HomeMy WebLinkAbout03.02-FY 2015-16 Third Quarter Financial Report.pdf Orange
hird Quarter
inancial Report
periodfor the ended March 31 , 2016
Orange County,California
Table of Contents
ExecutiveSummary...................................................................................................1
Budget Review
Section 1 —Consolidated Financial Reports..........................................................................1
Section 2—Operating Budget Review
Chart of the Cost per Million Gallons by Department—Budget and Actual..............1
Chart of the Net Expenses by Major Category— Budget and Actual........................1
Divisional Contributions to Cost Per Million Gallons ................................................2
Comparison of Expenses by Department.................................................................3
Summary of Collection, Treatment, and Disposal Expenses by Major Category.....4
Summary of District-Wide Revenues .......................................................................5
Summary of Collection, Treatment and Disposal Revenues....................................5
Summary of Collection, Treatment, and Disposal Expenses by Line Item...............6
Summary of Collection, Treatment, and Disposal Expenses by Process.................8
Chartof Staffing Trends...........................................................................................9
Section 3—Capital Improvement Program Budget Review
Capital Improvement Program Graphs by Type and Funding Source......................1
Summary of Capital Improvement Construction Requirements - Current Year........2
Summary of Capital Improvement Construction Requirements - Project Life..........6
Section 4—Capital Assets Schedule & Debt Service Budget Review
CapitalAssets Schedule ..........................................................................................1
Debt Service Budget Review....................................................................................1
Section 5—Self Insurance Budget Review
General Liability and Property Fund Budget Review................................................1
Workers' Compensation Fund Budget Review.........................................................2
Quarterly Treasurers Repo rt........................................................................................1
QuarterlyCOP Repo rt.................................................................................................1
FY 2015-16 Third Quarter Financial Report
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Executive Summary
Consolidated Financial Reports
For the Third Quarter Ended
March 31, 2016
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2016:
• Third Quarter Budget Review:
The Consolidated Financial Reports Section provides the Directors, staff, and the
general public with a comprehensive overview of the financial results of the
Sanitation District through the third quarter ended March 31, 2016.
Contained within the Consolidated Financial Reports is the budget-to-actual
status of the Collections, Treatment and Disposal Operations, the Capital
Improvement Program, the Self-Insurance Program, and Debt Service Outlays.
Also included is a Capital Assets Schedule as of March 31, 2016.
Various detail information can be found in this report. In summary:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 104.3 percent through the first three quarters of the
fiscal year, mainly due to the receipts of $174.9 million from the issuance of
Wastewater Refunding Revenue Obligations, Series 2016A. The 2016A
Obligations were used to refund a portion of Certificate of Participation Series
2009A. Excluding debt financing proceeds, total revenues slightly lag the
budget at 63.8 percent. Total revenues are projected to approximate budget
at year-end. More detailed information on District revenues is provided within
Section 1 — Pages 3 through 5.
c) Collection, Treatment and Disposal Costs:
As indicated within the Consolidated Financial Reports Section of this report,
the net operating requirements through the third quarter of $104.5 million is
currently tracking at 70.0 percent of the $149.3 million budget. In addition,
net operating expenses have decreased $582,000 or 0.6 percent in
comparison with the same period last year. Overall, staff expects the total
operating costs to remain within budget throughout the remainder of the year.
More detailed information on District operating expenses is provided within
Section 1- Pages 1 through 3.
The total cost per million gallons is approximately $2,068.6 based on flows of
183.7 million gallons per day. This is $23.6 per million gallons, or 1.2 percent
higher than the budgeted cost per million gallon per day. A further
description of these costs and benchmarking with other agencies is contained
within Section 1 — Pages 6 through 8.
Page 1
FY 2015-16 Third Quarter Review
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2015-16 has been revised to $140.2 million, or 74.7
percent of the board approved cash outlay of$187.8 million. The actual cash
outlay spending through the third quarter is $106.0 million, or 56.4 percent of
the total budgeted outlay. More detailed information on the CIP budget
review can be found in Section 3.
• Quarterly Treasurer's Report;
This section reports on financial portfolio performance with respect to the
Sanitation District's funds. Both Long-Term and Liquid Operating Monies
Portfolios are summarized. A performance summary table can be found on page
2 of this section. The report also contains information on the national economic
outlook from the Sanitation District's money manager, Chandler Asset
Management (Chandler).
Chandler reported that the Long-Term Portfolio returned 154 basis points over the
quarter, slightly underperforming the Bank of America Merrill Lynch 1-5 year AAA
U.S. Corporate and Government Index return of 156 basis points, while the Liquid
Operating Monies Portfolio returned 17 basis over the quarter, outperforming its
benchmark, the three-month Treasury Bill index return of 10 basis points.
Chandler further notes that the Federal Open Market Committee (FOMC) left
policy rates unchanged in March, as expected. The tone of the FOMC policy
statement was largely dovish and the Committee's consensus forecast for the
year-end target federal funds rate was revised down to a level more closely
aligned with market expectations. The FOMC's median forecast now implies two
rate hikes in 2016 versus the previous forecast of four rate hikes. Fed funds
futures prices currently imply just one more rate hike this year. The FOMC also
adjusted some of their longer term forecasts, with the pace of rate hikes in 2017
and 2018 moving modestly lower. Chandler believes monetary policy continues to
be data dependent and we will be watching developments in currency market
valuations, in particular the direction of the US Dollar, to help ascertain the future
direction of the FOMC. A stable or weaker dollar will likely give the FOMC more
latitude to continue the normalization process specific to the federal funds target
rate; a stronger dollar would have the opposite impact.
Domestic economic data is generally favorable. Labor market trends continue to
improve, consumer confidence is strong, and housing trends remain healthy. In
addition, manufacturing trends seem to be improving. Payrolls have increased by
an average of 209,000 per month over the past three months. Meanwhile inflation
pressures remain contained. Fourth quarter 2015 GDP grew at a stronger than
expected annualized pace of 1.4%, following growth of 2.0% in the third quarter.
Market participants have been forecasting GDP growth of about 2.0% in the first
quarter of 2016, but some economists recently reduced their forecast.
Page 2
Executive Summary
In March, the Treasury yield curve steepened slightly, with the 2-year Treasury
yield down five basis points and the 10-year Treasury yield up three basis points.
We believe the modest decline in shorter-term yields was influenced by largely
dovish comments made by members of the FOMC during the month. Even though
inflation remains contained for now, which gives the Fed more leeway to remain
highly accommodative, Chandler believes strong labor market trends leave the
door open for the Fed to continue normalizing monetary policy this year, and that
two more 25 basis point fed funds rate hikes before year-end are possible.
Ongoing uncertainty about monetary policy and how the Fed communicates its
economic projections will likely continue to fuel financial market volatility.
Economic Outlook
The overall global economic backdrop remains precarious in Chandler's view.
Economic challenges abroad, particularly in Europe and Japan, are likely to limit
the ability of the Federal Reserve to 'normalize' monetary policy as much as they
would like. Negative interest rates in Europe and Japan will put a ceiling on how
high domestic interest rates can move. The domestic economy looks to be in
decent health with non-farm payrolls averaging 209k over the past three months
and the U-3 unemployment rate at 5.0%. Wage inflation has been dormant but the
Chandler team is closely following the U-6 unemployment rate (part-time and
marginally attached workers), most recently at 9.8%, to gauge whether wage
inflation will start to exert some influence on broader inflation metrics.
Encouragingly market based measures of inflation have moved off the lows, but
are still at values inconsistent with the Federal Reserve being 'behind the curve'
with regards to traditional monetary policy. Chandler maintains the view the
Federal Reserve will be able to increase the Federal Funds target rate two times
in 2016, but the risk is to the downside (i.e. only be able to increase one time).
Oil prices have recently firmed and positively contributed to the improved
economic outlook over the past several weeks. The influence of oil on risk assets
will dissipate assuming the volatility in the commodity market stabilizes. Over an
intermediate time horizon we would expect the lower price of oil to be a positive
influence on consumer spending, but to date the impact has been
underwhelming. Even with the recovery in the price of oil the earnings outlook for
many energy companies remains challenging. The Chandler team will continue to
focus on opportunistically adding attractively priced securities to the respective
OCSD portfolios. The spreads on very high quality corporate notes looks
expensive currently, and we are likely to focus on some of the more attractively
priced finance names in the coming quarter. Agency, Supranational, and Asset
Backed security valuations also look fair on a risk adjusted basis and the
Chandler team will continue to be opportunistic in altering the exposure of the
respective portfolios.
• Quarterly Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
Page 3
FY 2015-16 Third Quarter Review
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Page 4
Consolidated Financial Reports
Third Quarter Financial Report
March 31, 2016
Financial Management is pleased to present the FY 2015-16 third quarter financial
report. This report provides a comprehensive overview of the financial condition of the
Sanitation District and reports on the status of all capital projects in progress. A
summary of the sections contained within this report is provided below.
Operating Budget Review., This section reports on collection, treatment and disposal
net operating requirements. At March 31, 2016, 70.0 percent, or $104.5 million of the
FY 2015-16 net operating budget of $149.3 million has been expended. Net operating
expenses decreased from the same period last year by $582,000, or 0.6 percent, mainly
due to a decrease of$2.0 million in Salaries and Benefits and $96,000 in Research and
Monitoring, and an increase of $2.2 million in indirect costs allocated out to capital
projects. These reductions to net operating expenses have been partially offset by
increases of$1,845,000 in Repairs and Maintenance, $761,000 in Contractual Services,
$488,000 in Operating Materials and Supplies, $314,000 in Professional Services,
$238,000 in Utilities, $75,000 in Administrative Expenses, and $41,000 in Training and
Meetings. These and other variances that factor into this net increase in expenses are
discussed in more detail below. Overall, staff expects the total operating costs to
remain at budget throughout the remainder of the year.
Significant operating results as of March 31, 2016 include the following:
• Salaries. Wages and Benefits — Personnel costs of $68.6 million are slightly
below target at 72.3 percent of budget through the third quarter of FY 2015-16.
Although the budget is based on a 5 percent vacancy factor, staffing is 53 full-time
equivalents (FTE's), or 8.5 percent below the total 624 FTE's approved in the FY
2015-16 budget. Salary and benefit costs are $2.0 million or 2.9 percent lower than
the $70.6 million incurred in the same period last year, mainly due to the decrease in
OCERS retirement of$3.4 million. This decrease is reflective of the decrease in the
employee contribution rate as a result of the $175 million pay down on the unfunded
actuarial accrued liability over the previous two fiscal years. Net operating
personnel costs are expected to be below budget throughout the remainder of
the year.
• Administrative Expenses — Administrative Expenses totaled $1.2 million, or 76.4
percent of the $1.6 million budget through March 31. These costs are $75,000
or 6.5 percent higher at March 31 in comparison with the prior year mainly due to an
increase of$59,000 in purchases of small computer items and $27,000 in purchases
of minor furniture and fixtures, offset by a decrease of $11,000 due to the timing in
membership payments versus when these payments are due. It is anticipated that
the administrative costs will approximate budget at year-end.
Section 1 - Page 1
FY 2015-16 Third Quarter Report
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$184,000, or 44.7 percent of the $412,000 budget through March 31. These
costs are $18,000 or 8.9 percent lower at March 31 in comparison with the prior
year, mainly due to the prior year purchase of aluminum prints of new core values.
It is anticipated that the printing and publication costs will be below budget at
year-end
• Training and Meetings — Training and meetings of $516,000 are below target at
49.1 percent of the $1.1 million budget. This account is lower than the
proportionate budget due to the timing and need for training throughout the year.
These costs have increased over the same period last year by $41,000 or 8.6
percent, which includes $38,000 for Emergency Operations Center (EOC) training
courses and functional exercises not incurred in the prior period. Total training and
meeting costs are anticipated to be below budget at year-end.
• Operating Materials and Supplies — Operating materials and supplies of $12.0
million is slightly below target at 69.7 percent of budget through March 31.
Operating Materials and Supplies have increased from the prior year by $488,000 or
4.3 percent, primarily due to increases in Cogen and Miscellaneous Chemicals of
$200,000, Safety Equipment of $141,000, Chemical Coagulants of $107,000, Tools
of $88,000, Other Operating Supplies of $25,000, and Gas, Diesel and Oil of
$15,000, offset by decreases in Disinfection of $92,000. The increases are mainly
brought about by a combined increase in the advance purchases for tools and
equipment, as well as increased use of activated carbon and urea due to Project J-
111 to install emissions controls on 8 engines in Central Generation. Based on
current processes, operating materials and supplies are anticipated to
approximate budget at year-end.
• Contractual Services — Contractual services is slightly below target at $16.7
million or 70.0 percent of budget through March 31. Solids Removal costs,
budgeted at $17.4 million, comprise the majority of this expense category. With an
increase of $302,000, or 2.3 percent higher than the prior year, solids removal costs
totaled $13.2 million, or 76.0 percent of budget at March 31. In addition, Other
Contractual Services increased by $680,000 due to an increase in manhole
rehabilitation projects, sewer line cleaning, and CCTV inspections, and Temporary
Services increased by $78,000 due to filling position vacancies. These increases
were somewhat offset by decreases of $149,000 in Other Waste Disposal and
$95,000 in Oxygen Plant Operation. Overall, Contractual Services is higher by
$760,000 or 4.8 percent over the same period last year. Total contractual
services costs are anticipated to approximate budget at year-end.
• Professional Services — Professional services costs totaled $2.1 million or 60.3
percent of the $3.5 million budget through March 31. Most professional service
costs, such as Audit &Accounting, Engineering, Environmental Scientific Consulting,
Software Program Consulting Services, Advocacy Efforts, and Other Services, are
proportionately low through March 31 due to a variety of factors such as services
being in the planning or request for proposal stage, timing of services needed, the
Section 1 - Page 2
Consolidated Financial Reports
need for the service being re-evaluated, or utilization of internal staffing for projects.
These costs are $314,000 or 17.6 percent higher at March 31 in comparison with the
prior year mainly due to an increase in legal services and timing of services
performed. It is anticipated that the costs for this category will approximate or
be below budget at year-end.
• Research and Monitoring — Research and monitoring costs totaled $522,000, or
62.8 percent of the $831,000 budget through March 31. These costs are
$96,000, or 15.5 percent lower at March 31 in comparison with the prior year, due to
a decrease of $68,000 in Air Quality Monitoring due to the timing of emissions
testing and $28,000 in Environmental Monitoring, primarily due to prior period
installation of an electronic navigation/communication suite onboard the Nerissa
vessel. Total Research and Monitoring costs are anticipated to approximate or
be below budget at year-end.
• Repairs and Maintenance — Repair and maintenance costs totaled $10.0 million,
or 81.0 percent of the $12.3 million budget through March 31. These costs are
$1.8 million, or 22.7 percent higher at March 31 in comparison with the prior year,
mainly due to large current period repair services such as Plant 2 Cengen engine
overhaul and digester C treatment, and Plant 1 primary clarifier effluent piping, and
repairs to engine #1 and blowers #14, offset by a decrease in prior period materials
purchases, such as power packs. It is anticipated that the costs for this
category will approximate or exceed budget at year-end.
• Utilities — Utilities costs totaled $5.7 million, or 73.7 percent of the $7.8 million
budget through March 31. These costs are $238,000 or 4.3 percent higher at
March 31 in comparison with the prior year, primarily due to an increase in electricity
charges of $274,000 and water charges of $58,000 as a result of increased rates
and usage primarily related to increased activity, offset by a decrease in natural gas
charges of $120,000. The overall operating philosophy of the Central Generation
facilities is to purchase electricity for power production rather than to purchase
natural gas as a supplement to the digester gas needed to run the Central
Generation facilities. This operating philosophy allows the Central Generation
facilities to meet air emission requirements. It is anticipated that the costs will
approximate budget at year-end.
• Other Operating Supplies — Other operating supplies costs totaled $1.3 million,
or 78.2 percent of the $1.7 million budget through March 31. Regulatory
Operating Fees comprise the majority of this expense category. These costs are
$67,000 or 10.7 percent higher at March 31 in comparison with the prior year
primarily due to the increases in annual permit fees to State Water Resources
Control Board (SWRCB) and emission fees, annual operation fees, and other
miscellaneous regulatory fees to South Coast Air Quality Management District
(SCAQMD). Miscellaneous Operating Expenses have also increased over the prior
year by $37,000, or 30.5 percent due to the increase in safety supplies. These
increases were somewhat offset by a decrease of $93,000, or 87.9 percent in
Section 1 - Page 3
FY 2015-16 Third Quarter Report
outside equipment rental due to prior period emergency truck rental. It is
anticipated that the costs will approximate budget at year-end.
• Revenues — Service Fees and Property Taxes — Through March 31, revenues
from service fees are at $180.9 million, or 61.5 percent of budget and Property
taxes are $51.3 million, or 58.0 percent of budget. These items comprise the
majority of the Sanitation District's revenues and are mostly collected by the County
through the property tax roll and distributed to the Sanitation District throughout the
year based on a set distribution schedule that begins in November of each year. An
increase of $12.1 million or 7.2 percent in service fee revenue over the prior period
is due in part to an increase in fees of 1.9 percent, timing of customer payments, a
decrease in adjustments, and a decrease of $1.3 million in user fee refunds issued
in the current period. An increase of $2.9 million or 6.1 percent in property tax
revenues over the prior period is due to an increase of approximately 2.0 percent in
property tax rates, higher construction activities and property values, and timing of
taxes collected by the County. These revenues are expected to approximate
budget at year-end.
• Revenues — Permittee User Fees — Permittee User Fees are at $8.3 million, or
61.4 percent of the $13.6 million budget. The number of permittees fluctuates
from year to year as businesses are established or close their operations. The
revenues through the third quarter are $941,000 or 10.2 percent lower in comparison
with the same period last year due to a decrease in the number of permittees and a
decrease in the amount of discharge from the permittees. It is estimated that the
permittee user charges will be below budget at year-end.
• Revenues — Inter District Sewer Use - SAWPA — Inter District Sewer revenues-
SAWPA are at $2.2 million, or 82.52 percent of the $2.7 million budget. This
revenue is derived from charges to the Santa Ana Watershed Protection Agency
(SAWPA) for treatment of flows. These revenues are expected to approximate or
exceed budget at year-end.
• Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues-
IRWD are at $3.3 million, or 130.4 percent of the $2.6 million budget. This
revenue is derived from charges to the Irvine Ranch Water District (IRWD) for
treatment of flows. The revenues through the third quarter are higher than the same
period last year by $1.5 million or 85.7 percent mainly due to an increase in flows
discharged from IRWD and an increase in unit costs of operation and maintenance
charges to IRWD. These revenues are expected to exceed budget at year-end.
• Revenues - Sludge Disposal- IRWD - Sludge Disposal fees-IRWD are at $7.6
million, or 84.9 percent of the $8.9 million budget. The revenue is derived and
fluctuated from flows discharged from IRWD to Sanitation District for the handling,
treatment and disposal of solids. The revenues through the third quarter are higher
than the same period last year by $1.7 million or 30.1 percent, mainly due to a
decrease of $1.7 million in prior year adjustments due to IRWD. These revenues
are expected to approximate or exceed budget at year-end.
Section 1 - Page 4
Consolidated Financial Reports
• Revenues — Capital Assessments- IRWD — Capital Assessments-IRWD are at
$1.9 million, or 83.5 percent of the $2.3 million budget. The revenues through
the third quarter are higher than the same period last year by $1.6 million or 584.6
percent mainly due to a decrease of$1.5 million in reversals from the prior period for
projects that have been accrued and placed in service during the prior year.
Projects that are placed in service are accrued and depreciated at year-end and
reversed in the beginning of the following year. It is estimated that the capital
assessments will approximate or exceed budget at year-end.
• Revenues — Capital Facilities, Capacity Charges (CFCC) — CFCC are at $10.6
million, or 96.6 percent of the $11.0 million budget. The revenues through the
third quarter are lower than the same period last year by $1.7 million or 13.9 percent
due to lower construction activity completed and less discharge from permittees than
at this time last year. These revenues are expected to approximate or exceed
the budget at year-end.
• Revenues — Interest Earnings — Interest Earnings are at $6.6 million or 108.9
percent of the $6.1 million budget. The revenues through the third quarter are
higher than the same period last year by $1.2 million or 22.9 percent due to a higher
interest rate environment than anticipated. It is estimated that the interest
earnings will exceed the budget amount at year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $531,000 or 67.2
percent of the $790,000 budget. This revenue is derived from fees charged to
wastehaulers allowing them to dump waste into the Sanitation District's system.
These revenues are expected to approximate budget at year-end.
• Revenues — Grant Revenue — Grant revenue is at $450,000 with no budget. This
revenue consists of a federal grant received from the United States Bureau of
Reclamation for $450,000. Grant funds were received related to the Effluent Reuse
Study for the Groundwater Replenishment System (GWRS), of which one half of the
consultant costs less grant funds received will be reimbursed by the Orange County
Water District once the study is complete. It is anticipated that grant revenue will
exceed budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $293,000 or 73.1 percent
of the $400,000 budget. The revenues through the third quarter are lower than the
same period last year by $15,000 or 5.0 percent. These revenues are expected to
approximate budget at year-end.
• Revenues - Other — Other revenues are at $962,000 or 160.3 percent of the
$600,000 budget. These revenues consist of charges to Sunset Beach Sanitary
District (SBSD) for treatment of flows and other miscellaneous revenues. The
revenues through the third quarter are lower than the same period last year by
$195,000 or 16.8 percent due to the sale of AQMD emission reduction credits in the
prior period for $690,000, offset by an increase in SBSD revenues and a settlement
received from the County of Orange bankruptcy filing in 1994 of $480,000 in the
current period. These revenues are expected to exceed budget at year-end.
Section 1 - Page 5
FY 2015-16 Third Quarter Report
Comparison of Third Quarter Cost per
Million Gallon Results with Budget
Last Five Years
2,200 i
2,100
2,000 2627 2 os9 Z,ou
1,900 1
926
1.BB1 1,937
1,600
700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
11-12 12-13 13 14 14 15 15-18
3rd Annual 3rd Annual 3rd Annual 3rd Annual 3rd Annual
Qtr Budget Qtr Budget Qtr Budget Qtr Budget Or Budget
As demonstrated in the preceding graph for each of the last four fiscal years, the cost
per million gallons at the end of the third quarter has been 2.0 percent to 6.8 percent
lower than the annual budget. The FY 2015-16 third quarter is 1.2 percent higher when
compared with this year's budget. The variance from previous years is primarily due to
a decrease in flows, which are 2.6 percent lower than the same period last year. Staff
believes that overall operating costs will be below budget at year-end.
The total cost per million gallons at March 31 is $2,068.6 based on flows of 183.7
million gallons per day. This is $23.6 per million gallons, or 1.2 percent, higher than
the budgeted cost per million gallons of $2,045. There is an inverse relationship
between the amount of flows and the cost per unit of collection, treatment, and disposal.
Consequently, the higher cost per million gallons is due to flows of 183.7 million gallons
per day being 8.2 percent lower than the budgeted flow of 200 million gallons per day,
which is partially offset by net expenses being 6.7 percent less than the proportionate
budget through March 31.
More detailed information on operating revenues, costs, and related information is
provided within Section 2.
Section 1 - Page 6
Consolidated Financial Reports
Following are data tables showing the last five years of Single Family Residential User
Fees (SFR) and the cost per MG to collect, treat, and dispose of wastewater for OCSD
and for similar agencies. The agencies used in the table were determined to be those
that most closely resembled OCSD in terms of services provided and treatment levels.
The summaries demonstrate that OCSD's SFR and cost per million gallons are each
one of the lowest in their respective group.
Benchmark Study
Five-Year Single Family Rate
Rates as of July
2011 2012 2013 2014 2015
Agency SFR SFR SFR SFR SFR Notes
San Francisco $636.00 $667.92 $701.40 $ 744.83 $ 784.44
City of San Diego $608.04 $572.58 $572.58 $ 572.58 $ 572.58
Vallejo Sanitation/Flood Control District $483.12 $495.12 $507.48 $ 520.20 $ 520.20
Central Contra Costa Sanitary District $341.00 $371.00 $405.00 $ 439.00 $ 471.00
City of Los Angeles $358.66 $391.56 $409.20 $ 435.40 $ 464.04 Note 1
Sacramento County $264.00 $288.00 $312.00 $ 348.00 $ 384.00
Dublin San Ramon Services District $345.06 $355.44 $355.44 $ 372.96 $ 382.38
Union Sanitary District $304.33 $319.55 $337.76 $ 357.02 $ 377.00
East Bay MUD $287.98 $305.10 $331.10 $ 358.14 $ 355.18
City of Hayward $317.64 $327.24 $327.24 $ 337.08 $ 347.16
Orange County Sanitation District $267.00 $294.00 $308.00 $ 316.00 $ 322.00
City of Fresno $299.76 $309.00 $309.00 $ 309.00 $ 309.00
Irvine Ranch Water District $202.80 $206.40 $220.80 $ 246.00 $ 288.60 Note 2
Oro Loma Sanitary District $183.00 $189.00 $195.00 $ 200.00 $ 206.00
Los Angeles County $143.00 $149.00 $150.00 $ 151.00 $ 155.00 Note 3
Notes:
(1)- Data is for the typical SFR customer rate and is not the average rate.
(2)- Data represents the maximum SFR rate and is not the average rate.
(3)- Data for 2013 and 2014 was revised to remove ad valorem monies that were inadvertently included.
Section 1 - Page 7
FY 2015-16 Third Quarter Report
Benchmark Study
Five-Year Cost per MG
FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15
Agency Sc.Tot. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes
Central Contra Costa Sanitary District B 5 $3,929.80 $4,203.43 $4,621.84 $5,778.43 $6,280.58
Vallejo Sanitation/Flood Control District B 3 $4,536.00 $5,176.00 $5,435.00 $6,153.00 $5,590.00
San Francisco B 3 $3,857.80 $4,778.96 $5,006.74 $5,400.28 $5,357.97 Note 1
Union Sanitary District B 3 $3,206.10 $3,267.06 $3,805.40 $3,832.47 $3,910.73
City of San Diego B 5 $3,208.48 $3,242.30 $3,340.35 $3,156.43 $3,591.69
East Bay MUD T 4 $2,000.31 $2,320.02 $2,359.40 $2,559.18 $2,727.97
Dublin San Ramon Services District B 5 $1,964.64 $2,009.57 $2,159.49 $2,506.60 $2,522.00
Sacramento County T 3 $1,591.75 $3,312.50 $2,143.16 $2,375.47 $2,494.40 Note
City of Los Angeles B 5 $1,836.00 $1,935.00 $2,062.00 $2,163.00 $2,269.00
Orange County Sanitation District B 3 $1,816.62 $1,871.47 $1,906.01 $1,935.05 $2,070.97
City of Fresno B 3 $1,263.50 $1,383.60 $1,411.89 $1,552.39 $1,628.91
Los Angeles County T 5 $1,078.00 $1,156.00 $1,008.00 $1,223.72 $1,239.40 Note 3
Legend for Service Prodded and Treatment Level:
B-Agee cyoperates both collection and treatment facilities
T-Agency proddes treatment services but not collection
2-Advanced prim aryor primary with some secondary treatment
3-Secondary treatment
4-Advanced secondaryor secondarywith some terbarytreatment
5-Terharytreatment
Notes:
(1)-Beginning in Fiscal Year 2012-13,dataset represents wastewater flows from finalued publicly available audited documents.
(2)-Miles of sewers number changed in 2012 to include parallel force main pipes per the 2011 State of the District Report.
(3)-Does not include source control or overhead costs.
Section 1 - Page 8
Consolidated Financial Reports
Capital Outlay Review:
$200.000.000
S150,000,000
S100,000,000
S50,000,000
$0
3131/16 Actual Projected 2015-16 2015-16 Capital
Capital Outlay Capital Outlay Outlay
$105,962,718 $140,222,500 Cashfiow Budget
$187,825,000
As depicted by the preceding chart, Capital Outlays totaled $106.0 million or 56.4
percent of the capital outlay cash flow budget for FY 2015-16 as of March 31,
2016. Costs are proportionately low through the third quarter as some projects are still
in the design phase or have experienced various delays. Examples as of March 31 are
the Newport Force Main Rehabilitation which has a FYI 5-16 cash Flow budget of $23.9
million but actual costs of only $11.9 million and the Gisler-Redhill Trunk Improvement,
which has a budget of $8.2 million but actual costs of only $277,000. Overall, the
capital outlay costs of the capital improvement program are expected to
approximate $140.2 million, or 74.7 percent of the capital outlay cash flow budget
at year-end.
More detailed information on the capital improvement program is provided within
Section 3.
Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital
Assets Schedule and Debt Service Section. This section shows the cost value of the
Sanitation District's capital facilities at March 31, 2016, as well as the debt service costs
resulting from the need to provide funding for the construction of capital facilities.
The majority of principal payments on debt issues are due in August during the first
quarter, and in February during the third quarter of each fiscal year. As of March 31,
2016, 79.0 percent of the principal payments have been made through the end of the
third quarter. Total principal payments are expected to approximate budget at year-end.
Section 1 - Page 9
FY 2015-16 Third Quarter Report
Interest costs are expensed ratably throughout the fiscal year. Interest expense is
anticipated to approximate budget at year-end.
Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through
March 31, the Self-Insurance Fund revenues totaled $1.5 million or 75.6 percent of the
budget, while expenses were $1.8 million or 70.5 percent of the budget.
Separate fund accounting is used for recording the revenue and expenses incurred in
managing these liability claims. The revenues to these funds represent charges to
operating divisions. Expenses to these funds include actual claims paid, claims
administration, and excess loss policies.
Section 1 - Page 10
Operating Budget Review
Cost per Million Gallons by Department
Budget and Actual
March 31, 2016
$1p00
$1,300
$1,200
$1100
$1,000
$900
$900
$200
$600
$500
$400
$300
1200
$100
$0 _
E 5 2 c g o c m N _
E E —
z —
E
w � �Butlgei �Adual
Collection,Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
March 31, 2016
$70,000
$65,000
$60,000
$55,000
$50,000
$05,000
P0,000
$35,000
$30,000
$25,000
$20.000
$15,000
$10,000
$5.000
$Q
N 2 E F' m O m C 5m
-
vQ
�ButlBet �Aclual O
Section 2-Page 1
2015-16 Third Quarter Report
Divisional Contributions to Cost Per Million Gallons
For the Nine Months Ended March 31,2016
2015-16
3/31114 3/31115 Annual 3131/16
Actual Actual Budget Actual
Flow in Million Gallons 54,358.30 51,846.53 73,000.00 50,512.69
Flow in Million Gallons per Day 198.39 189.22 200.00 183.68
Executive Management Department
General Management Administration $ 31.88 $ 23.53 $ 40.37 $ 30.72
Board Services 8.69 8.22 6.69 7.44
Public Affairs 7.65 8.60 15.83 13.09
Subtotal 48.22 40.35 62.89 51.25
Human Resources Department
Human Resources 48.85 55.10 64.80 56.43
Risk Management 49.86 48.85 49.02 45.35
Subtotal 98.71 103.95 113.82 101.78
Administrative Services Department
Administrative Services 9.09 9.65 8.37 8.65
Financial Management 39.17 44.50 49.72 47.50
Contracts, Purchasing,&Materials Mgmt. 58.29 62.15 60.09 62.97
Information Technology 127.01 151.12 139.58 148.83
Subtotal 233.56 267.42 257.76 267.95
Facilities Support Services Department
Facilities Support Administration 8.95 10.57 11.26 16.86
Facilities Support 6.83 5.85 - -
Equipment Rebuild 16.53 17.96 - -
Fleet Services 25.19 29.38 28.54 31.16
Collections Engineering 45.23 40.10 38.94 40.00
NPDES Source Inspection 36.86 31.97 32.93 34.45
Odor and Corrosion Control 90.22 100.61 110.91 98.08
Collection Facilities O&M 48.51 57.76 56.10 56.85
Subtotal 278.32 294.20 278.68 277.40
Engineering Department
Engineering Administration 5.99 9.89 5.57 7.17
Planning 49.13 42.94 43.84 50.28
Project Management Office 46.81 51.86 47.85 36.85
Engineering and Construction 120.92 128.20 131.18 141.09
Environmental Compliance 92.99 103.99 85.24 98.08
Subtotal 315.84 336.88 313.68 333.47
Operations&Maintenance Department
Operations&Maintenance Administration 11.43 10.49 12.11 13.11
Plant No.1 Operations 345.64 384.50 398.93 485.55
Plant No.2 Operations 289.94 294.43 318.46 301.91
Building,Grounds&Mechanical Maintenance 182.84 203.69 - -
Instrumentabon&Electrical Maintenance 201.11 209.91 - -
Plant No.1 Maintenance - - 264.27 233.26
Plant No.2 Maintenance - - 145.55 167.78
Environmental Laboratory&Ocean Monitoring 106.71 116.10 110.24 120.18
Subtotal 1,137.67 1,219.12 1,249.56 1,321.79
Total Operating Expenses 2.112.32 2,261.92 2,276.39 2,353.64
Cost Allocation (185.94) (235.29) (231.39) (285.03)
Net Operating Requirements $ 1, 226.38 $ 2,0 66.63 -f 2,0 55.00 $ 2,068.61
Section 2-Page 2
Operating Budget Review
Comparison of Expenses by Department
For the Nine Months Ended March 31,2016
2015-16
3131114 3131/15 Year to Date Budget
Department and Division Actual Actual Budget 3/31/16 Realized
Executive Management Department
General Management Administration $ 1,732,860 $ 1,220,179 $ 2,947,170 $ 1,551,933 52.66%
Board Services 472,493 426,090 488,410 375,805 76.94%
Public Affairs 415,675 445,732 1,155,850 661,151 57.20%
Subtotal 2,621,028 2,092,001 4,591,430 2,588,889 56.39%
Human Resources Department
Human Resources 2,655,630 2,856,736 4,730,090 2,850,633 60.27%
Risk Management 2,710,300 2,532,910 3,578,550 2,290,593 64.01%
Subtotal 5,365,930 5,389,646 8,308,640 5,141,226 61.88%
Administrative Services Department
Administrative Services 494,345 500,062 610,710 436,875 71.54%
Financial Management 2,129,032 2,307,149 3,629,380 2,399.205 66.11%
Contracts, Purchasing,&Materials Mgmt. 3,168,754 3,222,169 4,386,540 3,180,634 72.51%
Information Technology 6,903,862 7,835,083 10,189,160 7,517,576 73.78%
Subtotal 12,695,993 13,864,463 18,815,790 13,534,290 71.93%
Facilities Support Services Department
Facilities Support Administration 486,761 547,868 822,330 851,413 103.54%
Facilities Support 371,438 303,532 - - N/A
Equipment Rebuild 898,753 930,925 - - N/A
Fleet Services 1,369,540 1,523,297 2,083,620 1,573,934 75.54%
Collections Engineering 2,458,572 2,079,232 2,842,880 2,020,418 71.07%
NPDES Source Inspection 2,003,911 1,657,580 2,404,160 1,739,984 72.37%
Odor and Corrosion Control 4,904,150 5,216,353 8,096,320 4,954,267 61.19%
Collection Facilities O&M 2,637,060 2,994,449 4.095,100 2,871,400 70.12%
Subtotal 15,130,185 15,253,236 20,344,410 14,011,416 68.87%
Engineering Department
Engineering Administration 325,849 512,848 406,860 362,398 89.07%
Planning 2,670,700 2,226,241 3,200,230 2,539,623 79.36%
Project Management Office 2,544,325 2,688,734 3,493,120 1,861,190 53.28%
Engineering and Construction 6,573,064 6,646,556 9,576,040 7,127.049 74.43%
Environmental Compliance 5,054,855 5,391,390 6,222,510 4,954,520 79.62%
Subtotal 17,168,793 17,465,769 22,898,760 16,844,780 73.56%
Operations&Maintenance Department
Operations&Maintenance Administration 621,267 543,765 884,100 662.192 74.90%
Plant No. l Operations 18,788,343 19,934,989 29,121,695 24,526,402 84.22%
Plant No.2 Operations 15,760,824 15,265,251 23,247,850 15,250,445 65.60%
Building,Grounds&Mechanical Maintenance 9,938,616 10,560,783 - - N/A
Instrumentation&Electrical Maintenance 10,932,195 10,883,106 - - N/A
Plant No.l Maintenance - - 19,291,815 11,782,502 61.08%
Plant No.2 Maintenance - - 10,624,840 8,474,898 79.76%
Environmental Laboratory&Ocean Monitoring 5,800,639 6,019,195 8,055,110 6,071,382 75.37%
Subtotal 61,841,884 63,207,089 91,225,410 66,767,821 73.19%
Total Operating Expenses 114,823,813 117,272,204 166,184,440 118,888,422 71.54%
Cost Allocation (10,108,348) (12,198,701) (16,877,500) (14,397,165) 85.30%
Net Operating Requirements $ 104,715,465 $ 105,073,503 $ 149,306,940 $ 104,491,257 69.98%
Section 2-Page 3
2015-16 Third Quarter Report
Summary of Collection, Treatment, &Disposal Expenses by Major Category
For the Nine Months Ended March 31,2016
Expense Expense Increase Increase Percent
Budget Through Through (Decrease) (Decrease) Budget Remaining
Description 2015-16 3131/16 3131115 $ % Realized Budget
Salary&Wages $ 66,276,100 47,969,719 47,450,189 $ 519,530 1.09% 72.38% $ 18.306,381
Employee Benefits 28,526,300 20,601,768 23,161,716 (2,559,948) -11.05% 72.22% 7,924,532
Administrative Expenses 1,624,570 1,240,525 1,165,141 75,384 6.47% 76.36% 384,045
Printing&Publication 412,020 184,110 202,106 (17,996) -8.90% 44.68% 227,910
Training&Meetings 1,050,500 516,071 475,342 40,729 8.57% 49.13% 534,429
Operating Materials&Supplies 17,191,000 11,977,127 11,488,670 488,457 4.25% 69.67% 5,213,873
Contractual Services 23,968,480 16,694,008 15,933,325 760,683 4.77% 69.65% 7,274,472
Professional Services 3,476,580 2,097,059 1,782,916 314,143 17.62% 60.32% 1,379,521
Research&Monitoring 831,000 521,887 617,725 (95.838) -15.51% 62.80% 309,113
Repairs&Maintenance 12,332,440 9,989,533 8,144,843 1,844,690 22.65% 81.00% 2,342,907
Utilities 7,787,080 5,735,818 5,497,926 237,892 4.33% 73.66% 2,051,262
Other Materials,Supplies,
and Services 2,708,370 1,360,797 1,352,305 8,492 0.63% 50.24% 1,347,573
Net Cast Allocation (16,877,500) (14,397,165) (12,198,701) (2,198,464) 18.02% 85.30% (2,480,335)
Net Operating Requirements 149,306,940 104,491,257 105,073,503 (582,246) -0.55% 69.98% 44,815,683
Gallonage Flow(MG) 73,000.00 50,512.69 51,846.53 (1,333.84) -2.57%
Gallonage Flow(MGD) 200.00 183.68 189.22 (5.54) -2.93%
Gallonage Flow($'a/MG) $2,045000 $2,068.61 $2,026.63 $41.98 2.07%
Section 2-Page 4
Operating Budget Review
Summary of Revenues
For the Nine Months Ended March 31, 2016
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2015-16 3/31/16 Realized Budget 3131/15 $ %
Service Fees $294,182,000 $180,921.031 61.50% $113,260,969 $168,811,060 $ 12,109,971 7.17%
Permit Fees 13,555,000 8,319,237 61.37% 5,235,763 %260,644 (941,407) -10.17%
Inter District Sewer Use-SAWPA 2,690,000 2.219.912 82.52% 470,088 1,772,265 447,647 25.26%
Intre District Sewer Use-IRWD 2,550,570 3,325,318 130.38% (774,748) 1,790,660 1,534,658 85.70%
Sludge Disposal-IRWD 8,900,000 7.553.298 84.87% 1,346702 5,805,375 1,747,923 30.11%
Capital Assessments-IRWD 2,293,000 1,913,680 83.46% 379,320 279,516 1,634,164 584.64%
Capital Facilities Capacity Charges 11,000,000 10,629.417 96.63% 370,583 12,348,274 (1,713,857) -13.92%
Debt Proceeds - 174,868,588 N/A (174,868,588) 388,839,964 (213,971,376) -55.03%
Property Taxes 88,527,000 51,328,807 57.98% 37,198,193 48,384,825 2,943,982 6.08%
Interest Earnings 6,064,000 6,602,933 108.89% (538,933) 5,374,154 1,228,779 22.86%
Wastehauler 790,000 530.914 67.20% 259,086 593,723 (62,809) -10.58%
Grant Revenue - 450,000 N/A (450,000) - 450,000 100.00%
CNG Sales 400,000 292.519 73.13% 107,481 307,972 (15,453) -5.02%
Rents 8 Leases 254,000 192,079 75.62% 61,921 188,448 3,631 1.93%
Other 600,000 961.537 160.26% (361,537) 1,156,266 (194729) -16.84%
Power Sales 51000 17,703 354.06% (12,703) 11,254 6,449 57.30%
Other Sales 10,000 38,512 385.12% (28,512) 23,727 14,785 62.31%
Total Revenues $431,820,570 $ 450,165,485 10425% $ (18,344,915) $644,948,127 S(194782,642) -3020%
Section 2-Page 5
2015-16 Third Quarter Report
Summary of Collection,Treatment, &Disposal Expenses by Line Item
For the Nine Months Ended March 31, 2016
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2015-16 3131116 Expensed Budget =1115 $ %
Salaries.Wanes&Benefits
Salaries&Wages $ 66,276,100 $ 47,969,719 72.38% $ 18,306,381 $ 47,450,189 $ 519,5W 1.Og%
Employee Benefits
Retirement 16,726,300 12,189,137 72.87% 4,537,163 15,587,735 (3,398,598) -21.80%
Group Insurances 9,766,200 6,875,339 70.40% 2,890,861 6,587,651 287,688 4.37%
Tuition&Certification Relmb 154,500 112,064 72.53% 42,436 117,654 (5,590) 4.75%
Edu.degreea,Cad.&Lic. 303.300 243,756 80.37% 59.544 224,628 19,128 8.52%
Uniform Rental 47,400 38,548 81.32% 8,852 38,429 119 0.31%
Workers Compensation 1,478,700 1,109,028 75.00% 369,672 566,251 542,177 95.85%
Unemployment insurance 9,200 2,424 26.35% 6,776 9,783 (7,359) -75.22%
EMT Supplemental Benefits 40700 31,472 77.33% 9,228 29.585 1,887 6.38%
Total Benefits 28,526,300 20,601,768 72,22% 7,924,532 23,161,716 (2,559,948)
Salaries,Wages&Benefits 94,802,400 68,571,487 72.33% 26,230,913 70,611,905 (2,040,418) .2.89%
Matt.Supply.&Services
Administrative Expenses
Memberships 597,840 461,636 77.22% 136,204 472,707 (11,071) -2.34%
Office Exp-Supplies 68.600 41,981 61.20% 26.619 36.255 5,726 15.79%
Postage 39,970 22,529 56.36% 17,441 27,281 (4,752) -17.42%
Books&Publications 38,400 19,604 51.05% 18,796 18,979 625 3.29%
Fortes 910 231 25.38% 679 1,216 (985) -81.00%
Small Computer Items 734.000 590,491 80.45% 143.509 531.673 58,818 11.01
Minor Furniture&Fixtures 144,850 104,053 71.84% 40,797 77,030 27,023 35.08%
Subtotal 1,624,570 1,240,525 76.36% 384,045 1,165,141 75,384 6.47%
Printing&Publication
Repro-In-House W9,680 160,912 43.53% 208,768 112,594 (11,682) -6.]%
Printing-Outside 22,450 6,314 28.12% 16,136 17,547 (11,233) -64.02%
Notions&Ads 19,620 16,884 86.06% 2,736 11,891 4,993 41.99%
Photo Processing 220 0.00% 220 74 (74) -100.00%
Subtotal 412,020 184,110 44,68% 227,910 202,106 (17,996)
Training&Meetings
Meetings 212.620 100,945 47.48% 111.675 90.221 10,724 11.89%
Training 837,880 415,126 49.54% 422,754 385,121 30,005 7.79%
Subtotal 1,050,500 516,071 49.13% 534,429 475,342 40,729 8.57%
Operating Mat'Is&Supplies
Chemical Coagulants 6,012,000 4,495,488 74.78% 1,516,512 4,388,820 106,668 2.43%
Odor Control 8,043,200 6,297,203 65.86% 2,745,997 5,305,244 fi p41) -0.15%
Disinfection 154,000 142,950 92.82% 11,050 235,287 (92,337) -39.24%
Chemicals-Mist&Cogan 547,000 217,914 39.84% 329.086 18.376 199,538 1085.86%
Gasoline,Diesel&Oil 705,970 410,007 58.08% 295,963 395,276 14,731 3.73%
Tools 351,400 312,809 89.02% 38,591 224,764 88,045 39.17%
Safety equlpmenthools 169,350 472,500 100.67% (3,150) 331,865 140,635 42.38%
Soly,Paints&Jon.Supplies 88.320 63,024 71.36% 25.296 64.821 (1,797) -2.T %
Lab Chemicals&Supplies 647,160 437,413 67.59% 209,747 425,573 11,840 2.78%
Other OpemOng Supplies 155,800 123,863 79.50% 31,937 98,644 25,219 25.57%
Property Tax Fees 16,800 3,956 23.55% 12,846 3,956 NIA
Subtotal 17,191,000 11,977,127 69.67% 5,213,873 11,488,670 488,457 4.25%
Contractual Services
Solids Removal 17,407,000 13,224,276 75.97% 4,182,724 12,922,210 302,066 2.34%
Other Waste Disposal 943,220 608,228 64.48% 334,992 757,625 (149,397) -19.72%
Groundskeeping 174,000 103,959 5975% 70,041 115,173 (11,214) -9.74%
Janitorial 478,340 333,643 69.75% 144,697 362,485 (28,842) -7.96%
Outside Lab Services 280,500 114,304 40.75% 166,196 134,232 (19,928) -14.85%
Oxygen Plant Oper 274.200 295,124 107.63% (20,924) 390.560 (95,436) -24.44%
County Service Fee 706,950 38,869 5.50% 668,081 54,270 (15,401) -28.38%
Temporary Saracen t62,380 308,375 66.69% 154,006 230,734 77,641 33.65%
Security Services 582,000 305,200 52.44% 276,800 284,264 20,936 7.36%
Other 2,659,890 1,362,030 51.21% 1,297,860 681,772 680,258 99.78%
Subtotal 23,968,480 16,694,008 69.65% 7,274,472 15,933,325 760,683 4.77%
(Continued)
Section 2-Page 6
Operating Budget Review
Summary of Expenses by Line Item
For the Nine Months Ended March 31, 2016
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description W15-16 3131116 Expensed Budget 3131/15 $ %
Continued:
Professional Services
Legal 948,200 1,012,062 106.74% (63,862) 779,271 232,791 29.87%
Audit&Amounting 211,250 99,908 47.29% 111,342 127,427 (27,519) -21.60%
Engineering 720.000 184,279 25.59% 535721 77,339 106.940 138.27%
Enviro Scientific Consulting 105,000 47,531 45.27% 51,469 130,005 (82,554) -63.46%
Software PMm Consulting 308,000 187.429 60.85% 120,571 216,885 (29,456) -13.68%
Advocacy Efforts N7,000 129,475 52.42% 117,525 130,628 (1,153) -0.88%
Industrial Hygiene Services 100.000 115,480 115.48% (15,480) 51,209 64.271 125.51%
Labor Negotation Services 60,000 - 0.00% B0,000 30,303 (30,303) -100.00%
Other ]7,130 320.895 41.29% 456,235 239,769 81,126 33.84%
Subtotal 3,476,580 2,097.059 60.32% 1,379.521 1,782,916 314,143 17.62%
Research&Monitoring
Environmental Monitoring 345,000 209,980 60.86% 135,020 237,606 (27,626) -11.63%
Ar Quality Monitoring 85,000 11,907 14.01% 73p93 80,119 (68,212) -85.14%
Research 401,000 300,000 74.81% 101,000 3001000 0.00%
Subtotal 831,000 521,887 62.80% 309,113 617,725 (95,838) -15.51%
Repairs&Maintenance
Materials&Services 10,334,180 8,295,480 80.27% 2,038.700 6,557,654 1,737,826 26.50%
Svc.Mt,Agreements 1,998,260 1,694,053 84.78% 304,207 1,587,189 106,864 6.73%
Subtotal 12,332,440 9,989,533 81.00% 2,342,907 8,144,843 1,844,690 22.65%
utilities
Telephone 385,000 265,994 69.09% 119,006 232,454 33,540 14.43%
Diesel For Generators 24,160 6,986 28.92% 17,174 14,435 (7,449) -51.60%
Natural Gas 500,000 349,467 69.89% 1W,533 469,668 (120,201) -25.59%
Power 6,319,500 4,656,516 73.68% 1,662,984 4,382,833 273.683 6.24%
Water 558,420 456,855 81.81% 101,565 398,536 58,319 14.63%
Subtotal 7,787,080 5,735,818 73.66% 2,051,262 6,497,926 237,892 4.33%
Other Operating Supplies
Outside Equip Rental 105,970 12,837 12.11% 93,133 105,771 (92,934) -87.86%
Insurance Premiums 32,000 31,386 98.08% 614 31,884 (498) -1.66%
Prop&Gen Liab Insurance 496,000 371,997 75.00% 124,003 375,003 (3,006) -0.80%
Freight 69.070 64072 86.97% 81998 46,412 13.660 29.43%
Misc.Operating Expense 289,820 159,867 55.16% 129,953 122,520 37,347 30.48%
Regulatory Operating Fees 708,000 693.160 97.90% 14,840 626,344 66,816 10.67%
Subtotal 1,700,860 1,329.319 ]8.16% 371,541 1,307,934 21,385 1.64%
General Mgr Contingency
&Reappropriations W4,200 0.00% 904,200 N/A
Other Non-Oper Expense
Others 103,310 31,478 30.47% 71,832 44,371 (12,893) -29.06%
Subtotal 103,310 31,478 37547% 71,832 44,371 (12,893) -29.06%
Total Materials,
Supplies&Services 71,382,040 50,316,935 70.49% 21,065,105 46,660,299 3,656,636 7.84%
Total Expenditures 166,184,440 118,888,422 71.54% 47,296,018 11],2]2,204 1,616,218 1.38%
Cost Allocation (16,877,500) (14,397,165) 85.30% (2,480,335) (12,198,701) (2,198,464) 18.02%
Net Operating Requirements $ 149,306,940 $ 104,491,257 69.98% $ 44,815,683 $ 105,073,503 $ (582,246) -0.55%
Section 2-Page 7
2015-16 Third Quarter Report
Summary of Collection, Treatment,8 Disposal Expenses by Process
For the Nine Months Ended March 31,2016
Increase Increase
Actual Actual (Decrease) (Decrease)
3/31/16 3/31/15 $ %
Process:
Preliminary Treatment $ 6,674,036 $ 6,316,429 $ 357,607 5.66%
Primary Treatment 9,205,661 9,727,065 (521,404) -5.36%
Secondary Treatment 5,725,918 5,976,942 (251,024) -4.20%
Cryogenic Plant(Plant 2) 544,922 774,594 (229,672) -29.65%
Ef0uent Disposal 742,103 591,287 150,816 25.51%
Solids Handling 34,610,347 35,606,759 (996,412) -2.80%
Cogeneration 12,203,558 10,026,823 2,176,735 21.71%
Utilities 2,050,225 2,172,279 (122,054) -5.62%
Electrical Distribution 1,608,264 1,489,979 118,285 7.94%
Miscellaneous Buildings 6,606,730 5,703,947 902,783 15.83%
External Location 72,967 51,936 21,030 40.49%
Nerlssa Vessel 175,521 271,203 (95,682) -35.28%
North County Yard 39,879 1,983 37,895 1910.62%
Laboratory 9,114,751 9,392,544 (277,793) -2.96%
Collections 15,116,374 16,969,731 (1,853,357) -10.92%
Net Operating Requirements $ 104,491,257 $ 105,073,503 $ (582,246) -0.55%
Section 2-Page 8
Operating Budget Review
Staffing Trends
Full Time Equivalents
March 31, 2016
700
650 634 626 624 624 624
600 46 38 36 q4
550
500
450
6/30112 6/30113 6/30/14 6130115 3/31/16
8Actua1 8Va.a t
At March 31, 2016, the total head count was 584 employees, or a full time equivalency of 571.
