HomeMy WebLinkAbout98.05-23-2018 Board Meeting Item 15 Attachment - FY 2017-18 Third Quarter Financial Report.pdf ORANGE COUNTY SANITATION DISTRICT
Third Quarter
Financial Report
for the period ended March 31 , 2018
ENIP
,7
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 Reoort.................................................................................................1
FY 2017-18 Third Quarter Financial Report
This Page Intentionally Left Blank
Executive Summary
Consolidated Financial Reports
For the Third Quarter Ended
March 31, 2018
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2018:
• 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, 2018.
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, 2018. The chart below provides for a
summary of these activities.
Third Quarter Results
as a Percentage of Budget
90.0%
80.0% $107.91M 65.6M
70.0% $292.3M
$1.SM
60.0% $86.6M
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Oper. Oper Exp Capital Debt Self Ins
Rev Outlays Service Outlays
Various detail information can be found in this report. Below is a descriptive
summary of these activities through March 31st:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 66.5 percent of the $439.3 million budget. Except for
IRWD Intra District Sewer Use, IRWD Capital Assessments, Interest
Earnings, CNG Sales, and Other Revenues, most major revenue sources are
currently tracking close to or exceeding revenue estimates. Overall, total
revenues are projected to exceed budget at year-end. More detailed
information on District revenues is provided within Section 1 — Pages 3
through 5.
Page 1
FY 2017-18 Third Quarter Report
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 $107.9 million is
currently tracking at 71.1 percent of the $151.9 million budget. In addition,
net operating expenses have increased $7.4 million or 7.3 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 $2,130 based on flows of 185.0 million
gallons per day. This is $120.5 per million gallons, or 5.4 percent lower than
the budgeted cost per million gallons per day. A further description of these
costs and benchmarking with other agencies is contained within Section 1 —
Pages 6 through 8.
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2017-18 has been revised to $124.3 million, or 78.2
percent of the board approved cash outlay of$159.1 million. The actual cash
outlay spending through the third quarter is $86.6 million, or 54.4 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 notes that although the Long-Term Portfolio quarterly return was
negative, the negative return of 33 basis points still outperformed the Bank of
America Merrill Lynch 1-5 year AAA-A U.S. Corporate and Government Index
negative return of 45 basis points, while the Liquid Operating Monies Portfolio
quarterly return matched the three-month Treasury Bill index return benchmark of
35 basis points.
Chandler further notes the Federal Open Market Committee (FOMC) raised the
Fed funds target rate to a range of 1.50%-1.75% at the March 21 meeting, as
expected. The vote was unanimous. In the policy statement, the Fed said
economic activity has been "rising at a moderate rate" which was somewhat less
bullish than the "solid rate' of growth cited in the January statement. Household
and business fixed investment moderated from the fourth quarter. Inflation for
items other than food and energy continues to run below 2.0% but the Fed expects
inflation to move up in the coming months. The FOMC left its median Fed funds
rate forecast unchanged for 2018 at 2.1% which implies two more rate hikes by
year-end. Although the forecasted median Fed funds rate for 2018 did not change,
Page 2
Executive Summary
the dot plot did change with 13 out of 15 FOMC members forecasting two or more
rate hikes this year, compared with 10 out of 16 members at the December 2017
meeting. The Fed funds rate targets for 2019 and beyond were revised up slightly.
By the end of 2020, the FOMC's median forecast now calls for a Fed funds rate of
3.4%. Overall, the Fed revised their GDP forecasts up slightly, their unemployment
forecasts down slightly, and left their inflation projections mostly unchanged.
We are forecasting GDP growth of about 2.5%-3.0% in 2018, which is in line with
the Fed's forecast and the market consensus. This would equate to an increase
over 2017 GDP growth of 2.3%. Overall, economic data remains solid, with the
exception of still-sluggish inflation readings. The economy is at or near full
employment, consumer confidence is strong, and leading indicators suggest the
economy will continue to grow.
The Treasury yield curve flattened in March. The 2-year Treasury yield increased
slightly to 2.27% from 2.25%, while the 10-year Treasury yield decreased about 12
basis points to 2.86%. At month end, the spread between 2- and 10-year Treasury
yields was just 47 basis points; quite flat by historical standards. All else being
equal, we believe the Fed's plan to normalize the balance sheet will help promote
a steeper yield curve later this year. Tax reform and stronger economic growth
may also help drive yields at the long end of the curve higher. However, we
believe this is somewhat offset by anticipated ongoing monetary policy
normalization by the Fed.
Year-over-year, shorter-term Treasury yields have increased more than longer-
term Treasury yields. The increase in shorter-term rates has been driven by the
Federal Reserve's steady increases in the target Fed funds rate. Meanwhile,
longer-term rates (which are more closely tied to inflation expectations and the
outlook for economic growth) have remained relatively contained.
The Consumer Price Index (CPI) was up 2.4% year-over-year in March, up from
2.2% in February. Core CPI (CPI less food and energy) was up 2.1% year-over-
year in March, up from 1.8% in February. The Personal Consumption
Expenditures (PCE) index was up 1.8% year-over-year in February versus 1.7% in
January. Core PCE (excluding food and energy) was up 1.6% on a year-over-year
basis in February versus 1.5% in January.
Economic Outlook
The fundamental backdrop of the domestic economy remains solid as GDP growth
accelerated in the second half of 2017; fourth quarter GDP came in at 2.9%
compared to 1.8% in the fourth quarter of 2016. The unemployment rate remains
low at 4.1% and non-farm payrolls are robust with the most recent three month
and six month moving averages coming in at 202k and 211k through March 2018,
respectively. Core inflation has been ticking modestly higher, but importantly the
Core PCE on a year-over-year basis remains below the Federal Reserve's 2.0%
target, with the most recent reading at 1.6%. The Chandler team is keeping a
close eye on wage inflation. Given the aforementioned low unemployment rate the
inability of wage inflation on to accelerate comfortably into the 3.25-3.50% range
on a year-over-year basis is an anomaly. Changing demographic trends and a still
Page 3
FY 2017-18 Third Quarter Report
elevated U-6 unemployment rate (8.0% most recently) are contributing factors to
the benign wage inflation numbers. Looking out over the next six to twelve months
the risk of a recession in the United States is low.
Risk assets, on the other hand, experienced heightened volatility and negative
price action in the latter two months of the quarter. The magnitude of the price
changes on the equity side from a price perspective felt very significant, but on
percentage terms less so. The earnings backdrop for US corporations is positive,
however there is a growing concern market participants had become too
complacent. Throughout 2017 risk markets shrugged off the negative news; the
S&P 500 Equity Index moved higher in eleven of twelve months of 2017.
The beginning of 2018 started out very strong, but as interest rates moved higher
and the lack of continuity in the Trump administration received additional focus,
risk assets experienced negative price action. Investors are also processing the
implications of global monetary policy turning less accommodative, with the
Federal Reserve leading the way in gradually removing accommodation.
The annual rotation of voting Federal Reserve Bank Presidents took place in
January and Jerome Powell was swom in as the new Fed Chair on February 5th.
Historically Powell's voting record is consistent with the prior Chair, Janet Yellen,
and market participants are not forecasting a significant change at the Fed related
to the new leadership. Monetary policy continued to gradually normalize during the
quarter with the Federal Open Market Committee (FOMC) raising the Federal
funds rate by 25 basis points to a range of 1.50% to 1.75% at the March 21
meeting. The FOMC also continued the balance sheet normalization program,
currently at $20 billion per month ($12 billion in Treasury securities and $8 billion
in mortgage backed and agency securities), which is set to increase $30 billion per
month in April 2018.
The market has thus far absorbed the reduction in the Federal Reserve's balance
sheet quite well, however the Chandler team expects the term premium in the
Treasury market to ultimately be pressured due to both the greater velocity of
balance sheet reduction later in the year and the increased amount of Treasury
issuance due to the recently enacted tax reform bill.
Similar to the prior quarter, interest rates moved higher across all maturities, with
shorter maturity notes continue to lead the way as the Treasury curve continued to
experience a flattening bias. Two year Treasury notes increased by 38 basis
points to end the quarter at 2.27% and Ten year Treasury notes increased by 33
basis points to end the quarter at 2.74%. Spreads in the investment grade fixed
income market also came under pressure partially correlated with the negative
price action in equity markets. New issue volume was elevated in January but
tailed off in February and March, compared to the prior year, as the negative price
action in risk assets kept issuers on the sidelines.
• 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 4
Consolidated Financial Reports
Third Quarter Financial Report
March 31, 2018
Financial Management is pleased to present the FY 2017-18 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, 2018, 71.1 percent, or $107.9 million of the
FY 2017-18 net operating budget of $151.9 million has been expended. Net operating
expenses increased from the same period last year by $7.4 million, or 7.3 percent,
mainly due to an increase of $2.5 million in Repairs and Maintenance, $2.1 million in
Salaries and Benefits, $990,000 in Operating Materials and Supplies, $794,000 in Other
Operating Supplies, $656,000 in Utilities, $559,000 in Professional Services, $412,000
in Administrative Expenses, $81,000 in Printing and Publication Expenses, $54,000 in
Other Non-Operating Expenses, and $48,000 in Research and Monitoring, partially
offset by a decrease of $70,000 in Training and Meetings and an increase of $765,000
in indirect costs allocated out to capital projects. 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 or slightly below budget throughout
the remainder of the year.
Significant operating results as of March 31, 2018 include the following:
• Salaries. Wages and Benefits — Personnel costs of$68.7 million are on target at
73.6 percent of budget through the third quarter of FY 2017-18. Although the
budget is based on a 5 percent vacancy factor, staffing is 41 full-time equivalents
(FTE's), or 6.5 percent below the total 635 FTE's approved in the FY 2017-18
budget. Salary and benefit costs are $2.1 million or 3.1 percent higher than the
$66.6 million incurred in the same period last year, mainly due to an increase of$2.2
million in salaries and wages resulting from additional budgeted FTE's of 8 or 1.3
percent, and cost of living adjustments included in the current Memorandums of
Understanding for all employee bargaining units. Net operating personnel costs
are expected to approximate budget throughout the remainder of the year.
• Administrative Expenses — Administrative Expenses totaled $1.6 million, or 77.0
percent of the $2.0 million budget through March 31. These costs are $412,000
or 35.9 percent higher at March 31 in comparison with the prior year mainly due to
increases of $261,000 in postage for mailing Prop 218 sewer rate notifications,
$85,000 in minor furniture and fixtures for workstation installations and ergonomic
chairs, $45,000 in memberships attributable to timing of payments, and $27,000 in
purchases of small computer items including tablets and two-way radios. It is
anticipated that the administrative costs will approximate budget at year-end.
Section 1 - Page 1
FY 2017-18 Third Quarter Report
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$271,000, or 67.0 percent of the $404,000 budget through March 31. These
costs are $81,000 or 42.6 percent higher at March 31 in comparison with the prior
year mainly due to an increase of $66,000 in outside printing services, primarily to
print Prop 218 notifications for regional sewer service fees, and $11,000 in notices
and ads for more job postings to advertise open positions throughout the District.
Printing and publication costs are expected to be below budget at year-end.
• Training and Meetings — Training and meetings of $554,000 are below target at
44.2 percent of the $1.3 million budget. This account is lower than the
proportionate budget due to the timing and need for training throughout the year.
These costs have decreased over the same period last year by $70,000 or 11.2
percent, primarily as a result of Total Productive Maintenance Certification Program
costs 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 on target at 76.2 percent of the $15.7 million budget through March
31. Operating Materials and Supplies are higher than the prior year by $990,000 or
9.0 percent, primarily due to increases in Odor Control of $513,000, Chemical
Coagulants of $251,000, and Safety Equipment of $156,000. The increases are
mainly brought about by the proactive treatment of odor control chemicals in the
trunk lines as outlined in the odor control action plan, as well as higher chemical unit
costs and additional purchases of safety equipment and tools from the prior year.
Based on current processes, operating materials and supplies are anticipated
to approximate budget at year-end.
• Contractual Services — Contractual services is on target at $17.3 million or 70.8
percent of the $24.5 million budget through March 31. Contractual Services is
higher by $9,000 or 0.1 percent over the same period last year. Solids Removal
costs, budgeted at $15.9 million, comprise the majority of this expense category, and
decreased $997,000 or 7.8 percent from the prior year primarily due to the
renegotiation of composting contract rates. Solids removal costs totaled $11.8
million, or 74.1 percent of budget at March 31. Temporary Services increased by
$739,000 because of position vacancies and Security Services rose by $366,000 as
a consequence of heighted security and the addition of armed patrol services at both
plants. These increases were offset by a decrease of $70,000 in Other Waste
Disposal attributable to a reduction in removal of hazardous waste materials from
the same period last year and a decrease in Other Contractual Services of $43,000.
County Service Fees totaled only $44,000, or 6.7 percent of the $659,000 budget
through the third quarter as the preponderance of these fees are billed by the
County in the fourth quarter. Total contractual services costs are anticipated to
approximate budget at year-end.
• Professional Services — Professional services costs totaled $2.8 million or 54.4
percent of the $5.1 million budget through March 31. Professional service costs,
such as Audit and Accounting, Engineering, Environmental Scientific Consulting,
Section 1 - Page 2
Consolidated Financial Reports
Software Program Consulting, and Other Services, are proportionately low through
March 31 due to a variety of factors such as timing of services and re-evaluation of
needs for services. These costs are $559,000 or 25.1 percent higher at March 31 in
comparison with the prior year, mainly attributable to increases of $397,000 in
Engineering as a result of additional engineering services for the Civil Assets
Management Program (CAMP) and $134,000 in Legal costs due to additional legal
support services incurred. It is anticipated that the costs for this category will be
below budget at year-end.
• Research and Monitoring — Research and monitoring costs totaled $573,000, or
64.4 percent of the $889,000 budget through March 31. These costs are $48,000,
or 9.2 percent higher at March 31 in comparison with the prior year, mainly due to an
increase in Environmental Monitoring costs such as vessel services and regional
ocean monitoring. Total research and monitoring costs are anticipated to be
below budget at year-end.
• Repairs and Maintenance — Repair and maintenance costs totaled $12.0 million,
or 75.5 percent of the $15.9 million budget through March 31. These costs are
$2.5 million, or 26.4 percent higher at March 31 in comparison with the prior year,
mainly due to additional repair materials purchased, such as engine components to
remedy gas leaks, and an increase in service maintenance agreements resulting
from timing of payments. It is anticipated that the costs for this category will
approximate budget at year-end.
• Utilities — Utilities costs totaled $5.3 million, or 67.6 percent of the $7.9 million
budget through March 31. These costs are $656,000 or 14.0 percent higher at
March 31 in comparison with the prior year, primarily due to an increase of$549,000
in power charges as a result of higher electricity rates, increased consumption from
facility-related demand, and a Plant 2 CenGen shutdown. Telephone costs rose by
$105,000 because of Internet upgrades and additional cell phones to improve field
staff communication abilities. It is anticipated that the costs will be slightly below
budget at year-end.
• Other Operating Supplies — Other operating supplies costs totaled $2.6 million,
or 79.1 percent of the $3.3 million budget through March 31. Property and
General Liability Insurance, budgeted at $2.1 million, comprise the majority of this
expense category at $1.6 million. These costs are $750,000 or 90.0 percent higher
at March 31 in comparison with the prior year primarily due to an increase in
budgeted in-lieu premium charges in order to maintain recommended reserve
balances. It is anticipated that other operating supplies costs will approximate
budget at year-end.
• Revenues — Service Fees and Property Taxes — Through March 31, revenues
from service fees are at $190.7 million, or 65.5 percent of budget and property
taxes are at $63.3 million, or 67.5 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
Section 1 - Page 3
FY 2017-18 Third Quarter Report
year based on a set distribution schedule that begins in November of each year. An
increase of $11.3 million or 6.3 percent in service fee revenue over the prior period
is due in part to higher sewer service rates, timing of receipts, and a decrease in
user fee rebates issued in the current period, partially offset by the transfer of local
sewer service fees to East Orange County Water District. An increase of$8.0 million
or 14.4 percent in property tax revenues over the prior period is a result of a rise in
assessed property values and timing of receipts. These revenues are expected to
approximate budget at year-end.
• Revenues — Permittee User Fees — Permittee User Fees are at $13.6 million, or
105.0 percent of the $12.9 million budget. The revenues through the third quarter
are higher than the same period last year by $4.0 million or 41.8 percent due to
higher rates and an increase in the strength of the discharge from the permittees.
The number of permittees fluctuates from year to year as businesses are
established or close their operations. Permit user fees revenues are expected to
exceed budget at year-end.
• Revenues — Inter District Sewer Use — SAWPA and SBSD — Inter District Sewer
revenues - SAWPA and SBSD are at $2.1 million, or 64.6 percent of the $3.3
million budget. This revenue is derived from charges to the Santa Ana Watershed
Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for
treatment of flows. The revenues through the third quarter are lower than the same
period last year by $304,000 or 12.6 percent due to a decrease in flows received
from these agencies and a resulting reduction in operation and maintenance
charges. These revenues are expected to be below budget at year-end.
• Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues-
IRWD are at $1.6 million, or 35.6 percent of the $4.6 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 $5.3 million or 144.6 percent, mainly due to a prior year reduction
of $6.1 million in pension costs allocated to IRWD as a result of changes to the
amortization period of IRWD's proportionate share of the $214.1 million unfunded
actuarial liability paydowns made by the District to the Orange County Employees
Retirement System, offset by a decrease of $633,000 in operation and maintenance
charges to IRWD, primarily due to a reduction in flows received from this agency.
These revenues are expected to be below budget at year-end.
• Revenues - Sludge Disposal — IRWD — Sludge Disposal fees - IRWD are at $3.4
million, or 58.3 percent of the $5.9 million budget. The revenue is for the
handling, treatment and disposal of solids, derived from flows discharged from IRWD
to the Sanitation District. The revenues through the third quarter are lower than the
same period last year by $8.1 million or 70.3 percent, mainly due to actual cost
adjustments as a result of a two-year annual reconciliation and a decreased solids
flow received from IRWD. The current fiscal year quarterly billing to IRWD is based
on estimates. It is estimated that IRWD sludge disposal revenues will be below
budget at year-end.
Section 1 - Page 4
Consolidated Financial Reports
• Revenues — Capital Assessments — IRWD — Capital Assessments-IRWD are at
$2.5 million, or 45.8 percent of the $5.4 million budget. The revenues through the
third quarter are higher than the same period last year by $747,000 or 43.6 percent
mainly due to an increase in joint capital costs allocable to IRWD. It is estimated
that IRWD capital assessments revenues will be below budget at year-end.
• Revenues — Capital Facilities Capacity Charges (CFCC) — CFCC are at $11.4
million, or 114.9 percent of the $9.9 million budget. The revenues through the
third quarter are higher than the same period last year by $3.3 million or 40.5
percent due to an increase in rates and connection fees collected from cities as well
as more supplemental capital facilities capacity charges assessed to industrial
dischargers than at this time last year. These revenues are expected to exceed
the budget at year-end.
• Revenues — Interest Earnings — Interest Earnings are at $884,000 or 10.5 percent
of the $8.4 million budget. The revenues through the third quarter are lower than
the same period last year by $659,000 or 42.7 percent due to lower yields earned on
securities held in the investment portfolios. It is estimated that the interest
earnings will be below the budget amount at year-end.
• Revenues — CIP Reimbursements — CIP Reimbursements are at $1.6 million or
74.3 percent of the $2.1 million budget. These revenues consist of
reimbursements for construction projects received from the Orange County Water
District for P2-122 Headworks Modifications at Plant 2 for GWRS Final Expansion
and the cities of Fullerton and Anaheim for 2-72B Newhope-Placentia Trunk
Replacement, Segment B. No reimbursements were received for these projects
during the same period last year. These revenues are expected to approximate
budget at year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $489,000 or 61.1
percent of the $800,000 budget. This revenue is derived from fees charged to
wastehaulers allowing them to dump waste into the Sanitation District's system. The
revenues through the third quarter are lower than the same period last year by
$228,000 or 31.8 percent due to a reduction in waste dumping. These revenues are
expected to approximate budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $114,000 or 27.1 percent
of the $420,000 budget. This revenue is derived from public sales at the District's
Compressed Natural Gas (CNG) fueling station. The revenues through the third
quarter are lower than the same period last year by $218,000 or 65.7 percent due to
mechanical failures of the public CNG fueling station that resulted in the station
being of0ine for several months. These revenues are expected to be below
budget at year-end.
Section 1 - Page 5
FY 2017-18 Third Quarter Report
Comparison of Third Quarter Cost per
Million Gallon Results with Budget
Last Five Years
$2.300
$2,250
$2.200
$2.150
$2.100
$2.050 sz m
$2.000 #
$1.950
$1.900
$1.850
$1.800
$1,750
$1.700
$1.650
$1.600
$1,550
$1.500
1314 1" 15.15 1617 17-16
3rd Annual 3rd Annual 3rd Annual 3rd Annual 3rd Annual
atr Budget atr Budget Qtr Budget Qtr Budget Qtr 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 between 1.2 percent higher
to 10.0 percent lower than the annual budget. The FY 2017-18 third quarter cost per
million gallons of $2,130 is 5.4 percent lower when compared with this year's budget.
The increase in cost per million gallons of $179 from the previous year is primarily due
to an increase in operating expenses, which are 7.3 percent higher than the same
period last year and a decrease in flows, which are 1.7 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 $2,130 based on flows of 185
million gallons per day. This is $120 per million gallons, or 5.4 percent, lower than the
budgeted cost per million gallons of $2,250. There is an inverse relationship between
the amount of flows and the cost per unit of collection, treatment, and disposal.
Consequently, the lower cost per million gallons is due to net expenses being 5.3
percent less than the proportionate budget through March 31 with flows of 185.0 million
gallons per day being equal to the budgeted flow of 185 million gallons per day.
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 Residential Rate
Rates as of July
2013 2014 2015 2016 2017
Agency SFR SFR SFR SFR SFR Noles
San Francisco $ 701 $ 745 $ 784 $ B42 $ 937
City of San Diego $ 573 $ 573 $ 573 $ 573 $ 573 Note 5
Central Contra Costa Sanitary District $ 405 $ 439 $ 471 $ 503 $ 530
City of Los Angeles $ 409 $ 435 $ 464 $ 495 $ 527 Note 1
Vallejo Sanitation/Flood Control District $ 507 $ 520 $ 520 $ 520 $ 520
Sacramento County $ 312 $ 348 $ 384 $ 420 $ 432
Dublin San Raman Services District $ 355 $ 373 $ 382 $ 382 $ 397
Union Sanitary District $ 338 $ 357 $ 377 $ 380 $ 393
East Bay MUD $ 331 $ 358 $ 355 $ 373 $ 391
City of Hayward $ 327 $ 337 $ 347 $ 358 $ 375
Orange County Sanitation District $ 308 $ 316 $ 322 $ 327 $ 331
City of Fresno $ 309 $ 309 $ 309 $ 309 $ 309 Note 4
Irvine Ranch Water District $ 221 $ 246 $ 289 $ 309 $ 309 Note 2
Oro Loma Sanitary District $ 195 $ 200 $ 206 $ 221 $ 238
Los Angeles County $ 150 $ 151 $ 155 $ 159 $ 163 Note 3
Notes:
(1)- Data is for the typical SFR customer rate.
(2)- Data represents the usage of 10 hundred cubic feet per unit.
(3)- Data for 2013 and 2014 has been revised to remove ad valorem monies that were inadvertently include
(4)- Data represents the minimum SFR rate not including flow.
(5)- Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month.
Section 1 - Page 7
FY 2017-18 Third Quarter Report
Benchmark Study
Five-Year Cost per MG
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17
Agency Svc.Trt. Cost/MG CosYMG Cost/MG Cost/MG CostIMG Notes
Central Contra Costa Sanitary District B 4 $ 4,622 $ 5,778 $ 6,281 $ 6,454 $ 6,081
San Francisco B 3 $ 5,007 $ 5,400 $ 5,358 $ 5,268 $ 4,916 Note 1
Vallejo Sanitation/Flood Control District B 3 $ 5,435 $ 6,153 $ 5,590 $ 5,396 $ 4,745
Union Sanitary District B 3 $ 3,805 $ 3,832 $ 3,911 $ 3,957 $ 4,039
City of San Diego B 4 $ 3,340 $ 3,156 $ 3,592 $ 3,606 $ 3,834
Dublin San Ramon Services District B 4 $ 2,159 $ 2,507 $ 2,522 $ 2,896 $ 2,961
Sacramento County T 4 $ 2,143 $ 2,375 $ 2,494 $ 2,571 $ 2,752 Note 2
City of Los Angeles B 4 $ 2,062 $ 2,163 $ 2,269 $ 2,452 $ 2,487
East Bay MUD T 3 $ 2,359 $ 2,559 $ 2,728 $ 2,599 $ 2,353
Orange County Sanitation District B 3 $ 1,906 $ 1,935 $ 2,071 $ 2,110 $ 2,055
City of Fresno B 3 $ 1,412 $ 1,552 $ 1,629 $ 1,678 $ 1,796
Los Angeles County B 4 $ 1,008 $ 1,224 $ 1,239 $ 1,371 $ 1,151 Note 3
Legend for Service Provided and Treatment Level:
B-Agency operates both collection and treatment facilities
T-Agency provides treatment services but not collection
3-Secondary treatment
4-Advanced secondary or secondary with some tertiary treatment
Notes:
(1)-Beginning in Fiscal Year 2012-13,dataset represents wastewater finis from finalized publicly available audited documents.
(2)-Mles of sewers number changed in 2012 to include parallel face main pipes par 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
$150,000,000
$100,000,000
$50,000,000
$0
3/31118 Actual Projected 2017-18 2017-18 Capital Outlay
Capital Outlay Capital Outlay Cashfiow Budget
$86,570,595 $124,333,700 $159,060,657
As depicted by the preceding chart, Capital Outlays totaled $86.6 million or 54.4
percent of the capital outlay cash flow budget for FY 2017-18 as of March 31,
2018. Costs are proportionately low through the third quarter as some projects are still
in the design phase or have experienced various delays or deferrals. Examples as of
March 31 are Safety Improvements at Plants Nos. 1 and 2, which has a budget of$10.0
million but actual costs of only $1.5 million and Rehabilitation of Western Regional
Sewers, which has a budget of $9.5 million but actual costs of only $1.8 million.
Overall, the capital outlay costs of the capital improvement program are expected
to approximate $124.3 million, or 78.2 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, 2018, 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,
2018, 81.2 percent of the principal payments have been made through the end of the
third quarter, due to Revenue Refunding Certificate Anticipation Notes Series 2016B to
be refunded in December 2018. Total principal payments are expected to be below
Section 1 - Page 9
FY 2017-18 Third Quarter Report
budget at year-end. 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 $2.0 million or 74.9 percent of the
budget, while expenses were $1.5 million or 63.3 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, 2018
$1,500
$1,400
$1,300
$1,200
$1,100
$1,000
$900
$800
$700
$500
$500
$400
5300
az00
$100
$0 el
'uw Z8
� N j
�eutlget �Aclual
Collection, Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
March 31,2018
$75,000
$70,000
M'000
$00,000
$55,000
$W,000
U5,000
U0,000
$35,000
$30.000
$25,000
$20.000
$15.000
$10,000
$5,000
$o
Eu o' 2 8
Meuaeac Nnmai
Section 2-Page 1
2017-18 Third Quarter Report
Divisional Contributions to Cost Per Million Gallons
For the Nine Months Ended March 31,2018
2017-18
3131116 3131117 Annual 3131119
Actual Actual Budget Actual
Flow in Million Gallons 50,512.69 51,544.05 67525.00 50,691.86
Flow In Million Gallons per Day 183.68 188.12 185.00 185.00
Executive Management Department
General Management Administration $ 30.72 $ 33.41 $ 43.12 $ 34.33
Board Services 7.44 8.08 8.92 9.30
Public Affairs 13.09 14.86 16.42 15.18
Subtotal 51.25 56.35 68.46 58.81
Human Resources Department
Human Resources 56.43 50.33 59.81 56.99
Risk Management/Safety l Security 45.35 60.10 95.17 83.97
Subtotal 101.78 110.43 154.98 140.96
Administrative Services Department
Administrative Services 8S5 7.36 US T.27
Financial Management 47.50 42.21 56.78 5&W
Contacts,Purchasing,&Materials Mgmt. 62.97 61.91 65.49 6T.26
Information Technology 148.83 139.12 156.51 15 L81
Subtotal 267.95 250.60 288.03 262.72
Facilities Support Services Department
Facilities Support Administration 16.86 - - -
Facilities Support 31.16 - - -
Collections Engineering 40.00 - - -
NPDES Source Inspection 34.45 - - -
Odor and Corrosion Control 98.08 - - -
Collection Facilities O&M 56.85
Subtotal 277.40
Environmental Services Department
Environmental Services Administration - 11.86 12.23 12.70
Resource Protection - 79.23 85.27 81.92
Laboratory,Monitoring and Compliance 160.62 158.87 159.17
Subtotal 241.71 256.37 253.79
Engineering Department
Engineering Administration T.17 6.45 6.49 7.25
Planning 50.28 48.48 46.78 47.03
Project Management Office 36.85 39.58 42.49 37.12
Civil and Mechanical Engineering 141.09 123.56 127.80 124.40
Electrical&Control System Engineering - 61.08 77.54 69.64
Environmental Compliance 9&08
Subtotal 333.47 279.15 301.10 285.44
Operations&Maintenance Department
Operations&Maintenance Administration 13.11 6.88 10.89 8.46
Collections Facilities 0&M - 167.47 181.93 191.85
Fleet Services - 29.12 29.10 29.02
Plant No. 1 Operations 485.55 374.65 412.69 382.93
Plant No.20perations 301.91 304.97 287.14 295.68
Plant No. 1 Maintenance 233.22 228.67 216.64 227.12
Maintenance Reliability and Planning - 23.11 114.03 100.99
Plant No.2 Maintenance 167.78 171.25 215.45 184.88
Environmental Laboratory&Ocean Monitoring 12018
Subtotal 1,321.75 1,306.12 1,467.87 1,420.93
Total Operating Expenses 2,353.60 2,244.36 2,536.81 2,442.65
Cost Allocation (285.03) (293.11) (286.81) (313.15)
Net Operating Requirements $ 2,068.57 $ 1,9 11.25 $ 2,2 00.00 $ 2,129.50
Section 2-Page 2
Operating Budget Review
Comparison of Expenses by Department
For the Nine Months Ended March 31,2018
2017-18
M1116 U31117 Year to Date Budget%
Department and Division Actual Actual Budget W31/18 Realized
Executive Management Department
General Management Administration $ 1,551,933 $ 1,721,995 $ 2.911,810 $ 1,740,416 59.77%
Board Services 375,805 416,378 602,340 471,458 78.27%
Public Affairs 661,151 766,109 11108,900 769,519 69.39%
Subtotal 2,588.889 2.904,482 4.623,050 2,981.393 64,49%
Human Resources Department
Human Resources 2,850.633 2.594,345 4.038,470 2,889.181 71,54%
Risk Management/Safety/Security 2,290,593 3,097,847 6,426,070 4,256,740 66.24%
Subtotal 5,141.226 5.692,192 10.464,540 7,145.921 68,29%
Administrative Services Department
Administrative Services 436,875 379,381 624,730 368,6W 59.00%
Financial Management 2,399,205 2,175,718 3,833,990 2,705,945 70.58%
Contracts,Purchasing,&Materials Mgmt. 3,180,634 3,191,115 4,422,300 3,409,316 77,09%
Information Technology 7,517,576 7.170,618 10.568,540 7,847,646 74.25%
subtotal 13,534,290 12,916,832 19,449,560 14,331,514 73.69%
Facilities Support Services Department
Facilities Support Administration 851,413 - - - 0,00%
Facilities Support 1,573,934 - - - 0.00%
Collections Engineering 2,020,418 - - - 0.00%
NPDES Source Inspection 1,739,984 - - - 0.00%
Odor and Corrosion Control 4,954,267 - - - 0,00%
Collection Facilities 0&M 2,871,400 0.00%
subtotal 14,011,416 - - - 0.00%
Environmental Services Department
Environmental Services Administration - 611,470 825,750 643,868 77.97%
