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Fin City Quarterly Investment Report 2017.09
____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 8-18 x 8-9 Council Meeting: _11/06/2017 Disposition: _Accepted report Agenda Item No: 4.e Meeting Date: November 6, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Department Prepared by: Mark Moses Finance Director City Manager Approval: ______________ SUBJECT: QUARTERLY INVESTMENT REPORT RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2017, AS PRESENTED BACKGROUND: Pursuant to the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on August 7, 2017 staff provides the governing body a quarterly report on the City's investment activities and liquidity. Included in the report are the cost of each investment, the interest rates (yield), maturity dates, and market value. Separate reports are prepared for the City and the Successor Agency to San Rafael Redevelopment Agency. The City invests a portion of its pooled funds in the Local Agency Investment Fund (LAIF), a State run investment pool. Beginning in March 2014, the City incorporated an investment strategy that added purchases of securities outside of LAIF with the assistance of its investment advisor, Insight Investment. ANALYSIS: As of September 30, 2017, the primary LAIF account had a balance of $26,120,827. The other LAIF account holding housing funds for future administrative expenses contained $145,398. Portfolio returns on LAIF deposits were 1.08% for the quarter. The remaining investment assets included the $1,455,700 balance of Pt. San Pedro Assessment District bonds, and $23,130,391 in government agency securities and corporate bonds (including T-Note, Walt Disney Company, Apple Inc., Toyota Motor Credit Corp., Pepsico Inc., FNMA). The overall portfolio return for the quarter ended September 30, 2017 was 1.25%. The City’s Westamerica account had a balance of $7,003,409 at quarter end. Exhibit A is composed of three parts: (1) Quarterly Investment Portfolio Report; (2) Historical Activity By Quarter summarizing the City’s investments; and (3) the three monthly investment reports from Insight Investment for the quarter. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 FISCAL IMPACT: No financial impact occurs by adopting the report. The City continues to meet the priority principles of investing - safety, liquidity and yield in respective order. The portfolio remains conservatively invested. Sufficient liquidity exists to meet daily operating and capital project requirements for the next six months. Operating funds, as defined for this report, exclude cash held with fiscal agents for the payment of bond principal and interest. RECOMMENDATION: Accept the report as presented in order to satisfy State Investment Code requirements and City policy. Attachments: 1. Quarterly Investment Portfolio Report 2. Historical Activity by Quarter Report 3. Insight Investment Statements July through September 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD. MARK MOSES FINANCE DIRECTOR Exhibit A %Return LAIF 26,120,827$99.4%1.08% LAIF - Housing 145,398$0.6%1.08% Total Internally Managed 26,266,225$51.7% Weighted Average Yield 1.08% Days Effective Average Duration - Internal 1 Weighted Average Maturity - Internal 1 %Return Cash 132,133$0.5%0.00% Treasury Securities 4,390,921$17.9%1.21% Instrumentality Securities 14,554,167$59.2%1.17% Corporate Notes 4,053,171$16.5%1.34% Municipal 1,455,700$5.9%5.25% Total Externally Managed 24,586,091$48.3% Weighted Average Yield 1.44% Years Effective Average Duration - External 1.98 Weighted Average Maturity - External 2.37 Total Portfolio Assets %Return LAIF 26,266,225$51.7%1.08% Cash 132,133$0.3%0.00% Treasury Securities 4,390,921$8.6%1.21% Instrumentality Securities 14,554,167$28.6%1.17% Corporate Notes 4,053,171$8.0%1.34% Municipal 1,455,700$2.9%5.25% Total Portfolio Assets 50,852,317$ Weighted Average Yield 1.25% Years Effective Average Duration - Total 0.96 Weighted Average Maturity - Total 1.15 Based on Market Values September 30, 2017 City of Rafael Quarterly Investment Portfolio Report Externally Managed Assets Internally Managed Assets LAIF, 99.4% LAIF -Housing, 0.6% Cash , 0.5%Treasury Securities, 17.9% Instrumentality Securities, 59.2% Corporate Notes, 16.5% LAIF 52% Cash 0% Treasury Securities 9% Instrumentality Securities 28% Corporate Notes 8%Municipal 3% Exhibit A Internally Managed Assets %Return %Return %Return %Return %Return LAIF 26,120,827$99.4%1.08%34,063,133$99.6%0.91%24,021,598$99.4%0.78%15,987,701$99.1%0.72%24,669,361$99.4%0.61% LAIF - Housing 145,398$0.6%1.08%145,064$0.4%0.91%144,787$0.6%0.78%144,541$0.9%0.72%144,126$0.6%0.61% Total Internally Managed 26,266,225$51.7%34,208,197$58.2%24,166,385$49.6%16,132,242$39.7%24,813,487$50.3% Weighted Average Yield 1.08%0.91%0.78%0.72%0.61% Days Days Days Days Days Effective Average Duration - Internal 1 1 1 1 1 Weighted Average Maturity - Internal 1 1 1 1 1 Externally Managed Assets %Return %Return %Return %Return %Return Cash 132,133$0.5%0.00%34,392$0.1%0.00%152,566$0.6%0.00%67,092$0.3%0.00%24,880$0.1%0.00% Commercial Paper -$0.0%0.00%-$0.0%0.00%-$0.0%0.00%-$0.0%0.00%-$0.0%0.00% Treasury Securities 4,390,921$17.9%1.21%4,146,098$16.9%1.08%3,498,184$14.2%0.93%2,997,481$12.2%0.85%5,254,701$21.4%0.80% Instrumentality Securities 14,554,167$59.2%1.17%14,829,261$60.3%1.02%14,823,678$60.4%0.96%15,326,190$62.6%0.96%13,150,097$53.6%0.91% Corporate Notes 4,053,171$16.5%1.34%4,058,635$16.5%1.27%4,559,554$18.6%1.26%4,557,757$18.6%1.18%4,584,779$18.7%0.87% Municipal 1,455,700$5.9%5.25%1,520,800$6.2%5.25%1,520,800$6.2%5.25%1,520,800$6.2%5.25%1,520,800$6.2%5.25% Total Externally Managed 24,586,091$48.3%24,589,185$41.8%24,554,781$50.4%24,469,318$60.3%24,535,257$49.7% Weighted Average Yield 1.44%1.33%1.27%1.25%1.15% Years Years Years Years Years Effective Average Duration - External 1.98 1.68 1.76 1.91 1.87 Weighted Average Maturity - External 2.37 2.03 2.07 2.25 2.22 Total Portfolio Assets %Return %Return %Return %Return %Return LAIF 26,266,225$51.7%1.08%34,208,197$58.2%0.91%24,166,385$49.6%0.78%16,132,242$39.7%0.72%24,813,487$50.3%0.61% Cash 132,133$0.3%0.00%34,392$0.1%0.00%152,566$0.3%0.00%67,092$0.2%0.00%24,880$0.1%0.00% Commercial Paper 4,390,921$8.6%1.21%4,146,098$7.1%1.08%3,498,184$7.2%0.93%-$0.0%0.00%-$0.0%0.00% Treasury Securities 14,554,167$28.6%1.17%14,829,261$25.2%1.02%14,823,678$30.4%0.96%2,997,481$7.4%0.85%5,254,701$10.6%0.82% Instrumentality Securities 4,053,171$8.0%1.34%4,058,635$6.9%1.27%4,559,554$9.4%1.26%15,326,190$37.7%0.96%13,150,097$26.6%0.91% Corporate Notes 1,455,700$2.9%5.25%1,520,800$2.6%5.25%1,520,800$3.1%5.25%4,557,757$11.2%1.18%4,584,779$9.3%0.87% Municipal 50,852,316$58,797,383$48,721,166$1,520,800$3.7%5.25%1,520,800$3.1%5.25% Total Portfolio Assets 40,601,560$49,348,744$ Weighted Average Yield 1.25%1.09%1.03%1.04%0.88% Years Years Years Years Years Effective Average Duration - Total 0.96 0.70 0.89 1.15 1.43 Weighted Average Maturity - Total 1.15 0.85 1.04 1.36 1.61 Performance Recap -The weighted average quarterly portfolio yield increase from 1.09% to 1.25% during the past quarter. The yield has increased over the past year, from .88% in the quarter ended September 30, 2016 to 1.25% in the most recent quarter. -This trend is reflective of the general increase in interest rates that occurred througout the year. -The effective average duration has dropped, from 1.61 to 1.15 years as the City shortens its investments in preparation for drawing on funds accumulated for the San Rafael Essential Facilities Project. -The total portfolio assets decreased by approximately $8 million during the quarter. This is due to the spending down of funds while we await property tax receipts in late December. September 30, 2017 City of San Rafael Historical Activity-By Quarter June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 W:\Accounting and Budgeting\Finance\Bank Reconciliations\Statements\17-18\September 2017\Quarterly Report combined 9-30-17.xlsx SAN RAFAELSeptember 2017FOR PROFESSIONAL CLIENTS ONLYNOT TO BE DISTRIBUTED TO RETAIL CLIENTSTHIS DOCUMENT SHOULD NOT BE REPRODUCED INANY FORM WITHOUT PRIOR WRITTEN APPROVAL ContentsFixed income market review 3Activity and performance summary 4Recap of securities held6Maturity distribution of securities held 7Securities held8GASB 40 - Deposit and investment risk disclosure 12Securities purchased15Securities sold and matured 16Transaction report17Additional information18 FIXED INCOME MARKET REVIEWAs of September 30, 2017SAN RAFAELChart 1: Fed funds target rate: 9/30/2007—9/30/2017Source: BloombergFinance LP, September 30, 2017.Chart 2: Treasury yield curve: 9/30/2016 and 9/30/2017Source: Bloomberg Finance LP, September 30, 2017.Economic Indicators and Monetary PolicyThe Federal Open Market Committee (FOMC) met on September 20and votedunanimously to maintain the current Fed funds target rate ina range of 1% to 1.25%. TheFOMC has increased the target rate four times in this tightening cycle in order to normalizeinterest rates. Rate increases occurred in March and June in2017, and December rateincreases were implementedin 2015 and 2016. (See Chart 1.)Federal Reserve (Fed) Chair Janet Yellen’s comments duringa press conference helpedpush rates higher as she noted: “We continue to expect that the ongoing strength of theeconomy will warrant gradual increases in that rate to sustain a healthy labor market andstabilize inflation around our 2% longer-run objective.” Fed rate projections revealedexpectations for one more rate hike this year and three quarter-point increases next year.The longer-run forecast for the Fed funds target rate decreased by 25 bp to a 2.75%terminalrate.At the September meeting the FOMC also announced that the balance sheet normalizationprogram will begin in October. The Fed’s $4.5 trillion balance sheet will be reduced by $10billion a month to start, with runoff of $6 billion in Treasuries and $4 billion in mortgage-backed securities per month. The amounts will increase every three months until theyreach $30 billion of Treasuries and $20 billion of mortgage-backed securities per month.The balance sheet reduction program and its implementationhave been wellcommunicated to the markets by the FOMC, with specific details released in June. Thevote to begin implementation of the balance sheet normalization program in October