California JPIA El Capitan Room 8081 Moody Street La Palma, California TO: MANAGERS COMMITTEE AND FINANCE OFFICERS COMMITTEE

Transcription

1 California JPIA El Capitan Room 8081 Moody Street La Palma, California TO: MANAGERS COMMITTEE AND FINANCE OFFICERS COMMITTEE FROM: Thaddeus McCormack, City Manager, City of Lakewood, Chairman, Managers Committee; Jose Gomez, Director of Finance and Administrative Services, City of Santa Fe Springs, Chairman, Finance Officers Committee DATE: November 9, 2017 SUBJECT: Combined Managers Committee and Finance Officers Committee Meeting, Monday, November 13, 2017 at 12:00 p.m., in the El Capitan Room of the California JPIA, 8081 Moody Street, La Palma, CA AGENDA CALL TO ORDER COMMENTS FROM AUDIENCE CONSENT CALENDAR All items under Consent Calendar may be enacted by one motion. Any item may be removed from the Consent Calendar and acted upon separately by the Managers Committee and Finance Officers Committee. 1. APPROVAL Managers Committee Minutes for the meeting of June 12, APPROVAL Finance Officers Committee Minutes for the meeting of June 8, APPROVAL Finance Officers Committee Information Only Minutes for the meeting of September 7, RECEIVE AND FILE Treasurer s Monthly Compliance Report for August, September, and October RECEIVE AND FILE Local Agency Investment Fund Quarterly Report as of September 30,

2 Managers Committee and Finance Officers Agenda November 13, RECEIVE AND FILE Los Angeles County Pooled Investment Fund Report as of September 30, RECEIVE AND FILE Preliminary Financial Statements for the Quarter Ended June 30, RECEIVE AND FILE 2018 Committee Meeting Dates REPORTS AND RECCOMENDATIONS 9. RECEIVE AND FILE Investment Performance Review for the Quarter Ended September 30, RECEIVE AND FILE Actuarial Study as of June 30, CONSIDERATION Annual Contribution CONSIDERATION October 2017 Retrospective Computations ADJOURNMENT To a regular Managers Committee meeting on January 8, 2018 and Finance Officers Committee meeting on January 11, 2018 at 12:00 p.m. in the El Capitan Room of the California JPIA 8081 Moody Street, La Palma, CA In compliance with Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Administrative Assistant at (562) Notification 48 hours before meeting will enable the Authority to make reasonable arrangements to ensure accessibility. (28 CFR ADA Title II) TELECONFERENCE PARTICIPATION To be a voting participant in action items appearing on the agenda, the participant s teleconference location must appear below and the participant must have posted the agenda in a location accessible to the general public no less than 72 hours prior to the announced meeting time, in accordance and within the requirements of the Brown Act (Gov. Code, et seq.). At the announced time of the meeting, teleconference participants (unless otherwise instructed) shall call the California JPIA s teleconference number at and when prompted, enter the participant code 86783, and identify themselves for the record. To access the video conferencing and view the meeting online, go to Join Skype Meeting TELECONFERENCE LOCATIONS 2

3 Managers Committee and Finance Officers Agenda November 13, 2017 City of Big Bear Lake, Big Bear Boulevard, Big Bear Lake, CA 92315, (909) City of Bradbury, 600 Winston Avenue, Bradbury, CA (626) City of Dana Point, Golden Lantern, Dana Point, CA 92629, (949) City of Paso Robles, 1000 Spring Street, Paso Robles, CA , (805) City of Port Hueneme, 250 North Ventura Road, Port Hueneme, CA 93041, (805) City of San Clemente, 100 Avenida Presidio, San Clemente, CA 92672, (949) City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401, (805) City of Seal Beach, 211 Eighth Street, Seal Beach, CA 90740, (562) City of Sierra Madre, 232 West Sierra Madre Boulevard, Sierra Madre, CA 91024, (626) City of Solvang, 1644 Oak Street, Solvang, CA 93463, (805) City of Temple City, 9701 Las Tunas Drive, Temple City, CA 91780, (626)

4 California JPIA MINUTES MANAGERS COMMITTEE REGULAR MEETING June 12, :00 P.M. CALL TO ORDER ATTENDANCE Chairman McCormack called to order the regular meeting of the Managers Committee of the California Joint Powers Insurance Authority at 12:12 p.m. in the El Capitan Room at the California Joint Powers Insurance Authority. A quorum was established by those present. PRESENT: STAFF: Chairman Thaddeus McCormack, Santa Fe Springs Paolo Beltran, Lakewood Dave Carmany, La Puente Gabe Engeland, Sierra Madre Darrell George, Duarte Laurie Murray, La Palma Arabo Parseghian, La Canada Flintridge Jon Shull, Chief Executive Officer Habib Ali, Accounting Specialist Jennifer Fullerton, Administrative Assistant Maria Galvan, Risk Manager Tammie Haller, Administrative Programs Manager Lam Le, Financial Analyst Norm Lefmann, Assistant Executive Officer Jeff Rush, Workers Compensation Manager Carl Sandstrom, Business Projects Manager Alex Smith, Chief Financial Officer Jim Thyden, Insurance Programs Manager Paul Zeglovitch, Liability Program Manager 4

5 Managers Committee Minutes June 12, 2017 Page 2 of 4 ORAL COMMUNICATIONS There were no comments from the audience. CONSENT CALENDAR Chairman McCormack presented the items appearing on the Consent Calendar. The Consent Calendar included: Minutes for the meeting of April 10, 2017 It was moved by Carmany, that the Consent Calendar items be approved in one action, which was seconded by Murray, with no members present opposed. RECEIVE AND FILE Chief Executive Separation Payment Chairman McCormack presented the Chief Executive Separation Payment item. Jon Shull, Chief Executive Officer, provided a brief explanation of the Chief Executive Separation Payment as provided by the Memorandum of Coverage Primary Liability. There being no objection, Chairman McCormack received and filed the Chief Executive Separation Payment. CONSIDERATION Excess Workers Compensation Program Chairman McCormack presented the Excess Workers Compensation Program item. Lam Le, Financial Analyst, shared with Committee an overview of the proposed Excess Workers Compensation Program. He stated that members have the ability to select their own selfinsured retention (SIR) level and all claims would continue to be administered by York Risk Services, the Authority s third-party administrator, with the Primary Workers Compensation Program. Le provided an illustration of the differences in funding requirements of the Primary and Excess Workers Compensation Programs. It was moved by George, seconded by Carmany, with no opposition voiced, to recommend the Excess Workers Compensation Program. RECEIVE AND FILE Executive Academy Call for Topics Chairman McCormack presented the Executive Academy Call for Topics item. 5

6 Managers Committee Minutes June 12, 2017 Page 3 of 4 Jon Shull, Chief Executive Officer, requested that the Managers Committee members submit topics and preferred dates for the 2018 Executive Academy. There being no objection, Chairman McCormack received and filed the Executive Academy Call for Topics item. RECEIVE AND FILE Forum Capstone Award Chairman McCormack presented the Forum Capstone Award item. Abraham Han, Administrative Analyst, requested that the Managers Committee members consider nominating worthy colleagues from their respective agencies for the Forum Capstone Award. There being no objection, Chairman McCormack received and filed the Forum Capstone Award item. RECEIVE AND FILE Travel and Expense Reimbursement Policy Chairman McCormack presented the Travel and Expense Reimbursement Policy item. Jon Shull, Chief Executive Officer, reported the Executive Committee approved revisions to the Authority s Travel Expense Reimbursement Policy. The Policy now provides mileage (with no minimum distance requirement), food, and lodging reimbursement to eligible attendees at Managers Committee or Finance Officers Committee meetings upon submission of reimbursement forms. Other revisions include mileage reimbursement with no minimum distance requirement from the member agency headquarters to the Authority campus for all eligible attendees at Board of Directors and Executive Committee meetings without submission of reimbursement forms. There being no objection, Chairman McCormack received and filed the Travel and Expense Reimbursement Policy item. ADJOURNMENT Chairman McCormack adjourned the meeting at 1:06 p.m. to a meeting on July 10, 2017, at 12:00 p.m., in the El Capitan Room, at the California JPIA. 6

7 Managers Committee Minutes June 12, 2017 Page 4 of 4 Respectfully submitted, Thaddeus McCormack, Chairman 7

8 California JPIA MINUTES FINANCE OFFICERS COMMITTEE REGULAR MEETING June 8, :00 P.M. CALL TO ORDER ATTENDANCE Chairman Gomez called to order the regular meeting of the Finance Officers Committee of the California Joint Powers Insurance Authority at 12:21 p.m. in the El Capitan Room at the California Joint Powers Insurance Authority. A quorum was established by roll call. PRESENT: Chairman Jose Gomez, Santa Fe Springs Vikki Beatley, Seal Beach David Cain, Fountain Valley Mike Killebrew, Dana Point Teleconference Glynis Litvak, Lake Forest Marlaine Sanders, Paso Robles - Teleconference Sea Shelton, La Palma ATTENDEES: Sarah Meacham. PFM Asset Management - Teleconference Ken Scheible, PFM Asset Management - Teleconference STAFF: Jonathan Shull, Chief Executive Officer Grazyna Buchowiecki, Senior Accountant Jennifer Fullerton, Administrative Assistant Abraham Han, Administrative Analyst Lam Le, Financial Analyst Norm Lefmann, Assistant Executive Officer Carl Sandstrom, Business Projects Manager Alex Smith, Chief Financial Officer 8

9 Finance Officers Committee Minutes June 8, 2017 Page 2 of 4 ORAL COMMUNICATIONS Jonathan Shull, Chief Executive Officer, presented the Committee with the revised Travel and Expense Reimbursement Policy adopted by the Executive Committee at its meeting May 24, Shull shared the passing of Executive Committee Member David Spence. Shull reported that the Executive Committee appointed Mark Waronek, Mayor of the City of Lomita, to fill the vacant Executive Committee seat. CONSENT CALENDAR Chairman Gomez presented the items appearing on the Consent Calendar. The Consent Calendar included: Minutes for the meeting of January 12, 2017 Information Only Minutes for March 22, 2017 Information Only Minutes for April 13, 2017 Treasurer s Compliance Report for March and April 2017 Local Agency Investment Fund Quarterly Report as of March 31, 2017 Los Angeles County Pooled Investment Fund Report as of March 31, 2017 Quarterly Financial Statements It was moved by Beatley, that the Consent Calendar items be approved in one action, which was seconded by Litvak, with no members present opposed. RECEIVE AND FILE Investment Performance Review for the Quarter Ended March 31, 2017 Chairman Gomez presented the Investment Performance Review for the Quarter Ended March 31, 2017 item. Ken Schiebel, PFM Asset Management, reviewed the quarterly report as of March 21, The Authority s portfolio returned % while the benchmark returned +0.43%. Schiebel noted since 2007 the portfolio has outperformed the benchmark by 26 basis points. There being no objection, Chairman Gomez received and filed the Investment Performance Review for the Quarter Ended March 31, 2017 item. CONSIDERATION Investment Policy Revisions Chairman Gomez presented the Investment Policy Revisions item. 9

10 Finance Officers Committee Minutes June 8, 2017 Page 3 of 4 Alex Smith, Chief Financial Officer, stated that annually the investment policy is reviewed and updated. Sarah Meacham, PFM, presented the recommended revisions to the Policy. There being no objection, Chairman Gomez received and filed the proposed revisions to the Authority s Investment Policy and recommended adoption by the Executive Committee. CONSIDERATION Excess Workers Compensation Program Chairman Gomez presented the Excess Workers Compensation Program item. Lam Le, Financial Analyst, shared with Committee an overview of the proposed Excess Workers Compensation Program. He stated that members have the ability to select their own selfinsured retention (SIR) level and all claims would continue to be administered by York Risk Services, the Authority s third-party administrator, with the Primary Workers Compensation Program. Le provided an illustration of the differences in funding requirements of the Primary and Excess Workers Compensation Programs. There being no objection, Chairman Gomez received and filed the Excess Workers Compensation Program item and recommended adoption by the Executive Committee. RECEIVE AND FILE Forum Capstone Award Chairman Gomez presented the Forum Capstone Award item. Abraham Han, Administrative Analyst, requested that the Finance Officers Committee members consider nominating worthy colleagues from their respective agencies for the Forum Capstone Award. There being no objection, Chairman Gomez received and filed the Forum Capstone Award item. ADJOURNMENT The meeting adjourned at 1:35 p.m. to a meeting on Thursday, July 13, 2017, at 12:00 p.m., in the El Capitan Room at the California JPIA. Respectfully submitted, 10

11 Finance Officers Committee Minutes June 8, 2017 Page 4 of 4 Jose Gomez, Chairman 11

12 California JPIA INFORMATION ONLY MINUTES FINANCE OFFICERS COMMITTEE REGULAR MEETING September 7, :00 P.M. CALL TO ORDER ATTENDANCE Chairman Gomez called to order the regular meeting of the Finance Officers Committee of the California Joint Powers Insurance Authority at 12:16 p.m. in the El Capitan Room at the California Joint Powers Insurance Authority. A quorum was not established. PRESENT: ATTENDEES: STAFF: Chairman Jose Gomez, Santa Fe Springs Edianne Rodriguez, Lakewood Mike Killebrew, Dana Point Teleconference Sarah Meacham, PFM Asset Management Robert Babbe, PFM Asset Management Jon Shull, Chief Executive Officer Lyndsie Buskirk, Office Assistant Denise Covell, Administrative Assistant Alex Smith, Chief Financial Officer ORAL COMMUNICATIONS There were no comments from the audience. CONSENT CALENDAR Chairman Gomez presented the items appearing on the Consent Calendar. The Consent Calendar included: Minutes for the meeting of June 8, 2017 Treasurer s Compliance Report for May, June and July

13 Finance Officers Committee Minutes September 7, 2017 Page 2 of 3 Local Agency Investment Fund Quarterly Report as of June 30, 2017 Los Angeles County Pooled Investment Fund Report as of June 30, 2017 Annotated Agenda from 2017 Executive Committee Workshop RECEIVE AND FILE Investment Performance Review for the Quarter Ended June 30, 2017 Chairman Gomez presented the Investment Performance Review for the Quarter Ended June 30, 2017 item. Sarah Meacham and Richard Babbe, PFM Asset Management, presented a market update and reviewed the quarterly report as of June 30, There being no objection, Chairman Gomez received and filed the Investment Performance Review for the Quarter Ended June 30, 2017 item. ADJOURNMENT The meeting adjourned at 12:52 p.m. to a meeting on Thursday, October 5, 2017, at 12:00 p.m., in the El Capitan Room at the California JPIA. Respectfully submitted, Jose Gomez, Chairman 13

14 Finance Officers Committee Minutes September 7, 2017 Page 3 of 3 14

15 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEE Jonathan Shull, Chief Executive Officer Alexander Smith, Chief Financial Officer Date: November 13, 2017 Subject: Treasurer s Monthly Compliance Report Attached are the Treasurer s Monthly Compliance Reports for August, September and October Directly held investments, as of October 31, 2017 totaled $287.7 million. Cash held in LAIF was $4.0 million and the money market account balance was $297,039. Cash held in the Los Angeles County Pooled Investment Fund was $21.8 million. Altogether, cash and investments totaled $313.8 million at the end of the month. The annualized yield to maturity at cost earned by direct investments was 1.73%. Accrual basis earnings were $367,491. The quarter-to-date yield reported by LAIF was 1.14%, and the money market account yield was 0.9%. The Los Angeles County Pooled Investment Fund yielded 1.42%. Recommended Action Receive and file. 15

16 California JPIA Compliance Report - Month Ended August 31, 2017 Security Type Par Value Original Cost Amortized Cost Market Value Longest Maturity Maximum Allowable Maturity YTM at Cost U.S. Treasury $111,630, $112,232, $112,012, $112,406, Years 10 Years 1.70% Federal Agency $61,890, $62,000, $61,933, $61,709, Years 10 Years 1.58% Commercial Paper $14,050, $13,950, $13,974, $13,976, Days 270 Days 1.41% Certificates of Deposit $39,650, $39,645, $39,646, $39,728, Years 5 Years 1.88% Medium-Term Corporate Notes $46,534, $47,834, $47,393, $47,515, Years 5 Years 1.84% Asset-Backed Securities $3,175, $3,174, $3,174, $3,178, Years 5 Years 1.72% Total Securities $276,929, $278,837, $278,135, $278,514, % Accrued Interest $996, $996, Total Portfolio $276,929, $278,837, $279,131, $279,510, LAIF $3,959, $3,959, $3,959, $3,959, Day 1.07% Money Market Fund $238, $238, $238, $238, Day 0.86% LA County Pooled Investment Fund $29,275, $29,275, $29,275, $29,275, Day 1.37% Total Liquidity $33,473, $33,473, $33,473, $33,473, % Total Investments $310,402, $312,311, $312,605, $312,984, % 1. I hereby certify that all investments are in compliance with the investment policy adopted by the Executive Committee as of June 28, The California JPIA investment portfolio is managed by PFM Asset Management LLC. 3. PFM's market prices are derived from closing bid prices as of the last business day of the month as supplied by F.T. Interactive Data, Bloomberg or Telerate. Prices that fall between data points are interpolated. 4. In accordance with Generally Accepted Accounting Principles (GAAP), month-end holdings and information are reported on a trade date basis. Securities listed in bold type on the Security Transactions & Interest page have been traded, but have not yet settled. 5. All ratings are as of month end. 6. The Authority has the ability to meet its budgeted expenditures for the next six months. 7. Excludes $2,957, of funds deposited with the Authority by the Central Coast Cities for payments on worker's compensation tail claims. 8. The yield for LAIF is the quarter to date yield as of August 31, The yield for the LA County Pooled Investment Fund is the earnings rate for July The county reports earnings with a one month lag. 10. Compliance with the investment policy is measured at the time of purchase. Jose Gomez California JPIA Treasurer 16

17 California JPIA Compliance Report - Month Ended August 31, 2017 Security Type Market Value ($) % of Portfolio 1 Permitted by Policy (% or $) In Compliance U.S. Treasury $112,406, % 100% Yes Federal Agency $61,709, % 100% Yes Commercial Paper $13,976, % 25% Yes Certificates of Deposit $39,728, % 30% Yes Asset-Backed Securities $3,178, % 10% Yes Medium-Term Corporate Notes $47,515, % 30% Yes LAIF $3,959, % $65,000,000 Yes Money Market Fund $238, % 20% Yes LA County Pooled Investment Fund $29,275, % $30,000,000 Yes Subtotal Investments $311,988, % Accrued Interest $996, Total Investments $312,984, Portfolio Composition 1 LA County Pooled Investment Fund 9.4% U.S. Treasury 36.0% Money Market Fund 0.1% LAIF 1.3% Medium-Term Corporate Notes 15.2% Asset-Backed Securities 1.0% Certificates of Deposit 12.7% Federal Agency 19.8% Commercial Paper 4.5% 1. Percentages may not sum to 100% due to rounding. 17

18 California JPIA Compliance Report - Month Ended August 31, 2017 Maturity Distribution 1 August 31, 2017 Under 6 Months $47,450, Portfolio Duration Months $12,851, Modified Years $50,059, Effective Years $73,496, Years $50,004, Years $45,735, Years $33,387, Totals $312,984, % 0 Portfolio Maturity Distribution % % Percentage of Total Portfolio 20% 15% 10% 5% 15.2% 4.1% 16.0% 16.0% 14.6% #N/A 10.7% 0% Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-10 Years Notes: % of the portfolio is invested in currently callable securities. The callable securities are included in the maturity distribution to their stated maturity date, although they may be called prior to maturity. 2. Duration calculations exclude balances in LAIF and the money market fund. 3. Modified duration is the change in price of a security for a 1% change in the security's yield. 4. Effective duration is the change in price for a 1% change in yield, while also taking into account the likelihood of options such as calls and paydowns for mortgage-backed securities being exercised. 5. Percentages may not add up to 100% due to rounding. 18

19 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Summary - Managed Account Managed Account Summary Statement For the Month Ending August 31, 2017 Cash Transactions Summary - Managed Account Opening Market Value $262,051, Maturities/Calls Principal Dispositions Principal Acquisitions Unsettled Trades Change in Current Value (4,050,000.00) (13,211,074.66) 32,937, , Reconciling Transactions Closing Market Value $278,514, Maturities/Calls Sale Proceeds Coupon/Interest/Dividend Income Principal Payments Security Purchases Net Cash Contribution 4,050, ,384, , (38,060,148.17) 15,000, Earnings Reconciliation (Cash Basis) - Managed Account Cash Balance Interest/Dividends/Coupons Received Less Purchased Interest Related to Interest/Coupons Plus Net Realized Gains/Losses 660, (52,633.95) (3,465.66) Closing Cash Balance $238, Total Cash Basis Earnings $604, Earnings Reconciliation (Accrual Basis) Total Ending Amortized Value of Securities Ending Accrued Interest Plus Proceeds from Sales Plus Proceeds of Maturities/Calls/Principal Payments Plus Coupons/Dividends Received Less Cost of New Purchases Less Beginning Amortized Value of Securities Less Beginning Accrued Interest 278,135, , ,286, ,050, , (32,990,555.72) (262,467,555.41) (1,181,847.43) Total Accrual Basis Earnings $405,

20 Portfolio Summary and Statistics For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Account Summary Sector Allocation Description Par Value Market Value Percent U.S. Treasury Bond / Note 111,630, ,406, Federal Agency Bond / Note 61,890, ,709, Corporate Note 46,534, ,515, Commercial Paper 14,050, ,976, Certificate of Deposit 39,650, ,728, Asset-Backed Security / Collateralized Mortgage Obligation 3,175, ,178, Managed Account Sub-Total 276,929, ,514, % Accrued Interest 996, Total Portfolio 276,929, ,510, Unsettled Trades US TSY Bond / Note 40.36% ABS / CMO 1.14% Cert of Deposit 14.26% Commercial Paper 5.02% Corporate Note 17.06% Fed Agy Bond / Note 22.16% Maturity Distribution Characteristics 26.28% Yield to Maturity at Cost Yield to Maturity at Market 1.71% 1.62% 17.91% 17.90% 16.37% 11.93% Duration to Worst Weighted Average Days to Maturity % 4.59% 0-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years 20

21 Managed Account Issuer Summary For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Issuer Summary Credit Quality (S&P Ratings) Issuer AMERICAN EXPRESS CO AMERICAN HONDA FINANCE APPLE INC BANK OF MONTREAL BANK OF NOVA SCOTIA BERKSHIRE HATHAWAY INC BNP PARIBAS BURLINGTON NORTHERN SANTA FE CANADIAN IMPERIAL BANK OF COMMERCE CHEVRON CORPORATION CISCO SYSTEMS INC CREDIT AGRICOLE SA DEERE & COMPANY FANNIE MAE FEDERAL HOME LOAN BANKS FREDDIE MAC GENERAL ELECTRIC CO HONDA AUTO RECEIVABLES JOHN DEERE OWNER TRUST JP MORGAN CHASE & CO MICROSOFT CORP MITSUBISHI UFJ FINANCIAL GROUP INC NORDEA BANK AB ORACLE CORP ROYAL BANK OF CANADA SKANDINAVISKA ENSKILDA BANKEN AB SUMITOMO MITSUI FINANCIAL GROUP INC SVENSKA HANDELSBANKEN AB THE BANK OF NEW YORK MELLON CORPORATION TOYOTA MOTOR CORP UNILEVER PLC UNITED STATES TREASURY Market Value of Holdings Percent 2,940, ,313, ,322, ,719, ,091, ,949, ,979, ,398, ,759, ,637, ,342, ,027, , ,781, , ,083, ,167, ,451, , ,908, ,414, ,969, ,759, ,481, ,965, ,217, ,015, ,683, ,497, ,542, , ,406, NR 0.26% AAA 1.75% AA % AA % A 5.45% A+ 7.34% A- 2.82% A % AA 1.06% 21

22 Managed Account Issuer Summary For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Market Value Issuer WELLS FARGO & COMPANY WESTPAC BANKING CORP of Holdings Percent 4,675, ,516, Total $278,514, % 22

