HomeMy WebLinkAbout4.5 Treasurer's Report 19� 82 STAFF REPORT CITY CLERK
CITY COUNCIL File #320-30
O`�LIFOU��
DATE: November 18, 2014
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager
SUBJECT: City Treasurer's Informational Report of Investments for the
Quarter Ending September 30, 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 September 30, 2014, and includes a monthly transaction
ledger. The City's investment portfolio for this period totaled $158,150,754 (book value)
with an average book yield of 0.56%. 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. The current yield is slightly
higher than last quarter, and overall interest income in FY 2014-15 may come in marginally
higher than budgeted. Staff will address any budget change needed during the mid-year
financial review presented to the City Council.
RECOMMENDATION:
Staff recommends that the City Council receive the report.
J C �
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
DESCRIPTION:
This report marks the first full year since the City began a contract with Chandler Asset
Management (Chandler) for ongoing investment management services. The total investment
portfolio of $158,150,754 (book value) is comprised of $108,891,062 managed by Chandler,
and $49,259,692 invested by the City in local government pools. The average book yield of the
Page 1 of 4 ITEM NO. 4.5
Chandler portfolio and the local pools was 0.77% and 0.24%, respectively. The portfolio
includes both discretionary and restricted funds and the balance will fluctuate throughout the
year due to normal cash flow.
Economic Update Highlights
The following are some highlights from the Economic Update included in the attached
Investment Report prepared by Chandler (Attachment 1):
• The economy remains on a slow growth trajectory, fueled by slightly higher job growth
than anticipated in September 2014. The unemployment rate declined to 5.9% from
6.1% in August.
• The manufacturing sector continues to show strength, and consumer spending
remains healthy. However, the housing sector has shown the most volatility and
continues to lag behind other sectors of the economy.
• The Federal Open Market Committee (FOMC) left interest rates unchanged in
September, and suggested a modest uptick to the overall view of the economy. They
also noted that inflation is running below target, signaling their ongoing capacity to
keep rates low.
City of Dublin Portfolio
Since the City's engagement of Chandler to manage funds invested outside of the local pools,
and the revision of the City's investment policy to allow for new investment opportunities, the
City's portfolio has maintained a healthy balance of investment types. As illustrated in Chart 1
below, the City has maintained Commercial Paper and Corporate investments, while shifting
away from Asset-Backed Securities and Agency holdings to increased US Treasuries. The
LAIF/CAMP balance remained stable over the quarter.
Chart 1: Investments by Type, July 1 -- September 30, 2014
INVESTMENTS BY TYPE
September 30,2014
US Treasury,
17.7235
LAIF/CAMP,
31.17%
S Corporates,
Money Market, 9.16%
0.283c
Commercial Paper, Agency,37.92%
4.07%
ABS,4.02%
Page 2 of 4
The market value of the City's portfolio has decreased $35,206 since June 2014 (see Table 1),
as there were no significant in-flows or out-flows of funds over the quarter. Since the same
quarter one year ago, the portfolio increased $18.3 million, due primarily to increases in large
revenue categories, including Property Tax, Sales Tax, and Building Permits, through FY 2013-
14.
Table 1: Portfolio Values and Yield to Maturity
Sept30 June 30
Sept 30,2014
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 49,814,360 49,232,909 48,458,874 48,458,874 48,458,874 98.4% 31% 0.24% 0.24%
CAMP 26,139,933 502 800,818 800,818 800,818 1.6% 1% 0.05% 0.05%
Agency 63,904,900
Money Market 3,541
SUBTOTAL 139,862,734 49,233,411 49,259,692 49,259,692 49,259,692 100.0% 31% 0.24% 0.24%
Managed by Chandler
ABS 7,031,761 6,350,051 6,350,722 6,347,738 5.8% 4% 0.61% 0.64%
Agency 56,028,424 53,075,000 53,101,212 52,933,223 48.7% 34% 0.80% 0.69%
Commercial Paper 6,296,045 6,430,000 6,425,138 6,425,138 5.9% 4% 0.23% 0.23%
Money Market 353,413 445,543 445,543 445,543 0.4% 0% 0.00% 0.00%
US Corporates 14,687,597 14,475,000 14,599,627 14,597,508 13.4% 9% 1.20% 1.17%
US Treasury 24,367,384 28,000,000 27,968,821 27,959,923 25.7% 18% 0.68% 0.63%
SUBTOTAL 108,764,625 108,775,593 108,891,062 108,709,073 99.9% 69% 0.77% 0.71%
Accrued Interest 225,486 219,551
108,990,111 108,928,624
TOTAL PORTFOLIO 139,862,734 158,223,522 158,035,285 158,150,754 158,188,316 100.0 0.56%
Change from June 30,2014 (35,206)
Change from Sept 30,2013 18,325,582
Overall market yield-to-maturity (YTM) has increased from 0.44% to 0.56% 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
Holdings(Par Value) 9/30/13 12/31/13 3/31/14 pr 6/30/14 9/30/14 YTM
LAIF/CAMP 75,954,293 52,141,245 39,388,468 49,233,411 49,259,692 0.24%
ABS 3,700,000 5,420,000 7,025,526 6,350,051 0.64%
Agency 64,000,000 56,000,000 56,000,000 56,000,000 53,075,000 0.69%
Commercial Paper 5,900,000 5,905,000 6,300,000 6,430,000 0.23%
Money Market 3,541 4,547,383 3,008,529 353,413 445,543 0.00%
US Corporates 9,475,000 13,475,000 14,475,000 14,475,000 1.17%
US Treasury 18,500,000 24,500,000 24350000 28,000,000 0.63%
TOTAL 139,957,834 150,263,628 147,696,997 157,737,351 158,035,285
YIELD TO MATURITY 0.50% 0.46% 0.50% 0.44% 0.56%
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
Page 3 of 4
$50 million maximum allowable in LAIF with any excesses resulting from the timing of large
payments deposited into CAMP as a temporary holding place.
