City of Fort Walton Beach, Florida

Transcription

1 City of Fort Walton Beach, Florida Investment Performance Review Investment Advisors Steven Alexander, CTP, CGFO, CPPT, Managing Director Robert Cheddar, CFA, Chief Credit Officer, Managing Director D. Scott Stitcher, CFA, Director Rebecca Geyer, CTP, Senior Analyst Sean Gannon, Analyst One Keystone Plaza, Suite 300 North Front & Market Streets Harrisburg, PA fax PFM Asset Management LLC 300 South Orange Avenue Suite 1170 Orlando, FL fax 1 of 57

2 TABLE OF CONTENTS Tab I Market Update Tab II Executive Summary Investment Portfolio Short Term Portfolio Tab III Asset Allocation Chart Important Disclosures 2017 PFM Asset Management LLC 2 of 57

3 Tab I 2017 PFM Asset Management LLC 3 of 57

4 QUARTERLY MARKET SUMMARY SUMMARY The Trump trade dominated markets for much of the quarter pushing interest rate and equity prices higher, as the Trump administration and the Republican Party continued to push a bold agenda that promised new jobs, lower taxes, deregulation, and massive infrastructure spending. On March 15, with almost unanimous certainty from the market, the Federal Open Market Committee (FOMC) raised the federal funds target range by 0.25% to a range of 0.75% to 1.00%. The FOMC also released updated economic forecasts and a new dot plot. These were largely unchanged from the forecasts released in December. Central banks in the developed world outside of the United States continued to apply highly accommodative monetary policies as economic growth and inflation remained subdued. As a result, sovereign bond yields were at or near historic lows, with yields throughout Europe and Japan below 0%. Emerging markets experienced a resurgence this past quarter, after reeling from lack of positive investor sentiment, turning in a strong begining to ECONOMIC SNAPSHOT The pace of U.S. economic expansion slowed in the fourth quarter of Measurements of growth in the first quarter 2017 are forecasted to slow further, however, the labor market remained strong, consumer confidence continued to soar, business surveys picked up, and the housing market returned to near pre-crisis levels as the market continues to digest the size and scope of the Trump administration s proposed policies. U.S. gross domestic product (GDP) grew at a rate of 2.1% in the fourth quarter of 2016, a slowdown from the third quarter s pace of 3.5%. The deceleration reflected downturns in exports and federal government spending, and a deceleration in business investment. First quarter estimates are calling for further slowing in the pace of expansion to below 1.5% as consumer spending declines and business investment remains muted. The labor market added over 500,000 jobs in the first quarter as the unemployment rate declined to a decade low of 4.5% with the labor force participation rate rising to 63% for the first time in a year. Wage growth remained firm in the quarter, increasing at an annual rate of more than 2.5% during all three months. Confidence among Americans grew as the Conference Board s March reading increased to its highest level since the end of Manufacturing extended its expansion during the quarter with the ISM manufacturing PMI rebounding, Fixed Income Management after contracting over 2016 year-end, to its highest level since the end of On the housing front, existing home sales reached pre-crisis levels, selling at an annual rate of 5.69 million to start the year. INTEREST RATES Short-term (under five years) yields ended the first quarter higher, reflecting the Fed s March rate hike, while medium to long-term yields declined amid subdued inflation expectations. For much of the quarter, yields remained range bound until entering an upward trend at the start of March in anticipation of the expected FOMC March rate hike. They declined as the Fed reiterated its expectation for gradual tightening and the ability of the Trump administration to enact bold, pro-growth policies came into question. The 2-year Treasury yield ended the quarter only seven basis points over December 31, while the yield on the 10-year Treasury fell 6 basis points. In the money market space, shorter-term Treasury yields rose as the expectation for a Fed rate hike gained certainty. Yields on commercial paper and certificates of deposit did not increase. However, yields on short-term credit instruments remained elevated and offered incremental yield. SECTOR PERFORMANCE U.S. Treasury indexes posted positive returns in the first quarter of the year, the first positive quarter since the second quarter of Returns were largely generated by income rather than price appreciation as yields were little changed. Federal agency yield spreads remained near historically tight levels throughout the quarter as the supply-demand imbalance continued. The sector outperformed comparable maturity Treasuries for the third quarter in a row. Corporate yield spreads continued to tighten during the quarter, reaching multi-year lows, before drifting mildly wider at the end of March. The sector generated strong outperformance relative to comparable maturity Treasuries, as the sector turned in the sixth straight quarter of outperformance. Mortgage-backed securities (MBS) generally underperformed Treasuries due to duration extensions, and headline risk surrounding the potential reduction in the Fed s balance sheet holdings. Asset-backed securities (ABS) strongly outperformed Treasuries, as AAArated tranches, in our view, continued to offer good value, adding to returns and diversification PFM Asset Management LLC 4 of 57

5 QUARTERLY MARKET SUMMARY Fixed Income Management Economic Snapshot Labor Market Latest Dec '16 Mar '16 Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Unemployment Rate Feb'17 4.7% 4.7% 5.0% 7% Change In Non-Farm Payrolls Unemployment Rate 375K Change In Non-Farm Payrolls Feb'17 235, , ,000 6% 250K Average Hourly Earnings (YoY) Feb'17 2.8% 2.9% 2.5% 5% 125K Personal Income (YoY) Feb'17 4.6% 3.6% 3.6% Initial Jobless Claims (week) 3/24/17 258, , ,000 4% 0 Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17 Growth Real GDP (QoQ SAAR) 2017Q4 2.1% 3.5% 0.9% GDP Personal Consumption (QoQ SAAR) 2017Q4 3.5% 3.0% 2.3% Retail Sales (YoY) Feb'17 5.7% 4.4% 1.7% ISM Manufacturing Survey (month) Mar' Existing Home Sales SAAR (month) Feb' mil mil mil. Inflation / Prices Personal Consumption Expenditures (YoY) Feb'17 2.1% 1.6% 0.8% Consumer Price Index (YoY) Feb'17 2.7% 2.1% 0.9% Consumer Price Index Core (YoY) Feb'17 2.2% 2.2% 2.2% % 4% 2% 0% -2% 3% 2% 1% Real GDP (QoQ) Dec '13 Jun '14 Dec '14 Jun '15 Dec '15 Jun '16 Dec '16 Consumer Price Index CPI (YoY) Core CPI (YoY) Crude Oil Futures (WTI, per barrel) Mar'17 $50.60 $53.72 $38.34 Gold Futures (oz.) Mar'17 $1,247 $1,152 $1,234 0% -1% Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17 1. Data as of Second Quarter Data as of Third Quarter 2015 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 5 of 57

