Q1-FY2014. Quarterly Investment Report. Ethel Hart Mutual Endowment Fund. September 30, 2013

Transcription

1 Russell Fehr, City Treasurer Quarterly Investment Report September 30, 2013 Q1-FY2014

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

3 September 30, 2013 Performance Quarter To Date Inception To Date Account SBBIG S&P TWR Quarter To Date Inception To Date Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended September 30, Interest Rates June 28, 2013 September 30, 2013 Interest Rates Russell 3000 ACWI Ex U.S. Emerging Markets Fixed Income Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities 2 0 1st Qtr Cash Page 3 of 8

4 September 30, 2013 Activity From to Portfolio Value on ,998,257 Contributions 0 Withdrawals 0 Realized Gains 0 Unrealized Gains 43,693 Interest 913 Dividends 13,904 Portfolio Value on ,056,767 Actual Asset Allocation Cash and Equivalents 1.07% Equities 98.93% Top 10 Holdings Securities Market Value Pct. Ishares US Technology ETF 185, Select Sector Spdr Tr Sbi Int-Finl 99, Merck & Co Inc (new) 61, Canadian Pac Ltd New Com 61, Select Sector Spdr Tr Sbi Cons Discr 60, Green Mtn Coffee Roast Com 60, Visa Inc Com Cl A 57, International Bus Mach 55, Pinnacle West Cap Corp 54, Ishares Russell 2000 ETF 53, Page 4 of 8

5 PORTFOLIO APPRAISAL September 30, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 4,634 4,634 4, miscintrec Misc Interest Receivable PoolA Pool A Cash 21,089 21,089 21, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -4,132-4,132-4, ,020 22,020 22, COMMON STOCK MATERIALS 400 mon Monsanto C0 New Com , ,748 41, A- INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,650 61, B+ 350 cat Caterpillar Inc Del Com , ,190 29, A+ 440 de Deere & Co Com , ,812 35, A 2,000 ge General Electric Co , ,780 47, A- 350 iyt Ishares Tr Transp Ave Idx , ,170 41, , , , TELECOMMUNICATION SERVICES 1,100 t At&t Inc , ,202 37, B+ 900 vz Verizon Communications Inc , ,007 42, B 73,739 79,209 79, CONSUMER DISCRETIONARY 600 dis Disney (walt) Com , ,694 38, A+ 800 gmcr Green Mtn Coffee Roast Com , ,264 60, B+ 400 hd Home Depot Inc , ,340 30, A 500 mcd Mcdonald's Corp , ,105 48, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,630 60, Discr 134, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,785 37, A- 400 clx Clorox Co , ,688 32, A 800 ko Coca Cola Co Com , ,304 30, A+ 700 mdlz Mondelez Intl Inc Cl A , ,995 21, B+ 550 pm Philip Morris Intl Inc Com , ,624 47, , , , ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,493 47, cvx Chevron Corporation , ,450 36, A+ 600 kmp Kinder Morgan Energy Partners Ltd , ,898 47, Page 5 of 8

6 PORTFOLIO APPRAISAL September 30, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 650 oih Market Vectors Etf Tr Oil Svcs Etf 525 xle Select Sector Spdr Tr Sbi Int-Energy , ,602 30, , ,527 43, , , , FINANCIAL 3,000 nly Annaly Cap Mgmt Inc Com , ,740 34, B 750 jpm Jpmorgan Chase & Co , ,767 38, B+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,121 29, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , ,525 99, kie Spdr S&p Insurance Etf , ,570 42, usb U. S. Bancorp , ,264 29, B+ 750 wfc Wells Fargo & Company , ,990 30, A- 260, , , HEALTHCARE 325 iyh Ishares US Healthcare ETF , ,749 34, jnj Johnson & Johnson , ,345 43, A+ 1,300 mrk Merck & Co Inc (new) , ,892 61, B 1,500 pfe Pfizer Inc , ,087 43, B+ 325 xbi Spdr Series Trust S&p Biotech , ,977 41, , , , INFORMATION TECHNOLOGY 60 aapl Apple Inc , ,605 28, B+ 300 ibm International Bus Mach , ,554 55, A+ 2,350 iyw Ishares US Technology ETF , , , ,000 msft Microsoft Corp , ,280 33, A- 300 v Visa Inc Com Cl A , ,330 57, , , , UTILITIES 700 d Dominion Res Va New Com , ,736 43, B+ 1,000 pnw Pinnacle West Cap Corp , ,740 54, B 72,640 98,476 98, PASSIVE INDEX 500 iwm Ishares Russell 2000 ETF , ,305 53, ,492,980 1,992,717 1,992, AMERICAN DEPOSITORY RECEIPTS ENERGY 1,000 bp BP Plc Sponsored Adr , ,030 42, ,250 42,030 42, Page 6 of 8

