Investment Advisors
Steven Alexander, CTP, CGFO, CPPT, Managing DirectorRobert Cheddar, CFA, Chief Credit Officer, Managing DirectorD. Scott Stitcher, CFA, DirectorRichard Pengelly, CFA, CTP, DirectorRebecca Geyer, CTP, Senior AnalystCody Raulerson, Analyst
PFM Asset Management LLC
One Keystone Plaza, Suite 300North Front & Market Streets
Harrisburg, PA 17101-2044717.232.2723
717.233.6073 fax
300 South Orange AvenueSuite 1170
Orlando, FL 32801407.648.2208
407.648.1323 fax
Investment Performance Review For the Quarter Ended March 31, 2017
Page 1 of 50
TABLE OF CONTENTS For the Quarter Ended March 31, 2017
Tab I
Market Update
Tab II
Executive Summary
Pooled Funds
Long Term Pooled Funds
Tab III
Asset Allocation Chart
Important Disclosures
2017 PFM Asset Management LLCPage 2 of 50
Tab I
2017 PFM Asset Management LLCPage 3 of 50
QUARTERLY MARKET SUMMARYFor the Quarter Ended March 31, 2017
Fixed Income Management
S U M M A R Y• The “Trump trade” dominated markets for much of the quarter pushing interest
rate and equity prices higher, as the Trump administration and the Republican Party continued to push a bold agenda that promised new jobs, lower taxes, deregulation, and massive infrastructure spending.
• On March 15, with almost unanimous certainty from the market, the FederalOpen Market Committee (FOMC) raised the federal funds target range by0.25% to a range of 0.75% to 1.00%. The FOMC also released updatedeconomic forecasts and a new “dot plot.” These were largely unchanged fromthe forecasts released in December.
• Central banks in the developed world outside of the United States continuedto apply highly accommodative monetary policies as economic growth andinflation remained subdued. As a result, sovereign bond yields were at or nearhistoric lows, with yields throughout Europe and Japan below 0%. Emergingmarkets experienced a resurgence this past quarter, after reeling from lack ofpositive investor sentiment, turning in a strong begining to 2017.
E C O N O M I C S N A P S H O T• The pace of U.S. economic expansion slowed in the fourth quarter of 2016.
Measurements of growth in the first quarter 2017 are forecasted to slow further, however, the labor market remained strong, consumer confidence continued to soar, business surveys picked up, and the housing market returned to near pre-crisis levels as the market continues to digest the size and scope of the Trump administration’s proposed policies.
• U.S. gross domestic product (GDP) grew at a rate of 2.1% in the fourthquarter of 2016, a slowdown from the third quarter’s pace of 3.5%. Thedeceleration reflected downturns in exports and federal government spending,and a deceleration in business investment. First quarter estimates are callingfor further slowing in the pace of expansion to below 1.5% as consumerspending declines and business investment remains muted.
• The labor market added over 500,000 jobs in the first quarter as theunemployment rate declined to a decade low of 4.5% with the labor forceparticipation rate rising to 63% for the first time in a year. Wage growthremained firm in the quarter, increasing at an annual rate of more than 2.5%during all three months.
• Confidence among Americans grew as the Conference Board’s March readingincreased to its highest level since the end of 2000. Manufacturing extendedits expansion during the quarter with the ISM manufacturing PMI rebounding,
after contracting over 2016 year-end, to its highest level since the end of 2014. On the housing front, existing home sales reached pre-crisis levels, selling at an annual rate of 5.69 million to start the year.
I N T E R E S T R A T E S• Short-term (under five years) yields ended the first quarter higher, reflecting
the Fed’s March rate hike, while medium to long-term yields declined amid subdued inflation expectations. For much of the quarter, yields remained range bound until entering an upward trend at the start of March in anticipation of the expected FOMC March rate hike. They declined as the Fed reiterated its expectation for gradual tightening and the ability of the Trump administration to enact bold, pro-growth policies came into question. The 2-year Treasury yield ended the quarter only seven basis points over December 31, while the yield on the 10-year Treasury fell 6 basis points.
• In the money market space, shorter-term Treasury yields rose as theexpectation for a Fed rate hike gained certainty. Yields on commercial paperand certificates of deposit did not increase. However, yields on short-termcredit instruments remained elevated and offered incremental yield.
S E C T O R P E R F O R M A N C E• U.S. Treasury indexes posted positive returns in the first quarter of the year,
the first positive quarter since the second quarter of 2016. Returns were largely generated by income rather than price appreciation as yields were little changed.
• Federal agency yield spreads remained near historically tight levelsthroughout the quarter as the supply-demand imbalance continued. Thesector outperformed comparable maturity Treasuries for the third quarter in arow.
• Corporate yield spreads continued to tighten during the quarter, reachingmulti-year lows, before drifting mildly wider at the end of March. The sectorgenerated strong outperformance relative to comparable maturity Treasuries,as the sector turned in the sixth straight quarter of outperformance.
• Mortgage-backed securities (MBS) generally underperformed Treasuries dueto duration extensions, and headline risk surrounding the potential reductionin the Fed’s balance sheet holdings.
• Asset-backed securities (ABS) strongly outperformed Treasuries, as AAA-rated tranches, in our view, continued to offer good value, adding to returnsand diversification.
© 2017 PFM Asset Management LLCPage 4 of 50
QUARTERLY MARKET SUMMARYFor the Quarter Ended March 31, 2017
Fixed Income Management
Economic Snapshot
Labor Market Dec '16 Mar '16
Unemployment Rate Feb'17 4.7% 4.7% 5.0%
Change In Non-Farm Payrolls Feb'17 235,000 155,000 225,000
Average Hourly Earnings (YoY) Feb'17 2.8% 2.9% 2.5%
Personal Income (YoY) Feb'17 4.6% 3.6% 3.6%
Initial Jobless Claims (week) 3/24/17 258,000 241,000 275,000
Growth
Real GDP (QoQ SAAR) 2017Q4 2.1% 3.5% 0.9%
GDP Personal Consumption (QoQ SAAR) 2017Q4 3.5% 3.0% 2.3%
Retail Sales (YoY) Feb'17 5.7% 4.4% 1.7%
ISM Manufacturing Survey (month) Mar'17 57.2 54.5 51.7
Existing Home Sales SAAR (month) Feb'17 5.48 mil. 5.51 mil. 5.39 mil.
