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Item 1.4 - City’s Investment Report as of December 31, 2016 �_. APPROVED U 4 City of Poway APPROVED AS AMENDED ❑ (SEE MINUTES) AGENDA REPORT DENIED COUNCIL A G REMOVED ❑ THE CONTINUED Resolution No. DATE: February 21, 2017 TO: Honorable Mayor and Members of the City Council FROM: Peter Moote, Acting Finance Director CONTACT: Andrew White, Finance Manager a'4/ (858) 668-4426 or awhite @poway.org SUBJECT: City's Investment Report as of December 31, 2016 Summary: Quarterly reports of investments are required to be presented to Council. For your information, attached is an investment portfolio report as of December 31, 2016. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b) and the City's Investment Policy, the Director of Administrative Services (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of December 31, 2016, was $101,997,963. It consisted of the following: Investment Portfolio Total Deposits at CaITRUST 21,361,658 Deposits at the Local Agency Investment Fund (LAIF) 13,826,942 U. S. Treasury Notes 9,033,438 U. S. Instrumentalities 32,769,504 Corporate Notes 22,995,656 Municipal Bonds 2,010,765 Fair Value of Investment Portfolio as of December 31, 2016 101,997,963 1 of 27 February 21, 2017, Item#1.4 City's Investment Report February 21, 2017 Page 2 The attached portfolio report (attachment B) and investment report (attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. The funds on deposit at LAIF and CaITRUST earn interest at variable rates. The interest rate for the month ending December 2016 is estimated at .72% for LAIF, .91% for the CaITRUST short-term fund, and 1.11%for the CaITRUST medium-term fund. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down. The difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $66,980,454; the fair value is $66,809,363 for an unrealized loss of ($171,091) or .26% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non-managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at December 31, 2016, was $1,251,881. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $111,512 at December 31, 2016. The City's cash on hand at December 31, 2016, totaled $623,133. The December 31, 2016, balance of the City's Library Trust Fund is $257,115. Through the Fiscal Year 2016-17 period ending December 31, 2016, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2016-17, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund. Environmental Review: This item is not subject to CEQA review. Fiscal Impact: The externally managed investment portfolio earned $74,437 interest during December 2016 as well as $68,188 during November 2016 and $72,109 during October 2016. 2 of 27 February 21,2017, Item#1.4 City's Investment Report February 21, 2017 Page 3 Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at December 31, 2016 Reviewed/Approved By: Reviewed By: Approved \j't4W 1/ Wendy Kaserman Morgan Foley Tina M.White Assistant City Manager City Attorney City Manager 3 of 27 February 21,2017, Item#1.4 City of Poway Investment Statistics December September December 2015 2016 2016 Seperatelv Managed Investment Pools Fair Value: CaITRUST Short-Term Deposits 10,540,764 10,615,429 10,627,107 CaITRUST Medium-Term Deposits 12,607,621 10,781,654 10,734,551 Deposits at the Local Agency Investment Fund(LAIF) 5,677,502 21,288,936 13,826,942 Total Fair Value 28,825,887 42,686,019 35,188,600 Weighted Average Yield 0.69% 0.77% 0.90% Effective Average Duration in days 1 1 1 Weighted Average Maturity in days 1 I I Externally Manacled Investment Pools Fair Value: U.S.Treasury Notes 9,029,806 9,083,885 9,033,438 U.S.Instrumentalities 28,884,487 30,987,070 32,769,504 Corporate Bonds 25,067,949 23,073,013 22,995,656 Municipal Bonds 2,003,081 2,024,224 2,010,765 Total Fair Value 64,985,323 65,168,192 66,809,363 Amortized Cost Value: U.S.Treasury Notes 9,047,919 9,031,246 9,025,648 U.S.Instrumentalities 28,979,941 30,942,193 32,934,704 Corporate Bonds 25,075,003 23,031,700 23,020,102 Municipal Bonds 2,000,000 2,000,000 2,000,000 Total Amortized Cost Value ' 65,102,863 65,005,139 66,980,454 Unrealized Gain(Loss) (117,540) 163,053 (171,091) Accrued Interest Earned 85,299 67,272 74,437 Weighted Average Yield 1.24% 1.14% 1.20% Effective Average Duration in years 1.70 1.38 1.37 Weighted Average Maturity in years 1.88 1.59 1.45 Total Fair Value of Portfolio Assets 93,811,210 107,854,211 101,997,963 Weighted Average Yield 1.07% 0.99% 1.09% Effective Average Duration in years 1.48 1.23 1.24 Weighted Average Maturity in years 1.61 1.36 1.29 Glossary of Yield Terminology Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly,quarterly,or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings(coupon)divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time,factoring in interest payments,changes in market value and reinvestment of distributions. Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in it,weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small Yield to Maturity: The Yield to Maturity(YTM)or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of 27 Attachment A February 21, 2017, Item#1.4 City of Poway Monthly Investment Portfolio Report December 31, 2016 Seperately Managed Investment Pools % Return LAIF $ 13,826,942 39% 0.72% LAIF,39% CalTrust-Short $ 10,627,107 30% 0.91% CalTrust-Medium $ 10,734,551 31% 1.11% CalTrust- Medium,31% Total Internally Managed $ 35,188,600 34% Weighted Average Yield 0.90% Days Effective Average Duration-Internal 1 Weighted Average Maturity-Internal 1 CalTrust-Short, 30% Externally Managed Assets % Return Treasury Securities $ 9,033,438 14% 1.12% Treasury Instrumentality Securities $ 32,769,504 49% 1.07% Corporate Securities,14% Corporate Notes $ 22,995,656 34% 1.34% Notes,34% Municipal $ 2,010,765 3% 1.95% Total Externally Managed $ 66,809,363 66% Weighted Average Yield 1.20% Years Effective Average Duration-External 1.37 Instrumentality Weighted Average Maturity-External 1.45 Securities,49% Total Portfolio Assets % Return LAIF $ 13,826,942 14% 0.72% LAIF CalTrust-Short CalTrust-Short $ 10,627,107 10% 0.91% Corporate Notes 14% 10% CalTrust-Medium $ 10,734,551 11% 1.11% 23% Treasury Securities $ 9,033,438 9% 1.12% Instrumentality Securities $ 32,769,504 32% 1.07% Corporate Notes $ 22,995,656 23% 1.34% Municipal $ 2,010,765 2% 1.95% Total Portfolio Assets $ 101,997,964 CalTrust- Medium 11% Weighted Average Yield 1.09% Years Instrumentality Effective Average Duration-Total 0.90 Securities Treasury Weighted Average Maturity-Total 0.95 33% Securities 9% Portfolio Change Beginning Balance $ 106,512,752 Ending Balance $ 101,997,964 Assets values shown at Market 5 of 27 Attachment B February 21, 2017, Item#1.4 FOR PROFESSIONAL CLIENTS ONLY NOT TO BE DISTRIBUTED TO RETAIL CLIENTS 0 THIS DOCUMENT SHOULD NOT BE REPRODUCED IN .i ANY FORM WITHOUT PRIOR WRITTEN APPROVAL 0> 3 0 -n CITY OF POWAY • December 2016 Insight INVESTMENT 3 >A BNY MELLON COMPANYSM Contents V Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40-Deposit and investment risk disclosure 14 Securities purchased 18 Transaction report 19 A Additional information 20 n CD a N EriN 0 V 3 FIXED INCOME MARKET REVIEW CITY OFPOWAY As of December 31 , 2016 co 0 N Chart 1: US Gross Domestic Product 9/30/08-9/30/16 Economic Indicators and Monetary Policy 10.0 - Interest rates increased across the yield curve in December, supported by $° positive economic releases and action by the Federal Reserve. In addition, the market continues to anticipate future stimulus from changes in policies related to 6.0 - spending,trade and taxes. C 4.o The Federal Open Market Committee (FOMC) delivered the first change in the Fed oxJ 2.0 funds target rate in 2016 at its December 14th meeting. The target for the °o _ overnight rate was increased to a range of 0.50%to 0.75%from the prior range of 0.25%to 0.50%. The FOMC statement referenced an expanding labor market and a) 2'0 l strengthening economic activity. a -4.0 - The payroll report for November was released on December 2nd, showing that -6.0 - the unemployment rate fell to 4.6% from 4.9% and the underemployment rate -8.0 - declined to 9.3% from 9.5%. The November payroll data reflected that 178,000 10.0 jobs were added, slightly lower than expectations for 180,000 new jobs. Average Se 08 Sep-09 Se 10 Sep-11 Sep-12 Sep-13 Se 14 Se 15 Se 16 hourly earnings fell 0.01%to a 2.5%annual rate. p- p- p- p- Sep-16 final estimate of US Gross Domestic Product (GDP) for the third quarter was 3 Source:Bloomberg Finance LP,September 30,2016. released on December 22nd. The GDP report showed 3.5% growth in the third CD quarter, which was revised up from the 3.2% prior estimate. Personal Chart 2:Treasury Yield Curves 12/31/2015-12/31/2016 consumption increased to 3.0%in the final estimate of third quarter GDP from the n 2.8%prior estimate. (See Chart 1). 3.00% - The Producer Price Index (PPI) released on December 14th showed higher than 2.50% expected increases in November.The PPI increased 0.4%in November at both the headline and core levels. Year-over-year, including food and energy the PPI • 2.00% increased 1.3% and excluding food and energy increased 1.6%. The Consumer '�� Price Index (CPI) released on December 15th rose in line with expectations to • 1.so% / JJ annual rates of 1.7% including food and energy and 2.1% excluding food and energy for November. ▪ 1.00% - Interest Rate Summary 711 I20i6 CD j At the end of December, the 3-month US Treasury bill yielded 0.50%,the 6-month 0.50% 12/31/2015 US Treasury bill yielded 0.61%, the 2-year US Treasury note yielded 1.19%, the 5- year US Treasury note yielded 1.93% and the 10-year US Treasury note yielded 0.00%3 m 6m 1 yr 2yr 3yr 4yr 5 yr 6 yr 7 yr 8yr 9yr 10 yr 2.45%(See Chart 2). O Source:Bloomberg Finance LP,December 31,2015,December 31,2016. CD 3 3 ACTIVITY AND PERFORMANCE SUMMARY CITY OFPOWAY For the period December 1 , 2016 - December 31 , 2016 0 N Amortized Cost Basis Activity Summary Detail of Amortized Cost Basis Return V Opening balance 65,989,096.30 Interest Accretion Realized Total Income received 84,080.58 earned (amortization) gain(loss) income Total receipts 84,080.58 Corporate Bonds 30,732.78 (3,868.98) 0.00 26,863.80 Total disbursements 0.00 Government Agencies 29,854.18 142.49 0.00 29,996.67 Interportfoliotransfers 912,890.42 Government Bonds 10,497.55 (1,886.35) 0.00 8,611.20 Total Interportfolio transfers 912,890.42 Municipal/Provincial Bonds 3,352.69 0.00 0.00 3,352.69 Realized gain(loss) 0.00 Total 74,437.20 (5,612.84) 0.00 68,824.36 Total amortization expense (7,446.05) Total OID/MKT accretion income 1,833.21 Return of capital 0.00 Closing balance 66,980,454.46 Ending fair value 66,809,363.14 > Unrealized gain(loss) (171,091.32) 0) 0 3 CD 7 n Comparative Rates of Return(%) Summary of Amortized Cost Basis Return for the Period *Twelve *Six *One month Total portfolio month trailing month trailing Fed Funds 0.40 0.21 0.05 Interest earned 74,437.20 Overnight Repo 0.45 0.23 0.03 Accretion(amortization) (5,612.84) Merrill Lynch 3m US Treas Bill 0.30 0.17 0.04 Realized gain(loss)on sales 0.00 Merrill Lynch 6m US Treas Bill 0.41 0.23 0.05 Total income on portfolio 68,824.36 ML 1 Year US Treasury Note 0.61 0.33 0.07 -1 Average daily amortized cost 66,822,371.86 W ML 2 Year US Treasury Note 0.84 0.44 0.10 a Period return(%) 0.10 ML 5 Year US Treasury Note 1.34 0.69 0.16 la YTD return(%) 1.20 Weighted average final maturity in days 529 N N a 4 Fr *rates reflected are cumulative 3 li A 4 ACTIVITY AND PERFORMANCE SUMMARY CITY OFPOWAY For the period December 1 , 2016 - December 31 , 2016 O 2. Fair Value Basis Activity Summary Detail of Fair Value Basis Return v Interest Change in Total 65,830,462.82 Opening balance earned fair value income Income received 84,080.58 Total receipts 84,080.58 Corporate Bonds 30,732.78 (14,508.18) 16,224.60 Total disbursements 0.00 Government Agencies 29,854.18 3,834.90 33,689.08 Interportfoliotransfers 912,890.42 Government Bonds 10,497.55 (5,137.50) 5,360.05 Total Interportfolio transfers 912,890.42 Municipal/Provincial Bonds 3,352.69 (2,259.90) 1,092.79 Unrealized gain(loss)on security movements 0.00 Total 74,437.20 (18,070.68) 56,366.52 Return of capital 0.00 Change in fair value for the period (18,070.68) Ending fair value 66,809,363.14 D a) a) ca s 3 0 3 C) Comparative Rates of Return(%1 Summary of Fair Value Basis Return for the Period *Twelve *Six *One month Total portfolio month trailing month trailing Fed Funds 0.40 0.21 0.05 Interest earned 74,437.20 Overnight Repo 0.45 0.23 0.03 Change in fair value (18,070.68) Merrill Lynch 3m US Treas Bill 0.33 0.18 0.04 Total income on portfolio 56,366.52 Merrill Lynch 6m US Treas Bill 0.67 0.26 0.05 Average daily total value* 66,799,156.73 ML 1 Year US Treasury Note 0.76 0.10 0.07 Period return(%) 0.08 0 ML US Treasury 1-3 0.89 (0.54) 0.03 ar YTD return(%) 1.09 ML US Treasury 1-5 1.09 (1.27) 0.02 so Weighted average final maturity in days 529 Z N N 0 V et *rates reflected are cumulative *Total value equals market value and accrued interest 3 a A 5 RECAP OF SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 o Historical Amortized Fair value Unrealized Weighted Percent Weighted cost cost gain(loss) average of average final portfolio effective maturity(days) duration(years) Corporate Bonds 23,138,631.56 23,020,102.50 22,995,656.19 (24,446.31) 324 34.46 0.87 Government Agencies 32,931,690.90 32,934,704.40 32,769,504.20 (165,200.20) 671 49.05 1.70 Government Bonds 9,074,824.23 9,025,647.56 9,033,437.50 7,789.94 510 13.52 1.38 Municipal/Provincial Bonds 2,000,000.00 2,000,000.00 2,010,765.25 10,765.25 645 2.98 1.73 otal 67,145,146.69 66,980,454.46 66,809,363.14 (171,091.32) 529 100.00 1.37 D cu 1 o 3 CD r C) Portfolio diversification (%) • Corporate Bonds 34.46 •Government Agencies 49.05 • Government Bonds 13.52 • Municipal/Provincial Bonds 2.98 cco Total 100.00 Q C 0) N N O V <D 3 a 6 MATURITY DISTRIBUTION OF SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 O Maturity Historic cost Percent Under 90 days 9,005,344.00 13.41 90 to 179 days 9,603,560.00 14.30 180 days to 1 year 16,547,576.81 24.64 1 to 2 years 24,473,779.88 36.45 2 to 3 years 6,517,915.00 9.71 3 to 4 years 996,971.00 1.49 4 to 5 years 0.00 0.00 Over 5 years 0.00 0.00 67,145,146.69 100.00 n 3 co C) Maturity distribution 25.00 20.00 u 15.00 0 u 10.00 0 11 CD = 5.00 ■ � d 0.00 a0-\y aa �� easy mac" �a �acy ea�� 0 Jca pp� aa� ti S b 0� V 9p fD 3 7 SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 W %usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % *escription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Corporate Bonds 459200HC8 1.250 02/06/2017 2,000,000.00 2,008,680.00 2,000,266.62 2,000,450.00 183.38 0.00 2,152.77 10,069.44 2.99 IBM CORP 1.25%06/02/2017 0.00 (222.19) (1,182.00) 037833AM2 1.050 05/05/2017 1,000,000.00 1,001,410.00 1,000,163.59 1,000,702.00 538.41 0.00 904.17 1,604.17 1.49 APPLE INC 1.05%05/05/2017 0.00 (37.65) 27.00 94974BFD7 2.100 05/08/2017 2,000,000.00 1,989,720.00 1,999,254.57 2,005,666.00 6,411.43 0.00 3,616.66 6,183.33 2.96 WELLS FARGO&COMPANY 0.00 167.58 (2,008.00) 2.1%08/05/2017 084664859 1.600 05/15/2017 3,000,000.00 3,063,200.00 3,005,396.42 3,005,595.00 198.58 0.00 4,133.33 6,133.33 4.56 BERKSHIRE HATHAWAY FIN 0.00 (1,199.20) (3,291.00) yi.6%15/05/2017 .. r§6962G7J7 1.250 05/15/2017 500,000.00 501,320.00 500,184.66 499,872.75 (311.91) 0.00 538.19 798.61 0.75 SENERAL ELECTRIC CO 1.25% 04/13/2017 0.00 (41.04) (383.50) 015/05/2017(CALLABLE A 3/04/17) n 064058AA8 1.969 06/20/2017 2,000,000.00 2,049,660.00 2,007,451.19 2,006,940.00 (511.19) 19,690.00 3,391.06 1,203.28 3.05 BANK OF NEW YORK MELLON 0.00 (1,314.92) (656.00) 1.969%20/06/2017 718172A58 1.125 08/21/2017 1,500,000.00 1,499,580.00 1,499,942.52 1,498,816.50 (1,126.02) 0.00 1,453.12 6,093.75 2.23 PHILIP MORRIS INTL INC 0.00 7.46 (864.00) 1.125%21/08/2017 24422ERW1 1.200 10/10/2017 1,000,000.00 1,000,000.00 1,000,000.00 999,346.00 (654.00) 0.00 1,033.33 2,700.00 1.49 JOHN DEERE CAPITAL CORP 0.00 0.00 (1,948.00) A.2%10/10/2017 