LAIF rates have stabilized over the last three quarters, but remain at historic lows:
Table 3: Quarterly LAIF 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
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. City of Dublin Investment Report for Quarter Ending September 30,
2014
2. Monthly Investment Transaction Reports, July through September
2014
Page 4 of 4
Investment Report
City of Dublin
Period Ending
September 30, 2014
6225 Lusk Blvd San Diego,CA 92121 1 Phone :00
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 economy remains on a slow growth trajectory, fueled by job growth. In the third quarter, payrolls
rose by 224,000 per month on average, following average growth of 267,000 per month during the
second quarter. The September employment report was better than expected (as payrolls rose by
248,000 versus expectations of 215,000), and August and July payrolls were revised higher by a
combined 69,000. The unemployment rate declined to 5.9% in September from 6.1% in August, but
wage growth and the labor participation rate continued to be weak. The manufacturing sector
continues to show strength, with the ISM manufacturing index remaining well above 50.0 in
September at 58.6. Consumer spending also remains healthy, and ongoing job growth should support
this trend. The housing sector, on the other hand, has shown the most volatility and continues to lag
behind other sectors of the economy.
• In September, the FOMC left policy rates unchanged and continued to reduce asset purchases, as
expected. Overall, the Fed's statement language suggested a modest uptick to their overall view of
the economy, but the message remained dovish. The Fed noted inflation is running below target,
signaling their ongoing capacity to keep interest rates low. More recently, the stronger than expected
September employment report gives hawkish Fed members a compelling argument for raising
interest rates earlier than market participants may be expecting. However, we believe the majority of
FOMC voting members are generally dovish and will be reluctant to raise rates before the economy is
on a sustainable growth trajectory. At this point, we continue to believe the Fed isn't likely to start
raising rates until the second half of 2015. However, the Fed may make some changes to its next
policy statement, such as removing the "considerable period" language. The Fed remains on course
to complete the unwinding of quantitative easing this month and the next Federal Open Market
Committee meeting is scheduled for October 28-29.
• During the past three months, the yield curve has flattened even as the Fed has been tapering its
purchases of long-term Treasury bonds. Market participants have reacted to mixed domestic and
global economic data, as well as geopolitical tensions. These concerns have kept downward
pressure on longer yields.
Q11 Employment
Non-farm Payroll (000's) Unemployment Rate
350 8.0
300
7.5
250
7.0
^y 200
CD
O
150 6.5%
100 -
6.0
50
5.5
0
Source:U.S.Department of Labor
The September employment report was stronger than expected as nonfarm payrolls rose by 248,000, following
gains of 180,000 and 243,000 in August and July, respectively. The consensus forecast for September was
215,000. The net revisions for August and July were +69,000. For the third quarter, payrolls rose 224,000 per
month, on average, compared to average growth of 267,000 per month during the second quarter. Private
payrolls rose by 236,000 in September while government jobs rose by 12,000. The unemployment rate
declined to 5.9%from 6.1%, but the participation rate also ticked down to 62.7% from 62.8%. Wage growth
was flat in September, missing expectations for a 0.2%gain.
GKI Consumer
Retail Sales Y O-Y % Change Consumer Credit
6.0% 30
5.0% 25
N
4.0% O 20
m
3.0% Z 15
t6
20% = 10 VV
O
D
1.0% 5
00% 0
8�j 70 72 2i� 4�j 6i� d�j 70 72 2i� 4�j 6i� 8�j 8�� 70 72 2i7 Y�7 s�7 ��7 ��i �2i 2i7 Y�7 s�7 ��7
Source:U.S.Department of Commerce Source:Federal Reserve
In August, Retail Sales rose 5.0% on a year-over-year basis versus a gain of 4.2% in July. On a month-over-
month basis, Retail Sales were up 0.6% in July, which was in line with expectations. Overall, Retail Sales
appear healthy but not robust. Consumer Credit rose by$13.5 billion in August versus a gain of$21.6 billion in
July.The gain continued to be fueled by nonrevolving credit(student and auto loans)which rose$13.7 billion in
August,while revolving credit(credit cards)declined by$0.2 billion.