7 PORTFOLIO APPRAISAL September 30, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date TOTAL PORTFOLIO 1,557,250 2,056, ,056, Page 7 of 8

8 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Date Date Quantity Security Price Amount Price Difference Purchases COMMON STOCK ,400 Annaly Cap Mgmt Inc Com , Home Depot Inc , Wells Fargo & Company , ,831 AMERICAN DEPOSITORY RECEIPTS ,000 BP Plc Sponsored Adr , ,250 Total Purchases 122,081 Page 8 of 8

9 Russell Fehr, City Treasurer Quarterly Investment Report December 31, 2013 Q2-FY2014

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

11 December 31, 2013 Performance Quarter Inception Since To Date To Date Account SBBIG S&P TWR (0.15) Quarter To Date Inception To Date Since Dates Account SBBIG S&P 500 U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended December 31, 2013 Interest Rates September 30, 2013 December 31, 2013 Interest Rates Russell 3000 ACWI Ex U.S. Emerging Markets Fixed Income Cash Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr Maturities -2 2nd Qtr Page 3 of 8

12 December 31, 2013 Activity From to Portfolio Value on ,056,767 Contributions 0 Withdrawals 0 Realized Gains 0 Unrealized Gains 164,818 Interest 1,115 Dividends 15,048 Portfolio Value on ,237,748 Actual Asset Allocation Cash and Equivalents 1.71% Equities 98.29% Top 10 Holdings Securities Market Value Pct. Ishares US Technology ETF 207, Select Sector Spdr Tr Sbi Int-Finl 109, Canadian Pac Ltd New Com 75, Select Sector Spdr Tr Sbi Cons Discr 66, Visa Inc Com Cl A 66, Merck & Co Inc (new) 65, Keurig Green Mountain Inc 60, Ishares Russell 2000 ETF 57, International Bus Mach 56, General Electric Co 56, Page 4 of 8

13 PORTFOLIO APPRAISAL December 31, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 4,155 4,155 4, fidfund Fidelity Fund miscintrec Misc Interest Receivable PoolA Pool A Cash 37,632 37,632 37, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -4,132-4,132-4, ,184 38,184 38, COMMON STOCK MATERIALS 400 mon Monsanto C0 New Com , ,620 46, A INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,660 75, B+ 350 cat Caterpillar Inc Del Com , ,783 31, A+ 440 de Deere & Co Com , ,185 40, A 2,000 ge General Electric Co , ,060 56, A- 350 iyt Ishares Tr Transp Ave Idx , ,165 46, , , , TELECOMMUNICATION SERVICES 1,100 t At&t Inc , ,676 38, B+ 900 vz Verizon Communications Inc , ,226 44, B 73,739 82,902 82, CONSUMER DISCRETIONARY 600 dis Disney (Walt) Com , ,840 45, A+ 400 hd Home Depot Inc , ,936 32, A 800 gmcr Keurig Green Mountain Inc , ,432 60, B+ 500 mcd Mcdonald's Corp , ,515 48, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,830 66, Discr 134, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,229 42, A- 400 clx Clorox Co , ,104 37, A 800 ko Coca Cola Co Com , ,048 33, A+ 700 mdlz Mondelez Intl Inc Cl A , ,710 24, B+ 550 pm Philip Morris Intl Inc Com , ,921 47, , , , ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,033 48, cvx Chevron Corporation , ,473 37, A+ Page 5 of 8