ar 236962G6K5 1.600 11/20/2017 982,000.00 988,461.56 983,666.16 984,621.94 955.78 0.00 1,352.98 1,789.42 1.47 t0ENERAL ELECTRIC CO 1.6% 0.00 (156.20) (726.68) N /11/2017 458140AL4 1.350 12/15/2017 2,000,000.00 2,003,300.00 2,000,921.86 2,003,006.00 2,084.14 13,500.00 2,325.00 1,200.00 2.98 N •NTEL CORP 1.35%15/12/2017 0.00 (80.16) (994.00) V et 3 8 SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 2c usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % escription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Corporate Bonds 808513AK1 1.500 03/10/2018 1,000,000.00 998,740.00 999,502.02 1,000,236.00 733.98 0.00 1,291.67 4,625.00 1.49 CHARLES SCHWAB CORP 1.5% 02/10/2018 0.00 34.74 (1,578.00) 10/03/2018(CALLABLE 10/02/18) 02665WAT8 1.500 03/13/2018 1,000,000.00 999,720.00 999,864.84 999,858.00 (6.84) 0.00 1,291.67 4,500.00 1.49 AMERICAN HONDA FINANCE 0.00 9.37 (237.00) 1.5%13/03/2018 166764AE0 1.718 06/24/2018 1,000,000.00 1,007,100.00 1,003,560.00 1,003,062.00 (498.00) 8,590.00 1,479.39 334.06 1.50 CHEVRON CORP 1.718% 05/24/2018 0.00 (200.00) 141.00 24/06/2018(CALLABLE 24/05/18) D 51159HHE3 1.950 11/15/2018 2,000,000.00 2,021,700.00 2,014,810.41 2,010,176.00 (4,634.41) 0.00 3,358.33 4,983.33 3.01 o 15 BANCORP 1.95% 10/15/2018 0.00 (658.25) (704.00) 315/11/2018(CALLABLE =15/10/18) "59236TDE2 1.400 05/20/2019 2,000,000.00 2,006,040.00 2,005,117.64 1,977,308.00 (27,809.64) 0.00 2,411.11 3,188.89 2.99 TOYOTA MOTOR CREDIT CORP 0.00 (178.52) (104.00) 1.4%20/05/2019 ate\`\ z is . \"�c . \�o x ..t =_-- �\-. T. iCorperateSon=,�'y� g, ## ## o<1,...-,144. .<#°## # #. \\ . mac/ "----°y,s4 ,. boo - aa� --.._. 1_-.= x a,�,....;M z....VV .,,_dZc7t,,, <,f ,...:.... .... ., .. ..>4N.. a, l..._.. ... 14...... ... . _ Government Agencies 3135GOVM2 0.750 03/14/2017 1,000,000.00 998,664.00 999,776.83 1,000,180.00 403.17 0.00 645.84 2,229.17 1.49 ,ANNIE MAE 0.75%14/03/2017 0.00 90.47 (160.00) C ALLABLE#0000 CT 137EADJ5 1.000 07/28/2017 1,000,000.00 1,002,777.00 1,000,936.17 1,001,554.00 617.83 0.00 861.11 4,250.00 1.49 ZREDDIE MAC 1%28/07/2017 0.00 (135.02) (83.00) N'1 g134G7MJ7 0.750 08/25/2017 2,000,000.00 2,003,392.00 2,001,198.68 1,997,420.00 (3,778.68) 0.00 1,291.67 5,250.00 2.98 *REDDIE MAC 0.75% 0.00 (153.02) 280.00 X5/08/2017 eP 3 a j 9 SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 a, 2c usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % escription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Government Agencies 3133EAY28 0.830 09/21/2017 2,000,000.00 1,996,960.00 1,999,552.99 2,000,060.00 507.01 0.00 1,429.44 4,611.11 2.97 FEDERAL FARM CREDIT BANK 0.00 51.38 180.00 0.83%21/09/2017 3130A5FR5 0.875 11/28/2017 1,000,000.00 997,290.00 998,994.48 999,100.00 105.52 0.00 753.47 802.08 1.49 FEDERAL HOME LOAN BANK 0.00 91.97 320.00 0.875%28/11/2017 3133EEFE5 1.125 12/18/2017 1,000,000.00 1,004,630.00 1,001,948.30 1,001,971.00 22.70 5,625.00 968.75 406.25 1.50 FEDERAL FARM CREDIT BANK 0.00 (167.95) 18.00 1.125%18/12/2017 3130A5J75 0.900 01/30/2018 2,000,000.00 1,994,600.00 1,997,754.80 1,994,000.00 (3,754.80) 0.00 1,500.00 7,500.00 2.97 TFEDERAL HOME LOAN BANK 0.00 172.71 (360.00) p3.9%30/01/2018 C! 133EEM98 1.000 05/21/2018 1,000,000.00 997,890.00 999,017.56 998,570.00 (447.56) 0.00 861.11 1,111.11 1.49 gEDERAL FARM CREDIT BANK 0.00 58.83 1,570.00 .-11%21/05/2018#0000 n 3130A5M55 1.200 06/27/2018 1,000,000.00 1,003,600.00 1,001,839.39 1,000,000.00 (1,839.39) 6,000.00 1,033.33 133.33 1.49 FEDERAL HOME LOAN BANK 0.00 (102.76) (530.00) 1.2%27/06/2018#0000 3130A6KT3 0.950 08/24/2018 1,940,000.00 1,941,668.40 1,940,967.80 1,930,843.20 (10,124.60) 0.00 1,587.02 6,501.69 2.89 FEDERAL HOME LOAN BANK 0.00 (48.88) (659.60) 0.95%24/08/2018 3134G8MN6 1.000 09/07/2018 1,500,000.00 1,499,100.00 1,499,402.95 1,490,445.00 (8,957.95) 0.00 1,291.67 4,750.00 2.23 FREDDIE MAC 1%07/09/2018 0.00 29.51 (1,440.00) ALLABLE 0 23130A6AE7 1.125 09/14/2018 1,500,000.00 1,487,728.50 1,492,727.12 1,499,122.50 6,395.38 0.00 1,453.13 5,015.63 2.22 EDERAL HOME LOAN BANK 0.00 355.35 876.00 N.125%14/09/2018 J135G0072 1.125 12/14/2018 1,500,000.00 1,498,515.00 1,499,069.40 1,496,905.50 (2,163.90) 8,437.50 1,453.13 796.88 2.23 ANNIE MAE 1.125% 0.00 38.28 (19.50) :i 4/12/2018 :. 3 a A 10 SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 cra %usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % pescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Government Agencies 3133EF3V7 0.875 02/15/2019 1,000,000.00 994,450.00 995,796.29 990,790.00 (5,006.29) 0.00 753.48 3,305.56 1.48 FEDERAL FARM CREDIT BANK 0.00 164.85 (410.00) 0.875%15/02/2019 3136G1FY0 1.375 03/13/2019 1,500,000.00 1,514,175.00 1,510,209.60 1,500,780.00 (9,429.60) 0.00 1,776.04 6,187.50 2.26 FANNIE MAE 1.375% 0.00 (386.24) (1,815.00) 13/03/2019 CALLABLE 3134G9WF0 1.100 03/29/2019 1,000,000.00 1,000,000.00 1,000,000.00 989,820.00 (10,180.00) 0.00 947.22 2,811.11 1.49 FREDDIE MAC 1.1%29/03/2019 03/29/2017 0.00 0.00 1,830.00 (CALLABLE 29/03/17)#0000 3134G9LD7 1.250 05/24/2019 2,000,000.00 2,000,000.00 2,000,000.00 1,982,440.00 (17,560.00) 0.00 2,152.77 2,569.44 2.98 ZFREDDIE MAC 1.25% 02/24/2017 0.00 0.00 2,600.00 4/05/2019(CALLABLE 4/02/17)#0001 e0o3135G0L76 1.075 07/11/2019 1,000,000.00 1,000,000.00 1,000,000.00 990,690.00 (9,310.00) 0.00 925.70 5,076.39 1.49 ',ANNIE MAE 1.075% 01/11/2017 0.00 0.00 2,660.00 q 1/07/2019(CALLABLE 