Table of Contents SW Park Place Suite 100 Portland OR

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2 Table of Contents Quarter End Commentary... 1 Walla Walla Compliance... 2 Executive Summary... 3 Account Summary... 6 Accrual Earnings and Activity Report... 7 Total Return... 8 Quarterly Net Performance... 9 Quarterly Performance Gross of Fees Holdings Report Transaction Summary NAV Analysis GPAQrtlydisclaimer SW Park Place Suite 100 Portland OR

3 GPA QUARTERLY OBSERVATIONS: ENDING DECEMBER 31, 2016 Market Commentary Market Yields: Interest rates rose dramatically in the last quarter after the Presidential election. The market perception is that the incoming president will favor decreasing taxes, lessening regulations and an overall more government friendly environment for business. This resulted in a record setting Dow Jones and interest rates reaching their highest levels since The 2-year treasury increased 43 basis points and 5-year notes increased 78 basis points during the quarter. The 2-year to 5-year spread steepened from 39 basis points to 74 basis points. FOMC: As expected, the Fed increased its key interest rate by.25%. Fed officials raised its target for short-term interest rates by.25% to a range of.50% to.75%. It was the second time in a decade that the Fed has raised rates. In addition to the Fed Funds target rate increase, the Fed also increased its forecast for hikes in The notes mentioned strength in labor and inflation, In view of realized and expected labor market conditions and inflation, the committee decided to raise the target range for the federal funds rates. In addition, The stance of monetary policy remains accommodative, thereby supporting further strengthening in labor market conditions and a return to 2% inflation. Employment: The unemployment rate dropped from 5% to 4.6% at the end of the quarter. Total nonfarm payrolls were strong, with increases in September of 156K, October at 161K and up 178K in November. GDP: GDP increased at 3.5% in the third quarter. This is according to the third GDP estimate. Market Outlook Fed Funds: The FOMC has shifted to a more hawkish policy outlook as labor market conditions and inflation continue to move toward the Fed s goals. The majority of the Committee remains convinced that the funds rate should rise very gradually. About half of the participants used a more expansionary fiscal policy when making their economic forecasts. The meeting minutes said that Fed officials believe they can maintain plans for gradual rate hikes but would need to be ready to speed up those increases if necessary to fight inflation. The Fed forecast that it could increase rates three more times in The expectation is for a 10.4% chance of an increase in February and a 33.3% chance of an increase in March. 2 year: The 2 year treasury note is forecasted by over 80 economists contributing to Bloomberg to trade at 1.25%, 1.41%, 1.53%, and 1.69% for the end of each of the next four quarters, higher expectations than last quarter. Oil: Crude oil began the quarter at and finished at nearly its high for the quarter at Portfolio Positioning: GPA is recommending that portfolios restructure their maturities to get within 90% of their benchmark durations. Portfolios should be positioned in a bar-belled manner, i.e. over-weighted in the short end and the long end of the curve. GPA will continue to add municipal bonds, corporates and callables when spreads widen vs. treasuries and agency bullets. GPA expects rates to rise modestly over the next quarter. 1