wasalsounanimous.Interest Rate SummaryAt the end of September the 3-month US Treasury bill yielded 1.05%, the 6-month USTreasury bill yielded 1.19%, the 2-year US Treasury note yielded 1.49%, the 5-year USTreasury note yielded 1.94% and the 10-year US Treasury noteyielded 2.33%. (See Chart 2).0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17Percentage0.00%0.50%1.00%1.50%2.00%2.50%3.00%3 m 6 m 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 yr 10 yrPercentage9/30/20179/30/20163 ACTIVITY AND PERFORMANCE SUMMARYFor the period September 1, 2017 - September 30, 2017SAN RAFAELAmortized Cost Basis Activity Summary24,687,212.00Opening balance61,266.53Income received61,266.53Total receipts(65,100.00)Participant withdrawals(150.79)Expenses paid(65,250.79)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Realized gain (loss)(3,848.92)Total amortization expense625.23Total OID/MKT accretion income0.00Return of capitalClosing balance24,680,004.05Ending fair value24,586,091.17(93,912.88)Unrealized gain (loss)Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.81 0.53 0.09Overnight Repo0.76 0.51 0.09Merrill Lynch 3m US Treas Bill 0.71 0.47 0.08Merrill Lynch 6m US Treas Bill 0.82 0.51 0.09ML 1 Year US Treasury Note 1.00 0.59 0.10ML 2 Year US Treasury Note 1.23 0.66 0.11ML 5 Year US Treasury Note 1.79 0.91 0.15* rates reflected are cumulativeSummary of Amortized Cost Basis Return for the PeriodTotal portfolioInterest earned30,037.93Accretion (amortization)(3,223.69)Realized gain (loss) on sales0.00Total income on portfolio26,814.24Average daily amortized cost24,664,170.98Period return (%)Weighted average final maturity in days846YTD return (%)Detail of Amortized Cost Basis ReturnInterestearnedRealizedgain (loss)Accretion(amortization)Totalincome0.00Cash and Cash Equivalents 55.42 0.00 55.420.00Corporate Bonds 5,937.51 (1,730.78) 4,206.730.00Government Agencies 14,756.06 (1,510.44) 13,245.620.00Government Bonds 4,344.32 17.53 4,361.850.00Municipal/Provincial Bonds 4,944.62 0.00 4,944.62Total 30,037.93 (3,223.69) 0.00 26,814.240.110.974 ACTIVITY AND PERFORMANCE SUMMARYFor the period September 1, 2017 - September 30, 2017SAN RAFAELFair Value Basis Activity Summary24,633,879.93Opening balance61,266.53Income received61,266.53Total receipts(65,100.00)Participant withdrawals(150.79)Expenses paid(65,250.79)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Unrealized gain (loss) on security movements0.00Return of capitalChange in fair value for the period(43,804.50)Ending fair value24,586,091.17Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.81 0.53 0.09Overnight Repo0.76 0.51 0.09Merrill Lynch 3m US Treas Bill 0.66 0.47 0.09Merrill Lynch 6m US Treas Bill 0.81 0.55 0.08ML 1 Year US Treasury Note 0.59 0.38 0.01ML US Treasury 1-30.23 0.41 (0.17)ML US Treasury 1-5 (0.07) 0.66 (0.34)* rates reflected are cumulativeDetail of Fair Value Basis ReturnInterestearnedChange infair valueTotalincomeCash and Cash Equivalents 55.42 0.00 55.42Corporate Bonds 5,937.51 (3,743.25) 2,194.26Government Agencies 14,756.06 (29,376.00) (14,619.94)Government Bonds 4,344.32 (10,685.25) (6,340.93)Municipal/Provincial Bonds 4,944.62 0.00 4,944.62Total30,037.93 (43,804.50) (13,766.57)Summary of Fair Value Basis Return for the PeriodTotal portfolioInterest earned30,037.93Total income on portfolio(13,766.57)Average daily total value *24,704,099.79Period return (%)(0.06)Weighted average final maturity in days846Change in fair value(43,804.50)YTD return (%)0.92* Total value equals market value and accrued interest5 RECAP OF SECURITIES HELDAs of September 30, 2017SAN RAFAELWeightedaveragefinalmaturity (days)Weightedaverageeffectiveduration (years)PercentofportfolioAmortizedcostHistoricalcostFair value Unrealizedgain (loss)Cash and Cash Equivalents 132,133.02 132,133.02 132,133.02 0.00 0.53 0.001Corporate Bonds 4,073,471.50 4,064,392.96 4,053,170.60(11,222.36) 421 16.49 1.11Government Agencies 14,648,330.03 14,626,180.93 14,554,166.50 (72,014.43) 587 59.28 1.50Government Bonds 4,399,976.57 4,401,597.14 4,390,921.05 (10,676.09) 603 17.81 1.61Municipal/Provincial Bonds 1,455,700.00 1,455,700.00 1,455,700.00 0.00 5,452 5.89 10.48Total24,709,611.12 24,680,004.05 24,586,091.17 (93,912.88) 846 100.00 1.98Cash and Cash Equivalents 0.53Corporate Bonds 16.49Government Agencies 59.28Government Bonds 17.81Municipal/Provincial Bonds 5.89Portfolio diversification (%)6 MATURITY DISTRIBUTION OF SECURITIES HELDAs of September 30, 2017SAN RAFAELMaturityHistoric cost PercentUnder 90 days2,632,488.02 10.6590 to 179 days2,507,400.00 10.15180 days to 1 year2,054,293.50 8.311 to 2 years8,900,514.50 36.022 to 3 years6,155,805.10 24.913 to 4 years1,003,410.00 4.064 to 5 years0.00 0.00Over 5 years1,455,700.00 5.8924,709,611.12 100.00Maturity distribution7 SECURITIES HELDAs of September 30, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCash and Cash Equivalents0.000132,133.02 132,133.020.000.00 0.00 0.00 0.000.00 0.00Cash and Cash Equivalents0.53132,133.02132,133.02Total Cash and Cash Equivalents132,133.02 132,133.02 132,133.02 0.00 0.00 0.000.00 0.000.530.000.00132,133.02Corporate Bonds94988J5A1 1.650 01/22/2018 501,930.00 500,308.3687.5096.14 0.00 664.58 1,558.330.00 (82.60)WELLS FARGO BANK NA 1.65%22/01/20182.03500,404.50500,000.00037833AJ9 1.000 05/03/2018 498,090.00 499,495.2555.00(665.25) 0.00 402.78 2,041.670.00 71.09APPLE INC 1% 03/05/20182.02498,830.00500,000.00084670BX5 1.150 08/15/2018 500,355.00 500,154.24(5.50)(1,623.74) 0.00 463.19 718.750.00 (14.69)BERKSHIRE HATHAWAY INC1.15% 15/08/20182.02498,530.50500,000.0025468PDD5 1.500 09/17/2018 555,351.50 552,564.88250.25(2,354.78) 4,125.00 664.59 297.920.00 (221.74)WALT DISNEY COMPANY/THE1.5% 17/09/20182.25550,210.10550,000.0091159HHE3 1.950 11/15/2018 509,425.00 504,666.41(350.50)(2,598.41) 0.00 785.42 3,656.2510/15/20180.00 (345.66)US BANCORP 1.95%15/11/2018 (CALLABLE15/10/18)2.06502,068.00500,000.00713448CK2 2.250 01/07/2019 505,530.00 503,858.34(718.00)131.66 0.00 906.25 2,593.7512/07/20180.00 (253.28)PEPSICO INC 2.25% 07/01/2019(CALLABLE 07/12/18)2.05503,990.00500,000.0014912L6R7 1.350 05/18/2019 498,245.00 498,896.32(438.00)(2,157.82) 0.00 543.75 2,475.000.00 56.31CATERPILLAR FINL SERVICE1.35% 18/05/20192.02496,738.50500,000.008 SECURITIES HELDAs of September 30, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCorporate Bonds89236TCF0 2.150 03/12/2020 504,545.00 504,449.16(2,146.00)(2,050.16) 0.00 477.78 537.50(59.72) (95.84)TOYOTA MOTOR CREDIT CORP2.15% 12/03/20202.04502,399.00500,000.00Total Corporate Bonds4,073,471.50 4,064,392.96 4,053,170.60 (11,222.36) 4,125.00 4,908.34(59.72) (886.41)16.4913,879.17(3,265.25)4,050,000.00Government Agencies3130A5L56 0.900 10/27/2017 999,070.00 999,970.56220.00(70.56) 0.00 725.00 3,825.000.00 32.71FEDERAL HOME LOAN BANK0.9% 27/10/20174.04999,900.001,000,000.003130A6D87 0.900 11/20/2017 1,000,660.00 1,000,040.69180.00(190.69) 0.00 725.00 3,250.000.00 (24.41)FEDERAL HOME LOAN BANK0.9% 20/11/20174.05999,850.001,000,000.00313378A43 1.375 03/09/2018 1,007,970.00 1,001,362.61(213.00)(489.61) 6,875.00 1,107.64 802.080.00 (257.10)FEDERAL HOME LOAN BANK1.375% 09/03/20184.081,000,873.001,000,000.003133EGFQ3 0.875 09/14/2018 500,497.00 500,211.59(412.00)(2,708.59) 2,187.50 352.43 194.440.00 (18.46)FEDERAL FARM CREDIT BANK0.875% 14/09/20182.03497,503.00500,000.003133EGM69 1.100 12/05/2018 1,247,248.75 1,248,378.25(1,825.00)(3,553.25) 0.00 1,107.64 4,392.360.00 114.48FEDERAL FARM CREDIT BANK1.1% 05/12/20185.051,244,825.001,250,000.003135G0H63 1.375 01/28/2019 1,012,490.00 1,006,700.58(1,660.00)(7,702.58) 0.00 1,107.64 2,368.060.00 (420.54)FANNIE MAE 1.375%28/01/20194.10998,998.001,000,000.003133782M2 1.500 03/08/2019 1,014,124.28 1,007,858.62(1,735.00)(7,433.62) 7,500.00 1,208.34 916.670.00 (455.13)FEDERAL HOME LOAN BANK1.5% 08/03/20194.101,000,425.001,000,000.003135G0L76 1.075 07/11/2019 599,100.00 599,428.25(990.00)(5,968.25) 0.00 519.59 1,415.4210/11/20170.00 26.76FANNIE MAE 1.075%11/07/2019 (CALLABLE11/01/18)2.42593,460.00600,000.009 SECURITIES HELDAs of September 30, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Agencies3133EGSC0 1.000 08/26/2019 1,000,610.00 1,000,386.03(2,110.00)(14,596.03) 0.00 805.55 944.440.00 (16.89)FEDERAL FARM CREDIT BANK1% 26/08/20194.05985,790.001,000,000.00313380FB8 1.375 09/13/2019 1,011,510.00 1,007,590.55(1,750.00)(10,610.55) 6,875.00 1,107.64 649.310.00 (323.92)FEDERAL HOME LOAN BANK1.375% 13/09/20194.09996,980.001,000,000.003134G3M49 1.500 09/26/2019 1,001,001.00 1,000,902.66(2,440.00)(2,392.66) 7,500.00 1,208.34 166.670.00 (37.83)FREDDIE MAC 1.5% 26/09/2019CALLABLE4.05998,510.001,000,000.003130ABCH7 1.500 11/04/2019 750,030.00 750,026.49(1,950.00)(1,293.99) 0.00 906.25 4,562.500.00 (1.05)FEDERAL HOME LOAN BANK1.5% 04/11/20193.04748,732.50750,000.003133ECEY6 1.450 02/11/2020 1,003,130.00 1,002,280.51(3,300.00)(4,310.51) 0.00 1,168.05 1,973.610.00 (80.39)FEDERAL FARM CREDIT BANK1.45% 11/02/20204.06997,970.001,000,000.003134G3K58 1.500 03/19/2020 498,289.00 498,521.79(2,115.00)(381.79) 3,750.00 604.17 229.170.00 49.88FREDDIE MAC 1.5% 19/03/2020CALLABLE2.02498,140.00500,000.003133EHVX8 1.500 08/24/2020 999,190.00 999,204.48(4,660.00)(4,674.48) 0.00 708.33 1,500.00(791.67) 14.48FEDERAL FARM CREDIT BANK1.5% 24/08/20204.04994,530.001,000,000.003135G0RM7 1.630 10/30/2020 1,003,410.00 1,003,317.27(4,640.00)(5,637.27) 0.00 1,131.95 6,791.670.00 (92.73)FANNIE MAE 1.63% 30/10/2020CALLABLE4.06997,680.001,000,000.00Total Government Agencies14,648,330.03 14,626,180.93 14,554,166.50 (72,014.43) 34,687.50 14,493.56(791.67) (1,490.14)59.2833,981.40(29,400.00)14,600,000.00Government Bonds912828G20 0.875 11/15/2017 500,625.00 500,033.5976.50(158.09) 0.00 356.66 1,640.630.00 (21.90)USA TREASURY 0.875%15/11/20172.03499,875.50500,000.0010 SECURITIES HELDAs of September 30, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Bonds912828UR9 0.750 02/28/2018 997,500.00 999,575.3778.00(1,450.37) 0.00 621.55 621.550.00 84.37USA TREASURY 0.75%28/02/20184.04998,125.001,000,000.00912828WL0 1.500 05/31/2019 501,230.47 500,916.82(1,054.50)(447.82) 0.00 614.75 2,500.000.00 (45.24)USA TREASURY 1.5%31/05/20192.03500,469.00500,000.00912828TV2 1.250 10/31/2019 649,009.77 649,184.45(1,904.50)(2,358.40) 0.00 662.37 3,378.060.00 32.15USA TREASURY 1.25%31/10/20192.63646,826.05650,000.00912828H52 1.250 01/31/2020 745,869.14 746,306.47(2,841.75)(1,227.97) 0.00 764.27 