Quarterly Investment Report Ending May 31, 2017

Transcription

1 Quarterly Investment Report Ending May 3, 207

2 A Foggy Picture The stock markets saw rather significant volatility this month driven by the ubiquitous geo-political and domestic political wrangling but also pure economics, which have painted a complex picture which makes clear trends difficult to read. The stock markets remain nervous about political issues especially as it impacts tax reform. The weaker oil prices are also troubling. With all the movement however, the Dow ended up 04 on the month. US Initial Jobless Claims (Bloomberg) The bond markets are enjoying a bounce in prices in the long end on the stock nervousness as investors move to the security of bonds. The long end moves were likely as affected by administration firings and the weaker oil prices. The markets are not single cylinder engines and there are major forces at play the same ones we have seen for months. Growth is still slow but also still steady. Two major reports this month present a picture of this slow growth. The Fed s favorite PCE(Personal Consumption Expenditure) index was weakly positive and the personal income and spending components came in positive. Although CPI has been admittedly soft for months, the inflation has grown slightly overall. Inflation fears come from low oil prices and an overstock on autos as well as an apartment oversupply. The international events are always worth a look-see. Brexit is being clouded by UK elections and Ms. May s uncertain moves. The Italians are most probably going for an early election (this is a surprise?). Merkel I Germany still holds a comfortable lead for re-election and still supports the NATO 2% spending target which is good for the US. Draghi, at the ECB, insists that Europe still requires major monetary support which will keep their rates low and US attractive. Despite Draghi sread, the growth in Europe exceeds the US so a major player is back in the picture. This slight increase in inflation fogs the Fed rate picture because of the Fed s two critical issues are inflation and jobs. Employment is strong while inflation is barely in the desired Fed range of 2%. Unemployment claims are falling decidedly and May s NFPis expected to be high. Homebuilders complain about a shortage of labor (and lots) as well as regulatory restrictions. Purchasing managers (ISM) see a slight improvement based on new orders and increased inventories but also report lower prices. The Fed s Beige Book shows large shortages of trained labor across the US. We need to see this employment move affecting the consumer. She is less optimistic and confidence is getting a job is waning. The consumer has been buying better than the Qbut the increase is small.

3 A Lot Rides On the Fed The markets are about a 90% agreement on a Federal Funds Rate increase June 4 th. That is based on a improving economy, but also perhaps on a growing tuning out of the daily acrimony in the press. Employment is very strong and inflation, though soft, is within spitting distance of the Fed s target. The Fed could conceivably hold steady based on inflation, but the minutes from the last meeting indicated a willingness to continue the hikes. The minutes showed the officials would soon be appropriate.the members of the Committee are also telegraphing a major change, which may be more important than individual hikes. As part of the easing cycle, when the Fed took the overnight rates to 0%, they also lost their main weapon for accommodating growth. The mechanism they introduced was QE (quantitative easing). The Fed bought trillions of dollars worth of long treasuries and mortgage backed securities thereby creating a market and keeping rates low (prices high). Now that the tightening cycle has begun, the Fed has begun to contemplate reducing their accumulated $4.5 trillionbalance sheet. The minutes of the last meeting showed their goal of reducing the monthly reinvestment of coupon and maturities. Not only will this lower prices, but raise rates on the long end. Fed President Williams has recently noted this unwindingwould be widely telegraphed, gradual and frankly boring [to] lessen the risk of market disruption and volatility. No such luck. Even anticipating such a move will move bond markets. The curve (see next page) is dangerously close to flat-lining which could aide in spiraling to disinflation. The curve needs to maintain a steepness. (And, of course the Fed simply needs to reduce their balance sheet.) The Fed s lightening of their balance sheet will be one key to slowing that move. If they do not re-invest income and simply stop buying long-term notes prices will drop. This is huge money leaving that long-term market. Long-term bond investors will not want to be caught as rates rise quickly. In 9/6 the 2-30 spread was 2.23% now it is.59%, this is a significant flattening of the curve which may make that unwinding a little less boring!

