0.0% 0-1Year 1-2Years 2-3Years 3-4Years 4-5Years >5Years •An average of each socurrty s credo rating assegned a moment value and adjusted for as relative amghhng rn the porlloho PFM Asset Management LLC 8 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Composition Sector Allocation September 30,2018 June 30,2018 March 31,2018 December 31,2017 Sector MV($MM) %of Total MV($MM) %of Total MV($MM) %of Total MV($MM) %of Total U.S.Treasury 12.7 48.2% 10.6 40.3% 10.4 39.6% 9.4 35.8% Corporate 5.2 19.8% 6.3 24.0% 6.1 23.4% 6.2 23.6% Certificate of Deposit 4.6 17.6% 5.3 20.1% 5.3 20.2% 5.2 19.6% Federal AgencylGSE 3.5 13.2% 3.8 14.4% 4.1 15.6% 4.7 17.9% Municipal 0.3 1.2% 0.3 1.2% 0.3 1.2% 0.7 2.7% Commercial Paper 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.1 0.4% Total $26.3 100.0% $26.2 100.0% $26.1 100.0% $26.3 100.0% 100% MW'90% art ' .;1944 ' 80% /' Q' 70% • Corrmerdal Paper ■Municipal 60% Federal Agency/GSE 50,E •Certificate of Deposit ■Corporate 40% • U.S.Treasury 30% 20% 10% 0% September 2018 June 2018 March 2018 December 2017 DOW may not mid to Mat due to rounorg. PFM Asset Management LLC 9 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Composition Maturity Distribution As of September 30,2018 Yield Average 0-1 1-2 2-3 3-4 4-6 >6 Portfolio/Benchmark at Market Maturity Years Years Years Years Years Years CITY OF SEAL BEACH INVESTMENT PORTFOLIO 2 93% 2.55 yrs 9.6% 24.4% 28.7% 28.5% 8.8% 0.0% City Of Seal Beach Investment Portfolio Custom Index 2 86% 2 77 yrs 1 7% 32 1% 26.6% 20.0% 19.6% 0.0% 35% 32.1% 30% 28.7% 28.5% 26.6% 25% 24.4% 20.0% 19.6% 20% 15% 10% 9.6% 8.8% 5% 1.7% J. 0.0% 0.0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years >5 Years ■ CITY OF SEAL BEACH City Of Seal Beach Investment Portfolio Custom Index PFM Asset Management LLC 10 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Performance Portfolio Performance(Total Return) Annualized Return Effective Current Portfolio/BenchmarkQuarter Since Inception Duration 1 Year 3 Year 5 Year 10 Year (03/31/13)" CITY OF SEAL BEACH 2.41 0.31% -0.15% 0.74% 108% - 1.03% City Of Seal Beach Investment Portfolio Custom Index 2.57 0.05% -0 58% 0 29% 0 73% 0 72% Difference 0.26% 0.43% 0.45% 0 35% - 0.31% 1.2% 1.08% 1.03% 1.0% 0.8% 0.74% 0.73% 0.72% 0.6% E ti 0.4% 0.31% 0.29% 0.2% o 0.05% 1- 0.0% -0.2% -0.15% -0.4% -0.6% -0.58% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception ■ CITY OF SEAL BEACH INVESTMENT PORTFOLIO . City Of Seal Beach Investment Porthalo Custom Index Portloto performance rs gloss ol fees unless Mertes.aWcoen —Sun*Inceeeon performance is not shovel lol pedals less fan one year PFM Asset Management LLC 11 For the Quarter Ended September 30,2018 ci I OF-SE Ai Hi ASH Portfolio Earnings Portfolio Earnings • The rise in interest rates over the past year has driven higher interest earnings and higher accrual earnings, but it has also resulted in market value depreciation that has lowered market value earnings. Portfolio Earnings 12-Months Ending 9/30/18 Market Value Basis Amortized Cost Basis Beginning Value (10/1/17) $26,349,890 $26,420,496 Net Purchases/Sales $512,177 $512,177 Change in Value ($572,456) ($121,030) Ending Value (9/30/18) $26,289,611 $26,811,642 Interest Earned $533,111 $533,111 Portfolio Earnings ($39,345) $412,081 PFM Asset Management LLC i2 Issuer Distribution For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Composition Issuer Distribution As of September 30,2018 Issuer Market Value($) %of Portfolio UNITED STATES TREASURY 12,668,320 48.2% FANNIE MAE 3,003,796 11.4% BANK OF MONTREAL 649,223 2.5% '7 SUMITOMO MITSUI FINANCIAL GROUP INC 523,655 2.0% BANK OF NOVA SCOTIA 521,675 2.0% SKANDINAVISKA ENSKILDA BANKEN AB 521,598 2.0% SWEDBANK AB 