Executive Committee Meeting Agenda

Transcription

1 Executive Committee Meeting Agenda Meeting : Monday, October 15, 2018 Meeting Place: 1010 Chadbourne Road Fairfield, California (Executive Conference Room) Executive Committee Michael Segala, President Harry Price, Vice President Lori Wilson Chuck Timm Meeting Time: 4:30 p.m. 1. Roll Call 2. Public Comments 3. General Manager Report 4. Discussion Items Page (a) Bridge to Life Center - Capacity Fee Agreement... 2 (b) Second Year Operation Report: Organic Material Recovery Center (OMRC) at FSSD Action Items (a) Approve the October 22, 2018 Board of Directors Meeting Agenda Information Items (a) Monthly Operating Summary... 6 (b) Connection Fee Chart... 7 (c) Quarterly Investment Report... 8 (d) Potential Presentations for Board of Director Meetings (e) Board Calendar End of Agenda-- The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact the District at (707) at least 48 hours before the meeting if you require such modification or accommodation. Documents that are disclosable public records required to be made available under California Government Code Section (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address. Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker s request card, and submitting the card to the Board Secretary. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item.

2 October 11, 2018 CO MEMORANDUM TO: FROM: SUBJECT: Executive Committee Greg Baatrup, General Manager Report on Bridge to Life Center - Capacity Fee Agreement Recommendation: Receive report and file. Background: Mission Solano operates the Bridge to Life Center (BLC) on Beck Avenue in Fairfield. Several local government agencies (including the District) provided loans, fee deferrals, and other financial assistance to Mission Solano to build the Bridge to Life Center. The District entered into a Capacity Financing Agreement with Mission Solano allowing them to pay connection fees for the BLC in 40 quarterly installments of $3,344. Mission Solano has paid 32 of the 40 payments but did not make their scheduled August 2018 payment. As noted in the District s June 22, 2018 staff report to the Board of Directors, the City of Fairfield has taken the lead in seeking a new operator for the facility. The City of Fairfield received proposals from four firms to operate the BLC and on September 18 th, the City Council directed city staff to negotiate an operating contract with Shelter, Inc. In their proposal, Shelter, Inc. acknowledges and is willing to abide by the Capacity Financing Agreement, but expressed they were not willing to accept the responsibility for amounts not paid prior to the transition. The General Manager is working with the Fairfield City Manager and will work with Shelter, Inc. to address the following District issues: 1) Collecting on Mission Solano s delinquent payments (currently $3,344 but will likely be $6,688) prior to the effective date of the new contract with the new operator. 2) Assigning Mission Solano Capacity Financing Agreement to Shelter, Inc or replacing it with a new agreement for future capacity fee payments which may include the following: a. Consideration of a new amortization schedule for the unpaid balance. b. Modification to the sewer capacity allocated to the property to reflect the actual and future payments. There are no specific proposals or requests. 2

3 October 11, 2018 BI MEMORANDUM TO: Executive Committee THROUGH: Greg Baatrup, General Manager FROM: Jordan Damerel, Director of Engineering SUBJECT: Second Year Operation Report: Organic Material Recovery Center (OMRC) at FSSD Recommendation: Receive report and file. Background: Historical Biosolids Management The District s wastewater treatment process produces residual solid material, called biosolids, which must be stabilized and disposed of. Stabilization occurs in the District s anaerobic digesters, which produce a wet biosolids product (approximately 98% water). Prior to August 2016, the District dewatered these biosolids by processing either through a mechanical screw press or through drying beds, which produced dryer biosolids containing 75-85% water. This material was then trucked to Potrero Hills Landfill for use as Alternative Daily Cover (ADC). Lystek Organic Material Recovery Center In recognition of impending regulations that would restrict landfills from accepting some types of organic material, the District entered into an agreement with Lystek International, Ltd., that allowed construction of a regional Organic Material Recovery Center (OMRC-FSSD), capable of processing up to 150,000 wet tons of biosolids per year, including the District s 18,000 wet tons per year resulting from the District s mechanical screw press dewatering operation. The OMRC- FSSD produces several products, including a biofertilizer product (LysteGro) and an anaerobic digester supplement to increases biogas production (LyteMize). Discussion: The OMRC-FSSD was placed into service on August 16, 2016, accepting over 37,000 tons of District biosolids since that date, as well as importing over 26,000 tons from third parties. Although the District s base processing fee for biosolids treatment is $56.53 per ton (FY 18-19), the second-year actual average cost (August 2017 through July 2018) was $43.13 per ton, accounting for facility use and host mitigation fees paid by Lystek to the District for thirdparty biosolids processed at the District s treatment plant. The OMRC-FSSD imported 20,000 tons of third-party biosolids between August 2017 and July 2018, compared to 5,600 tons imported between August 2016 and July District staff 3

4 Second Year Operation Report: Organic Material Recovery Center (OMRC) at FSSD October 11, 2018 Page 2 of 2 estimate that when the third-party import material reaches around 36,000 tons per year, the District will be saving money over the pre-lystek cost of $40 per ton. Note that the $40 per ton solution will likely be eliminated due to new state regulations regarding organics diversion from landfills. District staff continues to coordinate with Lystek on several future endeavors, including: Construction of a new receiving pit to allow import of non-digested third-party wastewater sludges; Feeding LysteMize to the District s anaerobic digester to study potential process enhancements; Direct processing of the District s digested sludge without dewatering; Investigating other organic feedstocks that could be processed in the District s digester and/or the OMRC-FSSD; and Process communication improvements and data sharing between Lystek and the District. This presentation was included in the September 24, 2018 agenda but due to time constraints, it was not presented. District and Lystek staff will present a summary of the partnership and progress to date at the Board of Directors meeting on October 22,

5 Fairfield-Suisun Sewer District 1010 Chadbourne Road Fairfield, California (707) Gregory G. Baatrup, General Manager Board of Directors Meeting Agenda Meeting : Monday, October 22, 2018 Meeting Place: 1010 Chadbourne Road, Fairfield, California Meeting Time: 6:00 p.m. Teleconference Notice: Pursuant to California Government Code Section b, the following will be participating by teleconference: 1. Director Jane Day from 301 Morgan Street, Suisun City, CA Roll Call 2. Pledge of Allegiance 3. Public Comments 4. Board Comments 5. General Manager Comments Page 6. Consent Calendar (a) Approve Minutes of Meeting on September 24, ## 7. Information and Discussion Items (a) Bridge to Life Center Capacity Fee Agreement... (b) Receive Report on Organic Material Recovery Center... (c) Quarterly Investment Report... ## (d) Board Calendar... ## -- End of Agenda -- Board of Directors Michael Segala, President Harry price, Vice President Pam Bertani Jane Day Mike Hudson Catherine Moy Pete Sanchez Chuck Timm Rick Vaccaro Lori Wilson The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact us at (707) at least 48 hours before the meeting if you require such modification or accommodation. Documents that are disclosable public records required to be made available under California Government Code Section (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address. Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker s request card, available on the table adjacent to the entrance to the board meeting room, and submitting the card to the District Clerk. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item. 5