Section 2-Page 9
2015-16 Third Quarter Report
This Page Intentionally Left Blank
Section 2- Page 10
CIP Budget Review
Capital Improvement Program
By Type and Funding Source
For the Nine Months Ended March 31, 2016
eColledons Facllldes: 19.3%
1111HaaEwwks: 3,6%
ePdmary Treatment: 3.0%
USecandary Treatment 1.9%
eSolids Handling&Olgeston: 48 6%
130cean Outiall Systems: 8 2%
GUglity Systems: 5.6%
MP=ess Related Special Projects 0 7%
elnfamlaton Management Systems: 1.9%
eStrategic&Master Planning: 0.2%
/ Weater Management Projects: 1.3%
1•Supp it FadlNea: 6.3%
am.. 0.3%
e Pdor Year Treatment Projects: 0.0%
MCapital Equipment Purchases: 1.1%
Total Capital Improvement Outlays -$105,962,718
l Replacement/Rehabilitation: 47%
Improved Treatment: 36%
❑Additional Capacity: 12%
■Support: 5%
Total Capital Improvement Outlays -$105,962,718
Section 3- Page 1
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015.16
Cashflow Actual at Projected
Budget 3/31/2016 Outlay
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehab. $ 1,490,918 $ 1,645,361 $ 1,677,600
SARI Realignment 538,848 93,422 137,500
SARI Rock Stabilizers Removal 98,323 219,116 259,800
Newhope-Placentia Trunk Grade Separation Repl. 653,226 400,493 569,200
Newhope-Placentia Trunk Replacement 6,339,297 2,483,461 4,632,800
Lakeview Grade Separation Project 15,836 - 27,600
Tustin Rose OCTA Grade Separation Project 109,420 176,320 178,300
Seal Beach Pumping Station Rehabilitation 1,278,051 716,900 1,667,900
Rehabilitation of Western Regional Sewers 642,771 427,595 1,458,600
Newport Force Main Rehabilitation 23,453,907 11,629,355 12,338,300
Dover Drive Trunk Sewer Relief 716,918 1,128,070 1,128,100
District 6 Trunk Sewer Relief 4,049,977 223,935 255,700
Southwest Costa Mesa Trunk 479,304 165,327 301,100
Gisler-Redhill Trunk Improvements, Reach B 8,202,769 276,759 1,952,500
Master Facilities Engineering Projects-Collections 754,631 475,569 528,100
Master Planning Studies-Collections - 85,746 85,800
Bay Bridge Pump Station and Force Mains Rehab Study 469,725 135,080 173,700
Additional Charges to CIP Closed at 6/30/15 (73,707) (73,800)
Subtotal -Collections Facilities 49,293,921 20,208,802 27,298,800
Revenue Area 14
Newport Force Main Rehabilitation (1.88%) 449,382 259,170 272,800
Subtotal -Revenue Area 14 449,382 259,170 272,800
Total Collection System Improvement Projects 49,743,303 20,467,972 27,571,600
(Confined)
Section 3-Page 2
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015.16
Cashflow Actual at Projected
Budget 3/31/2016 Outlay
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 5,907,164 1,399,941 2,092,200
Truck Line Odor Control Improvements P1 5,401,072 2,375,457 4,223,600
Subtotal -Headworks 11,308,236 3,775,398 6,315,800
Primary Treatment
Plant 1 Primary Treatment Upgrades 4,535,914 2,513,224 3,192,400
Plant 2 Primary Treatment System Rehabilitation 257,678 663,498 834,600
Primary Treatment Area Rehabilitation Study 128,777
Subtotal -Primary Treatment 4,922,369 3,176,722 4,027,000
Secondary Treatment
Activated Sludge Aeration Basin Deck Repair at P2 174,861 42,869 64,700
Oxygen Plant Demolition at Plant No. 2 2,624,473 1,930,791 2,221,300
Subtotal -Secondary Treatment 2,799,334 1,973,660 2,286,000
Solids Handling& Digestion
Digester Rehabilitation at Plant 1 5,242,131 3,421,834 4,248,900
Sludge Dewatedng and Odor Control at Plant 1 50,905,349 36,897,808 40,756,000
Digester Ferric Chloride System Rehabilitation 54,634 1,969 2,000
Solids Thickening and Processing Upgrades 4,644,432 4,261,571 5,439,100
Sludge Dewatering and Odor Control at Plant 2 6,440,708 6,966,451 11,832,100
Subtotal -Solids Handling&Digestion 67,287,254 51,549,633 62,278,100
Ocean Outfall Systems
Final Effluent Sampler and Building Area Upgrades 8,399,791 4,952,498 6,225,200
Ocean Outfall System Rehabilitation 3,546,419 1,600,985 3,479,200
Subtotal -Ocean Oulfall Systems 11,946,210 6,553,483 9,704,400
Utility Systems
Cengen Cooling Water System Replacement 50,604 66,815 89,300
Cengen Emissions Control Project 7,209,612 4,358,449 5,473,500
Natural Gas Pipelines Repl at Plant No. 1 and 2 39,509 - 1,100
Plant Water System Rehabilitation at Plant No. 1 1,112,536 58,017 62,800
Plant Water System Rehabilitation at Plant No. 2 870,583 84,353 84,400
Boiler System Rehab&Scrubbers H & I Demolition at P2 333,046 164,588 220,100
Consolidated Demolition&Utility Improvements at P2 1,980,801 1,056,651 1,449,000
Plant Air System Master Plan 120,681 96,485 137,700
Subtotal -Utility Systems 11,717,372 5,885,358 7,517,900
(Confined)
Section 3-Page 3
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow, Actual at Projected
Budget 3/31/2016 Outlay
Process Related Special Projects
Safety Improvements at Plants Nos. 1 and 2 51,536 19,902 202,200
Corrosion Management 1,431,191 626,662 824,800
Odor Control Master Plan 403,127 128,427 301,600
Subtotal -Process Related Special Projects 1,885,854 774,991 1,328,600
Information Management Systems
Programmable Control Panel Upgrades 1,635,577 718,477 1,401,200
SCADA System and Network Upgrades 398,034 253,774 1,085,900
Strategic Information Architecture (SIA) 491,921 390,125 440,200
Internet/Intranet Development 147,884 - 25,000
Geographic Information System 646,806 250,164 280,200
Information Technology Equipment Upgrade 439,179 5,914 56,000
EAM Software and Process Implementation 995,396 28,803 38,900
PDS2D Software Replacement 140,308 21,963 42,000
Software and Computer Equipment Repl. Project 849,874 364,860 439,900
Land Records Mgmt System Project 98,849 - -
Communication Radio System Replacement 119,532 250,000
Subtotal -Information Management Systems 5,963,360 2,034,080 4,059,300
Strategic& Master Planning
Master Planning Studies 908,533 182,135 791,800
Stormwater Master Plan 131,110
Subtotal -Strategic&Master Planning 1,039,643 182,135 791,800
Water Management Projects
Effluent Reuse Study 1,206,269 1,388,497 1,657,800
Subtotal -Water Management Projects 1,206,269 1,388,497 1,657,800
Support Facilities
Master Facilities Engineering Projects- Plant 5,007,745 2,081,739 3,442,700
Master Small Capital Replacement/Rehabilitation 2,800,792 47,502 47,600
Title 24 Access Compliance&Building Rehab Project 5,196,624 3,155,758 3,905,300
South Perimeter Security and Storm Water Impr.at Pl 675,161 192,536 192,600
Headquarters Complex, Site&Security&Entrance Realign. - 132,708 252,500
Site and Security Improvements at Plant No.2 - - 900
Administrative Facilities Implementation Planning 5,083 65,470 65,500
Ongoing Small Capital Replacement/Rehabilitation 986,303 1,030,614 1,256,700
Subtotal -Support Facilities 14,671,708 6,706,327 9,163,800
(Confined)
Section 3-Page 4
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow Actual at Projected
Budget 313 112 01 6 Outlay
Others
Future Research Line Item 102,160 360,087 462,500
Capital Improvement Program Mgmt. Services 183,507 (6,000) (6,000)
Subtotal -Others 285,667 354,087 456,500
Additional Charges to CIP Completed at 6130115 14,971 15,000
Total Treatment and Disposal Projects 135,033,276 84,369,342 109,602,000
Capital Equipment Purchases 3,048,900 1,125,404 3,048,900
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $187,825,479 $105,962,718 $140,222,500
Section 3 - Page 5
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehab. 7,676,000 5,016,145 1,677,600 6,693,745 982,255
Raiff and Bristol Street Sewer Extension 5,319,000 259,075 - 259,075 5,059,925
SARI Realignment 11,404,000 5,485,418 137,500 5,622,918 5,781,082
SARI Rock Stabilizers Removal 3,092,000 44,834 259,800 304,634 2,787,366
Taft Branch Improvements 1,928,000 12,083 - 12,083 1,915,917
Newhope-Placentia Trunk Grade Separmon Repl. 5,966,000 3,311,872 569,200 3,881,072 2,084,928
Newhope-Placentia Trunk Replacement 104,890,000 2,210,775 4,632,800 6,843,575 98,046,425
Yoffie Linda Pumping Station Abandonment 4,158,000 - - - 4,158,000
Lakeview Grade Sepamton Project 330,000 68,892 27,600 96,492 233,508
Tustin Rose OCTA Grade Separation Project 586,000 107,087 178,300 285,387 300,613
Beach Tmnk/Knott Interceptor Sewer Relief 118,678,000 - - - 118,678,000
Seal Beach Pumping Station Rehabilitation 62,041,000 225,706 1,667,900 1,893,606 60,147,394
Rehabilitation of Western Regional Sewers 112,222,000 157,056 1p58,600 1,615,656 110,606,344
Newport Force Main Rehabilitation 62,796,800 41,928,209 12,338,300 54,266,509 8,530,291
Dover Drive Trunk Sewer Relief 14,327,000 12,906,754 1,128,100 14,034,854 292,146
Crystal Cove Pumping Station Upgrade and Rehab 10,514,000 - - - 10,514,000
Bay Bridge Pumping Station Rehabilitation 51,010,000 - - - 51,010,000
District 6 Trunk Sewer Relief 7,795,000 1,061,211 255,700 1,316,911 6,478,089
Southwest Costa Mesa Trunk 14,993,000 1,548,343 301,100 1,849,443 13,143,557
Gisler-Redhill Trunk Improvements,Reach B 28,143,000 4,101,645 1,952,500 6,054,145 22,088,855
Browning Subtrunk Sewer Relief 16,952,000 - - - 16,952,000
MacArthur Pump Station Rehabilitation 8762,000 - - - 8,762,000
Main Street Pump Station Rehabilitation 37,892,000 - - - 37,892,000
Edinger/Bolsa Chica Trunk Improvements 5,159,000 - - - 5,159,000
Edinger Pumping Station Upgrade and Rehabilitation 8,890,000 - - - 8,880,000
Slater Avenue Pump Station Rehabilitation 9,729,000 - - - 9,729,000
Master Facilities Engineering Projects-Collections 12,192,006 886,245 528,100 1,414,345 10,777,661
Master Planning Studies-Collections - - 85,800 85,800 (85,800)
Bay Bridge Pump Station and Force Mains Rehab Study 725,000 160,334 173,700 334,034 390,966
Additional Charges to CIP Closed at 6130115 (73,800) (73,800) 73,800
Subtotal-Collections Facilities 728,159,806 79,491,684 27,298,800 106790,484 621,369,322
Revenue Area 14:
Newport Force Main Rehabilitation(1.88%) 1,203,200 803,353 272,800 1,076,153 127,047
Subtotal-Revenue Area 13 1,203,200 803,353 272,800 1,076,153 127,047
Total Collection System Improvement Projects 729,363,006 80,295,037 27,571,600 107,866,637 621,496,369
(Continued)
Section 3-Page 6
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Treatment&Disposal Pro act
Headworks
Headworks Rehabilitation and Expansion at Plant 1 235,273,000 359,971 2,092,200 2,452,171 232,820,829
Truck Line Odor Control Improvements P1 11,170,000 1,626,415 4,223,600 5,850,015 5,319,985
Subtotal-Headworks 246,443,000 1,986,386 6,315,800 8,302,186 238,140,814
Primary Treatment
Primary Scrubber Rehabilitation at Plant 1 94,228,000 - - - 94,228,000
Plant l Primary Treatment Upgrades 10,317,000 5,344,930 3,192,400 8,537,330 1,779,670
Primary Clarifers Repl&Impr at Plant No.1 122,649,044 - - - 122,649,044
Plant 2 Primary Treatment System Rehabilitation 156,029,000 132,951 834,600 967,551 155,061,449
Primary Treatment Area Rehabilitation Study 1,000,000 157,161 157,161 842,839
Subtotal-Primary Treatment 384,223,044 5,635,04E 4,027,000 9,662,042 374,561,002
Secondary Treatment
Activated Sludge Aeration Basin Deck Repair at P2 6,679,009 - 64,700 64,700 6,614,309
Oxygen Plant Demolition at Plant No.2 4,051,000 623,942 2,221,300 2,845,242 1,205,758
Subtotal-Secondary Treatment 10,730,009 623,942 2,286,000 2,909,942 7,820,067
Solids Handling&Digestion
Digester Rehabilitation at Plant 1 64,902,000 53,301,350 4,248,900 57,550,250 7,351,750
Sludge Dewatering and Odor Control at Plant 1 171,978,000 107,446,409 40,756,000 148,202,409 23,775,591
Digester Ferric Chloride System Rehabilitation 4,449,000 4,409,613 2,000 4,411,613 37,387
Solids Thickening and Processing Upgrades 51,150,000 41,080,729 5,439,100 46,519,829 4,630,171
Plant No.2 Digester Facilities Rehabilitation 47,600,000 152,343 - 152,343 47,447,657
Sludge Dewatering and Odor Control at Plant 2 86,500,000 15,751,351 11,832,100 27,583,451 58,916,549
Subtotal-Solids Handling&Digestion 426,579,000 222,141,795 62,278,100 284,419,895 142,159,105
Ocean Ouffall Systems
Final Effluent Sampler and Building Area Upgrades 15,973,000 3,829,324 6,225,200 10,054,524 5,918,476
Ocean Oudall System Rehabilitation 76,000,000 505,351 3,479,200 3,984,551 72,015,449
Subtotal-Ocean Oulfall Systems 91,973,000 4,334,675 9,70 ,400 14,039,075 77,933,925
Utility Systems
Cengen Cooling Water System Replacement 11,477,000 11,304,166 89,300 11,393,466 83,534
Cengen Emissions Control Project 24,950,000 17,184,906 5,473,500 22,658,406 2,291,594
UPS System Upgrades 7,891,000 - - - 7,891,000
Digester Gas Facilities Rehabilitation 85,870,000 - - - 85,870,000
Natural Gas Pipelines Repl at Plant No.1 and 2 1,310,017 - 1,100 1,100 1,308,917
Electrical Power Distribution System Improvements 35,081,000 - - - 35,081,000
Plant Water System Rehabilitation at Plant No.1 8,000,000 6,054,513 62,800 6,117,313 1,882,687
(Continued)
Section 3-Page 7
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements-Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Utility Systems(continued)
Central Generation Rehab at Plant No. 1 35,646,979 - - - 35,646,979
Plant Water System Rehabilitation at Plant No.2 5,070,000 3,621,641 84,400 3,706,041 1,363,959
Boiler System Rehab&Scrubbers H&I Demolition at P2 3,095,000 2,593,983 220,100 2,814,083 280,917
Consolidated Demolition&Utility Improvements at P2 43,984,000 1,184,290 1,449,000 2,633,290 41,350,710
Central Generation Rehab at Plant No.2 41,909,015 - - - 41,909,015
Plant Air System Master Plan 340,000 137,700 137,700 202,300
Subtotal-Utility Systems 304,624,011 41,943,499 7,517,900 49,461,399 255,162,612
Process Related Special Projects
Safety Improvements at Plants Nos.1 and 2 1,708,016 - 202,200 202,200 1,505,816
Corrosion Management 24,518,000 10,333,968 824,800 11,158,768 13,359,232
Odor Control Master Plan 1,900,000 933,582 301,600 1,235,182 664,818
Subtotal-Process Related Special Projects 28,126,016 11,267,550 1,328,600 12,596,150 15,529,866
Information Management Systems
Process SCADA Replacement 24,680,000 - - - 24,680,000
Programmable Control Panel Upgrades 3,177,000 706,439 1,401,200 2,107,639 1,069,361
SCADA System and Network Upgrades 27,839,000 14,464 1,085,900 1,100,364 26738,636
Strategic Information Architecture(SIA) 2,800,000 1,633,349 440,200 2,073,549 726,451
Inlemetllntranet Development 650,000 277,072 25,000 302,072 347,928
Geographic Informaton System 4,460,000 1,660,579 280,200 1,940,T79 2,519,221
Information Technology Equipment Upgrade 4,148,000 3,205,226 56,000 3,261,226 886,774
EAM Software and Process Implementation 7,500,000 4,671,294 38,900 4,710,194 2789,806
PDS2D Software Replacement 525,000 320,388 42,000 362,388 162,612
Software and Computer Equipment Repl.Project 6,576,000 1,790,758 439,900 2,230,658 4,345,342
Land Records Mgmt System Project 600,000 373,951 - 373,951 226,049
Communication Radio System Replacement 750,000 355,645 250,000 605,645 14g355
Subtotal-Information Management Systems 83,705,000 15,009,165 4,059,300 19,068,465 64,636,535
Strategic&Master Planning
Master Planning Studies 11,803,111 - 791,800 791,800 11,011,311
Climate Change Impact Study 400,000 - - - 400,000
Stornm ater Master Plan 700,000 700,000
Subtotal-Strategic&Master Planning 12,903,111 791,800 791,800 12,111,311
Water Management Projects
Effluent Reuse Study 3,250,000 521,193 1,657,800 2,178,993 1,071,007
Subtotal-Water Management Projects 3,250,000 521,193 1,657,800 2,178,993 1,071,007
(Continued)
Section 3-Page 8
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Support Facilities
Master Facilities Engineering Projects-Plant 43,325,807 21,111,389 3,442,700 24,554,089 18,771,718
Master Small Capital ReplacementlRehabilitation 15,622,000 - 47,600 47,600 15,574,400
Title 24 Access Compliance&Building Rehab Project 17,161,000 7,267,147 3,905,300 11,172,447 5,988,553
South Perimeter Security and Storm Water Impr.at P1 5,277,000 107,327 192,600 299,927 4,977,073
Headquarters Complex,Site&Security&Entrance Realign. 168,000,000 - 252,500 252,500 167,747,500
Site and Security Improvements at Plant No.2 252,000 227,170 900 228,070 23,930
Administrative Facilities Implementation Planning 800,000 716,399 65,500 781,899 18,101
Ongoing Small Capital Replacement/Rehabilitation 21,672,000 19,420,090 1,256,700 20,676,790 995,210
Subtotal-Support Facilities 272,109,807 48,849,522 9,163,800 58,013,322 214,096,485
Others
Future Research Line Item 10,440,032 1,264,527 462,500 1,727,027 8713,005
Capital Improvement Program Mgml.Services 300,000 10,000 (6,000) 4,000 296,000
Subtotal-Others 10,740,032 1,214,52] 456,500 1,731,027 9,009,005
Additional Charges to Cl P Completed at 6130115 15,000 15,000 (15,000)
Total Treatment and Disposal Projects 1,875,406,030 353,587,296 109,602,000 463,189,296 1,412,216,734
Capital Equipment Purchases 13,328,984 5,178,339 3,048,900 8,227,239 5,101,745
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $2,618,098,020 $439,060,672 $140,222S00 $579,283,172 $2,038S14,848
Section 3-Page 9
FY 2015-16 Third Quarter Report
This Page Intentionally Left Blank
Section 3- Page 10
Capital Assets Schedule & Debt Service Budget Review
Capital Assets Schedule
For the Nine Months Ended March 31,2016
Capital Facilities Budget Review
Balance Year-to-Date Balance
07/01/15 Additions 3131116
CONSTRUCTION IN PROGRESS:
Treatment Plant $ 310,917,052 $ 85,494,746 $ 396,411,798
Collection System 81,292,173 20,467,972 101,760,145
Subtotal 392,209,225 105,962,718 498,171,943
PROPERTY,PLANT&EQUIPMENT(at cost):
Land and Property Rights 15,959,559 - 15,959,559
Collection Lines and Pump Stations 758,158,102 - 758,158,102
Treatment Facilities 2,255,777,614 - 2,255,777,614
Effluent disposal facilities 97,014,820 - 97,014,820
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 227,945,470 - 227,945,470
Excess purchase price over book value on acquired assets 19,979,000 19,979,000
Subtotal 3,378,297,801 3,378,297,801
Total Property, Plant&Equipment&CIP $ 3,770.507,026 $ 105.962,718 $ 3,876 469,744
Debt Service Budget Review
2015-16 Year-to-Date Remaining
Budget Payments %of Budget Budget
Principal Payments by Debt Issue:
2007A COP 255,000 255,000 100.00% -
2007B COP 6,775,000 6,775,000 100.00% -
2008B COP 8,500,000 8,500,000 100.00% -
2009ACOP 4,050,000 4,050,000 100.00% -
201 OA BABs - - N/A -
201OC BABs - - N/A -
2011ACOP 9,825,000 9,825,000 100.00% -
2012A COP - - N/A -
2012B COP - - N/A -
2014A COP - - N/A -
2014B CANS 7,827,411 - 0.00% 7,827,411
2015A COP - - N/A -
2016A COP N/A
Subtotal Principal Payments 37,232,411 29,405,000 78.98% 7,827,411
Interest Expense by Debt Issue:
2007A COP 4,114,227 3,087,178 75.04% 1,027,049
2007B COP 12,826,634 474,188 3.70% 12,352,446
2008B COP 389,825 219,225 56.24% 170,600
2009A COP 8,825,700 5,245,800 59.44% 3,579,900
201 OA BABs 2,897,639 2,495,788 86.13% 401,851
2010C BABs 6,523,780 5,619,133 86.13% 904,647
2011A COP 5,398,725 3,905,825 72.35% 1,492,900
2012A COP 3,735,900 2,802,000 75.00% 933,900
2012B COP 3,187,400 2,390,500 75.00% 796,900
2014A COP - 3,190,900 N/A (3,190,900)
2014B CANS 464,523 3,622,800 779.90% (3,158,277)
2015A COP 6,180,693 4,784,983 77.42% 1,395,710
2016A COP 657,800 N/A (657,800)
Subtotal Interest Expense 54,545,046 38,496,120 70.58% 15,311,016
Total Debt Service $ 91,777,457 $ 67,901,120 73.98% $ 23,138,427
Section 4- Page 1
2015-16 Third Quarter Report
This Page Intentionally Left Blank
Section 4 - Page 2
Self Insurance Budget Review
General Liability and Property Fund Budget Review
For the Nine Months Ended March 31,2016
Percent
Actual of Budget Remaining Actual
2015-16 Through Through 2015-16 Through Increase
Budget 3/31/16 3131116 Budget 3/31/15 (Decrease)
Revenues:
In-Lieu Premiums $ 496,000 $ 371,997 75.00% $ 124,003 $ 375,003 $ (3,006)
Miscellaneous Other Revenue - 16,369 N/A - 274 16,095
Service Department Allocations 20,000 4,122 20.61% 15,878 4,122 -
Total Revenues 516,000 392,488 76.06% 139,881 379,399 13,089
Expenses:
Benefits/Claims 75.000 16,133 21.51% 58,867 23,567 (7,434)
Contractual Services 200 - 0.00% 200 - -
Legal Services 50,000 105,453 210.91% (55,453) 39,856 65,597
Professional Services 2,500 0.00% 2,500
Subtotal 127,700 121,586 95.21% 6,114 63,423 58,163
Policy Premium Expense 1,530,000 870,393 56.89% 659,607 826,404 43,989
Total Expenses 1,657,700 991,979 59.84% 665,721 889,827 102,152
Excess Revenue (Expense) (1,141,700) (599,491) $ (525,840) (510,428) (89,063)
Beginning Reserves 56,141,700 56,125,511 56,802,224 (676,713)
Ending Reserves $55, 000,000 $ 55, 226 020 $ 56, 991,796 $ (765,776)
Section 5-Page 1
FY 2015-16 Third Quarter Report
Workers' Compensation Fund Budget Review
For the Nine Months Ended March 31,2016
Percent
Actual of Budget Remaining Actual
2015-16 Through Through 2015-16 Through Increase
Budget 3/31/16 3/31/16 Budget 3131115 (Decrease)
Revenues:
In-Lieu Premiums $ 1,478,700 $ 1,109,025 75.00% $ 369,675 $ 566,250 $ 542,775
Miscellaneous Other Revenue 5,000 10,280 205.60% (5,280) 9,117 1,163
Service Department Allocations - - N/A - - -
Total Revenues 1,483,700 1,119,305 75.44% 364,395 575,367 543,938
Expenses:
Benefits/Claims 525,000 506,851 96.54% 18,149 505,866 985
Contractual Services - - N/A - - -
Legal Services 130,000 151,028 116.18% (21,028) 98,521 52,507
Professional Services 75,000 46,403 61.87% 28,597 50,074 (3,671)
Subtotal 730,000 704,282 96.48% 25,718 654,461 49,821
Policy Premium Expense 225,000 145,754 64.78% 79,246 166,895 (21,141)
Total Expenses 955,000 850,036 89.01% 104,964 821,356 28,680
Excess Revenue(Expense) 528,700 269,269 $ 259,431 (245,989) 515,258
Beginning Reserves 1,471,300 1,523,264 1,771,820 (248,556)
Ending Reserves $ 2A00,000 _L 1,792.533 $ 1,525,831 $ 266,702
Section 5-Page 2
a
C�p
April 30, 2016
STAFF REPORT
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2016
SUMMARY
Section 15.0 of the District's Investment Policy includes quarterly reporting requirements
for the District's two investment portfolios. These two funds, the "Liquid Operating
Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset
Management, the District's external money manager.
The ongoing monitoring of the District's investment program by staff and Callan
Associates, the District's independent investment advisor, indicates that the District's
investments are in compliance with the District's adopted Investment Policy and the
California Government Code, and that overall performance has tracked with benchmark
indices. In addition, sufficient liquidity and anticipated revenues are available for the
District to meet budgeted expenditures for the next six months. The District's portfolios
do not include any reverse repurchase agreements or derivative securities.
ADDITIONAL INFORMATION
Performance Reports
The Quarterly Strategy Review, prepared by Chandler Asset Management, and the
Investment Measurement Service Quarterly Review, prepared by Callan Associates, is
attached for reference. Also attached are Long-Term and Liquid Operating Monies
Summary of Performance Data and Portfolio Statistics charts that depict the
performance results, estimated yield and duration, credit quality, and sector
diversification of the District's portfolios, as of March 31, 2016. The Liquid Operating
Monies portfolio, with an average maturity of 47 days, consists entirely of high quality
fixed income investments consistent with the District's investment policy.
Portfolio Performance Summary
The following table presents a performance summary of the District's portfolios as
compared to their benchmarks for the period January 1 through March 31, 2016.
OOSD ♦ P.O.Box 8127 ♦ Fountain Valley,LA 9272B-B127 ♦ (714)962-2411
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2016
Page 2 of 3
Portfolio Performance Summary
Quarter Ended March 31,2016
Liquid Operating Monies %) Long-Tenn Operating Monies °
Total Rate Total Rate of
of Return Beno"11 Return Benchmark(')
3 Months 0,17 0.07 1.54 1.56
6 Months 0.22 0.11 1.21 1.00
9 Months 0.28 0.12 1.74 118
12 Months 0.33 0.12 1.58 1.68
Since inception 30 Nov 2014 0.m mu 1.63 1.74
Market Value 63.8M 319AM
Average Quality "AAA"f'Aal" "AAY/'Aal"
Current Yield(%) 0.8 1.5
Estimated Yield to Maturity(%) 0.5 1.0
Quarterly Deposits(Wilhdrawals) (68.3)M $0.0m
Estimated Annual Income $0.4M $4.5M
(1) Benchmarks:
• Liquid Operating Portfolio: 3-Month Treasury Bill Index
• Long-Teml Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index
Portfolio Market Values
Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the
attached bar chart.
Liquid Long-Term
Quarter Operating Operating
Ending Monies($M) Monies($M)
30 Jun.15 61.8 404.9
30 Sep.15 43.9 262.6
31 Dec.15 132.0 314.8
31 Mar.16 63.8 319.6
District's Investment Account Balances as of March 31,2016
Book Balances Estimated
Investment Accounts March 31,2016 Yield(%)
Slate of Calif.LAIF $ 52,379,886 0.40
Union Bank Checking Amount 151,794 0.00
Union Bank Overnight Sweep Account 656,019 0.01
Union Bank W/C Checking 72,176 0.00
Chandler-Short-leml Portfolio 63,681,505 0.79
Chandler-Long-term Portfolio 320,910,418 1.52
Petty Cash 3,000 N/A
BNY Mallon OCIP Reserve 3.603.416 0.25
TOTAL 2441 45R214 1.26
Debt Service Reserves w/Tmstees A 2a 97(f.625 2.02
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2016
Page 3 of 3
District's Cost of Funds on Debt Issues as of March 31, 2016
Annual
Cost of Funds Outstanding Intetest
Issue Description COP Bzlance Rate r%)
2007A Fixed $91,885,000 4.50
2007B Fixed 7,110,000 4.71
2008B Fixed 8,815,000 2.96
2009A Fixed 13,405,000 4.72
2010A Fixed 80,000,000 3.68
2010C Fixed 157,000,000 4.11
2011A Fixed 111,465,000 2.61
2012A Fixed 100,645,000 3.54
2012B Fixed 66,395,000 1.50
2014A Fixed 85,090,000 2.34
2014B Fixed 120,850,000 0.35
2015A Fixed 127,510,000 3.30
2016A Fixed 145.880 000 3.02
TOTAL $1.116.050.000 2.98
Weighted Avg.Cost of Funds
ATTACHMENTS
1. Chandler Quarterly Report
2. Summary of Performance Data and Portfolio Statistics— Liquid Operating Monies
3. Summary of Performance Data and Portfolio Statistics — L-T Operating Monies
4. Investment Transactions and Balances in LAW
5. Asset Summary by Asset Type— Liquid Operating Portfolio
6. Asset Summary by Asset Type— Long Term Portfolio
7. Asset Summary by Asset Type — Owner Controlled Insurance Program Escrow
Account
8. Investment Listing (Yield Analysis Report).
9. Asset Detail — Consolidated
10. Custody Transaction History -- Consolidated
11. Callan Quarterly Review
12. Chandler Quarterly Review
13. Rating Agency Comparisons
C/" CHANDLER
ASSET
MANAGEMENT
March 31, 2016
Mr. Mike White, CPA
Controller
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Mike,
Bond Market Recap
The Federal Open Market Committee (FOMC) left policy rates unchanged in March, as
expected. The tone of the FOMC policy statement was largely dovish and the Committee's
consensus forecast for the year-end target federal funds rate was revised down to a level more
closely aligned with market expectations. The FOMC's median forecast now implies two rate
hikes in 2016 versus the previous forecast of four rate hikes. Fed funds futures prices currently
imply just one more rate hike this year. The FOMC also adjusted some of their longer term
forecasts, with the pace of rate hikes in 2017 and 2018 moving modestly lower. Esther George,
the President of the Federal Reserve Bank of Kansas City was the lone dissenter at the March
meeting, preferring to see the target fed funds rate increase by 0.25%. We believe monetary
policy continues to be data dependent and we will be watching developments in currency
market valuations, in particular the direction of the US Dollar, to help ascertain the future
direction of the FOMC. A stable or weaker dollar will likely give the FOMC more latitude to
continue the normalization process specific to the federal funds target rate; a stronger dollar
would have the opposite impact.
