City of Anaheim FINANCE DEPARTMENT

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1 City of Anaheim FINANCE DEPARTMENT DATE: JANUARY 26, 2016 FROM: FINANCE DEPARTMENT CITY COUNCIL AGENDA REPORT SUBJECT: INVESTMENT PORTFOLIO REPORT DECEMBER 2015 ATTACHMENT (Y/N): YES ITEM # 02 RECOMMENDATION: That the City Council, by Motion, approve the Investment Portfolio Report for December DISCUSSION: This is the investment report for the City s general pool for the month ending December 31, The report is provided to ensure that the City Council is informed as to the investment activities and fulfills the reporting requirements of the City s adopted investment policy. INVESTMENT SUMMARY: The following table shows summary investment information for the month ending December 31, 2015: Short-term Portfolio Long-term Portfolio Total Portfolio Values Portfolio Balance (Market Value) $124,491,076 $301,648,580 $426,139,656 Effective Yield 0.30% 1.22% 0.95% Avg. Weighted Maturity 19 Days 1.91 Years 1.37 Years Net Earnings $27,336 $300,001 $327,337 Benchmark* 0.11% 1.04% 0.86% * Benchmark value is the Interpolated Treasury Yield to the Portfolio s Average Weighted Maturity INVESTMENT ACTIVITIES: 200 S. Anaheim Blvd. Suite #643 Anaheim, CA Tel: (714) Fax: (714) The City Treasurer s Investment Portfolio has a current credit rating of AAf from Standard and Poor s (S&P). This rating was effective August 8, 2011, as a result of the action of S&P downgrading the debt issues of the United States Treasury and Federal Agencies from a credit rating of AAA to AA+. The credit rating reflects the investment holdings of the City s Investment Portfolio (approximately 50% of funds in Federal Agency issues) and not the management of the investment fund. This credit rating is for the City s investment portfolio and does NOT reflect the credit rating of the City s bond issues.

2 City Treasurer s Investment Report December 2015 January 26, 2016 Page 2 of 2 On August 11, 2008, the City of Anaheim s Investment Policy was recognized and certified by the Association of Professional Treasurers of the United States and Canada (APT US&C) as meeting all standards and criteria established by the APT US&C. COMPLIANCE: All investment holdings are allowable and all investment transactions were executed in accordance with the California Government Code and the City s Investment Policy, with the exception of three securities issued by Shell International Finance (listed as Royal Dutch Shell). This issuer is based in the Netherlands and therefore is not an allowable issuer per the City's Investment Policy or State of California Code. These three securities have since been liquidated for a modest gain, which will return the investment portfolio to full compliance. There is sufficient liquidity to meet the City s anticipated expenditure requirements for the next six months. A complete listing of the City s portfolio holdings and investment activity for the month of December 2015 is included in the attached Monthly Investment Report. IMPACT ON BUDGET: There is no budgetary impact. Interest income is allocated in various funds based on the performance of the Investment Portfolio. Respectfully submitted, Deborah A. Moreno Finance Director/City Treasurer Attachment: 1. Monthly Investment Report December 2015

3 Client Management Team Rick Phillips President & Chief Investment Officer Tonya Dazzio Chief Operating & Compliance Officer Greg Balls Portfolio Manager & Analyst Monthly Investment Report City of Anaheim December Park Run Drive Suite 120 Summerlin, NV Phone

4 Portfolio Summary 12/31/2015 City of Anaheim SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S) LAIF 15.9% MMF 0.4% CD 0.0% Tsy 0.0% CP 13.0% Corp 23.3% Per Book Value ACCOUNT SUMMARY Agy 47.4% 45% 41.9% 40% 35% 30% 27.8% 25% 22.3% 20% 15% 10% 6.9% 5% 1.2% 0% 0-1Y 1-2Y 2-3Y 3-4Y 4-5Y Per Book Value MONTH-END PORTFOLIO BOOK YIELD P % Aaa 55.9% Aa1 6.6% Aa2 0.0% Aa3 1.9% A1 2.0% A2 3.5% A3 1.2% NR-LAIF 15.9% 0% 25% 50% 75% NR: Not Rated TOP ISSUERS Market Value $426,139,656 $415,902,592 Book Value $425,577,481 $415,339,175 Variance $562,175 $563,417 *Book Value is Amortized 12/31/15 11/30/15 Par Value $425,599,333 $415,388,285 Net Asset Value $ $ Book Yield 0.95% 0.98% Years to Maturity Effective Duration % 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% 0.75% 0.70% Jan- 15 Feb- 15 Mar-15 Apr- 15 May-15 Jun- 15 Jul-15 Aug- 15 Sep-15 Oct- 15 Nov-15 Dec- 15 Issuer % Portfolio FNMA 20.8% LAIF 15.9% FHLMC 11.9% FHLB 8.1% FFCB 6.7% Coca Cola 3.6% Chevron 3.5% Wells Fargo 3.5% Exxon Mobil 3.5% Johnson & Johnson 3.1% Toyota Motor 3.1% Microsoft 2.6% Pfizer 2.3% Royal Dutch Shell 1.9% Pepsico 1.3% Per Book Value 2

5 Investment Policy Compliance 12/31/2015 City of Anaheim Item / Sector Parameters In Compliance Weighted Average Maturity Weighted Average Maturity (WAM) must be less than 3 years Yes: 1.37 Yrs U.S. Treasuries No limit, maximum maturity 5 years Yes: 0.0% U.S. Federal Agencies No limit, 40% issuer limit, maximum maturity 5 years Yes: 47.4% Local Agency Investment Fund $50 million, per account (City has two accounts) Yes: 15.9% Commercial Paper Corporate Bonds 25% limit, 5% per issuer, max maturity 270 days, rated A-1, P-1, or F1 by at least one NRSRO, issued by a domestic corporation 30% limit, 5% per issuer, maximum maturity 5 years, issued by domestic corporations or depositories, rated A (S&P), A2 (Moody's), or A (Fitch) by at least two Yes: 13.0% No*: 23.3% Money Market Funds 20% limit, 10% issuer limit, rated AAA-m or Aaa-mf by at least two (S&P, Moody's, or Fitch) Yes: 0.4% Negotiable Certificates of Deposit 30% limit, 5% per issuer, maximum maturity 5 years, issued by banks, savings and loans, or state-licensed branch of a foreign bank Yes: 0.0% State of California Securities 10% limit, 5% per issuer, maximum maturity 5 years Yes: 0.0% Other Municipal Securities 10% limit, 5% per issuer, maximum maturity 5 years Yes: 0.0% Bankers' Acceptances 40% limit, 30% per issuer, maximum maturity 180 days, rated A-1 or P-1, issued by a commercial bank Yes: 0.0% Issuer Concentration The aggregate issuer exposure to corporate bonds, commercial paper, negotiable CDs, and bankers' acceptances cannot exceed 5%. Yes Pool contains sufficient cash flow liquidity to meet the next six months of expected expenditures. Securities' market values are derived from the Entity's custodian. *The City owns three securities issued by Shell International Finance (listed as Royal Dutch Shell). This issuer is based in the Netherlands and therefore is not an allowable issuer per the City's Investment Policy or State of California Code. 3

6 Historical Market Values 12/31/2015 City of Anaheim $460 $440 $420 $400 M illions $380 $360 $340 $320 Ju l-12 Sep -12 Nov-12 Jan -13 Mar-13 May-13 Ju l-13 Sep -13 Nov-13 Jan -14 Mar-14 May-14 Ju l-14 Sep -14 Nov-14 Jan -15 Mar-15 May-15 Ju l-15 Sep -15 Nov-15 Jan -16 Mar-16 May-16 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Average FY 2013 $385.4 $397.8 $368.2 $378.1 $371.4 $382.7 $396.9 $415.1 $412.6 $425.4 $438.4 $440.8 $401.1 FY 2014 $424.1 $433.1 $418.4 $413.0 $404.1 $419.7 $431.2 $432.5 $422.4 $426.7 $425.2 $426.0 $423.0 FY 2015 $383.8 $401.7 $374.4 $375.7 $368.8 $376.3 $402.6 $404.1 $409.3 $420.6 $435.6 $436.6 $399.1 FY 2016 $410.1 $405.7 $381.7 $401.9 $415.9 $426.1 $406.9 Figures in Millions, Month in Market Value 4

