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Home My WebLink About4.05 City Treasurer's Info Report or 19 82 STAFF REPORT CITY CLERK CITY COUNCIL File #320-30 DATE: February 17, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: City Treasurer's Informational Report of Investments forth Quarter Ending December 31, 2014 Prepared by Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City of Dublin's Investment Policy calls for a semi-annual report of investments. This report is for the quarter ending December 31, 2014, and includes a monthly transaction ledger. The City's investment portfolio for this period totaled $176,234,415 (book value) with an average market yield of 0.72%. All investment transactions continue to comply with the City's Investment Policy and the California Government Code. As required by the Policy, the City Treasurer (Administrative Services Director) affirms that the City is able to meet its expenditure requirements for the next six months. FINANCIAL IMPACT: Investments are made in accordance with the City Investment Policy and State Law. Interest earned is apportioned between the Funds (i.e. General Fund, Gas Tax Fund, etc.) based upon the proportionate share of the total cash balance. At this time, Staff is not anticipating interest earnings to vary significantly different from the FY 2014-15 budget. RECOMMENDATION: Staff recommends that the City Council receive the report. Reviewed By Assistant City Manager DESCRIPTION: The total investment portfolio of $176,234,415 (book value) is comprised of $109,068,878 managed by Chandler Asset Management (Chandler), and $65,165,537 invested by the City in local government pools. The average market yield of the Chandler portfolio and the local pools was 0.92% and 0.20%, respectively. The portfolio includes both discretionary and restricted funds and the balance will fluctuate throughout the year due to normal cash flow. Page 1 of 4 ITEM NO. 4.5 Economic Update Highlights The following are some highlights from the Economic Update included in the attached Investment Report prepared by Chandler (Attachment 1): • Analysts expect the economy to continue to grow at a modest pace and the labor market to expand. The unemployment rate declined to 5.8% from 5.6% in December. • The manufacturing sector remained strong leading into 2015, and low fuel prices are likely to support continued consumer spending. Housing data remains volatile in spite of ongoing low mortgage rates. • The Federal Open Market Committee (FOMC) left interest rates unchanged through 2014. The first rate hike is likely to be in mid-2015. City of Dublin Portfolio The City's portfolio managed by Chandler has maintained a healthy balance of investment types. As illustrated in Chart 1 below, Corporate investments increased during the quarter, shifting away from Commercial Paper and Agency holdings. The California Asset Management Program (CAMP) balance grew with additional inflows of cash. Chart 1: Investments by Type, September 30 — December 31, 2014 December 31,2014 September 30,2014 acal Gov �,'1�3A7PoOTFYG�'OW L MF O..�Ip_... Irrve QnvenG Paper 306 25.1 Pool 41 ie 12.0 �4 v� //// corn, May i uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu um �Inv e a commordal MarkO pool Paper Fund , 0 5 ✓ a ::.. 24% //, 0I L9oruay 0.1 N 1akek r 0 Fund F us 273 �11.2% 53°Yr us Corporate 9.3% ,ASS ? 7reas:�ry A BS US 12'x,.... 4 1X.3%11 4.0 � Trreasu 1'7"7 9% The market value of the City's portfolio increased $18.2 million since September 2014 (see Table 1 below), and $25.9 million over the same quarter the prior year, due to increases in Property Tax, Sales Tax, and Building Permits, as well as an increased level of developer contribution revenue. Page 2 of 4 Table 1: Portfolio Values and Yield to Maturity Dec 31 Sept30 December 31,2014 2013 2014 Market Market Par Book %of %of Total Book Market Holdings Value Value Value Value Market Value Subtotal Portfolio Yield Yield Managed by City LAIF 47,500,000 48,458,874 45,955,000 45,955,000 45,955,000 68.42% 29.13% 0.27% 0.27% CAMP 4,641,245 800,818 21,210,537 21,210,537 21,210,537 31.58% 13.45% 0.05% 0.05% Agency Money Market SUBTOTAL 52,141,245 49,259,692 67,165,537 67,165,537 67,165,537 100.00% 38.13% 0.201% 0.201% Managed by Chandler ABS 3,701,443 6,347,738 5,708,843 5,709,195 5,705,831 5.24% 5.24% 0.63% 0.70.10 Agency 55,896,362 52,933,223 48,575,000 48,605,779 48,478,855 44.57% 44.57% 0.81% 0.78% Commercial Paper 5,894,649 6,425,138 4,290,000 4,286,830 4,286,830 3.94% 3.94% 0.25% 0.25% Money Market 4,547,383 445,543 211,606 211,606 211,606 0.19% 0.19% 0.01% 0.01% US Corporates 9,637,436 14,597,508 19,450,000 19,545,913 19,555,838 17.85% 17.85% 1.61% 1.61% US Treasury 18,498,926 27,959,923 30,750,000 30,709,555 30,727,793 28.21% 28.21% 0.89% 0.84% SUBTOTAL 98,176,199 108,709,073 108,985,449 109,068,878 108,966,753 100.00% 61.87% 0.94% 0.92% Accrued Interest 193,626 219,551 304,279 98,369,825 108,928,624 109,271,031 TOTAL PORTFOLIO 150,511,070 158,188,316 176,150,986 176,234,415 176,436,568 100.00% 0.64% Change from Sept 30,2014 18,248,252 Change from Dec 31,2013 25,925,498 Overall market yield-to-maturity (YTM) has increased from 0.56% to 0.64% since last quarter (see Table 2 below). For detailed monthly transactions, see Attachment 2. Table 2: Quarterly Holdings (Par Value) by Type, and YTM, 5 Quarters Or Holdings(Par Val ue) 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 YTM LAIF/CAMP 52,141,245 39,388,468 49,233,411 49,259,692 67,165,537 0.20% ABS 3,700,000 5,420,000 7,025,526 6,350,051 5,708,843 0.70% Agency 56,000,000 56,000,000 56,000,000 53,075,000 48,575,000 0.78% Commercial Paper 5,900,000 5,905,000 6,300,000 6,430,000 4,290,000 0.25% Money Market 4,547,383 3,008,529 353,413 445,543 211,606 0.01% US Corporates 9,475,000 13,475,000 14,475,000 14,475,000 19,450,000 1.61% US Treasury 18,500,000 24,500,000 24,350,000 28,000,000 30,750,000 0.84% TOTAL 150,263,628 147,696,997 157,737,351 158,035,285 176,150,986 YIELD TO MATURITY 0.46% 0.50% 0.44% 0.56%1 0.64% Funds Managed by the City The City participates in two local agency investment pools managed by government finance professionals and treasurers: the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP). The City has typically carried close to the $50 million maximum allowable in LAIF with any excesses resulting from the timing of large payments deposited into CAMP as a temporary holding place. Page 3 of 4 Table 3: Quarterly LAW Yields, Recent Six Years March June Sept Dec 2009 1.91 1.51 0.90 0.60 2010 0.56 0.56 0.51 0.46 2011 0.51 0.48 0.38 0.38 2012 0.38 0.36 0.35 0.32 2013 0.28 0.24 0.26 0.26 2014 0.23 0.22 0.24 0.25 NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Investment Report for the Period Ending December 31, 2014 2. Monthly Investment Transactions, October - December 2014 Page 