11/04/17) 3137EADK2 1.250 08/01/2019 1,000,000.00 1,006,100.00 1,004,837.39 995,883.00 (8,954.39) 0.00 1,076.39 5,208.33 1.50 FREDDIE MAC 1.25% 0.00 (155.88) 59.00 01/08/2019 3136G36X8 1.140 09/13/2019 2,000,000.00 1,998,000.00 1,998,198.15 1,973,900.00 (24,298.15) 0.00 1,963.33 6,840.00 2.98 FANNIE MAE 1.14%13/09/2019 03/13/2017 0.00 55.56 (1,360.00) (CALLABLE 13/03/17) f13OAA2H0 1.125 11/29/2019 1,000,000.00 997,150.00 997,282.14 989,110.00 (8,172.14) 0.00 968.75 1,000.00 1.49 EDERAL HOME LOAN BANK 0.00 77.73 (790.00) .125%29/11/2019 N136G4DA8 1.200 12/30/2019 1,000,000.00 998,250.00 998,369.28 988,660.00 (9,709.28) 3,000.00 1,000.00 0.00 1.49 :JEANNIE MAE 1.2%30/12/2019 03/30/2017 0.00 45.29 3,040.00 CALLABLE 30/03/17)#0001 It *1 Fr 3 It A 11 SECURITIES HELD CITY OFPOWAY As of December 31 , 2016 V usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total r*escription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Government Agencies 3133EGLA1 1.170 01/13/2020 2,000,000.00 1,999,780.00 1,999,799.28 1,964,640.00 (35,159.28) 0.00 2,015.00 10,920.00 2.98 FEDERAL FARM CREDIT BANK 07/13/2017 0.00 5.51 2,380.00 1.17%13/01/2020(CALLABLE 13/07/17) 3133EGM51 1.650 12/01/2020 1,000,000.00 996,971.00 997,025.80 992,620.00 (4,405.80) 0.00 1,145.83 1,375.00 1.48 FEDERAL FARM CREDIT BANK (229.17) 54.80 (4,351.00) 1.65%01/12/2020 +; r 0-;115-1-it. ,+ +y 32,769, + .20?: .�.1.+5 + 8 + 49.t�, ' ''" .A •.�„r./?4,-.. "- ao\ ` .w.,....M,.....r.Z• ' =;3 a��.;?u,�>, ,rte .,.``. ,., �. ;: �.. �a�k,..:Cz�a... M,..�"* �_w..,..F:.x, Government Bonds D 'p+�12828Pf1 1.875 10/31/2017 2,000,000.00 2,051,406.25 2,012,612.99 2,016,718.00 4,105.01 0.00 3,211.32 6,319.06 3.06 &JSA TREASURY 1.875% 0.00 (1,286.20) (1,564.00) 33 31/10/2017 m n�12828H94 1.000 02/15/2018 1,000,000.00 999,218.75 999,704.06 1,000,352.00 647.94 0.00 842.39 3,750.00 1.49 -USA TREASURY 1%15/02/2018 0.00 22.32 0.00 912828UU2 0.750 03/31/2018 1,000,000.00 989,140.63 995,604.08 997,109.00 1,504.92 0.00 638.73 1,895.60 1.47 USA TREASURY 0.75% 0.00 299.50 312.00 31/03/2018 912828VQ0 1.375 07/31/2018/2018 1,500,000.00 1,514,765.63 1,507,344.63 1,506,679.50 (665.13) 0.00 1,737.43 8,575.07 2.26 USA TREASURY 1.375% 0.00 (394.60) (879.00) 31/07/2018 912828RE2 1.500 08/31/2018 1,500,000.00 1,519,511.72 1,509,960.64 1,509,375.00 (585.64) 0.00 1,926.79 7,582.87 2.26 g)SATREASURY 1.5% 0.00 (507.86) (1,054.50) 1/08/2018 Z12828WD8 1.250 10/31/2018 2,000,000.00 2,000,781.25 2,000,421.16 2,003,204.00 2,782.84 0.00 2,140.89 4,212.71 2.98 2JSA TREASURY 1.25% 0.00 (19.51) (1,952.00) .. . .t, s,. ♦fie. 4 . : ,..99 x Y J1/10/2018 ` �ry: r$ + 4s '.?`"'> k{' _ ,."' 0- ' , � =; -. . .` r� �.. .>.-4-W V2 *W.;`-„A,,,,,, ':. . 3 a 12 SECURITIES HELD CITY OF POWAY As of December 3112016 co <1,C,usip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NIDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port purchased (amortization) value (loss) interest cost Municipal/Provincial Bonds 738798BG1 1.780 06/15/2018 765,000.00 765,000.00 765,000.00 769,046.85 4,046.85 6,808.50 1,172.57 605.20 1.14 POWAY CA REDEV AGY 0.00 0.00 (703.80) SUCCESSOR A 1.78% 15/06/2018 738798BH9 2.050 12/15/2018 1,235,000.00 1,235,000.00 1,235,000.00 1,241,718.40 6,718.40 12,658.75 2,180.12 1,125.22 1.84 POWAY CA REDEV AGY 0.00 0.00 (1,556.10) SUCCESSOR A 2.05% 15/12/2018 €'€€ €€€ r€:€r€€€ t€ €€€'€€€00 \ J• € 287 " ' ''' 7304i-41:1 . Total MIITIICI�ldy h ll�� Bf?iids '^^: v»s �� d - �� a;. '.. d» # Vie° CD / � ♦♦ ,1 CD CT c V CD 3 13 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of December 31 , 2016 %usip Description Coupon Maturity Call date S&P Moody Par value or Historical %Portfolio Market %Portfolio Effective na date rating rating shares cost hist cost value mkt value dur(yrs) United States Treasury Note/Bond 912828PF1 USA TREASURY 1.875% 1.875 10/31/2017 AA+ Aaa 2,000,000.00 2,051,406.25 3.06 2,016,718.00 3.02 0.82 9128281194 USA TREASURY 1% 1.000 02/15/2018 AA+ Aaa 1,000,000.00 999,218.75 1.49 1,000,352.00 1.50 1.11 912828UU2 USA TREASURY 0.75% 0.750 03/31/2018 AA+ Aaa 1,000,000.00 989,140.63 1.47 997,109.00 1.49 1.24 912828VQ0 USA TREASURY 1.375% 1.375 07/31/2018 AA+ Aaa 1,500,000.00 1,514,765.63 2.26 1,506,679.50 2.26 1.55 912828RE2 USA TREASURY 1.5% 1.500 08/31/2018 AA+ Aaa 1,500,000.00 1,519,511.72 2.26 1,509,375.00 2.26 1.64 912828WD8 USA TREASURY 1.25% 1.250 10/31/2018 AA+ Aaa 2,000,000.00 2,000,781.25 2.98 2,003,204.00 3.00 1.81 Issuer total 9,000,000.00 9,074,824.23 13.52 9,033,437.50 13.52 1.38 Federal Home Loan Mortgage Corp 1 3 7 E A D 1 5 FREDDIE MAC 1% 1.000 07/28/2017 AA+ Aaa 1,000,000.00 1,002,777.00 1.49 1,001,554.00 1.50 0.57 134G7M17 FREDDIE MAC 0.75% 0.750 08/25/2017 AA+ Aaa 2,000,000.00 2,003,392.00 2.98 1,997,420.00 2.99 0.64 3 134G8MN6 FREDDIE MAC 1% 1.000 09/07/2018 AA+ Aaa 1,500,000.00 1,499,100.00 2.23 1,490,445.00 2.23 1.54 d134G9WF0 FREDDIE MAC 1.1% 1.100 03/29/2019 03/29/2017 AA+ Aaa 1,000,000.00 1,000,000.00 1.49 989,820.00 1.48 1.98 3134G9LD7 FREDDIE MAC 1.25% 1.250 05/24/2019 02/24/2017 AA+ Aaa 2,000,000.00 2,000,000.00 2.98 1,982,440.00 2.97 2.01 3137EADK2 FREDDIE MAC 1.25% 1.250 08/01/2019 AA+ Aaa 1,000,000.00 1,006,100.00 1.50 995,883.00 1.49 2.53 Issuer total 8,500,000.00 8,511,369.00 12.68 8,457,562.00 12.66 1.49 Federal Home Loan Banks 3130A5FR5 FEDERAL HOME LOAN 0.875 11/28/2017 AA+ Aaa 1,000,000.00 997,290.00 