1,554.010.00 129.90USA TREASURY 1.25%31/01/20203.02745,078.50750,000.00912828XM7 1.625 07/31/2020 1,005,742.19 1,005,580.44(5,039.00)(5,033.44) 0.00 1,324.72 2,693.610.00 (161.75)USA TREASURY 1.625%31/07/20204.071,000,547.001,000,000.00Total Government Bonds4,399,976.57 4,401,597.14 4,390,921.05 (10,676.09) 0.004,344.320.00 17.5317.8112,387.86(10,685.25)4,400,000.00Municipal/Provincial Bonds888599LS4 5.250 09/02/2032 1,455,700.00 1,455,700.000.000.00 0.00 6,368.68 38,212.120.00 0.00PT. SAN ASSESS DISTRICT5.25% 144A 02/09/2032SANRAF$015.891,455,700.001,455,700.00Total Municipal/Provincial Bonds1,455,700.00 1,455,700.00 1,455,700.00 0.00 0.00 6,368.680.00 0.005.8938,212.120.001,455,700.00Grand total24,709,611.12 24,680,004.05(43,350.50)(93,912.88) 38,812.50 30,114.9024,637,833.02(851.39) (2,359.02)100.0098,460.5524,586,091.1711 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of September 30, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesFederal Home Loan Banks3130A5L56FEDERAL HOME LOAN 0.900 10/27/2017 AA+ Aaa 999,070.00 4.04 999,900.00 4.07 0.071,000,000.003130A6D87FEDERAL HOME LOAN 0.900 11/20/2017 AA+ Aaa 1,000,660.00 4.05 999,850.00 4.07 0.141,000,000.00313378A43FEDERAL HOME LOAN 1.375 03/09/2018 AA+ Aaa 1,007,970.00 4.08 1,000,873.00 4.07 0.431,000,000.003133782M2FEDERAL HOME LOAN 1.500 03/08/2019 AA+ Aaa 1,014,124.28 4.10 1,000,425.00 4.07 1.411,000,000.00313380FB8FEDERAL HOME LOAN 1.375 09/13/2019 AA+ Aaa 1,011,510.00 4.09 996,980.00 4.06 1.921,000,000.003130ABCH7FEDERAL HOME LOAN 1.500 11/04/2019 AA+ Aaa 750,030.00 3.04 748,732.50 3.05 2.05750,000.00Issuer total5,750,000.00 5,783,364.28 23.41 5,746,760.50 23.37 0.96Federal Farm Credit Banks3133EGFQ3FEDERAL FARM CREDIT 0.875 09/14/2018 AA+ Aaa 500,497.00 2.03 497,503.00 2.02 0.95500,000.003133EGM69FEDERAL FARM CREDIT 1.100 12/05/2018 AA+ Aaa 1,247,248.75 5.05 1,244,825.00 5.06 1.161,250,000.003133EGSC0FEDERAL FARM CREDIT 1.000 08/26/2019 AA+ Aaa 1,000,610.00 4.05 985,790.00 4.01 1.881,000,000.003133ECEY6FEDERAL FARM CREDIT 1.450 02/11/2020 AA+ Aaa 1,003,130.00 4.06 997,970.00 4.06 2.321,000,000.003133EHVX8FEDERAL FARM CREDIT 1.500 08/24/2020 AA+ Aaa 999,190.00 4.04 994,530.00 4.05 2.831,000,000.00Issuer total4,750,000.00 4,750,675.75 19.23 4,720,618.00 19.20 1.89United States Treasury Note/Bond912828G20USA TREASURY 0.875% 0.875 11/15/2017 AA+ Aaa 500,625.00 2.03 499,875.50 2.03 0.13500,000.00912828UR9USA TREASURY 0.75% 0.750 02/28/2018 AA+ Aaa 997,500.00 4.04 998,125.00 4.06 0.411,000,000.00912828WL0USA TREASURY 1.5% 1.500 05/31/2019 AA+ Aaa 501,230.47 2.03 500,469.00 2.04 1.63500,000.00912828TV2USA TREASURY 1.25% 1.250 10/31/2019 AA+ Aaa 649,009.77 2.63 646,826.05 2.63 2.04650,000.00912828H52USA TREASURY 1.25% 1.250 01/31/2020 AA+ Aaa 745,869.14 3.02 745,078.50 3.03 2.29750,000.00912828XM7USA TREASURY 1.625% 1.625 07/31/2020 AA+ Aaa 1,005,742.19 4.07 1,000,547.00 4.07 2.761,000,000.00Issuer total4,400,000.00 4,399,976.57 17.81 4,390,921.05 17.86 1.6112 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of September 30, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall datePar value orsharesFederal National Mortgage Association3135G0H63FANNIE MAE 1.375% 1.375 01/28/2019AA+ Aaa1,012,490.00 4.10 998,998.00 4.06 1.311,000,000.003135G0L76FANNIE MAE 1.075% 1.075 07/11/2019 10/11/2017 AA+ Aaa599,100.00 2.42 593,460.00 2.41 1.71600,000.003135G0RM7FANNIE MAE 1.63%1.630 10/30/2020AA+ Aaa1,003,410.00 4.06 997,680.00 4.06 2.981,000,000.00Issuer total2,600,000.00 2,615,000.00 10.58 2,590,138.00 10.53 2.04Federal Home Loan Mortgage Corp3134G3M49FREDDIE MAC 1.5%1.500 09/26/2019AA+ Aaa1,001,001.00 4.05 998,510.00 4.06 1.251,000,000.003134G3K58FREDDIE MAC 1.5%1.500 03/19/2020AA+ Aaa498,289.00 2.02 498,140.00 2.03 1.72500,000.00Issuer total1,500,000.00 1,499,290.00 6.07 1,496,650.00 6.09 1.415.250 09/02/2032NR NR1,455,700.00 5.89 1,455,700.00 5.92 10.481,455,700.00Pt. San Assess District888599LS4 PT. SAN ASSESS Issuer total1,455,700.00 1,455,700.00 5.89 1,455,700.00 5.92 10.48Walt Disney Co/The25468PDD5WALT DISNEY1.500 09/17/2018A+ A2555,351.50 2.25 550,210.10 2.24 0.95550,000.00Issuer total550,000.00 555,351.50 2.25 550,210.10 2.24 0.95PepsiCo Inc713448CK2PEPSICO INC 2.25%2.250 01/07/2019 12/07/2018 A+ A1505,530.00 2.05 503,990.00 2.05 1.18500,000.00Issuer total500,000.00 505,530.00 2.05 503,990.00 2.05 1.18Toyota Motor Credit Corp89236TCF0TOYOTA MOTOR CREDIT 2.150 03/12/2020AA- Aa3504,545.00 2.04 502,399.00 2.04 2.38500,000.00Issuer total500,000.00 504,545.00 2.04 502,399.00 2.04 2.3813 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of September 30, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesUS Bancorp91159HHE3US BANCORP 1.95% 1.950 11/15/2018 10/15/2018 A+ A1 509,425.00 2.06 502,068.00 2.04 1.05500,000.00Issuer total500,000.00 509,425.00 2.06 502,068.00 2.04 1.05Wells Fargo Bank NA94988J5A1WELLS FARGO BANK NA 1.650 01/22/2018 AA- Aa2 501,930.00 2.03 500,404.50 2.04 0.31500,000.00Issuer total500,000.00 501,930.00 2.03 500,404.50 2.04 0.31Apple Inc037833AJ9APPLE INC 1% 03/05/2018 1.000 05/03/2018 AA+ Aa1 498,090.00 2.02 498,830.00 2.03 0.58500,000.00Issuer total500,000.00 498,090.00 2.02 498,830.00 2.03 0.58Berkshire Hathaway Inc084670BX5BERKSHIRE HATHAWAY 1.150 08/15/2018 AA Aa2 500,355.00 2.02 498,530.50 2.03 0.87500,000.00Issuer total500,000.00 500,355.00 2.02 498,530.50 2.03 0.87Caterpillar Financial Services Corp14912L6R7CATERPILLAR FINL 1.350 05/18/2019 A A3 498,245.00 2.02 496,738.50 2.02 1.60500,000.00Issuer total500,000.00 498,245.00 2.02 496,738.50 2.02 1.60Cash and Cash EquivalentsINVESTED CASH 0.000132,133.02 0.53 132,133.02 0.54 0.00132,133.02Issuer total132,133.02 132,133.02 0.53 132,133.02 0.54 0.00Grand total24,637,833.02 24,709,611.12 100.00 24,586,091.17 100.001.9814 SECURITIES PURCHASEDFor the period September 1, 2017 - September 30, 2017SAN RAFAELPar value orsharesUnit cost Accruedinterest purchasedTrade dateSettle dateCoupon Maturity/Call datePrincipalcostCusip / Description / BrokerCorporate Bonds89236TCF02.15009/12/2017 03/12/2020 500,000.00 100.91 (504,545.00) (59.72)TOYOTA MOTOR CREDIT CORP 2.15% 12/03/2020 09/14/2017WELLS FARGO SECURITIES INTL LTD500,000.00 (504,545.00) (59.72)Total Corporate BondsGovernment Agencies3133EHVX81.50009/12/2017 08/24/2020 1,000,000.00 99.92 (999,190.00) (791.67)FEDERAL FARM CREDIT BANK 1.5% 24/08/2020 09/13/2017WELLS FARGO SECURITIES INTL LTD1,000,000.00 (999,190.00) (791.67)Total Government AgenciesGrand totalGrand total1,500,000.00 (1,503,735.00) (851.39)15 SECURITIES SOLD AND MATUREDFor the period September 1, 2017 - September 30, 2017SAN RAFAELHistorical cost Amortized costat sale or maturity/Accr (amort)Fair value atsale or maturity /Chg.in fair valueRealizedgain(loss)PriceCouponTrade dateSettle dateMaturity/Call datePar value orsharesCusip/Description/BrokerAccruedinterestsoldInterestreceivedInterestearnedCorporate Bonds459200GJ4INTL BUSINESS 5.7% DUE09-14-20175.70009/14/2017 (500,000.00) 568,635.00 500,000.00(844.37)0.00(478.00)500,000.00 0.00 0.00 14,250.00 1,029.1709/14/2017(500,000.00)0.00568,635.00(844.37)500,000.00(478.00)500,000.00 0.00 14,250.00 1,029.17Total (Corporate Bonds)Government Agencies3136G0ZH7FNMA 1.05 09-05-20171.05009/05/2017 (1,000,000.00) 1,005,150.00 1,000,000.00(33.40)0.00(26.00)1,000,000.00 0.00 0.00 5,250.00 116.6709/05/2017313380EC7FHLB CONS BD .7509-08-20170.75009/08/2017 (1,000,000.00) 998,790.00 1,000,000.0013.100.0050.001,000,000.00 0.00 0.00 3,750.00 145.8309/08/2017(2,000,000.00)0.002,003,940.00(20.30)2,000,000.0024.002,000,000.00 0.00 9,000.00 262.50Total (Government Agencies)Municipal/Provincial Bonds888599LS4PT. SAN ASSESS DISTRICT5.25% 144A 02/09/2032SANRAF$01CORPORATE ACTIONS IOO5.25009/01/2017 09/02/2032 (65,100.00) 65,100.00 65,100.000.00100.000.0065,100.00 0.00 0.00 0.00 (1,424.06)09/05/2017(65,100.00)0.0065,100.000.0065,100.000.0065,100.00 0.00 0.00 (1,424.06)Total (Municipal/Provincial Bonds)Grand totalGrand total(2,565,100.00)0.002,637,675.00(864.67)2,565,100.00 2,565,100.00 0.00 23,250.00 (132.39)(454.00)16 TRANSACTION REPORTFor the period September 1, 2017 - September 30, 2017SAN RAFAELMaturity Par value orsharesInterest Transaction totalPrincipalTransactionCusip Sec type DescriptionTrade dateSettle dateRealizedgain(loss)0.0009/01/201709/05/2017Principal Paydowns888599LS4 Municipal/Provincial Bonds PT. SAN ASSESS DISTRICT 09/02/2032 (65,100.00) 65,100.00 65,100.000.005,250.0009/05/201709/05/2017Income3136G0ZH7 Government Agencies FNMA 1.05 09-05-2017 09/05/2017 1,000,000.00 0.00 5,250.000.000.0009/05/201709/05/2017Capital Change3136G0ZH7 Government Agencies FNMA 1.05 09-05-2017 09/05/2017 (1,000,000.00) 1,000,000.00 1,000,000.000.007,500.0009/08/201709/08/2017Income3133782M2 Government Agencies FEDERAL HOME LOAN BANK 03/08/2019 1,000,000.00 0.00 7,500.000.003,750.0009/08/201709/08/2017Income313380EC7 Government Agencies FHLB CONS BD .75 09-08-2017 09/08/2017 1,000,000.00 0.00 3,750.000.000.0009/08/201709/08/2017Capital Change313380EC7 Government Agencies FHLB CONS BD .75 09-08-2017 09/08/2017 (1,000,000.00) 1,000,000.00 1,000,000.000.006,875.0009/09/201709/09/2017Income313378A43 Government Agencies FEDERAL HOME LOAN BANK 03/09/2018 1,000,000.00 0.00 6,875.000.00(791.67)09/12/201709/13/2017Bought3133EHVX8 Government Agencies FEDERAL FARM CREDIT BANK 08/24/2020 1,000,000.00 (999,190.00) (999,981.67)0.00(59.72)09/12/201709/14/2017Bought89236TCF0 Corporate Bonds TOYOTA MOTOR CREDIT CORP 03/12/2020 500,000.00 (504,545.00) (504,604.72)0.006,875.0009/13/201709/13/2017Income313380FB8 Government Agencies FEDERAL HOME LOAN BANK 09/13/2019 1,000,000.00 0.00 6,875.000.002,187.5009/14/201709/14/2017Income3133EGFQ3 Government Agencies FEDERAL FARM CREDIT BANK 09/14/2018 500,000.00 0.00 2,187.500.0014,250.0009/14/201709/14/2017Income459200GJ4 Corporate Bonds INTL BUSINESS 5.7% DUE 09/14/2017 500,000.00 0.00 14,250.000.000.0009/14/201709/14/2017Capital Change459200GJ4 Corporate Bonds INTL BUSINESS 5.7% DUE 09/14/2017 (500,000.00) 500,000.00 500,000.000.004,125.0009/17/201709/17/2017Income25468PDD5 Corporate Bonds WALT DISNEY COMPANY/THE 09/17/2018 550,000.00 0.00 4,125.000.003,750.0009/19/201709/19/2017Income3134G3K58 Government Agencies FREDDIE MAC 1.5% 19/03/2020 03/19/2020 500,000.00 0.00 3,750.000.007,500.0009/26/201709/26/2017Income3134G3M49 Government Agencies FREDDIE MAC 1.5% 26/09/2019 09/26/2019 1,000,000.00 0.00 7,500.000.0055.42Income