7 Historical Market Values Per Fiscal Year 12/31/2015 City of Anaheim $450 FY 13 FY 14 FY 15 FY 16 $440 $430 $420 $410 M illions $400 $390 $380 $370 $360 $350 Ju l Aug Sep Oct Nov Dec Jan Fe b Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Average FY 2013 $385.4 $397.8 $368.2 $378.1 $371.4 $382.7 $396.9 $415.1 $412.6 $425.4 $438.4 $440.8 $401.1 FY 2014 $424.1 $433.1 $418.4 $413.0 $404.1 $419.7 $431.2 $432.5 $422.4 $426.7 $425.2 $426.0 $423.0 FY 2015 $383.8 $401.7 $374.4 $375.7 $368.8 $376.3 $402.6 $404.1 $409.3 $420.6 $435.6 $436.6 $399.1 FY 2016 $410.1 $405.7 $381.7 $401.9 $415.9 $426.1 $406.9 Figures in Millions, Month in Market Value 5

8 Weighted Average Maturity and Portfolio Yield 12/31/2015 City of Anaheim 2.5 Weighted Average Maturity History Years Ju l-12 Aug-12 Sep -12 Oct-12 Nov-12 Dec-12 Jan -13 Fe b-13 Mar-13 Apr-13 May-13 Jun -13 Ju l-13 Aug-13 Sep -13 Oct-13 Nov-13 Dec-13 Jan -14 Fe b-14 Mar-14 Apr-14 May-14 Jun -14 Ju l-14 Aug-14 Sep -14 Oct-14 Nov-14 Dec-14 Jan -15 Fe b-15 Mar-15 Apr-15 May-15 Jun -15 Ju l-15 Aug-15 Sep -15 Oct-15 Nov-15 Dec-15 Jan -16 Fe b-16 Mar-16 Apr-16 May-16 Jun Month-End Book Yield vs 1-3Yr Agency Index (24 month moving avg) Portfolio Agy 1-3Yr Per cen t Ju l-12 Aug-12 Sep -12 Oct-12 Nov-12 Dec-12 Jan -13 Fe b-13 Mar-13 Apr-13 May-13 Jun -13 Ju l-13 Aug-13 Sep -13 Oct-13 Nov-13 Dec-13 Jan -14 Fe b-14 Mar-14 Apr-14 May-14 Jun -14 Ju l-14 Aug-14 Sep -14 Oct-14 Nov-14 Dec-14 Jan -15 Fe b-15 Mar-15 Apr-15 May-15 Jun -15 Ju l-15 Aug-15 Sep -15 Oct-15 Nov-15 Dec-15 Jan -16 Fe b-16 Mar-16 Apr-16 May-16 Jun -16 6

9 Purchase YTM Per 6-Month Maturity Intervals 12/31/2015 City of Anaheim Years Purchase Yield % of Portfolio* 0 to % 33.36%.5 to % 8.52% 1.0 to % 10.70% 1.5 to % 11.59% 2.0 to % 24.04% 3.0% 2.5% 2.0% Bubble Size = Maturity's % of Portfolio 2.09% 1.68% 1.59% 1.55% 2.5 to % 3.76% 3.0 to % 4.74% 3.5 to % 2.11% 4.0 to % 0.00% Purchas e Yield 1.5% 1.0% 1.03% 0.88% 1.08% 1.20% 4.5 to % 1.17% *Based on Book Value 0.5% 0.45% 0.0% -0.5% Maturity Intervals 7

10 Interest Rate Shock Analysis 12/31/2015 City of Anaheim Instantaneous Interest Rate Changes and Approximate Change in Portfolio's Market Value 1.50% 1.27% 1.00% 0.93% Per cen t Cha nge in Por tfolio Va lue 0.50% 0.00% -0.50% -1.00% 0.61% 0.29% 0.00% -0.34% -0.69% -1.00% -1.50% -100BP -75BP -50BP -25BP No Change +25BP +50BP +75BP +100BP Interest Rate Changes/Scenarios -1.32% Interest Rate Change Portfolio Value Value Change Percent Change -100 Basis Points $431,551,630 $5,411, % -75 Basis Points $430,090,397 $3,950, % -50 Basis Points $428,737,403 $2,597, % -25 Basis Points $427,384,410 $1,244, % No Change $426,139,656 $0 0.00% +25 Basis Points $424,677,145 -$1,462, % +50 Basis Points $423,214,633 -$2,925, % +75 Basis Points $421,864,623 -$4,275, % +100 Basis Points $420,514,613 -$5,625, % 8

11 Next Twelve Months Maturities 12/31/2015 City of Anaheim $100 $94.5 $90 $80 $70 $60 Millions $50 $40 $30 $20 $20.0 $15.0 $10 $6.0 $6.5 $10.0 $5.0 $11.2 $10.0 $0 $0.0 $0.0 $0.0 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Maturities $94.5 $20.0 $15.0 $0.0 $6.0 $6.5 $10.0 $0.0 $0.0 $5.0 $11.2 $10.0 Par Value in Millions 9

12 Historical Sector Allocation 12/31/2015 City of Anaheim 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% AGY TSY CP MMF CDs LAIF CORP 15% 10% 5% 0% Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Sector Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Agency 54.5% 54.3% 54.8% 53.2% 51.5% 51.3% 54.6% 55.2% 58.8% 50.7% 49.8% 47.4% Treasury 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Commercial Paper 8.8% 8.6% 7.5% 11.0% 11.9% 10.0% 10.7% 8.6% 1.5% 15.2% 14.0% 13.0% Corporates 20.4% 21.5% 21.2% 20.7% 19.9% 22.2% 22.2% 22.4% 22.5% 19.4% 22.7% 23.3% MMF 1.0% 0.6% 1.4% 0.4% 0.5% 0.3% 0.4% 1.6% 4.2% 2.3% 1.6% 0.4% Certificates of Deposit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% LAIF 15.3% 15.2% 15.1% 14.7% 16.2% 16.2% 12.1% 12.2% 13.0% 12.4% 11.9% 15.9% Total 100.0% 100.2% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 10

13 Issuer Allocation 12/31/2015 City of Anaheim FNMA 20.8% LAIF 15.9% FHLMC 11.9% FHLB 8.1% FFCB 6.7% Coca Cola Chevron Wells Fargo Exxon Mobil Johnson & Johnson Toyota Motor Microsoft Pfizer Royal Dutch Shell Pepsico New York Life Goldman Sachs Metropolitan Life General Electric Cap Corp Honeywell Disney American Honda Goldman Sachs Prime MMF Fidelity Govt MMF 3.6% 3.5% 3.5% 3.5% 3.1% 3.1% 2.6% 2.3% 1.9% 1.3% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 0.7% 0.3% 0.1% 0% 5% 10% 15% 20% 25% 11

14 Purchase Yield and Weighted Avg Maturity 12/31/2015 City of Anaheim 1.80% Bubble Size = Percent of Portfolio 1.60% Corp 1.40% 1.20% Agy 1.00% k Yie ld Boo 0.80% 0.60% 0.40% LAIF 0.20% CID 0.00% MMF -0.20% -0.40% Weighted Average Maturity - Years 12