4 of 4 CACity of Dublin Consolidated Transaction Ledger Account#10221 11/30/14 Thru 12/31/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 12/01/2014 31846V203 16.57 First American Govt Obligation Fund 1.000 16.57 0.00 16.57 0.00 Purchase 12/08/2014 31846V203 15,000.00 First American Govt Obligation Fund 1.000 15,000.00 0.00 15,000.00 0.00 Purchase 12/12/2014 94974BFU9 1,400,000.00 Wells Fargo Corp Note 99.962 2.13% 1,399,468.00 4,131.94 1,403,599.94 0.00 2.125%Due 4/22/2019 Purchase 12/15/2014 31846V203 6,250.00 First American Govt Obligation Fund 1.000 6,250.00 0.00 6,250.00 0.00 Purchase 12/15/2014 31846V203 491.67 First American Govt Obligation Fund 1.000 491.67 0.00 491.67 0.00 Purchase 12/15/2014 31846V203 46,377.80 First American Govt Obligation Fund 1.000 46,377.80 0.00 46,377.80 0.00 Purchase 12/15/2014 31846V203 977.50 First American Govt Obligation Fund 1.000 977.50 0.00 977.50 0.00 Purchase 12/15/2014 31846V203 513.67 First American Govt Obligation Fund 1.000 513.67 0.00 513.67 0.00 Purchase 12/15/2014 31846V203 79,756.28 First American Govt Obligation Fund 1.000 79,756.28 0.00 79,756.28 0.00 Purchase 12/18/2014 31846V203 61,377.96 First American Govt Obligation Fund 1.000 61,377.96 0.00 61,377.96 0.00 Purchase 12/18/2014 31846V203 571.08 First American Govt Obligation Fund 1.000 571.08 0.00 571.08 0.00 Purchase 12/18/2014 912828G61 4,000,000.00 US Treasury Note 99.657 1.57% 3,986,263.40 2,967.03 3,989,230.43 0.00 1.5%Due 11/30/2019 Purchase 12/21/2014 31846V203 21,250.00 First American Govt Obligation Fund 1.000 21,250.00 0.00 21,250.00 0.00 Purchase 12/22/2014 68389XAX3 500,000.00 Oracle Corp Note 100.397 2.16% 501,985.00 2,312.50 504,297.50 0.00 2.25%Due 10/8/2019 Purchase 12/24/2014 31846V203 8,590.00 First American Govt Obligation Fund 1.000 8,590.00 0.00 8,590.00 0.00 Purchase 12/31/2014 31846V203 1,406.25 First American Govt Obligation Fund 1.000 0.01 k 1,406.25 0.00 1,406.25 0.00 Purchase 12/31/2014 90CAMP$00 590.45 Public Financial Management CAMP 1.000 0.05% 590.45 0.00 590.45 0.00 Subtotal 6,143,169.23 6,130,885.63 9,411.47 6,140,297.10 0.00 Security 12/01/2014 90CAMP$00 2,100,000.00 Public Financial Management CAMP 1.000 2,100,000.00 0.00 2,100,000.00 0.00 Contribution Security 12/15/2014 90CAMP$00 16,809,000.00 Public Financial Management CAMP 1.000 16,809,000.00 0.00 16,809,000.00 0.00 Contribution Subtotal 18,909,000.00 18,909,000.00 0.00 18,909,000.00 0.00 TOTAL ACQUISITIONS 25,052,169.23 25,039,885.63 9,411.47 25,049,297.10 0.00 DISPOSITIONS Sale 12/12/2014 31846V203 157,946.95 First American Govt Obligation Fund 1.000 157,946.95 0.00 157,946.95 0.00 Sale 12/12/2014 94974BEUO 1,225,000.00 Wells Fargo Corp Note 101.112 0.36% 1,238,622.00 7,030.99 1,245,652.99 1,106.82 3.625%Due 4/15/2015 Chandler Asset Management-CONFIDENTIAL Page 6 Execution Time 1/13/2015 3:27:08 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 11/30/14 Thru 12/31/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gain/Loss DISPOSITIONS Sale 12/18/2014 31846V203 733,351.05 First American Govt Obligation Fund 1.000 733,351.05 0.00 733,351.05 0.00 Sale 12/18/2014 912828UT5 2,000,000.00 US Treasury Note 100.050 0.07% 2,001,008.92 1,085.16 2,002,094.08 768.06 0.25%Due 3/31/2015 Sale 12/18/2014 912828VHO 1,250,000.00 US Treasury Note 100.129 0.13% 1,251,607.14 2,178.16 1,253,785.30 809.75 0.375%Due 6/30/2015 Sale 12/22/2014 31846V203 504,297.50 First American Govt Obligation Fund 1.000 504,297.50 0.00 504,297.50 0.00 Subtotal 5,870,595.50 5,886,833.56 10,294.31 5,897,127.87 2,684.63 Paydown 12/15/2014 161571 FL3 0.00 Chase CHAIT Pool#2012-A5 100.000 0.00 491.67 491.67 0.00 0.59%Due 8/15/2017 Paydown 12/15/2014 47787RAC4 46,170.42 John Deere Owner Trust 2012-B A3 100.000 46,170.42 207.38 46,377.80 0.00 0.53%Due 7/15/2016 Paydown 12/15/2014 47787VAC5 0.00 John Deere Owner Trust 2014-A A3 100.000 0.00 977.50 977.50 0.00 0.92%Due 4/16/2018 Paydown 12/15/2014 89231MAC9 0.00 Toyota Auto Receivables Owner 2014-A 100.000 0.00 513.67 513.67 0.00 0.67%Due 12/15/2017 Paydown 12/15/2014 89231 NAC7 79,473.21 Toyota Auto Receivable 2012-B A3 100.000 79,473.21 283.07 79,756.28 0.00 0.46%Due 7/15/2016 Paydown 12/18/2014 43813CAC4 61,116.82 Honda Auto Receivables 2012-4 A3 100.000 61,116.82 261.14 61,377.96 0.00 0.52%Due 8/18/2016 Paydown 12/18/2014 43814GAC4 0.00 Honda Auto Receivables 2014-2 A3 100.000 0.00 571.08 571.08 0.00 0.77%Due 3/19/2018 Subtotal 186,760.45 186,760.45 3,305.51 190,065.96 0.00 Security 12/24/2014 31846V203 104.17 First American Govt Obligation Fund 1.000 104.17 0.00 104.17 0.00 Withdrawal Subtotal 104.17 104.17 0.00 104.17 0.00 TOTAL DISPOSITIONS 6,057,460.12 6,073,698.18 13,599.82 6,087,298.00 2,684.63 OTHER TRANSACTIONS Interest 12/08/2014 313381B20 4,000,000.00 FHLB Note 0.000 15,000.00 0.00 15,000.00 0.00 0.75%Due 12/8/2017 Interest 12/15/2014 912828A59 2,000,000.00 US Treasury Note 0.000 6,250.00 0.00 6,250.00 0.00 0.625%Due 12/15/2016 Interest 12/21/2014 3133725D2 2,000,000.00 FHLB Note 0.000 21,250.00 0.00 21,250.00 0.00 2.125%Due 12/21/2015 Chandler Asset Management-CONFIDENTIAL Page 7 Execution Time 1/13/2015 3:27:08 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 11/30/14 Thru 12/31/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yie Id Amount Pur/Sold Total Amount Gain/Loss OTHER TRANSACTIONS Interest 12/24/2014 166764AEO 1,000,000.00 Chevron Corp.Callable Note Cont 5/24/2018 0.000 8,590.00 0.00 8,590.00 0.00 1.718%Due 6/24/2018 Interest 12/31/2014 912828VHO 750,000.00 US Treasury Note 0.000 1,406.25 0.00 1,406.25 0.00 0.375%Due 6/30/2015 Subtotal 9,750,000.00 52,496.25 0.00 52,496.25 0.00 Dividend 12/01/2014 31846V203 1,364,727.10 First American Govt Obligation Fund 0.000 16.57 0.00 16.57 0.00 Dividend 12/31/2014 90CAMP$00 21,209,946.19 Public Financial Management CAMP 0.000 590.45 0.00 590.45 0.00 Subtotal 22,574,673.29 607.02 0.00 607.02 0.00 TOTAL OTHER TRANSACTIONS 32,324,673.29 53,103.27 0.00 53,103.27 0.00 Chandler Asset Management-CONFIDENTIAL Page 8 Execution Time 1/13/2015 3:27:08 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 10/31/14 Thru 11/30/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 11/03/2014 31846V203 5,000.00 First American Govt Obligation Fund 1.000 5,000.00 0.00 5,000.00 0.00 Purchase 11/03/2014 31846V203 7.17 First American Govt Obligation Fund 1.000 7.17 0.00 7.17 0.00 Purchase 11/13/2014 31846V203 20,000.00 First American Govt Obligation Fund 1.000 20,000.00 0.00 20,000.00 0.00 Purchase 11/13/2014 40428HPN6 1,000,000.00 HSBC USA Inc Note 100.244 2.32% 1,002,440.00 0.00 1,002,440.00 0.00 2.375%Due 11/13/2019 Purchase 11/15/2014 31846V203 8,125.00 First American Govt Obligation Fund 1.000 8,125.00 0.00 8,125.00 0.00 Purchase 11/15/2014 31846V203 491.67 First American Govt Obligation Fund 1.000 491.67 0.00 491.67 0.00 Purchase 11/15/2014 31846V203 63,178.44 First