4 Walla Walla Total Funds Compliance Report Policy /31/2016 Maximum Maturities Policy Requirement Percentage of Portfolio Under 30 days 10% 20% $ 16,490,757 Portfolio Allocation Within Limits Credit Rating Within Limits Municipal Under 1 year 20% 44% $ 36,093,169 AA- by S&P Under 7 years 100% 100% $ 82,303,188 No Aa3 by Moodys 0 0% 100% $ 82,209, No AA- by Fitch Maximum Weighted Average Maturity 3 Years 1.38 Commercial Paper Maximum Callable Securities N/A 23% $ 18,875,941 A-1+ Maximum Single Maturity 7 Years 7.62 P-1 Asset Allocation Diversification Maximum Policy Allocation Issuer Constraint Percentage of Portfolio Market Value U.S. Treasury Obligations 100% 7% $ 6,001,209 Government Agencies 100% 50% $ 41,341,315 FHLB 40% 16% $ 12,941,122 FNMA 40% 10% $ 8,467,892 FHLMC 40% 17% $ 13,714,780 FFCB 40% 7% $ 5,968,656 Other GSE's 40% 0% $ 248,864 Municipal Bonds- GO States - Locals WA 35% 5% 18% $ 15,191,356 Interfund Walla Walla County 20% 4% $ 3,278,552 Time Deposits / Savings Accounts 100% 15% 5% $ 4,447,945 Certificates of Deposit 50% 20% 0% $ - Commercial Paper 10% 5% 0% $ - Bankers Acceptances 25% 10% 0% $ - Repurchase Agreements 10% 10% 0% $ - Registered Warrants 5% 0% $ - Local Government Investment Pool 100% 15% $ 12,042,812 Total 100% $ 82,303,188 Within Limits Name Par Amount Total Adjusted Cost Market Value Unrealized Gain/Loss Yield At Cost Eff Dur Bench Dur Walla Walla County $ 82,079,309 $ 82,546,462 $ 82,303,188 $ (243,274) $ - $ - $ - $ TOTAL PORTFOLIO $ 82,079,309 $ 82,546,462 $ 82,303,188 $ (243,274)

5 EXECUTIVE SUMMARY The purpose of this review is to provide the Treasurer of Walla Walla County, the County Finance Committee and the County Pool participants a review of the risk and return components of the Walla Walla County Investment Pool. Also, included is an overview of the portfolio strategy, market conditions and investment considerations. The goal of the County Pool is to provide market rates of return for participants investments that are consistent with the risk and return profile of the Pool. The key points of reference throughout this analysis will be on three specific strategies: 1) Management strategies to ensure that the policy objectives are being met, 2) Risk strategies to protect the NAV of the fund, and 3) Strategy recommendations based on the current rate environment. Quarterly Statistics: Market Value as of 12/31/16 is $82,303,187.82, excluding accrued interest. The liquidity component of LGIP and Bank Deposits represents 20% of the fund at $16,490, The investments represent 80% of the total pool. There were three sales of agency securities for a total of $5MM, with realized gains of approximately $4,782, and three sales of County internal bonds. Purchases: There were eight purchases over the quarter three agencies, three municipal bonds and two County internal bonds. Par value increased by $2MM from the previous quarter. Unrealized loss as of 12/31/16 was $243, The County Pool remains characterized as a well-diversified, low risk portfolio with sufficient liquidity balances and is in compliance with the investment policy. The book yield rate at quarter end is 1.00% versus the state LGIP at.509% at the end of the quarter. The County Pool s average maturity is longer than the state LGIP, which is what primarily contributes to the added earnings. The average maturity of the County Pool at the end of the quarter was 1.38 years, while the LGIP remains less than 60 days at quarter end. In order to meet the daily cash demands of the participants, the County Pool maintains a balance in liquid assets that can provide for immediate access. The net asset value (NAV) measures the relationship between the current market value and the participant funds invested in the pool. The pool pays all participants $1.00 in and out of the fund. It is important to monitor the NAV to measure the underlying asset value of the pool through changing interest rate cycles. The Treasurer targets to manage the targeted trading band of to The NAV price is calculated taking current market value of all the securities in the portfolio divided by the book value of the County Pool. The current NAV is