4 Rates on the Move Rates have been volatile with an abundance of geopolitical news and events. Rates are making a dangerous move to a flat curve with short rates moving up and longer rates moving down. The Fed talk about reducing their reinvestment shouldcounter part of this move, but it needs to do so quickly. Fed Governors continue to appear to be moving to a hike in rates in June taking the overnight rate to.0%. 3.50% 3.00% 2.50%. P e r c e n t 2.00%.50%.00% 0.50% May-7 Apr-7 Mar-7 Dec-6 Oct-6 % Fed Funds 3mo 6mo yr 2yr 5yr 0yr 30yr End of Month Rates - Full Yield Curve Fed Funds to 30yr

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6 Your Portfolio As of May 3, 207 P&A constantly reviews your portfolio for optimal asset allocation and a controlled average maturity because a diversified portfolio can better adjust to volatile market conditions. The very short-term rates continue to move up with the Fed s move and short term alternatives are available especially for those with access to commercial paper. Rates beyond one year will easily bet the pools. Banks remain uninterestedin new deposits and municipal debt has become less attractive with decreased supply. Agencies % CP % Munis % Discos % T-Notes.7407% JPM % Texpool % TexStar % It is time to reduce cash balances and stretch out longer and into the two year area if possible. The non-cash portion of your portfolio is yielding.07%.

7 Portfolio Management Portfolio Summary May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Investments Par Value Market Value Book Value % of Portfolio Term Days to YTM 365 Equiv. Commercial Paper Disc. -Amortizing 0,000,00 9,964, ,964, Federal Agency Coupon Securities 02,549,00 02,384, ,554, Federal Agency Disc. -Amortizing 0,000,00 9,920,94 9,932, Treasury Coupon Securities 5,000,00 4,992,97 5,00, Municipal Bonds 24,495,00 24,59, ,549, TexStar 37,66, ,66, ,66, Texpool 97,668, ,668, ,668, JPMorgan Chase 67, , , Investments 287,396, ,34, ,354, % Cash and Accrued Interest Accrued Interest at Purchase Subtotal Total Cash and Investments 287,396, , , ,86, , , ,406, Total Earnings Current Year May 3 Month Ending 226, Fiscal Year To,503, , Reporting period 05/0/207-05/3/207 Data Updated: SET_CCCC: 06/02/207 6:09 Run : 06/02/207-6:0 PM (PRF_PM) 7.3.0

8 Summary by Type May 3, 207 Grouped by Fund Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Security Type Number of Investments Par Value % of Portfolio Average YTM 365 Average Days to Fund: Building Federal Agency Coupon Securities 5 35,000,00 35,000, Municipal Bonds 2 7,05,00 7,027, Treasury Coupon Securities 5,000,00 5,00, Texpool 4,56,83.8 4,56, TexStar 26,859, ,859, Fund: Debt Service Subtotal 0 88,030, ,044, Texpool 3,540, ,540, Fund: Operating Subtotal 3,540, ,540, Commercial Paper Disc. -Amortizing 0,000,00 9,964, Federal Agency Coupon Securities 67,549,00 67,554, Federal Agency Disc. -Amortizing 0,000,00 9,932, JPMorgan Chase 67, , Municipal Bonds 3 7,480,00 7,522, Texpool 89,97, ,97, TexStar 0,757, ,757, Subtotal 9 95,824, ,769, Total and Average ,396, ,354, Run : 06/02/207-6:28 ST (PRF_ST) 7.2.0

9 Fund BLDG - Building Investments by Fund May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX CUSIP Investment # Issuer Federal Agency Coupon Securities Purchase Par Value Market Value 332X0JC FRMAC Note 08/5/206 0,000,00 0,000,00 9,993, /5/ X0RN3 004 FRMAC Note 04/03/207 0,000,00 0,000,00 9,994, /02/ X0SB FRMAC Call Note 04/9/207 7,500,00 7,500,00 7,493, /9/ A8YJ6 002 FHLB Call Note 08/23/206 5,000,00 5,000,00 4,978, /23/ GAJS FHLMC Step Note 09/28/206 2,500,00 2,500,00 2,495, /28/ Treasury Coupon Securities Current Rate YTM 360 YTM 365 Days To Subtotal and Average 35,000,00 35,000,00 34,954, TW T Note /04/206 5,00, ,000,00 4,992, /3/ Municipal Bonds Subtotal and Average 5,00, ,000,00 4,992, S City of Houston, TX 0/05/206 7,02, ,000,00 7,02, /30/ FH Texas Tech University 02/22/207 0,05,00 0,05,00 9,987, /5/ TexStar Subtotal and Average 7,027, ,05,00 7,000, TexStar 02/0/206 26,859, ,859, ,859, Texpool Subtotal and Average 26,859, ,859, ,859, Texpool 02/0/206 4,56,83.8 4,56,83.8 4,56, Subtotal and Average 4,56,83.8 4,56,83.8 4,56, Total Investments and Average 88,044, ,030, ,963, Run : 06/02/207-6:27 FI (PRF_FI) 7..