Resource Protection - 4,083,835 5,758,120 4,152,905 72.12%
Laboratory,Monitoring and Compliance 7763786 10727,570 8,068.630 75.21%
Subtotal 12,459,091 17,311,440 12,865,403 74.320
Engineering Department
Engineering Administration 362,398 332,514 438,390 367,659 83.87%
Planning 2,539,623 2,499,012 3.158,970 2,383.797 75,46%
Project Management Office 1,861,190 2,040,356 2.868,900 1,881,871 65.60%
CMI and Mechanical Engineering 7,127,049 6,369,027 8,629,930 6,306,084 73.07%
Electrical&Control System Engineering - 3,148,377 5,235,710 3,530,274 67.43%
Environmental Compliance 4,954,520 0,00%
Subtotal 16,844,780 14,389,286 20,331,900 14,469,685 71.17%
Operations&Maintenance Department
Operations&Maintenance Administration 662,192 384,662 735,030 428,922 58.35%
Collections Facilities 0&M - 8,632,002 12,284,740 9,725,442 79,17%
Fleet Services - 1.501,172 1.965,050 1,470.972 74.86%
Plant No.1 Operations 24,526,402 19,310,893 27,866,660 19,411,327 69.66%
Plant No.2 Operation 15,250,445 15,719,496 19,389,450 14,988,780 77.30%
Plant No.1 Maintenance 11,780,439 11,786,631 14,628,280 11,513,281 78,71%
Maintenance Reliability and Planning - 1.191,251 7,700,130 5,119,490 66.49%
Plant No.2 Maintenance 8,474,898 8,827,127 14,548,410 9,371,662 64.42%
Environmental Laboratory&Ocean Monitoring 6,071,382 0.00%
Subtotal 66,765,758 67,323,234 99,117,750 72,029,876 72.67%
Total Operating Expenses 118,886,359 115,685,117 171,298,240 123,823,792 72.29%
Cost Allocation (14,397,165) (15,109,885) (19,394,560) (15,875,284) 81.85%
Net Operating Requirements $ 104,489,194 $ 100,575,232 $ 151,903,680 $ 107,948,508 71.06%
Section 2-Page 3
2017-18 Third Quarter Report
Summary of Collection, Treatment, &Disposal Expenses by Major Category
For the Nine Months Ended March 31,2018
Expense Expense Increase Increase Percent
Budget Through Through (Decrease) (Decrease) Budget Remaining
Description 2017-18 3131/18 3131117 $ % Realized Budget
Salary&Wages $ 70,883,000 51,624,181 49,447,575 $2,176,606 4.40% 72.83% $ 19.258,819
Employee Benefits 22,478,330 17,061,665 17,145,625 (83,960) -0.49% 75.90% 5,416,665
Administrative Expenses 2,026,550 1,560.596 1,148,500 412,096 35.88% 77.01% 465,954
Printing&Publication 403,900 270,726 189,860 80,866 42.59% 67.03% 133,174
Training&Meetings 1,252,320 553,735 623,323 (69.588) -11.16% 44.22% 698,585
Operating Materials&Supplies 15,724,300 11,981,594 10,991,904 989,690 9.00% 76.20% 3,742,706
Contractual Services 24,489,090 17,329,278 17,320,602 8,676 0.05% 70.76% 7,159,812
Professional Services 5,125,990 2,786,594 2,228,015 558,579 25.07% 54.36% 2,339,396
Research&Monitoring 889,400 572,801 524,509 48,292 9.21% 64.40% 316,599
Repairs&Maintenance 15,945,110 12,037,858 9,524,542 2,513,316 26.39% 75.50% 3,907,252
Utilities 7,898,590 5,339.810 4,683,734 656,076 14.01% 67.60% 2,558,780
Other Materials,Supplies,
and Services 4,181,660 2,704,954 1,856,928 848,026 45.67% 64.69% 1,476,706
Net Cost Allocation (19,394,560) (15,875,2114) (15,109,885) (765,399) 5.07% 81.85% (3,519,276)
Net Operating Requirements 151,903,680 107,948,508 100,675,232 7,373,276 7.33% 71.06% 43,955,172
Gallonage Flow(MG) 67,525.00 50,691.86 51,544.05 (852.19) -1.65%
Gallonage Flow(MGD) 185.00 185.00 188.12 (3.12) -1.66%
Gallonage Flow($'a/MG) $2,250000 $2,129.50 $1,951.25 $178.25 9.14%
Section 2-Page 4
Operating Budget Review
Summary of Revenues
For the Nine Months Ended March 31, 2018
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2017-18 3131/18 Realized Budget 3/31/17 $ %
Service Fees $291,158,000 $190,727,130 65.51% $100,430,870 $179,469,176 $ 11,257,954 6.27%
Permit Fees 12,925,000 13,576,234 105.04% (651,234) 9,576,898 3,999,336 41.76%
Inter District Sewer Use-SAWPA&SBSD 3,263,000 2,109,249 64.64% 1,153,751 2,413,258 (304,009) -12.60%
Inter District Sewer Use-IRWD 4,552,800 1,622,381 35.63% 2,930,419 (3,640,415) 5,262,796 144.57%
Sludge Disposal-IRWD 5,880,000 3,425,171 58.25% 2A54,829 11,516,699 (8,091,528) -70.26%
Capital Assessments-IRWD 5,375,000 2,459,944 45.77% 2,915,056 1,712,992 746,952 43.61%
Capital Facilities Capacity Charges 9,900,000 11,375,481 114.90% (1,475,481) 8,094,689 3,280,792 40.53%
Debt Proceeds - - N/A - 195,083,269 (195,083,269) -100.00%
Property Taxes 93,666,000 63,263,299 67,54% 30,402,701 55,307,967 7,955,332 14.38%
Interest Earnings 8,398,000 884,423 10.53% 7,513,577 1,543,527 (659,104) 42.70%
CIP Reimbursements 2,130,000 1,583,532 74.34% 546,468 - 1,583,532 N/A
Wastehauler 800,000 488,944 61A2% 311,056 716,662 (227,718) -31.77%
CNG Sales 420,000 113,952 27.13% 306,048 331,711 (217,759) -65.65%
Rents&Leases 255,000 351,517 137.85% (96,517) 194,238 157,279 80.97%
Other Revenues 475,000 210,660 44.35% 264,340 269,604 (58,944) -21.86%
Power Sales 30,000 22,532 75.11% 7,468 37,555 (15,023) 40.00%
Other Sales 45,000 67,212 149.36% (22,212) 48,875 18,337 37.52%
Total Revenues $439,272,800 $292,281,661 66.54% $146,991,139 $462,676,705 $(170,395,044) -36.83%
Section 2-Page 5
2017-18 Third Quarter Report
Summary of Collection,Treatment, &Disposal Expenses by Line Item
For the Nine Months Ended March 31, 2018
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2017-18 Y31118 Expensed Budget 3131/17 $ %
Salaries.Wages&Benefits
Salaries&Wages $ 70,883,000 $ 51,624,181 72.83% $ 19,258,819 $ 49,447,575 $ 2,176,606 4.40%
Employee Benefits
Retirement 10,792,800 8,415,343 77.97% 2,3T',457 8,573,349 (158,0N) -1.84%
Group Insurances 10,421,800 7,601,652 72.94% 2,820,148 7,102,677 498,975 7.03%
Tuition&CertlAcation Relmb 102,000 77,427 75.91% 24,573 80,407 (2,980) -3.71%
Ed..degrees,Cart.&Lic. 380,700 360,805 N.TT% 19,895 312,062 48,743 15.62%
Uniform Rental 110,600 100,326 90.71% 10,274 87,655 12,671 14.46%
Workers'Compensation 554,330 415,749 75.00% 138,581 897,226 (481,477) -53.66%
Unemployment Insurance 24,700 22,212 89.93% 2,488 14,048 8,164 58.12%
EMT Supplemental BenerRe 91,400 68,151 74.56% 23,249 78,201 (10,050)
Total Benefits 22,478,330 17,061,665 75.90% 5,416,665 17,145,625 (83,960)
Salaries,Wages&Benefits 93,361,330 68,685,846 73.57% 24,675,484 66,593,200 2,092,61 3.14%
Mall.Supply,&Services
Administrative Expenses
Memberships 615,130 528,568 85.93% 86,562 483,474 45,094 9.33%
Office Exp-Supplies 66,220 43,393 65.53% 22,827 45,523 (2,130) 4.68%
Postage 320,570 289,384 90.27% 31,186 27,969 261,415 934.66%
Books&Publications 41,530 21,310 51.31% 20,220 25,754 (4,444) -17.26%
Forms 550 190 34.55% San - 190 N/A
Smell Computer Items 750,000 521,811 69.57% 228,189 494,526 27,285 5.52%
Minor Furniture&Fixtures 232,550 155,940 67.N% 76,610 71,254 84,686 118485%
Subtotal 2,026,550 1,560,596 77.01% 465,954 1,14&500 412,096 35.88%
Printing&Publication
Repro-In-House 243,960 145,077 59.47% 96,883 141,396 3,681 2.60%
Pirm ing-Outside 112,560 75,137 66.75% 37,423 8,925 66,212 741.87%
Notices&Ads 47,330 50,168 106.00% (2,838) 39,539 10,629 26.88%
Photo Processing 50 3" 688.00% (294) 3" N/A
Subtotal 403,900 270,726 6703% 133,174 189,860 80,866 42.59%
Training&Meetings
Meanings 198,620 75,647 38.09% 122,973 79,N4 (4,337) -5.42%
Training 1,053,700 478,088 45.37% 575,612 543,339 (65,251)
Subtotal 1,252,320 553,735 44.22% 696,585 623,323 (69,588) -11.16%
Operating Mal&Supplies
Chemical Coagulants 5,225,000 4,078,872 TB.N% 1,146,128 3,827,411 251,461 6.57%
Odor Control 7,494,000 5,656,943 75.49% 1,837,057 5,144,367 512,576 9.96%
Disinfection 307,600 137,703 44.TT% 169,897 140,780 (3,077) -2.19%
Chemicals-Mist&Cogan 342,000 264,612 77.37% TT,388 224,707 39,905 17.76%
Gasoline,Diesel&Oil 565,790 338,316 59.80% 227,474 397,487 (59,171) -14.89%
Tools 401,500 299,387 74.57% 102,113 219,384 80,003 36.47%
Safety equlpmentitools 517,290 598,523 115.70% (81,233) 442,313 156,210 35.32%
Soly,Paine,&Jan.Supplies 91,600 69,803 76.20% 21,797 60,178 9,625 15.99%
Lab Chemicals&Supplies 587,160 416,232 70.89% 170,928 416,942 (710) -0.17%
Other Operating Supplies 18&360 1N,196 55.32% 84,164 117,304 (13,108) -11.17%
Property To.Fees 4,000 17,007 425.18% (13,007) 1,031 15,976 1549.561%
Subtutal 15,724,300 111981,594 76.20% 3,742,706 10,991,904 989,690 9.00%
Contractual Services
Solids Removal 15,900,000 11,789,054 74.14% 4,110,946 12,78$999 (996,945) -9.80%
Other West.Disposal 9N1040 538,407 54.38% 451,633 609,058 (70,651) -11.60%
Groundskeeping 129,720 122,429 94.N% 7,291 115,145 7,284 6.33%
Janitorial 36S440 275,945 75.W% 90,495 269,578 6,367 2.36%
Outside Lab Services 2N,MO 110,896 44.36% 139,104 86,156 24,740 28.72%
Oxygen 375,000 229703 61.25% 145,297 252,460 (22,757) -9.01%
County Service Fee 656,700 43,847 6.66% 614,853 45,213 (1,366) -3.02%
Temporary Services 1,637,190 1,193,277 77.63% 343,913 454,756 738,521 162.40%
Security Services 1,600,000 1,195,235 74.70% 404,765 828,882 366,353 44.20%
Other 2,682,000 1.830,485 68.25% 851,515 1,873,355 (42,870)
Subtotal 24,489,090 17,329,278 70.76-A 7,159,812 17,320,602 8,676 0.05%
(Continued)
Section 2-Page 6
Operating Budget Review
Summary of Expenses by Line Item
For the Nine Months Ended March 31,2018
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2017-18 Y31118 Expenses! Budget 3131117 $ %
Continued:
Processional Services
Legal 977,000 1,012,052 103S9% (35,052) 877,711 134,341 1&31%
Audit&Accounting 259,300 114,632 44.21% id6,668 72,056 42,576 59.09%
Engineering 1,758,0W 756,1W 43.01% 1,001,864 359,471 396,665 110.35%
Ervin,Scientific Consulting 150,800 68,843 45.65% 81,957 35,674 33,169 92.98%
Software PMm Consulting 416,000 195,024 4&88% 220,976 286,540 (91,516) -31.94%
Advocacy Efforts 176,000 120,250 68.32% 55,750 122,620 (2,370) -1.93%
Industrial Hygiene Services 50,000 53,342 106.68% (3,342) 45,494 7,848 17.25%
Labor Negotiation Services 20,000 - 0.00% 20,000 56,350 (56,350) -100.00%
Other 1,318,890 466,315 3&36% 862,575 372,099 94,216 25.32%
Subtotal 5,125,990 2,786,594 54.36% 2,339,396 2,228,015 558,579 25.07%
Research&Monitoring
Environmental Monitoring 369,200 251,326 6&07% 117,874 221,577 29,149 13A3%
Air Quality Monitoring 95,200 2,725 2.86% 92,475 2,932 (207) -7.06%
Research 425,000 318,750 75.00% 105,250 300,000 18,750 625%
Subtotal 889,400 572,801 64.40% 316,599 524,509 48,292 921%
Repairs&Maintenance
Materials&Services 13,078,200 10,012,012 76.55% 3,066,188 7.866,335 2,145,677 27.28%
Svc.Mlc.Agreements 2,866,910 2,025,846 70.66% 841,064 1,658,207 367,639 22.17%
Subtotal 15,946,110 12,037,80 ]5.50% 3,907,252 9,524,542 2,513,316 2&39%
Utilities
Telephone 400,000 341,245 85.31% 58,755 236,305 104,940 44.41%
Diesel For Generators 14,290 7,148 50.02% 7,142 4,760 2,398 50A8%
Natural Gas 780,500 392,705 50.31% 387,795 404,302 (11,597) -2.87%
Purser 6,037,0W 4,156,239 68.85% 1,880,761 3.606,859 549,380 15.23%
Water 666,800 442,473 66.36% 224,327 431,510 10,955 2.54%
Subtotal 7,898,590 6,339,810 87,60% 2,558,780 4,683,734 656,076 14.01%
Other Operating Supplies
Outside Equip Rental 107,600 93,219 86.63% 14,301 63,779 29,440 46.16%
Insurance Premiums 32,000 26,353 82.35% 5,647 31,049 (4,696) -15A2%
Prop&Gen Liab Insurance 2,110,870 1,583,154 75.00% 527,716 833,328 749,826 89.98%
Freight 71,560 71,269 99.59% 291 53,001 18,268 MA7%
Misc.Operating Expense 259,250 196,983 75.98% 62,267 136,754 60,229 44.04%
Regulatory Operating Fees 716,900 637,842 89A0% 78,058 696,808 (58,966) -&46%
Subtotal 3,297,180 2,608,820 79.12% 688,360 1,814,719 794,101 43.76%
General Mgr Contingency
&Reappmpriations 665,500 0.00% 665,500 N/A
Other NOo-Oper Expense 218,980 96,134 43.90% 122,846 42,209 53,925 127.76%
Total Materials,
Supplies&Services 77,936,910 55,137,946 70.75% 22,798,964 49,091,917 6,046,029 12.32%
Total Expenditures 171,298,240 123,823,792 72.29% 47,474,448 115,685,117 8,138,675 ].D4%
Cost Allocation (19,394,560) (15,875,284) 81.85% (3,519,276) (15,109,885) (765,399) &07%
Net Operating Requirements $ 151.903,680 $ 107,948,508 71.06% $ 43,955,172 $ 100.575,232 $ 7,373.276 7.33%
Section 2-Page 7
2017-18 Third Quarter Report
Summary of Collection, Treatment,8 Disposal Expenses by Process
For the Nine Months Ended March 31,2018
Increase Increase
Actual Actual (Decrease) (Decrease)
3/31/18 3/31/17 $ %
Process:
Preliminary Treatment $ 4,934,969 $ 5,974,349 $ (1,039,380) -17.40%
Primary Treatment 9,173,616 7,561,814 1,611,802 21.32%
Secondary Treatment 5,894,986 5,783,658 111,328 1.92%
Cryogenic Plant(Plant 2) 445,733 483,506 (37,773) -7.81%
Ef0uent Disposal 439,667 463,598 (23,931) -5.16%
Solids Handling 32,252,408 33,382,002 (1,129,594) -3.38%
Cogeneration 13,944,722 9,586,630 4,358,092 45.46%
Utilities 2,437,164 2,182,329 254,835 11.68%
Electrical Distribution 1,175,555 1,024,199 151,356 14.78%
Miscellaneous Buildings 8,028,368 6,750,270 1,278,098 18.93%
External Location 54,019 32,237 21,782 67.57%
Nedssa Vessel 174,594 162,216 12,378 7.63%
North County Yard - 2,084 (2,084) -100.00%
Laboratory 11,915,018 11,317,240 597,778 5.28%
Collections 17,077,689 15,869,100 1,208,589 7.62%
Net Operating Requirements $ 107,948,508 $ 100,575,232 $ 7,373,276 7.33%
Section 2-Page 8
Operating Budget Review
Staffing Trends
Full Time Equivalents
March 31, 2018
700
650 624 624 624 627 635
600 36 52
550
:1
500
450
6/30/14 6130115 6/30/16 6130/17 3/31/18
8Actua1 8Va.a t
At March 31, 2018, the total head count was 612 employees, or a full time equivalency of 594.
Section 2-Page 9
2017-18 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 31,2018
MCollectlons Facilll 119%
eHeadearks: 07%
ePdmary TreamenC 3.3%
oSecondary Treatment 06%
MSolids Handling&Olgestion: 28 9%
GOcean outfall S,W ms: 13.1.0%
outility Systeme: 6.4%
MProcess Related Special Projecle: 1,8%
Mlnlormatlen Management Systems: 3 2%
MStrategic&Master Planning: 2.3%
Ill Management Projects: 0.1%
MResearch: 0.3%
OSuppod Faaltlies: 15.3%
'A
Mothers: 0.1%
MPdor Year Treatment Projects: 0.0%
MCapilal Equipment Purchases: 2.0%
Total Capital Improvement Outlays-$86,570,595
ReplacemenIlRehabilitation: 51%
Improved Treatment: 15%
❑Additional Capacity: 18%
■Support: 16%
Total Capital Improvement Outlays-$86,570,595
Section 3- Page 1
FY 2017-18 Third Quarter Report
Summary of Capital Improvement Construction Requirements -Current Year
For the Nine Months Ended March 31, 2018
2017-18 2017-18 2017-18
Cashflow Actual at Projected
Budget 3/31/2018 Outlay
Collection System Improvement Projects
Collections Facilities
Raitt and Bristol Street Sewer Rehab& Extension 68,623 - -
Santa Ana River Interceptor(SARI) Realignment 201,407 55,411 55,500
SARI Rock Stabilizers Removal 515,545 207,066 309,400
Newhope-Placentia Trunk Grade Separation Replacements 132,306 17,181 57,500
Newhope-Placentia Trunk Replacement 9,464,252 3,648,894 4,083,700
Lakeview Grade Separation Project 114,950 88,628 88,700
Tustin Rose OCTA Grade Separation Project 64,700 13,574 15,600
Orangethorpe OCTA Grade Separation 12,901 10,796 10,800
Seal Beach Pumping Station Upgrade and Rehabilitation 4,375,967 511,497 1,484,700
Rehabilitation of Western Regional Sewers 9,528,506 1,768,335 4,241,700
Interstate 405 Widening Project Impacts on OCSD Sewers 36,860 46,472 165,000
Newport Force Main Rehabilitation - 109,475 149,400
Bay Bridge Pumping Station Replacement 709,700 257,877 578,500
Newport Beach Pump Stations Odor Control Improvements 67,514 - -
District 6 Trunk Sewer Relief 4,616,301 2,914,182 2,921,600
Gisler-Redhill System Improvements, Reach"B" 6,698,851 4,124,455 5,017,600
MacArthur Pumping Station Rehabilitation 41,271 - -
Master Facilities Engineering Projects-Collections 3,795,001 581,198 1,462,700
Master Planning Studies-Collections - 912,991 1,473,900
Research Program-Collections - 4,976 36,200
Bay Bridge Pump Station and Force Mains Rehab Study 90,344 56,276 69,000
Additional Charges to CIP Closed at 6/30/17 171,177 171,200
Subtotal-Collections Facilities 40,534,999 15,500,461 22,392,700
Revenue Area 14
Newport Force Main Rehabilitation (2.18%) 2,440 3,400
Subtotal-Revenue Area 14 2,440 3,400
Total Collection System Improvement Projects 40,534,999 15,502,901 22,396,100
(Confined)
Section 3-Page 2
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2018
2017-18 2017-18 2017-18
Cashflow, Actual at Projected
Budget 3/3112018 Outlay
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 7,229,469 2,986,131 4,116,900
Truck Line Odor Control Improvements P1 35,245 53,809 122,600
Headworks Modifications at P2 for GWRS Final Expansion 1,789,057 1,018,108 2,327,800
Subtotal -Headworks 9,053,771 4,058,048 6,567,300
Primary Treatment
Primary Clarifiers Repl & Impr at Plant No. 1 - 133 200
A-Side Primary Clarifiers Repl. at P2 7,038,302 2,851,184 5,096,300
Subtotal-Primary Treatment 7,038,302 2,851,317 5,096,500
Secondary Treatment
Return Activated Sludge Piping Replacement Plant No.1 263,483 259,307 512,100
Activated Sludge Aeration Basin Deck Repair at P2 1,638,294 212,135 748,800
Return Activated Sludge Piping Replacement at P2 487,352 71,684 339,600
Subtotal -Secondary Treatment 2,389,129 543,126 1,600,500
Solids Handling& Digestion
Digester Rehabilitation at Plant 1 2,306,580 517,027 765,900
Sludge Dewatedng and Odor Control at Plant 1 13,707,858 6,937,280 9,234,300
Solids Thickening and Processing Upgrades 267 83,406 273,000
Plant No.2 Digester Facilities Rehabilitation 159,528 296,495 558,600
Sludge Dewatedng and Odor Control at Plant 2 20,049,153 17,160,068 21,731,800
Interim Food Waste Receiving Facility 440,383 36,011 50,200
Subtotal-Solids Handling &Digestion 36,663,769 25,030,287 32,613,800
Ocean Ouffall Systems
Final Effluent Sampler and Building Area Upgrades 541,037 74,780 117,000
Ocean Outfall System Rehabilitation 7,471,473 11,229,846 12,981,600
Subtotal-Ocean Outfall Systems 8,012,510 11,304,626 13,098,600
Utility Systems
Cengen Emissions Control Project 251,540 66,118 66,200
Digester Gas Facilities Rehabilitation 733,218 423,204 492,700
Natural Gas Pipelines Repl at Plant No. 1 and 2 88,946 24,890 24,900
Electrical Power Distribution System Improvements - - 48,700
Uninterruptable Power Supply Impr. at P1 45,512 13,294 20,600
Consolidated Demolition&Utility Improvements at P2 11,646,047 5,015,127 10,905,400
Subtotal-Utility Systems 12,765,263 5,542,633 11,558,500
(Confined)
Section 3-Page 3
FY 2017-18 Third Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2018
2017-18 2017-18 2017-18
Cashflow Actual at Projected
Budget 3/31/2018 Outlay
Process Related Special Projects
Safety Improvements at Plants Nos. 1 and 2 9,986,488 1,542,339 3,393,200
Subtotal -Process Related Special Projects 9,986,488 1,542,339 3,393,200
Information Management Systems
Process Control Systems Upgrades - - -
Project Management Information System 1,951,448 414,165 597,200
Power Monitoring &Control Systems at P2 1,764,544 1,195,470 1,313,500
Master Information Technology Capital Program 1,176,832 702,128 1,112,700
Geographic Information System 659,791 188,091 214,100
EAM Software and Process Implementation 658,725 159,152 384,200
PDS2D Software Replacement 83,814 10,625 10,700
Process Control System Upgrades Study 963,277 101,176 497,400
Subtotal-Information Management Systems 7,258,431 2,770,807 4,129,800
Strategic& Master Planning
Master Planning Studies 7,004,576 1,994,322 3,567,000
Climate Change Impact Study 147,135 9,064 18,800
Subtotal-Strategic&Master Planning 7,151,711 2,003,386 3,585,800
Water Management Projects
GWRS Final Expansion Coordination 86,651 73,173 98,200
Subtotal -Water Management Projects 86,651 73,173 98,200
Research
Research Program 1,305,436 247,619 3a4,500
Subtotal-Research 1,305,436 247,619 3a4,500
Support Facilities
Master Facilities Engineering Projects- Plant 9,675,530 2,401,279 3,211,800
Pl Fleet Services UST Leak Remediation 1,693,273 74,633 103,200
Master Small Capital Replacement/Rehabilitation 2,308,427 - 40,600
18350 Mt. Langley Property 11,000,000 9,837,936 9,838,000
Title 24 Access Compliance&Building Rehab Project 1,709,156 513,664 1,473,400
Headquarters Complex, Site& Security&Entrance Realign. 5,389,573 416,965 1,157,100
Site and Security Improvements at Plant No.2 10,881
Subtotal-Support Facilities 31,786,840 13,244,477 15,824,100
(Confined)
Section 3-Page 4
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2018
2017-18 2017-18 2017.18
Cashflow Actual at Projected
Budget 3/31/2018 Outlay
Others
Interstate 405 Widening Impacts on OCSD Front Entrance 16,451 21,672 21,700
P2 Southwest Perimeter Screening 46,606 24,042 36,400
Capital Improvement Program Mgmt. Services 23,600 23,600
Subtotal -Others 63,057 69,314 81,700
Additional Charges to CIP Completed at 6130/17 25,740 25,800
Total Treatment and Disposal Projects 133,561,358 69,306,892 98,058,300
Capital Equipment Purchases 3,879,300 1,760,802 3,879,300
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 177,975,657 86,570,595 124,333,700
Less: CIP Savings and Deferrals (18,915,000)
Net Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $159,060,657 $ 86,570,595 $124,333,700
Section 3- Page 5
FY 2017-18 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2018
Current Total
Approved June 30,2017 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2018 Budget
Collection System Improvement Projects
Collections Facilities
Raiff and Bristol Street Sewer Rehab&Extension 13,622,000 259,075 - 259,075 13,362,925
Santa Ana River Interceptor(SARI)Realignment 11,404,000 5,673,355 55,500 5,728,855 5,675,145
SARI Rock Stabilizers Removal 6,860,000 410,508 309,400 719,908 6,140,092
Taft Branch Sewer Relief 1,928,000 12,083 - 12,083 1,915,917
Newhope-Placentia Trunk Grade Separation Replacements 4,300,000 4,059,157 57,500 4,116,657 183,343
Newhope-Placentia Trunk Replacement 112,000,000 30,442,121 4,083,700 34,525,821 77,474,179
Yoffie Linda Pumping Station Abandonment 7,053,000 - - - 7,053,000
Lakeview Grade Separation Project 330,000 70,262 88,700 158,962 171,038
Tustin Rose OCTA Grade Separation Project 586,000 423,587 15,600 439,187 146,813
Orangethorpe OCTA Grade Separation 1,505,000 1,482,972 10,800 1,493,772 11,228
Beach Trunk/Kaod Interceptor Sewer Relief 118,678,000 - - - 118,678,000
Seal Beach Pumping Station Upgrade and Rehabilitation 54,000,000 3,583,755 1,484,700 5,068,455 48,931,545
Rehabilitation of Western Regional Sewers 217,069,000 7,706,718 4,241,700 11,948,418 205,120,582
Interstate 405 Widening Project Impacts on OCSD Beware 528,000 2,866 165,000 167,866 360,134
Newport Force Main Rehabilitation 58,367,238 58,147,927 149,400 58,297,327 69,911
Crystal Cove Pumping Station Rehabilitation 10,882,000 - - - 10,882,000
Bay Bridge Pumping Station Replacement 64,000,000 217,700 578,500 796,200 63,203,800
Newport Beach Pump Stations Odor Control Improvements 4,066,000 - - - 4,066,000
District 6 Trunk Sewer Relief 7,965,000 1,791,858 2,921,600 4,713,458 3,251,542
Gisler-Redhill System Improvements,Reach"1" 25,213,000 18,093,894 5,017,600 23,111,494 2,101,506
MacArthur Pumping Station Rehabilitation 8762,000 - - - 8,762,000
Main Street Pump Station Rehabilitation 39,219,000 - - - 39,219,000
Gisler Red-Hill Interceptor Rehabilitation 15,300,000 - - - 15,300,000
Edinger/Bolsa Chica Trunk Improvements 5,159,000 - - - 5,159,000
Edinger Pumping Station Rehabilitation 8,880,000 - - - 8,880,000
Slater Avenue Pump Station Rehabilitation 9,729,000 - - - 9,729,000
Master Facilities Engineering Projects-Collections 14,192,000 816,413 1,462,700 2,279,113 11,912,887
Master Planning Studies-Collections 5,046,200 1,533,083 1,473,900 3,006,983 2,039,217
Research Program-Collections 74,000 - 36,200 36,200 37,800
Bay Bridge Pump Station and Force Mains Rehab Study 725,000 505,121 69,000 574,121 150,879
Additional Charges to CIP Closed at 6130117 171,200 171,200 (171,200)
Subtotal-Collections Facilities 827,442,438 135,232,455 22,392,700 157,625,155 669,817,283
Revenue Area 14:
Newport Force Main Rehabilitation(2.18%) 1,300,762 1,295,875 3,400 1,299,275 1,487
Subtotal-Revenue Area 14 1,300,762 1,295,875 3,400 1,299,275 1,487
Total Collection System Improvement Projects 828743,200 136,528,330 22,396,100 158,924,430 669,818,770
(Continued)
Section 3-Page 6
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2018
Current Total
Approved June 30,2017 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2018 Budget
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 436,000,000 6,084,545 4,116,900 10,201,445 425,798,555
Truck Line Odor Control Improvements P1 9,299,000 9,035,390 122,600 9,157,990 141,010
Headworks Modifications at P2 for GWRS Final Expansion 54,000,000 229,284 2,327,800 2,557,084 51,442,916
Subtotal-Headworks 499,299,000 15,349,219 6,567,300 21,916,519 477,382,481
Primary Treatment
Primary Clarifier&Trickling Filter Odor Control at P1 74,800,000 - - - 74,800,000
Primary Clarifiers Repl&Impr at Plant No.1 112,000,000 520,619 200 520,819 111,479,181
A-Side Primary Clarifiers Repl.at P2 491,000,000 4,817,329 5,096,300 9,913,629 481,086,371
Subtotal-Primary Treatment 677,800,000 5,337,948 5,096,500 10p34,448 667,365,552
Secondary Treatment
Return Activated Sludge Piping Replacement Plant No.1 3,979,000 34,632 512,100 546,732 3,432,268
Activated Sludge Aeration Basin Deck Repair at P2 2,800,000 264,277 748,800 1,013,077 1,786,923
Return Activated Sludge Piping Replacement at P2 15,000.000 7,050 339,600 346,650 14,653,350
Subtotal-Secondary Treatment 21,779,000 305,959 1,600,500 1,906,459 19,872,541
Solids Handling&Digestion
Digester Rehabilitation at Plant 1 67,150,000 64,908,366 765,900 65,674,266 1,475,734
Sludge Dewatering and Odor Control at Plant 1 188,328,000 165,772,702 9,234,300 175,007,002 13,320,998
Solids Thickening and Processing Upgrades 48,150,000 47,879,175 273,000 48,152,175 (2,175)
Plant No.2 Digester Facilifies Rehabilitation 49,220,000 196,634 558,600 755,234 48,464,766
Sludge Dewatering and Odor Control at Plant 2 90,477,000 46,648,765 21,731,800 68,380,565 22,096,435
Interim Food Waste Receiving Facility 5,400,000 - 50,200 50,200 5,349,800
Digester P,Q,R,&S Replacement 158,000,000 1585000,000
Subtotal-Solids Handling&Digestion 606,7255000 325,405,642 32,613,800 358,019,442 2485705,558
Ocean Oulfall Systems
Final Effluent Sampler and Building Area Upgrades 16,411,000 15,925,650 117,000 16,042,650 368,350
Ocean Outfall System Rehabilitafion 166,0005000 8,813,199 12,981,600 21,794,799 144,205,201
Subtotal-Ocean Oulfall Systems 182,4115000 24,738,849 13,098,600 37,837,449 144,573,551
Utility Systems
Cengen Emissions Control Project 23,820000 22,247,572 66,200 22,313,772 1,506,228
UPS System Upgrades 8,087,000 - - - 8,087,000
Digester Gas Facilities Rehabilitation 96,500,000 181,030 492,700 673,730 95,826,270
Natural Gas Pipelines Repl at Plant No.1 and 2 1,310,000 24,928 24,900 49,828 1,260,172
Electrical Power Distribution System Improvements 34,608,000 - 48,700 48,700 34,559,300
(Cordnued)
Section 3-Page 7
FY 2017-18 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2018
Current Total
Approved June 30,2017 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2018 Budget
Utility Systems(continued)
Central Generation Rehab at Plant No. 1 87,000,000 - - - 87,000,000
Unintermptable Power Supply Impr.at P1 4,800,000 3,351 20,600 23,951 4,776,049
Consolidated Demolition&Utility Improvements at P2 30,300,000 5,453,054 10,905,400 16,358,454 13,941,546
Central Generation Rehab at Plant No.2 114,000.000 114,000,000
Subtotal-Utility Systems 400,425.000 27,909,935 11,558,500 39,468,435 360,956,565
Process Related Special Projects
Safety Improvements at Plants Nos.l and 2 19,000.000 1,606,938 3,393,200 5,000,138 13,999,862
Subtotal-Process Related Special Projects 19,000.000 1,606,938 3,393,200 5,000,138 13,999,862
Information Management Systems
Process Control Systems Upgrades 102,399,000 - - - 102,399,000
Project Management Information System 4,000,000 701 597,200 597,901 3,402,099
Power Monitoring&Control Systems at P2 5,000,000 2,211,062 1,313,500 3,524,562 1,475,438
Master Information Technology Capital Program 10,000,000 573,006 1,112,700 1,685,706 8,314,294
Geographic information System 4,568,000 2,456,512 214,100 2,670,612 1,897,388
EAM Software and Process Implementation 7,500,000 4,765,108 384,200 5,149,308 2,350,692
PDS2D Software Replacement 530,000 352,351 10,700 363,051 166,949
Process Control System Upgrades Study 3,554,000 69,484 497,400 566,884 2,987,116
Subtotal-Information Management Systems 137,551,000 10,428,224 4,129,800 14,558,024 122,992,976
Strategic&Master Planning
Master Planning Studies 23,605,800 6,295,834 3,567,000 9,862,834 13742,966
Climate Change Impact Study 590,000 3,919 18,800 22,719 567,281
Subtotal-Strategic It Master Planning 24,195,800 6,299,753 3,585,800 9,885,553 14,310,247
Water Management Projects
GWRS Final Expansion Coordination 1,132,000 98,200 98,200 1,033,800
Subtotal-Water Management Projects 1,132,000 - 98,200 98,200 1,033,800
Research
Research Program 8,426,000 54,133 384,500 438,633 7,987,367
SCCWRP Nutrient Cycling Sampling 95,000 95,000 95,000
Subtotal-Research 8,521,000 149,133 384,500 533,633 7,987,367
(Continued)
Section 3-Page 8
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31, 2018
Current Total
Approved June 30,2017 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2018 Budget
Support Facilities
Master Facilities Engineering Projects-Plant 28,373,000 6,269,643 3,211,800 9,481,443 18,891,557
P1 Fleet Services LIST Leak Remediation 14,952.000 194,404 103,200 297,604 14,654,396
Master Small Capital ReplacementlRehabilitation 15,622,000 626,765 40,600 667,365 14,954,635
18350 Mt.Langley Property 11,000,000 - 9,838,000 9,838,000 1,162,000
Title 24 Access Compliance&Building Rehab Project 18,400,000 13,852,170 1,473,400 15,325,570 3,074,430
Headquarters Complex,Site&Security&Entrance Realign. 179,067,000 528,437 1,157,100 1,685,537 1]],381,463
Site and Security Improvements at Plant No.2 252,000 236,410 - 236,410 15,590
P2 Warehouse Relocation 9,800,000 - - - 9,800,000
P2 Collections Yam Relocation 1,500,000 - - - 1,500,000
TPAD Digester Facility at P2 419,000,000 419,000,000
Subtotal-Support Facilities 697,966,000 21,707,829 15,824,100 37,531,929 660,434,071
Others
Interstate 405 Widening Impacts on OCSD Front Entrance 2,655,000 - 21,700 21,700 2,633,300
Banning Gale Relocation&Grading at Plant No.2 2,931,000 - - - 2,931,000
P2 Southwest Perimeter Screening 2,800,000 - 36,400 36,400 2,763,600
Capital Improvement Program Mgml.Services 300,000 61,180 23,600 84,780 215,220
Subtotal-Others 8,686,000 61,180 81,700 142,880 8,543,120
Additional Charges to CIP Completed at 6130117 25,800 25,800 (25,800)
Total Treatment and Disposal Projects 3,285,490,800 439,300,609 98,058,300 537,358,909 2,748,131,891
Capital Equipment Purchases 16,000,000 9,058,965 3,879,300 12,938,265 3,061,735
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $4,130,234,000 $584,887,904 $124,333,700 $709,221,604 $3,421,012,396
Section 3-Page 9
FY 2017-18 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, 2018
Capital Facilities Budget Review
Balance Year-ta-Date Balance
07/01/17 Additions 3131/18
CONSTRUCTION IN PROGRESS:
Treatment Plant $ 386,799,209 $ 71,067,694 $ 457,866,903
Collection System 75,034,241 15,502,901 90,537,142
Subtotal 461,833,450 86,570,595 548,404,045
PROPERTY,PLANT&EQUIPMENT(at cost):
Land and Property Rights 25,247,046 - 25,247,046
Collection Lines and Pump Stations 830,551,347 - 830,551,347
Treatment Facilities 2,366,129,584 - 2,366,129,584
Effluent disposal facilities 97,014,820 - 97,014,820
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 246,051,157 - 246,051,157
Excess purchase price over book value on acquired assets 19,979,000 19,979,000
Subtotal 3,588,436,190 3,588,436,190
Total Properly,Plant&Equipment&CIP $ 4,050,269,640 $ 86,570,595 $ 4,136,840,235
Debt Service Budget Review
2017-18 Year-to-Date Remaining
Budget Payments %of Budget Budget
Principal Payments by Debt Issue:
2009A COP 4,465,000 4,465,000 100.00% -
2010ABABs - - 0.00% -
2010CBABs - - 0.00% -
2011ACOP 20,960,000 20,960,000 100.00% -
2012ACOP - - 0.00% -
2012BCOP - - 0.00% -
2014ACOP 6,715,000 6,715,000 100.00% -
2015ACOP - - 0.00% -
2016ACOP - - 0.00% -
2016BCANs 7,426,217 - 0.00% 7,426,217
2017A COP 0.00%
Subtotal Principal Payments 39,566,217 32,140,000 81.23% 7,426,217
Interest Expense by Debt Issue:
2009A COP 457,750 306,150 66.88% 151,600
2010A BABs 2,897,639 2,493,707 86.06% 403,932
2010C BABs 6,523,780 5,614,495 86.06% 909,285
2011ACOP 3,872,350 2,598,650 67.11% 1,273,700
2012A COP 3,735,900 2,802,000 75.00% 933,900
2012E COP 3,187,400 2,390,500 75.00% 796,900
2014A COP 4,254,500 3,134,900 73.68% 1,119,600
2015A COP 6,375,500 4,781,600 75.00% 1,593,900
2016A COP 6,977,300 5,233,000 75.00% 1,744,300
2016B CANs 865,692 1,648,050 190.37% (782,358)
2017A COP 3,318,500 2,489,917 75.03% 828,583
Subtotal Interest Expense 42,466,311 33,492,969 78.87% 5,588,917
Total Debt Service $ 82,032,528 $ 65,632,969 80.01% $ 13,015,134
Section 4- Page 1
2017-18 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 31,2018
Percent
Actual of Budget Remaining Actual
2017-18 Through Through 2017-18 Through Increase
Budget 3/31/18 3131/18 Budget 3/31117 (Decrease)
Revenues:
In-Lieu Premiums $ 2,110,870 $ 1,583,154 75.00% $ 527,716 $ 833,328 $ 749,826
Miscellaneous Other Revenue - 3,532 N/A - 8,865 (5,333)
Service Department Allocations 18,700 14,022 74.98% 4,678 14,022 -
Total Revenues 2,129,570 1,600,708 75.17% 532,394 856,215 744,493
Expenses:
Benefits/Claims 100,000 2,500 2.50% 97,500 671,865 (669,365)
Legal Services 130,000 2,706 2.08% 127,294 77,032 (74,326)
Professional Services 25,000 0.00% 25,000 25,976 (25,976)
Subtotal 255,000 5,206 2.04% 249,794 774,873 (769,667)
Policy Premium Expense 1,080,000 901,583 83.48% 178,417 878,290 23,293
Total Expenses 1,335,000 906,789 67.929/6 428,211 1,653,163 (746,374)
Excess Revenue(Expense) 794,570 693,919 $ 104,183 (796,948) 1,490,867
Beginning Reserves 54,205,430 54,445,772 55,252,299 (806,527)
Ending Reserves $55A00,000 $55,139,691 $ 54. 555.351 $ 884,340
Section 5-Page 1
FY 2017-18 Third Quarter Report
Workers' Compensation Fund Budget Review
For the Nine Months Ended March 31,2018
Percent
Actual of Budget Remaining Actual
2017-18 Through Through 2017-18 Through Increase
Budget 3/31/18 3/31/18 Budget 3131117 (Decrease)
Revenues:
In-Lieu Premiums $ 554,330 $ 415,747 75.00% $ 138,583 $ 897,225 $ (481,478)
Miscellaneous Other Revenue 10,000 - 0.00% 10,000 - -
Total Revenues 564,330 415,747 73.67% 148,583 897,225 (481,478)
Expenses:
Benefits/Claims 600,000 333,693 55.62% 266,307 236,299 97,394
Legal Services 175,000 71,415 40.81% 103,585 29,361 42,054
Professional Services 65,000 45,657 70.24% 19,343 50,307 (4,650)
Subtotal 840,000 450,765 53.66% 389,235 315,967 134,798
Policy Premium Expense 200,000 145,184 72.59% 54,816 148,421 (3,237)
Total Expenses 1,040,000 595,949 57.30% 444,051 464,388 131,561
Excess Revenue(Expense) (475,670) (180,202) $ (295,468) 432,837 (613,039)
Beginning Reserves 2,475,670 2,464,418 1,913,178 551,240
Ending Reserves $ 2,000,000 _L 2.284,216 $ 2.346,015 $ (61,799)
Section 5-Page 2
9
bm
April 30, 2018
STAFF REPORT
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2018
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, 2018. The Liquid Operating Monies portfolio, with an
average maturity of 66 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 ended March 31, 2018.