Domestic economic data is generally favorable. Labor market trends continue to improve,
consumer confidence is strong, and housing trends remain healthy. In addition, manufacturing
trends seem to be improving. Payrolls have increased by an average of 209,000 per month over
the past three months. Meanwhile inflation pressures remain contained. Fourth quarter 2015
GDP grew at a stronger than expected annualized pace of 1.4%, following growth of 2.0% in the
third quarter. Market participants have been forecasting GDP growth of about 2.0% in the first
quarter of 2016, but some economists recently reduced their forecast.
In March, the Treasury yield curve steepened slightly, with the 2-year Treasury yield down five
basis points and the 10-year Treasury yield up three basis points. We believe the modest
decline in shorter-term yields was influenced by largely dovish comments made by members of
the FOMC during the month. Even though inflation remains contained for now, which gives the
Fed more leeway to remain highly accommodative, we believe strong labor market trends leave
the door open for the Fed to continue normalizing monetary policy this year. We believe two
more 25 basis point fed funds rate hikes before year-end are possible. Ongoing uncertainty
GAL CHANDLER
ASSET
MANAGEMENT
about monetary policy and how the Fed communicates its economic projections will likely
continue to fuel financial market volatility.
In March, the Treasury yield curve steepened slightly. However, over the past three month the
yield curve has flattened with the 2-year Treasury yield down about 33 basis points and the 10-
year Treasury yield down about 50 basis points. We believe the modest curve steepening
during March was influenced by dovish comments made by members of the FOMC in the
month.
Consumer Prices
Inflation pressures remain contained for now. The Consumer Price Index (CPI) was up just
1.0% year-over-year in February, vs. 1.4% in January. Core CPI (CPI less food and energy)
was up 2.3% in February, vs. 2.2% in January. The Personal Consumption Expenditures (PCE)
index was up 1.0% year-over-year in February, vs. up 1.3% in January. Core PCE (excluding
food and energy) was up 1.7% year-over-year in February, unchanged from January. PCE
remains below the Fed's 2.0%target.
Retail Sales
Consumer spending trends have underwhelmed but we are hopeful the impact of lower
commodity prices will begin to provide a tailwind. On a year-over-year basis, retail sales were
up 3.1% in February, vs. up 3.0% in January. On a month-over-month basis, retail sales,
excluding autos and gas, were in line with expectations in February, up 0.3%. However, retail
sales in January were revised down to a decline of 0.1% from a gain of 0.4%. Overall retail
sales, including autos and gas, were down 0.1% in February, following a disappointing 0.4%
decline in January.
Labor Market
The March employment report was stronger than expected. Nonfarm payrolls rose by 215,000
in March, exceeding the consensus forecast of 205,000. January and February payrolls were
revised down slightly by a net total of 1,000. The unemployment rate inched up to 5.0% from
4.9%, as the participation rate increased to 63.0% from 62.9%. A broader measure of
unemployment called the U-6, which includes those whom are marginally attached to the labor
force and employed part time for economic reasons, also ticked up to 9.8% from 9.7%. Wages
rose 0.3% in March, exceeding expectations. During the first quarter of 2016, payrolls increased
by an average of 209,000 per month, compared to the trailing six-month average of 246,000.
Overall, the March jobs report points to ongoing strength in the labor market.
Housing Starts
Total housing starts rose 5.2% on a month-over-month basis in February, exceeding
expectations. Single-family housing starts grew 7.2% while multi-family starts rose 0.8%.
Housing starts tend to be volatile on a month-to-month basis, but the underlying trend is solid
with total housing starts up 30.9% on a year-over-year basis. Overall, we believe housing
market trends remain healthy.
2
C/" CHANDLER
ASSET
MANAGEMENT
YIELDSTREASURY 1
3 Month 0.20 0.17 0.03
2 Year 0.72 1.05 (0.33)
3 Year 0.85 1.31 (0.46)
5 Year 1.21 1.76 (0.55)
7 Year 1.53 2.09 (0.56)
10 Year 1.77 2.27 (0.50)
30 Year 2.61 3.02 (0.41)
ECONOMIC INDICATOR CURRENT RELEASE PRIOR RELEASE ONE •
Trade Balance (47.1) $Bln FEB 16 (45.9) $Bln JAN 16 (38.6) $Bln FEB 15
GDP 1.4% DEC 15 2.0%SEP 15 2.1%DEC 14
Unemployment Rate 5.0%MAR 16 4.9% FEB 16 5.5% MAR 15
Prime Rate 3.5%MAR 16 3.5% FEB 16 3.25%MAR 15
CRB Index 170.52 MAR 16 163.21 FEB 16 211.86 MAR 15
Oil (West Texas Int.) $38.34 MAR 16 $33.75 FEB 16 $47.60 MAR 15
Consumer Price Index(y/o/y) 1.0% FEB 16 1.4%JAN 15 (0.0)% FEB 15
Producer Price Index(y/o/y) (1.9%) FEB 16 (1.2%)JAN 16 (3.2)% FEB 15
Dollar/EURO 1.14 MAR 16 1.09 FEB 16 1.07 MAR 15
3
C/" CHANDLER
ASSET
MANAGEMENT
Performance Attribution
Long-Term Portfolio
The Long-Term portfolio slightly trailed the performance of the benchmark during the quarter,
generating a return of 1.54% versus 1.56% for the Bank of America 1-5 Year AAA-A US
Corporate and Government Index. Chandler is attributing the slight underperformance of the
portfolio to the underweight in the 2-3 year portion of the curve as the yield compression at the
three year maturity point outperformed the shorter maturity (i.e. less than one year) exposure in
the portfolio. The overall mix of securities, particularly in the Corporate and Agency sectors,
positively contributed to the results. The Corporate exposure continues to focus on up-in-quality
names relative to the benchmark. Corporate spreads were very volatile intra-quarter, hitting the
widest point in February, but recovered in March to end the quarter with a minimal change
compared to year-end valuations. Agency spreads were mostly stable during the quarter, but
the overweight position relative to the benchmark positively added to the results of the portfolio.
The Chandler team purchased a broad mix of securities during the quarter in the Treasury,
Agency, Supranational, Asset Backed, Commercial Paper, and Corporate sector of the market.
Liquid Portfolio
The Liquidity Portfolio outperformed the benchmark during the quarter, generating a return of
0.17%versus 0.07%for the three-month Treasury Bill Index. The portfolio added exposure in
the Treasury, Agency, Supranational, Commercial Paper, and Corporate sectors of the market
to reinvest to upcoming liquidity needs and to counteract the shortening of the portfolio with the
passage of time. Similar to prior quarters the Chandler team continues to focus on positioning
to out-yield the benchmark after taking into account anticipated liquidity events. On a net basis
$68 million was withdrawn from the portfolio during the quarter.
4
OIL CHANDLER
ASSET
MANAGEMENT
Economic Outlook
The overall global economic backdrop remains precarious in Chandler's view. Economic
challenges abroad, particularly in Europe and Japan, are likely to limit the ability of the Federal
Reserve to 'normalize' monetary policy as much as they would like. Negative interest rates in
Europe and Japan will put a ceiling on how high domestic interest rates can move. The
domestic economy looks to be in decent health with non-farm payrolls averaging 209k over the
past three months and the U-3 unemployment rate at 5.0%. Wage inflation has been dormant
but the Chandler team is closely following the U-6 unemployment rate (part-time and marginally
attached workers), most recently at 9.8%, to gauge whether wage inflation will start to exert
some influence on broader inflation metrics. Encouragingly market based measures of inflation
have moved off the lows, but are still at values inconsistent with the Federal Reserve being
'behind the curve' with regards to traditional monetary policy. Chandler maintains the view the
Federal Reserve will be able to increase the Federal Funds target rate two times in 2016, but
the risk is to the downside (i.e. only be able to increase one time).
Oil prices have recently firmed and positively contributed to the improved economic outlook over
the past several weeks. The influence of oil on risk assets will dissipate assuming the volatility
in the commodity market stabilizes. Over an intermediate time horizon we would expect the
lower price of oil to be a positive influence on consumer spending, but to date the impact has
been underwhelming. Even with the recovery in the price of oil the earnings outlook for many
energy companies remains challenging. The Chandler team will continue to focus on
opportunistically adding attractively priced securities to the respective OCSD portfolios. The
spreads on very high quality corporate notes looks expensive currently, and we are likely to
focus on some of the more attractively priced finance names in the coming quarter. Agency,
Supranational, and Asset Backed security valuations also look fair on a risk adjusted basis and
the Chandler team will continue to be opportunistic in altering the exposure of the respective
portfolios.
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Extend the duration of the portfolio when the market is pricing in the possibility of a rate hike
in 2016.
• Opportunistically increase the Corporate allocation in attractively priced securities; continue
to avoid names predisposed to M&A activity and willing to sacrifice balance sheet strength
for the benefit of equity holders.
• Continue to underweight the 1-3 portion of the maturity structure and internal quantitative
models prefer a modest barbell structure relative to benchmarks.
Strategy highlights for the Liquidity Portfolio in coming months:
• Continue to ladder the Agency discount not exposure to correspond with a portion of
upcoming liquidity needs.
• Maintain a dedicated allocation to the US Treasury sector of at least 20.0%.
• After accounting for upcoming liquidity needs focus transactions on return enhancing
opportunities in Corporate notes with a maturity range between six to twelve months.
5
C/" CHANDLER
ASSET
MANAGEMENT
Compliance Issues
Orange County Sanitation District Long Term
OL March 31,2016
COMPLIANCE POLICY
Assets managed by ChandlerAssm Management are in lull compliance wM State lawand win Me investment policy
Category Standard Comment
Treasury issues 5 years maximum maturity Complies'
Supranalonal "AA"or better by t of3 NRSROs; 30%maximum; 5%max 5years maturity, Complies
Males only. lADB BRD and IFC ParCGC
U.S.Agencies 20%max issuer, 5 years maximum maturity Complies
U.S.Corporete(MTNs) "A"or better log tens rating by l of 3 NRSROs; 30%maxim=n;5%max issuer,, 5 Complies'
Were max maturity
Municipal Securities "A"or higher by l of3 NRSROS;10%maximum; 5%max issuer, 5 years maximum Complies"
maturity
Asset Backed/CMOs/ "AA'or better by l of 3 NRSRCs; 'A'or higher issuer rating by l of 3 NRSROs; 20% Complies'
Mo a "acked maximum; 5%maxissumr exdudi MBS/ oeta a :5 ommaxmaWri
Negotiable CDs "A"or batter on its lorg term debt by l of3 NRSROs; "Al/P1"or highest shertwom Complies
mtirgs by l of3 NRSRCs; 30%maximum;5%max issuer; 5years max maturity
CDs/TDS 5%max issuer, 5years max maturity Complies
Banker's Acceptances A-1,or equivalent highest short term rating by l of 3 NRSROS; 40%maximum; 5% Complies
max issuer 180 days max maturity
Commercial Paper A-1,or equealeat by l of3 NRSROS; 'A"or better by l of 3 NRSROs,iflong tens Complies
debt issued' 25%maximum; 5%max issuer, 270 days maxmatuflty
Money Marimt Furl Highestm1Jrgby2of3NRSR0s; 20%maximum;10%maxissmr Complies
Repurchase Agreemends 102%collateralization Complies
Rewme Repumhase 5%maxima,90 days max maturity Complies
A reemens
LAIF Not used by imresbment adMser Complies
rDumlon Not to exceed 60 mon0rs - (80%to 120%of the benchmark) Complies
a.m.Maturity 1Syeare maximum maturity Complies'
'The Inteio has Mnrtyl.n(0I)secuMiea Wth malurtiea grass,then 5 yean indWug me(1)ABS,fire(5)CMOs,elgMaen(18)MBS,ae(1)municipal,one(1)
cwpamere arm one(n treamm, All cecunees=.ere lnMMed from the geroua mare ma M cwnpliel m rime ur pumhmm.
6
C/" CHANDLER
ASSET
MANAGEMENT
C/" Orange County Sanitation District Liquid
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance v th State lawand v th the investment policy
Category Standard Comment
Treasury Issues l year maximum maturity, Minimum allocation of10% Complies
Supranational "AA"orbetterbyl of3NRSROs; 30%maximum; 5%max; 1 Complies
armatui Includesonl . WDB BRD andlFC erCGC
U.S.Agencies 20%max issuer, l year maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs;30%maximum; Complies
5%max issuer; 1 year max maturity
Asset Backed/CMOs "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies
of 3 NRSROs; 20%maxi mum; 5%max issuer; 1 year max
maturity
Negotiable CDs "A"or better on its long term debt by l of 3 NRSROs; "A1/P1"or Complies
highest short term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer;1 year max matudty
CDs/TDS 5%max issuer; 1 year max maturity Complies
Bankers Acceptances A-1,or equivalent short term rating by 1 of NRSROS; 40% Complies
maximum; 5%max issuer,180 days max maturity
Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long tens debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum;10%max issuer Complies
Repurchase Agreements 102%collatemlimtion Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAF Not used by investment adviser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avg Duration Not to exceed 180 days; Max duration of 12 year Complies
Maximum Maturity 1 year maximum maturity Complies
7
C/" CHANDLER
ASSET
MANAGEMENT
C/" OCSD Lehman Exposure
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance wlh State lawand vith the investment policy
Category Standard Comment
Treasury Issues 5 years maximum maturity Complies
Supranational "AA"or better by l of3 NRSROs; 30%maximum; 5%max 5 Complies
ors maturity; Includes only fADB IBRD and IFC per CGC
U.S.Agencies 20%max issuer; 5 years mind un maturtyCom lies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of3 NRSROs; 30%maximum; Complies'
5%max issuer 5 years max matunty
Municipal Securities "A"or higher by 1 of3 NRSROS;10%maximum; 5%max issuer; Complies
5 years maximum maturi
Asset Backed/CMOs/ "Wor better by l of3 NRSROs; "A"or higher issuer rating by l Complies
Mortgage-backed of3NRSROs; 20%maximum; 5%maxissuer(excluding
MBS/ ovtagency);5 ars max maturity
Negotiable CDs "A"or better on its long tenn debt by l of 3 NRSROs; "A11P7"or Complies
highest shod term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer, 5 years max maturity
CDS/TDS 5%max issuer 5 years max maturity Complies
Bankers Acceptances A-1,or equivalent highest shod term rating by l of 3 NRSROS; Complies
40%maximum; 5%max issuer;180 days max maturty
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long ten debt issued; 25%maximum; 5%max
issuer; 270 days max maturity
Money Market Fund Highestmtirg by2 of3 NRSROs; 20%maximum;10%maxissuer Complies
Re umhaseA reements 102%collatemlization Complies
Reeerse Repurchase 5%maximum,90 days max maturity Complies
A mements
LAIF Not used by imvestment almser Com lies
A Duration Notwexceed60monifs - 80%to120%ofthebenchmark Com lies
Maximum Maturity 5years maximum maturity Complies
1111
Account hdde$2 milli.face wlue(cusip 525ESUY6)and$e00,000 face value(cusip 525ES01137)of defeulted Lehman Bros Holdings that were
purchased by tla previous manager. Compiled at time of purchase.
C/" CHANDLER
ASSET
MANAGEMENT
Defaulted Bonds
C/"I OCSD Lshrnm Ex,..,. Holdings Report
Account#1=4 As N3/J1/I6
CO m NNmcx
srvoarvm pen
1 coowcon Uo 12613 C 0000 13 mo% Om Mb 400) NR Om
Ow N@018
R1A.13
mnen Stock f]. .", NIP Y.1L.1] 0➢ON � RN Q%]R,NN1 N0. %RN
RoORPORATE
5]SESCI57 Ymn EMh—NPe.Oe]tl d SO3�00000 o...S 3®,Mi BV ]0�0Se03 @00% NRINR 0En
3.1114 1.1114) NI
535ESC0�8 Le�m.SMM1NeNOA�OeYIbtl ]fW,00000 Cb1.WS 1�183.51t 08 003R 77 SW00 SO NRINR 9N
(i J15, 1➢6) NR
1,®1.RLY0 101,601M O.SS% NRIRR ]lM
;op0us mo x,.m ry PiSim.of UP
mgal.03
PUTALPORUOUO ]~Al. RIP OLO% ry,W]YS.SOI NR FM
9
OIL CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
March 31,2016 vs. December 31,2015
rww
A Ma
row
ww
Ww
taw
Ow
0 mwne R hams
AM M A 4 MR
LNNa 12.0% ]DA% 10.2% 3.5% 39%
1L31H6 138% 5a8% 85% AY% 35%
Orange County Sanitation District Liquid
March 31,2016 vs. December 31,2015
es
eow
auss
ew AM M A M
MA M A G MR
N1118 01.3% 07.6% es% D.0% 18%
ImIn5 W]% 23.1% 85% D.0% DA%
10
C/" CHANDLER
ASSET
MANAGEMENT
OCSD Investment Program
Quarter End Portfolio Value
$600,000,000
•Liquid Opembng Monies
$500,000,000 .Long-Tenn Operding Monies
$400,000,000
$300,000,000
$200,000,000
$100,000,000
pia n m O yo die.
�a70 '7D IF 4 �4 ea17 ec17 10 �a70 �7S �S
HISTORICAL YIELD CURVE
4.00%
MAR 2018
- FEB 2016
3.00% - MAR 2015 ----______________________________________________________
2.61%
2.00% 1.77%
1.53
1.21%
1.00% 0.85%.. -___________________________________________________________
0.72 io
0.38% o
0.20%
0.00%
3
d�oS�o �. h Sh h 0h 0
11
C/" Orange County Sanitation District Liquid Portfolio Summary
Account#10282 As of 3/31/2016
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
01111110 Beg.Values End Values Issuer %Portfolio
Average Duration 0.27 as of 2/29116 as of 3/31/16 Government of United States 40.9%
Average Coupon 0.79% Market Value 63,602,795 63,694,980
Federal Home Loan Bank 16.3%
Average Purchase YTM 0.58% Accrued Interest 146,463 96,802 Drefus Treasury MMKT FD 521 6.6%
Averse Market YTM 0.46% Total Market Value 63,749,258 63,791,781
9 Intl Bank Rewn and Development 3.9%
Average S&P/Moody Rating AA+/Aal Income Earned 30,046 29,721 International Finance Corp 3.9%
Average Final Maturity 0.27 yea COnt/WD 0 Inter-American Dev Bank 3.9%
Average Life 0.22 ym Par 63,552,571 63,639,542 Federal Home Loan Mortgage Corp 3.1 %
Book Value 63,589,896 63,669,279 Bank of Tokyo-MR UFJ 2.0%
I Cost Value 63,666,193 63.704,350 80.6%
• - • • MATURITY DISTRIBUTION
Us 90% AA
Treasury Negotiable (47.6%)
(409%) CD 632%
(1.6%) BO%
us
Corporate
(14 2%) 40%,
Supranati0nal
(na%) 17.4%
Commercial -
Paper p%
(39%) 9.5%
AAA NR
Money Agency
Market (211%) %
fun 0- 25 35-.5 5-1 1-15 15-2 2-2.5 3.5-3 3, A
FI Maturity(Y.) (9.5%)
(66%)
• -
Total Rate of Return Current Latest Year Annualized Since
As of 3/31/2016 Month 3 Months To Date 1 Yr 5 Yrs 10 Yrs 11130/2014 11/3012014
Orange County Sanitation Distinct Liquid 0.07% 0.17% 0.17% 0.33% N/A N/A N/A 0.30% 0.40%
BAML 3-Month US Treasury Bill Index 0.05% 0.07% 0.07% 0.12% N/A N/A N/A 0.10% 0.13%
Chandler Ais A Maregament-CONFIDENTIAL Page 1 ExecNion Time:411=015 8:48:30 PM
C/" Orange County Sanitation District Long Term Portfolio Summary
Account#10268 As of 3/31/2016
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
Average Duration 2.48 * Beg.Values End Values Issuer %Portfolio
as of 2/29116 as of 3131/16 Government of United States 32.9%
Average Coupon 1.52% Market Value 317,107,919 318,646,635
Federal Home Loan Bank 9.6%
Average Purchase YTM 1.40% Accrued Interest 1,059,205 953,775 Federal Home Loan Mortgage Corp 9.4%
Averse Market YTM 1.03% Total Market Value 318,167,124 319,600,409
9 Federal National Mortgage Assoc 9.2%
Average S&P/Moody Rating AA+/Aai Income Earned 348,258 370,713 Toyota ASS 2.6%
Average Final Maturity 2.93 yrs ContIWD 33,184 Honda ASS 2.2%
Average Life 2.58 yrs Par 313,483,926 314,028,687 John Deere ASS 2.0%
Book Value 314,328,024 314,837,249 Bank of Tokyo-MR UFJ 2.0%
I Cost Value 315.237,057 315,880,392 69 9 Y
• - - • • MATURITY DISTRIBUTION
MBS 30% AA
US Treasury 25%
Corporate (32.9%) A83%
Commercial
m% J*BBB
5%)
Paper NR
t5%
Municipal (4 7%)abonal
OorMe (0.7%)
0% A
Money (10.2%)
s]Market
CMO
(1.1%) Agency %
(26.7%)ASS 0-15 ss-s 5-i i-z 2-3 a-a a-s s.
AAA
(7.6%) Maturity(Yrs) (120%)
Total Rate of Return Current Latest Year Annualized Since
As of 3/31/2016 Month 3 Months To Date 1 Yr 5 Yrs 10 Yrs 11130/2014 11/3012014
Orange County Sanitation District Long Tenn 0.44% 1.54% 1.54% 1.58% N/A N/A N/A 1.63% 2.18%
BAML 1-5 Yr US Corporate/Govt Rated AAA-A Index 0.37% 1.56% 1.56% 1.68% N/A N/A N/A 1.74% 2.32%
BAML US 15 Yr US Corp/Govt Rated AAA-BBB Index 0.52% 1.61 % 1.61 % 1.66% N/A N/A N/A 1.72% 2.29%
Chandler Asset MarcgameM-CONFIDENTIAL Pagel Exec wTime:01=0168:45:36PM
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
March 31, 2016
Par Value Book Value Market Value Rate Yield
Balance
March 1,2016 $50,579,886 $50,579,886 $50,579,886 0.51 0.51
Deposits:
3/11/2016 18,300,000 18,300,000 18,300,000 0.51 0.51
Total Deposits 18,300,000 18,300,000 18,300,000 0.51 0.51
Withdrawals:
3/2/2016 (2,100,000) (2,100,000) (2,100,000) 0.51 0.51
3/3/2016 (1,800,000) (1,800,000) (1,800,000) 0.51 0.51
3/7/2016 (2,400,000) (2,400,000) (2,400,000) 0.51 0.51
3/16/2016 (2,200,000) (2,200,000) (2,200,000) 0.51 0.51
3/17/2016 (2,500,000) (2,500,000) (2,500,000) 0.51 0.51
3/24/2016 (3,400,000) (3,400,000) (3,400,000) 0.51 0.51
3/30/2016 (2,100,000) (2,100,000) (2,100,000) 0.51 0.51
Total Withdrawals (16,500,000) (16,500,000) (16,500,000) 0.51 0.51
Balance
March 31,2016 $52,379,886 $52,379,886 $52,379,886 0.51 0.51
251
3 Asset Summary Rep rl GL8
us.
ease Ca�rtnq:
BNY MBLLON by Asset Type with Sectors ABexaile Ba.e Caerea.r:
Exehaoge Rale:
OCS L(Q OR CHANDLER-OCSF%511102 3/31/2016 Stalos:FINAL
Net Unrealized
Cost Market Value %of Gaio/Loss
Description Base Base Total Base
CASH&CASH EQUIVALENTS
US DOLLAR
COMMERCIAL PAPER-DISCOUNT z495.000.000 2149R689.]9 2469,68979 3.87% 000
FEDERALFARMCREDITBANK-IYRORLESS LOI5,000.WJ I,tl/LBIL13 1,071,811.1, 1.68% 0.00
FEDERAL HOME LOAN BANK-I YR OR LESS 10,385,000.m 10,365,131.61 10,365,131.61 1635% 0.00
FEDERAL HOME LOAN MORTGAGES-I YR OR LESS 2,OW,000.WJ 1$90,0om 1,990,W0.00 3.13% 0.00
SHORT TERM INVESTMENT FUNDS(US REGULATED) 6,704p73.360 6,]W4]3.36 6,]Wp]3.36 10.51°6 000
PENDING TRADES 2,4W,93115 8,499,93125 -3.92°/. 0.00
INTEREST 10
,995,18 107,995.18 0.17% 0.00
U.S.DOLLAR 22,639p73360 2R217,209-82 20,219y0982 3L69% 0.00
CASH&CASH EQUIVALENTS 22,639,473,3W 20,217,209.82 20,217,209.82 31.69% 000
FIXED INCOME SECURITIES
U.S.DOLLAR
BANKING&FINANCE "Pee000 6,023,T30 OR 6,02L03000 9.44Y -2,7W00
CAPITAL GOODS LO2O000.WJ I,WT,290W L002]00.00 L57% 4,590.00
CERTIFICATES OF DEPOSIT LO2O000.WJ 999,830.00 LCWaww 1.57% -0.00
FOOD BEVERAGE&TOBACCO LWROoR000 1,0O5p50.W I,004$70.00 1.57% 3,13000
INSURANCE LOWp00.0.0 1,014,1]O.W I,WS,]40.W 1,51% -8,43000
SUPRANATIONAL ISSUES 7"'BRO00O'JO ],5N,125W ],50$]0100 11.77% 4,575.00
US GOVERNMENTS 21,O'JOMO . 26,03RW.23 26,029,590MO 40.81% -9,95023
U.S.DOLLAR 43,500.000,000 43,595.13523 43,502,290.00 6931% -22,84523
FIXED INCOME SECURITIES 43,500,000.00J 43,595,135.23 43,572290.00 68.31% -22,84523
TOTAL ASSETS-BASE: 66,139,473.360 63,812,345.05 63,709,499.82 I0.00% 22,84523
411912016 4:4033PM EDT 1 wo b6 h
Asset Summary Rv,ort 1D: GL8251
eau Ewrreaay: us.
BNY MBLLON by Asset Type with Sectors ABe—le Ba.a Carroa.r:
E.deaoge Rate:
OCS LONG CHANDLER-OCSF97522202 3/31/2016 Stator:FINAL
Net Unrealized
Cost Market Value %of Gaia/6ose
Description OIL- Base Base Total Base
CASH&CASH EQUIVALENTS
US DOLLAR
CASH EQUIVALENTS 69.128,130 Wp 81250 28,7"13 0,01% -]6,W83]
COMMERCIAL PAPER-DISCOUNT 6,3I0,00u. 6,356.26053 6,355,260.53 1.99% 0.00
SHORT TERM INVESTMENT FUNDS WS REGULATED) 7,157,805.120 7,157,805.12 7,157,805.12 2.24% 0.00
CASH -2,W2,133.33 -2,002,133.33 -0.63% 0.00
PENDING TRADES 17.52 17.52 0.00% Pao
INTEREST 990,174.51 970,174.51 0.30% Pao
U.S.DOLLAR 13,595,933250 12,595,93685 12,509,908.48 3.91% -06,02837
CASH&CASH EQUIVALENTS 13,595933,250 12,58593685 12,509,90848 3.91% -76,02837
FIXED INCOME SECURITIES
US DOLLAR
ADS-CAR LOANS 15$57,942.490 15,24190935 15,248.60707 477% 6,6W,72
ABS-CRCDITCARDS 2,500.000000 2,499.121,10 2,501,725,00 0.78% 2,60390
ABS-EQUIPMENT 6,42g000000 6,421,494.09 6,416,134.60 2.01% -5,35949
ABS-HOMEEQUITY 136,999.290 103,130.73 125,5I1.44 0.04% M,44091
SEE-SMALL BUSINESS ADMINISTRATION 91,13RW 91,130.06 98,856.07 0.03% ],]2601
ADS-STUDENT LOANS 41368M 41,200.17 4Q905.51 0.01% -294.66
BANKING&FINANCE 44.570,000,W 45,4r,153.43 43,697,731.50 13.66% -1,799,42193
CAPITAL GOODS 5.OW000'. 5,014,950.W 5,146.WAO 161% 131,850.00
FHLMC MULTICLASS 2,036,343.180 2,22R060.93 2.318A6431 072% 89,70338
FHLMC POOLS 2,583,990 2,520,W 2,672.07 0.00% 151.15
FNMA POOLS 1,923,I67]50 2,015,053.39 2,104,812.21 0.66% 89,758.0
FNMA FORMIC 541,449.040 535,728.74 545,14036 0.17% 9,41162
GNMA MULTI FAMILY POOLS 263,74.9ID 263,771.13 272$W.40 0.09% 8,51917
GNMA REMIC 42,N0,2W 42,440.20 42,670.23 0.01% 23003
HEALTHCARE 4,",000," 4,000,6I5,W 4,W2,N)a00 129% 82,32500
OIL&GAS 9,515,000.0 0 9,478,54000 7,528,93550 235% 50,29550
SUPRANATIONAL ISSUES I5,OA,0000A 15,03L42000 15,021, W.00 4.]W. -9,82000
TAXABLE MUNICIPALS CN0,000000 4307,633.89 4,775,660.0 1.49% 468,026.11
TECHNOLOGY 9.000,000.0)() ],003,4]5.40 ],141,]4RW 2.23% 138,26L60
US,TIPS 10,376,288." 10,259,003.89 10,411,982.43 3.25% 152,rS85
411912016 4:4093PM EDT 2 ee A6b h
Asset Summary R.Oort m: GL8251
sere wrrm.y: us.
BNY MBLLON by Asset Type with Sectors AB—.N Bar.C.rr...r:
E.,ha.,Ral.:
OCS LONG CHANDLER-OCSFO]522202 3/31/2016 Stals:FINAL
Net Unrealized
Cost Market Value %of Gaio/Loss
Description AMIL—now Par Base Base Total Base
US AGENCIES 84,365.000.Mx 84,193,991,40 85,034]6600 26.58% 840,]]4.60
US GOVERNMENTS 93.300,000.W0 93,213,191.73 94,319,829.00 29.49% 1,106,43].27
WHOLE LOAN-CMO-COLLATERALIZED MTG OBLIG 4I9,950ffi0 4]9,M8]4 479,456.57 0.15% 492.17
U S.DOLLAR 305,102,99]]80 305,975,742.29 307,368,55037 96.09% 1,392,80].98
FIXED INCOME SECURITIES 305,102997,780 305,9]5,]4229 307,168,55027 9609% 1,3928Som
TOTAL ASSETS-BASE: 318,698931,030 319,561,679,14 319808,45R05 100.0% 1,31677961
411912016 4:40.23PM EDJ 3 Wo b—h
Asset Summary Restart m: GL8351
Bare wrrm.y: usD
BNY MBLLON by Asset Type with Sectors ABerae Bar.C.rr..er:
E.,ha.,Rale:
ESCROWACCOVA7-OCSH7555502 3/31/2016 Stal.a:FINAL
Net Unrealized
Cost Market Value %of Gaic/ ..
