Ethel Hart Mutual Endowment Fund

Transcription

1 Office of the City Treasurer Quarterly Investment Report September 30, 2010 Russell Fehr, City Treasurer John P. Colville, Chief Investment Officer Lydia Abreu, Investment and Operations Manager Robert Tokunaga, Senior Investment Officer 915 I Street, HCH 3 rd Floor #0900, Sacramento, CA Phone: Fax:

2 INTRODUCTION In 1993, Ethel MacLeod Hart left a bequest of $1,498, to the for the.. use, enjoyment and comfort of senior citizens. On the recommendation of the Ethel MacLeod Hart Advisory Committee a permanent endowment of $1,000,000 was established. The balance of the bequest was retained in an operating fund account (Hart Operating Fund) and used over the next fiveyear period for appropriate projects. Annually the amount available for disbursement will be reported to the Board by Rosanne Bernardy, Superintendent of the Office of Human Services. The Hart Trust Endowment Fund ( the Fund ) will be invested with a growth objective. The minimum return objective on these dollars over a five year period is $400,000 or roughly 7% compounded annually. The Advisory Committee is responsible for providing advice to City staff and the City Council on the appropriate use of the Ethel MacLeod Hart Trust Fund for Senior Citizens consistent with the terms of the bequest, the interest of the donor, and the approved general guidelines. The Advisory Committee consists of seven members appointed by the Mayor. Appointees must be residents of the City and at least sixty (60) years of age. Two Advisory Committee members must be representatives of specific organizations: American Association of Retired Persons and Sacramento County Adult and Aging Commission. STRATEGY * Adhere to prudent investment practices to provide for the preservation and growth of principal; and OBJECTIVES * The objective for this fund is growth and capital preservation; and * To earn a total rate of return on the Hart Trust Endowment Fund to meet the return objectives of $400,000 (approximately 7% compounded annually) over subsequent five-year periods; and * Provide liquidity for the Hart Operating Fund for the..use, enjoyment and comfort of senior citizens based on recommendations to City Council by the Advisory Committee. Page 2 of 8

3 September 30, 2010 Performance Quarter To Date Inception To Date Account SBBIG S&P TWR Quarter To Date Inception To Date Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended September 30, 2010 Interest Rates June 30, 2010 September 30, Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities Page 3 of st Qtr Russell 3000 ACWI Ex U.S. Emerging Markets Fixed Income Cash

4 September 30, 2010 Activity From to Actual Asset Allocation Portfolio Value on ,281,232 * Accrued Interest 710 Contributions 0 Withdrawals 0 Realized Gains -1,935 Unrealized Gains 128,888 Interest 2,065 Dividends 8,959 Change in Accrued Interest -687 Portfolio Value on ,419,208 Accrued Interest 23 Cash and Equivalents 5.79% Fixed Income 3.61% * Beginning balance includes $104 adjustment to FY10 Pool A interest earnings. Top 10 Holdings Equities 90.60% Securities Market Value Pct. Ishares Tr Dj Us Tech Sec 115, Pool A Cash 84, Select Sector Spdr Tr Sbi Int-Finl 71, Freddie Mac 51, % Due Merck & Co Inc (new) 47, Pinnacle West Cap Corp 41, Kinder Morgan Energy Partners Ltd 41, Best Buy Inc Com 40, International Bus Mach 40, Peabody Energy Corp 39, Page 4 of 8

