County of Monterey Investment Portfolio Compliance Report January 31, 2018 County of Monterey Investment Portfolio Compliance Report January 31, 2018 Sarah Meacham Managing Director PFM Asset Management LLC 50 California Street, Suite 2300 San Francisco, CA 94111 (415) 982-5544 www.pfm.com 50 California Street 415-982-5544 Suite 2300 www.pfm.com San Francisco, CA 94111 PFM Asset Management LLC
Monterey County: Overview of Compliance Requirements January 31, 2018 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 Agreements 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 January 31, 2018 Sector Market Value Sector Limit Current Allocation In Compliance LAIF $65,000,000 $65 million 4.2% YES CAMP $143,350,000 20% 9.3% YES CalTrust $134,800,000 20% 8.8% YES Monterey County Bonds None 10% None YES U.S. Treasury $413,563,165 100% 26.9% YES Municipal - CA and Other 49 States None 100% None YES Municipal - CA Local Agency None 100% None YES Federal Agency/GSE $375,736,104 100% 24.4% YES Bankers' Acceptance None 40% None YES Commercial Paper $115,077,088 40% 7.5% YES Negotiable CD $77,346,110 30% 5.0% YES Reverse Repo/Securities Lending None 20% None YES Repurchase Agreements None 20% None YES Corporate $173,455,141 30% 11.3% YES Money Market Funds $39,376,905 20% 2.6% YES Collateralized Deposits/Inv. Contracts None 100% None YES Asset-Backed Securities None 20% None YES Totals $1,537,704,513 100.0% Sector Distribution Federal Agency/GSE 24.4% Commercial Paper 7.5% U.S. Treasury 26.9% CalTrust 8.8% CAMP 9.3% Negotiable CD 5.0% Corporate 11.3% Money Market Funds 2.6% LAIF 4.2% Numbers may not add to 100% due to rounding. PFM Asset Management LLC 3
Monterey County: Maturity Limits January 31, 2018 Sector Market Value Maximum Maturity Current Maximum In Compliance LAIF $65,000,000 N/A 1 day YES CAMP $143,350,000 N/A 1 day YES CalTrust $134,800,000 N/A 1 day YES Monterey County Bonds None 5 years - YES U.S. Treasury $413,563,165 5 years 4.0 years YES Municipal - CA and Other 49 States None 5 years - YES Municipal - CA Local Agency None 5 years - YES Federal Agency/GSE $375,736,104 5 years 2.5 years YES Bankers' Acceptance None 180 days - YES Commercial Paper $115,077,088 270 days 190 days YES Negotiable CD $77,346,110 5 years 2.8 years YES Reverse Repo/Securities Lending None 92 days - YES Repurchase Agreements None 1 year - YES Corporate $173,455,141 5 years 4.5 years YES Money Market Funds $39,376,905 N/A 1 day YES Collateralized Deposits/Inv. Contracts None 5 years - YES Pass-Through Securities None 5 years - YES Total/Average Weighted Maturity $1,537,704,513 2 years 0.68 years YES $500 $400 $382.53 Portfolio Maturity Distribution $409.89 Millions $300 $230.69 $279.14 $200 $170.64 $100 $0 Overnight 1 Day - 3 Months $56.86 $6.98 $0.99 $0.00 3-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years Numbers may not add to 100% due to rounding. PFM Asset Management LLC 4
Monterey County: Issuer Compliance January 31, 2018 Issuer Total Current Issuer Allocation Issuer Limit In Compliance U.S. Treasury $413,563,165 26.9% 100% YES FHLB $155,869,932 10.1% 100% YES FNMA $141,769,217 9.2% 100% YES FHLMC $48,231,845 3.1% 100% YES FFCB $29,865,110 1.9% 100% YES American Express $10,220,509 0.7% 5% YES American Honda Finance $6,221,588 0.4% 5% YES Apple $16,216,783 1.1% 5% YES Bank of New York $9,935,800 0.6% 5% YES Bank of Nova Scotia Houston $9,954,950 0.6% 5% YES Bank of Tokyo Mitsubishi $12,244,412 0.8% 5% YES Berkshire Hathaway $2,405,123 0.2% 5% YES BNP Paribas NY $24,794,450 1.6% 5% YES Branch Banking & Trust $244,145 0.0% 5% YES Chevron $8,171,403 0.5% 5% YES Cisco Systems $9,116,450 0.6% 5% YES Citigroup $3,817,217 0.2% 5% YES Coca-Cola $4,378,510 0.3% 5% YES Disney $2,699,748 0.2% 5% YES Goldman Sachs $8,576,277 0.6% 5% YES IBM $19,881,620 1.3% 5% YES ING U.S. $23,748,432 1.5% 5% YES Intel $10,156,828 0.7% 5% YES John Deere Capital $8,287,351 0.5% 5% YES JP Morgan Chase $39,942,374 2.6% 5% YES Merck $247,507 0.0% 5% YES Microsoft Corp Notes $12,546,727 0.8% 5% YES Nordea Bank Finland NY $17,505,285 1.1% 5% YES Oracle $247,289 0.0% 5% YES PepsiCo $3,819,835 0.2% 5% YES Pfizer $9,891,490 0.6% 5% YES PFM Asset Management LLC 5
Monterey County: Issuer Compliance January 31, 2018 Issuer Total Current Issuer Allocation Issuer Limit In Compliance Procter & Gamble $244,932 0.0% 5% YES Scandinav Enskilda Banken NY $13,799,263 0.9% 5% YES State Street $250,178 0.0% 5% YES Swedbank NY $17,835,588 1.2% 5% YES Toronto Dominion Bank NY $18,002,628 1.2% 5% YES Toyota Motor Credit $30,041,778 2.0% 5% YES United Postal Service $196,992 0.0% 5% YES US Bank NA $260,758 0.0% 5% YES Wells Fargo $9,974,120 0.6% 5% YES CAMP $143,350,000 9.3% 20% YES LAIF $65,000,000 4.2% $65 million YES CalTrust $134,800,000 8.8% 20% YES Fidelity $32,200,000 2.1% 10% YES Morgan Stanley $7,176,905 0.5% 10% YES $1,537,704,513 100.0% PFM Asset Management LLC 6
Monterey County: Notes January 31, 2018 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 PFM. PFM s market prices are derived from closing bid prices as of the last business day of the month as supplied by F.T. Interactive Data, Bloomberg or Telerate. Prices that fall between data points are interpolated. At the County's request, the report is prepared on a settlement date basis, as such, it is not prepared in accordance with GAAP, which dictates reporting on a trade date basis. 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 January 31, 2018 County Comments County comments: PFM Asset Management LLC 8