GKI Broad Measures
Starts -Single Family Housing Leading Economic Indicators
800 1.2
700 1.0
600 0.8
500 0.6
fh
CD 400 0.4%
0
300 0.2
200 0.0
100 -0.2%
0 0.4%
8�7 7p 72 2i7 4i7 6i7 8i7 7p 72 2i7 4i7 Ei7 8i7 8i7 7p 72 2i7 4j7 6�7 e�7 7pi 72i 2i7 4j7 6�7 8�7
Source:US Department of Commerce Source:The Conference Board
Recent housing data has been volatile. Single-family housing starts declined 2.4% in August to 643,000
following an 11.1%gain in July. Multifamily starts declined 31.7% in August after increasing 44.9%in July. The
index of Leading Economic Indicators (LEI) rose 0.2%in August following a 1.1%gain in July. Overall, the LEI
index continues to point to modest economic growth.
URI Manufacturing
Institute of Supply Management Capacity Utilization
Purchasing Manager Index
60.0 79.5%
79.0%
57.5
Expandin 78.5%
55.0
78.0
52.5 77.5
50.0 77.0%
Contracting 76.5
47.5
76.0
45.0 75.5%
Source:Institute for Supply Management Source:Federal Reserve
During September, the ISM Manufacturing Index decreased to 56.6 from 59.0 in August. The decline
was disappointing, but the index continues 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, declined in
August to 78.8%from 79.1%in July.The Capacity Utilization rate remains belowthe long-run average
of 80.1%(1972-2013).
Inflation
CPI Y-O-Y % Change Core CPI Y-O-Y % Change
2.5% 2.5%
2.0% 2.0% 100, —
1.5% 1.5% —V V V
1.0% 1.0
0.5% 0.5%
8iJ Jp J2 2iJ 4iJ 6'iJ 8iJ Jp J2 2iJ viJ 6'iJ 8iJ 8iJ 7pi 72i 2i7 4j7 6�7 8�7 Jpi J2i 2i7 4j7 6�7 ��7
Source:US Department of Labor
In August, overall CPI inflation was 1.7%on a year-over-year basis down from 2.0% in July. The year-over-year
Core CPI(CPI less food and energy)declined to 1.7%in August from 1.9%in July.
G D P
GDP Qtrly % Change
5.0%
4.0%
3.0%
2.0%
1.0%
0.0% hL
-1.0%
-2.0%
-3.0%
7 S-7 9-7 72 "-7 6-7 9-7 72 `0-7 6-7 9-7 72p '2-7 S-7
7� 7 7 7 �3 3 �' 7� 4 4
Source: U.S.Department of Commerce
Real annualized GDP growth for the second quarter of 2014 was 4.6%, according to the final revision, up from
the prior estimate of 4.2%. Second quarter growth was in line with the consensus forecast. An upward revision
in nonresidential investment spending was the primary factor for the change. First quarter GDP declined 2.1%,
largely due to unfavorable weather.
Interest Rates
Yield on the Two-Year Note
September 2012 through September 2014
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
SQA ti�� `ado Cdr tai ✓4j� SPA � o mar may 79 SSA
72 72 7� 7� )� u' '7� 7� 74 74 )4 l '74
Source:Bloomberg
The yield on the two-year Treasury note increased by about 8 basis points in September, following a modest
decline in August. Economic data was fairly strong in September. The unwinding of quantitative easing bythe
Federal Reserve along with the anticipation of a potential fed funds rate hike next year have also put upward
pressure on rates, but this has been somewhat offset by geopolitical tensions and sluggish economic growth in
Europe.
�Jjjj Yield Curves
June 30, 2014 and September 30, 2014
6/30/14 -9/30/14
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
70 ao
0 o yr yr
Source:Bloomberg
During the past three months,the yield curve has flattened even as the Fed has been tapering its purchases of
long-term Treasury bonds. Market participants have reacted to mixed domestic and global economic data as
well as geopolitical tensions.These concerns have kept downward pressure on longer yields.
SECTION 2
. Account Profile
� µ
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.
Cillil compliance
GR City of Dublin
September 30,2014
COMPLIANCE POLICY
Assets managed by ChandlerAsset Management are in full compliance with State lawand with 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"P'A-1"rated issuer;30%max;5%max Complies
per issuer
Corporate Debt(All) 20%max per issuer Complies
Time Deposits 10%max;Collateralized/FDIC Insured; Complies
1 ear max
turity
Asset-Backed and Mortgage- "AX 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
LAIF $50 million limit Complies
CAMP Not used by adviser Complies
Client Directed Concentration Limits MTNs: 15%max;ABS/MBS: 10%max; Complies
Municipals:25%max
Maximum Maturity 5 years Complies
�f, 1 Account Profile
Portfolio Characteristics
City of Dublin
09/30/2014 06/30/2014
Benchmark* Portfolio Portfolio
Average Maturity(yrs) 1.88 1.89 1.86
Modified Duration 1.84 1.76 1.73
Average Purchase Yield n/a 0.78% 0.74%
Average Market Yield 0.56% 0.71 % 0.54%
Average Quality** AAA AA+/Aa1 AA+/Aa1
Total Market Value 108,928,624 108,990,111
1-3 Yr Treasu ryAgency
Benchmark is a blended rating of S&P,Moody's,and Fitch.Portfolio is S&P and Moody's respectively.