519,569 2.0% GENERAL ELECTRIC CO 512,957 2.0% WAL-MART STORES INC 508,932 1.9% THE BANK OF NEW YORK MELLON CORPORATION 490,941 1.9% AMERICAN EXPRESS CO 481,618 1.8% WESTPAC BANKING CORP 463,254 1.8% FREDDIE MAC 455,082 1.7% NORDEA BANK AB 393,368 1.5% AMERICAN HONDA FINANCE 368,689 1.4% STATE OF CONNECTICUT 313.337 1.2% PEPSICO INC 311,455 1.2% TOYOTA MOTOR CORP 291,860 1.1% PFM Asset Management LLC 13 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Composition Issuer Market Value (S) %of Portfolio CREDIT SUISSE GROUP 264.882 1.0% BB&T CORPORATION 263.984 1.0% MITSUBISHI UFJ FINANCIAL GROUP INC 262.824 1.0% JP MORGAN CHASE&CO 262.657 1.0% CANADIAN IMPERIAL BANK OF COMMERCE 260.657 1.0% BANK OF AMERICA CO 255 826 1.0% CREDIT AGRICOLE SA 255.490 1.0% CITIGROUP INC 254 608 1.0% GOLDMAN SACHS GROUP INC 246.044 0.9% HOME DEPOT INC 244 192 0.9% CATERPILLAR INC 241,618 0.9% NATIONAL RURAL UTILITIES CO FINANCE CORP 241,586 0.9% BURLINGTON NORTHERN SANTA FE 127,240 0.5% BERKSHIRE HATHAWAY INC 108.674 0.4% Grand Total: 26,289,611 100.0% PFM Asset Management LLC 14 Portfolio Transactions For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Activity Quarterly Portfolio Transactions Tran. Trade Settle Maturity Transact Realized Type Date Date Par($) CUSIP Security Description Coupon Date Amt($) Yield G/L(BV) BUY 7/2/18 7/5/18 500,000.00 912828P79 US TREASURY NOTES 1.50% 2/28/23 (475,635.20) 2.74% SELL 7/2/18 7/5/18 325,000.00 3135GOZY2 FNMA BENCHMARK NOTE 1.75% 11/26/19 322,405.15 2 48% (3.821.17) SELL 7/2/18 7/5/18 145,000.00 166764BS8 CHEVRON CORP NOTES 1.68% 2/28/19 144 918.49 2.71% (943.95) INTEREST 7/3/18 7/3/18 0.00 MONEY0002 MONEY MARKET FUND 47.59 INTEREST 7/5/18 7/5/18 475,000.00 3135G0S38 FANNIE MAE NOTES 2.00% 1/5/22 4,750.00 INTEREST 7/10/18 7/10/18 255,000.00 22532XHT8 CREDIT AGRICOLE CIB NY FLT CERT DEPOS 2.80% 4/10/20 1,809.64 INTEREST 7/10/18 7/10/18 650,000.00 86958JHB8 SVENSKA HANDELSBANKEN NY CD 1.89% 1/10/19 6,176.63 INTEREST 7/10/18 7/10/18 260,000.00 13606BVF0 CANADIAN IMP 8K COMM NY FLT CERT DEPOS 2.73% 4/10/20 1,799.12 INTEREST 7/27/18 7/27/18 235,000.00 38141GGQ1 GOLDMAN SACHS GROUP CORP NOTES 5.25% 7/27/21 6,168.75 INTEREST 7/30/18 7/30/18 515,000.00 3135GOT60 FNMA NOTES 1.50% 7/30/20 3,862.50 INTEREST 7/31/18 7/31/18 210,000.00 912828XM7 US TREASURY NOTES 1.62% 7/31/20 1,706.25 INTEREST 7/31/18 7/31/18 550,000.00 912828XQ8 US TREASURY NOTES 2.00% 7/31/22 5,500.00 INTEREST 7/31/18 7/31/18 275,000.00 912828V72 US TREASURY NOTES 1.87% 1/31/22 2,578.13 INTEREST 7/31/18 7/31/18 265,000.00 912828WY2 US TREASURY N/B 2.25% 7/31/21 2,981.25 INTEREST 7/31/18 7/31/18 550,000.00 912826N89 US TREASURY NOTES 1.37% 1/31/21 3,781.25 INTEREST 8/1/18 8/1/18 135,000.00 05531FAZ6 BRANCH BANKING&TRUST(CALLABLE)NOTES 2.15% 2/1/21 1,451.25 BUY 8/1/18 8/3/18 465,000.00 06370REU9 BANK OF MONTREAL CHICAGO CERT DEPOS 3.19% 8/3/20 (465,000.00) 3.23% BUY 8/1/18 8/3/18 1,000,000.00 912828W69 US TREASURY NOTES 1.87% 3/31122 (973,591.19) 2.82% SELL 8/1/18 8/3/18 625,000.00 037833AX8 APPLE INC BONDS 1.55% 2/7/20 619,326.04 2.68% (7.838,32) SELL 8/1/18 8/3/18 310.000.00 594918BV5 MICROSOFT CORP NOTES 1.85% 2/6/20 308,985.01 2.69% (3,728.82) PFM Asset Management LLC 15 lilt For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Activity Tran. Trade Settle Par(S) CUSIP Security Description Coupon rity Transact YieldRealized Type Date Date Date Amt(3) G/L(BV) SELL 8/1/18 8/3/18 465,000.00 06427KRC3 BANK OF MONTREAL CHICAGO CERT DEPOS 1.88% 2/7/19 467,811.35 2.43% (1,462.52) h INTEREST 8/2/18 8/2/18 525,000.00 83050FXT3 SKANDINAV ENSKILDA BANKEN NY CD 1.84% 8/2/19 4,8 .83 INTEREST 8/2/18 8/2/18 0.00 MONEY0002 MONEY MARKET FUND 44.16 INTEREST 8/7/18 8/7/18 185,000.00 06427KRC3 BANK