Inflation / Prices
Personal Consumption Expenditures (YoY) Feb'17 2.1% 1.6% 0.8%
Consumer Price Index (YoY) Feb'17 2.7% 2.1% 0.9%
Consumer Price Index Core (YoY) Feb'17 2.2% 2.2% 2.2%
Crude Oil Futures (WTI, per barrel) Mar'17 $50.60 $53.72 $38.34
Gold Futures (oz.) Mar'17 $1,247 $1,152 $1,234
Latest Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
Real GDP (QoQ)
Consumer Price Index
-1%
0%
1%
2%
3%
Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17
CPI (YoY) Core CPI (YoY)
0
125K
250K
375K
4%
5%
6%
7%
Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17
Change In Non-Farm Payrolls Unemployment Rate
-2%
0%
2%
4%
6%
Dec '13 Jun '14 Dec '14 Jun '15 Dec '15 Jun '16 Dec '16
2
2
1
1
1. Data as of Second Quarter 2016
2. Data as of Third Quarter 2015
Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil
Source: Bloomberg.
© 2017 PFM Asset Management LLC
QUARTERLY MARKET SUMMARY
Page 5 of 50
QUARTERLY MARKET SUMMARYFor the Quarter Ended March 31, 2017
Fixed Income Management
Source: Bloomberg.
Interest Rate Overview
U.S. Treasury Note Yields U.S. Treasury Yield Curve
U.S. Treasury Yields Yield Curves as of 3/31/17
0%
1%
2%
3%
4%
3-mo
1-yr2-yr3-yr
5-yr
7-yr
10-yr
30-yr
Yiel
d
MaturityMarch 31, 2017 December 31, 2016 March 31, 2016
Maturity March 31,2017
December 31,2016
Change over
Quarter
March 31,2016
Change over Year
3-month 0.75% 0.50% 0.25% 0.20% 0.55%
1-year 1.02% 0.81% 0.21% 0.58% 0.44%
2-year 1.26% 1.19% 0.07% 0.72% 0.54%
5-year 1.92% 1.93% (0.01%) 1.21% 0.71%
10-year 2.39% 2.45% (0.06%) 1.77% 0.62%
30-year 3.01% 3.07% (0.06%) 2.61% 0.40%
0%
1%
2%
3%
4%
5%
3-mo
1-yr2-yr3-yr
5-yr
7-yr
10-yr
25-yr
30-yr
Yiel
d
MaturityU.S. Treasury Federal Agency Industrial Corporates, A Rated
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Sep '16 Oct '16 Nov '16 Dec '16
Yiel
d
2-Year 5-Year 10-Year
© 2017 PFM Asset Management LLCPage 6 of 50
QUARTERLY MARKET SUMMARYFor the Quarter Ended March 31, 2017
Fixed Income Management
Source: BofA Merrill Lynch Indices.
March 31, 2017 Duration Yield 3 Month 1 Year 3 Years1-3 Year Indices
U.S. Treasury 1.89 1.27% 0.26% 0.25% 0.72%
Federal Agency 1.79 1.37% 0.30% 0.41% 0.83%
U.S. Corporates, A-AAA rated 1.93 1.92% 0.60% 1.32% 1.41%
Agency MBS (0 to 3 years) 2.08 1.98% 0.38% 0.40% 1.13%
Taxable Municipals 1.89 2.24% 0.70% 2.26% 1.92%
1-5 Year IndicesU.S. Treasury 2.70 1.48% 0.37% (0.10%) 1.14%
Federal Agency 2.27 1.51% 0.41% 0.28% 1.16%
U.S. Corporates, A-AAA rated 2.77 2.19% 0.80% 1.29% 1.96%
Agency MBS (0 to 5 years) 3.29 2.25% 0.59% 0.39% 2.00%
Taxable Municipals 2.67 2.36% 0.61% 2.12% 2.49%
Master Indices (Maturities 1 Year or Greater)U.S. Treasury 6.25 1.92% 0.68% (1.47%) 2.32%
Federal Agency 3.91 1.84% 0.74% 0.11% 2.00%
U.S. Corporates, A-AAA rated 6.98 3.01% 1.11% 1.65% 3.54%
Agency MBS (0 to 30 years) 4.90 2.81% 0.46% 0.18% 2.66%
Taxable Municipals 3.81 2.81% 0.59% 1.49% 3.13%
As of 3/31/17 Returns for Periods ended 3/31/17
Returns for periods greater than one year are annualized.
© 2017 PFM Asset Management LLC
BofA Merrill Lynch Index Returns
Page 7 of 50
QUARTERLY MARKET SUMMARYFor the Quarter Ended March 31, 2017
Fixed Income Management
D I S C L O S U R E S PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.For more information regarding PFM’s services or entities, please visit www.pfm.com.The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities.
© 2017 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.
© 2017 PFM Asset Management LLCPage 8 of 50
Tab II
2017 PFM Asset Management LLCPage 9 of 50
EXECUTIVE SUMMARY For the Quarter Ended March 31, 2017
The Portfolios are of high credit quality and invested in U.S. Treasury, Federal Agency, and commercial paper securities.
The Short Term Portfolio’s quarter ending yield to maturity at cost of 1.35% outperformed the benchmark’s yield of 0.62%by 0.73%.
The Long Term Fund Portfolio’s quarterly total return performance of 0.26% matched the benchmark performance of0.26%. For the last 12 months the Portfolio’s total return performance of 0.32% outperformed the benchmarkperformance of 0.25%.
PFM continued to actively manage the Long Term Fund Portfolio during the quarter and found value in the market, takingadvantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $880 in gains onsales (based on amortized cost) during the quarter. PFM is continually in the market monitoring for opportunities to addvalue to the Portfolio.
Yields remained within a narrow range through the first couple months before rising strongly in anticipation of the MarchFOMC rate hike as Fed officials made a concerted effort to telegraph expectations. Yields on the short-end of the curveended the quarter higher, reflecting the rate hike, while long-term yields declined alongside future inflation expectations.
We expect the Fed to remain on track to make two additional rate hikes in 2017, matching the three hikes projected for2017 by the Committee’s “dot plot.” In addition, a potential reduction in the size of the Fed’s balance sheet later in theyear could have significant implications for the markets.
Since yields are currently stable and we expect no action at the next FOMC meeting in May, we are targeting portfoliodurations to closely match that of benchmarks. We will continue to revisit this position regularly, especially in light of thepotential for higher yields later in the year.
We will continue to monitor incoming economic data, Fed policy, and market relationships, adjusting portfolio positioningas needed. This will include monitoring and assessing the policies of the incoming Trump administration for their impacton economic and market conditions.