Ow
Sector Distribution
City of Dublin
September 30, 2014 June 30,2014
Commercial Commercial
--Paper Paper
5.9% 5.8
Money Money
Market Market
Agency_„ Fund Agency Fund
48.7% ` Fl 51.5% Fl
0.4% 0.3
us us
Corporate Corporate
13.5% 13.6
us u5 AS
5.8%o `Treasury 6.5 B o Treasury
257% 22.4
,_Sj,, I Issuers
City of Dublin Issuer Report
Account#10198 As of 9130/2014
Investment Issue Name i Portfolio
Government of United States US Treasury 25.70%
Federal Farm Credit Bank Agency 16.45%
Federal Home Loan Mortgage Corp Agency 13.74%
Federal Home Loan Bank Agency 11.96%
Federal National Mortgage Association Agency 6.55%
Bank of Tokyo-Mit UFJ Commercial Paper 2,00%
Toyota Motor Corp Commercial Paper 1.97%
PNC Financial Services Group Commercial Paper 1.92%
John Deere ABS ABS 1.72%
Toyota ABS ABS L69%
Honda ABS ABS 1.50%
General Electric Co US Corporate 1.41%
JP Morgan Chase&Cc US Corporate 1.20%
Dupont,Ei De Nemours US Corporate 1.17%
Wells Fargo Corp US Corporate 1.16%
HSBC USA Corp US Corporate 1.15%
Deere&Company US Corporate 0.94%
Occidental Petroleum Corporation US Corporate 0.93%
Bank of New York US Corporate 0.93%
Berkshire Hathaway US Corporate 0.92%
ChevronTexaco Corp US Corporate 0.92%
JP Morgan ABS ABS 0.92%
Ebay US Corporate 0.92%
Oracle Corp US Corporate 0.92%
Apple Inc US Corporate 0,90%
First American Govt Oblig Fund Money Market Fund FI 0.41%
Total 100.00%
r; Quality Distribution
City of Dublin
September 30,2014 vs. June 30,2014
100.0%
90.0%-
so.0%
70.0
60.0%—
59.0%
40-0%—
30-0%—
20-0%—
10.0%—
0.0%
AAA AA A s A NR
9/30/14 6/30/14
AAA AA A <A NR
9/30/14 6.5% 82.5% 9.3% 0.0% 1.7%
6/30/14 8.1 % 81.9% 9.4% 0.0% 0.7%
Source:S&P Ratings
®„ Duration Distribution
City of Dublin
September 30,2014 vs. June 30, 2014
L.0 f
0-0.25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 -
M 9130114 6+30114
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
9/30/14 10.8% 6.5% 13.3% 27.8% 24.8% 11.4% 5.5% 0.0%
6/30/14 5.8% 12.6% 14.7% 30.7% 23.9% 12.3% 0.0% 0.0%
®„ Investment Performance
City of Dublin
Period Ending
September 30,2014
Total Rate of Return
Since Inception
October 31,2013
4.50°e
0.40
0.30
0.20
0.10'X-
0.00%—
Since Inception
Cit�h Crhlir 1-3 Yr T rem uryAgencyr
Latest 3 months Since Inception
City of Dublin -0.06% 0.47%
1-3 Yr TreasuryAgency 0.04% 0.41 %
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.
M
�f, 1 Account Profile
Portfolio Characteristics
City of Dublin Reporting Account
09/30/2014 06/30/2014
Portfolio Portfolio
Average Maturity(yrs) 0.00 0.00
Modified Duration 0.00 0.00
Average Purchase Yield 0.24% 0.22%
Average Market Yield 0.24% 0.22%
Average Quality NR/NR NR/NR
Total Market Value 49,290,810 53,260,640
Sector Distribution
City of Dublin Reporting Account
September 30, 2014 June 30,2014
LAIF_-- LAIF
98.4% 93.4%
Y
F
Local Local
Gov Gov
—Investment Investment
Pool Pool
1.6% 6.6%
,_Sj,, I Issuers
C'" City of Dublin Reporting Account Issuer Report
Account#10219 As of 9/3012014
Issue Name Investment
Local Agency Investment Fund LAIF 98.38%
CAMP Local Gov Investment Pool 1.62%
Total 100.00%
SECTION 3
Consolidated Information
�f, 1 Account Profile
Portfolio Characteristics
City of Dublin Consolidated
09/30/2014 06/30/2014
Portfolio Portfolio
Average Maturity(yrs) 1.30 1.25
Modified Duration 1.21 1.16
Average Purchase Yield 0.61 % 0.57%
Average Market Yield 0.56% 0.44%
Average Quality AA+/Aa1 AA+/Aa1
Total Market Value 158,219,434 162,250,751
j„ Sector Distribution
City of Dublin Consolidated
September 30, 2014 June 30,2014
Commercial LAIF Commercial LAIF
Paper 30.6% Paper_,_ 30.7%
4.1% 3.9
Local Local
Gov Gov
Investment Investment
Pool A090 Pool
0.5% 2.2%
Money Money
Market Market
Fund Fund
Fl Fl
0.3% 0.2%
Agency Agency
us
33.5% 34.6
Co
US
Corporate Corporate
9.3% 9.1%
ABS I us ABS I US
4.0% ——J Treasury 4.3%__ J Treasury
17.7% 15.0%
SECTION 4
Portfolio Holdings
s
CACity of Dublin Holdings Report
Account#10198 As of 9/30/14
Purchase ..