10 Fund DS - Debt Service Investments by Fund Page 2 May 3, 207 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate YTM 360 YTM 365 Days To Texpool Texpool 02/0/206 3,540, ,540, ,540, Subtotal and Average 3,540, ,540, ,540, Total Investments and Average 3,540, ,540, ,540, Run : 06/02/207-6:27 FI (PRF_FI) 7..

11 Fund OPER - Operating Investments by Fund Page 3 May 3, 207 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate YTM 360 YTM 365 Days To Commercial Paper Disc. -Amortizing 27873JW Ebury Finance CP 03/06/207 9,964, ,000,00 9,964, /0/ Subtotal and Average 9,964, ,000,00 9,964, Federal Agency Coupon Securities 332X0NC 003 FRMAC Note 0/8/207 5,000,00 5,000,00 4,997, /8/ X0RN FRMAC Note 04/03/207 0,000,00 0,000,00 9,994, /02/ X0SB FRMAC Call Note 04/9/207 7,500,00 7,500,00 7,493, /9/ EGE FFCB Note /08/206 4,999, ,000,00 4,995, /08/ A0FG0 004 FHLB Note 05/25/206 4,005, ,000,00 4,002, /20/ A8Y FHLB Call Note 08/08/206 5,000,00 5,000,00 4,980, /08/ G9GP6 003 FHLMC Call Note 05/25/206 0,000,00 0,000,00 9,996, /25/ G9NK9 005 FHLMC Call Note 06/29/206,549,00,549,00,500, /29/ GAJQ FHLMC Call Note 09/4/206 2,500,00 2,500,00 2,496, /4/ GAWQ FHLMC Call Note /28/206 5,000,00 5,000,00 4,972, /28/ GA6H FHLMC Call Note 02/28/207 2,000,00 2,000,00,999, /28/ Subtotal and Average 67,554, ,549,00 67,430, Federal Agency Disc. -Amortizing 335LTK Farmer Mac DN 02/24/207 9,932, ,000,00 9,920, /22/ Subtotal and Average 9,932, ,000,00 9,920, Municipal Bonds 8823ABQ Texas A&M University 05/0/207 5,042, ,000,00 5,039, /5/ FJ Texas Tech University 02/22/207,480,00,480,00,478, /5/ FK Texas Tech University 02/22/207,000,00,000,00,00, /5/ Subtotal and Average 7,522, ,480,00 7,59, TexStar TexStar 02/0/206 0,757, ,757, ,757, Subtotal and Average 0,757, ,757, ,757, Texpool Texpool 02/0/206 89,97, ,97, ,97, Run : 06/02/207-6:27 FI (PRF_FI) 7..

12 Fund OPER - Operating Investments by Fund Page 4 May 3, 207 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate YTM 360 YTM 365 Days To Subtotal and Average 89,97, ,97, ,97, JPMorgan Chase JPMorgan Chase Commercial Chkg 02/0/206 67, , ,580.3 Subtotal and Average 67, , , Total Investments and Average 95,769, ,824, ,630, Run : 06/02/207-6:27 FI (PRF_FI) 7..