5 PORTFOLIO APPRAISAL September 30, 2010 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 2,903 2,903 2, miscintrec Misc Interest Receivable PoolA Pool A Cash 84,815 84,815 84, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -6,000-6,000-6, ,220 82,220 82, FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) 50, x4w72 Freddie Mac , , , AAA Aaa % Due COMMON STOCK MATERIALS 200 cf Cf Industries Holdings Inc , ,100 19, A 600 mon Monsanto C0 New Com , ,758 28, B+ 58,927 47,858 47, INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,465 30, A- 400 cat Caterpillar Inc Del Com , ,472 31, A- 500 de Deere & Co Com , ,890 34, A- 400 gd General Dynamics Corp , ,124 25, A+ 2,000 ge General Electric Co , ,500 32, A- 400 iyt Ishares Tr Transp Ave Idx , ,660 32, rtn Raytheon Company , ,426 27, B+ 245, , , TELECOMMUNICATION SERVICES 900 t At&t Inc , ,740 25, B+ 3,180 ftr Frontier Communication Com , ,981 25, B- 750 vz Verizon Communications Inc , ,442 24, B 98,357 76,163 76, CONSUMER DISCRETIONARY 1,000 bby Best Buy Inc Com , ,830 40, B+ 500 mcd Mcdonald's Corp , ,255 37, A 1,000 xly Select Sector Spdr Tr Sbi Cons Discr , ,410 33, , , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,422 26, A 400 ko Coca Cola Co Com , ,408 23, A+ 550 pm Philip Morris Intl Inc Com , ,811 30, ,929 80,641 80, Page 5 of 8

6 PORTFOLIO APPRAISAL September 30, 2010 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date ENERGY 500 eca Encana Corp Com , ,115 15, B+ 600 kmp Kinder Morgan Energy Partners , ,100 41, Ltd 300 oih Oil Svc Holdrs Tr Depostry Rcpt , ,945 33, btu Peabody Energy Corp , ,208 39, B+ 110, , , FINANCIAL 1,300 nly Annaly Cap Mgmt Inc Com , ,880 22, B 180 gs Goldman Sachs Group Com , ,024 26, A- 750 jpm Jpmorgan Chase & Co , ,545 28, B+ 1,700 pgf Powershares Etf Trust Finl Pfd Ptfl , ,931 30, ,000 xlf Select Sector Spdr Tr Sbi Int-Finl , ,725 71, kie Spdr Series Trust Spdr Kbw Ins Etf , ,617 29, , , , HEALTHCARE 500 jnj Johnson & Johnson , ,980 30, A+ 1,300 mrk Merck & Co Inc (new) , ,853 47, B+ 1,500 pfe Pfizer Inc , ,755 25, B+ 129, , , INFORMATION TECHNOLOGY 500 hpq Hewlett Packard Co , ,035 21, B+ 300 ibm International Bus Mach , ,242 40, A 2,000 iyw Ishares Tr Dj Us Tech Sec , , , v Visa Inc Com Cl A , ,704 29, , , , UTILITIES 700 d Dominion Res Va New Com , ,562 30, B+ 1,000 pnw Pinnacle West Cap Corp , ,270 41, B 72,640 71,832 71, ,267,594 1,252,886 1,252, AMERICAN DEPOSITORY RECEIPTS ENERGY 800 bp Bp Amoco Plc - Spons Adr , ,936 32, ,595 32,936 32, TOTAL PORTFOLIO 1,429,214 1,419, ,419, Page 6 of 8

7 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Date Date Quantity Security Price Amount Price Difference Purchases COMMON STOCK Canadian Pac Ltd New Com , Caterpillar Inc Del Com , Ishares Tr Transp Ave Idx , Semiconductor Hldrs Tr Dep Rcpt , ,649 AMERICAN DEPOSITORY RECEIPTS Bp Amoco Plc - Spons Adr , ,595 Total Purchases 133,244 Page 7 of 8

8 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss Sales COMMON STOCK Colgate Palmolive Co Com , , ,500 Semiconductor Hldrs Tr Dep Rcpt , ,414 69,529 8,143 Total Sales 69,529 8,143 Page 8 of 8

9 Office of the City Treasurer Quarterly Investment Report December 31, 2010 Russell Fehr, City Treasurer John P. Colville, Chief Investment Officer Lydia Abreu, Investment and Operations Manager Robert Tokunaga, Senior Investment Officer 915 I Street, HCH 3 rd Floor #0900, Sacramento, CA Phone: Fax:

10 INTRODUCTION In 1993, Ethel MacLeod Hart left a bequest of $1,498, to the for the.. use, enjoyment and comfort of senior citizens. On the recommendation of the Ethel MacLeod Hart Advisory Committee a permanent endowment of $1,000,000 was established. The balance of the bequest was retained in an operating fund account (Hart Operating Fund) and used over the next fiveyear period for appropriate projects. Annually the amount available for disbursement will be reported to the Board by Rosanne Bernardy, Superintendent of the Office of Human Services. The Hart Trust Endowment Fund ( the Fund ) will be invested with a growth objective. The minimum return objective on these dollars over a five year period is $400,000 or roughly 7% compounded annually. The Advisory Committee is responsible for providing advice to City staff and the City Council on the appropriate use of the Ethel MacLeod Hart Trust Fund for Senior Citizens consistent with the terms of the bequest, the interest of the donor, and the approved general guidelines. The Advisory Committee consists of seven members appointed by the Mayor. Appointees must be residents of the City and at least sixty (60) years of age. Two Advisory Committee members must be representatives of specific organizations: American Association of Retired Persons and Sacramento County Adult and Aging Commission. STRATEGY * Adhere to prudent investment practices to provide for the preservation and growth of principal; and OBJECTIVES * The objective for this fund is growth and capital preservation; and * To earn a total rate of return on the Hart Trust Endowment Fund to meet the return objectives of $400,000 (approximately 7% compounded annually) over subsequent five-year periods; and * Provide liquidity for the Hart Operating Fund for the..use, enjoyment and comfort of senior citizens based on recommendations to City Council by the Advisory Committee. Page 2 of 8

11 December 31, 2010 Performance Quarter Inception Since To Date To Date Account SBBIG S&P TWR Quarter To Date Inception To Date Since Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended December 31, Interest Rates September 30, 2010 December 31, Russell 3000 ACWI Ex U.S. Emerging Markets Fixed Income Cash Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities -2 Page 3 of 8 2nd Qtr -1.34

12 December 31, 2010 Activity From to Actual Asset Allocation Portfolio Value on ,419,208 Accrued Interest 23 Contributions 0 Withdrawals 0 Realized Gains 2,298 Unrealized Gains 115,849 Interest 1,934 Dividends 10,286 Change in Accrued Interest 687 Portfolio Value on ,549,575 Accrued Interest 710 Cash and Equivalents 3.74% Fixed Income 3.26% Equities 93.00% Top 10 Holdings Securities Market Value Pct. Ishares Tr Dj Us Tech Sec 151, Select Sector Spdr Tr Sbi Int-Finl 79, Pool A Cash 60, Peabody Energy Corp 51, Freddie Mac 50, % Due Merck & Co Inc (new) 46, International Bus Mach 44, Alps Etf Tr Alerian Mlp 43, Oil Svc Holdrs Tr Depostry Rcpt 42, Kinder Morgan Energy Partners Ltd 42, Page 4 of 8

13 PORTFOLIO APPRAISAL December 31, 2010 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 2,853 2,853 2, miscintrec Misc Interest Receivable PoolA Pool A Cash 60,362 60,362 60, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -6,000-6,000-6, ,998 57,998 57, FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) 50, x4w72 Freddie Mac , , , AAA Aaa % Due COMMON STOCK MATERIALS 200 cf Cf Industries Holdings Inc , ,030 27, A 600 mon Monsanto C0 New Com , ,784 41, B+ 58,927 68,814 68, INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,405 32, A- 400 cat Caterpillar Inc Del Com , ,464 37, A+ 500 de Deere & Co Com , ,525 41, A- 2,000 ge General Electric Co , ,580 36, A- 400 iyt Ishares Tr Transp Ave Idx , ,928 36, , , , TELECOMMUNICATION SERVICES 900 t At&t Inc , ,442 26, B+ 3,180 ftr Frontier Communication Com , ,941 30, B- 750 vz Verizon Communications Inc , ,835 26, B 98,357 84,218 84, CONSUMER DISCRETIONARY 1,000 bby Best Buy Inc Com , ,290 34, B+ 500 mcd Mcdonald's Corp , ,380 38, A 1,000 xly Select Sector Spdr Tr Sbi Cons Discr , ,410 37, , , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,082 27, A 400 ko Coca Cola Co Com , ,308 26, A+ 550 pm Philip Morris Intl Inc Com , ,191 32, ,929 85,581 85, ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,389 43, Page 5 of 8