6 QUARTERLY MARKET SUMMARY 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% Sep '16 Oct '16 Nov '16 Dec '16 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 March 31, 2017 December 31, 2016 March 31, yr U.S. Treasury Yields Yield Curves as of 3/31/17 Maturity March 31, 2017 December 31, 2016 Change over Quarter March 31, 2016 Change over Year 3-month 0.75% 0.50% 0.25% 0.20% 0.55% 1-year 1.02% 0.81% 0.21% 0.58% 0.44% 2-year 1.26% 1.19% 0.07% 0.72% 0.54% 5-year 1.92% 1.93% (0.01%) 1.21% 0.71% 10-year 2.39% 2.45% (0.06%) 1.77% 0.62% 30-year 3.01% 3.07% (0.06%) 2.61% 0.40% 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 6 of 57

7 QUARTERLY MARKET SUMMARY Fixed Income Management BofA Merrill Lynch Index Returns As of 3/31/17 Returns for Periods ended 3/31/17 March 31, 2017 Duration Yield 3 Month 1 Year 3 Years 1-3 Year Indices U.S. Treasury % 0.26% 0.25% 0.72% Federal Agency % 0.30% 0.41% 0.83% U.S. Corporates, A-AAA rated % 0.60% 1.32% 1.41% Agency MBS (0 to 3 years) % 0.38% 0.40% 1.13% Taxable Municipals % 0.70% 2.26% 1.92% 1-5 Year Indices U.S. Treasury % 0.37% (0.10%) 1.14% Federal Agency % 0.41% 0.28% 1.16% U.S. Corporates, A-AAA rated % 0.80% 1.29% 1.96% Agency MBS (0 to 5 years) % 0.59% 0.39% 2.00% Taxable Municipals % 0.61% 2.12% 2.49% Master Indices (Maturities 1 Year or Greater) U.S. Treasury % 0.68% (1.47%) 2.32% Federal Agency % 0.74% 0.11% 2.00% U.S. Corporates, A-AAA rated % 1.11% 1.65% 3.54% Agency MBS (0 to 30 years) % 0.46% 0.18% 2.66% Taxable Municipals % 0.59% 1.49% 3.13% Returns for periods greater than one year are annualized. Source: BofA Merrill Lynch Indices PFM Asset Management LLC 7 of 57

8 QUARTERLY MARKET SUMMARY Fixed Income Management DISCLOSURES PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. 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 The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFM s services or entities, please visit 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. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities PFM Asset Management LLC. Further distribution is not permitted without prior written consent PFM Asset Management LLC 8 of 57

9 Tab II 2017 PFM Asset Management LLC 9 of 57

10 EXECUTIVE SUMMARY The Portfolios are of high credit quality and invested in U.S. Treasury, Federal Agency/GSE, municipal obligations, asset backed securities, corporate notes and commercial paper securities. The Investment Portfolio s quarterly total return performance of 0.53% outperformed the benchmark performance of 0.37% by 0.16%. Over the past year the Portfolio returned 0.37%, outperforming the benchmark performance of -0.10% by 0.47%. The Short Term Portfolio s quarter ending yield to maturity at cost of 1.30% outperformed the benchmark s yield of 0.67% by 0.63%. Yields remained within a narrow range through the first couple months before rising strongly in anticipation of the March FOMC rate hike as Fed officials made a concerted effort to telegraph expectations. Yields on the short-end of the curve ended the quarter higher, reflecting the rate hike, while long-term yields declined alongside future inflation expectations. We expect the Fed to remain on track to make two additional rate hikes in 2017, matching the three hikes projected for 2017 by the Committee s dot plot. In addition, a potential reduction in the size of the Fed s balance sheet later in the year could have significant implications for the markets. Since yields are currently stable and we expect no action at the next FOMC meeting in May, we are targeting portfolio durations to closely match that of benchmarks. We will continue to revisit this position regularly, especially in light of the potential for higher yields later in the year. We will continue to monitor incoming economic data, Fed policy, and market relationships. This will include monitoring and assessing the policies of the incoming Trump administration for their impact on economic and market conditions PFM Asset Management LLC 10 of 57

11 CITY OF FT. WALTON BEACH INVESTMENT PORT Credit Quality (S&P Ratings) Sector Allocation Portfolio Snapshot Par Value: Portfolio Statistics As of March 31, 2017 Total Market Value: Security Market Value: Accrued Interest: Cash: 16,714,040 16,818,131 16,753,047 65,084 PFM - - Not Rated 2.8% BBB+ 4.4% BBB 1.0% AAA 9.0% AA+ 53.0% A 5.0% A- 4.2% A+ 6.1% AA 3.6% AA- 10.8% U.S. Treasury 32.9% Municipal 1.8% Federal Agency/GSE 18.9% Asset-Backed 9.8% Corporate 36.6% Amortized Cost: Yield at Market: Yield at Cost: Effective Duration: Duration to Worst: Average Maturity: Average Credit: ** 16,789, % 1.65% 2.60 Years 2.67 Years 2.88 Years AA 40% 35% 30% 25% 20% 15% 15.6% Maturity Distribution 38.6% 21.1% 21.7% 10% 5% 0% 3.0% 0-1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 0.0% * An average of each security s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio PFM Asset Management LLC 11 of 57 Account

12 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Performance Portfolio/Benchmark CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Performance (Total Return) Effective Duration Current Quarter 1 Year 3 Year 5 Year Annualized Return 10 Year Since Inception (06/30/12) ** % 0.37% 1.44% % BofA ML 1-5 Year U.S. Treasury Index % % 1.14% % Difference 0.16% 0.47% 0.30% % 1.6% 1.4% 1.44% Total Return 1.2% 1.0% 0.8% 0.6% 0.4% 0.53% 0.37% 0.37% 1.14% 1.02% 0.84% 0.2% 0.0% -0.2% -0.10% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated. **Since Inception performance is not shown for periods less than one year PFM Asset Management LLC 12 of 57 Account