OF MONTREAL CHICAGO CERT DEPOS 1.88% 217/19 1,739.00 INTEREST 8/7/18 8/7/18 470,000.00 96121T4A3 WESTPAC BANKING CORP NY CD 2.05% 8/3/20 4,817,50 INTEREST 817/18 8/7118 500,000.00 36962G4D3 GENERAL ELECTRIC CAPITAL CORP NOTES 6.00% 8/7/19 15,000.00 INTEREST 8/15/18 8/15/18 110,000.00 084664CK5 BERKSHIRE HATHAWAY INC CORPORATE NOTES 1.30% 8/15/19 715.00 INTEREST 8/15/18 8/15/18 550,000.00 912828NT3 US TREASURY NOTES 2.62% 8/15/20 7,218.75 INTEREST 8/17/18 8/17/18 190,000.00 3135G0N82 FNMA NOTES 1.25% 8/17/21 1,187.50 INTEREST 8/17/18 8/17/18 610,000.00 3135G0N82 FNMA NOTES 1.25% 8/17/21 3,81250 INTEREST 8/17118 8/17/18 375,000.00 3135G0N82 FNMA NOTES 1.25% 8/1721 2,313,75 INTEREST 8/20/18 8/20/18 395.000.00 65590ASN7 NORDEA BANK AB NY CD 2.72% 2/20/20 5,312.31 INTEREST 8/28/18 8/28/18 185,000.00 3135G0T29 FNMA NOTES 1.50% 2/28/20 1,387,50 INTEREST 8/31/18 8/31/18 635.000.00 912828B90 US TREASURY NOTES 2.00% 2/28/21 6,350.00 INTEREST 8/31/18 8/31/18 245,000.00 912828J43 US TREASURY NOTES 1.75% 2/28/22 2,143.75 INTEREST 8/31/18 8/31/18 760,000.00 912828D72 US TREASURY NOTES 2.00% 8/31/21 7,600.00 INTEREST 8/31/18 8/31/18 500,000.00 912828P79 US TREASURY NOTES 1.50% 22823 3,750.00 INTEREST 9/1/18 9/1/18 250,000.00 14912L500 CATERPILLAR FIN SERVICES CORP CORP NOTES 2.62% 3/1/23 3,281.25 INTEREST 9/3118 9/3/18 200,000.00 0258M0EG0 AMERICAN EXPRESS CREDIT(CALLABLE)NOTES 2.70% 3/3/22 2,700.00 INTEREST 9/3/18 9/3/18 290,000.00 0258M0EE5 AMERICAN EXPRESS CREDIT(CALLABLE)NOTE 2.20% 3/320 3.190.00 BUY 9/4/18 9/6/18 740,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 (724,203.44) 2.75% INTEREST 9/5/18 9/5/18 0.00 MONEY0002 MONEY MARKET FUND 78.88 PFM Asset Management LLC 16 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Activity Tran. Trade Settle Maturity Transact Realized Type Date Date Par(S) CUSIP Security Description Coupon Date Amt(S) Yield Gil.(BV) SELL 9/5/18 9/6/18 650,000.00 86958JHB8 SVENSKA HANDELSBANKEN NY CD 1.89% 1/10119 850,925.14 2.00% (1,054.11) INTEREST 9/9/18 9/9/18 385,000.00 02665WBG5 AMERICAN HONDA FINANCE CORP NOTES 1.70% 9/9/21 3,272.50 INTEREST 9/15/18 9/15/18 315,000.00 20772JZK1 CT ST TXBL GO BONDS 1.97% 3115/19 3,109,05 INTEREST 9/23118 9/23/18 265,000.00 46625HJE1 JPMORGAN CHASE&CO CORP NOTES 3.25% 9/23/22 4.306.25 INTEREST 9/25/18 9/25/18 265,000.00 06539RGM3 MUFG BANK LTD/NY CERT DEPOS 2.07% 9/25/19 5,531.21 INTEREST 9/30/18 9/30/18 125,000.00 912828J84 US TREASURY NOTES 1.37% 3/31/20 B59.38 INTEREST 9/30/18 9/30/18 410,000.00 912828L57 US TREASURY NOTES 1.75% 9/30/22 3,587,50 INTEREST 9/30/18 9/30/18 375,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 3.515.63 INTEREST 9/30/18 9/30/18 740,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 6,937.50 INTEREST 9/30/18 9/30/18 1.000,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 9,375.00 INTEREST 9/30/18 9/30/18 500,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 4,687.50 INTEREST 9/30/18 9/30/18 75.000.00 912828J84 US TREASURY NOTES 1.37% 3/31/20 515.63 INTEREST 9/30/18 9/30/18 275,000.00 912828J84 US TREASURY NOTES 1.37% 3/31/20 1,890.63 INTEREST 9/30/18 9/30/18 650.000.00 912828L57 US TREASURY NOTES 1,75% 9/30/22 5.687.50 INTEREST 9/30/18 9/30/18 350,000.00 912828W89 US TREASURY NOTES 1.87% 3/31/22 3,281.25 TOTALS 62,638.92 (18,848.89) PFM Asset Management LLC 17 Portfolio Holdings For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S.Treasury Bond I Note US TREASURY NOTES 912828J84 125,000.00 AA+ Aaa 6/22/2016 6/27/2016 126,591.80 1.03 4.72 125,641.52 122,461.00 DTD 03/31/2015 1.375%03/31/2020 US TREASURY NOTES 912828J84 275.000.00 AA+ Aaa 6/23/2016 6/28/2016 278,125.98 1.07 10.39 276,261.31 269,414.20 DTD 03/31/2015 1.375%03/31/2020 US TREASURY NOTES 912828J84 