OCSD ♦ P.O.Box8127 ♦ Fountain Valley,CA 92]2M12] ♦ (716)%2-2411
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2018
Page 2 of 3
Portfolio Performance Summary
As of March 31,2018
Liquid Operating Monies(%) Long-Term Operating Monies(%)
Total Rate of Total Rate of
Return Benchmark(" Realm Benchnmd 01
3 Months 0.35 0.35 -0.33 -0.45
6 Months 0.64 0.64 -0.57 -0.76
9 Months 0.90 0.91 -0.16 -0.39
12 Months 1.11 1.11 0.31 0.09
Annual¢ed Since inception 30 Nov 2014 0.59 0.48 0.88 0.78
Market Value 92aM S412.8M
Average Quality "AAA'fAal" "AA-YAa1"
Current Yield(%) 1.4 1.9
Estimated Yield to Maturity(%) 1.8 2.4
Quarterly Deposits(Withdmwals) ( 53.0M) 17.5M
Estimated Annual Income 1.5M T8.1 M
(1) Benchmarks:
• Liquid Operating Portfolio: 3-Month Treasury Bill Index
• Long-Term 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 17 124.4 331.8
30 Sep 17 49.5 333.2
30 Dec 17 145.5 396.6
31 Mar 18 92.9 412.8
District's Investment Account Balances as of March 31,2018
Book Balances Estimated
Investment Accounts March 31,2018 Yield(%)
State of Calif.LAIF $47,499,172 1.52
Union Bank Checking Account 98,140 0.25
Union Bank Overnight Sweep Account 24,226,838 1.34
Union Bank W/C Checking 33,933 0.25
Union Bank Muller Account 46,603 0.80
Chandler-Short-term Portfolio 92,664,220 1.77
Chandler-Long-term Portfolio 411,064,267 2.42
Petty Cash 3,000 N/A
BNY Mellon OCIP Reserve 3,612,420 0.75
TOTAL $579 248 593 2.19
Debt Service Reserves w/Trustees $ B35 Z 1.50
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2018
Page 3 of 3
District's Cost of Funds on Debt Issues as of March 31, 2018
Annual
Cost of Funds Outstanding Interest
Issue Description COP Balance Rate(%)
2009A Fixed S4,690,000 4.72
2010A Fixed 80,000,000 3.68
201 OC Fixed 157,000,000 4.11
2011A Fixed 75,370,000 2.61
2012A Fixed 100,645,000 3.54
2012B Fixed 66,395,000 1.50
2014AFixed 78,375,000 2.34
2015A Fixed 127,510,000 3.30
2016A Fixed 145,880,000 3.02
2016B Fixed 109,875,000 0.87
2017A Fixed 66.370 000 2.55
TOTAL $I 012.11(t01N1
Weighted Avg.Cost of Funds 2.89
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 LAIF
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 with
Liberty Mutual
8. Investment Listing -Yield
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, 2018
Mr. Lorenzo Tyner
Director of Finance
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Lorenzo,
Bond Market Recap
The Federal Open Market Committee (FOMC) raised the fed funds target rate to a range of
1.50%-1.75% at the March 21 meeting, as expected. The vote was unanimous. In the policy
statement, the Fed said economic activity has been "rising at a moderate rate' which was
somewhat less bullish than the "solid rate" of growth cited in the January statement. Household
and business fixed investment moderated from the fourth quarter. Inflation for items other than
food and energy continues to run below 2.0% but the Fed expects inflation to move up in the
coming months. The FOMC left its median fed funds rate forecast unchanged for 2018 at 2.1%
which implies two more rate hikes by year-end. Although the forecasted median fed funds rate
for 2018 did not change, the dot plot did change with 13 out of 15 FOMC members forecasting
two or more rate hikes this year, compared with 10 out of 16 members at the December 2017
meeting. The fed funds rate targets for 2019 and beyond were revised up slightly. By the end of
2020, the FOMC's median forecast now calls for a fed funds rate of 3.4%. Overall, the Fed
revised their GDP forecasts up slightly, their unemployment forecasts down slightly, and left
their inflation projections mostly unchanged.
We are forecasting GDP growth of about 2.5%-3.0% in 2018, which is in line with the Fed's
forecast and the market consensus. This would equate to an increase over 2017 GDP growth of
2.3%. Overall, economic data remains solid, with the exception of still-sluggish inflation
readings. The economy is at or near full employment, consumer confidence is strong, and
leading indicators suggest the economy will continue to grow.
The Treasury yield curve flattened in March. The 2-year Treasury yield increased slightly to
2.27%from 2.25%, while the 10-year Treasury yield decreased about 12 basis points to 2.86%.
At month end, the spread between 2- and 10-year Treasury yields was just 47 basis points;
quite flat by historical standards. All else being equal, we believe the Fed's plan to normalize the
balance sheet will help promote a steeper yield curve later this year. Tax reform and stronger
economic growth may also help drive yields at the long end of the curve higher. However, we
believe this is somewhat offset by anticipated ongoing monetary policy normalization by the
Fed.
Year-over-year, shorter-term Treasury yields have increased more than longer-term Treasury
yields. The increase in shorter-term rates has been driven by the Federal Reserve's steady
increases in the target fed funds rate. Meanwhile, longer-term rates (which are more closely tied
to inflation expectations and the outlook for economic growth) have remained relatively
contained.
1
C/" CHANDLER
ASSET
MANAGEMENT
Consumer Prices
The Consumer Price Index (CPI) was up 2.4% year-over-year in March, up from 2.2% in
February. Core CPI (CPI less food and energy) was up 2.1% year-over-year in March, up from
1.8% in February. The Personal Consumption Expenditures (PCE) index was up 1.8% year-
over-year in February versus 1.7% in January. Core PCE (excluding food and energy) was up
1.6% on a year-over-year basis in February versus 1.5% in January.
Retail Sales
On a year-over-year basis, retail sales were up 4.0% in February, versus up 3.9% year-over-
year in January. On a month-over-month basis, retail sales decreased 0.1% in February (below
the consensus forecast of +0.4%). Excluding autos and gas, retail sales were up 0.3% in
February, slightly below expectations, following a 0.1% decline in January. Despite ongoing
strength in the labor market and a high level of consumer confidence, consumer spending
remains modest.
Labor Market
U.S. payrolls rose by 103,000 in March, well below the consensus forecast of 175,000. January
and February payrolls were also revised down by a net total of 50,000. On a trailing 3-month
and 6-month basis, payrolls increased by an average of 202,000 and 211,000 per month,
respectively. The unemployment rate was unchanged at 4.1%. The labor participation rate
edged down to 62.9% from 63.0%. A broader measure of unemployment called the U-6, which
includes those who are marginally attached to the labor force and employed part time for
economic reasons, declined to 8.0% from 8.2%. Wages rose 0.3% in March, in line with
expectations. Wages were up 2.7% on a year-over-year basis in March, versus up 2.6% year-
over-year in February. The average workweek was unchanged at 34.5 hours.
Housing Starts
Total housing starts were weaker than expected in February, down 7.0%. Single-family starts
rose 2.9% in January, while multi-family starts fell 26.1%.
2
C/" CHANDLER
ASSET
MANAGEMENT
TREASURYYIELDS 3/3112018 12131/2017 CHANGE
3 Month 1.71 1.38 0.33
2 Year 2.27 1.89 0.40
3 Year 2.38 1.97 0.35
5 Year 2.56 2.21 0.27
7 Year 2.69 2.33 0.16
10 Year 2.74 2.41 0.08
30 Year 2.97 2.74 (0.12)
Economic Data Points to Continued Growth
ECONOMIC INDICATOR Current Release Prior Release One Year Aga
Trade Balance (57.6)$Bln FEB 18 (56.7)$Bln JAN 18 (44A)SBIn FEB 17
GDP 2.9%DEC 17 3.2%SEP 17 1.8%DEC 16
Unemployment Rate 4.1%MAR 18 4.1%FEB 18 4.5%MAR 17
Prime Rate 4.75%MAR 18 4.50%FEB 18 4.00%MAR 17
CRB Index 195.36 MAR 18 193.95 FEB 18 185.88 MAR 17
Oil(West Texas Int.) $64.94 MAR 18 $61.64 FEB 18 $50.60 MAR 17
Consumer Price Index(y/o/y) 2.2%FEB 18 2.1%JAN 18 2.7%FEB 17
Producer Price Index(y/o/y) 2.7%FEB 18 3.0%JAN 18 3.8%FEB 17
Dollar/Euro 1.23 MAR 18 1.22 FEB 18 1.06 MAR 17
S.0 Bloombery
3
C/" CHANDLER
ASSET
MANAGEMENT
Performance Attribution
Long-Term Portfolio
Similar to the prior quarter the Long-Tenn portfolio outperformed the benchmark on a relative
basis but generated negative total returns. The portfolio returned -0.33% versus the -0.45%
return for the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-
A Index, a positive differential of 0.12%. The drivers of the positive relative return were both the
duration positioning of the portfolio, which was lower than the benchmark, and the term
structure of the portfolio, with a tactical underweight in the one to three year portion of the
maturity distribution relative to the benchmark. The one to three portion of the market
underperformed as the Treasury curve continued the bear flattening theme with front end
interest rates rising more than longer maturity interest rates.
The Chandler team added multiple securities to the portfolio across the Treasury, Agency,
Supranational, Asset Backed, Commercial Paper, and Corporate sectors of the market to keep
the portfolio positioning in-line with our strategic targets. The purchased securities ranged in
maturity from February 2018 to February 2023; the majority of the new holdings in the portfolio
were either beyond four years or inside of one year, with less of a focus in the intermediate
portion of the maturity distribution where the portfolio remains underweight. The overall duration
of the portfolio increased to 2.41; below the benchmark duration of 2.56. The Chandler team
will be focusing on adding exposure to the Supranational, Asset Backed, and Corporate sectors
of the market in the coming quarter where relative value opportunities are more attractive
compared to the more expensive Agency sector.
Liquid Portfolio
The Liquidity Portfolio matched the return of the ICE Bank of America 3-Month Treasury-Bill
Index during the quarter, generating a return of 0.35%. The portfolio experienced positive cash
flows totaling $53 million. Many securities were purchased across the Treasury, Agency,
Certificate of Deposit, Commercial Paper, and Corporate sectors of the market to keep the
portfolio as fully invested as possible. Three securities were called and many matured,
including some large positions on March 31, 2018 (a Saturday) which contributed to the large
reported money market fund allocation at the end of the reporting period. Due to issuance
trends from the US Treasury, the Agency discount note market is trading with yields below that
of the US Treasury Bill market, thus the allocation to the Treasury sector is poised to increase
until the market dynamic reverses. Consistent with prior quarters, the Chandler team
opportunistically allocated to spread product across the maturity spectrum, while utilizing the
Treasury and Agency allocation to offset the forecasted liquidity needs of the portfolio.
4
CHANDLER
ASSET
MANAGEMENT
Economic Outlook
The fundamental backdrop of the domestic economy remains solid as GDP growth accelerated
in the second half of 2017; fourth quarter GDP came in at 2.9% compared to 1.8% in the fourth
quarter of 2016. The unemployment rate remains low at 4.1% and non-farm payrolls are robust
with the most recent three month and six month moving averages coming in at 202k and 211 k
through March 2018, respectively. Core inflation has been ticking modestly higher, but
importantly the Core PCE on a year-over-year basis remains below the Federal Reserve's 2.0%
target, with the most recent reading at 1.6%. The Chandler team is keeping a close eye on
wage inflation. Given the aforementioned low unemployment rate the inability of wage inflation
on to accelerate comfortably into the 3.25-3.50% range on a year-over-year basis is an
anomaly. Changing demographic trends and a still elevated U-6 unemployment rate (8.0%
most recently) are contributing factors to the benign wage inflation numbers. Looking out over
the next six to twelve months the risk of a recession in the United States is low.
Risk assets, on the other hand, experienced heightened volatility and negative price action in
the latter two months of the quarter. The magnitude of the price changes on the equity side
from a price perspective felt very significant, but on percentage terms less so. The earnings
backdrop for US corporations is positive, however there is a growing concern market
participants had become too complacent. Throughout 2017 risk markets shrugged off the
negative news; the S&P 500 Equity Index moved higher in eleven of twelve months of 2017.
The beginning of 2018 started out very strong, but as interest rates moved higher and the lack
of continuity in the Trump administration received additional focus, risk assets experienced
negative price action. Investors are also processing the implications of global monetary policy
turning less accommodative, with the Federal Reserve leading the way in gradually removing
accommodation. The annual rotation of voting Federal Reserve Bank Presidents took place in
January and Jerome Powell was sworn in as the new Fed Chair on February 5th. Historically
Powell's voting record is consistent with the prior Chair, Janet Yellen, and market participants
are not forecasting a significant change at the Fed related to the new leadership. Monetary
policy continued to gradually normalize during the quarter with the Federal Open Market
Committee (FOMC) raising the federal funds rate by 25 basis points to a range of 1.50% to
1.75% at the March 21 meeting. The FOMC also continued the balance sheet normalization
program, currently at $20 billion per month ($12 billion in Treasury securities and $8 billion in
mortgage backed and agency securities), which is set to increase $30 billion per month in April
2018. The market has thus far absorbed the reduction in the Federal Reserve's balance sheet
quite well, however the Chandler team expects the term premium in the Treasury market to
ultimately be pressured due to both the greater velocity of balance sheet reduction later in the
year and the increased amount of Treasury issuance due to the recently enacted tax reform bill.
Similar to the prior quarter, interest rates moved higher across all maturities, with shorter
maturity notes continue to lead the way as the Treasury curve continued to experience a
flattening bias. Two year Treasury notes increased by 38 basis points to end the quarter at
2.27% and Ten year Treasury notes increased by 33 basis points to end the quarter at 2.74%.
Spreads in the investment grade fixed income market also came under pressure partially
correlated with the negative price action in equity markets. New issue volume was elevated in
January but tailed off in February and March, compared to the prior year, as the negative price
action in risk assets kept issuers on the sidelines.
5
GAL CHANDLER
ASSET
MANAGEMENT
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Tactically increase the portfolio's exposure to the Corporate sector to 25%; currently
21%.
o Credit spreads have become more attractive in certain sectors with risk assets
coming under some pressure.
o The Chandler team will use a combination of maturing notes in the Credit sector,
as well as reducing the portfolios exposure to the Treasury and Agency
allocations, to accommodate the new holdings in the portfolio.
• The Agency sector continues to profile as expensive in Chandler's judgement and the
allocation to the sector will remain modest compared to the historical experience.
• Short maturity Asset Backed securities remain attractive on a risk adjusted basis and the
team will look to utilize the new issue market to maintain and/or modestly increase
exposure to the sector.
• Exposure to the Supranational asset class will continue to grow as the spreads available
in the sector are superior compared to the Agency sector.
• The duration of the portfolio will increase moderately given the large change in interest
rates over the past six months.
Strategy highlights for the Liquidity Portfolio in coming months:
• Continue to ladder the Treasury and Agency exposure to coincide with forecasted
liquidity needs.
• Opportunistically add Corporate, Negotiable CD, Commercial Paper, and Supranational
exposure to the portfolio where the additional spread compensation versus alternative
sectors is attractive.
• Maintain a dedicated exposure to the Treasury sector on an ongoing basis to ensure
ample liquidity in the portfolio at all times.
6
C/" CHANDLER
ASSET
MANAGEMENT
Compliance IssueS
CA Orange County Sanitation District Long Term
March 31,zole
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Charmer-Asset Management are in full compliance wth state lawand will the investmenfpolicy
Category Stanall Comment
Treaslrylssues Syearemaxmatudy Minimum allocalionof10% Complies'
U.S.Agarciea 20%max Issuer, 5"am max maturity Complies
Stprerabonal "AA'ratetlorbetlerbya NRSRO; 30%maximum; 5ysammaimatudy USD Complies
denominated senior unsecured umubopinated obligations issued or uncontlitionaly
uadmissed by BRD IFC or ADD
Carol(Ml Watedorbelterion, ermdebtbya NRSRO; 30%maximum5%maxiesuer, 5yeare Complies
maxmaldriy, Issued by wrporations organised and operating withinthe U.S.or issued by
th.positoryinsfitufflons licensed b the U.S.
Mmicipal Sissuri s 'N'mWdorhigharbya NRSRO;10%maximum; 556maxisauer; 5yearemaxmatriy Complies
Asset Backadl CMOal Mortgage- 'AA-mtetlorbeCerbya NRERO; W erhigiarisauerratMirya NRSRO; 20%maximum; Complies'
backed 5%maxissuer excludi oMa a bs'5 ammaxmaWri
Negotiable CDs 'A'rated or better long tens debt bya NRSRO;or-A-1'/highest shorttenn rating by a Complies
NRSRO: 30%maximum;5%maxissuer,5 yeam max msh ny
Cerdficateaof Deposit 5%maxissuar; 5yearemaxmatuiy. Secured/wImealisetl Complies
Bankers Acceptances A-1 rated or equivalent shod term rating by a NRSRO; 40%maximum; 5%max issuer,180 Complies
days max maturty
Commemlel Paper A-1 noted or aqul silent shod term rating by NRSRO; 'A'or better long tern debt Issuer Complies
bya NRSRO; IssmdbyadomestcwMomtonoyanimdaMopamfiMintha USwith
AUM>$500million' 25%maximurn' 5%maxissuer, 270daysmaxinalunty
Mutual Fund B Morey Mallet Highestnofingor-AAA-hii by WU NRSROs;SEC registered addserwllh AUM>$500 Complies
Mutual Furl million all experience greaterthan5 ysars;10%par Ore Mutual Furl; 20%maxper
issuaron Mona Market MrWel Funds; 20%maxoftheDistridasempliternaney,
Re urctase Agreements 102%collateraliseGon Complies
Reverse Re nrehase axi Agreements 5%mmurn,90 days max matuffly, Complies
LAF Not it by irnsstrment admaer Complies
OCP Not used by imeshnent atlNaer Complies
A Duration Noto exceed!80 months - 80%W 120%ofthe benchmark Com Ties
Max Per Issuer 5%of articllo exe le ArmnationaIs,U.S.Gogemment,Agenelas,Mutual Fund Com lies
Maiddrun-Malunity 15 were maximum mahnity Com lies-
Mcree lorem twenty-theeash theadiw wltth steel gaoler fan 5 years-Il lno ors,(1)ADS,kv(4)Carl semnteen(17)MBS had one treasury All
secuAOee me,shented fiom the samosa manoser and cemgied at time W Armase.
7
C/" CHANDLER
ASSET
MANAGEMENT
C/" Orange County Sanitation District Liquid
March 31,2018
COMPLIANCEPOLICY
Assets managed 6y GhantllerAsset Management are in/ull compliance wM state lawand vith Me inveshnentpolicy
Category Standard Comment
Treasury Issues l yearmexmaturity, Minimum allocation of 10% Complies
U.S.Ageocies 20%max issuer; IWar max maturity Complies
Supharational 'AA"rated or better by a NRSRO; 30%maximum; 1 War max maturity; USD Complies
denominated senior unsecured ureubordirated obligations issued or
unconditionall guarninteedb IBM,IFC or ADS
Corporate(Ml 'A'hared or betlerlong tern debt bya NRSRO; 30%mavmum;5%maxisswr,, Complies
l year max mal Issued by corporations organized and operating wt0in the
U.S.or issued by depository depostory institutions licensed by tie U.S.
Asset Backed/CMOs 'AA-mtsdorbeUerbya NRSRO; "A"or higher issuer rating bya NRSRO; 20% Complies
maximum 5%max issuer; 1 War max maNd
Negotiable CDs "A"rated or better long term debt by a NRSRO;or"A-1"/highest shorttenn rating Complies
by aNRSRO; 30%mavmum;5%max issuegi War max maturity
Certificates of Deposit 5%max issuer;i war max mal Securadleollateralized Complies
Banker's Acceptances A mted or equivalent stud term rating by a NRSRO; 40%maximum; 5%max Complies
issuer;180 days max maturity
Commercial Paper A-1 rated or eguvalent shod tens rating by a NRSRO; "A'or better brig term Complies
debt issuer by a NRSRO; asuedbyadomesticcorpomtionorganizedarxl
operating in the US with AUM>$500million; 25%mavmum; 5%max issuer,
270 days max maturity
Mutual Fund&Morey Market Mutual Fund Highestratingor"AAA"hated bytso NRSROs;SEC registered adviserwith Complies
AUM>$500 million and experience greatert an 5 years 10%per one Mutual
Fund; 20%maxperissueron Morey Mallet Mutual Fulls; 20%maxotthe
Districts surplus mono
Repurchase Agreemets 102%collateralieetion Complies
Revaree Repurchase Agreements 5%maximum,90 days max meaalty Complies
LAIF Not used by investment adviser Complies
OCIP Not used by investment adviser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avg Duration Nottoexceed180days; Maxduratonofl2War Complies
Max Per Issuer 5%of portfolio(except Supranatiorals,U.S.Gocemment,Agencies,Mural Fund) Complies
Maximum Maturity 1 War mavmum bradurity Complies
8
C/" CHANDLER
ASSET
MANAGEMENT
CA OCSD Lehman Exposure
March 31,2018
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler-Asset Management are in full compliance wth state lawand wth the investment policy
Category standard Comment
Treasurylssues 5 years maximum poll Complies
Swonational "AA"or better by I of 3 NRSROs; 30%maximum; 5%max; 5years maturity, Complies
Includes only: IADB,BIRD,add IFC per CGC
U.S.A encies 20%max issuer; 5 yam maximum maturity Complies
U.S.Corporate(MTNs) Wor better long term rating by l of 3 NRSROs; 30%maximum;5%max issuer; 5 Complies•
Were max maturity
Municipal Securities W or higher by 1 of 3 NRSROQ I0%maximum 5%max issuer; 5 years Complies
maximum matunly
Asset Bal CMOs/ "AA"or better by l of 3 NRSROs; "A"or higher issuer mfing by l of 3 NRSROs; Complies
Mortgage-backed 20%maximum; 5%maxissuer(excluding MB$/govl agency);5 years max mustily
Negotiable CDs "A•orbetteron its long farm debtbylof3NRSRCs; "A1/P1"or highest shstwol Complies
brings,b 1of 3 NRSROs; 30%maximun;5%max issuer, 5 years max maturity
CDSITD$ 5%max issuer, 5warsnaulmarturrifty, Complies
Bankers Acceptances A-1,or equiyakrt Ngheat short tens ral by l of3 NRSRO5; 40%maximum; 5% Complies
max issuer'180 days max maturity
Commercial Paper A-1,or equivalent by l of3 NRSRO3; "A"or better by 1 of3 NRSRCs,if long term Complies
debtissued; 25%maximum; 5%max issuer. 270 days max maluri
Money Market Ford Highest rating by 2 of 3 NRSROs; 20%maximum;10%max issuer Complies
Repurchase A reemerts 102%collateralization Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
monthsLAIF Not used by neesbrent adwser Control as
Not to exceed 60
16MMunim Mean, .5 am maximum onaturity I Carl as
A—rd Mltls V millm face value(cusip 525ESCOl and$Erin,Wn face value(cusip 525ESCtB])W defaulted LeM1man Bras Hddings that were pumhssed
by the pregous manager Comgled er Ome of purrhase.
9
C/" CHANDLER
ASSET
MANAGEMENT
Defaulted Bonds
OCSD Lehman Exposure-Account#1028C For the Month Ending 3/3112018
SLHOPRM In 0,PoNion bng 60W149 2
a000vre owovalnam I�u'�°'1
9.Y¢.Y
Tobl tammmb Sxt U. NM2N I.
I]2]31.w1 N,
52f GIB7 J 66I"110 1.1.2001 90 74 405 2 18]Ph
P111,W3]<)
CCPA. E 2,011 O10 ICO.. 1156%
. AP
1.W.r6WA 1"SUM N.L% Na I SIRNAZ
1pN.6%SI A. O.w 11160.Y9 su
roTNP armR O s..L. li6o.As 11 Pow n. NNrN% xR1OXx
1.
IS
rare.MARREry UE PLUS ACCRUALS 1NpxtN
10
OIL CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
March 31,2018 ve.December 31,2017
mmx
mmx
iomx
ximx
lame
oms
.3ffV[Ote a]n VAn
MA M A U MR
Owl/18 14.6% 625% 13.3% 01% a9%
IMI/17 15.6% 63,6% 116% 11% 73%
Orange County Sanitation District Liquid
March 31,2018va.December 31,2017
m.m%
mm%
mm%
mm%
mm%
.aavmla .walaon
AM M A l,A MR
03131I18 56.9% 35.2% 8.0% 0.0% 00%
1MI117 32.0% 61.5% 6.1% 0.0% 0.0%
Bw,w:88P Foo,
1T
C/" CHANDLER
ASSET
MANAGEMENT
OCSD Investment Program
Quarter End Portfolio Value
$600,000,000
•Liquid Operating Monies
$600,000.000 •Long-Term OpereYng Monies
5400,000,000
$300,000,000
$200,000,000
$100,000.000
S-
S O°c 4id "cq 1% Oa, 4id rc Se 66 4ie "co Se Q 41
a � 41 O'q, IV 4IV IV �S CIS a7S7S IS �S aI& IS �J ��J �1J
HISTORICAL YIELD CURVE
4.00%
3.00% 2.69 �¢
2.38% 2.56% 2.97°0
2.74%
2.27%
1.92%
2.00%
1%
7
.MARCH 2O18
1A0% -- ------__
- - - - - - - - - - - - - - - - - - �FEBRUARV 2018
.MARCH 2O17
0.00%
701 001,
12
C/" Orange County Sanitation District Liquid Portfolio Summary
Account#10282 As of 3/31/2018
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
01111110 Beg.Values End Values Issuer %Portfolio
Average Duration 0.18 as of 2/28118 as of 3131/18 Government of United States 40.8%
Average Coupon 1.44% Market Value 92.555,669 92,748,080 First American Gov(Obligabon 20.6%
Average Purchase YTM 1.65% Accrued Interest 189,006 124,180 Federal Home Loan Bank 13.4%
Averse Market YTM 1.77% Total Market Value 92,744,674 92,872,260
9 International Finance Corp 2.7
Average S&P/Moody Rating AAA/Aal Income Earned 110,376 126,563 Stale Street Bank 2.3%
Average Final Maturity 0.18 yrs Cont/WD 0 Bank of Tokyo-MR UFJ 2.0
Average Life 0.10 yrs Par 92,787,386 92,949,907 Toyota Motor Corp 1.9%
Book Value 92,582,480 92,773,869 Deere&Company 1.6
Cost Value 92,514,345 92.676,696 85.3%
• - - • • MATURITY DISTRIBUTION
US
BO% 76.9% AAA
(509%)
u8 Treasury
Corporate (408%)
(12.3%)
60%
Negotiable
Co
Commercial (1.1 %) 40%
Paper
(92%)
(2 7%)ational 32.1%
(27%) 20%
MaE tt% (8.0%)
Fund Agency %
FI (14.3%) o-.Ps s5-.5 5-1 1-1,5 15 2 2.25 25-3 3* AA
(20.6%) Maturity(Yrfl (35.2%)
Total Rate of Return J Current Latest Year Annualized Since
As of 3/31/2018 Month 3 Months To Date 1 Yr 3 Yra Syria 10 Yra 11130/2014 11/3012014
Orange County Sanitation District Liquid 0.14% 0.35% 0.35% 1.11 % 0.63% N/A N/A 0.59% 1.98%
ICE BAML 3-Month US Treasury Bill Index 0.14% 0.35% 0.35% 1.11 % 0.53% N/A N/A 0.48% 1.60%
Chandler Asset Management-CONFIDENTIAL Page1 ExecNion Time 201012:30:19M
C/" Orange County Sanitation District Long Term Portfolio Summary
Account#10268 As of 3/31/2018
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
aaa�
Average Duration 2.41 * Beg.Values End Values Issuer %Portfolio
as of 2/28/18 as of 3131/18 Government of United States 31.6%
Average Coupon 1.90% Market Value 410,028,408 411,353,114 Federal National Mortgage Assoc 9.6%
Average Purchase YTM 1.96% Accrued Interest 1,655,959 1,450,333 Federal Home Loan Bank 8.7%
Averse Market YTM 2.42% Total Market Value 411,684,366 412,803,446
9 Federal Home Loan Mortgage Corp 5.3%
Average S&P/Moody Rating AA+/Aal Income Earned 615,723 665,393 Inter-American Dev Bank 4.2%
Average Final Maturity 2.72 yrs COntIWD 56,798 I First American Gov(Obligabon 2.7%
Average Life 2.51 yrs Par 416,214,560 417,366,896 Intl Bank Recon and Development 2.4%
Book Value 415,160,505 416,088,322 Bank of Tokyo-Mit UFJ 2.0%
I Cost Value 416.061,044 416,484,200 66 3 Y
MBS ]0% AA
(0.4%) 26.8% (62.5%)
US_Carp 25%
(19.9%) US Treasury
Fa Corp _ (316%) 19.9%
%) 20%
CP Negotiable CD 15A%
(5.1%) (1.4%) 15% 13.5%
3%
Mwlcipals Supranational 1D% BBB
(1.1%) (7.8%) 7.9%
MMF 0.]%)
(2.7%) Agency 5% 22% 321 AAA NR
CMO (227%) (145%) (8.9%)
(0.5%) %
A89 o. 11 1s. s 1-1 1 2 1 1 1 1 s s. A
Maturity yrs) (13.3%)
(6.7%)
Total Rate of Return Current Latest Year Annualized Since
As of 3/31/2018 Month 3 Months To Date 1 Yr 3 Yrs 5 Yrs 10 Yrs 11/30/2014 11/3012014
Orange County Sanitation District Long Tenn 0.26% -0.33% -0.33% 0.31 % 0.77% N/A N/A 0.88% 2.95%
ICE BAML 15 Yr US Carp/Gout Rated AAA-A Index 0.26% -0.45% -0.45% 0.09% 0.66% N/A N/A 0.78% 2.63%
ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx 0.23% -0.49% -0.49% 0.22% 0.81 % N/A N/A 0.92% 3.10%
Chandler Asset Management-CONFIDENTIAL Paget Execution Time:4 201012:32:59M
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
March 31, 2018
Par Value Book Value Market Value Rate Yield
Balance
March 1, 2018 $54,199,172 $54,199,172 $54,199,172 1.52 1.52
Deposits:
3/8/2018 15,700,000 15,700,000 15,700,000 1.52 1.52
Total Deposits 15,700,000 15,700,000 15,700,000 1.52 1.52
Quarterly
Interest
Distribution 1.52 1.52
Withdrawals:
3/1/2018 (4,900,000) (4,900,000) (4,900,000) 1.52 1.52
3/9/2018 (3,600,000) (3,600,000) (3,600,000) 1.52 1.52
3/14/2018 (1,300,000) (1,300,000) (1,300,000) 1.52 1.52
3/15/2018 (1,900,000) (1,900,000) (1,900,000) 1.52 1.52
3/22/2018 (4,100,000) (4,100,000) (4,100,000) 1.52 1.52
3/27/2018 (800,000) (800,000) (800,000) 1.52 1.52
3/28/2018 (2,500,000) (2,500,000) (2,500,000) 1.52 1.52
3/29/2018 (2,900,000) (2,900,000) (2,900,000) 1.52 1.52
3/30/2018 (400,000) (400,000) (400,000) 1.52 1.52
Total Withdrawals (22,400,000) (22,400,000) (22,400,000) 1.52 1.52
Balance
March 31,2018 $47,499,172 $47,499,172 $47,499,172 1.52 1.52
U.S. Bank
Asset Summary- Liquid
As of 3/31/2018
Industry Name Shares/Units , Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 7,655,000.0000 7,602,947.58 7,611,404.80 8.21 8,457.22
FIRST AMERICAN SHORT TERM FDS 1,020,282.3900 1,020,282.39 1,020,282.39 1.10 -
U. S.GOVERNMENT 15,000,000.0000 14,917,779.86 14,949,600.00 16.13 31,820.14
US AGY-SHORT TERM CASH EQUIV 12,500,000.0000 12,446,623.61 12,462,450.00 13.45 15,826.39
Cash Equivalents Total 36,175,282.3900 35,987,633.44 36,043,737.191 38.901 56,103.75
Fixed Income
CONSUMER DISCRETIONARY 1,500,000.0000 1,497,600.00 1,496,895.00 1.62 (705.00)
FINANCE 6,899,000.0000 6,913,905.73 6,896,100.16 7.44 (17,805.57)
HEALTH CARE 2,000,000.0000 1,996,850.00 1,997,460.00 2.16 610.00
INFORMATION TECHNOLOGY 1,000,000.0000 1,000,150.00 999,230.00 1.08 (920.00)
SHORT TERM FUNDS 1,000,000.0000 1,000,000.00 999,030.00 1.08 (970.00)
SUPRANATIONAL 2,500,000.0000 2,490,715.00 2,494,450.00 2.69 3,735.00
U. S.GOVERNMENT 41,000,000.0000 40,888,515.64 40,937,470.00 44.18 48,954.36
US AGY-LONG TERM ISSUES 800,000.0000 798,240.00 799,848.00 0.86 1,608.00
Fixed Income Total 56,699,000.0000 56,585,976.37 56,620,483.16 61.10 34,506.79
Grand Total 1 92,874,282.3900 92,573,609.81 92,664,220.351 100.001 90,610.54
1 Of
U.S. Bank
Asset Summary - Long-Term
As of 3/31/2018
Industry Name Shares/UnitsmililL.Cost Basis arket Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 21,240,000,0000 21,154,104.50 21,175,762.40 5.15 21,657.90
FIRST AMERICAN SHORT TERM FDS 10,679,606,7200 10,679,606.72 10,679,606.72 2.60 -
USAGY-SHORT TERM CASH EOUIV 14,350,000,0000 14,333,607.77 14,338,617.00 3.49 5,009.23
Cash Equivalents Total 46,269,606.7200 46,167,318.98 46,193,986.12 11.24 26,667.13I
Fixed Income
CONSUMER DISCRETIONARY 4,000,000,0000 4,046,640.00 3,978,440.00 0.97 (68,200.00)
ENERGY 8,850,000.0000 8,856,036.90 8,676,201.00 2.11 (179,835.90)
FINANCE 46,389,000.0000 46,018,170.07 43,535,593.03 10.59 (2,482,577.04)
HEALTH CARE 4,000,000.0000 4,009,675.00 3,981,680.00 0.97 (27,995.00)
INDUSTRIAL 5,000,000.0000 5,046,984.00 4,971,400.00 1.21 (75,584.00)
INFORMATION TECHNOLOGY 16,710,000.0000 16,706,679.40 16,396,598.35 3.99 (310,081.05)
INVESTMENT GRADE-MUNI REVENUE 4,240,000.0000 4,307,633.89 4,427,682.80 1.08 120,D48.91
MTG RELATED SECURITY 27,365,015.2200 27,483,176.09 27,430,327.01 6.67 (52,849.08)
SHORT TERM FUNDS 5,825,000.0000 5,825,000.00 5,808,981.25 1.41 (16,018.75)
SUPRANATIONAL 37,505,000.0000 37,172,580.25 36,547,887.05 8.89 (624,693.20)
U. S.GOVERNMENT 122,308,564.6700 121,124,196.52 119,545,398.63 29.08 (1,578,797.89)
U.S. GOVERNMENT TIPS 10,654,584.0000 10,709,864.09 10,604,620.02 2.58 (105,044.07)
US AGY-LONG TERM ISSUES 80,365,000,0000 80,096,731.40 78,965,271.60 19.21 (1,131,459.80)
Fixed Income Total 373,412,163.8900 371,403,367.61 364,870,280.74 88.76 (6,533.086.87)
Grand Total 419,681,770.6100 417,570,686.60 411,064,266.86 100.00 (6,506,419.74)
1 Of
>- MELLON slettemMH OP Sod 03/0141/18 TIHOU9R03131IM016
Account
OCSQ LIBERTY MUTUAL
Statement of Assets Held
tows'I Marker Pit co Moroi MI.. AccmJln ecoa,
Pal War. Area loweld.. Avarepa Cast Coal Eel Armuatlmcome tYdel YbN
RXEDINCOME
3,6W.Ow.W UNITED STATES TREASURY NOTEIEOND 99.97000 3,598,920.00 12,287a6 0.75%
CUSIP:WrJa!SN26 99.72266 3,%0,015.63 27,000.00
MATURITY DATE:O<H6i
RATE:0.760%
MOODY's Au
Total FIXED INCOME 3,%8,920.00 12,387.36 0.75%
3,5913,015.63 27,00100
CASH AND SHORT TERM
CASH BALANCE 000000 13.500.00 aw 0,00%
0.00000 13.500.00 O.w
TOW CASH AND SHORT TERM 13,500A0 0.00 0.0096
13,500.00 aw
ACCOUNTTOTALS 3,612,420.00 12,387.36 O.T5%
3,609,615.63 27,000.00
TOW Markel Value Plus TOW Accrued Income 9,624,847.35
Statement of Transactions
Tomes m Realised
MU 1nwMlen Oawnpllon Inmm. Pxnalya pawl cmnerLc..aa
No Transactions This Period
TIw Berk OINew Yo Wilonm,utilizesub.1dariea.MelAl'IaiestoprovidewNlwaaWMOWnprotlucNto Me Account. Subatllatlee and affiliates may beoonwhicaMtl for Iher
servkpa and products.
TDy value of aeouritlpa set pathm this Amount StaNlrNyl we determined by Too Bank of New York Mellon for Corporate Trust an Me basis of market prices and alamatlon
aboard by The Banker New YoM Mellon rrom unafllllated INN parties(lrwludir,Independent pdol,vendom)(lhirdperiy rimingparvloo'), The Bankoi New York Mellonhte
.Ihi. led eutS.t e1V01W dthn I..Flhntl..Itt. aawra mWilduWccVayoraonehseoriti c. additiveluea market
values M Neurtl far
In this
loRM1 3
mcout Statement maentrelleolnthvalueke mriasand Inormato berto weupon IDeealuofsuyD sear lasho Ina unison the mankel NinesIw secutln or set forth Incols
Account badupmaywal oor,the merkelpicasand lad from onim IM party srichng sauced by Mar busucheendster usThe Bank of New York Maim or Its subsidiaries or
itsmaffili rkadvaedu wonon Maas peceaaM lnlmmeumrecentmarom forkesof used
by,prldnbservss units
by eBank rNess orkMess nlls. Gaporete follows.
T
isNarYork Win loot edby,mrxyl eelllazentmerkelvaluesawedbY,oglerbusinessu of m Bankoi New York Melloror0e Mlmmarlwp Itsdedb th The Benk
of New York MellonadfNm In iwanyde win gexpense Incurredsea Mwofor edebl cl . relaletlrotke nlarlst valuesmMwmetlm pwvltletl Dy IMrd pity
pdtly9 earvk»e or Ne dlNrelx:Oa In market pricpam Inbmlatlm pwvltlW by MDer ININ pe0y pricing aerAcea.