6 October 9, 2018 MEMORANDUM TO: Greg Baatrup, General Manager THROUGH: Talyon Sortor, Assistant General Manager FROM: Giti Heravian, Laboratory Manager SUBJECT: Operating Data Summary 2018 Daily Numbers: August September Influent Flow Daily Average MGD MGD Recycled Flow Daily Average 0.89 MGD 0.70 MGD Permit Samples Analyzed Permit Excursions 0 0 Percent Samples in Compliance 100% 100% TSS Daily Average Influent 252 mg/l 233 mg/l BOD Daily Average Influent 256 mg/l 264 mg/l TSS Daily Average Effluent <3.0 mg/l <3.0 mg/l BOD Daily Average Effluent <2.0 mg/l <2.0 mg/l Annual Numbers: January September Influent Flow Daily Average MGD Recycled Flow Daily Average 0.54 MGD Permit Samples Analyzed 3,395 Permit Excursions 0 Percent Samples in Compliance 100% 6

7 $700,000 Fairfield-Suisun Sewer District Capacity Fee Revenue Fairfield Suisun City Budget Average $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2016/

8 October 5, 2018 FI-210 MEMORANDUM TO: Executive Committee THROUGH: Greg Baatrup, General Manager FROM: SUBJECT: Helen Gaumann, Director of Administrative Services Quarterly Investment Report Attached is the District s Quarterly Investment Report (attachment #1), for the quarter ended September 30, This report conforms to the District s Investment Policy (#3035) as readopted by the Board of Directors at its meeting on June 25,2018. Also attached is the Investment Performance Report (attachment #2) for the same quarter, by Public Financial Management (PFM) Asset Management LLC. The District s cash balances represent operating and reserve funds held in short-term and medium-term instruments, which will enable the District to meet its anticipated cash flow requirements. Attachments: #1- Quarterly Investment Report #2- Investment Performance Report by PFM 8

9 INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2018 Attachment #1 Asset Detail of Par Market Market Estimated Instrument Maturity Value Value Yield Annual Income California Asset Mgt Program (CAMP) Various $ 20,462,705 $ 20,188, % $ 591,372 WFB Business Market Rate Public Funds N/A 5,111,617 5,111, % 5,112 State Local Agency Investment Fund N/A 16,254,047 16,254, % 324,756 Totals $ 41,828,369 $ 41,553,723 $ 921,240 Summary of Portfolio Securities NOTES: Market Value Par Value means the purchase cost of an asset. Market Yield is an approximation of the gross income an asset is California Asset Mgt Program (CAMP) $ 20,188,059 projected to earn annually, expressed as a percentage of the asset's WFB Business Market Rate Public Funds 5,111,617 market value. State Local Agency Investment Fund 16,254,047 Market Value an estimate of the value at which the principal would $ 41,553,723 be sold from a willing seller to a willing buyer. Market Values, Current Yields and Estimated Annual Income are from Summary of Maturities the following sources: Market Value Local Agency Investment Fund monthly statement 0-12 months $ 25,310,411 Wells Fargo Bank monthly account statement 1-2 years 4,019,443 California Asset Management Program statement 2-3 years 5,686, years 5,444,720 All investments are in compliance with the District's current 4-5 years 1,092,174 investment policy. The District has sufficient funds to meet its expense requirements for the next three months. $ 41,553,723 LAIF market value was not available as of date of preparation of this report. Prepared by 10/10/18 9

10 Attachment #2 Investment Performance Review For the Quarter Ended September 30, 2018 Client Management Team Izac Chyou, Senior Managing Consultant 50 California Street, Suite 2300 San Francisco, CA Market Street Harrisburg, PA

11 Market Update 11

12 Market Update Economic Summary Inflation Measures U.S. Real GDP (YoY) (QoQ, SAAR) 6% 2.5% Rolling 4-Quarter Average 2.9% 4% 4.2% 2% 2.0% 1.5% Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Core PCE Q1 0.5% Q4-2% Q3 Core CPI Q2 1.0% Q1 0% 2018 Fed's Long Term Inflation Target 0.0% Aug '13 Unemployment Rate 9% 8% % 6% Aug '16 Aug '17 Aug '18 Highest since % % 5% 5.0% % 3.7% 4% 3% Sep-13 Aug '15 Consumer Confidence 160 7% Aug '14 Sep-14 Sep-15 Sep-16 Sep-17 Sep Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Source: Bloomberg, data available as of 9/30/18. SAAR is seasonally adjusted annualized rate. 12 1

13 Market Update Consumer Debt Hits New Peak Total Household Debt Breakdown (in $trillions) Mortgage HE Revolving Auto Loan Credit Card Student Loan 14 Other 2018Q2 Total: $13.29 Trillion 2008Q4 Total: $12.68 Trillion $ $ $0.8 $1.2 8 $ $ :Q1 17:Q2 16:Q3 15:Q4 15:Q1 14:Q2 13:Q3 12:Q4 12:Q1 11:Q2 10:Q3 09:Q4 09:Q1 08:Q2 07:Q3 06:Q4 06:Q1 05:Q2 04:Q3 03:Q4 03:Q1 0 Source: Federal Reserve Bank of New York Consumer Credit Panel/Equifax, as of Q

14 Market Update Housing Market Momentum Slowed Recently Existing Home Sales New Home Sales (000s, SAAR) (000s, SAAR) 6, Highest Since , , ,000 Aug '08 Aug '10 Aug '12 Aug '14 Aug '16 Aug ' Aug '08 Highest Since 2007 Aug '10 Aug '12 Housing Starts Building Permits (000s, SAAR) (000s, SAAR) 1,600 Aug '16 Aug '18 1,600 Highest Since 2007 Highest Since ,200 1, Aug '08 Aug '14 Aug '10 Aug '12 Aug '14 Aug '16 Aug ' Aug '08 Aug '10 Aug '12 Aug '14 Aug '16 Aug '18 Source: Bloomberg, most recent data as of September SAAR is the seasonally adjusted annualized rate. 14 3

15 Market Update Where Are We in the Economic Cycle? Different Indicators Give Differing Views The Conference Board Leading Economic Index Continues to Rise Supports the continuing solid growth in the economy Suggests no recession in the near-term Source (left): Wall Street Journal; Deutsche Bank. Source (right): Conference Board. 15 4