75,000.00 AA+ Aaa 6/22/2016 6/27/2016 75,919.92 1.04 2.83 75,370.80 73,476.60 DTD 03/31/2015 1.375%03/31/2020 US TREASURY NOTES 912828K58 850,000.00 AA+ Aaa 2/1/2016 2/3/2016 854,482.42 1.25 4,890.96 851.701.50 831,572.00 DTD 04/30/2015 1.375%04/30/2020 US TREASURY NOTES 912828VF4 110,000.00 AA+ Aaa 12/2/2015 12/4/2015 109.119.14 1.56 508.30 109,666.42 107,469.12 DTD 05/31/2013 1.375%05/31/2020 US TREASURY NOTES 912828XM7 210,000.00 AA+ Aaa 3/30/2016 3/31/2016 213.519.14 1.23 574.93 211,509.78 205,553.88 DTD 07/31/2015 1.625%07/31/2020 US TREASURY NOTES 912828NT3 550,000.00 AA+ Aaa 9/1/2015 9/3/2015 578.144.53 1.55 1,843.92 560,900.86 548,044.75 DTD 08/16/2010 2.625%08/15/2020 US TREASURY NOTES 912828WC0 370,000.00 AA+ Aaa 1/6/2016 1/11/2016 371.141.80 1.68 2,709.65 370,507.58 361,891.82 DTD 10/31/2013 1.750%10/31/2020 US TREASURY NOTES 912828N89 550,000.00 M+ Aaa 5/26/2016 5/27/2016 550,429.69 1.36 1,274.12 550,218.98 531,674.00 DTD 01/31/2016 1.375%01/31/2021 US TREASURY NOTES 912828B90 635,000.00 M+ Aaa 10/3/2016 10/5/2016 658,117.97 1.15 1,087.57 647,820.61 622,275.24 DTD 02/28/2014 2.000%02/28/2021 US TREASURY NOTES 912828078 180,000.00 AA+ Aaa 2/1/2017 2/3/2017 176.400.00 1.87 1,035.73 177,774.38 173,362.50 DTD 05/022016 1.375%04/30/2021 US TREASURY NOTES 912828R77 380,000.00 M+ Aaa 7/6/2017 7/72017 373,869.53 1.81 1,755.94 375,767.14 365,453.22 DID 05/31/2016 1.375%05/31/2021 US TREASURY NOTES 912828R77 150,000.00 AA+ Aaa 822017 8/3/2017 148,376.95 1.67 693.14 148,859.69 144 257.85 DTD 05/3120161.375%05/312021 US TREASURY N/B 912828WY2 265,000.00 AA+ Aaa 11/22/2016 11/23/2016 270,631.25 1.78 1,004.55 268,458.53 260 445.18 DTD 07/312014 2.250%07/31/2021 US TREASURY NOTES 912828D72 760,000.00 M+ Aaa 12/1/2016 12/5/2016 762,671.88 1.92 1,301.66 761 678.60 741,415.72 DTD 09/02/2014 2.000%08/31/2021 PFM Asset Management LLC 18 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description S&P Moodys Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S.Treasury Bond I Note US TREASURY NOTES 912828F96 500,000.00 M+ Aaa 4/3/2017 4/5/2017 503,105.47 1.86 4,184.78 502,124.76 486,933.50 DTD 10/31/2014 2.000%10/31/2021 US TREASURY NOTES 912828F96 525,000.00 AA+ Aaa 1/3/2017 1/5/2017 526,168.94 1.95 4,394.02 525,764.00 511,280.18 DTD 10/31/2014 2.000%10/31/2021 US TREASURY NOTES 912828F96 590,000.00 AA+ Aaa 3/1/2018 3/5/2018 580,251.17 2.48 4,938.04 581,730.42 574,581.53 DTD 10/31/2014 2.000%10/31/2021 US TREASURY NOTES 912828V72 275,000.00 AA+ Aaa 7/6/2017 7/11/2017 274,495.12 1.92 868.72 274,627.42 266,008.88 DTD 01/31/20171.875%01/31/2022 US TREASURY NOTES 912828J43 245,000.00 AA+ Ma 3/15/2017 3/17/2017 240,482.81 2.14 367.16 241,836.82 235,831.61 DTD 03/02/2015 1.750%02/28/2022 US TREASURY NOTES 912828W89 740,000.00 AA+ Aaa 9/4/2018 9/6/2018 718,175.78 2.75 38.12 718,579.72 714,620.22 DID 03/3120171.875%03/31/2022 US TREASURY NOTES 912828W89 1,000,000.00 AA+ Ma 8/1/2018 8/32018 967,187.50 2.82 51.51 968,577.44 965,703.00 DTD 03/31/2017 1.875%03/31/2022 US TREASURY NOTES 912828W89 350,000.00 AA+ Ma 12/1/2017 12/5/2017 346,732.42 2.10 18.03 347,334.66 337,996.05 DTD 03/3120171.875%03/312022 US TREASURY NOTES 912828W89 500,000.00 AA+ Aaa 1/3/2018 1/4/2018 493,886.72 2.18 25.76 494,918.47 482,851.50 DTD 03/31/2017 1.875%03/31/2022 US TREASURY NOTES 912828W89 375,000.00 AA+ Ma 11/17/2017 11202017 372,993.16 2.00 19.32 373,379.37 362,138.63 DID 03/3120171.875%03/31/2022 US TREASURY NOTES 912828X08 550,000.00 M+ Ma 8/30/2017 8/31/2017 556,810.55 1.74 1,853.26 555,359.70 531,652.55 DTD 07/31/2015 2.000%07/31/2022 US TREASURY NOTES 912828L57 410,000.00 AA+ Ma 10/3/2017 10/6/2017 406,508.59 1.93 19.71 407,173.75 391,790.26 DID 09/30/20151.750%09/30/2022 US TREASURY