13 Cash Reconciliation Report For the Period March, May 3, 207 Grouped by Fund Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Trans. Trans. Investment # Fund Type Security ID Par Value Security Description Purchases Interest Redemptions Cash Building 03/09/ BLDG 335LCV8 0,000,00 FRMDN 0.0M % Mat. 03/09/207 0,000,00 0,000,00 03/28/ BLDG Interest 334GAJS4 2,500,00 FHLMCS 2.5M 0.88% Mat. 09/28/208 5, , /03/ BLDG Purchase 332X0RN3 0,000,00 FAMCA 0.0M.3% Mat. 04/02/208-0,000,00-0,000,00 04/9/ BLDG Purchase 332X0SB8 7,500,00 FAMCAC 7.5M.25% Mat. 04/9/208-7,500,00-7,500,00 04/30/ BLDG Interest 92828TW0 5,000,00 TNOTE 5.0M 0.75% Mat. 0/3/207 0/3/207 8,75 8,75 05/0/ BLDG 62455AS6 0,000,00 MOUNT 0.0M % Mat. 05/0/207 0,000,00 0,000,00 Operating Subtotal -7,500,00 24, ,000,00 2,524, /02/ OPER 0347M2Q25 0,000,00 ANGLE 0.0M % Mat. 03/02/207 0,000,00 0,000,00 03/06/ OPER Purchase 27873JW9 0,000,00 EBURY 0.0M % Mat. 09/0/207-9,930, ,930, /08/ OPER Interest 333EGE50 5,000,00 FFCB 5.0M 0.65% Mat. 09/08/207 09/08/207 0, , /09/ OPER 335LCV8 0,000,00 FRMDN 0.0M 0.72% Mat. 03/09/207 0,000,00 0,000,00 03/4/ OPER Interest 334GAJQ8 2,500,00 FHLMCC 2.5M.5% Mat. 09/4/208 4, , /03/ OPER Purchase 332X0RN3 0,000,00 FAMCA 0.0M.3% Mat. 04/02/208-0,000,00-0,000,00 04/9/ OPER Purchase 332X0SB8 7,500,00 FAMCAC 7.5M.25% Mat. 04/9/208-7,500,00-7,500,00 04/27/ OPER Interest 334GAJ2 5,000,00 FHLMCC 5.0M.75% Mat. 0/27/2020 2, , /27/ OPER Call 334GAJ2 5,000,00 0.0M.75% 0/27/2020 5,000,00 5,000,00 05/0/ OPER Purchase 8823ABQ7 5,000,00 TXAMU 5.0M.94% Mat. 05/5/209 05/5/209-5,044,30-44, ,089, /5/ OPER Interest 8823ABQ7 5,000,00 TXAMU 5.0M.94% Mat. 05/5/209 05/5/209 48, , /20/ OPER Interest 330A0FG0 4,000,00 FHLB 4.0M.20% Mat. /20/207 /20/207 24,00 24,00 05/25/ OPER Interest 334G9GP6 0,000,00 FHLMCC 0.0M.07% Mat. 05/25/208 53,50 53,50 05/28/ OPER Interest 334GAWQ3 5,000,00 FHLMCC 5.0M.07% Mat. /28/208 26,75 26,75 Subtotal -32,474, ,.39 25,000,00-7,39,577.5 Total -49,974, , ,000,00-4,795, Run : 06/09/207-4:37 AC (PRF_AC) 7.2.0

14 Purchases Report Sorted by Fund - Fund March, May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX CUSIP Investment # Fund Sec. Type Issuer Building 332X0RN3 004 BLDG FAC FAMCA 332X0SB BLDG FAC FAMCAC Original Par Value Purchase Payment Periods Principal Purchased Accrued Interest Rate at at Purchase Purchase YTM Ending 0,000,00 04/03/207 0/02-04/02 0,000, /02/ ,000,00 7,500,00 04/9/207 0/9-04/9 7,500, /9/ ,500,00 Subtotal 7,500,00 7,500,00 7,500,00 Operating 27873JW9 332X0RN3 332X0SB8 8823ABQ OPER OPER OPER OPER ACP FAC FAC MC EBURY FAMCA FAMCAC TXAMU 0,000,00 03/06/207 09/0 - At 9,930, /0/ ,964, ,000,00 04/03/207 0/02-04/02 0,000, /02/ ,000,00 7,500,00 04/9/207 0/9-04/9 7,500, /9/ ,500,00 5,000,00 05/0/207 05/5 - /5 5,044,30 Received /5/ ,042, Subtotal 32,500,00 32,474, ,506,7.60 Total Purchases 50,000,00 49,974, ,006,7.60 Received = Accrued Interest at Purchase was received by report ending date. Run : 06/09/207-4:36 PU (PRF_PU) 7..

15 Report Sorted by Amounts due during March, May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Sec. CUSIP Investment # Fund Type Issuer 0347M2Q25 335LCV8 335LCV AS Par Value Purchase Rate at at Interest Proceeds OPER ACP ANGLE 0,000,00 03/02/207 0/06/207 0,000,00 0,000,00 BLDG AFD FRMDN 0,000,00 03/09/207 03/0/206 0,000,00 0,000,00 OPER AFD FRMDN 0,000,00 03/09/207 03/0/ ,000,00 0,000,00 BLDG ACP MOUNT 0,000,00 05/0/207 02/03/207 0,000,00 0,000,00 Total Maturities 40,000,00 40,000,00 40,000,00 Net Income Run : 06/09/207-4:36 MA (PRF_MA) 7..