American Govt Obligation Fund 1.000 63,178.44 0.00 63,178.44 0.00 Purchase 11/15/2014 31846V203 977.50 First American Govt Obligation Fund 1.000 977.50 0.00 977.50 0.00 Purchase 11/15/2014 31846V203 513.67 First American Govt Obligation Fund 1.000 513.67 0.00 513.67 0.00 Purchase 11/15/2014 31846V203 87,772.62 First American Govt Obligation Fund 1.000 87,772.62 0.00 87,772.62 0.00 Purchase 11/18/2014 31846V203 2,150,000.00 First American Govt Obligation Fund 1.000 2,150,000.00 0.00 2,150,000.00 0.00 Purchase 11/18/2014 31846V203 72,622.89 First American Govt Obligation Fund 1.000 72,622.89 0.00 72,622.89 0.00 Purchase 11/18/2014 31846V203 571.08 First American Govt Obligation Fund 1.000 571.08 0.00 571.08 0.00 Purchase 11/19/2014 17275RAR3 1,350,000.00 Cisco Systems Note 100.301 2.05% 1,354,063.50 6,215.63 1,360,279.13 0.00 2.125%Due 3/1/2019 Purchase 11/20/2014 31846V203 6,000.00 First American Govt Obligation Fund 1.000 6,000.00 0.00 6,000.00 0.00 Purchase 11/27/2014 31846V203 7,500.00 First American Govt Obligation Fund 1.000 7,500.00 0.00 7,500.00 0.00 Purchase 11/28/2014 02665WAH4 1,350,000.00 American Honda Finance Note 100.387 2.16% 1,355,224.50 6,665.63 1,361,890.13 0.00 2.25%Due 8/15/2019 Purchase 11/28/2014 31846V203 17,000.00 First American Govt Obligation Fund 1.000 17,000.00 0.00 17,000.00 0.00 Purchase 11/28/2014 532457BF4 1,350,000.00 Eli Lilly&Co Note 100.208 1.90% 1,352,808.00 5,338.13 1,358,146.13 0.00 1.95%Due 3/15/2019 Purchase 11/30/2014 90CAMP$00 91.14 Public Financial Management CAMP 1.000 0.05% 91.14 0.00 91.14 0.00 Subtotal 7,489,851.18 7,504,387.18 18,219.39 7,522,606.57 0.00 Security 11/04/2014 90CAMP$00 1,500,000.00 Public Financial Management CAMP 1.000 1,500,000.00 0.00 1,500,000.00 0.00 Contribution Subtotal 1,500,000.00 1,500,000.00 0.00 1,500,000.00 0.00 TOTAL ACQUISITIONS 8,989,851.18 9,004,387.18 18,219.39 9,022,606.57 0.00 DISPOSITIONS Sale 11/13/2014 31846V203 244,221.87 First Ame dean Govt Obligation Fund 1.000 244,221.87 0.00 244,221.87 0.00 Chandler Asset Management-CONFIDENTIAL Page 6 Execution Time 12/18/2014 1:40:57 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 10/31/14 Thru 11/30/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gain/Loss DISPOSITIONS Sale 11/13/2014 40428HPG1 750,000.00 HSBC USA Inc Note 100.502 0.36% 753,765.00 4,453.13 758,218.13 300.32 2.375%Due 2/13/2015 Sale 11/19/2014 31846V203 1,360,279.13 First American Govt Obligation Fund 1.000 1,360,279.13 0.00 1,360,279.13 0.00 Sale 11/28/2014 31846V203 2,720,036.26 First American Govt Obligation Fund 1.000 2,720,036.26 0.00 2,720,036.26 0.00 Subtotal 5,074,537.26 5,078,302.26 4,453.13 5,082,755.39 300.32 Paydown 11/15/2014 161571 FL3 0.00 Chase CHAIT Pool#2012-A5 100.000 0.00 491.67 491.67 0.00 0.59%Due 8/15/2017 Paydown 11/15/2014 47787RAC4 62,943.26 John Deere Owner Trust 2012-B A3 100.000 62,943.26 235.18 63,178.44 0.00 0.53%Due 7/15/2016 Paydown 11/15/2014 47787VAC5 0.00 John Deere Owner Trust 2014-A A3 100.000 0.00 977.50 977.50 0.00 0.92%Due 4/16/2018 Paydown 11/15/2014 89231MAC9 0.00 Toyota Auto Receivables Owner 2014-A 100.000 0.00 513.67 513.67 0.00 0.67%Due 12/15/2017 Paydown 11/15/2014 89231NAC7 87,456.03 Toyota Auto Receivable 2012-B A3 100.000 87,456.03 316.59 87,772.62 0.00 0.46%Due 7/15/2016 Paydown 11/18/2014 43813CAC4 72,330.40 Honda Auto Receivables 2012-4 A3 100.000 72,330.40 292.49 72,622.89 0.00 0.52%Due 8/18/2016 Paydown 11/18/2014 43814GAC4 0.00 Honda Auto Receivables 2014-2 A3 100.000 0.00 571.08 571.08 0.00 0.77%Due 3/19/2018 Subtotal 222,729.69 222,729.69 3,398.18 226,127.87 0.00 Maturity 11/18/2014 89233HLJ1 2,150,000.00 Toyota Motor Credit Discount CP 99.895 2,150,000.00 0.00 2,150,000.00 0.00 0.2%Due 11/18/2014 Subtotal 2,150,000.00 2,150,000.00 0.00 2,150,000.00 0.00 Security 11/10/2014 90LAIF$00 3,500,000.00 Local Agency Investment Fund State Pool 1.000 3,500,000.00 0.00 3,500,000.00 0.00 Withdrawal Security 11/25/2014 31846V203 104.17 First American Govt Obligation Fund 1.000 104.17 0.00 104.17 0.00 Withdrawal Subtotal 3,500,104.17 3,500,104.17 0.00 3,500,104.17 0.00 TOTAL DISPOSITIONS 10,947,371.12 10,951,136.12 7,851.31 10,958,987.43 300.32 OTHER TRANSACTIONS Interest 11/03/2014 037833AJ9 1,000,000.00 Apple Inc Note 0.000 5.000.00 0.00 5,000.00 0.00 1%Due 5/3/2018 Chandler Asset Management-CONFIDENTIAL Page 7 Execution Time 12/18/2014 1:40:57 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 10/31/14 Thru 11/30/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yie Id Amount Pur/Sold Total Amount Gain/Loss OTHER TRANSACTIONS Interest 11/13/2014 3137EADQ9 8,000,000.00 FHLMC Note 0.000 20,000.00 0.00 20,000.00 0.00 0.5%Due 5/13/2016 Interest 11/15/2014 912828SU5 2,000,000.00 US Treasury Note 0.000 2,500.00 0.00 2,500.00 0.00 0.25%Due 5/15/2015 Interest 11/15/2014 912828TX8 3,000,000.00 US Treasury Note 0.000 5,625.00 0.00 5,625.00 0.00 0.375%Due 11/15/2015 Interest 11/20/2014 36962G6K5 750,000.00 General Electric Capital Corp Note 0.000 6,000.00 0.00 6,000.00 0.00 1.6%Due 11/20/2017 Interest 11/27/2014 3135GOKM4 3,000,000.00 FNMA Note 0.000 7,500.00 0.00 7,500.00 0.00 0.5%Due 5/27/2015 Interest 11/28/2014 3134G3Y53 4,000,000.00 FHLMC Callable Note 1X 11/28/14 0.000 17,000.00 0.00 17,000.00 0.00 0.85%Due 11/28/2017 Subtotal 21,750,000.00 63,625.00 0.00 63,625.00 0.00 Dividend 11/03/2014 31846V203 3,254,608.49 First American Govt Obligation Fund 0.000 7.17 0.00 7.17 0.00 Dividend 11/30/2014 90CAMP$00 800,855.05 Public Financial Management CAMP 0.000 91.14 0.00 91.14 0.00 Subtotal 4,055,463.54 98.31 0.00 98.31 0.00 TOTAL OTHER TRANSACTIONS 25,805,463.54 63,723.31 0.00 63,723.31 0.00 Chandler Asset Management-CONFIDENTIAL Page 8 Execution Time 12/18/2014 1:40:57 PM CACity of Dublin Consolidated Transaction Ledger Account#10221 9/30/14 Thru 10/31/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/01/2014 31846V203 6.81 First American Govt Obligation Fund 1.000 6.81 0.00 6.81 0.00 Purchase 10/15/2014 31846V203 28,203.13 First American Govt Obligation Fund 1.000 28,203.13 0.00 28,203.13 0.00 Purchase 10/15/2014 31846V203 491.67 First American Govt Obligation Fund 1.000 491.67 0.00 491.67 0.00 Purchase 10/15/2014 31846V203 63,786.60 First American Govt Obligation Fund 1.000 63,786.60 0.00 63,786.60 0.00 Purchase 10/15/2014 31846V203 94,847.02 First American Govt Obligation Fund 1.000 94,847.02 0.00 94,847.02 0.00 Purchase 10/15/2014 31846V203 513.67 First American Govt Obligation Fund 1.000 513.67 0.00 513.67 0.00 Purchase 10/15/2014 31846V203 977.50 First American Govt Obligation Fund 1.000 977.50 0.00 977.50 0.00 Purchase 10/15/2014 90LAIF$00 30,020.65 Local Agency Investment Fund State Pool 1.000 0.24% 30,020.65 0.00 30,020.65 0.00 Purchase 10/20/2014 31846V203 74,024.38 First American Govt Obligation Fund 1.000 74,024.38 0.00 74,024.38 0.00 Purchase 10/21/2014 06538CPL9 