16 Market Update Treasury Yields Continue to Rise The third quarter marked the tenth straight quarterly rise in the 2-year yield as the U.S. economy remained strong and the Federal Reserve continued quantitative tightening, raising the federal funds target rate by 25 basis points for the third time this year at its September meeting. The 2-year Treasury increased by 29 basis points to 2.82% in the third quarter. 2-Year U.S. Treasury 3.00% 2.82% 2.75% 2.50% Yield 2.53% 2.25% 2.27% 2.00% 1.89% 1.75% Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Source: Bloomberg, as of 9/30/

17 Market Update U.S. Treasury Curve 3Q2018 9/30/18 2Q2018 6/30/ % 1Q2018 3/31/ % 3 month 2.20% 1.91% 1.70% 2.75% 2.36% 2.10% 1.91% 1 year 2.56% 2.31% 2.08% 2 year 2.82% 2.53% 2.27% 3 year 2.88% 2.62% 2.38% 2.50% Yield 6 month 2.25% 2.00% September 30, % June 30, % 5 year 2.95% 2.74% March 31, % 1.25% 5Y 3Y 2Y 1Y 6M 3M 1.00% Maturity Source: Bloomberg, as of 9/30/

18 Market Update Portfolio Yield Spreads Tend to Compress During Fed Tightening 7-Day LGIP Yield vs 3-Year Treasury Yield Recession 3-Year Treasury Yield 18-Month Moving Average S&P LGIP 7 Day Yield 8% Period of FOMC Tightening 7% 6% 5% 4% 3% 2% 1% % Source: Bloomberg. 18 7

19 Market Update Sector Returns 1-5 Year Indices 2018 Q YTD 1.00% 0.86% 0.66% 0.75% 0.55% 0.50% 0.28% 0.26% 0.25% 0.16% 0.11% 0.05% 0.00% -0.25% -0.20% -0.50% -0.75% -0.71% ABS (AAA) MBS Corp (A-AAA) Agency U.S. Treasury ABS (AAA) MBS Corp (A-AAA) Agency U.S. Treasury -1.00% Source: ICE BofAML Indices. MBS and ABS indices are 0-5 year, based on weighted average life. As of 9/30/

20 Market Update Yield Environment as of September 30, 2018 Maturity Treasury Federal Agency Supranational Commercial Paper A Corporate 3-Month 2.20% 2.18% 2.21% 2.33% - 6-Month 2.32% 2.30% 2.27% 2.54% - 1-Year 2.59% 2.62% 2.61% % 2-Year 2.82% 2.85% 2.88% % 3-Year 2.88% 2.93% 2.99% % 5-Year 2.95% 3.05% 3.07% % Source: Bloomberg, PFM Trading Desk. TradeWeb for Federal Agency and Supranational yields. Yields are for indicative purposes only; actual yields may vary by issue. 20 9

21 Market Update FOMC Dot Plot A Third 2018 Rate Hike in September Fed Participants Assessments of Appropriate Monetary Policy September % Sept-18 FOMC Projections Sept-18 Median 4% 3% 2% 1% Fed Funds Futures History of Recent Fed Rate Hikes Sept % Jun % Mar % Dec % Jun % Mar % Dec % Dec % Fed expects 1 more rate hike in 2018 & maintained future projections 0% Longer Term Source: Federal Reserve and Bloomberg. Individual dots represent each Fed members judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end. Fed funds futures as of 9/26/

22 Portfolio Review 22

23 Portfolio Review Sector Allocation and Compliance The portfolio is in compliance with the District s Investment Policy and the California Government Code. % of Portfolio % Change vs. 6/30/18 Permitted by Policy In Compliance $3,579, % +1.9% 100% Federal Agency $508, % -0.0% 100% Federal Agency CMOs $287, % -0.1% California Municipal Obligations $174, % -0.0% Supranationals $1,357, % +0.9% 30% Negotiable CDs $3,912, % +0.2% 30% Corporate Notes $5,567, % -1.4% 30% Commercial Paper $1,836, % -2.3% 25% Asset-Backed Securities $2,748, % +1.0% 20% $19,971, % -0.2% 100% Security Type U.S. Treasury Securities Sub-Total Market Value Accrued Interest $85,203 Securities Total $20,057,136 CAMP Total Investments $130,923 $20,188, % 100.0% As of 9/30/2018. Detail may not add to total due to rounding

24 Market Update Portfolio Recap We positioned portfolios with a defensive duration posture for the majority of the past two quarters in light of the Fed s impact on short-term rates. This has benefited portfolio returns as yields across the curve approached new highs for this cycle. Because the yield curve is so flat, holding longer maturities resulted in very little yield concession. On balance, the tradeoff between slightly lower yields (by being short of the benchmark) and being less exposed to the negative market value impact of the rise in rates during the quarter (from a shorter duration) generally resulted in outperformance vs. benchmarks. After a stronger Q2, strong economic fundamentals gave investors confidence in corporate and other non-government sectors. Most investment-grade sectors contributed positive excess returns (returns in excess of similar-duration Treasuries) to fixedincome portfolios for the quarter. As has been the case for some time, federal agency yield spreads remained extremely narrow throughout the quarter. We generally underweighted agencies in favor of U.S. Treasuries or other sectors. After adding to supranational allocations in the first half of the year, a sharp decline in issuance caused yield spreads to narrow, reducing their attractiveness. The result was strong performance for the sector but few new opportunities. In the corporate sector, strong economic tailwinds created a favorable investment landscape. Corporate returns dominated their government counterparts, adding significant value to portfolios in Q3. We actively sought to increase allocations to asset-backed securities (ABS). Our view of the ABS sector was that it remained a high-quality diversifier to corporate allocations, providing incremental income, with a high degree of downside protection given the sector s strong structural protections and AAA ratings. During Q3, the sector provided attractive excess returns. After providing several consecutive quarters of incremental income relative to short-term government alternatives, yield spreads on commercial paper and negotiable bank certificates of deposit grinded to 12-month tights. Our strategy in Q3 was to be more selective with regard to issuer/maturity and wait for the next Fed rate hike (which occurred September 26) before reassessing value in short credit instruments. Our view of mortgage-backed securities (MBS) remained cautious. As such, our allocations to MBS were generally small and focused on structures with limited extension risk such as shorter maturity pass-throughs and collateralized mortgage obligations (CMOs), agency-backed commercial mortgage-backed securities (CMBS), and MBS with higher coupons, all of which carry less downside risk in a rising rate environment