13 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Performance Portfolio/Benchmark Portfolio Performance (Total Return) Effective Duration Quarter Ended 03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year Annualized Return 5 Year CITY OF FT. WALTON BEACH INVESTMENT PORT % -0.90% -0.08% 0.82% 0.37% 1.44% - BofA ML 1-5 Year U.S. Treasury Index % -1.09% -0.19% 0.81% -0.10% 1.14% - Difference 0.16% 0.19% 0.11% 0.01% 0.47% 0.30% - 1.6% 1.44% 1.2% 1.14% Total Return 0.8% 0.4% 0.0% -0.4% 0.53% 0.37% -0.08% -0.19% 0.82% 0.81% 0.37% -0.10% -0.8% -1.2% -0.90% -1.09% 03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year 5 Year CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated PFM Asset Management LLC 13 of 57 Account

14 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Performance Portfolio Performance (Total Return) Quarter Ended Effective Portfolio/Benchmark Duration 03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year Annualized Return 5 Year CITY OF FT. WALTON BEACH INVESTMENT PORT % -0.90% -0.08% 0.82% 0.37% 1.44% - Net of Fees ** % -0.92% -0.10% 0.80% 0.27% 1.34% - BofA ML 1-5 Year U.S. Treasury Index % -1.09% -0.19% 0.81% -0.10% 1.14% - Difference (Gross) 0.16% 0.19% 0.11% 0.01% 0.47% 0.30% - Difference (Net) 0.13% 0.17% 0.09% -0.01% 0.37% 0.20% - 1.6% 1.44% 1.2% 1.14% Total Return 0.8% 0.4% 0.0% -0.4% 0.53% 0.37% -0.08% -0.19% 0.82% 0.81% 0.37% -0.10% -0.8% -1.2% -0.90% -1.09% 03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year 5 Year CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated. ** Fees were calculated based on average assets during the period at the contractual rate PFM Asset Management LLC 14 of 57 Account

15 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Performance Portfolio Earnings Quarter-Ended March 31, 2017 Beginning Value (12/31/2016) Market Value Basis $16,502, Accrual (Amortized Cost) Basis $16,573, Net Purchases/Sales $231, $231, Change in Value $19, ($14,916.56) Ending Value (03/31/2017) $16,753, $16,789, Interest Earned Portfolio Earnings $76, $96, $76, $61, PFM Asset Management LLC Account of 57

16 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector Allocation As of March 31, 2017 Sector Market Value ($) % of Portfolio Corporate 6,141, % U.S. Treasury 5,507, % Federal Agency/GSE 3,165, % Asset-Backed 1,636, % Municipal 301, % U.S. Treasury 32.9% Asset-Backed 9.8% Total 16,753, % Municipal 1.8% Federal Agency/GSE 18.9% Corporate 36.6% Detail may not add to total due to rounding PFM Asset Management LLC 16 of 57 Account

17 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector Allocation As of March 31, 2017 Sector Market Value ($) % of Portfolio % of Benchmark Corporate U.S. Treasury Federal Agency/GSE Asset-Backed Municipal Total 120% 6,141,501 5,507,268 3,165,961 1,636, , % 32.9% 18.9% 9.8% 1.8% % ,753, % 100.0% 100% 100.0% 80% 60% 40% 36.6% 32.9% 20% 0% 18.9% 9.8% 0.0% 0.0% 0.0% 1.8% 0.0% Asset-Backed Corporate Federal Agency/GSE Municipal U.S. Treasury CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index Detail may not add to total due to rounding PFM Asset Management LLC 17 of 57 Account

18 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector Sector Allocation March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total Corporate % % % % U.S. Treasury % % % % Federal Agency/GSE % % % % Asset-Backed % % % % Municipal % % % % Commercial Paper % % % % Total $ % $ % $ % $ % 100% 90% 80% Commercial Paper Municipal Asset-Backed Federal Agency/GSE U.S. Treasury Corporate 70% 60% 50% 40% 30% 20% 10% 0% March 2017 December 2016 September 2016 June 2016 Detail may not add to total due to rounding PFM Asset Management LLC 18 of 57 Account

19 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Maturity Distribution As of March 31, 2017 Portfolio/Benchmark Yield at Market Average Maturity 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years >5 Years CITY OF FT. WALTON BEACH INVESTMENT PORT 1.70% 2.88 yrs 3.0% 15.6% 38.6% 21.1% 21.7% 0.0% BofA ML 1-5 Year U.S. Treasury Index 1.48% 2.80 yrs 1.8% 30.9% 26.1% 20.9% 20.3% 0.0% 40% 38.6% 35% 30% 25% 20% 15% 15.6% 30.9% 26.1% 21.1% 20.9% 21.7% 20.3% 10% 5% 0% 3.0% 1.8% 0.0% 0.0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index 2017 PFM Asset Management LLC Account of 57

20 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Duration Distribution As of March 31, 2017 Portfolio / Benchmark Effective Duration 0-1 YEARS 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS > 5 YEARS CITY OF FT. WALTON BEACH INVESTMENT % 20.64% 37.43% 28.15% 7.83% 0.00% PORT BofA ML 1-5 Year U.S. Treasury Index % 30.86% 28.74% 22.72% 15.86% 0.00% 40% 35% 30% 25% 20% 15% 10% 5% 0% Distribution by Effective Duration 37% 31% 29% 28% 23% 21% 16% 8% 6% 2% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 40% 35% 30% 25% 20% 15% 10% 5% 0% Contribution to Portfolio Duration 38% 36% 30% 27% 26% 17% 12% 13% 1% 1% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index CITY OF FT. WALTON BEACH INVESTMENT PORT BofA ML 1-5 Year U.S. Treasury Index 2017 PFM Asset Management LLC Account of 57

21 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Credit Quality As of March 31, 2017 S&P Rating Market Value ($) % of Portfolio AA+ AAA A+ A BBB+ A- AA Not Rated BBB $8,874,372 $1,811,970 $1,512,903 $1,022,423 $838,045 $741,144 $700,327 $609,069 $474,414 $168, % 10.8% 9.0% 6.1% 5.0% 4.4% 4.2% 3.6% 2.8% 1.0% Totals $16,753, % Not Rated 2.8% BBB+ 4.4% BBB 1.0% AAA 9.0% AA+ 53.0% AA- A 5.0% A- 4.2% A+ 6.1% AA 3.6% AA- 10.8% Detail may not add to total due to rounding PFM Asset Management LLC 21 of 57 Account