Page 20 2
U.S. Bank
Investment Listing -Yield
As of 3/31/2018
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis
Cash Equivalents 06406XG65 BNY MELLON C P 7106/18 0.0000% 1,000,000.0000 99.39 993,840.00 993,880.00
Cash Equivalents 06538CFD8 BANK OF TOKYO MITSUBIS C P 6/13/18 0.0000% 1,855,000.0000 99.58 1,845,044.83 1,847,134.80
Cash Equivalents 06538CFD8 BANK OF TOKYO MITSUBIS C P 6/13/18 0.0000% 8,240,000.0000 99.58 8,195,778.67 8,205,062.40
Cash Equivalents 21687BJ05 COOPERATIEVE CENTRALE C P 9/24/18 0.0000% 1,500,000.0000 98.82 1,482,252.50 1,482,360.00
Cash Equivalents 313385VE3 F H L B DISC NITS 4106/18 0.0000% 4,350,000.0000 N/A N/A 99.98 4,346,713.33 4,349,217.00
Cash Equivalents 313385VZ6 F H L B DISC NITS 4125/18 0.0000% 2,500,000.0000 N/A N/A 99.89 2,496,723.61 2,497,350.00
Cash Equivalents 313385VZ6 F H L B DISC NITS 4125/18 0.0000% 10,000,000.0000 N/A N/A 99.89 9,986,894.44 9,989,400.00
Cash Equivalents 313385YB6 F H L B DISC NITS 6114/18 0.0000% 10,000,000.0000 N/A N/A 99.65 9,949,900.00 9,965,100.00
Cash Equivalents 31846V567 FIRST AM GOUT OB FD CL Z 1.5358% 1,020,282.3900 100.00 1,020,282.39 1,020,282.39
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 1.5358% 10,679,606.7200 100.00 10,679,606.72 10,679,606.72
Cash Equivalents 69372BE09 PACCAR FINANCIAL CORP C P 5/24/18 0.0000% 1,500,000.0000 99.721 1,493,293.75 1,495,770.00
Cash Equivalents 69372BE09 PACCAR FINANCIAL CORP C P 5/24/18 0.0000% 5,000,000.0000 99.72 4,977,645.83 4,985,900.00
Cash Equivalents 89233HE75 TOYOTA MOTOR CREDIT CO C P 5/07/18 0.0000% 8,000,000.0000 99.81 7,980,680.00 7,984,800.00
Cash Equivalents 89233HFE9 TOYOTA MOTOR CREDIT CO C P 5/14/18 0.0000% 1,800,000.0000 99.57 1,788,516.50 1,792,260.00
Cash Equivalents 912796PL7 U S TREASURY BILL 6/14/18 1.6443% 15,000,000.0000 N/A N/A 99.66 14,917,779.86 14,949,600.00
Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.9021% 4,169,000.0000 A3 A 99.07 4,232,453.17 4,130,103.23
Fixed Income 02665WAH4 AMERICAN HONDA MTN 2.250% 8115119 2.2622% 4,000,000.0000 A2 A+ 99.46 4,046,640.00 3,978,440.00
Fixed Income 03215PFN4 AMRESCO 2.8115% 62529 2.9663% 133,143.2900 N/A A+ 94.78 100,432.85 126,761.89
Fixed Income 037833BS8 APPLE INC 2.250% 22321 12.2844%1 4,000,000.0000 AA7 AA+ 98.50 4,050,840.00 3,939,840.00
Fixed Income 06050TMC3 BANK OF AMERICA MTN 1.750% 6/05/18 1.7523 o 1,000,000.0000 AA3 A+ 99.87 999,110.00 998,670.00
Fixed Income 06406HCW7 BANK NY MELLON MTN 2.300% 9/11/19 2.3179% 2,120,000.0000 Al A 99.23 2,142,175.20 2,103,654.80
Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.6503% 2,500,000.0000 Al A 98.10 2,504,475.00 2,452,575.00
Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.9875% 1,500,000.0000 Al A 98.74 1,486,065.00 1,481,150.00
Fixed Income 06417GXH6 BANK OF NOVA C D 1.570% 8109118 1.5743% 5,825,000.0000 99.73 5,825,000.00 5,808,981.25
Fixed Income 073902CD8 BEAR STEARNS CO INC 4.650% 7/02/18 4.6261% 3,200,000.0000 A3 N/A 100.52 3,523,520.00 3,216,512.00
Fixed Income 084664BEO BERKSHIRE HATH 5.400% 5/15/18 5.3830% 1,000,000.0000 AA2 AA 100.32 1,016,250.00 1,003,150.00
Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.9986% 4,000,000.0000 AA2 AA 100.05 4,131,120.00 4,001,840.00
Fixed Income 166764BG4 CHEVRON CORP 2.100% 5116121 2.1484% 2,500,000.0000 AA2 AA- 97.75 2,485,350.00 2,443,700.00
Fixed Income 17275RAU6 CISCO SYSTEMS INC 1.650% 6115118 1.6513% 1,000,000.0000 Al AA. 99.92 1,000,150.00 999,230.00
Fixed Income 24422ESS9 JOHN DEERE CAP MTN 2.300% 9/16119 2.3132% 5,000,000.0000 A2 A 99.43 5,046,984.00 4,971,400.00
Fixed Income 24422ESX8 JOHN DEERE MTN 1.600% 7113118 1.6033% 1,500,000.0000 A2 A 99.79 1,497,600.00 1,496,895.00
Fixed Income 30231GAV4 EXXON MOBIL 2.222% 3/0121 2.2556% 3,000,000.0000 AAA AA+ 98.51 3,016,097.40 2,955,330.00
Fixed Income 3130A7CV5 F H L B DEB 1.375% 2/18/21 1.4163% 5,365,000.0000 AAA AA+ 97.08 5,343,325.40 5,208,556.60
Fixed Income 3133782M2 F H L B DEB 1.500% 3/08/19 1.5090% 7,500,000.0000 AAA AA+ 99.40 7,589,190.00 7,455,300.00
Fixed Income 313379RB7 F H L B DEB 1.875% 6/11121 t9129% 4,000,000.0000 AAA AA+ 98.02 4,030,160.00 3,920,720.00
Fixed Income 313383HU8 F H L B DEB 1.750% 6112/20 1.7155% 5,000,000.0000 AAA AA+ 98.56 5,008,950.00 4,928,100.00
Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.409% 8/15/32 3.2572% 21,462.6000 104.65 21,485.06 22,462.97
1 of4
U.S. Bank
Investment Listing -Yield
As of 3/31/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 31348SWZ3 F H L M C#786064 3.426% 1/01/28 3.3512% 2,159.2900 N/A N/A 102.23 2,106.72 2,207.46
Fixed Income 3135GOD75 F N M A DEB 1.500% 6/22/20 1.5296% 5,000,000.0000 AAA AA- 98.07 4,955,650.00 4,903,250.00
Fixed Income 3135GOF73 FNMA 1.500% 11/30/20 1.5362% 7,500,000.0000 N/A AA, 97.64 7,370,726.00 7,323,075.00
Fixed Income 3135GOG72 FNMA 1.125% 12/14/18 1.1324% 5,000,000.0000 N/A AA+ 99.35 4,963,950.00 4,967,450.00
Fixed Income 3135GOJ20 F N M A DEB 1.375% 2/26/21 1.4181% 10,000,000.0000 AAA AA, 96.96 10,040,950.00 9,695,900.00
Fixed Income 3135GOS38 FNMA 2.000% 1/0522 2.0415% 3,000,000.0000 AAA AA- 97.97 2,994,570.00 2,938,980.00
Fixed Income 3135GOT45 FNMA 1.875% 4/0522 1.9255% 5,000,000.0000 AAA AA+ 97.38 4,972,500.00 4,868,900.00
Fixed Income 3135GOT94 F N M A DEB 2.375% 1/19/23 2.4052% 3,000,000.0000 AAA AA+ 98.74 2,956,410.00 2,962,290.00
Fixed Income 13137INUC7 F N M A#257179 4.500% 4/01/28 4.2867% 20,414.5200 N/A N/A 104.98 21,590.35 21,430.55
Fixed Income 31376KT22 F N M A#357969 5.000% 9/01/35 4.6304% 129,003.3500 N/A N/A 107.98 138,678.58 139,301.69
Fixed Income 3137EADM8 F H L M C MTN 1.250% 10/02/19 1.2690% 7,500,000.0000 AAA AA+ 98.50 7,399,650.00 7,387,575.00
Fixed Income 3137EAEA3 F H L M C MTN 0.750% 4/09118 0.7501% 800,000.0000 N/A N/R 99.98 798,240.00 799,848.00
Fixed Income 3137EAEK1 F H L M C MTN 1.875% 11/17/20 1.9030% 5,000,000.0000 N/A AA+ 98.53 4,986,225.00 4,926,400.00
Fixed Income 3137EAEL9 F H L M C MTN 2.375% 2/16/21 2.3817% 7,500,000.0000 AAA AA+ 99.72 7,484,475.00 7,478,775.00
Fixed Income 31381PDA3 F N M A#466397 3.51335%11/01/20 3.4601% 349,929.5100 N/A N/A 101.54 12,356.83 355,318.42
Fixed Income 3138EG6FVFN A#AL0869 4.500% 6/01/29 4.2858% 13,828.0600 N/A N/A 105.0014,624.54 14,519.19
Fixed Income 31394JY35 M C MLTCL MTG 6.500% 9/25/43 5.7869% 860,507.7100 N/A N/A 112.32 974,524.97 966,548.08
Fixed Income 31397ORE A GTD REMIC 1.113% 2/25/41 2.5034% 247,845.1500 N/A N/A 101.92 247,767.70 252,603.78
Fixed Income 31398VJ98 M C MLTCL MTG 4.251% 1/25/20 4.1499% 900,000.0000 N/A N/A 102.44 951,046.88 921,915.00
Fixed Income 31403DJZ3 F N M A#745580 5.000% 6/01/36 4.6313% 124,703.4000 N/A N/A 107.96 134,056.17 134,631.04
Fixed Income 31403GXF4 F N M A#748678 5.000%10/01/33 4.6664% 2,826.3200 N/A N/A 107.15 3,038.29 3,028.35
Fixed Income 31406POY8 F N M A#815971 5.000% 3/01/35 4.6300% 217,603.3700 N/A N/A 107.99 233,923.64 234,992.06
Fixed Income 31406XWT5 FNMA#823358 3.484% 2/01/35 3.3320% 130,299.2000 N/A N/A 104.55 129,281.25 136,242.15
Fixed Income 31407BXH7 F N M A#826080 5.000% 7/01/35 4.6286% 23,990.8500 N/A N/A 108.03 25,790.14 25,916.12
Fixed Income 31410F4V4 F N M A#888336 5.000% 7/01/36 4.6315% 241,739.6400 N/A N/A 107.96 259,870.12 260,974.86
Fixed Income 31417YAY3 F N M A#MA0022 4.500% 4/01/29 4.2860% 22,859.8800 N/A N/A 104.99 24,176.55 24,001.50
Fixed Income 36225CAZ9 G N M A 11#080023 3.125%122026 3.0350% 20,803.1500 N/A N/A 102.97 21,146.85 21,419.96
Fixed Income 36225CC20 G N M A 11#080088 2.625% 6/20/27 2.5343% 22,266.2100 N/A N/A 103.58 22,753.30 23,062.67
Fixed Income 36225CN28 G N M A 11#080408 2.625% 5/20/30 2.5346% 67,248.7300 N/A N/A 103.57 66,555.75 69,648.16
Fixed Income 36225CNM4 G N M A 11#080395 2.625% 4/20/30 2.5350% 8,564.6700 N/A N/A 103.55 8,487.03 8,868.63
Fixed Income 36225DCB8 G N M A 11#080965 2.750% 7/20/34 2.6486% 65,741.8100 N/A N/A 103.83 65,700.73 68,258.41
Fixed Income 36962G7MO GENERAL ELEC CA MTN 2.200% 1/09/20 2.2342% 5,000,000.0000 A2 A 98.47 5,014,950.00 4,923,550.00
Fixed Income 3837H4NX9 IG N M A GTD REMIC 2.286% 2/16/30 2.2777% 17,157.3500 N/A N/A 100.37 17,157.35 17,220.15
Fixed Income 404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 2.7255% 4,500,000.0000 A2 A 97.23 4,429,980.00 4,375,305.00
Fixed Income 40428HPJ5 HSBC USA INC 2.625% 924118 2.5254% 619,000.0000 A2 A 99.98 620,281.33 618,900.96
Fixed Income 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 2.3812% 2,500,000.0000 A2 A 98.69 2,472,287.50 2,467,250.00
Fixed Income 43814PAB6 HONDAAUTO 1.570% 1/21/20 1.5778% 985,000.0000 N/A AAA 1 99.51 964,914.21 960,223.25
2 of4
U.S. Bank
Investment Listing -Yield
As of 3/31/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Val
Fixed Income 43814QAC2 HONDAAUTO 1.390% 4/15/20 1.3982% 1,381,783.2100 AAA N/A 99.42 1,381,756.41 1,373,699.78
Fixed Income 43814RACO HONDAAUTO 1.210%12/18/20 1.2261% 2,875,000.0000 N/A AAA 98.69 2,843,442.38 2,837,337.50
Fixed Income 43814TAB8 HONDAAUTO 1.420% 7/22/19 1.4237% 820,760.6600 AAA N/A 99.741 820,741.04 818,651.31
Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 3.0319% 4,665,000.0000 Al A. 98.95 4,619,258.85 4,615,877.55
Fixed Income 4581XOCS5 INTER AMERICAN DEVEL 1.875% 3/15/21 1.9111% 5,000,000.0000 AAA AAA 98.11 5,059,610.00 4,905,550.00
Fixed Income 4581XOCW6 INTER AMER DEV BK 2.125% 1/18/22 2.1618% 3,000,000.0000 AAA N/A 98.30 2,996,310.00 2,948,880.00
Fixed Income 4581XOCX4 INTER AMER DEV BK 1.625% 5/12/20 1.6492% 3,035,000.0000 AAA AAA 98.54 3,027,807.05 2,990,537.25
Fixed Income 4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 1.8199% 6,500,000.0000 N/A N/A 96.16 6,249,655.00 6,250,400.00
Fixed Income 459058FY4 INTL BK 2.000% 12622 2.0516% 10,000,000.0000 AAA N/A 97.48 10,006,350.00 9,748,400.00
Fixed Income 45950KBX7 INTL FINANCE CORP 0.875% 6/15/18 0.8769% 2,500,000.0000 AAA AAA 99.78 2,490,715.00 2,494,450.00
Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1802% 2,500,000.0000 AAA AAA 95.32 2,441,600.00 2,383,050.00
Fixed Income 45950KCMO INTL BK M T N 2.250% 1/25/21 2.2685% 2,970,000.0000 AAA AAA 99.18 2,961,268.20 2,945,764.80
Fixed Income 146625HJL5 JPMORGAN CHASE CO 1.625% 5/15/18 1.6267% 1,250,000.0000 A3 A- 99.90 1,249,525.00 1,248,712.50
Fixed Income 46625HKA7 JPMORGAN CHASE CO 2.250% 1/23/20 2.2777% 2,000,000.0000 A3 A- 98.79 1,994,880.00 1,975,700.00
Fixed Income 47787XAB3 JOHN DEERE OWNER 1.500%10/15/19 1.5041% 934,696.1900 AAA N/A 99.73 934,692.45 932,135.12
Fixed Income 47788BABO JOHN DEERE OWNER 1.590% 4/15/20 1.5974% 878,180.8200 AAA N/A 99.54 878,104.51 874,106.06
Fixed Income 47788BAD6 JOHN DEERE OWNER 1.820%10/15/21 1.8480% 675,000.0000 AAA N/A 98.49 674,950.59 664,780.50
Fixed Income 47788CABB JOHN DEERE OWNER 2.420%10/15/20 2.4247% 1,800,000.0000 AAA N/A 99.81 1,796,343.75 1,796,508.00
Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6642% 1,340,000.0000 AAA N/A 99.84 1,339,903.65 1,337,869.40
Fixed Income 47788MAC4 JOHN DEERE OWNER 1.360% 4/15/20 1.3678% 1,654,824.6900 AAA N/A 99.43 1,654,564.23 1,645,342.54
Fixed Income 525ESCOY6 LEHMAN BIRTH HLD ESC 0.0000% 2,000,000.0000 1,070,782.46
Fixed Income 525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1/24/13 0.0002% 600,000.0000 N/A N/A 4.05 331,903.74 24,300.00
Fixed Income 532457BF4 ELI LILLY CO 1.950% 3/15119 1.9590%1 4,000,000.0000 A2 AA. 99.54 4,009,675.00 3,981,680.00
Fixed Income 58933YAGO MERCK CO INC 1.300% 5/18/18 1.3015% 1,000,000.0000 Al AA 99.88 998,880.00 998,830.00
Fixed Income 594918BP8 MICROSOFT CORP 1.550% 8/08/21 1.6142% 3,045,000.0000 AAA AAA 96.02 3,041,385.15 2,923,930.80
Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 5.1495% 2,800,000.0000 A3 BBB. 106.81 3,200,848.00 2,990,568.00
Fixed Income 64971M5E8 NEWYORKNYCITY 4.075% 11/01/20 3.9331% 1,400,000.0000 AAI AAA 103.61 1,400,000.00 1,450,526.00
Fixed Income 654747ABO NISSAN AUTO 1.470% 1/1520 11.4762% 940,656.5900 AAA N/A 99.58 940,651.79 936,677.61
Fixed Income 65477UAD2 NISSAN AUTO 1.500% 9/1521 11.5111%1 1,800,000.0000 AAA N/A 99.26 1,788,750.00 1,786,752.00
Fixed Income 65478VAD9 NISSAN AUTO 1.320% 1/1521 1.3333% 2,000,000.0000 AAA N/A 99.00 1,983,984.38 1,980,020.00
Fixed Income 65478WAB1 NISSAN AUTO 1.070% 5/15/19 1.0704% 298,556.1100 AAA N/A 99.97 298,544.35 298,451.62
Fixed Income 674599CK9 OCCIDENTAL PETROLEUM 2.600% 4/15/22 2.6578% 3,350,000.0000 A3 A 97.83 3,354,589.50 3,277,171.00
Fixed Income 69353RFB9 IPNC BANK NA MTN 2.625% 211722 2.6843% 1,000,000.0000 A2 A 97.79 974,940.00 977,910.00
Fixed Income 717081DW0 I PFIZER INC 1.200% 6/01/18 1.2016% 1,000,000.0000 Al AA 99.861 997,970.00 998,630.00
Fixed Income 73358WAG9PORT AUTH NY NJ 5.309% 12/01/19 5.0817% 2,440,000.0000 AA3 AA- 104.47 2:507,8333 2,549,118.80
Fixed Income 747525AD5 QUALCOMM INC 2.250% 5/20/20 2.2880% 5,000,000.0000 Al A 98.34 4,995,195.40 4,916,950.00
Fixed Income 78012UAX3 ROYAL BK OF C D 2.320%1127/18 2.3223% 1:000,000.000,0 99.90 1,000,000.00 999,030.00
3 of
U.S. Bank
Investment Listing -Yield
As of 3/31/2018
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis
Fixed Income 78445JAA5 5 L M A 2.93114% 4/25/23 2.8720% 29,180.7100 BAA3 AA, 102.06 29,062.32 29,781.25
Fixed Income 808513AJ4 CHARLES SCHWAB CORP 2.200% 7/25/18 2.2007% 930,000.0000 A2 A 99.97 931,841.40 929,711.70
Fixed Income 83162CLJO S B A GTD DEV PART 6.340% 3/01/21 6.1203% 39,115.3600 N/A N/A 103.59 39,115.36 40,519.21
Fixed Income 857477AK9 STATE STREET CORP 1.350% 5/15/18 1.3520% 2,100,000.0000 Al A 99.86 2,096,898.00 2,096,955.00
Fixed Income 89236WAC2 TOYOTA AUTO 1.120% 2/15/19 1.1202% 126,127.4900 AAA AAA 99.98 126,108.42 126,101.00
Fixed Income 89238BAB8 TOYOTA AUTO 2.100% 10/15/20 2.1086% 5,170,000.0000 AAA AAA 99.59 5,169,471.63 5,148,906.40
Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.8867% 5,000,000.0000 Al AA. 98.73 4,981,600.00 4,936,350.00
Fixed Income 912828833 U $TREASURY NT 1.500% 1/31/19 1.5077% 11,000,000.0000 AAA N/A 99.49 11,042,439.19 10,944,120.00
Fixed Income 912828F39 U S TREASURY NT 1.750% 9/30/19 1.7626% 5,800,000.0000 AAA N/A 99.29 5,873,186.87 5,758,530.00
Fixed Income 912828G61 U $TREASURY NT 1.500% 11/30/19 1.5187% 7,500,000.0000 AAA N/A 98.77 7,449,634.50 7,407,750.00
Fixed Income 912828J76 U S TREASURY NT 1.750% 3/3122 1.8009% 5,000,000.0000 AAA N/A 97.17 4,976,383.94 4,858,600.00
Fixed Income 9128281-24 U S TREASURY NT 1.875% 8/3122 1.9278% 6,000,000.0000 AAA N/A 97.261 5,987,832.601 5,835,720.00
Fixed Income 9128281-57 U S TREASURY NT 1.750% 9/3022 1.8105% 13,000,000.0000 AAA N/A 96.66 12,763,554.69 12,565,800.00
Fixed Income 9128281-99 U S TREASURY NT 1.375% 10/31/20 1.4099% 10,000,000.0000 AAA N/A 97.52 9,850,311.40 9,752,300.00
Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 2.0489% 8,000,000.0000 AAA N/A 97.61 7,907,500.00 7,809,040.00
Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.1667% 5,000,000.0000 AAA N/A 98.07 4,926,562.50 4,903,700.00
Fixed Income 912828N89 U S TREASURY NT 1.375% 1/3121 1.4143% 6,000,000.0000 AAA N/A 97.22 5,895,840.41 5,833,380.00
Fixed Income 912828045 U $TREASURY NT 0.875% 3/31/18 0.8750% 13,000,000.0000 W R N/A 100.00 12,981,523.44 13,000,000.00
Fixed Income 912828568 U $TREASURY NT 0.750% 7/31/18 0.7527% 15,000,000.0000 AAA N/A 99.65 14,932,226.57 14,946,750.00
Fixed Income 912828SN1 U $TREASURY NT 1.500% 3/31/19 1.5094% 5,000,000.0000 AAA N/A 99.38 5,016,423.00 4,968,950.00
Fixed Income 912828T34 U S TREASURY NT 1.125% 9/3021 1.1777% 7,000,000.0000 AAA N/A 95.53 6,757,914.08 6,686,890.00
Fixed Income 912828T67 U S TREASURY NT 1.250% 10/31/21 1.3043% 6,000,000.0000 AAA N/A 95.84 5,813,691.98 5,750,400.00
Fixed Income 912828U65 U S TREASURY NT 1.750% 11/30/21 1.7957% 7,000,000.0000 AAA N/A 97.45 6,900,492.20 6,821,710.00
Fixed Income 912828UU2 U $TREASURY NT 0.750% 3131118 0.7500% 5,000,000.0000 WR N/A 100.00 4,991,015.63 5,000,000.00
Fixed Income 912828V72 U S TREASURY NT 1.875% 1/3122 1.9185% 3,000,000.0000 AAA N/A 97.73 3,004,814.74 2,932,020.00
Fixed Income 912828VE7 U $TREASURY NT 1.000% 5/31/18 1.0012% 8,000,000.0000 AAA N/A 99.88 7,983,750.00 7,990,720.00
Fixed Income 912828WS5 U $TREASURY NT 1.625% 6/30/19 1.6362% 2,000,000.0000 AAA N/A 99.32 1,996,861.44 1,986,320.00
Fixed Income 912828WUO U S TREASURY I P S 0.125% 7/15/24 0.1279% 10,854,584.0000 AAA N/A 97.70 10,709,864.09 10,604,820.02
Fixed Income 912828W W U S TREASURY NT 1.625% 7/31/19 1.6373% 5,000,000.0000 AAA N/A 99.25 51012,388.70 41962,500.00
Fixed Income 912828XE5 U S TREASURY NT 1.500% 5/3120 1.5266% 5,000,000.0000 AAA N/A 98.26 4,966,423.00 4,912,900.00
Fixed Income 912828XW 5 U S TREASURY NT 1.750% 6/3022 1.8057% 5,000,000.0000 AAA N/A 96.92 4,973,454.25 4,845,900.00
Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/1521 4.7052% 400,000.0000 AA3 AA. 107.01 400,000.00 428,040.00
Fixed Income 94974BGM6 WELLS FARGO CO MTN 2.600% 72220 2.6251% 5,000,000.0000 A2 A- 99.05 5,001,650.00 4,952,250.00
Fixed Income 95000U2B8 WELLS FARGO MTN 2.625% 72222 2.7138% 3,000,000.0000 A2 A- 96.73 2,954,520.00 2,901,870.00
Total Consolidated I 1 503,728,487.21
4of4
U.S. Bank
Asset Detail - Consolidated
As of 3/31/2018
CUSIP Asset Short Name Price Shams/Units Cost Basis Market Value Percent of Total Urmalh:ed Galr&oss
Cash Equivalents
06406XG65 BNV MELLON C P 7/06I18 99.39 1,000,000,0000 993,840.00 993,880,00 0.20 40,00
06538CFD8 BANK OF TOKYO MITSUBIS C P 6/13/18 99.58 1,855p0O0000 1,845,044.83 1,84T,134.80 0.37 2,089.97
06538CFD8 BANK OF TOKYO MITSUBIS C P 6/13I18 99.58 8,240,000,0000 8,195,]]8.67 8,205,062,40 1.63 9,283.73
216876JO5 COOPERATIEVE CENTRALE C P 9124/18 98.82 1,500,000,0000 1,482,252.50 1,482,36000 0.29 107.50
313385VE3 F H L B DISC NTS 4/06I18 99.98 4,350,000.0000 4,346,713.33 4,349,217,00 0.86 2,503.67
313385VZ6 F H L B DISC NTS 4/25118 99.89 2,500,000.0000 2,496,723.61 2,497,350,00 0.50 626.39
313385VZ6 F H L B DISC NTS 4 5118 99.89 10,000,000,0000 9,986,894.44 9,989,400.00 1.98 2,505.56
313385Y66 F H L B DISC NTS 6/14118 99.65 10,000,000,0000 9,949,900.00 9,965,100.00 1.98 15,200,00
31846V567 FIRST AM GOUT OB FD CL Z 100.00 1,020,282,3900 11020,282.391 11020,282.39 0.20 -
31846V567 FIRST AM GOVT OB FD CL Z 100.00 10,679,60 ,7200 10,6]9,606.]2 10,179,606,72 2.12 -
69372BEO9 PACCAR FINANCIAL CORP C P 5/24I18 99.72 1,500,000.0000 1,493,293]5 1,495,]]0,00 0.30 2,476,25
69372BEO9 PACCAR FINANCIAL CORP C P 5/24I18 99.72 5,000,000,0000 4,977,645.83 4,985,900,00 0.99 8,254.17
89233HE75 IT
OVOTA MOTOR CREDIT COCP 5I07/18 99.81 8,000,000.0000 7,980.880.00 7,984,800.00 1.59 4,12000
89233HFE9 TOVOTA MOTOR CREDIT CO C P 6114/18 99.57 1,800p0O0000 1,78' 1,]92,260,00 0.36 ,743.50
99.6 15,000,000.0000 14 8 149912]96PV US TREASURY BILL 6/14118 ,91],]] 9,600.00 2.97 31,820A4
Cash Equivalents Total 82,444,889.1100 82,154,952.43 82,237,723.31 16.33 82,T10.88
Fixed Income ii
I00440EAU1 ACE INA HOLDINGS 2.875%11/03/22 99.07 4,169,000.0000 4,232A53.17 4,130,103.23 0.82 (102,349.94)
02665WAH4 AMERICAN HONDA MTN 2.250% 8115119 99.46 4,000p0O0000 4,046,640.00 3,978,440.00 0.79 (68,200,00)
03215PFN4 AMRESCO 2.38996% 6125129 94.78 133,743,2900 100,432.85 126,761.89 0.03 26,329,04
0378336SB APPLE INC 2.250% 2123121 98.50 4,000,000,0000 4,050,840.00 3,939,940.00 0.78 (111,000,00)
06050TMC3 BANK OF AMERICA MTN 1.750% 6105118 99.87 1,000,000,0000 9%,110.00 998,670.00 0.20 (440.00)
06406HCW7 BANK NY MELLON MTN 2.300% 9/11119 99.23 2,120, 0O0000 2.142,175.20 2,103,654.80 0.42 (38,520.40)
06406RAA5 BANK OF NV MTN 2.600% 2/07/22 98.10 2,500,000.0000 2,504,475.00 2,452,575.00 0.49 (51,900.00)
06406RAE7 BANK OF NV MTN 2.950% 1129/23 98.74 1,500p0O0000 1,486,065.00 1,481,160.00 0.29 (4,905.00)
06417GXH6 BANK OF NOVA CD 1.570% 8109/18 99.73 5,825,000.0000 5,825,000.00 5,808,981,25 1.15 (16,018.75)
073902CD8 BEAR STEARNS CO INC 4.650% 7102118 100.52 3,200,000,0000 3,523,520.00 3,216,512,00 064 (307,008.00)
084664BEO BERKSHIRE HATH 5.400% 5/15118 100.32 1,000,000,0000 1,016,250.00 1,003,150,00 0.20 (13,100.00)
084664BT7 BERKSHIRE HATHAWAY 3.000% 5115122 100.05 4,000,000,0000 4,131,120.00 4,001,84000 0.79 (129,280.00)
1667646G4 CHEVRON CORP 2.100% 5/16121 9].]5 2,500,000.0000 2,485,350.00 2,643,700.00 0.49 (41,650.00)
17275RAU6 CISCO SYSTEMS INC 1.650% 6115118 99.92 1,000,000,0000 1,000,150.00 999,230,00 0,20 (920.00)
24422ESS9 JOHN DEERE CAP MTN 2.300% 9116/19 99.43 5,000,000,0000 5,046,984.00 4,971,400,00 0A9 (75,584.00)
24422ESXB JOHN DEERE MTN 1.600% 7113118 99.79 1,500,000,0000 1,497,600.00 1,496,895.00 0.30 (705.00)
30231GAV4 EXXON MOBIL 2.222% 3/01/21 98.51 3,000,000,0000 3,016,097.40 2,955,330.00 0.59 (60,76].40)
3130A7CV5 F H L S DEB 1.375% 2118121 e].08 5,365p0O0000 5,343,325.40 5,208,556.60 1,03 (134,768.80)
3133782M2 F H LB DEB 1.500% 3/08119 99.40 7,500,000.0000 7,589,190.00 ],655,300.00 1 48 (133,890.00)
313379RB7 F H L S DEB 1.875% 6/11121 9802 4,000p0O0000 4,030,160.00 3,920,]20.00 0,78 (109,440.00)
313383HU8 F H LB DEB 1.750% 6/12120 98.56 5,000,000.0000 _5,008,950.00 4,928,100.00 0.98 (80,850.00)
3133TCE95 F H L M C MLTCL MTG 3.409% 8115132 104.66 21,462,6000 21A85.06 22,462.9] 0.00 971.91
313485WZ3 FH LM C M786064 3.426% 1/01128 --lN.231 ,159,2900 2,106.72 2,20].48 0.00 100.74
1 of
U.S. Bank
Asset Detail - Consolidated
As of 3/3 112 01 8
CUSIP I Asset Shod Name Prim Shares/Units Cost Basis Market Value PeruM of Total Unrealized GalnlLoss
3135GOD75 F N M A DEB 1, W% 612220 98.07 5,000,000,0000 4,955,650.00 4,903,250,00 0.97 (52,400.00)
3135GOF73 FNMA 1.500%11130/20 97.64 7,500,000,0000 7,370,726.00 7,323,075,00 1.45 (47,651.00)
3135GOG72 FNMA 1.125%12H4/18 99.35 5,000,000,0000 4,963,950.00 4,967,450,00 0.99 3,500,00
3135GOJ20 F N M A DEB 1.375% 2/26/21 98.96 10,000,000.0000 10,040,950.00 9,695,900,00 1.92 (345,050.00)
3135GOS38 FNMA 2.000% 1/0522 9].9] 3,000,W0,0000 2,994,570.00 2,938,980,00 0.58 (55,590.00)
3135GOT45 FNMA 1.875% 4105/22 97.38 5,000,000.0000 4,972,500.00 4,868,900,00 0.97 (103,600.00)
3135GOT94 FN MA DEB 2.375% 111923 98.74 3,000,00D.0000 2,956,410.00 2,962,290,00 0.59 5,880,00
31371NUC7 FN MA#25]1]9 4.500% 410128 104.98 20,414,5200 21,590.35 21,430.55 0.00 (159.80)
31376KT22 FN MA#357969 5.000% 9101/35 107.96 129,003,3500 138 678 58 139,301.691 0,03 623,11
3137EADMB F H L M C MTN 1.250%10102/19 98.50 7,500,000.0000 7,399:650:00 7,387,575.00 1 47 (12,075.00)
3137EAEA3 F H L M C MTN 0.750% 4109118 99.98 800,000,0000 798,240.00 ]99,848.00 0,16 1,608.00
3137EAEK1 F H L M C MTN 1.875%1111720 98.53 5,000,000,0000 4,9156,225.001 4,928,400,00 0.98 (59,825.00)
3137EAEL9 F H L M C MTN 2.375% 2116121 99.72 7,500,000,0000 7,484,475.00 7,478,775,00 1,48 (5,700.00)
31381PDA3 FN MAN66397 3.51335%11/01/20 101.54 349,929,5100 342,356.83 355,318.42 0.07 12,961.59
3138EG6F6 FN MA#AL0869 4.500% 610129 105.001 13,828,0600 14,624.54 14,519.19 0.00 (
31394JY35 F H L M C MLTCL MTG 6.500% 9125143 112.32 880,50].]100 974,524.9] 966,548.08 0.19 (7,976.89)
31397OREO FN MA GTD REMIC 1.113% 2125141 101,92 247,845.1500 247,767.70 252,603]8 0.05 4,836,08
31398VJ98 F H L M C MLTCL MTG 4.251% 112520 102.44 900,000,0000 951,046.88 921,915.00 0.18 (29,131.88)
31403DJZ3 FNMA#745580 5.000% 6101/36 107.96 124,703,4000 134,056.17 134,631.04 0,03 5]4,8]
31403GXF4 F N M A#748678 5.000%10/01/33 107.15 2,826,3200 3,038.29 3,028.35 0.00 (9.94)
31406PQYB FN MA#815971 5.000% 3101135 107.99 217,603,3700 233,923.64 234,992.06 0.05 1,068,42
31406MT5 F N M A#823358_3.484% 2/O1/35 104.56 130,299.2000 32n2,753.30
5 136,242.15 0.03 6,960,90
31407BXH7 FN MA#826080 5.000% 7101/35 108.03 23,990.850014 25,916.12 0.01 125,98
3141 OF4V4 FN MA#888336 5.000% 7101/36 107.96 241,739,6400 12 280,974.88 0.05 1,104.74
31411VAV3 F N M A#MA0022 4.500% 4101129 104.99 22,859,880055 24,001.50 0.00 (175.05)
36225CAZ9 G N M A 11#0800233.125%IM0126 102.97 20,803,150085 21,419.98 0.00 273,11
36225CC20 G N M A I 1#080088 2.625% 612027 103.58 22,266.210030 23,%2.6] 0.00 309,3]
36225CN28 GNMA II#08W082.625% 5/20/30 103.5] 67,248,730075 69,648.16 0.01 3,082,41
36225CNM4 GNMA 11#0803952.625% 4120130 103.55 8,564.6]0003 8,868,63 0.00 381,60
36225DCB8 G N M A 11#080965 2.750% 7120/34 103.83 65,741,8100 65,700.73 68,258,41 0.01 2,557,68
36962G7MO GENERAL ELEC CA MTN 2.200% 110920 98.47 5,000p000000 5,014,950.00 4,923,550,00 0.98 (91,400.00)
3837H4NX9 GN MA GTD REMIC 2.286% 2116130 100.37 17,157,3500 17,157.35 17,220.15 0.00 62,80
404280BF5 HSBC HOLDINGS PLC 2.650% 110522 97.23 4,500,000.0000 4,429,980.00 4,375,305,00 0.87 (54,675.00)
40428HPJ5 HSBC USA INC 2.625% 924118 99.98 619,000.0000 620,281.33 618,900,96 0.12 (1,380.37)
40428HPR7 HSBC USA INC MTN 2.350% 310520 98.69 2,500p00.0000 2,472,287.50 2,46],250.00 0.49 (5,037.50)
43814PA38 IHONDAAUTO 1.5]0% 1/2120 99.51 965,000,0000 964,914.21 960,223.25 0.19 (4,690.96)
43814OAC2 HONDAAUTO
AUTO 1.390% 411520 99.42 1,381,783,2100 1,381,756.41 1,373,69918 0.27 (8,056.63)
43814RACO HONDAAUTO 1.210%12/18/20 98.69 2,875,000.0000 2,843,442.38 2,837,337,50 0.56 (6,104.88)
43814TABB HONDAAUTO 1.420% 1/22/19 99.74 820,760,6600 820,741.04 818,651,31 0.16 (2,089.73)
44932HAH6 IBM CREDIT CORP 3.000% 2/06123 98.95 4,665,000.0000 4,619,258.85 4,615,8]].55 0.92 (3,381.30)
4581XOCS5 INTER AMERICAN DEVEL 1.875% 311521 98.11 5,000,000,0000 5,059,610.00 4,905,550.00 0.9] (154,060.00)
4581XOCW6 INTER AMER DEV BK 2.125% 1/18122 98.30 3,000,000,0000 2,996,310.00 2,948,880.00 0.59 (47,430.00)
2 oI4
U.S. Bank
Asset Detail - Consolidated
As of 3/31/2018
CUSIP Asset Short Name Prim Shams/Units Cost Basis Market Value PeruM of Total Unrealized GalnlLoss
4581XOCX4 INTER AMER DEV BK 1.6250A 5/12120 98.54 3,035,000,0000 3,027,807.05 2,990,537,25 0.59 (37,269.80)
4581XOCZ9 INTERAMERDEVBK 1.750% 9/14122 96.16 6,500,000,0000 6,249,655.00 6,250,400,00 1.24 745,00
459058FY4 INTL BK 2.000% 112622 97.48 10,000,000,0000 10,006,350.00 9,748,400,00 1.94 (257,950.00)
45950KBV INTL FINANCE CORP 0.875% 6115118 99.78 2,500,ODD.0000 2,490,715.00 2,494,450.00 0.50 3,735,00
45950KCJ7 INTL FINANCE CORP 1.125% 7I20/21 95.32 2,500p000000 2,441,600.D0 2,383,050.00 0.47 (58,5 .W)
45950KCMO INTL BK MTN 2.250% 1/25/21 99.18 2,970,000,0000 2,961,268.20 2,945,764.80 0.58 (15,503.40)
46625HJL5 JPMORGAN CHASE CO 7.625% 5/15/18 99.90 1,250,0000000 1,249,525.00 1,248,772.50 0.25 (812.50)
46625HKA7 J PMORGAN CHASE CO 2.250% 1/23/20 98.79 2,000,000,0000 1,994,880.00 1,975,700.00 0.39 (19,180.00)
47787XA83 JOHN DEERE OWNER 1.5000/,10/15/19 91.73 934,696.1900 934,692.45 932,135.12 0.19 (2,557.33)
47788BMO JOHN DEERE OWNER 1.590% 4/15/20 99.54 878,180,8200 878,104.51 874,iD6.06 0.17 (3,998.45)
47788BAD6 JOHN DEERE OWNER 1.820%10115/21 98.49 675,000.0000 674,950.59 664,780.50 0.13 (10,170.09)
47788CAB8 JOHN DEERE OWNER 2.420%10115/20 99.81 1,800,ODD.0000 1,796,343.75 1,796,508.00 0.36 164.25
47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 99.84 1,34QW00000 1,339,903.65 1,337,869.40 0.27 (2,034.25)
47788MAC4 JOHN DEERE OWNER 1.360% 4/15120 99.43 1,654,824,6900 1,654,564.23 1,645,342.54 0.33 (9,221.69)
525ESCOY6 LEHMAN BRTH HLD ESC - 2,000,000,0000 1,070,782.46 - - (1,O70,782.46)
525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1/24/13 4.05 600,000,0000 331,903.74 24,300.00 0.00 (307,603.74)
532457BF4 ELI LILLY CO 1.950% 3/15119 99.54 4,000p000000 4,009,6T5.00 3,981,680.00 0.19 (27,995.00)
58933YAGO MERCK CO INC 1.300% 5/18118 99.88 1,000,000,0000 998,880.00 998,830.00 0.20 (50.00)
594918BP8 MICROSOFT CORP 1.550% 81OB121 96.02 3,045p000000 3,041,385.15 2,923,930.80 0.58 (117,454.35)
61747WAL3 MORGAN STANLEY 5.500% 7128121 106.81 2,800,000,0000 3,200,848.00 2,990,568.00 0.59 (210,280.00)
64971M5E8 NEWYORKNYCITY 4.075%11/01/20 103.61 1,400, 000000 1,400,000.00 1,450,526.00 0.29 50,526,00