Description Bese Base Total Base
FIXED INCOME SECURITIES
U.S.DOLLAR
US GOVERNMENTS 3,591.000,0<10 3,WX596,33 3,594,00000 HROWG -9,59613
TOTAL ASSETS-BASE: 3,594,000000 3,603,596.33 3,594,000.00 100.00% -9,5%,33
411912016 4:6033PM EDT 4 eeX4b h
Yield Analysis Report ID: RAM234
Base Currency:
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
CASH &.TEMPORARY
Sum o(Acmuut Receivables - 0.00
SUMRECV -2,391,936
AGENCY
2,000,000.00 FEDERAL HOME LN BK CONS DISC N 0.26 Aaa 99.96 1,998,044 9.93 0.15
313384XJ3 MAT 05/27/2016 1,998,044 3.13
985,000.00 FEDERAL HOME LN BKS CONS DISC 0.32 Asa 99.94 982,224 4.88 0.21
313384YFO MAT 06/17/2016 982,224 1.54
2,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.46 Asa 99.92 1,998,040 9.93 0.18
313396XU2 MAT 06/06/2016 1,998,040 3.13
1,400,000.00 FEDERAL HOME LN BK CONS DISC 0.50 Aaa 99.90 1,398,530 6.95 0.28
313384ZG7 MAT 07/12/2016 1,398,530 2.19
CGMMERCLV.PAPER
1,075,000.00 FEDERAL FARM CR BK CONS SYSTEM 0.53 Aaa 99.87 1,071,811 5.33 0.22
313312YJ3 0.000%06/20/2016 DD 06/22/15 1,071,811 1.68
1,200,000.00 TOYOTA MTR CR CP DISC 0.59 0.59 P-1 99.80 1,199,640 5.95 0.33
89233GFP6 06/23/2016 1,197,640 1.88
1,275,000.00 BANK TOKYO-MITSUB DISC 0.70 0.70 P-1 99.77 1,272,050 6.32 0.33
06538BFQ1 06/24/2016 1,272,050 1.99
OTHER
6,704,473.36 DREYFUS TREAS B AGY CSH CSH MG - Ana 6,704,493 33.32 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 6,704,473 10.51
TREASURIES AND AGENCIES 0
411912016 4:03:31PM EDT 1 Source:The Bank fNew York Mellon Communion
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pim<o
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(EOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
2,000,000.00 FEDERAL HOME LN BE CONS DOSC N 0.29 Aaa 99.96 1,998,003 9.93 0.09
313384WM7 MAT 05/06/2016 1,998,003 3.13
4,000,000.00 FEDERAL HOME LN BK CONS DISC 0.60 Asa 99.87 3,988,331 19.82 0.23
313384YN3 MAT 06/24/2016 3,988,331 6.25
Us CASH
1.00 LSD(UNITED STATES DOLLAR) - - 0 0.00 -
NA9123459 GL PAYABLES RECEIVABLES 0 0.00
TOTAL:CASH is TEMPORARY 0.56 0.12 22,609,146 100.00 0.20
20,217,210
FIXED INCOME
BANKS i4 FINANCE
1,000,000.00 GENERAL ELECTRIC CO 0.53 1.50 Al 100.27 1,007,290 2.30 0.28
36962G6Z2 1.500%07/12/2016 DO 07/12/13 1,002,700 1.57
1,000,000.00 BERKSHIRE HATHAWAY INC 0.65 2.19 Aa2 100.57 1,014,170 2.30 0.37
08467013133 2.200%08/15/2016 DO 08/15/11 1,005,740 1.58
1,000,000.00 WELLS FARGO&CO 0.66 1.25 A2 100.18 1,001,870 2.29 0.30
9497413FL9 1.250%07/20/2016 DO 07/29/13 1,001,990 1.57
1,000,000.00 BANK OF NEW FORK MELLON CORP/T 0.90 2.29 Al 100.52 1,008,760 2.30 0.32
06406HBK6 2.300%07/28/2016 DO 07/28/11 1,005,170 L58
1,000,000.00 AMERICAN HONDA FINANCE CORD 0.91 1.12 Al 100.21 1,001,660 2.30 0.51
02665WAB9 1A25%10/07/2016 DO 10/10/13 1,002,130 1.57
1,000,000.00 JOHN DEERE CAPITAL CORP 0.80 1.05 A2 100.13 1,001,070 2.29 0.52
24422ESD2 1.050%10/11/2016 DO 10/11/13 1,001,300 1.57
411912016 4:03:31PM EDT 2 Sourr Ma Bank fNe.York Mei/an Corporaran
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pim<o
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market AQj
Rating Value Duration
1,000,000.00 US BANCORP 0.83 2.18 Al 100.85 1,009,900 2.31 0.61
91159HHB9 2.200%11/15/2016 DD 11/03/11 1,008,460 1,58
1,000,000.00 JPMORGAN CHASE&CO 1.10 1.35 A3 100.22 1,000,470 2.30 0.87
46623EJY6 1.350%02/15/2017 DD 02/18/14 1,002,200 1.57
INDUSTRIALs
1,000,000.00 COCA-COLA CO/THE 0.99 1.79 As3 100.43 1,006,450 2.30 0.42
191216AU4 1.800%09/01/2016 DD 08/10/11 1,004,270 1.57
SUPRABATIORALS
2,500,000.00 INTERNATIONAL DANK FOR RECONST 0.24 1.00 Aaa 100.34 2,506,225 5.75 0.46
459058BS1 1.000%09/15/2016 DO 08/24/11 2,508,600 3.93
2,50Q000.00 INTERNATIONAL FINANCE CORP 0.54 0.50 Ass 100.00 2,498,750 5.73 0.13
45950VCJ3 0.500%05/16/2016 DO 02/22/13 2,499,875 3.92
2,500,000.00 INTER-AMEMCAN DEVELOPMENT BAN 0.60 0.62 Aaa 100.01 2,499,150 5.73 0.45
4581X0CJ5 0.625%09/12/2016 DO 09/12/14 2,500,225 3.92
TREASURIES
14,000,000.00 U S TREASURY NOTE 0.28 0.50 Ass, 100.05 14,001,609 32.08 0.21
912828VG2 0.500%06/15/2016 DD 06/15/13 14,006,300 21.96
4,000,000.00 U S TREASURY NOTE 0.33 1.75 Aso 100.24 4,028,842 9.18 0.17
912828QP8 1.750%05/31/2016 DD 05/31/11 4,009,480 6.29
3,000,000.00 U S TREASURY NOTE 0.36 0.62 Asa 100.08 2,999,541 6.88 0.29
912828VL1 0.625%07/15/2016 DD 07/15/13 3,002,340 4.71
2,000,000.00 U S TREASURY NOTE 0.44 1.00 Ase 100.28 2,005,788 4.59 0.50
912828RJ1 1.000%09/30/2016 DD 09/30/11 2,005,620 3.14
411912016 4:03:31PM EDT 3 Sou¢ Ma BaNc. fNew York Meilan Corporaran
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pim<o
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
3,000,000.00 USTREASURY NOTE OA5 0.89 A. 100.20 3,003,760 6.88 0.46
912828V 7 0.875%09/15/2016 DD 09/15/13 3,005,850 491
YANREB BONDS-CORPS
1,000,000.00 COOPERATIEVECENTRALMSTLC/D 0.45 0.92 Aa2 100.03 999,830 2.29 0.10
21684131V0 0916%05/06/2016DD05/13/14 1,000,260 1.57
TOTAL:FDIED INCOME 0." 0.95 43,595,135 100.00 0.31
43,572,290
TOTAL:Liquid Oper-Pimco 0.47 0.76 66,204,281 100.00 0.28
63,799,500
411912016 4:03:31PM EDT 4 Sou¢ Ma BaNc. fNew York M,Oa Corporaran
Yield Analysis Report ID: RAM234
Base Currency:
BNY MELLON
OCSF07522202 3/31/2016
Long Term Oper-Pimeo
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market AQj
Rating Value Duration
CASH &.TEMPORARY
Sum o(Acmuut Receivables - 0.00
SUMRECV 970,192
COMMERCIN,PAPER
6,370,000.00 BANK TOKYO-MITSUB DISC 0,70 070 P-1 99.77 6,355,261 55.05 0.33
06538BFQ1 06/24/2016 6,355,261 1.99
OTHER
68,128.13 SLH PRONY LONG EXPOSURE - - 104,813 0.25 -
99WAEU30 SLHOPNTA4 28,784 0.01
7,157,805.12 DREYFUS TREAS&AGY CSH CSH MG - Aaa 7,157,805 62.00 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 7,157,805 2.24
Us CASH
1.00 USD(UNITED STATES DOLLAR) - - 0 0.00 -
NA9123459 GL PAYAHLES RECEIVABLES 0 0.00
1.00 US CASH - - 0 -17.34 -
999999USD GL PURE CASH -2,002,133 -0.63
US CASH FUNDS
0.00 BNY MELLON CASH RESERVE 0.43 0.43 - 100.00 0 0.00 0.08
996087094 0.010%12/31/2049 DD 06/26/97 0 0.00
TOTAL:CASH&TEMPORARY 1.01 1.01 13,617,878 300.00 0.23
12,509,908
FIXED INCOME
AGENCIES&OTHER GOVT OBL
411912016 4:03:31PM BUT 5 Source:The Batic. fNew York Megan Communion
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
0CSF07522202 3/31/2016
Long Term.Opar Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
4,000,000.00 FEDERAL NATL MTG ASSN 0.52 1.37 Aaa 100.53 4,044,200 1.30 0.62
3135GOES8 1B75%11/15/2016 DD 10/20/11 4,021,120 1.26
5,000,000.00 FEDERAL HOME LN MTG CORD 0.64 0.50 Aae 99.89 4,991,050 1.62 0.82
3137EADU0 0.500%01/27/2017 DD 01/16/15 4,994,450 1.56
5,000,000.00 FEDERAL HOME LN BK CONS BE, 0.68 1.00 Aae 100.38 5,025,I00 1.63 1.18
313399M4 1.000%06/09/2017 DD 05/10/12 5,018,750 1.57
5,000,000.00 FEDERAL HOME LN MTG CORP 0.92 0.95 Aaa 100.04 4,994,250 1.62 1.28
3137EADV8 0.950%00/14/2017 DD 05/29/15 5,001,800 1.56
5,000,000.00 FEDERAL HOME LN MTG CORP 0.77 0.95 Aaa 99.97 4,967,500 1.62 1.76
3139EADN6 0.950%01/12/2018 DD 11/21/12 4,998,250 1.56
5,000,000.00 FEDERAL HOME LN MTG CORP 0.80 0.87 Aaa 100.15 4,974,100 1.62 1.91
3137EADPI 0.875%03/07/2018 DD 01/17/13 5,007,450 1.57
7,500,000.00 FEDERAL HOME LN BK CONS BE, 0.80 1.36 Aaa 101.10 7,544,850 2.46 1.91
313378A43 1.375%03/09/2018 DD 02/13/12 7,582,350 2.37
5,000,000.00 FEDERAL NATL MTG ASSN 0.89 1.12 Aaa 100.63 4,963,950 1.63 2.65
3135GOG72 1.125%12/14/2018 DO 11/03/15 5,031,350 1.57
7,500,000.00 FEDERAL HOME LN BK CONS BE, 0.93 1.48 Aaa 101.66 7,589,190 2.47 2.89
3133782M2 1.500%03/08/2019 DO 02/06/12 7,624,200 2.38
5,000,000.00 FEDERAL NATL MTG ASSN 1.02 1.71 Aaa 102.48 5,021,500 1.66 3.35
3135GOZG1 1.750%09/12/2019 DO 07/28/14 5,124,050 1.60
7,500,000.00 FEDERAL HOME LN MTG CORP 1.12 1.24 Aaa 100.43 7,399,650 2.44 3.41
3137EADM8 1.250%10/02/2019 DO 10/02/12 7,532,325 2.35
5,000,000.00 FEDERAL NATL MTG ASSN 1.23 1.48 Aaa 101.10 4,955,650 1.64 4.09
3135GOD75 1.500%06/22/2020 DO 04/27/15 5,055,200 1.58
411912016 4:03:31PM EDT 6 Sou¢ Ma DaNc. fNew Pork Meilan Corporation
Yield Analysis Report ID: RAM234
Ease Currency: USD
BNY MELLON
0CSF07522202 3/31/2016
Long Term.Opar Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
5,000,000.00 FEDERAL HOME LN BE CONS BD L25 1.72 A. 102.03 5,008,950 1.65 4.04
313383HU8 1950%06/12/2020 DO 06/03/13 5,101,250 L59
7,500,000.00 FEDERAL NATL MTG ASSN 128 1.49 Aae 101.00 7,370,726 2.46 4.50
3135GOF73 1.500%11/30/2020 DO 10/19/15 7,575,075 2.37
5,365,000.00 FEDERAL HOME LN BK CONS BE, 1.37 1.37 Aaa 100.04 5,343,325 1.74 4.73
3130A7CV5 1.375%02/18/2021 DO 02/18/16 5,367,146 1.68
BANKS&Pm"CE
5,200,000.00 TOYOTA MOTOR CREDIT CORD 0.55 0.91 Aa3 100.05 5,200,000 1.69 0.13
89236TAK1 VARRT 05/17/2016DD05/17/13 5,202,444 1.63
600,000.00 BANK OF AMEMCA NA 1.21 1.04 Al 99.81 600,000 0.19 0.10
06050TLX8 VARRT 05/08/2017DD05/08/14 598,878 OA9
500,000.00 WELLS FARGO BANK NA 1.22 0.90 Aa2 99.61 500,000 0.16 0.20
94988J2L0 VAR RT 06/15/2017 DD 06/12/14 498,070 OA6
5,000,000.00 GENERAL ELECTRIC CO 1.40 2.14 Al 102.94 5,014,950 1.67 3.62
36962G7M0 2.200%01/09/2020 DO 01/09/15 5,146,800 L61
5,000,000.00 JOHN DEERE CAPITAL CORP 1.57 2.25 A2 102.44 5,046,984 1.66 3.33
24422ESS9 2.300%09/16/2019 DO 09/15/14 5,122,200 1.60
2,120,000.00 BANK OF NEW YORK MELLON CORP/T 1.59 2.25 Al 102.39 2,142,175 0.70 3.31
06406HCW7 2.300%09/11/2019 DO 09/11/14 2,170,562 0.68
3,000,000.00 HSBC USA INC 1.72 1.63 A2 99.83 3,003,290 0.97 1.75
40428HPH9 1.625%O1/16/2018 DO 12/20/12 2,994,780 0.94
3,200,000.00 BEAR STEAMS COS LLC/THE 1.82 4.38 A3 106.22 3,523,520 1.10 2.13
073902CD8 4.650%07/02/2018 DO 06/25/03 3,399,136 1.06
411912016 4:03:31PM EDT 7 Sou¢ M,E¢Nc. fNew York Meilan Corporndon
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
600,000.00 GOLDMAN SACHS GROUP INC/THE L84 5.55 A3 109.24 692,806 0.21 1.90
38141GPG4 5950%01/18/2018 DD 01/18/08 643,434 0,20
3,800,000.00 BANK OF AMERICA CORD 1.91 5.41 Baal 106.26 4,334,014 1.31 1.57
060505DP6 5.750%12/01/2017 DD 12/04/07 4,037,956 1.26
2,900,000.00 AMERICAN EXPRESS CO 1.92 6.38 A3 109.69 3,377,386 1.03 1.86
025816AY5 7.000%03/19/2018 DD 03/19/08 3,180,952 0.99
5,000,000.00 WELLS FARGO&CO 2.03 2.54 A2 102.33 5,001,650 1.66 4.09
94994BGM6 2.600%07/22/2020 DD 07/22/15 5,116,400 1.60
2,000,000.00 JPMORGAN CHASE&CO 2.03 2.23 A3 100.99 1,994,880 0.65 3.64
46625HKA7 2.250%01/23/2020 DD 01/23/15 2,015,820 0.63
1,250,000.00 HSBC USA INC 2.62 2.37 A2 98.98 1,222,788 0.40 3.74
40428HPR7 2.350%03/05/2020 DD 03/05/15 1,237,288 0.39
2,800,000.00 MORGAN STANLEY 2.64 4.82 A3 114.12 3,200,848 1.04 4.69
61749WAL3 5.500%07/28/2021 DD 07/28/11 3,195,472 1.00
60g000.00 ESC LEHMAN BRTH HLD ESCROW - - 7.35 368,852 0.01 -
525ESCIB9 0.000%11/24/2013 DD 01/22/08 44,100 0.01
2,000,000.00 LEHMAN BRTH HLD ESC - - 9.35 1,241,321 0.05 -
525ESCOY6 0.000%12/30/2016 DD 10/24/05 147,000 0.05
CARDS
2,500,000.00 CHASE ISSUANCE TRUST A8 AS 0.88 1.01 Aaa I OO.OT 2,499,121 0.81 0.48
161571GC2 1.010%10/15/2018 DD 10/31/13 2,501,725 0.98
CARS
2,584,623.13 TOYOTA AUTO RECEIVABLES 2 A A3 0.93 0.67 Aaa 99.87 2,579,272 0.84 0.29
89231MAC9 0.690%12/15/2017 DD 03/19/14 2,581,211 0.81
411912016 4:03:31PM EDT 8 Sou¢ Ma Bank fNew Pork Mei/an Corpornd.n
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market AQj
Rating Value Duration
2,761,268.83 HONDA AUTO RECEIVABLES 20 1 A3 0.93 0.67 A. 99.88 2,752,856 0.89 0.22
43813JAC9 0.670%11/21/2017 DD 02/27/14 2,758,011 0.86
2,195,000.00 TOYOTA AUTO RECENABLES C A2A 0.97 0.92 Asa 99.98 2,194,824 0.01 0.40
89231TAB6 0.920%02/15/2018 DD 08/26/15 2,194,561 0.69
1,556,850.53 HONDA AUTO RECEIVABLES 202 A3 1.03 0,77 Aaa 99.84 1,555,756 0.50 0.55
43814GAC4 0.990%03/19/2018 DD 05/21/14 1,554,391 0.49
3,595,000.00 TOYOTA AUTO RECENABLES 2 A A3 1.05 1.12 Aaa 100.06 3,594,456 1.17 1.25
89236WAC2 1.120%02/15/2019 DD 03/04/15 3,597,229 1.12
2,565,000.00 HONDA AUTO RECEIVABLES 20 1 A2 1.08 1.01 - 99.93 2,564,744 0.83 1.06
43814NABI 1.010%06/18/2018 DD 02/25/16 2,563,205 0.80
EQUIPMENT LOANS
2,420,000.00 JOHN DEERE OWNER TRUST 20 A A3 0.00 1.36 Asa 99.91 2,419,619 0.98 -
477881AAC4 1.360%04/15/2020 DO 03/02/16 2,417,895 O.76
4,000,000.00 JOHN DEERE OWNER TRUST 20 B A3 1.15 1.09 Aas 99.96 4,001,875 1.30 0.51
477877AD6 1.070%11/15/2018 DO 09/03/14 3,998,240 1.25
FAHIHB MAB REMIC
114,603.69 FNMA GTD REMIC P/TOT-114 A6 -19.69 0.40 Aaa 99.56 109,017 0.04 0.15
31396X Q5 VAR RT 10/27/2037 DO 11/30/07 114,095 0.04
426,845.35 FNMA GTD REMIC P/T 11-3 FA 0.85 1.10 Aaa 100.98 426,712 0.14 0.08
31397QRE0 VAR RT 02/25/2041 DO 01/25/11 431,046 0.13
FHLMC
2,583.88 FHLMC POOL#78-6064 1.60 2.69 Ase 103.41 2,521 0.00 0.80
31348SWZ3 VAR RT 01/01/2028 DD 12/01/97 2,672 0.00
FHMA
411912016 4:03:31PM EDT 9 Sou¢ Ma BaNc. fNew York M,Fa Corporndon
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Opar Pimco
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
365,404.85 FNMA POOL#0466397 L63 3.17 Aaa 109.30 357,497 0.13 4.10
31381PDA3 3.400%11/01/2020DD 11/01/10 392,061 0,12
38,824.01 FNMA PO01,#0826080 1.66 4.52 Aae 110.68 41,936 0.01 1.90
31407BXN7 5.000%07/01/2035 DD 06/01/05 42,971 0.01
186,487.90 FNMA POOL#0823358 1.67 2.66 Aae 104.92 185,031 0.06 0.83
31406X 5 VAR RT 02/01/2035DD04/01/05 195,298 0.06
6,021.14 FNMA POOL#0748678 1.81 4.50 Aaa 111.15 6,473 0.00 2.28
31403GXF4 5.000%10/01/2033 DD 10/01/03 6,692 0.00
208,793.70 FNMA POOL#0745580 1.85 4.51 Aaa 110.81 224,453 0.08 2.11
31403WZ3 5.000%06/01/2036 DD 05/01/06 231,358 0.09
217,383.39 FNMA POOL#0357969 1.86 4.52 Aaa 110.55 233,687 0.08 1.97
31376XT22 5.000%09/01/2035 DD 09/01/05 240,322 0.08
420,542.62 FNMA POOL#0888336 1.90 4.51 Aaa 110.87 452,083 0.15 2.27
3141OF4V4 5.000%07/01/2036 DD 04/01/07 466,239 0.15
388,026.33 FNMA POOL#0815971 L92 4.51 Aaa 110.86 417,128 0.14 2.17
31406POY8 5.000%03/01/2035 DD 03/01/05 430,178 0.13
23,539.18 FNMA POOL N0AL0869 L98 4.14 Aaa 108.74 24,895 0.01 2.85
3138EG6F6 4.500%06/01/2029 DD 09/01/11 25,596 0.01
36,618.92 FNMA POOL dOMA0022 2.01 4.14 Aaa 108.74 38,728 0.01 2.94
3141 YYAY3 4.500%04/01/2029 DD 03/01/O9 39,818 0.01
31,525.71 FNMA POOL#0257179 2.03 4.14 Aaa 108.94 33,342 0.01 3.18
31371NUC7 4.500%04/01/2028 DD 03/01/08 34,280 0.01
FREDDIE MAC MULTICLABS
411912016 4:03:31PM EDT 10 Sou¢ Ma DaNc. fNew York Meilan Corporndon
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market AQj
Rating Value Duration
61,958.55 FHLMC MULTICLASS MTG E3 A 0.94 2.92 Aaa 102.84 62,023 0.02 0.67
3133ME95 VAR RT 08/15/2032 DD 12/01/97 63,718 0,02
900,000.00 FHLMC M=CLASS MTG X006 A2 1.50 3.88 NR 109.61 95I,047 0.32 3.43
31398VJ98 4.251%01/25/2020 DD 04/01/10 986,445 0.31
1,074,384.63 FHLMC M=CLASS MTG 58 2A 2.48 5.50 Aaa 118.08 1,215,991 0.41 1.91
31394JY35 6.500%09/25/2043 DD 09/01/03 1,268,601 0.40
ORMA
97,839.72 GNMA II POOL a0080965 0.96 2.05 Aaa 104.10 97,779 0.03 0.49
36225DCB8 VARRT 09/20/2034DD09/01/04 101,853 0.03
27,964.89 GNMA II POOL a0080023 1.14 2.05 Aaa 103.79 28,428 0.01 0.81
36225CA 9 VAR RT 12/20/2026 DO 12/01/96 29,026 0.01
31,925.32 GNMA II POOL s080088M L40 2.09 Aaa 102.79 32,624 0.01 0.39
36225CC20 VAR RT 06/20/2027 DO 06/01/97 32,819 0.01
11,326.19 GNMA II POOL s0080395 L49 2.08 Aaa 102.61 11,224 0.00 1.12
36225CNM4 VAR RT 04/20/2030DD04/01/00 11,621 0A0
94,678.85 GNMA II POOL 4080408X 1.54 2.08 Ama 102.42 93,719 0.03 0.44
36225CN28 VAR RT 05/20/2030DD05/01/00 96,973 0A3
ORMA REMIC
42,440.20 GNMA GM REMIC P/T 00-9 FH 0.57 0.94 Aaa 100.54 42,440 0.01 0.06
383TH4NX9 VAR RT 02/16/2030 42,690 0.01
HOME EQUITY
3,056.00 SOUNDVIEW HOME LOAN TR OPT3 A4 1.14 0.74 - 99.95 2,698 0.00 0.00
83611MOSI VARRT 1 1/2 51203 5DD09/30105 3,055 0.00
411912016 4:03:31PM EDT 11 Sou¢ Ma HaNc. fNew York Meilan Corporndon
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(EOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
133,743.29 AMRESCO RESIDENTIAL,SECURI 1 A L90 1.03 - 91.61 100,433 0.04 0.00
03215PFN4 VAR RT 06/25/2029 DO 10/20/99 122,517 0A4
INDUSTRIALS
2,000,000.00 INTEL CORP 0.87 1.34 Al 100.81 2,008,280 0.65 1.68
458140AL4 1.350E 12/15/2017 DD 12/11/12 2,016,240 0.63
4,000,000.00 ELI LILLY&CO 1.16 1.91 A2 102.30 4,009,675 1.33 2.89
532457BF4 1.950%03/15/2019 DD 02/25/14 4,092,000 128
4,000,000.00 CHEVRON CORP 1.21 1.11 Asl 99.83 3,977,200 1.30 1.65
166764AA8 1.104E 12/05/2017 DD 12/05/12 3,993,080 1.25
4,000,000.00 AMERICAN HONDA FINANCE CORD 1.54 2.20 Al 102.33 4,046,640 1.33 3.24
02665WAH4 2.250E 08/15/2019 DD 09/09/14 4,093,240 1.28
5,000,000.00 QUALCOMM INC 1.62 2.19 Al 102.51 4,995,195 1.66 3.93
747525MS 2.250E 05/20/2020 DO 05/20/15 5,125,500 1.60
2,000,000.00 OCCIDENTAL PETROLEUM CORP 1.66 1.50 A3 99.70 1,986,340 0.65 1.84
674599CD5 1.500E 02/15/2018 DO 06/22/12 1,993,940 0.62
1,515,000.00 ER ON MOBIL CORD 1.84 2.18 Ase 101.77 1,515,000 0.50 4.67
30231GAV4 2.222E 03/01/2021 DO 03/03/16 1,541,816 0A8
OTHER CMO GOVT AGENCIES
91,130.06 SBA GTD PARTN CTFS 2001-20C 1 1.32 5.84 Aas 108.48 91,130 0.03 1.66
83162CWO 6.340%03/01/2021 98,856 0.03
479,950.92 NCUA GUARANTEED NOTES TR R2 lA 1.64 1.27 Asa 99.90 479,949 0.16 0.02
62888UAA8 VAR RT 11/06/2017 DO 11/17/10 479,457 0.15
STUD&ET
411912016 4:03:31PM EDT 12 Sou¢ Ma DaNc. fNew York Meilan Corporation
Yield Analysis Report ID: RAM234
Ease Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
41,368,00 SLM STUDENT LOAN TRUST 200 9 A 284 2.14 Aaa 98.88 41,200 0.01 0.05
78445JAA5 VAR RT 04/25/2023DD08/28/08 40,906 0,01
SUPRANATIONALS
5,000,000.00 INTERNATIONAL FINANCE CORP 0.77 1.00 Aaa 100.25 5,020,700 1.63 1.05
45950IMS8 1.000%04/24/2017 DD 04/24/12 5,012,350 1.57
5,000,000.00 INTER-AMEMCAN DEVELOPMENT BAN 0.86 1.00 Aaa 100.18 5,019,550 1.62 1.27
4581XOCG1 1.000%07/14/2017 DD 04/30/14 5,009,000 1.59
5,000,000.00 INTERNATIONAL BANK FOR RECONST 1.00 1.00 Aaa 100.01 4,991,170 1.62 2.17
459058EJ8 1 M00%06/15/20 18 DD 04/30/15 5,000,250 1.56
TIPS
0.00 US TREAS-CPI INFLAT 122 1.05 Asa 106.89 0 0.00 3.00
912828PP9 1.125%01/15/2021 DD 0 1/15/11 0 0.00
10,376,288.00 US TREAS-CPI MFLAT 1.92 0.12 Aaa 100.34 10,259,004 3.38 5.34
912828WU0 0.125%07/15/2024 DD 07/15/14 10,411,982 3.26
TREASURIES
3,500,000.00 U S TREASURY NOTE 0.10 0.31 Aeo 100.00 3,500,340 1.14 0.00
91282SD31 VAR RT 04/30/2016DD04/30/14 3,500,105 1.09
10,000,000.00 U S TREASURY NOTE 0.38 0.50 Aaa 100.05 9,998,047 3.24 0.42
912828D64 0.500%08/31/2016 DD 08/31/14 10,004,900 3.13
11,000,000.00 U S TREASURY NOTE 0.51 0.50 Aaa 100.00 10,974,972 3.57 0.66
912828046 0.500%11/30/2016 DD 11/30/14 10,999,560 3.44
7,500,000.00 U S TREASURY NOTE 0.65 0.87 Aaa 100.24 7,500,611 2.44 1.07
912828SSO 0.875%04/30/2017 DD 04/30/12 7,517,850 2.35
411912016 4:03:31PM EDT 13 Sou¢e:The BaNc. fNew York Meilan Corporation
Yield Analysis Report ID: RAM234
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Opar Pimco
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
10,000,000.00 U S TREASURY NOTE 0.52 0.89 A. 100.25 9,948,784 3.25 1.61
91282SG20 0.875%11/15/2017 DO 11/15/14 10,025,000 3.13
11,00Q000.00 U S TREASURY NOTE 0.85 1.47 Ann 101.81 11,042,439 3.63 2.77
91282SB33 1.500%01/31/2019 DO 01/31/14 11,198,990 3.50
10,000,000.00 U S TREASURY NOTE 0.93 1.59 Aaa 102.23 9,984,307 3.32 3.16
912828W55 1.625%06/30/2019 DO 06/30/14 10,223,100 3.20
10,000,000.00 U S TREASURY NOTE 0.96 1.59 Asa 102.19 10,024,779 3.31 3.25
912828WW6 1.625%07/31/2019 DO 07/31/14 10,218,800 3.19
5,800,000.00 U S TREASURY NOTE 0.99 1.91 Ass 102.60 5,873,187 1.93 3.41
912828F39 1.950%09/30/2019 DO 09/30/14 5,950,684 1.86
7,500,000.00 U S TREASURY NOTE 1.03 1.48 Ass 101.68 7,449,635 2.47 3.56
912828061 1.500%11/30/2019 DO 11/30/14 7,626,000 2.38
5,500,000.00 U S TREASURY NOTE 1.19 1.36 Aae 100.80 5,424,667 1.80 4.43
9128281,99 1.375%10/31/2020 DO 10/31/15 5,544,055 1.73
1,500,000.00 U S TREASURY NOTE 122 1.37 Ase 100.72 1,491,626 0.49 4.69
912828N89 1.375%01/31/2021 DO 0 1/31/16 1,510,785 0.47
US TAXABLE MUM BONDS
2,440,000.00 PORT AUTH OF NEW YORK&NEW JE 1.31 4.65 Aa3 114.28 2,507,634 0.90 3.34
73358WAG9 &309%12/01/2019 DO 07/01/09 2,788,310 0.87
1,400,000.00 NEW YORK CITY NY TRANSITIONAL 1.90 3.92 Ael 109.50 1,400,000 0.50 4.16
64991M5E8 4.095%11/01/2020 DO 11/03/10 1,533,014 0.48
400,000.00 UNIV OF CAUFORNIA CA ROTS MED 2.21 4.43 As3 113.58 400,000 0.15 4.52
913366EJ5 5.035%05/15/2021 DO 11/18/10 454,336 0.14
411912016 4:03:31PM EDT 14 Sou¢e:TAe DaNc. fNew York Meilan Corporndon
Yield Analysis Report ID: RAM234
Ease Currency: USD
BNY MELLON
OCSF07522202 3/31/2016
Long Term.Oper-Pimco
Units Held YTM/ Current Moody's Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
TOTAL:FIRED INCOME 1.07 1.53 305,975,742 100.00 2.44
307,368,550
TOTAL:Long Term Oper-None. 1.07 1.52 319,593,620 100.00 2.36
319,878,459
411912016 4:03:31PM EDT 15 Source:The BaNc. fNew York M tba C.r radon
Yield Analysis Report ID: NAM234
Base currency:
BNY MELLON
OCSF07555502 3/31/2016
O.C.S.Escrow Account
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
CASH &.TEMPORARY
Sum o(Acmunt Receivables - 0.00
SUMRECV 0
TOTAL:CASH 3:TEMPORARY 0.00 0.00 300.00
0
FIXED INCOME
TREASURIES
3,594,000.00 U S TREASURY NOTE - Ane 3,603,596 100.00 -
912828SK7 0.375h03/15/2015DD03/15/12 3,594,000 100.00
TOTAL:FIXED INCOME 0.00 0.00 3,603,596 100.00
3,594,000
TOTAL:O.C.S.Escrow Account 0.00 0.00 3,603,596 100.00
3,594,000
411912016 4:03:31PM EDT 16 Source:Ma DaNc.of New York Mei m Communion
�01 Asset Detail
BNY MELLON Acct Base Currency Code: LISD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
Mellon Security11 Local Unrealized Net Unrealized
ID Security Description Shares/Par Base Price Base Cost Base Market Value Percent of Total GainlLoss Gain/Loss Base
Grand Total 385,977,620.52 307,261,958.57 100.00 1,284,338.05
CASH&CASH EQUIVALENTS 32,803,146.67 32,727,118.30 8.45 -76,028.37
U.S.DOLLAR 32,803,146.67 32,727,118.30 8.45 -76,028.37 -76,028.37
56538BF01 BANK TO(YO-MITSUB DISC O&2412016 6,3]0000.OD) 99.]]I 6,311.26111 6,111,26111 1T 000 000
W530BPo1 BANK TOKYOUMITSUS DISC DW4O016 L W 2]5,000.D 99.]]T 12]2L4D 7D 1292,049]9 033 0. 0OS
31331VM FEDERAL FARM CR BK CONS SYSTEM OOW%36I20p0.. 1,075,0000W 9810 109191113 1,07101113 028 000 000
313304WM7 FEDERALHOMELNBKCONSDOSCNMATOfi 2016 2000,000.00) 99,90 1,998003.OD 1,998,003.05 _0.62 000 000
4X 31338J3 FEDERAL HOME LN BK CONS DISC N MAT 0&27@016 2,000,000.000 98.90 1,996,M3 W.50 1,898,543. 0.62 000 000
3133MWO FEDERAL HOME LN BKS CONS DISC MAT DWI712016 985,000.000 99.72 982.22394 91 0.25 000 0.00
313384YN3 FEDERAL HOME LN BK CONS DISC MAT 06RM2016 4,000.000.O0 9811 3,988,331.11 3,988,331,11 1.03 0,00 000
313384ZG7 FEDERAL HOME LN BK CONS DISC MAT 071IM016 1,400,0005W 99,90 1,399.5 00 1,398,530 SO 036 000 000
3133PI FEDERAL HOME LN BUD CORP DISC MAT 06NSOM16 2,0000000W 9990 1998,C40 D0 1996,040W 052 0Or 000
69233GFP6 TOYOTA MTR OR CP DISC O61=2016 1,20D,DOO OLD 9960 11W,610 00 1197,64600 031 000 00D
996065247 DREYFUS TREAS&AGY CSH CSH MG VAR FIT 12G1120.. 7,15I,8051. 10000 /,157,80512 ],157,80512 1as 000 DOD
"6080247 DREYFUSTREAS&AGYCSH CSH MGVAR RTIVOLIG0.. 6,]04,4]3J6D 100.00 6,I04,473.36 6,]04,4]3.35 _1.73 0.00 Dw
NWAEU30 SOP PROXY LONG EXPOSURE SLHOPNTAA 68,12&130 042 1M,812.50 28,781.13 0.01 76.02837 76.028.37
CASH OOW 1.00 -2.002,133.33 -2,002.133.33 -0.52 O.W 000
RECEIVABLE FOR INVESTMENTS SOLD DOW 1.00 17.52 17.52 O.W OW 000
INTEREST RECEIVABLE OOW 1.00 _107.995.18 107M 18 003 OW 000
INTEREST RECEIVABLE 01. 1Or RTOJ74.51 970,174.51 025 0Do DOD
PAYABLE FOR INVESTMENTS PURCHASED 01. 100 -2,4R%.125 -2,499,W125 -065 OW OW
FIXED INCOME SECURITIES 353,174,473.85 354,534,840.27 91.55 1,360,366.42
U.S.DOLLAR 353,174,473.85 354,534,840.27 91.55 1,360,366.42 1,360,366.42
025816AY5 AMERICAN EXPRESS CO 7,000%03I192518 DID 03I1VO8 2,900,00000 109.69 3,377.385]9 3,180.952.00 0.82 196,43319 196,433.79
02665WAB7 AMERICAN HONDA FINANCE CORP 1 125%1 010 712 016. 1,000,0005W 100,21 1'OOFNOOO 1,002.130.W 026 47O00 47000
0M65WAH4 AMERICAN HONDA FINANCE CORP 2250%0811512019. 4,WO,OOO OCO 102 DO 40W,F43 D0 4,093,240W 1ON 46,600.US 4660000
03215PFN4 AMRESCO RESIDENTIAL SECURI I A VAR RT O612L202_ IM,74329D 9161 10Y1,43285 12251666 0. 22,004.W 12064.03
061 BANK OF AMERICA CORP 5.750%IMI2017 D012I04I07 3,800,000000 10626 4,334,01000 4,13],956.0] 1.04 -296058.W -296058.OF
06050TL%8 BANK OF AMERICA NA VAR FIT 0MM017 Do OW08114 600,0000W 98.81 6W,W000 598,8TS.W 0.Is 1,122.00 -1.122.00
56406HBX6 BANK OF NEW YORK MELLON CORPR 2.300%072&20.. 1,000,0OOXOO 100.52 1,008,]6000 1,005,PO.1 0.26 -Sssom -3,590.00
W408HCW] BANK OF NEW YORK MELLON GORPR 2.300%O lWO.. 2,120,000OW 102.39 2.142.175.20 _ 2,1ID.582.W 0.58 28,386.W 28.3868D
W38@WB BEAR S7E4RNB COS LLC/]HE 4.850%WN220180D 08.. 3,200,000OW 108.22 3.523.52000 3.399.136.W ON -124,384.00 -024,384.00
084670053 BERKSHIRE HATHAWAY INC 2200T,DWI 2016 DD 5&L, 1,000,0005W 100,57 15147O 00 1,005,740.SO 0.26 d.430.SO -6,430 D0
161571GC2 CHASE ISSUANCE TRUST A6 AS 1010%1011512018 DD., 2500,OOO O. 10007 24AF12110 2501,725SO 065 2.603W CE039D
HSI64AA6 CHEVRON CORP 1104%12J09207 OO 12 12 4,0000000. 9963 3,9n,2000D IW9 ,060SO, 1.03 16'asaLm 15,66000
191216AU4 COCA COLA CO?HE 1.800%O91012016 DD CAMOM 1 1,000,OOOO. 10043 1,001.D0 1,01 0.26 -21SO.W -2180 DO
21884BFV0 COOPERATIEVE CENTRAL INSTL CID 0]16%O&WR01- 1,000,0000W 100.03 SGS3000 1,000260.00 0.26 430.00 43000
24422ESD2 JOHN DEERE CAPITAL CORP ISM%101112016 D0101.. 1,000,0000W 100.13 1.001,070.00 1,001,300.00 0.28 230.00 23000
24422ESS9 JOHN DEERE CAPITAL CORP 2.300%0911 M019 D0091.. 5,000,OOOOW 10244 5.048.98400 5.12220100 1.32 75,216.00 75.21600
30231GAV4 EXXON MOBIL CORP2222%031012021 D003103116 1,515,0005W 101]] 1,515,000.DO 1,541.81550 040 26,815 SO 26,81550
3130A7CVS FEDERAL HOME LN BK CONS BD ISI ODA W2021 DD- 5.365,000 OW 100D4 5,343,32540 5,367.146.00 1.39 23,820W 23,82060
3133782M2 FEDERAL HOME LN BK CONS No 1500%0MW2019 DO.. ],SOD OOO OCO UUA. I,URL1900D 7,624,203.W 197 361010. JBL1O00
313378443 FEDERAL HOME LN BK CONS BD L375%0MW2018 DD- 7,5000OOOW 101,10 7,64485000 7,582D.00 1.96 37SOS0 J7,W000
3133]9FW4 FEDERAL HOME LN BK CONS BD 1 000%OW912017 DO- 6,000,OOOOW 100,38 5,025,10000 5018,750.00 1.30 T,350.0 -635000
Food TivAN :TI Ap 19 W1612:53:05 FM
Page 1 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: I
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
Mellon Securityin Local unmerited Net Unreali2eE
ID Security Description Shares/Par Base Price Base Cosl Base Market Value Percent of Total GainlLoss Gain/Loss Base
31338311W FEDERAL HOME LN BR CONS BD 1160%OWID2020 D0_ 5000000000 TOG ON 5,006.95000 5101,250.00 132 9230000 9230000
3133TCE95 FHLMC MULTICLASB INTO E3 A VAR AT WI W2032 D0.. 61,950.550 102.84 62,023.35 63j18.17 _0.02 1,69482 1694.32
3134&4WZ3 FHLMC POOL III VAR RT 01/01GO28 DD 12/0197 2,583080 10341 2,52092 2,67207 _0.00 161.15 151.15
3135GOD75 FEDERAL NATL MTG ASSN 1,500%OSG=20 DD W/P/., 5,000,000,00 10110 4.955,65000 51055,20GW 1.31 99.55090 W.55000
3135GOES8 FEDERAL NATL INTO ASSN 1.375%111152016 DD 1W O1, 4.000 000OW 100.531 044.20000 4.021.120.W�.M 23.080.00 -23,080.00
3135GOF73 FEDERAL NATL MTG ASSN 1,500%11GQT020 DO 1W19/_ 7,500,000 OW 101,00 7,370.72600 ],5]5.07500 193 204,349 GO 2W,34900
3135GOG72 FEDERAL NATL MTG ASSN 1125%1&14Y2018 DD 11ADW, SPOSOL-0W 10063 4,963.95000 5.031.350.00 1.30 67.400.00 61.40000
U35GCG1 FEDERAL NATL MTG ASSN 1,750%O9H2/TI19 DO 07OW 50000000W 10248 5A21,50 0' 5,124,05100 132 103550W RGEDO00
313]1NUC] FNMA POOLM025I1]94.500%04N1M028DDO3101108 31,525710 108.74 33,.1.53 34,2a0.11 0.01 930.60 93658
31376KT22 FNMA POOL W3579695.000%OWHGO35 Do 09101100 21],383390 110.56 233,687.15 240,n1.69 ON 6,634.54 6,634.54
3137EADMS FEDERAL HOME LN MTG CORP 1250%1MV2019 Do 1.. 7,500,0000W 10043 7,399,650.00 7,532,32&00 1.0 132,6I5.00 132,67500
3137EADN6 FEDERAL HOME LN MTG CORP 0.750%0111=018 DD 1.. 5,00000000 99.97 4.967,W000 4.998,25D.00 1.29 30.75090 30,]50.00
3137E4DP1 FEDERAL HOME LN MTG CORP 0,875%OLW/2018 DD 0., 5,000 ODODW 100,15 4.974.100.00 5.007.450.00 1.29 33.350.0) 33.35000
3137EADU0 FEDERAL HOME LN MTG CORP 0,500%01/2]1201]DD 0- 5,000,0000W 99,89 4,991,05000 4.994.950.W 1.29 3,400.W 3,40000
3137EADV8 FEDERAL HOME LN MTG CORP 0.750%07/141017 DO G. 5,000,0000W 100.04 4,94,250.00 5,001,800.00 1.29 7,550.00 7,553.3
31381PDA3 FNMA POOL MM663973400%11AUGO20 Do 11101110 3654046W 107.30 357,497,27 392,061.13 0.10 34,56386 34,%386
3130EG6F6 FNMA POOLMOPL08694.500%0101/MI290DOPAI 23GETE0 108.74 24,895.00 25,596.80 GOT 700.80 10080
31394N35 FHLMC MULTIOLA88 MTG 58 2A6.WO%ORUSQ043 DD.. 1,074 384 630 118.08 1,215,99070 1,268,601.14 0.33 62,610.44 5261044
31396MQ5 FNMA GTD REMIC P?07-114 A6 VAR RT 1OO7SO37DD.. 114,603.690 99.56 100,016.]] 114,091 093 6,078.08 5,07808
31397OREO FNMA GTD REMIC PR 113 FAVAR RT 0212SQ041 DD 0- 426,8453W 100.98 426,]119] 431.045.51 0.11 4.333.54 4,333.54
31398VJ98 FHLMC MULTICLASS MTG KOOSA2 4.251%O1aSQO2O D.. 900,00000 109,61 951.M8.88 981 0.25 35.398.12 35.398,12
31403DJa FNMA POOL 1115000%SWOU 036 Do 05101106 208]91]0 110,81 224.45323 231.358.04 ON 8904.61 6,9P4.81
31401 FNMA POOL W748678 SO(Q%10/012W3 DD 10101103 6,021140 111.15 6.472.73 6,692.32 O.W 219.59 21959
31406PQYB FNMA POOL 1116 W01 03N12W5 Do 03101105 388026 DOD 11086 417,128,31 430,1n,63 0.11 13M932 13,W932
31401 FNMA POOL 1*823358 VAR RT 02/012035 Do 0"1105 186,4879W 104.72 185,030.97 19529].59 0.06 10,266.62 1026662
31407BXH7 FNMA POOL 406260605.001071012035 Do 06101105 38,824010 _11068 41,73580 42,870.80 0.01 1,235.00 123500
3141OF4V4 FNMA POOL p08883365.0(0%07N1Y2036 DO M101107 420,542.620 110.87 452.083.32 466,238]8 0.12 14,155.46 14,15546
31417YAY3 FNMA POOL WMA00224.50D%0901R029 Do 03101109 36,618920 108.74 W.72808 39.818.32 0.01 1.090.24 1.0024
361 GNMA II POOL IXDO80023 VAR RT 12RW2026 DD 1VD156 27984890 103.79 28.428.0 29.025.SO 0.01 597.54 59Z54
36225CC20 GNMAIIPOOLBO800e6MVARRT O&20202]DOO6I0119] 31,925320 102]9 32.62369 32.81731 001 19382 19362
WG6CN28 GNMA II POOL AI VAR RT 052000300005I01I00 946]68W 10242 93.]1]28 98W292 0.03 3,2Ya.84 3,25564
36225CNM4 GNMA II POOL W080395 VAR RT 04/20/2030 DO MN1/00 113261. 10261 11223.52 11,621,46 O W 39794 397 91
36225DCB8 GNMA II POOL WOMBS VAR RT 01 DD 07N1N4 97839i20 104d0 97,7M 58 101,853.11 GOD 4,074.53 4,W4.53
W962GM GENERAL ELECTRIC CO 1.500%07/122016 DD 07112113 1,000,OOOOW 10027 1,007,29000 1,002,IW.03 0.so -0,590.W 1590.D0
36962G]MO GENERAL ELECTRIC CO 2.200%01/G&2020 DD 01XWIS 5,000,OOOOW 102.94 5,014,95000 5.'Es
W 1.33 131,850.W 131.95000
W141GFG4 GOLDMAN SACHS GROUP INC?HE 5.950%0111&2018.. 600,000,00 107.24 692.806.00 643.434.00 0.17 49,3720 49,372.00
3837114NX9 GNMA STU REMIC PR OD-9 EH VAR RT 0211 W2030 42,4402W 100.54 42.44020 42,67023 0.01 230.03 23003
4M281PH9 HSBC USA INC 1625%01116GOUS DO 12120112 3,000,0000W 99.83 3,003290.Or 2994,]8000 07 E,510W -051000
40428HPR7 HSBC USA INC 2350%0310512020 DO ONOO15 1,2500000W IWAN 1,222j8750 123128750 0.. 14,SW.W 1450000
4381MACO HONDA AUTO RECEIVABLES 201 A30670%1121201 7_ 2j612668M 9988 2,752,85560 2758,01053 071 5154.93 5,1Fi1.93
43814GAC4 HONDA AUTO RECEIVABLES 202 A30.770%ON192018.. 1,556,850530 99.M 1,555,]5588 _ 1,55439071 Gar,i 1,365.1, 4.36617
43814MBI HONDAAUTO RECEIVABLES 201 A21.010%O61182M8- 2,566,000OW 99.93 2,664,74376 2,563,204.50 ON -1,53926 -1539.26
4581 O INTEL CORP 1.350%12AS2017 DD 1011/12 2,000.00000 100,81 2.008180.00 2,016.240.00 0.1 ],9W.W _ 1.11,11
4581XOCG1 INTER-PMERICAN DEVELOPMENT BAN LWO%111M20.. 5,00000O00 100,18 5.019.550.DO 5.0W.OW.00 1.29 10.550.00 -10,550.00
4581XOUS INTER-AMERICAN DEVELOPMEM BAN 0.825%0&12110.. 2.5000000W 10001 2.4W.15000 2.5W.225W 0.85 1.0]SW 1.07500
Re fit TlrtasdmP,1.Ap 19.1.I1ADI05 PM
Page 2 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: USD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
Mellon Security Local Unrealized Net Unrealized
ID Security Description Shares/Par Base Price Base Cosl Base Market Value Percent of Total GainlLoss Gun/Loss Base
4WOPFBS1 INTERNATIONAL BANK FOR RECONST TWO%N11WO 21S00,000000 1N 14 2,W6,22500 2,6OBSW.00 0AS 2,37500 237500
459050EJ8 INTERNATIONAL BANK FOR RECONST 1.030%0615@0.. 5,000,0000W 10001 4,991,17000 5,000,260.03 1.. 9000.00 DOW DO
4595OKBS8 INTERNATIONAL FINANCE CORP 1.000%04124I2017 DD.. 5,000,OOOOW 100.25 5,020,700.00 5,012,350.03 1.29 E,350.OD -635000
45950VCJ3 INTERNATIONAL FINANCE CORP 0.500%ON18I2016 DD.. 2,500.00000 100.DO 2A98,75000 2p99,875.00 am 1,125.00 1.125,00
46623EJY6 JPMORGAN CHASE&CO 1350%0211512017 DD 02118114 1,000,000,00 100.22 1.00.470.00 1.002.2W.W 0.28 _1.730.00 1.T3000
46825HIKA] JPMORGAN CHASE&CO 2250%011231202a DD 01123115 2.000.00OOW 100,]9 1.YN.88000 2,015.820W 052 _20.940.W 20.94000
477877AD6 JOHN DEERE OWNER TRUST 200 AS 1070%11ryN201, 4,9000000W 99,98 4.101 e]500 3,990,240.W 103 -3,fi35W -363500
4]]80MAC4 JOHN DEERE OWNER TRUST 20 A A31.350%04I15202.� 2,420,0000W 99.911 2,419,61909 2,I17,094.00 062 -1,72649 -172440