15 Historical Earnings and Book Rate of Return Performance 12/31/2015 City of Anaheim $6,000 Fiscal Year-to-Date Earnings Thousan ds $5,000 $4,000 $3,000 $2,000 FY 2013 FY 2014 FY 2015 FY 2016 $1,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Fiscal YTD ($000s) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2013 $478.9 $949.9 $1,410.4 $1,850.4 $2,293.4 $2,735.0 $3,173.4 $3,565.4 $3,958.4 $4,325.0 $4,684.2 $5,052.5 FY 2014 $373.3 $744.0 $1,113.0 $1,481.3 $1,849.3 $2,206.4 $2,568.4 $2,921.8 $3,291.4 $3,667.5 $4,033.8 $4,400.3 FY 2015 $365.8 $728.5 $1,092.4 $1,439.4 $1,777.9 $2,105.2 $2,438.6 $2,777.2 $3,113.2 $3,450.8 $3,790.8 $4,133.8 FY 2016 $343.5 $683.2 $1,020.0 $1,339.4 $1,663.8 $1, % 1.0% Book Rate of Return vs Benchmark Portfolio Benchmark 0.8% 0.6% 0.4% 0.2% 0.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Fiscal YTD Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Book Rate of Rtn 0.94% 0.96% 0.98% 0.98% 0.97% 0.96% Custom Benchmark* 0.45% 0.47% 0.48% 0.50% 0.52% 0.55% Variance 0.49% 0.49% 0.50% 0.48% 0.45% 0.41% *Benchmark: 24 month moving average 1-3Yr Treasury Index 13

16 Investment Activity 12/31/2015 City of Anaheim 80 Number of Positions at Month End Pos itions Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Positions Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec Purchases and Redemptions* (Excluding LAIF & MMF) Purchases Redemptions Number of Transac tions Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 *Redemptions include maturities, calls, and sells (excluding paydowns) Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Purchases Redemptions Total Transactions

17 CITY OF ANAHEIM Portfolio Management Portfolio Summary December 31, 2015 Investments Par Value Market Value Book Value % of Portfolio Term Days to Maturity YTM 360 Equiv. Federal Agency Issues - Coupon 201,974, ,276, ,924, , Passbook/Checking Accounts 67,509, ,509, ,509, Money Market Mutual Fund 1,748, ,748, ,748, Medium Term Notes 99,118, ,372, ,161, , Commercial Paper Disc. -Amortizing 55,250, ,233, ,233, Investments YTM 365 Equiv. 425,599, ,139, ,577, % Cash and Accrued Interest Accrued Interest at Purchase 12, , Subtotal 12, , Total Cash and Investments 425,599, ,152, ,589, Total Earnings December 31 Month Ending Fiscal Year To Date Current Year 327, ,991, Average Daily Balance 422,585, ,582, Effective Rate of Return 0.91% 0.96% HENRY W. STERN, CITY TREASURER Reporting period 12/01/ /31/2015 Portfolio CITY AP Run Date: 01/12/ :07 PM (PRF_PM1) Report Ver

18 CITY OF ANAHEIM Portfolio Management Page 1 Portfolio Details - Investments December 31, 2015 CUSIP Federal Agency Issues - Coupon Average Investment # Issuer Balance Purchase Date Par Value Market Value Book Value Stated Rate Days to S&P Moody's Maturity 3133ECE FEDERAL FARM CREDIT BANK NOTES 01/30/2013 8,930, ,930, ,930, /30/ EEFE FEDERAL FARM CREDIT BANK NOTES 12/18/2014 5,000, ,009, ,998, AAA Aaa /18/ ECBY FEDERAL FARM CREDIT BANK NOTES 01/16/2015 5,375, ,342, ,374, /26/ EFPR FEDERAL FARM CREDIT BANK NOTES 11/19/2015 4,000, ,013, ,000, AAA Aaa 1,418 11/19/ EFSG FEDERAL FARM CREDIT BANK NOTES 12/14/2015 5,000, ,000, ,000, /14/ A0JL FEDERAL HOME LOAN BANKS 01/30/2014 4,500, ,501, ,499, /27/ A FEDERAL HOME LOAN BANKS 03/19/ ,000, ,058, ,024, /09/ N FEDERAL HOME LOAN BANKS 03/19/2014 5,000, ,002, ,005, /10/ QK FEDERAL HOME LOAN BANKS 05/15/ ,000, ,154, ,095, ,162 03/08/ A4TR FEDERAL HOME LOAN BANKS 03/30/2015 5,000, ,995, ,001, /16/ G3Z FED HOME LOAN MORT CORP 12/12/ ,000, ,984, ,000, AA Aaa /05/ G42R FED HOME LOAN MORT CORP 05/22/2013 5,000, ,004, ,000, /25/ EADT FED HOME LOAN MORT CORP 01/29/ ,000, ,012, ,999, /22/ EADL FED HOME LOAN MORT CORP 01/31/2014 7,012, ,016, ,994, /29/ EADP FED HOME LOAN MORT CORP 04/14/2014 1,600, ,591, ,586, /07/ EADP FED HOME LOAN MORT CORP 05/15/2014 5,000, ,973, ,961, /07/ EADN FED HOME LOAN MORT CORP 03/30/2015 7,000, ,950, ,975, /12/ G83V FED HOME LOAN MORT CORP 11/24/2015 5,000, ,000, ,999, /24/ G04R FED NATL MORTGAGE ASSN 12/13/2012 5,000, ,004, ,000, AA Aaa /21/ G0TM FED NATL MORTGAGE ASSN 01/30/2013 5,000, ,004, ,000, /30/ G0TV FED NATL MORTGAGE ASSN 01/30/ ,000, ,011, ,000, /30/ G0TV FED NATL MORTGAGE ASSN 01/30/2013 6,250, ,257, ,250, /30/ G0XP FED NATL MORTGAGE ASSN 05/22/2013 5,000, ,995, ,997, /05/ G0WJ FED NATL MORTGAGE ASSN 05/22/2013 5,000, ,960, ,986, /21/ G0WY FED NATL MORTGAGE ASSN 05/22/2013 5,000, ,998, ,000, /14/ G0YT FED NATL MORTGAGE ASSN 02/25/ ,000, ,094, ,994, ,061 11/27/ G0WJ FED NATL MORTGAGE ASSN 03/25/2014 7,307, ,249, ,199, /21/ G0PQ FED NATL MORTGAGE ASSN 03/25/2014 5,000, ,989, ,966, /26/ G0ZA FED NATL MORTGAGE ASSN 04/14/ ,000, ,159, ,075, ,145 02/19/ G0ZY FED NATL MORTGAGE ASSN 12/12/2014 5,000, ,023, ,000, AA Aaa 1,425 11/26/ G1L FED NATL MORTGAGE ASSN 01/16/2015 5,000, ,985, ,001, /08/ G0ZB FED NATL MORTGAGE ASSN 01/29/2015 5,000, ,997, ,005, /20/2017 Subtotal and Average 199,826, ,974, ,276, ,924, Maturity Date Portfolio CITY AP Run Date: 01/12/ :07 PM (PRF_PM2) Report Ver