16 Sales/Call Report Sorted by - Fund March, May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX CUSIP Investment # 0/27/2020 Fund Issuer Purchase Redem. Sec. Type Matur. Par Value Rate at Redem. at Redem. Redemption Principal Redemption Interest Total Amount Net Income 334GAJ OPER FHLMCC 0/27/207 04/27/207 5,000, ,000,00 5,000,00 2, ,02, , FAC 0/27/2020 Call Subtotal 5,000,00 5,000,00 5,000,00 2, ,02, , Total Sales 5,000,00 5,000,00 5,000,00 2, ,02, , Run : 06/09/207-4:37 SA (PRF_SA) 7..

17 Interest Earnings Sorted by Fund - Fund March, May 3, 207 Yield on Average Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Adjusted Interest Earnings CUSIP Investment # Fund Security Type Ending Par Value Beginning Average CurrentAnnualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Fund: Building 335LCV X0JC6 330A8YJ6 334GAJS S TW AS FH0 332X0RN3 332X0SB BLDG AFD 9,998,40 869, /09/ ,60, BLDG RRP 26,859, ,82, ,827, , , BLDG RR2 4,56, ,488, ,964, , , BLDG FAC 0,000,00 0,000,00 0,000,00 08/5/ ,00 7, BLDG FAC 5,000,00 5,000,00 5,000,00 08/23/ ,50 2, BLDG FAC 2,500,00 2,500,00 2,500,00 09/28/ , , BLDG MC 7,000,00 7,050, ,030, /30/ ,50-37, , BLDG TRC 5,000,00 5,002, ,002, /3/ , , BLDG ACP 9,98, ,624, /0/ , , BLDG MC 0,05,00 0,05,00 0,05,00 02/5/ , , BLDG FAC 0,000,00 6,43, /02/ , , BLDG FAC 7,500,00 3,505, /9/ , , Subtotal 88,030, ,847, ,752, , , , Fund: Debt Service DS RR2 3,540, ,453, ,490, , ,70.28 Subtotal 3,540, ,453, ,490, , ,70.28 Fund: Operating 335LCV G9GP6 330A0FG0 334G9NK9 330A8Y80 334GAJQ8 333EGE50 334GAWQ OPER AFD 9,998,40 869, /09/ ,60, OPER RRP 0,757, ,738, ,744, , , OPER RR2 89,97, ,362, ,67, , , OPER FAC 0,000,00 0,000,00 0,000,00 05/25/ ,75 26, OPER FAC 4,000,00 4,009, ,007,53.57 /20/ ,00-3,7.99 8, OPER FAC,549,00,549,00,549,00 06/29/ , , OPER FAC 5,000,00 5,000,00 5,000,00 08/08/ , , OPER FAC 2,500,00 2,500,00 2,500,00 09/4/ , , OPER FAC 5,000,00 4,999, ,999, /08/ , , OPER FAC 5,000,00 5,000,00 5,000,00 /28/ , , Run : 06/09/207-4:32 IE (PRF_IE) 7.2.0

18 Interest Earnings March, May 3, 207 Page 2 Adjusted Interest Earnings CUSIP Investment # Fund Security Type Ending Par Value Beginning Average CurrentAnnualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Fund: Operating 0347M2Q25 332X0NC 334GAJ FJ FK3 335LTK4 334GA6H JW9 332X0RN3 332X0SB8 8823ABQ OPER ACP 9,999, , /02/ OPER FAC 5,000,00 5,000,00 5,000,00 0/8/ ,50 6, OPER FAC 5,000,00 3,097, /27/ ,6. 3, OPER MC,480,00,480,00,480,00 02/5/ , , OPER MC,000,00,000,00,000,00 02/5/ , , OPER AFD 0,000,00 9,908, ,920, /22/ , , OPER FAC 2,000,00 2,000,00 2,000,00 02/28/ , , OPER ACP 0,000,00 9,406, /0/ , , OPER FAC 0,000,00 6,43, /02/ , , OPER FAC 7,500,00 3,505, /9/ , , OPER MC 5,000,00,699, /5/ , , ,285.2 Subtotal 95,757, ,545, ,99, , , ,44.83 Total 287,329, ,846, ,62, , , , Run : 06/09/207-4:32 IE (PRF_IE) 7.2.0