23 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 04/30/ % 04/30/ K58 4,465, AA+ Aaa 02/01/16 02/03/16 4,488, , ,479, ,463, DTD 05/17/ % 05/15/ ND8 2,500, AA+ Aaa 05/28/15 05/29/15 2,737, , ,631, ,639, DTD 05/31/ % 05/31/ VF4 2,570, AA+ Aaa 05/22/15 05/26/15 2,545, , ,556, ,568, DTD 05/31/ % 05/31/ VF4 8,900, AA+ Aaa 12/02/15 12/04/15 8,828, , ,855, ,894, DTD 06/30/ % 06/30/ XH8 4,950, AA+ Aaa 11/01/16 11/02/16 5,031, , ,013, ,977, DTD 09/30/ % 09/30/ VZ0 1,460, AA+ Aaa 02/10/15 02/11/15 1,488, , ,476, ,483, DTD 10/31/ % 10/31/ WC0 6,015, AA+ Aaa 01/06/16 01/11/16 6,033, , ,027, ,065, US TREASURY NOTE DTD 12/02/ % 11/30/ A42 2,500, AA+ Aaa 02/26/15 02/27/15 2,546, , ,526, ,540, DTD 01/31/ % 01/31/ N89 4,750, AA+ Aaa 05/26/16 05/27/16 4,753, , ,752, ,727, DTD 03/31/ % 03/31/ Q37 3,925, AA+ Aaa 03/15/17 03/17/17 3,813, , ,825, ,884, DTD 05/02/ % 04/30/ Q78 2,300, AA+ Aaa 06/27/16 06/29/16 2,342, , ,332, ,284, DTD 05/31/ % 05/31/ R77 1,600, AA+ Aaa 08/02/17 08/03/17 1,582, , ,583, ,588, US TREASURY N/B DTD 08/01/ % 07/31/ S76 3,100, AA+ Aaa 07/24/17 07/25/17 3,030, , ,031, ,045, DTD 08/15/ % 08/15/ RC6 700, AA+ Aaa 07/12/16 07/13/16 734, , ,

24 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 09/02/ % 08/31/ D72 1,220, AA+ Aaa 08/12/15 08/13/15 1,237, ,231, ,238, DTD 09/02/ % 08/31/ D72 4,650, AA+ Aaa 12/01/16 12/05/16 4,666, ,663, ,720, US TREASURY N/B DTD 09/30/ % 09/30/ T34 5,000, AA+ Aaa 08/03/17 08/04/17 4,884, , ,886, ,902, DTD 10/31/ % 10/31/ F96 4,250, AA+ Aaa 01/03/17 01/05/17 4,259, , ,258, ,312, DTD 10/31/ % 10/31/ F96 4,400, AA+ Aaa 04/03/17 04/05/17 4,427, , ,425, ,464, DTD 12/31/ % 12/31/ G87 4,635, AA+ Aaa 09/22/16 09/23/16 4,840, , ,804, ,725, US TREASURY N/B NOTES DTD 01/31/ % 01/31/ V72 5,865, AA+ Aaa 07/06/17 07/11/17 5,854, , ,854, ,917, DTD 03/02/ % 02/28/ J43 3,925, AA+ Aaa 03/15/17 03/17/17 3,852, ,859, ,938, US TREASURY N/B NOTES DTD 06/30/ % 06/30/ XG0 2,850, AA+ Aaa 08/30/17 08/31/17 2,902, , ,902, ,903, DTD 08/15/ % 08/15/ TJ9 1,450, AA+ Aaa 07/12/16 07/13/16 1,480, , ,475, ,444, DTD 08/15/ % 08/15/ TJ9 2,600, AA+ Aaa 11/05/15 11/09/15 2,543, , ,557, ,589, DTD 09/30/ % 09/30/ L57 750, AA+ Aaa 11/24/15 11/25/15 738, , , , DTD 11/15/ % 11/15/ TY6 1,100, AA+ Aaa 12/01/16 12/05/16 1,068, , ,071, ,093, DTD 12/31/ % 12/31/ N30 2,500, AA+ Aaa 02/01/16 02/03/16 2,573, , ,557, ,544,

25 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 02/15/ % 02/15/ UN8 2,000, AA+ Aaa 02/26/15 02/27/15 2,019, , ,013, ,022, DTD 05/15/ % 05/15/ VB3 1,240, AA+ Aaa 03/26/15 03/27/15 1,225, , ,229, ,235, DTD 05/15/ % 05/15/ VB3 1,250, AA+ Aaa 07/10/15 07/13/15 1,207, , ,218, ,245, DTD 08/15/ % 08/15/ VS6 1,100, AA+ Aaa 12/01/16 12/05/16 1,117, , ,115, ,141, DTD 08/15/ % 08/15/ VS6 1,110, AA+ Aaa 04/28/15 04/30/15 1,164, , ,149, ,151, DTD 08/15/ % 08/15/ VS6 1,215, AA+ Aaa 07/10/15 07/13/15 1,238, , ,232, ,260, DTD 11/15/ % 11/15/ WE6 1,350, AA+ Aaa 07/12/16 07/13/16 1,481, , ,462, ,420, DTD 08/15/ % 08/15/ D56 1,100, AA+ Aaa 12/01/16 12/05/16 1,101, , ,101, ,130, DTD 08/15/ % 08/15/ D56 1,335, AA+ Aaa 07/10/15 07/13/15 1,338, , ,338, ,372, US TREASURY N/B NOTES DTD 08/31/ % 08/31/ U3 2,000, AA+ Aaa 08/30/17 08/31/17 1,987, ,987, ,989, DTD 11/17/ % 11/15/ G38 925, AA+ Aaa 07/12/16 07/13/16 983, , , , DTD 08/17/ % 08/15/ K74 975, AA+ Aaa 07/12/16 07/13/16 1,016, ,011, , DTD 08/17/ % 08/15/ K74 1,100, AA+ Aaa 12/01/16 12/05/16 1,063, , ,066, ,097, Security Type Sub-Total 111,630, ,232, , ,012, ,406,

26 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FREDDIE MAC (EX-CALLABLE) NOTES DTD 01/30/ % 07/30/ G3JM3 1,000, AA+ Aaa 03/14/13 03/20/13 1,012, , ,000, ,006, FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ G0N33 1,775, AA+ Aaa 07/29/16 08/02/16 1,772, , ,773, ,757, FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 2,650, AA+ Aaa 07/24/17 07/25/17 2,646, , ,646, ,648, FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 5,000, AA+ Aaa 08/03/17 08/04/17 4,995, , ,995, ,996, FREDDIE MAC GLOBAL NOTES DTD 10/02/ % 10/02/ EADM8 1,700, AA+ Aaa 09/28/12 10/02/12 1,696, , ,698, ,692, FHLB NOTES DTD 11/17/ % 11/15/ AA3R7 845, AA+ Aaa 11/16/16 11/17/16 844, , , , FNMA BENCHMARK NOTE DTD 11/07/ % 11/26/ G0ZY2 3,750, AA+ Aaa 12/01/14 12/03/14 3,774, , ,761, ,777, FANNIE MAE (EX-CALLABLE) NOTES DTD 02/07/ % 02/07/ FTB73 1,000, AA+ Aaa 03/14/13 03/20/13 1,010, , ,000, ,010, FNMA NOTES DTD 02/28/ % 02/28/ G0T29 3,005, AA+ Aaa 02/24/17 02/28/17 3,003, ,003, ,008, FHLMC AGENCY NOTES DTD 04/20/ % 04/20/ EAEF2 4,750, AA+ Aaa 04/19/17 04/20/17 4,733, , ,735, ,739, FNMA NOTES DTD 08/01/ % 07/30/ G0T60 5,085, AA+ Aaa 07/28/17 08/01/17 5,069, , ,070, ,081, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 1,950, AA+ Aaa 07/07/16 07/08/16 2,019, , ,001, ,970, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 2,750, AA+ Aaa 02/01/16 02/03/16 2,804, , ,787, ,779, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 1,885, AA+ Aaa 08/17/16 08/19/16 1,878, ,879, ,856,

27 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FNMA NOTES DTD 08/19/ % 08/17/ G0N82 3,000, AA+ Aaa 09/01/16 09/02/16 2,981, , ,985, ,955, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 6,115, AA+ Aaa 08/17/16 08/19/16 6,090, , ,095, ,023, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 1,670, AA+ Aaa 06/27/17 06/29/17 1,680, , ,680, ,690, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 2,000, AA+ Aaa 06/20/17 06/21/17 2,013, , ,013, ,024, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,000, AA+ Aaa 02/02/15 02/04/15 1,057, , ,042, ,037, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,910, AA+ Aaa 06/27/17 06/29/17 1,973, , ,971, ,982, FNMA NOTES DTD 04/26/ % 04/24/ G0K36 3,050, AA+ Aaa 04/25/16 04/26/16 3,026, , ,029, ,024, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 2,000, AA+ Aaa 08/30/17 08/31/17 1,932, , ,932, ,934, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 4,000, AA+ Aaa 09/26/16 09/27/16 3,983, , ,985, ,868, Security Type Sub-Total 61,890, ,000, , ,933, ,709, Corporate Note BERKSHIRE HATHAWAY NOTES DTD 05/15/ % 05/15/ BW0 520, AA Aa2 05/08/13 05/15/13 519, , , , BANK OF NEW YORK MELLON CORP (CALLABLE) DTD 05/29/ % 05/22/ HDB2 4,495, A A1 05/22/15 05/29/15 4,494, , ,494, ,497, CHEVRON CORP GLOBAL NOTES DTD 06/24/ % 06/24/ AE0 2,895, AA- Aa2 06/17/13 06/24/13 2,895, , ,895, ,900,

28 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note BERKSHIRE HATHAWAY FIN GLOBAL NOTES DTD 08/15/ % 08/15/ BY6 900, AA Aa2 01/06/14 01/10/14 902, , , CHEVRON CORP NOTES DTD 03/03/ % 02/28/ BS8 735, AA- Aa2 02/28/17 03/03/17 735, , , CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/ % 03/01/ RAR3 2,460, AA- A1 03/23/15 03/26/15 2,511, , ,479, ,480, BERKSHIRE HATHAWAY INC NOTES DTD 03/15/ % 03/15/ CG4 410, AA Aa2 03/08/16 03/15/16 409, , , , GENERAL ELECTRIC CAPITAL CORP NOTES DTD 08/07/ % 08/07/ G4D3 2,004, AA- A1 04/10/15 04/15/15 2,356, , ,165, ,167, BERKSHIRE HATHAWAY INC CORPORATE NOTES DTD 08/15/ % 08/15/ CK5 1,120, AA Aa2 08/08/16 08/15/16 1,118, ,119, ,114, AMERICAN HONDA FINANCE GLOBAL NOTES DTD 09/09/ % 08/15/ WAH4 1,300, A+ A1 09/04/14 09/09/14 1,297, , ,299, ,313, BURLINGTON NRTH CORP DTD 09/24/ % 10/01/ TBC7 1,320, A A3 06/03/16 06/08/16 1,457, , ,407, ,398, TOYOTA MOTOR CORP NOTES DTD 10/18/ % 10/18/ TDH5 2,550, AA- Aa3 10/13/16 10/18/16 2,548, , ,549, ,542, CISCO SYSTEMS INC CORP NOTE DTD 11/17/ % 01/15/ RAH5 1,750, AA- A1 09/20/16 09/23/16 1,913, , ,867, ,862, MICROSOFT CORP DTD 02/06/ % 02/06/ BV5 2,400, AAA Aaa 01/30/17 02/06/17 2,398, , ,398, ,414, APPLE INC BONDS DTD 02/09/ % 02/07/ AX8 3,330, AA+ Aa1 02/23/15 02/26/15 3,286, , ,308, ,322, AMERICAN EXPRESS CREDIT CORP NOTES DTD 03/03/ % 03/03/ M0EE5 2,915, A- A2 02/28/17 03/03/17 2,911, , ,912, ,940, UNILEVER CAPITAL CORP BONDS DTD 05/05/ % 05/05/ AV9 340, A+ A1 05/02/17 05/05/17 338, , , ,

29 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note JOHN DEERE CAPITAL CORP NOTES DTD 06/22/ % 06/22/ ETS8 580, A A2 06/19/17 06/22/17 579, , , , WELLS FARGO & COMPANY NOTES DTD 07/22/ % 07/22/ BGM6 4,600, A A2 09/08/16 09/13/16 4,731, , ,699, ,675, JP MORGAN CHASE & CO NOTES DTD 07/22/ % 07/22/ HHS2 4,600, A- A3 09/08/16 09/13/16 5,016, , ,915, ,908, ORACLE CORP BONDS DTD 07/08/ % 07/08/ XBA2 5,310, AA- A1 02/01/17 02/03/17 5,409, , ,397, ,481, Security Type Sub-Total 46,534, ,834, , ,393, ,515, Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER DTD 06/20/ % 12/21/ BZM5 5,000, A-1 P-1 06/20/17 06/21/17 4,964, ,978, ,979, CREDIT AGRICOLE CIB NY COMM PAPER DTD 07/24/ % 01/25/ UAR4 4,050, A-1 P-1 07/25/17 07/25/17 4,021, ,027, ,027, BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ CB59 5,000, A-1 P-1 08/08/17 08/09/17 4,964, ,969, ,969, Security Type Sub-Total 14,050, ,950, ,974, ,976, Certificate of Deposit ROYAL BANK OF CANADA NY CD DTD 03/15/ % 03/09/ NZZ2 3,960, AA- Aa3 03/11/16 03/15/16 3,960, , ,960, ,965, CANADIAN IMPERIAL BANK NY CD DTD 12/05/ % 11/30/ A5Z7 3,750, A+ Aa3 12/01/16 12/05/16 3,747, , ,748, ,759, NORDEA BANK FINLAND NY CD DTD 12/05/ % 11/30/ LWA6 3,750, AA- Aa3 12/01/16 12/05/16 3,750, , ,750, ,759, SVENSKA HANDELSBANKEN NY LT CD DTD 01/12/ % 01/10/ JHB8 4,700, AA- Aa2 01/10/17 01/12/17 4,700, , ,700, ,683,

30 Managed Account Detail of Securities Held For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/ % 02/07/ KRC3 4,700, A+ A1 02/08/17 02/09/17 4,700, , ,700, ,719, BANK OF NOVA SCOTIA HOUSTON LT CD DTD 04/06/ % 04/05/ GUE6 5,100, A+ A1 04/05/17 04/06/17 5,100, , ,100, ,091, SUMITOMO MITSUI BANK NY CD DTD 05/04/ % 05/03/ YVN0 4,000, A A1 05/03/17 05/04/17 4,000, , ,000, ,015, SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/ % 08/02/ FXT3 5,200, A+ Aa3 08/03/17 08/04/17 5,197, , ,198, ,217, WESTPAC BANKING CORP NY CD DTD 08/07/ % 08/03/ T4A3 4,490, AA- Aa3 08/03/17 08/07/17 4,490, , ,490, ,516, Security Type Sub-Total 39,650, ,645, , ,646, ,728, Asset-Backed Security / Collateralized Mortgage Obligation HONDA ABS A3 DTD 06/27/ % 08/15/ BAC8 2,450, AAA Aaa 06/20/17 06/27/17 2,449, , ,449, ,451, JOHN DEERE ABS 2017-B A3 DTD 07/15/ % 10/15/ BAD6 725, NR Aaa 07/11/17 07/18/17 724, , , Security Type Sub-Total 3,175, ,174, , ,174, ,178, Managed Account Sub-Total 276,929, ,837, , ,135, ,514, Securities Sub-Total Accrued Interest Total Investments $276,929, $278,837, % $996, $278,135, $278,514, $996, $279,510,

31 Managed Account Security Transactions & Interest For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds BUY Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 07/28/17 08/02/17 08/03/17 08/03/17 08/03/17 08/03/17 08/08/17 08/30/17 08/30/17 08/30/17 08/01/17 FNMA NOTES DTD 08/01/ % 07/30/ /03/17 DTD 05/31/ % 05/31/ /04/17 US TREASURY N/B DTD 09/30/ % 09/30/ /04/17 SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/ % 08/02/ /04/17 FREDDIE MAC NOTES DTD 07/19/ % 08/15/ /07/17 WESTPAC BANKING CORP NY CD DTD 08/07/ % 08/03/ /09/17 BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ /31/17 US TREASURY N/B NOTES DTD 08/31/ % 08/31/ /31/17 US TREASURY N/B NOTES DTD 06/30/ % 06/30/ /31/17 FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0T60 5,085, (5,069,592.45) 0.00 (5,069,592.45) R77 1,600, (1,582,687.50) (3,846.99) (1,586,534.49) T34 5,000, (4,884,375.00) (19,364.75) (4,903,739.75) 83050FXT3 5,200, (5,197,972.00) 0.00 (5,197,972.00) 3137EAEH8 5,000, (4,995,450.00) (2,864.58) (4,998,314.58) 96121T4A3 4,490, (4,490,000.00) 0.00 (4,490,000.00) 06538CB59 5,000, (4,964,750.00) 0.00 (4,964,750.00) U3 2,000, (1,987,734.38) 0.00 (1,987,734.38) XG0 2,850, (2,902,212.89) (10,203.46) (2,912,416.35) 3135G0Q22 2,000, (1,932,740.00) (16,354.17) (1,949,094.17) Transaction Type Sub-Total 38,225, (38,007,514.22) (52,633.95) (38,060,148.17) INTEREST 08/01/17 08/02/17 08/06/17 08/07/17 08/07/17 08/01/17 MONEY MARKET FUND MONEY /02/17 FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ /06/17 MICROSOFT CORP DTD 02/06/ % 02/06/ /07/17 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/ % 02/07/ /07/17 FANNIE MAE (EX-CALLABLE) NOTES DTD 02/07/ % 02/07/ G0N33 1,775, , , BV5 2,400, , , KRC3 4,700, , , FTB73 1,000, , ,

32 Managed Account Security Transactions & Interest For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds INTEREST Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 08/07/17 08/09/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/15/17 08/07/17 GENERAL ELECTRIC CAPITAL CORP NOTES DTD 08/07/ % 08/07/ /09/17 APPLE INC BONDS DTD 02/09/ % 02/07/ /15/17 BERKSHIRE HATHAWAY FIN GLOBAL NOTES DTD 08/15/ % 08/15/ /15/17 BERKSHIRE HATHAWAY INC CORPORATE NOTES DTD 08/15/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 08/17/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 HONDA ABS A3 DTD 06/27/ % 08/15/ /15/17 DTD 08/17/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /15/17 DTD 02/15/ % 02/15/ G4D3 2,004, , , AX8 3,330, , , BY6 900, , , CK5 1,120, , , RC6 700, , , TJ9 1,450, , , K74 1,100, , , TJ9 2,600, , , VS6 1,110, , , VS6 1,100, , , BAC8 2,450, , , K74 975, , , VS6 1,215, , , D56 1,335, , , UN8 2,000, , ,

33 Managed Account Security Transactions & Interest For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds INTEREST Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 08/15/17 08/15/17 08/17/17 08/17/17 08/17/17 08/17/17 08/28/17 08/28/17 08/31/17 08/31/17 08/31/17 08/15/17 AMERICAN HONDA FINANCE GLOBAL NOTES DTD 09/09/ % 08/15/ /15/17 DTD 08/15/ % 08/15/ /17/17 FNMA NOTES DTD 08/19/ % 08/17/ /17/17 FNMA NOTES DTD 08/19/ % 08/17/ /17/17 FNMA NOTES DTD 08/19/ % 08/17/ /17/17 HSBC BANK USA NA FLOATING CERT DEPOS DTD 11/18/ % 11/17/ /28/17 CHEVRON CORP NOTES DTD 03/03/ % 02/28/ /28/17 FNMA NOTES DTD 02/28/ % 02/28/ /31/17 DTD 09/02/ % 08/31/ /31/17 DTD 09/02/ % 08/31/ /31/17 DTD 03/02/ % 02/28/ WAH4 1,300, , , D56 1,100, , , G0N82 1,885, , , G0N82 3,000, , , G0N82 6,115, , , AR41 6,600, , , BS8 735, , , G0T29 3,005, , , D72 4,650, , , D72 1,220, , , J43 3,925, , , Transaction Type Sub-Total 66,799, , , MATURITY 08/08/17 08/08/17 BANK TOKYO MITSUBISHI UFJ LTD COMM PAPER DTD 02/09/ % 08/08/ BV83 4,050, ,050, ,050, , Transaction Type Sub-Total 4,050, ,050, ,050, , SELL 33

34 Managed Account Security Transactions & Interest For the Month Ending August 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds SELL Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 07/28/17 07/28/17 08/02/17 08/03/17 08/30/17 08/01/17 DTD 06/30/ % 06/30/ /01/17 DTD 07/01/ % 06/30/ /03/17 SKANDINAVISKA ENSKILDA BANKEN NY CD DTD 11/17/ % 11/16/ /04/17 SKANDINAVISKA ENSKILDA BANKEN NY CD DTD 11/17/ % 11/16/ /31/17 HSBC BANK USA NA FLOATING CERT DEPOS DTD 11/18/ % 11/17/ XH8 1,340, ,344, , ,346, (17,535.16) (13,084.48) FIFO VJ6 3,705, ,745, , ,751, (23,735.16) 1, FIFO 83050FBG5 1,275, ,275, , ,289, FIFO 83050FBG5 5,325, ,327, , ,384, , , FIFO 40428AR41 6,600, ,607, , ,612, , , FIFO Transaction Type Sub-Total 18,245, ,301, , ,384, (30,195.66) (805.95) Managed Account Sub-Total (15,656,112.81) 608, (15,047,830.92) (3,465.66) (805.95) Total Security Transactions ($15,656,112.81) $608, ($15,047,830.92) ($3,465.66) ($805.95) 34

35 California JPIA Compliance Report - Month Ended September 30, 2017 Security Type Par Value Original Cost Amortized Cost Market Value Longest Maturity Maximum Allowable Maturity YTM at Cost U.S. Treasury $106,025, $106,612, $106,402, $105,957, Years 10 Years 1.69% Federal Agency $64,390, $64,478, $64,411, $63,756, Years 10 Years 1.60% Supranational $6,000, $6,026, $6,025, $5,971, Years 5 Years 1.69% Commercial Paper $16,550, $16,438, $16,479, $16,481, Days 270 Days 1.41% Certificates of Deposit $42,515, $42,510, $42,511, $42,560, Years 5 Years 1.89% Medium-Term Corporate Notes $48,214, $49,581, $49,109, $49,027, Years 5 Years 1.87% Asset-Backed Securities $3,175, $3,174, $3,174, $3,169, Years 5 Years 1.72% Total Securities $286,869, $288,821, $288,115, $286,924, % Accrued Interest $1,141, $1,141, Total Portfolio $286,869, $288,821, $289,256, $288,065, LAIF $3,959, $3,959, $3,959, $3,959, Day 1.08% Money Market Fund $19, $19, $19, $19, Day 0.86% LA County Pooled Investment Fund $29,283, $29,283, $29,283, $29,283, Day 1.39% Total Liquidity $33,262, $33,262, $33,262, $33,262, % Total Investments $320,131, $322,084, $322,519, $321,328, % 1. I hereby certify that all investments are in compliance with the investment policy adopted by the Executive Committee as of June 28, The California JPIA investment portfolio is managed by PFM Asset Management LLC. 3. PFM's market prices are derived from closing bid prices as of the last business day of the month as supplied by F.T. Interactive Data, Bloomberg or Telerate. Prices that fall between data points are interpolated. 4. In accordance with Generally Accepted Accounting Principles (GAAP), month-end holdings and information are reported on a trade date basis. Securities listed in bold type on the Security Transactions & Interest page have been traded, but have not yet settled. 5. All ratings are as of month end. 6. The Authority has the ability to meet its budgeted expenditures for the next six months. 7. Excludes $2,957, of funds deposited with the Authority by the Central Coast Cities for payments on worker's compensation tail claims. 8. The yield for LAIF is the quarter to date yield as of September 30, The yield for the LA County Pooled Investment Fund is the earnings rate for August The county reports earnings with a one month lag. 10. Compliance with the investment policy is measured at the time of purchase. Jose Gomez California JPIA Treasurer Page 1 35

36 California JPIA Compliance Report - Month Ended September 30, 2017 Security Type Market Value ($) % of Portfolio 1 Permitted by Policy (% or $) In Compliance U.S. Treasury $105,957, % 100% Yes Federal Agency $63,756, % 100% Yes Supranational $5,971, % 7.5% Yes Commercial Paper $16,481, % 25% Yes Certificates of Deposit $42,560, % 30% Yes Medium-Term Corporate Notes $49,027, % 30% Yes Asset-Backed Securities $3,169, % 10% Yes LAIF $3,959, % $65,000,000 Yes Money Market Fund $19, % 20% Yes LA County Pooled Investment Fund $29,283, % $30,000,000 Yes Subtotal Investments $320,186, % Accrued Interest $1,141, Total Investments $321,328, LA County Pooled Investment Fund 9.1% Money Market Fund 0.0% Portfolio Composition 1 U.S. Treasury 33.1% LAIF 1.2% Asset-Backed Securities 1.0% Medium-Term Corporate Notes 15.3% Certificates of Deposit 13.3% Federal Agency 19.9% Supranational 1.9% Commercial Paper 5.1% 1. Percentages may not sum to 100% due to rounding. Page 2 36