2,190,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99.929 0.21 k 2,188,441.44 0.00 2,188,441.44 0.00 0.21%Due 2/20/2015 Purchase 10/21/2014 31846V203 2,180,000.00 First American Govt Obligation Fund 1.000 2,180,000.00 0.00 2,180,000.00 0.00 Purchase 10/21/2014 31846V203 571.08 First American Govt Obligation Fund 1.000 571.08 0.00 571.08 0.00 Purchase 10/23/2014 31846V203 15,450.00 First American Govt Obligation Fund 1.000 15,450.00 0.00 15,450.00 0.00 Purchase 10/23/2014 31846V203 3,000,000.00 First American Govt Obligation Fund 1.000 3,000,000.00 0.00 3,000,000.00 0.00 Purchase 10/25/2014 31846V203 15,000.00 First American Govt Obligation Fund 1.000 15,000.00 0.00 15,000.00 0.00 Purchase 10/29/2014 3135GOZG1 2,500,000.00 FNMA Note 100.334 1.68% 2,508,350.00 5,711.81 2,514,061.81 0.00 1.75%Due 9/12/2019 Purchase 10/30/2014 31846V203 23,000.00 First American Govt Obligation Fund 1.000 23,000.00 0.00 23,000.00 0.00 Purchase 10/30/2014 31846V203 4,000,000.00 First American Govt Obligation Fund 1.000 4,000,000.00 0.00 4,000,000.00 0.00 Purchase 10/31/2014 31846V203 10,353.33 First American Govt Obligation Fund 1.000 10,353.33 0.00 10,353.33 0.00 Purchase 10/31/2014 31846V203 6,250.00 First American Govt Obligation Fund 1.000 6,250.00 0.00 6,250.00 0.00 Purchase 10/31/2014 36962G6K5 750,000.00 General Electric Capital Corp Note 100.877 1.31 k 756,577.50 5,366.67 761,944.17 0.00 1.6%Due 11/20/2017 Purchase 10/31/2014 90CAMP$00 37.32 Public Financial Management CAMP 1.000 0.05% 37.32 0.00 37.32 0.00 Purchase 10/31/2014 912828RH5 2,000,000.00 US Treasury Note 100.223 1.32% 2,004,459.82 2,342.03 2,006,801.85 0.00 1.375%Due 9/30/2018 Subtotal 16,983,533.16 17,001,361.92 13,420.51 17,014,782.43 0.00 Security 10/02/2014 90LAIF$00 1,525,000.00 Local Agency Investment Fund State Pool 1.000 1,525,000.00 0.00 1.525,000.00 0.00 Contribution Subtotal 1,525,000.00 1,525,000.00 0.00 1,525,000.00 0.00 Chandler Asset Management-CONFIDENTIAL Page 6 Execution Time 111122014 10:24:39 AM CACity of Dublin Consolidated Transaction Ledger Account#10221 9/30/14 Thru 10/31/14 Transaction Settlement Acq/Disp Interest Type ..,te CUSIP -Quantity Security Description Price Yield Amount Pur/Sold Total Amount ACQUISITIONS pr Short Sale 10/21/2014 31846V203 -2,188,441.44 First Ame dean Govt Obligation Fund 1.000 -2,188,441.44 0.00 -2,188,441.44 0.00 Subtotal -2,188,441.44 -2,188,441.44 0.00 -2,188,441.44 0.00 TOTAL ACQUISITIONS 16,320,091.72 16,337,920.48 13,420.51 16,351,340.99 0.00 DISPOSITIONS Closing 10/21/2014 31846V203 -2,188,441.44 First American Govt Obligation Fund 1.000 -2,188,441.44 0.00 -2,188,441.44 0.00 Purchase Subtotal -2,188,441.44 -2,188,441.44 0.00 -2,188,441.44 0.00 Sale 10/21/2014 31846V203 2,188,441.44 First American Govt Obligation Fund 1.000 2,188,441.44 0.00 2,188,441.44 0.00 Sale 10/29/2014 31846V203 2,514,061.81 First American Govt Obligation Fund 1.000 2,514,061.81 0.00 2,514,061.81 0.00 Sale 10/31/2014 31846V203 2,006,801.85 First American Govt Obligation Fund 1.000 2,006,801.85 0.00 2,006,801.85 0.00 Sale 10/31/2014 36962G4T8 750,000.00 General Electric Capital Corp Note 101.898 0.39% 764,235.00 8,062.50 772,297.50 3,192.68 2.25%Due 11/9/2015 Subtotal 7,459,305.10 7,473,540.10 8,062.50 7,481,602.60 3,192.68 Paydown 10/15/2014 161571 FL3 0.00 Chase CHAIT Pool#2012-A5 100.000 0.00 491.67 491.67 0.00 0.59%Due 8/15/2017 Paydown 10/15/2014 47787RAC4 63,523.36 John Deere Owner Trust 2012-B A3 100.000 63,523.36 263.24 63,786.60 0.00 0.53%Due 7/15/2016 Paydown 10/15/2014 47787VAC5 0.00 John Deere Owner Trust 2014-A A3 100.000 0.00 977.50 977.50 0.00 0.92%Due 4/16/2018 Paydown 10/15/2014 89231MAC9 0.00 Toyota Auto Receivables Owner 2014-A 100.000 0.00 513.67 513.67 0.00 0.67%Due 12/15/2017 Paydown 10/15/2014 89231 NAC7 94,494.21 Toyota Auto Receivable 2012-B A3 100.000 94,494.21 352.81 94,847.02 0.00 0.46%Due 7/15/2016 Paydown 10/20/2014 43813CAC4 73,699.96 Honda Auto Receivables 2012-4 A3 100.000 73,699.96 324.42 74,024.38 0.00 0.52%Due 8/18/2016 Paydown 10/21/2014 43814GAC4 0.00 Honda Auto Receivables 2014-2 A3 100.000 0.00 571.08 571.08 0.00 0.77%Due 3/19/2018 Subtotal 231,717.53 231,717.53 3,494.39 235,211.92 0.00 Maturity 10/21/2014 06538CKM2 2,180,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99.927 2,180,000.00 0.00 2,180,000.00 0.00 0.21%Due 10/21/2014 Maturity 10/23/2014 313374GKO 3,000,000.00 FHLB Note 100.000 3,000,000.00 0.00 3,000,000.00 0.00 1.03%Due 10/23/2014 Chandler Asset Management-CONFIDENTIAL Page 7 Execution Time 11112/2014 10:24:39 AM CACity of Dublin Consolidated Transaction Ledger Account#10221 9/30/14 Thru 10/31/14 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold ji Total Amount Gain/Loss DISPOSITIONS 11r, M Maturity 10/30/2014 3133743W8 4,000,000.00 FHLB Note 100.000 4,000,000.00 0.00 4,000,000.00 0.00 1.15 k Due 10/30/2014 Subtotal 9,180,000.00 9,180,000.00 0.00 9,180,000.00 0.00 Security 10/20/2014 90LAIF$00 13,894.52 Local Agency Investment Fund State Pool 1.000 13,894.52 0.00 13,894.52 0.00 Withdrawal Security 10/27/2014 31846V203 104.17 First American Govt Obligation Fund 1.000 104.17 0.00 104.17 0.00 Withdrawal Security 10/27/2014 90LAIF$00 545,000.00 Local Agency Investment Fund State Pool 1.000 545,000.00 0.00 545,000.00 0.00 Withdrawal Subtotal 558,998.69 558,998.69 0.00 558,998.69 0.00 TOTAL DISPOSITIONS 15,241,579.88 15,255,814.88 11,556.89 15,267,371.77 3,192.68 OTHER TRANSACTIONS Interest 10/15/2014 68389XAN5 1,000,000.00 Oracle Corp Note 0.000 6,000.00 0.00 6,000.00 0.00 1.2%Due 10/15/2017 Interest 10/15/2014 94974BEUO 1,225,000.00 Wells Fargo Corp Note 0.000 22,203.13 0.00 22,203.13 0.00 3.625%Due 4/15/2015 Interest 10/23/2014 313374GKO 3,000,000.00 FHLB Note 0.000 15,450.00 0.00 15,450.00 0.00 1.03%Due 10/23/2014 Interest 10/25/2014 3133ECMM 5,000,000.00 FFCB Note 0.000 15,000.00 0.00 15,000.00 0.00 3 0.6%Due 4/25/2017 Interest 10/30/2014 3133743W8 4,000,000.00 FHLB Note 0.000 23,000.00 0.00 23,000.00 0.00 1.15 k Due 10/30/2014 Interest 10/31/2014 912828C81 1,000,000.00 US Treasury Note 0.000 1,875.00 0.00 1,875.00 0.00 0.375%Due 4/30/2016 Interest 10/31/2014 912828SSO 1,000,000.00 US Treasury Note 0.000 4,375.00 0.00 4,375.00 0.00 0.875%Due 4/30/2017 Subtotal 16,225,000.00 87,903.13 0.00 87,903.13 0.00 Dividend 10/01/2014 31846V203 445,542.57 First American Govt Obligation Fund 0.000 6.81 0.00 6.81 0.00 Dividend 10/15/2014 90LAIF$00 4,538,043,037.04 Local Agency Investment Fund State Pool 0.000 30,020.65 0.00 30,020.65 0.00 Dividend 10/31/2014 90CAMP$00 800,817.73 Public Financial Management CAMP 0.000 37.32 0.00 37.32 0.00 Subtotal 4,539,289,397.34 30,064.78 0.00 30,064.78 0.00 TOTAL OTHER TRANSACTIONS 4,555,514,397.34 117,967.91 0.00 117,967.91 0.00 Chandler Asset Management-CONFIDENTIAL Page 8 Execution Time 11/12/2014 10:24:39 AM Q'i CHANDLER ASSET MANAGEMENT Investment Report City of