14 PORTFOLIO APPRAISAL December 31, 2010 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 500 eca Encana Corp Com , ,560 14, B+ 600 kmp Kinder Morgan Energy Partners , ,156 42, Ltd 300 oih Oil Svc Holdrs Tr Depostry Rcpt , ,159 42, btu Peabody Energy Corp , ,184 51, B+ 153, , , FINANCIAL 1,300 nly Annaly Cap Mgmt Inc Com , ,296 23, B 180 gs Goldman Sachs Group Com , ,269 30, A- 750 jpm Jpmorgan Chase & Co , ,815 31, B+ 1,700 pgf Powershares Etf Trust Finl Pfd Ptfl , ,937 29, ,000 xlf Select Sector Spdr Tr Sbi Int-Finl , ,750 79, kie Spdr Series Trust Spdr Kbw Ins Etf , ,272 32, , , , HEALTHCARE 500 jnj Johnson & Johnson , ,925 30, A+ 1,300 mrk Merck & Co Inc (new) , ,852 46, B+ 1,500 pfe Pfizer Inc , ,265 26, B+ 129, , , INFORMATION TECHNOLOGY 300 ibm International Bus Mach , ,028 44, A 2,350 iyw Ishares Tr Dj Us Tech Sec , , , ,500 msft Microsoft Corp , ,865 41, B+ 550 v Visa Inc Com Cl A , ,709 38, , , , UTILITIES 700 d Dominion Res Va New Com , ,904 29, B+ 1,000 pnw Pinnacle West Cap Corp , ,450 41, B 72,640 71,354 71, ,311,463 1,405,674 1,405, AMERICAN DEPOSITORY RECEIPTS ENERGY 800 bp Bp Amoco Plc - Spons Adr , ,336 35, ,595 35,336 35, TOTAL PORTFOLIO 1,448,861 1,549, ,550, Page 6 of 8

15 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Date Date Quantity Security Price Amount Price Difference Purchases COMMON STOCK ,700 Alps Etf Tr Alerian Mlp , Ishares Tr Dj Us Tech Sec , ,500 Microsoft Corp , Visa Inc Com Cl A , ,324 Total Purchases 112,324 Page 7 of 8

16 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss Sales COMMON STOCK General Dynamics Corp , , Hewlett Packard Co , , Raytheon Company , ,975 75,883 7,427 Total Sales 75,883 7,427 Page 8 of 8

17 Office of the City Treasurer Quarterly Investment Report March 31, 2011 Russell Fehr, City Treasurer John P. Colville, Chief Investment Officer Lydia Abreu, Investment and Operations Manager Robert Tokunaga, Senior Investment Officer 915 I Street, HCH 3rd Floor #09500, Sacramento, CA Phone: Fax:

18 INTRODUCTION In 1993, Ethel MacLeod Hart left a bequest of $1,498, to the for the.. use, enjoyment and comfort of senior citizens. On the recommendation of the Ethel MacLeod Hart Advisory Committee a permanent endowment of $1,000,000 was established. The balance of the bequest was retained in an operating fund account (Hart Operating Fund) and used over the next fiveyear period for appropriate projects. Annually the amount available for disbursement will be reported to the Board by Rosanne Bernardy, Superintendent of the Office of Human Services. The Hart Trust Endowment Fund ( the Fund ) will be invested with a growth objective. The minimum return objective on these dollars over a five year period is $400,000 or roughly 7% compounded annually. The Advisory Committee is responsible for providing advice to City staff and the City Council on the appropriate use of the Ethel MacLeod Hart Trust Fund for Senior Citizens consistent with the terms of the bequest, the interest of the donor, and the approved general guidelines. The Advisory Committee consists of seven members appointed by the Mayor. Appointees must be residents of the City and at least sixty (60) years of age. Two Advisory Committee members must be representatives of specific organizations: American Association of Retired Persons and Sacramento County Adult and Aging Commission. STRATEGY * Adhere to prudent investment practices to provide for the preservation and growth of principal; and OBJECTIVES * The objective for this fund is growth and capital preservation; and * To earn a total rate of return on the Hart Trust Endowment Fund to meet the return objectives of $400,000 (approximately 7% compounded annually) over subsequent five-year periods; and * Provide liquidity for the Hart Operating Fund for the..use, enjoyment and comfort of senior citizens based on recommendations to City Council by the Advisory Committee. Page 2 of 8