2017 PFM Asset Management LLCPage 10 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS Portfolio Statistics
Amortized Cost1,2,3 Amortized Cost1,2,3 Market Value1,2,3 Market Value1,2,3 Duration (Years)Account Name March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017Pooled Funds $1,093,285 $1,098,044 $1,093,307 $1,098,598 0.450 Long Term Pooled Fund 13,467,076 13,475,084 13,423,529 13,432,367 1.800 TexPool 39,526,243 37,650,828 39,526,243 37,650,828 0.003 American National Bank of Texas 6,196,626 9,613,150 6,196,626 9,613,150 0.003 Total $60,283,230 $61,837,106 $60,239,704 $61,794,942 0.411
Yield to Maturity Yield to Maturity Yield to Maturity Yield to Maturityat Cost4 at Cost4 at Market at Market Duration (Years)
Account Name March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 December 31, 2016Pooled Funds 1.35% 1.09% 1.34% 0.77% 0.160Long Term Pooled Fund 1.10% 1.04% 1.27% 1.15% 1.820TexPool5 0.62% 0.46% 0.62% 0.46% 0.003American National Bank of Texas 0.00% 0.00% 0.00% 0.00% 0.003Weighted Average YTM 0.68% 0.52% 0.72% 0.54% 0.401
Monthly Interest earnings YTD6, 7
October 2016 $3,018 April 2017 $0November 2016 ($42,137) May 2017 $0December 2016 $20,912 June 2017 $0
January 2017 $32,514 July 2017 $0February 2017 $32,141 August 2017 $0
March 2017 $28,519 September 2017 $0
Total Fiscal Year Net Earnings $74,966
Notes:1. On a trade-date basis, including accrued interest.2. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances.3. Excludes any money market fund/cash balances held in custodian account.4. Past performance is not indicative of future results.
5. TexPool yield is obtained from www.texpool.com.
6. Earnings are calculated on a cash basis and are subject to the receipt of coupon payments, maturities within the portfolio, and money market fund balances.
© 2017 PFM Asset Management LLC
Summary Portfolio Statistics
Page 11 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS Amortized Cost and Market Value Analysis
12/31/2016 12/31/2016 12/31/2016 3/31/2017 3/31/2017 3/31/2017 CHANGE IN
BANK/MONEY MARKET FUNDS MATURITY ACCRUED AMORTIZED MARKET ACCRUED AMORTIZED MARKET MARKETCUSIP DESCRIPTION PAR COUPON DATE INTEREST COST VALUE INTEREST COST VALUE VALUE
TEXPOOL TEXPOOL $0.00 $37,650,828.03 $37,650,828.03 $0.00 $39,526,242.82 $39,526,242.82 4.98%BANK ACCT AMERICAN NATIONAL BANK OF TEXAS 0.00 9,613,149.91 9,613,149.91 0.00 6,196,625.59 6,196,625.59 -35.54%
$0.00 $47,263,977.94 $47,263,977.94 $0.00 $45,722,868.41 $45,722,868.41 -3.26%
TOTAL $0.00 $47,263,977.94 $47,263,977.94 $0.00 $45,722,868.41 $45,722,868.41 -3.26%
POOLED FUNDSCOMMERCIAL PAPER06538BQ14 BANK OF TOKYO MITS UFJ LTD COMM PAPER $550,000.00 0.000 03/01/17 $0.00 $548,900.30 $549,259.15 $0.00 $0.00 $0.00 0.00%46640PQ14 BNP PARIBARS COMM PAPER 550,000.00 0.000 03/01/17 0.00 549,143.68 549,338.35 0.00 0.00 0.00 0.00%06538BWC3 BANK OF TOKYO MITS UFJ LTD COMM PAPER 550,000.00 0.000 09/12/17 0.00 0.00 0.00 0.00 546,542.33 546,609.25 0.00%09659BWC0 BNP PARIBARS COMM PAPER 550,000.00 0.000 09/12/17 0.00 0.00 0.00 0.00 546,742.78 546,697.80 0.00%
$2,200,000 $0.00 $1,098,043.98 $1,098,597.50 $0.00 $1,093,285.11 $1,093,307.05 -0.48%
TOTAL $2,200,000 $0.00 $1,098,043.98 $1,098,597.50 $0.00 $1,093,285.11 $1,093,307.05 -0.482%
LONG TERM POOLED FUNDFED AGY BOND/NOTE3137EADZ9 FREDDIE MAC NOTES 500,000 1.125 04/15/19 1,187.50 501,863.69 497,976.50 2,593.75 501,662.26 497,580.50 -0.08%3135G0ZE6 FNMA NOTES 600,000 1.750 06/20/19 320.83 611,323.00 606,291.60 2,945.83 610,187.94 604,861.80 -0.24%3137EAEB1 FHLMC REFERENCE NOTE 600,000 0.875 07/19/19 2,347.92 597,747.22 592,074.60 1,050.00 597,965.83 592,709.40 0.11%3135G0N33 FNMA BENCHMARK NOTE 600,000 0.875 08/02/19 2,172.92 597,615.60 591,665.40 860.42 597,843.65 592,212.00 0.09%3135G0P49 FNMA NOTES 900,000 1.000 08/28/19 2,975.00 898,120.49 890,001.90 775.00 898,292.37 890,439.30 0.05%
$3,200,000 $9,004.17 $3,206,670.00 $3,178,010.00 $8,225.00 $3,205,952.05 $3,177,803.00 -0.01%US TSY BOND/NOTE912828WP1 US TREASURY NOTES 210,000 0.875 6/15/2017 617.07 1,509,819.59 1,511,769.72 540.14 209,988.59 210,032.76 -86.11%912828UU2 US TREASURY NOTES 2,500,000 0.750 3/31/2018 4,790.52 2,493,024.65 2,492,772.50 51.23 2,494,402.35 2,491,797.50 -0.04%912828VK3 US TREASURY NOTES 1,000,000 1.375 6/30/2018 37.98 1,003,847.53 1,004,688.00 3,456.49 1,003,212.20 1,002,891.00 -0.18%912828WD8 US TREASURY NOTES 490,000 1.250 10/31/2018 1,049.03 493,926.73 490,784.98 2,571.82 493,396.41 490,382.69 -0.08%912828A34 US TREASURY NOTES 1,450,000 1.250 11/30/2018 1,593.41 1,450,288.71 1,452,095.25 6,074.86 1,450,251.75 1,450,962.80 -0.08%912828SH4 US TREASURY NOTES 1,950,000 1.375 2/28/2019 9,110.32 1,966,320.33 1,955,483.40 2,331.52 1,964,470.83 1,954,646.85 -0.04%912828WL0 US TREASURY NOTES 435,000 1.500 5/31/2019 573.63 440,965.53 437,004.92 2,186.95 440,359.86 436,886.16 -0.03%912828G61 US TREASURY NOTES 880,000 1.500 11/30/2019 1,160.44 882,284.68 881,821.60 4,424.18 882,094.55 881,478.40 -0.04%912828J84 US TREASURY NOTES 800,000 1.375 3/31/2020 0.00 0.00 0.00 30.05 792,738.80 796,531.20 0.00%912828N63 US TREASURY N/B 500,000 1.125 1/15/2019 0.00 0.00 0.00 1,180.94 499,135.81 499,043.00 0.00%
$10,215,000 $18,932.40 $10,240,477.75 $10,226,420.37 $22,848.18 $10,230,051.15 $10,214,652.36 -0.12%
TOTAL $13,415,000 $27,936.57 $13,447,147.75 $13,404,430.37 $31,073.18 $13,436,003.20 $13,392,455.36 -0.089%
TOTAL PORTFOLIO $15,615,000 $27,936.57 $61,809,169.67 $61,767,005.81 $31,073.18 $60,252,156.72 $60,208,630.82 -2.52%
© 2017 PFM Asset Management LLC
Summary Portfolio Amortized Cost and Market Value Analysis
Page 12 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS Composition and Credit Quality Characteristics
Security Type1 March 31, 2017 % of Portfolio December 31, 2016 % of Portfolio
U.S. Treasuries $10,237,501 17.0% $10,245,353 16.6%
Federal Agencies $3,186,028 5.3% 3,187,014 5.2%
Commercial Paper $1,093,307 1.8% 1,098,598 1.8%
Certificates of Deposit 0 0.0% 0 0.0%
Bankers Acceptances 0 0.0% 0 0.0%
Repurchase Agreements 0 0.0% 0 0.0%
Municipal Obligations 0 0.0% 0 0.0%
Corporate Notes/Bonds 0 0.0% 0 0.0%
American National Bank of Texas 6,196,626 10.29% 9,613,150 15.6%
TexPool 39,526,243 65.6% 37,650,828 60.9%
Totals $60,239,704 100.0% $61,794,943 100.0%
Notes:
1. End of quarter trade-date market values of portfolio holdings, including accrued interest.
2. Credit rating of securities held in portfolio, exclusive of money market fund, bank or LGIP. Standard & Poor's is the source of the credit ratings.
© 2017 PFM Asset Management LLC
Summary Portfolio Composition and Credit Quality Characteristics
U.S. Treasuries
16.99%
Federal Agency
Obligations5.29%
Commercial Paper1.81%
American National Bank
of Texas10.29%
TexPool65.61%
Portfolio Compositionas of 03/31/17
AA+24.84%
A-1+ (Short-term)1.02%
A-1 (Short-term)1.02%
TexPool73.13%
Credit Quality Distribution² as of 03/31/17
Page 13 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS Maturity Distribution
Maturity Distribution1 March 31, 2017 December 31, 2016
Overnight (Money Market Fund) $45,722,868 $47,263,978
Under 6 Months 1,303,880 2,610,984
6 - 12 Months 2,491,849 0
1 - 2 Years 5,413,542 5,447,812
2 - 3 Years 4,511,004 6,472,168
3 - 4 Years 796,561 0
4 - 5 Years 0 0
5 Years and Over 0 0
Totals $60,239,704 $61,794,942
Notes:
1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.
© 2017 PFM Asset Management LLC
Summary Portfolio Maturity Distribution
75.9%
2.2% 4.1%9.0% 7.5%
1.3% 0.0% 0.0%
76.5%
4.2%0.0%
8.8% 10.5%
0.0% 0.0% 0.0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overnight Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5 Years and Over
Per
cent
age
of T
otal
Por
tfolio
Portfolio Maturity Distribution¹
March 31, 2017
December 31, 2016
Page 14 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS General Ledger Entries
Earnings Calculation1/31/2017 Market Value Basis Source Document
January Market Value 58,230,811.52 1 Account Summary PageJanuary Accrued Interest 37,925.81 2 Account Summary Page
Less (Purchases & Deposits) (6,576,679.71) 3 Security Transactions & InterestLess Purchased Interest (2,674.93) 4 Security Transactions & Interest
Add (Sales, Maturities, Paydowns, Withdrawals) 500,546.88 5 Security Transactions & InterestAdd Interest Receipts 25,367.90 6 Security Transactions & Interest
Less December Market Value (52,153,855.90) 7 Account Summary PageLess December Accrued Interest (27,936.57) 8 Account Summary Page
Earnings 33,505.00
Change in Investment Market Value 6,076,955.62 (1 - 7)
Change in Accrued Interest 9,989.24 (2 - 8)
Change in Cash (6,053,439.86) (sum 3 thru 6)
Investment EntriesTo Record Investment Activity Debit Credit Source Document
Cash 6,076,132.83 Security Transactions & InterestInvestments 6,076,955.62 Amortization/Accretion
Investment Income 822.79 EarningsTo record investment income/changes
Cash 22,692.97 Security Transactions & InterestAccrued Interest 9,989.24 Accrued Interest Difference
Investment Income 32,682.21 EarningsTo record interest income/changes
Notes:
1. Earnings are calculated using Market Value. This includes unrealized gains and losses, and income.
© 2017 PFM Asset Management LLC
Summary Portfolio General Ledger Entries1
Page 15 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS General Ledger Entries
Earnings Calculation2/28/2017 Market Value Basis Source Document
February Market Value 52,138,160.10 1 Account Summary PageFebruary Accrued Interest 29,492.03 2 Account Summary Page
Less (Purchases & Deposits) (5,692,730.01) 3 Security Transactions & InterestLess Purchased Interest - 4 Security Transactions & Interest
Add (Sales, Maturities, Paydowns, Withdrawals) 11,807,992.94 5 Security Transactions & InterestAdd Interest Receipts 38,538.92 6 Security Transactions & Interest
Less January Market Value (58,250,492.08) 7 Account Summary PageLess January Accrued Interest (37,925.81) 8 Account Summary Page
Earnings 33,036.09
Change in Investment Market Value -6,112,331.98 (1 - 7)
Change in Accrued Interest (8,433.78) (2 - 8)
Change in Cash 6,153,801.85 (sum 3 thru 6)
Investment EntriesTo Record Investment Activity Debit Credit Source Document
Cash 6,115,262.93 Security Transactions & InterestInvestments 6,112,331.98 Amortization/Accretion
Investment Income 2,930.95 EarningsTo record investment income/changes
Cash 38,538.92 Security Transactions & InterestAccrued Interest 8,433.78 Accrued Interest Difference
Investment Income 30,105.14 EarningsTo record interest income/changes
Notes:
1. Earnings are calculated using Market Value. This includes unrealized gains and losses, and income.
© 2017 PFM Asset Management LLC
Summary Portfolio General Ledger Entries1
Page 16 of 50
For the Quarter Ended March 31, 2017CITY OF ROWLETT, TEXAS General Ledger Entries
Earnings Calculation3/31/2017 Market Value Basis Source Document
March Market Value 53,991,347.21 1 Account Summary PageMarch Accrued Interest 31,073.18 2 Account Summary Page
Less (Purchases & Deposits) (4,078,467.69) 3 Security Transactions & InterestLess Purchased Interest (4,865.38) 4 Security Transactions & Interest
Add (Sales, Maturities, Paydowns, Withdrawals) 2,238,846.55 5 Security Transactions & InterestAdd Interest Receipts 37,296.40 6 Security Transactions & Interest
Less February Market Value (52,156,267.77) 7 Account Summary PageLess February Accrued Interest (29,492.03) 8 Account Summary Page
Earnings 29,470.47
Change in Investment Market Value 1,835,079.44 (1 - 7)
Change in Accrued Interest 1,581.15 (2 - 8)
Change in Cash (1,807,190.12) (sum 3 thru 6)
Investment EntriesTo Record Investment Activity Debit Credit Source Document
Cash 1,839,621.14 Security Transactions & InterestInvestments 1,835,079.44 Amortization/Accretion
Investment Income 4,541.70 EarningsTo record investment income/changes
Cash 32,431.02 Security Transactions & InterestAccrued Interest 1,581.15 Accrued Interest Difference
Investment Income 34,012.17 EarningsTo record interest income/changes
Notes:
1. Earnings are calculated using Market Value. This includes unrealized gains and losses, and income.
© 2017 PFM Asset Management LLC
Summary Portfolio General Ledger Entries1
Page 17 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Snapshot
Portfolio StatisticsAs of March 31, 2017
1,100,000
1,093,307
1,093,307
0
-
1,093,285
1.34%
1.35%
AAverage Credit: **
Yield at Cost:
Accrued Interest:
Cash:
Par Value:
Amortized Cost:
Total Market Value:
Yield at Market:
Security Market Value:
Effective Duration: 0.45 Years
Duration to Worst: 0.45 Years
Average Maturity: 0.45 Years
0.68%Benchmark Eff. Yield:
PFM -
Credit Quality (S&P Ratings)
100.0%A-1
0%
20%
40%
60%
80%
100%
0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years
100.0%
0.0% 0.0% 0.0% 0.0% 0.0%
Maturity Distribution
Sector Allocation
100.0%
CommercialPaper
2017 PFM Asset Management LLC
* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.
Account 75981500Page 18 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Performance
Portfolio Earnings
Quarter-Ended March 31, 2017
Market Value Basis Accrual (Amortized Cost) Basis
Net Purchases/Sales
Change in Value
Interest Earned
$1,098,597.50
($7,329.06)
$2,038.61
$0.00
$2,038.61
$1,093,307.05
$1,098,043.98
($7,329.06)
$2,570.19
$0.00
$2,570.19
$1,093,285.11
Portfolio Earnings
Beginning Value (12/31/2016)
Ending Value (03/31/2017)
2017 PFM Asset Management LLC Account 75981500Page 19 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector Allocation
As of March 31, 2017
Market Value ($) % of PortfolioSector
Commercial Paper 1,093,307 100.0%
Total 1,093,307 100.0%
100.0%
CommercialPaper
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981500Page 20 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector AllocationAs of March 31, 2017
Market Value ($)Sector % of Portfolio % of Benchmark
- 100.0% 1,093,307Commercial Paper
1,093,307 100.0% 0.0%Total
0%
20%
40%
60%
80%
100%
Commercial Paper
100.0%
0.0%
CITY OF ROWLETT POOLED FUNDS
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981500Page 21 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector Allocation
March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016
% of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM)
Commercial Paper 1.1 100.0% 1.1 100.0% 1.1 100.0% 1.1 100.0%
$1.1 100.0% $1.1 100.0% $1.1 100.0% $1.1 100.0%Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
March 2017 December 2016 September 2016 June 2016
Commercial Paper
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981500Page 22 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Maturity DistributionAs of March 31, 2017
>5
Years
4-5
Years
3-4
Years
2-3
Years
1-2
Years
0-1
Years
Yield
at MarketPortfolio/BenchmarkAverage
Maturity
CITY OF ROWLETT POOLED FUNDS 1.34% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.45 yrs
0%
20%
40%
60%
80%
100%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
100.0%
0.0% 0.0% 0.0% 0.0% 0.0%
CITY OF ROWLETT POOLED FUNDS
2017 PFM Asset Management LLC Account 75981500Page 23 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
As of March 31, 2017
Duration Distribution
> 5
YEARS4-5
YEARS
3-4
YEARS
2-3
YEARS
1-2
YEARS
0-1
YEARS
Effective
DurationPortfolio / Benchmark
CITY OF ROWLETT POOLED FUNDS 0.45 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0%
20%
40%
60%
80%
100%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
100%
0% 0% 0% 0% 0%
Distribution by Effective Duration
0%
20%
40%
60%
80%
100%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
100%
0% 0% 0% 0% 0%
Contribution to Portfolio Duration
2017 PFM Asset Management LLC Account 75981500Page 24 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Credit QualityAs of March 31, 2017
S&P Rating Market Value ($) % of Portfolio
100.0%$1,093,307A-1
Totals 100.0%$1,093,307
100.0%A-1
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981500Page 25 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Issuer DistributionAs of March 31, 2017
Market Value ($) % of PortfolioIssuer
BNP PARIBAS 546,698 50.0%
MITSUBISHI UFJ FINANCIAL GROUP INC 546,609 50.0%
1,093,307 100.0%Grand Total:
2017 PFM Asset Management LLC Account 75981500Page 26 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector/Issuer DistributionAs of March 31, 2017
% of SectorSector / Issuer Market Value ($) % of Total Portfolio
Commercial Paper
BNP PARIBAS 50.0% 50.0% 546,698
MITSUBISHI UFJ FINANCIAL GROUP INC 50.0% 50.0% 546,609
100.0% 100.0% 1,093,307 Sector Total
100.0% 1,093,307 Portfolio Total 100.0%
2017 PFM Asset Management LLC Account 75981500Page 27 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Activity
Quarterly Portfolio Transactions
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security DescriptionTransact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
BUY
3/16/17 3/17/17 550,000 06538BWC3 BANK OF TOKYO MITSU UFJ LTD COMM PAPER 9/12/17 546,226.08 1.39%0.00%
3/16/17 3/17/17 550,000 09659BWC0 BNP PARIBAS NY BRANCH COMM PAPER 9/12/17 546,444.86 1.31%0.00%
1,100,000 1,092,670.94Total BUY
MATURITY
3/1/17 3/1/17 550,000 46640PQ14 JP MORGAN SECURITIES LLC COMM PAPER 3/1/17 550,000.00 0.00 0.00%
3/1/17 3/1/17 550,000 06538BQ14 BANK OF TOKYO MITS UFJ LTD COMM PAPER 3/1/17 550,000.00 0.00 0.00%
1,100,000 1,100,000.00 0.00Total MATURITY
2017 PFM Asset Management LLC Account 75981500Page 28 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Activity
Quarterly Portfolio Transactions
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield
Realized
G/L (BV)Coupon
3/1/17 3/1/17 550,000.00 46640PQ14 JP MORGAN SECURITIES LLC COMM PAPERMATURITY 3/1/17 550,000.00 0.00 0.00%
3/1/17 3/1/17 550,000.00 06538BQ14 BANK OF TOKYO MITS UFJ LTD COMM
PAPER
MATURITY 3/1/17 550,000.00 0.00 0.00%
3/16/17 3/17/17 550,000.00 06538BWC3 BANK OF TOKYO MITSU UFJ LTD COMM
PAPER
BUY 9/12/17 (546,226.08) 1.39%0.00%
3/16/17 3/17/17 550,000.00 09659BWC0 BNP PARIBAS NY BRANCH COMM PAPERBUY 9/12/17 (546,444.86) 1.31%0.00%
TOTALS 7,329.06 0.00
2017 PFM Asset Management LLC Account 75981500Page 29 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Snapshot
Portfolio StatisticsAs of March 31, 2017
13,415,000
13,423,529
13,392,455
31,073
-
13,436,003
1.27%
1.10%
AAAverage Credit: **
Yield at Cost:
Accrued Interest:
Cash:
Par Value:
Amortized Cost:
Total Market Value:
Yield at Market:
Security Market Value:
Effective Duration: 1.80 Years
Duration to Worst: 1.80 Years
Average Maturity: 1.83 Years
PFM -
Credit Quality (S&P Ratings)
100.0%AA+
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years
20.2%
40.3%
33.6%
5.9%
0.0% 0.0%
Maturity Distribution
Sector Allocation
23.7%
FederalAgency/GSE
76.3%U.S. Treasury
2017 PFM Asset Management LLC
* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.