Cash and Cash Equivalents Cash55.420.00 0.000.0009/30/201717 ADDITIONAL INFORMATIONAs of September 30, 2017SAN RAFAELPast 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 getback 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 changesin 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 foryour 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. Thisdocument 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 beduplicated, 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 clientsInvestment 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 InvestorServices 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 ofskill 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 andCISCs 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 andthese 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 theaccount, 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 2Aof the Firms 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 generalinformation 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 accountshould 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 willremain 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 beprofitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed.For 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. WhenMoodys, 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 ofMoodys 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 anappropriate 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 theindices 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.The 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 notemust be auctioned on or before the third business day before the last business day of the month.The 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 notemust be auctioned on or before the third business day before the last business day of the month.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 notemust 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.The 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.18 ADDITIONAL INFORMATIONAs of September 30, 2017SAN RAFAELInsight 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 referencethe 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 YorkMellon 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)and 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 anddisclaims all expressed or implied warranties in connection therewith.© 2017 Insight Investment. All rights reserved.19 SAN RAFAELAugust 2017FOR PROFESSIONAL CLIENTS ONLYNOT TO BE DISTRIBUTED TO RETAIL CLIENTSTHIS DOCUMENT SHOULD NOT BE REPRODUCED INANY FORM WITHOUT PRIOR WRITTEN APPROVAL ContentsFixed income market review 3Activity and performance summary 4Recap of securities held6Maturity distribution of securities held 7Securities held8GASB 40 - Deposit and investment risk disclosure 12Securities purchased15Securities sold and matured 16Transaction report17Additional information18 FIXED INCOME MARKET REVIEWAs of August 31, 2017SAN RAFAELChart 1: Consumer Price Index: 7/31/2012—7/31/2017Source: BloombergFinanceLP, August 31, 2017.Chart 2: Treasury yield curve: 8/31/2016 and 8/31/2017Source: Bloomberg Finance LP, August 31, 2017.Economic Indicators and Monetary PolicyThe economic data started the month on a soft note with the Institute for SupplyManagement (ISM) indices both decreasing. On August 1 the July ISM Manufacturing indexwas released at 56.3%, down from the June level of 57.8% and less than expectations of56.5%. The July ISM Non-Manufacturing Index was released onAugust 3 and followed asimilar pattern; the Index decreased to 53.9% compared to the prior month reading of57.4% andexpectationsof 56.9%.Sentiment improved with the release of the July payroll report on August 4 which showedthat US employers added 209,000 jobs compared to expectations for 180,000. Theunemployment rate decreased 0.1% to 4.3% in July and the underemployment rate wasunchanged at 8.6%. Average hourly earnings were also unchanged at 2.5% growth year-over-year for July, better than expectationsfor 2.4% annual growth.In a continuing low inflation theme, indicators reflected muted pricing pressures again inJuly and were below the Federal Reserve target. The July Producer Price Index (PPI)released on August 10 fell 0.1% month-over-month at both theheadline number and corelevel, which excludes the volatile food and energy components. Year-over-year, the JulyPPI readings were 1.9% at the headline level and 1.8% for the core reading. Although theJuly Consumer Price Index (CPI) released on August 11 increased 0.1% on a monthly basis,both headline and core levels were at 1.7% on a year-over-year basis. (See Chart 1.)The economic releases ended the month on a positive tone withthe second estimate ofsecond quarter Gross Domestic Product (GDP). Released on August 30, second quarterGDP increased to 3.0% from an original estimate of 2.6%. Personal consumption increasedto3.3% in the second estimatefrom 2.8%.Interest Rate SummaryAt the end of August the 3-month US Treasury bill yielded 0.99%, the 6-month US Treasurybill yielded 1.08%, the 2-year US Treasury note yielded 1.33%, the 5-year US Treasury noteyielded 1.70% and the 10-year US Treasury note yielded 2.12%. (See Chart 2).-0.500.000.501.001.502.002.503.00Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17Yearly % changeCPICPI Ex Food and Energy0.00%0.50%1.00%1.50%2.00%2.50%3.00%3 m 6 m 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 yr 10 yrPercentage8/31/20178/31/20163 ACTIVITY AND PERFORMANCE SUMMARYFor the period August 1, 2017 - August 31, 2017SAN RAFAELAmortized Cost Basis Activity Summary24,676,164.08Opening balance14,998.60Income received14,998.60Total receipts(144.33)Expenses paid(144.33)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Realized gain (loss)(4,632.81)Total amortization expense826.46Total OID/MKT accretion income0.00Return of capitalClosing balance24,687,212.00Ending fair value24,633,879.93(53,332.07)Unrealized gain (loss)Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.75 0.50 0.10Overnight Repo0.71 0.47 0.09Merrill Lynch 3m US Treas Bill 0.65 0.45 0.08Merrill Lynch 6m US Treas Bill 0.76 0.50 0.09ML 1 Year US Treasury Note 0.95 0.57 0.10ML 2 Year US Treasury Note 1.18 0.66 0.11ML 5 Year US Treasury Note 1.74 0.93 0.15* rates reflected are cumulativeSummary of Amortized Cost Basis Return for the PeriodTotal portfolioInterest earned31,864.90Accretion (amortization)(3,806.35)Realized gain (loss) on sales0.00Total income on portfolio28,058.55Average daily amortized cost24,681,304.35Period return (%)Weighted average final maturity in days825YTD return (%)Detail of Amortized Cost Basis ReturnInterestearnedRealizedgain (loss)Accretion(amortization)Totalincome0.00Cash and Cash Equivalents 27.21 0.00 27.210.00Corporate Bonds 6,958.34 (2,599.92) 4,358.420.00Government Agencies 14,589.59 (1,563.17) 13,026.420.00Government Bonds 3,636.26 356.74 3,993.000.00Municipal/Provincial Bonds 6,653.50 0.00 6,653.50Total 31,864.90 (3,806.35) 0.00 28,058.550.110.864 ACTIVITY AND PERFORMANCE SUMMARYFor the period August 1, 2017 - August 31, 2017SAN RAFAELFair Value Basis Activity Summary24,613,409.20Opening balance14,998.60Income received14,998.60Total receipts(144.33)Expenses paid(144.33)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Unrealized gain (loss) on security movements0.00Return of capitalChange in fair value for the period5,616.46Ending fair value24,633,879.93Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.75 0.50 0.10Overnight Repo0.71 0.47 0.09Merrill Lynch 3m US Treas Bill 0.62 0.40 0.09Merrill Lynch 6m US Treas Bill 0.82 0.47 0.13ML 1 Year US Treasury Note 0.65 0.33 0.10ML US Treasury 1-30.52 0.61 0.19ML US Treasury 1-50.44 1.06 0.34* rates reflected are cumulativeDetail of Fair Value Basis ReturnInterestearnedChange infair valueTotalincomeCash and Cash Equivalents 27.21 0.00 27.21Corporate Bonds 6,958.34 (2,544.60) 4,413.74Government Agencies 14,589.59 5,567.50 20,157.09Government Bonds 3,636.26 2,593.56 6,229.82Municipal/Provincial Bonds 6,653.50 0.00 6,653.50Total31,864.90 5,616.46 37,481.36Summary of Fair Value Basis Return for the PeriodTotal portfolioInterest earned31,864.90Total income on portfolio37,481.36Average daily total value *24,745,750.44Period return (%)0.15Weighted average final maturity in days825Change in fair value5,616.46YTD return (%)0.98* Total value equals market value and accrued interest5 RECAP OF SECURITIES HELDAs of August 31, 2017SAN RAFAELWeightedaveragefinalmaturity (days)Weightedaverageeffectiveduration (years)PercentofportfolioAmortizedcostHistoricalcostFair value Unrealizedgain (loss)Cash and Cash Equivalents (925,247.72) (925,247.72) (925,247.72) 0.00 (3.73) 0.001Corporate Bonds 4,137,561.50 4,061,578.74 4,052,368.85(9,209.89) 332 16.69 0.88Government Agencies 15,653,080.03 15,628,501.37 15,584,352.50 (44,148.87) 508 63.15 1.19Government Bonds 4,399,976.57 4,401,579.61 4,401,606.30 26.69 632 17.75 1.69Municipal/Provincial Bonds 1,520,800.00 1,520,800.00 1,520,800.00 0.00 5,481 6.14 10.31Total24,786,170.38 24,687,212.00 24,633,879.93 (53,332.07) 825 100.00 1.83Cash and Cash Equivalents (3.73)Corporate Bonds 16.69Government Agencies 63.15Government Bonds 17.75Municipal/Provincial Bonds 6.14Portfolio diversification (%)6 MATURITY DISTRIBUTION OF SECURITIES HELDAs of August 31, 2017SAN RAFAELMaturityHistoric cost PercentUnder 90 days4,147,682.28 16.7390 to 179 days501,930.00 2.03180 days to 1 year3,003,915.00 12.121 to 2 years7,943,852.00 32.052 to 3 years6,664,581.10 26.893 to 4 years1,003,410.00 4.054 to 5 years0.00 0.00Over 5 years1,520,800.00 6.1424,786,170.38 100.00Maturity distribution7 SECURITIES HELDAs of August 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCash and Cash Equivalents0.000(925,247.72) (925,247.72)0.000.00 0.00 0.00 0.000.00 0.00Cash and Cash Equivalents(3.73)(925,247.72)(925,247.72)Total Cash and Cash Equivalents(925,247.72) (925,247.72) (925,247.72) 0.00 0.00 0.000.00 0.00(3.73)0.000.00(925,247.72)Corporate Bonds459200GJ4 5.700 09/14/2017 568,635.00 500,844.37(1,946.50)(366.37) 0.00 2,375.00 13,220.8309/13/20170.00 (1,809.36)IBM CORP 5.7% 14/09/20172.29500,478.00500,000.0094988J5A1 1.650 01/22/2018 501,930.00 500,390.96(198.00)(73.96) 0.00 687.50 893.750.00 (82.59)WELLS FARGO BANK NA 1.65%22/01/20182.03500,317.00500,000.00037833AJ9 1.000 05/03/2018 