22 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Issuer Issuer Distribution As of March 31, 2017 Market Value ($) % of Portfolio UNITED STATES TREASURY 5,507, % FANNIE MAE 1,571, % FEDERAL HOME LOAN BANKS 1,393, % GENERAL ELECTRIC CO 438, % BANK OF NOVA SCOTIA 400, % WELLS FARGO & COMPANY 375, % CISCO SYSTEMS INC 364, % MICROSOFT CORP 350, % CITIGROUP INC 350, % BP PLC 332, % TOYOTA MOTOR CORP 326, % AMERICAN HONDA FINANCE 322, % CARMAX AUTO OWNER TRUST 303, % CITY OF NEW YORK CITY, NY 301, % GOLDMAN SACHS GROUP INC 289, % AMERICAN EXPRESS CO 288, % ALLY AUTO RECEIVABLES TRUST 279, % HONDA AUTO RECEIVABLES 274, % Top 5 = 55.6% Top 10 = 66.2% 2017 PFM Asset Management LLC Account of 57

23 CITY OF FT. WALTON BEACH INVESTMENT PORT Issuer Market Value ($) % of Portfolio Portfolio Composition WESTPAC BANK CORP NY 247, % PFIZER INC 231, % TENNESSEE VALLEY AUTHORITY NOTES 201, % APPLE INC 201, % BANK ON MONTREAL CHI 197, % CHEVRON CORP 195, % FORD CREDIT AUTO OWNER TRUST 189, % TOYOTA AUTO RECEIVABLES 184, % ROYAL BANK OF CANADA NY 178, % FORD MOTOR COMPANY 168, % HYUNDAI AUTO RECEIVABLES 164, % CNH EQUIPMENT TRUST 155, % DEERE & COMPANY 115, % BOEING COMPANY 115, % BANK OF AMERICA CO 101, % UNILEVER PLC 100, % CATERPILLAR INC 81, % BB&T CORPORATION 78, % BERKSHIRE HATHAWAY INC 75, % ROYAL DUTCH SHELL PLC 75, % HSBC HOLDINGS PLC 74, % 2017 PFM Asset Management LLC Account of 57

24 CITY OF FT. WALTON BEACH INVESTMENT PORT Issuer Market Value ($) % of Portfolio Portfolio Composition NEW YORK UNIVERSITY 60, % NISSAN AUTO RECEIVABLES 49, % JOHN DEERE OWNER TRUST 34, % Grand Total: 16,753, % 2017 PFM Asset Management LLC Account of 57

25 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector/Issuer Distribution As of March 31, 2017 Sector / Issuer Market Value ($) % of Sector % of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 279, % 1.7% CARMAX AUTO OWNER TRUST 303, % 1.8% CNH EQUIPMENT TRUST 155, % 0.9% FORD CREDIT AUTO OWNER TRUST 189, % 1.1% HONDA AUTO RECEIVABLES 274, % 1.6% HYUNDAI AUTO RECEIVABLES 164, % 1.0% JOHN DEERE OWNER TRUST 34, % 0.2% NISSAN AUTO RECEIVABLES 49, % 0.3% TOYOTA AUTO RECEIVABLES 184, % 1.1% Sector Total 1,636, % 9.8% Corporate AMERICAN EXPRESS CO 288, % 1.7% AMERICAN HONDA FINANCE 322, % 1.9% APPLE INC 201, % 1.2% BANK OF AMERICA CO 101, % 0.6% BANK OF NOVA SCOTIA 400, % 2.4% BANK ON MONTREAL CHI 197, % 1.2% BB&T CORPORATION 78, % 0.5% BERKSHIRE HATHAWAY INC 75, % 0.5% 2017 PFM Asset Management LLC Account of 57

26 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector / Issuer Market Value ($) % of Sector % of Total Portfolio BOEING COMPANY 115, % 0.7% BP PLC 332, % 2.0% CATERPILLAR INC 81, % 0.5% CHEVRON CORP 195, % 1.2% CISCO SYSTEMS INC 364, % 2.2% CITIGROUP INC 350, % 2.1% DEERE & COMPANY 115, % 0.7% FORD MOTOR COMPANY 168, % 1.0% GENERAL ELECTRIC CO 438, % 2.6% GOLDMAN SACHS GROUP INC 289, % 1.7% HSBC HOLDINGS PLC 74, % 0.4% MICROSOFT CORP 350, % 2.1% NEW YORK UNIVERSITY 60, % 0.4% PFIZER INC 231, % 1.4% ROYAL BANK OF CANADA NY 178, % 1.1% ROYAL DUTCH SHELL PLC 75, % 0.4% TOYOTA MOTOR CORP 326, % 2.0% UNILEVER PLC 100, % 0.6% WELLS FARGO & COMPANY 375, % 2.2% WESTPAC BANK CORP NY 247, % 1.5% Sector Total 6,141, % 36.7% Federal Agency/GSE FANNIE MAE 1,571, % 9.4% FEDERAL HOME LOAN BANKS 1,393, % 8.3% 2017 PFM Asset Management LLC Account of 57

27 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Composition Sector / Issuer Market Value ($) % of Sector % of Total Portfolio TENNESSEE VALLEY AUTHORITY NOTES 201, % 1.2% Sector Total 3,165, % 18.9% Municipal CITY OF NEW YORK CITY, NY 301, % 1.8% Sector Total 301, % 1.8% U.S. Treasury UNITED STATES TREASURY 5,507, % 32.9% Sector Total 5,507, % 32.9% Portfolio Total 16,753, % 100.0% 2017 PFM Asset Management LLC Account of 57

