County of Monterey Investment Portfolio Compliance Report December 31, 2016 PFM Asset Management LLC 50 California Street, Suite 2300 San Francisco, CA 94111 (415) 982-5544 www.pfm.com PFM Asset Management LLC
Monterey County: Overview of Compliance Requirements December 31, 2016 Sector Sector Limitation Maximum Per Issuer Maximum Maturity Minimum Credit Requirements In Compliance LAIF $65 million $65 million N/A None YES CAMP 20% 20% N/A None YES CalTrust 20% 20% N/A None YES Monterey County Bonds 10% 5% 5 years None YES U.S. Treasury 100% 100% 5 years None YES Municipal - CA and Other 49 States 100% 5% 5 years None YES Municipal - CA Local Agency 100% 5% 5 years None YES Federal Agency/GSE 100% 100% 5 years None YES Bankers' Acceptance 40% 5% 180 days A-1/P-1 by NRSRO YES Commercial Paper 40% 5% 270 days A-1/P-1 by NRSRO YES Negotiable CD 30% 5% 5 years A or A-1 by NRSRO YES Reverse Repo/Securities Lending 20% N/A 92 days None YES Repurchase Agreeme+O22nts 20% N/A 1 year None YES Corporate 30% 5% 5 years A by NRSRO YES Money Market Funds 20% 10% N/A AAA by 2 NRSRO/Advisor Req. YES Collateralized Deposits/Inv. Contracts 100% 100% 5 years Insured/Collateralized YES Asset-Backed Securities 20% 5% 5 years AA by NRSRO YES Comments The County s portfolio is in compliance with the California Government Code and the County s Investment Policy. PFM Asset Management LLC 2
Monterey County: Sector Allocations December 31, 2016 Sector Market Value Sector Limit Current Allocation In Compliance LAIF $55,600,000 $65 million 4.0% YES CAMP $71,600,000 20% 5.2% YES CalTrust $110,000,000 20% 8.0% YES Monterey County Bonds None 10% None YES U.S. Treasury $321,870,077 100% 23.3% YES Municipal - CA and Other 49 States None 100% None YES Municipal - CA Local Agency None 100% None YES Federal Agency/GSE $399,531,083 100% 28.9% YES Bankers' Acceptance None 40% None YES Commercial Paper $101,692,394 40% 7.4% YES Negotiable CD $115,713,097 30% 8.4% YES Reverse Repo/Securities Lending None 20% None YES Repurchase Agreements None 20% None YES Corporate $180,821,773 30% 13.1% YES Money Market Funds $23,551,942 20% 1.7% YES Collateralized Deposits/Inv. Contracts None 100% None YES Asset-Backed Securities None 20% None YES Totals $1,380,380,365 100.0% Sector Distribution Federal Agency/GSE 28.9% Commercial Paper 7.4% U.S. Treasury 23.3% CalTrust 8.0% Negotiable CD 8.4% CAMP 5.2% Corporate 13.1% Money Market Funds 1.7% LAIF 4.0% PFM Asset Management LLC 3
Monterey County: Maturity Limits December 31, 2016 Sector Market Value Maximum Maturity Current Maximum In Compliance LAIF $55,600,000 N/A 1 day YES CAMP $71,600,000 N/A 1 day YES CalTrust $110,000,000 N/A 1 day YES Monterey County Bonds None 5 years - YES U.S. Treasury $321,870,077 5 years 3.1 years YES Municipal - CA and Other 49 States None 5 years - YES Municipal - CA Local Agency None 5 years - YES Federal Agency/GSE $399,531,083 5 years 3.0 years YES Bankers' Acceptance None 180 days - YES Commercial Paper $101,692,394 270 days 191 days YES Negotiable CD $115,713,097 5 years 1.9 years YES Reverse Repo/Securities Lending None 92 days - YES Repurchase Agreements None 1 year - YES Corporate $180,821,773 5 years 2.7 years YES Money Market Funds $23,551,942 N/A 1 day YES Collateralized Deposits/Inv. Contracts None 5 years - YES Pass-Through Securities None 5 years - YES Total/Average Weighted Maturity $1,380,380,365 2 years 1.24 years YES Portfolio Maturity Distribution $560 $498.8 $460 Millions $360 $260 $260.8 $317.0 $160 $60 $85.1 $41.7 $152.3 $24.8 $0.0 $0.0 -$40 Overnight 1 Day - 3 Months 3-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years PFM Asset Management LLC 4