19 CITY OF ANAHEIM Portfolio Management Page 2 Portfolio Details - Investments December 31, 2015 CUSIP Average Investment # Issuer Balance Purchase Date Par Value Market Value Book Value Stated Rate Days to S&P Moody's Maturity Maturity Date Passbook/Checking Accounts SYS SYS SYS LAIF LAIF LAIF 07/01/ ,239, ,270, ,239, ,270, ,239, ,270, AA AA AA Aa Aa Aa Subtotal and Average 51,251, ,509, ,509, ,509, Money Market Mutual Fund SYS FIDELITY GOVERNMENT MMKT 278, , , AAA Aaa 1 SYS GOLDMAN SACHS PRIME OBLIGATION 1,469, ,469, ,469, AAA Aaa 1 Subtotal and Average 8,925, ,748, ,748, ,748, Medium Term Notes AE CHEVRON 06/24/2013 3,000, ,013, ,000, AA Aa /24/ AC CHEVRON 06/24/2013 2,000, ,003, ,000, AA Aa /24/ AL CHEVRON 06/29/2015 5,000, ,012, ,012, /15/ AE CHEVRON 12/07/2015 5,000, ,028, ,028, AA Aa /24/ BA COCA COLA 01/15/2015 5,000, ,987, ,993, AA Aa /01/ GAA Exxon Mobil 03/20/2014 5,000, ,002, ,000, AAA Aaa /15/ G5H GENERAL ELEC CAP CORP 10/17/2011 5,000, ,112, ,999, AA Aa /17/ USC Goldman Sachs Group 02/08/2011 5,000, ,026, ,999, A A 37 02/07/ QM American Honda 02/19/2013 3,000, ,997, ,999, A A /16/ AY Johnson & Johnson 05/20/2011 3,000, ,021, ,999, AAA Aaa /15/ BL Johnson & Johnson 01/12/2015 5,145, ,156, ,147, /21/ BL Johnson & Johnson 01/13/2015 5,000, ,010, ,002, /21/ AP Microsoft Corp 01/28/2014 2,220, ,216, ,204, AAA /15/ BG Microsoft Corp 11/03/2015 4,000, ,004, ,996, ,768 11/03/ BF Microsoft Corp 11/03/2015 5,000, ,990, ,995, ,037 11/03/ WBR New York Life 02/13/2014 5,000, ,998, ,007, AA Aaa /01/ CL Pepsico 11/17/2015 5,525, ,528, ,536, A Aa /22/ AZ Royal Dutch Shell 12/24/2013 6,228, ,237, ,232, AA Aa /15/ BP Royal Dutch Shell 11/10/2015 1,000, , , ,775 11/10/ BM Royal Dutch Shell 11/10/2015 1,000, , , ,044 11/10/ TAL TOYOTA MOTOR CRE 05/17/2013 3,000, ,003, ,999, A A /17/ BFG WELLS FARGO CO 05/15/2013 5,000, ,009, ,001, A A /16/ BFW WELLS FARGO CO 02/03/2015 5,000, ,001, ,001, /02/ BFL WELLS FARGO CO 06/29/2015 5,000, ,015, ,013, /20/2016 Portfolio CITY AP Run Date: 01/12/ :07 PM (PRF_PM2)

20 CITY OF ANAHEIM Portfolio Management Page 3 Portfolio Details - Investments December 31, 2015 CUSIP Investment # Issuer Average Balance Purchase Date Par Value Market Value Book Value Stated Rate Days to S&P Moody's Maturity Maturity Date Subtotal and Average 98,189, ,118, ,372, ,161, Commercial Paper Disc. -Amortizing 19121AAS COCA COLA 10/22/2015 5,250, ,249, ,249, A-1 P /26/ ACP COCA COLA 12/08/2015 5,000, ,995, ,995, A-1 P /23/ R2BP Disney 12/08/2015 5,000, ,997, ,997, A-1 P /23/ AC Exxon Mobil 11/23/2015 5,000, ,998, ,998, A-1 P /07/ ABN Exxon Mobil 11/23/2015 5,000, ,998, ,998, A-1 P /22/ TBB Honeywell Intl 11/16/2015 5,000, ,998, ,998, A-1 P /11/ TAR METROPOLITAN LIFE 11/03/2015 5,000, ,999, ,999, A-1 P /25/ EAD PFIZER, INC 11/03/2015 5,000, ,999, ,999, A-1 P /13/ ECE PFIZER, INC 12/10/2015 5,000, ,996, ,996, A-1 P /14/ GAE TOYOTA MOTOR CREDIT 10/22/ ,000, ,999, ,999, A-1 P /14/2016 Subtotal and Average 64,392, ,250, ,233, ,233, Total and Average 422,585, ,599, ,139, ,577, Portfolio CITY AP Run Date: 01/12/ :07 PM (PRF_PM2)

21 CITY OF ANAHEIM Inventory by Maturity Report December 31, 2015 CUSIP Investment # Fund Sec. Type Issuer Purchase Date Book Current Value Rate Maturity Date Maturity Amount Total Days Par Value YTM Days to Maturity SYS PA1 LAIF 07/01/ ,239, ,239, ,239, SYS PA1 LAIF 07/01/ SYS PA1 LAIF 07/01/ ,270, ,270, ,270, SYS PA2 GOLDMAN SACHS PRIME 07/01/2015 1,469, ,469, ,469, SYS PA2 FIDELITY GOVERNMENT 07/01/ , , , EAD ACP PFIZER, INC 11/03/2015 4,999, /13/2016 5,000, ,000, GAE ACP TOYOTA MOTOR CREDIT 10/22/2015 9,999, /14/ ,000, ,000, TAR ACP METROPOLITAN LIFE 11/03/2015 4,999, /25/2016 5,000, ,000, AAS ACP COCA COLA 10/22/2015 5,249, /26/2016 5,250, ,250, USC MTN Goldman Sachs Group 02/08/2011 4,999, /07/2016 5,000, ,825 5,000, TBB ACP Honeywell Intl 11/16/2015 4,998, /11/2016 5,000, ,000, ABN ACP Exxon Mobil 11/23/2015 4,998, /22/2016 5,000, ,000, R2BP ACP Disney 12/08/2015 4,997, /23/2016 5,000, ,000, AC ACP Exxon Mobil 11/23/2015 4,998, /07/2016 5,000, ,000, ECE ACP PFIZER, INC 12/10/2015 4,996, /14/2016 5,000, ,000, ACP ACP COCA COLA 12/08/2015 4,995, /23/2016 5,000, ,000, AY MTN Johnson & Johnson 05/20/2011 2,999, /15/2016 3,000, ,822 3,000, TAL MTN TOYOTA MOTOR CRE 05/17/2013 2,999, /17/2016 3,000, ,096 3,000, AC MTN CHEVRON 06/24/2013 2,000, /24/2016 2,000, ,096 2,000, A0JL FAC FEDERAL HOME LOAN 01/30/2014 4,499, /27/2016 4,500, ,500, G0XP FAC FED NATL MORTGAGE 05/22/2013 4,997, /05/2016 5,000, ,140 5,000, BFL MTN WELLS FARGO CO 06/29/2015 5,013, /20/2016 5,000, ,000, G5H MTN GENERAL ELEC CAP 10/17/2011 4,999, /17/2016 5,000, ,827 5,000, G0WY FAC FED NATL MORTGAGE 05/22/2013 5,000, /14/2016 5,000, ,272 5,000, AZ MTN Royal Dutch Shell 12/24/2013 6,232, /15/2016 6,228, ,057 6,228, G3Z FAC FED HOME LOAN MORT 12/12/ ,000, /05/ ,000, ,454 10,000, G04R FAC FED NATL MORTGAGE 12/13/2012 5,000, /21/2017 5,000, ,531 5,000, EADT FAC FED HOME LOAN MORT 01/29/2014 9,999, /22/ ,000, ,120 10,000, CL MTN Pepsico 11/17/2015 5,536, /22/2017 5,525, ,525, WBR MTN New York Life 02/13/2014 5,007, /01/2017 5,000, ,112 5,000, N FAC FEDERAL HOME LOAN 03/19/2014 5,005, /10/2017 5,000, ,087 5,000, GAA MTN Exxon Mobil 03/20/2014 5,000, /15/2017 5,000, ,091 5,000, G0ZB FAC FED NATL MORTGAGE 01/29/2015 5,005, /20/2017 5,000, ,000, BFW MTN WELLS FARGO CO 02/03/2015 5,001, /02/2017 5,000, ,000, EADL FAC FED HOME LOAN MORT 01/31/2014 6,994, /29/2017 7,012, ,337 7,012, Portfolio CITY AP Run Date: 01/12/ :41 IM (PRF_IM) Report Ver