28 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Quarterly Portfolio Transactions Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) BUY 1/3/17 1/5/17 350, Q78 US TREASURY NOTES 1.37% 4/30/21 343, % 1/18/17 1/25/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/21 109, % 2/1/17 2/3/17 800, Q78 US TREASURY NOTES 1.37% 4/30/21 787, % 2/8/17 2/14/17 330, QCX4 BP CAPITAL MARKETS PLC BONDS 2.31% 2/13/20 332, % 2/22/17 3/2/17 35, XAC1 JDOT 2017-A A3 1.78% 4/15/21 34, % 2/24/17 2/28/17 285, G0T29 FNMA NOTES 1.50% 2/28/20 284, % 2/28/17 3/3/17 120, M0EE5 AMERICAN EXPRESS CREDIT CORP NOTES 2.20% 3/3/20 119, % 3/7/17 3/15/17 100, MAD0 TAOT 2017-A A3 1.73% 2/15/21 99, % 3/10/17 3/15/17 115, ETL3 JOHN DEERE CAPITAL CORP NOTES 2.65% 1/6/22 115, % 3/14/17 3/16/17 125, T67 US TREASURY NOTES 1.25% 10/31/21 120, % 3/15/17 3/22/17 155, WAB2 CNH EQUIPMENT TRUST POOL 1.64% 7/15/20 154, % 3/21/17 3/29/17 200, HAC5 ALLYA A3 1.78% 8/15/21 199, % 3/22/17 3/29/17 85, PAD8 HART 2017-A A3 1.76% 8/15/21 84, % Total BUY 2,810,000 2,789, CALL 2/3/17 2/3/17 170, VDF8 VERIZON COMMUNICATIONS CORP NOTES 1.37% 8/15/19 170, % 0.00 Total CALL 170, , INTEREST 1/1/17 1/1/17 60, AF7 NEW YORK UNIVERSITY CORPORATE NOTE 1.76% 7/1/ /3/17 1/3/17 0 MONEY0002 MONEY MARKET FUND PFM Asset Management LLC Account of 57

29 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) 1/8/17 1/8/17 400, G4J0 GENERAL ELECTRIC CAP CORP NOTES 5.50% 1/8/20 11, /15/17 1/15/17 153, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ /15/17 1/15/17 40, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ /15/17 1/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ /15/17 1/15/17 100, GEX3 BANK OF AMERICA CORP NOTES 2.60% 1/15/19 1, /15/17 1/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ /15/17 1/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ /15/17 1/15/17 165, QAB2 CARMX A2 1.21% 11/15/ /15/17 1/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ /15/17 1/15/17 150, EAB7 CARMAX ABS A2 1.17% 8/15/ /15/17 1/15/17 98, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ /17/17 1/17/17 100, TBB0 TOYOTA MOTOR CREDIT CORP CORP NOTES 2.10% 1/17/19 1, /18/17 1/18/17 200, THQ6 BANK OF MONTREAL 1.50% 7/18/19 1, /18/17 1/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ /18/17 1/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ /20/17 1/20/17 500, G0E33 FNMA NOTES 1.12% 7/20/18 2, /21/17 1/21/17 98, NAC0 HONDA ABS A3 1.04% 2/21/ /27/17 1/27/17 50, M0DJ5 AMERICAN EXPRESS CREDIT CORP NOTES 2.12% 7/27/ /29/17 1/29/17 180, KRK5 ROYAL BANK OF CANADA CORP NOTES 1.50% 7/29/19 1, /30/17 1/30/17 125, BGF1 WELLS FARGO & CO 2.15% 1/30/20 1, /30/17 1/30/17 115, BF1 BOEING COMPANY (FLOATING) NOTE 1.16% 10/30/ /30/17 1/30/17 250, BGF1 WELLS FARGO & CO 2.15% 1/30/20 2, /31/17 1/31/17 300, VP2 US TREASURY NOTES 2.00% 7/31/20 3, /31/17 1/31/17 330, WY2 US TREASURY N/B 2.25% 7/31/21 3, /31/17 1/31/17 250, VP2 US TREASURY NOTES 2.00% 7/31/20 2, /31/17 1/31/17 500, VP2 US TREASURY NOTES 2.00% 7/31/20 5, /31/17 1/31/17 750, VP2 US TREASURY NOTES 2.00% 7/31/20 7, /1/17 2/1/17 0 MONEY0002 MONEY MARKET FUND /5/17 2/5/17 500, A8Y72 FHLB GLOBAL NOTE 0.87% 8/5/19 2, /5/17 2/5/17 690, A8Y72 FHLB GLOBAL NOTE 0.87% 8/5/19 3, PFM Asset Management LLC Account of 57

30 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) 2/10/17 2/10/17 75, AW2 SHELL INTERNATIONAL FIN GLOBAL NOTES 1.90% 8/10/ /12/17 2/12/17 170, YD9 FORD MOTOR CREDIT CO LLC CORPORATE NOTES 1.89% 8/12/19 1, /12/17 2/12/17 350, AY0 MICROSOFT CORP NOTE 1.85% 2/12/20 3, /15/17 2/15/17 100, WAH4 AMERICAN HONDA FINANCE GLOBAL NOTES 2.25% 8/15/19 1, /15/17 2/15/17 75, BY6 BERKSHIRE HATHAWAY FIN GLOBAL NOTES 2.00% 8/15/ /15/17 2/15/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/ /15/17 2/15/17 165, QAB2 CARMX A2 1.21% 11/15/ /15/17 2/15/17 150, EAB7 CARMAX ABS A2 1.17% 8/15/ /15/17 2/15/17 91, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ /15/17 2/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ /15/17 2/15/17 220, WAH4 AMERICAN HONDA FINANCE GLOBAL NOTES 2.25% 8/15/19 2, /15/17 2/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ /15/17 2/15/17 143, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ /15/17 2/15/17 40, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ /15/17 2/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ /15/17 2/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ /18/17 2/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ /18/17 2/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ /18/17 2/18/17 100, L6D8 CATERPILLAR FINANCIAL SE 1.25% 8/18/ /21/17 2/21/17 90, NAC0 HONDA ABS A3 1.04% 2/21/ /28/17 2/28/17 205, G0P49 FNMA NOTES 1.00% 8/28/19 1, /28/17 2/28/17 850, D72 US TREASURY NOTES 2.00% 8/31/21 8, /28/17 2/28/17 100, UQ1 US TREASURY NOTES 1.25% 2/29/ /28/17 2/28/17 170, UQ1 US TREASURY NOTES 1.25% 2/29/20 1, /28/17 2/28/17 400, B90 US TREASURY NOTES 2.00% 2/28/21 4, /28/17 2/28/17 300, UQ1 US TREASURY NOTES 1.25% 2/29/20 1, /1/17 3/1/17 0 MONEY0002 MONEY MARKET FUND /1/17 3/1/17 80, L3K5 CATERPILLAR FINANCIAL SE GROUP CORP NOTE 5.85% 9/1/17 2, /1/17 3/1/17 110, RAR3 CISCO SYSTEMS INC GLOBAL NOTES 2.12% 3/1/19 1, /1/17 3/1/17 225, AQ6 PFIZER INC GLOBAL NOTES 4.65% 3/1/18 5, PFM Asset Management LLC Account of 57