CUSIP Security Description Par Value/Units Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
ABS
47787RAC4 John Deere Owner Trust 2012-B A3 596,006.90 11/18/2013 596,263.00 100.03 596,170.80 0.55% Aaa/NR 1.79
0.53%Due 7/15/2016 0.50% 596,179.84 0.46% 140.39 (9.04) AAA 0.41
89231 NAC7 Toyota Auto Receivable 2012-B A3 920,376.51 Various 920,680.89 100.04 920,717.05 0.85% Aaa/AAA 1.79
0.46%Due 7/15/2016 0.39% 920,552.09 0.37% 188.17 164.96 NR 0.43
43813CAC4 Honda Auto Receivables 2012-4 A3 748,667.30 12/13/2013 749,369.17 100.09 749,337.36 0.69% Aaa/AAA 1.88
0.52%Due 8/18/2016 0.29% 749,068.97 0.33% 140.58 268.39 NR 0.47
161571FL3 Chase CHAIT Pool#2012-A5 1,000,000.00 10/22/2013 1,000,429.69 100.10 1,001,017.00 0.92% NR/AAA 2.88
0.59%Due 8/15/2017 0.58% 1,000,324.28 0.47% 262.22 692.72 AAA 0.85
89231MAC9 Toyota Auto Receivables Owner 2014-A 920,000.00 03/11/2014 919,829.98 99.88 918,896.92 0.84% Aaa/AAA 3.21
0.67%Due 12/15/2017 0.68% 919,862.18 0.75% 273.96 (965.26) NR 1.58
43814GAC4 Honda Auto Receivables 2014-2 A3 890,000.00 05/13/2014 889,893.02 99.82 888,358.84 0.82% Aaa/AAA 3.47
0.77%Due 3/19/2018 0.72% 889,906.04 0.88% 247.47 (1,547.20) NR 1.77
47787VAC5 John Deere Owner Trust 2014-AA3 1,275,000.00 04/02/2014 1,274,795.75 99.86 1,273,240.50 1.17% Aaa/NR 3.55
0.92%Due 4/16/2018 0.93% 1,274,828.19 1.00% 521.33 (1,587.69) AAA 1.76
6,351,261.50 6,347,738.47 5.83% Aaa 1 AAA 2.77
Total ABS 6,350,050.71 0.61% 6,350,721.59 0.64% 1,774.12 (2,983.12) Aaa 1.12
AGENCY
313374GKO FHLB Note 3,000,000.00 06/30/2011 3,000,000.00 100.06 3,001,692.00 2.77% Aaa/AA+ 0.06
1.03%Due 10/23/2014 1.03% 3,000,000.00 0.15% 13,561.67 1,692.00 AAA 0.06
3133743W8 FHLB Note 4,000,000.00 06/10/2011 4,009,280.00 100.08 4,003,316.00 3.69% Aaa/AA+ 0.08
1.15%Due 10/30/2014 1.08% 4,000,217.38 0.15% 19,294.44 3,098.62 AAA 0.08
3135GOKM4 FNMA Note 3,000,000.00 05/03/2012 3,000,000.00 100.23 3,006,882.00 2.77% Aaa/AA+ 0.65
0.5%Due 5/27/2015 0.50% 3,000,000.00 0.15% 5,166.67 6,882.00 AAA 0.66
3136FPHZ3 FNMA Callable Note 1 X 12/28/10 3,000,000.00 01/20/2011 2,997,270.00 101.77 3,053,160.00 2.80% Aaa/AA+ 0.99
2%Due 9/28/2015 2.02% 2,999,422.75 0.22% 500.00 53,737.25 AAA 0.99
3133725D2 FHLB Note 2,000,000.00 12/21/2010 1,995,740.00 102.19 2,043,798.00 1.89% Aaa/AA+ 1.22
2.125%Due 12/21/2015 2.17% 1,998,959.50 0.33% 11,805.56 44,838.50 AAA 1.21
3133ECFV1 FFCB Note 4,000,000.00 03/07/2013 4,005,720.00 99.80 3,992,072.00 3.67% Aaa/AA+ 1.33
0.43%Due 1/29/2016 0.38% 4,002,622.12 0.58% 2,962.22 (10,550.12) AAA 1.32
3137EADQ9 FHLMC Note 8,000,000.00 Various 8,014,480.00 100.06 8,004,424.00 7.36% Aaa/AA+ 1.62
0.5%Due 5/13/2016 0.44% 8,007,667.09 0.47% 15,333.34 (3,243.09) AAA 1.61
3133ECEF7 FFCB Note 5,000,000.00 04/23/2013 5,013,085.00 99.64 4,981,820.00 4.58% Aaa/AA+ 2.36
0.64%Due 2/6/2017 0.57% 5,008,115.53 0.80% 4,888.89 (26,295.53) AAA 2.32
3133ECG99 FFCB Note 4,000,000.00 03/07/2013 4,007,800.00 99.31 3,972,360.00 3.65% Aaa/AA+ 2.40
0.66%Due 2/22/2017 0.61% 4,004,713.40 0.95% 2,860.00 (32,353.40) AAA 2.37
3137EADT3 FHLMC Note 3,000,000.00 02/27/2014 3,013,410.00 99.96 2,998,803.00 2.76% Aaa/AA+ 2.40
0.875%Due 2/22/2017 0.72% 3,010,764.91 0.89% 2,843.75 (11,961.91) AAA 2.36
3133ECMM3 FFCB Note 5,000,000.00 04/25/2013 4,996,050.00 98.93 4,946,350.00 4.55% Aaa/AA+ 2.57
0.6%Due 4/25/2017 0.62% 4,997,466.70 1.02% 13,000.00 (51,116.70) AAA 2.53
Chandler Asset Management-CONFIDENTIAL Execution Time 10/14/201412:59:21 PM
28
CACity of Dublin Holdings Report
Account#10198 As of 9/30/14
Purchase ..