NOTES 912828L57 650,000.00 AA+ Aaa 6/4/2018 6/6/2018 623 466.80 2.76 31.25 625,334.40 621.130.90 DTD 09/30/2015 1.750%09/302022 US TREASURY N/B NOTES 9128283C2 370,000.00 AA+ Asa 5/2/2018 5/42018 357,657.03 2.80 3,096.74 358,716.95 356,761.03 DTD 10/312017 2.000%10/31/2022 US TREASURY NOTES 912828P79 500,000.00 AA+ Ma 7/2/2018 7/5/2018 473,046.88 2.74 642.27 474.365.34 470,273.50 DTD 02292016 1.500%02/28/2023 PFM Asset Management LLC 19 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description SRP Moody's Trade Settle Original YTM Accrued Amortized Market Dated DatelCouponlMaturky CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Security Type Sub-Total 13,066,000.00 12,988,610.94 1.99 39,247.10 12,981,980.92 12,888,320.42 Municipal Bond I Note CT ST TXBL GO BONDS 20772JZK1 315,000.00 A Al 3/13/2015 3/25/2015 315,000.00 1.97 276.36 315,000.00 313,336.80 DTD 03/25/2015 1.974%03/15/2019 Security Type Sub-Total 316,000.00 316,000.00 1.97 276.36 316,000.00 313,338.80 Federal Agency Bond/Note FNMA NOTES 3135G0T29 185,000.00 M+ Aaa 2/24/2017 2/28/2017 184,881.60 1.52 254.38 184,943.76 181,836.13 DTD 02/28/2017 1.500%02/28/2020 FHLMC AGENCY NOTES 3137EAEF2 465,000.00 AA+ Aaa 4/19/2017 4/202017 463,409.70 1.49 2,859.43 464,168.12 455,081.55 DTD 04/20/2017 1.375%04202020 FNMA NOTES 3135G0T60 515,000.00 M+ Aaa 7/28/2017 8/1/2017 513,439.55 1.60 1,308.96 514,038.27 503,278.60 DTD 08/01/2017 1.500%07/30/2020 FANNIE MAE NOTES 313500027 265,000.00 M+ Aaa 4/12/2018 4/13/2018 264,605.15 2.55 3,091.67 264,664.64 262,304.95 DTD 04/13/2018 2.500%04/13/2021 FNMA NOTES 3135GON82 190,000.00 AA+ Aaa 8/17/2016 8/19/2016 189,350.01 1.32 290.28 189,620.28 181.494.65 DTD 08/19/2016 1.250%08/17/2021 FNMA NOTES 3135GON82 610,000.00 M+ Aaa 8/17/2016 8/19/2016 607,529.50 1.33 931.94 608,556.58 582,693.35 DTD 08/19/2016 1.250%08/17/2021 FNMA NOTES 3135G0N82 375,000.00 M+ Aaa 9/1/2016 9/2/2016 372,705.00 1.38 572.92 373,649.42 358.213.13 DTD 08/1920161.250%08/172021 FANNIE MAE NOTES 313500838 475,000.00 AA+ Aaa 6272017 6/29/2017 478,035.25 1.85 2,269.44 477,216.82 461,287.70 DTD 01/09/2017 2.000%01/05/2022 FANNIE MAE NOTES 313500T45 490,000.00 AA+ Aaa 6/27/2017 6/29/2017 489 926.50 1.88 4.491.67 489,948 74 472 687.32 DTD 04/102017 1.875%04/05/2022 Security Type Sub-Total 3,570,000.00 3,563,882.28 1.64 16,070.69 3,666,806.63 3,468,877.38 Corporate Note PFM Asset Management LLC 20 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security Type/Descriptlon S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note GENERAL ELECTRIC CAPITAL CORP 36962G4D3 500,000.00 A A2 4/10/2015 4/15/2015 588,015.00 1.74 4,500.00 517,872.13 512,956.50 NOTES DTD 08/072009 6.000%08/07/2019 BERKSHIRE HATHAWAY INC 084664CK5 110,000.00 AA Aa2 8/8/2016 8/15/2016 109,893.30 1.33 182.72 109,968.55 108,673.51 CORPORATE NOTES DTD 08/1520161.300%08/15/2019 BURLINGTON NRTH CORP 12189TBC7 126000.00 A+ A3 6/3/2016 6/8/2016 137,987.50 1.48 2,937.50 128,986.74 127,240.25 DTD 09/24/2009 4.700%10/01/2019 AMERICAN EXPRESS CREDIT 0258MOEE5 290,000.00 A- A2 2/28/2017 3/3/2017 289,698.40 2.24 496.22 289,854.55 286,752.00 (CALLABLE)NOTE DTD 03/032017 2.200%03/03/2020 TOYOTA MOTOR CREDIT CORP 89236TDU6 170,000.00 AA- Aa3 4/11/2017 4/17/2017 169,921.80 1.97 1,510.17 169,959.17 167,432.66 DTD 04/17/2017 1.950%04/17/2020 WAL-MART STORES INC CORP NOTE 931142EA7 520,000.00 AA Aa2 10/11/2017 10/20/2017 519,246.00 1.95 2,909.11 519,464.28 508,931.80 DTD 10/20/2017 1.900%12/15/2020 BRANCH BANKING 8 TRUST 05531FAZ6 135,000.00 A- A2 10/23/2017 10/26/2017 134,937.90 2.17 483.75 134,953.78 131,762.30 (CALLABLE)NOTES DTD 10/26/2017 2.150%02/01/2021 TOYOTA MOTOR CREDIT CORP 89236TEU5 125.000.00 AA- Aa3 4/10/2018 4/13/2018 124,950.00 2.96 