31 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) 3/6/17 3/6/17 100, AQ0 UNILEVER CAP GLOBAL NOTE 2.20% 3/6/19 1, /14/17 3/14/17 125, GJ4 IBM CORP NOTES 5.70% 9/14/17 3, /15/17 3/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ /15/17 3/15/17 165, QAB2 CARMX A2 1.21% 11/15/ /15/17 3/15/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/ /15/17 3/15/17 133, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ /15/17 3/15/17 149, EAB7 CARMAX ABS A2 1.17% 8/15/ /15/17 3/15/17 85, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ /15/17 3/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ /15/17 3/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ /15/17 3/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ /15/17 3/15/17 37, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ /18/17 3/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ /18/17 3/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ /21/17 3/21/17 83, NAC0 HONDA ABS A3 1.04% 2/21/ Total INTEREST 12,795,645 97, PAYDOWNS 1/15/17 1/15/17 9, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 9, /15/17 1/15/17 6, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 6, /21/17 1/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, /15/17 2/15/ EAB7 CARMAX ABS A2 1.17% 8/15/ /15/17 2/15/17 2, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/19 2, /15/17 2/15/17 10, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 10, /15/17 2/15/17 6, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 6, /21/17 2/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, /15/17 3/15/17 11, EAB7 CARMAX ABS A2 1.17% 8/15/19 11, /15/17 3/15/17 2, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/19 2, PFM Asset Management LLC Account of 57

32 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) 3/15/17 3/15/17 9, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 9, /15/17 3/15/17 5, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 5, /21/17 3/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, Total PAYDOWNS 86,872 86, SELL 1/3/17 1/5/17 75, VE7 US TREASURY NOTES 1.00% 5/31/18 75, % (40.19) 1/3/17 1/5/17 30, M0DM8 AMERICAN EXPRESS CREDIT CORP NOTES 1.12% 6/5/17 30, % /3/17 1/5/17 115, G0WJ8 FANNIE MAE GLOBAL NOTES 0.87% 5/21/18 114, % /3/17 1/5/17 125, G0WJ8 FANNIE MAE GLOBAL NOTES 0.87% 5/21/18 124, % (59.98) 2/1/17 2/3/17 470, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 467, % (2,857.35) 2/1/17 2/3/17 330, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 328, % (4,790.19) 2/9/17 2/14/17 330, UQ1 US TREASURY NOTES 1.25% 2/29/20 330, % /24/17 2/28/17 15, UQ1 US TREASURY NOTES 1.25% 2/29/20 14, % /24/17 2/28/17 100, UQ1 US TREASURY NOTES 1.25% 2/29/20 99, % (320.09) 2/24/17 2/28/17 170, UQ1 US TREASURY NOTES 1.25% 2/29/20 169, % /28/17 3/3/17 100, L6D8 CATERPILLAR FINANCIAL SE 1.25% 8/18/17 100, % (6.22) 2/28/17 3/3/17 50, M0DJ5 AMERICAN EXPRESS CREDIT CORP NOTES 2.12% 7/27/18 50, % /10/17 3/15/17 115, D72 US TREASURY NOTES 2.00% 8/31/21 114, % (595.21) 3/14/17 3/16/17 125, GJ4 IBM CORP NOTES 5.70% 9/14/17 127, % 2, /22/17 3/27/17 123, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 123, % (257.72) 3/24/17 3/29/17 30, G0E33 FNMA NOTES 1.12% 7/20/18 30, % (121.37) Total SELL 2,303,967 2,300, , PFM Asset Management LLC Account of 57

33 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Quarterly Portfolio Transactions Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) INTEREST 1/1/17 1/1/17 60, AF7 NEW YORK UNIVERSITY CORPORATE NOTE 1.76% 7/1/ INTEREST 1/3/17 1/3/ MONEY0002 MONEY MARKET FUND BUY 1/3/17 1/5/17 350, Q78 US TREASURY NOTES 1.37% 4/30/21 (343,904.76) 1.86% SELL 1/3/17 1/5/17 75, VE7 US TREASURY NOTES 1.00% 5/31/18 75, % (40.19) SELL 1/3/17 1/5/17 30, M0DM8 AMERICAN EXPRESS CREDIT CORP NOTES 1.12% 6/5/17 30, % 4.92 SELL 1/3/17 1/5/17 115, G0WJ8 FANNIE MAE GLOBAL NOTES 0.87% 5/21/18 114, % SELL 1/3/17 1/5/17 125, G0WJ8 FANNIE MAE GLOBAL NOTES 0.87% 5/21/18 124, % (59.98) INTEREST 1/8/17 1/8/17 400, G4J0 GENERAL ELECTRIC CAP CORP NOTES 5.50% 1/8/20 11, INTEREST 1/15/17 1/15/17 153, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ INTEREST 1/15/17 1/15/17 40, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ INTEREST 1/15/17 1/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ INTEREST 1/15/17 1/15/17 100, GEX3 BANK OF AMERICA CORP NOTES 2.60% 1/15/19 1, INTEREST 1/15/17 1/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ INTEREST 1/15/17 1/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ INTEREST 1/15/17 1/15/17 165, QAB2 CARMX A2 1.21% 11/15/ INTEREST 1/15/17 1/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ INTEREST 1/15/17 1/15/17 150, EAB7 CARMAX ABS A2 1.17% 8/15/ INTEREST 1/15/17 1/15/17 98, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ PAYDOWNS 1/15/17 1/15/17 9, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 9, PAYDOWNS 1/15/17 1/15/17 6, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 6, PFM Asset Management LLC Account of 57