37 California JPIA Compliance Report - Month Ended September 30, 2017 Maturity Distribution 1 September 30, 2017 Under 6 Months $55,535, Portfolio Duration Months $4,339, Modified Years $50,680, Effective Years $79,663, Years $56,988, Years $41,227, Years $32,894, Totals $321,328, Percentage of Total Portfolio 30% 25% 20% 15% 10% 5% 17.3% 0 1.4% Portfolio Maturity % Distribution % 17.7% 15.8% 12.8% #N/A 10.2% 0% Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-10 Years Notes: % of the portfolio is invested in currently callable securities. The callable securities are included in the maturity distribution to their stated maturity date, although they may be called prior to maturity. 2. Duration calculations exclude balances in LAIF and the money market fund. 3. Modified duration is the change in price of a security for a 1% change in the security's yield. 4. Effective duration is the change in price for a 1% change in yield, while also taking into account the likelihood of options such as calls and paydowns for mortgage-backed securities being exercised. 5. Percentages may not add up to 100% due to rounding. Page 3 37

38 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Summary - Managed Account Managed Account Summary Statement For the Month Ending September 30, 2017 Cash Transactions Summary - Managed Account Opening Market Value $278,514, Maturities/Calls Principal Dispositions Principal Acquisitions Unsettled Trades Change in Current Value 0.00 (17,875,888.00) 27,820, (1,535,087.36) Reconciling Transactions Closing Market Value $286,924, Maturities/Calls Sale Proceeds Coupon/Interest/Dividend Income Principal Payments Security Purchases Net Cash Contribution ,960, , (27,900,517.98) 9,499, Earnings Reconciliation (Cash Basis) - Managed Account Cash Balance Interest/Dividends/Coupons Received Less Purchased Interest Related to Interest/Coupons Plus Net Realized Gains/Losses 357, (80,024.45) 39, Closing Cash Balance $71, Total Cash Basis Earnings $317, Earnings Reconciliation (Accrual Basis) Total Ending Amortized Value of Securities Ending Accrued Interest Plus Proceeds from Sales Plus Proceeds of Maturities/Calls/Principal Payments Plus Coupons/Dividends Received Less Cost of New Purchases Less Beginning Amortized Value of Securities Less Beginning Accrued Interest 288,115, ,141, ,960, , (27,900,517.98) (278,135,464.21) (996,082.47) Total Accrual Basis Earnings $457,

39 Portfolio Summary and Statistics For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Account Summary Sector Allocation Description Par Value Market Value Percent U.S. Treasury Bond / Note 106,025, ,957, Supra-National Agency Bond / Note 6,000, ,971, Federal Agency Bond / Note 64,390, ,756, Corporate Note 48,214, ,027, Commercial Paper 16,550, ,481, Certificate of Deposit 42,515, ,560, Asset-Backed Security / Collateralized Mortgage Obligation 3,175, ,169, Managed Account Sub-Total 286,869, ,924, % Accrued Interest 1,141, Total Portfolio 286,869, ,065, Unsettled Trades US TSY Bond / Note 36.94% Supra-National Agency Bond / Note 2.08% ABS / CMO 1.10% Cert of Deposit 14.83% Commercial Paper 5.74% Corporate Note 17.09% Fed Agy Bond / Note 22.22% Maturity Distribution Characteristics 27.63% Yield to Maturity at Cost 1.71% 17.58% 19.79% Yield to Maturity at Market Duration to Worst 1.76% % Weighted Average Days to Maturity % 7.76% 1.51% 0-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years 39

40 Managed Account Issuer Summary For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Issuer Summary Credit Quality (S&P Ratings) Issuer AMERICAN EXPRESS CO AMERICAN HONDA FINANCE APPLE INC BANK OF MONTREAL BANK OF NOVA SCOTIA BERKSHIRE HATHAWAY INC BNP PARIBAS BURLINGTON NORTHERN SANTA FE CANADIAN IMPERIAL BANK OF COMMERCE CHEVRON CORPORATION CISCO SYSTEMS INC CREDIT AGRICOLE SA DEERE & COMPANY FANNIE MAE FEDERAL HOME LOAN BANKS FREDDIE MAC GENERAL ELECTRIC CO HONDA AUTO RECEIVABLES ING GROUP NV INTL BANK OF RECONSTRUCTION AND DEV JOHN DEERE OWNER TRUST JP MORGAN CHASE & CO MICROSOFT CORP MITSUBISHI UFJ FINANCIAL GROUP INC NORDEA BANK AB ORACLE CORP ROYAL BANK OF CANADA SKANDINAVISKA ENSKILDA BANKEN AB SUMITOMO MITSUI FINANCIAL GROUP INC SVENSKA HANDELSBANKEN AB THE BANK OF NEW YORK MELLON CORPORATION TOYOTA MOTOR CORP Market Value of Holdings Percent 2,930, ,550, ,313, ,719, ,093, ,946, ,985, ,394, ,759, ,632, ,331, ,032, , ,483, ,918, ,354, ,158, ,445, ,478, ,971, , ,885, ,409, ,849, ,759, ,430, ,965, ,195, ,007, ,684, ,923, ,536, NR 2.33% AAA 1.69% AA % AA % A 5.43% A+ 8.55% A- 2.72% A % A % AA 1.03% 40

41 Managed Account Issuer Summary For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Market Value Issuer UNILEVER PLC UNITED STATES TREASURY WELLS FARGO & COMPANY WESTPAC BANKING CORP of Holdings Percent 339, ,957, ,664, ,511, Total $286,924, % 41

42 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 12/31/ % 12/31/ UE8 1,820, AA+ Aaa 09/06/17 09/07/17 1,817, , ,818, ,818, DTD 04/30/ % 04/30/ K58 4,465, AA+ Aaa 02/01/16 02/03/16 4,488, , ,479, ,442, DTD 05/17/ % 05/15/ ND8 2,500, AA+ Aaa 05/28/15 05/29/15 2,737, , ,627, ,624, DTD 05/31/ % 05/31/ VF4 2,570, AA+ Aaa 05/22/15 05/26/15 2,545, , ,556, ,556, DTD 05/31/ % 05/31/ VF4 8,900, AA+ Aaa 12/02/15 12/04/15 8,828, , ,857, ,852, DTD 06/30/ % 06/30/ XH8 4,950, AA+ Aaa 11/01/16 11/02/16 5,031, , ,011, ,954, DTD 10/31/ % 10/31/ WC0 1,350, AA+ Aaa 01/06/16 01/11/16 1,354, , ,352, ,354, DTD 12/02/ % 11/30/ A42 2,500, AA+ Aaa 02/26/15 02/27/15 2,546, , ,526, ,525, DTD 01/31/ % 01/31/ N89 4,750, AA+ Aaa 05/26/16 05/27/16 4,753, , ,752, ,699, DTD 03/31/ % 03/31/ Q37 3,925, AA+ Aaa 03/15/17 03/17/17 3,813, ,827, ,861, DTD 05/02/ % 04/30/ Q78 2,300, AA+ Aaa 06/27/16 06/29/16 2,342, , ,331, ,270, DTD 05/31/ % 05/31/ R77 1,600, AA+ Aaa 08/02/17 08/03/17 1,582, , ,583, ,578, DTD 08/01/ % 07/31/ S76 3,100, AA+ Aaa 07/24/17 07/25/17 3,030, , ,033, ,024, DTD 08/15/ % 08/15/ RC6 700, AA+ Aaa 07/12/16 07/13/16 734, , , ,

43 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 09/02/ % 08/31/ D72 1,220, AA+ Aaa 08/12/15 08/13/15 1,237, , ,231, ,229, DTD 09/02/ % 08/31/ D72 4,650, AA+ Aaa 12/01/16 12/05/16 4,666, , ,663, ,687, US TREASURY N/B DTD 09/30/ % 09/30/ T34 3,700, AA+ Aaa 08/03/17 08/04/17 3,614, ,617, ,602, DTD 10/31/ % 10/31/ F96 4,250, AA+ Aaa 01/03/17 01/05/17 4,259, , ,258, ,280, DTD 10/31/ % 10/31/ F96 4,400, AA+ Aaa 04/03/17 04/05/17 4,427, , ,424, ,431, DTD 12/31/ % 12/31/ G87 4,635, AA+ Aaa 09/22/16 09/23/16 4,840, , ,801, ,687, DTD 01/31/ % 01/31/ V72 5,865, AA+ Aaa 07/06/17 07/11/17 5,854, , ,854, ,867, DTD 03/02/ % 02/28/ J43 3,925, AA+ Aaa 03/15/17 03/17/17 3,852, , ,860, ,905, US TREASURY N/B NOTES DTD 06/30/ % 06/30/ XG0 2,850, AA+ Aaa 08/30/17 08/31/17 2,902, , ,901, ,877, DTD 08/15/ % 08/15/ TJ9 1,450, AA+ Aaa 07/12/16 07/13/16 1,480, , ,474, ,431, DTD 08/15/ % 08/15/ TJ9 2,600, AA+ Aaa 11/05/15 11/09/15 2,543, , ,558, ,566, DTD 09/30/ % 09/30/ L57 750, AA+ Aaa 11/24/15 11/25/15 738, , , DTD 11/15/ % 11/15/ TY6 1,100, AA+ Aaa 12/01/16 12/05/16 1,068, , ,072, ,082, DTD 12/31/ % 12/31/ N30 2,500, AA+ Aaa 02/01/16 02/03/16 2,573, , ,556, ,518,

44 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 02/15/ % 02/15/ UN8 2,000, AA+ Aaa 02/26/15 02/27/15 2,019, , ,013, ,001, DTD 05/15/ % 05/15/ VB3 1,240, AA+ Aaa 03/26/15 03/27/15 1,225, , ,229, ,221, DTD 05/15/ % 05/15/ VB3 1,250, AA+ Aaa 07/10/15 07/13/15 1,207, , ,218, ,231, DTD 08/15/ % 08/15/ VS6 1,100, AA+ Aaa 12/01/16 12/05/16 1,117, , ,115, ,128, DTD 08/15/ % 08/15/ VS6 1,110, AA+ Aaa 04/28/15 04/30/15 1,164, , ,149, ,138, DTD 08/15/ % 08/15/ VS6 1,215, AA+ Aaa 07/10/15 07/13/15 1,238, , ,232, ,246, DTD 11/15/ % 11/15/ WE6 1,350, AA+ Aaa 07/12/16 07/13/16 1,481, , ,460, ,403, DTD 08/15/ % 08/15/ D56 1,100, AA+ Aaa 12/01/16 12/05/16 1,101, , ,101, ,115, DTD 08/15/ % 08/15/ D56 1,335, AA+ Aaa 07/10/15 07/13/15 1,338, , ,338, ,353, US TREASURY N/B NOTES DTD 08/31/ % 08/31/ U3 2,000, AA+ Aaa 08/30/17 08/31/17 1,987, , ,987, ,964, DTD 11/17/ % 11/15/ G38 925, AA+ Aaa 07/12/16 07/13/16 983, , , , DTD 08/17/ % 08/15/ K74 975, AA+ Aaa 07/12/16 07/13/16 1,016, , ,011, , DTD 08/17/ % 08/15/ K74 1,100, AA+ Aaa 12/01/16 12/05/16 1,063, , ,066, ,081, Security Type Sub-Total 106,025, ,612, , ,402, ,957,

45 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Supra-National Agency Bond / Note INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/ % 09/12/ UP32 3,000, NR Aaa 09/12/17 09/19/17 2,992, , ,992, ,974, INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 01/26/ % 01/26/ FY4 3,000, NR Aaa 09/06/17 09/08/17 3,033, , ,033, ,997, Security Type Sub-Total 6,000, ,026, , ,025, ,971, Federal Agency Bond / Note FREDDIE MAC (EX-CALLABLE) NOTES DTD 01/30/ % 07/30/ G3JM3 1,000, AA+ Aaa 03/14/13 03/20/13 1,012, , ,003, ,007, FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ G0N33 850, AA+ Aaa 07/29/16 08/02/16 848, , , , FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 2,650, AA+ Aaa 07/24/17 07/25/17 2,646, , ,646, ,642, FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 5,000, AA+ Aaa 08/03/17 08/04/17 4,995, , ,995, ,984, FHLB NOTES DTD 11/17/ % 11/15/ AA3R7 845, AA+ Aaa 11/16/16 11/17/16 844, , , , FNMA BENCHMARK NOTE DTD 11/07/ % 11/26/ G0ZY2 3,750, AA+ Aaa 12/01/14 12/03/14 3,774, , ,760, ,764, FANNIE MAE (EX-CALLABLE) NOTES DTD 02/07/ % 02/07/ FTB73 1,000, AA+ Aaa 03/14/13 03/20/13 1,010, , ,000, ,006, FNMA NOTES DTD 02/28/ % 02/28/ G0T29 3,005, AA+ Aaa 02/24/17 02/28/17 3,003, , ,003, ,997, FHLMC AGENCY NOTES DTD 04/20/ % 04/20/ EAEF2 4,750, AA+ Aaa 04/19/17 04/20/17 4,733, , ,736, ,719, FNMA NOTES DTD 08/01/ % 07/30/ G0T60 5,085, AA+ Aaa 07/28/17 08/01/17 5,069, , ,070, ,057,

46 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FHLB NOTES DTD 09/08/ % 09/28/ ACE26 2,000, AA+ Aaa 09/28/17 09/29/17 1,982, ,982, ,980, FHLB NOTES DTD 09/08/ % 09/28/ ACE26 3,125, AA+ Aaa 09/07/17 09/08/17 3,114, ,115, ,095, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 1,950, AA+ Aaa 07/07/16 07/08/16 2,019, , ,000, ,960, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 2,750, AA+ Aaa 02/01/16 02/03/16 2,804, , ,786, ,764, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 1,885, AA+ Aaa 08/17/16 08/19/16 1,878, , ,879, ,844, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 3,000, AA+ Aaa 09/01/16 09/02/16 2,981, , ,985, ,935, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 6,115, AA+ Aaa 08/17/16 08/19/16 6,090, , ,095, ,983, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 1,670, AA+ Aaa 06/27/17 06/29/17 1,680, , ,680, ,674, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 2,000, AA+ Aaa 06/20/17 06/21/17 2,013, , ,012, ,005, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,000, AA+ Aaa 02/02/15 02/04/15 1,057, , ,042, ,022, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,910, AA+ Aaa 06/27/17 06/29/17 1,973, , ,970, ,953, FNMA NOTES DTD 04/26/ % 04/24/ G0K36 3,050, AA+ Aaa 04/25/16 04/26/16 3,026, , ,029, ,977, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 2,000, AA+ Aaa 08/30/17 08/31/17 1,932, ,933, ,898, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 4,000, AA+ Aaa 09/26/16 09/27/16 3,983, , ,985, ,797,

47 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Security Type Sub-Total Corporate Note 64,390, ,478, , ,411, ,756, BERKSHIRE HATHAWAY NOTES DTD 05/15/ % 05/15/ BW0 520, AA Aa2 05/08/13 05/15/13 519, , , , CHEVRON CORP GLOBAL NOTES DTD 06/24/ % 06/24/ AE0 2,895, AA- Aa2 06/17/13 06/24/13 2,895, , ,895, ,897, BERKSHIRE HATHAWAY FIN GLOBAL NOTES DTD 08/15/ % 08/15/ BY6 900, AA Aa2 01/06/14 01/10/14 902, , , , CHEVRON CORP NOTES DTD 03/03/ % 02/28/ BS8 735, AA- Aa2 02/28/17 03/03/17 735, , , , CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/ % 03/01/ RAR3 2,460, AA- A1 03/23/15 03/26/15 2,511, , ,478, ,478, BERKSHIRE HATHAWAY INC NOTES DTD 03/15/ % 03/15/ CG4 410, AA Aa2 03/08/16 03/15/16 409, , , GENERAL ELECTRIC CAPITAL CORP NOTES DTD 08/07/ % 08/07/ G4D3 2,004, AA- A1 04/10/15 04/15/15 2,356, , ,158, ,158, BERKSHIRE HATHAWAY INC CORPORATE NOTES DTD 08/15/ % 08/15/ CK5 1,120, AA Aa2 08/08/16 08/15/16 1,118, , ,119, ,111, BURLINGTON NRTH CORP DTD 09/24/ % 10/01/ TBC7 1,320, A A3 06/03/16 06/08/16 1,457, , ,403, ,394, TOYOTA MOTOR CORP NOTES DTD 10/18/ % 10/18/ TDH5 2,550, AA- Aa3 10/13/16 10/18/16 2,548, , ,549, ,536, CISCO SYSTEMS INC CORP NOTE DTD 11/17/ % 01/15/ RAH5 1,750, AA- A1 09/20/16 09/23/16 1,913, , ,863, ,853, MICROSOFT CORP DTD 02/06/ % 02/06/ BV5 2,400, AAA Aaa 01/30/17 02/06/17 2,398, , ,398, ,409, APPLE INC BONDS DTD 02/09/ % 02/07/ AX8 3,330, AA+ Aa1 02/23/15 02/26/15 3,286, , ,309, ,313,

48 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note AMERICAN EXPRESS CREDIT CORP NOTES DTD 03/03/ % 03/03/ M0EE5 2,915, A- A2 02/28/17 03/03/17 2,911, , ,912, ,930, UNILEVER CAPITAL CORP BONDS DTD 05/05/ % 05/05/ AV9 340, A+ A1 05/02/17 05/05/17 338, , , , JOHN DEERE CAPITAL CORP NOTES DTD 06/22/ % 06/22/ ETS8 580, A A2 06/19/17 06/22/17 579, , , , WELLS FARGO & COMPANY NOTES DTD 07/22/ % 07/22/ BGM6 4,600, A A2 09/08/16 09/13/16 4,731, , ,696, ,664, JP MORGAN CHASE & CO NOTES DTD 07/22/ % 07/22/ HHS2 4,600, A- A3 09/08/16 09/13/16 5,016, , ,906, ,885, BANK OF NEW YORK MELLON CORP DTD 02/19/ % 04/15/ FAA1 4,875, A A1 09/06/17 09/08/17 4,965, , ,963, ,923, ORACLE CORP BONDS DTD 07/08/ % 07/08/ XBA2 5,310, AA- A1 02/01/17 02/03/17 5,409, , ,395, ,430, AMERICAN HONDA FINANCE CORP NOTES DTD 09/09/ % 09/09/ WBG5 2,600, A+ A1 09/06/17 09/08/17 2,574, , ,574, ,550, Security Type Sub-Total 48,214, ,581, , ,109, ,027, Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER DTD 06/20/ % 12/21/ BZM5 5,000, A-1 P-1 06/20/17 06/21/17 4,964, ,984, ,985, CREDIT AGRICOLE CIB NY COMM PAPER DTD 07/24/ % 01/25/ UAR4 4,050, A-1 P-1 07/25/17 07/25/17 4,021, ,031, ,032, BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ CB59 3,000, A-1 P-1 08/08/17 08/09/17 2,978, ,985, ,985, ING (US) FUNDING LLC COMM PAPER DTD 08/07/ % 02/05/ W1B54 4,500, A-1 P-1 09/06/17 09/07/17 4,473, ,478, ,478, Security Type Sub-Total 16,550, ,438, ,479, ,481,

49 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit ROYAL BANK OF CANADA NY CD DTD 03/15/ % 03/09/ NZZ2 3,960, A-1+ P-1 03/11/16 03/15/16 3,960, , ,960, ,965, CANADIAN IMPERIAL BANK NY CD DTD 12/05/ % 11/30/ A5Z7 3,750, A+ A1 12/01/16 12/05/16 3,747, , ,748, ,759, NORDEA BANK FINLAND NY CD DTD 12/05/ % 11/30/ LWA6 3,750, AA- Aa3 12/01/16 12/05/16 3,750, , ,750, ,759, SVENSKA HANDELSBANKEN NY LT CD DTD 01/12/ % 01/10/ JHB8 4,700, AA- Aa2 01/10/17 01/12/17 4,700, , ,700, ,684, BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/ % 02/07/ KRC3 4,700, A+ A1 02/08/17 02/09/17 4,700, , ,700, ,719, BANK OF NOVA SCOTIA HOUSTON LT CD DTD 04/06/ % 04/05/ GUE6 5,100, A+ A1 04/05/17 04/06/17 5,100, , ,100, ,093, SUMITOMO MITSUI BANK NY CD DTD 05/04/ % 05/03/ YVN0 4,000, A A1 05/03/17 05/04/17 4,000, , ,000, ,007, SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/ % 08/02/ FXT3 5,200, A+ Aa3 08/03/17 08/04/17 5,197, , ,198, ,195, BANK TOKYO MITSUBISHI UFJ LTD LT CD DTD 09/27/ % 09/25/ RGM3 2,865, A+ A1 09/25/17 09/27/17 2,865, ,865, ,864, WESTPAC BANKING CORP NY CD DTD 08/07/ % 08/03/ T4A3 4,490, AA- Aa3 08/03/17 08/07/17 4,490, , ,490, ,511, Security Type Sub-Total 42,515, ,510, , ,511, ,560, Asset-Backed Security / Collateralized Mortgage Obligation HONDA ABS A3 DTD 06/27/ % 08/15/ BAC8 2,450, AAA Aaa 06/20/17 06/27/17 2,449, , ,449, ,445, JOHN DEERE ABS 2017-B A3 DTD 07/15/ % 10/15/ BAD6 725, NR Aaa 07/11/17 07/18/17 724, , , Security Type Sub-Total 3,175, ,174, , ,174, ,169,

50 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Managed Account Sub-Total 286,869, ,821, ,141, ,115, ,924, Securities Sub-Total Accrued Interest Total Investments $286,869, $288,821, % $1,141, $288,115, $286,924, $1,141, $288,065,

51 Managed Account Security Transactions & Interest For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds BUY Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 09/06/17 09/06/17 09/06/17 09/06/17 09/06/17 09/07/17 09/12/17 09/25/17 09/28/17 09/07/17 DTD 12/31/ % 12/31/ /07/17 ING (US) FUNDING LLC COMM PAPER DTD 08/07/ % 02/05/ /08/17 INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 01/26/ % 01/26/ /08/17 AMERICAN HONDA FINANCE CORP NOTES DTD 09/09/ % 09/09/ /08/17 BANK OF NEW YORK MELLON CORP DTD 02/19/ % 04/15/ /08/17 FHLB NOTES DTD 09/08/ % 09/28/ /19/17 INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/ % 09/12/ /27/17 BANK TOKYO MITSUBISHI UFJ LTD LT CD DTD 09/27/ % 09/25/ /29/17 FHLB NOTES DTD 09/08/ % 09/28/ UE8 1,820, (1,817,938.28) (2,559.38) (1,820,497.66) 4497W1B54 4,500, (4,473,952.50) 0.00 (4,473,952.50) FY4 3,000, (3,033,510.00) (7,000.00) (3,040,510.00) 02665WBG5 2,600, (2,574,494.00) (21,977.22) (2,596,471.22) 06406FAA1 4,875, (4,965,090.00) (48,411.46) (5,013,501.46) 3130ACE26 3,125, (3,114,968.75) 0.00 (3,114,968.75) 45905UP32 3,000, (2,992,800.00) 0.00 (2,992,800.00) 06539RGM3 2,865, (2,865,000.00) 0.00 (2,865,000.00) 3130ACE26 2,000, (1,982,740.00) (76.39) (1,982,816.39) Transaction Type Sub-Total 27,785, (27,820,493.53) (80,024.45) (27,900,517.98) INTEREST 09/01/17 09/01/17 09/03/17 09/06/17 09/01/17 MONEY MARKET FUND MONEY , , /01/17 CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/ % 03/01/ /03/17 AMERICAN EXPRESS CREDIT CORP NOTES DTD 03/03/ % 03/03/ /06/17 FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ RAR3 2,460, , , M0EE5 2,915, , , G0ZR7 1,000, , ,

52 Managed Account Security Transactions & Interest For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds INTEREST Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 09/06/17 09/09/17 09/09/17 09/15/17 09/15/17 09/15/17 09/24/17 09/24/17 09/28/17 09/30/17 09/30/17 09/30/17 09/06/17 FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ /09/17 ROYAL BANK OF CANADA NY CD DTD 03/15/ % 03/09/ /09/17 AMERICAN HONDA FINANCE CORP NOTES DTD 09/09/ % 09/09/ /15/17 BERKSHIRE HATHAWAY INC NOTES DTD 03/15/ % 03/15/ /15/17 JOHN DEERE ABS 2017-B A3 DTD 07/15/ % 10/15/ /15/17 HONDA ABS A3 DTD 06/27/ % 08/15/ /24/17 FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ /24/17 FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ /28/17 FHLB NOTES DTD 09/08/ % 09/28/ /30/17 DTD 03/31/ % 03/31/ /30/17 US TREASURY N/B DTD 09/30/ % 09/30/ /30/17 DTD 09/30/ % 09/30/ G0ZR7 1,910, , , NZZ2 3,960, , , WBG5 2,600, , , CG4 410, , , BAD6 725, , , BAC8 2,450, , , G0Q22 4,000, , , G0Q22 2,000, , , ACE26 3,125, , , Q37 3,925, , , T34 3,700, , , L57 750, , , Transaction Type Sub-Total 35,930, , , SELL 09/06/17 09/06/17 09/08/17 AMERICAN HONDA FINANCE GLOBAL NOTES DTD 09/09/ % 08/15/ /08/17 US TREASURY N/B DTD 09/30/ % 09/30/ WAH4 1,300, ,313, , ,315, , , FIFO T34 1,300, ,277, , ,284, , , FIFO 52