Dublin Period Ending December 31, 2014 6225 Lusk Blvd San Diego,CA 92121 Phone 800.3 17.4747 1 Fax 858.546.3741 1 www.chandlerasset.com Cill I Table of Contents SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Consolidated Information SECTION 4 Portfolio Holdings { SECTION 1 Economic Update Economic Update ■ The December employment report was somewhat mixed. Nonfarm payrolls rose by 252,000 in December, following strong gains of 353,000 and 261,000 in November and October, respectively. The unemployment rate also declined to 5.6% from 5.8%. However, wages declined 0.2% in December and the labor participation rate also fell to 62.7% from 62.9%. The manufacturing sector continues to show strength and consumer confidence was high heading into 2015. We believe low gas prices should provide an ongoing tailwind for consumer spending. Meanwhile, housing data remains volatile in spite of ongoing low mortgage rates. Overall, we believe the economy continues to grow at a modest pace and the labor market continues to expand. However, we believe weakness in wages and the labor participation rate in December leaves the door open for the Fed to be patient with policy rate changes. • The Federal Open Market Committee (FOMC) left policy rates unchanged at its final meeting of 2014. The FOMC indicated that it will take a "patient" approach toward normalizing monetary policy, and implied that the first rate hike is likely to be in (or around) mid-2015 based on the Fed's economic forecasts. Overall, the FOMC's guidance on policy action was consistent with its previous guidance, but the Committee is moving away from its"considerable time" language and emphasizing that policy changes will be data-dependent. During her post-meeting press conference, Fed Chair Yellen indicated that policy rates would likely remain unchanged for at least the next couple of FOMC meetings.This suggests that a rate hike is unlikelyto happen any sooner than April, unless there is an unexpected change in economic data. The Committee also expects the fed funds rate to approach a more normalized level by the end of 2017, which suggests that any rate increases are likely to be gradual over the next few years. We expect FOMC members will continue to debate the appropriate timing of the first fed funds rate hike when they meet again on January 27-28, 2015. • During the past three months,the yield curve flattened. Concerns about weak global economic growth kept downward pressure on longer US Treasury yields, even as the Fed signaled the possibility of a fed funds rate hike this year. C&I Employment Nonfarm Payroll (000's) Unemployment Rate 400 8.0 350 7.5 300 250 7.0 N c 200 0 6.5 150 IV 100 6.0 50 5.5 0 72 2i7 ��7 s�i ��i jai jai 2�i 4ji 6�7 ��7 jai jai 7 2i Slj 6� 8� Source:U.S.Department of Labor Nonfarm payrolls rose by 252,000 in December, above the consensus forecast of 245,000. The unemployment rate declined to 5.6% from 5.8%. The net revisions in nonfarm payrolls for November and October were +50,000 (with very strong gains of 353,000 and 261,000 in November and October, respectively). Private payrolls rose by 240,000 in December, while government jobs rose by 12,000. Meanwhile, the labor participation rate declined to 62.7%from 62.9%. Wages also decreased 0.2%,versus expectations for a 0.2% increase. Consumer Retail Sales Y O-Y % Change Consumer Credit 6.0% 30 5.0% 25 V! 4.0% O 20 AA m 3.0% 15 L R 2.0% 0 10 _ VV D 1.0% ril I I I I I I I I I I I I I I I 1 11111 5 00% 0 Source:U_S_Department of Commerce Source:Federal Reserve In November, retail sales rose 5.1% on a year-over-year basis versus a gain of 4.5% in October. On a month- over-month basis, retail sales rose 0.7% in November after increasing 0.5% in October, exceeding expectations. Gasoline sales were a drag on retail sales in both months due to lower prices. Overall, consumer spending is showing positive momentum. Consumer credit rose by$14.1 billion in November versus a gain of $16.0 billion in October. The gain was fueled by nonrevolving credit(student and auto loans)which rose $15.0 billion in November,while revolving credit(credit cards)fell by$0.9 billion. C&I Broad Measures Single-Family Housing Starts Leading Economic Indicators 800 - 1.2% 700 - 1.0% 600 0.8% 500 0.6% t%! 0 400 0.4% 0 300 0.2% 200 0.0% 100 -0.2% 0 -0.4% Source:US Department of Commerce Source:The Conference Board Housing data remains volatile. Single-family housing starts fell 5.4% in November after increasing 8.0% in October. The index of Leading Economic Indicators (LED rose 0.6% in November after a 0.6% gain in October. Overall,the LEI index continues to point to modest economic growth. sAl Manufacturing Institute of Supply Management Capacity Utilization Purchasing Manager Index 60.0 _ 80.5% 80.0% 57.5 79.5% 55.0 79.0% 78.5% 52.5 78.0% 50.0 77.5% Contracting 77.0% 47.5 76.5% 45.0 76.0% Source:Institute for Supply Management Source:Federal Reserve During December, the ISM manufacturing index declined to 55.5 from 58.7 in November. Nevertheless, the December reading continued to signal ongoing growth in the manufacturing sector. A reading above 50.0 is viewed as expansionary in the manufacturing sector, while a reading below 50.0 suggests contraction. Capacity utilization, which is production divided by capacity, increased to 80.1% in November from 79.3% in October. The capacity utilization rate is now in line with the long- run average of 80.1% (1972-2013). Inflation CPI Y-O-Y % Change Core CPI Y O-Y % Change 2.5% 2.5% I 2.0% — 2.0% 1.5% - 1.5% 1.0% 1.0% 0.5% 0.5% Source:US Department of Labor In November, overall Consumer Price Index (CPI) inflation declined to 1.3% on a year-over-year basis from 1.7% in October.The year-over-year Core CPI(CPI less food and energy) also declined to 1.7% in November from 1.8% in October. Gross Domestic Product GDP Quarterly % Change 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% si7 7 7 7 7 2 2 7 07 si 9 7 - 7 � 9 ' 7 7 7 2i 7 '7 _i 77 2 Pi 7 7 7 �7 A Source: U-S-Department of Commerce Real annualized GDP growth for the third quarter of 2014 was revised up to 5.0%from the second estimate of 3.9%. Personal consumption expenditures (particularly in the services sector) and nonresidential fixed investment increased more than previously estimated.The third quarter gain follows GDP growth of 4.6% in the second quarter, and a 2.1% decline in GDP during the first quarter. Interest Rates Yield on the Two-Year Note December 2012 through December 2014 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 7-, R�7 6�7 '97 70 7�i 2-7 R-7 s�7 7 70 72i 7� 0 �' �' �' 73 70 A A 4 A 7Q 7g Source:Bloomberg The yield on the two-year Treasury note increased in December, following two months of declines. Domestic economic data continued to be fairly solid in December, but concerns about weak global economic growth (particularly in Europe) remained elevated. Yield Curves September 30, 2014 and December 31, 2014 -9/30/14 -12/31/14 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 70 v'0 Source:Bloomberg During the past three months, the yield curve flattened. Concerns about weak global economic growth kept downward pressure on longer US Treasury yields, even as the Fed signaled the possibility of a fed funds rate hike this year. � SECTION 2 i } Account Profile S," I Objectives Investment Objectives The investment objectives of the City of Dublin are first, to provide safety of principal; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; third, to attain a market average rate of return on its investments throughout economic cycles; and fourth, to be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. Chandler Asset Management Performance Objectives The performance objective of the City of Dublin is to earn a return that equals or exceeds the return on of the Bank of America Merrill Lynch 1-3 Year Treasury and Agency Index. Strategy In order to achieve this objective, the portfolio invests in high-quality money market instruments, including US Treasury securities, US agency securities and A or higher rated Corporate medium term notes. S,Jjj Compliance City of Dublin December 31,2014 COMPLIANCE POLICY Assets managed by ChandlerAsset Management are in full compliance Wth State lawand Wth the City's investment policy. Category Standard Comment Treasury Issues No limitations Complies Agency Issues 35% max per issuer; 25% max callables Complies Municipal Issues "A" rated; 5% max per issuer Complies Medium Term Notes "A" rated; 30% max; 5% max per issuer Complies Banker's Acceptances "A-1" rated;40% max; 5% max per issuer; Complies 180 days max maturity Commercial Paper "A-1" rated;25% max; 5% max per issuer; Complies 270 days max maturity Negotiable Certificates of Deposit "A'T A-1" rated issuer; 30% max; 5% max Complies erissuer Corporate Debt(All) 20% max per issuer Complies Time Deposits 10% max; Collateralized/FDIC Insured; Complies 1 year max maturity Asset-Backed and Mortgage- "AA" rated;20% max; 5% max per issue Complies Backed Securities ABS/MBS Money Market Mutual Funds "AAA" rated or SEC registered adviser; Complies 10% max; 5% max per fund IAIF $50 million limit Complies CAMP Not used by adviser Complies Maximum Maturity 15 years lComplies .A Account Profile Portfolio Characteristics City of Dublin 12/31/2014 09/30/2014 Benchmark* Portfolio Portfolio Average Maturity(yrs) 1.86 2.30 1.89 Modified Duration 1.81 2.15 1.76 Average Purchase Yield n/a 0.94 % 0.78% Average Market Yield 0.64% 0.92 % 0.71 % Average Quality** AAA AA+/Aa1 AA+/Aa1 Total Market Value 109,239,254 108,928,624 1-3 yr Treasury Benchmark is a blended rating of S&P,Moody's,and Fitch.Portfolio is S&P and Moody's respectively. Chandler Asset Management received an updated management directive from the City in October 2014. The directive removed restrictions specific to the asset allocation of the portfolio and altered the strategy of the portfolio from Chandler's Limited Maturity strategy to the Short Term Bond strategy. The Chandler team transitioned the portfolio in November and December 2014 and will manage the portfolio to the new benchmark and strategy effective January 1, 2015. �®„ Sector Distribution City of Dublin December 31, 2014 September 30, 2014 i Commercial Commercial -Paper Paper 3.9% 5.9% Money Money A enc Market Agency Market 44.5% Fund 48.7% Fl Fund 0.2% 0.4% 1 i 1 i 1 US US Corporate Corporate 18.0% 13.5% ABS US US 5.2% Treasury 5.8% __ reasury 28.2% 25.7% Issuers City of Dublin Issuer Report Account#10198 As of 12/31/2014 Portfolio Issue Name Investment Type % Government of United States US Treasury 28.19% Federal Farm Credit Bank Agency 16.43% Federal Home Loan Mortgage Corp Agency 13.71% Federal National Mortgage Association Agency 8.84% Federal Home Loan Bank Agency 5.48% Bank of Tokyo-Mit UFJ Commercial Paper 2.00% PNC Financial Services Group Commercial Paper 1.92% John Deere ABS ABS 1.55% Toyota ABS ABS 1.44% General Electric Co US Corporate 1.39% Oracle Corp US Corporate 1.38% HSBC USA Corp US Corporate 1.38% Honda ABS ABS 1.31% Wells Fargo Corp US Corporate 1.29% Cisco Systems US Corporate 1.25% Eli Lilly&Co US Corporate 1.25% Honda Motor Corporation US Corporate 1.25% JP Morgan Chase&Co US Corporate 1.19% Dupont,Ei De Nemours US Corporate 1.17% Deere&Company US Corporate 0.94% Bank of New York US Corporate 0.93% Berkshire Hathaway US Corporate 0.93% Occidental Petroleum Corporation US Corporate 0.93% ChevronTexaco Corp US Corporate 0.92% JP Morgan ABS ABS 0.92% Ebay US Corporate 0.91% Apple Inc US Corporate 0.90% First American Govt Oblig Fund Money Market Fund FT 0.19% Total 100.00% ®„ Quality Distribution City of Dublin December 31, 2014 vs. September 30,2014 a:. % 3 . % 2D..;% 1:. % 4 AA 4 NF, 12/31/14 9/30/14 AAA AA A <A NR 12/31/14 3.9% 83.2% 11.4% 0.0% 1.6% 9/30/14 6.5% 82.5% 9.3% 0.0% 1.7% Source:S&P Ratings �®„ Duration Distribution City of Dublin December 31, 2014 vs. September 30, 2014 30.0°e 20.0°e 10.0 f 0.0 f 0-025 0.25.0.50 0.50-1 1-2 2-3 ?• 5 5+ M 12/31114 913{1114 0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+ 12/31/14 4.0% 8.7% 8.3% 24.2% 31.3% 6.8% 16.6% 0.0% 9/30/14 10.8% 6.5% 13.3% 27.8% 24.8% 11.4% 5.5% 0.0% Cill I Investment Performance City of Dublin Period Ending December 31,2014 Total Rate of Return Annualized Since Inception October 31,2013 1.00 q 0.80 4.60 0.40 1 4.20 0.00 12 months 2 yea rs 3years 5years 1Oyears Since Inception M Ck of Dublin 1-3yrTreasury Annualized 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Dublin 0-29% 0.83% NIA NIA NIA NIA 0,65% 1-3 yr Treasury 0-17% 0.62% NIA NIA NIA N/A 0.49% Total rate of return:A measure of a portfolio's performance over time. It is the internal rate of return,which equates the beginning value of the portfolio with the ending value;it includes interest earnings,realized and unrealized gains and losses in the portfolio. .A Account Profile Portfolio Characteristics City of Dublin Reporting Account 12/31/2014 09/30/2014 Portfolio Portfolio Average Maturity(yrs) 0.00 0.00 Modified Duration 0.00 0.00 Average Purchase Yield 0.20% 0.24 % Average Market Yield 0.20% 0.24 % Average Quality NR/NR NR/NR Total Market Value 67,197,314 49,290,810 �®„ Sector Distribution City of Dublin Reporting Account December 31, 2014 September 30, 2014 LAIF___—----- 98.4% LAIF 68.4% Local Gov Investment Pool 31.6% Local Gov Investment Pool 1.6% i111 Issuers GIR City of Dublin Reporting Account Issuer Report Account 910219 As of 12/31/2014 Issue Name Investment Type Portfol Local Agency Investment Fund LA1F 68,44% CAMP Local Gov Investment Pool 31.56% Total 100.00% SECTION 3 Consolidated Information .A Account Profile Portfolio Characteristics City of Dublin Consolidated 12/31/2014 09/30/2014 