19 Amortization Schedule March, May 3, 207 Sorted By Fund - Fund Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Investment # Issuer Fund Amort. Beginning Par Value Current Rate Purchase Principal Original Premium or Discount Ending Amounts Amortized And Unamortized As of 03/0/207 Amount Amortized This Period Amt Amortized Through 05/3/207 Amount Unamortized Through 05/3/207 Building 0004 BLDG 03/09/207 0,000,00 9,927,20-72,80 7,20,60 72,80 Farmer Mac DN -, BLDG 06/30/207 7,000,00 7,,58,58 7,02, , , , ,20.64 City of Houston, TX , BLDG 05/0/207 0,000,00 9,972, , , , , Mountcliff Funding CP -8, BLDG 0/3/207 5,000,00 5,003, , ,00, , ,26.5, T Note , Operating Subtotal 32,05, , ,03, , , , , , OPER 03/02/207 0,000,00 9,985, ,36. 4, ,36. Anglesea Funding CP OPER 09/0/207 0,000,00 9,930, ,6.0 9,964, , , , Ebury Finance CP -69, OPER 09/08/207 5,000,00 4,999, ,999, FFCB Note OPER /20/207 4,000,00 4,08, , ,005, , ,7.99-2, ,956.3 FHLB Note.200 9, OPER 06/29/208,549,00,558, ,239.20,549,00-9, , FHLMC Call Note 09/29/ OPER 03/09/207 0,000,00 9,927,20-72,80 7,20,60 72,80 Farmer Mac DN , OPER 02/22/208 0,000,00 9,907, , ,932,02.98, , , , Farmer Mac DN -9, OPER 05/5/209 5,000,00 5,044,30 44,30 5,042, , , , Texas A&M University ,30 Subtotal 65,37, , ,493, , , , ,34.64 Total 97,386, , ,507, , , , , , , Run : 06/09/207-4:36 AS (PRF_ASW) 7.2.

20 Projected Cashflow Report Sorted by Monthly For the Period June, December 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Projected Trans. June 207 Transaction Investment # Fund Security ID Type Issuer Par Value Original Cost 06/4/ OPER 334GAJQ8 Call FHLMC Call Note 2,500,00 2,500,00 2,500,00 2,500,00 06/28/ BLDG 334GAJS4 Interest FHLMC Step Note 5, , /28/ BLDG 334GAJS4 Call FHLMC Step Note 2,500,00 2,500,00 2,500,00 2,500,00 06/29/ OPER 334G9NK9 Interest FHLMC Call Note 63, , /29/ OPER 334G9NK9 Call FHLMC Call Note,549,00,558,239.20,549,00,549,00 06/30/ BLDG 44233S47 City of Houston, TX 7,000,00 7,,58 7,000,00 205, ,205,96.67 July 207 Principal Interest Total for June ,549,00 23,669, ,549,00 274, ,823, /8/ OPER 332X0NC Interest FRMAC Note 33,00 33,00 August 207 Total for July ,00 33,00 08/08/ OPER 330A8Y80 Interest FHLB Call Note 2, , /08/ OPER 330A8Y80 Call FHLB Call Note 5,000,00 5,000,00 5,000,00 5,000,00 08/5/ BLDG 332X0JC6 FRMAC Note 0,000,00 0,000,00 0,000,00 34,00 0,034,00 08/5/ BLDG FH0 Interest Texas Tech University 5, , /5/ OPER FJ6 Interest Texas Tech University,09.29, /5/ OPER FK3 Interest Texas Tech University 9, , /23/ BLDG 330A8YJ6 Interest FHLB Call Note 25,00 25,00 08/23/ BLDG 330A8YJ6 Call FHLB Call Note 5,000,00 5,000,00 5,000,00 5,000,00 08/25/ OPER 334G9GP6 Call FHLMC Call Note 0,000,00 0,000,00 0,000,00 0,000,00 08/28/ OPER 334GAWQ3 Call FHLMC Call Note 5,000,00 5,000,00 5,000,00 5,000,00 08/28/ OPER 334GA6H2 Interest FHLMC Call Note 3,75 3,75 September 207 Total for August ,000,00 35,000,00 35,000,00 66, ,66, /0/ OPER 27873JW9 Ebury Finance CP 0,000,00 9,930, ,000,00 0,000,00 09/08/ OPER 333EGE50 FFCB Note 5,000,00 4,999,25 5,000,00 6,25 5,06,25 09/4/ OPER 334GAJQ8 Interest FHLMC Call Note 4, , /28/ BLDG 334GAJS4 Interest FHLMC Step Note 5, , Total for September 207 5,000,00 4,929, ,000,00 36, ,036, Total Run : 06/09/207-4:39 PC (PRF_PC) 7.2.0