6 KEY POINTS OF FOCUS FOR THE COUNTY POOL 1. Objectives: Safety, Liquidity and Return The investment policy objectives of safety, liquidity and return will be the basis of evaluation on the quarterly reports. Safety is addressed through asset diversification and credit quality. Liquidity is addressed through maturity distribution, cash flow analysis and overnight investments. Return is achieved through the selection of credit sector and maturity/duration management. 2. Risk: Credit Risk and Interest Rate Risk The risks associated with the County s Investment Pool are: 1) Interest rate risk, which represents the negative impact on market value if interest rates move up. This is controlled by the overall maturity of the portfolio. 2) Credit risk, which is the risk associated with the ability of the issuers to pay its debt obligations. 3) Reinvestment rate risk, which is the risk associated with maturities and short-term securities that are coming due and are then reinvested at lower rates during declining interest rate cycles. The Pool remains within the policy constraints of a weighted average maturity of one and one-half years. Ranking on Interest rate risk: LOW Interest rate risk is directly correlated to effective duration. The maturity of the County Pool at the end of the quarter was at 1.22 effective duration and a 1.33 year modified duration compared to the market benchmark duration of 1.45 years. The duration extended slightly from last quarter primarily due to the inflows that were invested in longer securities. Ranking on Credit risk: LOW The portfolio continues to be invested in high quality securities, primarily agencies and municipal bonds. The County pool holds 7.3% in US Treasury securities, 50.2% in agency securities, 22.4% in Municipal bonds, 14.6% in the State LGIP pool and 5.4% in bank deposits supported by the State PDPC program. The municipal allocation includes intra-fund loans at the County. All asset class allocations are in line with the limits set by the investment policy as of 12/31/16. Ranking on reinvestment rate risk: LOW The portfolio is exposed to reinvestment rate risk as bonds mature. In this rising interest rate environment, few bonds are being called and the reinvestment risk remains low. Callable holdings have been increased due the widening of spreads and represent 22.9% of the total pool balances. 4

7 3. GPA Observations & Recommendations The overall portfolio earnings rate of 1.00% is comparatively higher than other local pools. Contributors to the added yield are the longer average maturity and the contribution from the holdings of Walla Walla County direct debt. The longest single maturity in the portfolio is 7.62 years. (this is a Walla Walla County direct debt instrument). The liquidity is appropriate at 20% and is held in bank deposits and the State LGIP. Interest rates moved up this quarter which decreased the market value of the holdings in the portfolio. The unrealized loss in the portfolio was $243, The portfolio outperformed the benchmark for the quarter with net returns of -0.19% versus the benchmark at -0.26%. The cumulative one year returns are 0.98% versus the benchmark of 0.78%. This return includes market value change plus interest earnings. GPA recommends to increase the effective duration between 80% and 90% of the benchmark duration or slightly short the benchmark of GPA recommends to maintain higher liquidity balances to ensure liquidity requirements are met through cash balances. 5

8 Account Summary Walla Walla County 12/31/2016 Weighted Averages Book Yield 1.00 Maturity 1.38 Coupon 1.38 Moody Aa1 S&P AA Fixed Income Allocation Fixed Income Totals Par Value 82,079,309 Market Value 82,303, Amortized Book Value 82,546, Unrealized Gain/Loss -243, Estimated Annual Cash Flow 1,120, Security Type Market Value % Assets US Agency (USD) 41,341, Municipal (USD) 18,469, US Treasury (USD) 6,001, LGIP State Pool (USD) 12,042, Bank or Cash Deposit (USD) 4,447, Fixed Income Total 82,303,

9 Walla Walla County Accrual Earnings and Activity US Dollar 12/31/2016 Cost Basis Summary Accrual Earnings Summary Quarter to Date Ending 12/31/2016 Fiscal Year-to-Date 12/31/2015 Quarter to Date Ending 12/31/2016 Fiscal Year-to-Date 12/31/2015 Beginning Amortized Cost 80,674, ,315, Investment Purchases 12,469, ,026, Investment Maturities/Sells/Calls (12,101,933.42) (31,939,410.15) Amortization (56,917.14) (190,954.77) Change in Cash Equivalents 1,557, ,328, Realized Gains / Losses 4, , Ending Amortized Costs 82,546, ,546, Amortization/Accretion (56,917.14) (190,954.77) Interest Earned 263, , Realized Gain (Loss) 4, , Total Income 211, , Average Portfolio Balance 87,192, ,589, Earnings Yield 0.96% 0.91% MarketValue Summary As of 12/31/2016 Ending Market Value 82,303, Unrealized Gain/Loss (243,274.11) Net Asset Value (NAV) Interest Earnings Summary Quarter to Date Ending 12/31/2016 Fiscal Year-to-Date 12/31/2015 Beginning Accrued Interest 348, , Coupons Paid 207, , Purchased Accrued Interest (5,763.89) (41,776.69) Sold Accrued Interest 59, , Ending Accrued Interest 351, , Interest Earned 263, ,