25 Portfolio Snapshot Sector Allocation Credit Quality (S&P Ratings) Portfolio Statistics As of September 30, 2018 Par Value: $20,408,776 Total Market Value: $20,188,059 Security Market Value: Accrued Interest: Not Rated** 2.1% BBB+*** 5.9% AAAm 0.6% AAA 18.3% $85,203 - CAMP $130,923 $20,377,503 Yield at Market: 2.89% Yield at Cost: 2.31% AA+ 21.8% Asset-Backed 13.7% Certificate of Deposit 19.5% Commercial Paper 9.1% Maturity Distribution 32% Effective Duration: 1.97 Years Duration to Worst: 2.01 Years 28% Average Maturity: 2.31 Years 24% AA 20% Average Credit: * A % A % AA 1.5% AA8.5% $19,971,934 Cash: Amortized Cost: A 7.5% A3.5% A+ 13.5% U.S. Treasury 17.8% Supra-Sov / Supra-Natl Agency 6.8% Municipal 0.9% Mny Mkt Fund / Pool 0.7% Federal Agency/GSE 2.5% Federal Agency/CMO 1.4% Corporate 27.6% 28.2% 19.5% 27.0% 19.9% 16% 12% 8% 5.4% 4% 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. **The "Not Rated" category comprises asset-backed securities rated by Moody's. ***The "BBB+" category comprises securities rated A or better by Moody's and/or Fitch

26 Portfolio Performance Portfolio Performance (Total Return) Annualized Return Effective Duration Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception (03/31/17) ** CAMP % 0.33% % ICE BofAML 0-5 Year U.S. Treasury Index % -0.13% % 0.32% 0.46% % Portfolio/Benchmark Difference 0.79% 0.8% 0.6% Total Return 0.47% 0.4% 0.33% 0.2% 0.33% 0.15% 0.0% -0.13% -0.2% Current Quarter 1 Year 3 Year CAMP- 5 Year 10 Year Since Inception ICE BofAML 0-5 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

27 Portfolio Performance Portfolio Earnings Quarter-Ended September 30, 2018 Market Value Basis Beginning Value (06/30/2018) Net Purchases/Sales Change in Value Ending Value (09/30/2018) Interest Earned Portfolio Earnings Accrual (Amortized Cost) Basis $20,006, $20,275, $105, $105, ($8,763.41) ($3,220.93) $20,102, $20,377, $103, $103, $94, $100,

28 Portfolio Composition Sector Allocation September 30, 2018 Sector MV ($MM) % of Total December 31, 2017 March 31, 2018 June 30, 2018 MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total Corporate % % % % Certificate of Deposit % % % % U.S. Treasury % % % % Asset-Backed % % % % Commercial Paper % % % % Supra-Sov / Supra-Natl Agency % % % % Federal Agency/GSE % % % % Federal Agency/CMO % % % % Municipal % % % % Mny Mkt Fund / Pool % % % % $ % $ % $ % $ % Total 100% Mny Mkt Fund / Pool Municipal 90% 80% Federal Agency/CMO Federal Agency/GSE 70% 60% Supra-Sov / Supra-Natl Agency Commercial Paper Asset-Backed U.S. Treasury 50% 40% 30% 20% 10% Certificate of Deposit Corporate 0% September 2018 June 2018 March 2018 December 2017 Detail may not add to total due to rounding

29 Portfolio Composition Maturity Distribution As of September 30, 2018 Yield at Market Average Maturity 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years >5 Years CAMP- 2.89% 2.31 yrs 19.5% 19.9% 28.2% 27.0% 5.4% 0.0% ICE BofAML 0-5 Year U.S. Treasury Index 2.76% 2.26 yrs 23.8% 24.9% 20.6% 15.5% 15.2% 0.0% Portfolio/Benchmark 32% 28.2% 28% 23.8% 24% 20% 19.9% 19.5% 27.0% 24.9% 20.6% 15.5% 16% 15.2% 12% 8% 5.4% 4% 0.0% 0% 0-1 Years 1-2 Years CAMP- 2-3 Years 3-4 Years 4-5 Years 0.0% > 5 Years ICE BofAML 0-5 Year U.S. Treasury Index 29 17

30 Portfolio Composition Sector/Issuer Distribution As of September 30, 2018 Sector / Issuer Market Value ($) % of Sector % of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 381, % 1.9% AMERICAN EXPRESS CO 223, % 1.1% CITIGROUP INC 493, % 2.5% CNH EQUIPMENT TRUST 80, % 0.4% FORD CREDIT AUTO LEASE TRUST 84, % 0.4% 152, % 0.8% GM FINANCIAL AUTO LEASING TRUST 65, % 0.3% GM FINANCIAL SECURITIZED TERM 94, % 0.5% HONDA AUTO RECEIVABLES 371, % 1.8% HYUNDAI AUTO RECEIVABLES 290, % 1.4% JOHN DEERE OWNER TRUST 108, % 0.5% NISSAN AUTO RECEIVABLES 104, % 0.5% TOYOTA MOTOR CORP 296, % 1.5% 2,748, % 13.7% BANK OF MONTREAL 299, % 1.5% BANK OF NOVA SCOTIA 376, % 1.9% CREDIT SUISSE GROUP 199, % 1.0% MITSUBISHI UFJ FINANCIAL GROUP INC 198, % 1.0% FORD CREDIT AUTO OWNER TRUST Sector Total Certificate of Deposit 30 18

31 Sector / Issuer Portfolio Composition Market Value ($) % of Sector % of Total Portfolio NORDEA BANK AB 199, % 1.0% ROYAL BANK OF CANADA 499, % 2.5% SKANDINAVISKA ENSKILDA BANKEN AB 387, % 1.9% SUMITOMO MITSUI FINANCIAL GROUP INC 398, % 2.0% SWEDBANK AB 392, % 2.0% TORONTO-DOMINION BANK 249, % 1.2% UBS AG 350, % 1.7% WESTPAC BANKING CORP 359, % 1.8% 3,912, % 19.5% BNP PARIBAS 492, % 2.4% ING GROUP NV 397, % 2.0% JP MORGAN CHASE & CO 249, % 1.2% MITSUBISHI UFJ FINANCIAL GROUP INC 298, % 1.5% NATIXIS NY BRANCH 398, % 2.0% 1,836, % 9.1% AMERICAN EXPRESS CO 196, % 1.0% AMERICAN HONDA FINANCE 280, % 1.4% BANK OF AMERICA CO 164, % 0.8% CATERPILLAR INC 146, % 0.7% CITIGROUP INC 332, % 1.7% COMCAST CORP 197, % 1.0% Sector Total Commercial Paper Sector Total Corporate 31 19