1,720.83 124,957.50 124,427.13 NOTES DTD 04/132018 2.950%04/13/2021 PEPSICO INC CORP(CALLABLE) 713448DX3 320,000.00 A+ Al 10/5/2017 10/102017 319,936.00 2.01 2,951.11 319,953.00 311,455.36 NOTE DTD 10/10/2017 2.000%04/15/2021 BANK OF NEW YORK MELLON CORP 06406FAA1 500,000.00 A Al 9/7/2017 9/112017 508.860.00 1.99 5,763.89 506,264.51 490,940.50 (CALLABLE) DTD 02/19/2016 2.500%04/15/2021 BANK OF AMERICA CORP NOTE 06051GFW4 260,000.00 A- A3 11/1/2017 11/3/2017 261,947.40 2.40 3,071.25 261,451.18 255,826.22 DTD 04/19/2016 2.625%04/19/2021 GOLDMAN SACHS GROUP CORP 38141GGO1 235,000.00 BBB+ A3 11/3/2017 11/72017 257,534.15 2.53 2,193.33 252,280.63 246,044.30 NOTES DTD 07272011 5.250%07/27/2021 PFM Asset Management LLC 21 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Po,folio Holdings Managed Account Detail of Securities Held Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Coat Value Corporate Note AMERICAN HONDA FINANCE CORP 02665WBG5 385,000.00 A+ A2 9/9/2016 9/14/2016 382,370.45 1.84 399.97 383.421.44 368,688.71 NOTES DTD 09/09/2016 1.700%09/09/2021 CITIGROUP INC CORP(CALLABLE) 172967LC3 260,000.00 BBB+ Baal 11/20/2017 11/22/2017 261.775.80 2.72 2.366.72 261.408.98 254,608.38 NOTE DTD 12/08/2016 2.900%12/08/2021 AMERICAN EXPRESS CREDIT 0258M0E00 200,000.00 A- A2 4/3/2018 4/5/2018 195,958.00 3.25 420.00 196,439.12 194,866.00 (CALLABLE)NOTES DTD 03/03/2017 2.700%03/03/2022 BB&T CORP(CALLABLE)NOTES 05531FAX1 135,000.00 A- A2 4/3/2018 4/5/2018 132,493.05 3.25 1,856.25 132,783.54 132,221.43 DTD 03/21/2017 2.750%04/01/2022 NATIONAL RURAL UTIL COOP CORP 637432NM3 250,000.00 A Al 4/3/2018 4/5/2018 243,162.50 3.12 2.600.00 243,944.68 241,586.25 NOTES DTD 04/25/2017 2.400%04/25/2022 JPMORGAN CHASE&CO CORP 46625HJE1 265,000.00 A- A3 4/3/2018 4/5/2018 264,189.10 3.32 191.39 264,274.15 262,656.87 NOTES DTD 09/24/2012 3.250%09/23/2022 CATERPILLAR FIN SERVICES CORP 14912L500 250,000.00 A A3 4/3/2018 4/5/2018 243,572.50 3.20 546.88 244,173.45 241,618.25 CORP NOTES DTD 02/28/2013 2.625%03/01/2023 HOME DEPOT INC CORP NOTES 437076AZ5 250,000.00 A A2 4/3/2018 4/5/2018 245,250.00 3.11 3,375.00 245,684.30 244,192.25 DTD 04/05/2013 2.700%04/01/2023 Security Type Sub-Total 6,286,000.00 6,391,698.86 2.36 40,476.09 6,308,095.68 6,212,880.67 Certificate of Deposit BANK OF MONTREAL CHICAGO CERT 06427KRC3 185,000.00 A-1 P-1 2/8/2017 2/9/2017 185,000.00 1.90 521.70 185,000.00 184,820.00 DEPOS DTD 02/09/2017 1.880%02/07/2019 BANK OF NOVA SCOTIA HOUSTON LT 06417GUE6 100,000.00 A-1 P-1 4/5/2017 4/6/2017 100.000.00 1.91 949.69 100,000.00 99,647.20 CD DTD 04/06/2017 1.910%04/05/2019 PFM Asset Management LLC 22 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description S&P Moodys Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit SUMITOMO MITSUI BANK NY CD 86563YVN0 525,000.00 A-1 P-1 5/3/2017 5/412017 525,000.00 2.05 4,514.27 525,000.00 523,654.95 DTD 05/04/2017 2.050%05/03/2019 SKANDINAV ENSKILDA BANKEN NY 83050FXT3 525,000.00 A-1 P-1 8/3/2017 8/4/2017 524,795.25 1.85 1,610.00 524,914.22 521,598.00 CD DTD 08/042017 1.840%08/02/2019 MUFG BANK LTD/NY CERT DEPOS 06539RGM3 265,000.00 A-1 P-1 9/25/2017 9272017 265,000.00 2.07 91.43 265,000.00 262,824.09 DTD 09/27/2017 2.070%09/25/2019 CREDIT SUISSE NEW YORK CERT 22549LFR1 265,000.00 A Al 2/7/2018 2/8/2018 265,000.00 2.67 4,579.42 265,000.00 264,882.08 DEPOS DTD 02/08/2018 2.670%02/07/2020 NORDEA BANK AB NY CD 65590ASN7 395,000.00 AA- Aa3 2/20/2018 2222018 395,000.00 2.72 1,223.62 395,000.00 393,368.26 DTD 02222018 2.720%02/20/2020 CANADIAN IMP BK COMM NY FLT 13606BVF0 260,000.00 A+ Aa2 4162018 4/10/2018 260,000.00 2.78 1,637.35 260,000.00 260,657.02 CERT DEPOS DTD 04/102018 2.731%04/10/2020 CREDIT AGRICOLE CIB NY FLT CERT 22532XHT8 