498,090.00 499,424.16183.50(649.16) 0.00 416.67 1,638.890.00 71.10APPLE INC 1% 03/05/20182.01498,775.00500,000.00084670BX5 1.150 08/15/2018 500,355.00 500,168.93(107.50)(1,632.93) 2,875.00 479.17 255.560.00 (14.69)BERKSHIRE HATHAWAY INC1.15% 15/08/20182.02498,536.00500,000.0025468PDD5 1.500 09/17/2018 555,351.50 552,786.62(28.60)(2,826.77) 0.00 687.50 3,758.330.00 (221.75)WALT DISNEY COMPANY/THE1.5% 17/09/20182.24549,959.85550,000.0091159HHE3 1.950 11/15/2018 509,425.00 505,012.07(287.00)(2,593.57) 0.00 812.50 2,870.8310/15/20180.00 (345.66)US BANCORP 1.95%15/11/2018 (CALLABLE15/10/18)2.06502,418.50500,000.00713448CK2 2.250 01/07/2019 505,530.00 504,111.62(177.00)596.38 0.00 937.50 1,687.5012/07/20180.00 (253.28)PEPSICO INC 2.25% 07/01/2019(CALLABLE 07/12/18)2.04504,708.00500,000.008 SECURITIES HELDAs of August 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCorporate Bonds14912L6R7 1.350 05/18/2019 498,245.00 498,840.0116.50(1,663.51) 0.00 562.50 1,931.250.00 56.31CATERPILLAR FINL SERVICE1.35% 18/05/20192.01497,176.50500,000.00Total Corporate Bonds4,137,561.50 4,061,578.74 4,052,368.85 (9,209.89) 2,875.00 6,958.340.00 (2,599.92)16.6926,256.94(2,544.60)4,050,000.00Government Agencies3136G0ZH7 1.050 09/05/2017 1,005,150.00 1,000,033.40(74.00)(7.40) 0.00 875.00 5,133.330.00 (200.39)FANNIE MAE 1.05% 05/09/2017CALLABLE4.061,000,026.001,000,000.00313380EC7 0.750 09/08/2017 998,790.00 999,986.90370.00(36.90) 0.00 625.00 3,604.170.00 49.12FEDERAL HOME LOAN BANK0.75% 08/09/20174.03999,950.001,000,000.003130A5L56 0.900 10/27/2017 999,070.00 999,937.85230.00(257.85) 0.00 750.00 3,100.000.00 32.70FEDERAL HOME LOAN BANK0.9% 27/10/20174.03999,680.001,000,000.003130A6D87 0.900 11/20/2017 1,000,660.00 1,000,065.10530.00(395.10) 0.00 750.00 2,525.000.00 (24.42)FEDERAL HOME LOAN BANK0.9% 20/11/20174.04999,670.001,000,000.00313378A43 1.375 03/09/2018 1,007,970.00 1,001,619.71127.00(533.71) 0.00 1,145.83 6,569.440.00 (257.10)FEDERAL HOME LOAN BANK1.375% 09/03/20184.071,001,086.001,000,000.003133EGFQ3 0.875 09/14/2018 500,497.00 500,230.05458.50(2,315.05) 0.00 364.58 2,029.510.00 (18.45)FEDERAL FARM CREDIT BANK0.875% 14/09/20182.02497,915.00500,000.003133EGM69 1.100 12/05/2018 1,247,248.75 1,248,263.77675.00(1,613.77) 0.00 1,145.83 3,284.720.00 114.47FEDERAL FARM CREDIT BANK1.1% 05/12/20185.031,246,650.001,250,000.003135G0H63 1.375 01/28/2019 1,012,490.00 1,007,121.12339.00(6,463.12) 0.00 1,145.84 1,260.420.00 (420.54)FANNIE MAE 1.375%28/01/20194.081,000,658.001,000,000.009 SECURITIES HELDAs of August 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Agencies3133782M2 1.500 03/08/2019 1,014,124.28 1,008,313.75(650.00)(6,153.75) 0.00 1,250.00 7,208.330.00 (455.14)FEDERAL HOME LOAN BANK1.5% 08/03/20194.091,002,160.001,000,000.003135G0L76 1.075 07/11/2019 599,100.00 599,401.49552.00(4,951.49) 0.00 537.50 895.8310/11/20170.00 26.76FANNIE MAE 1.075%11/07/2019 (CALLABLE11/10/17)2.42594,450.00600,000.003133EGSC0 1.000 08/26/2019 1,000,610.00 1,000,402.921,000.00(12,502.92) 5,000.00 833.33 138.890.00 (16.88)FEDERAL FARM CREDIT BANK1% 26/08/20194.04987,900.001,000,000.00313380FB8 1.375 09/13/2019 1,011,510.00 1,007,914.4790.00(9,184.47) 0.00 1,145.84 6,416.670.00 (323.93)FEDERAL HOME LOAN BANK1.375% 13/09/20194.08998,730.001,000,000.003134G3M49 1.500 09/26/2019 1,001,001.00 1,000,940.49150.009.51 0.00 1,250.00 6,458.330.00 (37.82)FREDDIE MAC 1.5% 26/09/2019CALLABLE4.041,000,950.001,000,000.003130ABCH7 1.500 11/04/2019 750,030.00 750,027.54300.00654.96 0.00 937.50 3,656.250.00 (1.05)FEDERAL HOME LOAN BANK1.5% 04/11/20193.03750,682.50750,000.003133ECEY6 1.450 02/11/2020 1,003,130.00 1,002,360.901,500.00(1,090.90) 7,250.00 1,208.34 805.560.00 (80.39)FEDERAL FARM CREDIT BANK1.45% 11/02/20204.051,001,270.001,000,000.003134G3K58 1.500 03/19/2020 498,289.00 498,471.911,060.001,783.09 0.00 625.00 3,375.000.00 49.89FREDDIE MAC 1.5% 19/03/2020CALLABLE2.01500,255.00500,000.003135G0RM7 1.630 10/30/2020 1,003,410.00 1,003,410.00(1,090.00)(1,090.00) 0.00 0.00 5,659.72(5,659.72) 0.00FANNIE MAE 1.63% 30/10/2020CALLABLE4.051,002,320.001,000,000.00Total Government Agencies15,653,080.03 15,628,501.37 15,584,352.50 (44,148.87) 12,250.00 14,589.59(5,659.72) (1,563.17)63.1562,121.175,567.5015,600,000.0010 SECURITIES HELDAs of August 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Bonds912828G20 0.875 11/15/2017 500,625.00 500,055.49139.50(256.49) 0.00 368.55 1,283.970.00 (22.63)USA TREASURY 0.875%15/11/20172.02499,799.00500,000.00912828UR9 0.750 02/28/2018 997,500.00 999,491.00547.00(1,444.00) 3,750.00 631.79 0.000.00 87.18USA TREASURY 0.75%28/02/20184.02998,047.001,000,000.00912828WL0 1.500 05/31/2019 501,230.47 500,962.0678.00561.44 0.00 635.25 1,885.250.00 (46.74)USA TREASURY 1.5%31/05/20192.02501,523.50500,000.00912828TV2 1.250 10/31/2019 649,009.77 649,152.30533.00(421.75) 0.00 684.44 2,715.690.00 33.22USA TREASURY 1.25%31/10/20192.62648,730.55650,000.00912828H52 1.250 01/31/2020 745,869.14 746,176.571,172.251,743.68 0.00 789.74 789.740.00 134.23USA TREASURY 1.25%31/01/20203.01747,920.25750,000.00912828XM7 1.625 07/31/2020 1,005,742.19 1,005,742.19(156.19)(156.19) 0.00 0.00 1,368.89(1,368.89) 0.00USA TREASURY 1.625%31/07/20204.061,005,586.001,000,000.00Total Government Bonds4,399,976.57 4,401,579.61 4,401,606.30 26.69 3,750.00 3,109.77(1,368.89) 185.2617.758,043.542,313.564,400,000.00Municipal/Provincial Bonds888599LS4 5.250 09/02/2032 1,520,800.00 1,520,800.000.000.00 0.00 6,653.50 33,267.500.00 0.00PT. SAN ASSESS DISTRICT5.25% 144A 02/09/2032SANRAF$016.141,520,800.001,520,800.00Total Municipal/Provincial Bonds1,520,800.00 1,520,800.00 1,520,800.00 0.00 0.00 6,653.500.00 0.006.1433,267.500.001,520,800.00Grand total24,786,170.38 24,687,212.005,336.46(53,332.07) 18,875.00 31,311.2024,645,552.28(7,028.61) (3,977.83)100.00129,689.1524,633,879.9311 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of August 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesFederal Home Loan Banks313380EC7FEDERAL HOME LOAN 0.750 09/08/2017 AA+ Aaa 998,790.00 4.03 999,950.00 4.06 0.021,000,000.003130A5L56FEDERAL HOME LOAN 0.900 10/27/2017 AA+ Aaa 999,070.00 4.03 999,680.00 4.06 0.151,000,000.003130A6D87FEDERAL HOME LOAN 0.900 11/20/2017 AA+ Aaa 1,000,660.00 4.04 999,670.00 4.06 0.221,000,000.00313378A43FEDERAL HOME LOAN 1.375 03/09/2018 AA+ Aaa 1,007,970.00 4.07 1,001,086.00 4.06 0.511,000,000.003133782M2FEDERAL HOME LOAN 1.500 03/08/2019 AA+ Aaa 1,014,124.28 4.09 1,002,160.00 4.07 1.481,000,000.00313380FB8FEDERAL HOME LOAN 1.375 09/13/2019 AA+ Aaa 1,011,510.00 4.08 998,730.00 4.05 1.991,000,000.003130ABCH7FEDERAL HOME LOAN 1.500 11/04/2019 AA+ Aaa 750,030.00 3.03 750,682.50 3.05 2.13750,000.00Issuer total6,750,000.00 6,782,154.28 27.36 6,751,958.50 27.41 0.89United States Treasury Note/Bond912828G20USA TREASURY 0.875% 0.875 11/15/2017 AA+ Aaa 500,625.00 2.02 499,799.00 2.03 0.20500,000.00912828UR9USA TREASURY 0.75% 0.750 02/28/2018 AA+ Aaa 997,500.00 4.02 998,047.00 4.05 0.491,000,000.00912828WL0USA TREASURY 1.5% 1.500 05/31/2019 AA+ Aaa 501,230.47 2.02 501,523.50 2.04 1.71500,000.00912828TV2USA TREASURY 1.25% 1.250 10/31/2019 AA+ Aaa 649,009.77 2.62 648,730.55 2.63 2.12650,000.00912828H52USA TREASURY 1.25% 1.250 01/31/2020 AA+ Aaa 745,869.14 3.01 747,920.25 3.04 2.37750,000.00912828XM7USA TREASURY 1.625% 1.625 07/31/2020 AA+ Aaa 1,005,742.19 4.06 1,005,586.00 4.08 2.841,000,000.00Issuer total4,400,000.00 4,399,976.57 17.75 4,401,606.30 17.87 1.69Federal Farm Credit Banks3133EGFQ3FEDERAL FARM CREDIT 0.875 09/14/2018 AA+ Aaa 500,497.00 2.02 497,915.00 2.02 1.02500,000.003133EGM69FEDERAL FARM CREDIT 1.100 12/05/2018 AA+ Aaa 1,247,248.75 5.03 1,246,650.00 5.06 1.241,250,000.003133EGSC0FEDERAL FARM CREDIT 1.000 08/26/2019 AA+ Aaa 1,000,610.00 4.04 987,900.00 4.01 1.961,000,000.003133ECEY6FEDERAL FARM CREDIT 1.450 02/11/2020 AA+ Aaa 1,003,130.00 4.05 1,001,270.00 4.06 2.401,000,000.00Issuer total3,750,000.00 3,751,485.75 15.14 3,733,735.00 15.16 1.7112 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of August 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesFederal National Mortgage Association3136G0ZH7FANNIE MAE 1.05% 1.050 09/05/2017 AA+ Aaa 1,005,150.00 4.06 1,000,026.00 4.06 0.011,000,000.003135G0H63FANNIE MAE 1.375% 1.375 01/28/2019 AA+ Aaa 1,012,490.00 4.08 1,000,658.00 4.06 1.391,000,000.003135G0L76FANNIE MAE 1.075% 1.075 07/11/2019 10/11/2017 AA+ Aaa 599,100.00 2.42 594,450.00 2.41 1.73600,000.003135G0RM7FANNIE MAE 1.63% 1.630 10/30/2020 AA+ Aaa 1,003,410.00 4.05 1,002,320.00 4.07 3.061,000,000.00Issuer total3,600,000.00 3,620,150.00 14.61 3,597,454.00 14.60 1.53Federal Home Loan Mortgage Corp3134G3M49FREDDIE MAC 1.5% 1.500 09/26/2019 AA+ Aaa 1,001,001.00 4.04 1,000,950.00 4.06 0.301,000,000.003134G3K58FREDDIE MAC 1.5% 1.500 03/19/2020 AA+ Aaa 498,289.00 2.01500,255.00 2.03 0.75500,000.00Issuer total1,500,000.00 1,499,290.00 6.05 1,501,205.00 6.09 0.45Walt Disney Co/The25468PDD5WALT DISNEY 1.500 09/17/2018 A+ A2 555,351.50 2.24 549,959.85 2.23 1.03550,000.00Issuer total550,000.00 555,351.50 2.24 549,959.85 2.23 1.03OthersPENDING TRADE 0.000(1,009,069.72) (4.07) (1,009,069.72) (4.10) 0.00(1,009,069.72)888599LS4PT. SAN ASSESS 5.250 09/02/2032 NR NR 1,520,800.00 6.14 1,520,800.00 6.17 10.311,520,800.00Issuer total511,730.28 511,730.28 2.06 511,730.28 2.08 30.64PepsiCo Inc713448CK2PEPSICO INC 2.25% 2.250 01/07/2019 12/07/2018 A+ A1 505,530.00 2.04 504,708.00 2.05 1.25500,000.00Issuer total500,000.00 505,530.00 2.04 504,708.00 2.05 1.25US Bancorp91159HHE3US BANCORP 1.95% 1.950 11/15/2018 10/15/2018 A+ A1 509,425.00 2.06 502,418.50 2.04 1.12500,000.00Issuer total500,000.00 509,425.00 2.06 502,418.50 2.04 1.1213 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of August 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesInternational Business Machines Corp459200GJ4IBM CORP 5.7% 5.700 09/14/2017 09/13/2017 A+ A1 568,635.00 2.29 500,478.00 2.03 0.04500,000.00Issuer total500,000.00 568,635.00 2.29 500,478.00 2.03 0.04Wells Fargo Bank NA94988J5A1WELLS FARGO BANK NA 1.650 01/22/2018 AA- Aa2 501,930.00 2.03 500,317.00 2.03 0.39500,000.00Issuer total500,000.00 501,930.00 2.03 500,317.00 2.03 0.39Apple Inc037833AJ9APPLE INC 1% 03/05/2018 1.000 05/03/2018 AA+ Aa1 498,090.00 2.01 498,775.00 2.02 0.66500,000.00Issuer total500,000.00 498,090.00 2.01 498,775.00 2.02 0.66Berkshire Hathaway Inc084670BX5BERKSHIRE HATHAWAY 1.150 08/15/2018 AA Aa2 500,355.00 