53 Managed Account Security Transactions & Interest For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Type Principal Trade Settle Security Description CUSIP Par Proceeds SELL Accrued Realized G/L Realized G/L Sale Interest Total Cost Amort Cost Method 09/06/17 09/07/17 09/07/17 09/12/17 09/25/17 09/25/17 09/28/17 09/08/17 BANK OF NEW YORK MELLON CORP (CALLABLE) DTD 05/29/ % 05/22/ /08/17 DTD 10/31/ % 10/31/ /08/17 DTD 09/30/ % 09/30/ /19/17 DTD 10/31/ % 10/31/ /27/17 FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ /27/17 FREDDIE MAC GLOBAL NOTES DTD 10/02/ % 10/02/ /29/17 BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ HDB2 4,495, ,498, , ,519, , , FIFO WC0 1,665, ,682, , ,692, , , FIFO VZ0 1,460, ,485, , ,498, (3,022.65) 9, FIFO WC0 3,000, ,023, , ,043, , , FIFO 3135G0N33 925, , , , (8,732.00) (9,324.15) FIFO 3137EADM8 1,700, ,691, , ,701, (5,032.00) (7,506.18) FIFO 06538CB59 2,000, ,989, ,989, , (279.50) FIFO Transaction Type Sub-Total 17,845, ,875, , ,960, , , Managed Account Sub-Total (9,944,605.53) 277, (9,667,056.49) 39, , Total Security Transactions ($9,944,605.53) $277, ($9,667,056.49) $39, $47,

54 California JPIA Compliance Report - Month Ended October 31, 2017 Security Type Par Value Original Cost Amortized Cost Market Value Longest Maturity Maximum Allowable Maturity YTM at Cost U.S. Treasury $102,855, $103,404, $103,199, $102,494, Years 10 Years 1.70% Federal Agency $62,295, $62,386, $62,317, $61,521, Years 10 Years 1.61% Supranational $8,945, $8,998, $8,997, $8,924, Years 5 Years 1.73% Commercial Paper $16,550, $16,438, $16,499, $16,501, Days 270 Days 1.41% Certificates of Deposit $42,515, $42,510, $42,511, $42,556, Years 5 Years 1.89% Medium-Term Corporate Notes $50,614, $51,978, $51,478, $51,348, Years 5 Years 1.88% Asset-Backed Securities $3,175, $3,174, $3,174, $3,165, Years 5 Years 1.72% Total Securities $286,949, $288,890, $288,178, $286,513, % Accrued Interest $1,216, $1,216, Total Portfolio $286,949, $288,890, $289,394, $287,730, LAIF $3,970, $3,970, $3,970, $3,970, Day 1.14% Money Market Fund $297, $297, $297, $297, Day 0.90% LA County Pooled Investment Fund $21,797, $21,797, $21,797, $21,797, Day 1.42% Total Liquidity $26,065, $26,065, $26,065, $26,065, % Total Investments $313,014, $314,955, $315,459, $313,795, % 1. I hereby certify that all investments are in compliance with the investment policy adopted by the Executive Committee as of June 28, The California JPIA investment portfolio is managed by PFM Asset Management LLC. 3. PFM's market prices are derived from closing bid prices as of the last business day of the month as supplied by F.T. Interactive Data, Bloomberg or Telerate. Prices that fall between data points are interpolated. 4. In accordance with Generally Accepted Accounting Principles (GAAP), month-end holdings and information are reported on a trade date basis. Securities listed in bold type on the Security Transactions & Interest page have been traded, but have not yet settled. 5. All ratings are as of month end. 6. The Authority has the ability to meet its budgeted expenditures for the next six months. 7. Excludes $2,965, of funds deposited with the Authority by the Central Coast Cities for payments on worker's compensation tail claims. 8. The yield for LAIF is the quarter to date yield as of October 31, The yield for the LA County Pooled Investment Fund is the earnings rate for September The county reports earnings with a one month lag. 10. Compliance with the investment policy is measured at the time of purchase. Jose Gomez California JPIA Treasurer Page 1 54

55 California JPIA Compliance Report - Month Ended October 31, 2017 Security Type Market Value ($) % of Portfolio 1 Permitted by Policy (% or $) In Compliance U.S. Treasury $102,494, % 100% Yes Federal Agency $61,521, % 100% Yes Supranational $8,924, % 7.5% Yes Commercial Paper $16,501, % 25% Yes Certificates of Deposit $42,556, % 30% Yes Medium-Term Corporate Notes $51,348, % 30% Yes Asset-Backed Securities $3,165, % 10% Yes LAIF $3,970, % $65,000,000 Yes Money Market Fund $297, % 20% Yes LA County Pooled Investment Fund $21,797, % $30,000,000 Yes Subtotal Investments $312,578, % Accrued Interest $1,216, Total Investments $313,795, LA County Pooled Investment Fund 7% Money Market Fund <1% LAIF 1% Asset-Backed Securities 1% Portfolio Composition 1 U.S. Treasury 33% Federal Agency 20% Medium-Term Corporate Notes 16% Certificates of Deposit 14% Supranational 3% Commercial Paper 5% 1. Percentages may not sum to 100% due to rounding. Page 2 55

56 California JPIA Compliance Report - Month Ended October 31, 2017 Maturity Distribution 1 October 31, 2017 Under 6 Months $48,363, Portfolio Duration Months $3,436, Modified Years $52,524, Effective Years $75,568, Years $64,336, Years $37,501, Years $32,063, Totals $313,795, Percentage of Total Portfolio 30% 25% 20% 15% 10% 5% 0% Portfolio Maturity % Distribution % 20.5% 16.7% #N/A 15.4% 12.0% 10.2% 1.1% Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-10 Years Notes: % of the portfolio is invested in currently callable securities. The callable securities are included in the maturity distribution to their stated maturity date, although they may be called prior to maturity. 2. Duration calculations exclude balances in LAIF and the money market fund. 3. Modified duration is the change in price of a security for a 1% change in the security's yield. 4. Effective duration is the change in price for a 1% change in yield, while also taking into account the likelihood of options such as calls and paydowns for mortgage-backed securities being exercised. 5. Percentages may not add up to 100% due to rounding. Page 3 56

57 CALIFORNIA JOINT POWERS INSURANCE AUTH Transaction Summary - Managed Account Managed Account Summary Statement For the Month Ending October 31, 2017 Cash Transactions Summary - Managed Account Opening Market Value $286,924, Maturities/Calls Principal Dispositions Principal Acquisitions Unsettled Trades Change in Current Value 0.00 (7,044,449.92) 7,174, (540,842.75) Reconciling Transactions Closing Market Value $286,513, Maturities/Calls Sale Proceeds Coupon/Interest/Dividend Income Principal Payments Security Purchases Net Cash Contribution ,078, , (7,201,168.70) (3,833.96) 0.00 Earnings Reconciliation (Cash Basis) - Managed Account Cash Balance Interest/Dividends/Coupons Received Less Purchased Interest Related to Interest/Coupons Plus Net Realized Gains/Losses 386, (26,400.19) (61,349.35) Closing Cash Balance $297, Total Cash Basis Earnings $298, Earnings Reconciliation (Accrual Basis) Total Ending Amortized Value of Securities Ending Accrued Interest Plus Proceeds from Sales Plus Proceeds of Maturities/Calls/Principal Payments Plus Coupons/Dividends Received Less Cost of New Purchases Less Beginning Amortized Value of Securities Less Beginning Accrued Interest 288,178, ,216, ,078, , (7,201,168.70) (288,115,235.40) (1,141,278.96) Total Accrual Basis Earnings $367,

58 Portfolio Summary and Statistics For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Account Summary Sector Allocation Description Par Value Market Value Percent U.S. Treasury Bond / Note 102,855, ,494, Supra-National Agency Bond / Note 8,945, ,924, Federal Agency Bond / Note 62,295, ,521, Corporate Note 50,614, ,348, Commercial Paper 16,550, ,501, Certificate of Deposit 42,515, ,556, Asset-Backed Security / Collateralized Mortgage Obligation 3,175, ,165, Managed Account Sub-Total 286,949, ,513, % Accrued Interest 1,216, Total Portfolio 286,949, ,730, Unsettled Trades US TSY Bond / Note 35.78% Supra-National Agency Bond / Note 3.11% Fed Agy Bond / Note 21.48% ABS / CMO 1.10% Cert of Deposit 14.85% Commercial Paper 5.76% Corporate Note 17.92% Maturity Distribution Characteristics 26.24% Yield to Maturity at Cost 1.73% 22.37% Yield to Maturity at Market 1.82% 18.24% Duration to Worst % 11.14% Weighted Average Days to Maturity % 1.19% 0-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years 58

59 Managed Account Issuer Summary For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Issuer Summary Credit Quality (S&P Ratings) Issuer AMERICAN EXPRESS CO AMERICAN HONDA FINANCE APPLE INC BANK OF MONTREAL BANK OF NOVA SCOTIA BB&T CORPORATION BERKSHIRE HATHAWAY INC BNP PARIBAS BURLINGTON NORTHERN SANTA FE CANADIAN IMPERIAL BANK OF COMMERCE CHEVRON CORPORATION CISCO SYSTEMS INC CREDIT AGRICOLE SA DEERE & COMPANY FANNIE MAE FEDERAL HOME LOAN BANKS FREDDIE MAC GENERAL ELECTRIC CO HONDA AUTO RECEIVABLES ING GROUP NV INTER-AMERICAN DEVELOPMENT BANK INTL BANK OF RECONSTRUCTION AND DEV JOHN DEERE OWNER TRUST JP MORGAN CHASE & CO MICROSOFT CORP MITSUBISHI UFJ FINANCIAL GROUP INC NORDEA BANK AB ORACLE CORP PEPSICO INC ROYAL BANK OF CANADA SKANDINAVISKA ENSKILDA BANKEN AB SUMITOMO MITSUI FINANCIAL GROUP INC Market Value of Holdings Percent 2,923, ,552, ,313, ,718, ,094, ,477, ,042, ,991, ,388, ,759, ,631, ,320, ,037, , ,372, ,805, ,344, ,149, ,442, ,483, ,966, ,957, , ,870, ,401, ,852, ,759, ,431, ,815, ,964, ,195, ,007, NR 0.25% AAA 4.81% AA % AA % A 5.43% A+ 9.19% A- 3.24% A % A % AA 0.71% 59

60 Managed Account Issuer Summary For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Issuer SVENSKA HANDELSBANKEN AB THE BANK OF NEW YORK MELLON CORPORATION TOYOTA MOTOR CORP UNILEVER PLC UNITED STATES TREASURY WELLS FARGO & COMPANY WESTPAC BANKING CORP Market Value of Holdings Percent 4,686, ,920, ,536, , ,494, ,656, ,507, Total $286,513, % 60

61 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 12/31/ % 12/31/ UE8 1,820, AA+ Aaa 09/06/17 09/07/17 1,817, , ,818, ,818, DTD 04/30/ % 04/30/ K58 4,465, AA+ Aaa 02/01/16 02/03/16 4,488, ,479, ,431, DTD 05/17/ % 05/15/ ND8 2,500, AA+ Aaa 05/28/15 05/29/15 2,737, , ,623, ,613, DTD 05/31/ % 05/31/ VF4 2,570, AA+ Aaa 05/22/15 05/26/15 2,545, , ,557, ,549, DTD 05/31/ % 05/31/ VF4 8,900, AA+ Aaa 12/02/15 12/04/15 8,828, , ,858, ,830, DTD 06/30/ % 06/30/ XH8 4,950, AA+ Aaa 11/01/16 11/02/16 5,031, , ,010, ,940, DTD 12/02/ % 11/30/ A42 2,500, AA+ Aaa 02/26/15 02/27/15 2,546, , ,525, ,518, DTD 01/31/ % 01/31/ N89 4,750, AA+ Aaa 05/26/16 05/27/16 4,753, , ,752, ,687, DTD 03/31/ % 03/31/ Q37 3,925, AA+ Aaa 03/15/17 03/17/17 3,813, , ,829, ,852, DTD 05/02/ % 04/30/ Q78 480, AA+ Aaa 06/27/16 06/29/16 488, , , DTD 05/31/ % 05/31/ R77 1,600, AA+ Aaa 08/02/17 08/03/17 1,582, , ,583, ,574, DTD 08/01/ % 07/31/ S76 3,100, AA+ Aaa 07/24/17 07/25/17 3,030, , ,034, ,017, DTD 08/15/ % 08/15/ RC6 700, AA+ Aaa 07/12/16 07/13/16 734, , , , DTD 09/02/ % 08/31/ D72 1,220, AA+ Aaa 08/12/15 08/13/15 1,237, , ,231, ,225,

62 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 09/02/ % 08/31/ D72 4,650, AA+ Aaa 12/01/16 12/05/16 4,666, , ,663, ,671, US TREASURY N/B DTD 09/30/ % 09/30/ T34 3,700, AA+ Aaa 08/03/17 08/04/17 3,614, , ,619, ,594, DTD 10/31/ % 10/31/ F96 4,250, AA+ Aaa 01/03/17 01/05/17 4,259, ,257, ,266, DTD 10/31/ % 10/31/ F96 4,400, AA+ Aaa 04/03/17 04/05/17 4,427, ,424, ,417, DTD 12/31/ % 12/31/ G87 4,635, AA+ Aaa 09/22/16 09/23/16 4,840, , ,798, ,672, DTD 01/31/ % 01/31/ V72 5,865, AA+ Aaa 07/06/17 07/11/17 5,854, , ,854, ,849, DTD 03/02/ % 02/28/ J43 3,925, AA+ Aaa 03/15/17 03/17/17 3,852, , ,861, ,893, US TREASURY N/B NOTES DTD 06/30/ % 06/30/ XG0 2,850, AA+ Aaa 08/30/17 08/31/17 2,902, , ,900, ,867, DTD 08/15/ % 08/15/ TJ9 1,450, AA+ Aaa 07/12/16 07/13/16 1,480, , ,474, ,426, DTD 08/15/ % 08/15/ TJ9 2,600, AA+ Aaa 11/05/15 11/09/15 2,543, , ,559, ,557, DTD 09/30/ % 09/30/ L57 750, AA+ Aaa 11/24/15 11/25/15 738, , , , DTD 11/15/ % 11/15/ TY6 1,100, AA+ Aaa 12/01/16 12/05/16 1,068, , ,072, ,079, DTD 12/31/ % 12/31/ N30 2,500, AA+ Aaa 02/01/16 02/03/16 2,573, , ,555, ,509, DTD 02/15/ % 02/15/ UN8 2,000, AA+ Aaa 02/26/15 02/27/15 2,019, , ,013, ,993,

63 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 05/15/ % 05/15/ VB3 1,240, AA+ Aaa 03/26/15 03/27/15 1,225, , ,229, ,217, DTD 05/15/ % 05/15/ VB3 1,250, AA+ Aaa 07/10/15 07/13/15 1,207, , ,218, ,227, DTD 08/15/ % 08/15/ VS6 1,100, AA+ Aaa 12/01/16 12/05/16 1,117, , ,115, ,123, DTD 08/15/ % 08/15/ VS6 1,110, AA+ Aaa 04/28/15 04/30/15 1,164, , ,148, ,133, DTD 08/15/ % 08/15/ VS6 1,215, AA+ Aaa 07/10/15 07/13/15 1,238, , ,232, ,241, DTD 11/15/ % 11/15/ WE6 1,350, AA+ Aaa 07/12/16 07/13/16 1,481, , ,459, ,397, DTD 08/15/ % 08/15/ D56 1,100, AA+ Aaa 12/01/16 12/05/16 1,101, , ,101, ,111, DTD 08/15/ % 08/15/ D56 1,335, AA+ Aaa 07/10/15 07/13/15 1,338, , ,337, ,348, US TREASURY N/B NOTES DTD 08/31/ % 08/31/ U3 2,000, AA+ Aaa 08/30/17 08/31/17 1,987, , ,988, ,956, DTD 11/17/ % 11/15/ G38 925, AA+ Aaa 07/12/16 07/13/16 983, , , , DTD 08/17/ % 08/15/ K74 975, AA+ Aaa 07/12/16 07/13/16 1,016, , ,011, , DTD 08/17/ % 08/15/ K74 1,100, AA+ Aaa 12/01/16 12/05/16 1,063, , ,066, ,077, Security Type Sub-Total 102,855, ,404, , ,199, ,494, Supra-National Agency Bond / Note 63

64 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Supra-National Agency Bond / Note INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/ % 09/12/ UP32 3,000, AAA Aaa 09/12/17 09/19/17 2,992, , ,993, ,967, INTER-AMERICAN DEVELOPMENT BANK DTD 11/08/ % 11/09/ X0CD8 2,945, AAA Aaa 10/02/17 10/10/17 2,972, , ,971, ,966, INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 01/26/ % 01/26/ FY4 3,000, AAA Aaa 09/06/17 09/08/17 3,033, , ,032, ,990, Security Type Sub-Total 8,945, ,998, , ,997, ,924, Federal Agency Bond / Note FREDDIE MAC (EX-CALLABLE) NOTES DTD 01/30/ % 07/30/ G3JM3 1,000, AA+ Aaa 03/14/13 03/20/13 1,012, , ,003, ,006, FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ G0N33 850, AA+ Aaa 07/29/16 08/02/16 848, , , , FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 4,650, AA+ Aaa 08/03/17 08/04/17 4,645, , ,646, ,629, FEDERAL HOME LOAN BANK NOTES DTD 10/13/ % 10/21/ ACM92 905, AA+ Aaa 10/13/17 10/17/17 903, , , FHLB NOTES DTD 11/17/ % 11/15/ AA3R7 845, AA+ Aaa 11/16/16 11/17/16 844, , , , FNMA BENCHMARK NOTE DTD 11/07/ % 11/26/ G0ZY2 3,750, AA+ Aaa 12/01/14 12/03/14 3,774, , ,760, ,755, FANNIE MAE (EX-CALLABLE) NOTES DTD 02/07/ % 02/07/ FTB73 1,000, AA+ Aaa 03/14/13 03/20/13 1,010, , ,000, ,004, FNMA NOTES DTD 02/28/ % 02/28/ G0T29 3,005, AA+ Aaa 02/24/17 02/28/17 3,003, , ,003, ,990, FHLMC AGENCY NOTES DTD 04/20/ % 04/20/ EAEF2 4,750, AA+ Aaa 04/19/17 04/20/17 4,733, , ,736, ,708,

65 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FNMA NOTES DTD 08/01/ % 07/30/ G0T60 5,085, AA+ Aaa 07/28/17 08/01/17 5,069, , ,070, ,051, FHLB NOTES DTD 09/08/ % 09/28/ ACE26 2,000, AA+ Aaa 09/28/17 09/29/17 1,982, , ,983, ,975, FHLB NOTES DTD 09/08/ % 09/28/ ACE26 3,125, AA+ Aaa 09/07/17 09/08/17 3,114, , ,115, ,086, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 1,950, AA+ Aaa 07/07/16 07/08/16 2,019, , ,999, ,954, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 2,750, AA+ Aaa 02/01/16 02/03/16 2,804, , ,785, ,756, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 1,885, AA+ Aaa 08/17/16 08/19/16 1,878, , ,880, ,839, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 3,000, AA+ Aaa 09/01/16 09/02/16 2,981, , ,985, ,927, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 6,115, AA+ Aaa 08/17/16 08/19/16 6,090, , ,096, ,967, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 1,670, AA+ Aaa 06/27/17 06/29/17 1,680, , ,679, ,670, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 2,000, AA+ Aaa 06/20/17 06/21/17 2,013, , ,012, ,000, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,000, AA+ Aaa 02/02/15 02/04/15 1,057, , ,041, ,020, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,910, AA+ Aaa 06/27/17 06/29/17 1,973, , ,970, ,949, FNMA NOTES DTD 04/26/ % 04/24/ G0K36 3,050, AA+ Aaa 04/25/16 04/26/16 3,026, , ,029, ,959, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 2,000, AA+ Aaa 08/30/17 08/31/17 1,932, , ,933, ,894,

66 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 4,000, AA+ Aaa 09/26/16 09/27/16 3,983, , ,985, ,789, Security Type Sub-Total 62,295, ,386, , ,317, ,521, Corporate Note BERKSHIRE HATHAWAY NOTES DTD 05/15/ % 05/15/ BW0 520, AA Aa2 05/08/13 05/15/13 519, , , , CHEVRON CORP GLOBAL NOTES DTD 06/24/ % 06/24/ AE0 2,895, AA- Aa2 06/17/13 06/24/13 2,895, , ,895, ,896, CHEVRON CORP NOTES DTD 03/03/ % 02/28/ BS8 735, AA- Aa2 02/28/17 03/03/17 735, , , , CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/ % 03/01/ RAR3 2,460, AA- A1 03/23/15 03/26/15 2,511, , ,477, ,473, BERKSHIRE HATHAWAY INC NOTES DTD 03/15/ % 03/15/ CG4 410, AA Aa2 03/08/16 03/15/16 409, , , GENERAL ELECTRIC CAPITAL CORP NOTES DTD 08/07/ % 08/07/ G4D3 2,004, AA- A1 04/10/15 04/15/15 2,356, , ,151, ,149, BERKSHIRE HATHAWAY INC CORPORATE NOTES DTD 08/15/ % 08/15/ CK5 1,120, AA Aa2 08/08/16 08/15/16 1,118, , ,119, ,112, BURLINGTON NRTH CORP DTD 09/24/ % 10/01/ TBC7 1,320, A A3 06/03/16 06/08/16 1,457, , ,400, ,388, TOYOTA MOTOR CORP NOTES DTD 10/18/ % 10/18/ TDH5 2,550, AA- Aa3 10/13/16 10/18/16 2,548, , ,549, ,536, CISCO SYSTEMS INC CORP NOTE DTD 11/17/ % 01/15/ RAH5 1,750, AA- A1 09/20/16 09/23/16 1,913, , ,859, ,846, MICROSOFT CORP DTD 02/06/ % 02/06/ BV5 2,400, AAA Aaa 01/30/17 02/06/17 2,398, , ,398, ,401,

67 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note APPLE INC BONDS DTD 02/09/ % 02/07/ AX8 3,330, AA+ Aa1 02/23/15 02/26/15 3,286, , ,309, ,313, AMERICAN EXPRESS CREDIT (CALLABLE) CORP DTD 03/03/ % 03/03/ M0EE5 2,915, A- A2 02/28/17 03/03/17 2,911, , ,912, ,923, UNILEVER CAPITAL CORP BONDS DTD 05/05/ % 05/05/ AV9 340, A+ A1 05/02/17 05/05/17 338, , , , JOHN DEERE CAPITAL CORP NOTES DTD 06/22/ % 06/22/ ETS8 580, A A2 06/19/17 06/22/17 579, , , , WELLS FARGO & COMPANY NOTES DTD 07/22/ % 07/22/ BGM6 4,600, A A2 09/08/16 09/13/16 4,731, , ,694, ,656, JP MORGAN CHASE & CO NOTES DTD 07/22/ % 07/22/ HHS2 4,600, A- A3 09/08/16 09/13/16 5,016, , ,897, ,870, BRANCH BANKING & TRUST CORP NOTES DTD 10/26/ % 02/01/ FAZ6 1,480, A- A2 10/23/17 10/26/17 1,479, ,479, ,477, PEPSICO INC CORP NOTE DTD 10/10/ % 04/15/ DX3 1,820, A+ A1 10/05/17 10/10/17 1,819, , ,819, ,815, BANK OF NEW YORK MELLON CORP (CALLABLE) DTD 02/19/ % 04/15/ FAA1 4,875, A A1 09/06/17 09/08/17 4,965, , ,961, ,920, ORACLE CORP BONDS DTD 07/08/ % 07/08/ XBA2 5,310, AA- A1 02/01/17 02/03/17 5,409, , ,393, ,431, AMERICAN HONDA FINANCE CORP NOTES DTD 09/09/ % 09/09/ WBG5 2,600, A+ A2 09/06/17 09/08/17 2,574, , ,575, ,552, Security Type Sub-Total 50,614, ,978, , ,478, ,348, Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER DTD 06/20/ % 12/21/ BZM5 5,000, A-1 P-1 06/20/17 06/21/17 4,964, ,990, ,991,