21 Projected Cashflow Report For the Period June, December 3, 207 Page 2 Projected Trans. October 207 Transaction Investment # Fund Security ID Type Issuer Par Value Original Cost 0/02/ OPER 332X0RN3 Interest FRMAC Note 55, , /02/ BLDG 332X0RN3 Interest FRMAC Note 55, , /9/ BLDG 332X0SB8 Interest FRMAC Call Note 46, , /9/ BLDG 332X0SB8 Call FRMAC Call Note 7,500,00 7,500,00 7,500,00 7,500,00 0/9/ OPER 332X0SB8 Interest FRMAC Call Note 46, , /9/ OPER 332X0SB8 Call FRMAC Call Note 7,500,00 7,500,00 7,500,00 7,500,00 0/3/ BLDG 92828TW0 T Note 5,000,00 5,003, ,000,00 8,75 5,08,75 November 207 Principal Interest Total for October ,000,00 20,003, ,000,00 224, ,224, /5/ OPER 8823ABQ7 Interest Texas A&M University 48, , /20/ OPER 330A0FG0 FHLB Note 4,000,00 4,08, ,000,00 24,00 4,024,00 /25/ OPER 334G9GP6 Interest FHLMC Call Note 53,50 53,50 /28/ OPER 334GAWQ3 Interest FHLMC Call Note 26,75 26,75 December 207 Total for November 207 4,000,00 4,08, ,000,00 52, ,52, /28/ BLDG 334GAJS4 Interest FHLMC Step Note 7, , /29/ OPER 334G9NK9 Interest FHLMC Call Note 63, ,59.50 Total for December 207 7, , Total GRAND TOTALS: 97,549,00 97,622, ,549,00 959, ,508,02.22 Run : 06/09/207-4:39 PC (PRF_PC) 7.2.0

22 Texas Compliance Change in Val Report Sorted by Fund March, May 3, 207 Patterson & Associates 90 S. MoPac Suite 95 Austin, TX Inv # Issuer Fund Purch Interest Accrual Cusip Par Value YTM Mat Interest Received Fund: Building Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value 0007 TXSTAR BLDG 02/0/206 47, ,82, , , ,859, ,859, / / 47, ,82, , , ,859, TXPOOL BLDG 02/0/206 45, ,488, ,069, ,40, ,332, ,56, ,56, / / 45, ,488, ,069, ,40, ,332, ,56, FRMDN BLDG 03/0/206 9,998,40 0,000,00-9,998,40 335LCV8 0 03/09/207 9,999, 0,000,00-9,999, 0033 MOUNT BLDG 02/03/207 9,98, ,000,00-9,98, AS6 0 05/0/207 9,98, ,000,00-9,98, HOUSTX BLDG 0/05/206 52,50 7,050, , ,02, S47 7,000, /30/207 7,05,0-38,36 7,02, FAMCA BLDG 08/5/206 7,00 0,000,00 0,000,00 332X0JC6 0,000, /5/207 9,996,90-3,49 9,993, TNOTE BLDG /04/206 9, ,002, ,00, TW0 5,000, /3/207 8, ,998,83-5,86 4,992, TXTECH BLDG 02/22/207 26, ,05,00 0,05, FH0 0,05, /5/208 0,002, , ,987, FAMCA BLDG 04/03/207 8, ,000,00 0,000,00 0,000,00 332X0RN3 0,000, /02/208 0,000,00 9,994,2 9,994, FAMCAC BLDG 04/9/207 0, ,500,00 7,500,00 7,500,00 332X0SB8 7,500, /9/208 7,500,00 7,493, ,493, FHLBC BLDG 08/23/206 2,50 5,000,00 5,000,00 330A8YJ6 5,000, /23/208 4,98,6-3, ,978, Run : 06/09/207-4:39 TC (PRF_TC) 7.0