2.02 498,536.00 2.02 0.94500,000.00Issuer total500,000.00 500,355.00 2.02 498,536.00 2.02 0.94Caterpillar Financial Services Corp14912L6R7CATERPILLAR FINL 1.350 05/18/2019 A A3 498,245.00 2.01 497,176.50 2.02 1.68500,000.00Issuer total500,000.00 498,245.00 2.01 497,176.50 2.02 1.68Cash and Cash EquivalentsINVESTED CASH 0.00083,822.00 0.34 83,822.00 0.34 0.0083,822.00Issuer total83,822.00 83,822.00 0.34 83,822.00 0.34 0.00Grand total24,645,552.28 24,786,170.38 100.00 24,633,879.93 100.001.8314 SECURITIES PURCHASEDFor the period August 1, 2017 - August 31, 2017SAN RAFAELPar value orsharesUnit cost Accruedinterest purchasedTrade dateSettle dateCoupon Maturity/Call datePrincipalcostCusip / Description / BrokerGovernment Agencies3135G0RM71.63008/31/2017 10/30/2020 1,000,000.00 100.34 (1,003,410.00) (5,659.72)FANNIE MAE 1.63% 30/10/2020 CALLABLE 09/05/2017WELLS FARGO SECURITIES INTL LTD1,000,000.00 (1,003,410.00) (5,659.72)Total Government AgenciesGovernment Bonds912828XM71.62508/31/2017 07/31/2020 1,000,000.00 100.57 (1,005,742.19) (1,368.89)USA TREASURY 1.625% 31/07/202008/31/2017HSBC SECURITIES (USA) INC.1,000,000.00 (1,005,742.19) (1,368.89)Total Government BondsGrand totalGrand total2,000,000.00 (2,009,152.19) (7,028.61)15 SECURITIES SOLD AND MATUREDFor the period August 1, 2017 - August 31, 2017SAN RAFAELHistorical cost Amortized costat sale or maturity/Accr (amort)Fair value atsale or maturity /Chg.in fair valueRealizedgain(loss)PriceCouponTrade dateSettle dateMaturity/Call datePar value orsharesCusip/Description/BrokerAccruedinterestsoldInterestreceivedInterestearnedGovernment Bonds912828TM2USA TREASURY 0.625%31/08/20170.62508/31/2017 (1,000,000.00) 994,921.88 1,000,000.00171.480.00280.001,000,000.00 0.00 0.00 3,125.00 526.4908/31/2017(1,000,000.00)0.00994,921.88171.481,000,000.00280.001,000,000.00 0.00 3,125.00 526.49Total (Government Bonds)Grand totalGrand total(1,000,000.00)0.00994,921.88171.481,000,000.00 1,000,000.00 0.00 3,125.00 526.49280.0016 TRANSACTION REPORTFor the period August 1, 2017 - August 31, 2017SAN RAFAELMaturity Par value orsharesInterest Transaction totalPrincipalTransactionCusip Sec type DescriptionTrade dateSettle dateRealizedgain(loss)7,250.0008/11/201708/11/2017Income3133ECEY6 Government Agencies FEDERAL FARM CREDIT BANK 02/11/2020 1,000,000.00 0.00 7,250.000.002,875.0008/15/201708/15/2017Income084670BX5 Corporate Bonds BERKSHIRE HATHAWAY INC 08/15/2018 500,000.00 0.00 2,875.000.005,000.0008/26/201708/26/2017Income3133EGSC0 Government Agencies FEDERAL FARM CREDIT BANK 08/26/2019 1,000,000.00 0.00 5,000.000.00(5,659.72)08/31/201709/05/2017Bought3135G0RM7 Government Agencies FANNIE MAE 1.63% 30/10/2020 10/30/2020 1,000,000.00 (1,003,410.00) (1,009,069.72)0.003,125.0008/31/201708/31/2017Income912828TM2 Government Bonds USA TREASURY 0.625% 08/31/2017 1,000,000.00 0.00 3,125.000.000.0008/31/201708/31/2017Capital Change912828TM2 Government Bonds USA TREASURY 0.625% 08/31/2017 (1,000,000.00) 1,000,000.00 1,000,000.000.003,750.0008/31/201708/31/2017Income912828UR9 Government Bonds USA TREASURY 0.75% 02/28/2018 1,000,000.00 0.00 3,750.000.00(1,368.89)08/31/201708/31/2017Bought912828XM7 Government Bonds USA TREASURY 1.625% 07/31/2020 1,000,000.00 (1,005,742.19) (1,007,111.08)0.0027.21Income Cash and Cash Equivalents Cash27.210.00 0.000.0008/31/201717 ADDITIONAL INFORMATIONAs of August 31, 2017SAN RAFAELPast 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 getback 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 changesin 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 foryour 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. Thisdocument 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 beduplicated, 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 clientsInvestment 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 InvestorServices 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 ofskill 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 andCISCs 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 andthese 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 theaccount, 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 2Aof the Firms 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 generalinformation 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 accountshould 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 willremain 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 beprofitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed.For 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. WhenMoodys, 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 ofMoodys 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 anappropriate 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 theindices 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.The 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 notemust be auctioned on or before the third business day before the last business day of the month.The 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 notemust be auctioned on or before the third business day before the last business day of the month.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 notemust 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.The 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.18 ADDITIONAL INFORMATIONAs of August 31, 2017SAN RAFAELInsight 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 referencethe 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 YorkMellon 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)and 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 anddisclaims all expressed or implied warranties in connection therewith.© 2017 Insight Investment. All rights reserved.19 SAN RAFAELJuly 2017FOR PROFESSIONAL CLIENTS ONLYNOT TO BE DISTRIBUTED TO RETAIL CLIENTSTHIS DOCUMENT SHOULD NOT BE REPRODUCED INANY FORM WITHOUT PRIOR WRITTEN APPROVAL ContentsFixed income market review 3Activity and performance summary 4Recap of securities held6Maturity distribution of securities held 7Securities held8GASB 40 - Deposit and investment risk disclosure 12Securities purchased15Securities sold and matured 16Transaction report17Additional information18 FIXED INCOME MARKET REVIEWAs of July 31, 2017SAN RAFAELChart 1: Labor force participation rate: 6/30/07—6/30/2017Source: BloombergFinance LP, July 31, 2017.Chart 2: Treasury yield curve: 07/31/2016 and 07/31/2017Source: Bloomberg FinanceLP, July 31, 2017.Economic Indicators and Monetary PolicyThe payroll report released on July 7 showed that US employers added 222,000 new jobsin June compared to expectations for 178,000. Revisions to the May data pushed jobgrowth to 152,000 versus the original report of 138,000. Thehousehold survey showedthat the unemployment rate increased 0.1% to 4.4% in June andthe underemployment rateincreased to 8.6% from 8.4% in May. Average hourly earnings were less than expected at2.5% growth year-over-year for June, and the May data was reviseddown 0.1% to 2.4%.The labor force participate rate, which is the share of working-age people who areemployed or actively looking for work, rose to 62.8% in June from 62.7% in May. Theparticipation rate is expected to remain low even with a strong economy or job marketreflecting demographic shifts as baby boomers age and leavethe labor force. For the last10 years, the participation rate peaked at 66.2% in January 2008 and reached a low of62.4% in September 2015. (See Chart 1).Inflation indicators reflected muted pricing pressures inJune. The June Consumer PriceIndex (CPI) was released on July 14, and both headline and core levels remained below2.0% year-over-year. Headline CPI fell to 1.6% year-over-year from 1.9% in May andexcluding food and energy the June reading was unchanged from May at 1.7%. TheProducer Price Index (PPI) released on July 13 fell 0.4% at the headline level to 2.0% year-over-year in June;excluding food and energy PPI fell 0.2% to1.9%.The first estimate of second quarter US Gross Domestic Product (GDP) was releasedon July28 at 2.6% compared to first quarter GDP at 1.2%. Personal consumption increased for thefirst reading of the second quarter data to 2.8% from a revised level in the first quarter of1.9%growth.Interest Rate SummaryAt the end of July the 3-month US Treasury bill yielded 1.08%,the 6-month US Treasury billyielded 1.13%, the 2-year US Treasury note yielded 1.35%, the 5-year US Treasury noteyielded 1.84% and the 10-year US Treasury note yielded 2.30%. (See Chart 2).62.062.563.063.564.064.565.065.566.066.567.0Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17Quarterly % change0.00%0.50%1.00%1.50%2.00%2.50%3.00%3 m 6 m 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 yr 10 yrPercentage7/31/20177/31/20163 ACTIVITY AND PERFORMANCE SUMMARYFor the period July 1, 2017 - July 31, 2017SAN RAFAELAmortized Cost Basis Activity Summary24,656,117.09Opening balance23,954.87Income received23,954.87Total receipts(144.10)Expenses paid(144.10)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Realized gain (loss)(4,617.68)Total amortization expense853.90Total OID/MKT accretion income0.00Return of capitalClosing balance24,676,164.08Ending fair value24,613,409.20(62,754.88)Unrealized gain (loss)Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.69 0.45 0.10Overnight Repo0.66 0.42 0.09Merrill Lynch 3m US Treas Bill 0.59 0.40 0.09Merrill Lynch 6m US Treas Bill 0.70 0.45 0.09ML 1 Year US Treasury Note 0.89 0.53 0.10ML 2 Year US Treasury Note 1.13 0.64 0.12ML 5 Year US Treasury Note 1.69 0.92 0.16* rates reflected are cumulativeSummary of Amortized Cost Basis Return for the PeriodTotal portfolioInterest earned32,444.71Accretion (amortization)(3,763.78)Realized gain (loss) on sales0.00Total income on portfolio28,680.93Average daily amortized cost24,662,547.69Period return (%)Weighted average final maturity in days766YTD return (%)Detail of Amortized Cost Basis ReturnInterestearnedRealizedgain (loss)Accretion(amortization)Totalincome0.00Cash and Cash Equivalents 167.37 0.00 167.370.00Corporate Bonds 7,190.26 (2,599.93) 4,590.330.00Government Agencies 14,784.22 (1,520.57) 13,263.650.00Government Bonds 3,649.36 356.72 4,006.080.00Municipal/Provincial Bonds 6,653.50 0.00 6,653.50Total 32,444.71 (3,763.78) 0.00 28,680.930.120.754 ACTIVITY AND PERFORMANCE SUMMARYFor the period July 1, 2017 - July 31, 2017SAN RAFAELFair Value Basis