68 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Commercial Paper CREDIT AGRICOLE CIB NY COMM PAPER DTD 07/24/ % 01/25/ UAR4 4,050, A-1 P-1 07/25/17 07/25/17 4,021, ,036, ,037, BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ CB59 3,000, A-1 P-1 08/08/17 08/09/17 2,978, ,988, ,988, ING (US) FUNDING LLC COMM PAPER DTD 08/07/ % 02/05/ W1B54 4,500, A-1 P-1 09/06/17 09/07/17 4,473, ,483, ,483, Security Type Sub-Total 16,550, ,438, ,499, ,501, Certificate of Deposit ROYAL BANK OF CANADA NY CD DTD 03/15/ % 03/09/ NZZ2 3,960, A-1+ P-1 03/11/16 03/15/16 3,960, , ,960, ,964, CANADIAN IMPERIAL BANK NY CD DTD 12/05/ % 11/30/ A5Z7 3,750, A+ A1 12/01/16 12/05/16 3,747, , ,748, ,759, NORDEA BANK FINLAND NY CD DTD 12/05/ % 11/30/ LWA6 3,750, AA- Aa3 12/01/16 12/05/16 3,750, , ,750, ,759, SVENSKA HANDELSBANKEN NY LT CD DTD 01/12/ % 01/10/ JHB8 4,700, AA- Aa2 01/10/17 01/12/17 4,700, , ,700, ,686, BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/ % 02/07/ KRC3 4,700, A+ A1 02/08/17 02/09/17 4,700, , ,700, ,718, BANK OF NOVA SCOTIA HOUSTON LT CD DTD 04/06/ % 04/05/ GUE6 5,100, A+ A1 04/05/17 04/06/17 5,100, , ,100, ,094, SUMITOMO MITSUI BANK NY CD DTD 05/04/ % 05/03/ YVN0 4,000, A A1 05/03/17 05/04/17 4,000, , ,000, ,007, SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/ % 08/02/ FXT3 5,200, A+ Aa3 08/03/17 08/04/17 5,197, , ,198, ,195, BANK TOKYO MITSUBISHI UFJ LTD LT CD DTD 09/27/ % 09/25/ RGM3 2,865, A+ A1 09/25/17 09/27/17 2,865, , ,865, ,863, WESTPAC BANKING CORP NY CD DTD 08/07/ % 08/03/ T4A3 4,490, AA- Aa3 08/03/17 08/07/17 4,490, , ,490, ,507,

69 Managed Account Detail of Securities Held For the Month Ending October 31, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit Security Type Sub-Total 42,515, ,510, , ,511, ,556, Asset-Backed Security / Collateralized Mortgage Obligation HONDA ABS A3 DTD 06/27/ % 08/15/ BAC8 2,450, AAA Aaa 06/20/17 06/27/17 2,449, , ,449, ,442, JOHN DEERE ABS 2017-B A3 DTD 07/15/ % 10/15/ BAD6 725, NR Aaa 07/11/17 07/18/17 724, , , Security Type Sub-Total 3,175, ,174, , ,174, ,165, Managed Account Sub-Total 286,949, ,890, ,216, ,178, ,513, Securities Sub-Total Accrued Interest Total Investments $286,949, $288,890, % $1,216, $288,178, $286,513, $1,216, $287,730,

70 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEE Jonathan Shull, Chief Executive Officer Alexander Smith, Chief Financial Officer Date: November 13, 2017 Subject: Local Agency Investment Fund Quarterly Report as of September 30, 2017 The Authority s Investment Policy requires quarterly reporting of the percentages that LAIF has invested in each security type. The attached report provides this information. Recommended Action Receive and file. 70

71 John Chiang Treasurer State of California Quarterly Report On the Pooled Money Investment Account For the Quarter Ending September 30,

72 72

73 73

74 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF RESOURCES September 30, 2017 (Dollars in thousands) Portfolio Amount $ 74,054,768 Effective Yield 1.105% Quarter-to-date Yield 1.082% Year-to-date Yield 1.082% Average Life (in days) 190 Demand Bank Account Balances $ 450,590 Total PMIA Resources $ 74,505,358 74

75 POOLED MONEY INVESTMENT ACCOUNT ANALYSIS OF THE PORTFOLIO September 30, 2017 (Dollars in thousands) Type of Security Amount Percent Governments Bills $ 14,674, % Bonds % Notes 20,527, % Strips % Total Governments $ 35,201, % Federal Agency Debentures $ 2,761, % Certificates of Deposit 12,950, % Bank Notes 700, % Repurchases % Federal Agency Discount Notes 9,694, % Time Deposits 5,636, % GNMAs % Commercial Paper 6,177, % FHLMC / REMICS 36, % Corporate Bonds % AB 55 Loans 695, % GF Loans % NOW Accounts % Other 200, % Reverse Repurchases % Total, All Types $ 74,054, % 75

76 State of California Pooled Money Investment Account Market Valuation 9/30/2017 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest 1* United States Treasury: Bills $ 14,674,811, $ 14,728,634, $ 14,723,448, NA Notes $ 18,827,121, $ 18,825,793, $ 18,779,355, $ 35,404, * Federal Agency: SBA $ 882,001, $ 882,001, $ 872,264, $ 1,109, MBS-REMICs $ 36,639, $ 36,639, $ 38,144, $ 171, Debentures $ 1,328,997, $ 1,328,621, $ 1,324,530, $ 2,307, Debentures FR $ - $ - $ - $ - Debentures CL $ 250,000, $ 250,000, $ 249,152, $ 732, Discount Notes $ 9,694,389, $ 9,721,523, $ 9,720,621, NA GNMA $ - $ - $ - $ - 1* Supranational Debentures $ 450,315, $ 450,217, $ 448,745, $ 1,053, * Supranational Debentures FR $ 50,000, $ 50,000, $ 50,075, $ 155, * CDs and YCDs FR $ 625,000, $ 625,000, $ 625,000, $ 1,539, * Bank Notes $ 700,000, $ 700,000, $ 699,891, $ 3,317, * CDs and YCDs $ 12,325,000, $ 12,325,000, $ 12,323,151, $ 32,191, * Commercial Paper $ 6,177,895, $ 6,189,905, $ 6,189,559, NA 1* Corporate: Bonds FR $ - $ - $ - $ - Bonds $ - $ - $ - $ - 1* Repurchase Agreements $ - $ - $ - $ - 1* Reverse Repurchase $ - $ - $ - $ - Time Deposits $ 5,636,740, $ 5,636,740, $ 5,636,740, NA AB 55 & GF Loans $ 695,865, $ 695,865, $ 695,865, NA TOTAL $ 72,354,774, $ 72,445,942, $ 72,376,544, $ 77,985, Fair Value Including Accrued Interest $ 72,454,529, * Governmental Accounting Standards Board (GASB) Statement #72 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost ( ). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,980, or $20,000, x

77 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEE Jonathan Shull, Chief Executive Officer Alexander Smith, Chief Financial Officer Date: November 13, 2017 Subject: Los Angeles County Pooled Investment Fund Report The Authority s Investment Policy requires quarterly reporting of the percentages that the LA County Investment Pool has invested in each security type. The attached report provides this information for the quarter ended September 30, The county maintains two separate investment portfolios: the Pooled Surplus Investment portfolio (PSI), and the Specific Purpose Investment portfolio (SPI). All of the Authority funds on deposit with the county are held in the PSI portfolio. A complete listing of individual securities held in the PSI portfolio is available on the following website: Recommended Action Receive and file. 77

78 JOSEPH KELLY TREASURER AND TAX COLLECTOR COUNTY OF LOS ANGELES TREASURER AND TAX COLLECTOR Kenneth Hahn Hall of Administration 500 West Temple Street, Room 462, Los Angeles, California Telephone: (213) Fax: (213) ttc.lacounty.gov and lacountypropertytax.com October 31, 2017 Board of Supervisors HILDA L. SOLIS First District MARK RIDLEY-THOMAS Second District SHEILA KUEHL Third District JANICE HAHN Fourth District KATHRYN BARGER Fifth District TO: FROM: Supervisor Mark Ridley-Thomas, Chairman Supervisor Hilda L. Solis Supervisor Sheila Kuehl Supervisor Janice Hahn Supervisor Kathryn Barger Joseph Kel~~ Treasurer a'(!9/tax Collector SUBJECT: REPORT OF INVESTMENTS FOR THE MONTH OF SEPTEMBER 2017 The Report of Investments for the month of September 2017 has been compiled pursuant to the California Government Code, and the Treasurer and Tax Collector's Investment Policy. All investments made during the month of September 2017 were in accordance with the California Government Code and conform to the Treasurer and Tax Collector's Investment Policy. The attached Schedules A and B summarize important Treasury Pool information. You will find the complete monthly Report of Investments at the following link: info.asp. Should you have any questions, please contact me directly or your staff may contact Ms. Nai-len Ishikawa, Assistant Treasurer and Tax Collector, of my staff at (213) or nishikawa@ttc.lacounty.gov. JK:Nl:bp Attachments c: Chief Executive Officer Executive Officer, Board of Supervisors Auditor-Co ntro lier County Counsel Los Angeles Community College District Los Angeles County Office of Education 78

79 THE LOS ANGELES COUNTY POOLED SURPLUS INVESTMENTS The Treasurer and Tax Collector (the Treasurer) of Los Angeles County has the delegated authority to invest funds on deposit in the County Treasury (the Treasury Pool). As of September 30, 2017, investments in the Treasury Pool were held for local agencies including school districts, community college districts, special districts and discretionary depositors such as cities and independent districts in the following amounts: Invested Funds Local Agency (in billions) County of Los Angeles and Special Districts $ Schools and Community Colleges Discretionary Participants Total $ The Treasury Pool participation composition is as follows: Non-discretionary Participants 90.73% Discretionary Participants: Independent Public Agencies 8.60% County Bond Proceeds and Repayment Funds 0.67% Total % Decisions on the investment of funds in the Treasury Pool are made by the County Investment Officer in accordance with established policy, with certain transactions requiring the Treasurer's prior approval. In Los Angeles County, investment decisions are governed by Chapter 4 (commencing with Section 53600) of Part 1 of Division 2 of Title 5 of the California Government Code, which governs legal investments by local agencies in the State of California, and by a more restrictive Investment Policy developed by the Treasurer and adopted by the Los Angeles County Board of Supervisors on an annual basis. The Investment Policy adopted on March 21, 2017, reaffirmed the following criteria and order of priority for selecting investments: 1. Safety of Principal 2. Liquidity 3. Return on Investment The Treasurer prepares a monthly Report of Investments (the Investment Report) summarizing the status of the Treasury Pool, including the current market value of all investments. This report is submitted monthly to the Board of Supervisors. According to 79

80 the Investment Report dated October 31, 2017, the September 30, 2017 book value of the Treasury Pool was approximately $ billion and the corresponding market value was approximately $ billion. An internal controls system for monitoring cash accounting and investment practices is in place. The Treasurer's Compliance Auditor, who operates independently from the Investment Officer, reconciles cash and investments to fund balances daily. The Compliance Auditor s staff also reviews each investment trade for accuracy and compliance with the Board adopted Investment Policy. On a quarterly basis, the County s outside independent auditor (External Auditor) reviews the cash and investment reconciliations for completeness and accuracy. Additionally, the External Auditor reviews investment transactions on a quarterly basis for conformance with the approved Investment Policy and annually accounts for all investments. The following table identifies the types of securities held by the Treasury Pool as of September 30, 2017: Type of Investment % of Pool U.S. Government and Agency Obligations Certificates of Deposit 8.61 Commercial Paper Bankers Acceptances 0.00 Municipal Obligations 0.02 Corporate Notes & Deposit Notes 0.19 Asset Backed Instruments 0.00 Repurchase Agreements 0.00 Other The Treasury Pool is highly liquid. As of September 30, 2017, approximately 32.44% of the investments mature within 60 days, with an average of 646 days to maturity for the entire portfolio. TreasPool Update 09/30/

81 POOLED SURPLUS AND SPECIFIC PURPOSE INVESTMENTS AS OF SEPTEMBER 30, 2017 SCHEDULE A Pooled Specific Surplus Purpose PORTFOLIO PROFILE Investments Investments Inventory Balance at 9/30/17 At Cost $ 25,843,606,244 $ 149,365,439 At Market $ 25,671,736,055 $ 147,679,938 Repurchase Agreements $ - $ - Reverse Repurchase Agreements $ - $ - Composition by Security Type: Certificates of Deposit 8.61% 33.47% United States Government and Agency Obligations 68.02% 0.00% Bankers Acceptances 0.00% 0.00% Commercial Paper 23.16% 0.00% Municipal Obligations 0.02% 2.86% Corporate and Deposit Notes 0.19% 0.00% Repurchase Agreements 0.00% 0.00% Asset-Backed 0.00% 0.00% Other 0.00% 28.67% 1-60 days 32.44% 0.00% 61 days-1 year 11.62% 47.56% Over 1 year 55.94% 52.44% Weighted Average Days to Maturity

82 The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of each portfolio s cost at September 30, 2017: PSI S&P Moody's Fitch % of Portfolio Commercial Paper A-1 P-1 F % Corporate and Deposit Notes A-1+ P-1 F1 0.10% AA- Aa1 AA 0.09% Los Angeles County Securities AA+ Aa1 AA 0.02% Negotiable Certificates of Deposit A-1 P-1 F1 8.61% U.S. Agency Securities AA+ Aaa AAA 61.57% U.S. Treasury Securities: U.S. Treasury Notes AA+ Aaa AAA 1.06% U.S. Treasury Bills AA+ Aaa AAA 5.39% % SPI Local Agency Investment Fund Not rated Not rated Not rated 28.67% Commercial Paper % Corporate and Deposit Notes % Mortgage Trust Deeds % Los Angeles County Securities AA+ Aa1 AA 2.86% Negotiable Certificates of Deposit A-1+ P-1 F % A+ Aa2 AA % U.S. Agency Securities AA+ Aaa AAA 35.00% U.S. Treasury Securities: U.S. Treasury Notes % U.S. Treasury Bonds % % 82

83 POOLED SURPLUS EARNINGS REPORT SEPTEMBER 30, 2017 SCHEDULE B TREASURER POOLED SURPLUS INVESTMENT PORTFOLIO Investment Balance 9/30/17 $ 25,843,606,244 Market Value at 9/30/17 $ 25,671,736,055 Average Daily Balance $ 25,262,483,296 Gains and Losses: For the Month $ 32,128 For the Past 12 Months $ 1,917,014 Unrealized Gains and Losses on Transfers between Portfolio for the Month $ - Earnings for the Month $ 29,625,007 Earnings for the Past 12 Months $ 365,147,042 Earnings Rate for the Month 1.42% 83

84 LOS ANGELES COUNTY TREASURER EARNINGS RATE ON INVESTMENTS FISCAL YEAR ATTACHMENT IV 1.80% PSI 1.60% 1.40% 1.51% 1.51% 1.37% 1.39% 1.42% 1.58% SPI MMF* 1.20% 1.00% 0.80% 0.60% 0.40% 0.26% 0.26% 0.26% 0.20% 0.00% JUL AUG SEP * Source: Money Fund Report as of January 17, Provided for comparative purposes only. 84

85 LOS ANGELES COUNTY TREASURER COMPOSITION OF PSI PORTFOLIO BY SECURITY TYPE AS OF SEPTEMBER 2017 ATTACHMENT VII In Thousands Government, 6.45% Negotiable CD's, 8.61% Corp & Deposit Notes, 0.19% Commercial Paper, 23.16% Negotiable CD's 2,225,008 Corp & Deposit Notes 49,956 Bankers Acceptance - Commercial Paper 5,984,418 Municipal, 0.02% Municipal 5,000 Agencies 15,911,565 Other - Agencies, 61.57% Government 1,667,659 Total $ 25,843,606 Investment Composition Is In Compliance With The Los Angeles County Treasurer's Investment Policy. 85

86 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEES Jonathan Shull, Chief Executive Officer Alexander Smith, Chief Financial Officer Date: November 13, 2017 Subject: Preliminary Financial Statements for the Quarter Ended June 30, 2017 The preliminary financial statements for the quarter ended June 30, 2017 are attached. They will be finalized in conjunction with the annual audit, which is currently underway. One of the material postings that is still pending is the Authority s claims payable figure which is in the process of being reconciled to both the actuarial study and to loss reports maintained by York and Carl Warren. Other material postings that will be completed within the next few weeks are the payables and receivables related to retrospective deposits and refunds. The October 2017 retrospective adjustment was just recently finalized last week and must now be reconciled to every member s retrospective deposit balance and payment plan(s). Please note, members receiving refunds from the October 2017 adjustment who also happen to have payment plans in progress will receive a credit to their payment plan which will reduce the duration of the payment plan. Members who do not have payment plans will receive retrospective refunds in the form of a credit line item on their annual contribution invoice for Recommended Action Receive and file. 86

87 Primary Primary Workers' Insurance Excess Liability Compensation Programs Liability Consolidated ASSETS CURRENT ASSETS: Cash and investments $ 137,622,120 $ 131,039,358 $ 1,735,057 $ 1,229,132 $ 271,625,667 Interest receivable 665, , ,300,480 Retrospective deposits receivable - 751, ,780 Contributions receivable Accounts receivable Excess Recoveries Receivable - 563,450 3,481,071-4,044,521 Prepaid expenses 114,942 87,141-6, ,157 TOTAL CURRENT ASSETS 138,402, ,077,021 5,216,128 1,235, ,930,605 NON-CURRENT ASSETS: Retrospective deposits receivable 20,501,222 7,840, ,342,191 Salvaged assets 2,850, ,850,000 Capital assets, not being depreciated 2,158,897 1,046,779-27,662 3,233,338 Capital assets, net of depreciation 2,105,620 2,027,787 1, ,135,212 Net pension assets 17,657 16,216 2,162-36,035 TOTAL NON-CURRENT ASSETS 27,633,396 10,931,751 3,344 28,285 38,596,776 TOTAL ASSETS 166,035, ,008,772 5,219,472 1,263, ,527,381 DEFERRED OUTFLOWS OF RESOURCES 535, ,172 65,623-1,093,716 LIABILITIES CURRENT LIABILITIES: Accounts payable 199, ,559 1,963,175 12,011 2,923,106 Compensated absences 184, ,643 22, ,984 Unearned contributions 10,482,481 6,078,757-1,176 16,562,414 Retrospective refunds payable 1,314,138 1,310, ,624,446 TOTAL CURRENT LIABILITIES 12,180,702 8,307,267 1,985,794 13,187 22,486,950 NON-CURRENT LIABILITIES: Retrospective refunds payable Claims payable 87,391,144 94,716, , ,633,712 Net pension liability 1,255,533 1,153, ,739-2,562,312 TOTAL NON-CURRENT LIABILITIES 88,646,677 95,869, , , ,196,024 TOTAL LIABILITIES 100,827, ,176,875 2,139, , ,682,974 DEFERRED INFLOWS OF RESOURCES 398, ,999 48, ,332 NET POSITION California Joint Powers Insurance Authority Statement of Net Position 6/30/17 Preliminary Invested in capital assets 4,264,517 3,074,565 1,182 28,285 7,368,549 Unrestricted 61,081,138 36,883,505 3,095, , ,756,242 TOTAL NET POSITION $ 65,345,655 $ 39,958,070 $ 3,096,762 $ 724,304 $ 109,124,791 11/7/17 NP Stmt 87

88 California Joint Powers Insurance Authority Statement of Revenues, Expenses, and Changes in Net Position For the Twelve Months Ended June 30, 2017 Preliminary Primary Primary Workers' Insurance Excess Liability Compensation Programs Liability Consolidated OPERATING REVENUES Contributions $ 45,403,849 $ 34,254,356 $ 11,410,538 $ 2,424,200 $ 93,492,943 Retrospective adjustments, net Miscellaneous Income 538, , ,993 10,699 1,189,888 Total Operating Revenues 45,942,736 34,511,665 11,793,531 2,434,899 94,682,831 OPERATING EXPENSES Coverages: Claim payments 37,364,372 22,353,347 2,319,948-62,037,667 Change in claim reserves ( 8,131,856 ) 952, ,000 ( 6,653,288 ) Claims administration 2,448,000 2,218, ,666,919 State assessment - 568, ,109 Excess and re-insurance premiums 7,853, ,654 8,351, ,947 17,777,828 Broker fees 136, , ,000 30, ,656 - Contractual services: - Legal services 82,564 16,529 6,610 2, ,326 Investment and bank services 124, ,205-5, ,744 Technology support 226, ,928-12, ,734 Risk management evaluations 44,030 33,622-2,392 80,044 Loss control services 448, ,584-23, ,573 Audit services 48,142 30,133-1,081 79,356 Actuarial services 28,278 21, ,872 Employment law resource 119, ,021 Other contractual services 158, ,210 68,996 7, ,216 General and administrative: Salaries and employee benefits 2,364,154 2,091, , ,189 5,054,429 Office expenses 200, ,129 3,462 11, ,000 Conference, training and meetings 1,136, ,339 8,115 61,513 2,079,229 Depreciation 441, , ,939 Utilities and miscellaneous expenses 185, , , ,030 TOTAL OPERATING EXPENSES 45,278,208 31,525,285 11,552,316 1,710,595 90,066,404 OPERATING INCOME (LOSS) 664,528 2,986, , ,304 4,616,427 NON-OPERATING REVENUES (EXPENSES) Investment income 2,087,463 2,019,238 3,550-4,110,251 Unrealized gain (loss) on investments ( 2,404,404 ) ( 2,048,196 ) - - ( 4,452,600 ) TOTAL NON-OPERATING REVENUES (EXPENSES) ( 316,941 ) ( 28,958 ) 3,550 - ( 342,349 ) CHANGE IN NET POSITION 347,587 2,957, , ,304 4,274,078 BEGININNING NET POSITION 64,998,069 37,000,648 2,851, ,850,715 PRIOR PERIOD ADJ ACCOUNTING CHANGE ENDING NET POSITION $ 65,345,655 $ 39,958,070 $ 3,096,762 $ 724,304 $ 109,124,791 11/7/17 Inc Stmt 88

89 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS COMMITTEE AND FINANCE OFFICERS COMMITTEE Jonathan Shull, Chief Executive Officer Denise Covell, Administrative Assistant Date: November 13, 2017 Subject: Meeting Dates for 2018 To assist Committee Members with planning and scheduling for the 2018 calendar year, a list of meeting dates for the Managers Committee and Finance Officers Committee are listed below. Meetings will take place on the regular recurring frequency as noted for each committee, with noted exceptions, and will fall on the following dates: Managers Committee (second Monday of the month at 12:00 p.m.) January 8, 2018 July 9, 2018 February 12, 2018 August 13, 2018 March 12, 2018 September 10, 2018 April 9, 2018 October 8, May 14, 2018 November 12, 2018 (Combined Managers/Finance) June 11, 2018 December 10, 2018 Finance Officers Committee (second Thursday of the month at 12:00 p.m.) January 11, 2018 July 12, 2018 February 8, 2018 August 9, 2018 March 8, 2018 September 13, 2018 April 12, 2018 October 11, 2018 May 3, 2018 (First Thursday of the month) November 12, 2018 (Combined Managers/Finance) June 14, 2018 December 13, Conferences League of California Cities City Managers Department Meeting (Newport Beach): January 31 - February 2, 2018 PARMA (Monterey): February 14-16,

90 2018 Committee Meeting Dates November 13, 2017 Page 2 CSMFO Conference (Riverside): February 20-23, 2018 GFOA Conference (St. Louis, MO): May 6-9, 2018 Contract Cities Annual Municipal Seminar (Indian Wells): May 17-20, 2018 CAJPA Risk Management Conference (Lake Tahoe): September 11-14, 2018 League of California Cities Conference (Long Beach): September 12-14, 2018 California JPIA Risk Management Educational Forum (Carlsbad): September 19-21, 2018 ICMA Annual Conference (Baltimore, MD): September 23-26, 2018 Recommended Action Receive and file. 90

91 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEES Jonathan Shull, Chief Executive Officer Alexander Smith, Chief Financial Officer Date: November 13, 2017 Subject: Investment Performance Review for the Quarter Ended September 30, 2017 Each quarter, the Authority s investment advisor, PFM Asset Management (PFM), reviews the performance of the Authority s investment portfolio relative to a custom benchmark. For the quarter ended September 30, 2017 the portfolio returned +0.37%, while the benchmark returned +0.33%. These are total returns for the quarter and they are not annualized. Since inception in 2007, the portfolio has outperformed the benchmark by 26 basis points. The full report from PFM is attached, which includes a series of charts and graphs displaying relevant economic data and investment strategy. Recommended Action Receive and file. 91