1.49 999,100.00 1.50 0.90 ,4130A5175 FEDERAL HOME LOAN 0.900 01/30/2018 AA+ Aaa 2,000,000.00 1,994,600.00 2.97 1,994,000.00 2.98 1.07 m si130A5M55 FEDERAL HOME LOAN 1.200 06/27/2018 AA+ Aaa 1,000,000.00 1,003,600.00 1.49 1,000,000.00 1.50 1.47 c 130A6KT3 FEDERAL HOME LOAN 0.950 08/24/2018 AA+ Aaa 1,940,000.00 1,941,668.40 2.89 1,930,843.20 2.89 1.62 130A6AE7 FEDERAL HOME LOAN 1.125 09/14/2018 AA+ Aaa 1,500,000.00 1,487,728.50 2.22 1,499,122.50 2.24 1.68 3130AA2110 FEDERAL HOME LOAN 1.125 11/29/2019 AA+ Aaa 1,000,000.00 997,150.00 1.49 989,110.00 1.48 2.86 Z1 "-issuer total 8,440,000.00 8,422,036.90 12.54 8,412,175.70 12.59 1.54 ea 3 It 14 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31 , 2016 2c usip Description Coupon Maturity Call date S&P Moody Par value or Historical %Portfolio Market %Portfolio Effective V date rating rating shares cost hist cost value mkt value dur(yrs) Federal National Mortgage Association 3135G0VM2 FANNIE MAE 0.75% 0.750 03/14/2017 AA+ Aaa 1,000,000.00 998,664.00 1.49 1,000,180.00 1.50 0.20 3135G0G72 FANNIE MAE 1.125% 1.125 12/14/2018 AA+ Aaa 1,500,000.00 1,498,515.00 2.23 1,496,905.50 2.24 1.93 3136G1FY0 FANNIE MAE 1.375% 1.375 03/13/2019 AA+ Aaa 1,500,000.00 1,514,175.00 2.26 1,500,780.00 2.25 2.15 3135G0L76 FANNIE MAE 1.075% 1.075 07/11/2019 01/11/2017 AA+ Aaa 1,000,000.00 1,000,000.00 1.49 990,690.00 1.48 2.10 3136036X8 FANNIE MAE 1.14% 1.140 09/13/2019 03/13/2017 M+ Aaa 2,000,000.00 1,998,000.00 2.98 1,973,900.00 2.95 2.30 3136G4DA8 FANNIE MAE 1.2% 1.200 12/30/2019 03/30/2017 AA+ Aaa 1,000,000.00 998,250.00 1.49 988,660.00 1.48 2.37 Issuer total 8,000,000.00 8,007,604.00 11.93 7,951,115.50 11.90 1.92 Federal Farm Credit Banks 33133EAY28 FEDERAL FARM CREDIT 0.830 09/21/2017 AA+ Ma 2,000,000.00 1,996,960.00 2.97 2,000,060.00 2.99 0.72 to D133EEFE5 FEDERAL FARM CREDIT 1.125 12/18/2017 AA+ Aaa 1,000,000.00 1,004,630.00 1.50 1,001,971.00 1.50 0.96 tmC3133EEM98 FEDERAL FARM CREDIT 1.000 05/21/2018 AA+ Aaa 1,000,000.00 997,890.00 1.49 998,570.00 1.49 1.37 3 ci133EF3V7 FEDERAL FARM CREDIT 0.875 02/15/2019 AA+ Aaa 1,000,000.00 994,450.00 1.48 990,790.00 1.48 2.10 3133EGLA1 FEDERAL FARM CREDIT 1.170 01/13/2020 07/13/2017 AA+ Aaa 2,000,000.00 1,999,780.00 2.98 1,964,640.00 2.94 2.57 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971.00 1.48 992,620.00 1.49 3.80 Issuer total 8,000,000.00 7,990,681.00 11.90 7,948,651.00 11.90 1.85 Berkshire Hathaway Finance Corp 084664859 BERKSHIRE HATHAWAY 1.600 05/15/2017 AA Aa2 3,000,000.00 3,063,200.00 4.56 3,005,595.00 4.50 0.37 esuer total 3,000,000.00 3,063,200.00 4.56 3,005,595.00 4.50 0.37 s -Poway Redevelopment Agency Successor Age �38798BG1 POWAY CA REDEV AGY 1.780 06/15/2018 AA- NR 765,000.00 765,000.00 1.14 769,046.85 1.15 1.43 ;138798BH9 POWAY CA REDEV AGY 2.050 12/15/2018 AA- NR 1,235,000.00 1,235,000.00 1.84 1,241,718.40 1.86 1.92 O Issuer total 2,000,000.00 2,000,000.00 2.98 2,010,765.25 3.01 1.73 3 4t A 15 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of December 31 , 2016 N %usip Description Coupon Maturity Call date S&P Moody Par value or Historical %Portfolio Market %Portfolio Effective date rating rating shares cost hist cost value mkt value dur(yrs) US Bancorp 91159HHE3 US BANCORP 1.95% 1.950 11/15/2018 10/15/2018 A+ Al 2,000,000.00 2,021,700.00 3.01 2,010,176.00 3.01 1.81 Issuer total 2,000,000.00 2,021,700.00 3.01 2,010,176.00 3.01 1.81 Bank of New York Mellon Corp/The 064058AA8 BANK OF NEW YORK 1.969 06/20/2017 A Al 2,000,000.00 2,049,660.00 3.05 2,006,940.00 3.00 0.47 Issuer total 2,000,000.00 2,049,660.00 3.05 2,006,940.00 3.00 0.47 Wells Fargo&Co 94974BFD7 WELLS FARGO& 2.100 05/08/2017 A A2 2,000,000.00 1,989,720.00 2.96 2,005,666.00 3.00 0.35 .?..issuer total 2,000,000.00 1,989,720.00 2.96 2,005,666.00 3.00 0.35 a gntel Corp a 58140AL4 INTEL CORP 1.35% 1.350 12/15/2017 A+ Al 2,000,000.00 2,003,300.00 2.98 2,003,006.00 3.00 0.95 (Issuer total 2,000,000.00 2,003,300.00 2.98 2,003,006.00 3.00 0.95 International Business Machines Corp 459200HC8 IBM CORP 1.25% 1.250 02/06/2017 AA- Aa3 2,000,000.00 2,008,680.00 2.99 2,000,450.00 2.99 0.10 Issuer total 2,000,000.00 2,008,680.00 2.99 2,000,450.00 2.99 0.10 Toyota Motor Credit Corp 89236TDE2 TOYOTA MOTOR CREDIT 1.400 05/20/2019 AA- Aa3 2,000,000.00 2,006,040.00 2.99 1,977,308.00 2.96 2.34 -n Dssuer total 2,000,000.00 2,006,040.00 2.99 1,977,308.00 2.96 2.34 c 'hilip Morris International Inc 18172A58 PHILIP MORRIS INTL INC 1.125 08/21/2017 A A2 1,500,000.00 1,499,580.00 2.23 1,498,816.50 2.24 0.63 N issuer total 1,500,000.00 1,499,580.00 2.23 1,498,816.50 2.24 0.63 -J fif 3 a 16 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of December 31 , 2016 usip Description Coupon Maturity Call date S&P Moody Par value or Historical %Portfolio Market %Portfolio Effective V date rating rating shares cost hist cost value mkt value dur(yrs) General Electric Co 36962G7J7 GENERAL ELECTRIC CO 1.250 05/15/2017 04/13/2017 AA- Al 500,000.00 501,320.00 0.75 499,872.75 0.75 0.36 36962G6K5 GENERAL ELECTRIC CO 1.600 11/20/2017 AA- Al 982,000.00 988,461.56 1.47 984,621.94 1.47 0.88 Issuer total 1,482,000.00 1,489,781.56 2.22 1,484,494.69 2.22 0.71 Chevron Corp 166764AE0 CHEVRON CORP 1.718% 1.718 06/24/2018 05/24/2018 AA- Aa2 1,000,000.00 1,007,100.00 1.50 1,003,062.00 1.50 1.43 Issuer total 1,000,000.00 1,007,100.00 1.50 1,003,062.00 1.50 1.43 Apple