CUSIP Security Description Par Value/Units Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
AGENCY
3135GOZLO FNMA Note 1,075,000.00 08/21/2014 1,071,162.25 99.58 1,070,469.95 0.98% Aaa/AA+ 2.99
1%Due 9/27/2017 1.12% 1,071,288.02 1.14% 119.44 (818.07) AAA 2.94
3134G3Y53 FHLMC Callable Note 1X 11/28/14 4,000,000.00 11/28/2012 4,000,000.00 98.39 3,935,680.00 3.62% Aaa/AA+ 3.16
0.85%Due 11/28/2017 0.85% 4,000,000.00 1.37% 11,616.67 (64,320.00) AAA 3.10
313381 B20 FHLB Note 4,000,000.00 12/13/2012 3,999,960.00 98.06 3,922,396.00 3.61% Aaa/AA+ 3.19
0.75%Due 12/8/2017 0.75% 3,999,974.43 1.37% 9,416.67 (77,578.43) AAA 3.13
53,123,957.25 52,933,222.95 48.70% Aaa 1 AA+ 1.81
Total Agency 53,075,000.00 0.80% 53,101,211.83 0.69% 113,369.32 (167,988.88) Aaa 1.78
COMMERCIAL PAPER
06538CKM2 Bank of Tokyo Mitsubishi NY Discount 2,180,000.00 06/16/2014 2,178,397.70 99.99 2,179,745.67 2.00% P-1/A-1 0.06
CP 0.21% 2,179,745.67 0.21% 0.00 0.00 F-1 0.06
0.21%Due 10/21/2014
89233HLJ1 Toyota Motor Credit DiscountCP 2,150,000.00 05/13/2014 2,147,742.50 99.97 2,149,426.67 1.97% P-1/A-1+ 0.13
0.2%Due 11/18/2014 0.20% 2,149,426.67 0.20% 0.00 0.00 F-1 0.13
69349KT59 PNC Bank Discount CP 2,100,000.00 09/08/2014 2,095,606.34 99.81 2,095,965.67 1.92% P-1/A-1 0.68
0.28%Due 6/5/2015 0.28% 2,095,965.67 0.28% 0.00 0.00 F-1 0.68
6,421,746.54 6,425,138.01 5.90% P-1 1 A-1 0.29
Total Commercial Paper 6,430,000.00 0.23% 6,425,138.01 0.23% 0.00 0.00 F-1 0.29
MONEY MARKET FUND Fl
31846V203 First American Govt Obligation Fund 445,542.57 Various 445,542.57 1.00 445,542.57 0.41% Aaa/AAA 0.00
0.00% 445,542.57 0.00% 0.00 0.00 NR 0.00
445,542.57 445,542.57 0.41% Aaa 1 AAA 0.00
Total Money Market Fund Fl 445,542.57 NIA 445,542.57 0.00% 0.00 0.00 NR 0.00
US CORPORATE
40428HPG1 HSBC USA Inc Note 750,000.00 10/28/2013 767,700.00 100.75 755,647.50 0.70% A2/A+ 0.37
2.375%Due 2/13/2015 0.53% 755,084.04 0.33% 2,375.00 563.46 AA- 0.37
94974BEUO Wells Fargo Corp Note 1,225,000.00 10/30/2013 1,278,189.50 101.77 1,246,682.50 1.16% A2/A+ 0.54
3.625%Due 4/15/2015 0.61% 1,244,782.05 0.35% 20,476.22 1,900.45 AA- 0.53
36962G4T8 General Electric Capital Corp Note 750,000.00 10/23/2013 771,907.50 101.76 763,200.75 0.71% Al/AA+ 1.11
2.25%Due 11/9/2015 0.80% 761,928.07 0.65% 6,656.25 1,272.68 NR 1.09
263534CD9 El Dupont Nemour Note 1,250,000.00 11/08/2013 1,282,325.00 101.73 1,271,576.25 1.17% A2/A 1.29
1.95%Due 1/15/2016 0.75% 1,269,223.58 0.61% 5,145.83 2,352.67 A 1.27
46625HJA9 JP Morgan Chase Note 1,250,000.00 11/07/2013 1,315,425.00 103.50 1,293,693.75 1.20% A3/A 1.76
3.15%Due 7/5/2016 1.13% 1,293,594.07 1.14% 9,406.25 99.68 A+ 1.71
36962G6Z2 General Electric Capital Corp Note 750,000.00 11/08/2013 759,817.50 101.21 759,108.00 0.70% Al/AA+ 1.78
1.5%Due 7/12/2016 1.00% 756,571.96 0.81% 2,468.75 2,536.04 NR 1.75
Chandler Asset Management-CONFIDENTIAL Execution Time 10/14/201412:59:21 PM
29
CACity of Dublin Holdings Report
Account#10198 As of 9/30/14
Purchase ..