525ESCOY6 LEHMAN BRTH HLD ESC0000%19YMM2016 DO 10M4N5 2,000,ODO D. 7.35 124132110 147,003.00 OM -1,094,32110 -1094321.10
525ESCIB7 ESCLEHM BRTHHLDESCROWO.WO%1124Y2013D.. 600,0000W 7.35 366851.84 44,100.00 0.01 -324,I51.84 324y51.84
532457BF4 ELI LILLY&GO 1950%0311 M019 DD 02125114 4,000,OO0000 102.30 4,009.675.00 4,092,000.00 IN 82,325.00 82,32500
6174IWPll MORGAN STANLEY 5500%072812021 DD 0728M 1 2,800.00000 114,12 3.200,848.00 3,195,472.00 0.83 5.373N -5,376.DO
KS88UAA8 NCUA GUARANTEED NOTES TR R2 IA VAR AT 11N620.. 479,950920 99.90 4]9,94874 4I9.456.57 0.12 49217 492.17
64971MSEB NEW YORK CITY NY TRANSRIONAL 4,075%11N12020. 1A00000 ON 109,50 1.40D.WO.00 1.533.%4W 0.40 133.014W 133.01400
6745.1305 OCCIDENTAL PETROLEUM CORP 1.500%OVI 512018 D0. 200000r D. 99]0 198634000 1,993,940.W 051 ],BW.W 7,63000
73350WAG9 PORT AUTH OF NEW YORK&NEW JE 5.309%12IHN01 ?HOOOO OW 114,28 2507,63DW 2,]00,310W 0.]2 280,676A1 280,6]611
947525AD5 QUALCOMMINC2.250%O512012020DD092N15 5,000,ONO. 102,51 4,B9519540 5,125,SW.W 1.32 130,304.60 130,304.60
T8HSJPAS SLMSTUDENTLOANTRUST2W9AVAR RT M25202.. 41,3680W 98.88 41,200.17 40,905.51 _0_01 -29466 -2.w
83162CLJO SBA GTD PPRTN CTFS 2001-200 16.30%03I012021 91,130.OW _10848 _ 91,130.06 96,85S.W 0W _ ],]26.01 7,72601
83811MGS1 SOUNDVIEW HOME LOAN TR OP73 A4 VAR RT 11a520.. 305600D _ 99.95 _ 2.69788 3.054.56 O.W 356.83 35668
89231MAC9 TOYOTA AUTO RECEIVABLES 2 AA308]0%121151201i., 2584,623,130 _ 99,87 2.579.272,15 2,581.211.43 0.67 1,939.28 1.93928
89231TABB TOYOTA AUTO RECEIVABLES C A2A0920%0211512SHI 2,19BOOD 000 99.98 2.194.W3,52 2.194.56100 _057 -26252 -26252
89236TAK1 TOYOTA MOTOR CREDIT CORP VAR RT 05n72016 OD. 5,200 000 000 100,05 51200.000.00 5,202.4 SO 1.34 21444.W ?444.W
09236WAC2 TOYOTA AUTO RECEIVABLES 2 A AS 1,120%101512019. 3,5960000W 100,06 3,584,456,44 3,587,22893 0.. 2,]]246 2,7`/246
91159HHB8 US BANCORP 2200%11115a016 DO 1110111 1PODNOOW 10085 10a'soam 1 00, 0,4W,W 0.26 -144000 -1440.00
W 912828BM U S TREASURY NOTE I.6_%0121a019 DD 0IM1114 11,000,0000W _101 43 81 11,042, 9.19 11,1BB,W 5Q 1W 2.89 156,550.81 155081
91282SD31 U S TREASURY NOTE VAR RT OL3W2016 DD 0930114 3,500,000.00 100.DO 3,5W,340A1 3,500.105W SAW 235.41 23541
W 912828D64 U B TREASURY NOTE 0.5 %08131a M 016 DD OW1114 10,000,NOON 100,05 9.998. 8,8] 100W,9WGO 2.56 6.853.13 8.853,13
912828F39 U S TREASURY NOTE I]W%OMM019 DD OM0114 5,800,000OW 102,60 5,873.186,87 5,950,684,W 1.54 ]]A97.13 T].49],13
912828G20 U S TREASURY NOTE 0.075%1111WO17 Do 11h 5114 1U0000000W 10025 9,940.783,50 10025.OW.W 2.59 ]8,21650 ]6216.50
912828G46 U S TREASURY NOTE OSW%11I302016 DD 11130114 11/000000 ON 100,00 t0,W4W1]4 Zor%560.W 2. 245Wa5 24,M826
91202BG61 U S TREASURY NOTE I.600%11I302019 DD 11130114 7,S000OO OW 10168 7,44%634.50 7,626,01,3.01 1.87 176.361 176,365 DO
912028199 U S TREASURY NOTE 1.375%1013R2020 DD 10131115 5,500,DODD. 100.80 5,424,66687 5,544,055.00 1.43 119,380.13 119,388.13
912828N89 U S TREASURY NOTE 1.375%012112021 DD 0IM1116 1,500,0000W 100.72 1,91,626,12 1,510,78500 0.39 1%15S.88 19,158,88
912828OP8 U S TREASURY NOTE 1.750%05212016 DD 05131111 4,000,00000 100,24 4,028.&US3 4,009.4800D 1.M -19,361.53 -19,361.53
912828RJI U S TREASURY NOTE I.003%OMM016 DD 09130111 2.000,000000 10028 2.005.787,95 2.005.6200D 0.52 -187.95 -167.95
912828SK7 U S TREASURY NOTE 0375%OWIW015 DD 03115112 3594000OLD 100.00 3,603.596,33 3,594,00).00 093 9.596.33 9,596.33
912828SSO V S TREASURY NOTE 0.075%04I302017 Do O4cOI12 75000000W 100,24 7,500.61106 7,517.850,00 1.94 17,238.94 1723894
912826VG2 USTREASURY NOTE 0500%CWlWO16 DD 08115113 14,000000 ON IDO DS 14W1W940 14006,300.00 362 4890.fi0 4,6906D
912828VL1 U S TREASURY NOTE 0.625%0711MO16 Do 07115113 3,000,000 ON 10008 2599,541.30 3,092,340.01 0.78 2]90]0 2,79870
912028,WU U S TREASURY NOTE 0.875%CWlMO16 DD 09116113 3,000,OOOOW _100.20 3,003,76005 3,005,850.00 _ 0.78 2,089.95 2,08991
912828WM U S TREASURY NOTE 1.625%OMMO19 DD OM0114 10,000,0000W _10223 9,984,b]20 _ 10,223,1W,W 2W 238,792.80 238,]9280
912828WUO US TREAS-CP1 INFlAT 0125%0)H W2024 DD Wtl5114 10,376,28800 100.34 10.259,0389 10,411,982.43 SAN 152.970.54 152.978.54
912826WW8 U B TREASURY NOTE 1.825%07212019 DD 0721114 10,000,000OW 102,19 10.024.77,40 10.218.MW 2.64 104,022.60 194.02260
913366EJ5 UNIV OF CALIFORNIA CA RGTS MED 5035%WISQ021.. ROO 0000W 113,58 400.00000 454.336,00 012 54,336W 51.33600
Food Tlm clam,T,Q Ap 19 W161153:05 FM
Page 3 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: USD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
Mellon Security Local Unrealisad Net Unrealized
ID Security Description Shares/Par Base Price Base Cosl Base Market Value Percent of Total GainlLoss Gain/Loss Base
B09I6BFL9 WELLS FARGO&CO 1260%07t2=016 GO 0;:B 3 �000,000000 t0016 t00t 9]000 1001j]0.00 026 -10040 -1[OW
9C9]CBGM6 WELLS FARGO&CO 2.600%0]@2G020 ODOTRIH 5 5,000,000000 102.33 6001.65000 5,116,400.00 132 11C)5000 11475000
949881210 WELLS FARGO BANK NA VAR RT 06IM017 DD 0611 V14 600000AW 99.61 50.0000 498.070,00 013 -193000 -193000
RepM TlmasmP,Tua Ap 19 MIS l2s 05 FM
Page 4 of 4
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
Contract
Effective Trade Date Base Investment Base Investment Settle Base
Security ID Description Data Settle Shares/Par Amount Amount Base GainfLoss Amount
Date
GRAND TOTAL -5,095,752.83 230,713.05 54,639.83 -2,596,620.35
CORPORATE ACTIONS 17,766.09 -17,766.09 0.00 17,766.09
17,766.09 -17,766.09 0.00 17,766.09
U.S.DOLLAR 17,766.09 -17,766.09 0.00 17,766.09
525ESCIB7 ESC LEHMAN SUN HIM ESCROW UV0%1112412013 DD 01/22/08 W3112016 4112016 0000 000 g111 G6 4,11106 ran
525ESCOY6 LEHMAN BIRTH HUD ESC 0000%1 213 012 016 DD 10124,05 W3112016 MIG016 _ raw 000 -13,65503 -13,65503 000
525ESCIB7 LIQUIDATION ESC LEHMAN BRTI HLD ESCROW W3112016 0.000 4,111.06 0.00 4,11106 4,11106
52SESCOYS LIQUIDATION LEHMAN BIRTH HLD ESC W3112016 _ 0000 13,655.03 am 13.655,03 13.65503
MATURITIES _ 10,990,735.84 -10,937,633.84 53,102.00 10,990,735.84
CASH 8 CASH EQUIVALENTS 6,990,735.84 -6,990,735.84 0.00 6,990,735.84
U.S.DOLLAR 6,990,735.Bd 6,990,735.841 0.00 6,00.735.84
216S7ACJW LOOPERAT CENT DISC 0311012016 311012016 3/10/2016 -1,000,000,00 998,754.17 -988,754.17 0,00 998.]54.17
3131MUW &M] FEDERAL HOME UN BK CONS DISC MAT 032i6 312812016 312812018 -3,000 W 5Q,OCO.O 2,996,380.00 -2,9300.W r ODD 2.-.-a.Do
89233GLM6 TOYOTA MTR CR CP DISC OW2112016 312112016 3/21/2016 -3,00000GOD 2,995,601.67 2,9956018] 0,00 2.M,60187
FIXED INCOME SECURITIES 4,000,000.00 -3,946,898.00 53,102.00 4,000,000.00
U.S.DOLLAR 4.000.000.00 3.946.898.00 53.103.00 4,000.000.00
38141GEG5 GOLDMAN SACHSGROUP INC?HE VAR RT 03121I2016 DD 0V22/W 3I21I2016 3/22/2016 -2,000,069.W3 2,000,000.00 -1,895,068.00 104,&33 W 00 2, 0,00000
43701 HOME DEPOT INL 6400%03MI12016 DD 0312406 311/2016 3/112016 -ip00,000.CW 1,000.00000 -1,032,590.00 32590.00 1000000.00
8574]]AHB STATE STREET CORP 2875%0=712016 DO 03K II WM16 3OI2018 -0,000,OLO.LN 1,000.00000 -1,019.240,00 -19,24000 1.003,00000
PRINCIPAL PAYMENTS 860,100.43 -858,]]2.79 1,310.16 860,082.91
FIXED INCOME SECURITIES 860,100.43 -858,]]2.79 1,310.16 860,082.91
U.S.DOLLAR 860,100.43 458,772.79 1,310.16 860,082.91
31348SW23 FHLMO POOL#78-60MVARRT 01N1Y2028DD12/01I87 V1/2016 2/112016 -17480 17A8 ov, 000 17,48
3130SWM FHLMC POOL#786084 VARRT OINI/2028DD12/01197 W112016 31112016 -17,520 17.52 -17,09 043 000
3133TCE95 FHLMCMULTICLMSSMTGE3AVARRT 0&15f2032DD12N1197 211IM16 2/112016 1,859850 1,059.85 -1.861.80 -1.95 1.859.85
313]1NUC] FNMA POOL#02571794,500%NM112028 DID)MMICI 3112016 311/2016 373 TPJ 2]3]5 -28952 -15]] 2]3]5
31376KT22 FNMA POOL#0357969POI 0910112935 DO QYOU05 3MCK16 311/2016 -10052010 10,05201 -10,80591 -75390 10,052.01
31381POA3 FNMA POOL#04E639]3400%11101/2020 DD 11MI110 311,416 31112016 -682060 682W 657 S3 14,76 61
31403DJZ FNMA POOL 407455805,000%W0112036 DO)SAIM 311/2016 31112016 -4,855390 4,11M.79 5,219.97 364.18 4,855,79
31403G%Po FNMA POOL 40]486]86,000%10/01/2033 DO IWIM W112016 Y1/2016 28270 26.27 -2824 49] 2827
3NCGROYB FNMA POOL N8159715.000%OW112035 DO O3tl1N5 W12016 3/112016 -5,169.270 5,169.V 5,556.97 38]]D 5,16927
3NDRMYT5 FNMA POOL M823358 VAR RT OW112035 DO 04/01/05 WIM16 3/112016 -681 684.58 �W921 5.35 684.56
31401 FNMA POOL#082W605000%07N1/2035 DO DMD1/05 _ W12016 3/1/2016 1,497.70 1,49]]4 1.610.07 -112.33 1.497,74
31410TtV4 FNMA POOL#G8S3365,000%07AYQ036 DO 0,N1N7 311Y2016 311/2016 -7,241730 7,24173 7.784$6 54313 724173
3130EG6F6 FNMA POOL MAL08694.500%06012029 DO O801111 31112mI 3l1/2016 457,510 457.51 -08386 16.35 457.51
31417YWY3 FNMA POOL#OMA00224.500"10112029 DO OVOIM 311/2016 31112016 -1,368870 1,36687 -144791 -0884 T3SSI]
31396K3QS FNMA DID REMIC P?W-114 A6 VAR RT IW271037 DO 11GOAn 3125Q016 3I2S2016 -6,964.910 5964.91 5,62537 33A. Q9 Pl
31397QREO FNMA GTO REMIC P?11-3 FA VAR RT 02I26GO41 Do 0112" 3OSQ016 3/25/2016 -8,6I0.P0 8,670.17 4,667A6 2.71 8.670.17
3837IHNn GNMA GTD REMIC PR 00-9 PH VAR RT 02YISO 0 WIN2016 3/16/2016 1,304M 1,365.48 -1SMI 0.00 l.M548
381 GNMA II POOL W080033 VAR RT 1313&2028 D012M1/98 3l1/2016 3/1I2018 2216W 221.80 3251] -3..57 22180
20 A36225CNM4 GNMAIIPOOL#0XX395VARRT D4G0G030DD0001M0 312016 3 2 . 10 257.81 355.4] 2,M 25]81
8236225DCI8 GNMA II POOL#00SONG VAR RT m202034 DO Wl01M 3/1I2016 3 - 0 ]40 802.]4 I0224 050 802]4
362250020 GNMA II POOL#08001 VAR RT OI2QQ027 DO DMI 311=16 3I1I2016 -242.190 242.19 -24749 -530 .2.17
RpMI8 T.VS Repo Tlmnlam,Tue Ap 19 2016 11 4435 PM Page l of
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
Contract
Effective Trade Date Base Investment Base Investment Settle Base
Security ID Description Data Settle Shares/Par Amount Amount Base Gain/Loss Amount
Data
36225=13 ERMA II POOLIMO 00X VAR RT 05AW2030 DO O5b1N0 31112016 3I1I2016 -3925590 392559 1B0512 3907 392559
43813JAC9 HONDA AUTO RECEIVABLES 201 A30.670%11121IM17 DO 02 114 312112016 312112016 -310,583.320 348,583.32 -347,621.23 1,061.09 348.583.32
43814GAC4 HONDA AUTO RECEIVABLES 202 A30]]0%RVIRQ018 DO 0521/14 3I18I2016 311812016 -141,90L760 141,90776 -141,80798 99.78 141.90776
628WUW NCUAGUARANTEEDNOTESTRR2IAVARRT 11NL201]DD11/1]/10 TSDOI8 31512016 -8,214.360 8,214.36 8114.32 004 8,214.36
83162CLJO SBAGTDPARTNCWS2001-20C16.340%03 IM21 131IM16 31112016 -11.272.10 11,27210 11,272.10 000 11,272.10
83611MWI SOUNDVIEW HOME LOANTR OPT3A4VARRT lU2N2035DD03/3N05 MW016 W25OWS -12.424410 1242441 -10,969.42 1.45599 12,4M 41
89231MAC9 TOVOTAgUTO RECEIVPBlE52AA30 W0%12/152m]0003'19/14 9I1512018 3/152016 -281.0138W 2/104360 -200,461 75 58185 28104360
PURCHASES _ -25,368,752.26 20,433,663.17 0.00 -22,869,602.26
CASH&CASH EQUIVALENTS -14,446,587.05 14,446,58T.05 0.00 44,446,58705
U.S.DOLLAR _ -14,446,587.05 14.4116,587.05 0.00 .14,446,W.05
99607094 BEY MELLON CASH RESERVE 0010%12I312049 DD 0&269] W1512016 WI52018 9]5]20 97572 97572 000 -97572
996087M4 SHY MELLON CASH RESERVE 0010%12I312049 DD 0&285] 311812016 WlMU16 ifi55140 -165514 TWA4 000 465514
99W070E4 BNY MELLON CASH RESERVE 0010%1213112049 DD OW2657 312512016 3125/2016 70,175710 -]O,PS]1 70,17571 090 _JOT 7571
996M5247 DREYFUS TREASB AGY CSH CSH MG VAR RT IMISM49 DO Od109187 T112116 31112016 1036000000 -1,036,000.IF 1,0m,"'03 000 -1,036,00000
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12/31/2049 Do 04109187 W112016 31112016 14,518250 -1451625 14,618.25 000 -14518.25
996085247 DREYFUS TREASB AGY CGH CSH MG VAR RT 120H12049 DD DRSIB] N12016 3RI2016 1.014,375000 -1,014,375.00 1,014,375.00 000 -1,014,375.00
99608520 DREYFUS TREASB AGY OSH CSH MG VAR RT I2/31/2049 Do D4N9197 WM16 3R12016 36,562500 -36.562,50 36.562.50 000 36,562.50
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT I2/31/2049 DD 1439AD 31/2016 3MI2016 64.821580 -64,821.68 84.821.68 000 8 .821.68
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12fICAW DO OVOR97 _ 3SV2016 31912016 51,562500 -51,56250 51.562.S 000 -5L552.50
9960B52Q DREYFUS TREAS B AGY CSH CSH MG VAR RT DVQIRDW DO 04N919] 311012016 311012016 1,000.0OO.00O -1,00000000 1,000,W3.W 0.00 _1,NO.00000
9960B52N 2d,3 DREYFUS TREAS 6 AGY CSH CSH MG VAR RT UV31p049 DO 311112016 311/2016 80000 -243 W 8000 24,3 .W 000 _ -24,38000
996085247 DREYFUS TREAS&Any CST GNH MG VAR FIT DVQI�DW DO 04AMoff 311012016 311012016
996065247 DREYFUS TREA58 AGY CSH CSH MG VAR RT I2/312049 DO Od109197 W1412016 311412016 43,750.000 -43]5000 43,750.0) 000 43y50.00
996NS247 DREYFUS TREASB AGY OSH CSH MG VAR RT I2/312049 DO 04109I87 Wl W2016 WTW2016 25,625000 -25.62500 25,625.00 000 -21.625.00
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT 1221COM DD XM 9] WIW2016 3115/2016 331,392.540 -334.392.54 334,392.54 0.00 3 .392.54
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 122120,9 DD UVOW97 TIW2016 3116/2016 565,9]1090 -565,97109 565.971.09 000 565,9]1.09
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT 12QH1 049 DD O4N919] WIW2016 311MO16 142,99].800 -142,997,80 142.997.80 000 142,997.80
9960852J7 DREYFUS TREAS B AGY CSH CSH MG VAR RT 121312M9 DO 04N9197 312112016 312112016 3,459,.0120 -3459,34012 3,45%J40.12 000 3.45%340.12
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT I2V3F2M9 DO 04N9197 312212016 312212016 2,005235 FIX _-2,005,23503 2,005,23503 0.00 -2.W5,23503
996NS247 DREYFUS TREAS B AGY CSH CAN MG VAR RT 120OAR DO 04109197 3121112016 3/2812016 ]0,1]5]10 -7019591 70,17571 000 -10P91
9960852N DREYFUS TREAS B AGY CSH CSH MG VAR RT 12NI1 Nll DO&VOW9] W2812016 312812016 3,000,000 R, -300000000 3,000,003.03 000 yWg000.0.
996NS247 DREYFUS TREASB AGY OSH OSH MG VAR RT I2/312048 Do 04108197 W2912016 312912016 ],0271]0 7,02717 ],0P.1] 000 -7.027.17
996NS247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12212049 DD 04A)WOR 3112016 3/31/2016 10,000.0W -10.000.00 lo'DocW 0.00 -10,000.00
996WS247 DREYFUS TREASB AGY CSH CSH MG VAR RT I2/312049 DD O4N9197 T3112016 3212016 68,scow .68,5,609 68.516.09 000 68,516.09
3133842G7 FEDERAL HOME UN BK CONS DIED MAT 07/12Y2016 W2912016 3292016 1.400.000000 1,398,530 OF 1,398,530.00 000 =1.398,53000
FIXED INCOME SECURITIES -10,922,165.21 5,987,076.12 0.00 -8,423,015.21
U.S.DOLLAR _ _ -10,922,165.21 5,987,076.12 0.00 2423,015.21
30231GAW EXXON MOBIL CORPORATION 2222%OW112021 DO ONOW16 V2912016 3/312016 1,515,000000 -1,515.00000 O.W 000 -1,515.000.00
4501XCW5 INTER AMERICAN DEVELOPMENT BAN 0625%OWID2016 DO W lXl4 312912016 313012016 2,W0,000000 -2499,150.Go 2p9$150.00 000 000
459059EA INTERNATIONAL BANK FOR RECONST 1000%Sell V2018 DO 04/3W15 W2912016 313012016 2,000,000000 -1,996.30000 1.996.300.00 000 -1.996,300.00
4]]88MAC4 JOHN DEERE OWNER TRUST 20 A A31,360%W/152030 DO WNYI6 V2W2016 31212016 2,420.000000 -2419,6190 OW 000 -2.419,619.09
46623EJY6 JPMORGAN CHASE 8 CO 1350%OV152017 DO 02118114 212612016 31212016 1,000,0000W -1,00047000 00) 000 -1,000.47000
91202BN09 U S TREASURY NOTE 1,375%01/3112021 DO W AR/16 WIW2016 3U12016 1,500,000000 -1,49162612 1,4v EX5.12 000 -1,49162612
RECEIPTS AND DISBURSEMENT TRANSACTIONS 0.00 15,392.00 0A0 BAD
MISCELLANEOUS INCOME 0.00 15,392.00 0.00 0.00
F.-,J TX0355 ROft 7—sem,T Q Ap 19 W16129FS PM Page 2 of
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
Contract
lw Effective Trade Date Base Investment Base Investment Settle Base
Security ID Description Data Settle Shares/Par Amount Amount Base GainfLoss Amount
Date
U.S.DOLLAR 0.00 15,392.00 0.00 0.00
912828WU0 ILB INFLATION ADJUSTMENTS US TREAS-DPI INFLAT 311/2016 3/112016 -1,2180Jc 0.00 -1,248.00 0.00 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31V2016 3/212016 52000 000 520.00 0.00 0.00
912&2SMrU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT W=016 313I2016 624.000 0.00 624.00 0.00 0.00
912828WU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 314/2016 W112016 L664AW 000 L881.0O 0.00 0.00
91282SWU0 ILB INFLATION ADJUSTMENTS U5 TREASCPI INFLAT 39=16 3 12016 520000 000 ENDS 000 000
912826WU0 ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 31W2016 Wa12016 520030 000 520.00 FOB 000
S2S28WU0 ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 31W2016 3I912016 6260W Jr. 624SO F00 000
912828MO ILB INFLATION ADJUSTMENTS US TREAS CPI INFLAT 311012016 WnL2016 520.000 000 520.W 0.00 0.00
912&28WU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 311112016 311112016 1,864.0W 0.00 1,664.W 000 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 311412016 311412016 520.00 0,00 520.00 0.00 0.00
912828WU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 311512016 VISQ016 624.000 0.00 82A.W 000 0.00
912828WU0 ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 311612016 3/1612016 520000 000 520.00 0.00 0.00
912ANAMM ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT311712016 3/172016 520000 LOS 520.03 000 OOO
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 311812016 3I .SS 520000 0SO 520.W 00O FOO
912828MO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 312112016 W21OW6 IS".000 0.00 1,WN.03 000 ODO
912828MO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 312V2016 3/22/2016 624.0W 000 624.00 000 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31230016 3123/2016 520.000 0.00 520.0) 000 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31240016 312412016 52000 000 520.00 0.00 0.00
912828WU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31250016 N2512016 1,664.00) 0.00 1.664.00 OSO 0,00
S2828WU0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 312812016 W2812016 624000 000 624W 0.00 0.00
912828MO ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 312912016 32.2016 520.000 0W 520.W SOS FOG
1112826WU0 ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 3130,2016 3I302015 5200W 000 5.So FOO 000
912828MO ILB INFLATION ADJUSTMENTS US TREAS CPI INFLAT 313112016 3I3IOM16 624.000 O.W 624.00 0W O.W
SALES 8,404,397.07 4,404,169.40 227.67 8,404,397.07
CASH&CASH EQUIVALENTS 6,404,560.02 -6,404,560.02 0,00 6,404,560.02
U.S.DOLLAR 6,404,560.02 -6,404,560.02 0.00 6,404,560.02
99508M. BNY MELLON CASH RESERVE 0010%12131204E DD 06126197 WIN2016 311612016 -9]5]20 9]5]2 9]5]2 OOO W92
996067094 BNY MELLON CASH RESERVE 0.010%1213112049 DD 0612619] X2112016 3121/2016 -1,655.140I 1,6AS 14 -t 65514 are 1,655.14
996087094 BNY MELLON CASH RESERVE 0.010%12MNO049 Do 08I28197 W2W2016 WW2016 -70,176710 70,175.71 70,1]5]1 0.00 70,175.71
996065247 DREYFUS TREAS&AGY CSH CSH MG VAR RT 12131a049 DD 0410919] 3I2Y2016 3I1I2016 -1,011,SW.310 1,000,567.31 -1,00056].31 0.00 1,W0,56L31
996W52Q DREYFUS TREAS&AGY CSH CSH MG VAR RT 1SO OW9D0 G4N919] 2a018 312I2016 -2417,658.140 2417,65&14 2417,655.14 0.00 2.417,656.14
9960852Q DREYFUS TREAS&AGY Can CSH MG VAR RT 1213112WO DD 0009Im 313am8 313I2018 1515,000.000 1,515,000.W .1,515,00000 0.00 1.515,000.00
996055247 DREYFUS TREAS&AGY CSH CSH MG VAR RT lWla019 Do 04N9IW L29I2016 MM016 1398.530.CW 1,398530.00 .1,398,53000 000 1.398.530.00
FIXED INCOME SECURITIES OR 1,999,837.05 -1,999,609.38 22].6] 1,999,837.05
U.S.D64 U 1,999,831.05 -1,999,9.6N38 227.67 1,9%9,83.05
9128280W USTREASURY NOTE 0.500%Ofl131a0160D OL31/14 311512018 3/16a018 2,000,OW.CW 1,999,837.05 -1,999.6W�3 22]8] 1.W9,83].OS
Rvem Id TONER Reuel11-..,1.Ap 19 IS 11.Jsa PM Page 3Of3
Callan
March 31, 2016
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
The Miceli, aided waa prepared by Callan Aasociates Inc. ("CAI") using information from sources that include the following: fund thusands); fund
cuatodian(s);Investment mar agar(s);CAI computer soMrere;CAI investment manager and fund sponsor database;third party data vendors;and other outside
sources as directed by the client CAI assumes no responsibility for the accuracy or completeness of the information provided,or methodologies employed,by
any information providers external to CAI.Reasonable care has been taken to assure the accuracy of the CAI database and computer software.Callan does
not provide advice reversed nor shall Callan be responsible for,the purchase,sale, hedge or holding of individual securities, including,without limitation
cundes of the client(i.e. company stock)or derivatives in the clients accounts.In preparing the following report,CAI has not reviewed the risks of individual
cunt,holdings or the conformity of individual seventy holdings with the client's Investment policies and guidelines,nor has it assumed any responsibility to do
a.Advice pertaining to Me meets of individual securities and derivatives sal be discussed with a Mind party securities expert.Copyright 2016 by Callan
Associates Inc.
Table of Contents
March 31, 2016
Capital Markel Review 1
Active Management Overview
Market Overview 8
Domestic Fixed Income 9
Asset Allocation
Investment Manager Asset Allocation 11
Investment Manager Retums 12
Asset Class Risk and Return 16
Manager Analysis
Chandler-Long Term Operating Fund 18
Chandler-Liquid Operating Money 22
Callan Research/Education 24
Definitions 27
Disclosures 32
Callan
Orange County Sanitation District
Executive Summary for Period Ending March 31, 2016
Asset Allocation
March 31, 2016
Market Value Weight Net New Inv
Darwatic Fixed Ina.
Long Tema Opemting Fund' 319.878.459 8337% 0
Tool Foal $389,667,959 100.0% 6(68,300,000)
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA 1.56% 1,66% 0.81% 1,94% 2.84%
Chandler 1.56% 1.66% - - -
Barclays Govt/Cred 1-5 Year Idx 1.61% 1.62% 1.34% 1.88% 2.54%
ML1-5 Govt/Corp 1.61% 1.66% 1,39% 1.95% 2,66%
Liquid Operating MoniesA 0.16% 0.32% 0.18% 0.18% 0.23%
Chandler 0.16% 0.32% - - -
Citiamuo 3-Month Treasury Bill 0 05% 0 08% 0 05% 0 06% 0 08%
Total Fund 1.23% 1.36% 0.70% 1.64% 2.39%
Target' 1,30% 1.34% 1.12% 1,57% 2,14%
Currant Quarter Target=80.0%ML 1-5 GoyVCorp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 1 211 12014.Previous performance reflects PIMCO.
Recent Developments
— During the quarter, $68.3 million was withdrawn from the total portfolio. The entire withdrawal
came from the Liquid Operating Monies.
Organizational Issues
N/A
Manager Performance
U.S. Treasuries posted their best first calendar quarter return since 2008 as yields dropped
nearly 50 bps from year-end in a volatile quarter marked by heightened uncertainty over
global economic growth. The risk-off sentiment propelled the Barclays Aggregate Index to a
gain of 3.0%. The 10-year U.S. Treasury note began the quarter at 2.24% and fell to end the
quarter at 1.78%. The 30-year Treasury bond, which started the quarter at 2.98%, fell less
and ended the quarter at 2.61%. This activity was spurred by indications by the Federal
Reserve that they will move cautiously on further rate hikes, noting slower global growth and
financial risks. Government securities performed roughly in-line with the broader market
(Barclays Government Index: +3.1%) while investment grade credit advanced 3.9%
Callan OrangeUuntyS nilatm DInnd
Apni%.2016
(Barclays Credit Index). Inflation protected securities (Barclays US TIPS Index) posted a
solid return of 4.5% for the quarter. High yield bonds also generated positive performance,
gaining 3.2% (ML High Yield CP Index).
The Long Term Operating Portfolio was up 1.56% in the quarter, slightly underperforming the
MIL 1-5 Govt/Corp Index (+1.61%) and ranking in the 0 percentile versus peers. Securities
were transferred in-kind from PIMCO to Chandler in December of 2014. Since assuming this
portfolio in late 2014 Chandler has been re-positioning the portfolio in a manner they believe
to be consistent with OCSD's objectives. The Portfolio had less than 30% invested in credit
and less than the permitted 20% invested in the combination of asset-backed securities,
commercial mortgage backed securities, and CMOs as of March 31, 2016 (see page 21).
The Liquid Operating Portfolio returned 0.12% (after fees) in the quarter, which was higher
than the return of the 3-Month Treasury Bill (+0.05p/). Throughout the quarter, interest rates
on Treasuries with maturities longer than 3 months declined, while the very short end of the
yield curve rose slightly. The Portfolio returned 0.17% (after fees)for the trailing year.
Gordon M. Weightman, CFA
Vice President
2
Capital Market Review
CALLAN
INVES
Callan INST TUTENTS as
CMR
Preview
First Quarter 2016
This "Preview' contains excerpts from the upcoming Capital Broad Market Quarterly Returns
Market Review (CMR) newsletter, which will be published at
the end of the month. U.S.Equity(Russell 3030).0.97%
-028%I N.IUS.Equity(MSCI ACWI&USA)
Tale of Two Halves U.S.Fixed endow Aggmgale) 303%
Non-US.Fixed(Cil Non-US)-9.10%
U.S. EQUITY I Lauren Mathias,CFA Cash pio-Day T-BIIIe)I0.07%
Soumas:Barclays,Ciigmup Msr,ill Lynch,NM,Fusssll Imas..Green
The first quarter of 2016 was a tale of two halves:the S&P 500
Index declined in the first half only to reverse course and post
a positive quarterly return(+1.34%). Large cap companies held More T-Bills, Please
their lead over small cap,but in the trend of reversals value over-
took growth in all capitalizations.(Russell 1000 Index:+1.18% U.S. FIXED INCOME I Irina Sushch
and Russell 2000 Index: -1.52%; Russell 1000 Value Index:
+1.64%and Russell 1000 Growth Intlex:+0.74%). Yields plummeted during a volatile first quarter. A dovish
Fed fostered uncertainty over global economic growth. The
Barclays Aggregate Index gained 3.03% and the Barclays
Continued on pg.2 Corporate High Yield Index was up 3.35%.
Continued on pg.4
Mr. Draghi's Wild Ride A Dole of Doves
NON.U.S. EQUITY I Kevin Nagy NON-U.S. FIXED INCOME I Kyle Fekete
Non-U.S. equity markets endured a rocky January and Sovereign debt rallied in the first quarter,driven by risk-onsen-
February but rallied in March to finish at a modest loss(MSCI timent and the impact of the U.S. dollar's relative weakness.
ACWI ex USA Index: -0.26%). Emerging markets (MSCI The CKI Non-U.S. World Government Bond Index jumped
Emerging Markets Intlex:+5.75%)did better than their devel- 9.10% (+4.16% on a hedged basis). The hard currency JPM
oped Counterparts(MSCI World ex USA:-1.95%). EMBI Global Diversified Index rose 5.04% while the local
Currency JPM GBI-EM Global Diversified soared 11.02%.
Continued on pg.3 Continued on pg.5
Knowledge.Experience.Integrity.
U.S. Equity: Tale of Two Halves Quarterly Performance of Select Sectors
Continued from pg. 1
�Rczzeiii a0n �Rcssenz 00n
Though the S&P 500 Index ended in positive territory, dur-
ing the quarter performance dipped 10%.This is the first time
since the Great Depression that the S&P fell to this depth only
oaox
to rebound and end in the black. January was a disappoint-
ing month as economic concerns lingered from 2015. But in
February and March, U.S. manufacturing activity grew, U.S.
fourth-quarter 2015 GDP was revised to 1.4%from 1.0%, the
i I i
labor force participation rate expanded to 63% (from 62.4%), Utilities Materials& Financial Hal rc
Processing Services
and the U.S. economy added 215,000 jobs in March alone.
Global concems around the price of oil abated as the crude oil soma:Russaii msaavnant Groan
spot price ended the quarter at $38/barrel after bottoming at
$26/barel in mid-February. Investor sentiment rose in tandem Rolling One-Year Relative Returns (vs. Russell 1000)
to these positive developments. Despite some improvement, e11uaaell1000Gicei eacr 111000Wlue •Raeseuio00
the U.S.Federal Reserve stated global economic and financial
30
developments continued to pose risks, and thus maintained
the target range for the federal funds rate at 0.2511 20%
Growth lost its lead over Value. The difference was most sig-
10%_ _ _ _
nificant within small cap(Russell 2000 Growth Index:-4.68% 0%
and Russell 2000 Value Index: +1.70). Micro and small
cap companies declined while mid and large cep advanced -loft- - - - - -------------- - - - - - '
(Russell Microcap Index: -5.43%, Russell 2000 Index:
-1.52%, and Russell Midcap Index: +2.24%, Russell 1000
Index:+1.18%). -30%rP^rv�r��l^�rv�U��rv�r^I...lv'I ..P..r^rv.rv.I...P..r^P....
9697 98 99 00 01 02 03 of 05 06 01 08 09 10 it 12 13 16 1516
Sector performance over the quarter also revealed reversals. source:Russell ImasVnent Group
Cyclical areas like Energy, Industrials, and Materials added
value,and the interest rate-sensitive Utilities sector expanded, The U.S.equity market had a tumultuous start to the year, but
but typically defensive Health Care trailed. Not only did sectors found itself in positive territory by quarter end.This tale of two
turnabout,so did factors—valuation metrics such as price/book halves made it challenging for active management, with just
and yield outpaced growth metrics such as projected-EPS 19%of large cap funds outperforming the S&P 500 Index dur-
growth and price momentum.Volatility of stocks,as measured ing the quarter.
by the daily VIX, increased during February's pullback, end-
ing the quarter near average levels.Correlations remained well
above long-term averages and spreads between stock returns
were below average(both based on the S&P 500 universi
difficult environment for stock-picking strategies.
2 1 Callan
Non-U.S. Equity: Mr. Draghi's Wild Ride Rolling One-year Relative Returns
Continued from pg. 1 (vs.MSCI World ex USA,USD hedged)
e MSCI Padfic a MSCI Europe a MSCI Wpdd ex USA
Non-U.S. equity markets fought through a horrible January 40%
to post a modest loss for the quarter (MSCI ACWI ex USA 30"
Intlex: -0.26%). Falling oil prices, cencems about global eco- 20%- - - - -------
nomic growth, and declining corporate profits prompted the f0% -- - - - - - - ----- -- -
January sell-off as many investors switched to a'risk-off"foot- °%
ing.Announcements of further European Central Bank(ECB) -10% --- - - - - - --------- --.
monetary stimulus and a modest rebound in commodities -20%
prices helped kick start a comeback in February and March, -30%
but were not enough to drive the broader non-U.S.indices into -00%I'I"9" "' "' "' "' "' "9"'I"'I"'I"'I"'I"'I"'I"'I"9"'I"9'
989] 90 99 99 at 02 93 00 05 CS 9] OB 99 19 11 12 13 16 1513
the black. Source:MSCI
Emerging markets outperformed developed markets with the
MSCI Emerging Markets Index(+5.75%)handily surpassing worst performer; its Financial sector lost 25.84%due to Italian
the MSCI World ex USA Index (-1.95%). Small cap stocks banks carrying massive amounts of non-performing loans on
rode the rally further than large cap and posted a slight posi- their balance sheets.
tive return, due to strong performance in the Utilities sector
(MSCI ACWI ex USA Small Cap Index: +0.68%). Sector Southeast Asia and the Pacific(MSCI Pacific Index: -3.79%)
results were mixed: Energy(+9,97%)and Materials(+7,26%) underperformed Europe and other broad benchmarks. Japan
were strongest while Health Care and Financials retreated (-6.52%)battled with tepid economic growth and large losses in
(-7.17%and-4.85%, respectively). the banking sector.The Financial sector was hit especially hard,
losing 13.58%. Exporters also struggled due to the strengthen-
European stocks were unable to complete their rebound ing yen. Things were less gloomy in the rest of the region with
despite further rate cuts and bond purchases by the ECB New Zealand (+11.60%), Singapore (+5.05%), and Australia
(MSCI Europe Index: -2.51%). The banking sector was hurt (+2.10%)benefiting from a commodities rally.
by slashed interest rates. Health Care also struggled,dropping
7.45% amid renewed political tension over rising drug prices. China(-4.80%)continued to struggle due to concems over slow-
The Netherlands(+3.35%)was the top performer in Europe due ing growth and ineffective monetary policy. In an effort to sus-
to strong domestic performance from Energy (+15.73%) and tain the economy's growth, Chinese authorities implemented
Consumer Discretionary (+12.32%). Italy (-11.66%) was the selective capital controls to slow asset withdrawals and cut
the required reserve rate. Consumer Discretionary (-10.75%),
Regional Quarterly Performance (U.S.Dollar) Financials(-9.68%),and Health Care(-6.65%)were three Sig-
nificant detractors. In keeping with the rest of the world, surg-
MSCIEmrtgingMad,ed-SAS% ing commodity prices buoyed Energy (6.75%) and Materials
MSCI Padfic ex Japan_1.81% (7.26%). Latin America was the big winner of the first quarter
4.26%' MSCI ACWI ex USA as Brazil, Colombia, Chile, and Peru (+28.58%, +22.49%,
-1.95% MSCI Wodd ax USA +13.25%,and+27.02%)made the MSCI Latin America Index
-2.51% MSCI Europa
the top-performing regional index at+19.23%.The recovery in
l—
commodity prices and the prospect of political change boosted
4.62% - Mscl Japan the Brazilian real to appreciate 12%against the dollar.
Source'.MSCI
Knowledge.Experience.Integrity. 1 3
U.S. Fixed Income: More T-Bills, Please interest rates,underperformed like-duration Treasuries by ready
Continued from pg. 1 100 bps; Industrials,buoyed by a rebound in Commodity prices,
outperformed by 70 bps.