92 California Joint Powers Insurance Authority Investment Performance Review For the Quarter Ended September 30, 2017 PFM Asset Management LLC PFM 601 S. Figueroa Suite 4500 Los Angeles, CA T: (213)

93 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2017 Fixed Income Management SUMMARY For the first time since 2007, all 45 national economies in the OECD (Organisation for Economic Co-operation and Development) are expanding. Against the backdrop of historically low interest rates, reasonably favorable economic data, and positive consumer, business and investor optimism, the U.S. economy is on track to grow at a modest pace in the range of 2% to 2.5% annually. Although the current slow rate of inflation remains a conundrum, the Federal Reserve (Fed) is pursuing monetary policy normalization. At its September meeting, the Federal Open Market Committee (FOMC) announced a tapering of its balance sheet securities holdings to begin in October under the terms of the previously released normalization principles and plans. In addition, the updated dot plot projection indicated an expectation for one additional rate hike in Slow progress on the policy front in Washington has somewhat tempered investors earlier exuberance, but markets retain an air of complacency. Numerous geopolitical risks loom, however, including mounting nuclear tensions with North Korea, trade issues related to NAFTA and China, border and immigration issues, ongoing conflicts with Russia, and the Brexit implementation in the UK. U.S. equity markets marched to new heights with the S&P 500 rising 4.5% during the quarter. All three major U.S. indices booked record highs, with the telecommunications, information technology, and energy sectors in the lead. ECONOMIC SNAPSHOT Second quarter gross domestic product (GDP) accelerated to an annualized growth rate of 3.1%, up from the prior quarter s 1.4% pace. Consumer spending and business investment led the increase. Heavy Gulf Coast damage from recent hurricanes are expected to handicap near-term growth and create noise in upcoming economic data, but weather-related impacts are usually transitory. The U.S. economy added less than 100,000 jobs per month (on average) in the third quarter, but the unemployment rate fell to 4.2%, the lowest rate since Jobless claims spiked following the hurricane disruption, but the uptick is expected to be temporary. In a positive sign, wage growth rose 2.9% year-over-year through September but may also have been distorted by the hurricanes. Inflationary pressures remained subdued. The personal consumption expenditures price index, excluding food and energy, (core PCE), rose only 1.3% year-over-year in August, well short of the Fed s 2% target the explanation for which continues to elude Fed officials. Absent evidence that the weakness is permanent, however, the Fed s outlook remains stable. On the global front, growth in Europe has picked up, with unemployment in some countries at record lows, while inflation (outside the UK) remains very muted. INTEREST RATES Shorter-term Treasury yields (five years and under) rose in the third quarter on the expectation of further monetary policy tightening. Long-term Treasury yields (10 years and longer) rose just a couple basis points. This continued the trend of modest flattening of the Treasury yield curve since the beginning of the year. The two-year Treasury yield ended the quarter higher by 11 basis points (bps) (0.11%) to 1.49% the highest level since 2008 while the 10-year Treasury yield rose only 2 bps (0.02%) over the quarter to close at 2.33%. In the money market space, federal debt ceiling concerns resulted in a temporary inversion of the short-term yield curve. The higher risk associated with Treasuries maturing in early October and the expected date for the U.S. Treasury to run out of borrowing capacity translated into higher yields for those maturities. But, the yield curve quickly normalized after Congress passed an extension to the debt limit until December, along with a hurricane aid package and a temporary resolution to fund the government for three months. In the short-term credit markets, yields on commercial paper and bank CDs rose in lockstep with expectations about future Fed rate hikes. SECTOR PERFORMANCE U.S. Treasury index returns were positive for the third quarter. Flattening of the yield curve caused longer maturities to outperform shorter ones as the increase in short-term rates modestly detracted from returns for the quarter. Federal agencies outperformed comparable-maturity Treasuries while the sector s already-narrow yield spreads tightened even further on the back of limited supply and persistent investor demand. Corporate yield spreads continued tightening, generating outperformance over comparable-maturity Treasuries for the quarter and even more so year-to-date. Strong earnings growth and balance sheets continue to provide a good foundation for the sector. Yield spreads are narrow, which limits their upside, but the incremental income on corporates is an important contributor to incremental return. After three straight quarters of underperformance, the mortgage-backed securities (MBS) sector performed well in the third quarter, outperforming Treasuries and traditional agencies. High quality asset-backed securities (ABS) also performed positively relative to Treasuries. Further spread compression in the ABS sector is likely to be limited, given that current level spreads sit at historically tight levels. Short-term commercial paper and bank CDs continue to offer value relative to both short- and intermediate-term government securities. PFM Asset Management LLC 93

94 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2017 Fixed Income Management Economic Snapshot Labor Market Latest Jun '17 Sep '16 Unemployment Rate Change In Nonfarm Payrolls Sep'17 4.2% 4.4% 4.9% Sep'17-33, , ,000 6% Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate 450K 300K Average Hourly Earnings (YoY) Sep'17 2.9% 2.5% 2.7% 5% 150K Personal Income (YoY) Aug'17 2.8% 2.7% 2.4% Initial Jobless Claims (week) 10/7/17 243, , , % -150K Sep '14 Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Growth Real GDP (QoQ SAAR) 2017Q2 3.1% 1.2% 2.2% GDP Personal Consumption (QoQ SAAR) 2017Q2 3.3% 1.9% 3.8% % 4% Real GDP (QoQ) Retail Sales (YoY) Sep'17 4.4% 3.0% 3.1% ISM Manufacturing Survey (month) Sep' Existing Home Sales SAAR (month) Aug' mil mil mil. 2% 0% Jun '14 Dec '14 Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Inflation / Prices Personal Consumption Expenditures (YoY) Aug'17 1.4% 1.4% 1.4% Consumer Price Index (YoY) Sep'17 2.2% 1.6% 1.5% Consumer Price Index Core (YoY) Sep'17 1.7% 1.7% 2.2% 3% 2% 1% Consumer Price Index CPI (YoY) Core CPI (YoY) Crude Oil Futures (WTI, per barrel) Sep 30 $51.67 $46.04 $48.24 Gold Futures (oz.) Sep 30 $1,282 $1,242 $1,313 0% -1% Sep '14 Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 1. Data as of First Quarter Data as of Second Quarter Note: YoY = year-over-year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil. Source: Bloomberg. PFM Asset Management LLC 94

95 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2017 Fixed Income Management Interest Rate Overview U.S. Treasury Note Yields U.S. Treasury Yield Curve Yield 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 3/31/17 6/30/17 9/30/17 2-Year 5-Year 10-Year Yield 4% 3% 2% 1% 0% 3-yr 2-yr 1-yr 3-mo 5-yr 7-yr 10-yr Maturity September 30, 2017 December 30, 2016 September 30, yr U.S. Treasury Yields Yield Curves as of 9/30/17 Maturity Sep '17 Jun '17 Change over Quarter Sep '16 Change over Year 3-month 1.05% 1.01% 0.04% 0.28% 0.77% 1-year 1.29% 1.23% 0.06% 0.59% 0.70% 2-year 1.49% 1.38% 0.11% 0.76% 0.73% 5-year 1.94% 1.89% 0.05% 1.15% 0.79% 10-year 2.33% 2.31% 0.02% 1.60% 0.73% 30-year 2.86% 2.84% 0.02% 2.32% 0.54% Yield 5% 4% 3% 2% 1% 0% 3-yr 2-yr 1-yr 3-mo 5-yr 7-yr 10-yr Maturity U.S. Treasury Federal Agency Industrial Corporates, A Rated 25-yr 30-yr Source: Bloomberg. PFM Asset Management LLC 95

96 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2017 Fixed Income Management BofA Merrill Lynch Index Returns September 30, 2017 Duration Yield 3 Months 1 Year 3 Years 1-3 Year Indices U.S. Treasury % 0.24% 0.24% 0.76% Federal Agency % 0.28% 0.50% 0.91% U.S. Corporates, A-AAA rated % 0.56% 1.43% 1.61% Agency MBS (0 to 3 years) % 0.36% 0.42% 1.32% Taxable Municipals % 1.02% 1.67% 2.13% 1-5 Year Indices U.S. Treasury % 0.29% (0.06%) 1.20% Federal Agency % 0.32% 0.38% 1.21% U.S. Corporates, A-AAA rated % 0.69% 1.37% 2.18% Agency MBS (0 to 5 years) % 0.58% 0.01% 1.83% Taxable Municipals % 0.88% 1.24% 2.59% Master Indices (Maturities 1 Year or Greater) U.S. Treasury % 0.39% (1.74%) 2.19% Federal Agency % 0.51% 0.02% 1.97% U.S. Corporates, A-AAA rated % 1.18% 1.27% 3.83% Agency MBS (0 to 30 years) % 0.92% 0.28% 2.41% Taxable Municipals % 2.52% 1.11% 5.90% Returns for periods greater than one year are annualized. Source: BofA Merrill Lynch Indices. As of 9/30/17 Returns for Periods ended 9/30/17 PFM Asset Management LLC 96

97 Interest Rate Update Two-year Treasury yields moved modestly higher towards the end of the quarter, possibly due to heightened expectations of another rate hike and a tax overhaul that could increase government borrowing. 1.60% 2-Year Treasury Yields September 30, 2016 September 30, % 1.20% Presidential Election 1.00% 0.80% Fed Rate Hike Fed Rate Hike Fed Rate Hike 0.60% 0.40% 0.20% 0.00% Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Source: Bloomberg, as of 9/30/17. PFM 97

98 Short-Term Yields Higher but Curve Flatter in Third Quarter Treasury yields are substantially higher compared to a year ago. Short-term yields continue to rise in response to the Fed raising rates in their efforts to normalize policy. Longer-term yields still remain relatively low in response to lower inflation and growth expectations. 2.5% 2.0% 1.5% 1.0% 0.5% U.S. Treasury Yield Curve Sep 30, 2017 Jun 30, 2017 Sep 30, 2016 Yield Curve History Maturity 6/30/17 9/30/17 Change 3-Mo Mo Yr Yr Yr Yr Yr % 3 m 1 y 2 y 3 y 5 y 7 y 10 y 20-Yr Yr Source: Bloomberg, as of 9/30/17. PFM 98

99 Economic Growth Gross domestic product (GDP) increased at an annualized rate of 3.0% in the third quarter of Third quarter GDP remained strong, supported by an increase in consumer and business spending, despite the impact from hurricanes Harvey and Irma. 6% 5% 4% 3% 2% 2.7% 2.7% U.S. Real GDP QoQ, SAAR 2.0% 1.9% 3.0% Bloomberg Survey of Economists 1% 0% -1% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Source: Bloomberg, as of 10/31/17. SAAR is seasonally adjusted annualized rate. Orange dashes denotes four-quarter averages. PFM 99

100 Labor Market Remains Strong Despite the Impact of Hurricanes The U.S. labor market lost 33,000 jobs in September. The first decline in U.S. nonfarm payrolls in seven years. Despite the impact of the hurricanes on the September job numbers, the headline unemployment rate ticked down to 4.2%, hitting the lowest level in more than 16 years. The U6 unemployment rate also decreased slightly from 8.6% in June to 8.3% in September, while the labor force participation rate ticked up from 62.8% in June to 63.1% in September. Average hourly earnings an important gauge of wage growth grew 2.9% over the past 12 months. Monthly Change in Nonfarm Payrolls Unemployment Rate 400k Nonfarm Payrolls 12-Month Moving Average 9% 300k 200k 8% 7% 7.8% 7.2% 100k 6% 5.9% 0k 5% 5.0% 4.9% 4.2% -100k Sep '12 Sep '13 Sep '14 Sep '15 Sep '16 Sep '17 Source: Bloomberg, as of September PFM 4% Sep '12 Sep '13 Sep '14 Sep '15 Sep '16 Sep '17 100

101 Inflation Steadies but Outlook Remains Weak Inflation pressures have declined from levels at the beginning of the year. The core personal consumption expenditures (PCE) price index, the Fed s preferred measure of inflation, slipped to 1.3% year-over-year in August. While some Fed officials expect this weakness to be transitory, the prospect for another rate hike in 2017 may be diminished should this trend continue. Although inflation expectations jumped following the U.S. election, the outlook has since softened, reflecting doubts in the administration s ability to implement its agenda. 2.5% Inflation Measures (YoY) 2.5% Expectations for Average Inflation Rate Over Next 5 Years 2.0% 2.0% 1.5% 1.5% 1.0% 0.5% Core CPI Core PCE Fed's Long Term Inflation Target 1.0% 0.0% Aug '12 Aug '13 Aug '14 Aug '15 Aug '16 Aug '17 0.5% Sep '12 Sep '13 Sep '14 Sep '15 Sep '16 Sep '17 Source: Bloomberg, as of 9/30/17. Inflation expectations based on yield difference between 5-year Treasury note and 5-year Treasury Inflation Protected Securities (TIPS). PFM 101

102 U.S. Recession Indicators: Low Risk in the Near-Term Year 3 Month Treasury Yield Spread (in bps) Yield Curve Inverts % 0% -10% -20% Industrial Production (YoY) % Conference Board Leading Indicators (SA, YoY) 800 Initial Jobless Claims (4-week average, in thousand) 10% 0% % % -30% Source: Bloomberg, as of 8/31/17. SA is seasonally adjusted. PFM

103 Probability of Fed Rate Hike at the December Meeting The probability of a third rate hike in 2017 at the FOMC s December meeting increased following their September meeting. The FOMC will initiate the balance sheet normalization program described in the June 2017 Addendum to the Committee s Policy Normalization Principles and Plans in October. 75% 60% 45% 30% 15% Historical Probability of December Rate Hike 22% 70% Probability of Fed Rate Hike Meeting Probability (25bps) 12/13/ % 1/31/ % 3/21/ % 0% 5/2/ % Jun '30 Jul '07 Jul '14 Jul '21 Jul '28 Aug '04 Aug '11 Aug '18 Aug '25 Sep '01 Sep '08 Sep '15 Sep '22 Sep '29 6/13/ % Source: Bloomberg, as of 9/30/2017. PFM 103

104 Third Quarter 2017 Recap Policy challenges in the U.S., combined with escalating tensions on the geopolitical front, led to bouts of uncertainty which triggered periods of risk-off and risk-on during the third quarter. Nonetheless, volatility remained low and equities continued to book new record highs, reflective of investor complacency. After three rate hikes since December 2016, the Federal Reserve (Fed) shifted gears and announced the beginning of their program to reduce the central bank s enormous balance sheet. The plan is to gradually reduce the Fed s securities holdings by decreasing its reinvestment of the principal payments on its large holdings of Treasury and agency mortgage-backed securities. Strong investor appetite for high-quality bonds generally caused the yield spreads on investment-grade fixed income sectors (relative to U.S. Treasuries) to tighten over the quarter. The yield spreads on federal agency securities vs. comparable-maturity Treasuries narrowed to historic lows, in some cases near zero, leading to diminished value of the agency sector. Supranationals carried more yield spread and offered an attractive alternative in the high-quality government agency space. Corporate yield spreads also tightened to multi-year lows as investors reaching for yield piled into a limited market supply of investment-grade securities. Despite weakening collateral metrics in some higher risk areas of the ABS sector (e.g., subprime auto loans which PFM does not purchase), higher quality prime auto loan and credit-card-backed tranches performed well, benefitting from higher initial yields. Without a clear trend in the direction of interest rates, we maintained the portfolio duration in line with the benchmark to minimize return volatility. PFM 104

105 Sector Allocation and Portfolio Compliance The portfolio is in compliance with the California Government Code and the Authority s Investment Policy. Security Type Market Value as of September 30, 2017 % of Investments % Change vs. 6/30/17 Permitted by Policy In Compliance U.S. Treasury $105,957, % -2.6% 100% Federal Agency $63,756, % +2.5% 100% Supranationals $5,971, % +1.9% 30% Negotiable CDs $42,560, % -4.9% 30% Corporate Notes $49,027, % -3.9% 30% Asset-Backed Securities $3,169, % +0.1% 10% Commercial Paper $16,481, % +1.8% 25% Securities Sub-Total $286,924, % Accrued Interest $1,141,279 Securities Total $288,065,510 LAIF $3,959, % -0.2% $65 million Money Market Fund $19,484 <1% -0.1% 20% LA County PIF $29,283, % +5.4% $30 million Total Liquidity $33,262, % Total Investments $321,328, % PFM 105

106 Portfolio Activity Sector diversification remains a dominant theme of PFM s strategy and is instrumental for striving to safely maximize investment returns for the Authority. $25 $20 +$22.2 +$19.9 New Purchases (millions) July 1 - September 30, 2017 Millions $15 $10 $5 +$6.0 +$12.6 +$13.6 $0 +$0.7 U.S. Treasury Federal Agency Supranationals Negotiable CDs Asset-Backed Securities Commercial Paper PFM 106

107 Total Return Our active management approach, which focuses on limiting downside risk, was able to generate a return 0.63% over the benchmark in the past year when the benchmark s performance was sharply negative. Since inception, the portfolio has outperformed its benchmark by an annual average of 0.26%. Duration Past Past Past 3 Past 5 Since (years) Quarter Year Years Years Inception California JPIA % 0.31% 1.61% 1.17% 3.06% Benchmark % -0.32% 1.38% 0.90% 2.80% Performance inception date is March 31, The Authority s custom benchmark consists of 25% of the Merrill Lynch 0-1 Year U.S. Treasury Index, 50% of the Merrill Lynch 1-5 Year Government Index, and 25% of the Merrill Lynch 5-10 Year Government Index. Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute s Global Investment Performance Standards (GIPS). Returns for periods less than a year are presented on an unannualized basis. Performance numbers for periods greater than one year are presented on an annualized basis. Bank of America Merrill Lynch Indices provided by Bloomberg Financial Markets. Excludes LAIF and LA County Pool in performance and duration computations. Effective duration is the change in price for a 1% change in yield while also taking into account the likelihood of options such as calls and paydowns for mortgage-backed securities being exercised. PFM 107

108 Issuer Distribution The Authority s portfolio is well diversified. Corporate (15.3%) Oracle 1.70% Wells Fargo 1.50% JP Morgan Chase 1.50% Bank of New York 1.50% Cisco Systems 1.40% Chevron 1.10% Apple 1.00% American Express 0.90% Berkshire Hathaway 0.90% Microsoft 0.80% Toyota Motor CC 0.80% American Honda Finance 0.80% General Electric CC 0.70% Burlington North 0.40% John Deere Capital 0.20% Unilever Capital 0.10% Commercial Paper (5.1%) BNP Paribas 1.60% ING Funding 1.40% Credit Agricole 1.30% Bank of Tokyo Mitsubishi 0.90% IBRD 1.9% FNMA 13.9% LAIF 1.2% LACPIF 9.1% FHLMC 4.2% FHLB 1.8% U.S. Treasury 33.1% ABS (1.0%) Honda 0.80% John Deere 0.20% CD s (13.3%) Bank of Nova Scotia 1.60% Skandinav Enskilda Banken 1.60% Svenska Handelsbanken (NY) 1.50% Bank of Montreal 1.50% Westpac Banking 1.40% Sumitomo Mitsui Bank 1.30% Canadian Imperial Bank (NY) 1.20% Nordea Bank Finland (NY) 1.20% Royal Bank of Canada (NY) 1.20% Bank of Tokyo Mitsubishi (CD) 0.90% Percentages of market values excluding accrued interest. Percentages may not add to totals due to rounding PFM 108

109 Credit Quality The Authority s portfolio comprises high-quality securities. AAA/AAAm 4% A-1 6% Not Rated (LA County PIF/LAIF) 10% AA 65% A 15% Ratings by Standard & Poor s. PFM 109

110 Sector Distribution by Maturity 25% 1% 20% 7% % of Total Portfolio 15% 10% 5% 9% 2% 11% 1% 7% 1% 4% 5% 1% 1% 4% 5% 0% 11% 7% 8% 7% 1% 1% 3% 1% 1% Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5 Years and Over Money Market Fund LAIF U.S. Treasury Federal Agency Negotiable CDs Corporate Notes LA County Pool Investment Fund Commercial Paper Asset-Backed Securities Supranational Callable and floating-rate securities are included in the maturity distribution analysis to their stated maturity date. Percentages may not add to totals due to rounding. PFM 110

111 Maturity Distribution We continued to underweight investments over five years to limit the portfolio s exposure to the volatility in longer maturities. 30% 28% % of Total Portfolio 25% 20% 15% 10% June 30, 2017 September 30, 2017 Custom Benchmark 17% 16% 11% 12% 12% 16% 16% 21% 25% 13% 18% 17% 17% 13% 10% 10% 12% 10% 5% 0% Percentages may not add to 100% due to rounding. Callable and floating-rate securities are included in the maturity distribution analysis to their stated maturity date. PFM 4% 1% Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5 Years and Over 111

112 Current Outlook and Strategy Although current low inflation is a conundrum, recent signaling from Fed officials boosted expectations for another rate hike this year, raising the market-implied probability of a December hike from 30% mid-third quarter to over 70%. With 2-year Treasury yields at the highest level since 2008, we plan to maintain the portfolio duration generally in line with the benchmark. However, the significant flattening of the yield curve since the beginning of the year has reduced the benefit of some maturity extensions, so we will carefully assess value along the yield curve. As we near the end of Janet Yellen s term as Chair of the Federal Reserve, which will expire early next year, we will assess the market implications of all new appointees to the Fed (there will be a total of 4 openings on the Fed s 7- member Board of Governors). Our prevailing economic theme includes moderate growth expectations in the U.S. and abroad, further improvements in the tightening U.S. labor market, healthy consumer demand, and a stable corporate backdrop. On the policy front, the potential for tax reform is worth watching, as will be the debt ceiling debate, which will resurface in December. PFM 112

113 Current Outlook and Strategy cont d Our outlook on each of the major investment-grade fixed income sectors is as follows: Limited supply and robust demand are likely to keep yield spreads on federal agencies tight. Generally, we favor U.S. Treasuries over agencies, except for new issues that offer a fair yield concession. Supranationals remain an attractive alternative. Corporate fundamentals remain stable, and we continue to view the sector positively. However, recent richness in the sector warrants being more selective with industries, issuers, and individual issues. In the credit space, we find that negotiable certificates of deposit (CDs) offer the best value, especially in the 2-year and under maturity range. ABS continue to offer opportunity for modest incremental yield. We continue to closely monitor developments in the underlying collateral. Our view is less optimistic on the MBS sector as the Fed s balance sheet reduction in this area should put upward pressure on yields. Shorter, more stable structures may offer opportunities, but supply is very limited. PFM 113

114 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 12/31/ % 12/31/ UE8 1,820, AA+ Aaa 09/06/17 09/07/17 1,817, , ,818, ,818, DTD 04/30/ % 04/30/ K58 4,465, AA+ Aaa 02/01/16 02/03/16 4,488, , ,479, ,442, DTD 05/17/ % 05/15/ ND8 2,500, AA+ Aaa 05/28/15 05/29/15 2,737, , ,627, ,624, DTD 05/31/ % 05/31/ VF4 2,570, AA+ Aaa 05/22/15 05/26/15 2,545, , ,556, ,556, DTD 05/31/ % 05/31/ VF4 8,900, AA+ Aaa 12/02/15 12/04/15 8,828, , ,857, ,852, DTD 06/30/ % 06/30/ XH8 4,950, AA+ Aaa 11/01/16 11/02/16 5,031, , ,011, ,954, DTD 10/31/ % 10/31/ WC0 1,350, AA+ Aaa 01/06/16 01/11/16 1,354, , ,352, ,354, DTD 12/02/ % 11/30/ A42 2,500, AA+ Aaa 02/26/15 02/27/15 2,546, , ,526, ,525, DTD 01/31/ % 01/31/ N89 4,750, AA+ Aaa 05/26/16 05/27/16 4,753, , ,752, ,699, DTD 03/31/ % 03/31/ Q37 3,925, AA+ Aaa 03/15/17 03/17/17 3,813, ,827, ,861, DTD 05/02/ % 04/30/ Q78 2,300, AA+ Aaa 06/27/16 06/29/16 2,342, , ,331, ,270, DTD 05/31/ % 05/31/ R77 1,600, AA+ Aaa 08/02/17 08/03/17 1,582, , ,583, ,578, DTD 08/01/ % 07/31/ S76 3,100, AA+ Aaa 07/24/17 07/25/17 3,030, , ,033, ,024, DTD 08/15/ % 08/15/ RC6 700, AA+ Aaa 07/12/16 07/13/16 734, , , ,