34 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) INTEREST 1/17/17 1/17/17 100, TBB0 TOYOTA MOTOR CREDIT CORP CORP 2.10% 1/17/19 1, NOTES INTEREST 1/18/17 1/18/17 200, THQ6 BANK OF MONTREAL 1.50% 7/18/19 1, INTEREST 1/18/17 1/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ INTEREST 1/18/17 1/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ BUY 1/18/17 1/25/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/21 (109,999.59) 1.67% INTEREST 1/20/17 1/20/17 500, G0E33 FNMA NOTES 1.12% 7/20/18 2, INTEREST 1/21/17 1/21/17 98, NAC0 HONDA ABS A3 1.04% 2/21/ PAYDOWNS 1/21/17 1/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, INTEREST 1/27/17 1/27/17 50, M0DJ5 AMERICAN EXPRESS CREDIT CORP NOTES 2.12% 7/27/ INTEREST 1/29/17 1/29/17 180, KRK5 ROYAL BANK OF CANADA CORP NOTES 1.50% 7/29/19 1, INTEREST 1/30/17 1/30/17 125, BGF1 WELLS FARGO & CO 2.15% 1/30/20 1, INTEREST 1/30/17 1/30/17 115, BF1 BOEING COMPANY (FLOATING) NOTE 1.16% 10/30/ INTEREST 1/30/17 1/30/17 250, BGF1 WELLS FARGO & CO 2.15% 1/30/20 2, INTEREST 1/31/17 1/31/17 300, VP2 US TREASURY NOTES 2.00% 7/31/20 3, INTEREST 1/31/17 1/31/17 330, WY2 US TREASURY N/B 2.25% 7/31/21 3, INTEREST 1/31/17 1/31/17 250, VP2 US TREASURY NOTES 2.00% 7/31/20 2, INTEREST 1/31/17 1/31/17 500, VP2 US TREASURY NOTES 2.00% 7/31/20 5, INTEREST 1/31/17 1/31/17 750, VP2 US TREASURY NOTES 2.00% 7/31/20 7, INTEREST 2/1/17 2/1/ MONEY0002 MONEY MARKET FUND BUY 2/1/17 2/3/17 800, Q78 US TREASURY NOTES 1.37% 4/30/21 (787,074.24) 1.86% SELL 2/1/17 2/3/17 470, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 467, % (2,857.35) SELL 2/1/17 2/3/17 330, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 328, % (4,790.19) 2017 PFM Asset Management LLC Account of 57

35 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) CALL 2/3/17 2/3/17 170, VDF8 VERIZON COMMUNICATIONS CORP NOTES 1.37% 8/15/19 170, % 0.00 INTEREST 2/5/17 2/5/17 500, A8Y72 FHLB GLOBAL NOTE 0.87% 8/5/19 2, INTEREST 2/5/17 2/5/17 690, A8Y72 FHLB GLOBAL NOTE 0.87% 8/5/19 3, BUY 2/8/17 2/14/17 330, QCX4 BP CAPITAL MARKETS PLC BONDS 2.31% 2/13/20 (332,684.32) 2.04% SELL 2/9/17 2/14/17 330, UQ1 US TREASURY NOTES 1.25% 2/29/20 330, % INTEREST 2/10/17 2/10/17 75, AW2 SHELL INTERNATIONAL FIN GLOBAL 1.90% 8/10/ NOTES INTEREST 2/12/17 2/12/17 170, YD9 FORD MOTOR CREDIT CO LLC CORPORATE 1.89% 8/12/19 1, NOTES INTEREST 2/12/17 2/12/17 350, AY0 MICROSOFT CORP NOTE 1.85% 2/12/20 3, INTEREST 2/15/17 2/15/17 100, WAH4 AMERICAN HONDA FINANCE GLOBAL 2.25% 8/15/19 1, NOTES INTEREST 2/15/17 2/15/17 75, BY6 BERKSHIRE HATHAWAY FIN GLOBAL 2.00% 8/15/ NOTES INTEREST 2/15/17 2/15/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/ INTEREST 2/15/17 2/15/17 165, QAB2 CARMX A2 1.21% 11/15/ INTEREST 2/15/17 2/15/17 150, EAB7 CARMAX ABS A2 1.17% 8/15/ INTEREST 2/15/17 2/15/17 91, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ INTEREST 2/15/17 2/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ INTEREST 2/15/17 2/15/17 220, WAH4 AMERICAN HONDA FINANCE GLOBAL 2.25% 8/15/19 2, NOTES INTEREST 2/15/17 2/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ INTEREST 2/15/17 2/15/17 143, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ INTEREST 2/15/17 2/15/17 40, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ INTEREST 2/15/17 2/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ INTEREST 2/15/17 2/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ PFM Asset Management LLC Account of 57

36 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) PAYDOWNS 2/15/17 2/15/ EAB7 CARMAX ABS A2 1.17% 8/15/ PAYDOWNS 2/15/17 2/15/17 2, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/19 2, PAYDOWNS 2/15/17 2/15/17 10, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 10, PAYDOWNS 2/15/17 2/15/17 6, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 6, INTEREST 2/18/17 2/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ INTEREST 2/18/17 2/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ INTEREST 2/18/17 2/18/17 100, L6D8 CATERPILLAR FINANCIAL SE 1.25% 8/18/ INTEREST 2/21/17 2/21/17 90, NAC0 HONDA ABS A3 1.04% 2/21/ PAYDOWNS 2/21/17 2/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, BUY 2/22/17 3/2/17 35, XAC1 JDOT 2017-A A3 1.78% 4/15/21 (34,995.02) 1.79% BUY 2/24/17 2/28/17 285, G0T29 FNMA NOTES 1.50% 2/28/20 (284,817.60) 1.52% SELL 2/24/17 2/28/17 15, UQ1 US TREASURY NOTES 1.25% 2/29/20 14, % SELL 2/24/17 2/28/17 100, UQ1 US TREASURY NOTES 1.25% 2/29/20 99, % (320.09) SELL 2/24/17 2/28/17 170, UQ1 US TREASURY NOTES 1.25% 2/29/20 169, % INTEREST 2/28/17 2/28/17 205, G0P49 FNMA NOTES 1.00% 8/28/19 1, INTEREST 2/28/17 2/28/17 850, D72 US TREASURY NOTES 2.00% 8/31/21 8, INTEREST 2/28/17 2/28/17 100, UQ1 US TREASURY NOTES 1.25% 2/29/ INTEREST 2/28/17 2/28/17 170, UQ1 US TREASURY NOTES 1.25% 2/29/20 1, INTEREST 2/28/17 2/28/17 400, B90 US TREASURY NOTES 2.00% 2/28/21 4, INTEREST 2/28/17 2/28/17 300, UQ1 US TREASURY NOTES 1.25% 2/29/20 1, BUY 2/28/17 3/3/17 120, M0EE5 AMERICAN EXPRESS CREDIT CORP NOTES 2.20% 3/3/20 (119,875.20) 2.24% SELL 2/28/17 3/3/17 100, L6D8 CATERPILLAR FINANCIAL SE 1.25% 8/18/17 100, % (6.22) 2017 PFM Asset Management LLC Account of 57