19 March 31, 2011 Performance Quarter Inception Since To Date To Date Account SBBIG S&P TWR Quarter To Date Inception To Date Since Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended March 31, 2011 Interest Rates December 31, 2010 March 31, Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities rd Qtr Russell 3000 ACWI Ex U.S. Emerging Markets Fixed Income Cash Page 3 of 8

20 March 31, 2011 Activity From to Portfolio Value on ,549,575 Accrued Interest 710 Contributions 0 Withdrawals 0 Realized Gains -566 Unrealized Gains 56,025 Interest 1,991 Dividends 9,765 Change in Accrued Interest -710 Portfolio Value on ,616,790 Accrued Interest 0 Actual Asset Allocation Cash and Equivalents 3.88% Equities 96.12% Top 10 Holdings Securities Market Value Pct. Ishares Tr Dj Us Tech Sec 156, Select Sector Spdr Tr Sbi Int-Finl 81, Pool A Cash 65, Peabody Energy Corp 57, Oil Svc Holdrs Tr Depostry Rcpt 49, International Bus Mach 48, Deere & Co Com 48, Caterpillar Inc Del Com 44, Kinder Morgan Energy Partners Ltd 44, Alps Etf Tr Alerian Mlp 44, Page 4 of 8

21 PORTFOLIO APPRAISAL March 31, 2011 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 2,871 2,871 2, miscintrec Misc Interest Receivable PoolA Pool A Cash 65,166 65,166 65, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -6,000-6,000-6, ,719 62,719 62, COMMON STOCK MATERIALS 200 cf Cf Industries Holdings Inc , ,358 27, A 600 mon Monsanto C0 New Com , ,356 43, B+ 58,927 70,714 70, INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,170 32, A+ 400 cat Caterpillar Inc Del Com , ,540 44, A+ 500 de Deere & Co Com , ,445 48, A- 2,000 ge General Electric Co , ,100 40, A- 400 iyt Ishares Tr Transp Ave Idx , ,356 38, , , , TELECOMMUNICATION SERVICES 900 t At&t Inc , ,549 27, A+ 3,180 ftr Frontier Communication Com , ,140 26, A+ 750 vz Verizon Communications Inc , ,905 28, B 98,357 82,594 82, CONSUMER DISCRETIONARY 1,000 bby Best Buy Inc Com , ,720 28, B+ 500 mcd Mcdonald's Corp , ,045 38, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,050 39, Discr 91, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,633 28, A 400 ko Coca Cola Co Com , ,536 26, A+ 550 pm Philip Morris Intl Inc Com , ,096 36, ,929 91,265 91, ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,172 44, ,000 eca Encana Corp Com , ,530 34, A+ 600 kmp Kinder Morgan Energy Partners , ,454 44, Ltd 300 oih Oil Svc Holdrs Tr Depostry Rcpt , ,308 49, Page 5 of 8