Account 75981504Page 30 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Performance
Portfolio Performance (Total Return)
Effective
DurationPortfolio/Benchmark
Annualized Return
10 Year1 Year 3 Year 5 YearSince Inception
(06/30/06) **
Current
Quarter
CITY OF ROWLETT LONG TERM POOLED
FUND
1.80 0.26% 1.95%0.32% 0.71% 0.61% 2.22%
BofA ML 1-3 Year U.S. Treasury Index 1.82 0.26% 2.00%0.25% 0.72% 0.64% 2.26%
Difference 0.07% 0.00% -0.01% -0.03% -0.05% -0.04%
0.0%
0.4%
0.8%
1.2%
1.6%
2.0%
2.4%
Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception
0.26% 0.32%
0.71%0.61%
1.95%
2.22%
0.26% 0.25%
0.72%0.64%
2.00%
2.26%
To
tal
Ret
urn
CITY OF ROWLETT LONG TERM POOLED FUND BofA ML 1-3 Year U.S. Treasury Index
2017 PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated. **Since Inception performance is not shown for periods less than one year.
Account 75981504Page 31 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Performance
Portfolio Performance (Total Return)
Effective
DurationPortfolio/Benchmark
Annualized Return
12/31/16 06/30/1603/31/17 09/30/16
Quarter Ended
5 Year1 Year 3 Year
CITY OF ROWLETT LONG TERM POOLED
FUND
1.80 0.26% 0.32% 0.71% 0.61%-0.36% -0.03% 0.45%
BofA ML 1-3 Year U.S. Treasury Index 1.82 0.26% 0.25% 0.72% 0.64%-0.43% -0.11% 0.53%
Difference 0.07% 0.00% -0.01% -0.03%0.07% 0.08% -0.08%
-0.6%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year 5 Year
0.26%
-0.36%
-0.03%
0.45%
0.32%
0.71%
0.61%
0.26%
-0.43%
-0.11%
0.53%
0.25%
0.72%0.64%
To
tal
Ret
urn
CITY OF ROWLETT LONG TERM POOLED FUND BofA ML 1-3 Year U.S. Treasury Index
2017 PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated.
Account 75981504Page 32 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Performance
Portfolio Performance (Total Return)
Effective
DurationPortfolio/Benchmark 12/31/16 06/30/1603/31/17 09/30/16
Quarter Ended Annualized Return
5 Year1 Year 3 Year
CITY OF ROWLETT LONG TERM POOLED
FUND
1.80 0.26% 0.32% 0.71% 0.61%-0.36% -0.03% 0.45%
Net of Fees ** - 0.24% 0.24% 0.63% 0.53%-0.38% -0.05% 0.43%
BofA ML 1-3 Year U.S. Treasury Index 1.82 0.26% 0.25% 0.72% 0.64%-0.43% -0.11% 0.53%
0.07% 0.00% -0.01% -0.03%0.07% 0.08% -0.08%Difference (Gross)
Difference (Net) -0.02% 0.05% 0.06% -0.10% -0.01% -0.09% -0.11%
-0.6%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
03/31/17 12/31/16 09/30/16 06/30/16 1 Year 3 Year 5 Year
0.26%
-0.36%
-0.03%
0.45%
0.32%
0.71%
0.61%
0.26%
-0.43%
-0.11%
0.53%
0.25%
0.72%0.64%
To
tal
Ret
urn
CITY OF ROWLETT LONG TERM POOLED FUND BofA ML 1-3 Year U.S. Treasury Index
2017 PFM Asset Management LLC
Portfolio performance is gross of fees unless otherwise indicated. ** Fees were calculated based on average assets during the period at the contractual rate.