654747MO NISSAN AUTO 1.470% 1115/20 99.58 940,656,5900 940,651.79 936,677.61 OA9 (3,974A8)
65477UAD2 NISSAN AUTO 1.500% 911521 99.26 1,800,0000000 1,788,750.00 1,786,752,00 0,35 (1,998,00)
65478VAD9 NISSAN AUTO 1.320% 1/1521 99.00 2,000,000,0000 1,983,984.38 1,980,020.00 0.39 (3,964.38)
6547eWA61 NISSAN AUTO 1.070% 5115/19 99.97 298,556,1100 298,544.35 298,451.62 0,06 (92.73)
674599CK9 OCCIDENTAL PETROLEUM 2.600% 4/15122 97.83 3,350,000,0000 3,354,589.50 3,277,171.00 0.65 (77,418.50)
69353RFB9 PNC BANK NA MTN 2.625% 211722 97.79 1,000,000,0000 974,940D0 977,910,00 0,19 2,91000
717081DWO PFIZER INC 1.200% 6/01118 99.86 1,000,000,0000 997,970.00 99_8,630,00 0.20 660,00
73358WAG9 PORT AUTH NY NJ 5.309%12101119 104.47 2,440,000,0000 2,507,633.89 2,549,116,80 0.51 41,482,91
747525AD5 DUALCOMM INC 2.250% 5/20/20 98.34 5,000,000,0000 4,995,195.40 4,916,950.00 0.98 (78,245.40)
78012UAX3 ROYAL SK OF CD 2.320%1127118 99.90 1,000,000,0000 1=,000.00 999,030.00 0.20 (970.00)
78445JAA5 S L M A 2.93114% 425123 102.06 29,180,7100 29,062.32 29,781.25 0.011 718,93
808513AJ4 CHARLES SCHWAB CORP 2.200% 7125118 99.97 930,00,0000 931,841.40 929,711,70 0.18 (2,129.7O)
83162CUO SB A GTD DEV PART 6.340% 3/01121 103.59 39,115,3600 39,115.36 40,519,21 0.01 1,403.85
857477AK9 STATE STREET CORP 1.3500A 5/15118 99.86 2,100,00,0000 2,096,898.00 2,096,95500 0.42 57.00
89236WAC2 TOYOTAAUTO 1.120% D15119 99.98! 126,127,4900 126,108.42 126,101.00 0.03 (Z42)
89238BA68 TOYOTAAUTO 2.100%10/15120 99.59 5,17Op000000 5,169,471.63 5,148,906A0 1.02 (20,565.23)
90331HNL3 US BANK NA MTN 2.850% 123123 98.73 5,000,000,0000 4,981,600.00 4,936,350,00 0.98 (45,250.00)
912828633 US TREASU BY NT 1.500% 1131119 99.49 11,000,W0,0000 11,042,439.19 10,944,120,00 2.17 (98,319.19)
912828F39 US TREASU BY NT 1.750% 9/30119 99.29 5,800,000,0000 5,873,186.87 5,758,530,00 1.14 (114,656.87)
91282BG61 US TREASURY NT 1.500%11130/19 98.77 7,500,000.0000 7,449,634.50 7,407,750,00 1.47 (41,884.50)
912828J76 US TREASURY NT 1.750% 3/31122 97.17 5,000,00D.0000 4,976,383.94 4,858,600,00 0.96 (117,783.94)
3 d 4
U.S. Bank
Asset Detail - Consolidated
As of 3/3 112 01 8
CUSIP Asset Short Name = Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Lon
912828124 US TREASURY NT 1.875% 8/31122 97.26 6,000,0000000 5,987,832.60 5,835,720,00 1.16 (152,112.60)
9128281-57 US TREASURY NT 1.750% 9/30122 96.66 13,000,000,0000 12,763,554.69 12,565,800,00 2.49 (19],]54.69)
912828199 US TREASURY NT 1.375%10131/20 97.52 10,000,000,0000 9,850,311.40 9,752,30000 1.94 (98,011.40)
912828MBO US TREASURY NT 2.000%11130122 97.61 8,000,000,0000 7,907,500.00 7,809,W0.00 1.55 (98460.00)
9128281,130 US TREASURY NT 2.125%12131/22 98.07 5,000,000,0000 4,926,562.50 4,903,700,00 0.97 (22,862.50)
912828N89 US TREASURY NT 1.375% 1/31121 97.22 6,000,000,0000 5,895,840.41 51833,380,00 1.16 (62,480.41)
912828045 US TREASURY NT 0.875% 3/31118 100.00 13,000,000,0000 12,%1,523.44 13,000,000.00 2.58 18,4]6.56
912828868 US TREASURY N 5]T 0.750% 7/31118 99.65 15,000,000,0000 14,932,226. 14,946,750,00 2.97 14,523,43
912828SN1 US TREASURY NT 1.500% 3/31119 99.38 5,000,0000000 5,016A23.00 4,968,950,00 0.99 (47,473,00)
912828T34 US TREASURY NT 1.125% 9/30121 95.53 7,000,000,0000 6,757,914.08 6,686,890,00 1.33 (71,024.08)
91282BT67 US TREASURY NT 1.250%10131/21 95.84 6,000,0000000 5,813,691.96 5,750,400,00 1.14 (63,291,98)
912828U65 US TREASURY NT 1.750%11130121 97.45 7,000,000,0000 6,900,492.20 6,821,710,00 1.35 (78,]8220)
912828UU2 US TREASURY NT 0.750% 3/31118 100.00 5,000,0000000 4,991,015.63 5,000,000,00 0.99 8,984.37
912828V]2 US TREASURY NT 1.875% 1/31122 9].]3 3,000,000,0000 3,004,814.74 2,932,020,00 0.58 (72,794.74)
912828VE7 US TREASU RV NT 1.000% 5/31118 99.88 8 00 0,0000000 ],983,]50.00 1,990p20.00 1.59 6,970.00
912828WS5 US TREASU RV NT 1.625% 6/30119 99.32 2,000,000,0000 1,996,861.44 1,986,320,00 0.39 (10,541.44)
912828W U0 U S TREASU RV I IFS 0.125% 7115124 W.]0 10,854,584.0000 10,709,864.09 10,604,820.02 2.11 (105,044.07)
912828WW6 US TREASU RV NT 1.625% 7/31119 99.25 5,000,000,0000 5,012,388.70 4,962,500,00 0.99 (49,888.70)
912828XE5 US TREASU RV NT 1.500% 5/31120 98.26 5,000,000,0000 4,966A23.00 4,912,900.00 0.98 (53,523,00)
912828=5 U S TREASU RV NT 1.750% 6/30122 96.92 5,000,000,0000 4,973AS4.25 4,845,900,00 0.96 (127,554.25)
913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15121 107.01 400,000,0000 400,000.00 428,040.00 0.08 28,040.00
94974BGM6 WELLS FARGO CO MTN 2.600% 7/22120 99.05 5,000,000,0000 5,001,650.00 4,952,250,00 0.98 (49,400.00)
95000U2B8 WELLS FARGO MTN 2.625% 7/22122 96.73 3,000,000,0000 2,954,520.00 2,901,870,00 0.58 (52,650,00)
Flied Income Total 430,111,163.8900 427,989,343.98 421,00,763.90 83.67 (6,498,580.0800)
Grand Total 512,556,053.0000 510,1",296.41 503,728,487.21 100.00 (6,415,809.20)
4 of
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIP Id Explanation Units Prios Net Cash Amt Cost Gain/Loss
ACQUISITIONS
03/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,330.0000 1.000000 -33,330,00 33,330.00 0,00
03/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 9,391.5400 1.000000 -9,391.54 9,391.54 0.00
03/02/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,746.2800 1.000000 -28,746.28 28,746.28 0.00
03/05/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 29,375.0000 1.000000 -29,375.00 29,375.00 0.00
03/07/2018 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,021.875.0000 1.000000 5,021.875.00 5,021.875.00 0.00
03/08/2018 31846V567 PURCHASED UNITS OF FIRST AM GONT OB FD CL Z 56,250.0000 1.000000 -56.250.00 56.250.00 0.00
03/09/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,551,562.5000 1.000000 -7,551,562.50 7,551,562.50 0.00
03/12/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 24,380.0000 1.000000 -24,380.00 24,380.00 0.00
03/13/2018 06538CFD8 PURCHASED PAR VALUE OF BANK OF TOKYO MITSUBIS C P 6/131181MUFG UNION 8,240.000.0000 0.994633 -8,195.778.67 8,195.778.67 0.00
BK NA/MMI/PIMS/IPA/8,240,000 PAR VALUE AT 99.46333337%
03/13/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,031,357.4000 1.000000 -2,031,357.40 2,031,357.40 0.00
03/13/2018 44932HAH6 PURCHASED PAR VALUE OF IBM CREDIT CORP 3.000% 2/06123/BARCLAYS 1,680,000.0000 0.990310 -1,663,720.80 1,663,720.80 0.00
CAPITAL INC.FIXED IN/1,680,000 PAR VALUE AT 99.031 %
03/13/2018 44932HAH6 PURCHASED PAR VALUE OF IBM CREDIT CORP 3.000% 2/06123/PERSHING 2.985,000.0000 0.990130 -2,955.538.05 2.955.538.05 0.00
LLC/2,985,000 PAR VALUE AT 99,013%
03/14/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 56,875.0000 1.000000 -56,875.00 56,875.00 0.00
03/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 157.572.1800 1.000000 -157.572.18 157.572.18 0.00
03/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GONT OB FD CL Z 907,675.5500 1.000000 -907.675.55 907.675.55 0.00
03/16/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 58,529.5700 1.000000 -58,529.57 58,529.57 0.00
03/19/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,001,500.0000 1.000000 3,001,500.00 3,001,500.00 0.00
03/19/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4.161.5000 1.000000 3,161.50 4.161.50 0.00
03/20/2018 4042BOBFS PURCHASED PAR VALUE OF HSBC HOLDINGS PLC 2.650% 1/05/22/PERSHING 1.500,000.0000 0.971560 -1,457.340.00 1,457.340.00 0.00
LLC/1,500,000 PAR VALUE AT 97.156%
03/20/201847788CAB8 PURCHASED PAR VALUE OF JOHN DEERE OWNER 2.420%10/15120/MITSUBISHI 1,800,000.0000 0.997969 -1,796,343.75 1,796,343.75 0.00
UFJ SECURITIES USA/1,800,000 PAR VALUE AT 99.796875%
03/21/2018 313385VE3 PURCHASED PAR VALUE OF F H L B DISC NTS 4/06118/JEFFERIES 4,350,000.0000 0.999244 .4,346.713.33 4.346.713.33 0.00
LLC/4,350,000 PAR VALUE AT 99,92444437%
03/21/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 5,000,000.00 5,000,000.00 0.00
03/22/2018 89233HE75 PURCHASED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 5/07/18/DBTC 8,000.000.0000 0.997585 -7,980.680.00 7,980.680.00 0.00
AMERICAS/COMMERCIAL PAPER18,000,000 PAR VALUE AT 99.7585%
03/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,188.2500 1,000000 -3,188.25 3,188.25 0.00
03/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,467.4000 1.000000 -28,467.40 28,467.40 0.00
03/28/2018 313385VZ6 PURCHASED PAR VALUE OF F H L B DISC NTS 4/25/18/GOLDMAN SACHS 8 10,000.000.0000 0.998689 -9,986.894.44 9,986,894.44 0.00
CO.LLC/10,000,000 PAR VALUE AT 99.8689444%
1 of 7
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss
03/28/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 522,070.4200 1.000000 -522,070 42 522,07042 0.00
03/28/2018 69353RFB9 PURCHASED PAR VALUE OF PNC BANK NA MTN 2.625% 2/17/22/GOLDMAN 1,000.000.0000 0.974940 -974,940.00 974.940.00 0.00
SACHS&CO.LLC/1,000,000 PAR VALUE AT 97.494%
03/29/2018 3135GOT94 PURCHASED PAR VALUE OF F N M A DEB 2.375% 1/19/23/J.P.MORGAN 3,000,000.0000 0.985470 -2,956,410.00 2,956,410.00 0.00
SECURITIES LLC/3,000,000 PAR VALUE AT 98.547%
03/29/2018 4581XOCS5 PURCHASED PAR VALUE OF INTER AMERICAN DEVEL 1.875% 3115/21 /BMO 1,500,000.0000 0.979470 -1,469,205,00 1,469,205.00 0,00
CAPITAL MARKETS CORP/BONDS/1,500,000 PAR VALUE AT 97.947%
TOTAL ACQUISITIONS 68,581,307.5900 -68,309,871.63 68,309,871.63 0.00
DISPOSITIONS
03/07/2018 3137EADP1 MATURED PAR VALUE OF F H L M C 0,875% 3/07/18 5,000,000 PAR VALUE AT -5,000,000.0000 1.000000 5,000,000.00 -4,974,100.00 25,900.00
100%
03/09/2018 31337BA43 MATURED PAR VALUE OF F H L B DEB 1.375% 3/09118 7,500,000 PAR VALUE AT -7,500,000.0000 1.000000 7,500.000.00 -7,544.850.00 .44,850.00
100%
03/13/2018 06538CCD1 MATURED PAR VALUE OF BANK OF TOKYO MITSUBIS C P 3/13/18 6,665,000 PAR -6,665,000.0000 1.000000 6,631,443.58 -6,631,443.58 0.00
VALUE AT 100%
03/19/2018 025816AY5 MATURED PAR VALUE OF AMERICAN EXPRESS 7.000% 3119/182,900.000 PAR -2,900,000.0000 1.000000 2,900.000.00 -3,377.385.79 477,385.79
VALUE AT 100%
03/21/2018 3133851,144 MATURED PAR VALUE OF F H L B DISC NTS 3/21/18 5,000,000 PAR VALUE AT 5,000,000.0000 1.000000 4,995,722.22 -4,995,722.22 0.00
100%
03/28/2018 313385UV6 MATURED PAR VALUE OF F H L B DISC NTS 3/28118 1,500,000 PAR VALUE AT -1.500.000.0000 1.000000 1,498.223.75 -1,498.223.75 0.00
100%
03/01/2018 83162CLJO PAID DOWN PAR VALUE OF S B A GTD DEV PART 6.340% 3/01/21 -7,901.1200 6.581345 7,901.12 -7,901.12 0.00
03/15/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.426% 1101/28 FEBRUARY FHLMC -15.9200 0.000000 15.92 -15.53 0.39
DUE 3/15118
03/15/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.391% 8/15/32 -998.4000 0.000000 998.40 -999.44 -1.04
03/15/2018 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4115120 -120,198.7300 5.962096 120,198.73 -120.196.40 2.33
03/15/2018 47788NAB4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.090% 2/15119 CMO FINAL -140,599.4700 0.000000 140,599.47 -140.590.89 8.58
PAYDOWN
03/15/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15120 -153,535.6900 4.667556 153,535.69 -153,511.52 24.17
03/15/201847787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 -114.499.8800 6.258839 114,499.88 -114.499.42 0.46
03/15/2018 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4115120 -81.819.1800 8.758782 81,819.18 -81.812.07 7.11
03/15/2018 65478WAB1 PAID DOWN PAR VALUE OF NISSAN AUTO 1.070% 5/15119 -130,358.1600 5.497442 130,358.16 -130,353.02 5.14
03/15/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15/20 -96,424.3500 7.432110 96,424.35 -96,423.86 0.49
03/15/201889236WAC2 PAID DOWN PAR VALUE OF TOYOTA AUTO 1.120% 2/15/19 -127.480.7100 5.621528 127.480.71 -127.461.43 19.28
03/16/2018 3837144NX9 PAID DOWN PAR VALUE OF G N M A GTD REMIC 2.088% 2/16/30 -997.9800 0.000000 997.98 -997.98 0.00
2 of
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss
03/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I#OB0023 3.125%12/20/26 FEBRUARY GNMA -195.9000 0.000000 195.90 -199.14 -3 24
DUE 3120118
03/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 119080088 2.625% 6120127 FEBRUARY GNMA -1.035.7600 0.000000 1.035.76 -1.058.42 -22.66
DUE 3120118
03/20/2018 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#080395 2.625% 4/20130 FEBRUARY GNMA 53.2300 0.000000 53.23 52.75 0.48
DUE 3120118
03/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A 119080408 2.625% 5120130 FEBRUARY GNMA -398.4400 0.000000 398.44 -394.39 4.05
DUE 3120118
03/20/2018 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#080965 2.750% 7/20134 FEBRUARY GNMA -1,256.2000 0.000000 1,256.20 -1,255.41 0.79
DUE 3120118
03/21/2018 43814TAB8 PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7122119 -143.873.4200 0.000000 143,873.42 -143.869.98 3.44
03/2612018 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -2,756.8100 0.000000 2,756.81 -3,12.2.09 -365.28
03/26/2018 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01128 FEBRUARY FNMA -160.2000 0.000000 160.20 -169.43 -9.23
DUE 3125118
03/26/2018 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9101135 FEBRUARY FNMA -1,812.7400 0.000000 1.812.74 -1.948.70 -135.96
DUE 3125118
03/26/2018 31381 PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.1733%11/01/20 FEBRUARY FNMA -788.7000 0.000000 788.70 -771.63 17.07
DUE 3125/18
03/26/2018 31403DJZ3 PAID DOWN PAR VALUE OFF N M A#745580 5.000% 6101136 FEBRUARY FNMA -1,994.3100 0.000000 1.994.31 -2.143.88 -149.57
DUE 3125118
03/26/2018 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 FEBRUARY FNMA -15.0700 0.000000 15.07 -16.20 -1.13
DUE 3125/18
03/26/2018 31406PQYB PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3101135 FEBRUARY FNMA -934.7900 0.000000 934.79 -1.004.90 -70.11
DUE 3125118
03/26/2018 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 3.484% 2/01135 FEBRUARY FNMA -480.5200 0.000000 480.52 476.77 3.75
DUE 3125118
03/26/2018 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7101135 FEBRUARY FNMA .86.9900 0.000000 86.99 -93.51 .6.52
DUE 3125118
03/26/2018 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01136 FEBRUARY FNMA -4,357.7600 0.000000 4,357.76 -4,684.59 -326.83
DUE 3125118
03/26/2018 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6101129 FEBRUARY FNMA -185.9700 0.000000 185.97 -196.68 -10.71
DUE 3125118
03/26/2018 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 FEBRUARY FNMA -257.4300 0.000000 257.43 -272.26 -14.83
DUE 3125118
03/26/2018 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125/41 .4.565.1100 0.000000 4.565.11 .4.563.68 1.43
03/13/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,195,778.6700 1,000000 8,195,778.67 -8,195,778.67 0.00
03/20/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,261,019.4400 1.000000 3,261,019.44 -3,261,019.44 0.00
03/21/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,201.698.4300 1.000000 4,201.698.43 -4,201.698.43 0.00
3 of
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
PostDate CUSIPId Explanation Units Price Net Cash Amt Cost Gain/Loss
03/22/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,980,680.0000 1,000000 7,980,680.00 -7,980,680,00 0.00
03/28/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -9,986,894.4400 1.000000 9,986,894.44 -9,986,894.44 0.00
03/29/2018 31846V567 SOLD UNITS OF FIRSTAM GOVTOB FD CLZ -4,439,771.2500 1.000000 4,439,771.25 -4,439,771.25 0.00
TOTAL DISPOSITIONS -67,770,881.1700 67,731,270.72 -68,228,624.66 497,353.94
OTHER TRANSACTIONS
03/13/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 26416.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
03/28/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 30368.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
03/13/2018 912828WUO FED BASIS OF U S TREASURY 1 PS 0.125% 7/15/24 ADJUSTED BY 26416.00 UNITS 0.0000 0.000000 0.00 26,416.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
03/28/2018 912828WUO FED BASIS OF U S TREASURY I PS 0.125% 7115124 ADJUSTED BY 30368.00 UNITS 0.0000 0.000000 0.00 30.368.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
03/19/2018 025B16AY5 INTEREST EARNED ON AMERICAN EXPRESS 7.000% 3119/18$1 PV ON 0.0000 0.000000 101,500.00 0.00 0.00
2900000.0000 SHARES DUE 3/19/2018
03/26/2018 03215PFN4 INTEREST EARNED ON AMRESCO 2.38996% 6126/29$1 PV ON 266.3700 0.0000 0.000000 266.37 0.00 0.00
SHARES DUE 3/25/2018$0.00199/PV ON 133,743.29 PV DUE 3/25/18
03/12/2018 06406HCW7 INTEREST EARNED ON BANK NY MELLON MTN 2.300% 9/11/19$1 PV ON 0.0000 0.000000 24,380.00 0.00 0.00
2120000.0000 SHARES DUE 3/11/2018
03/13/2018 06538CCD1 INTEREST EARNED ON BANK OF TOKYO MITSUBIS C P 3113118$1 PV ON 0.0000 0.000000 33.556.42 0.00 0.00
6665000.0000 SHARES DUE 3/13/2018 6,665,000 PAR VALUE AT 100%
03/15/2018 532457BF4 INTEREST EARNED ON ELI LILLY CO 1.950% 3/15119$1 PV ON 4000000.0000 0.0000 0.000000 39,000.00 0.00 0.00
SHARES DUE 3/1 512 01 8
03/01/2018 30231GAV4 INTEREST EARNED ON EXXON MOBIL 2.222% 3/01121 $1 PV ON 3000000.0000 0.0000 0.000000 33.330.00 0.00 0.00
SHARES DUE 3/1/2018
03/09/2018 313378A43 INTEREST EARNED ON F H L B DEB 1.375% 3/09/18$1 PV ON 7500000.0000 0.0000 0.000000 51,562.50 0.00 0.00
SHARES DUE 3/9/2018
03/08/2018 3133782M2 INTEREST EARNED ON F H L B DEB 1.500% 3/08/19$1 PV ON 7500000.0000 0.0000 0.000000 56.250.00 0.00 0.00
SHARES DUE 3/8/2018
03/21/2018 313385UN4 INTEREST EARNED ON F H L B DISC NITS 3/21/18$1 PV ON 5000000.0000 0.0000 0.000000 4,277.78 0.00 0.00
SHARES DUE 3/21/2018 5,000,000 PAR VALUE AT 100%
03/28/2018 313385UV6 INTEREST EARNED ON F H L B DISC NITS 3128/18$1 PV ON 1500000.0000 0.0000 0.000000 1.776.25 0.00 0.00
SHARES DUE 3/28/2018 1,500,000 PAR VALUE AT 100%
03/07/2018 3137EADP1 INTEREST EARNED ON F H L M C 0.875% 3107/18$1 PV ON 5000000.0000 0.0000 0.000000 21,875.00 0.00 0.00
SHARES DUE 377/2018
03/15/2018 31348SWZ3 INTEREST EARNED ON F H L M C#786064 3.426% 1/01128$1 PV ON 6.2100 SHARES 0.0000 0.000000 6.21 0.00 0.00
DUE 3/15/2018 JANUARY FHLMC DUE 3/15/18
4 of
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss
03/15/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.391% 8115/32$1 PV ON 63.4700 0.0000 0.000000 63.47 0.00 0.00
SHARES DUE 3/15/2018$0D0283/PV ON 22,461.00 PV DUE 3115/18
03/26/2018 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125120$1 PV ON 900000.0000 0.0000 0.000000 3.188.25 0.00 0.00
SHARES DUE 3/2 512 01 8
03/26/2018 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9125/43$1 PV ON 4676.0200 0.0000 0.000000 4,676.02 0.00 0.00
SHARES DUE 3/25/2018$0.00542/PV ON 863,264.52 PV DUE 3125/18
03/26/2018 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01128$1 PV ON 77.1600 0.0000 0.000000 77.16 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3/25118
03/26/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 545.0700 0.0000 0.000000 545.07 0.00 0.00
SHARES DUE 3/2 512 01 8 FEBRUARY FNMA DUE 3125/18
03/26/2018 31381 PDA3 INTEREST EARNED ON F N M A#466397 3.1733%11/01/20$1 PV ON 927.4500 0.0000 0.000000 927.45 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3/25118
03/26/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 527.9100 0.0000 0.000000 527.91 0.00 0.00
SHARES DUE 312 512 01 8 FEBRUARY FNMA DUE 3125/18
03/26/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 11.9400 0.0000 0.000000 11.84 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3/25118
03/26/2018 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 910.5800 0.0000 0.000000 910.58 0.00 0.00
SHARES DUE 312 512 01 8 FEBRUARY FNMA DUE 3125/18
03/26/2018 31406XWT5 INTEREST EARNED ON F N M A#823358 3.484% 2/01/35$1 PV ON 379.7000 0.0000 0.000000 379.70 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3125118
03/26/2018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 100.3200 0.0000 0.000000 100.32 0.00 0.00
SHARES DUE 3/2 512 01 8 FEBRUARY FNMA DUE 3125/18
03/26/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 1025.4100 0.0000 0.000000 1.025.41 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3/25118
03/26/2018 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 52.5500 0.0000 0.000000 52.55 0.00 0.00
SHARES DUE 312 512 01 8 FEBRUARY FNMA DUE 3125/18
03/26/2018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4101129$1 PV ON 86.6900 0.0000 0.000000 86.69 0.00 0.00
SHARES DUE 3125/2018 FEBRUARY FNMA DUE 3/25118
03/26/2018 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 483.9300 0.0000 0.000000 483.93 0.00 0.00
SHARES DUE 3/25/2018$0.00192/PV ON 252,410.26 PV DUE 3125/18
03/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 28.746.28 0.00 0.00
2/2812018 INTEREST FROM 211/18 TO 2/28118
03/20/2018 36225CAZ9 INTEREST EARNED ON G N M A 11#080023 3.125%12/20126$1 PV ON 54.6900 0.0000 0.000000 54.69 0.00 0.00
SHARES DUE 3/20/2018 FEBRUARY GNMA DUE 3/20/18
03/20/2018 36225CC20 INTEREST EARNED ON G N M A 11#080088 2.625% 6/20/27$1 PV ON 50.9700 0.0000 0.000000 50.97 0.00 0.00
SHARES DUE 3120/2018 FEBRUARY GNMA DUE 3120/18
03/20/2018 36225CNM4 INTEREST EARNED ON G N M A 11#080395 2.625% 4/20/30$1 PV ON 18.8500 0.0000 0.000000 18.85 0.00 0.00
SHARES DUE 3/20/2018 FEBRUARY GNMA DUE 3/20/18
50f7
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss
03/20/2018 36225CN28 INTEREST EARNED ON G N M A 11#0804082.625% 5/20/30$1 PV ON 147.9800 0.0000 0.000000 147.98 0.00 0.00
SHARES DUE 3/20/2018 FEBRUARV GNMA DUE 3/20/18
03/20/2018 36225DCBB INTEREST EARNED ON G N M A 11#0809652.750% 7/20134$1 PV ON 153.5400 0.0000 0.000000 153.64 0.00 0.00
SHARES DUE 3120/2018 FEBRUARV GNMA DUE 3120/18
03/16/2018 3837144NX9 INTEREST EARNED ON G N M A GTD REMIC 2.088% 2/16/30$1 PV ON 31.5900 0.0000 0.000000 31.59 0.00 0.00
SHARES DUE 3/16/2018$0.001741PV ON 18,155.33 PV DUE 3116/18
03/19/2018 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 2875000.0000 0.0000 0.000000 2,898.96 0.00 0.00
SHARES DUE 3/1 BJ2018 31181181NT PVMT
03/15/2018 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 1739.8000 0.0000 0.000000 1,739.80 0.00 0.00
SHARES DUE 3/15/2018$0.00116/PV ON 1,501,981.94 PV DUE 3115118
03/21/2018 43814TAB8 INTEREST EARNED ON HONDA AUTO 1.420% 7/22119$1 PV ON 1141.4800 0.0000 0.000000 1,141.48 0.00 0.00
SHARES DUE 3121/2018$0.00118/PV ON 964.634.08 PV DUE 3/21/18
03/19/2018 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1/21/20$1 PV ON 1262.5400 0.0000 0.000000 1,262.54 0.00 0.00
SHARES DUE 3/18/2018$0.00131/PV ON 965,000.00 PV DUE 3118118
03/05/2018 40428HPR7 INTEREST EARNED ON HSBC USA INC 2.350% 3105120$1 PV ON 2500000.0000 0.0000 0.000000 29.375.00 0.00 0.00
SHARES DUE 3/5/2018
03/14/2018 4581XOCZ9 INTEREST EARNED ON INTER AMER DEV BK 1.750% 9/14/22$1 PV ON 0.0000 0.000000 56,875.00 0.00 0.00
6500000.0000 SHARES DUE 3/14/2018
03/15/2018 4581XOCS5 INTEREST EARNED ON INTER AMERICAN DEVEL 1.875% 3/15/21 $1 PV ON 0.0000 0.000000 32,812.50 0.00 0.00
3500000.0000 SHARES DUE 3/1 512 01 8
03/16/2018 24422ESS9 INTEREST EARNED ON JOHN DEERE CAP MTN 2.300% 9/16/19$1 PV ON 0.0000 0.000000 57,500.00 0.00 0.00
5000000.0000 SHARES DUE 3/1612018
03/15/2018 47788NAB4 INTEREST EARNED ON JOHN DEERE OWNER 1.090% 2/15/19$1 PV ON 0.0000 0.000000 127.71 0.00 0.00
140599.4700 SHARES DUE 3/15/2018
03/15/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 2049.4800 0.0000 0.000000 2,049.48 0.00 0.00
SHARES DUE 3/15/2018$0.001131PV ON 1.808,360.38 PV DUE 3/15118
03/15/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500%10/15/19$1 PV ON 1311.5000 0.0000 0.000000 1,311.50 0.00 0.00
SHARES DUE 3115/2018$0.00125/PV ON 1,049,196.07 PV DUE 3/15118
03/15/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 1272.0000 0.0000 0.000000 1,272.00 0.00 0.00
SHARES DUE 3/1 512 01 8$0.001331PV ON 960,000.00 PV DUE 3115/18
03/15/2018 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 0.0000 0.000000 1,023.75 0.00 0.00
675000.0000 SHARES DUE 3/15/2018
03/15/2018 65478WAB1 INTEREST EARNED ON NISSAN AUTO 1.070% 5115/19$1 PV ON 382.4500 0.0000 0.000000 382.45 0.00 0.00
SHARES DUE 3/15/2018$0.00089/PV ON 428,914.27 PV DUE 3115/18
03/15/2018 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15121 $1 PV ON 2200.0000 0.0000 0.000000 2.200.00 0.00 0.00
SHARES DUE 3115/2018$0.00110/PV ON 2,000,000.00 PV DUE 3/15118
03/15/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15/20$1 PV ON 1270.4200 0.0000 0.000000 1,270.42 0.00 0.00
SHARES DUE 3/15/2018$0.00123/PV ON 1,037,080.94 PV DUE 3115118
6 of
U.S. Bank
Transaction History
03/01/2018 Thru 03/31/2018
Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss
03/15/2018 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 2250.0000 0.0000 0.000000 2,250.00 0.00 0.00
SHARES DUE 3/15/2018$0.00125/PV ON 1,800,000.00 PV DUE 3/15118
03/01/2018 83162CLJO INTEREST EARNED ON S B A GTD DEV PART 6.340% 3/01/21 $1 PV ON 1490.4200 0.0000 0.000000 1.490.42 0.00 0.00
SHARES DUE 311/2018$0.03170/PV ON 47,016.48 PV DUE 3/1/18
03/15/2018 89236WAC2 INTEREST EARNED ON TOYOTA AUTO 1.120% 2/15/19$1 PV ON 236.7000 0.0000 0.000000 236.70 0.00 0.00
SHARES DUE 3/15/2018$0.00093/PV ON 253,608.20 PV DUE 3115118
03/15/2018 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 5170000.0000 0.0000 0.000000 13.571.25 0.00 0.00
SHARES DUE 3/15/2018
03/29/2018 3135GOT94 PAID ACCRUED INTEREST ON PURCHASE OF F N M A DEB 2.375% 1/19123 0.0000 0.000000 -13,062.50 0.00 0.00
03/20/2018 40428OBF5 PAID ACCRUED INTEREST ON PURCHASE OF HSBC HOLDINGS PLC 2.650% 0.0000 0.000000 -8.281.25 0.00 0.00
1105122
03/13/2018 44932HAH6 PAID ACCRUED INTEREST ON PURCHASE OF IBM CREDIT CORP 3.000% 2106/23 0.0000 0.000000 5,180.00 0.00 0.00
03/13/2018 44932HAH6 PAID ACCRUED INTEREST ON PURCHASE OF IBM CREDIT CORP 3.000% 2106/23 0.0000 0.000000 -9,203.75 0.00 0.00
03/29/2018 4581XOCS5 PAID ACCRUED INTEREST ON PURCHASE OF INTER AMERICAN REVEL 1.875% 0,0000 0,000000 -1,093.75 0.00 0.00
3/15/21
03/20/2018 47788CAB8 PAID ACCRUED INTEREST ON PURCHASE OF JOHN DEERE OWNER 2.420% 0.0000 0.000000 -2.420.00 0.00 0.00
10/15/20
03/28/2018 69353RFB9 PAID ACCRUED INTEREST ON PURCHASE OF PNC BANK NA MTN 2,625% 2/17122 0.0000 0.000000 -2,989.58 0.00 0.00
03/13/2018 912828W UO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 26416.0000 26.416.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
03/28/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 30368,0000 30,368,0000 0,000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
03/13/2018 912828W UO STATE COST OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 26416.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
03/28/2018 912828WUO STATE COST OF U S TREASURY I P S 0,125% 7115/24 ADJUSTED BY 30368.00 0.0000 0.000000 0.00 0.00 0,00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
TOTAL OTHER TRANSACTIONS 56,784.0000 5 1 56,784.00 0.00
7 of
Callan
March 31, 2818
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
Inbrmatien demanded herein includes confidential,trade secret and pmprietlry Information.Neither this Report nor any specific information contained herein Is
to be used other than by the intended recipient for its intended purpose or disseminated to any other personwithout Callan s permission Certain information
herei has been compiled by Callan and Is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily
verified the accuracy or completeness of or updated This content may consist of statements of opinion,which are made as of the date they are expressed and
are not statements of fad.This content Is for international purposes only and should not be construed as legal or tax advice on any matter.Any decision you
make on the basis of this content is your sole responsibility.You should consult with legal and tax advisers before applying any of this Information to your
particular situation.Past performance is no guarantee of future results.For further information,please see Appendix for Important Information and Disclosures.