10 Walla Walla County Total Return For Period Since 9/30/2016 Beginning Principal Value 80,836, Beginning Accrued Interest 348, Net Contributions/Withdrawals 1,663, Market Value Change -457, Interest Earnings 263, Ending Principal Value 82,303, Accrued Interest 351, Total Return -194, Advisory Fees for Period -2, Portfolio Allocation as of 12/31/2016 Total Return Net of Accrued Fees US Dollar 9/30/ /31/2016 Net Total Return -196, Industry Group Market Value % Assets Yield US Treasury 6,001, US Agency Bullet 22,465, US Agency Callable 18,875, Bank Deposit 4,447, State Investment Pool 12,042, Muni GO 9,242, Muni Rev 3,745, Muni BABS 206, Muni COPS 1,997, Municipal Direct 3,278, Total 82,303,

11 Performance Net of Fees Walla Walla County Net of Allocated Fees US Dollar 12/31/2016 Performance History Quarter Fiscal Year Latest Inception Portfolio To Date To Date 1 Year To Date Account Index ML 0-3 Year Treasury Index ML 0-1 Year Treasury Time Weighted Return Inception (12/31/2014) to Date 9

12 Performance Gross of Fees Walla Walla County Gross of Fees US Dollar 12/31/2016 Performance History Quarter Fiscal Year Inception Portfolio To Date To Date To Date Account Index ML 0-3 Year Treasury Index ML 0-1 Year Treasury Time Weighted Return Inception (12/31/2014) to Date 10

13 Portfolio Holdings Walla Walla County December 31, 2016 Call Trade Amor Book Market Market Market Accrued Total Unrealized Pct. Dur Eff Cusip Quantity Security Date Date Price Yield Price Yield Value Interest Value Gain/Loss Assets Mat Dur US Treasury UA VE A34 1,000,000 UNITED STATES , , , TREAS NTS 0.625% Due ,000,000 UNITED STATES ,999, , ,000, , TREAS NTS 1.000% Due ,000,000 UNITED STATES ,004, , ,007, , TREAS NTS 1.250% Due ,000, ,001, , ,006, , US Agency Bullet 31359M4D2 1,500,000 FEDERAL NATL MTG ASSN 5.000% Due EADC0 2,000,000 FEDERAL HOME LN MTG CORP 1.000% Due G43Y2 785,000 FEDERAL HOME LN MTG CORP 0.700% Due A5EP0 2,000,000 FEDERAL HOME LOAN BANKS 0.625% Due A4Q70 2,000,000 FEDERAL HOME LOAN BANKS 1.000% Due A6SA6 2,000,000 FEDERAL HOME LOAN BANKS 0.940% Due G1LZ0 1,000,000 FEDERAL NATL MTG ASSN 0.750% Due EADN6 1,000,000 FEDERAL HOME LN MTG CORP 0.750% Due EADP1 2,000,000 FEDERAL HOME LN MTG CORP 0.875% Due ,507, , ,536, ,001, , ,007, , , ,999, , ,000, ,001, , ,003, , ,000, , ,002, , , , , , ,001, , ,997, , ,002, ,