Account 75981504Page 33 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Performance
Portfolio Earnings
Quarter-Ended March 31, 2017
Market Value Basis Accrual (Amortized Cost) Basis
Net Purchases/Sales
Change in Value
Interest Earned
$13,404,430.37
($9,148.44)
($2,826.57)
$38,224.51
$35,397.94
$13,392,455.36
$13,447,147.75
($9,148.44)
($1,996.11)
$38,224.51
$36,228.40
$13,436,003.20
Portfolio Earnings
Beginning Value (12/31/2016)
Ending Value (03/31/2017)
2017 PFM Asset Management LLC Account 75981504Page 34 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector Allocation
As of March 31, 2017
Market Value ($) % of PortfolioSector
U.S. Treasury 10,214,652 76.3%
Federal Agency/GSE 3,177,803 23.7%
Total 13,392,455 100.0%
23.7%
FederalAgency/GSE
76.3%U.S. Treasury
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981504Page 35 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector AllocationAs of March 31, 2017
Market Value ($)Sector % of Portfolio % of Benchmark
100.0% 76.3% 10,214,652U.S. Treasury - 23.7% 3,177,803Federal Agency/GSE
13,392,455 100.0% 100.0%Total
0%
20%
40%
60%
80%
100%
Federal Agency/GSE U.S. Treasury
23.7%
76.3%
0.0%
100.0%
CITY OF ROWLETT LONG TERM POOLED FUND BofA ML 1-3 Year U.S. Treasury Index
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981504Page 36 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector Allocation
March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016
% of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM)
U.S. Treasury 10.2 76.3% 10.2 76.3% 9.4 69.6% 10.0 73.8%Federal Agency/GSE 3.2 23.7% 3.2 23.7% 4.1 30.4% 3.6 26.2%
$13.4 100.0% $13.4 100.0% $13.5 100.0% $13.6 100.0%Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
March 2017 December 2016 September 2016 June 2016
Federal Agency/GSEU.S. Treasury
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981504Page 37 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Maturity DistributionAs of March 31, 2017
>5
Years
4-5
Years
3-4
Years
2-3
Years
1-2
Years
0-1
Years
Yield
at MarketPortfolio/BenchmarkAverage
Maturity
CITY OF ROWLETT LONG TERM POOLED FUND 1.27% 20.2% 40.3% 33.6% 5.9% 0.0% 0.0%1.83 yrs
BofA ML 1-3 Year U.S. Treasury Index 1.27% 3.2% 53.5% 43.3% 0.0% 0.0% 0.0%1.94 yrs
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
20.2%
40.3%
33.6%
5.9%
0.0% 0.0%3.2%
53.5%
43.3%
0.0% 0.0% 0.0%
CITY OF ROWLETT LONG TERM POOLED FUND BofA ML 1-3 Year U.S. Treasury Index
2017 PFM Asset Management LLC Account 75981504Page 38 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
As of March 31, 2017
Duration Distribution
> 5
YEARS4-5
YEARS
3-4
YEARS
2-3
YEARS
1-2
YEARS
0-1
YEARS
Effective
DurationPortfolio / Benchmark
CITY OF ROWLETT LONG TERM POOLED FUND 1.80 20.17% 44.02% 35.80% 0.00% 0.00% 0.00%
BofA ML 1-3 Year U.S. Treasury Index 1.82 3.17% 53.53% 43.30% 0.00% 0.00% 0.00%
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
20%
44%
36%
0% 0% 0%3%
54%
43%
0% 0% 0%
Distribution by Effective Duration
CITY OF ROWLETT LONG TERM POOLED FUND
BofA ML 1-3 Year U.S. Treasury Index
0%
10%
20%
30%
40%
50%
60%
0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
10%
41%
48%
0% 0% 0%2%
43%
56%
0% 0% 0%
Contribution to Portfolio Duration
BofA ML 1-3 Year U.S. Treasury Index
CITY OF ROWLETT LONG TERM POOLED FUND
2017 PFM Asset Management LLC Account 75981504Page 39 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Credit QualityAs of March 31, 2017
S&P Rating Market Value ($) % of Portfolio
100.0%$13,392,455AA+
Totals 100.0%$13,392,455
100.0%AA+
2017 PFM Asset Management LLC
Detail may not add to total due to rounding.
Account 75981504Page 40 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Issuer DistributionAs of March 31, 2017
Market Value ($) % of PortfolioIssuer
UNITED STATES TREASURY 10,214,652 76.3%
FANNIE MAE 2,087,513 15.6%
FREDDIE MAC 1,090,290 8.1%
13,392,455 100.0%Grand Total:
2017 PFM Asset Management LLC Account 75981504Page 41 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Composition
Sector/Issuer DistributionAs of March 31, 2017
% of SectorSector / Issuer Market Value ($) % of Total Portfolio
Federal Agency/GSE
FANNIE MAE 15.6% 65.7% 2,087,513
FREDDIE MAC 8.1% 34.3% 1,090,290
100.0% 23.7% 3,177,803 Sector Total
U.S. Treasury
UNITED STATES TREASURY 76.3% 100.0% 10,214,652
100.0% 76.3% 10,214,652 Sector Total
100.0% 13,392,455 Portfolio Total 100.0%
2017 PFM Asset Management LLC Account 75981504Page 42 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Activity
Quarterly Portfolio Transactions
Trade
Date
Settle
Date
Maturity
DatePar ($) CUSIP Security DescriptionTransact
Amt ($)
Yield
at Market
Realized
G/L (BV)Coupon
BUY
1/5/17 1/6/17 500,000 912828N63 US TREASURY N/B 1/15/19 501,698.37 1.22%1.12%
3/9/17 3/10/17 800,000 912828J84 US TREASURY NOTES 3/31/20 797,459.13 1.69%1.37%
1,300,000 1,299,157.50Total BUY
INTEREST
1/15/17 1/15/17 500,000 912828N63 US TREASURY N/B 1/15/19 2,812.50 1.12%
1/19/17 1/19/17 600,000 3137EAEB1 FHLMC REFERENCE NOTE 7/19/19 2,610.42 0.87%
2/2/17 2/2/17 600,000 3135G0N33 FNMA BENCHMARK NOTE 8/2/19 2,625.00 0.87%
2/28/17 2/28/17 900,000 3135G0P49 FNMA NOTES 8/28/19 4,400.00 1.00%
2/28/17 2/28/17 1,950,000 912828SH4 US TREASURY NOTES 2/28/19 13,406.25 1.37%
3/31/17 3/31/17 800,000 912828J84 US TREASURY NOTES 3/31/20 5,500.00 1.37%
3/31/17 3/31/17 2,500,000 912828UU2 US TREASURY NOTES 3/31/18 9,375.00 0.75%
7,850,000 40,729.17Total INTEREST
SELL
1/5/17 1/6/17 500,000 912828WP1 US TREASURY NOTES 6/15/17 500,811.30 0.63% 604.81 0.87%
3/9/17 3/10/17 800,000 912828WP1 US TREASURY NOTES 6/15/17 801,853.37 0.77% 274.94 0.87%
1,300,000 1,302,664.67 879.75Total SELL
2017 PFM Asset Management LLC Account 75981504Page 43 of 50
CITY OF ROWLETT LONG TERM POOLED FUND
For the Quarter Ended March 31, 2017
Portfolio Activity
Quarterly Portfolio Transactions
Security DescriptionCUSIPPar ($) Settle
Date
Trade
Date
Tran.