22 PORTFOLIO APPRAISAL March 31, 2011 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 800 btu Peabody Energy Corp , ,568 57, A+ 169, , , FINANCIAL 1,300 nly Annaly Cap Mgmt Inc Com , ,685 22, A+ 180 gs Goldman Sachs Group Com , ,548 28, A- 750 jpm Jpmorgan Chase & Co , ,575 34, A+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,838 30, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , ,950 81, kie Spdr Series Trust Spdr Kbw Ins Etf , ,097 33, , , , HEALTHCARE 500 jnj Johnson & Johnson , ,625 29, A+ 1,300 mrk Merck & Co Inc (new) , ,913 42, B 1,500 pfe Pfizer Inc , ,465 30, A+ 129, , , INFORMATION TECHNOLOGY 300 ibm International Bus Mach , ,921 48, A+ 2,350 iyw Ishares Tr Dj Us Tech Sec , , , ,500 msft Microsoft Corp , ,085 38, B+ 550 v Visa Inc Com Cl A , ,491 40, , , , UTILITIES 700 d Dominion Res Va New Com , ,290 31, A+ 1,000 pnw Pinnacle West Cap Corp , ,790 42, B 72,640 74,080 74, PASSIVE INDEX 500 iwm Ishares Tr Russell , ,085 42, ,368,498 1,518,759 1,518, AMERICAN DEPOSITORY RECEIPTS ENERGY 800 bp Bp Amoco Plc - Spons Adr , ,312 35, ,595 35,312 35, TOTAL PORTFOLIO 1,460,812 1,616, ,616, Page 6 of 8

23 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Date Date Quantity Security Price Amount Price Difference Purchases COMMON STOCK Encana Corp Com , Ishares Tr Russell , ,035 Total Purchases 57,035 Page 7 of 8

24 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss Sales FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ,000 Freddie Mac , % Due , Total Sales 50, Page 8 of 8

25 Office of the City Treasurer Quarterly Investment Report June 30, 2011 Russell Fehr, City Treasurer John P. Colville, Chief Investment Officer Lydia Abreu, Investment and Operations Manager Robert Tokunaga, Senior Investment Officer 915 I Street, HCH 3 rd Floor #09500, Sacramento, CA Phone: Fax:

26 INTRODUCTION In 1993, Ethel MacLeod Hart left a bequest of $1,498, to the for the.. use, enjoyment and comfort of senior citizens. On the recommendation of the Ethel MacLeod Hart Advisory Committee a permanent endowment of $1,000,000 was established. The balance of the bequest was retained in an operating fund account (Hart Operating Fund) and used over the next fiveyear period for appropriate projects. Annually the amount available for disbursement will be reported to the Board by Rosanne Bernardy, Superintendent of the Office of Human Services. The Hart Trust Endowment Fund ( the Fund ) will be invested with a growth objective. The minimum return objective on these dollars over a five year period is $400,000 or roughly 7% compounded annually. The Advisory Committee is responsible for providing advice to City staff and the City Council on the appropriate use of the Ethel MacLeod Hart Trust Fund for Senior Citizens consistent with the terms of the bequest, the interest of the donor, and the approved general guidelines. The Advisory Committee consists of seven members appointed by the Mayor. Appointees must be residents of the City and at least sixty (60) years of age. Two Advisory Committee members must be representatives of specific organizations: American Association of Retired Persons and Sacramento County Adult and Aging Commission. STRATEGY * Adhere to prudent investment practices to provide for the preservation and growth of principal; and OBJECTIVES * The objective for this fund is growth and capital preservation; and * To earn a total rate of return on the Hart Trust Endowment Fund to meet the return objectives of $400,000 (approximately 7% compounded annually) over subsequent five-year periods; and * Provide liquidity for the Hart Operating Fund for the..use, enjoyment and comfort of senior citizens based on recommendations to City Council by the Advisory Committee. Page 2 of 7

27 June 30, 2011 Performance Quarter Inception Since To Date To Date Account SBBIG S&P TWR Quarter To Date Inception To Date Since Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended June 30, M arch 31, Russell 3000 Interest Rates June 30, ACWI Ex U.S. Emerging Markets Fixed Income Cash Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities -2 4th Qtr Page 3 of 7