22 CITY OF ANAHEIM Inventory by Maturity Report Page 2 CUSIP Investment # Fund Sec. Type Issuer Purchase Book Current Date Value Rate Maturity Date Maturity Amount Total Days Par Value YTM A4TR FAC FEDERAL HOME LOAN 03/30/2015 5,001, /16/2017 5,000, ,000, G0PQ FAC FED NATL MORTGAGE 03/25/2014 4,966, /26/2017 5,000, ,311 5,000, G1L FAC FED NATL MORTGAGE 01/16/2015 5,001, /08/2017 5,000, ,027 5,000, AP MTN Microsoft Corp 01/28/2014 2,204, /15/2017 2,220, ,387 2,220, AL MTN CHEVRON 06/29/2015 5,012, /15/2017 5,000, ,000, BL MTN Johnson & Johnson 01/12/2015 5,147, /21/2017 5,145, ,044 5,145, BL MTN Johnson & Johnson 01/13/2015 5,002, /21/2017 5,000, ,043 5,000, G83V FAC FED HOME LOAN MORT 11/24/2015 4,999, /24/2017 5,000, ,000, EEFE FAC FEDERAL FARM CREDIT 12/18/2014 4,998, /18/2017 5,000, ,096 5,000, EADN FAC FED HOME LOAN MORT 03/30/2015 6,975, /12/2018 7,000, ,019 7,000, BFG MTN WELLS FARGO CO 05/15/2013 5,001, /16/2018 5,000, ,707 5,000, ECE FAC FEDERAL FARM CREDIT 01/30/2013 8,930, /30/2018 8,930, ,826 8,930, G0TM FAC FED NATL MORTGAGE 01/30/2013 5,000, /30/2018 5,000, ,826 5,000, G0TV FAC FED NATL MORTGAGE 01/30/ ,000, /30/ ,000, ,826 10,000, G0TV FAC FED NATL MORTGAGE 01/30/2013 6,250, /30/2018 6,250, ,826 6,250, QM MTN American Honda 02/19/2013 2,999, /16/2018 3,000, ,823 3,000, EADP FAC FED HOME LOAN MORT 04/14/2014 1,586, /07/2018 1,600, ,423 1,600, EADP FAC FED HOME LOAN MORT 05/15/2014 4,961, /07/2018 5,000, ,392 5,000, A FAC FEDERAL HOME LOAN 03/19/ ,024, /09/ ,000, ,451 10,000, EFSG FAC FEDERAL FARM CREDIT 12/14/2015 5,000, /14/2018 5,000, ,000, BA MTN COCA COLA 01/15/2015 4,993, /01/2018 5,000, ,172 5,000, G42R FAC FED HOME LOAN MORT 05/22/2013 5,000, /25/2018 5,000, ,799 5,000, ECBY FAC FEDERAL FARM CREDIT 01/16/2015 5,374, /26/2018 5,375, ,196 5,375, G0WJ FAC FED NATL MORTGAGE 05/22/2013 4,986, /21/2018 5,000, ,825 5,000, G0WJ FAC FED NATL MORTGAGE 03/25/2014 7,199, /21/2018 7,307, ,518 7,307, AE MTN CHEVRON 06/24/2013 3,000, /24/2018 3,000, ,826 3,000, AE MTN CHEVRON 12/07/2015 5,028, /24/2018 5,000, ,000, BF MTN Microsoft Corp 11/03/2015 4,995, /03/2018 5,000, ,096 5,000, , BM MTN Royal Dutch Shell 11/10/ , /10/2018 1,000, ,096 1,000, , G0YT FAC FED NATL MORTGAGE 02/25/2014 9,994, /27/ ,000, ,736 10,000, , G0ZA FAC FED NATL MORTGAGE 04/14/ ,075, /19/ ,000, ,772 10,000, , QK FAC FEDERAL HOME LOAN 05/15/ ,095, /08/ ,000, ,758 10,000, , EFPR FAC FEDERAL FARM CREDIT 11/19/2015 4,000, /19/2019 4,000, ,461 4,000, , G0ZY FAC FED NATL MORTGAGE 12/12/2014 5,000, /26/2019 5,000, ,810 5,000, , BG MTN Microsoft Corp 11/03/2015 3,996, /03/2020 4,000, ,827 4,000, , BP MTN Royal Dutch Shell 11/10/ , /10/2020 1,000, ,827 1,000, ,775 Days to Maturity Subtotal and Average 425,577, ,599, ,599, Net Maturities and Average 425,577, ,599, ,599, Portfolio CITY AP Run Date: 01/12/ :41 IM (PRF_IM) Report Ver

23 CITY OF ANAHEIM Summary by Issuer December 31, 2015 Issuer Number of Investments Par Value Book Value % of Portfolio Average YTM 365 Average Days to Maturity CHEVRON 4 15,000, ,040, COCA COLA 3 15,250, ,239, Disney 1 5,000, ,997, Exxon Mobil 3 15,000, ,997, FEDERAL FARM CREDIT BANK NOTES 5 28,305, ,302, FEDERAL HOME LOAN BANKS 5 34,500, ,627, FED HOME LOAN MORT CORP 8 50,612, ,517, FIDELITY GOVERNMENT MMKT 1 278, , FED NATL MORTGAGE ASSN 14 88,557, ,477, GENERAL ELEC CAP CORP 1 5,000, ,999, Goldman Sachs Group 1 5,000, ,999, GOLDMAN SACHS PRIME OBLIGATION 1 1,469, ,469, American Honda 1 3,000, ,999, Honeywell Intl 1 5,000, ,998, Johnson & Johnson 3 13,145, ,148, LAIF 3 67,509, ,509, METROPOLITAN LIFE 1 5,000, ,999, Microsoft Corp 3 11,220, ,196, ,228 New York Life 1 5,000, ,007, Pepsico 1 5,525, ,536, PFIZER, INC 2 10,000, ,996, Royal Dutch Shell 3 8,228, ,223, Portfolio CITY AP Run Date: 01/12/ :35 SI (PRF_SI) Report Ver

24 CITY OF ANAHEIM Summary by Issuer December 31, 2015 Page 2 Issuer Number of Investments Par Value Book Value % of Portfolio Average YTM 365 Average Days to Maturity TOYOTA MOTOR CREDIT 1 10,000, ,999, TOYOTA MOTOR CRE 1 3,000, ,999, WELLS FARGO CO 3 15,000, ,016, Total and Average ,599, ,577, Portfolio CITY AP Run Date: 01/12/ :35 SI (PRF_SI) Report Ver

25 CITY OF ANAHEIM Portfolio Management Page 1 Interest Earnings Summary December 31, 2015 December 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 226, ,885, Plus Accrued Interest at End of Period 854, , Less Accrued Interest at Beginning of Period ( 781,654.64) ( 911,090.75) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 299, ,829, Adjusted by Premiums and Discounts 11, , Adjusted by Capital Gains or Losses , Pass Through Securities: Earnings during Periods 311, ,900, Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Cash/Checking Accounts: Earnings during Periods Interest Collected , Plus Accrued Interest at End of Period 45, , Less Accrued Interest at Beginning of Period ( 29,644.32) ( 45,343.60) Interest Earned during Period 15, , Total Interest Earned during Period 315, ,920, Total Adjustments from Premiums and Discounts 11, , Total Capital Gains or Losses , Total Earnings during Period 327, ,991, Portfolio CITY AP Run Date: 01/12/ :07 PM (PRF_PM6) Report Ver