115 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 09/02/ % 08/31/ D72 1,220, AA+ Aaa 08/12/15 08/13/15 1,237, , ,231, ,229, DTD 09/02/ % 08/31/ D72 4,650, AA+ Aaa 12/01/16 12/05/16 4,666, , ,663, ,687, US TREASURY N/B DTD 09/30/ % 09/30/ T34 3,700, AA+ Aaa 08/03/17 08/04/17 3,614, ,617, ,602, DTD 10/31/ % 10/31/ F96 4,250, AA+ Aaa 01/03/17 01/05/17 4,259, , ,258, ,280, DTD 10/31/ % 10/31/ F96 4,400, AA+ Aaa 04/03/17 04/05/17 4,427, , ,424, ,431, DTD 12/31/ % 12/31/ G87 4,635, AA+ Aaa 09/22/16 09/23/16 4,840, , ,801, ,687, DTD 01/31/ % 01/31/ V72 5,865, AA+ Aaa 07/06/17 07/11/17 5,854, , ,854, ,867, DTD 03/02/ % 02/28/ J43 3,925, AA+ Aaa 03/15/17 03/17/17 3,852, , ,860, ,905, US TREASURY N/B NOTES DTD 06/30/ % 06/30/ XG0 2,850, AA+ Aaa 08/30/17 08/31/17 2,902, , ,901, ,877, DTD 08/15/ % 08/15/ TJ9 1,450, AA+ Aaa 07/12/16 07/13/16 1,480, , ,474, ,431, DTD 08/15/ % 08/15/ TJ9 2,600, AA+ Aaa 11/05/15 11/09/15 2,543, , ,558, ,566, DTD 09/30/ % 09/30/ L57 750, AA+ Aaa 11/24/15 11/25/15 738, , , DTD 11/15/ % 11/15/ TY6 1,100, AA+ Aaa 12/01/16 12/05/16 1,068, , ,072, ,082, DTD 12/31/ % 12/31/ N30 2,500, AA+ Aaa 02/01/16 02/03/16 2,573, , ,556, ,518,

116 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note DTD 02/15/ % 02/15/ UN8 2,000, AA+ Aaa 02/26/15 02/27/15 2,019, , ,013, ,001, DTD 05/15/ % 05/15/ VB3 1,240, AA+ Aaa 03/26/15 03/27/15 1,225, , ,229, ,221, DTD 05/15/ % 05/15/ VB3 1,250, AA+ Aaa 07/10/15 07/13/15 1,207, , ,218, ,231, DTD 08/15/ % 08/15/ VS6 1,100, AA+ Aaa 12/01/16 12/05/16 1,117, , ,115, ,128, DTD 08/15/ % 08/15/ VS6 1,110, AA+ Aaa 04/28/15 04/30/15 1,164, , ,149, ,138, DTD 08/15/ % 08/15/ VS6 1,215, AA+ Aaa 07/10/15 07/13/15 1,238, , ,232, ,246, DTD 11/15/ % 11/15/ WE6 1,350, AA+ Aaa 07/12/16 07/13/16 1,481, , ,460, ,403, DTD 08/15/ % 08/15/ D56 1,100, AA+ Aaa 12/01/16 12/05/16 1,101, , ,101, ,115, DTD 08/15/ % 08/15/ D56 1,335, AA+ Aaa 07/10/15 07/13/15 1,338, , ,338, ,353, US TREASURY N/B NOTES DTD 08/31/ % 08/31/ U3 2,000, AA+ Aaa 08/30/17 08/31/17 1,987, , ,987, ,964, DTD 11/17/ % 11/15/ G38 925, AA+ Aaa 07/12/16 07/13/16 983, , , , DTD 08/17/ % 08/15/ K74 975, AA+ Aaa 07/12/16 07/13/16 1,016, , ,011, , DTD 08/17/ % 08/15/ K74 1,100, AA+ Aaa 12/01/16 12/05/16 1,063, , ,066, ,081, Security Type Sub-Total 106,025, ,612, , ,402, ,957,

117 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Supra-National Agency Bond / Note INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/ % 09/12/ UP32 3,000, NR Aaa 09/12/17 09/19/17 2,992, , ,992, ,974, INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 01/26/ % 01/26/ FY4 3,000, NR Aaa 09/06/17 09/08/17 3,033, , ,033, ,997, Security Type Sub-Total 6,000, ,026, , ,025, ,971, Federal Agency Bond / Note FREDDIE MAC (EX-CALLABLE) NOTES DTD 01/30/ % 07/30/ G3JM3 1,000, AA+ Aaa 03/14/13 03/20/13 1,012, , ,003, ,007, FNMA BENCHMARK NOTE DTD 08/02/ % 08/02/ G0N33 850, AA+ Aaa 07/29/16 08/02/16 848, , , , FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 2,650, AA+ Aaa 07/24/17 07/25/17 2,646, , ,646, ,642, FREDDIE MAC NOTES DTD 07/19/ % 08/15/ EAEH8 5,000, AA+ Aaa 08/03/17 08/04/17 4,995, , ,995, ,984, FHLB NOTES DTD 11/17/ % 11/15/ AA3R7 845, AA+ Aaa 11/16/16 11/17/16 844, , , , FNMA BENCHMARK NOTE DTD 11/07/ % 11/26/ G0ZY2 3,750, AA+ Aaa 12/01/14 12/03/14 3,774, , ,760, ,764, FANNIE MAE (EX-CALLABLE) NOTES DTD 02/07/ % 02/07/ FTB73 1,000, AA+ Aaa 03/14/13 03/20/13 1,010, , ,000, ,006, FNMA NOTES DTD 02/28/ % 02/28/ G0T29 3,005, AA+ Aaa 02/24/17 02/28/17 3,003, , ,003, ,997, FHLMC AGENCY NOTES DTD 04/20/ % 04/20/ EAEF2 4,750, AA+ Aaa 04/19/17 04/20/17 4,733, , ,736, ,719, FNMA NOTES DTD 08/01/ % 07/30/ G0T60 5,085, AA+ Aaa 07/28/17 08/01/17 5,069, , ,070, ,057,

118 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FHLB NOTES DTD 09/08/ % 09/28/ ACE26 2,000, AA+ Aaa 09/28/17 09/29/17 1,982, ,982, ,980, FHLB NOTES DTD 09/08/ % 09/28/ ACE26 3,125, AA+ Aaa 09/07/17 09/08/17 3,114, ,115, ,095, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 1,950, AA+ Aaa 07/07/16 07/08/16 2,019, , ,000, ,960, FNMA BENCHMARK NOTES DTD 11/16/ % 12/28/ G0H55 2,750, AA+ Aaa 02/01/16 02/03/16 2,804, , ,786, ,764, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 1,885, AA+ Aaa 08/17/16 08/19/16 1,878, , ,879, ,844, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 3,000, AA+ Aaa 09/01/16 09/02/16 2,981, , ,985, ,935, FNMA NOTES DTD 08/19/ % 08/17/ G0N82 6,115, AA+ Aaa 08/17/16 08/19/16 6,090, , ,095, ,983, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 1,670, AA+ Aaa 06/27/17 06/29/17 1,680, , ,680, ,674, FANNIE MAE AGENCY NOTES DTD 01/09/ % 01/05/ G0S38 2,000, AA+ Aaa 06/20/17 06/21/17 2,013, , ,012, ,005, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,000, AA+ Aaa 02/02/15 02/04/15 1,057, , ,042, ,022, FNMA BENCHMARK NOTES DTD 09/08/ % 09/06/ G0ZR7 1,910, AA+ Aaa 06/27/17 06/29/17 1,973, , ,970, ,953, FNMA NOTES DTD 04/26/ % 04/24/ G0K36 3,050, AA+ Aaa 04/25/16 04/26/16 3,026, , ,029, ,977, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 2,000, AA+ Aaa 08/30/17 08/31/17 1,932, ,933, ,898, FNMA BENCHMARK NOTE DTD 09/27/ % 09/24/ G0Q22 4,000, AA+ Aaa 09/26/16 09/27/16 3,983, , ,985, ,797,

119 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Security Type Sub-Total Corporate Note 64,390, ,478, , ,411, ,756, BERKSHIRE HATHAWAY NOTES DTD 05/15/ % 05/15/ BW0 520, AA Aa2 05/08/13 05/15/13 519, , , , CHEVRON CORP GLOBAL NOTES DTD 06/24/ % 06/24/ AE0 2,895, AA- Aa2 06/17/13 06/24/13 2,895, , ,895, ,897, BERKSHIRE HATHAWAY FIN GLOBAL NOTES DTD 08/15/ % 08/15/ BY6 900, AA Aa2 01/06/14 01/10/14 902, , , , CHEVRON CORP NOTES DTD 03/03/ % 02/28/ BS8 735, AA- Aa2 02/28/17 03/03/17 735, , , , CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/ % 03/01/ RAR3 2,460, AA- A1 03/23/15 03/26/15 2,511, , ,478, ,478, BERKSHIRE HATHAWAY INC NOTES DTD 03/15/ % 03/15/ CG4 410, AA Aa2 03/08/16 03/15/16 409, , , GENERAL ELECTRIC CAPITAL CORP NOTES DTD 08/07/ % 08/07/ G4D3 2,004, AA- A1 04/10/15 04/15/15 2,356, , ,158, ,158, BERKSHIRE HATHAWAY INC CORPORATE NOTES DTD 08/15/ % 08/15/ CK5 1,120, AA Aa2 08/08/16 08/15/16 1,118, , ,119, ,111, BURLINGTON NRTH CORP DTD 09/24/ % 10/01/ TBC7 1,320, A A3 06/03/16 06/08/16 1,457, , ,403, ,394, TOYOTA MOTOR CORP NOTES DTD 10/18/ % 10/18/ TDH5 2,550, AA- Aa3 10/13/16 10/18/16 2,548, , ,549, ,536, CISCO SYSTEMS INC CORP NOTE DTD 11/17/ % 01/15/ RAH5 1,750, AA- A1 09/20/16 09/23/16 1,913, , ,863, ,853, MICROSOFT CORP DTD 02/06/ % 02/06/ BV5 2,400, AAA Aaa 01/30/17 02/06/17 2,398, , ,398, ,409, APPLE INC BONDS DTD 02/09/ % 02/07/ AX8 3,330, AA+ Aa1 02/23/15 02/26/15 3,286, , ,309, ,313,

120 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note AMERICAN EXPRESS CREDIT CORP NOTES DTD 03/03/ % 03/03/ M0EE5 2,915, A- A2 02/28/17 03/03/17 2,911, , ,912, ,930, UNILEVER CAPITAL CORP BONDS DTD 05/05/ % 05/05/ AV9 340, A+ A1 05/02/17 05/05/17 338, , , , JOHN DEERE CAPITAL CORP NOTES DTD 06/22/ % 06/22/ ETS8 580, A A2 06/19/17 06/22/17 579, , , , WELLS FARGO & COMPANY NOTES DTD 07/22/ % 07/22/ BGM6 4,600, A A2 09/08/16 09/13/16 4,731, , ,696, ,664, JP MORGAN CHASE & CO NOTES DTD 07/22/ % 07/22/ HHS2 4,600, A- A3 09/08/16 09/13/16 5,016, , ,906, ,885, BANK OF NEW YORK MELLON CORP DTD 02/19/ % 04/15/ FAA1 4,875, A A1 09/06/17 09/08/17 4,965, , ,963, ,923, ORACLE CORP BONDS DTD 07/08/ % 07/08/ XBA2 5,310, AA- A1 02/01/17 02/03/17 5,409, , ,395, ,430, AMERICAN HONDA FINANCE CORP NOTES DTD 09/09/ % 09/09/ WBG5 2,600, A+ A1 09/06/17 09/08/17 2,574, , ,574, ,550, Security Type Sub-Total 48,214, ,581, , ,109, ,027, Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER DTD 06/20/ % 12/21/ BZM5 5,000, A-1 P-1 06/20/17 06/21/17 4,964, ,984, ,985, CREDIT AGRICOLE CIB NY COMM PAPER DTD 07/24/ % 01/25/ UAR4 4,050, A-1 P-1 07/25/17 07/25/17 4,021, ,031, ,032, BANK OF TOKYO MITSUBISHI UFJ LTD CP DTD 05/11/ % 02/05/ CB59 3,000, A-1 P-1 08/08/17 08/09/17 2,978, ,985, ,985, ING (US) FUNDING LLC COMM PAPER DTD 08/07/ % 02/05/ W1B54 4,500, A-1 P-1 09/06/17 09/07/17 4,473, ,478, ,478, Security Type Sub-Total 16,550, ,438, ,479, ,481,

121 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit ROYAL BANK OF CANADA NY CD DTD 03/15/ % 03/09/ NZZ2 3,960, A-1+ P-1 03/11/16 03/15/16 3,960, , ,960, ,965, CANADIAN IMPERIAL BANK NY CD DTD 12/05/ % 11/30/ A5Z7 3,750, A+ A1 12/01/16 12/05/16 3,747, , ,748, ,759, NORDEA BANK FINLAND NY CD DTD 12/05/ % 11/30/ LWA6 3,750, AA- Aa3 12/01/16 12/05/16 3,750, , ,750, ,759, SVENSKA HANDELSBANKEN NY LT CD DTD 01/12/ % 01/10/ JHB8 4,700, AA- Aa2 01/10/17 01/12/17 4,700, , ,700, ,684, BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/ % 02/07/ KRC3 4,700, A+ A1 02/08/17 02/09/17 4,700, , ,700, ,719, BANK OF NOVA SCOTIA HOUSTON LT CD DTD 04/06/ % 04/05/ GUE6 5,100, A+ A1 04/05/17 04/06/17 5,100, , ,100, ,093, SUMITOMO MITSUI BANK NY CD DTD 05/04/ % 05/03/ YVN0 4,000, A A1 05/03/17 05/04/17 4,000, , ,000, ,007, SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/ % 08/02/ FXT3 5,200, A+ Aa3 08/03/17 08/04/17 5,197, , ,198, ,195, BANK TOKYO MITSUBISHI UFJ LTD LT CD DTD 09/27/ % 09/25/ RGM3 2,865, A+ A1 09/25/17 09/27/17 2,865, ,865, ,864, WESTPAC BANKING CORP NY CD DTD 08/07/ % 08/03/ T4A3 4,490, AA- Aa3 08/03/17 08/07/17 4,490, , ,490, ,511, Security Type Sub-Total 42,515, ,510, , ,511, ,560, Asset-Backed Security / Collateralized Mortgage Obligation HONDA ABS A3 DTD 06/27/ % 08/15/ BAC8 2,450, AAA Aaa 06/20/17 06/27/17 2,449, , ,449, ,445, JOHN DEERE ABS 2017-B A3 DTD 07/15/ % 10/15/ BAD6 725, NR Aaa 07/11/17 07/18/17 724, , , Security Type Sub-Total 3,175, ,174, , ,174, ,169,

122 Managed Account Detail of Securities Held For the Month Ending September 30, 2017 CALIFORNIA JOINT POWERS INSURANCE AUTH Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Managed Account Sub-Total 286,869, ,821, ,141, ,115, ,924, Securities Sub-Total Accrued Interest Total Investments $286,869, $288,821, % $1,141, $288,115, $286,924, $1,141, $288,065,

123 Disclosures PFM is the marketing name for a group of affiliated companies providing a range of services. Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment Advisers Act of Additional applicable regulatory information is available upon request. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue, and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable. No representation is made as to its accuracy or completeness. This material is intended for informational purposes only and should not be relied upon to make an investment decision, as it was prepared without regard to any specific objectives or financial circumstances. It should not be construed as an offer to purchase/sell any investment. References to particular issuers are for illustrative purposes only, and are not intended to be recommendations or advice regarding such issuers. It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown. PFM Asset Management LLC has exercised reasonable professional care in the preparation of this performance report. However, information in this report on market indices and security characteristics, as well as information incorporated in the Market Commentary section, is received from sources external to PFM Asset Management LLC. PFM Asset Management LLC relies on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. For more information regarding PFM s services or entities, please visit PFM Asset Management LLC. Further distribution is not permitted without prior written consent. PFM 123

124 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEES Jonathan Shull, Chief Executive Officer Alexander Smith, Finance Director Date: November 13, 2017 Subject: Actuarial Study as of June 30, 2017 The Authority s consulting actuary, Milliman, has completed its study of the claim reserves as of June 30, A copy of the study is attached. In summary, the study estimates the Authority s outstanding claim liability to be $79.2 million in the primary liability program (PLP), $90.1 million in the primary workers compensation program (PWCP), and $419,000 in the excess liability program (ELP). On a combined basis the total outstanding claim liability is estimated to be $169.8 million. The outstanding claim liability as of June 30, 2017 has been discounted to present value based on the assumption that future investment earnings will be 2.0%. Comparison to previous estimates, as well as frequency and severity trend analysis will be provided by the actuary in the meeting. Detailed exhibits are also contained within the attached report. Recommended Action Receive and file. 124

125 CALIFORNIA JPIA AGENDA REPORT To: From: By: MANAGERS AND FINANCE OFFICERS COMMITTEES Jonathan Shull, Chief Executive Officer Alexander Smith, Finance Director Date: November 13, 2017 Subject: Annual Contribution Annual Contribution computations for have been completed and are attached for review. The Annual Contribution is a funding estimate for the upcoming coverage year, based on the actuary s projection of retained losses at the 75% confidence level. The funding estimate includes budget projections for excess and reinsurance premiums, broker fees, claim administration fees, operating expenses, and the state assessment for workers compensation. Budget projections are based on the best information available for each cost component at the time the calculation was made. Calculations were based on claims valued as of September 30, 2017, and include five coverage years of loss data: through Payroll figures are calendar 2016 data reported by members through the underwriting information report. The combined pool wide contribution for both programs is $85.2 million. This amount is $2.7 million or +3.3% higher than the previous year. The increase is primarily attributable to claims activity within the public safety pool of the workers compensation program. The table below illustrates the year-over-year changes in aggregate dollars but also changes in average rates per $100 of payroll. Please note: individual member rates can vary significantly from pool average rates. 125

126 Annual Contribution November 13, 2017 Page 2 Recommended Action It is recommended that the Managers and Finance Officers Committees review the annual contribution computations and recommend approval to the Executive Committee. 126

127 127

128 CALIFORNIA JPIA ANNUAL CONTRIBUTION STEPS IN THE CALCULATION PROCESS PLP Step Description 1 Funding Estimate Confidence Level Conversion Factors Cost Allocation Between Pools Change in Funding Estimate 2 Unlimited Share of Funding Cost Allocation Formula Payroll Credibility Factor Incurred Losses Off-Balance Factor #1 3 Limited Annual Contribution Volatility Bands Off-Balance Factor #2 Final Outcome Statistics 128

129 CALIFORNIA JPIA FUNDING ESTIMATE PLP Actuarial Projection of Retained Losses Confidence Level Conversion Factor Funding Amount Provision for Contingencies Expected $32,032,000 $0 55% ,211,000 1,179,000 60% ,447,000 2,415,000 65% ,748,000 3,716,000 70% ,151,000 5,119,000 75% ,650,000 6,618,000 80% ,354,000 8,322,000 85% ,385,000 10,353,000 90% ,999,000 12,967,000 95% ,041,000 17,009,000 General Government Police Total Rate per $100 of Payroll General Government Police Blended Percentage of retained losses allocated to each pool 76% 24% 100% Selected Projection of Retained Losses $ 29,374,000 $ 9,276,000 $ 38,650,000 $ 4.34 $ 8.99 $ 4.96 Expenses Percentage of expenses allocated to each pool 82% 18% 100% Excess and reinsurance premiums 4,577,200 1,004,800 5,582, Share of California JPIA operating expenses 4,372, ,800 5,332, Self-insured excess contribution Claims administration (included in retained losses) Broker fees 164,000 36, , Amount to/(from) net position Expense Subtotal 9,113,400 2,000,600 11,114, Total Funding Estimate $ 38,487,400 $ 11,276,600 $ 49,764,000 $ 5.69 $ $ 6.39 Calendar 2016 Payroll ,130, ,236, ,366,

130 CALIFORNIA JPIA CONFIDENCE LEVEL CONVERSION FACTORS FROM THE ACTUARY PLP Confidence 5-Year Level 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 Average Expected % % % % % % % % %

131 CALIFORNIA JPIA COST ALLOCATION BETWEEN POOLS GENERAL GOVERNMENT AND POLICE PLP Amount Allocation Calendar 2016 Payroll General Government $ 676,130,410 87% Police 103,236,229 13% 779,366, % Actuary's allocation of retained losses (5 year avg) General Government 24,344,320 76% Police 7,687,680 24% $ 32,032, % Weighted average used for allocation of expenses General Government 82% Police 18% 100% Actuary's Allocation of Retained Losses to Police 6/30/13 22% 6/30/14 23% 6/30/15 26% 6/30/16 26% 6/30/17 24% 5 Year Average 24% 131

132 CALIFORNIA JPIA CHANGE IN FUNDING ESTIMATE vs PLP Change % General Government Pool Payroll $ 668,847,777 $ 676,130,410 $ 7,282, % Funding Estimate 38,660,115 38,487,400 (172,715) -0.4% Rate per $100 of Payroll (0.09) -1.5% Police Pool Payroll 98,344, ,236,229 4,892, % Funding Estimate 10,917,700 11,276, , % Rate per $100 of Payroll (0.18) -1.6% Combined Pool Payroll 767,191, ,366,639 12,174, % Funding Estimate 49,577,815 49,764, , % Rate per $100 of Payroll (0.08) -1.2% Minimum Imputed Payroll Amount per Member 310, , % Number of Members % Total Minimum Imputed Payroll 2,790,000 2,790, % Modified General Govt. Payroll: (excludes minimum imputed payroll) 666,057, ,340,410 7,282, % Minimum Contribution $ 11,643 $ 11,466 $ (177) -1.5% Note: Prior year data has been modified to account for changes in membership 132

133 CALIFORNIA JPIA UNLIMITED SHARE OF FUNDING FOR GENERAL GOVERNMENT POOL BASED ON INCURRED LOSSES OVER A 5 YEAR PERIOD FROM THROUGH , VALUED AS OF SEPTEMBER 30, 2017 UNLIMITED SHARE OF FUNDING = [(A x B) + (C x (D x 67%)) + (C x (E x 33%))] x F PLP Full Standard $10,969,900 Incurred Losses Incurred Losses Payroll Credibility Factor Loss Layer 1 Loss Layer 2 F = % From $0 - $30,000 From $30,000 - $750,000 F is the Off-Balance Factor Unlimited Share of Funding Calendar % of Pool Applied to Applied to 5 Year % of Pool 5 Year % of Pool % of Pool 2016 Total Payroll Losses Total Total Total Total Total Amount MEMBER A B C D E 1 Agoura Hills $3,936, % % % $149, % $159, % 0.608% $234,003 2 AHCCC 518, % % % 14, % % 0.070% 26,941 3 Aliso Viejo 1,952, % % % 30, % 127, % 0.267% 102,761 4 Apple Valley 8,174, % % % 202, % 803, % 1.279% 492,254 5 Area B 310, % % % % % 0.033% 12,701 6 Area E 310, % % % % % 0.033% 12,701 7 Arroyo Grande 6,903, % % % 238, % 134, % 0.958% 368,709 8 Artesia 1,843, % % % 53, % 95, % 0.272% 104,686 9 Atascadero 7,271, % % % 82, % 92, % 0.604% 232, Bell Gardens 7,207, % % % 254, % 998, % 1.437% 553, Bellflower 8,984, % % % 203, % 377, % 1.050% 404, Big Bear City CSD 4,710, % % % 88, % 49, % 0.552% 212, Big Bear Fire Authority 761, % % % 22, % % 0.104% 40, Big Bear Lake 8,745, % % % 267, % 998, % 1.591% 612, Bishop 2,111, % % % 32, % % 0.258% 99, Black Gold CLS 454, % % % % % 0.048% 18, Bradbury 984, % % % % % 0.105% 40, Brawley 7,806, % % % 220, % 182, % 0.968% 372, Buellton 1,593, % % % 70, % 38, % 0.250% 96, Calabasas 8,955, % % % 290, % 561, % 1.396% 537, Camarillo 13,152, % % % 362, % 925, % 1.936% 745, Carpinteria 3,096, % % % 119, % 183, % 0.492% 189, CASA 632, % % % 62, % 32, % 0.138% 53, Cerritos 18,594, % % % 1,340, % 465, % 4.452% 1,713, Chino Hills 13,536, % % % 616, % 592, % 2.430% 935, Claremont 10,687, % % % 1,024, % 336, % 3.284% 1,263, CVAG 1,662, % % % 37, % % 0.214% 82, CVCC 310, % % % % % 0.033% 12, Dana Point 6,900, % % % 238, % 59, % 0.922% 354, Desert Rec 4,770, % % % 99, % 123, % 0.597% 229, Diamond Bar 6,198, % % % 297, % 293, % 1.100% 423,