Yields fell nearly 50 bps from year end during a volatile first
quarter. The yield Curve flattened further in markets abundant High yield Corporate bonds rebounded from severe underper-
with uncertainty over global economic growth.Investment grade fonnance in January and early February (down 5% through
credit, mortgage-backed (MBS), commercial mortgage-backed February 11) to finish in the black. The Barclays Corporate
(CMBS), and high yield spreads all tightened, while asset- High Yield Index was up 3.35%, outpacing Treasures by 77
backed spreads widened. The Barclays Aggregate Index bps. Including an upsurge in issuance in the last few weeks of
gained 3.03%. the quarter, new high yield issuance was $35.9 billion-60%
lower than one year ago.
Following December's federal funds rate hike, the Federal
Reserve took on a neutral outlook,The Fed stated that financial
Historical 10-Year Ylelds
and economic Conditions are less favorable than they had been
in December. The U.S. economy experienced modest growth •U.s.10-Year Treasury Yield 010-Pear TIPS Yield •Breakwenlnfialion Rate
despite improving employment and housing numbers.Fed chair 6%
Janet Yellen staled that the U.S. economy would have to get 5%
much worse before the Fed would consider the use of negative
4%_ _ _ _ _ ______________ _ _ _ _ _ _ _ _ -
interest rates(six other central banks have implemented nega-
tive interest rates). The 10-year U.S.Treasury yield tumbled to 3%- - - - - -- --- - ----- --- - -
1.77%. The breakeven inflation rate (the difference between z%_ _ _ _ _ __
nominal and real yields)on 10-year Treasuries ticked up 1.63% 1%- - - - -
as TIPS fell 55 bps, in line with their nominal counterparts.
o%
Sectors in the Barclays Aggregate posted positive returns 1%1061 W 1 OB I 09 1 10 1 11 1 12 I .13 14 1 15 16
across the board. CMBS outperformed like-duration Treasures Source:Bloomberg
by 0.58%and rose 3.61%for the quarter.Credit was the highest
returning sector(+3.92%),but only beat like-duration Treasuries
by 0.18%. MBS was the only sector to trail like-duration U.S.Treasury Yield Curves
Treasuries (down by 0.38%), yet still rose 1.98%. Investment a Mamh 31,2016 •December 31,zo15 •March 31,2015
grade Financials,hurt by worries over persistent low or negative 5%
Fixed Income Index Quarterly Returns 4%
AMoIuh RNum
eamays Aggregete - 3.03%
Barclays Treasury- 3.20%
Barclays Agencies- 2.04%
BemlaysCMBa
BamlWg AB3 -1.36% 1%
aarolh's MBS - 1,98%
Barclays Credit 3.92% 0%
Samlays Corp.High Yield -3.35% 0 5 10
15 20 25 30
Maturity('Pant
Source.Barclays Source:Bloomberg
4 1 Callan
Non-U.S. Fixed Income: A Dole of Doves Emerging Spreads Over Developed (By Region)
Continued from pg. 1 e Emerging Americas a Emerging EMEA lEump.W&EmaArae a Emerging Asie
a
The U.S. dollar weakened versus most currencies during the
quarter, providing a tailwind to unhedged foreign bond returns. 6% _
The yen gained 7% versus the dollar as investors sought its
safe-haven status amid market turbulence in China and con- arc _ _ _ ___ ____
cems over the health of the European banking sector.The Sul
was also stronger versus the dollar(+5%). In March, the ECB 2%
Continued its accomodative stance, slashing interest rates and
increasing asset purchases.For the first time,the ECB included 0% ' . ' ' ' i ' i '
11 12 13 14 15 ie
non-bank investment grade Corporate bonds in its asset pur-
sourue:6amaava
chase program.Interest rates fell across developed markets,fur-
ther bolstering returns.The Citi Non-U.S.World Government
Bond Index was up 9.10%(+4.16%hedged)while the Barclays 10-Year Global Government Bond Yields
Global Aggregate rose 5.90%(+3.28%hedged).
•US.Treasury •Germany *U.K. 0 Canada •Japan
6%
On an unhedged basis, returns approached 109% for many
5%
countries, including Japan which was up almost 12% on the
4%
back of falling rates combined with yen strength.Yield on the
3%_ _ _ _ _ _ _
Japanese 10-year bond reached negative territory after a sur-
prise move by the Bank of Japan (BoJ)in January to adopt a 2%
negative interest rate policy, indicating bond investors would 1%— — — — — — — — ---- -- -------have to pay-to-cwn before adjusting for inflation.The BoJ owns 0%
approximately a third ofoutstanding Japanese bonds as a result -1%i . . . . . . i . . . . . . . . . . . . . . i . . . . . . i . . . i
of its quantitative easing program. Regulations require the 06 01 ae 09 10 11 12 13 14 1s 16
nations banks, insurers, and pension funds to tarty Japanese Change in 10-Year Yields from 4015 to 1016
bonds on their balance sheets. 41.50% U.S.TreaauN
-0.46% Ga..,
The unhedged U.K. gilt advanced 2.66%, hampered by the 4.55% U.K.
pound's 3%fall. Worries over a potential Brexit put pressure 4.17%— Canada
on the currency. Yield on the 10-year U.K. gilt declined more 4,29%—Japan
than 50 bps, hitting an all-time low early in the quarter. The
Bank of England elected to maintain its relaxed monetary pol- Source:Blomberg
icy for the seventh straight year,citing weak growth and global
market turmoil.
the local currency JPM GBI-EM Global Diversified soared
Emerging market bonds rebounded. In late February and 11.02%, bolstered by the dollar's relative weakness.Brazil led
March,Commodity prices stabilized,risk appetite returned,and both indices as investors cheered the prospect of an impeach-
confidence in the Chinese renminbi stabilized. The hard cur- ment of President Dill Rousseff, hoping a new government
rency JPM EMBI Global Diversified Index rose 5,04%while could bring better days for the beleaguered Country.
Knowledge.Experience.Integrity. 1 5
Active Management Overview
Market Overview
Active Management vs Index Returns
Market Overview
The charts below illustrate the range of returns across managers in Callan's Separate Account database over the most
recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes.An appropriate index is also shown for each asset class for comparison purposes.As an
example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
Large Cap Equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended March 31,2016
15%
0%
5% 71
E (47)ionni (62)
IY 0% ( 1
(56)
(61)
(5%)
(11%) large Cap Small Cap Non-US Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
V. s s vs
5&p SOU Russell 2000 MSCI EAFE Bamlaya Aggr Bd Citi N...USG.A NCREIF Index
10ih Percentile 1.85 3)5 0.64 340 9.74 3,72
25M Percentile 0.95 1So (070) 3.20 828 3.18
Metlian ((0.19 063 ((2.46) 3.01 871 2,42
75M Percentile (3.39 T (3.97� 2.61 0.9 (0.11)
74
901h Percentile
Index • 1.35 (1,62) (301) 3,03 9,10 2,21
Range of Separate Account Manager Returns by Asset Class
One Year Ended March 31,2016
30%
20%
f0% 58)(1)
0%
c
18 63
K
(10%) (68)0 011®
(20%)
(so%) imp Cap Small Cap NomUS Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
"P No Russell 2000 MBOI EAFE Barclays Aggr Bd Oiti Non USGo" NCREIF Index
10ih Percentile 3.08 (1.78 (2.2)) 2.66 ].00 21.54
25ih Percentile 0.92 LA] (6.2a 248 8.53 i6]5
Median l(ow) (((].22 (((6.23))) 2.48 5.33 13.75
40
)5N Percentile (5.28� (17.15 (10.0 1.76 (1.52)1.16 7.69 90M Percentile
75
'�
Index • 1.78 (8.78) (8.27) 1.96 7.74 11.84
Callan Orar,,,County Sanitation Mend s
Domestic Fixed Income
Active Management Overview
This will be available soon.
Barclays Universal: 3.07%
Barclays Aggregate: 3.03%
Separate Account Style Group Median Returns Barclays Daw 3.4T%
P y P Barclays Mortgage:Yiel 3.90%
for Quarter Ended March 31,2016 Barclays High Yield: 3.36%
10% Barclays US TIPS: 4.46%
8%
7.08
6% ______________________ _____________
m
K
01 2.11
2� 2.65
2% _________
1.01
0.40
0%
Aceve Defensive Intenned Co. Core B dended Bank Wit". High
Cash Bond Plus Model Loans Backed Yield
Barclays Universal: 1.75%
Barclays Aggregate: 1.96%
Barclays Macrae,
2.43%
Separate Account Style Group Median Returns eamlays Moh9a9e: z.43%
for One Year Ended March 31,2016 Barclays High Yield: (3.69%)
4% Barclays US TIPS: 1.51%
3%
2.40
2.11 2.11
2% _________ ____
26 1.35
1% _____ ________ _____
0.11
0.36
E 0.05
2 0%
m
IY
(1%) __________________________________
(2%) __________________________________
(3%)
—(2-BYj
(,HU
Ad. Defensive Inte,med Care Core Extended Bank Mohgge a High
/'�,,11,,M Cash Band Plus Maturity Loans Beckad Yield
L.A3 L Orange County sedation Distinct g
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of March 31, 2016, with the
distribution as of December 31,2015.The change in asset distribution is broken down into the dollar change due to Net New
Investment and the dollar change due to Investment Return.
Asset Distribution Across Investment Managers
March 31,2016 December 31,2015
Market Value Weight Net New Inv. Inv.Return Market Value Weight
Domestic Filed Income
long Term Operating Fund' 319,878,459 83,37% 0 4.905.686 314.972,772 1047%
liquid ODeratina Monies' 63,789,500 16.63% (68.300.000) 127,370 131.962.130 29.53%
Total Fund $383,667,959 100.0% V08.3001000) 95.0331056 8446,9M902 100.0%
'Chandler replaced PIMCO during the 4th quarter of 2014.Assets were transferred In+lnd as of 1001I2014.
Callancoerce county Sandation DisNct „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2016. Negative retums are shown in red, positive returns in black. Returns for one year or greater are annualized. The first
set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended March 31,2016
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA 1.56% 1.66% 0.81% 1.94% 2.84%
Chandler 1.56% 1.66% - - -
Barclays Govl/Cred 1-5 Year Idx 1.61% 1.62% 1.34% 1.88% 2.54%
MIL 1-5 Govt/Corp 1.61% 1.66% 1.39% 1.95% 2.66%
Liquid Operating MoniesA 0.16% 0.32% 0.18% 0.18% 0.23%
Chandler 0.16% 0.32% - - -
Citigroup 3-Month Treasury Bill 0.05% 0.08% 0.05% 0.06% 0,08%
Total Fund 1.23% 1.36% 0.70% 1.64% 2.39%
Target* 1.30% 1,34% 1.12% 1.57% 2,14%
Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Oran,County Santlerinn Distnd 12
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2016. Negative retums are shown in red, positive returns in black. Returns for one year or greater are annualized. The first
set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended March 31,2016
Last Last Last
10 15 20.1/2
Years Years Years
Domestic Fixed Income
Long Term Operating FundA 3.66% 3.83% 4.64%
Barclays Govt/Cred 1-5 Year Idx 3.47% 3.67% 4.44%
ML 1-5 Govt/Corp 3.49% 3.67% 4.47%
Liquid Operating Monies^ 1,33% 1.70% 2.78%
Ciligroup 3-Month Treasury Bill 1.07% 1.43% 2.45%
Total Fund 3.23% 3.48% 4.36%
Target` 3.01% 3.22% 4.06%
Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Onar,County Santlerinn Distnd 19
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund's accounts for that asset class.
12/2015-
3/2016 2015 2014 2013 2012
Domestic Fixed Income
Long Term Operating Fund^ 1.56% 0.85% 1.98% (1.77%) 3.06%
Chandler 1.56% 0.85% - - -
Barclays Govl/Cred 1-5 Year Idx 1.61% 0.97% 1.42% 0.28% 2.24%
ML1-5 Govt/Corp 1.61% 1.05% 1.51% 0.32% 2.47%
Liquid Operating Monies^ 0.16% 0.22% 0.09% 0.13% 0.17%
Chandler 0.16% 0.22% - -
Citiarouo 3-Month Treasury Bill 0.05% 0.03% 0.03% 0.05% 0.07%
Total Fund 1.23% 0.80% 1.73% (1.49%) 2.70%
Target* 1.30% 0.85% 1.21% 0.26% 1.99%
*Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Orarq,e County Santle,InnDlsNtl ,<
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund's accounts for that asset class.
2011 2010 2009 2008 2007
Domestic Fixed Income
Long Term Operating Fund^ 4.59% 4.42% 5.52% 5.37% 7.21%
Barclays Govt/Cred 1-5 Year Idx 3.14% 4.08% 4.62% 5.12% 7,27%
ML1-5 Govt/Corp 3.10% 4.17% 4.88% 4.65% 7.27%
Liquid Operating Monies- 0,24% 0.25% 0.58% 2,40% 5,25%
Citigroup 3-Month Treasury Bill 0.08% 0.13% 0.16% 1.80% 4.74%
Total Fund 3.70% 3.68% 4.65% 4.61% 6.84%
Target` 2.49% 3.36% 3.93% 4.08% 6.76%
Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Orarq,e County SantlerinnDlsNct ,s
Asset Class Risk and Return
The charts below show the seven year annualized risk and return for each asset class component of the Total Fund.The first
graph contrasts these values with those of the appropriate index for each asset class.The second chart contrasts them with
the risk and return of the median portfolio in each of the appropriate CAI comparative databases. In each case, the
crosshairs on the chart represent the return and risk of the Total Fund.
Seven Year Annualized Risk vs Return
Asset Classes vs Benchmark Indices
3.0%
z5%
2.0%
1.5%
N
K
1.0%
0.5%
0.0%
0.0% 0.2% 0.4% 0.6% 0.8% 10% 1.2% 1.4% 1.6% 1.8%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
3.0%
z5%
2.0%
1.5%
N
K
1.0%
0.5%
00% a
0A% 0.2% 0.4% 06% 0.8% 1.0% 1.2% 14% 1.6% 1.8%
/'•,, 1,.. Standard Deviation
Callan Omrr County Sanda,Inn Oistnd 16
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended March 31, 2016
Investment Philosophy
Chandler Asset Management's Short Term Bond strategy is driven by quantitative models and focuses on active duration
management,sector selection and term structure.The strategy seeks to achieve Consistent above-benchmark returns with
low volatility relative to the style's performance benchmark. The firm has a unique focus on high quality fixed income
management, and places risk control as a higher objective than return. Assets were transferred in kind to Chandler on
12/l/2014.Previous performance reflects PIMCO.
Quarterly Summary and Highlights Quarterly Asset Growth
• Long Term Operating Fund's portfolio posted a 1.56%return Beginning Market Value $314,972,772
for the quarter placing it in the 4 percentile of the CAI Net New Investment $0
Defensive Fixed-Inc Style group for the quarter and in the 8 Investment Gains/(Losses) $4,905,686
percentile for the last year.
• Long Term Operating Fund's portfolio underperformed the Ending Market Value $319,878,459
ML 1-5 Govt/Corp by 0.05% for the quarter and
underperformed the ML 1-5 Govt/Corp for the year by
0.00%.
Performance vs CAI Defensive Fixed-Inc Style(Gross)
6%
5%
( �)CA 3
(( )281®B(2
3% (( (( (( 1 )8)♦ B(4 )
2% (3)LnA(4 (8)�B(9 (41�N(1 19) B12 11l®612 3
1% RA( )
0% Lasl qtr Last Chandler Laal3 Yrs Last 5Ym Last 7Ym LactlOYrs Laat20.5Yrs
Yr Inception
IOMPOrcentlle 1so Iso 2,01 149 2,M 4.08 382 465
250 Percentile 125 140 1,76 1,32 1.82 3.0 350 448
Median 1.01 126 1,60 1.16 1.59 IN 3.13 4.14
751h Percentile 0.95 1.14 1.38 1.010 1.22 1.75 2.83 401
grainPOrcent11 OM1 03 1.30 0.68 1.11 1.52 257 362
Long Term
Operating Fund *A 1.56 1As 1.93 0.81 1.94 2.84 3.66 464
Barclays GOWGred
1-5 Year lux IN 1.61 162 2.07 1.m 1.88 2.54 3.47 444
AL 1-5 G.WCorp ♦ 1.61 1 66 2.14 1.39 1.95 2.66 349 447
CAI Defensive Fixed-Inc Style(Gross)
Relative Return vs ML 1-5 Govt/Corp Annualized Seven Year Risk vs Return
2.0% 5.5%
4.5%
E t.o% _ __ _ __ __ __ __ 4.0%
05% all _ _ __ __ E3.5%
Of
e 0 3.0%
OIsi.0% 2.5%
en
iq--- --- - 2.0%
1.5%
(1.0%) _ __ __ __ _ __ __ i.o%
S%) 0.5%
2009 2010 2011 2012 2013 2014 2015 16 00 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
0 Long Term Operating Fund
Standard Deviation
L/'�,�11,�M
eash L Orange County sanitation District 18
Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a dsk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group.The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the manager's
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCO.
Performance vs CAI Defensive Fixed-Inc Style(Gross)
20%
15% ( 5y ( ( 1 1 )
15% 3 B B ] NA 14a &811] 0B(1N ®Bl A9 Bl 015 P1 7
(S%)
(10%) 1211S 3/10 M15 2014 2013 2012 2011 2010 2009 2008 2007
100 Percentile 1.50 1.10 1.50 1.20 446 2.]2 4.71 1374 6.63 ].03
25th Percentile 1.205 1.03 1.2] 0.80 2.60 2.28 4.02 8.60 5.64 6.83
Marian 1.01 0.90 1AI 065 1.81 187 3A9 591 3.88 645
75th Pementile 0.95 0.76 0,87 041 146 165 2,72 253 0.1]) 5.66
Dom Percentile 0.89 o" 0.70 031 0.92 1.44 2.41 1.82 34]) 3.75
Long Tenn
0pem8n9 Fund *A 1,56 0.85 198 (117) 3.06 4.59 442 552 5.37 7.21
Garcia,GoWCred
1-5 Year ldx •B 1.61 0.97 1.42 028 2.24 3.14 4.08 4.62 5.12 ].2]
ML1-5
GOWCOT ♦ 1.61 1.05 1.51 032 2.47 3.10 4.17 4.88 4,65 ].2]
Cumulative and Quarterly Relative Return vs MIL 1-5 GoWCorp
6%
4%
2%
K 0%
m
(4%)
G%)
(8%)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16
10 Long Term Operating FunM 0 Barclays GOWCred 1E Year Idx CAI Defensive F-1 We
Risk Adjusted Return Measures vs ML 1-5 Govt/Corp
Rankings Against CAI Defensive Fixed-Inc Style(Gross)
Seven Years Ended March 31,2016
5 :g
3 1:5
B((951 0
2 A110 )
0 {0.0 A 1 •6(64
A107 S
(11 Alpha Treyrwr 2"0 Informrtlon Sharpe Excess Return
RNIO RMie RMie Ratio
1 on Percentile 0.83 3.71 loth Percentile 1.35 208 0]]
25th Percantile 0.59 3.29 25th Percentile 0.98 1.94 0.32
Median 0.34 307 Micron 065 180 054)
]5th Percentile 0.21 2,83 ]5th Percentile 0.36 163 31 221
God,Percentile 0.04 2.61 son Percentile 0.09 1.49 1.40
Long Term Long Term
Opereting Fund •A (OAm 2.22 Operating Fund •A (0.46) 1.36 0.20
Barclays Gowcred Bercleys GOWCred
1-5 Year Idx ■9 (0 O5) 249 1-5 Year Idx as (OAS) 1.68 (0.92)
Callan orange County Sarkation District 19
Long Term Operating Fund
Bond Characteristics Analysis Summary
Portfolio Characteristics
This graph compares the managers portfolio characteristics with the range of characteristics for the portfolios which make up
the manager's style group. This analysis illustrates whether the manager's current holdings are Consistent with other
managers employing the same style.
Fixed Income Portfolio Characteristics
Rankings Against CAI Defensive Fixed-Inc Style
as of March 31,2016
5
30 • (5)♦
�(10)
2.5 •(7)
(21)
2.0
1.5 (46) E87)
9)
1.0
0.5
o.0 Avea90 EffectiveLoupon OA
Duration 'it. Yield Rate convexity
10th Percentile 2.20 2.54 2.53 2.88 0.09
25tn Percentile L88 2.06 1.75 2.19 005
Madan 1.80 1
.g3 1.37 2.00 0.03
75th Percentile 1.64 1.90 1.15 1.6T 002
9oth Percentile 1.52 1.60 0.95 1.42 0.01
Long Tam
Operating Fund • 2.48 2.58 1.40 1.52 -
3vdaya G.WCrad 1-5 Yr ♦ 2.73 2.87 1.27 2.24 OID
Sector Allocation and Quality Ratings
The first graph compares the managers sector allocation with the average allocation across all the members of the
manager's style.The second graph compares the manager's weighted average quality rating with the range of quality ratings
for the style.
Sector Allocation Quality Ratings
March 31,2016 > vs At Defensive Fixed-Inc Style
Toe Tray
US Tray
z-_---- �.s __- AM
RMBS >
Cora Ptwl 144A1 M. (24)
(27)
ASS M
Other AA
Cash
Aa
Tax-Exempt US Muni
CMOs A Weighed Average
Quality Rating
CMBS 10th Percentile MA
25th Percentile Mt
Median M
Gov Related 95th Percentile M-
90thPercentile A4
0% 10% 20% 30% 60% 50% 60% 70% 80% Long Term
Long Term Operating Fund CAI Defenarva Fuetl-Inc Syla Operating Fund • Ma
BandaysG Cmd 1-5 Yr Barclayyss
/'�,, 1,, GoWCreE 1-5 Yr ♦ Ma
Callan Orange County Sanitation Diatdct 20
Long Term Operating Fund
Portfolio Characteristics Summary
As of March 31, 2016
Portfolio Structure Comparison
The charts below compare the structure of the portfolio to that of the index from the three perspectives that have the greatest
influence on return. The first chart compares the two portfolios across sectors. The second chart Compares the duration
distribution.The last chart compares the distribution across quality ratings.
Sector Allocation
US Trey US Trey
33% 59%
CMBS
Other A11111111111W
1%
I%
Cash
2%
ABS /8% RMBS
Tax£xemyyt US Muni 27%
2% \ 40'. 13%
v Related
Corp 121%144A) C Corp 2]%144A)
1%
Long Term Operating Fund Barclays GoWCredit 1.5 Year
WeigMetl Average: Duration
Duration Distribution Long Term Opeadng Fund 2.88
50% ■ Bardays GoWC%dit 1-5 Year: 2.73
40% ———— yye
E
a 30%
`o v.z
Is
a
o%
o so o.a 01'a 1-2 2-3 3-5 S7 on n0
7-10 u n'10
Years Duration
W elgMed Average: Quality
Quality Distribution Lon,Tema Operating Fund AAe
100% ■ Bardaya GovVCredi11-5 Year: AAe
p80% ______ ___ ___ __ ___ ___ ___ __ ___ ___
ees
R 80% J-
- L ___ ___ __40% ___
m zg%
102
o%
APA M A BBB a.aBe B CCC oo o.o a o.occ.o a.a C D a.a as o.o NIR.n
Quality Rating
Callan Ore,e County Sanitation Disadd 21
Chandler-Liquid Operating Money
Period Ended March 31, 2016
Investment Philosophy
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Quarterly Summary and Highlights Quarterly Asset Growth
• Liquid Operating Money Net's portfolio posted a 0,12% Beginning Market Value $131,962,130
return for the quarter placing it in the 8 percentile of the MF- Net New Investment $-68,300,000
Money Market Funds Database group for the quarter and in
the 13 percentile for the last year. Investment Gains/(Losses) $127,370
• Liquid Operating Money Net's portfolio outperformed the Ending Market Value $63,789,500
Citigroup 3-Month Treasury Bill by 0.07%for the quarter and
outperformed the Citigroup 3-Month Treasury Bill for the
year by 0.09%.
Performance vs MF-Money Market Funds Database(Net)
2.5% 39( (13
2.0%
1.5%
1.0%
0)®(25
0.5%
0.0% (8) 25 (13 (13 19 1]
(0.5%) "at Otr Last Chandler "at 3Yrs Last 5Yrs Last 7Yrs LastlOYrs Last20.5Yrs
Yr Inception
10T Percentile 0.10 021 0.20 0,11 0,11 0.14 129 265
25M Percentile 0.05 008 0.07 0.04 0.03 0.0 1.17 2.51
Median 0.01 002 0.02 0.01 0.01 0.02 1.07 2.37
75M Peroantlls 000 001 ool 0,01 0,01 0.01 095 224
900,Percentile 000 000 000 0,00 0,00 0.m OB] 209
Liquid Oparating
Money Net • 0.12 O.11 0.15 0.03 0.03 0.08 LP 262
Ciligmup 3-Month
Treasury Bill ♦ 0.05 008 0,07 0.05 0.08 0.08 1.07 2.46
Relative Returns vs MF-Money Markel Funds Database(Net)
Citigroup 3-Month Treasury BIII Annualized Seven Year Risk vs Return
0.10% 3.5%
008% - -- -- -- -- -- -- 3.0%
006% 2.5%
E
= 004% 2.0%
f
y 0.02% iT 1s%
m
0.00% 6%
(0.04%) _ __ __ __ __ __ __ 0.0%
(0.06%) (0.5%)
2009 2010 2011 2012 2013 2014 2015 16 (0.5) 00 a5 10 15 20 25 30
/'�
■Liquid operating Money Net Standard Deviation
Callan OrelBrs County Sendation Doffid 22
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group.The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the manager's
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCO.
Performance vs MF-Money Market Funds Database(Net)
6%
5% 5o 18
4%
KI
3%
2% 60®38
1%
0%
(1%) 121153116 T015 2014 2013 2012 2011 2010 2009 2008 2007
10lh Per rdfle 0.10 0.12 007 009 0.19 0.08 0.15 Us 2.78 5.22
25th Percerble 0.85 0.04 002 0c2 0.03 003 005 029 2.46 5.01
Median 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.12 2.03 4.73
75th Pertendle 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.03 146 4.39
901h PertenMe 0.00 0.00 000 0.00 0.00 0.00 OW 001 1.08 3.99
Liquid Operating
Money Net 01 0.12 0.07 (0.06) (002) 0.02 0.09 0.10 0.43 2.25 5.09
Citigroup 3-100r41h
Treasury6111 ♦ 0.05 0.03 0.03 005 0.07 ON 0.13 0.16 1.80 4.74
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
of 0.5%
e
- 0.0%-
d
o%)
2006 2007 2000 2009 2010 2011 2012 2013 2014 2015 16
10 Liquid Operating Money Net 0Money McMat Fda Oa
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury BIII
Rankings Against MF-Money Market Funds Database(Net)
Seven Years Ended March 31,2016
0.a8 10
0.0 0
002 20)
0.00 (30)
(002) •135) (40)
(0.04)
(0.06) (50)
(0.08) Alpha Traynor (60) IMormation Sharpe Excess Return
Ratio Redo RMIe ILAI.
I on Percentile 0.05 001 With Percentile cW 0.54 1.05
250 Percentile 002 005 25N Percentile o- 11.33 0.84
Metlian 0.05 0.06 Metlian 1.84 5.12 2.29
15th Percentile 0 OS 0.06 ]5th Percentile 2.13 (20.03 2.55
90th Percenlge 0.08 (006) 90th Percentile (229) (50.43) 2.]5
Liquid Operating Liquid Operating
/'� 11
M,o..neeyy Nat • (O04) 0.04 Money Nat 0 (0.]0) (0.29) 0.06
Callan et
Orange County Sargation District 21
Callen Research/Education
CALLAN
INVESTMENTS
Callan INSTITUTE 1st Quarter 2016
Education
Research and Educational Programs
The Callan Investments Institute provides research that updates clients on the latest industry trends while helping them learn through
carefully structured educational programs.Visit www.callan.com/research to see all of our publications,or for more information con-
tact Anna West at 415.974.5060/institute@callan.com.
Recent Research
-- 2016 DC Survey&Key Findings Callan's Global Equity Benchmark Review This annual report examines
0 2016 DC Trends Survey highlights plan FTSE, MSCI, Russell, and S&P indices alongside Callan Active
�^mE® sponsors' key themes from 2015 and ex- Manager Style Groups.
wes''
>=" pectations for 2016;the Key Findings sum-
Hedge Fund Monitor,4th Quarter 2015 Our cover story,'David
--- madze the Survey.
versus Goliath:Sizing Up the Odds,'compares the respective ad-
Periodic Table & Periodic Table Collection Depicts annual in- vantages and challenges of smaller and larger hedge funds.
vestment returns for 10 major asset classes, ranked from best to
The Renaissance of Stable Value In this paper, we seek to
worst.The Collection includes 10 additional variations.
answer questions about stable value funds,and how they have
Spotlight:Six Key Themes Callan reflects on some of the ongo- evolved since the financial crisis.
ing trends within institutional investing and considers how they may
Real Assets Reporter,Winter/Spring 2016 In
develop in the coming year.
�' this issue, we look at implementing diversified
Inside Callan's Database,4th Quarter 2015 This report graphs Vilreal asset portfolios,focusing on a process that
performance and risk data from Callan's proprietary database — helps evaluate financial and operational risks,
alongside relevant market indices.
U.S.Equity Benchmark Review This annual report compares
Capital Market Review,4th Quarter 2015 Insights on the econo- CRSP, Russell,and S&P index metrics alongside Callan Active
my and recent performance in equities,fixed income,altematives, Manager Style Groups.
real estate,and more.
DC Observer,4th Quarter 2015 Cover story:In-Plan Annuities:
Market Pulse Flipbook,4th Quarter 2015 A quarterly reference The Stuff That Dreams Are Made Of?
guide covering investment and fund sponsor trends in the U.S.
The Costs of Closing: Nuclear Decommissioning Trusts In
economy,the capital markets,and defined contribution.
this video,Julia Moriarty discusses hedging costs,the impact of
October Regional Workshop Summary We reviewed real license extension, and more.
assets and the implementation implications of building out a
Private Markets Trends,Winter 2016 Gary Robertson summa-
robust real assets allocation in portfolios.
dzes the market environment, recent events, performance, and
Capital Market Projections This charticle summarizes key fig- other issues involving private equity.
ures from Callan's 2016 capital market projections.
The Center for Investment Training
Events Educational Sessions
Miss out on a Callan conference or workshop? Event summa- The Center for Investment Training, better known as the"Callan
des and speakers presentations are available on our website: College;provides a foundation of knowledge for industry profes-
https://w ..callan.com/education/Cll/ sionals who are involved in the investment decision-making pro-
Our next Regional Workshop,June 28 in Atlanta and June 29 cess.It"a founded in 1994 to provide clients and non-clients alike
in San Francisco,will consist of two separate one-hour presen- with basic to intermediate-level instruction.Our next session is:
tations given by our specialists.This year,we look at the impact Introduction to Investments
the Pension Protection Act has had on defined benefit and de- San Francisco, CA,July 19-20, 2016
fined contribution retirement plans a decade after its enactment, Chicago,IL, October 16-19, 2016
and look ahead to the next 10 years. This session familiarizes fund sponsor trustees, staff, and asset
Save the date for our fall Regional Workshop, October 25 in management advisors with basic investment theory,terminology,
New York and October 26 in Chicago,and our National Confer- and practices. It lasts one-and-a-half days and is designed for in-
ence,January 23-25,2017,at the Palace Hotel in San Francisco. dividuals who have less than two years of experience with asset-
management oversight and/or support responsibilities.Tuition for
For more information about events,please contact Barb Get- the Introductory "Callan College" session is $2,350 per person.
rely:415.974.50601 institute@callan.com Tuition includes instruction, all materials, breakfast and lunch on
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Customized Sessions
The 'Callan College" is equipped to customize a curriculum to
meet the training and educational needs of a specific organization.
These tailored sessions range from basic to advanced and can
take place anywhereeven at your office.
Learn more at https:ihw .callan.com/education/college/or
contact Kathleen Cu nnie:415.274.3029/can nie@callan.com
Education: By the Numbers
500 Attendees(on average)of the C O+ Unique pieces of research the
Institutes annual National Conference J Institute generates each year
300 Total attendees of the'Callan 1980 Year the Callan Investments
p College since 1994 Institute was founded
"We think the best way to learn something is to teach it.
Entrusting client education to our consultants and specialists
ensures that they have a total command of their subject
matter. This is one reason why education and research have
been cornerstones of our firm for more than 40 years:'
Ron Peyton,Chairman and CEO
Callan 9 @CallanAssoc ®Callan Associates
Definitions
Risk/Reward Statistics
The risk statistics used in this report examine performance characteristics of a manager or a portfolio relative to a benchmark
(market indicator) which assumes to represent overall movements in the asset class being considered. The main unit of
analysis is the excess return, which is the portfolio return minus the return on a risk free asset (3 month T-Bill).
Alpha measures a portfolio's return in excess of the market return adjusted for disk. It is a measure of the manager's
contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively
rewarded for the residual risk which was taken for that level of market exposure.
Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio's beta measures the
expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5,a 1 percent increase in
the return on the market will result,on average, in a 1.5 percent increase in the return on the portfolio. The converse would
also be true.
Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside
volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the
standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency
and magnitude of underperformance affect the amount of downside risk.
Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management
performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is
calculated by dividing the managers annualized cumulative excess return relative to the index by the standard deviation of
the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager's active risk/reward
tradeoff for diverging from the index when the index is mandated to be the"nskless"market position.
Information Ratio measures the manager's market risk-adjusted excess return per unit of residual risk relative to a
benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being
equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information
ratios will add value relative to the benchmark more reliably and consistently.
R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be
thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of.75 indicates that
75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio's
returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no
relationship exists between the portfolio's return and the market.
Relative Standard Deviation is a simple measure of a managers risk(volatility)relative to a benchmark. It is calculated by
dividing the manager's standard deviation of returns by the benchmark's standard deviation of returns. A relative standard
deviation of 1.20,for example, means the manager has exhibited 20% more risk than the benchmark over that time period.
A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade
fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling
time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark.
Residual Portfolio Risk is the unsystematic risk of a fund,the portion of the total risk unique to the fund(manager)itself and
not related to the overall market. This reflects the"bets"which the manager places in that particular asset market. These
bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager
considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that
portfolio.
Callan
28
Risk/Reward Statistics
Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-free" return
(usually 3 Month Treasury Bill)from the portfolio return and dividing the resulting"excess return" by the portfolio's risk level
(standard deviation).The result is a measure of return gained per unit of risk taken.
Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by
downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation,
however, lies in these two areas: (1)the statistical significance of the denominator,and (2) its reliance on the persistence of
skewness in return distributions.
Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their
sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is.
The wider the typical range of returns,the higher the standard deviation of returns,and the higher the portfolio risk. If returns
are normally distributed (ie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within
plus or minus one standard deviation from the sample mean.
Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two
measures of risk: market(non-diversifiable or systematic)risk and residual(diversifiable or unsystematic) risk. The purpose
of portfolio diversification is to reduce the residual risk of the portfolio.
Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a
portfolio's individual quarterly or monthly returns from the index's returns. Typically,the lower the Tracking Error, the more
"Index-like"the portfolio.
Traynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its
benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk
assumed.
Note:Alpha,Total Risk,and Residual Risk are annualized.
Callan
29
Fixed Income Portfolio Characteristics
All Portfolio Characteristics are derived by first calculating the characteristics for each security, and then calculating the
market value weighted average of these values for the portfolio.
Allocation by Sector- Sector allocation is one of the tools which managers often use to add value without impacting the
duration of the portfolio. The sector weights exhibit can be used to contrast a portfolio's weights with those of the index to
identity any significant sector bets.
Average Coupon-The average coupon is the market value weighted average coupon of all securities in the portfolio. The
total portfolio coupon payments per year are divided by the total portfolio par value.
Average Moody's Rating for Total Portfolio- A measure of the credit quality as determined by the individual security
ratings. The ratings for each security, from Moody's Investor Service, are compiled into a composite rating for the whole
portfolio. Quality symbols range from Aaa+ (highest investment quality-lowest credit risk)to C (lowest investment quality-
highest credit risk).
Average Option Adjusted(Effective)Convexity-Convexity is a measure of the portfolio's exposure to interest rate risk. It
is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally,securities with
negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in
duration. When a security's duration changes it indicates that the stream of expected future cash-flows has changed,
generally having a significant impact on the value of the security. The option adjusted convexity for each security in the
portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected
stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any
put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal
prepayments.
Average Option Adjusted(Effective)Duration- Duration is one measure of the portfolio's exposure to interest rate risk.
Generally, the higher a portfolio's duration, the more that its value will change in response to interest rate changes. The
option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and
Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate
scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected
sinking-fund paydowns or any expected mortgage principal prepayments.
Average Price-The average price is equal to the portfolio market value divided by the number of securities in the portfolio.
Portfolios with an average price above par will tend to generate more current income than those with an average price below
par.
Average Years to Expected Maturity- This is a measure of the market-value-weighted average of the years to expected
maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options
embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments.
Average Years to Stated Maturity- The average years to stated maturity is the market value weighted average time to
stated maturity,for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund
paydowns,or prepayments.
Current Yield-The current yield is the current annual income generated by the total portfolio market value. It is equal to the
total portfolio coupon payments per year divided by the current total portfolio market value.
Callan
30
Fixed Income Portfolio Characteristics
Duration Dispersion- Duration dispersion is the market-value weighted standard deviation of the portfolio's individual
security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations
relative to the total portfolio duration ('barbellness"), and the smaller the dispersion, the more concentrated the holdings'
durations around the overall portfolio's ('bulletness"). The purpose of this statistic is to gauge the 'bulletness' or
'barbellness'of a portfolio relative to its total duration and to that of its benchmark index.
Effective Yield-The effective yield is the actual total annualized return that would be realized if all securities in the portfolio
were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market
value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns,expected
mortgage principal prepayments,and the exercise of any"in-the-money"imbedded put or call options.
Weighted Average Life-The weighted average fife of a security is the weighted average time to payment of all remaining
principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This
amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of
the investment life for pass-through security types for comparison to non-pass-through securities.
Callan
31
Disclosures
Callan l
Quarterly List as of
March 31, 2016
List of Callan's Investment Manager Clients
Confiders al—Far Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously.We recognize that there are numerous potential conflicts of interest
encountered in the investment consulting industry and that it is our responsibility to manage those conflicts effectively and in the best interest of our
clients. At Callan,we employ a robust process to Identify,manage,monitor and disclose potential conflicts on an on-going basis.
The list below is an important component W our conflicts management and disclosure process. It identifies those investment managers that pay Callan
fees for educational,consulting software,database or reporting products and services. We update the list quarterly because we believe that our fund
sponsor clients should know the investment managers that do business with Callan,particularly those investment manager clients that the fund sponsor
clients may be using or considering using.Please refer to Callan's ADV Part 2A for a more detailed description of the services and products that Callan
makes available to investment manager clients through our Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting
Group. Due to the complex corporate and organizational ownership structures of many investment management fines,parent and affiliate firm
relationships are not indicated on our list.
Fund sponsor clients may request a copy of the mast currently available list at any time.Fund sponsor clients may also request speclfic information
regarding the fees paid to Callan by particular fund manager clients. Per company policy,information requests regarding fees are handled exclusively
by Callan'a Compliance Department.
Manager Name Manager Name —
13D Management Brown Brothers Harriman&Company '
1607 Capital Partners,LLC Gambier Investors,LLC
Aberdeen Asset Management PLC Capital Group —
Acadian Asset Management LLC CastleArk Management,LLC
AEGON USA Investment Management Causeway Causal Management
Affiliated Managers Group,Inc. Charles Schwab Investment Management
AllianceBernstein Chattel Investment Partners
Alllanz Global Investors Clear-Bridge Investments,LLC
Allianz Life Insurance Company of North America Cohen&Steers Capital Management,Inc.
Alphi Investment Services Columbia Management Investment Adviser ,LLC
American Century Investment Management Columbus Circle Investors
Amundi Smith Breeden LLC Corbin Capital Partners,L.P.
Analytic Investors Cornerstone Capital Management
Angelo,Gordon&Co. Cromer Rosenthal McGlynn,LLC
Apollo Global Management Crawford Investment Counsel,Inc.
AOR Capital Management Credit Suisse Asset Management
Ares Management LLC Coastline Investors,Inc.
Adel Investments,LLC DE Shaw Investment Management,LLC
Aristotle Capital Management,LLC Delaware Investments
Artisan Holdings DePrince,Race&Zollo,Inc.
Atlanta Capital Management Co.,LLC Deutsche Asset Management
Aviva Investors Americas Diamond Hill Investments
ANA Investment Managers Duff&Phelps Investment Mgmt.Co.
Babson Capital Management Eagle Asset Management,Inc.
Sainte Gill Overseas Limited EARNEST Partners,LLC
Baird Advisors Eaton Vance Management
Bank of America Epoch Investment Partners,Inc.
Baring Asset Management Fayez Samfim&Company
Baron Capital Management,Inc. Federated Investors
Baow,Hanley,Mewhinney It Strauss,LLC Fidelity Institutional Asset Management
BlackRock Fla.Capital Global Asset Management
BMO Asset Management,Corp. First Eagle Investment Management,LLC
BNP Paribas Investment Partners First Hawaiian Bank
BNV Mellon Asset Management Fisher Investments
Boston Partners Fort Washington Investment Advisors,Inc.
Brendes Investment Partners,L.P. Franklin Templeton Institutional
Brandywine Global Investment Management,LLC Fred Alger Management,Inc.