14 PORTFOLIO APPRAISAL December 31, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 600 kmp Kinder Morgan Energy Partners Ltd 650 oih Market Vectors Etf Tr Oil Svcs Etf 525 xle Select Sector Spdr Tr Sbi Int-Energy , ,396 48, , ,245 31, , ,468 46, , , , FINANCIAL 3,000 nly Annaly Cap Mgmt Inc Com , ,910 29, B 750 jpm Jpmorgan Chase & Co , ,860 43, B+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,798 28, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , , , kie Spdr S&p Insurance Etf , ,317 47, usb U. S. Bancorp , ,320 32, B+ 750 wfc Wells Fargo & Company , ,050 34, A- 260, , , HEALTHCARE 325 iyh Ishares US Healthcare ETF , ,859 37, jnj Johnson & Johnson , ,795 45, A+ 1,300 mrk Merck & Co Inc (new) , ,065 65, B 1,500 pfe Pfizer Inc , ,945 45, B+ 325 xbi Spdr Series Trust S&p Biotech , ,315 42, , , , INFORMATION TECHNOLOGY 60 aapl Apple Inc , ,661 33, B+ 300 ibm International Bus Mach , ,271 56, A+ 2,350 iyw Ishares US Technology ETF , , , ,000 msft Microsoft Corp , ,410 37, A- 300 v Visa Inc Com Cl A , ,804 66, , , , UTILITIES 700 d Dominion Res Va New Com , ,283 45, B+ 1,000 pnw Pinnacle West Cap Corp , ,920 52, B 72,640 98,203 98, PASSIVE INDEX 500 iwm Ishares Russell 2000 ETF , ,680 57, ,492,980 2,150,954 2,150, Page 6 of 8

15 PORTFOLIO APPRAISAL December 31, 2013 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date AMERICAN DEPOSITORY RECEIPTS ENERGY 1,000 bp BP Plc Sponsored Adr , ,610 48, ,250 48,610 48, TOTAL PORTFOLIO 1,573,414 2,237, ,237, Page 7 of 8

16 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss No transactions within the specified date range were found! Page 8 of 8

17 Russell Fehr, City Treasurer Quarterly Investment Report March 31, 2014 Q3-FY2014

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

19 March 31, 2014 Performance Quarter Inception Since To Date To Date Account SBBIG S&P U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended March 31, 2014 Page 3 of 8

20 March 31, 2014 Activity From to Portfolio Value on ,237,748 Contributions 0 Withdrawals -95,000 Realized Gains 13,591 Unrealized Gains 42,412 Interest 1,264 Dividends 13,433 Portfolio Value on ,213,448 Top 10 Holdings Securities Market Value Pct. Ishares US Technology ETF 213, Select Sector Spdr Tr Sbi Int-Finl 111, Canadian Pac Ltd New Com 75, Merck & Co Inc (new) 73, Visa Inc Com Cl A 64, Select Sector Spdr Tr Sbi Cons Discr 64, Ishares Russell 2000 ETF 58, International Bus Mach 57, Pinnacle West Cap Corp 54, Keurig Green Mountain Inc 52, Page 4 of 8

21 PORTFOLIO APPRAISAL March 31, 2014 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 4,462 4,462 4, miscintrec Misc Interest Receivable PoolA Pool A Cash 23,312 23,312 23, intreceiv Pool A Interest Receivable slliab Securities Lending Liability -4,132-4,132-4, ,044 24,044 24, COMMON STOCK MATERIALS 400 mon Monsanto C0 New Com , ,508 45, A INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,215 75, B+ 350 cat Caterpillar Inc Del Com , ,779 34, A+ 440 de Deere & Co Com , ,952 39, A 2,000 ge General Electric Co , ,780 51, A- 350 iyt Ishares Tr Transp Ave Idx , ,407 47, , , , TELECOMMUNICATION SERVICES 1,100 t At&t Inc , ,577 38, B+ 900 vz Verizon Communications Inc , ,813 42, B 73,739 81,390 81, CONSUMER DISCRETIONARY 600 dis Disney (Walt) Com , ,042 48, A+ 400 hd Home Depot Inc , ,652 31, A 500 gmcr Keurig Green Mountain Inc , ,795 52, B+ 500 mcd Mcdonald's Corp , ,015 49, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,720 64, Discr 126, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,173 41, A- 400 clx Clorox Co , ,204 35, A 800 ko Coca Cola Co Com , ,928 30, A+ 700 mdlz Mondelez Intl Inc Cl A , ,185 24, B+ 550 pm Philip Morris Intl Inc Com , ,028 45, , , , ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,682 47, cvx Chevron Corporation , ,673 35, A+ 600 kmp Kinder Morgan Energy Partners Ltd , ,370 44, Page 5 of 8