134 CALIFORNIA JPIA UNLIMITED SHARE OF FUNDING FOR GENERAL GOVERNMENT POOL BASED ON INCURRED LOSSES OVER A 5 YEAR PERIOD FROM THROUGH , VALUED AS OF SEPTEMBER 30, 2017 UNLIMITED SHARE OF FUNDING = [(A x B) + (C x (D x 67%)) + (C x (E x 33%))] x F PLP Full Standard $10,969,900 Incurred Losses Incurred Losses Payroll Credibility Factor Loss Layer 1 Loss Layer 2 F = % From $0 - $30,000 From $30,000 - $750,000 F is the Off-Balance Factor Unlimited Share of Funding Calendar % of Pool Applied to Applied to 5 Year % of Pool 5 Year % of Pool % of Pool 2016 Total Payroll Losses Total Total Total Total Total Amount MEMBER A B C D E 32 Duarte 4,684, % % % 184, % 145, % 0.721% 277, El Centro 12,091, % % % 211, % 614, % 1.310% 504, ESTA 1,886, % % % 90, % 35, % 0.300% 115, Fillmore 2,669, % % % 165, % 407, % 0.544% 209, Fountain Valley 15,909, % % % 354, % 2,159, % 2.750% 1,058, Gateway Cities COG 450, % % % % % 0.048% 18, Goleta 5,915, % % % 294, % 1,188, % 1.437% 553, Grand Terrace 1,091, % % % 37, % 155, % 0.189% 72, Grover Beach 2,811, % % % 118, % 154, % 0.454% 174, Guadalupe 1,410, % % % 41, % % 0.192% 73, Hawaiian Gardens 5,062, % % % 34, % 10, % 0.472% 181, Hidden Hills 321, % % % 4, % % 0.039% 15, Imperial 3,052, % % % 60, % 202, % 0.432% 166, Indian Wells 3,367, % % % 130, % 2,041, % 0.967% 372, Indio 13,390, % % % 232, % 588, % 1.389% 534, Irwindale 4,534, % % % 97, % 771, % 0.783% 301, La Canada Flintridge 2,959, % % % 294, % 853, % 0.807% 310, La Habra Heights 1,737, % % % 69, % 815, % 0.441% 169, LA IMPACT 310, % % % % % 0.033% 12, La Mirada 9,000, % % % 331, % 600, % 1.530% 588, La Palma 3,218, % % % % % 0.343% 132, La Puente 2,293, % % % 261, % 276, % 0.570% 219, La Quinta 6,430, % % % 218, % 826, % 1.204% 463, LA-RICS 310, % % % % % 0.033% 12, La Verne 11,098, % % % 382, % 519, % 1.683% 647, Laguna Niguel 6,647, % % % 177, % 482, % 0.982% 377, Laguna Woods 779, % % % 1, % % 0.084% 32, Lake Elsinore 5,842, % % % 444, % 592, % 1.452% 558, Lake Forest 6,537, % % % 312, % 1,245, % 1.593% 613, Lakewood 21,110, % % % 286, % 449, % 1.686% 648, Lawndale 4,655, % % % 378, % 323, % 1.052% 404,

135 CALIFORNIA JPIA UNLIMITED SHARE OF FUNDING FOR GENERAL GOVERNMENT POOL BASED ON INCURRED LOSSES OVER A 5 YEAR PERIOD FROM THROUGH , VALUED AS OF SEPTEMBER 30, 2017 UNLIMITED SHARE OF FUNDING = [(A x B) + (C x (D x 67%)) + (C x (E x 33%))] x F PLP Full Standard $10,969,900 Incurred Losses Incurred Losses Payroll Credibility Factor Loss Layer 1 Loss Layer 2 F = % From $0 - $30,000 From $30,000 - $750,000 F is the Off-Balance Factor Unlimited Share of Funding Calendar % of Pool Applied to Applied to 5 Year % of Pool 5 Year % of Pool % of Pool 2016 Total Payroll Losses Total Total Total Total Total Amount MEMBER A B C D E 63 Loma Linda 7,601, % % % 108, % 149, % 0.686% 264, Lomita 3,362, % % % 228, % 211, % 0.639% 245, Malibu 6,059, % % % 155, % 556, % 0.934% 359, Mammoth Lakes 4,808, % % % 111, % 647, % 0.791% 304, MARTA 1,524, % % % 10, % % 0.173% 66, Midpeninsula ROSD 11,539, % % % 20, % % 0.406% 156, Mission Viejo 12,854, % % % 352, % 1,094, % 2.005% 771, Monrovia 15,756, % % % 459, % 1,306, % 2.511% 966, Monterey Peninsula RPD 1,448, % % % 1, % % 0.155% 59, Moorpark 5,200, % % % 107, % 48, % 0.605% 232, Morro Bay 6,875, % % % 344, % 156, % 1.190% 458, Needles 2,566, % % % 97, % 184, % 0.414% 159, Norwalk 20,911, % % % 572, % 1,683, % 3.200% 1,231, Orange County COG 310, % % % % % 0.033% 12, Ojai 2,558, % % % 59, % % 0.332% 127, Palm Desert 11,736, % % % 195, % 230, % 1.023% 393, Palos Verdes Estates 2,599, % % % 93, % 504, % 0.485% 186, Palos Verdes TA 310, % % % % % 0.033% 12, Paramount 9,792, % % % 266, % 346, % 1.224% 471, Paso Robles 11,989, % % % 457, % 570, % 1.943% 747, Pismo Beach 5,334, % % % 358, % 1,270, % 1.473% 566, Pomona Valley TA 310, % % % 6, % % 0.040% 15, Port Hueneme 5,930, % % % 201, % 351, % 0.925% 356, Poway 18,570, % % % 277, % 357, % 1.529% 588, Rancho Palos Verdes 5,492, % % % 339, % 1,500, % 1.560% 600, Rolling Hills 509, % % % % % 0.055% 21, Rolling Hills Estates 1,947, % % % 86, % 106, % 0.319% 122, Rosemead 4,775, % % % 213, % 866, % 1.009% 388, San Clemente 16,355, % % % 678, % 3,570, % 4.496% 1,730, San Dimas 6,584, % % % 167, % 47, % 0.761% 292, San Gabriel 13,461, % % % 463, % 569, % 2.001% 770,

136 CALIFORNIA JPIA UNLIMITED SHARE OF FUNDING FOR GENERAL GOVERNMENT POOL BASED ON INCURRED LOSSES OVER A 5 YEAR PERIOD FROM THROUGH , VALUED AS OF SEPTEMBER 30, 2017 UNLIMITED SHARE OF FUNDING = [(A x B) + (C x (D x 67%)) + (C x (E x 33%))] x F PLP Full Standard $10,969,900 Incurred Losses Incurred Losses Payroll Credibility Factor Loss Layer 1 Loss Layer 2 F = % From $0 - $30,000 From $30,000 - $750,000 F is the Off-Balance Factor Unlimited Share of Funding Calendar % of Pool Applied to Applied to 5 Year % of Pool 5 Year % of Pool % of Pool 2016 Total Payroll Losses Total Total Total Total Total Amount MEMBER A B C D E 94 San Juan Capistrano 8,690, % % % 218, % 787, % 1.332% 512, San Marcos 23,646, % % % 459, % 1,558, % 2.904% 1,117, San Marino 7,587, % % % 153, % 291, % 0.865% 332, Santa Fe Springs 21,682, % % % 164, % 94, % 1.160% 446, Santa Paula 6,390, % % % 187, % 114, % 0.824% 317, SCAG 15,257, % % % 31, % 420, % 0.804% 309, SEAACA 2,712, % % % 41, % 89, % 0.351% 135, Seal Beach 6,822, % % % 153, % 59, % 0.740% 284, Seaside 9,472, % % % 124, % 333, % 0.825% 317, Seaside CSD 310, % % % 86, % 72, % 0.137% 52, Sierra Madre 4,424, % % % 84, % 4, % 0.517% 198, Signal Hill 5,857, % % % 72, % 25, % 0.555% 213, Solvang 2,313, % % % 63, % 78, % 0.328% 126, South El Monte 3,724, % % % 71, % 192, % 0.506% 194, Temple City 4,385, % % % 184, % 398, % 0.769% 295, Ventura Port District 1,646, % % % 102, % 158, % 0.314% 120, Villa Park 493, % % % 30, % 231, % 0.136% 52, Walnut 4,027, % % % 106, % 10, % 0.522% 200, West-Comm 1,557, % % % % % 0.166% 63, Westlake Village 1,393, % % % 90, % 243, % 0.294% 113,155 Pool $676,130, % 50% 50% $20,498, % $44,589, % 100% $38,487, Funding Estimate $38,487,400 Off-Balance Factor % 136

137 CALIFORNIA JPIA UNLIMITED SHARE OF FUNDING FOR POLICE POOL BASED ON INCURRED LOSSES OVER A 5 YEAR PERIOD FROM THROUGH , VALUED AS OF SEPTEMBER 30, 2017 UNLIMITED SHARE OF FUNDING = [(A x B) + (C x (D x 67%)) + (C x (E x 33%))] x F PLP Full Standard Incurred Losses Incurred Losses F = % $6,769,350 From $0 - $30,000 From $30,000 - $750,000 F is the Off-Balance Factor Payroll Credibility Factor Loss Layer 1 Loss Layer 2 Unlimited Share of Funding Calendar % of Pool Applied to Applied to 5 Year % of Pool 5 Year % of Pool % of Pool 2016 Total Payroll Losses Total Total Total Total Total Amount MEMBER A B C D E 1 Arroyo Grande $2,545, % % % $21, % $ % 1.762% $198,694 2 Atascadero 2,591, % % % 105, % 32, % 2.514% 283,494 3 Bell Gardens 6,724, % % % 156, % 1,240, % 6.435% 725,649 4 Bishop 1,329, % % % 72, % 83, % 1.469% 165,653 5 Brawley 2,458, % % % 99, % 222, % 2.549% 287,441 6 Claremont 4,729, % % % 144, % 386, % 4.279% 482,526 7 El Centro 3,636, % % % 177, % 1,576, % 5.776% 651,336 8 Fountain Valley 7,954, % % % 129, % 299, % 4.432% 499,779 9 Grover Beach 1,723, % % % 46, % % 1.516% 170, Guadalupe 816, % % % 1, % % 0.581% 65, Imperial 1,104, % % % 292, % 1,045, % 3.438% 387, Indio 7,083, % % % 299, % 2,592, % % 1,304, Irwindale 3,175, % % % 118, % 737, % 3.721% 419, La Palma 2,461, % % % 107, % 631, % 2.968% 334, La Verne 5,212, % % % 174, % 650, % 5.333% 601, Mammoth Lakes 1,522, % % % 17, % % 1.180% 133, Monrovia 7,127, % % % 59, % 179, % 2.804% 316, Morro Bay 1,990, % % % 31, % % 1.600% 180, Palos Verdes Estates 2,807, % % % 117, % 870, % 3.566% 402, Paso Robles 3,293, % % % 125, % 519, % 3.624% 408, Pismo Beach 2,289, % % % 27, % % 1.720% 193, Port Hueneme 3,033, % % % 127, % 1,483, % 4.498% 507, San Gabriel 5,596, % % % 47, % % 1.960% 221, San Marino 2,944, % % % 53, % % 2.171% 244, Santa Paula 3,396, % % % 168, % 577, % 4.231% 477, Seal Beach 5,051, % % % 179, % 356, % 4.842% 546, Seaside 4,518, % % % 126, % 234, % 3.726% 420, Sierra Madre 1,347, % % % % % 0.943% 106, Signal Hill 4,070, % % % 127, % 707, % 4.303% 485, Ventura Port District 699, % % % % % 0.489% 55,142 Pool $103,236, % 50% 50% $3,157, % $14,428, % 100% $11,276, Funding Estimate $11,276,600 Off-Balance Factor % 137

138 CALIFORNIA JPIA ANNUAL CONTRIBUTION LIMITED TO +30.0% AND -15% CHANGE FROM PRIOR YEAR PLP MEMBER Annual Contribution Paid 7/1/17 Unlimited Share of Funding for General Government Police Total Before VB $ Change % Change Limited Annual Contribution $ Change After VB % Change (1) (2) (3) (4) (5) (6) (7) (8) (9) Prior Year (2) + (3) (4) - (1) (5) / (1) Due July 1, 2018 (7) - (1) (8) / (1) 1 Agoura Hills $292,505 $234,003 $234,003 ($58,502) -20.0% $248,629 ($43,876) -15.0% 2 AHCCC 43,815 26,941 26,941 (16,874) -38.5% 37,243 (6,572) -15.0% 3 Aliso Viejo 104, , ,761 (1,908) -1.8% 102,479 (2,190) -2.1% 4 Apple Valley 426, , ,254 65, % 490,905 64, % 5 Area B 12,494 12,701 12, % 11,466 (1,028) -8.2% 6 Area E 12,494 12,701 12, % 11,466 (1,028) -8.2% 7 Arroyo Grande 530, , , ,403 37, % 565,848 35, % 8 Artesia 98, , ,686 6, % 104,399 6, % 9 Atascadero 483, , , ,958 32, % 514,544 30, % 10 Bell Gardens 1,261, , ,649 1,278,713 17, % 1,275,209 13, % 11 Bellflower 398, , ,118 5, % 403,011 4, % 12 Big Bear City CSD 208, , ,450 3, % 211,868 3, % 13 Big Bear Fire Authority 40,975 40,027 40,027 (948) -2.3% 39,917 (1,058) -2.6% 14 Big Bear Lake 580, , ,335 31, % 610,657 30, % 15 Bishop 209,961 99, , ,950 54, % 264,224 54, % 16 Black Gold CLS 18,661 18,474 18,474 (187) -1.0% 18,423 (238) -1.3% 17 Bradbury 45,631 40,412 40,412 (5,219) -11.4% 40,301 (5,330) -11.7% 18 Brawley 665, , , ,999 (5,469) -0.8% 658,191 (7,277) -1.1% 19 Buellton 92,904 96,219 96,219 3, % 95,955 3, % 20 Calabasas 376, , , , % 488, , % 21 Camarillo 770, , ,116 (25,116) -3.3% 743,074 (27,158) -3.5% 22 Carpinteria 169, , ,358 19, % 188,839 18, % 23 CASA 53,957 53,113 53,113 (844) -1.6% 52,967 (990) -1.8% 24 Cerritos 1,753,021 1,713,459 1,713,459 (39,562) -2.3% 1,708,764 (44,257) -2.5% 25 Chino Hills 1,030, , ,244 (95,622) -9.3% 932,681 (98,185) -9.5% 26 Claremont 1,687,475 1,263, ,526 1,746,452 58, % 1,741,667 54, % 27 CVAG 71,402 82,363 82,363 10, % 82,137 10, % 28 CVCC 12,494 12,701 12, % 11,466 (1,028) -8.2% 29 Dana Point 448, , ,854 (93,985) -20.9% 381,513 (67,326) -15.0% 30 Desert Rec 222, , ,770 7, % 229,140 6, % 138

139 CALIFORNIA JPIA ANNUAL CONTRIBUTION LIMITED TO +30.0% AND -15% CHANGE FROM PRIOR YEAR PLP MEMBER Annual Contribution Paid 7/1/17 Unlimited Share of Funding for General Government Police Total Before VB $ Change % Change Limited Annual Contribution $ Change After VB % Change (1) (2) (3) (4) (5) (6) (7) (8) (9) Prior Year (2) + (3) (4) - (1) (5) / (1) Due July 1, 2018 (7) - (1) (8) / (1) 31 Diamond Bar 438, , ,361 (15,193) -3.5% 422,201 (16,353) -3.7% 32 Duarte 283, , ,494 (6,085) -2.1% 276,734 (6,845) -2.4% 33 El Centro 1,359, , ,336 1,155,521 (203,491) -15.0% 1,155,160 (203,852) -15.0% 34 ESTA 124, , ,462 (8,712) -7.0% 115,146 (9,028) -7.3% 35 Fillmore 184, , ,371 24, % 208,797 23, % 36 Fountain Valley 1,397,831 1,058, ,779 1,558, , % 1,553, , % 37 Gateway Cities COG 18,135 18,474 18, % 18, % 38 Goleta 325, , , , % 423,504 97, % 39 Grand Terrace 79,359 72,741 72,741 (6,618) -8.3% 72,542 (6,817) -8.6% 40 Grover Beach 338, , , ,686 7, % 344,739 6, % 41 Guadalupe 140,683 73,896 65, ,413 (1,270) -0.9% 139,031 (1,652) -1.2% 42 Hawaiian Gardens 212, , ,661 (30,517) -14.4% 181,163 (31,015) -14.6% 43 Hidden Hills 12,494 15,010 15,010 2, % 14,969 2, % 44 Imperial 604, , , ,956 (50,951) -8.4% 552,438 (52,469) -8.7% 45 Indian Wells 359, , ,173 13, % 371,153 12, % 46 Indio 1,256, ,590 1,304,703 1,839, , % 1,633, , % 47 Irwindale 620, , , , , % 718,983 98, % 48 La Canada Flintridge 294, , ,593 15, % 309,742 14, % 49 La Habra Heights 136, , ,729 33, % 169,264 32, % 50 LA IMPACT 12,494 12,701 12, % 11,466 (1,028) -8.2% 51 La Mirada 546, , ,857 41, % 587,244 40, % 52 La Palma 552, , , ,701 (86,041) -15.6% 469,831 (82,911) -15.0% 53 La Puente 218, , ,378 1, % 218, % 54 La Quinta 404, , ,388 58, % 462,118 57, % 55 LA-RICS 12,494 12,701 12, % 11,466 (1,028) -8.2% 56 La Verne 1,167, , ,381 1,249,124 81, % 1,245,701 78, % 57 Laguna Niguel 305, , ,946 72, % 376,910 71, % 58 Laguna Woods 41,253 32,329 32,329 (8,924) -21.6% 35,065 (6,188) -15.0% 59 Lake Elsinore 573, , ,837 (14,618) -2.5% 557,306 (16,149) -2.8% 60 Lake Forest 693, , ,104 (80,631) -11.6% 611,424 (82,311) -11.9% 139

140 CALIFORNIA JPIA ANNUAL CONTRIBUTION LIMITED TO +30.0% AND -15% CHANGE FROM PRIOR YEAR PLP MEMBER Annual Contribution Paid 7/1/17 Unlimited Share of Funding for General Government Police Total Before VB $ Change % Change Limited Annual Contribution $ Change After VB % Change (1) (2) (3) (4) (5) (6) (7) (8) (9) Prior Year (2) + (3) (4) - (1) (5) / (1) Due July 1, 2018 (7) - (1) (8) / (1) 61 Lakewood 586, , ,898 62, % 647,120 60, % 62 Lawndale 391, , ,887 13, % 403,778 12, % 63 Loma Linda 427, , ,024 (163,171) -38.2% 363,116 (64,079) -15.0% 64 Lomita 255, , ,934 (9,653) -3.8% 245,260 (10,327) -4.0% 65 Malibu 430, , ,472 (71,374) -16.6% 366,219 (64,627) -15.0% 66 Mammoth Lakes 516, , , ,499 (79,088) -15.3% 439,099 (77,488) -15.0% 67 MARTA 62,883 66,583 66,583 3, % 66,401 3, % 68 Midpeninsula ROSD 176, , ,259 (20,218) -11.5% 155,831 (20,646) -11.7% 69 Mission Viejo 721, , ,672 49, % 769,558 47, % 70 Monrovia 1,267, , ,196 1,282,615 15, % 1,279,101 11, % 71 Monterey Peninsula RPD 53,552 59,655 59,655 6, % 59,492 5, % 72 Moorpark 280, , ,849 (47,778) -17.0% 238,533 (42,094) -15.0% 73 Morro Bay 702, , , ,426 (64,538) -9.2% 636,677 (66,287) -9.4% 74 Needles 196, , ,338 (37,018) -18.9% 166,903 (29,453) -15.0% 75 Norwalk 1,507,962 1,231,597 1,231,597 (276,365) -18.3% 1,281,768 (226,194) -15.0% 76 Orange County COG 12,301 12,701 12, % 11,466 (835) -6.8% 77 Ojai 134, , ,778 (6,506) -4.8% 127,428 (6,856) -5.1% 78 Palm Desert 344, , ,726 48, % 392,647 47, % 79 Palos Verdes Estates 590, , , ,788 (1,909) -0.3% 587,175 (3,522) -0.6% 80 Palos Verdes TA 12,494 12,701 12, % 12, % 81 Paramount 548, , ,086 (77,411) -14.1% 469,795 (78,702) -14.3% 82 Paso Robles 1,120, , ,664 1,156,474 35, % 1,153,305 32, % 83 Pismo Beach 737, , , ,877 23, % 758,792 21, % 84 Pomona Valley TA 15,822 15,395 15,395 (427) -2.7% 15,353 (469) -3.0% 85 Port Hueneme 744, , , , , % 860, , % 86 Poway 656, , ,472 (67,533) -10.3% 586,860 (69,145) -10.5% 87 Rancho Palos Verdes 478, , , , % 598, , % 88 Rolling Hills 20,285 21,168 21, % 21, % 89 Rolling Hills Estates 98, , ,775 24, % 122,439 24, % 90 Rosemead 363, , ,338 25, % 387,274 24, % 140

141 CALIFORNIA JPIA ANNUAL CONTRIBUTION LIMITED TO +30.0% AND -15% CHANGE FROM PRIOR YEAR PLP MEMBER Annual Contribution Paid 7/1/17 Unlimited Share of Funding for General Government Police Total Before VB $ Change % Change Limited Annual Contribution $ Change After VB % Change (1) (2) (3) (4) (5) (6) (7) (8) (9) Prior Year (2) + (3) (4) - (1) (5) / (1) Due July 1, 2018 (7) - (1) (8) / (1) 91 San Clemente 1,935,393 1,730,394 1,730,394 (204,999) -10.6% 1,725,653 (209,740) -10.8% 92 San Dimas 388, , ,889 (95,765) -24.6% 330,356 (58,298) -15.0% 93 San Gabriel 863, , , , , % 988, , % 94 San Juan Capistrano 888, , ,652 (375,816) -42.3% 755,198 (133,270) -15.0% 95 San Marcos 1,164,745 1,117,674 1,117,674 (47,071) -4.0% 1,114,393 (50,352) -4.3% 96 San Marino 518, , , ,731 58, % 576,148 57, % 97 Santa Fe Springs 463, , ,454 (17,253) -3.7% 445,231 (18,476) -4.0% 98 Santa Paula 1,008, , , ,249 (214,458) -21.3% 857,401 (151,306) -15.0% 99 SCAG 183, , , , % 238,385 55, % 100 SEAACA 123, , ,091 11, % 134,721 11, % 101 Seal Beach 683, , , , , % 828, , % 102 Seaside 854, , , ,687 (117,238) -13.7% 735,666 (119,259) -13.9% 103 Seaside CSD 64,911 52,728 52,728 (12,183) -18.8% 55,174 (9,737) -15.0% 104 Sierra Madre 373, , , ,318 (68,128) -18.2% 317,429 (56,017) -15.0% 105 Signal Hill 614, , , ,837 84, % 696,922 82, % 106 Solvang 152, , ,239 (25,896) -17.0% 129,315 (22,820) -15.0% 107 South El Monte 174, , ,746 19, % 194,212 19, % 108 Temple City 254, , ,968 41, % 295,157 40, % 109 Ventura Port District 182, ,850 55, ,992 (6,833) -3.7% 175,510 (7,315) -4.0% 110 Villa Park 44,794 52,343 52,343 7, % 52,200 7, % 111 Walnut 203, , ,904 (3,052) -1.5% 200,354 (3,602) -1.8% 112 West-Comm 65,247 63,889 63,889 (1,358) -2.1% 63,714 (1,533) -2.3% 113 Westlake Village 72, , ,155 40, % 94,097 21, % Pool $49,577,815 $38,487,400 $11,276,600 $49,764,000 $186, % $49,764,000 $186, % Off-Balance Factor % Total Reallocation $582, % 141

142 CALIFORNIA JPIA STATISTICS ANNUAL CONTRIBUTION PLP Year over year % change in Limited Annual Contribution From to Number of Members in Each Group YOY Change in Number of % of Group Annual Contribution Members Members A Below the Lower Limit 0 0.0% B Limited to -15.0% % C -14.9% to -10.0% 8 7.1% D -9.9% to -5.0% % E -4.9% to 0.0% % F 0.1% to 5.0% % G 5.1% to 10.0% % H 10.1% to 15.0% % I 15.1% to 20.0% 5 4.4% J 20.1% to 25.0% 4 3.5% K 25.1% to 29.9% 3 2.7% L Limited to 30.0% 4 3.5% M Above the Upper Limit 0 0.0% % 142

143 143