26 CITY OF ANAHEIM Interest Earnings Sorted by Security Type - Maturity Date December 1, December 31, 2015 Yield on Beginning Book Value Adjusted Interest Earnings CUSIP Investment # Fund Issuer Ending Par Value Beginning Book Value Ending Book Value Maturity Date Current Annualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Security Type: Federal Agency Issues - Coupon 3130A0JL FHLB 4,500, ,499, ,499, /27/ , , G0XP FNMA 5,000, ,997, ,997, /05/ , , G0WY FNMA 5,000, ,000, ,000, /14/ , , G3Z FHLMC 10,000, ,000, ,000, /05/ , , G04R FNMA 5,000, ,000, ,000, /21/ , , EADT FHLMC 10,000, ,999, ,999, /22/ , , N FHLB 5,000, ,005, ,005, /10/ , , G0ZB FNMA 5,000, ,005, ,005, /20/ , , EADL FHLMC 7,012, ,993, ,994, /29/ , , A4TR FHLB 5,000, ,001, ,001, /16/ , , G0PQ FNMA 5,000, ,965, ,966, /26/ , , , G1L FNMA 5,000, ,001, ,001, /08/ , , G83V FHLMC 5,000, ,999, ,999, /24/ , , EEFE FFCB 5,000, ,998, ,998, /18/ , , EADN FHLMC 7,000, ,974, ,975, /12/ , , , G0TV FNMA 6,250, ,250, ,250, /30/ , , G0TV FNMA 10,000, ,000, ,000, /30/ , , G0TM FNMA 5,000, ,000, ,000, /30/ , , ECE FFCB 8,930, ,930, ,930, /30/ , , EADP FHLMC 1,600, ,586, ,586, /07/ , , EADP FHLMC 5,000, ,959, ,961, /07/ , , , A FHLB 10,000, ,025, ,024, /09/ , , EFSG FFCB 5,000, ,000, /14/ , , G42R FHLMC 5,000, ,000, ,000, /25/ , , ECBY FFCB 5,375, ,374, ,374, /26/ , , G0WJ FNMA 5,000, ,986, ,986, /21/ , , G0WJ FNMA 7,307, ,195, ,199, /21/ , , , G0YT FNMA 10,000, ,994, ,994, /27/ , , G0ZA FNMA 10,000, ,077, ,075, /19/ , , , Portfolio CITY AP Run Date: 01/12/ :38 IE (PRF_IE) Report Ver

27 CITY OF ANAHEIM Interest Earnings Page 2 December 1, December 31, 2015 Adjusted Interest Earnings CUSIP Investment # Fund Issuer Ending Par Value Beginning Book Value Ending Book Value Maturity Date Current Annualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Security Type: Federal Agency Issues - Coupon QK FHLB 10,000, ,097, ,095, /08/ , , , EFPR FFCB 4,000, ,000, ,000, /19/ , , G0ZY FNMA 5,000, ,000, ,000, /26/ , , Subtotal 201,974, ,920, ,924, , , , Security Type: Passbook/Checking Accounts SYS LAIF 33,239, ,239, ,239, , , SYS LAIF 34,270, ,270, ,270, , , Subtotal 67,509, ,509, ,509, , , Security Type: Money Market Mutual Fund SYS GOLDSA 1,469, ,469, ,469, SYS FIDELI 278, ,067, , Subtotal 1,748, ,537, ,748, Security Type: Medium Term Notes 38143USC GOLDMA 5,000, ,999, ,999, /07/ , , AY JNJ 3,000, ,999, ,999, /15/ , , TAL TOYOTA 3,000, ,999, ,999, /17/ , , AC CHEVRN 2,000, ,000, ,000, /24/ , , BFL WFCNEW 5,000, ,015, ,013, /20/ , , , G5H GECC 5,000, ,998, ,999, /17/ , , AZ RDSALN 6,228, ,232, ,232, /15/ , , CL PEPSIC 5,525, ,537, ,536, /22/ , , WBR NYLCPP 5,000, ,007, ,007, /01/ , , GAA EXXON 5,000, ,000, ,000, /15/ , , BFW WFCNEW 5,000, ,001, ,001, /02/ , , AL CHEVRN 5,000, ,012, ,012, /15/ , , AP MSFT 2,220, ,203, ,204, /15/ , , BL JNJ 5,145, ,147, ,147, /21/ , , BL JNJ 5,000, ,002, ,002, /21/ , , BFG WFCNEW 5,000, ,001, ,001, /16/ , , QM HNDA 3,000, ,999, ,999, /16/ , , BA COCA C 5,000, ,993, ,993, /01/ , , AE CHEVRN 5,000, ,028, /24/ , , AE CHEVRN 3,000, ,000, ,000, /24/ , , Portfolio CITY AP Run Date: 01/12/ :38 IE (PRF_IE) Report Ver

28 CITY OF ANAHEIM Interest Earnings Page 3 December 1, December 31, 2015 Adjusted Interest Earnings CUSIP Investment # Fund Issuer Ending Par Value Beginning Book Value Ending Book Value Maturity Date Current Annualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Security Type: Medium Term Notes BF MSFT 5,000, ,995, ,995, /03/ , , BM RDSALN 1,000, , , /10/ , , BG MSFT 4,000, ,996, ,996, /03/ , , BP RDSALN 1,000, , , /10/ , , Subtotal 99,118, ,135, ,161, , , , Security Type: Commercial Paper Disc. -Amortizing 43851UZE HONIPP ,999, /14/ MZP GE COM ,999, /23/ GZV IBM ,999, /29/ EAD PFEPP 5,000, ,999, ,999, /13/ GAE TOYCC 10,000, ,997, ,999, /14/ , , TAR MET-LF 5,000, ,998, ,999, /25/ AAS COCA C 5,250, ,248, ,249, /26/ TBB HONIPP 5,000, ,997, ,998, /11/ ABN EXXON 5,000, ,998, ,998, /22/ R2BP DISNEY 5,000, ,997, /23/ , , AC EXXON 5,000, ,997, ,998, /07/ ECE PFEPP 5,000, ,996, /14/ , , ACP COCA C 5,000, ,995, /23/ , , Subtotal 55,250, ,236, ,233, , , Total 425,599, ,339, ,577, , , , Portfolio CITY AP Run Date: 01/12/ :38 IE (PRF_IE) Report Ver

29 CITY OF ANAHEIM Accrued Interest Sorted by Security Type - Maturity Date December 1, December 31, 2015 CUSIP Investment # Security Type Par Value Maturity Date Current Rate * Beginning Accrued Interest Adjusted Acc'd Int. at Purchase During Period Interest Earned Interest Received * Ending Accrued Interest Federal Agency Issues - Coupon 31331J3T FAC /01/ , , J3T FAC /01/ , , A0JL FAC 4,500, /27/ , , , G0XP FAC 5,000, /05/ , , , G0WY FAC 5,000, /14/ , , , G3Z FAC 10,000, /05/ , , , , G04R FAC 5,000, /21/ , , , EADT FAC 10,000, /22/ , , , N FAC 5,000, /10/ , , , G0ZB FAC 5,000, /20/ , , , EADL FAC 7,012, /29/ , , , A4TR FAC 5,000, /16/ , , , G0PQ FAC 5,000, /26/ , , , G1L FAC 5,000, /08/ , , , G83V FAC 5,000, /24/ , , EEFE FAC 5,000, /18/ , , , , EADN FAC 7,000, /12/ , , , ECE FAC 8,930, /30/ , , , G0TM FAC 5,000, /30/ , , , G0TV FAC 10,000, /30/ , , , G0TV FAC 6,250, /30/ , , , EADP FAC 1,600, /07/ , , , EADP FAC 5,000, /07/ , , , A FAC 10,000, /09/ , , , EFSG FAC 5,000, /14/ , , G42R FAC 5,000, /25/ , , , ECBY FAC 5,375, /26/ , , , G0WJ FAC 5,000, /21/ , , , G0WJ FAC 7,307, /21/ , , , G0YT FAC 10,000, /27/ , , , G0ZA FAC 10,000, /19/ , , , QK FAC 10,000, /08/ , , , EFPR FAC 4,000, /19/ , , , G0ZY FAC 5,000, /26/ , , , * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest. Portfolio CITY AC Run Date: 01/12/ :37 AI (PRF_AI) Report Ver