255,000.00 A Al 4/6/2018 4/10/2018 255,000.00 2.85 1,647.01 255,000.00 255,489.60 DEPOS DTD 04/10/2018 2.801%04/10/2020 BANK OF NOVA SCOTIA HOUSTON CD 06417GU22 420,000.00 A+ Aa2 6/5/2018 6/72018 419,840.40 3.10 4,096.40 419,864.90 422.028.18 DTD 06/07/2018 3.080%06/05/2020 BANK OF MONTREAL CHICAGO CERT 06370REU9 465,000.00 A+ Aa2 8/1/2018 8/312018 465,000.00 3.23 2,431.05 465,000.00 464,403.41 DEPOS DID 08/03/2018 3.190%08/03/2020 WESTPAC BANKING CORP NY CD 9612174A3 470,000.00 AA- Aa3 8/3/2017 8/7/2017 470,000.00 2.05 1,445.25 470,000.00 463,253.62 DTD 08/07/2017 2.050%08/03/2020 SWEDBANK(NEW YORK)CERT 87019U6D6 530,000.00 AA- Aa2 11/16/2017 11/17/2017 530,000.00 2.30 4,611.88 530,000.00 519,569.07 DEPOS DTD 11/172017 2.270%11/16(2020 Security Type Sub-Total 4,660,000.00 4,659,635.66 2.44 29,369.07 4,669,779.12 4,636,196.48 PFM Asset Management LLC 23 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Portfolio Holdings Managed Account Detail of Securities Held Security TypelDescription S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Managed Account Sub Total 26,895,000.00 26,918,727.70 2.09 125,429.31 26,811,642.35 26,289,610.75 Securities Sub-Total $26,895,000.00 $26,918,727.70 2.09% $125,429.31 $26,811,642.35 $26,289,610.75 Accrued Interest $125,429.31 Total Investments $26,415,040.06 Bolded Items are lot-yard settling trades. PFM Asset Management LLC 24 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Appendix IMPORTANT DISCLOSURES This material is based on information obtained from sources generally believed to be reliable and available to the public;however.PFM Asset Management LLC cannot guarantee its accuracy,completeness or suitability.This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.All statements as to what will or may happen under certain circumstances are based on assumptions.some,but not all of which.are noted in the presentation.Assumptions may or may not be proven correct as actual events occur,and results may depend on events outside of your or our control.Changes in assumptions may have a material effect on results.Past performance does not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities. • Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data,Bloomberg,or Telerate. Where prices are not available from generally recognized sources,the securities are priced using a yield based matrix system to arrive at an estimated market value. • In accordance with generally accepted accounting principles.information is presented on a trade date basis;forward settling purchases are included in the monthly balances,and forward settling sales are excluded. • Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards(GIPS).Unless otherwise noted.performance is shown gross of fees. Quarterly returns are presented on an unannualized basis.Returns for periods greater than one year are presented on an annualized basis.Past performance is not indicative of future returns. • Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets. • Money market fund/cash balances are included in performance and duration computations. • Standard&Poor's is the source of the credit ratings.Distribution of credit rating is exclusive of money market fund/LGIP holdings. • Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date,although.they may be called prior to maturity. • MBS maturities are represented by expected average life. PFM Asset Management LLC 25 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Appendix GLOSSARY • ACCRUED INTEREST:Interest that is due on a bond or other fixed income security since the last interest payment was made. • AGENCIES:Federal agency securities and/or Government-sponsored enterprises. • AMORTIZED