Monterey County: Issuer Compliance December 31, 2016 Issuer Total Current Issuer Allocation Issuer Limit In Compliance U.S. Treasury $321,870,077 23.3% 100% YES FNMA $137,128,862 9.9% 100% YES FHLMC $57,269,522 4.1% 100% YES FHLB $165,142,819 12.0% 100% YES FFCB $39,989,880 2.9% 100% YES American Express $10,055,650 0.7% 5% YES American Honda Finance $6,220,080 0.5% 5% YES Apple $6,011,364 0.4% 5% YES Berkshire Hathaway $12,421,529 0.9% 5% YES Cisco Systems $8,901,855 0.6% 5% YES Citigroup $3,825,504 0.3% 5% YES Chevron $8,200,032 0.6% 5% YES Disney $2,712,610 0.2% 5% YES General Electric Capital $10,359,350 0.8% 5% YES Goldman Sachs $8,590,742 0.6% 5% YES IBM $20,008,540 1.4% 5% YES John Deere Capital $8,334,968 0.7% 5% YES JP Morgan Chase $9,968,440 0.7% 5% YES Microsoft Corp Notes $6,412,595 0.5% 5% YES PepsiCo $3,836,540 0.3% 5% YES Pfizer $9,939,090 0.7% 5% YES Toyota Motor Credit $25,002,505 1.8% 5% YES Wells Fargo $20,020,380 1.5% 5% YES Credit Agricole CIB NY $19,968,180 1.4% 5% YES ING U.S. $19,988,980 1.4% 5% YES Rabobank Nederland NY $9,942,290 0.7% 5% YES Bank of Montreal Chicago $19,957,400 1.4% 5% YES PFM Asset Management LLC 5
Monterey County: Issuer Compliance December 31, 2016 Issuer Total Current Issuer Allocation Issuer Limit In Compliance BNP Paribas NY $19,887,060 1.4% 5% YES Bank of Tokyo Mitsubishi $11,948,484 0.9% 5% YES Skandinaviska Enskilda Bank NY $13,976,270 1.0% 5% YES HSBC USA $14,002,170 1.0% 5% YES Svenska Handelsbanken NY $14,007,840 1.0% 5% YES Canadian Imperial Bank NY $20,008,668 1.4% 5% YES Royal Bank of Canada NY $18,020,430 1.3% 5% YES Toronto Dominion Bank NY $18,056,494 1.3% 5% YES Nordea Bank Finland NY $17,641,225 1.3% 5% YES CAMP $71,600,000 5.2% 20% YES LAIF $55,600,000 4.0% $65,000,000 YES CalTrust $110,000,000 8.0% 20% YES Fidelity $23,200,000 1.7% 10% YES Morgan Stanley $351,942 <1% 10% YES $1,380,380,365 100% PFM Asset Management LLC 6
Monterey County: Notes December 31, 2016 The purpose of this report is to verify the accuracy of the County s portfolio holdings information and verify the portfolio s compliance with the California Government Code and County s Investment Policy as of the date of the report. The report was prepared using the month-end portfolio holdings and market value information provided by the Treasurer s office. Percentages listed in this report were calculated using market values as of month-end. Using the CUSIPs provided by the County, issuer information and credit ratings were verified on Bloomberg for compliance purposes. This report is for the purposes indicated above and it is not intended to provide specific investment advice or recommendations. PFM Asset Management LLC 7
Monterey County December 31, 2016 County Comments County comments: PFM Asset Management LLC 8