37 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) SELL 2/28/17 3/3/17 50, M0DJ5 AMERICAN EXPRESS CREDIT CORP NOTES 2.12% 7/27/18 50, % INTEREST 3/1/17 3/1/ MONEY0002 MONEY MARKET FUND INTEREST 3/1/17 3/1/17 80, L3K5 CATERPILLAR FINANCIAL SE GROUP CORP 5.85% 9/1/17 2, NOTE INTEREST 3/1/17 3/1/17 110, RAR3 CISCO SYSTEMS INC GLOBAL NOTES 2.12% 3/1/19 1, INTEREST 3/1/17 3/1/17 225, AQ6 PFIZER INC GLOBAL NOTES 4.65% 3/1/18 5, INTEREST 3/6/17 3/6/17 100, AQ0 UNILEVER CAP GLOBAL NOTE 2.20% 3/6/19 1, BUY 3/7/17 3/15/17 100, MAD0 TAOT 2017-A A3 1.73% 2/15/21 (99,988.23) 1.74% BUY 3/10/17 3/15/17 115, ETL3 JOHN DEERE CAPITAL CORP NOTES 2.65% 1/6/22 (115,076.95) 2.75% SELL 3/10/17 3/15/17 115, D72 US TREASURY NOTES 2.00% 8/31/21 114, % (595.21) INTEREST 3/14/17 3/14/17 125, GJ4 IBM CORP NOTES 5.70% 9/14/17 3, BUY 3/14/17 3/16/17 125, T67 US TREASURY NOTES 1.25% 10/31/21 (120,938.58) 2.10% SELL 3/14/17 3/16/17 125, GJ4 IBM CORP NOTES 5.70% 9/14/17 127, % 2, INTEREST 3/15/17 3/15/17 80, LAC6 ALLY ABS A3 1.44% 8/15/ INTEREST 3/15/17 3/15/17 165, QAB2 CARMX A2 1.21% 11/15/ INTEREST 3/15/17 3/15/17 110, EAD8 FORDO 2017-A A3 1.67% 6/15/ INTEREST 3/15/17 3/15/17 133, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/ INTEREST 3/15/17 3/15/17 149, EAB7 CARMAX ABS A2 1.17% 8/15/ INTEREST 3/15/17 3/15/17 85, VAD1 FORD ABS 2015-B A3 1.16% 11/15/ INTEREST 3/15/17 3/15/17 80, EAC3 HYUNDAI AUTO RECEIVABLES TRUST 1.29% 4/15/ INTEREST 3/15/17 3/15/17 50, WAD9 TOYOTA ABS 2016-C A3 1.14% 8/15/ INTEREST 3/15/17 3/15/17 50, WAD7 NISSAN ABS 2016-C A3 1.18% 1/15/ INTEREST 3/15/17 3/15/17 37, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/ PFM Asset Management LLC Account of 57

38 CITY OF FT. WALTON BEACH INVESTMENT PORT Portfolio Activity Tran. Type Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield Realized G/L (BV) PAYDOWNS 3/15/17 3/15/17 11, EAB7 CARMAX ABS A2 1.17% 8/15/19 11, PAYDOWNS 3/15/17 3/15/17 2, CAD3 TOYOTA ABS 2015-B A3 1.27% 5/15/19 2, PAYDOWNS 3/15/17 3/15/17 9, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 9, PAYDOWNS 3/15/17 3/15/17 5, VAD1 FORD ABS 2015-B A3 1.16% 11/15/19 5, BUY 3/15/17 3/22/17 155, WAB2 CNH EQUIPMENT TRUST POOL 1.64% 7/15/20 (154,994.05) 1.80% INTEREST 3/18/17 3/18/17 100, NAC9 HONDA ABS A3 1.22% 12/18/ INTEREST 3/18/17 3/18/17 100, AC3 HAROT A3 ABS 1.16% 6/18/ INTEREST 3/21/17 3/21/17 83, NAC0 HONDA ABS A3 1.04% 2/21/ PAYDOWNS 3/21/17 3/21/17 7, NAC0 HONDA ABS A3 1.04% 2/21/19 7, BUY 3/21/17 3/29/17 200, HAC5 ALLYA A3 1.78% 8/15/21 (199,976.42) 1.79% SELL 3/22/17 3/27/17 123, UAC4 NISSAN ABS 2015-A A3 1.05% 10/15/19 123, % (257.72) BUY 3/22/17 3/29/17 85, PAD8 HART 2017-A A3 1.76% 8/15/21 (84,993.12) 1.76% SELL 3/24/17 3/29/17 30, G0E33 FNMA NOTES 1.12% 7/20/18 30, % (121.37) TOTALS (133,887.50) (5,922.10) 2017 PFM Asset Management LLC Account of 57

39 CITY OF FT. WALTON SHORT TERM PORTFOLIO Credit Quality (S&P Ratings) Sector Allocation Portfolio Snapshot Portfolio Statistics As of March 31, 2017 Par Value: 3,000,000 Total Market Value: 5,497,250 Security Market Value: 2,987,775 Accrued Interest: 0 Cash: 2,509,475 PFM - % A-1 Commercial Paper 100.0% Amortized Cost: Yield at Market: Yield at Cost: Effective Duration: 2,986, % 1.30% 0.33 Years 100% 100.0% Maturity Distribution Duration to Worst: Average Maturity: 0.33 Years 0.33 Years 80% Average Credit: ** A 60% Benchmark Eff. Yield: 0.67% 40% 20% 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0-1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years * An average of each security s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio PFM Asset Management LLC 39 of 57 Account

40 CITY OF FT. WALTON SHORT TERM PORTFOLIO Portfolio Performance Portfolio Earnings Quarter-Ended March 31, 2017 Beginning Value (12/31/2016) Market Value Basis $5,492, Accrual (Amortized Cost) Basis $5,491, Net Purchases/Sales ($2,515,691.67) ($2,515,691.67) Change in Value $10, $10, Ending Value (03/31/2017) $2,987, $2,986, Interest Earned Portfolio Earnings $0.00 $10, $0.00 $10, PFM Asset Management LLC Account of 57