Table of Contents
March 31, 2018
Capital Markel Review 1
Active Management Overview
Market Overview 7
Domestic Fixed Income 8
Asset Allocation
Investment Manager Asset Allocation 10
Investment Manager Retums 11
Asset Class Risk and Return 15
Manager Analysis
Chandler-Long Term Operating Fund 17
Chandler-Liquid Operating Money 21
Callan Research/Education 23
Definitions 26
Disclosures 31
Callan
Orange County Sanitation District
Executive Summary for Period Ending March 31, 2018
Asset Allocation
March 31, 2018 December 31, 2017
Market Value Welaht Net New In, Inv. Return Markel Value Welaht
Danesde Fixed Incm,e
Long Teem CpeMing Fund' 412,837,715 81,64% 17,500,000 (1.254,966) 396.592,680 7316%
Total Fund EWepO5p08 100.0% $(36,500,000) $198fi,fi08) $542,092,317 100.0%
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA (0.31%) 0,35% 0,85% 0,66% 1,51%
Chandler (0.31%) 0.35% 0.85% - -
Blmbg Gmt/Cred 1-5 Year ldx (0.50%) 0.19% 0.77% 0.95% 1.44%
ML 1-5 Govt/Corp (0.49%) 0,22% 0,81% 0,99% 1,50%
Liquid Operating Monie$A 0.34% 1.10% 0.63% 0.42% 0.35%
Chandler 0.34% 1.10% 0,63% - -
CltionuD3-Month Treasuiv Bill 0.35% 1.07% 0.49% 0.31% 0.24%
Total Fund (0.14%) 0.45% 0.72% 0.58% 1.28%
Target' (0.32%) 0.39% 0,75% 0,86% 1.25%
Current QuanerTamet=80.0%ML 15 GoWCap and 20.0%Citi 3moTaills
AAssets me trendemed in lend to Chandleron 12/1Q014.Previousperrormanoe reflects PIMCO.
Recent Developments
During the quarter, $17.5 million was added to the Long Term Operating Fund, and $53.0
million was removed from Liquid Operating Monies.
Organizational Issues
— WA
Manager Performance
— Optimism quickly vanished in 2018 as investors turned their focus to rising wage pressures,
policy uncertainties surrounding the incoming Fed Chair Jerome Powell, and escalating trade
tensions between the U.S. and China. At its March meeting, the Fed hiked the Fed Funds
target by 25 basis points to 1.50% - 1.75%, the first 25 bps increase of the year.The 10-year
U.S. Treasury yield steadily rose to nearly 3% from a low of 2.41% at the start of the year,
before declining to close the quarter at 2.74%. The curve flattened slightly during the quarter
with the 2-year U.S. Treasury climbing 38 bps to close at 2.27%, and One 30-year U.S.
Treasury climbing 23 bps to close at 2.97%. Market wpectations reflect the possibility of four
rate hikes in 2018, up from three projected at the end of 2017.
CallanOrange County Sanita"on Gs"ti
The Bloomberg Aggregate Index fell 1.5% in the first quarter. Longer bonds felt the most
pressure from increasing rates as the Bloomberg Long Gov/Credit Index lost 3.6% in the
quarter. TIPS (Bloomberg U.S. TIPS Index -0.8%) outperformed nominal treasuries
(Bloomberg U.S. Government Index -1.2%) and the 10-year breakeven inflation rate rose to
2.05% from 1.96% at the end of 2017. Outside of investment grade, the ML Figh Yield CP
Index fell 0.9%while the CS Leveraged Loan Index, which benefitted from rising rates, rose
1.6%.
The Long Term Operating Fund returned-0.31% in the quarter, outperforming the ML U.S. 1-
5 Corp/Gov Index (449%) and ranking "h percentile versus peers. The portfolio
maintained a short duration position relative to the benchmark (2.41 versus 2.73 years),
which helped relative performance as rates rose in the first quarter.The portfolio generated a
lower yield than the benchmark(2.4% vs. 2.6%), which weighed on results. The Long Term
Operating Fund had less than 30% invested in credit(21%)and less than the permitted 20%
invested in the combination of asset-backed securities (6%), commercial mortgage backed
securities(0%),and CMOs(1%)as of March 31,2018(see page 20).
The Liquid Operating Portfolio gained 0.30% (after fees) in the quarter, which slightly trailed
the return of the 3-month Treasury(+0.35%).The Portfolio returned 0.95%(after fees) for the
trailing 12-months and ranked 29"percentile versus peers.
Cordially,
Gordon M.Weightman, CFA
Senior Vice President
2
Capital Market Review
Capital Market Overview March 31, 2018
U.S.EQUITY U.S.Equity:Quarterly Returns
Volatility returned in the iu quarter of 2018,with the Dow and
S&P 500 both ending the quarter down—a first since the 3- Russell 3000 -0.6% .
quarter of 2015.After starting strong on the back of solid
earnings and tax reform,U.S.equities faltered in the second
half over concerns about a more aggressive global trade policy Russel110M -0.7% .
and uncertainly over the pace of interest rate hikes.The S&P
500(.0.8%)experienced a marked Increase In volatility,with Russell 1000 Graph - 1.4%
six days of movements greater than 2%during the quarter
(versus none in 2017).Volatility as measured by the VIX index Russell 1000 Value -2.8% —reached a quarterly high of 116%on Feb.5 when the market
sank 4%.
S&P 50o 4.8% ■
Small Cap Outperforms Large Cap
(Russell 1000:-0.7%;Russell 2000:.0.1%) Russell Midcap -0.5% ,
- The prospect of a trade war with China weighed on large
caps since many of these companies are exposed to Russell 25M -0.2% '
international markets(S&P 500 aggregate is-40%)while
small caps were less impacted as they tend to have a higher Russell 20M -0.1%
proportion of their revenue exposure from domestic markets
(-80-90%)and benefit from a more protectionist policy.
- In mid-March,mega-cap Tech firms saw their stock prices
drop in the wake of Facebook's Cambridge Analytica U.S.Equity:One-Year Returns
scandal,leading to declining trust for the Industry and
negative investor sentiment.The market began pricing in the
potential for more regulatory oversight for these internet Russell 30M 13.8%
companies.Performance for the"FANGS'split during the
quarter,with Facebook and Google down while Neff ix and RusseII 1000 — 14.0%
Amazon advanced.
Value Continued to Trail Growth Russell 1000 Growth 21.3%
(Russell 1000 Growth:+1.4%; Russell 1000 Value:-2.8%)
Russell 1000 Value 6.9%
- Value trailed as the prospect of increased inflation and
accelerating interest rates weighed on interest rate-sensitive S&P 500 — 14.0%
sectors(Financials:-1.0%,Real Estate:-5.0%,Utilities:
Russell Midcap 12.2%
- Energy(-5.9%)also took a hit despite a more promising
outlook for the sector as the Saudis agreed to continued oil
production cuts into 2019;performance for 1Q18 was Russell 25M 12.3%
impacted by Exxon Mobil and Chevron missing 4Q17
earnings expectations. Russell 20M 11.8%
Russell Sector Returns,Quarter ended March 31,2018
.Russell 1000 eRussell 2000
1A Mo.1.9% r0
-0.9%
-1.4% -1.5�
Technology Consumer Financial Health Care Producer Utilities Materiels& Energy Consumer
Discretionary Services Durables Processing Staples
Sources:FTSE Russell,Standard&Poor's
Callan
Capital Market Overview(continued) March 31, 2018
Defensive Sectors Underperformed Cyclicals Global Equity:Quarterly Returns
- Despite the increased volatility and price drop in the broader
index,defensive sectors underperformed cyclicals due in MSCI ACWI -1.0% '
large part to the rising interest rate environment.Technology
(+3.5%)and Consumer Discretionary(+3.1%)were the only MSCI World -1.3% ,
two sectors that posted positive returns.
- Telecommunications(-7.5%)and Staples(-7.1%)were the MSCI ACWI ex USA -1.2% ,
two worst-performing sectors.
MSCI World ex USA -2.0%
NON-U.S./GLOBAL EQUITY MSCI ACWI ex USA Small Cap -0.4% I
Non-U.S.developed equity underperformed U.S.as non-U.S.
equity markets were spooked by geopolitical tension and MSCI World ex USA Small Cap -0.5% '
market volatility along with fears of rising U.S.interest rates
and inflation despite positive economic data.Emerging markets MSCI Europe ex UK -1.2% ,
continued to outpace developed,fueled by a soft dollar and
synchronized global growth;however,fears of Inflation and Its MSCI United Kingdom -3.9% —
implication on the trajectory of U.S.monetary policy—as well
as a potential trade war with China—weighed on the market. MSCI Pacific ex Japan -3.7%
Developed non-U.S.small cap outperformed large cap given
the risk-on market environment spurted by synchronized global MSCI Japan ' 0.8%
growth.
MSCI Emerging Markets , 1.4%
Global/Non-U.S.Developed
(MSCI EAFE:-1.5%;MSCI Europe:-2.0%;MSCI Japan: MSCI China 1.6%
+0.8%:MSCI World ex USA:-2.0%) MSCI Frontier Markets 5.1%
- The dollar lost ground to the euro and yen,which buoyed
returns for their respective regions.
- Euro-zone recovery continued,with GDP growth of 2.7%in Global Equity:One-Year Returns
the recent quarter year-over-year driving the currency up
2%—and the pound by nearly 4%—relative to the dollar.
- Japan's economy grew by 1.6%fueled by infrastructure MSCI ACWI 14.8%
development ahead of the 2020 Olympics,enabling the yen MSCI World 13.6%
to surge by 6%relative to the dollar.
- The only sectors that posted positive returns were Consumer MSCI ACWI ex USA _ 16.5%
Discretionary,Tech,and Utilities. MSCI World ex USA 13.9%
- Positive earnings supported the Tech sector(top performer),
and Utilities benefited as investors fled to safety amid market MSCI ACWI ex USA Small Cap 20.6%
volatility and yield curve flattening in March.
- Telecom struggled as competition for wireless services MSCI World ex USA Small Cap 21.2%
within the euro-zone eroded profitability,and Staples was MSCI Europe ex UK 15.5%
notably challenged due to fears of interest rate normalization
and the prospect of beleaguered growth. MSCI United Kingdom - 11.9%
- Growth outpaced value and earnings growth and quality
factors were in favor as markets were jittery in light of the MSCI Pacific ex Japan ■ 8.4%
aforementioned looming risks.As such,high beta cyclical
sectors and factors struggled. MSCI Japan _ 19.6%
MSCI Emerging Markets — 24.9%
MSCI China 38.9%
MSCI Frontier Markets 27.3%
Souroa:MSCI
Callan
Capital Market Overview(continued) March 31, 2018
Emerging Markets(MSCI EM:+1.4%) U.S.Fixed Income:Quarterly Returns
- Brazil and Russia were among the best performers due to
climbing oil prices and improving economic conditions. Blmberg Barclays Gov/Cr 1-3 Yr -0.2% I
- China continued to thrive despite U.S.-China trade tension
and a slowdown for Chinese Tech companies;China's Blmberg Barclays Intern Gov/Cr -1.0% ,
supply-side reforms are kicking in and economic growth in
retail and home sales exceeded expectations,driving up Blmberg Barclays Aggregate -1.5% ■
returns for the Financials and Real Estate sectors.
- Although India announced better-than-expected GDP growth Blmberg Barclays Long Gov/Cr .3.6% _
of 7.2%,the country notably lagged due to poor market
sentiment surrounding asset-quality issues at large
state-owned banks and relative valuations of Indian equities. Blmberg Barclays Universal -1.4% ■
- Energy was the best performer supported by rising oil prices; CS Leveraged Loans ■ 1.6%
conversely,Consumer Discretionary was the worst sector
performer,weighed down by India.
,
- Value and sentiment factorswere in favor as the economic Blmberg Barclays High Yield -0.9%
recovery story gained traction and momentum;however,
quality factors also added value given the mid-cycle of the Blmberg Barclays TIPS -0.8%
recovery.
International Small Cap(MSCI World ex USA Small Cap: U.S.Fixed Income:One-Year Returns
-0.5%;MSCI EM Small Cap:+0.2%)
- Developed non-U.S.small cop outperformed large cap given Blmberg Barclays Gov/Cr 1-3 Yr 10.2%
the risk-on market environment spurred by synchronized
global growth,although within Emerging Markets,small cap
lagged large cap. Blmberg Barclays Intern Gov/Cr ' 0.4%
- Growth was favored in both developed and emerging market Blmberg Barclays Aggregate ■ 1.2%
small cap as growth-oriented sectors such as Health Care
and Consumer Staples outperformed cyclical sectors.
Blmberg Barclays Long Gov/Cr 5.1%
FIXED INCOME
Going into 2018,U.S.markets continued to rally higher due to Blmberg Barclays Universal ■ 1.6%
solid economic data,passage of the U.S.tax reform,and rising
expectations for corporate earnings growth. However,optimism CS Leveraged Loans 4.6%
quickly vanished as investors turned their focus to rising wage
pressures,policy uncertainties surrounding the new incoming Blmberg Barclays High Yield 3.8%
Fed Chair Jerome Powell,and escalating trade tensions
between the U.S.and China.The 10-year U.S.Treasury yield
steadily rose to nearly 3%from a low of 2.41%at the start of Blmberg Barclays TIPS 0.9%
the year,before declining to close the quarter at 2.74%.
Corporate risk premia similarly tightened then widened for both
investment grade and high yield corporates.Strong investor U.S.Treasury Yield Curves
demand and fewer new corporate issuances compared to the
same period last year helped offset some of the declines from March 31,2018 December 31,2017
rising rates and increased spread volatility during the quarter. +Mamh 31,2017
4%
The Bloomberg Barclays US Aggregate Bond Index 3%
returned-1.5%
- Volatility picked up across risk assets as geopolitical 2%
uncertainties took center stage;market expectations reflect 1%
the possibility of four rate hikes,up from three at the end of
2017. 0%
0 5 10 15 20 25 30
- Interest rates rose-30bps across the U.S.Treasury yield Maturity(Yearn)
curve.
- The 10-year U.S.Treasury yield rose from 2.41%to 2.74%. Sources:Bloomberg,Bloomberg Barclays,Credit Suisse
Callan
Capital Market Overview(continued) March 31, 2018
Investment grade corporates returned-2.3%and Global Fixed Income:Quarterly Returns
underperformed the Aggregate Index
— Investors were fairly sanguine as they reassessed fairly Blmberg Bemlays GI Aggregate , 1.4%
healthy balance sheets juxtaposed with fair/rich valuations.
— New issuance was down 13%when compared to a similar Blmberg Barclays GI Agg(hdg) -0.1
time period a year ago,yet demand remained strong with 2-
3x oversubscriptions.
Blmberg Barclays GI High Yield -0.4%
High yield corporates returned-0.9%and outperformed the
US Aggregate Index Blmberg Barclays GI Agg ex US 3.6%
— Corporate fundamentals remained healthy as earnings
growth supported debt coverage. JPM EMBI Global Diversified -1.7% 0
— Default rates remained benign because many companies JPM GBI-EM Global Diversified - d.d%
had already reorganized debt in 2016.
— Approx.75%of new issuance proceeds were used for JPM EMBI GI Div/JPM GBI-EM GI Div , 1.3%
refinancing.
— Valuations remained near historical highs. JPM CEMBI -1.2%
Bank loans returned+1.4%and outperformed the Aggregate.
— Healthy balance sheets,strong demand for CLO formation, Global Fixed Income:One-Year Returns
and higher short-term interest rates bode well for the sector
this quarter.
Blmberg Barclays GI Aggregate =
7.0%
— Demand from CLO formation continued to lead to interest in
bankloans.
Blmberg Barclays GI Agg(hdg) 2.5%
EMD returned+4.4%as returns were positive for most
countries in local currency terms. Blmberg Barclays GI High Yield = 6.6%
— Mexico, 10%by weight of the Index,returned 11%due
mostly to strong appreciation of the Mexican peso on Blmberg Barclays GI Agg ex US 11]%
speculation that an agreement would be reached on NAFTA.
— South Africa,also 10%of the Index,returned 13%from the JPM EMBI Global Diversified ■ 4.3%
rend hitting a multi-year high after scandal-ridden President
Zuma resigned.Falling rates also supported performance. JPM GBI-EM Global Diversified — 13.0%
JPM EMBI GI DIv/JPM GBI-EM GI Div _ 8.6%
JPM CEMBI ■ 3.3%
Change in 10-Year Global Government Bond Yields
4017 to 1018
U.S.Treasury 33 bps
Germany _ ]bps
U.K. — 16 bps
Canada = 5 bps
Japan 0 bps
Sources:Bloomberg,Bloomberg Bardays,JP Morgan
Callan
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 0rsl 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 31,2018
8%
8%
4% (34)®
E 2% (41)
a%
(39)
(2%) P41 ODD
(4%)
(6%) large Cap Smell Cep Non-US Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
s s vs vs
S&p SOU Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non43S G.A NCREIF Index
10ih Percentile 4.86 553 0.69 (1.10) 4.83 2.60
25M lands i 2.00 305)) ((0.0177 E(1.193) 449 2.15
15M Percentile 1.!34(3.10edian � 12 98) (2.28) (1.55) 2 95 ( 83
0 50)
90ih Percentile
Index • (076) (0,08) (1.53) (146) 442 1,80
Range of Separate Account Manager Returns by Asset Class
One Year Ended March 31,2018
30%
25%
20%
c
1S% (53)• (77)7
K (50) (33)®
10%
(47)
5%
0% (85)111�
Large Cap Small Cap Non-US Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
eapao) Russell 2000 MBCIEAFE Blmbg Aggr Bd Giti Non USGo" NCREIF Index
10M Percentile 23.30 2643 23.28 2.16 13.62 11.18
25ih Percentile 20.73 WAS 19.97 1,88 13.17 644
Median 14.82 11.98 11.40 1.65 12.55 6.87
75th Percentile 11.01 168 15.01 143 11.22 4.91
90th Percentile 0.50 4.88 13.14 1.03 10.85 1.66
'�
Index • 13.99 11.79 14.80 1.20 12.93 7.22
Callan Crease Comity Sanitation Decoct 7
Domestic Fixed Income
Active Management Overview
The 10-year U.S. Treasury yield marched steadily higher through most of January and February in response to positive
economic data,then equity market weakness and concerns over a looming trade war led to falling yields through March.The
new Fed Chair,Jerome Powell,announced his first rate hike(as widely expected)in March,raising the Fed Funds target rate
to 1.50% 1.75%. The 10-year U.S. Treasury yield climbed to a peak of nearly 3% during the quarter before closing at
2.74%, 34 bps higher than at year-end.Two-year U.S.Treasury Note yields rose nearly 40 bps to 2.27%, the highest since
2008, and the Note returned-0.1%for the quarter,while the 10-year Treasury returned-2.4% and the 30-year Treasury fell
almost 4%. TIPS outperformed nominal Treasuries and the 10-year breakeven inflation rate rose to 2.05% from 1.96% at
year-end. The Bloomberg Barclays U.S. Aggregate Index fell 1.5% with corporate and securitized sectors underperforming
Treasuries. In a sharp reversal from 2017's relative performance, investment grade corporates underperformed like-duration
Treasuries by 80 bps during the quarter and posted a -2.3% return. Outside of investment grade, the Bloomberg Barclays
High Yield Index fell 0.9%while the S&P/LSTA Leveraged Loan Index,which includes foaling rate loans and thus benefited
from rising rates, rose 1.4%.
Separate Account Style Group Median Returns
for Quarter Ended March 31,2018 Blmng Aggregate. (1.46%)
3% Blmbg High Yield (086%)
Blmbg Long GovlCrad- (358%)
2%
1.39
1%
0%
c
H%) _________(0.93)
70797
______________(1. )___(11.20)_
(2%I ____________
(3%)
(4%) _______________________f3ei-)______________
(5%)
Defensive Interned Case Core Plus Extended Bank High Yield
Band Maturity Loans
Separate Account Style Group Median Returns
for One Year Ended March 31,2018 Blmhg Aggregate: 1.20%
]% Blmbg High Yield: 3.78%
Blmbg Long Gov/Creel 5,09%
6%
5.34
5% ______________________ ____________
d.86
4.24
c4% --______________________
lit
N
2.31
2% _______________1.6_5
1% ____y.9g___4-_
0%
Defensive Interned Case Core Plus Extended Bank High Yield
Callan
Maturity Loans
Callancurse,County sanitation District a
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of March 31, 2018, with the
distribution as of December 31,2017.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 31,2018 December 31,2017
Market Value Weight Net New Inv. Inv.Return Market Value Weight
Domestic Filed Income
long Term Operating Fund' 412,837,715 81.54% 17,600,000 (1.254.966) 396.592.680 73.16%
liquid ODeratina Monies' 92,867,993 18.36% (53.000.000) 368,357 145.499.636 26.04%
Total Fund 8505,705,708 100.0% Wsso0,000) S(886,608) $542,092,317 100.0%
'Chandler replaced PIMCO during the 4th Quarter of 2014.Assets were transferred In+lnd as of 1001I2014.
Callan coerce county Sandation District 10
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2018. 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 31,2018
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA (0.31%) 0.35% 0.85% 0.66% 1.51%
Chandler (0.31%) 0.35% 0.85% -
Blmbg Govl/Cred 1-5 Year Idx (0.50%) 0.19% 0.77% 0.95% 1.44%
ML 1-5 Govt/Corp (0.49%) 0.22% 0.81% 0.99% 1.50%
Liquid Operating MoniesA 0.34% 1.10% 0.63% 0.42% 0.35%
Chandler 0.34% 1.10% 0.63% - -
Citigroup 3-Month Treasury Bill 0.35% 1.07% 0.49% 0.31% 0,24%
Total Fund (0.14%) 0.45% 0.72% 0.58% 1.28%
Target* (0,32%) 0.39% 0.75% 0,86% 1,25%
Current Quarter Target=80.0%ML US Corp/Gov:1-5Y and 20.0%Citi 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Onan,Cnmrty Santleann DlsNtl „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2018. 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 31,2018
Last Last Last
10 15 22.1/2
Years Years Years
Domestic Fixed Income
Long Term Operating FundA 2.33% 2.97% 4.26%
Blmbg GovUCred 1-5 Year Idz 2.11% 2.73% 4.07%
ML 1-5 Govt/Corp 2.16% 2.75% 4.10%
Liquid Operating Monies^ 0.49% 1.42% 2.60%
Citigroup 3-Month Treasury Bill 0.31% 1.21% 2.29%
Total Fund 1.99% 2.68% 4.00%
Target` 1.79% 2.44% 3.74%
Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%Citi 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Onar,County Sandarinn Distnd 12
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.
12/2017-
3/2018 2017 2016 2015 2014
Domestic Fixed Income
Long Term Operating Fund^ (0.31%) 1.18% 1.58% 0.85% 1.98%
Chandler (0,31%) 1.18% 1.58% 0.85% -
Blmbg Govl/Cred 1-5 Year Idx (0.50%) 1.27% 1.56% 0.97% 1.42%
ML 1-5 Govt/Com (0.49%) 1.28% 1.62% 1.05% 1.51%
Liquid Operating Monies^ 0.34% 0.91% 0.47% 0.22% 0.09%
Chandler 0.34% 0.91% 0.47% 0.22% -
Citiarouo 3-Month Treasury Bill 0.35% 0.84% 0.27% 0.03% 0.03%
Total Fund (0.14%) 1.02% 1.15% 0.80% 1.73%
Target* (0.32%) 1.19% 1.35% 0.85% 1.21%
*Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%Citi 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan 0mr,,e County Santle,Inn mistnd „
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.
2013 2012 2011 2010 2009
Domestic Fixed Income
Long Term Operating Fund^ (1.77%) 3.06% 4.59% 4.42% 5.52%
Blmbg Govt/Cred 1-5 Year Idx 0.28% 2.24% 3.14% 4.08% 4,62%
ML1-S Govt/Corp 0.32% 2.47% 3.10% 4.17% 4.88%
Liquid Operating Monies- 0.13% 0,17% 0.24% 0,25% 0,58%
Ciligroup 3-Month Treasury Bill 0.05% 0.07% 0.08% 0.13% 0.16%
Total Fund (1.49%) 2.70% 3.70% 3.68% 4.65%
Target` 0.26% 1.99% 2.49% 3.36% 3.93%
Current Quarter Target=80.0%MIL US Corp/Govl 1-5Y and 20.0%Citi 3 Mo T-Bill.
Callan
were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Crarxre County Sandarinn DisNtl 14
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
1.2%
1.0%
N
K 0.8%
0.6%
0.4%
0.2% �Y'l•1Y�•iyl•
0.0%
0.0% 02% 04% O6% 0.8% 1.0% 1.2% 1.4%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
18%
16%
r. .
1.4%
1.2%
1.0%
N
K 0.8%
0.6%
0.4%
0.2%
0.0%
0.0% 02% 04% O6% 0.8% 10% 1.2% 1.4%
,.., 1,, Standard Deviation
Callan Omrr County Sandation Oisftt 15
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended March 31, 2018
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 (0.31)% Beginning Market Value $396,592,680
return for the quarter placing it in the 84 percentile of the Net New Investment $17,500,000
Callan Defensive Fixed Income group for the quarter and in Investment Gains/(Losses) $-1,254,966
the 90 percentile for the last year.
• Long Term Operating Fund's portfolio outperformed the ML Ending Market Value $412,837,715
US Corp/Govt 1-5Y by 0.18% for the quarter and
outperformed the ML US Corp/Govt 1-5Y for the year by
0.13%.
Performance vs Callan Defensive Fixed Income(Gross)
6%
5% (( )
4% 29)®B(3 )
3% qq(( pp (
1% 9 3)®B(8 81®Bl] 5) 6 31)®B(5.
�N� B�6
0%
0%) 95) B9
(2%) Last Otr Last Last3 Yrs Chandler Last 5Yrs L•st]Y. L•910Yrs Since RM0155
Yr Incephon
101h Percentile 0.11 154 1,67 1.87 1.66 2.16 3.31 443
25M Peroen111e (005 1.11 1,39 1,59 141 in 257 4.15
Metlien 110.1] 0.86 104 1.18 1.09 1.51 2,17 390
]51h Percentile 10.28 0.51 0.91 1.038 1091 1.20 1.89 3.69
901h Percentile (0.40 0.35 0.71 0.85 0.]] 0.89 1.28 3.33
Long Term
Operating Fund •A (0.31) 0.35 0.85 1.01 offs 1.51 2.33 4.26
Blmbg G.Wcred
1-5 Year Idx •B (050) 0.19 O.n 1,01 0,95 1." 2.11 Corr
ML US
ComlGon l-S • (0.49) 0.22 0,81 1.06 0.99 1.50 2.16 4.10
Callan Defensive Fixed Income(Gross)
Relative Return vs ML US Corp/Govt 1-SY Annualized Seven Year Risk vs Return
2.0% 4.5%
4.0%
3.5%
E1.0%
3.0%
05% _ __ __ __ __ __ E2.5%
o.o% z.o%
1.0% • -
(1.5%) 0.0%
2011 2012 2013 2014 2015 2018 2017 18 0.0 0.5 1.0 1.5 2.0 25 30 3.5
0 Long Term Operating Fund
Standard Deviation
C/'�,� 1,�
allan Omlge County Sanitation DishkA 17
Long Term Operating Fund
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 chart illustrates 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 Callan Defensive Fixed Income(Gross)
14 2fi2
�g0 1
a B �- A g A 2]®B 8 "B((( �1yW*BIOM2�.AI
Al assill.,
! B 5 A10 )
4kk 12117-L10 M17 2016 2015 2014 2013 M12 2011 2010 2009
loth Percendle 0.11 2.26 2.82 1.17 150 1.20 4.46 292 471 13.74
25th Pemendle (0.05) 1.74 2.12 1.01 1.27 0.81 2.80 280 4el 8.60
Median (0.17) t31 t58 081 1.11 065 181 185 3.18 5.94
15th Percentile (0.20) 0.93 1.186 075 1087 040 145 165 2J2 2.53
sell Percentile (0.40) O.66 1.03 0 fi4 0.73 0.29 0.92 1.44 241 1.82
Long Term
Oavaung Fund *A (0.31) 1.18 158 085 1,98 (177) 306 459 4A2 5.52
Blm GOWCred
-5 Year 1& ■B (0.50) 1.27 1.56 0.99 1.42 0.28 2.24 3.14 4cli 4.62
ML US
Cor,/GO 15Y ♦ (0.49) 1.28 1.62 105 1.51 0.32 2.47 3.10 4.9 4.00
Cumulative and Quarterly Relative Return vs ML US Corp/Govt 1-SY
5%
4%
3%
2% -- --- - ----- --
u
of 1%
m 0%
m0%) -_ __ - - ---___ - --- --- --- -----
d
� (2%)
(3%)
(4%)
2036 2009 2010 2011 2012 M13 2014 2015 2016 2017 10
Long Term Operebng Fund 0 Blmbg Gn VCral 15 Year Idx Callan Defensive Fix Inc
Risk Adjusted Return Measures vs ML US Corp/Gout 1-SY
Rankings Against Callan Defensive Fixed Income(Gross)
Seven Years Ended March 31,2018
5
20
1.5
1 0 AI95�
OS
0.0 B 93
(0.5) B(90)
le)
(1.5) Alpha Sharpe Exceaa Relum
Rat10 Redo
10h Percentlle 1.11 1.90 0.87
25th Percentile 0.79 1.58 0.53
Median 0.39 1.42 0.01
75th Percen118 0.21 1.21 053 Air Percentile 0.03 1.04 0.83
Longg Term Operebng Fund *A 0.05 0.79 0.01
Blmbg GovVCred 1-5 Vear ltlx ■B 0.08 0.95 (0.82)
Callan Orarcg County sanitation Distinct 18
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 Callan Defensive Fixed Income
as of March 31,2018
5
4
3 6)
(1)♦ •(4) (��) (75)Lz4(93) (56)®
z N a )t
9
(1) Average Eased. Coupon OA
Duration 'it. Yield RMe convexity
101h Pemendle 2.16 3.88 3.62 3.03 0.07
250h Pemen0le 1.93 2.32 2.94 208 005
Medlan 1.70 2.00 2.73 2.33 0.03
75th Percenl 1.46 1.T9 2.62 205 ool
9M Pemen0le 0.85 1.09 2.51 1.99 (0.09)
Long Term
Operating Fund • 2.41 2.51 2.42 1.90 -
elmb9 Gov/Cred 1-5 Yr ♦ 2.73 2.87 2.62 2.26 0.10
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 31,2018 vs Callan Defensive Fixed Income
Tray
us.I ear ��
.i____________ AM
s
M+
conp—i u.nl (10)
a. (44)
M-
A,
rvxeumpua uri A
A Weighted Average
quality Rating
GwR 10M Percentile M,
25m Percentile M
cm Median M-
751h Percentile A,
901h Percentile A
0% 10% 20% 30% 60% 50% 60% 70% 80%
Long Term Operating Funtl Callan Defensive Fixatl Income Long Term
Operating Fund 0 M
Callan
0 Blmbg Gw/Cmd 1-5 Yr Blmbg GevlCmd 1-5 Yr ♦ M,
Cellar l Orange County Sanitation Distnd 19
Long Term Operating Fund
Portfolio Characteristics Summary
As of March 31, 2018
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 Tray US Trey
32% 61%
CMOs
ABS 1%
6%
Other RMBS
14% 23%
Cm,h Gov Related
3%< %
Tax-Evem%US Muni Cary((ind 144A)
Cory(21 lddA) 1% R]%
21%
Long Term Operating Fund Blmbg Govt/Credit 1.5 Year
Weighted Average: Duration
Duration Distribution ■ Long Term Operetlng Fund: 2.41
80% ■ ginning GOWC%dlt l-s Year 2.73
o 70% ____________ ______ ______
0 60% _________ 59.9 ______ ______
d50% _________ ______ ______ ______ ______
______
N
R 10%
o% 0.4 is—--——— —————— ——————
<1 1-3 3s s-] 7-10 .10
Years Duration
aWelgh�dge: Gaallly
Duality Distribution Oyemting Fund:100% Cmdit l-5 Year: M+•80% ______ ___ ___ __ ___ __ _ ___68 B
62L5
60% _ ___ ___ __ ___ __40% _ ___ ___ __ ___ __ _ ___4 20% 0-6i3.313L —TL"S8.9
6]
0%
APA PA A BBB Be B CCC CC C 0 NIR
Quality Rating
Callan OraMre county Sandation District 26
Chandler-Liquid Operating Money
Period Ended March 31, 2018
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 0,30% Beginning Market Value $145.499,636
return for the quarter placing it in the 28 percentile of the Net New Investment $-53,000,000
Callan Money Market Funds group for the quarter and in the
29 percentile for the last year. Investment Gains/(Losses) $368,357
• Liquid Operating Money Nefs portfolio underperformed the Ending Market Value $92,867,993
Citigroup 3-Month Treasury Bill by 0.05%for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.12%.
Performance vs Callan Money Market Funds(Net)
2.5%
9)�2.0%
1.5%
1.0% 21)
N(29
. % 22) (24 22)P(23
(9) (26 20)6I2e 21t®I26 33) Izs
ou% Lwt Utr Leaf Last 3 Ym Chandler Last 5Yrs Last 7Ym LastlOYrs Slnm9nOMS
Yr Incepgon
10T Percentile 035 120 0.91 0,87 060 0.38 050 2A6
25M Percentile 0.31 1020 046 0.42 0.28 0.21 0.35 2.33
Median 0.26 080 0,33 0.31 0.20 0.14 0.24 2.16
75th Percentile 020 059 0,22 0,21 0,14 0.10 oA8 205
90T Percentile 0,14 039 0,13 0,12 ow 0.06 0,14 190
Llquld Operating
Money Net 0
030 095 047 044 0,27 020 034 2A5
Ciligmup 3-Month
Treasury Bill ♦ 0.35 107 049 0.46 0.31 0.24 0.31 2.29
Relative Returns vs Callan Money Market Funds(Net)
Citigroup 3-Month Treasury Bill Annualized Seven Year Risk vs Return
0.10% 20%
008% - -- -- -- -- -- -- 18%
0.06% _ __ __ __ __ __ __ 1.6%
- 1.4%
0.02% - __ __ __ - __ __ m1.2%
e = 1.0%
2000% u
� m 0.8%
(0.02%) _ 0.6%
(0.04%) _ __ __ __ __ __ _
- 04%
(0.08%) 0.0%
2011 2012 2013 2014 2015 2016 2017 18 0D 05 10 15 2.0 2.5
/'�,, 1,.. ■L'puia operating Money rvet Standard Deviation
Callan Oran,e County Sanitation Oistdct 21
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 chart illustrates 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 PIMCC.
Performance vs Callan Money Market Funds(Net)
6%
4%
1.2%
1.0% 6
0.8% •32
O.fi%
OA% 9 28 29 26 •16
0.2% 11 12 P 4T
0.0%
0.2%)
0.4%) 12117 3118 M17 2016 2015 2014 2013 M12 2011 2010 2009
10ah Perwre8e 0.35 1.32 106 026 0.23 0.13 026 0.10 0.17 0.60
25tb Pecentle 031 0.87 032 red 0.02 003 005 003 O.OT 0.31
Median 0.26 0.61 0.13 0.01 0.01 0.01 0.01 0.01 0.02 0.15
75th Pecendle 0.20 0.42 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.05
Mh Percende 0.14 0.25 001 000 due 0.00 000 000 ace 0.02
Liquid Operating
Money Net 01 0.30 0.76 0.32 00] (0.06) (0.02) 0.02 0.09 0.10 0.43
Citi9rwp 3-Mordh
Treasury Bill ♦ 0.35 o" 0.27 003 0.03 0.05 0.07 0.08 0.13 0.16
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
o.To%
oao%
o.so%
_______________
'u 0.1% __ ___ ____________
y 020% _ ___'a 0.10% _
d 0.00%
(0.10%)
(0.20%)
(0.30%)
2000 2009 2010 2011 2012 M13 2014 2015 2016 2017 10
10 Liquid Opened,Money Net 0Callan Monay MaAat Funds
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury BIII
Rankings Against Callan Money Market Funds(Net)
Seven Years Ended March 31,2018
15
10
06
o0 8)
(0.5)
(1.0)
(1.5)
(2.0)
(2.5)
(3.0)
(35) /dpha She rye Excess Retum
Ratio Ratio
10b Percentile 0.16 0.26 1.00
25tb Percentila 10.02) 0.31) 0.84
Median 0.09 O.ad 1.53
75th Percentile (0.13) 1 ) 1.81
stab Percentile (0.16) (2.T6) 2.10
/'�
Liquid Operating Money Net • M 05) (0.36) (0.84)
Callan Orange County Sandation Oistdct 2
Callan Research/Education
CALLAN
Callan INSTITUTE 1st Quarter 2018
Education
Research and Educational Programs
The Callan Institute provides research to update clients on the latest industry trends and carefully structured educational programs to
enhance the knowledge of industry professionals.Visit www.callan.com/library to see all of our publications,and www.callan.com/blog to
view our blog"Perspectives."For more information contact Cony Walsh at 312.346.3536/institute@callan.com.
New Research from Callan's Experts
The Callan Periodic Table of Investment 2018 DC Trends Survey I Callan's 11th Annual DC Trends Survey
Returns I We are pleased to offer both our from our Defined Contribution Group highlights plan sponsors'key
Classic Periodic Table, depicting annual re- themes from 2017 and expectations for 2018.
turns for 10 asset classes ranked from best
to worst performance for each calendar year, Periodicals
and our Collection,offering 10 additional versions,including real es- Hedge Fund Monitor, list Quarter 20181 Jim McKee explains
tate indices, hedge fund strategy indices, and key indices ranked Form ADV changes and how to use them to evaluate advisers.
relative to inflation.
DC Observer,tat Quarter 2018I Non-qualified deferred romper.
Callan's 2018-2027 Capital Market Projections I Callan develops salion plans(NQDCs) may look and sound like qualified defined
long-tent capital market projections at the start of each year,detail- contribution (DC) plans, but the two are actually quite different.
ing our expectations for return,volatility, and correlation for broad This quarter's commentary explores approaches to designing the
asset classes.These projections represent our best thinking regard- NQDC plan investment menu as well as some of the consider-
ing a longer-term outlook and are critical for strategic planning as ations around informally funding the liabilities.
our investor clients set investment expectations over five-year,ten-
year,and longer time horizons. Active vs. Passive Report, 4th Quarter 2017 1 This series of
chars maps active managers alongside relevant benchmarks
How Callan Categorizes Multi-Asset over the last two decades.