CUSIP Security Description Par Value/Units Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
US CORPORATE
24422ERF8 John Deere Capital Corp Note 1,000,000.00 04/21/2014 1,025,640.00 102.02 1,020,197.00 0.94% A2/A 1.96
1.85%Due 9/15/2016 0.77% 1,020,951.54 0.81% 822.22 (754.54) NR 1.92
674599CB9 Occidental Petroleum Note 1,000,000.00 11/07/2013 1,017,920.00 101.27 1,012,702.00 0.93% Al/A 2.38
1.75%Due 2/15/2017 1.19% 1,013,071.06 1.21% 2,236.11 (369.06) A 2.32
278642AG8 Ebay Inc Note 1,000,000.00 Various 998,572.00 99.58 995,817.00 0.92% A2/A 2.79
1.35%Due 7/15/2017 1.39% 998,865.65 1.50% 2,850.00 (3,048.65) A- 2.72
68389XAN5 Oracle Corp Note 1,000,000.00 Various 991,607.11 99.28 992,789.00 0.92% Al/A+ 3.04
1.2%Due 10/15/2017 1.42% 993,546.35 1.44% 5,533.34 (757.35) A+ 2.96
40428HPH9 HSBC USA Inc Note 500,000.00 11/25/2013 498,705.00 99.64 498,200.50 0.46% A2/A+ 3.30
1.625%Due 1/16/2018 1.69% 498,968.97 1.74% 1,692.71 (768.47) AA- 3.18
037833AJ9 Apple Inc Note 1,000,000.00 02/19/2014 979,800.00 97.53 975,322.00 0.90% Aal/AA+ 3.59
1%Due 5/3/2018 1.50% 982,693.26 1.71% 4,111.11 (7,371.26) NR 3.49
166764AEO Chevron Corp.Callable Note Cont 1,000,000.00 03/26/2014 1,000,430.00 100.04 1,000,351.00 0.92% Aal/AA 3.73
5/24/2018 1.71% 1,000,378.82 1.71% 4,629.06 (27.82) NR 3.51
1.718%Due 6/24/2018
06406HCL1 Bank of New York Note 1,000,000.00 02/05/2014 1,006,820.00 100.86 1,008,584.00 0.93% Al/A+ 3.84
2.1%Due 8/1/2018 1.94% 1,005,846.91 1.87% 3,500.00 2,737.09 AA- 3.66
084664BY6 Berkshire Hathaway Note 1,000,000.00 12/12/2013 1,004,960.00 100.36 1,003,637.00 0.92% Aa2/AA 3.88
2%Due 8/15/2018 1.89% 1,004,120.71 1.90% 2,555.56 (483.71) A+ 3.70
14,699,818.61 14,597,508.25 13.47% Al/A+ 2.32
Total US Corporate 14,475,000.00 1.20% 14,599,627.04 1.17% 74,458.41 (2,118.79) A+ 2.24
US TREASURY
912828SE1 US Treasury Note 2,000,000.00 10/29/2013 2,001,256.70 100.08 2,001,562.00 1.84% Aaa/AA+ 0.38
0.25%Due 2/15/2015 0.20% 2,000,363.99 0.04% 638.59 1,198.01 AAA 0.37
912828UT5 US Treasury Note 2,000,000.00 11/08/2013 2,001,178.58 100.10 2,001,954.00 1.84% Aaa/AA+ 0.50
0.25%Due 3/31/2015 0.21% 2,000,423.26 0.05% 13.74 1,530.74 AAA 0.50
912828SU5 US Treasury Note 2,000,000.00 10/29/2013 2,000,397.33 100.12 2,002,344.00 1.84% Aaa/AA+ 0.62
0.25%Due 5/15/2015 0.24% 2,000,159.78 0.06% 1,888.59 2,184.22 AAA 0.62
912828VHO US Treasury Note 2,000,000.00 11/08/2013 2,003,912.95 100.23 2,004,610.00 1.84% Aaa/AA+ 0.75
0.375%Due 6/30/2015 0.25% 2,001,788.78 0.07% 1,895.38 2,821.22 AAA 0.75
912828TX8 US Treasury Note 3,000,000.00 02/19/2014 3,006,455.37 100.20 3,006,093.00 2.76% Aaa/AA+ 1.13
0.375%Due 11/15/2015 0.25% 3,004,181.20 0.19% 4,249.32 1,911.80 AAA 1.12
912828UG3 US Treasury Note 2,000,000.00 10/29/2013 2,000,162.94 100.14 2,002,890.00 1.84% Aaa/AA+ 1.29
0.375%Due 1/15/2016 0.37% 2,000,095.10 0.26% 1,589.67 2,794.90 AAA 1.29
912828US7 US Treasury Note 2,000,000.00 12/27/2013 1,996,256.70 100.05 2,000,938.00 1.84% Aaa/AA+ 1.46
0.375%Due 3/15/2016 0.46% 1,997,533.88 0.34% 331.49 3,404.12 AAA 1.45
912828C81 US Treasury Note 1,000,000.00 04/30/2014 999,104.91 99.96 999,609.00 0.92% Aaa/AA+ 1.58
0.375%Due 4/30/2016 0.42% 999,293.48 0.40% 1,569.29 315.52 AAA 1.58
Chandler Asset Management-CONFIDENTIAL Execution Time 10/14/201412:59:21 PM
30
CACity of Dublin Holdings Report
Account#10198 As of 9/30/14
Purchase ..