Portfolio Portfolio Average Maturity(yrs) 1.42 1.30 Modified Duration 1.33 1.21 Average Purchase Yield 0.66 % 0.61 % Average Market Yield 0.64 % 0.56 % Average Quality AA+/Aa1 AA+/Aa1 Total Market Value 176,436,568 158,219,434 Cil'i Sector Distribution City of Dublin Consolidated December 31, 2014 September 30, 2014 Local Gov Commercial LAIF L Investment Paper 30.6% 26.1 1%% Pool 4.1% 12.0% Local Gov Money Investment Commercial Market Pool Paper Fund 0.5% 2.4% Fl 0.1% Money Market Fund Fl 0.3% Agency us Agency 27.5% Corporate 33.5% 11.2% us Corporate 9.3% ABS Treasury ABS ___JI us 3.2 30 175% 4.0% Treasury 17.7% SECTION 4 Portfolio Holdings CACity of Dublin Holdings Report Account#10198 As of 12/31/14 Purchase Date CostValue Mkt Price Market Value %of Port. Moody/S&P Maturity CUSIP Security Description Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration ABS 47787RAC4 John Deere Owner Trust 2012-B A3 423,369.86 11/18/2013 423,551.77 100.01 423,425.32 0.39% Aaa/NR 1.54 0.53%Due 7/15/2016 0.45% 423,475.39 0.48% 99.73 (50.07) AAA 0.27 89231 NAC7 Toyota Auto Receivable 2012-B A3 658,953.06 Various 659,170.99 100.02 659,082.87 0.60% Aaa/AAA 1.54 0.46%Due 7/15/2016 0.36% 659,045.64 0.41% 134.72 37.23 NR 0.37 43813CAC4 Honda Auto Receivables 2012A A3 541,520.12 12/13/2013 542,027.79 100.01 541,563.44 0.50% Aaa/AAA 1.63 0.52%Due 8/18/2016 0.29% 541,741.04 0.50% 101.69 (177.60) NR 0.35 161571FL3 Chase CHAIT Pool#2012-A5 1,000,000.00 10/22/2013 1,000,429.69 100.03 1,000,315.00 0.92% NR/AAA 2.62 0.59%Due 8/15/2017 0.58% 1,000,295.84 0.53% 262.22 19.16 AAA 0.60 89231 MAC9 Toyota Auto Receivables Owner 2014-A 920,000.00 03/11/2014 919,829.98 99.89 918,991.68 0.84% Aaa/AAA 2.96 0.67%Due 12/15/2017 0.68% 919,877.29 0.75% 273.96 (885.61) NR 1.45 43814GAC4 Honda Auto Receivables 2014-2 A3 890,000.00 05/13/2014 889,893.02 99.78 888,036.66 0.81% Aaa/AAA 3.22 0.77%Due 3/19/2018 0.72% 889,915.04 0.91% 247.47 (1,878.38) NR 1.63 47787VAC5 John Deere Owner Trust 2014-A A3 1,275,000.00 04/02/2014 1,274,795.75 99.95 1,274,416.05 1.17% Aaa/NR 3.29 0.92%Due 4/16/2018 0.93% 1,274,845.24 0.95% 521.33 (429.19) AAA 1.50 5,709,698.99 5,705,831.02 5.22% Aaa/AAA 2.62 Total ABS 5,708,843.04 0.63% 5,709,195.48 0.70% 1,641.12 (3,364.46) Aaa 1.02 AGENCY 3135GOKM4 FNMA Note 3,000,000.00 05/03/2012 3,000,000.00 100.11 3,003,357.00 2.75% Aaa/AA+ 0.40 0.5%Due 5/27/2015 0.50% 3,000,000.00 0.22% 1,416.67 3,357.00 AAA 0.41 3136FPHZ3 FNMA Callable Note 1X 12/28/10 3,000,000.00 01/20/2011 2,997,270.00 101.32 3,039,666.00 2.80% Aaa/AA+ 0.74 2%Due 9/28/2015 2.02% 2,999,569.45 0.21% 15,500.00 40,096.55 AAA 0.74 3133725D2 FHLB Note 2,000,000.00 12/21/2010 1,995,740.00 101.71 2,034,282.00 1.86% Aaa/AA+ 0.97 2.125%Due 12/21/2015 2.17% 1,999,174.13 0.36% 1,180.56 35,107.87 AAA 0.97 3133ECFV1 FFCB Note 4,000,000.00 03/07/2013 4,005,720.00 100.11 4,004,256.00 3.67% Aaa/AA+ 1.08 0.43%Due 1/29/2016 0.38% 4,002,124.73 0.33% 7,262.22 2,131.27 AAA 1.07 3137EADQ9 FHLMC Note 8,000,000.00 Various 8,014,480.00 100.04 8,002,816.00 7.33% Aaa/AA+ 1.37 0.5%Due 5/13/2016 0.44% 8,006,471.55 0.47% 5,333.34 (3,655.55) AAA 1.36 3133ECEF7 FFCB Note 5,000,000.00 04/23/2013 5,013,085.00 99.62 4,980,860.00 4.57% Aaa/AA+ 2.10 0.64%Due 2/6/2017 0.57% 5,007,246.35 0.82% 12,888.89 (26,386.35) AAA 2.07 3133ECG99 FFCB Note 4,000,000.00 03/07/2013 4,007,800.00 99.37 3,974,936.00 3.65% Aaa/AA+ 2.15 0.66%Due 2/22/2017 0.61% 4,004,217.82 0.96% 9,460.00 (29,281.82) AAA 2.12 3137EADT3 FHLMC Note 3,000,000.00 02/27/2014 3,013,410.00 100.16 3,004,863.00 2.76% Aaa/AA+ 2.15 0.875%Due 2/22/2017 0.72% 3,009,633.06 0.80% 9,406.25 (4,770.06) AAA 2.11 3133ECMM3 FFCB Note 5,000,000.00 04/25/2013 4,996,050.00 98.98 4,948,925.00 4.54% Aaa/AA+ 2.32 0.6%Due 4/25/2017 0.62% 4,997,715.43 1.05% 5,500.00 (48,790.43) AAA 2.29 3135GOZLO FNMA Note 1,075,000.00 08/21/2014 1,071,162.25 99.80 1,072,834.95 0.98% Aaa/AA+ 2.74 1%Due 9/27/2017 1.12% 1,071,600.75 1.07% 2,806.94 1,234.20 AAA 2.69 3134G3Y53 FHLMC Callable Note 1X 11/28/14 4,000,000.00 11/28/2012 4,000,000.00 98.80 3,951,884.00 3.62% Aaa/AA+ 2.91 0.85%Due 11/28/2017 0.85% 4,000,000.00 1.27% 3,116.67 (48,116.00) AAA 2.86 Chandler Asset Management-CONFIDENTIAL Execution Time 1/13/2015 11:48:48 AM 28 GIVCity of Dublin Holdings Report Account#10198 As of 12/31/14 Purchase Date CostValue Mkt Price Market Value %of Port. Moody/S&P Maturity CUSIP Security Description Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration AGENCY 3133811320 FHLB Note 4,000,000.00 12/13/2012 3,999,960.00 98.85 3,953,980.00 3.62% Aaa/AA+ 2.94 0.75%Due 12/8/2017 0.75% 3,999,976.45 1.15% 1,916.67 (45,996.45) AAA 2.89 3135GOZG1 FNMA Note 2,500,000.00 10/28/2014 2,508,350.00 100.25 2,506,195.00 2.31% Aaa/AA+ 4.70 1.75%Due 9/12/2019 1.68% 2,508,049.61 1.69% 13,246.53 (1,854.61) AAA 4.47 48,623,027.25 48,478,854.95 44.46% Aaa/AA+ 1.97 Total Agency 48,575,000.00 0.81% 48,605,779.33 0.78% 89,034.74 (126,924.38) Aaa 1.94 COMMERCIAL PAPER 06538CPL9 Bank of Tokyo Mitsubishi NY Discount 2,190,000.00 10/20/2014 2,188,441.44 99.97 2,189,361.25 2.00% P-1/A-1 0.14 CP 0.21% 2,189,361.25 0.21% 0.00 0.00 F-1 0.14 0.21%Due 2/20/2015 69349KT59 PNC Bank Discount CP 2,100,000.00 09/08/2014 2,095,606.34 99.88 2,097,468.34 1.92% P-1/A-1 0.43 0.28%Due 6/5/2015 0.28% 2,097,468.34 0.28% 0.00 0.00 F-1 0.43 4,284,047.78 4,286,829.59 3.92% P-1/A-1 0.28 Total Commercial Paper 4,290,000.00 0.25% 4,286,829.59 0.25% 0.00 0.00 F-1 0.28 MONEY MARKET FUND Fl 31846V203 First American Govt Obligation Fund 211,606.21 Various 211,606.21 1.00 211,606.21 0.19% Aaa/AAA 0.00 0.01% 211,606.21 0.01% 0.00 0.00 NR 0.00 211,606.21 211,606.21 0.19% Aaa/AAA 0.00 Total Money Market Fund Fl 211,606.21 0.01% 211,606.21 0.01% 0.00 0.00 NR 0.00 US CORPORATE 263534CD9 El Dupont Nemour Note 1,250,000.00 11/08/2013 1,282,325.00 101.29 1,266,178.75 1.17% A2/A 1.04 1.95%Due 1/15/2016 0.75% 1,265,468.66 0.70% 11,239.58 710.09 A 1.02 46625HJA9 JP Morgan Chase Note 1,250,000.00 11/07/2013 1,315,425.00 102.79 1,284,921.25 1.19% A3/A 1.51 3.15%Due 7/5/2016 1.13% 1,287,356.66 1.28% 19,250.00 (2,435.41) A+ 1.46 36962G6Z2 General Electric Capital Corp Note 750,000.00 11/08/2013 759,817.50 101.03 757,754.25 0.70% Al/AA+ 1.53 1.5%Due 7/12/2016 1.00% 755,641.78 0.82% 5,281.25 2,112.47 NR 1.50 24422ERF8 John Deere Capital Corp Note 1,000,000.00 04/21/2014 1,025,640.00 101.66 1,016,634.00 0.94% A2/A 1.71 1.85%Due 9/15/2016 0.77% 1,018,255.68 0.87% 5,447.22 (1,621.68) NR 1.67 674599CB9 Occidental Petroleum Note 1,000,000.00 11/07/2013 1,017,920.00 100.58 1,005,768.00 0.93% A2/A 2.13 1.75%Due 2/15/2017 1.19% 1,011,685.65 1.47% 6,611.11 (5,917.65) A 2.06 278642AG8 Ebay Inc Note 1,000,000.00 Various 998,572.00 99.23 992,342.00 0.91% A2/A 2.54 1.35%Due 7/15/2017 1.39% 998,968.16 1.66% 6,225.00 (6,626.16) A- 2.47 68389XAN5 Oracle Corp Note 1,000,000.00 Various 991,607.11 99.64 