14 Portfolio Holdings Walla Walla County December 31, 2016 Call Trade Amor Book Market Market Market Accrued Total Unrealized Pct. Dur Eff Cusip Quantity Security Date Date Price Yield Price Yield Value Interest Value Gain/Loss Assets Mat Dur 31315PZZ5 3134G44S GB5 3133EFX EF3V7 3134G9KF3 250,000 FEDERAL AGRIC MTG , , , CORP 0.770% Due ,000,000 FEDERAL HOME LN , , , MTG CORP 1.000% Due ,000,000 FEDERAL HOME , , , LOAN BANKS 1.000% Due ,000,000 FEDERAL FARM CR ,988, , ,997, , BKS 1.000% Due ,000,000 FEDERAL FARM CR ,981, , ,988, , BKS 0.875% Due ,000,000 FEDERAL HOME LN ,967, , ,970, , MTG CORP 1.200% Due ,535, ,465, , ,537, , US Agency Callable 3133ECP24 2,000,000 FEDERAL FARM CR BKS 0.700% Due A7SQ9 2,000,000 FEDERAL HOME LN BKS 0.900% Due G0XK4 2,000,000 FEDERAL NATL MTG ASSN 1.050% Due A96A4 2,000,000 FEDERAL HOME LOAN BANKS 1.000% Due G8XA2 2,000,000 FEDERAL HOME LN MTG CORP 1.000% Due G0L68 2,000,000 FEDERAL NATL MTG ASSN 0.750% Due G9JK4 1,000,000 FEDERAL HOME LN MTG CORP 1.125% Due ,998, , ,004, , ,994, , ,002, , ,995, , ,997, , ,989, ,990, , ,987, , ,991, , ,987, , ,994, , , , , ,

15 Portfolio Holdings Walla Walla County December 31, 2016 Call Trade Amor Book Market Market Market Accrued Total Unrealized Pct. Dur Eff Cusip Quantity Security Date Date Price Yield Price Yield Value Interest Value Gain/Loss Assets Mat Dur 3136G3YL3 3134G9MU8 3130A9Z46 2,000,000 FEDERAL NATL MTG ,978, , ,986, , ASSN 0.900% Due ,000,000 FEDERAL HOME LN ,986, , ,988, , MTG CORP 1.300% Due ,000,000 FEDERAL HOME ,961, , ,963, , LOAN BANKS 1.600% Due ,000, ,875, , ,916, , Bank Deposit SYS ,000 Baker Boyer Bank , , % Due SYSUMPQ11 4,020,945 UMPQUA BANK MMF ,020, ,020, % Due ,447, ,447, ,447, State Investment Pool WAPOOL 12,042,812 WASHINGTON LGIP ,042, ,042, % Due Muni GO KV0 1,020,000 POLK MARION & ,019, ,019, BENTON CNTYS ORE 1.231% Due E3Q8 1,000,000 NEW YORK N Y ,021, , ,041, , % Due MU3 390,000 PUYALLUP WASH , , % Due VF4 1,805,000 ADA & CANYON ,889, , ,916, , CNTYS IDAHO JT SC 4.000% Due ZF1 1,430,000 CINCINNATI OH ,446, , ,451, , % Due D55 1,185,000 NORTH SLOP BORO ,282, , ,290, , AK 5.000% Due