Callan I Knowledge.Experience.Integrity. Page 1 of 2
Manager Name Manager Name
Fuller&Thaler Asset Management,Inc. Opus Capital Management Inc.
GAM(USA)Inc. Pacific Investment Management Company
GE Asset Management Parametric Portfolio Associates
GMO Peregrine Capital Management,Inc.
Goldman Sachs Asset Management PGIM
Grand-Jean Capital Management PineBndge Investments
Guggenheim Investments Pinnacle Asset Management L P.
Guggenheim Real Estate LLC Pioneer Investments
GWBK Investment Management PNC Capital Advisors,LLC
Harbor Capital Group Trust Polish Capital Management
Hartford Funds Principal Global Investors
Hartford Investment Management Co. Private Advisors,LLC
Henderson Global Investors Putnam Investments,LLC
Hotchkis&Wiley Capital Management,LLC QMA(Quangtative Management
HSBC Global Asset Management BBC Global Asset Management
Income Research a Management,Inc. Regions Financial Corporation
Insight Investment Management Limited RidgeWorth Capital Management,Inc.
Institutional Capital LLC Rockefeller It Co.,Inc. r
INTECH Investment Management,LLC Rothschild Asset Management,Inc.
Invesco Russell Investments
Inveslec Asset Management Santander Global Facilities
Janus Capital Management,LLC Schroder Investment Management North America Inc.
Jensen Investment Management Scout Investments
J.P.Morgan Asset Management SEI Investments
K,Corp Seminole Advisory Services,LLC
Lazard Asset Management Smith,Graham&Co.Investment Advisors,L.P.
Legal&General Investment Management America Smith Group Asset Management
Lincoln National Corporation Standard Life Investments Limited
LMCG Investments,LLC Standish
Longview Partners State Street Global Advisors
Loomis,Bayles&Company,L.P. Stone Harbor Investment Partners,L.P.
Lord Abbett&Company Systematic Financial Management
Los Angeles Capital Management T.Rowe Price Associates,Inc.
LSV Asset Management- Tapir,Comes&Habacht
MacKay Shields LLC The Boston Company Asset Management,LLC
Man Investments Inc. The Hartford
Manulife Asset Management The London Company
Martin Come Inc. The TCW Group,Inc.
Mellon Capital Management Tri-Star Trust Bank
MFS Investment Management UBS Asset Management
MidFirst Bank Van Eck Global
Monddan Investment Padners Limited Versus Capllal Group
Montag&Caldwell,LLC Victory Capital Management Inc.
Morgan Stanley Investment Management Vonlobel Asset Management,Inc.
Mountain Lake Investment Management LLC Vey.Investment Management IN.ING)
MUFG Union Bank,N.A. Waddell&Reed Asset Management Group
Neuberger Berman WCM Investment Management
Newton Capital Management WEDGE Capital Management
Nicholas Investment Partners Wellington Management Company,LLP
Nikko Asset Management Co.,Ltd. Wells Capital Management
Nodhem Trust Asset Management Western Asset Management Company
Nuveen Investments,Inc. William Blair&Company
OR Global Asset Management
Old Mutual Asset Management
Callan I Knowledge.Experience.Integrity. Page 2 of 2
Investment Report
Orange County Sanitation District
Period Ending
March 31, 2016
Diego, CA 92121 1 Phone :0
All Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 1
Economic Update
o.
011 Economic Update
■ The Federal Open Market Committee (FOMC) left policy rates unchanged in March. The minutes from the March
FOMC meeting highlighted the debate among policymakers about the appropriate pace of monetary policy
normalization.Two Fed members (including the lone dissenter among voting members, Esther George) were pushing
for a 25 basis point rate hike at the March meeting. Meanwhile, other Fed members expressed concern about raising
rates too quickly. Several policymakers expressed the view that economic and financial conditions abroad posed risks
to the US economy and labor market. Some officials suggested that a rate hike in April might signal a sense of
urgency that was not appropriate, while others thought that a rate hike in April might be warranted. Meanwhile
policymakers also discussed whether inflation was approaching a normal pace or if it remained too weak. Based on
our view of the overall economy and our interpretation of recent comments made by members of the Fed, we believe
a fed funds rate hike at the upcoming April 26-27 FOMC meeting is unlikely. However, we believe the door remains
open for a 25 basis point hike in June, and potentially another 25 basis point hike at the end of this year.
■ Domestic economic data is generally favorable. Labor market trends continue to improve, consumer confidence is
strong, and housing trends remain healthy. In addition, manufacturing trends seem to be improving. Payrolls have
increased by an average of 209,000 per month over the past three months. Meanwhile, inflation pressures remain
contained. Fourth quarter 2015 GDP grew at a stronger than expected annualized pace of 1.4%, following growth of
2.0%in the third quarter. Market participants are forecasting GDP growth of about 1.2% in the first quarter of 2016.
■ In March, the Treasury yield curve steepened slightly, with the 2-year Treasury yield down five basis points and the 10-
year Treasury yield up three basis points. We believe the modest decline in shorter-term yields was influenced by
largely dovish comments made by members of the FOMC during the month. Even though inflation remains contained
for now, which gives the Fed more leeway to remain highly accommodative, we believe strong labor market trends
leave the door open for the Fed to continue normalizing monetary policy this year. We believe two more 25 basis point
fed funds rate hikes before year-end are possible. Ongoing uncertainty about monetary policy and how the Fed
communicates its economic projections will likely continue to fuel financial market volatility.
s
CiIII Employment
Nonfarm Payroll (000's) Unemployment Rate
350 15.0%
14.0% —UM—ployment Rab(U6)
300 13.0% —unempbyment Rate(U6)
w 12.0%
g 250
11.0%
200 u 10.0%
s 150 9.0%
U 8.0%
i
0 i W V 7.0%
50 6.0%
5.0%
0 4.0%
�+
44, `P'a % 01 44 `F% sBn, 4>a, 4 "En, gym, oan 4>a. 1"x
>a >a >a >a �>S >s $ >S >s �>a >a ;r '4 >S >S /S >S 76
Sw2 :USUe da n(&La6w Soule:US Ceps wto LaG r
The March employment report was stronger than expected. Nonfarm payrolls rose by 215,000 in March, exceeding the consensus
forecast of 205,000. January and February payrolls were revised down slightly by a net total of 1,000.The unemployment rate inched up
to 5.0%from 4.9%,as the participation rate increased to 63.0%from 62.9%. A broader measure of unemployment called the U-6, which
includes those whom are marginally attached to the labor force and employed part time for economic reasons, also ticked up to 9.8%
from 9.7%. Wages rose 0.3% in March, exceeding expectations. During the first quarter of 2016, payrolls increased by an average of
209,000 per month, compared to the trailing six-month average of 246,000. Overall, the March jobs report paints to ongoing strength in
the labor market.
llll�
CIR I Consumer
Retail Sales YOY % Change Consumer Confidence
6.0% 110
5.0% 105
m 4.0% 100
c -
u > 95
3.0%
9u 90
2.0% -
c 85
1.0% ik" 80
0.0% 75
y4 �p q4 410,
^'
J4 'i" Q J4 % �` 42'JS ��1.JS �S OBCL'S /. 1
44A Js �R /94 04 iI.S�9�J 41 /�S ' b4'�i/.6
Source: 76
US Department or Com . source:F aral Reserve
Retail sales trends remain underwhelming. On a year-over-year basis, retail sales were only up 1.7% in March, down from 3.7% in
February. Excluding gas, retail sales were up 3.3% in March, down from 5.4% in February. Retail sales decline 0.3%on a month-over-
month basis in March, below expectations for a 0.1% increase. Meanwhile, the consumer confidence index increased to 96.2 in March
from 94.0 in February. We believe ongoing improvement in the labor market and low gas prices should eventually provide a tailwind to
consumer spending.
s
GRI Economic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index
1 2% (CFNAI)
aso
1.0% 0.40
0.8% 0.30
u
0.6% R 0.20
i
� 0.4% < 0.10
n 0.00
0 0.2% 2
m -010
0.0
a20
42% AV -a30
-04% ,L q, 440
7R y2y,R No[c �5 'Yh�s 9.�5 7s 110
�kh
74 7Y )Q 71, 7$ 7S IS 7e 76
Source:the COMB .B.M Sourrz.'FeO l Reserve Bank or Chicago
The index of Leading Economic Indicators (LEI) rose 0.1% in February, following a 0.2%decline in January. On a year-over-year basis,
the LEI was up 2.3% in February vs. up 2.1% in January. The index points to modest economic growth with little chance of an economic
downturn in the near-term. The Chicago Fed National Activity Index (CFNAI) 3-month moving average improved to -0.07 in February
from -0.12 in January. Overall, this index is indicative of below-average economic activity. A reading below-0.70 on a 3-month moving
average basis has historically corresponded with the onset of a recession;fortunately the CFNAI remains safely above that level.
s
GRI Housing
Housing Starts S&P/CaseShiller20 City Composite Home
1400 4.0% Price Index
•Mull FaMly Houalrp 5@,ffi
1200 •Single Family Wu®np5hrb 120%
°u 1000 10.0%
g m
800 a 8.0%
L
F- U
600 a 6.0%
a >
c 400 of 4.0%
U
200 2.0%
f
0 0.0%
9s, yah �Ok 4jah qcw �'ok et, `4k "'1v 'Z4� 4xI 11a7 '�,1 "4" 4yv *1
74 IA �r �A 7S 7$ �S �S 76 4 A A 4 S S S S S
Souse:US Census Bureau Soumm S&P
Total housing starts rose 5.2% on a month-over-month basis in February, exceeding expectations. Single-family housing starts grew
7.2% while multi-family starts rose 0.8%. Housing starts tend to be volatile on a month-to-month basis, but the underlying trend is solid
with total housing starts up 30.9% on a year-over-year basis. Overall, we believe housing market trends remain healthy. Meanwhile,
home pricing has remained firm. According to the Case-Shiller 20-City home price index, home prices remained up 5.7% year-over-
year in January.
iiiiia
C1111 Manufacturing
Institute of Supply Management Purchasing Capacity Utilization
Manager Index 80.0%
so
Expanding 79.5%
58 An 79.0%
8.5%
78.0%
X 77.5%
77.0%
52 8 76.5%
6.0%
50 75.
CenlraNing
48 75.05%%
74.5%
46 74.0%
IA IA in �r 7e 70 lS IS I6 7A 7A IA 7S 7$ o 7e �6'
Scarce:Irnafifule for Supply Management Source:Federal Reserve
The Institute for Supply Management(ISM)manufacturing index rose to 51.8 in March from 49.5 in February, which puts the index above
the 50.0 breakeven level for the first time since last fall. The ISM new orders index surged roughly 7 points to 58.3 in March. Overall,the
ISM manufacturing report suggests that trends in the manufacturing sector are improving. Notably, a reading above 43.1 over a period
of fime is generally indicative of overall economic expansion, based on the historical relationship between the index and GDP growth.
Meanwhile, capacity utilization, which is production divided by capacity, declined to 74.8% in March from 75.3% in February. The
capacity utilization rate is much lower than the long-run average of 80.0% (1972-2015), suggesting there is still excess capacity in the
industrial sector.
�jjjj Gross Domestic Product (GDP)
Com,Ponents of GDP 3/15 6/is 9/is 12/15 Gross Domestic Product(GDP)
5.0%
Personal consumption Expenditures 1.2% 2.4% 2.0% 1,]%
4.0%
Gross Private Domestic Investment 1.4% 0.9% -0.1% -0.2% 3.0%
2.0
Net Exports and Imparts -1.9% 0.2% -0.3% -0.1%
1.0%
Federal Government Expenditures 0.1% 0.0% 0.0% 0.2% 0.0%
State and Local(Consumption and Gross -1.0% =GDP ODQ%Ch 6
Investment) -0.1% 0.5% 0.3% -0.1% _GDP rov%cnarge
Total 0.7% 3.9% 2.0% 1.4%
�4 �4
Source: US Dep..m Ior Commerce Sources: US DepaNnent of Conune2e
Fourth quarter GDP growth was revised up again to 1.4% from the second estimate of 1.0%. The initial estimate was 0.7%.A boost to
personal consumption expenditures was the primary source of the most recent upward revision. Market participants are forecasting
GDP growth of about 1.2% in the first quarter of 2016.
GRI Inflation
Consumer Price Index (CPI) Personal Consumption Expenditures
3.0% 3.0% (PCE)
CPI YOY%Change
2.5% Oeflator—Can CPI YOY%CM1ange 25% -PCE Core—PCE e rela YOY%CM1ange
w YOY%CM1e,ge
2.0% 0 2.0%
c O1
L 1.5% 1.5%
U
Y1.0% 1.0%
� 0.5% }
0.5%
0.0% 0.0%
-0.5% -45%
14 X 111141
� �. '2t 46. � Q1 �h +Ok Q5. �h �Ok �1.
49 �4 { O {+ �S �S 4S �S �6 �4 �9 14 �9 �S �S �S �S �6
Source:US Departnrent ofLaba Source:US Department of Labor
Inflation pressures remain contained for now. The Consumer Price Index (CPI) was up just 0.9% year-over-year in March, vs. 1.0% in
February. Core CPI (CPI less food and energy) was up just 2.2% year-over-year in March, vs. 2.3% in February. The Personal
Consumption Expenditures (PCE) index was up 1.0% year-over-year in February, vs. up 1.3% in January. Core PCE (excluding food
and energy)was up 1.7%year-over-year in February, unchanged from January. PCE remains below the Fed's 2.0%target.
GIII Bond Yields
US Treasury Note Yields US Treasury Yield Curve
3.0% 3.5%
2-Year Mar-18
svaar 2.5% 3.0% �oec-u
� m-year
�Marv15
2.0 2.5%
X a' 2.0%
v_ 1.5% a
Y 5: 1.5%
1.0%
1.0%
0.5%
0.5%
0.0% Al O� 0.0%
sy �asq ay l
l�4 �A 4A �R 4S � y�4S �S �S �6 O
00
Source:S mbe SoumeBlmnNierg
During the first quarter, the yield curve flattened with the 2-year Treasury yield down about 33 basis points and the 10-year Treasury
yield down about 50 basis points. Over much of the past year,financial market volatility has been elevated due to weak global economic
growth, declining commodity prices, and divergent global central bank monetary policy. These concerns will likely continue to fuel
financial market volatility over the medium-term.
IIIIIIIII�
. S=
Account Profile
011 Objectives
Investment Objectives
The investment objectives of the Orange County Sanitation District are first, to provide safety of principal to
ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all
operating requirements; and third, to earn a commensurate rate of return consistent with the constraints
imposed by the safety and liquidity objectives.
Chandler Asset Management Performance Objective
Liquid Operating Monies—will be compared to the 3-month T-Bill rate and operate with a maximum maturity
of one year.
Long-Term Operating Monies—will be compared to the Bank of America Merrill Lynch 1-5 Year Corporate
Government Rated AAA—A Index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent
with the investment policy and California Government Code.
Q11 Compliance
C/" Orange County Sanitation District Long Term
March 31,2016
COMPLIANCE •
Assets managed by Chandler Asset Management are in full compliance wth State lawand wth the investment policy
Comment
Treasury Issues 5 years maximum maturity Complies*
Supmnational "AA-or better by of NRSROs; 30%maximum; 5%max; 5years maturity, Complies
Includes only, IADB IBRD and IFC per CGC
U.S.Agencies 20%max issuer; 5 years maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maximum;5%max issuer; 5 Complies*
years max maturity
Municipal Securities W'or higher by l of 3 NRSROS;10%maximum; 5%max issuer; 5years maximum Complies*
maturity
Asset Backed/CMOs/ "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l of 3 NRSROS; 20% Complies*
Mortgage-backed maximum; 5%max issuer excludi MBS/ ovtagency);5 ars max maturity
Negotiable CDs "A"or better on its long term debt by l of NRSROs; "A1/P1"or highest short term Complies
ratings by of 3 NRSROs; 30%maximum;5%max issuer; 5 years max maturity
CDs/TDS 5%max issuer; 5years max maturity Complies
Bankers Acceptances A-1,or equivalent Nghest short term rating by l of 3 NRSROS; 40%maximum; 5% Complies
max issuer,180 days max maturity
Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by 1 of 3 NRSROs,if long term Complies
debt issued; 25%maxim um 5%max issuer 270 days max maturity
Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies
Repurchase Agreements 102%collatemlization Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
A reements
LAIF Not used by investment adviser Complies
Avg Duration Not tDexceed60months - (80%to 120%of the benchmark) Complies
Maxi mum Maturity 5years maximum maturity Complies*
'The portfolio has twentysevan(27)securities with methane.greater than 5 years Including one(1)ABS,five(5)CMOs,eighteen(18)MBS,one(1)municipal,one(1)
corporate antl one(1)treasury. All securities were inherited from the premws manager and complied at time of purchase.
11% Account Profile
Portfolio Characteristics
Orange County Sanitation District Long Term
03/31/2016 12/31/2015
Benchmark` Portfolio Portfolio
Average Maturity(yrs) 2.71 2.93 2.87
Modified Duration 2.59 2.48 2.42
Average Purchase Yield n/a 1.40 % 1.30 %
Average Market Yield 1.07 % 1.03 % 1.32 %
Average Quality— AAA AA+/Aar AA+/Aa1
Total Market Value 319,600,409 314,764,605
'BAML 1-5 Yr US CorporatelGovt Rated AAA-A Index
Benchmark is a blended rating of S&P,Moody's,and Fitch.PoMolio is S&P and Moodys respectively.
Multiple securities were purchased across the Treasury, Agency, Supranational, Asset Backed, Commercial Paper, and
Corporate sectors of the market to keep the portfolio structure and duration in-line with Chandler objectives. The
purchased securities ranged in maturity from June 2016 to March 2021. One security was sold and four matured to help
facilitate the additions to the portfolio.
J�" Sector Distribution
Orange County Sanitation District Long Term
March 31, 2016 December 31, 2015
Commercial us
paper -us rraa
Corporate
2.0% 19.8% MBS
Ca p%
21.2% 0.8%
Commercial
MuBl s Paper
Bontls 2.6%
1.5%
Municipal
Money ABS Balls
Markel 0.8% 1.5%
Funtl
% Money
1.6% Markel
Fund
CMO FI
% us us
Treasury CMO Treasury
32.9% 1.1% 35.4%
6%
A65 %6
.0 0%%
Supranational i- - Supranational
Ag.r 47% Agency 4.1%
26]% 23 9%
The sector allocation was relatively stable. Some of the larger changes include the 2.8% increase in the Agency
allocation to 26.7% of the portfolio, partially offset by the 2.5% decline in the Treasury allocation, to 32.9% of the
portfolio.
Issuers
C/" Orange County sanitation District Long Term Issuer Report
Account810268 Aacf WM2016
Government of United States US Treasury 32.85%
Federal Home Loan Bank Agent, 9.62%
Federal Home Loan Mortgage Corp Agency 8.64%
Federal National Mortgage Association Agent, 8A2%
Toyota ABS ABS 2.62%
Honda ABS ABS 2.15%
John Deere ABS ABS 2.01%
Bank ofTokyo-Mit UFJ Commercial Paper 1.99%
Wells Fargo Corp US Corporate 1.76%
1P Morgan Chase&Co US Corporate 1.71%
Toyota Motor Cory US Carpnrve 1.63%
General Electric Co US Corporate 1.62%
Qualcomm Inc US Corporate 1.62%
Drefus Treasury MMKT FD 521 Money Market Food FI 1.61%
Deere&Company US Corporate 1.60%
International Finance Carp Supranational 1.59%
Into.American Dev Bank Summational 1.57%
Intl Bank Recon and Development Summational 1.57%
Bank ofAmeriea Corp US Corporate IA7%
HSBC USA Corp US Corporate 1.33%
Honda Motor Corporation US Corporate L28%
Eli Lilly&Cc US Corporate 128%
CtawmaTexacu Corp US Corporate 1.25%
Morgan Stanley US Corporate 1.01%
American Express Credit US Corporate 1.00%
Pon Authority of New York and New Jersey Municipal Bonds 0.38%
JP Morgan ABS ABS 0.78%
Federal Home Loon Mortgage Corp CMO 0.73%
Bank of New York US Corporate 0.68%
Federal National Mortgage Association MBS 0.66%
Intel Corp US Corporate 0.63%
Occidental Petroleum Corporation US Corporate 0.63%
New York City Transitional Finance Authority Municipal Bonds OAS%
KI Issuers Continued
CIAOrange County Sanitation District Long Term Issuer Report
Account#10268 As of 313IW6
Exxon Mobil Carp US Corporate 0.48%
Goldman Sachs loc. US Cmpmarc 020%
Federal National Mortgage Associmion CMO 0.17%
NCUA Guaranteed Notes CMO 0.15%
University ofCalifomia Municipal Bonds 0.14%
GNMA MBS 0.09%
AMRESCO Residwaal Securities Corp MBS 0.04%
Small Business Administration ABS 0.03%
GNMA CMO 0.01%
SLM Corp ABS 0.01%
Soundview Home Equity Loan Trust MBS 0.00%
Federal Home Loan Mortgage Corp MBS 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
March 31, 2016 vs. December 31, 2015
room
80.0%
60.0%
40.0%
20.0%
0.0%
AAA AA A �A NR
3131116 12/31/15
AAA AA A <A NR
3131116 12.0% 70.4% 10.2% 3.5% 3.9%
12/31/15 13.8% 69.9% 8.5% 4.2% 3.6%
Source:S&P Ratings
" Duration Distribution
Orange County Sanitation District Long Term
March 31, 2016 vs. December 31, 2015
25.0%
20.0%
15.0%
10.0%
5.0%
0.-
0-0.25 025-0.50 0.50-1 1-2 2-3 3-3 6-5 5,
MIM16 = 12/312015
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
3/31116 7.0% 5.5% 9.7% 24.4 % 12.2% 24.2% 13.8% 3.3%
12131/15 13.8% 1.2% 11.1 % 20.9% 13.8% 23.4% 12.2% 3.6%
" Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of March 31, 2016
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
0-0.25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5+
�Palfdb � Berlphinerk'
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
Portfolio 7.0% 5.5% 9.7% 24.4% 12.2% 24.2% 13.8% 3.3%
Benchmark' 0.9% 0.1 % 4.1 % 30.7% 27.0% 22.5% 14.6% 0.0%
BAML 1-5 Vr US CorporatelGov Rated AAA-A Index
The duration of the portfolio modestly extended, currently 2.48 versus 2.42 at the end of the prior reporting period. The
Chandler team anticipates keeping the duration of the portfolio close to the benchmark in the coming quarter as global
economic uncertainty and central bank policy abroad is likely to keep any move higher in US interest rates contained.
-j Investment Performance
Orange County Sanitation District Long Term
Period Ending
March 31, 2016
Total Rate of Return
Annualized Since Inception
November 30,2014
2.00%
1M%
1.00%
0.50%
0.00%
12 morons 2yesm 3years 5years 10 years Since inception
ii Orange County Sanitation District Lang Term ii SAW 1-5 Yr US Corporate/Govt Rated AAA-A Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since Inception
Orange County Sanitation District Long Term 1.54% 1.58% N/A N/A N/A N/A 1.63%
BAML 1-5 Yr US Corporatei Rated AAA-A Index 1.56% 1.68% N/A N/A N/A N/A 1.74%
Total rate of retum:A measure of a portfolio's performance over time. It is the internal rate of return,which equates the beginning value of the portfolio with the ending value;it
includes interest earnings,realized and unrealized gains and losses in the portfolio.
Compliance
OROrange County Sanitation District Liquid
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Managementare in full compliance wM State lawand with me investment policy
Category Standard Comment
Treasury Issues l year maximum maturity; Minimum allocation of 10% Complies
Supranational "AA"or better by l of 3 NRSROs; 30%maximum; 5%max: 1 Complies
war maturity; Includes only, IADB BIRD,and IFC per CGC
U.S.Agencies 20%max issuer, l year maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs;30%maximum; Complies
5%max issuer 1 war max maturity
Asset Backed/CMOs "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies
of NRSROs; 20%maximum; 5%max issuer, 1year max
maturity
Negotiable CDs "A"or better on its long term debt by l of NRSROs; "A1/P1"or Complies
highest short tens rabrigs by 1 of 3 NRSROs; 30%maximum;5%
max issued War max matui
CDs/TDS 5%max issuer, l year max maturity Complies
Bankers Acceptances A-1,or equivalent short term rating by l of 3 NRSROS; 40% Complies
maximum; 5%max issuer'180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of Complies
NRSROs,if long term debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highest rating by of 3 NRSROs; 20%maximum;10%max issuer Complies
Repurchase Agreements 102%collateraliation Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used by investment adviser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avg Duration Notto exceed 180 days; Max duration of 1/2 year Complies
Maximum Maturity 1 year maximum maturity Complies
11% Account Profile
Portfolio Characteristics
Orange County Sanitation District Liquid
03/31/2016 12/31/2015
Benchmark` Portfolio Portfolio
Average Maturity(yrs) 0.13 0.27 0.21
Modified Duration 0.13 0.27 0.21
Average Purchase Yield n/a 0.58 % 0.38
Average Market Yield 0.14 % 0.46 % 0.41 %
Average Quality— AAA AA+/Aar AAA/Aai
Total Market Value 63,791,781 131,961,724
'BAML 3-Month US Treasury Bill Index
Benchmark is a blended rating of S&P,Moodys,and Fitch.POMolio is S&P and Moodys respectively.
Many securities were purchased across the Treasury, Agency, Supranational, Commercial Paper, and Corporate sectors
of the market to redeploy proceeds generated in the account versus upcoming forecasted liquidity needs. Multiple
securities matured as well to help facilitate the$68 million withdrawn from the portfolio during the reporting period.
�Jj Sector Distribution
Orange County Sanitation District Liquid
March 31, 2016 December 31, 2015
Money Commercial
us Varket 'Paper
Corporate Rmtl 6.4%
142%� Fi
98,
us
corporate
Co nmercial us tos%
Paper Treasury
39% 409%
us
Treasury
31.1%
Money /
Market Negotiable Agency
Fund CD 39.3%
FI 1.6% Negallabla
6.6%
CD
/ 0.8%
Agency Supranational
21.1% 11.6% Supranational
1.9%
The sector allocation changed materially primarily driven by the large cash outflows experienced during the quarter.
Some of the large changes include the 9.8%and 9.9% increase in the Treasury and Supranational allocations, offset by
the 18.2%decline in the Agency allocation.
Issuers
C1" Orange County Sanitation District Liquid Issuer Report
Account#10282 As o(313112016
Govemment of United States US Treasury 40.98%
Federal Home Loan Bank Agency 16.27%
Drefus Treasury MMKT FD 521 Money Market Fund Fl 659%
Intl Bank Recon and Development S.Im national 3.93%
International Finance Corp Supranational 3.93%
Inter-American Dev Bane Supramniorel 3.92%
Federal Home Loan Mortgage Corp Agency 3.13%
Bank of TokywMit UFJ Commeaial Paper 2.00%
Toyota Motor Corp Commercial Paper 1.88%
Federal Farm Credit Bank Agency 1.69%
US Bancorp US Corporate 159%
Bank of New York US Corporate I58%
Berkshire Hathaway US Corporate 158%
Honda Motor Corporation US Corporate 158%
Deere&Company US Corporate 158%
General Electric Co US Corporate 1.58%
Coca We Co. US Corporate IS8%
Wells Fargo Corp US Corporate 157%
JP Mown Chase&Co US Corporate 1.57%
Rabobank Nederland NY NY Negotiable CD 157%
Total 100.00%
Quality Distribution
Orange County Sanitation District Liquid
March 31, 2016 vs. December 31, 2015
100.0%
80.0%
60.D%
40.0%
20.0%
0.0%s
AAA AA A <A NR
3131116 12131115
AAA AA A <A NR
3131116 41.3% 47.6% 9.5% 0.0% 1.6%
12/31/15 67.7 % 23.1 % 8.5% 0.0% 0.8%
Source:S&P Ratings
AR Duration Distribution
Orange County Sanitation District Liquid
March 31, 2016 vs. December 31, 2015
600%
60.0%
40.0%
20.0%
0.0%--]-
0-0.25 025-0.50 0.50-1 1-1.5 1.5-2 2-2.5 2.5-3 3+
MIM16 = 12/312015
0-0.25 0.25-0.50 0.50-1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
3/31116 63.2% 30.5% 6.3% 0.0% 0.0% 0.0% 0.0% 0.0%
12131/15 69.9% 19.4% 10.7% 0.0% 0.0% 0.0% 0.0% 0.0%
" Duration Distribution
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark as of March 31, 2016
120.0%
100.0%
KID%
60.0%
a0.0%
20.0%
0.0%
0-0.25 0.25-050 0.50-1 1-1.5 1.5-2 2-2.5 2.5-3 3+
=Povdio Benchmark'
0-0.25 0.25-0.50 0.50-1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
Portfolio 63.2% 30.5% 6.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Benchmark' 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
`BAML 3-Month US Treasury Bill Index
The duration of the portfolio extended modestly, currently 0.27 versus 0.21 at the end of the prior reporting period.
-j Investment Performance
Orange County Sanitation District Liquid
Period Ending
March 31, 2016
Total Rate of Return
Annualized Since Inception
November 30,2014
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%-
0.00%
12 maneu 2 years 3 years 5 years 10 years Since Incepbon
Orange County Sanitation District Liquid BAML 3Monih US Treasury Bill Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since Inception
Orange County Sanitation District Liquid 0.17% 0.33% N/A N/A N/A N/A 0.30%
BAML 3-Month US Treasury Bill Index 0.07% 0.12% N/A N/A N/A N/A 0.10%
Total rate of retum:A measure of a portfolio's performance over time. It is the internal rate of return,which equates the beginning value of the portfolio with the ending value;it
includes interest earnings,realized and unrealized gains and losses in the portfolio.
Compliance
OROCSD Lehman Exposure
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by ChandlerAsset Management are in full compliance auto State lawand wth the investmentpolicy
Category Standard Comment
Treasury issues 5 years maximum maturity Complies
Supmnational "AA'or better by l of 3 NRSROs; 30%maximum; 5%max; 5 Complies
are matui ; Includes on . LADB IBRD,and IFC per CDC
U.S.A encies 20%max issuer, 5 years maximum maturity Complies
U.S.Corporate(MINs) "A"or better long term rating by l of 3 NRSROs; 30%maximum; Complies"
5%maxlesuer 15yearamaxnnatunty
Municipal Securities "A"or higher by l of 3 NRSROS;10%maximum; 5%max Issuer, Complies
5 years maximum maturity
Asset Backed/CMOs/ "AA"or better by l of 3 NRSROs; "A"or higher issuer had rig by l Complies
Mortgage-backed of NRSROs; 20%maximum; 5%max issuer(excluding
MBS/ ovta en ;5 years max maturty
Negotiable CDs "A"or better on its long term debt by l of 3 NRSRCs; "A1/P1"or Complies
highest shalt tend ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer; 5 years max malunty
CDs/TDS 5%max issuer, 5 years max matunty Complies
Barkers Acceptances A-1,or equivalent highest short term rating by l of 3 NRSROS; Complies
40%maximum; 5%max issuer,180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by of Complies
NRSROs,if long tens debt issued; 25%maximum; 5%max
issuer; 270 days max maturity
Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies
Repurchase A reements 102%collatemlidtation Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used by investment adviser Complies
Avri Duration Not to exceed 60 months - 80%to 120%of the benchmark Complies
Maximum Maturity 5 years maximum maturity Complies
'Account holds$2 million side value euelp 525ESMY6)and$600,000 side clue(cusip 525ESG 187)of desiulted Lehman Bode Holdings that were
purchased by the predous manager. Complied at time of pumhase.
IA Account Profile
Portfolio Characteristics
OCSD Lehman Exposure
03/31/2016 12131/2015
Portfolio Portfolio
Average Maturity(yrs) 19.28 21.60
Modified Duration 0.00 0.00
Average Purchase Yield 0.00 % 0.00
Average Market Yield 0.00 % 0.00 %
Average Quality— NR/NR NR/NR
Total Market Value 136,292 170,034
Portfolio is S&P and Mows respectively.
SECTION 3
i
Consolidated Information
IA Account Profile
Portfolio Characteristics
Orange County Sanitation District Consolidated
03/31/2016 12131/2015
Portfolio Portfolio
Average Maturity(yrs) 2.49 2.09
Modified Duration 2.11 1.77
Average Purchase Yield 1.26 % 1.02 %
Average Market Yield 0.93 % 1.05 %
Average Quality— AA+/Aai AA+/Aa1
Total Market Value 383,528,483 446,896,363
Portfolio is S&P and Mows respectively.