Type
Maturity
Date
Transact
Amt ($)Yield
Realized
G/L (BV)Coupon
1/5/17 1/6/17 500,000.00 912828N63 US TREASURY N/BBUY 1/15/19 (501,698.37) 1.22%1.12%
1/5/17 1/6/17 500,000.00 912828WP1 US TREASURY NOTESSELL 6/15/17 500,811.30 0.63% 604.81 0.87%
1/15/17 1/15/17 500,000.00 912828N63 US TREASURY N/BINTEREST 1/15/19 2,812.50 1.12%
1/19/17 1/19/17 600,000.00 3137EAEB1 FHLMC REFERENCE NOTEINTEREST 7/19/19 2,610.42 0.87%
2/2/17 2/2/17 600,000.00 3135G0N33 FNMA BENCHMARK NOTEINTEREST 8/2/19 2,625.00 0.87%
2/28/17 2/28/17 900,000.00 3135G0P49 FNMA NOTESINTEREST 8/28/19 4,400.00 1.00%
2/28/17 2/28/17 1,950,000.00 912828SH4 US TREASURY NOTESINTEREST 2/28/19 13,406.25 1.37%
3/9/17 3/10/17 800,000.00 912828J84 US TREASURY NOTESBUY 3/31/20 (797,459.13) 1.69%1.37%
3/9/17 3/10/17 800,000.00 912828WP1 US TREASURY NOTESSELL 6/15/17 801,853.37 0.77% 274.94 0.87%
3/31/17 3/31/17 800,000.00 912828J84 US TREASURY NOTESINTEREST 3/31/20 5,500.00 1.37%
3/31/17 3/31/17 2,500,000.00 912828UU2 US TREASURY NOTESINTEREST 3/31/18 9,375.00 0.75%
TOTALS 44,236.34 879.75
2017 PFM Asset Management LLC Account 75981504Page 44 of 50
Tab III
2017 PFM Asset Management LLCPage 45 of 50
For the Quarter Ended March 31, 2017
CITY OF ROWLETT, TEXAS Asset Allocation
Security Type1Amortized Cost
(Includes Interest)Allocation
Percentage NotesPermitted by Policy
In Compliance
American National Bank of Texas 6,196,625.59 10.28% 100% YESTexPool - Local Government Investment Pool 39,526,242.82 65.57% 100% YESUnited States Treasury Securities 10,252,899.33 17.01% 100% YESUnited States Government Agency Securities - 0.00% 100% YESFederal Instrumentalities 3,214,177.05 5.33% 2 100% YESMortgage-Backed Securities - 0.00% 2 20% YESCertificates of Deposit - 0.00% 20% YESRepurchase Agreements - 0.00% 20% YESCommercial Paper 1,093,285.11 1.81% 25% YESCorporate Notes - 0.00% 0% YESBankers' Acceptances - 0.00% 25% YESState and/or Local Government Debt - 0.00% 25% YESFixed Income Money Market Mutual Funds - 0.00% 50% YESNotes:1. End of month trade-date amortized cost of portfolio holdings, including accrued interest. 2. The combined total of Federal Instrumentalities and Mortgage Backed Securities can not be more than 100%. The combined total as of March 31, 2017 is 5.33%.
© 2017 PFM Asset Management LLC
American National Bank of
Texas10.28%
TexPool - Local Government
Investment Pool65.57%
United States Treasury Securities
17.01%
Federal Instrumentalities
5.33%
Commercial Paper 1.81%
Page 46 of 50
For the Quarter Ended March 31, 2017
CITY OF ROWLETT, TEXAS Asset Allocation
Individual Issuer BreakdownAmortized Cost
(Includes Interest)Allocation
Percentage NotesPermitted by Policy
In Compliance
Government National Mortgage Association (GNMA) - 0.00% 40% YESFederal Farm Credit Bank (FFCB) - 0.00% 40% YESFederal Home Loan Bank (FHLB) - 0.00% 40% YESFederal National Mortgage Association (FNMA) 2,110,905.21 3.50% 40% YESFederal Home Loan Mortgage Corporation (FHLMC) 1,103,271.84 1.83% 40% YESBank of Tokyo Mitsubishi, Inc. Commercial Paper 546,542.33 0.91% 5% YESBNP Paribas Commercial Paper 546,742.78 0.91% 5% YES
© 2017 PFM Asset Management LLCPage 47 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Portfolio Activity
Important Disclosures
This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC
cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a
specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some but not all of which are noted in
the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in
assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in
this presentation is not an offer to purchase or sell any securities.
Dime
■ Market values which include accrued interest, are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data,
Bloomberg or Telerate. Where prices are not available from generally recognized sources the securities are priced using a yield based matrix system to arrive at
an estimated market value.
■ In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the
monthly balances and forward settling sales are excluded.
■ Performance is presented in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is
shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis.
Past performance is not indicative of future returns.
■ Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
■ Money market fund/cash balances are included in performance and duration computations.
■ Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
■ Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.
■ MBS maturities are represented by expected average life.
2017 PFM Asset Management LLC Account 75981500Page 48 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Appendix
Glossary
■ ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.
■ AGENCIES: Federal agency securities and/or Government-sponsored enterprises.
■ AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until
the date of the report. Discount or premium with respect to short term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such
discount or premium with respect to longer term securities is amortized using the constant yield basis.
■ BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the insurer.
■ COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
■ CONTRIBUTION TO DURATION: Represents each sector or maturity range’s relative contribution to the overall duration of the portfolio measured as a percentage weighting.
Since duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate
sensitivity of the portfolio.
■ DURATION TO WORST: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put
date, whichever results in the highest yield to the investor.
■ EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
■ EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on
investment returns, while nominal yield does not.
■ FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
■ INTEREST RATE: Interest per year divided by principal amount, expressed as a percentage.
■ MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
■ MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
■ NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more that can be traded in secondary markets.
■ PAR VALUE: The nominal dollar face amount of a security.
2017 PFM Asset Management LLC Account 75981500Page 49 of 50
CITY OF ROWLETT POOLED FUNDS
For the Quarter Ended March 31, 2017
Appendix
Glossary
■ PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed
security.
■ REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
■ SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction occurs on a non-business day (i.e. coupon
payments and maturity proceeds), the funds are exchanged on the next business day.
■ TRADE DATE: The date on which the transaction occurred however the final consummation of the security transaction and payment has not yet taken place.
■ UNSETTLED TRADE: A trade which has been executed however the final consummation of the security transaction and payment has not yet taken place.
■ U.S. TREASURY: The department of the U.S. government that issues Treasury securities.
■ YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value and the time period remaining until maturity, stated as a percentage, on an
annualized basis.
■ YTM AT COST: The yield to maturity at cost is the expected rate of return, based on the original cost, the annual interest receipts, maturity value and the time period from purchase
date to maturity, stated as a percentage, on an annualized basis.
■ YTM AT MARKET: The yield to maturity at market is the rate of return, based on the current market value, the annual interest receipts, maturity value and the time period
remaining until maturity, stated as a percentage, on an annualized basis.
2017 PFM Asset Management LLC Account 75981500Page 50 of 50