16 Portfolio Holdings Walla Walla County December 31, 2016 Call Trade Amor Book Market Market Market Accrued Total Unrealized Pct. Dur Eff Cusip Quantity Security Date Date Price Yield Price Yield Value Interest Value Gain/Loss Assets Mat Dur UE3 Muni Rev JF RK NQE9 2,000,000 MET PARK DIST OF ,193, , ,201, , TACOMA WA 5.000% Due ,830, ,242, , ,312, , ,000 TACOMA WASH WTR , , , REV 1.150% Due ,000 GRANT CNTY WASH , , , , PUB UTIL DIST 2.010% Due ,475,000 UNIV OF ,475, , ,479, WASHINGTON 1.750% Due ,745, ,745, , ,754, Muni BABS PC9 Muni COPS LJ5 200,000 GRANT CNTY WASH PUB UTIL DIST 4.361% Due ,000,000 WASHINGTON ST CTFS PARTN 0.900% Due , , , ,997, , ,006, , Municipal Direct FAIR ,863 Walla Walla County , , , % Due WWCO1 681,945 Walla Walla County , , , % Due HS12 1,000,835 Walla Walla County ,000, , ,078, % Due JAIL ,400,000 Walla Walla County ,400, , ,402, % Due FAIR ,909 Walla Walla County , , % Due ,278, ,278, , ,419, TOTAL 82,079, ,303, , ,654, ,

17 Transaction Summary Walla Walla County 10/1/ /31/2016 Purchases Adj Unit Adjusted Trade Date Settle Date Quantity Symbol Security Cost Total Cost 10/20/ /21/2016 2,000, EADP1 FEDERAL HOME LN MTG CORP ,001, % Due /21/ /24/2016 2,000, G0L68 FEDERAL NATL MTG ASSN ,994, % Due /20/ /31/2016 1,430, ZF1 CINCINNATI OH ,457, % Due /26/ /10/2016 1,185, D55 NORTH SLOP BORO AK ,304, % Due /15/ /30/2016 2,000, A9Z46 FEDERAL HOME LOAN BANKS ,985, % Due /4/ /1/2016 2,000, UE3 MET PARK DIST OF TACOMA WA ,230, % Due /1/ /1/2016 1,400,000 JAIL 2016 Walla Walla County ,400, % Due /8/ /8/ ,909 FAIR B Walla Walla County , % Due Total Purchases 12,469,368 Sales Adj Unit Adjusted Amort. or Unit Trade Date Settle Date Quantity Symbol Security Cost Total Cost Accretion Price Proceeds Gain/Loss 10/21/ /24/2016 2,000, EADV8 FEDERAL HOME LN MTG CORP ,998,440 1, ,000,606 1, % Due /31/ /31/2016 4,046 FAIR2012 Walla Walla County , , % Due /31/ /31/ ,212 WWCO1 Walla Walla County , , % Due /2/ /5/2016 2,000, G0F73 FEDERAL NATL MTG ASSN ,970,117 6, ,979,000 2, % Due /2/ /5/2016 1,000, G0YT4 FEDERAL NATL MTG ASSN ,011,066-3, ,008, % Due /30/ /30/ ,954 HS12 Walla Walla County , ,

18 Transaction Summary Walla Walla County 10/1/ /31/2016 Sales Trade Date Settle Date Quantity Symbol Security 3.860% Due Adj Unit Cost Adjusted Total Cost Amort. or Accretion Unit Price Proceeds Gain/Loss Total Sales 5,260,834 3,421 5,269,037 4,782 Maturities Adj Unit Adjusted Amort. or Unit Trade Date Settle Date Quantity Symbol Security Cost Total Cost Accretion Price Proceeds Gain/Loss 11/15/ /15/2016 2,000, A4KW1 FEDERAL HOME LOAN BANKS ,002,300-2, ,000, % Due /23/ /23/2016 2,000, A3J70 FEDERAL HOME LOAN BANKS ,002,116-2, ,000, % Due /30/ /30/2016 1,000, RU6 UNITED STATES TREAS NTS ,004,650-4, ,000, % Due /1/ /1/ , JS6 SAMMAMISH PLATEAU WASH WTR & S , , % Due /1/ /1/2016 1,060, GH0 SNOHOMISH CNTY WA SCH DIST ,060, ,060, % Due /1/ /1/ , KE0 WALLA WALLA CNTY WASH SCH DIST ,238-31, , % Due /8/ /8/ ,896 FAIR2011 Walla Walla County , , % Due Total Maturities 6,873,708-40,812 6,832,