32 Sector / Issuer Portfolio Composition Market Value ($) % of Sector % of Total Portfolio DEERE & COMPANY 197, % 1.0% GENERAL DYNAMICS CORP 114, % 0.6% GENERAL ELECTRIC CO 204, % 1.0% GOLDMAN SACHS GROUP INC 324, % 1.6% HERSHEY COMPANY 84, % 0.4% HOME DEPOT INC 98, % 0.5% IBM CORP 194, % 1.0% MORGAN STANLEY 337, % 1.7% NATIONAL RURAL UTILITIES CO FINANCE CORP 183, % 0.9% PACCAR FINANCIAL CORP 157, % 0.8% STATE STREET CORPORATION 193, % 1.0% TEXAS INSTRUMENTS INC 119, % 0.6% THE BANK OF NEW YORK MELLON CORPORATION 190, % 0.9% THE WALT DISNEY CORPORATION 196, % 1.0% TOYOTA MOTOR CORP 392, % 2.0% UNILEVER PLC 281, % 1.4% UNITED PARCEL SERVICE INC 155, % 0.8% VISA INC 191, % 1.0% WAL-MART STORES INC 293, % 1.5% WELLS FARGO & COMPANY 337, % 1.7% 5,567, % 27.7% FANNIE MAE 133, % 0.7% FREDDIE MAC 154, % 0.8% Sector Total Federal Agency/CMO 32 20

33 Sector / Issuer Portfolio Composition Market Value ($) % of Sector % of Total Portfolio 287, % 1.4% FANNIE MAE 508, % 2.5% Sector Total 508, % 2.5% CAMP POOL 130, % 0.7% Sector Total 130, % 0.7% CALIFORNIA ST 174, % 0.9% Sector Total 174, % 0.9% 555, % 2.8% 84, % 0.4% 717, % 3.6% 1,357, % 6.8% 3,579, % 17.8% Sector Total Federal Agency/GSE Mny Mkt Fund / Pool Municipal Supra-Sov / Supra-Natl Agency INTER-AMERICAN DEVELOPMENT BANK INTERNATIONAL FINANCE CORPORATION INTL BANK OF RECONSTRUCTION AND DEV Sector Total U.S. Treasury UNITED STATES TREASURY 33 21

34 Sector / Issuer Sector Total Portfolio Total Portfolio Composition Market Value ($) 3,579,430 20,102,856 % of Sector 100.0% 100.0% % of Total Portfolio 17.8% 100.0% 34 22

35 For the Quarter Ended June 30, 2018 Portfolio Review Outlook and Strategy While the Fed's policy actions will depend on future economic data, we believe the current strength of the U.S. Economy, coupled with a strong labor market and rising inflation, will cause the Fed to continue raising rates at a pace of about one ¼ percent hike per quarter well into Therefore, we plan to maintain a defensive duration posture to mitigate a portion of interest rate risk relative to benchmarks. Over the past several quarters, we have maintained constructive strategic views on spread products (non-government investments); however, we are cognizant of potential headwinds that could surface towards year-end. While diversification away from U.S. Treasury securities has added significant value over the last several quarters, very narrow spreads across most investmentgrade sectors give us reason to turn a bit more cautious. Federal agency securities remain expensive, as most maturities offer less than five basis points of incremental yield relative to U.S. Treasuries. We will continue to reduce agency exposure where spreads are tight, seeking better relative value in other sectors. As an alternative, we may selectively add callable agency issues because we view them as providing better value in today s market in addition to favorable diversification and income benefits. In conjunction with tights spreads, we plan to be more selective and defensive with corporate positioning. Our preference continues to favor financials and select industrial issuers with stronger balance sheets and fair valuations, which we think can better withstand the current phase of the credit cycle. Broad diversification across all investment-grade sectors remains a key component of our portfolio strategy; we will also continue to maintain a high credit quality for the District s portfolio

36 Transactions & Account Holdings 36

37 Portfolio Activity Quarterly Portfolio Transactions Trade Settle Par ($) CUSIP Security Description Coupon Maturity Transact Amt ($) Yield at Market Realized G/L (BV) BUY 7/2/18 7/3/18 350, HKW3 TOYOTA MOTOR CREDIT CORP COMM PAPER 0.00% 10/30/18 347, % 7/5/18 7/6/18 400, KM53 NATIXIS NY BRANCH COMM PAPER 0.00% 12/5/18 395, % 7/10/18 7/11/18 250, X5Z3 TORONTO DOMINION BANK NY CERT DEPOS 2.70% 7/10/19 250, % 7/11/18 7/12/18 300, UEZ4 ROYAL BANK OF CANADA NY CERT DEPOS 2.71% 7/11/19 300, % 7/11/18 7/18/18 95, JAD6 GMCAR A3 3.02% 5/16/23 94, % 7/18/18 7/25/18 290, GH0 INTL BANK OF RECONSTRUCTION AND DEV NOTE 2.75% 7/23/21 289, % 8/1/18 8/3/18 300, REU9 BANK OF MONTREAL CHICAGO CERT DEPOS 3.19% 8/3/20 300, % 8/1/18 8/3/18 205, BM0 AMERICAN EXPRESS CREDIT (CALLABLE) NOTES 2.50% 8/1/22 197, % 8/1/18 8/3/18 500, CRS9 BNP PARIBAS NY BRANCH COMM PAPER 0.00% 4/26/19 490, % 8/1/18 8/3/18 280, N30 US TREASURY NOTES 2.12% 12/31/22 271, % 9/4/18 9/6/18 250, WS5 US TREASURY NOTES 1.62% 6/30/19 249, % 9/4/18 9/6/18 250, N30 US TREASURY NOTES 2.12% 12/31/22 244, % 9/18/18 9/21/18 85, LAD2 FORDL 2018-B A3 3.19% 12/15/21 84, % 9/18/18 9/26/18 65, GAD1 GMALT A3 3.18% 6/20/21 64, % 3,620,000 Total BUY 3,580, INTEREST 7/1/18 7/25/18 155, BM6P6 FHLMC MULTIFAMILY STRUCTURED P POOL 3.09% 8/25/ /1/18 7/25/18 140, B1XP4 FNA 2018-M5 A2 3.56% 9/25/ /8/18 7/8/18 55, ETZ2 JOHN DEERE CAPITAL CORP NOTES 2.35% 1/8/ , GAD7 HYUNDAI ABS 2017-B A3 1.77% 1/15/ , CAC6 JDOT 2018-A A3 2.66% 4/15/ , HAD1 FORD ABS 2017-B A3 1.69% 11/15/ , UAC3 HAROT A3 2.64% 2/15/