COST:The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report.Discount or premium with respect to short-term securities(those with less than one year to maturity at time of issuance)is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis. • BANKERS'ACCEPTANCE:A draft or bill or exchange accepted by a bank or trust company.The accepting institution guarantees payment of the bill as well as the insurer. • COMMERCIAL PAPER:An unsecured obligation issued by a corporation or bank to finance its short-term credit needs,such as accounts receivable and inventory. • CONTRIBUTION TO DURATION:Represents each sector or maturity range's relative contribution to the overall duration of the portfolio measured as a percentage weighting.Since duration is a key measure of interest rate sensitivity,the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate sensitivity of the portfolio. • DURATION TO WORST:A measure of the sensitivity of a security's price to a change in interest rates.stated in years,computed from cash flows to the maturity date or to the put date.whichever results in the highest yield to the investor. • EFFECTIVE DURATION:A measure of the sensitivity of a security's price to a change in interest rates,stated in years. • EFFECTIVE YIELD:The total yield an investor receives in relation to the nominal yield or coupon of a bond.Effective yield takes into account the power of compounding on investment returns,while ominal yield does not. • FDIC:Federal Deposit Insurance Corporation.A federal agency that insures bank deposits to a specified amount. • INTEREST RATE:Interest per year divided by principal amount and expressed as a percentage. • MARKET VALUE:The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date. • MATURITY:The date upon which the principal or stated value of an investment becomes due and payable. • NEGOTIABLE CERTIFICATES OF DEPOSIT:A CD with a very large denomination,usually$1 million or more,that can be traded in secondary markets. • PAR VALUE:The nominal dollar face amount of a security. PFM Asset Management LLC 26 For the Quarter Ended September 30,2018 CITY OF SEAL BEACH Appendix GLOSSARY • PASS THROUGH SECURITY:A security representing pooled debt obligations that passes income from debtors to its shareholders.The most common type is the mortgage-backed security. • REPURCHASE AGREEMENTS:A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. • SETTLE DATE:The date on which the transaction is settled and monies/securities are exchanged.If the settle date of the transaction(i.e.,coupon payments and maturity proceeds)occurs on a non-business day,the funds are exchanged on the next business day. • TRADE DATE:The date on which the transaction occurred:however,the final consummation of the security transaction and payment has not yet taken place. • UNSETTLED TRADE:A trade which has been executed;however.the final consummation of the security transaction and payment has not yet taken place. • U.S.TREASURY:The department of the U.S.government that issues Treasury securities. • YIELD:The rate of return based on the current market value,the annual interest receipts,maturity value,and the time period remaining until maturity.stated as a percentage on an annualized basis. • YTM AT COST:The yield to maturity at cost is the expected rate of return based on the original cost.the annual interest receipts,maturity value,and the time period from purchase date to maturity,stated as a percentage on an annualized basis. • YTM AT MARKET:The yield to maturity at market is the rate of return based on the current market value,the annual interest receipts,maturity value,and the time period remaining until maturity.stated as a percentage on an annualized basis. PFM Asset Management LLC 27