996,441.00 0.91% Al/A+ 2.79 1.2%Due 10/15/2017 1.42% 994,081.25 1.33% 2,533.34 2,359.75 A+ 2.73 36962G6K5 General Electric Capital Corp Note 750,000.00 10/28/2014 756,577.50 100.61 754,608.00 0.69% Al/AA+ 2.89 1.6%Due 11/20/2017 1.31% 756,212.08 1.38% 1,366.67 (1,604.08) NR 2.81 Chandler Asset Management-CONFIDENTIAL Execution Time 1/13/2015 11:48:48 AM 29 City of Dublin Holdings Report Account#10198 As of 12/31/14 Purchase Date CostValue Mkt Price Market Value %of Port. Moody/S&P Maturity CUSIP Security Description Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration US CORPORATE 40428HPH9 HSBC USA Inc Note 500,000.00 11/25/2013 498,705.00 99.61 498,074.50 0.46% A2/A+ 3.05 1.625%Due 1/16/2018 1.69% 499,047.82 1.76% 3,723.96 (973.32) AA- 2.93 037833AJ9 Apple Inc Note 1,000,000.00 02/19/2014 979,800.00 98.52 985,160.00 0.90% Aal/AA+ 3.34 1%Due 5/3/2018 1.50% 983,908.70 1.46% 1,611.11 1,251.30 NR 3.26 166764AEO Chevron Corp.Callable Note Cont 1,000,000.00 03/26/2014 1,000,430.00 100.51 1,005,055.00 0.92% Aal/AA 3.48 5/24/2018 1.71% 1,000,353.23 1.56% 334.06 4,701.77 NR 3.29 1.718%Due 6/24/2018 06406HCL1 Bank of New York Callable Note Cont 1,000,000.00 02/05/2014 1,006,820.00 101.07 1,010,747.00 0.93% Al/A+ 3.59 7/2/2018 1.94% 1,005,437.28 1.79% 8,750.00 5,309.72 AA- 3.41 2.1%Due 8/1/2018 084664BY6 Berkshire Hathaway Note 1,000,000.00 12/12/2013 1,004,960.00 101.13 1,011,294.00 0.93% Aa2/AA 3.62 2%Due 8/15/2018 1.89% 1,003,852.60 1.68% 7,555.56 7,441.40 A+ 3.46 17275RAR3 Cisco Systems Note 1,350,000.00 11/14/2014 1,354,063.50 100.47 1,356,351.75 1.25% Al/AA- 4.17 2.125%Due 3/1/2019 2.05% 1,353,951.71 2.01% 9,562.50 2,400.04 NR 3.94 532457BF4 Eli Lilly&Co Note 1,350,000.00 11/24/2014 1,352,808.00 100.54 1,357,252.20 1.25% A2/AA- 4.21 1.95%Due 3/15/2019 1.90% 1,352,747.11 1.82% 7,751.25 4,505.09 A 4.00 94974BFU9 Wells Fargo Corp Note 1,400,000.00 12/09/2014 1,399,468.00 99.97 1,399,633.20 1.29% A2/A+ 4.31 2.125%Due 4/22/2019 2.13% 1,399,474.68 2.13% 5,702.08 158.52 AA- 4.08 02665WAH4 American Honda Finance Note 1,350,000.00 11/24/2014 1,355,224.50 100.32 1,354,342.95 1.25% Al/A+ 4.62 2.25%Due 8/15/2019 2.16% 1,355,121.29 2.18% 9,450.00 (778.34) NR 4.34 68389XAX3 Oracle Corp Note 500,000.00 12/17/2014 501,985.00 100.71 503,572.00 0.46% Al/A+ 4.77 2.25%Due 10/8/2019 2.16% 501,973.66 2.09% 2,593.75 1,598.34 A+ 4.48 40428HPN6 HSBC USA Inc Note 1,000,000.00 11/07/2014 1,002,440.00 99.97 999,708.00 0.92% A2/A+ 4.87 2.375%Due 11/13/2019 2.32% 1,002,374.52 2.38% 3,166.67 (2,666.52) AA- 4.56 19,604,588.11 19,555,837.85 18.01% Al/A+ 3.18 Total US Corporate 19,450,000.00 1.61% 19,545,912.52 1.61% 118,155.11 9,925.33 A+ 3.04 US TREASURY 0111w- I 912828SE1 US Treasury Note 2,000,000.00 10/29/2013 2,001,256.70 100.02 2,000,390.00 1.83% Aaa/AA+ 0.13 0.25%Due 2/15/2015 0.20% 2,000,119.56 0.09% 1,888.59 270.44 AAA 0.12 912828SU5 US Treasury Note 2,000,000.00 10/29/2013 2,000,397.33 100.07 2,001,406.00 1.83% Aaa/AA+ 0.37 0.25%Due 5/15/2015 0.24% 2,000,094.74 0.06% 649.17 1,311.26 AAA 0.37 912828VHO US Treasury Note 750,000.00 11/08/2013 751,467.36 100.13 750,996.00 0.69% Aaa/AA+ 0.50 0.375%Due 6/30/2015 0.25% 750,443.91 0.11% 7.77 552.09 AAA 0.50 912828TX8 US Treasury Note 3,000,000.00 02/19/2014 3,006,455.37 100.09 3,002,814.00 2.75% Aaa/AA+ 0.87 0.375%Due 11/15/2015 0.25% 3,003,242.98 0.27% 1,460.64 (428.98) AAA 0.87 912828UG3 US Treasury Note 2,000,000.00 10/29/2013 2,000,162.94 100.06 2,001,250.00 1.84% Aaa/AA+ 1.04 0.375%Due 1/15/2016 0.37% 2,000,076.52 0.31% 3,464.67 1,173.48 AAA 1.04 912828US7 US Treasury Note 2,000,000.00 12/27/2013 1,996,256.70 100.01 2,000,156.00 1.83% Aaa/AA+ 1.21 0.375%Due 3/15/2016 0.46% 1,997,961.16 0.37% 2,237.57 2,194.84 AAA 1.20 Chandler Asset Management-CONFIDENTIAL Execution Time 1/13/2015 1148:48 AM 30 CACity of Dublin Holdings Report Account#10198 As of 12/31/14 Purchase Date CostValue Mkt Price Market Value %of Port. Moody/S&P Maturity CUSIP Security Description Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration US TREASURY 912828C81 US Treasury Note 1,000,000.00 04/30/2014 999,104.91 99.98 999,844.00 0.92% Aaa/AA+ 1.33 0.375%Due 4/30/2016 0.42% 999,406.13 0.39% 642.27 437.87 AAA 1.33 912828A59 US Treasury Note 2,000,000.00 12/27/2013 1,990,709.83 99.95 1,999,062.00 1.83% Aaa/AA+ 1.96 0.625%Due 12/15/2016 0.78% 1,993,863.85 0.65% 583.79 5,198.15 AAA 1.94 9128281374 US Treasury Note 3,000,000.00 02/20/2014 2,991,806.94 99.75 2,992,500.00 2.75% Aaa/AA+ 2.13 0.625%Due 2/15/2017 0.72% 2,994,167.14 0.74% 7,082.20 (1,667.14) AAA 2.10 912828SSO US Treasury Note 1,000,000.00 04/30/2014 999,808.04 100.12 1,001,172.00 0.92% Aaa/AA+ 2.33 0.875%Due 4/30/2017 0.88% 999,851.13 0.82% 1,498.62 1,320.87 AAA 2.30 912828RH5 US Treasury Note 2,000,000.00 10/30/2014 2,004,459.82 99.91 1,998,124.00 1.84% Aaa/AA+ 3.75 1.375%Due 9/30/2018 1.32% 2,004,266.46 1.40% 7,026.10 (6,142.46) AAA 3.63 912828C24 US Treasury Note 3,000,000.00 08/18/2014 3,000,595.98 100.07 3,002,109.00 2.76% Aaa/AA+ 4.16 1.5%Due 2/28/2019 1.50% 3,000,547.34 1.48% 15,290.06 1,561.66 AAA 4.00 912828D80 US Treasury Note 3,000,000.00 Various 2,977,822.56 100.11 3,003,282.00 2.76% Aaa/AA+ 4.67 1.625%Due 8/31/2019 1.78% 2,979,144.18 1.60% 16,564.23 24,137.82 AAA 4.45 912828G61 US Treasury Note 4,000,000.00 12/17/2014 3,986,263.40 99.37 3,974,688.00 3.64% Aaa/AA+ 4.92 1.5%Due 11/30/2019 1.57% 3,986,369.77 1.63% 5,274.73 (11,681.77) AAA 4.71 30,706,567.88 30,727,793.00 28.19% Aaa/AA+ 2.48 Total US Treasury 30,750,000.00 0.89% 30,709,554.87 0.84% 63,670.41 18,238.13 Aaa 2.40 109,139,536.22 108,966,752.62 100.00% Aa1/AA+ 2.30 TOTAL PORTFOLIO 108,985,449.25 0.94% 109,068,878.00 0.92% 272,501.38 (102,125.38) Aaa 2.15 TOTAL MARKET VALUE PLUS ACCRUED 109,239,254.00 Chandler Asset Management-CONFIDENTIAL Execution Time 1/13/2015 1148:48 AM 31 City of Dublin Reporting Account Holdings Report Account#10219 As of 12/31/14 Purchase Date CostValue Mkt Price Market Value %of Port. Moody/S&P Maturity CUSIP Security Description LAI F 90LAIF$00 Local Agency Investment Fund State 45,955,000.00 Various 45,955,000.00 1.00 45,955,000.00 68.44% NR/NR 0.00 Pool 0.27% 45,955,000.00 0.27% 31,777.16 0.00 NR 0.00 45,955,000.00 45,955,000.00 68.44% NR/NR 0.00 Total LAIF 45,955,000.00 0.27% 45,955,000.00 0.27% 31,777.16 0.00 NR 0.00 LOCAL GOV INVESTMENT POOL 90CAMP$00 Public Financial Management CAMP 21,210,536.64 Various 21,210,536.64 1.00 21,210,536.64 31.56% NR/NR 0.00 0.05% 21,210,536.64 0.05% 0.00 0.00 NR 0.00 21,210,536.64 21,210,536.64 31.56% NR/NR 0.00 Total Local Gov Investment Pool 21,210,536.64 0.05% 21,210,536.64 0.05% 0.00 0.00 NR 0.00 67,165,536.64 67,165,536.64 100.00% NR/NR 0.00 TOTAL PORTFOLIO 67,165,536.64 0.20% 67,165,536.64 0.20% 31,777.16 0.00 NR 0.00 TOTAL MARKET VALUE PLUS ACCRUED 67,197,313.80 Chandler Asset Management-CONFIDENTIAL Execution Time 1/13/2015 11:50:04 AM 32