38 Trade Settle Par ($) CUSIP 106, WAB2 60, BAD6 Portfolio Activity Security Description Coupon Maturity Transact Amt ($) CNH 2017-A A2 1.64% 7/15/ JOHN DEERE ABS 2017-B A3 1.82% 10/15/ , HAC5 ALLY ABS A3 1.78% 8/15/ , PAD8 HYUNDAI ABS 2017-A A3 1.76% 8/15/ , NBD2 COMCAST CORPORATION CORP NOTES 3.12% 7/15/22 3, , BAC8 HONDA ABS A3 1.68% 8/15/ , MAD0 TOYOTA ABS 2017-A A3 1.73% 2/15/ , RAD0 TOYOTA ABS 2017-C A3 1.78% 11/15/ , FAC9 ALLY ABS A3 1.75% 12/15/ , JHG8 AMERICAN EXPRESS ABS A 1.64% 12/15/ , DAD9 NAROT 2018-A A3 2.65% 5/15/ /20/18 7/20/18 85, WBT7 AMERICAN HONDA FINANCE CORP NOTES 1.95% 7/20/ /20/18 7/20/18 200, HAB9 IBM CREDIT CORP NOTE 1.80% 1/20/21 1, /22/18 7/22/18 340, BFR6 WELLS FARGO & CO CORP NOTE 3.00% 1/22/21 5, /24/18 7/24/18 85, GEM7 BANK OF AMERICA CORP CORP NOTES 5.70% 1/24/22 2, /31/18 7/31/18 400, P4 US TREASURY NOTES 1.87% 7/31/22 3, /31/18 7/31/18 380, H86 US TREASURY NOTES 1.50% 1/31/22 2, /31/18 7/31/18 465, H86 US TREASURY NOTES 1.50% 1/31/22 3, /31/18 7/31/18 220, S76 US TREASURY NOTES 1.12% 7/31/21 1, /1/18 8/25/18 140, B1XP4 FNA 2018-M5 A2 3.56% 9/25/ /1/18 8/25/18 155, BM6P6 FHLMC MULTIFAMILY STRUCTURED P POOL 3.09% 8/25/ /2/18 8/2/18 390, FXT3 SKANDINAV ENSKILDA BANKEN NY CD 1.84% 8/2/19 3, /7/18 8/7/18 195, RAA5 BANK OF NY MELLON CORP (CALLABLE) NOTES 2.60% 2/7/22 2, /7/18 8/7/18 365, T4A3 WESTPAC BANKING CORP NY CD 2.05% 8/3/20 3, /12/18 8/12/18 200, WCD1 AMERICAN HONDA FINANCE 2.65% 2/12/21 2, , JHG8 AMERICAN EXPRESS ABS A 1.64% 12/15/ , HAD1 FORD ABS 2017-B A3 1.69% 11/15/ , UAC3 HAROT A3 2.64% 2/15/ , GAD7 HYUNDAI ABS 2017-B A3 1.77% 1/15/ , DAD9 NAROT 2018-A A3 2.65% 5/15/ Yield at Market Realized G/L (BV) 38 25

39 Trade Settle Par ($) CUSIP Portfolio Activity Security Description Coupon Maturity Transact Amt ($) 240, HAC5 ALLY ABS A3 1.78% 8/15/ , WAB2 CNH 2017-A A2 1.64% 7/15/ , CAC6 JDOT 2018-A A3 2.66% 4/15/ , MAD0 TOYOTA ABS 2017-A A3 1.73% 2/15/ , FAC9 ALLY ABS A3 1.75% 12/15/ , PAD8 HYUNDAI ABS 2017-A A3 1.76% 8/15/ , BAD6 JOHN DEERE ABS 2017-B A3 1.82% 10/15/ HONDA ABS A3 1.68% 8/15/ TOYOTA ABS 2017-C A3 1.78% 11/15/ GMCAR A3 3.02% 5/16/ , BAC8 120, RAD0 8/16/18 8/16/18 95, JAD6 8/18/18 8/18/18 195, AS2 STATE STREET CORP NOTES 2.55% 8/18/20 2, /20/18 8/20/18 200, ASN7 NORDEA BANK AB NY CD 2.72% 2/20/20 2, /1/18 9/1/18 105, RN93 PACCAR FINANCIAL CORP NOTES 2.80% 3/1/21 1, /1/18 9/25/18 155, BM6P6 FHLMC MULTIFAMILY STRUCTURED P POOL 3.09% 8/25/ /1/18 9/25/18 136, B1XP4 FNA 2018-M5 A2 3.56% 9/25/ /4/18 9/4/18 350, DHG8 UBS AG STAMFORD CT LT CD 2.90% 3/2/20 5, /4/18 9/4/18 150, Q2A6 CATERPILLAR FINL SERVICE NOTE 1.85% 9/4/20 1, /4/18 9/4/18 100, GA5 INTL BANK OF RECON AND DEV GLOBAL NOTES 1.62% 9/4/ /8/18 9/8/18 200, TEC5 TOYOTA MOTOR CREDIT CORP 2.15% 9/8/22 2, /9/18 9/9/18 85, VLQ7 INTERNATIONAL FINANCE CORPORATION NOTE 2.63% 3/9/21 1, /12/18 9/12/18 120, AY0 TEXAS INSTRUMENTS INC (CALLABLE) NOTE 2.75% 3/12/21 1, /12/18 9/12/18 300, UP32 INTL BANK OF RECONSTRUCTION AND DEV NOTE 1.56% 9/12/20 2, /12/18 9/12/18 100, EUD9 JOHN DEERE CAPITAL CORP NOTES 2.87% 3/12/21 1, /14/18 9/14/18 200, X0CZ9 INTER-AMERICAN DEVEL BANK 1.75% 9/14/22 1, , JHG8 AMERICAN EXPRESS ABS A 1.64% 12/15/ , HAD1 FORD ABS 2017-B A3 1.69% 11/15/ , CAC6 JDOT 2018-A A3 2.66% 4/15/ , PAD8 HYUNDAI ABS 2017-A A3 1.76% 8/15/ , GAD7 HYUNDAI ABS 2017-B A3 1.77% 1/15/ , HER9 NATIONAL RURAL UTIL COOP 2.90% 3/15/21 1, Yield at Market Realized G/L (BV) 39 26