Activity Summary24,576,626.78Opening balance23,954.87Income received23,954.87Total receipts(144.10)Expenses paid(144.10)Total disbursements0.00Interportfolio transfers0.00Total Interportfolio transfers0.00Unrealized gain (loss) on security movements0.00Return of capitalChange in fair value for the period12,971.65Ending fair value24,613,409.20Comparative Rates of Return (%)* Twelvemonth trailing* Sixmonth trailing* One monthFed Funds0.69 0.45 0.10Overnight Repo0.66 0.42 0.09Merrill Lynch 3m US Treas Bill 0.54 0.35 0.09Merrill Lynch 6m US Treas Bill 0.69 0.39 0.11ML 1 Year US Treasury Note 0.54 0.29 0.13ML US Treasury 1-30.16 0.52 0.21ML US Treasury 1-5 (0.21) 0.87 0.28* rates reflected are cumulativeDetail of Fair Value Basis ReturnInterestearnedChange infair valueTotalincomeCash and Cash Equivalents 167.37 0.00 167.37Corporate Bonds 7,190.26 625.40 7,815.66Government Agencies 14,784.22 8,852.50 23,636.72Government Bonds 3,649.36 3,493.75 7,143.11Municipal/Provincial Bonds 6,653.50 0.00 6,653.50Total32,444.71 12,971.65 45,416.36Summary of Fair Value Basis Return for the PeriodTotal portfolioInterest earned32,444.71Total income on portfolio45,416.36Average daily total value *24,701,723.17Period return (%)0.18Weighted average final maturity in days766Change in fair value12,971.65YTD return (%)0.82* Total value equals market value and accrued interest5 RECAP OF SECURITIES HELDAs of July 31, 2017SAN RAFAELWeightedaveragefinalmaturity (days)Weightedaverageeffectiveduration (years)PercentofportfolioAmortizedcostHistoricalcostFair value Unrealizedgain (loss)Cash and Cash Equivalents 69,050.20 69,050.20 69,050.20 0.00 0.28 0.001Corporate Bonds 4,137,561.50 4,064,178.66 4,054,913.45(9,265.21) 363 16.71 0.96Government Agencies 14,649,670.03 14,626,654.54 14,575,375.00 (51,279.54) 494 59.15 1.17Government Bonds 4,389,156.26 4,395,480.68 4,393,270.55 (2,210.13) 421 17.72 1.13Municipal/Provincial Bonds 1,520,800.00 1,520,800.00 1,520,800.00 0.00 5,512 6.14 10.40Total24,766,237.99 24,676,164.08 24,613,409.20 (62,754.88) 766 100.00 1.69Cash and Cash Equivalents 0.28Corporate Bonds 16.71Government Agencies 59.15Government Bonds 17.72Municipal/Provincial Bonds 6.14Portfolio diversification (%)6 MATURITY DISTRIBUTION OF SECURITIES HELDAs of July 31, 2017SAN RAFAELMaturityHistoric cost PercentUnder 90 days4,635,617.08 18.7290 to 179 days2,003,215.00 8.09180 days to 1 year2,503,560.00 10.111 to 2 years7,443,597.00 30.062 to 3 years6,659,448.91 26.893 to 4 years0.00 0.004 to 5 years0.00 0.00Over 5 years1,520,800.00 6.1424,766,237.99 100.00Maturity distribution7 SECURITIES HELDAs of July 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCash and Cash Equivalents0.00069,050.20 69,050.200.000.00 0.00 0.00 0.000.00 0.00Cash and Cash Equivalents0.2869,050.2069,050.20Total Cash and Cash Equivalents69,050.20 69,050.20 69,050.20 0.00 0.00 0.000.00 0.000.280.000.0069,050.20Corporate Bonds459200GJ4 5.700 09/14/2017 568,635.00 502,653.73(1,879.50)(229.23) 0.00 2,454.16 10,845.8309/13/20170.00 (1,809.35)IBM CORP 5.7% 14/09/20172.30502,424.50500,000.0094988J5A1 1.650 01/22/2018 501,930.00 500,473.55176.0041.45 4,125.00 710.42 206.250.00 (82.60)WELLS FARGO BANK NA 1.65%22/01/20182.03500,515.00500,000.00037833AJ9 1.000 05/03/2018 498,090.00 499,353.06404.00(761.56) 0.00 430.55 1,222.220.00 71.09APPLE INC 1% 03/05/20182.01498,591.50500,000.00084670BX5 1.150 08/15/2018 500,355.00 500,183.62440.50(1,540.12) 0.00 495.14 2,651.390.00 (14.69)BERKSHIRE HATHAWAY INC1.15% 15/08/20182.02498,643.50500,000.0025468PDD5 1.500 09/17/2018 555,351.50 553,008.3748.40(3,019.92) 0.00 710.41 3,070.830.00 (221.75)WALT DISNEY COMPANY/THE1.5% 17/09/20182.24549,988.45550,000.0091159HHE3 1.950 11/15/2018 509,425.00 505,357.73134.00(2,652.23) 0.00 839.58 2,058.3310/15/20180.00 (345.66)US BANCORP 1.95%15/11/2018 (CALLABLE15/10/18)2.06502,705.50500,000.00713448CK2 2.250 01/07/2019 505,530.00 504,364.9034.50520.10 5,625.00 968.75 750.0012/07/20180.00 (253.28)PEPSICO INC 2.25% 07/01/2019(CALLABLE 07/12/18)2.04504,885.00500,000.008 SECURITIES HELDAs of July 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesCorporate Bonds14912L6R7 1.350 05/18/2019 498,245.00 498,783.701,267.50(1,623.70) 0.00 581.25 1,368.750.00 56.31CATERPILLAR FINL SERVICE1.35% 18/05/20192.01497,160.00500,000.00Total Corporate Bonds4,137,561.50 4,064,178.66 4,054,913.45 (9,265.21) 9,750.00 7,190.260.00 (2,599.93)16.7122,173.60625.404,050,000.00Government Agencies3136G0ZH7 1.050 09/05/2017 1,005,150.00 1,000,233.79(70.00)(133.79) 0.00 904.16 4,258.330.00 (200.39)FANNIE MAE 1.05% 05/09/2017CALLABLE4.061,000,100.001,000,000.00313380EC7 0.750 09/08/2017 998,790.00 999,937.78170.00(357.78) 0.00 645.84 2,979.170.00 49.12FEDERAL HOME LOAN BANK0.75% 08/09/20174.03999,580.001,000,000.003130A5L56 0.900 10/27/2017 999,070.00 999,905.15160.00(455.15) 0.00 775.00 2,350.000.00 32.71FEDERAL HOME LOAN BANK0.9% 27/10/20174.03999,450.001,000,000.003130A6D87 0.900 11/20/2017 1,000,660.00 1,000,089.52(80.00)(949.52) 0.00 775.00 1,775.000.00 (24.41)FEDERAL HOME LOAN BANK0.9% 20/11/20174.04999,140.001,000,000.00313378A43 1.375 03/09/2018 1,007,970.00 1,001,876.81(42.00)(917.81) 0.00 1,184.03 5,423.610.00 (257.09)FEDERAL HOME LOAN BANK1.375% 09/03/20184.071,000,959.001,000,000.003133EGFQ3 0.875 09/14/2018 500,497.00 500,248.50226.50(2,792.00) 0.00 376.74 1,664.930.00 (18.45)FEDERAL FARM CREDIT BANK0.875% 14/09/20182.02497,456.50500,000.003133EGM69 1.100 12/05/2018 1,247,248.75 1,248,149.30525.00(2,174.30) 0.00 1,184.03 2,138.890.00 114.48FEDERAL FARM CREDIT BANK1.1% 05/12/20185.041,245,975.001,250,000.003135G0H63 1.375 01/28/2019 1,012,490.00 1,007,541.66456.00(7,222.66) 6,875.00 1,184.02 114.580.00 (420.54)FANNIE MAE 1.375%28/01/20194.091,000,319.001,000,000.009 SECURITIES HELDAs of July 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Agencies3133782M2 1.500 03/08/2019 1,014,124.28 1,008,768.891,582.00(5,958.89) 0.00 1,291.66 5,958.330.00 (455.13)FEDERAL HOME LOAN BANK1.5% 08/03/20194.091,002,810.001,000,000.003135G0L76 1.075 07/11/2019 599,100.00 599,374.73720.00(5,476.73) 3,225.00 555.41 358.3310/11/20170.00 26.76FANNIE MAE 1.075%11/07/2019 (CALLABLE11/10/17)2.42593,898.00600,000.003133EGSC0 1.000 08/26/2019 1,000,610.00 1,000,419.801,380.00(13,519.80) 0.00 861.12 4,305.560.00 (16.88)FEDERAL FARM CREDIT BANK1% 26/08/20194.04986,900.001,000,000.00313380FB8 1.375 09/13/2019 1,011,510.00 1,008,238.40830.00(9,598.40) 0.00 1,184.02 5,270.830.00 (323.92)FEDERAL HOME LOAN BANK1.375% 13/09/20194.08998,640.001,000,000.003134G3M49 1.500 09/26/2019 1,001,001.00 1,000,978.31(201.00)(178.31) 0.00 708.33 5,208.33(4,500.00) (22.69)FREDDIE MAC 1.5% 26/09/2019CALLABLE4.041,000,800.001,000,000.003130ABCH7 1.500 11/04/2019 750,030.00 750,028.59705.00353.91 0.00 968.75 2,718.750.00 (1.06)FEDERAL HOME LOAN BANK1.5% 04/11/20193.03750,382.50750,000.003133ECEY6 1.450 02/11/2020 1,003,130.00 1,002,441.291,540.00(2,671.29) 0.00 1,248.61 6,847.220.00 (80.40)FEDERAL FARM CREDIT BANK1.45% 11/02/20204.05999,770.001,000,000.003134G3K58 1.500 03/19/2020 498,289.00 498,422.02855.00772.98 0.00 645.83 2,750.000.00 49.88FREDDIE MAC 1.5% 19/03/2020CALLABLE2.01499,195.00500,000.00Total Government Agencies14,649,670.03 14,626,654.54 14,575,375.00 (51,279.54) 10,100.00 14,492.55(4,500.00) (1,548.01)59.1554,121.868,756.5014,600,000.0010 SECURITIES HELDAs of July 31, 2017SAN RAFAELAmortized cost/Accretion(amortization)Fair value/Change in fairvalueInterestreceivedInterestearnedUnrealizedgain(loss)Coupon Maturity/Call dateHistorical cost/Accrued interestpurchasedCusip/DescriptionTotalaccruedinterest%PortcostPar value orsharesGovernment Bonds912828TM2 0.625 08/31/2017 994,921.88 999,828.52345.00(108.52) 0.00 526.50 2,598.510.00 171.49USA TREASURY 0.625%31/08/20174.02999,720.001,000,000.00912828G20 0.875 11/15/2017 500,625.00 500,078.12109.50(418.62) 0.00 368.54 915.420.00 (22.64)USA TREASURY 0.875%15/11/20172.02499,659.50500,000.00912828UR9 0.750 02/28/2018 997,500.00 999,403.82547.00(1,903.82) 0.00 631.80 3,118.210.00 87.17USA TREASURY 0.75%28/02/20184.03997,500.001,000,000.00912828WL0 1.500 05/31/2019 501,230.47 501,008.80332.00436.70 0.00 635.25 1,250.000.00 (46.75)USA TREASURY 1.5%31/05/20192.02501,445.50500,000.00912828TV2 1.250 10/31/2019 649,009.77 649,119.08812.50(921.53) 0.00 684.44 2,031.250.00 33.22USA TREASURY 1.25%31/10/20192.62648,197.55650,000.00912828H52 1.250 01/31/2020 745,869.14 746,042.341,347.75705.66 4,687.50 802.83 0.000.00 134.23USA TREASURY 1.25%31/01/20203.01746,748.00750,000.00Total Government Bonds4,389,156.26 4,395,480.68 4,393,270.55 (2,210.13) 4,687.50 3,649.360.00 356.7217.729,913.393,493.754,400,000.00Municipal/Provincial Bonds888599LS4 5.250 09/02/2032 1,520,800.00 1,520,800.000.000.00 0.00 6,653.50 26,614.000.00 0.00PT. SAN ASSESS DISTRICT5.25% 144A 02/09/2032SANRAF$016.141,520,800.001,520,800.00Total Municipal/Provincial Bonds1,520,800.00 1,520,800.00 1,520,800.00 0.00 0.00 6,653.500.00 0.006.1426,614.000.001,520,800.00Grand total24,766,237.99 24,676,164.0812,875.65(62,754.88) 24,537.50 31,985.6724,639,850.20(4,500.00) (3,791.22)100.00112,822.8524,613,409.2011 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of July 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesFederal Home Loan Banks313380EC7FEDERAL HOME LOAN 0.750 09/08/2017 AA+ Aaa 998,790.00 4.03 999,580.00 4.06 0.101,000,000.003130A5L56FEDERAL HOME LOAN 0.900 10/27/2017 AA+ Aaa 999,070.00 4.03 999,450.00 4.06 0.241,000,000.003130A6D87FEDERAL HOME LOAN 0.900 11/20/2017 AA+ Aaa 1,000,660.00 4.04 999,140.00 4.06 0.301,000,000.00313378A43FEDERAL HOME LOAN 1.375 03/09/2018 AA+ Aaa 1,007,970.00 4.07 1,000,959.00 4.07 0.591,000,000.003133782M2FEDERAL HOME LOAN 1.500 03/08/2019 AA+ Aaa 1,014,124.28 4.09 1,002,810.00 4.07 1.571,000,000.00313380FB8FEDERAL HOME LOAN 1.375 09/13/2019 AA+ Aaa 1,011,510.00 4.08 998,640.00 4.06 2.071,000,000.003130ABCH7FEDERAL HOME LOAN 1.500 11/04/2019 AA+ Aaa 750,030.00 3.03 750,382.50 3.05 2.21750,000.00Issuer total6,750,000.00 6,782,154.28 27.38 6,750,961.50 27.43 0.97United States Treasury Note/Bond912828TM2USA TREASURY 0.625% 0.625 08/31/2017 AA+ Aaa 994,921.88 4.02 999,720.00 4.06 0.081,000,000.00912828G20USA TREASURY 0.875% 0.875 11/15/2017 AA+ Aaa 500,625.00 2.02 499,659.50 2.03 0.29500,000.00912828UR9USA TREASURY 0.75% 0.750 02/28/2018 AA+ Aaa 997,500.00 4.03 997,500.00 4.05 0.571,000,000.00912828WL0USA TREASURY 1.5% 