22 PORTFOLIO APPRAISAL March 31, 2014 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 650 oih Market Vectors Etf Tr Oil Svcs Etf 525 xle Select Sector Spdr Tr Sbi Int-Energy , ,714 32, , ,756 46, , , , FINANCIAL 750 jpm Jpmorgan Chase & Co , ,532 45, B+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,243 30, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , , , kie Spdr S&p Insurance Etf , ,665 46, usb U. S. Bancorp , ,288 34, B+ 300 v Visa Inc Com Cl A , ,758 64, wfc Wells Fargo & Company , ,305 37, A- 236, , , HEALTHCARE 325 iyh Ishares US Healthcare ETF , ,985 39, jnj Johnson & Johnson , ,115 49, A+ 1,300 mrk Merck & Co Inc (new) , ,801 73, B 1,500 pfe Pfizer Inc , ,180 48, B+ 325 xbi Spdr Series Trust S&p Biotech , ,306 46, , , , INFORMATION TECHNOLOGY 60 aapl Apple Inc , ,204 32, B+ 300 ibm International Bus Mach , ,747 57, A+ 2,350 iyw Ishares US Technology ETF , , , ,000 msft Microsoft Corp , ,990 40, A- 203, , , UTILITIES 700 d Dominion Res Va New Com , ,693 49, B+ 1,000 pnw Pinnacle West Cap Corp , ,660 54, B+ 72, , , PASSIVE INDEX 500 iwm Ishares Russell 2000 ETF , ,170 58, ,439,482 2,141,304 2,141, AMERICAN DEPOSITORY RECEIPTS ENERGY 1,000 bp BP Plc Sponsored Adr , ,100 48, ,250 48,100 48, Page 6 of 8

23 PORTFOLIO APPRAISAL March 31, 2014 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date TOTAL PORTFOLIO 1,505,775 2,213, ,213, Page 7 of 8

24 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss Sales COMMON STOCK ,000 Annaly Cap Mgmt Inc Com , , Keurig Green Mountain Inc , ,747 66,163 12,665 Total Sales 66,163 12,665 Page 8 of 8

25 Russell Fehr, City Treasurer Quarterly Investment Report June 30, 2014 Q4-FY2014

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

27 June 30, 2014 Performance Quarter Inception Since To Date To Date Account SBBIG S&P U.S. Treasury Yield Curve - Fiscal Year Capital Market Returns - Quarter Ended June 30, 2014 Page 3 of 8

28 June 30, 2014 Activity From to Portfolio Value on ,213,448 Contributions 0 Withdrawals 0 Realized Gains -17,395 Unrealized Gains 105,679 Interest 1,102 Dividends 13,841 Portfolio Value on ,316,676 Actual Asset Allocation Cash and Equivalents 5.90% Equities 94.10% Top 10 Holdings Securities Market Value Pct. Ishares US Technology ETF 227, Pool A Cash 137, Select Sector Spdr Tr Sbi Int-Finl 113, Canadian Pac Ltd New Com 90, Merck & Co Inc (new) 75, Select Sector Spdr Tr Sbi Cons Discr 66, Visa Inc Com Cl A 63, Pinnacle West Cap Corp 57, International Bus Mach 54, BP Plc Sponsored Adr 52, Page 4 of 8