40 Trade Settle Par ($) CUSIP Portfolio Activity Security Description Coupon Maturity Transact Amt ($) 200, CAG7 VISA INC (CALLABLE) NOTE 2.15% 9/15/22 2, , DAD9 NAROT 2018-A A3 2.65% 5/15/ , FAC9 ALLY ABS A3 1.75% 12/15/ , RAD0 TOYOTA ABS 2017-C A3 1.78% 11/15/ , BAD6 JOHN DEERE ABS 2017-B A3 1.82% 10/15/ , WAB2 CNH 2017-A A2 1.64% 7/15/ , BAC8 HONDA ABS A3 1.68% 8/15/ , UAC3 HAROT A3 2.64% 2/15/ , HER9 NATIONAL RURAL UTIL COOP 2.90% 3/15/21 1, , MAD0 TOYOTA ABS 2017-A A3 1.73% 2/15/ , EA58 GOLDMAN SACHS GROUP INC CORP NOTES 5.37% 3/15/20 8, , HAC5 ALLY ABS A3 1.78% 8/15/ /16/18 9/16/18 95, JAD6 GMCAR A3 3.02% 5/16/ /16/18 9/16/18 200, G4R2 GENERAL ELECTRIC CAPITAL CORP CORP NOTE 4.37% 9/16/20 4, /20/18 9/20/18 200, EGH2 CCCIT 2017-A9 A9 1.80% 9/20/21 1, /22/18 9/22/18 185, AZ0 UNILEVER CAPITAL CORP NOTES 2.75% 3/22/21 2, /25/18 9/25/18 200, RGM3 MUFG BANK LTD/NY CERT DEPOS 2.07% 9/25/19 4, /30/18 500, W9 US TREASURY NOTES 1.87% 9/30/22 4, /30/18 Total INTEREST 14,889,878 Yield at Market Realized G/L (BV) 105, PAYDOWNS 6, WAB2 CNH 2017-A A2 1.64% 7/15/20 6, /1/18 8/25/18 4, B1XP4 FNA 2018-M5 A2 3.56% 9/25/21 4, , WAB2 CNH 2017-A A2 1.64% 7/15/20 7, /1/18 9/25/18 3, B1XP4 FNA 2018-M5 A2 3.56% 9/25/21 3, , WAB2 CNH 2017-A A2 1.64% 7/15/20 11,

41 Trade Settle Total PAYDOWNS Par ($) CUSIP Portfolio Activity Security Description Coupon Maturity 33,821 Transact Amt ($) Yield at Market Realized G/L (BV) 33, SELL 7/2/18 7/3/18 350, HGQ1 TOYOTA MOTOR CREDIT CORP COMM PAPER 0.00% 7/24/18 349, % (63.29) 7/5/18 7/6/18 400, LND3 CREDIT SUISSE NEW YORK CERT DEPOS 2.32% 8/6/18 401, % /10/18 7/11/18 400, TP69 NATIONAL AUSTRALIA BK-NY CERT DEPOS 2.19% 8/9/18 401, % /11/18 7/18/18 100, EA7 WAL-MART STORES INC CORP NOTE 1.90% 12/15/20 98, % (1,743.86) 7/18/18 7/25/18 250, D72 US TREASURY NOTES 2.00% 8/31/21 246, % (7,651.09) 8/1/18 8/3/18 115, WD8 US TREASURY NOTES 1.25% 10/31/18 115, % (250.42) 8/1/18 8/3/18 500, CKK3 BNP PARIBAS NY BRANCH COMM PAPER 0.00% 10/19/18 497, % (213.89) 8/1/18 8/3/18 345, M0DP1 AMERCIAN EXPRESS CREDIT CORP NOTES 2.25% 8/15/19 346, % (3,354.82) 8/2/18 8/3/18 350, HKW3 TOYOTA MOTOR CREDIT CORP COMM PAPER 0.00% 10/30/18 348, % /5/18 9/6/18 500, UK51 CREDIT AGRICOLE CIB NY COMM PAPER 0.00% 10/5/18 499, % /20/18 9/21/18 100, GA5 INTL BANK OF RECON AND DEV GLOBAL NOTES 1.62% 9/4/20 97, % (2,416.22) Total SELL 3,410,000 3,402, ,

42 Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description d /Coupon/Maturity CUSIP Par S&P Rating Moody's Rating Trade Settle Original Cost YTM at Cost Accrued Interest Amortized Cost Market Value U.S. Treasury Bond / Note US TREASURY N/B DTD 12/31/ % 12/31/ U99 180, AA+ 2/27/2017 2/28/ , , , US TREASURY NOTES DTD 06/30/ % 06/30/ WS5 250, AA+ 9/4/2018 9/6/ , , , , US TREASURY NOTES DTD 08/01/ % 07/31/ S76 220, AA+ 2/27/2017 2/28/ , , , US TREASURY NOTES DTD 10/31/ % 10/31/ T67 555, AA+ 8/30/2017 8/31/ , , , , US TREASURY NOTES DTD 01/03/ % 12/31/ U81 235, AA+ 6/26/2017 6/28/ , , , , US TREASURY NOTES DTD 02/02/ % 01/31/ H86 465, AA+ 2/27/2017 2/28/ , , , , US TREASURY NOTES DTD 02/02/ % 01/31/ H86 380, AA+ 7/5/2017 7/7/ , , , US TREASURY NOTES DTD 07/31/ % 07/31/ P4 400, AA+ 1/2/2018 1/4/ , , , , US TREASURY NOTES DTD 10/02/ % 09/30/ W9 500, AA+ 4/2/2018 4/4/ , , , US TREASURY NOTES DTD 12/31/ % 12/31/ N30 280, AA+ 8/1/2018 8/3/ , , , , US TREASURY NOTES DTD 12/31/ % 12/31/ N30 250, AA+ 9/4/2018 9/6/ , , , , , ,662, ,579, , , ,715, Security Type Sub-Total 3,652, Supra-National Agency Bond / Note INTL BANK OF RECON AND DEV GLOBAL NOTES DTD 10/27/ % 11/27/ FS7 140, AAA 8/18/2017 8/23/ ,

43 Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description d /Coupon/Maturity CUSIP Par S&P Rating Moody's Rating Trade Settle Original Cost YTM at Cost Accrued Interest Amortized Cost Market Value Supra-National Agency Bond / Note INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/ % 09/12/ UP32 300, AAA 9/12/2017 9/19/ , , , INTER-AMERICAN DEVELOPMENT BANK DTD 11/08/ % 11/09/ X0CD8 200, AAA 10/2/ /10/ , , , , INTERNATIONAL FINANCE CORPORATION NOTE DTD 03/16/ % 03/09/ VLQ7 85, AAA 3/9/2018 3/16/ , , , INTER-AMERICAN DEVELOPMENT BANK NOTE DTD 04/19/ % 04/19/ X0DB1 170, AAA 4/12/2018 4/19/ , , , , INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 07/25/ % 07/23/ GH0 290, AAA 7/18/2018 7/25/ , , , , INTER-AMERICAN DEVEL BANK DTD 09/14/ % 09/14/ X0CZ9 200, AAA 2/21/2018 2/23/ , , , , ,376, ,357, , , , , , , ,385, Security Type Sub-Total 1,375, Municipal Bond / Note CA ST TXBL GO BONDS DTD 04/25/ % 04/01/ DGA0 175, AA- Aa3 4/18/2018 4/25/ , Security Type Sub-Total 175, , Federal Agency Collateralized Mortgage Obligation FNA 2018-M5 A2 DTD 04/01/ % 09/25/ B1XP4 132, AA+ 4/11/2018 4/30/ , , , FHLMC MULTIFAMILY STRUCTURED P POOL DTD 12/01/ % 08/25/ BM6P6 155, AA+ 4/4/2018 4/9/ , , ,