28 June 30, 2011 Activity From to Portfolio Value on ,616,790 Contributions 0 Withdrawals 0 Realized Gains 0 Unrealized Gains -19,989 Interest 656 Dividends 11,396 Portfolio Value on ,608,853 Actual Asset Allocation Cash and Equivalents 4.65% Equities 95.35% Top 10 Holdings Securities Market Value Pct. Ishares Tr Dj Us Tech Sec 152, Pool A Cash 76, Select Sector Spdr Tr Sbi Int-Finl 76, International Bus Mach 51, Peabody Energy Corp 47, Visa Inc Com Cl A 46, Merck & Co Inc (new) 45, Oil Svc Holdrs Tr Depostry Rcpt 45, Pinnacle West Cap Corp 44, Kinder Morgan Energy Partners Ltd 43, Page 4 of 7

29 PORTFOLIO APPRAISAL June 30, 2011 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 3,703 3,703 3, miscintrec Misc Interest Receivable PoolA Pool A Cash 76,847 76,847 76, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -6,000-6,000-6, ,772 74,772 74, COMMON STOCK MATERIALS 200 cf Cf Industries Holdings Inc , ,334 28, A 600 mon Monsanto C0 New Com , ,524 43, B+ 58,927 71,858 71, INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,160 31, A- 400 cat Caterpillar Inc Del Com , ,584 42, A+ 500 de Deere & Co Com , ,225 41, A- 2,000 ge General Electric Co , ,720 37, A- 400 iyt Ishares Tr Transp Ave Idx , ,184 39, , , , TELECOMMUNICATION SERVICES 900 t At&t Inc , ,269 28, B+ 3,180 ftr Frontier Communication Com , ,663 25, B- 750 vz Verizon Communications Inc , ,922 27, B 98,357 81,854 81, CONSUMER DISCRETIONARY 1,000 bby Best Buy Inc Com , ,410 31, B+ 500 mcd Mcdonald's Corp , ,160 42, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,210 40, Discr 91, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,051 29, A 400 ko Coca Cola Co Com , ,916 26, A+ 550 pm Philip Morris Intl Inc Com , ,723 36, ,929 92,690 92, ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,308 43, ,000 eca Encana Corp Com , ,790 30, B+ 600 kmp Kinder Morgan Energy Partners , ,560 43, Ltd 300 oih Oil Svc Holdrs Tr Depostry Rcpt , ,600 45, Page 5 of 7

30 PORTFOLIO APPRAISAL June 30, 2011 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 800 btu Peabody Energy Corp , ,128 47, B+ 169, , , FINANCIAL 1,300 nly Annaly Cap Mgmt Inc Com , ,452 23, B 180 gs Goldman Sachs Group Com , ,956 23, A- 750 jpm Jpmorgan Chase & Co , ,705 30, B+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,651 30, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , ,750 76, kie Spdr Series Trust Spdr Kbw Ins , ,282 31, Etf 213, , , HEALTHCARE 500 jnj Johnson & Johnson , ,260 33, A+ 1,300 mrk Merck & Co Inc (new) , ,877 45, B 1,500 pfe Pfizer Inc , ,900 30, B 129, , , INFORMATION TECHNOLOGY 300 ibm International Bus Mach , ,465 51, A+ 2,350 iyw Ishares Tr Dj Us Tech Sec , , , ,500 msft Microsoft Corp , ,000 39, B+ 550 v Visa Inc Com Cl A , ,343 46, , , , UTILITIES 700 d Dominion Res Va New Com , ,789 33, A- 1,000 pnw Pinnacle West Cap Corp , ,580 44, B 72,640 78,369 78, PASSIVE INDEX 500 iwm Ishares Tr Russell , ,400 41, ,368,498 1,498,649 1,498, AMERICAN DEPOSITORY RECEIPTS ENERGY 800 bp Bp Amoco Plc - Spons Adr , ,432 35, ,595 35,432 35, TOTAL PORTFOLIO 1,472,865 1,608, ,608, Page 6 of 7

31 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss No transactions within the specified date range were found! Page 7 of 7