Class Strategies I In the wake of the
3D Global Financial Crisis, a new genera- Market Pulse Flipbook, 4th Quarter 2017 1 A quarterly market
tion of multi-asset class(MAC)products reference guide covering investment and fund sponsor trends in
emerged that emphasized risk manage- the U.S. economy, U.S. and non-U.S. equities and fixed income,
ment and expanded their toolkits to include shorting and derivatives. alternatives.and defined contribution.
Callan groups these'outcome-oriented"MACS into four broad cate-
gories:Risk Parity,Risk Frannie,Absolute Return,and Long Biased. Capital Market Review,4th Quarter 2017 1 This quarterly pub-
lication provides analysis and a broad overview of the economy
Treasuries for the Long Run I Callan's James Van Haul ana- and public and private market activity each quarter across a wide
lyzed whether long-term Treasuries can serve as an effective hedge range of asset classes.
against equity losses.He concluded that long-term Treasuries have
a mixed record of offseffing equity risk.The potential protection of- Private Markets Trends,Winter 2018 1 This newsletter offers the
fered by long-term Treasudes comes with the disk of underperfor- latest data on activity in private equity fundraising, buyouts, ven-
mance over some time periods. Other types of bonds, he found,
ture capital,and returns for this asset class.
may offer less protection,but also have less volatility.
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 websile: College;provides a foundation of knowledge for industry profes-
www.callan.com/library/ sionals who are involved in the investment decision-making pro-
Callan's June Regional Workshops will be held on June 12 in San cess.It was founded in 1994 to provide clients and non-clients alike
Francisco and June 13 in Denver. Please visit our Event page on with basic-to intermediate-level instruction.Our next sessions are:
our websile(hRps://w.w+.callan.com/events)for additional infonna- Introduction to Investments
lion on these workshops. San Francisco,July 24-25,2018
We've added on-demand webinars to our online research library. Chicago, October 2-3, 2018
Access our library of pre-recorded webinars on specific invest- This program familiarizes fund sponsor trustees, staff, and asset
ment-related topics at www.callan.com/ondemandwebinar/. management advisers with basic investment theory,terminology,
and practices. It lasts one-and-a-half days and is designed for in-
For more information about events, please contact Barb dividuals who have less than two years of experience with asset-
Gerraty:415.274.3093/gerraty@callan.eom management oversight and/or support responsibilities.Tuition for
the Introductory "Callan College" session is $2,350 per person.
Tuition includes instruction, all materials, breakfast and lunch on
each day,and dinner on the first evening with the Instructors.
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 anywhere even at your office.
Learn more at www.callan.com/eventsicallan-college-intro or
contact Kathleen Curdle:415.274.3029/cunnie@callan.com
Education: By the Numbers
525 Attendees(on average)of the 50+ Unique pieces of research the
Institutes annual National Conference Institute generates each year
3 700 Total attendees of the'Callan 1980 Year the Callan Institute
I College since 1994 was founded
I "Research is the foundation of all we do at Callan, and sharing our
best thinking with the investment community is our way of helping
to foster dialog to raise the bar across the industry."
Greg Alen,CEO and CRO
Callan V @CaIIanLLC ID Callan
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).
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.
Rising and Declining Periods refer to the sub-asset class cycles vis-a-vis the broader asset class. This is determined by
evaluating the cumulative relative sub-asset class index performance to that of the broader asset class index. For example,
to determine the Growth Style cycle, the S&P 500 Growth Index (sub-asset class) performance is compared to that of the
S&P 500 Index(broader asset class).
Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-tree" 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 (Is. 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-diversifable or systematic)risk and residual(diversifiable or unsystematic) risk. The purpose
of portfolio diversification is to reduce the residual risk of the portfolio.
Callan
27
Risk/Reward Statistics
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
28
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
29
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 life 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
30
Disclosures
Callan 1
Quarterly List as of
March 31, 2018
List of Callan's Investment Manager Clients
Confidential-For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously.We recognize that there are numerous potential words of interest
encountered in the investment consulting industry and Mal it is our responsibility to manage those conflicts effectively and in the best interest of our
dlents. Al Callan,we employ a robust process to Identify,manage,monitor and disclose potential conflicts on an ongoing basis.
The list below is an important component of our conflicts management and disclosure process. It identities those investment managers Mat 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 Mat do business with Callan,particularly Moss investment manager clients that Me fund sponsor
clients may be using or considering using.Please note that if an investment manager receives a product or service on a complimentary heals(e.g.
attending and educational event),May are not included in the list below.Callan is committed to ensuring that we do not consider an investment
manager's business relationship with Callan,or lack thereof,in performing evaluations for or making suggestions or recommendations to its other
clients. 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 lnestutlonal Consulting Group,Independent Adviser Group and Fund Sponsor Consulting Group. Due to the complex
corpore[e and organizational ownership structures of many Investment management firms,parent and affiliate firm relationships are not indicated on our
list.
Fund sponsor dients may request a copy of Me most currently available list at any time.Fund sponsor clients may also request specific information
regarding the fees paid on Callan by particular fund manager clients. Per company policy,informal requests regarding fees are handled exclusively
by Callan's Compliance Department.
Acadian Asset Management LLC Chartwell Investment Partners
AEGON USA Investment Management Citi US Pension Investments
Affiliated Managers Group,Inc. Cleareddge Investments,LLC
Alcentra Cohen&Steers Capital Management,Inc.
AllianceBerostein Columbia Management Investment Advisers,LLC
Allianz Global Investors Columbus Circle Investors
Allianz Life Insurance Company of North America Cove Street Capital LLC
American Century Investments Call Suisse Asset Management
Apollo Global Management DePrince,Race&Zollo,Inc.
AOR Capital Management D.E.Shaw Investment Management,L.L.C.
Ares Management LLC Deutsche Asset Management
Adel Investments,LLC Diamond Hill Capital Management,Inc.
Artisan Holdings Dimensional Fund Advisors LP
Atlanta Capital Management Co.,LLC Doubleline
Aviva Investors Americas Duff&Phelps Investment Motor Co.
AXA Investment Managere EARNEST Per mere,LLC
Baillie Gifford Overseas Limited Eaton Vance Management
Baird Advisors Epoch Investment Partners,Inc.
Bank of America Fayez Sarofim&Company
Baron Capital Management,Inc. Federated Inveslo5
Barrow,Hanley,Mewhinney&Strauss,LLC Fidelity Institutional Asset Management
BlackRock Fidelity Management&Research
BMO Global Asset Management Fees Capital Corporation
BNP Paribas Asset Management First Eagle Investment Management,LLC
BNV Mellon Asset Management First Hawaiian Bank Wealth Management Division
Boston Partners Fisher Investments
Broader,Investment Partners,L.P. Franklin Templeton
Brandywine Global Investment Management,LLC Franklin Templeton Institutional
Brown Brothers Hamman&Company Fred Alger Management,Inc.
Gambier Investors,LLC GAM(USA)Inc.
Capital Group Geode Capital Management,LLC
Canlon Tower Advisers Gibia lax Capital,L.P.
CastleArk Management,LLC GMO
Causeway Capital Management Goldman Sachs Asset Management
Callan I Knowledge.Experience.Integrity. Page 1 of 2
Green Square Capital LLC Pacific Investment Management Company
Guggenheim Investments Pathway Capital Management
Grind Municipal Bond Management Peregrine Capital Management,Inc.
GW&K Investment Management Perkins Investment Management
Harbor Capital Group Trust PGIM
Hartford Funds PGIM Fixed Income
Hartford Investment Management Co. Pier Capital,LLC
Hellman LLC PineBridge Investments
Henderson Global Investors Pioneer Investments
Hotchkis&Wiley Capital Management,LLC PNC Capital Advisors,LLC
HSBC Global Asset Management Prodigal Global Investors
Income Research t Management,Inc. Private Advisors,LLC
Indexl0/Mainstay Putnam Investments,LLC
Insight Investment Management Limited OMA
Intech Investment Management,LLC BBC Global Asset Management
Invesco Regions Financial Corporation
Invested Asset Management Rebece Institutional Asset Management,US Inc.
Ivy Investments Rockefeller&Co.,Inc.
Janus Henderson Investors Rothschild Mast Management,Inc.
Jennison Associates LLC Russell Investments
Jensen Investment Management S&P Global,Inc.
Jobs Peak Advisors Sands Capital Management
J P.Morgan Asset Management Santander Global Fadlltles
J.P.Morgan Chase&Company Schroder Investment Management North America Inc.
Kei Shelton Capital Management
Lazard Asset Management Smith Graham&Co.Investment Advisors,L.P.
Legal&General Investment Management America Smith Group Asset Management
Lincoln Advisors South Texas Money Management,Ltd,
Lincoln National Corporation Standard Life Investments Limited
LMCG Investments,LLC State Street Global Advisors
Longview Partners Stone Harbor Invedg ent Partners,L.P.
Loomis,Sayler&Company,L.P. Sun Life Investment Management
Lord Abbott&Company T.Rowe Price Associates,Inc.
Los Angeles Capital Management The Boston Company Asset Management,LLC
LSV Asset Management The Hartford
MacKay Shields LLC The London Company
Macquarie Investment Management The TCW Group,Inc.
Manulife Asset Management Thompson,Siegel&Walmsley LLC
Marathon Asset Management Thornburg Investment Management,Inc.
McKinley Capital Management,LLC Tr-Star Trust Bank
MFS Investment Management UBS Asset Management
MidFirst Bank Van Eck Global
Variation Investment Partners Limited Velanne Asset Management Ltd.
Montag&Caldwell,LLC Versus Capital Group
Morgan Stanley Investment Management Victory Capital Management Inc.
Mountain Lake Investment Management LLC Vidos Investment Partners,Inc.
MUFG Union Bank,N.A. Verri l Asset Management,Inc.
Natims Investment Managers Voya Financial
Neuberger Berman Voya Investment Management
Newton Investment Management WCM Investment Management
Nikko Asset Management Co.,Ltd. WEDGE Capital Management
NOMam Trust Asset Management Wellington Management Company,LLP
Nuveen Investments,Inc. Wells Capital Management
OR Global Asset Management Western Asset Management Company
Old Mutual Asset Management Westfield Capital Management Company,LP
O'Shaughnessy Asset Management,LLC William Blair&Company
PIE Investments
Callan I Knowledge.Experience.Integrity. Page 2 of 2 March 31,2018
Investment Report
Orange County Sanitation District
Period Ending
March 31 , 2018
Diego,6225 Lusk Blvd San
Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Coil
SECTION 1
Economic Update
IC& I Economic Update
■ The Federal Open Market Committee (FOMC) raised the fed funds target rate to a range of 1.50%-1.75% at the March
21 meeting, as expected. The vote was unanimous. In the policy statement, the Fed said economic activity has been
"rising at a moderate rate" which was somewhat less bullish than the "solid rate" of growth cited in the January
statement. Household and business fixed investment moderated from the fourth quarter. Inflation for items other than
food and energy continues to run below 2.0% but the Fed expects inflation to move up in the coming months. The
FOMC left its median fed funds rate forecast unchanged for 2018 at 2.1% which implies two more rate hikes by year-
end. Although the forecasted median fed funds rate for 2018 did not change, the dot plot did change with 13 out of 15
FOMC members forecasting two or more rate hikes this year, compared with 10 out of 16 members at the December
2017 meeting. The fed funds rate targets for 2019 and beyond were revised up slightly. By the end of 2020, the
FOMC's median forecast now calls for a fed funds rate of 3.4%. Overall, the Fed revised their GDP forecasts up
slightly, their unemployment forecasts down slightly, and left their inflation projections mostly unchanged.
■ We are forecasting GDP growth of about 2.5%-3.0% in 2018, which is in line with the Fed's forecast and the market
consensus. This would equate to an increase over 2017 GDP growth of 2.3%. Overall, economic data remains solid,
with the exception of still-sluggish inflation readings. The economy is at or near full employment, consumer confidence
is strong, and leading indicators suggest the economy will continue to grow.
■ The Treasury yield curve flattened in March. The 2-year Treasury yield increased slightly to 2.27% from 2.25%, while
the 10-year Treasury yield decreased about 12 basis points to 2.86%. At month end, the spread between 2- and 10-
year Treasury yields was just 47 basis points; quite flat by historical standards. Al else being equal, we believe the
Fed's plan to normalize the balance sheet will help promote a steeper yield curve later this year. Tax reform and
stronger economic growth may also help drive yields at the long end of the curve higher. However, we believe this is
somewhat offset by anticipated ongoing monetary policy normalization by the Fed.
s
C1111 Employment
Nonfarm Payroll (000's) Unemployment Rate
350 12.0%
11.0% —Untleremployment Rate(U6)
300 10.0% —Unemployment Rate(U3)
N
$ 250 8.0%
0
u 200 a 8.0%
7.0%
t 150 6.0%
U
100 5.0%
4.0%
50
3.0
0 2.0%
Ma
41a, �01X `1, 1 4"a a'y, 1o. S".a % , q✓a, seq eft; 4ia� li'' '�sq 1
vs �s �s �s v� ' v� v� 4 v> >g �s 11� �s �s �s >> >> » 04 » 41 o,e
Source:US Department of Labor Smooe:US Department of Labor
U.S. payrolls rose by 103,000 in March, well below the consensus forecast of 175,000. January and February payrolls were also revised
down by a net total of 50,000. On a trailing 3-month and 6-month basis, payrolls increased by an average of 202,000 and 211,000 per
month, respectively. The unemployment rate was unchanged at 4.1%. The labor participation rate edged down to 62.9% from 63.0%. A
broader measure of unemployment called the U-6, which includes those who are marginally attached to the labor force and employed
part time for economic reasons, declined to 8.0%from 8.2%. Wages rose 0.3% in March, in line with expectations. Wages were up 2.7%
on a year-over-year basis in March, versus up 2.6% year-over-year in February. The average workweek was unchanged at 34.5 hours.
Inflation
Consumer Price Index (CPI) Personal Consumption Expenditures
3.5% (PCE)
—CPI VOV%Change 3.5%
%
—PCE Price Deflator VOV%CM1ange
3. —core cal vor%cnanga r 3.0%
—PCE Care Deflator VOV%CM1ange
ar 2.5% a 2.5%
m m
c c
L 2.0%
u V 2.0%
1.5% Y 1.5%
O p
1.0% Y 1.0%
0.5% 0.51
0.0% 0.0%
Oe, �0s, saq oac; ,; �. 41a1, �a +Ok � Hai, �O� �.
's 's 761 's 71 71 7� 7� 19 's 's '6 's '� 1i '1 » 'd
Source:US Department of Labor Source:US Department of Labor
The Consumer Price Index(CPI) was up 2.4% year-over-year in March, up from 2.2% in February. Core CPI (CPI less food and energy)
was up 2.1% year-over-year in March, up from 1.8% in February. The Personal Consumption Expenditures (PCE) index was up 1.8%
year-over-year in February versus 1.7% in January. Core PCE (excluding food and energy) was up 1.6% on a year-over-year basis in
February versus 1.5% in January. Although PCE inflation remains below the Fed's 2.0% target, it inched higher in February.
Consumer
Retail Sales YOY % Change Consumer Confidence
7.0% 135
6.0% 130
25
u 5.0% 120
a
4.0% 115
110
Y3.0% y 105
O c
� 2.0% 100
95
1.0%
90
0.0% 85
41 ': me Oa 4�a. tea, o°c 4ia 4, 4, `4�i" `%A '1'ok `Ha. 4i0, Ziah `4Ci1 sq +01 `5a, '1a1,d.10 O.70 A70 G70 lj lj 7> 7> /9 7& 76, C 76' 76. 1) J) )) J 7> 7> 7& JB
Sooroe:US Depadmnt of Gomm Sov.:The Conference Boar
On a year-over-year basis, retail sales were up 4.5% in March, versus up 4.1% year-over-year in February. On a month-over-month
basis, retail sales increased 0.6% in March (above the consensus forecast of +0.4%). Excluding autos and gas, retail sales were up
0.3% in March, below expectations of 0.5%, following a 0.3% increase in February. The Consumer Confidence Index remained robust but
eased slightly to 127.7 in March from 130.0 in February. Despite ongoing strength in the labor market and a very high level of consumer
confidence, consumer spending remains modest.
s
URA Economic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index
oso (C F N AI)
1s%
1.4%
1.2% 0.40
v 1.0% m
t 0.8% t8 0.20
0.6% t o.00
0.a% Ao
f 02% -azo
0.0%
-o.ao
aa% 4 -aso
T�'S �ah79 76 �ok76' 95'7I 71 Val' �ok71 .C133.7
e A�76 40k76
TB ryOL76 T�71,
410
h71 7
Som The Con/eience Soar Soo Federal Reserve Bank of Chicago
The Index of Leading Economic Indicators (LEI) rose 0.6% in February, following a 0.8% increase in January. According to the
Conference Board, the index points to robust growth ahead despite the downturn in stock markets and weakness in housing construction
in February. The Chicago Fed National Activity Index (CFNAI) increased sharply to 0.37 in February from 0.16 in January, on a 3-month
moving average basis. The CFNAI suggests that the economy is gaining strength.
Housing
Housing Starts S&P/CaseShiller 20 City Composite Home
Price Index
1600 7.0% —
b 1600 ■Multi Family Housing Starts
j ■Single Family Hong Sbr6 6.5%
c 1400
1200 u 6.0
m
0 1000 i
H 5.5%
$ 0 3E
600 p 5.0
m Y
u 400 4.5%
200
S
p 4.0
' May' '16 tio1' ' May 9$, tio1' �' �o. s ;�s ,�s Ccr.�s �o.�� 10, "�i,�� cb, .�s
s s s s > > > > e
Source:US Census Bureau Source:S&P
Total housing starts were weaker than expected in February, down 7.0%. Single-family starts rose 2.9% in January, while multi-family
starts fell 26.1%. According to the Case-Shiller 20-City home price index, home prices were up 6.4% year-over-year in January, versus
up 6.3%year-over-year in December. Pricing remains firm, owing in part to lack of supply.
s
CA11 Manufacturing
Institute of Supply Management Industrial Production
Purchasing Manager Index 5.0%
62
Expanding 4.0%
60
58 3.0%
ON
m 2.0%
56 ej
u 1.0%
54
0.0%
52 en y -1.0%
50 -20%
46 &0%
Contracting
46 -4.0%
q'a,, `�% soµ 106, 1%1, 111*,71 soµ 1001 4101' �66,70 '%,, 10s +61, 11101' 94µ
70
70
Source:In ukute for Supply Management Souce:Fedeml Reserve
The Institute for Supply Management (ISM) manufacturing index remained strong at 59.3 in March versus 60.8 in February. February's
level was the strongest reading in 14 years. A reading above 50.0 suggests the manufacturing sector is expanding. The Industrial
Production index was up 4.4% year-over-year in February versus up 3.5% in January. On a month-over-month basis, the index increased
1.1% in February, exceeding expectations. Overall, the index suggests activity in the factory sector is accelerating. Capacity Utilization
increased to 78.1% in February from 77.4% in January, but remained below the long-run average of 79.8%, indicating there is still excess
capacity for growth.
s
Gross Domestic Product (GDP)
Gross Domestic Product(GDP)
6.0%
Personal Consumption Expenditures 1.3% 2.2% 1.5% 2.8% 5.0%
Gross Private Domestic Investment -0.2% 0.6% 1.2% 0.8% 4.0%
3.0%
Net Exports and Imports 0.2% 0.2% 0.4% -1.2% 2.0%
1.0%
Federal Government Expenditures -0.2% 0.1% 0.1% 0.2%
0.0%
IF
State and Local (Consumption and Gross -t 0% GDP DOD%Chen,.
Investment) 0.1% -0.2% 0.0% 0.3% GDP YOY%Change
-20%
Total 1.2% 3.1% 3.2% 2.9% OeGJ��.I OeG���l oo4'`��. 6P- �64, �, �e4, � �eG
1 ? 2 J ,3 A kr S
Source: US Department of Gommeme
Source: US Department o/Commerce
Fourth quarter GDP growth was revised up more than expected to 2.9%from the second estimate of 2.5%, driven largely by an upward
revision to consumer spending. Consumer spending was very strong in the fourth quarter but net exports and inventories were both a
large drag on growth during the fourth quarter.
URA Bond Yields
US Treasury Note Yields US Treasury Yield Curve
4.0% 4.0%
2-Year �Mer-iB
3.5% s-veer 3.5% Dec-1�
3.0% 16Year 3.0% �Mer-n
2.5% 2.5%
a e
—° 2.0% 5 2.0%
• a
-> s
1s% ts%
1.0% 1.0%
0.5% 0.5%
0.0%
'4 sa `4i Ss'
00
a,;�s �''s ��a ai"7e °� v� vi » �s
Source:Bloomberg Soume:Bloomberg
Financial markets experienced increased volatility in recent months. Uncertainty about global trade, inflation, and the pace of monetary
policy normalization have all contributed to the volatility. After steepening slightly earlier this year, the yield curve flattened in March and is
quite flat by historical standards with the spread between 2-year and 10-year Treasuries just 47 basis points at the end of March.
Coil
SECTION 2
Account Profile
U111 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 ICE BAML 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.
RI Compliance
CA` Orange County Sanitation District Long Term
March 31,2018
COMPLIANCE •
Assets managed by ChandlerAsset Management are in full compliance Kith state lawand Kith the investmentpolicy
JIM Standard Comment
Treasury Issues 5 years maxmaturity; Minimum allocation of 10% Complies'
U.S.Agencies 20%max issuer; 5 years max maturity Complies
Supmnational "AA"rated or better by a NRSRO; 30%maximum; 5 years max maturity; USD Complies
denominated senior unsecured unsubordinated obligations issued or unconditionally
wranteed by BIRD, IFC or IADB
Corporate(MTNs) "A"rated or better long tens debt by a NRSRO; 30%maximum;5%max issuer; 5years Complies
max maturity, Issued by corporations organized and opemting within the U.S.or issued by
depository institutions licensed by the U.S.
Municipal Securities "A"rated or higher by a NRSRO; 10%maximum; 5%maxissuer, 5yearsmaxmaturity Complies
Asset Backed/CMOs/Mortgage- "AA"rated or better by a NRSRO; "A"or higher issuer rating by a NRSRO; 20%maximum; Complies"
backed 5%max issuer(excluding ovta enc /mbs ;5 years max maturity
Negobable CDs "A"rated or better long tens debt by a NRSRO;or"A-1"/highest short tens rating by a Complies
NRSRO; 30%maximum;5%max issuer,5 years max maturity
Certificates of Deposit 5%max issuer; 5 years max matudy, Secured/collateralized Complies
Bankers Acceptances A-1 rated or equivalent short tens rating by a NRSRO; 40%maximum; 5%max issuer, 180 Complies
days max maturity
Commercial Paper A-1 rated or equivalent short term rating by a NRSRO; "A"or better long tens debt issuer Complies
bya NRSRO; Issued bya domestic corpomtion organized and operafing in the US with
AUM>$500million; 25%maximum; 5%maxissuer; 270 days max maturity
Mutual Fund&Money Market Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with AUM>$500 Complies
Mutual Fund million and experience greater than 5 years; 10%per one Mutual Fund; 20%maxper
issuer on Money Market Mutual Funds; 20%max of the District's surplus money
Repurchase A reements 102%collateralization Complies
Reverse Repurchase Agreements 5%maximum,90 days max maturty Complies
LAIF Not wed by investment adviser Complies
OCIP Not used by investment adviser Complies
Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark) Complies
Max Per Issuer 5%of ortfolio(except Su ranationals,U.S.Government,Agencies,Mutual Fund Com lies
Maximum Maturity 5 years maximum maturity Complies*
'The portfolio has twenty-three(23)securities with maturities greater than 5 years including one(1)ABS,four(4)CMOs,seventeen(17)MBS and one(1)treasury. All
securities were inherited from the predous manager and complied at time of purchase.
GKI Portfolio Characteristics
Orange County Sanitation District Long Term
3/31/2018 12/31/2017
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.69 2.72 2.52
Modified Duration 2.56 2.41 2.26
Average Purchase Yield n/a 1.96% 1.75%
Average Market Yield 2.52% 2.42% 1.91%
Average Quality" AAA AA+/Aa1 AA+/Aa1
Total Market Value 412,803,448 396,615,728
*ICE BAML 1-5 Yr US Corp/Gov:Rated AAA-A Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Many securities were purchased across the Treasury, Agency, Supranational, Asset Backed, Commercial Paper and
Corporates sectors of the market to keep the portfolio structure consistent with Chandler targets. The purchased
securities ranged in maturity from February 2018 to February 2023. Many securities matured and $17.5 million was
contributed to the portfolio to facilitate the new holdings.
Sector Distribution
Orange County Sanitation District Long Term
March 31, 2018 December 31, 2017
Foreign
Corporate ABS ABS
5.7% 3.2%
US Treasury
31.6% US 2.9%Treasury
29%
Agency
22.7% Agency
29.5
CMO
0.5% CMO
0.6%
Commercial
Paper Commercial
5.1% Paper
1.7%
Money Market Money Market
US Corporate Fund FI US Corporate Fund FI
19.9% 2.7% 19.4°/ 4.0%
Supranational Mortgage Pass Supranational
7.8% Municipal Thru 5.9% Municipal Mortgage Pass
Negotiable CD Bonds 0.4% Negotiable CD Bonds Thru
1.4% 1.1% 1.5% 1.1% 0.4%
The sector allocation changed moderately. Some of the notable changes include the 3.4% increase to the Commercial
Paper allocation, the 2.5% increase to the Asset Backed allocation, and the 1.9% increase to the Supranational
allocation, somewhat offset by the 6.8% decline to the Agency allocation.
0111 Issuers
Orange County Sanitation District Long Term —Account #10268 As of 3/31/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 31.62%
Federal National Mortgage Association Agency 9.16%
Federal Home Loan Bank Agency 8.70%
Federal Home Loan Mortgage Corp Agency 4.82%
Inter-American Dev Bank Supranational 4.15%
First American Govt Obligation Fund Class-Z Money Market Fund FI 2.66%
Intl Bank Recon and Development Supranational 2.37%
Bank of Tokyo-Mit UFJ Commercial Paper 1.99%
Toyota Motor Corp Commercial Paper 1.93%
Wells Fargo Corp US Corporate 1.91%
John Deere ABS ABS 1.76%
Bank of New York US Corporate 1.47%
Honda ABS ABS 1.45%
Bank of Nova Scotia Houston Negotiable CD 1.43%
International Finance Corp Supranational 1.30%
Toyota ABS ABS 1.28%
JP Morgan Chase&Cc US Corporate 1.27%
Nissan ABS ABS 1.21%
Paccar Financial Commercial Paper 1.21%
Deere &Company US Corporate 1.21%
US Bancorp US Corporate 1.20%
Qualcomm Inc US Corporate 1.20%
General Electric Co US Corporate 1.20%
IBM Corp US Corporate 1.12%
HSBC USA Corp Foreign Corporate 1.07%
Chubb Corporation US Corporate 1.01%
Berkshire Hathaway US Corporate 0.98%
Honda Motor Corporation US Corporate 0.97%
Eli Lilly&Cc US Corporate 0.97%
Apple Inc US Corporate 0.96%
0111 Issuers
Orange County Sanitation District Long Term —Account #10268 As of 3/31/2018
Issue Name Investment Type % Portfolio
Occidental Petroleum Corporation US Corporate 0.80%
Morgan Stanley US Corporate 0.73%
Exxon Mobil Corp US Corporate 0.72%
Microsoft US Corporate 0.71%
Port Authority of New York and New Jersey Municipal Bonds 0.63%
HSBC USA Corp US Corporate 0.60%
ChevronTexaco Corp US Corporate 0.60%
Federal Home Loan Mortgage Corp CIAO 0.47%
New York City Transitional Finance Authority Municipal Bonds 0.36%
Federal National Mortgage Association Mortgage Pass Thru 0.33%
PNC Financial Services Group US Corporate 0.24%
University of California Municipal Bonds 0.11%
Federal National Mortgage Association CIAO 0.06%
GNMA Mortgage Pass Thru 0.05%
AMRESCO Residental Securities Corp Mortgage Pass Thru 0.03%
Small Business Administration ABS 0.01%
SLIM Corp ABS 0.01%
GNMA CMO 0.00%
Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
March 31, 2018 vs. December 31, 2017
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
AAA AA A <A NR
•3/31/2018 •12/31/2017
AAA AA A <A NR
03/31/18 14.5% 62.5% 13.3% 0.7% 8.9%
12/31/17 15.5% 63.8% 11.6% 1.7% 7.3%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of March 31, 2018
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
0-0.25 0.25-0.50 0.50- 1 1 -2 2-3 3-4 4-5 5+
•Orange County Sanitation District Long Term .ICE BAML 1-5 Yr US Corp/Gout Rated AAA-A Index
0-0.25 0.25- 0.50 0.50- 1 1 -2 2- 3 3 .4 4- 5 5+
Portfolio 11.6% 3.3% 11.3% 13.1% 24.0% 18.3% 15.8% 2.6%
Benchmark' 0.0% 0.0% 1.5% 32.3% 29.2% 22.5% 14.4% 0.0%
"ICE BAML 1-5 Yr US Corp/Gout Rated AAA-
A Index
The duration of the portfolio increased to 2.41 compared to 2.26 at the end of the prior quarter. The Chandler team
continues to position the portfolio to have an interest rate sensitivity to be modestly below the benchmark in light of the
rising rate environment.
AW Investment Performance
Orange County Sanitation District Long Term
Period Ending
March 31, 2018
Total Rate of Return
Annualized Since Inception
November 30, 2014
1.00%
0.90%
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00
12 months 2 years 3 years 5 years 10 years Since Inception
•Orange County Sanitation District Long Term
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
IOCephOn
Orange County Sanitation District Long Term -0.33% 0.31% 0.38% 0.77% N/A N/A 0.88%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index -0.45% 0.09% 0.15% 0.66% N/A N/A 0.78%
Total rate of return: 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.
RI Compliance
CA Orange County Sanitation District Liquid
March 31,2018
COMPLIANCE •
Assets managed by Chandler Asset Management are in full compliance Wth state lawand ulth the investmentpolicy
Category Standard lComplies
Treasury Issues 1 year max maturity, Minimum allocation of 10%
U.S.Agencies 20%max issuer; 1 year max maturity
Supranational "AA"rated or better by a NRSRO; 30%maximum; l year max maturity; USD
denominated senior unsecured unsubordinated obligations issued or
unconditional guaranteed b IBRD, IFC,or LADS
Corporate(MTNs) "A"rated or better long tens debt bya NRSRO; 30%maximum;5%max issuer;
1 year max maturity, Issued by corporations organized and operating within the
U.S.or issued b depository institutions licensed b the U.S.
Asset Backed/CMOs "AA"rated or better bya NRSRO; "A"or higher issuer rating by a NRSRO; 20%
maximum; 5%max issuer; 1 year max matunty
Negotiable CDs "A"rated or better long term debt bya NRSRO;or"A-1"/highest short term mting Complies
by aNRSRO; 30%maximum;5%max issued year max maturity
Certificates of Deposit 5%max issuer; 1 year max maturity, Secured/collateralized Complies
Banker's Acceptances A-1 rated or equivalent short term rating by a NRSRO; 40°/maximum; 5%max Complies
issuer 180 days max matunt
Commercial Paper A-1 rated or equivalent short tens rating bya NRSRO; "A"or better long tern Complies
debt issuer bya NRSRO; Issued by a domestic corporation organized and
operating in the US with AUM>$500million; 25%maximum; 5%max issuer;
270 days max maturity
Mutual Fund&Money Market Mutual Fund Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with Complies
AUM>$500 million and experience greater than 5 years; 10%per one Mutual
Fund; 20%max per issuer on Money Market Mutual Funds; 20%max of the
Districfs surplus money
Repurchase Agreements 102%collateraliza0on Complies
Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies
LAIF Not used by investment adviser Complies
OCIP 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
Max Per Issuer 5%of portfolio(except Supranationals,U.S.Government,Agencies,Mutual Fund) Complies
Maximum Maturity 1 year maximum maturity Complies
COIL Portfolio Characteristics
Orange County Sanitation District Liquid
3/31/2018 12/31/2017
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 0.15 0.18 0.16
Modified Duration 0.14 0.18 0.15
Average Purchase Yield n/a 1.65% 1.33%
Average Market Yield 1.60% 1.77% 1.37%
Average Quality" AAA AAA/Aa1 AA+/Aaa
Total Market Value 92,872,260 145,486,316
*ICE BAML 3-Month US Treasury Bill Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Many securities were purchased across the Treasury, Agency, Certificate of Deposit, Commercial Paper, and Corporate
sectors of the market to keep the portfolio as fully invested as possible. Three securities were called and many matured,
including some large positions on March 31, 2018 (a Saturday) which contributed to the large reported money market
fund allocation at the end of the reporting period. Additionally, a net $53 million was withdrawn from the portfolio during
the quarter.
Sector Distribution
Orange County Sanitation District Liquid
March 31, 2018 December 31, 2017
Negotiable CD
1.1% Agency
14.3
US TreasuryAgency
40.8% Commercial 29.0%
Paper US Treasury
8.2% 52.7%
Commercial
Paper
Money Market 4.7%
Fund FI Money Market
20.6% Fund FI
1.1%
4
Supranational
US Corporate Supranational US Corporate 3.8%
12.3% 2.7% 8.9%
The sector allocation changed materially as the investment opportunities in the short maturity sector of the market
continue to evolve. As previously noted the large money market allocation was related to the $18 million in maturities on
March 31, which were subsequently reinvested into the strategy in early April.
0111 Issuers
Orange County Sanitation District Liquid —Account #10282 As of 3/31/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 40.85%
First American Govt Obligation Fund Class-Z Money Market Fund FI 20.56%
Federal Home Loan Bank Agency 13.42%
International Finance Corp Supranational 2.69%
State Street Bank US Corporate 2.27%
Bank of Tokyo-Mit UFJ Commercial Paper 1.99%
Toyota Motor Corp Commercial Paper 1.93%
Deere &Company US Corporate 1.62%
Paccar Financial Commercial Paper 1.61%
Rabobank Nederland NV NY Commercial Paper 1.60%
JP Morgan Chase&Co US Corporate 1.35%
Berkshire Hathaway US Corporate 1.10%
Bank of America Corp US Corporate 1.08%
Cisco Systems US Corporate 1.08%
Merck&Company US Corporate 1.08%
Pfizer Inc. US Corporate 1.08%
Royal Bank of Canada Negotiable CD 1.08%
Bank of New York Commercial Paper 1.07%
Charles Schwab Corp/The US Corporate 1.01%
Federal Home Loan Mortgage Corp Agency 0.86%
HSBC USA Corp US Corporate 0.67%
Total 100.00%
Quality Distribution
Orange County Sanitation District Liquid
March 31, 2018 vs. December 31, 2017
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
AAA AA A <A NR
•3/31/2018 •12/31/2017
AAA AA A <A NR
03/31/18 56.9% 35.2% 8.0% 0.0% 0.0%
12/31/17 32.4% 61.5% 6.1% 0.0% 0.0%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark as of March 31, 2018
120.00%
100.00%
80.00%
80.00%
40.00%
20.00%
0.00%
0-0.25 0.25-0.50 0.50-1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
•Orange County Sanitation District Liquid •ICE BAIL 3-Month US Treasury Bill Index
0-0.25 0.25- 0.50 0.50 . 1 1 - 1.5 1.5-2 2 -2.5 2.5- 3 3+
Portfolio 77.9% 21.1% 1.1% 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%
"ICE BAML 3-Month US Treasury Bill Index
The duration of the portfolio increased marginally, currently 0.18 versus 0.15 at the end of the prior quarter. The
Chandler team will look to moderately extend the duration of the portfolio in the coming weeks to correspond with the
upcoming liquidity needs of the District.
GI Investment Performance
Orange County Sanitation District Liquid
Period Ending
March 31, 2018
Total Rate of Return
Annualized Since Inception
November 30, 2014
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
12 months 2 years 3 years 5 years 10 years Since Inception
•Orange County Sanitation District Liquid .ICE BAML 3-Month US Treasury Bill Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
IOCephOn
Orange County Sanitation District Liquid 0.35% 1.11% 0.78% 0.63% N/A N/A 0.59%
ICE BAML 3-Month US Treasury Bill Index 0.35% 1.11% 0.73% 0.53% N/A N/A 0.48%
Total rate of return: 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.
U111 Compliance
CA OCSD Lehman Exposure
March 31, 2018
COMPLIANCEPOLICY
Assets managed by ChandlerAsset Management are in full compliance wth state lawand wth the investment policy
Category Standard Comment
Treasury Issues 5 years maximum maturity Complies
Supranational "AA" or better by 1 of 3 NRSROs; 30% maximum; 5% max; 5 years maturity; Complies
Includes only: IADB, BIRD, 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 "A" or higher by 1 of 3 NRSROS; 10% maximum; 5% max issuer, 5 years Complies
maximum maturity
Asset Backed/CMOs/ "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; Complies
Mortgage-backed 20% maximum; 5% max issuer(excluding MBS/gout agency); 5 years max maturity
Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term Complies
ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity
CDs/TDS 5% max issuer; 5 yearsmax maturity Complies
Bankers Acceptances A-1, or equivalent highest short term rating by 1 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% 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% collateralization Complies
Reverse Repurchase 5% maximum, 90 days max maturity Complies
Agreements
LAIF Not used by nvestment adviser Complies
Ava Duration Not to exceed 60 months - 80%to 120° of the benchmark Com lies
Max mum Maturity 5 years max mum matur tv ComnlAes
Account holds $2 million face value(cusip 525ESCOY6)and $600,000 face value(cusip 525ESC1B7)of defaulted Lehman Bros Holdings that were purchased
by the preNous manager. Complied at time of purchase.