29 PORTFOLIO APPRAISAL June 30, 2014 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date CASH AND EQUIVALENTS divacc Dividend Accrual 3,019 3,019 3, miscintrec Misc Interest Receivable PoolA Pool A Cash 137, , , intreceiv Pool A Interest Receivable slliab Securities Lending Liability -4,132-4,132-4, , , , COMMON STOCK MATERIALS 400 mon Monsanto C0 New Com , ,896 49, A INDUSTRIALS 500 cp Canadian Pac Ltd New Com , ,570 90, B+ 350 cat Caterpillar Inc Del Com , ,034 38, A+ 440 de Deere & Co Com , ,842 39, A 2,000 ge General Electric Co , ,560 52, A- 350 iyt Ishares Tr Transp Ave Idx , ,453 51, , , , TELECOMMUNICATION SERVICES 1,100 t At&t Inc , ,896 38, B+ 900 vz Verizon Communications Inc , ,037 44, B 73,739 82,933 82, CONSUMER DISCRETIONARY 600 dis Disney (Walt) Com , ,444 51, A+ 400 hd Home Depot Inc , ,384 32, A 500 mcd Mcdonald's Corp , ,370 50, A 1,000 xly Select Sector Spdr Tr Sbi Cons , ,740 66, Discr 113, , , CONSUMER STAPLES 1,100 mo Altria Group Inc , ,134 46, A- 400 clx Clorox Co , ,560 36, A 800 ko Coca Cola Co Com , ,888 33, A+ 700 mdlz Mondelez Intl Inc Cl A , ,327 26, B+ 550 pm Philip Morris Intl Inc Com , ,370 46, , , , ENERGY 2,700 amlp Alps Etf Tr Alerian Mlp , ,300 51, cvx Chevron Corporation , ,165 39, A+ 600 kmp Kinder Morgan Energy Partners Ltd , ,326 49, Page 5 of 8

30 PORTFOLIO APPRAISAL June 30, 2014 Call Security Unit Total Market Accrued Market Value Pct. Cur. Bond Put Quantity Symbol Security Cost Cost Price Value Interest + Accrd. Int. Assets Yield S & P Moody Status Date 650 oih Market Vectors Etf Tr Oil Svcs Etf 525 xle Select Sector Spdr Tr Sbi Int-Energy , ,544 37, , ,552 52, , , , FINANCIAL 750 jpm Jpmorgan Chase & Co , ,215 43, B+ 1,700 pgf Powershares Etf Trust Finl Pfd , ,940 30, Ptfl 5,000 xlf Select Sector Spdr Tr Sbi Int-Finl , , , kie Spdr S&p Insurance Etf , ,127 48, usb U. S. Bancorp , ,656 34, B+ 300 v Visa Inc Com Cl A , ,213 63, wfc Wells Fargo & Company , ,420 39, A- 236, , , HEALTHCARE 325 iyh Ishares US Healthcare ETF , ,668 41, jnj Johnson & Johnson , ,310 52, A+ 1,300 mrk Merck & Co Inc (new) , ,205 75, B 1,500 pfe Pfizer Inc , ,520 44, B+ 154, , , INFORMATION TECHNOLOGY 420 aapl Apple Inc , ,031 39, B+ 300 ibm International Bus Mach , ,381 54, A+ 2,350 iyw Ishares US Technology ETF , , , ,000 msft Microsoft Corp , ,700 41, A- 203, , , UTILITIES 700 d Dominion Res Va New Com , ,064 50, B+ 1,000 pnw Pinnacle West Cap Corp , ,840 57, B+ 1,000 xlu Select Sector Spdr Tr Sbi Int-Utils , ,260 44, , , , ,401,759 2,127,312 2,127, AMERICAN DEPOSITORY RECEIPTS ENERGY 1,000 bp BP Plc Sponsored Adr , ,750 52, ,250 52,750 52, TOTAL PORTFOLIO 1,580,623 2,316, ,316, Page 6 of 8

31 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Date Date Quantity Security Price Amount Price Difference Purchases COMMON STOCK ,000 Select Sector Spdr Tr Sbi Int-Utils , ,250 Total Purchases 42,250 Page 7 of 8

32 PURCHASE/SALE AND GAIN/LOSS From To Trade Settle Unit Original Date Date Quantity Security Price Amount Price Gain/Loss Sales COMMON STOCK Ishares Russell 2000 ETF , , Keurig Green Mountain Inc , , Spdr Series Trust S&p Biotech , , ,876 59,904 Total Sales 139,876 59,904 Page 8 of 8