1.500 05/31/2019 AA+ Aaa 501,230.47 2.02 501,445.50 2.04 1.80500,000.00912828TV2USA TREASURY 1.25% 1.250 10/31/2019 AA+ Aaa 649,009.77 2.62 648,197.55 2.63 2.20650,000.00912828H52USA TREASURY 1.25% 1.250 01/31/2020 AA+ Aaa 745,869.14 3.01 746,748.00 3.03 2.45750,000.00Issuer total4,400,000.00 4,389,156.26 17.72 4,393,270.55 17.85 1.13Federal Farm Credit Banks3133EGFQ3FEDERAL FARM CREDIT 0.875 09/14/2018 AA+ Aaa 500,497.00 2.02 497,456.50 2.02 1.11500,000.003133EGM69FEDERAL FARM CREDIT 1.100 12/05/2018 AA+ Aaa 1,247,248.75 5.04 1,245,975.00 5.06 1.331,250,000.003133EGSC0FEDERAL FARM CREDIT 1.000 08/26/2019 AA+ Aaa 1,000,610.00 4.04 986,900.00 4.01 2.031,000,000.003133ECEY6FEDERAL FARM CREDIT 1.450 02/11/2020 AA+ Aaa 1,003,130.00 4.05 999,770.00 4.06 2.461,000,000.00Issuer total3,750,000.00 3,751,485.75 15.15 3,730,101.50 15.15 1.7912 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of July 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall datePar value orsharesFederal National Mortgage Association3136G0ZH7FANNIE MAE 1.05%1.050 09/05/2017AA+ Aaa1,005,150.00 4.06 1,000,100.00 4.06 0.101,000,000.003135G0H63FANNIE MAE 1.375% 1.375 01/28/2019AA+ Aaa1,012,490.00 4.09 1,000,319.00 4.06 1.471,000,000.003135G0L76FANNIE MAE 1.075% 1.075 07/11/2019 10/11/2017 AA+ Aaa599,100.00 2.42 593,898.00 2.41 1.83600,000.00Issuer total2,600,000.00 2,616,740.00 10.57 2,594,317.00 10.54 1.03Pt. San Assess District888599LS4 PT. SAN ASSESS5.250 09/02/2032NR NR1,520,800.00 6.14 1,520,800.00 6.18 10.401,520,800.00Issuer total1,520,800.00 1,520,800.00 6.14 1,520,800.00 6.18 10.40Federal Home Loan Mortgage Corp3134G3M49FREDDIE MAC 1.5%1.500 09/26/2019AA+ Aaa1,001,001.00 4.04 1,000,800.00 4.07 0.531,000,000.003134G3K58FREDDIE MAC 1.5%1.500 03/19/2020AA+ Aaa498,289.00 2.01 499,195.00 2.03 1.38500,000.00Issuer total1,500,000.00 1,499,290.00 6.05 1,499,995.00 6.09 0.81Walt Disney Co/The25468PDD5WALT DISNEY1.500 09/17/2018A+ A2555,351.50 2.24 549,988.45 2.23 1.11550,000.00Issuer total550,000.00 555,351.50 2.24 549,988.45 2.23 1.11PepsiCo Inc713448CK2PEPSICO INC 2.25%2.250 01/07/2019 12/07/2018 A+ A1505,530.00 2.04 504,885.00 2.05 1.34500,000.00Issuer total500,000.00 505,530.00 2.04 504,885.00 2.05 1.34US Bancorp91159HHE3US BANCORP 1.95%1.950 11/15/2018 10/15/2018 A+ A1509,425.00 2.06 502,705.50 2.04 1.21500,000.00Issuer total500,000.00 509,425.00 2.06 502,705.50 2.04 1.2113 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSUREAs of July 31, 2017SAN RAFAELCusipS&PratingMoodyratingHistoricalcost% Portfoliohist costMarketvalue% Portfoliomkt valueEffectivedur (yrs)Description Coupon MaturitydateCall date Par value orsharesInternational Business Machines Corp459200GJ4IBM CORP 5.7% 5.700 09/14/2017 09/13/2017 A+ A1 568,635.00 2.30 502,424.50 2.04 0.12500,000.00Issuer total500,000.00 568,635.00 2.30 502,424.50 2.04 0.12Wells Fargo Bank NA94988J5A1WELLS FARGO BANK NA 1.650 01/22/2018 AA- Aa2 501,930.00 2.03 500,515.00 2.03 0.47500,000.00Issuer total500,000.00 501,930.00 2.03 500,515.00 2.03 0.47Berkshire Hathaway Inc084670BX5BERKSHIRE HATHAWAY 1.150 08/15/2018 AA Aa2 500,355.00 2.02 498,643.50 2.03 1.02500,000.00Issuer total500,000.00 500,355.00 2.02 498,643.50 2.03 1.02Apple Inc037833AJ9APPLE INC 1% 03/05/2018 1.000 05/03/2018 AA+ Aa1 498,090.00 2.01 498,591.50 2.03 0.75500,000.00Issuer total500,000.00 498,090.00 2.01 498,591.50 2.03 0.75Caterpillar Financial Services Corp14912L6R7CATERPILLAR FINL 1.350 05/18/2019 A A3 498,245.00 2.01 497,160.00 2.02 1.77500,000.00Issuer total500,000.00 498,245.00 2.01 497,160.00 2.02 1.77Cash and Cash EquivalentsINVESTED CASH 0.00069,050.20 0.28 69,050.20 0.28 0.0069,050.20Issuer total69,050.20 69,050.20 0.28 69,050.20 0.28 0.00Grand total24,639,850.20 24,766,237.99 100.00 24,613,409.20 100.001.6914 SECURITIES PURCHASEDFor the period July 1, 2017 - July 31, 2017SAN RAFAELPar value orsharesUnit cost Accruedinterest purchasedTrade dateSettle dateCoupon Maturity/Call datePrincipalcostCusip / Description / BrokerGovernment Agencies3134G3M491.50007/13/2017 09/26/2019 1,000,000.00 100.10 (1,001,001.00) (4,500.00)FREDDIE MAC 1.5% 26/09/2019 CALLABLE 07/14/2017WELLS FARGO SECURITIES INTL LTD1,000,000.00 (1,001,001.00) (4,500.00)Total Government AgenciesGrand totalGrand total1,000,000.00 (1,001,001.00) (4,500.00)15 SECURITIES SOLD AND MATUREDFor the period July 1, 2017 - July 31, 2017SAN RAFAELHistorical cost Amortized costat sale or maturity/Accr (amort)Fair value atsale or maturity /Chg.in fair valueRealizedgain(loss)PriceCouponTrade dateSettle dateMaturity/Call datePar value orsharesCusip/Description/BrokerAccruedinterestsoldInterestreceivedInterestearnedGovernment Agencies3137EADV8FHLMC .75% 07-14-20170.75007/14/2017 (1,000,000.00) 998,530.00 1,000,000.0027.440.0096.001,000,000.00 0.00 0.00 3,750.00 291.6707/14/2017(1,000,000.00)0.00998,530.0027.441,000,000.0096.001,000,000.00 0.00 3,750.00 291.67Total (Government Agencies)Grand totalGrand total(1,000,000.00)0.00998,530.0027.441,000,000.00 1,000,000.00 0.00 3,750.00 291.6796.0016 TRANSACTION REPORTFor the period July 1, 2017 - July 31, 2017SAN RAFAELMaturity Par value orsharesInterest Transaction totalPrincipalTransactionCusip Sec type DescriptionTrade dateSettle dateRealizedgain(loss)5,625.0007/07/201707/07/2017Income713448CK2 Corporate Bonds PEPSICO INC 2.25% 07/01/2019 01/07/2019 500,000.00 0.00 5,625.000.003,225.0007/11/201707/11/2017Income3135G0L76 Government Agencies FANNIE MAE 1.075% 07/11/2019 600,000.00 0.00 3,225.000.00(4,500.00)07/13/201707/14/2017Bought3134G3M49 Government Agencies FREDDIE MAC 1.5% 26/09/2019 09/26/2019 1,000,000.00 (1,001,001.00) (1,005,501.00)0.003,750.0007/14/201707/14/2017Income3137EADV8 Government Agencies FHLMC .75% 07-14-2017 07/14/2017 1,000,000.00 0.00 3,750.000.000.0007/14/201707/14/2017Capital Change3137EADV8 Government Agencies FHLMC .75% 07-14-2017 07/14/2017 (1,000,000.00) 1,000,000.00 1,000,000.000.004,125.0007/22/201707/22/2017Income94988J5A1 Corporate Bonds WELLS FARGO BANK NA 1.65% 01/22/2018 500,000.00 0.00 4,125.000.006,875.0007/28/201707/28/2017Income3135G0H63 Government Agencies FANNIE MAE 1.375% 01/28/2019 1,000,000.00 0.00 6,875.000.004,687.5007/31/201707/31/2017Income912828H52 Government Bonds USA TREASURY 1.25% 01/31/2020 750,000.00 0.00 4,687.500.00167.37Income Cash and Cash Equivalents Cash167.370.00 0.000.0007/31/201717 ADDITIONAL INFORMATIONAs of July 31, 2017SAN RAFAELPast 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 getback 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 changesin 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 foryour 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. Thisdocument 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 beduplicated, 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 clientsInvestment 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 InvestorServices 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 ofskill 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 andCISCs 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 andthese 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 theaccount, 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 2Aof the Firms 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 generalinformation 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 accountshould 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 willremain 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 beprofitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed.For 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. WhenMoodys, 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 ofMoodys 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 anappropriate 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 theindices 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.The 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 notemust be auctioned on or before the third business day before the last business day of the month.The 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 notemust be auctioned on or before the third business day before the last business day of the month.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 notemust 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.The 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.18 ADDITIONAL INFORMATIONAs of July 31, 2017SAN RAFAELInsight 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 referencethe 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 YorkMellon 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)and 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 anddisclaims all expressed or implied warranties in connection therewith.© 2017 Insight Investment. All rights reserved.19 STAFF REPORT APPROVAL ROUTING SLIP Staff Report Author: Mark Moses Date of Meeting: 11/06/2017 Department: Finance Topic: City Quarterly Investment Report 9-30-17 Subject: City Quarterly Investment Report 9-30-17 Type: (check all that apply) ☒ Consent Calendar ☐ Public Hearing ☐ Discussion Item ☐ Resolution ☐ Ordinance ☐ Professional Services Agreement ☐ Informational Report *If PSA, City Attorney approval is required prior to start of staff report approval process Was agenda item publicly noticed? ☐ Yes ☐No Date noticed: ☐Mailed ☐Site posted ☐Marin IJ Due Date Responsibility Description Completed Date Initial / Comment DEPARTMENT REVIEW FRIDAY noon 10/13 Director Director approves staff report is ready for ACM, City Attorney & Finance review. 10/19/2017 ☒ VB CONTENT REVIEW MONDAY morning 10/16 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will review items, make edits using track changes and ask questions using comments. Items will be returned to the author by end of day Wednesday. Click here to enter a date. 10/24/2017 10/19/2017 ☐ ☒ LG ☒ MM DEPARTMENT REVISIONS FRIDAY noon 10/20 Author Author revises the report based on comments receives and produces a final version (all track changes and comments removed) by Friday at noon. 10/19/2017 ☒ VB ACM, CITY ATTORNEY, FINANCE FINAL APPROVAL MONDAY morning 10/30 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will check to see their comments were adequately addressed and sign-off for the City Manager to conduct the final review. Click here to enter a date. 10/31/2017 10/30/2017 ☐ ☒ LG ☒ MM TUES noon 10/31 City Manager Final review and approval 10/31/2017 ☒ JS