CUSIP Security Description Par Value/Units Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
US TREASURY
J
912828A59 US Treasury Note 2,000,000.00 12/27/2013 1,990,709.83 99.79 1,995,782.00 1.84% Aaa/AA+ 2.21
0.625%Due 12/15/2016 0.78% 1,993,073.19 0.72% 3,688.52 2,708.81 AAA 2.18
9128281374 US Treasury Note 3,000,000.00 02/20/2014 2,991,806.94 99.57 2,987,109.00 2.74% Aaa/AA+ 2.38
0.625%Due 2/15/2017 0.72% 2,993,475.62 0.81% 2,394.70 (6,366.62) AAA 2.35
912828SSO US Treasury Note 1,000,000.00 04/30/2014 999,808.04 99.90 998,984.00 0.92% Aaa/AA+ 2.58
0.875%Due 4/30/2017 0.88% 999,835.01 0.91% 3,661.68 (851.01) AAA 2.54
912828C24 US Treasury Note 3,000,000.00 08/18/2014 3,000,595.98 99.29 2,978,673.00 2.74% Aaa/AA+ 4.42
1.5%Due 2/28/2019 1.50% 3,000,580.49 1.67% 3,853.59 (21,907.49) AAA 4.25
912828D80 US Treasury Note 3,000,000.00 Various 2,977,822.56 99.31 2,979,375.00 2.74% Aaa/AA+ 4.92
1.625%Due 8/31/2019 1.78% 2,978,017.50 1.77% 4,174.72 1,357.50 AAA 4.70
27,969,468.83 27,959,923.00 25.70% Aaa 1 AA+ 2.04
Total US Treasury 28,000,000.00 0.68% 27,968,821.28 0.63% 29,949.28 (8,898.28) Aaa 1.99
109,011,795.30 108,709,073.25 100.00% Aa1 1 AA+ 1.89
TOTAL PORTFOLIO 108,775,593.28 0.78% 108,891,062.32 0.71% 219,551.13 (181,989.07) Aaa 1.76
TOTAL MARKET VALUE PLUS ACCRUED 108,928,624.38
Chandler Asset Management-CONFIDENTIAL Execution Time 10/14/201412:59:21 PM
31
CACity of Dublin Reporting Account Holdings Report
Account#10219 As of 9/30/14
Purchase ..
CUSIP Security Description Par Value/Units Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
LAIF
90LAIF$00 Local Agency Investment Fund State 48,458,873.87 Various 48,458,873.87 1.00 48,458,873.87 98.38% NR/NR 0.00
Pool 0.24% 48,458,873.87 0.24% 31,118.30 0.00 NR 0.00
48,458,873.87 48,458,873.87 98.38% NR I NR 0.00
Total LAIF 48,458,873.87 0.24% 48,458,873.87 0.24% 31,118.30 0.00 NR 0.00
LOCAL GOV INVESTMENT POOL-
90CAMP$00 Public Financial Management CAMP 800,817.73 Various 800,817.73 1.00 800,817.73 1.62% NR/NR 0.00
0.05% 800,817.73 0.05% 0.00 0.00 NR 0.00
800,817.73 800,817.73 1.62% NR I NR 0.00
Total Local Gov Investment Pool 800,817.73 0.05% 800,817.73 0.05% 0.00 0.00 NR 0.00
49,259,691.60 49,259,691.60 100.00% NR I NR 0.00
TOTAL PORTFOLIO 49,259,691.60 0.24% 49,259,691.60 0.24% 31,118.30 0.00 NR 0.00
TOTAL MARKET VALUE PLUS ACCRUED 49,290,809.90
Chandler Asset Management-CONFIDENTIAL Execution Time 10/17/2014 1:57:24 PM
32