30 CITY OF ANAHEIM Accrued Interest Sorted by Security Type - Maturity Date Page 2 CUSIP Investment # Security Type Par Value Adjusted Acc'd Int. Maturity Current * Beginning at Purchase Date Rate Accrued Interest During Period Interest Earned Interest Received * Ending Accrued Interest Subtotal 201,974, , , , , Passbook/Checking Accounts SYS PA1 33,239, , , , SYS PA1 34,270, , , , Money Market Mutual Fund Subtotal 67,509, , , , SYS PA2 278, SYS PA2 1,469, Medium Term Notes Subtotal 1,748, USC MTN 5,000, /07/ , , , AY MTN 3,000, /15/ , , , TAL MTN 3,000, /17/ , , AC MTN 2,000, /24/ , , , BFL MTN 5,000, /20/ , , , G5H MTN 5,000, /17/ , , , AZ MTN 6,228, /15/ , , , CL MTN 5,525, /22/ , , , WBR MTN 5,000, /01/ , , , GAA MTN 5,000, /15/ , , , BFW MTN 5,000, /02/ , , , , AL MTN 5,000, /15/ , , , AP MTN 2,220, /15/ , , BL MTN 5,145, /21/ , , , BL MTN 5,000, /21/ , , , BFG MTN 5,000, /16/ , , , QM MTN 3,000, /16/ , , , BA MTN 5,000, /01/ , , , AE MTN 3,000, /24/ , , , , AE MTN 5,000, /24/ , , , , BF MTN 5,000, /03/ , , , BM MTN 1,000, /10/ , , BG MTN 4,000, /03/ , , , BP MTN 1,000, /10/ , , , Subtotal 99,118, , , , , , Total 370,349, , , , , , * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest. Portfolio CITY AC Run Date: 01/12/ :37 AI (PRF_AI) Report Ver

31 CITY OF ANAHEIM Realized Gains and Losses Sorted By Maturity/Sale/Call Date Sales/Calls/Maturities: December 1, December 31, 2015 Investment # Par Value Sale Date Days Held Inv. Purchase Issuer Type Date Current Rate Maturity Date Term Book Value Maturity/Sale Proceeds Realized Gain/Loss Total Earnings Total Total Net Earnings Yield FAC 01/07/2011 5,000, /01/2015 1,789 5,000, ,000, , , FEDERAL FARM CREDIT BANK NOTES /01/2015 1, FAC 01/24/2011 5,000, /01/2015 1,772 5,000, ,000, , , FEDERAL FARM CREDIT BANK NOTES /01/2015 1, ACP 10/28/2015 5,000, /14/ ,000, ,000, Honeywell Intl /14/ ACP 10/28/2015 5,000, /23/ ,000, ,000, , , GE COMPANY COMMERICAL PAPER /23/ ACP 10/22/2015 8,000, /29/ ,000, ,000, , , International Business Machine /29/ Total Realized Gains/Losses 28,000, ,000, ,094, ,094, Portfolio CITY AP Run Date: 01/12/ :34 CG (PRF_CGR1) Report Ver

32 CITY OF ANAHEIM Transaction Activity Report December 1, December 31, 2015 Sorted by Transaction Date - Transaction Date All Funds Investment # Fund CUSIP Inv Descrip TransactionType Dealer Issuer New Principal Principal Paydowns Interest J3T8 FEDERAL FARM CR Redemption JP Morgan FEDERAL FARM 5,000, ,000, J3T8 FEDERAL FARM CR Redemption JP Morgan FEDERAL FARM 5,000, ,000, SYS500 GOLDSA 0.966% Redemption GOLDMAN SACHS J3T8 FEDERAL FARM CR Interest JP Morgan FEDERAL FARM 43, , J3T8 FEDERAL FARM CR Interest JP Morgan FEDERAL FARM 43, , SYS500 GOLDSA 0.966% Interest GOLDMAN SACHS SYS500 GOLDSA 0.966% Purchase GOLDMAN SACHS Totals for 12/01/ ,000, , ,087, BFW5 WELLS FARGO CO Interest WELLS FARGO CO 28, , Totals for 12/02/ , , G3Z37 FEDERAL HOME LN Interest CREDIT SUISSE FED HOME LOAN 31, , Totals for 12/05/ , , AE0 CHEVRN 1.718% Purchase CHEVRON 5,068, ,068, Totals for 12/07/2015 5,068, ,068, ACP4 COCA C DISC NOTE Purchase BANK OF AMERICA COCA COLA 4,994, ,994, R2BP0 DISNEY DISC NOTE Purchase BANK OF AMERICA Disney 4,996, ,996, Totals for 12/08/2015 9,991, ,991, ECE3 PFEPP DISC NOTE Purchase JP Morgan PFIZER, INC 4,995, ,995, Totals for 12/10/2015 4,995, ,995, EFSG3 FEDERAL FARM CR Purchase FEDERAL FARM 5,000, ,000, UZE6 HONIPP DISC NOTE Redemption JP Morgan Honeywell Intl 5,000, ,000, Totals for 12/14/2015 5,000, ,000, EEFE5 FFCB 1.125% MAT Interest WELLS FARGO FEDERAL FARM 28, , Totals for 12/18/ , , MZP1 GE COM DISC NOTE Redemption GE COMPANY 5,000, ,000, Totals for 12/23/2015 5,000, ,000, AE0 CHEVRN 1.718% Interest JP Morgan CHEVRON 25, , AC4 CHEVRON CORP Interest JP Morgan CHEVRON 8, , AE0 CHEVRN 1.718% Interest CHEVRON 42, , AE0 CHEVRN 1.718% Accr Int CHEVRON 38, , Total Cash Portfolio CITY AP Run Date: 01/12/ :45 TA (PRF_TA) Report Ver

33 CITY OF ANAHEIM Transaction Activity Report Page 2 Sorted by Transaction Date - Transaction Date New Principal Total Investment # Fund CUSIP Inv Descrip TransactionType Dealer Issuer Principal Paydowns Interest Cash Totals for 12/24/ , , , A0JL5 FEDERAL HOME Interest WELLS FARGO FEDERAL HOME 11, , Totals for 12/27/ , , SYS17430 LAIF 1.469% Purchase LAIF 9,000, ,000, SYS17432 LAIF 0.385% Purchase LAIF 9,000, ,000, GZV1 IBM DISC NOTE MATRedemption BANK OF AMERICA International Busine 8,000, ,000, Totals for 12/29/ ,000, ,000, ,000, SYS500 GOLDSA 0.966% Purchase GOLDMAN SACHS Totals for 12/31/ Grand Total 43,054, ,038, , ,789, Portfolio CITY AP Run Date: 01/12/ :45 TA (PRF_TA) Report Ver