19 SENSITIVITY ANALYSIS Weighted Average Maturity: 503 Book Value: $ 82,546, Market Value: $ 82,303, Market Value (NAV): Total $ Unrealized Loss: $243,274 Total $ Unrealized Gain: $0 Basis Point Shift Gain (Loss) $ (3,655,948) $ (3,087,169) $ (2,518,390) $ (1,949,611) $ (1,380,832) $ (812,053) $ (243,274) $ 325, $ 894, $ 1,463, $ 2,031, $ 2,600, $ 3,169,400 Redemption/Inflow -30% -10% -5% 0% 5% 10% 30% O/S Shares 57,782,523 74,291,816 78,419,139 82,546,462 86,673,785 90,801, ,310,401 Shift Upon NAV = NAV - (APM/365) * (Bp/10,000) Dilution Upon NAV= (NAV + Change) / (1+ Change) NAV = Market Value / Book Value * Source: S&P rating matrix 17

20 This report is for general informational purposes only and is not intended to provide specific advice or recommendations. Government Portfolio Advisors (GPA) is an investment advisor registered with the Securities and Exchange Commission and is required to maintain a written disclosure statement of our background and business experience. Questions About an Account: GPA's monthly & quarterly reports are intended to detail the investment advisory activity managed by GPA. The custodian bank maintains the control of assets and executes (ie. Settles) all investment transactions. The custodian statement is the official record of security and cash holdings and transactions. GPA recognizes that clients may use these reports to facilitate record keeping and that the custodian bank statement and the GPA report should be reconciled and differences resolved. Many custodians use a settlement date basis which may result in the need to reconcile due to a timing difference. GPA relies on the information provided by the clients when reporting pool balances, bank balances and other assets that are not held at the clients custodial bank. Account Control: GPA does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retain responsibility for their deposit funds to the custodian. Our clients retain responsibility for their internal accounting policies, implementing and enforcing internal controls and generating ledger entries or otherwise recording transactions. Market Value: Generally, market prices in GPA's reports are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data or Bloomberg. Where prices are not available from generally recognized sources the securities are priced using a yield-based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated. Non-negotiable FDIC insured bank certificates of deposit are priced at par. Although GPA believes the prices to be reliable, the values of the securities do not always represent the prices at which the securities could have been bought or sold. Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premiums with respect to short term securities (those with less than one year to maturity at time of issuance) is amortized on a straightline basis. Such discount or premium with respect to longer term securities is amortized using a straight-line basis. Financial Situation: In order to better serve you, GPA should be promptly notified of any material change in your investment objective or financial situation. Callable Securities: Securities subject to redemption prior to maturity may be redeemed in whole or in part before maturity, which could affect the yield represented. Certain call dates may not show up on the report if the call date has passed and it is continuously callable. Bonds purchased at a premium will be amortized to call date versus all others will be amortized to maturity. Duration: The duration listed on the reports is duration to maturity and duration to call. Effective duration is calculated on Bloomberg and imported into these reports and reflects the OAS duration which incorporates the probability of the bond being called. Effective duration is what GPA compares to the benchmark to reflect current market risk. Benchmark Duration: The benchmark duration is the historical weighted average of the benchmark duration over monthly periods. GPA is reporting this number as a static amount period over period. Portfolio: The securities in this portfolio are not guaranteed or otherwise protected by GPA, the FDIC (except for non-negotiable certificates of deposit) or any government agency. Investment in securities involves risks, including the possible loss of the amount invested. Rating: Information provided for ratings is based upon a good faith inquiry of selected sources, but its accuracy and completeness cannot be guaranteed. Disclaimer & Terms Coupon Payments and Maturities on Weekends: Oftentimes, coupon payments and maturities will occur on a weekend or holiday. GPA will track these payments on an accrual basis, while the custodian bank may track on a cash basis. The accrual basis allocates the earnings in the period earned. 12/31/