44 Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description d /Coupon/Maturity CUSIP Par S&P Rating Moody's Rating Trade Settle 287, Security Type Sub-Total Original Cost 291, YTM at Cost Accrued Interest Amortized Cost Market Value , , Federal Agency Bond / Note FANNIE MAE NOTES DTD 04/13/ % 04/13/ G0U27 130, AA+ 4/12/2018 4/13/ , , , , FANNIE MAE NOTES DTD 06/25/ % 06/22/ G0U35 285, AA+ 6/22/2018 6/25/ , , , , FANNIE MAE NOTES DTD 04/10/ % 04/05/ G0T45 100, AA+ 4/6/2017 4/10/ , , , , , , , Security Type Sub-Total 514, Corporate Note GOLDMAN SACHS GROUP INC CORP NOTES DTD 03/08/ % 03/15/ EA58 315, BBB+ A3 2/27/2017 3/2/ , , , TOYOTA MOTOR CREDIT CORP DTD 04/17/ % 04/17/ TDU6 205, AA- Aa3 4/11/2017 4/17/ , , , , UNILEVER CAPITAL CORP BONDS DTD 05/05/ % 05/05/ AV9 100, A+ A1 5/2/2017 5/5/ , , , GENERAL DYNAMICS CORP DTD 05/11/ % 05/11/ BA5 115, A+ A2 5/8/2018 5/11/ , , , , HOME DEPOT INC CORP NOTES DTD 06/05/ % 06/05/ BQ4 100, A A2 5/24/2017 6/5/ , , , WALT DISNEY COMPANY CORP NOTES DTD 06/06/ % 06/05/ PDU7 200, A+ A2 6/1/2017 6/6/ , , , , JOHN DEERE CAPITAL CORP NOTES DTD 06/22/ % 06/22/ ETS8 45, A A2 6/19/2017 6/22/ , , , AMERICAN HONDA FINANCE CORP NOTES DTD 07/20/ % 07/20/ WBT7 85, A+ A2 7/17/2017 7/20/ , , ,

45 Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description d /Coupon/Maturity CUSIP Par S&P Rating Moody's Rating Trade Settle Original Cost YTM at Cost Accrued Interest Amortized Cost Market Value Corporate Note STATE STREET CORP NOTES DTD 08/18/ % 08/18/ AS2 195, A A1 6/8/2017 6/13/ , , , CATERPILLAR FINL SERVICE NOTE DTD 09/07/ % 09/04/ Q2A6 150, A A3 9/5/2017 9/7/ , , , GENERAL ELECTRIC CAPITAL CORP CORP NOTE DTD 09/16/ % 09/16/ G4R2 200, A A2 8/31/2017 9/6/ , , , PACCAR FINANCIAL CORP NOTES DTD 11/13/ % 11/13/ RN85 55, A+ A1 11/6/ /13/ , , , WAL-MART STORES INC CORP NOTE DTD 10/20/ % 12/15/ EA7 300, AA Aa2 10/11/ /20/ , , , , JOHN DEERE CAPITAL CORP NOTES DTD 01/08/ % 01/08/ ETZ2 55, A A2 1/3/2018 1/8/ , , , IBM CREDIT CORP NOTE DTD 09/08/ % 01/20/ HAB9 200, A+ A1 9/5/2017 9/8/ , , , WELLS FARGO & CO CORP NOTE DTD 01/24/ % 01/22/ BFR6 340, A- A2 2/27/2017 3/2/ , , , , AMERICAN HONDA FINANCE DTD 02/15/ % 02/12/ WCD1 200, A+ A2 2/12/2018 2/15/ , , , PACCAR FINANCIAL CORP NOTES DTD 02/27/ % 03/01/ RN93 105, A+ A1 2/22/2018 2/27/ , , , JOHN DEERE CAPITAL CORP NOTES DTD 03/13/ % 03/12/ EUD9 100, A A2 3/8/2018 3/13/ , , , TEXAS INSTRUMENTS INC (CALLABLE) NOTE DTD 03/12/ % 03/12/ AY0 120, A+ A1 4/27/2017 5/4/ , , , NATIONAL RURAL UTIL COOP DTD 02/26/ % 03/15/ HER9 85, A A2 2/21/2018 2/26/ , , , NATIONAL RURAL UTIL COOP DTD 02/26/ % 03/15/ HER9 100, A A2 4/12/2018 4/19/ , , ,

46 Portfolio Holdings Managed Account Detail of Securities Held Security Type/Description d /Coupon/Maturity CUSIP Par S&P Rating Moody's Rating Trade Settle Original Cost YTM at Cost Accrued Interest Amortized Cost Market Value Corporate Note UNILEVER CAPITAL CORP NOTES DTD 03/22/ % 03/22/ AZ0 185, A+ A1 3/19/2018 3/22/ , , , UNITED PARCEL SERVICE CORPORATE BOND DTD 11/14/ % 04/01/ BP0 160, A+ A1 11/9/ /14/ , , , , MORGAN STANLEY CORP NOTES DTD 04/21/ % 04/21/ BEA0 345, BBB+ A3 2/27/2017 3/2/ , , , , HERSHEY COMPANY CORP NOTES DTD 05/10/ % 05/15/ BA5 85, A A1 5/3/2018 5/10/ , , , , BANK OF AMERICA CORP (CALLABLE) DTD 09/18/ % 10/01/ GGS2 75, A- A3 9/13/2017 9/18/ , , , CITIGROUP INC CORP (CALLABLE) NOTE DTD 12/08/ % 12/08/ LC3 10/27/ /31/ , , , , BANK OF AMERICA CORP CORP NOTES DTD 01/24/ % 01/24/ GEM7 85, A- A3 6/19/2017 6/22/ , , , BANK OF NY MELLON CORP (CALLABLE) NOTES DTD 02/07/ % 02/07/ RAA5 195, A A1 6/7/2017 6/9/ , , , COMCAST CORPORATION CORP NOTES DTD 07/02/ % 07/15/ NBD2 200, A- A3 8/29/2017 9/1/ , , , , AMERICAN EXPRESS CREDIT (CALLABLE) NOTES DTD 08/01/ % 08/01/ BM0 205, BBB+ A3 8/1/2018 8/3/ , , , TOYOTA MOTOR CREDIT CORP DTD 09/08/ % 09/08/ TEC5 200, AA- Aa3 9/8/2017 9/12/ , , , VISA INC (CALLABLE) NOTE DTD 09/11/ % 09/15/ CAG7 200, A+ A1 9/26/2017 9/28/ , , , , BBB+ Baa