Inc ):p37833AM2 APPLE INC 1.05% 1.050 05/05/2017 AA+ Aa1 1,000,000.00 1,001,410.00 1.49 1,000,702.00 1.50 0.34 c°'�ssuertotal 1,000,000.00 1,001,410.00 1.49 1,000,702.00 1.50 0.34 Charles Schwab Corp/The c-008513AK1 CHARLES SCHWAB CORP 1.500 03/10/2018 02/10/2018 A A2 1,000,000.00 998,740.00 1.49 1,000,236.00 1.50 1.15 Issuer total 1,000,000.00 998,740.00 1.49 1,000,236.00 1.50 1.15 American Honda Finance Corp 02665WAT8 AMERICAN HONDA 1.500 03/13/2018 A+ Al 1,000,000.00 999,720.00 1.49 999,858.00 1.50 1.18 Issuer total 1,000,000.00 999,720.00 1.49 999,858.00 1.50 1.18 John Deere Capital Corp c s4422ERW1 JOHN DEERE CAPITAL 1.200 10/10/2017 A A2 1,000,000.00 1,000,000.00 1.49 999,346.00 1.50 0.77 §ssuer total 1,000,000.00 1,000,000.00 1.49 999,346.00 1.50 0.77 -rand total 66,922,000.00 �n ,:.e:., :��_...• ..�... . z . ate. ;. � �., .�,,, �. ._._ems, ,. ......a �.Tr .... ... N O V CD 3 A 17 SECURITIES PURCHASED CITY OFPOWA.Y For the period December 1 , 2016 - December 31 , 2016 oCusip/Description/Broker Trade date Coupon Maturity/ Par value or Unit cost Principal Accrued Settle date Call date shares cost interest purchased Government Agencies 3133EGM51 12/05/2016 1.650 12/01/2020 1,000,000.00 99.70 (996,971.00) (229.17) FEDERAL FARM CREDIT BANK 1.65%01/12/2020 12/06/2016 WELLS FARGO SECURITIES INTL LTD , CtY�K.r►1'1'i @ri et1C1eS ,.. w, . .;. � ...., ...:.. z.:...: �_.�.,- .�. �'• � �. �.. n 3 lD n T CD C- C" N N CD 3 18 TRANSACTION REPORT CITY OF POWAY For the period December 1 , 2016 - December 31 , 2016 A %rade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction tota nettle date shares gain(loss) 12/05/2016 3133EGM51 Bought Government Agencies FEDERAL FARM CREDIT BANK 12/01/2020 1,000,000.00 0.00 (996,971.00) (229.17) (997,200.17 12/06/2016 12/14/2016 3135G0G72 Income Government Agencies FANNIE MAE 1.125% 12/14/2018 1,500,000.00 0.00 0.00 8,437.50 8,437.5( 12/14/2016 12/15/2016 458140AL4 Income Corporate Bonds INTEL CORP 1.35%15/12/2017 12/15/2017 2,000,000.00 0.00 0.00 13,500.00 13,500.0( 12/15/2016 12/15/2016 738798BG1 Income Municipal/Provincial Bonds POWAY CA REDEV AGY 06/15/2018 765,000.00 0.00 0.00 6,808.50 6,808.5( 12/15/2016 12/15/2016 738798BH9 Income Municipal/Provincial Bonds POWAY CA REDEV AGY 12/15/2018 1,235,000.00 0.00 0.00 12,658.75 12,658.7! 12/15/2016 12/18/2016 3133EEFE5 Income Government Agencies FEDERAL FARM CREDIT BANK 12/18/2017 1,000,000.00 0.00 0.00 5,625.00 5,625.0( 12/18/2016 12/20/2016 064058AA8 Income Corporate Bonds BANK OF NEW YORK MELLON 06/20/2017 2,000,000.00 0.00 0.00 19,690.00 19,690.0( 2/20/2016 2/24/2016 166764AE0 Income Corporate Bonds CHEVRON CORP 1.718% 06/24/2018 1,000,000.00 0.00 0.00 8,590.00 8,590.0( 312/24/2016 al 2/27/2016 3130A5M55 Income Government Agencies FEDERAL HOME LOAN BANK 06/27/2018 1,000,000.00 0.00 0.00 6,000.00 6,000.0( c9 2/27/2016 12/30/2016 3136G4DA8 Income Government Agencies FANNIE MAE 1.2%30/12/2019 12/30/2019 1,000,000.00 0.00 0.00 3,000.00 3,000.0( 12/30/2016 eD Fs c $ N 0 V tD 3 A 19 ADDITIONAL INFORMATION CITY OFPOWAY As of December 31 , 2016 ORast performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed(this may partly be due to exchange rate changes)and investors may not get %ack the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates.Investment returns fluctuate due to changes ,yi market conditions.Investment involves risk,including the possible loss of principal.No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for -four reference only and is being provided in response to your specific request and has been obtained from sources believed to be reliable;however,no representation is made regarding its accuracy or completeness.This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted.This document should not be duplicated,amended,or forwarded to a third party without consent from Insight.This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through four different SEC-registered investment advisers using the brand Insight Investment: Cutwater Asset Management Corp.(CAMC),Cutwater Investor Services Corp.(CISC),Insight North America LLC(INA)and Pareto Investment Management Limited(PIML).The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively)use the corporate brand Insight Investment and may be referred to as Insight,Insight Group or Insight Investment. Both CISC and CAMC are investment advisers registered with the Securities and Exchange Commission(SEC),under the Investment Advisers Act of 1940,as amended.Registration with the SEC does not imply a certain level of skill or training. You may request,without charge,additional information about Insight.Moreover,specific information relating to Insights strategies,including investment advisory fees,may be obtained from CAMCs and CISCs Forms ADV Part 2A,which are available without charge upon request. Where indicated,performance numbers used in the analysis are gross returns.The performance reflects the reinvestment of all dividends and income.CAMC and CISC charge management fees on all portfolios managed and these fees will reduce the returns on the portfolios.For example,assume that$30 million is invested in an account with either CAMC or CISC,and this account achieves a 5.0%annual return compounded monthly,gross of fees, for a period of five years.At the end of five years that account would have grown to$38,500,760 before the deduction of management fees.Assuming management fees of 0.25%per year are deducted monthly from the account,the value at the end of the five year period would be$38,022,447.Actual fees for new accounts are dependent on size and subject to negotiation.CAMCS and CISC's investment advisory fees are discussed in Part 2A of thefirms Form ADV. Unless otherwise stated,the source of information is Insight.Any forecasts or opinions are Insights own at the date of this document(or as otherwise specified)and may change.Material in this publication is for general a'nformation only and is not advice,investment advice,or the recommendation of any purchase or sale of any security.Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled,as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will aemain in any fund,account,or strategy,or that a previously held security will not be repurchased.It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. or trading activity the Clearing broker will be reflected.In certain cases the Clearing broker will differ from the Executing broker. In calculating ratings distributions and weighted average portfolio quality,Insight assigns U.S Treasury and U.S agency securities a quality rating based on the methodology used within the respective benchmark index.When Moodys,S&P and Fitch rate a security,Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic.Insight assigns all other securities the lower of Moodys and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices.There is no representation that such index is an appropriate benchmark for such comparison.You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs.The volatility of the indices may be materially different from that of the strategy.In addition,the strategys holdings may differ substantially from the securities that comprise the indices shown. The BofA Merrill Lynch 3 Mo US T-Bill index is an unmanaged market index of U.S.Treasury securities maturing in 90 days that assumes reinvestment of all income. The BofA Merrill Lynch 6 Mo US T-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. he BofA Merrill Lynch Current 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note.The index is rebalanced monthly.In order to qualify for inclusion,a 1-year note 'rust be auctioned on or before the third business day before the last business day of the month. c 2/fhe BofA Merrill Lynch Current 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note.The index is rebalanced monthly.In order to qualify for inclusion,a 3-year note 'must be auctioned on or before the third business day before the last business day of the month. N the BofA Merrill Lynch Current 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note.The index is rebalanced monthly.In order to qualify for inclusion,a 5-year note onust be auctioned on or before the third business day before the last business day of the month. _The BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S.Government having a maturity of at least one year and less than three years. r.. co 3rhe BofA Merrill Lynch 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S.Government having a maturity of at least one year and less than five years. -insight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. 20 ADDITIONAL INFORMATION CITY OFPOWAY As of December 31 , 2016 insight is a group of wholly owned subsidiaries of The Bank of New York Mellon Corporation.BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference Mhe Corporation as a whole or its various subsidiaries generally.Products and services may be provided under various brand names and in various countries by subsidiaries,affiliates and joint ventures of The Bank of New York ellon Corporation where authorized and regulated as required within each jurisdiction.Unless you are notified to the contrary,the products and services mentioned are not insured by the FDIC(or by any governmental entity) "ind are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates.The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. ©2016 Insight Investment.All rights reserved. a 3 co r. n CD a 0) N 0 V -I. CD 3 21 City of Poway Investments Et Cash with Fiscal Agent; Non-Managed Investments; General, Payroll Et Petty Cash ••1 Part � Investments Et Cash with Fiscal Agents® 12/31/16 :Setti'ement Yield to' Days to- Total --Face 1' ' - BOok i— --market r--Unrealized i INVESTMENT DESCRIPTION L Date Maturity Maturity Investment Value Value , Value Gain(Loss) i 1st Am Gov't Obligations Money Mkt Fd ' 12/31/16 1 0.01%1: 11 1 100.00%11�,----- r $'+^'�"" '" vk $'+^' """ '" r +"�" | � x « � r v ox x 1 Paying Agent or Uninvested Cash a DITs F-- '' ���� - - " ^, _- v " ----1 Total|nve�men�and Cash*bh��a Agent | ' ' ' ' ' �X $« 25 880.-761: U o ~�� � ---' ----'-�~�~-'~- ----- Part II Non-Managed Investments® 12/31/16 1 .?.: [5-e-it-lenient [Yield-to [Days to 1:-%o-f-Total -Face — ---13-oo-k -Mark-e-t ' --tin-re.alIzed sa INVESTMENT DESCRIPTION Date Maturity Maturity ,Investment Value Value Value Gain(Loss) CI | : ` ^ ~- ~— — Part III -General, Payroll a Petty Cash® 12/31/16 1 General Cash (Union Bank) r 69 32 Payroll Cash (Union Bank) 1 - - - —1 r_ $20,000.00 1, _ _ Emergency Cash (Union Bank) I - - - II Grant Cash (Union Bank) 1 - - - - - 1 r so.00 »~ I ' ' �� �_~�~�~ Total~ —~'h " xo s623,132. �; ^o ^D 74 Er it -.p.