23 Texas Compliance Change in Val Report March, May 3, 207 Page 2 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value YTM Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value 0023 FHLMCS BLDG 09/28/206 5, ,500,00 2,500,00 334GAJS4 2,500, /28/208 5, ,492,8 2, ,495,05.00 Sub Totals For: Fund: Building 245, ,847, ,66, ,40, ,803, ,044, ,293. 2,804, ,66, ,40, ,840, ,963, Fund: Debt Service 000 TXPOOL DS 02/0/206 6, ,453, , , ,540, ,540, / / 6, ,453, , , ,540, Sub Totals For: Fund: Debt Service 6, ,453, , , ,540, , ,453, , , ,540, Fund: Operating 0008 TXSTAR OPER 02/0/206 8, ,738, , , ,757, ,757, / / 8, ,738, , , ,757, TXPOOL OPER 02/0/206 49, ,362, ,854, ,246, ,39, ,97, ,97, / / 49, ,362, ,854, ,246, ,39, ,97, JPMCC OPER 02/0/206 28, ,633, ,694, , , , / / 28, ,633, ,694, , , ANGLE OPER 0/06/207 9,999, ,000,00-9,999, M2Q /02/207 9,999, ,000,00-9,999, FRMDN OPER 03/0/206 9,998,40 0,000,00-9,998,40 335LCV8 0 03/09/207 9,999, 0,000,00-9,999, 0039 EBURY OPER 03/06/207 9,930, ,964, ,964, JW9 0,000, /0/207 9,930, ,964, ,964, FFCB OPER /08/206 8, ,999, ,999, EGE50 5,000, /08/207 0, ,999,8-3,72 4,995, FHLB OPER 05/25/206 2,00 4,009, ,7.99 4,005, A0FG0 4,000, /20/207 24,00 4,0, ,86 4,002, Run : 06/09/207-4:39 TC (PRF_TC) 7.0

24 Texas Compliance Change in Val Report March, May 3, 207 Page 3 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value YTM Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value 0037 FRMDN OPER 02/24/207 9,908, ,5.20 9,932, LTK4 0,000, /22/208 9,97,46 3,48 9,920, FAMCA OPER 04/03/207 8, ,000,00 0,000,00 0,000,00 332X0RN3 0,000, /02/208 0,000,00 9,994,2 9,994, FAMCAC OPER 04/9/207 0, ,500,00 7,500,00 7,500,00 332X0SB8 7,500, /9/208 7,500,00 7,493, ,493, FHLMCC OPER 05/25/206 26,75 0,000,00 0,000,00 334G9GP6 0,000, /25/208 53,50 0,000,46-3,64 9,996, FHLMCC OPER 06/29/206 3,759.75,549,00,549,00 334G9NK9,549, /29/208,493, ,345.6,500, FHLBC OPER 08/08/206 0, ,000,00 5,000,00 330A8Y80 5,000, /08/208 4,978, ,3 4,980, FHLMCC OPER 09/4/206 7, ,500,00 2,500,00 334GAJQ8 2,500, /4/208 4, ,497, ,496, FHLMCC OPER /28/206 3, ,000,00 5,000,00 334GAWQ3 5,000, /28/208 26,75 4,969,94 2, ,972, FAMCA OPER 0/8/207 6,50 5,000,00 5,000,00 332X0NC 5,000, /8/209 4,998, ,66 4,997, TXTECH OPER 02/22/207 5,779.40,480,00,480, FJ6,480, /5/209,478, ,478, FHLMCC OPER 02/28/207 6, ,000,00 2,000,00 334GA6H2 2,000, /28/209,997,97,67,999, TXAMU OPER 05/0/207 8, ,044,30 5,042, ,042, ABQ7 5,000, /5/209 3, ,044,30 5,039,25 5,039, FHLMCC OPER 0/27/207 3,6. 5,000,00 5,000,00-5,000,00 334GAJ2 0 0/27/2020 2, ,000, ,000,00-5,000,95.00 Run : 06/09/207-4:39 TC (PRF_TC) 7.0

25 Texas Compliance Change in Val Report March, May 3, 207 Page 4 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value YTM Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value 0036 TXTECH OPER 02/22/207 4,82.50,000,00,000, FK3,000, /5/ ,08 3,39,00,47 Sub Totals For: Fund: Operating 363, ,673, ,98, ,940,98. 6,095, ,769, , ,569, ,98, ,940,98. 6,06, ,630, Report Grand Totals: 65, ,975, ,685, ,342, ,620, ,354, , ,826, ,685, ,342, ,692, ,34, Run : 06/09/207-4:39 TC (PRF_TC) 7.0