34 Quarterly Economic and Market Update December

35 Economic and Market Update 12/31/2015 Item 12/31/2015 9/30/2015 Change U.S. Payrolls Monthly Change 292, , ,000 Unemployment Rate 5.0% 5.1% -0.1% Labor Force Participation 62.6% 62.4% 0.2% Effective Fed Funds Rate 0.35% 0.07% 0.28% Next Fed Funds Hike** Jul 2016 Dec Month 3 Month T-Bill 0.147% % 0.162% 2 Year T-Note 1.073% 0.631% 0.442% 3 Year T-Note 1.343% 0.902% 0.441% 5 Year T-Note 1.793% 1.358% 0.435% 10 Year T-Note 2.295% 2.038% 0.257% U.S. Fed Debt Avg Yield 2.062% 2.043% 0.019% 30 Year Mortgage Rate 3.93% 3.840% 0.09% 1-5 Yr Agency Spread 0.06% 0.07% -0.01% 1-5 Yr Corporate Spread 0.81% 0.930% -0.12% Dow Jones 17,604 16, % S&P 500 2,063 1, % Consumer Price Index YOY* 0.5% 0.0% 0.5% U.S. Avg Regular Unleaded $2.00 $2.29 -$0.29 Retail Sales YOY* 2.4% 2.2% 0.2% Case-Shiller Home Prices YOY* 5.5% 5.4% 0.2% Gold (per ounce) $1, $1, $53.65 Dollar Index Consumer Confidence *Estimates for the current quarter/month, some data are lagged **Next Projected Fed Funds Hike is first month Fed Funds Futures are.625% or higher Sources: FTN Main Street and Bloomberg 33

36 Economic and Market Update 12/31/2015 U.S. GDP (Quarter over Quarter Annualized)* Percen t Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Estimates * Real Rate (Inflation Adjusted) Estimate: Bloomberg's Survey of Economists Source: Bureau of Economic Analysis As of: 12/31/15 34

37 Economic and Market Update 12/31/2015 U.S. Annual GDP * Percen t s 2.94% s 3.04% 1990s 3.30% 2000s 1.88% 2010s 2.12% * Real Rate (Inflation Adjusted) Estimate: Bloomberg's Survey of Economists Source: Bureau of Economic Analysis As of: 12/31/15 35

38 Economic and Market Update 12/31/ U.S. Monthly Non-Farm Payrolls Change Unemployment Rates Nevada U.S.A California Idaho Washington Thou san ds Percen t Jun -11 Sep -11 Dec-11 Mar-12 Jun -12 Sep -12 Dec-12 Mar-13 Jun -13 Sep -13 Dec-13 Mar-14 Jun -14 Sep -14 Dec -14 Mar-15 Jun -15 Sep -15 Dec-15 3 Jun -11 Aug-11 Oct-11 Dec-11 Fe b-12 Apr-12 Jun -12 Aug-12 Oct-12 Dec-12 Fe b-13 Apr-13 Jun -13 Aug-13 Oct-13 Dec-13 Fe b-14 Apr-14 Jun -14 Aug-14 Oct-14 Dec-14 Fe b-15 Apr-15 Jun -15 Aug-15 Oct-15 Dec Month Average Job Change 220,833 Source: Bureau of Labor Statistics 36

39 Economic and Market Update 12/31/2015 M illions Dec-05 May-06 Oct-06 Mar-07 Aug-07 U.S. Number of Employed Full-Time and Part-TIme Jan -08 Jun -08 Nov-08 Apr-09 Sep -09 Fe b-10 Ju l-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan -13 Jun -13 Nov-13 Apr-14 Sep -14 Fe b-15 Ju l-15 Dec-15 Per cen t Dec-05 May-06 Oct-06 U.S. Labor Force Participation Rate Mar-07 Aug-07 Jan -08 Jun -08 Nov-08 Apr-09 Sep -09 Fe b-10 Ju l-10 Dec -10 May-11 Oct-11 Mar-12 Aug-12 Jan -13 Jun -13 Nov-13 Apr-14 Sep -14 Fe b-15 Ju l-15 Dec-15 Source: Bureau of Labor Statistics 37

40 Economic and Market Update 12/31/2015 #### 700 Weekly Initial Jobless Claims (4 Week Moving Average) Thou sa nds Weekly Initial Jobless Claims is the actual number of people who have filed for Unemployment benefits for the first time. The following five eligibility criteria must be met in order to file for unemployment benefits: 1. Meet the requirements of time worked during a 1 year period (full time or not). 2. Become unemployed through no fault of your own (cannot be fired). 3. Must be able to work; no physical or mental holdbacks. 4. Must be available for work. 5. Must be actively seeking work. Source: Department of Labor and Bloomberg 38

41 Economic and Market Update 12/31/2015 U.S. Real* Retail Sales YOY % Change U.S. Consumer Confidence Per cen t 2 1 Index Va lue Jun -11 Aug-11 Oct-11 Dec-11 Fe b-12 Apr-12 Jun -12 Aug-12 Oct-12 Dec-12 Fe b-13 Apr-13 Jun -13 Aug-13 Oct-13 Dec-13 Fe b-14 Apr-14 Jun -14 Aug-14 Oct-14 Dec-14 Fe b-15 Apr-15 Jun -15 Aug-15 Oct Jun -05 Nov-05 Apr-06 Sep -06 Fe b-07 Ju l-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan -10 Jun -10 Nov-10 Apr-11 Sep -11 Fe b-12 Ju l-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan -15 Jun -15 Nov-15 *Real: Inflation Adjusted Source: U.S. Census Bureau Source: Conference Board 39

42 Economic and Market Update 12/31/2015 CPI and CPIX* YOY % Change CPI CPIX Per cen t Jun -11 Ju l-11 Aug-11 Sep -11 Oct-11 Nov-11 Dec-11 Jan -12 Fe b-12 Mar-12 Apr-12 May-12 Jun -12 Ju l-12 Aug-12 Sep -12 Oct-12 Nov-12 Dec-12 Jan -13 Fe b-13 Mar-13 Apr-13 May-13 Jun -13 Ju l-13 Aug-13 Sep -13 Oct-13 Nov-13 Dec-13 Jan -14 Fe b-14 Mar-14 Apr-14 May-14 Jun -14 Ju l-14 Aug-14 Sep -14 Oct-14 Nov-14 Dec-14 Jan -15 Fe b-15 Mar-15 Apr-15 May-15 Jun -15 Ju l-15 Aug-15 Sep -15 Oct-15 Nov-15 *CPIX: Consumer Price Index, excluding food and energy Source: Bureau of Labor Statistics 40

43 Economic and Market Update 12/31/ Case-Shiller 20 City U.S. Home Price Index YOY % Increase 6 U.S. New and Existing Home Sales Existing-Left New-Right 800 YOY Per cen t Existing -Millions New -Thousan ds Ju l-07 Nov-07 Mar-08 Ju l-08 Nov-08 Mar-09 Ju l-09 Nov-09 Mar-10 Ju l-10 Nov-10 Mar-11 Ju l-11 Nov-11 Mar-12 Ju l-12 Nov-12 Mar-13 Ju l-13 Nov-13 Mar-14 Ju l-14 Nov-14 Mar-15 Ju l-15 3 J un Nov-07 Apr-08 Sep -08 Fe b-09 Ju l-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan -12 Jun -12 Nov-12 Apr-13 Sep -13 Fe b-14 Ju l-14 Dec-14 May-15 Oct Sources: New (U.S. Census Bureau),Existing (National Assoc. of Realtors) Source: Case-Shiller Seasonally Adjusted Annual Rate 41

44 Economic and Market Update 12/31/2015 U.S. Federal Debt Outstanding U.S. Treasury Interest Bearing Debt Avg Rate $ $19 $ $17 $ Tr illions $15 $14 $13 $12 Per cen t $ $10 $9 2.5 $8 $7 2.0 $6 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan -08 Jun -08 Nov-08 Apr-09 Sep -09 Fe b-10 Ju l-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan -13 Jun -13 Nov-13 Apr-14 Sep -14 Fe b-15 Ju l-15 Dec Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan -08 Jun -08 Nov-08 Apr-09 Sep -09 Fe b-10 Ju l-10 Dec -10 May-11 Oct-11 Mar-12 Aug-12 Jan -13 Jun -13 Nov-13 Apr-14 Sep -14 Fe b-15 Ju l-15 Dec-15 Source: U.S. Treasury 42