J�" Sector Distribution
Orange County Sanitation District Consolidated
March 31, 2016 December 31, 2015
us Commercial us
Caparote MBS Paper Coryorate
20.1% OJ% 3.7%\ -17.1%
Comore ciM '
Paper Municipal MBS
2.3% us Bonds 0A%
Treasury 1.0%
Munic" 342% Money
Bonds
1.3% Market u5
Fund Treasury
Money CD Negotiable Fl 8.2% 34.1%
Me*
Fu l 0.3%
FI CMO 1 NegoBable
0.8% CD
0CMOA% /0.2%
0.9% Common
Stock
0.0% ABS Cannon
ABS 4.3% Stock
6.3% 0.0%
Supranational
Agency 5.9% Agency Supwabonal
25.7% 20.4% 3.5%
SECTION 4
Portfolio Holdings
C�" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Da:a Cost Va:u: Mkt Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Int. Gain/Loss Fitch Duration
ASS
43813JAC9 Honda Auto Receivables 2014-1 A3 2,761,268.83 01/22/2015 2,752,855.60 99.88 2,758,005.01 0.86% Arm INR 1.64
0.67%Due 11/21/2017 0.90% 2,758,068.41 0.97% 513.90 (63.40) AAA 0.40
89231 MAC9 Toyota Auto Receivables Owner 2014-A 2,584,623.14 0112112015 2,579,272.16 99.87 2,581,214.02 0.81 % Aaa IAAA 1.71
0.67%Due 1211512017 0.90% 2,582,466.44 1.00% 769.64 (1,252.42) NR 0.40
89231TAB6 Toyota Auto Receivables Owner 2015-C 2,195,000.00 0811812015 2,194,823.52 99.90 2,194,563.19 0.69% Aaa/AAA 1.88
0.92%Due 2115/2018 0.93% 2,194,866.27 0.96% 897.51 (303.08) NR 0.47
43814GAC4 Honda Auto Receivables 20142 A3 1,556,850.60 04/08/2015 1,555,755.95 99.84 1,554,397.00 0.49% Asia IAAA 1.97
0.77%Due 311912018 0.83% 1,556,261.83 1.04% 432.89 (1,864.83) NR 0.58
43814NAB1 Honda Auto Receivables 2016-1 A2 2,565,000.00 0211612016 2,564,743.76 99.93 2,563,214.76 0.80% NR/AAA 2.22
1.01%Due 6/18/2018 1.02% 2,564754.69 1.09% 935.51 (1,539.93) AAA 0.89
161571GC2 Chase CHAT Pool#2013-A8 2,600,000.00 01/07/2016 2,499,121.10 100.07 2,501,720.00 0.78% Asia IAAA 2.54
1.01%Due 10/1512018 1.03% 2,499,190.92 OA8% 1,122.22 2,529.08 AAA 0.52
4118nAD6 John Deere Owner Trust 2014-B A3 4,000,000.00 02/0412015 4,001,875.00 99.9E 3,998,256.00 1.25% Aaa/NR 2.63
1.07%Due 1111512018 1.05% 4,001,100.87 1.13% 1,902.22 (2,844.87) AAA 0.79
89236WAC2 Toyota Auto Receivables Owner 201 SA 3,595,000.00 0212412015 3,594,456.44 100.06 3,597,239.69 1.13% Asia IAAA 2.88
1.12%Do.2115/2019 1.13% 3,594,654.92 1.07% 1,789.51 2,684.]] NR 1.12
47788MAC4 John Deere Owner Trust 201&A A3 2,420,000.00 02123/2016 2,419,619.09 99.91 2,417,899.44 0.76% Ass/NR 4.04
1.36%Due 411512020 1.37% 2,419,626.68 1.41% 1,462.76 (1,727.24) AAA 2.09
83162CUO Small Business Administration 2001-20C 91.130.0E 031M12001 91,130.06 107.90 98,324.78 0.03% Aaa/AA- 4.92
6.34%Due 3/V2021 6.34% 91,130.06 3.60% 481.47 7,19472 AAA 2.53
784 WAA5 SLMA 2008-9A 41,368.03 MIU/2008 41,200.20 98.88 40,905.49 0.01 % Ann/AA+ 7.07
2.121%Due 4/2512023 2.22% 41,339.33 2.44% 163.32 (433.8,1) AAA 0.02
24,294,852.88 2A,305,739.38 7.61 % Aaa I AAA 2.45
Total ASS 24,310,240.66 1.05% 24,303,460.42 1.08% 10,470.95 2,278.96 As. 0.83
AGENCY
3135GOES8 FNMA Note 4,000,000.00 06/1112015 4,044,200.00 1N.53 4,021,136.00 1.26% Aaa/AA+ 0.63
1.375%Due 11/15/2016 0.60% 4,019,305.75 0.52% 20,777.78 1,830.25 AAA 0.62
3137EADUO FHLMC Note 5,000,000.00 0111612015 4,991,050.00 those 4,994,455.00 1.%% Aaa/AA- 0.83
0.5%Due 112712017 0.59% 4,996,349.66 0.64% 4,444.44 (1,894.66) AAA 0.82
313379FW4 FHLB Note 5,000,000.00 05/2212015 5,025,100.00 100.37 5,018,725.00 1.5B% Aaa/AA+ 1.19
1%Due 619/2017 0.75% 5,014,622.01 0.68% 15,555.56 4,102.99 AAA 1.18
3137EADVB FHLMC Note 5,000,OODAO M12512015 4,994,250.00 1o0.D4 5,001,790.00 1.57% Aaa/AA+ 1.29
0.75%Due 711412017 0,81% 4,996,399.53 0.72% 8,020.83 5,390.47 AAA 1.28
3137EADN6 FHLMC Note 5,000,000.00 0112312015 4.967,500.00 99.96 4,998,225.00 1.57% Aaa/AA+ 179
075%Due 111212018 0.97% 4,980,445.93 0.77% 8,229.17 17,779.07 AAA 176
3137EADP1 FHLMC Note 5,000,000.00 01/1312015 4,974,100.00 100.15 5,007,470.00 1.57% Asia/AA+ 1.93
0.875%Due 3912018 1.04% 4,984,094.51 0.80% 2,916.67 23,375.49 AAA 1.91
313378A43 FHLB Note 7,500,000.00 0211112015 7,544,850.00 101.10 7,582,350.00 2.37% Asia/AA+ 1.94
1.375%Due 319/2018 1.18% 7.528,286.31 0.80% 6,302.08 54,063.69 AAA 1.91
Chandler Asset Management-CONFIDENTIAL 37
C�" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Da:a Cost Va:u: Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
"Cy •
3135GOG72 FNMA Note 5,000,000.00 12/18/2015 4,963,950.00 100.63 5,031,335.00 1.58% Ann/AA+ 2.71
1.125%Due 12/14/2018 1.37% 4,967,326.58 OS9% 16,718.75 64,008.42 AAA 2.65
3133782M2 FHLB Note 7,500,000.00 Various 7,589,190.00 101.66 7,624,215.00 2.39% Aaa/AA+ 2.94
1.5%Due WW2019 1.14% 7,576,557.53 0.93% 7,181.50 47,657.47 AAA 2.87
3135GUGI FNMA Note 5,000,000.00 1211512014 5.021,500.00 102.48 5,124,030.00 1.60% Aaa/AA+ 3.45
1.75%Due 911212019 1.66% 5,015,637A9 1.02% 4,618.06 108,392.61 AAA 3.34
3137EADM8 FHLMC Note 7,500,000.00 Various 7,399,650.00 lm.43 7,532,287.50 2.37% Aaa/AA+ 3.51
1.25%Due 101212019 1.61% 7,407,739.27 1.12% 46,614.58 124,548.23 AAA 3.40
313383HU8 FHLB Note 5,000,000.00 M11312015 5,008,950+00 102.03 5,101,255.M 1.60% Aaa/AA+ 4.20
1.75%Due 6/12/2020 1]1% 5.007,777.98 1.25% 26,493.06 93,477.02 NR 4.02
3135GOD76 FNMA Note 5,000,000.00 11/16/2016 4,956,660.00 101.10 5,055,215.00 1.59% Aaa/AA+ 4.23
1.5%Due 6/22/2020 1.70% 4,959,242.38 1.23% 20,625.00 95,972.62 AAA 4.07
3135GOH3 FNMA Note 7,500,000.00 Various 7,370,726.00 101.00 7,575,052.50 2.38% Aaa/AA+ 4.67
1.5%Due II/W/2020 1.87% 7,378,335+42 1.28% 37,812.50 196,717.08 AAA 4.47
313OA7CV5 FHLB Note 5,365,000.00 0211712016 5,343,32SAO 100.04 5,367,140.64 1.68% Aaa/AA+ 4.89
1.375%Due Dl W2021 1.46% 5,343,835.53 1.37% 8,811.27 23,305.11 AAA 4.70
84,193,991.40 85,034,681.64 26.68% Aaa I AA+ 2.79
Total Agency 84,366,000.011 1.26% 84,175,955.88 0.95% 235,127.25 858,725.76 Aaa 2.70
CMO
628881JAA8 NCUA Guaranteed Note CM02010-R2 479,950.17 11/10/2010 479,947.99 99.90 479,455.82 0.15% Ass/AA+ 1.60
0.804%Due 11/6/2017 0.00% 479,947.99 0.88% 270.05 (492.17) NR 0.08
31398VJ98 FHLMC FHMS K006 A2 900,000.00 1112312010 951,046.88 109.61 986,446.80 0.31 % Aaa/AA+ 3.82
4.251%Do.1/25/2020 3.02% 921,279.71 1.48% 637.65 65,167.09 AAA 3.39
3837H4NX9 GNMA PooI#2000-9 42,440.13 0112412000 42,440.13 100.35 42,587.82 0.01 % Aaa/AA+ 13.89
0.94%Due 211612030 0.94% 42,440.13 0.72% 33.06 147.69 AAA 0.03
3133TCE95 FHLMC FSPC E3 A 61,969.65 03/11/1998 62,023S5 104.27 64,605.91 0.02% Aaa/AA+ 16.39
2.976%Due 811512032 2.94% 61,989+47 1.37% 153.66 2,616.44 AAA 1.99
31396X305 FNMA FNR 2007-114 A6 114,603.69 0111012008 109,016.77 99.56 114,094.39 0.04% Aaa/AA- 21.59
0.635%Due 10/27/2037 0.98% 110,557.05 0.85% 8.09 3,537.341 AAA 0.60
31397QRED FNMA FNR 20113 FA 426,845.37 12/20/2010 426,711.99 100.83 430,379.65 0.13% Ass/AA+ 24.92
1.115%Due 2125/2041 1.11 % 426,734.94 0.90% 79.32 3,64 11 AAA 0.08
313WY35 FHLMC FSPC TS82A 1,074,384.63 MIN12011 1,216,740.57 117.71 1,264,668.89 0.40% Aaa/AA+ 27.50
6.5%Due 912512043 5,40% 1,195,576+13 2.72% 1,163.92 69,092.76 AAA 4.62
3,287,927.68 3,382,239.28 1.06% Aaa l AA+ 16.01
Total CMO 3,100,182.54 3.10% 3,238,525,42 1]5% 2,345.75 143,713,86 Aaa 2.80
Chandler Asset Men,annenl-CONFIDENTIAL 38
OROrange County Sanitation District Long Term Holdings Report
Account g70268 As of 3/31/16
Purchase Da:a Cost Va:u: Mkt Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Int. Gain/Loss Fitch Duration
COMMERCIAL PAPER
06538BFQ1 Bank of Tokyo Mitsubishi NY Discount 6,370,000.00 02/25/2016 6,355,260.53 99.84 6,359,595.E 1.99% P-1 IA-1 0.23
CP 0.71 % 6,359,595.67 071 % 0.00 0.00 F-1 0.23
0.7%Due 6/24/2016
6,355,260.53 6,359,595.67 1.99% P-1/A-1 0.23
Total Commercial Paper 6,370,000.00 0.71% 6,359,595.67 0.71% 0.00 0.00 F-1 0.23
MSS
31381PDA3 FNMA FN 466397 365,404.83 12/01/2010 357,497,25 107.29 392,060.38 0.12% Asa IAA+ 4.59
34%Due 11/1/2020 3.80% 361743.91 168% 241.E 30,31647 AAA 4.09
362250A9 GNMA Pool#G280023 27,96,tS5 08/08/1997 28,428A2 10379 29,025.77 0.01 % Asa/AA+ 10.73
1.625%Due 12I20Q026 1.52% 28,134.28 1.71% 37.87 891A9 AAA 4.90
36225CC20 GNMA Pool#G280088 31,925.38 08/11/1997 32,623.76 102.79 32,817.38 0.01 % Aaa/AA+ 1t23
2%Due 612012027 1.86% 32,188.09 1.50% 53.21 629.29 AAA 3.44
31348S1NZ3 FHLMC FH 786054 2,601.76 0211812NO 2,53BAO 103.41 2,690.55 OAO% Aaa/AA+ 11.76
2.757%Due 1/112028 2.95% 2,575.03 2.32% 5.98 115.52 AAA 0.72
31371NUC7 FNMA FN 257179 31,625.75 12/05/2011 33,341.67 108.74 34,280.22 0.01 % Aaa/AA+ 12.01
4.5%Due 4/1/2028 3.72% 32,862.23 1.67% 118.22 1,417.99 AAA 3.28
3141TYAY3 FNMA Pool#FN MA0022 36,618.90 12/05/2011 38,728+06 108.74 39,810.37 0.01 % Me/AA+ 13.01
4.5%Due 411/2029 3.76% 38,203.44 i.TT% 137.32 1,614.93 AAA 3.39
313BEGOF6 FNMA FN AL0869 23,539.21 1210512011 24,895.03 108.74 25,595.88 0.01 % Aea/AA+ 13.18
4.5%Due 6/1/2029 3.77% 24,561.02 1.79% 20.60 1,034.86 AAA 3.26
03215PFN4 AMRESCO Residential Secunt es 1999-1 133,743.29 05/20/2011 100,432.86 85.68 114,585.90 0.04% NR I AA+ 13.24
A 4.88% 109,376.81 2.83% 35.76 5,209.09 BBB 10.82
1.375%Due 612512029
36225CNM4 GNMA Pool#G280395 11,326.18 03/15/2000 11,223.51 102.61 11,621.48 0.00% Aaa/AA+ 14.06
1.75%Due 4/20/2030 1.81 % 11,277.94 1.51% 16.52 343.54 AAA 4.06
36225CN28 GNMA Pool#G280408 94,670.87 03/15 000 93,71T.30 102.42 96,973.13 0.03% Aaa/AA+ 14.15
1.75%Due 512012030 1.81 % 94,225.70 1.43% 138.07 2,747.43 AAA 3.60
31403GXF4 FNMA Pool#FN 748678 6,021.13 0611012013 6,472.72 111.15 6,692.32 0.00% Ass IM+ 17.52
5%Due 10/1/2033 4.16% 6,412.10 1.64% 25.09 280.22 AAA 3.45
36225DCBB GNMA Pool#G2 SOME 97,83972 07/19/2004 97,778.58 104.10 101,853.11 0.03% Aaa/AA+ 18.32
1.875%Due 712012OU 1.80% 97,802.30 L52% 152.87 4,050.81 AAA 4.50
31406XWT5 FNMA Pool#FN 8233M 186,487.88 0111112006 185,030+95 104.72 195,296.82 0.06% Me/AA+ 18.85
2.535%Due 211/2035 2.59% 185,542.25 2.34% 393.96 9754.57 AAA 076
31406PQY8 FNMA Pool#FN 815971 388,026.34 06/10/2013 417,128.32 110.86 430,179.58 0.14% Aaa/AA+ 18.93
5%Due 3/1/2035 4.21 % 413,477.22 1.94% 1,616.78 16,702.36 AAA 3.61
31407BXH7 FNMA Pool#FN 826080 38,824.04 06/1U/2013 41,735.84 110.0 42,970.95 0.01 % Aaa/AA+ 19.26
5%Due 711/2035 4.22% 41,376+09 1.94% 161.77 1,594.86 AAA 3.62
Chendis,Asset Management-CONFIDENTIAL 39
C�" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Do:a Cost Va:u: Mid Price Market Value %of Pod. MI Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
MBS as
31376KT22 FNMA FIN 357969 217383.43 06/10/2013 233,68719 110.55 240,321.73 0.08% Ann/AA+ 19.43
5%Due 911/2035 4.22% 231,688.30 L94% 211.35 8,633.43 AAA 3.62
83611MGS1 Soundview Home Equity Loan Tr.2005- 3,055.98 09/13/2011 2,697.86 99.89 3,052.77 0.00% NR/AAA 19.67
OPT3 A4 1.81 % 2,765+13 3.16% 044 287.64 A 0.05
0.735%Due 11Y SI2035
31403DJZ3 FNMA Pool#745580 208,793.70 08/10/2013 224,453.23 110.81 231,357.83 0.07% Aaa/AA+ 20.18
5%Due 6/1/2036 4.26% 222,596.27 1S6% 869.97 8,761.56 AAA 3.64
3141 OF4V4 FNMA Pool#FN 888336 420 542.62 M11012013 452,083+32 110.87 466,239.20 0.15% Aaa/AA- 20.27
5%Due 711=36 4.25% 448,356.50 195°/ 1,752.26 17,882.70 AAA 3.63
2,384,493.85 2,497,433.37 0.78% Ass I AA+ 16.15
Total MISS 2,326,303.96 3.78% 2,385,164.61 1,92% 5,989.61 112,268.76 Are 3.83
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 5,155,671 79 Various 5.155,67179 1.00 5,155,671 79 1.61 % Aaa I AAA 0.00
Cash Management Full 0,18% 5,155,671,79 0.18% 0.00 0,00 AAA 0.00
5,155,671.79 5,155,671.79 1.61 % Ann I AAA 0.00
Total Money Market Fund FI 5,155,671.79 0.18% 5,155,671.79 0.18% 0.00 0.00 Ass 0.00
MUNICIPAL BONDS
7335BWAG9 Port Authority of NY&NJ TE-REV 2,440,000.00 Varous 2,507,633.89 113.23 2,762,738.80 0.88% Aa3/AA- 3.67
5.309%Due 12I112019 4.97% 2,463,810.38 1.58% 43,179.87 298,92SA2 AA- 3.32
6497IM5E8 New Yak NY TE-REV 1,400,000W 10/2A2010 1,400,000.00 IN." 1,523,634.00 0.48% Act 1AAA 4.59
4.075%Due 11/112020 4.08% 1,400,000.00 2.05% 23,770.83 123,634.00 AAA 4.14
913366EJ5 Univ of Califomia Fill Med TE-REV 400,000.00 1110912010 400,000.00 113.91 455,644.00 0.14% Aa3/AA- 5.13
5.035%Due 511512021 5.04% 400,000.00 2AS% 7,608.44 55,644.00 NR 4.50
4,307,633.89 4,742,016.80 1.51 % Aa2l AA 4.11
Total Municipal Bonds 4,240,000.00 4.68% 4,263,810+38 1.79% 74,559.14 478,206+42 AA 3.70
SUPRANATIONAL
4595OKBS8 International Finance Carp Note 5,000,000.00 03/16/2015 5,020,700,00 100.25 5,012,355.00 1.58% Aso 1 AAA 1.07
1%Do.4/24/2017 0.80% 5,010,444.21 0]]% 21,805.56 1,910.79 NR 1.05
4581XOCGI Inter-American Dev Bank Note 5,000,000.00 O6/22/2015 5,019,550.00 100.18 5,009,020.00 1.57% Ass 1 AAA 1.29
1%Due 7114/2017 0.81 % 5,012,192.75 0.86% 10,694.44 (3,172.75) AAA 1.27
4590MEJB Intl.Bank Recon&Development Note 5,000,000.00 Various 4,991,170+00 100.00 5,000,235.00 1,57% Ass I AAA 2.21
1%Due 6/15/2018 1,07% 4.992,693.01 1.00% 14,722.22 TM1.99 AAA 2.17
15.031,420.00 15,021,610.00 4.71 % Aaa I AAA 1.52
Total Supormadonal 15,000,000.00 0.89% 15,015,329.97 0.87% 47,222.22 6,280.03 Asa 1.50
Chandler Asset Manegemenl-CONFIDENTIAL 40
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Do:a Cost Vs:u: Mid Price Market Value %of Pod. Ml Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Vs Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
US CORPORATE
89236TAKI Toyota Motor Credit Corp Note 5,200,000.00 05/14/2013 5,200,000.00 100.05 5,202,438.80 1.63% Aa3/AA- 0.13
0.909%Due 5/17/2016 0.91 % 5,200,000.00 0.54% 5,779.74 2,438.80 A 0.13
06050TLX8 Bank of America Note 600,000.00 0&01/2014 600,000.00 99.81 598,878.60 0.19% Al/A 1.10
1.041%Due 518/2017 1.04% 600,000.00 1.21% 919.55 (1,121.40) NR 0.10
94988J21-0 Wells Fargo Bank Callable Note Wy 500,000.00 0610512014 500,000.00 99.61 498,071.00 0.16% Aa2/AA- 1.21
&1&2016 0.90% 500,000.00 1.23% 200.43 (1,929A0) AA 0.21
0.902%Due 6115/2017
060505DP6 Bank of America Corp Note 31800,000.00 0111&2014 4,334,014.00 106.26 4,037,959.80 1.29% Beat/BBB- 1.67
5.75%Due 1211/2017 1.95% 4,030,648.60 1.91% 72,833.33 7,311.20 A 1.57
166764AA8 Chevron Corp Callable Note Cant 4,000,000.00 12I0412014 3,977,200.00 99.83 3,993,072.00 1.25% Apt/AA- 1.68
11/&17 1.30% 3,987,201.10 1.21% 14,229.33 5,870.90 NR 1.57
1.104%Due 1215/2017
458140AL4 Intel Corp Note 2,000,000.00 0112612015 2,008,280.00 100.81 2,016,248.00 0.63% Al/A+ 1.71
1.35%Due 12/1512017 1.20% 2.004,908.13 0.87% 7,950.00 11,339.87 A+ 1.68
40428HPH9 HSBC USA Inc Note 3,000,000.00 Various 3.003,290.00 99.83 2,994,792.00 0.94% A2/A 1.80
1.625%Due 1/16/2018 1.59% 3.001,977.08 1.72% 10,156.25 (7,185.08) AA- 1.75
38141GFG4 Goldman Sachs Group Inc Note 600,000.00 Various 692,806.00 107.24 643,434.60 0.20% A3/BBB+ 1.80
5.95%Due 111812018 2.73% 632,263.89 1.83% 7,239.17 11,170+71 A 1.70
674599CD5 Occidental Petroleum Callable Note Cant 2,000,000.00 01/0612015 1.986,340.00 99.70 1,993,946.00 0.63% A3I A 1.88
1/1&18 1.73% 1.991,741.31 1.67% 3,833.33 2,204.69 A 1.76
1.5%Due 2/1&2018
025816AV5 American Express Credit Note 2,900,000.00 Various 3,377,385.79 109.69 3,180,946.20 1.00% A3I BBB+ 1.97
7%Due 311912018 4,28% 3,032,127.00 1.95% 6,766.66 148,819.20 A 1.85
O]3902CD8 Bear Stearns Note 3,200,000.00 0111512014 3.523,520.00 106.22 3,399,142.40 1.08% A3INR 2.25
4.65%Do.]/2/2018 2.25% 3,363,853.01 1.82% 36,786.67 35,289.39 A+ 2.13
532457BF4 Eli Lilly B CO Note 4,000,000.00 Various 4,009,675.00 102.30 4,092,004.00 1.28% A2/AA. 2.96
1.95%Due 311512019 1.89% 4,006,701.96 1.16% 3,466.67 85,302.04 A 2.87
02665WAH4 American Honda Finance Note 4,000,000.00 Various 4,046,640.00 102.33 4,093,224.00 1.28% Al/A+ 3.38
2.25%Due 8/15/2019 1.93% 4,041,28113 1.54% 11,500.00 51,942.27 NR 3.23
06406HCW7 Bank of New York Callable Note Cont 2,120,000.00 02/10/2016 2,142,175.20 102.38 2,170,555.64 0.68% At[A 3.46
&11/2019 1.99% 2,141,390.70 L57% 2,706.89 29,164.94 AA- &23
2.3%Due 9/112019
24422ESS9 John Dearo Capital Corp Note 5,000,000.00 Various 5,046,984.00 102.44 5,122,205A0 1.60% A2I A 3.46
2.3%Due 9/16/2019 2.07% 5.037,083.06 1S7% 4,791.67 85,121.94 NR 3.32
36962G7MO General Electric Capital Corp Callable 6,000,000.00 Various 5,014,950.00 102.94 5,146,790.00 1.62% At/AA+ 3.78
Note 1X 1MI2019 2.13% 5,011,661.88 1.38% 25,055.55 135,128.12 NR &53
2.2%Due 1W020
46625HKA9 JP Morgan Chase Callable Note Cant 2,000,000.00 0210612015 l.el 880.00 100.79 2,015,820.00 0.63% A3/A- 3.82
12/23/2019 2.30% 1.996,055.87 2.03% 8,500.00 19,764.13 A+ 3.55
2.25%Due 112312020
4042811PR7 HSBC USA Inc Note 1,250,000.00 021OWN16 1,222,787.50 98.96 1,237,288.75 0.39% A2/A 3.93
2.35%Due 3I5/2020 2,92% 1.223,722.07 2.62% 2,121.53 13,566.68 AA- 3.72
Chandler Awat Mana3emem-CONFIDENTIAL 41
C�" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Da:a Cost Va:u: Mid Price Market Value %of Pod. Moody1S&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Int. Gain/Loss Fitch Duration
US CORPORATE
•
]4]525AD5 Oualcomm Inc Note 5,000,000.00 05/19/2015 4,995,195.40 102.51 5,125,510.00 1.62% AI IA- 4.14
2.25%Due 5120/2020 2.27% 4,996,024.69 L62% 40,937.51 129,485.31 NR 3.91
94974BGM6 Wells Fargo Cory Note 5,000,000.00 07/162015 5,001,650.00 102.33 5,116,405.00 1.61 % A2/A 4.31
2.6%Due 712212020 2.59% 5,001,420+61 2.03% 24,916.67 114,984.39 AA- 4.05
30231 GAV4 Exxon Mobil Corp Callable Note Cant 1,515,000.00 02IN12016 1.515,000.00 101]] 1,541,818.53 0.48% Ass/AAA 4.92
2/1/2021 2.22% 1,516,000.00 1.84% 2,618.26 26,818.63 AAA 4.64
2.222%Due 3I112021
61747WAL3 Morgan Stanley Note 2,800,000.00 MIN12014 3,200,848.00 114.12 3,195,483.20 1.01 % A3/BBB+ 5.33
5.5%Due 712812021 3.24% 3,099,250.58 2.64% 26,950.00 96,232.62 A 4.64
67,393,620.89 67,416,033.52 21.19% At/A+ 2.88
Total US Corporate 65,485,000.00 2.08% 66,414,313.27 1.59% 320,261.21 1,001,720.25 A+ 2.69
US TREASURY
91282BD31 US Treasury Note 3,500,000.00 0512812014 3.500,34041 100.00 3,500,112.00 1.10% Ass IAA+ 0.08
0,374%Due 4130/2016 0,37% 3,500,014,08 0.34% 2,183.04 97,92 AAA 0.08
912828DM US Treasury Note 10,000,000.00 09/08/2014 9,998,046.87 100.05 10,004,880.00 3.13% Ann/AA+ 0.42
0.5%Due 8/31/2016 0.51 % 9,999,588.81 0.38% 4,347.83 5,291.19 AAA 0.42
912828G46 US Treasury Note 11,000,000.00 Various 10,974,971.75 100.00 10,999,571.00 3.45% Aaa/AA+ 0.67
0.5%Due 11/30/2016 0.62% 10,991488.46 0.51% 18,483.60 8,082.54 AAA 0.66
912828SS0 US Treasury Note 7,500,000.00 12I2212015 7,500,611.06 100.24 7,517,872.50 2.36% Aaa/AA+ 1.08
0.876%Due 413012017 0.87% 7,500,487.36 0.66% 27,584.13 17,385.14 AAA 1.07
91282BG20 US Treasury Note 10,000,000.00 Various 9,948,783.50 100.25 10,025,000.00 3.15% Aaa/AA+ 1.63
0.875%Due 11/15/2017 1.05% 9,971,468.09 0.72% 33,173.0B 53,531.91 AAA 1.60
912MBB33 US Treasury Note 11,000,00000 Various 11,042,439.19 101.81 11,198,946.00 3.51 % Aaa/AA+ 2.84
1.5%Due 1/3V2019 1.37% 11,038,777]2 0.85% 27,651.10 160,168.28 AAA 2.77
912828WS5 US Treasury Note 10,000,000.00 Various 9,984,307.21 102.23 10,223,0W.00 3.21 % Aaa/AA+ 3.26
1.625%Due 6130/2019 1.66% 9,989,677.90 0.93% 41,071.43 233,372.10 AAA 3.15
912828WW6 US Treasury Note 10,000,0com Various 10,024,777.40 102.19 10,218,750.00 3.21 % Aaa/AA+ 3.33
1.625%Due 713112019 1.57% 10,016,633.60 0.96% 27,232.15 202,116+40 AAA 3.24
912828F39 US Treasury Note 5,800,000.00 1012712014 5.873,186.87 102.60 5,950,666.60 1.86% Aaa/AA+ 3.50
1.75%Due 9/30/2019 1.48% 5,851,979.78 0.99% 277.33 98,686.82 AAA 3.39
91282BG61 US Treasury Note 7,500,000.00 12/192014 7,449,634.50 101.68 7,625,9]].50 2.40% Aaa/AA+ 3.67
1.5%Due 1113012019 1.64% 7,462,644.66 1.03% 37,807.30 163,332.84 AAA 3.55
912UBL99 US Treasury Note 5,500,000.00 Various 5,421,666.87 100.80 5.544,044.00 1,74% MOM+ 4.59
1.375%Due 10131Q020 1.67% 5.429,685.18 1.19% 31,787.43 114,358.82 AAA 4.41
91282BN89 US Treasury Note 1,600,000.00 03/15/2016 1.491,626.12 100.72 1,510,782.00 0.47% Aaa/AA+ 4.84
1.375%Due 1/31/2021 1.49% 1,491,701.31 1.22% 3,456.39 19,080.69 AAA 4.66
Chandler Asset Management-CONFIDENTIAL 42
C�" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/16
Purchase Da:a Cost Va:u: Mild Price Market Value %of Pod. MoodydS&P Maturity
CUSUP Security Description Par Value/Units Book Yie d Book Va Mkt YTM Accrued Int. Gain/Loss Fitch Duration
US TREASURY
912828WUO US Treasury Inflation Index Note 10,376,288.00 Various 10,262,12724 100.34 10,411,961.68 3.26% Add/AA- 8.30
0.125%Due 7/15/2024 0.24% 10,281,274.36 008% 2,743.73 130,687,32 AAA 8.25
103,475,518.99 104,731,613.28 32.85% Ass I AA+ 2.90
Total US Treasury 103,676,288.00 1.08% 103,525,421.31 0.71% 257,798.62 1,206,191.97 Ass 2.83
315,880,391.90 318,646,634.73 100.00% Aai I AA+ 2.93
TOTAL PORTFOLIO 314,028,686.95 1.40% 314,837,248.72 1.03% 953,774.75 3,809,386.01 Aaa 2.48
TOTAL MARKET VALUE PLUS ACCRUED 319,600,400A8
Chandler Asset Management-CONFIDENTIAL 43
Orange County Sanitation District Liquid Holdings Report
1fA Accountg10282 As of 3/31/16
Purchase D.:o Cost V.:u: Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt Y7M Accrued Ind. Gain/Loss Fitch Duration
wcY
313384WM7 FHLB Discount Note 2,000,000.00 02/05/2016 1,998,003.06 99.96 1,999,231.95 3.13% P-1IA-1+ 0.10
0.395%Due 516/2016 0.40% 1,999,231.95 0A0% 0.00 0.00 F-1+ 0.10
313384XJ3 FHLB Discount Note 2,000,000.00 02/26/2016 1,998,043.50 99.94 1,998,796.00 3.13% P-1IA-1+ 0.16
0.387%Due 512712016 0.39% 1,998,796+00 0.39% 0.00 0.00 F-1+ 0.16
3133%XU2 FHLMC Discount Note 2,000,000.00 02IN12016 1,998,040.00 99.93 1,998,680.00 3.13% P-11A-1+ 0.18
0.36%Due 6I6/2016 0.37% 1,998,680.00 0.37% 0.00 0.00 F-1+ 0.18
3133MYFO FHLB Discount Note 985,000.00 12=015 982,223.94 Was 983,799.12 1.54% P-1/A-1+ 0.21
0.57%Due 611712016 1.14% 983,799.12 1.14% 1,575.18 0.00 F-1+ 0.21
313312YJ3 FFCB Discount Note 1,075,000.00 1212212015 1,071,811+13 99.87 1,073,590.55 1.69% P-1 I A-1+ 0.22
0.59%Due 6/20/2016 1.18% 1.073,590.55 1.18% 1,779.42 0.00 F-1+ 0.22
313384YN3 FHLB Discount Note 4,000,000.00 12/29/2015 3,988,331.11 Was 3,994,493.33 6.26% P-1/A-1+ 0.23
0.59%Due 6/24/2016 0.60% 3,994,493.33 0.60% 0.00 0.00 F-1+ 0.23
313384ZG7 FHLB Discount Note 1,400,000.00 0312912016 1,398,530.00 99.90 1,398,572.00 2.19% P-1/A-1+ 0.28
0.36%Due 7n2/2016 0.37% 1.398.57200 0.37% 0.00 0.00 F-1+ 0.28
13,434.982.74 13,447,162.95 21.09% P-1/A-1+ 0.20
Total Agency 13,460,000.00 0.57% 13,447162,95 O.ST% 3,354.60 0.00 F-1+ 0.20
COMMERCIAL PAPER sa
89233GFP6 Toyota Motor Credit Discount CP 1,200,000,00 02/24/2016 1,197,640,00 99.86 1,198,367,67 1.88% P-1IA-1+ 0.23
0.59%Due 6/23/2016 0,60% 1,198,367,67 O60% 0.00 0,00 NR 0.23
06538BF01 Bank of Tokyo Mitsubishi NY Discount 1,275,000.00 02/25/2016 1,272,049.79 99.84 1,272,917.50 2.00% P-1/A-1 0.23
CP 0.71 % 1,272,917.50 011% 0.00 0.00 F-1 0.23
0.7%Due 15 2,I 016
2,469,689.79 2,471,285.17 3.87% P-1 IA-I 0.23
Total Commercial Paper 2,475,000.00 0.66% 2,471,285.17 0.66% 0.00 0.00 F-1 0.23
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 4204,542.11 Various 4,204,542,11 1.00 4204,542.11 6.59% Ass I AAA 000
Cash Management Fd521 0,18% 4,204,542.11 0.18% 0,00 0.00 AAA 000
4,204,542.11 4,204,542.11 6.59% Aaa I AAA 0.00
Total Money Market Fund FI 4,204,542.11 0.18% 4,204,542,11 0,18% 0.00 0,00 Aaa 0.00
NEGOTIABLE CD
216UBPVO RabeBank Nederland NV NY Negotiable 1,000,000.00 12/22/2015 999,830.00 100.00 999,955.93 1.57% Aa2/NR 010
DD 0,76% 999,955,93 016% 2,884,90 0,00 NR 0A0
0.716%Due 51612016
999,830.00 999,955.93 1.57% Aa21 NR 0.10
Total Negotiable CD 1,000,000.00 0J6% 999,955.93 0.76% 2,884.90 0.00 NR 0.10
Chandler Asset Men,sorent-CONFIDENTIAL 44
Orange County Sanitation District Liquid Holdings Report
("ARAccountg10282
As of 3/31/16
Purchase D.:o Cost Vat Mid Price Market Value %of Pod. MI Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt YlrM Accrued Int. Gain/Loss Fitch Duration
SUPRANATIONAL
45950VCJ3 International Finance Corp Note 2,500,000.00 12/29/2015 2,498,750.00 99.99 2,499,862.50 3.93% Add/AAA 0.13
0.5%Due 5I1612016 0.63% 2,499,592.39 0.54% 4,687.50 270.11 AAA 0.12
4581XOCJ5 Inter-American Dev Bank Note 2,500,000.00 0312912016 2,499,150.00 100.01 2,500,221.50 3.92% Aaa IAAA 0.45
0.625%Due 911212016 070% 2,499,160.24 0.60% 824.65 1,067.26 AAA 0.45
459058BS1 Ind.Bank Reoon B Development Note 2,500,000.00 0210512016 2.506,225.00 100.34 2,508,607.50 3.93% Aaa IAAA 0.46
1%Do.9/15/2016 0.59% 2,504,725.34 0.24% 1,111.11 3,882.16 AAA 0.46
7,504,125.00 7,506,697.60 11.78% Ass I AAA 0.35
Total Supranational 7,500,000.00 a."% 7,503,477.97 0.46% 6,623.26 5,219.53 Aaa 0.34
US CORPORATE
36962G6Z2 General Electric Capital Corp Note 1,000,000.00 08/26/2015 1,007,290.00 100.27 1,002,699.00 1.58% Al I AA, 0.28
1.5%Do.]/12/2016 0,65% 1,002,353,10 053% 3,291.E 345AQ NR 0.28
94974BFL9 Wells Fargo Corp Note 1,000,000.00 1212112015 1,001,870,00 100.18 1,001,713.00 1.57% A21A 0.30
1.25%Due 712012016 0.92% 1,000,984.21 0.66% 2,465.28 788.79 AA- 0.30
06406HBX6 Bank of New York Note 1,000,000.00 1212112015 1,008760.00 100.52 1,005,170.00 1.58% Al/A 0.33
2.3%Do.]/28/2016 0.82% 1,004,763.50 0.70% 4,025.00 406.60 AA- 0.32
08467013133 Berkshire Hathaway Note 1,000,000.00 08I26I2015 1,014,170.00 100.57 1,005,739.00 1.58% Aa2/AA 0.38
2.2%Due 8/1512016 0.71 % 1,005,506.06 0.65% 2,811.11 232.94 A+ 0.37
191216AU4 Cosa Cola Company Note 1,000,000.00 12121IN15 1,006,450.00 101 1,004,261.00 1.58% Aa3/AA- 0.42
1.8%Due 911=16 0.85% 1.003,916.07 077% 1,500.00 350.93 A+ 0.42
02665WA37 American Honda Finance Note 1,000,000.00 12/21/2016 1.001,660.00 100.21 1,002,130.00 1.58% At/A+ 0.52
1.125%Due 1OR12016 0.91 % 1,001,089.38 071% 5,437.50 1,040.62 NR 0.51
24422ESD2 John Deere Capital Corp Note 1,000,000.00 1212112015 1,001,070.00 100.13 1,001,291.00 1.58% A2/A 0.53
1.05%Due 10/11/2016 0,91% 1,000,701.23 0.80% 4,958.33 589.77 NR 0.52
91159HHB9 US Bancorp Callable Note Cont 1,000,000.00 1212112015 1.009,900.00 100.85 1,008,461.00 1.59% At/A+ 0.63
1011412016 0.96% 1.006,577.63 0.83% 8,311.11 1,883.37 AA 0.61
2.2%Due 1111 512 01 6
46623EJY6 JP Morgan Chase Note 1,000,000.00 02I26I2016 1,000,470.00 100.22 1,002,200.00 1.57% A3/A- 0.88
1.35%Do.2/1512017 1.30% 1.000429.71 110% 1,725.00 1,770.29 A+ 0.86
9,051,640.00 9,033,736.00 14.22% At/A+ 0.47
Total US Corporate 9,000,000.00 0.89% 9,026,326,89 075% 34,525.00 7,409,11 AA- 0.47
US TREASURY JL
912828QPB US Treasury Note 4,000,000.00 Various 4.028,841+53 100.24 4,009,488.00 6.32% Aaa/AA- 0.17
1.75%Due 5/31/2016 0.32% 4,009,333.24 0.32% 23,524.60 15476 AAA 0.17
912828VG2 US Treasury Note 14,000,000.00 Various 14,001,609.40 100.04 14,006,286.00 21.99% Aaa/AA+ 0.21
0.6%Due 6/15/2016 0.49% 14,000,704.07 0.28% 20,655.74 6,581.93 AAA 0.21
912UBVL1 US Treasury Note 3,000,000.00 12/15/2015 2,999,541.30 100.06 3,002,343.00 4.71 % Aaa/AA+ 0.29
0.625%Due 7/15/2016 0.65% 2,999,772.81 0.36% 3,966.35 2,570.19 AAA 0.29
91211 US Treasury Note 3,000,000.00 12/16/2015 3.003760.05 100.20 3,005,859.00 4.71 % Aaa/AA+ 0.46
0.875%Due 9/15I2016 071% 3,002,29171 0.46% 1,212.64 3,667.29 AAA 0.46
Chandler Asset Menegemem-CONFIDENTIAL 45
Orange County Sanitation District Liquid Holdings Report
("ARAccountg10282
As of 3/31/16
Purchase D.:o Cost V.:u: Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va Mkt Y7M Accrued Int. Gain/Loss Fitch Duration
US TREASURY
912828RJ1 US Treasury Note 2,000,000.00 02/0412016 2,005,78795 100.28 2,005,624.00 3.14% Ann/AA- 0.50
1%Due 9/30/2016 0.55% 2,004,426.08 044% 54.64 1,197.92 AAA 0.50
26,039,540.23 26,029,600.00 40.88% Asa I AAt 0.26
Total US Treasury 26,000,000.00 0.50% 26,016,527.91 0.33% 49,413.97 13,072.09 Ass 0.26
63,704,349.87 63,69g979.66 100.00% P-21 A-1 0.27
TOTAL PORTFOLIO 63,639,542.11 0.58% 63,669,278.93 0.46% 96,801.73 25,700.73 F-1+ 0.27
TOTAL MARKET VALUE PLUS ACCRUED 63,791,791.39
Chandler Asset Men,annert-CONFIDENTIAL 46
OROCSD Lehman Exposure Holdings Report
Account#10284 As of 3/31/16
Purchase Da:a Cost Va Mkt Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yin d Book V. Mkt YTM Accrued Int. Gain/Loss Fitch Duration
COMMONSTOCK
SLHOPNTA4 Lehman Brothers,Inc Open Position 68,128.13 11/21/2014 68,128.13 0.42 28,184.13 21.12% NR/NR 0.00
Long Exposure 0.00% 68,128A3 0.00% 0.00 (39,344.00) NR 0.00
Due W3112016
68,120.13 20,784.13 21.12% NR/NR 0.00
Total Common Stock 68,128.13 NIA 68,128.13 0.00% 0.00 (39,344.00) NR 0.00
US CORPORATE se
525ESC167 Lehman Brothers Note-Defaulted 600,000,00 09/19/2008 368,851,84 5.00 29,988.00 22.00% NRINR 082
Due 112412017 0.00% 368,851.84 000% 0.00 (338,863.84) NR 000
525ESCOV6 Lehman Brothers Note-Defaulted 2,000,000,00 09/18/2008 1,193,511M6 3.88 77,520.00 56.88% NR/NR 3358
Due 10/2212049 0.00% 1,193,511.06 0.00% 0.00 (1,115,991.06) NR 0.00
1,562,362.90 107,508.00 78.88% NR/NR 24.44
Total US Corporate 2,600,000.00 N/A 1,562,362.90 0.00% 0.00 (1,454,854.90) NR 0.00
1,630,491.03 136,292.13 100.00% NRINR 19.28
TOTAL PORTFOLIO 2,668,128.13 NIA 1,630,491.03 0.00% 0.00 (1,494,198.90) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUED 136,292.13
Chandler Asset Management-CONFIDENTIAL 47
Rating Agency Comparisons
A summary of investment grade ratings are listed below. More complete descriptions of
Moody's and Standard & Poor's ratings are included in the following pages.
Quality/Grade Moody's Standard & Poor's Fitch
Best Quality Aaa AAA AAA
High Quality Aal AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
Upper Medium Grade Al A+ A+
A2 A A
A3 A- A-
Medium Grade Baal BBB+ BBB+
Baa2 BBB BBB
Baa3 BBB- BBB1
Moody's - Investment Grade
"Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest
degree of investment risk. Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various protective elements
are likely to change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
"Aa" - Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be of greater
amplitude or there may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
"A" - Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to principal and
interest are considered adequate, but elements may be present which suggest a
susceptibility to impairment sometime in the future.
Mae" - Bonds which are rated Baa are considered as medium grade obligations; i.e.,
they are neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such bonds lack
outstanding investment characteristics and in fact have speculative characteristics as
well.
Bonds in the As, A, and Baa are also assigned "1", "2", or "S' based on the strength of
the issue within each category. Accordingly, "At" would be the strongest group of A
securities and "AY would be the weakest A securities.
Be, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable
protection of interest and principal ("Be" indicates some speculative elements; "B"
indicates a general lack of characteristics of desirable investment; "Caa" represents a
poor standing; "Ca" represents obligations which are speculative in a high degree; and
"C" represents the lowest rated class of bonds). "Caa", "Ca" and "C" bonds may be in
default.
Standard and Poor's-investment Grade
AAA- Debt rated "AAA" has the highest rating assigned by S&P. Capacity to pay interest
and repay principal Is extremely strong.
AA - Debt rated "AA" has a very strong capacity to pay interest and repay principal and
differs from the highest rated issues only in small degree.
A - Debt rated "A" has a strong capacity to pay interest and repay principal although it is
somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than debt in higher rated categories.
BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in higher rated
categories.
Standard and Poor's - Speculative Grade Retina
Debt rated "BB", "B", "CCC", "CC" and "C" is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay principal.
"BB" indicates the least degree of speculation and "C" the highest. While such debt will
likely have some quality and protective characteristics these are outweighed by major
uncertainties or major exposures to adverse conditions.
BB - Debt rated "BB" has less near-term vulnerability to default than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse business,
financial, or economic conditions which could lead to inadequate capacity to meet timely
interest and principal payments. The "BB" rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied "BBB" rating.
B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to
meet interest payments and principal repayments. Adverse business, financial, or
economic conditions will likely impair capacity or willingness to pay interest and repay
principal. The "B" rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BB" or "BB" rating.
CCC - Debt rated "CCC' has a currently identifiable vulnerability to default, and is
dependent upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal. In the event of adverse business,
financial, or economic conditions, it is not likely to have the capacity to pay interest and
repay principal. The "CCC' rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied 'B" or"B" rating.
CC - The rating "CC' typically is applied to debt subordinated to senior debt that is
assigned an actual or implied "CCC' debt rating.
C-The rating"C'typically is applied to debt subordinated to senior debt which is assigned
an actual or implied "CCC' debt rating. The "C' rating may be used to cover a situation
where a bankruptcy petition has been filed, but debt service payments are continued.
Cl -The rating "Cl" is reserved for income bonds on which no interest is being paid.
D - Debt rated "D" is in payment default. The "D" rating category is used when interest
payments or principal payments are not made on the date due even if the applicable grace
period has not expired, unless S&P believes that such payments will be made during such
grace period. The "D" rating also will be used upon the filing of a bankruptcy petition if
debt service payments are jeopardized.
Plus (+) or Minus (-) - The ratings from "AA" to "CCC' may be modified by the addition
of a plus or minus sign to show relative standing within the major rating categories.
NR-Indicates no rating has been requested,that there is insufficient information on which
to base a rating, or that S&P does not rate a particular type of obligation as a matter of
policy.
2015-16 Third Quarter Review
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a
C�p
April 30, 2016
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended March 31, 2016
Summary
The District began issuing Certificates of Participation (COPs) in 1990. These COPS
were a part of our long-term financing plan that included both variable interest rate and
traditional fixed rate borrowing. Following are the current outstanding debt issues of the
District:
In May 2007, the District issued $95.18 million of fixed rate COPS, Series 2007A
refunding a portion of the Series 2003 fixed rate debt. The true interest cost for the
issue is 4.5 percent.
In December 2007, the District issued $300 million of fixed rate COPS, Series 2007B at
a true interest cost of 4.71 percent for the issue.
In September 2008, the District issued $27.8 million of fixed rate COPS, Series 2008B
refunding the Series 1993 variable rate debt. The true interest cost for the issue is 2.96
percent.
In May 2010, the District issued $80.0 million of fixed rate BABs, Series 2010A at a true
interest cost of 3.68 percent for the issue.
In December 2010, the District issued $157.0 million of fixed rate BABs, Series 2010C
at a true interest cost of 4.11 percent for the issue.
In October 2011, the District issued $147.595 million of fixed rate COPS, Series 2011A
refunding a portion of the Series 2000 variable rate debt and a portion of the Series
2003 fixed rate debt. The true interest cost for the issue is 2.61 percent.
In March 2012, the District issued $100.645 million of fixed rate COPS, Series 2012A
refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54
percent.
OCSD ♦ P.O.Box 8127 ♦ Fountain Valley,CA 9272B-B127 ♦ (714)962-2411
Quarterly COP Report
For the Three Months Ended March 31, 2016
Page 2 of 2
In August 2012, the District issued $66.395 million of fixed rate COPs, Series 2012B
refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50
percent.
With the issuance of Series 201213, there remains no variable interest rate COPs at the
District.
In August 2014, the District issued $85.090 million of fixed rate COPS, Series 2014A,
refunding a portion of Series 2007B debt. The true interest cost for the issue is 2.34
percent.
In October 2014, the District issued $120.850 million of fixed rate CANs, Series 201413,
refunding the Series 2013A CANS. The true interest cost for the issue is 0.41 percent.
In February 2015, the District issued $127.510 million of fixed rate COPS, Series 2015A,
refunding $152,990,000 of the Series 2007E debt. The true interest cost for the issue is
3.30 percent.
On March 30, 2016, the District issued $145.880 million of fixed rate COPS, Series
2016A, refunding a portion of the Series 2009A fixed rate debt. The true interest cost
for the issue is 3.02 percent.
Additional Information
The graph entitled, "OCSD COP Rate History Report,' shows the various fixed interest
rates of the District's twelve debt issues.
Attachments
1. Graph - OCSD COP Rate History Report
Prepared by Finance,412512016,1:18 PM
OCSD COP RATE HISTORY REPORT
MARCH 2O16
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2015-16 Third Quarter Review
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ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.ocsewers.com
03/31/16