GRI Portfolio Characteristics
OCSD Lehman Exposure
3/31/2018 12131/2017
Portfolio Portfolio
Average Maturity (yrs) 19.60 20.37
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 129,921 145,221
Coil
SECTION 3
Consolidated Information
CIR� Portfolio Characteristics
Orange County Sanitation District Consolidated
3/31/2018 12/31/2017
Portfolio Portfolio
Average Maturity (yrs) 2.26 1.89
Modified Duration 2.00 1.70
Average Purchase Yield 1.90% 1.63%
Average Market Yield 2.30% 1.76%
Average Quality AA+/Aa1 AA+/Aa1
Total Market Value 505,805,628 542,247,265
Sector Distribution
Orange County Sanitation District Consolidated
March 31, 2018 December 31, 2017
Foreign
Corporate ABS ABS
0.9% 4.7% 2.3%
US Treasury
33.3% US Treasury
Agency 38.2%
21.1% Agency
29.3%
CMO
0.4% CMO
Commercial 0.4
Paper Commercial
5.7% Paper
2.5%
Money Market Money Market
US Corporate Fund FI Fund FI
18.5% 5.9% US Corporate 3.2%
Supranational Mortgage Pass 16.6% Supranational Mortgage Pass
6.9% Municipal Thru 5.3% Municipal Thm
Negotiable CD Bonds 0.3% Negotiable CD Bonds 0.3%
1.4% 0.9% 1.1% 0.8%
Coil
SECTION 4
Portfolio Holdings
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. MoodyfS&P Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value MktYTM Accrued Int. Gairl Fitch Duration
MENEM
s _
89236WAC2 Toyota Auto Receivables Owner 2015-A 126.12749 02/24/2015 126,108.42 99,98 126,100,50 0.03% Asa/AAA 0.8a
1.120% Due 02/15/2019 1,13% 126,127.49 528% 62.78 (26.991 NR 0.03
65478WA131 Nissan Auto Receivables Owner 2016-0 A2A 298,556.11 08/02/2016 298,544.35 99.97 29845191 007% Aaa/NR 1.12
1070% Due05/15/2019 1.08% 298,551.34 L56% 141.98 (99.43) AAA 0.07
43814TAB8 Honda Auto Receivables 2017-1 A2 820,76066 03/21/2017 820,74104 99.74 818,653.77 0.20% AaaI NR 1.31
1.420% Due 07/2/2019 143% 820,749.60 2.43% 323.74 (2,095.83) AAA 0.25
4T187XAB3 John Deere Owner Trust 2017-A A2 934,696.19 0212212017 934 692.45 99.73 932,136.99 0.23% Ann/NR 1.54
1.500% Due 10/15QO19 1.50% 934,693.99 2A8% 623.13 (2,557.00) AAA 0.28
654747AB0 Nissan Auto Receivables 2017-A A2A 940,656.59 03/21/2017 940,65179 99.58 9W,681.38 0.23% Aaa/NR 1.79
1.470% Due01/i5Y2020 1.47% 940,653.52 2.61% 614.56 (3,972.14) AM 0.37
43814PAB6 Honda Auto Receivables Owner T 17-3 A2 W5,000.00 W25/2017 %4,914.21 99.51 960,226.15 0.23% NR/AAA 1.81
1.570% Due 01Y2 M20 1.58% W4,932.91 2.47% WAD (4,706.76) AAA 0.55
4n88MAC4 John Deere Owner Trust 2016-A A3 1,654,824.69 02/23/2016 1,654,564.23 99.43 1,645,350.82 0.40% Aai 2.W
1.360% Due04/15/2020 1,37% 1,654,69576 2.61% 1,000.25 (9,344.94) AAA 0.46
438140AC2 Honda Auto Receivables 2016-2 A3 1,381,783.21 05/24/2016 1,381,756,41 99.41 1,373,694.25 0.33% Aai IN
1390% Due04/15/2020 140% 1.381769.10 2.51% 853.63 (18,074.85) AAA 0.52
4n88BAB0 John Deere Owner Trust 2017-B A2A 878,180.82 07/11/2017 878,10,151 99.54 874,104.30 0.21% Aai 2.W
1590% Due 04/15/2020 1.60% 878,124.08 2.56% 620.58 (4,019,78) AAA 0.48
89238BAB8 Toyota Auto Receivables Owner 2018-A A2A 5,170,000.00 01/2W2018 5,169,471.63 99.59 5,148,890.89 1.25% Aaa/AAA 2.55
2.100% Due 10115Q020 2.12% 5,169,503.72 2.55% 4,825.33 (20.612.83) NR 0.94
47188CAB8 John Deere Owener Trust 201&A A2 1,80 ,000.00 03/16/2018 1,796,34335 99.81 1,796,502.60 0.44% Aaa/NR 2.55
2.420% Due 10/15=0 2.59% 1,796,390.43 2.62% 3,751.00 112.17 AAA 1.03
438141RAC0 Honda Auto Receivables 20164 A3 2,875,000.00 02I07I2018 2,843,442.38 98.69 2,837,328.88 0.69% NRIMA 2.72
1.210% Due 12/18/2020 2.5B% 2,844,985.47 2.60% 1,256.22 (7,656.59) AAA 0.95
65478VAD9 NAROT 2016-B A3 2,000,000.00 0211212018 1,983,984.38 99.00 1,980,014.00 0.48% Aai 2.80
1320% Due01/15/2021 1.87% 1,984,675.49 2.61% 293.33 (4,661.491 AM 0.77
83162CUO Small Business Administration 2001-20C 39.115.36 0310612001 39,115.36 103.59 40,519.37 0.01% Aaa/AA+ 2.92
6.340% Due 03/01/2021 6.34% 39,115+36 5.68% 206.66 1,404.01 AAA 1.50
654W7UAD2 NAROT 2015-A4 1,800,000.00 OV0912018 1,788,750.00 99.26 1,786,755.60 0.43% Aaa/NR 3.46
1.5004 Due09/i5Y2021 1.86% 1,789,153.63 2AM 1,200.00 (2,398.03) AAA 0.77
47788BAD6 John Deere Owner Trust 2017-B A3 675,000.00 07/11/2017 674,950.59 98.49 664,178.48 0.16% Aai 3.55
1.820% Due 10/15=1 1.83% 674,95878 2.75% 546.00 (10,180.30) AM 1.64
4A88CAC6 John Deere Owerner Trust 2016-6 A4 1,W,W0.00 02/21/2018 1,339,903+65 99.84 1,337,874.76 0.32% Aaa/NR 4.05
2.660% Due04/182022 2.69% 1,339,905.69 2.75% 3,W9.34 (2,030.93) AAA 2.09
78445JAA5 SLMA 2008-9 A 29,180.71 0812212008 29,062+32 102.06 29,781.10 0.01% Baa3/AAA 5.07
3.241% Due04/25/2023 3.32% 29.139.79 2.91% 173.40 641.31 B 3.37
23,885,101.47 23,587,845.75 5.72% AaeIAAA 2.52
Total ASS 23,728,881.83 1.97% 23,868,126.15 2.58% 20,109.03 (00,280.40) Aaa 0.83
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. MoodyfS&P Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value MMYW Accrued Int. Gam/Loss Fitch Duration
Agency
313385VE3 FHLB Discount Note 4,3W,00000 03/21/2018 4.346,713.33 99,98 4,348,972.92 1.05% P-1IA-1+ 0.02
1.700% Due 0410612018 1,72% 4,348,972.92 172% 0.00 0.00 F-1+ 0,02
313385VZ6 FHLB Discount Note 10,W0,000.00 03/28/2018 9.986,814.44 99.89 9988,]6666 2.42% P-1IA-1+ 0.07
1.685% Due04125/2018 171% 9,988,766.66 1J1% 0.00 0.00 F-1+ 0.07
3135GOG72 FNMA Note 5,01)(0,000.00 12/18/2015 4,963,950.00 99.34 4,987,190.00 1.21% Aaa/AA+ 0.91
1.125% Doe12lUnO18 1.37% 4.991492.33 2.07% 16,71875 (24.302.33) AAA 0.69
31337821,12 FHLB Note 7,51)(3,000.00 Various 7,589,190.00 99.41 7,455,472.50 1.81% Aaa/AA+ 0.94
1.500% Doa0310812019 1.14% ],524,3]5A6 2A4% 7,18T50 (68,902.96) AAA 0.92
313]FADMS FHLMC Note 7,50(),000.00 Various 7,399,650.00 98.50 7,387,545.00 1.80% Aaa/AA+ 1.51
1.250% Dne1010212019 1.61% 7,460,397.85 2.27% 48,614.58 (72,852.85) PM 1.47
313383HUB FHLB Note 5,0W,W0.00 M113/2015 5,008,950.00 98.% 4,928,125.00 1.20% Aaa/AA+ 2.20
1.750% Due06/12/2020 1.71% 5,004,074.18 2.43% 26.493.06 (75,949.18) NR 2.13
3135GOD75 FNMA Note 5,OW,000.00 1111612015 4,955,650+00 98.06 4,90,125.00 1.19% Aaa/AA+ 2.23
1.500% Due06/222020 1.70% 4,978,524A9 2.40% 20,625.00 (75,399.99) AAA 2.16
3137EAEKI FHLMC Note 5,000,000.00 Various 4,986,225,00 98.53 4,926,410.00 1.20% Aaa/AA+ 2.64
1.875% Duell/17/2020 1.97% 4,987,698.15 2.46% 36.416.67 (61.288.15) AAA 2.53
3135GOF73 FNMA Note 7,500,000.00 Various 7,370,726.00 97.63 7,321,875.00 1.78% Aaa/AA+ 2.67
1.500% Due 11/30/2020 1,87% 7.430,456+98 2.42% 37,812.50 (108.581,98) AAA 2.58
313]FAEL9 FHLMC Note 7,500,000.00 0212612018 7,484,475.00 99.72 ],4]8,T/5.00 1.82% Aaa/AA+ 2.88
2.375% Due O2116Y 021 2.45% 7,484,947.19 2.48% 22,265.63 (6.172.19) PM 2.75
3130A7CV5 FHLB Note 5,365,000.00 02/17/2016 5,343,325.40 97.09 5,2W,O82.37 1.26% Aaa/AA+ 2.89
1.375% Due02118/2021 1.46% 5,352,495.88 2.43% 8,811.27 (143,413.51) AAA 2.80
3135GOJ20 FNMA Note 10,W0,000.00 Various 10,040,950+00 96.97 9,6%,880.00 2.35% Aaa/AA+ 2.91
1.375% Due0MM021 1.2B% 10,025,951A2 2.46% 13,368.06 (329,071.12) AAA 2.82
313379RB7 FHLB Note 4,000,000.00 0813012017 4,030,160.00 98.03 3,921.252.00 0.96% Ass/AA. 3.20
1.875% Due06/11/2021 1.67% 4,025,504.87 2.52% 22.916.67 (104.252.87) AAA 3.06
3135GOS38 FNMA Note 3,000,000.00 0113012017 2,994,570.00 97.97 2,939,084.00 0.72% Aaa/AA+ 3.77
2.000% Due 01/05/2022 2.W% 2,995,852+08 2.57% 14,333.33 (58788.08) AAA 3.58
3135GOT45 FNMA Note 5,OW,000.00 0510512017 4,972,500.00 97.38 4,868,750.00 1.19% Aaa/AA+ 4.02
1.875% Due04/05c!022 1.99% 4,977,530A7 2.57% 45,833.33 (108780.67) AAA 3.80
3135GOT94 FNMA Note 3,OW,00000 03/28/2018 2,956,410.00 98.75 2,%2,WO.00 072% Aaa/AA+ 4.81
2.375% DUe01119=3 2.70% 2,956,484.43 2.65% 13,458.33 6,015.57 PHA 4.48
94,430,339.17 93,303,785.45 22.68% Aaa IAA+ 2.13
Total Agency 94,715,000.00 172% 94,W3,525.76 2.29% 331,854.68 (1,229,740.31) Are 2.05
31398VJN FHLMC FHMS K006 A2 900,00000 1112312010 951,046.88 102.43 921,912.30 0.22% Act 1AA+ 1.82
4.251% Due01/2512020 3.54% 910,136A0 260% 3,188.25 11,776.20 AAA 1.59
3837114NX9 GNMA Pool#2000-9 17,157.35 01/24/2000 17,157.35 100.45 17,235.07 0.00% Aaa/AA+ 11.89
2.322% Due021162030 2.34% 17,157.36 1.92% 31.57 77.72 AAA 0.03
A=
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cast Value Mkt Pric. Market Value %of Pon. MoodyIS&P Maturity
CUSIP Security D..cvipti.n Par Value/Units Book Yield Book Value Mkt YTM Accru,d i GainlLoss Fitch Duration
3133TCE95 FHLMC FSPC E3A 21,462.60 03/11/1998 21,485.06 100.00 21,462.60 0.01% Aaa I AA- 14.39
3.445% Due00/15Y2032 3,41% 21,472+01 3.36% 61.62 (9,41) AAA 6.62
31397GREO FNMA FNR 2011-3 FA 247,845.15 12/20/2010 247,767.70 101.93 252.621.13 0.06% Aaa/AA+ 22.92
2.555% Due 02Y5Y2041 2.56% 247,7 1] 2.13% 105.54 4,834.96 AAA 0.13
31394JY35 FHLMC FSPC T-582A 860,W7.71 06/09/2011 974,524.97 112.99 972,304.87 0.24% Aaa/AA+ 25.50
6.500% Due 09Y25Y2043 5.40% 950,514.72 3.27% 932.22 21,790.15 AAA 4.01
2,211,981.96 2,185,535.97 0.0% Asa/AA+ 14.99
Total CMO 2,046,972.81 4.24% 2.147,066.35 2.84% 4,319.20 38,469.62 Aaa 2.53
mereial Pa _
i
89233HE75 Toyota Motor Credit Discount CP 8,000,000.00 03I22I.92% 7,984,880.00 992% ],98g880.00 1 0.0 P-1 /A-1+ 0.10
1.890% Due 05/0]/2018 1.92% ],984,880.00 1.92% 0.00 0.00 NR 0.10
6931 Paccar Financial Discount CP 5,000,00000 02/26/2018 4,9]],645,83 99.73 4,986,381.94 1.21% P-1/A-1 0,15
1.860% Due0524/2018 1.89% 4,986,381.94 1.88% 0.00 0.00 NR 0.15
06538CFDB Bank of Tokyo Mitsubishi NY Discount CP 8,240,000.00 03/13/2018 8,195,778+67 99.57 8,204,911.34 1.99% P-1/A-1 0.20
2.100% Due06/13/2018 2.14% 8.201 2.14% 0.00 0.00 NR 0.20
21,154,104.50 21,176,173.28 5.13% P-1 IA-1 0.15
Total Commercial Paper 21,240,000.00 2.00% 21,176.173.20 2.00% 0.00 0.00 NR 0.15
Foreign Corporate
40428OBF5 HSBC Holdings PLC Note 4,500,000.00 Various 4,429,980+00 97.23 4,375,296.00 10% A2/A 377
2.650% Due 01/05/2022 3.08% 4.431,]46.35 3.44% 28.487.50 (56.450.35) AA- 3.52
4,429,980.00 4,375,298.00 1.07% MIA 3.77
Total Foreign Corporate 4,500,000.00 3.08% 4,431,746.35 3.44% 28,487.50 (56,450.35) AA- 3.52
Money Market Fund FI ill
31846V567 First Amencan Govt Obligation Ml Class-Z 10,964]31.]2 Various 10,964 731 72 1.00 10,964731 72 2.66% Aaa I AAA 0.00
149% 10,964.73172 1.49% 0,00 0.00 AAA 0,00
10,964,731,72 10,964,731.72 2.66% Aaa I AAA 0.00
Total Money Market Fund FI 10,964,731,72 1A9% 10,964,731.72 1.49% 0.00 0.00 Aaa 0.00
dilleellel a Pass Thru
31381PDA3 FNMA FN 466397 349,929,50 12/01/2010 342,356.82 101,54 355,318,06 0.09% Aaa I AA+ 2.59
3400% Due 11/01/2020 3.80% 347,951.56 2,75% 231.34 7,366.50 AAA 2.43
36225CA29 GNMA Pool#G280023 20.803.15 08/08/1997 21,14711 102.96 21,419.94 0.01% Aaa/AA+ 8.73
3.230% Due 12I20/2026 3.12% 20,90563 2.96% 56.00 514.31 AAA 4.00
36225CC20 GNMA Pool#G280088 22,266.20 08/11/1997 22,753.29 103.58 23,062.68 0.01% Aaa/AA+ 9.23
2.720% Due 06/20/2027 2.58% 22,416+79 2.73% 50.47 645.89 AAA 2.79
31348SWM FHLMC PH 78601 2,159.28 02118/2000 2,106.71 102.23 2,207.45 0.00% Aaa/AA+ 9.76
3.447% Due 01/01Q028 3.65% 2,140.87 3.46% 6.20 66.58 AAA 4.54
313]1NUC] FNMA FN 257179 20,414.51 12/05/2011 21,5901 104.98 21.430.50 0.01% Asia/AA+ 10.01
4.500% Due U101Q028 3.72% 21,135.80 2.81% 76.55 294.70 AAA 3.26
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cast Value Mkt Mica Market Value %of Port, MoodyIS&P Maturity
CUSIP S..unty D..cvipti.n Par Value/Units Book Yield Book Value Mkt YTM Accrued fint. Gainli-ose Fitch Duratiou
31417YAY3 FNMA Pool#FN MAD022 22,859.87 12/05/2011 24,17654 104.99 24,001.56 0.01% Aso I AA- 11.01
4.500% Due 04/01/2029 3,76% 23,696+96 2.90% 85.72 304.60 AAA 3.42
3138EG6F6 FNMA FN AL0869 13.828.06 12105I2011 14,624.54 105.00 14.519.16 0.00% Aaa/AA+ 11.18
4.500% Due 06/012029 3.77% 14,337.20 2.92% 12.10 181.96 AAA 3.47
03215PFN4 AMRESCO Residential Securities 1999-1 A 133,743.29 05/20/2011 100,432.85 99.87 133,570.76 0.03% NR I A+ 11.24
2.815% Due 06252029 6.54% 113,057.24 3.02% 73.21 20,513.52 BBB 6.59
36225CNW GNMA Pool#G280395 8,5(14.67 03/15/2000 8487.03 103.55 8,868.61 0.00% Aaa/AA+ 12.06
2.720% Due 04202030 2.79% 8,533.38 2.88% 19.41 335.23 AAA 4.32
36225CN28 GNMA Pool#G280408 67,248.77 03/15/2000 66,56518 103.57 69,848.14 0.02% Aaa/AA+ 12.15
2.720% Due 05/20/2030 2.80% 66,972,41 2.74% 152.43 2.675.73 AAA 3.74
31403GXF4 FNMA Pool#FN 748678 2,826.32 06/10/2013 3,038.29 107.15 3,028.35 0.00% Me/AA+ 15.52
5.000% Due 10/01/2033 4,16% 2,988+88 2.99% 11.78 39.47 AAA 4.02
36225DCBB GNMA Pool#G2 SN65 65,241.80 07/19/2004 65,700.72 103.83 68,258.59 0.02% Aaa/AA+ 16.32
2.810% Due OMM034 2.82% 65.719.41 2.69% 153.95 2,539.18 AAA 4.02
31406XWT5 FNMA Pool#FN 823358 130,299.20 01/11/2006 129,28L25 104.56 136,242.28 0.03% Aaa/AA+ 16.85
3.502% Due 021012035 3.57% 129,708.60 3.86% 380.29 6,533.68 AAA 7.40
31406POY8 FNMA Pool#FN 815971 217,603.38 06/10/2013 233,923+65 107.99 234,991.20 0.06% Aaa/AA+ 16.93
5.000% Due 03/012035 4.21% 230,367.86 3.16% 906.68 4,623.34 AAA 4.20
314078XH7 FNMA Pool#FN 826080 23,990.86 0611012013 25,790.16 108.03 25,916.17 0.01% Aso/AA+ 12.26
5.000% Due 071012035 4.22% 25,404.10 3.16% 99.96 512.07 AAA 4.22
31376M2 FNMA FN 357969 129.003.34 0611012013 138,678.57 107.98 139,302.19 0.03% Aaa/AA+ 17.43
5.000% Due 09101/2035 4.U% 136,618+56 3.17% 125.42 2,683.63 AAA 4.0
31403DJZ3 FNMA Pool#745580 124,703.39 OW1012013 134,056.16 107.96 134,630.40 0.03% Aaa/AA+ 18.18
5.000% Due 061012036 4.26% 132,130.10 3.18% 519.60 2,500.30 AAA 4.26
31410F4V4 FNMA Pool#FN BN336 241,739.66 06/10/2013 259,870A6 107.96 260,974.88 0.06% Ass/AA+ 18.27
5.000% Due 07/012036 4.25% 256,149A0 3.17% 1,007.25 4,825.08 AAA 4.24
1,614,580.56 1,677,390.92 0.41% Ass/AA+ 13.10
Total Mangan.Pass Thou 1,597,725.25 4.09% 1,620,235.15 3.07% 3,968.36 57,155.22 Aaa 4.21
niclpal Bonds
73358WAG9 Port Authority of NY B NJ TE-REV 2,440,000.00 Various 2,507,633,89 104.47 2,&19,116.80 063% Aa3/AA- 1.67
5.309% Due 121012019 4.97% 2.450,829.37 2.55% 43,1]9.8] 98,28743 AA- 1.57
64971105E8 New Yet NY TE-REV 1,400,000.00 10/27/2010 1,400,000.00 103.61 1,450,526.00 0.36% Aa1/AAA 2.59
4.075% Due 11N12020 4.08% 1,400,000.00 2.62% 23,T10.83 50,526.00 AAA 2.41
913366EJ5 Jam of California Rgta Mad TE-REV 400,000.00 1110912010 400,000.00 107.01 428,040.00 0.11% Aa3/AA- 3.13
5.035% Due05/152021 5.04% 400.000.00 2.68% 7.608.44 28.040.00 M. 2.85
4,307,633.89 4,427,682.80 1.09% Aa2I AA 2.11
Toni Municipal Bonds 4,240,000.00 4.68% 4,250,829.37 2.0% 74,559.14 176,853.43 AA 1.97
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. Maori Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value Accrued Ind. GainfLoss Fitch Duration
Negotiable CD
06411GXH6 Bank of Nova Scotia Yankee CD 5,825,000,00 08/082017 5,825,000.00 100,00 5,825,000,00 1.43% P-1/A-1 0.36
1.570% Due 08/09/2018 1.57% 5,825,000.00 1.57% 59,698.16 0.00 NR 0,36
5,825,000.00 5,825,000.00 1.43% Aaa IAA 0.36
Total Negotiable CD 5,825,000.00 1.57% 5,825,000.00 1.57% 59,698.16 0.00 NR 0.36
upranational
4581XOCX4 Inter AmericanDev Bank Note 3,035,00000 04/05/2017 3,027,807,05 98,53 2,990,531,18 O,73% Aim I AAA 2.12
1.625% Due05/12/2020 1.70% 3,030,068.42 234% 19,042.52 (39,537.24) AAA 2.05
45950KOMO International Finance Corp Note 2,970,000.00 0111812018 2,961,268.20 99.18 2,945,764.80 0.72% A./AAA 2.82
2.250% Due 0112512021 2.35% 2,961,194.02 2S5% 12,251.25 (16,029.22) NR 2.70
4581XOCS5 Inter-American Dev Bank Note 5,000,000.00 Various 5,059,610.00 98.11 4,905,570.00 1.19% Aim/AAA 2.96
1875% Due03115I2021 1.68% 5,026,908,22 2.54% 4.166.67 (121,338.227 AAA 2.85
45950KCJ7 International Finance Corp Note 2,500,000.00 11/09/2016 2,441,600.00 95.32 2,383,050.00 0.58% A./AAA 3.31
1.125% Due07/20/2021 1,64% 2,458,884.76 2.61% 5,546,88 (75,834,76) NR 3.20
4581XOCW6 Inter-American Dev Bank Note 3,000,000.00 01/10/2017 2,996,310.00 98.30 2,948,874.00 0.72% Asia INR 3.81
2.125% Due01118/2022 2.15% 2.997,195.12 2.60% 12,927.08 (48.321.12) AAA 3.60
459058FY4 Intl.Bank Recon&Development Note 10,000,000.00 Various 10,006,350.00 97.48 9,70,400.00 2.37% Aaa/NR 3.83
2.000% Due 0126Y2022 1.99% 10,003,666.90 2.70% W.111.12 (255,266.90) AAA 3.63
4581XOC2) Inter-American Dev Bank Note 6,500,00000 Various 6,249,655.00 96.16 6,20,413.00 1.52% NR/NR 4.46
1.750% Due09/14/2022 2.65% 6,255,947.08 2.67% 5,371.52 (5,534.08) AAA 4.24
32,742,600.25 32,172,602.98 7.02% Aaa I AAA 3.53
Total Supranatlonal 33,005,000.00 2.07% 32,734,464.52 2.61% 95,417.94 (561,861.54) Asa 3.36
US Corporate
O3902CDB Bear Stearns Note 3,200,000.00 01/15/2014 3,523,520,00 100,52 3,216,51200 039% AS NR 0,25
4.650% Due O/O2/2018 2.25% 3,218,338.78 2.57% 36,786.67 (1,826.78) A+ 0.25
532457BF4 Eli Lilly&Cc Note 4,9W,000.00 Various 4,009,675.00 91 3,981,672.00 0.97% A2/AA- 0.96
1.950% Due03115/2019 1.89% 4.002.163.53 2.44% 3.466.67 (20.491.53) A 0.94
02665WAH4 American Honda Flnanoe Note 4,000,000.00 Various 4,046,640.00 99.46 3,978,452.00 0.97% A2/A+ 1.38
2250% Du,0811512019 1.93% 4,016,801+10 2.65% 11,500,00 (38,349.10) NR 1.34
06406HCW7 Bank of New York Callable Note Cent SN 112019 2,120,000.00 0211012016 2,142,175.20 99.23 2,103,650.56 0.51% At IA 1.45
2.300% Due09/11Y2o19 1.99% 2.128,61 2.88% 2,708.89 (25.013.81) AA- 1.33
24422ESS9 John Deere Capital Corp Note 5,000,000.00 Various 5,046,984.00 99.43 4,971,405.00 1.21% A2/A 1.46
2.300% Due 09/16Y2019 2.07% 5,015,649.47 2.70% 4,791.67 (44,244.47) A 1.42
36962G7MO General Electric Capital Corp Callable Note lX 5,OO ,WO.00 Various 5,014,950DO 98.47 4,923,535.00 1.20% A2IA 1.78
125/2019 2.13% 5,005,336+17 3.09% 25,055.55 (81,801.17) A+ 1.71
2.200% Due 01109n020
46625HKA7 JP Morgan Chase Callable Note Cont 12/23/2019 2,000,000.00 02/06/2015 1,994,880.00 98.78 1,975,698.00 OA8% A3/A- 1.82
2.260% Due 01Y23Y2020 2.30% 1,998,124.27 2.94% 8.WO.00 (22,426.27) A+ 1.75
40428HPR7 HSBC USA Inc Note 2,500,000.00 Various 2,472,287.50 98.69 2,467,260.00 0.60% A2IA 1.93
2.350% Due 03/0512020 2.64% 2AK657.60 3.05% 4.243.06 (19.397.60) AA- 1.86
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase Date Cast Value Mkt P,ic. Market Value %of Port. MoodyfS&P Maturity
CUSIP S..unty D..evipti.n Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Curl Fitch Duration
747525AD5 Oualwmm Inc Note 5,000,000.00 05/19/2015 4,995,195.40 98.34 4,916,930.00 1 20% At I A 2.14
2.250% On.05Y20Y2020 2,27% 4,997,946.53 3.06% 40,937.51 (81,016,53) NR 2.05
94974BGM6 Wells Fargo Corp Note 5,000.000.00 O7/1612015 5,001,650.00 99.05 4,952.270.00 1.21% A2/A- 2.31
2.600% Due 07t2n020 2.59% 5.000,761.33 3.03% 24,916.67 (48.491.33) A+ 2.21
037833BS8 Apple Inc Callable Note Cant 1=021 4,000,000.00 05/23/2016 4,050,840.00 98.50 3,939,840.00 0.96% Aal/AA+ 2.90
2.260% Due 0=021 1.96% 4,030,689.09 2.79% 9,500.00 (9Q849.09) NR 2.77
30231GAV4 Gaon Mobil Corp Callable Note Cont 21112021 3,M,000.00 Various 3,016,097.40 98.51 2,955,318.00 0.72% Aaa/AA- 2.92
2.222% Due 03/01/2021 2.10% 3,009,858.38 236% 5,555.01 (54,540.38) NR 2.80
166764BG4 Chevron Corp Callable Note Cant 4/15/2021 2,500,000.00 0512012016 2.485,350+00 97.75 2,443,697.50 0.60% Aa2/AA- 3.13
2.100% DUe05/16n021 2.23% 2.490.800+41 2.86% 19,687.50 (47.102.91) NR 2.97
61747WAL3 Morgan Stanley Note 2,B00,000.00 0610612014 3,200,848.00 106.81 2,990,559.60 0.73% A3/BBB- 3.33
5.500% Due 07n8/2021 3,24% 2,986,877.68 3.32% 26,950.00 3,681.92 A 3.02
594918BP8 Microsoft Callable Note Cont 718121 3,1NIB.N0.00 Various 3,041,385.15 96.02 2,923,939.94 0.71% Aaa/AAA 3.36
1.550% Due08/OSn021 1.57% 3,042,574.92 2.80% 6,948.52 (118.634.98) AA+ 3.23
06406RA45 Bank of NV Mellon Corp Callable Note Cant 2,50Q000.00 0210812017 2,504,475.00 98.10 2,452,582.50 0.60% Al I A 3.86
1NI20
2.60022 Due 02I07n022 44 2.56% 2,503,4 .42 3.13% 9,750.00 (50,851.92) AA- 3.62
69353RFB9 PNC Bank Callable Note Cont 1/16/2022 1,000,000.00 03/26/2018 974,940.00 97.79 9]],908.00 0.24% A21A 3.89
2.625% Due02117n022 3.32% 975,010A9 3.23% 3,208.33 2,897.51 A+ 3.64
674599CK9 Occidental Petroleum Callable Note Cont 3/15I2022 3,350,000.00 04/25/2017 3,354,589.50 97.83 3,2T/,181.05 0.80% A31 A 4.04
2.600% Due04/15/2022 2.57% 3,353,718.99 3.18% 40,162]8 (76,537.94) A 3.75
084664BT7 Berkshire Hathaway Note 4,M,000.00 0512312017 4,131,120+00 100.05 4,001,832.00 0.98% Aa2/AA 4.13
3.000% Due05/15/2022 2.30% 4.108,T24.85 2.99% 45.333.33 (106.892.85) A+ 3.81
95000U2B8 WELLS FARGO&COMPANY Note 3,000,000.00 Various 2.954,520.00 96.73 2,901,882.00 0.71% A2I A- 4.31
2.625% Due 07n212022 2.99% 2,956,365.34 3.45% 15,093.76 (54,483.34) A+ 4.01
00440EAU1 Chubb INA Holdings Inc Callable Note Cont 4,169,000.00 Various 4,232,453.17 99.07 4,130,103.23 1.01% A31A 4.60
9/3/2022 2.54% 4,227,375.16 3.10% 49,275.26 (97.271.93) A 4.07
2.875% Duell/03n022
90331HNL3 US Bank NA Callable Note Cant 12/23/22 5,00(1,000.00 0112912018 4.981,600.00 98.73 4,936,360.00 1.20% At IAA- 4.82
2.850% Due 01nM023 2,93% 4,982,207.26 3.14% 26,916.67 (45,847,26) AA- 4.43
064061RAE7 Bank of NV Mellon Corp Callable Note Cant 1,50Q000.00 02/26/2018 1,486,065.00 98.74 1,481,152.50 0.36% At/A 4.84
2+950% 22 Due 01n9n023 PA 3.16% 1,486,313.29 3.23% 7,620.83 (5,160.79) M. 4.44
lM9/2
44932HAH6 IBM Credit Corp Note 4,665,000.00 0310912018 4,619,258.85 98.95 4,615,858.89 1.12% At/A+ 4.86
3.000% Due 0V06n023 3.22% 4,619,7"A0 3.24% 21,381.25 (3,885.21) A+ 445
83,281,499.17 81,515,599.77 19.86% Ai/A+ 2.88
Total US Corporate 82,349,000.00 2.41% 82,644,147.53 2.97% 40,289.93 (1,128,547.76) A+ 2.70
S Treasury
912828833 US Treasury Note 11,000,000.00 Various 11,042,439A9 99.49 10,944,142.00 2.66% Aaa/AA+ 0.84
1500% Due01/3112019 1.37% 11,011,427.26 2.11% 27,348.07 (67,285,26) AAA 0.82
912828SN1 US Treasury Note 5,000.000.00 1212812016 5,016,423.00 99.38 4,958,945.00 1.20% Ass/AA+ 1.00
1.500% Due03/31n019 1.35% 5,00],2]2A7 2.13% 204.92 (38.327.47) AAA 0.99
912828WS5 US Treasury Note 2,M,000.00 Various 1,996,861.44 99.32 1,986,328.00 OAS% Aaa/AA+ 1.25
1.625% Due06/30n019 1.66% 1,999,207.33 2.18% 8,169.89 (12,879.33) AAA 1.23
Cj'k� Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 3/31/2018
Purchase D:te Cost Value Mkt Price Market Value %of Port, MoodyfS&P Maturity
CUSIP Security Description Par Value/Units Book Yi Id Book Veto. Mkt YTM Accrued Int. Gainli-oss Fitch Duratiou
912828WW6 US Treasury Note 5,000,000.00 Various 5,012,388,70 99.25 4,962,499.99 1.21% Ann/AA- 1.33
1.625% Due 07/31/2019 1,57% 5.003,323,98 2.20% 13,466.85 (40,823,99) AAA 1.31
91282BF39 US Treasury Note 5,000,000.00 10127/2014 5,873,186.87 99.29 5,758,541.60 1.40% Aaa/AA+ 1.50
1750% Due 09/3=019 1.48% 5,822,265A2 2.24% 271.33 (63723.82) AAA 1.47
912828G61 US Treasury Note 7,500,000.00 12/19/2014 7,449,634.50 98.17 7,407,712.50 1.80% Aaa/AA+ 1.67
1.500% Due 11/3=019 1.64% 7,483,025.37 2.26% 37,706.04 (75,312.87) AAA 1.63
912828XE5 US Treasury Note 5,M,000.00 1212112016 4,966,423+00 98.26 4,912,890.00 1.20% Aaa/AA- 2.17
1.500% Duel)&312020 1.70% 4,978,853.98 2.33% 25,137.36 (65,963.98) AAA 2.11
9128281-99 US Treasury Note 10,000,000.00 Various 9,850,311.40 97.52 9752,340.00 2.38% Aaa/AA+ 2.59
1.375% Due 10/31/2020 1.81% 9.892,661+02 2.37% 57.734.80 (140.321.02) AAA 2.50
912828N89 US Treasury Note 6,000,000.00 Various 5,895,840.41 97.22 5,833,362.00 1.42% Me/AA+ 2.84
1.375% Do.01/31/2021 1,81% 5,928710+00 2.39% 13,674.03 (95,348,00) AAA 2.75
912828TM US Treasury Note 7,000,000.00 Various 6,757,914.08 95.53 6,686,911.00 1.62% Aaa/AA+ 3.50
1.125% Due09/3=021 1.88% 6,823.669.88 2A7% 215.16 (136758.88) AAA 3.40
912828T67 US Treasury Note SM,000.00 12/13/2016 5,813,691.98 95.84 5,750,388.00 lA0% Aso/AA+ 3.59
1.250% Due 10/31=1 1.92% 5,863,144.11 2.47% 31,49171 (112,756.11) AAA 3.45
912828U65 US Treasury Note 7,M,000.00 12/28/2016 6,900,492+20 97.45 6,821,717.00 1.66% Aaa/AA+ 3.67
1.750% Due11/30/2021 2.06% 6,925,853.68 248% 41,057.69 (104,136.68) AAA 3.50
912828V22 US Treasury Note 3,000,000.00 0212712017 3.004,814.74 97.73 2,932,032.00 0.71% Aaa/AA+ 3A4
1.875% Due 01/31/2022 1.84% 3,003,75L64 2.50% 9.323.20 (71.719.641 AAA 3.66
912828076 US Treasury Note 5,000,000.00 0412512017 4,976,383.94 97.17 4,858,595.00 1.18% Aaa/AA, 4.00
1.750% Due 03/31/2022 1.85% 4.980,8"75 2.50% 239.07 (122,249.75) AAA 3.83
912828M5 US Treasury Note 5,000,000.00 07/2512017 4,973,454.25 96.92 4,845,W0.00 1.18% Aaa/AA+ 4.25
1.750% Due 06130Y2022 1.86% 4,971,126Al 2.52% 21,995.86 (131,226.41) AAA 4.W
912828124 US Treasury Note 6,000,000.00 09/27/2017 5,987,832.60 97.26 5,835.702.00 1A2% Aso/AA+ 4.42
1.875% Due 0W31Y2022 1.92% 5,989,084.53 2.53% 9,782.61 (153,382.53) AAA 4.20
91282BL57 US Treasury Note 13,000,000.00 Various 12,763,554.69 96.66 12,565,826.00 3.04% Aaa/AA+ 4.50
1.750% Due09/3=022 2.15% 12,T/7,557.44 2.54% 621.58 (211,731.44) AAA 4.29
912828MM US Treasury Note 8.000.00000 12/22/2017 7,907,500+00 97.61 7,809,064.00 1.90% Aaa/AA+ 4.67
2000% Due 11/30/2022 2.25% 7.912433.33 2.55% 53,626.37 (103.369.33) AAA 4.39
9128281,130 US Treasury Note 5,000,0000o 0112412018 4,926.562.50 98.07 4,903710.00 1.19% Aaa/AA+ 4.78
2.125% Due 12131/2022 2.44% 4.929,253.71 2.56% 26,709.25 (25,543.71) AAA 4.46
912828WUO US Treasury Inflation Index Note 10,854,584.00 Various 10,740,937.66 97.70 10,604,863.42 2.57% Aaa/AA+ 6.30
0.125% Due07/15P2024 0.23% 10782,809.01 0.50% 2,848.57 (M,945.59) AAA 6.25
131,856,647.15 130,141,469.51 31.62% Aaa/AA+ 3.27
Total US Treasury 133,154,584.00 1.70% 132,092,275.32 2.23% 381,630.36 (1,950,805.81) Aaa 3.15
416,484,199.84 411,30,114.15 100.00% Aa1/AA+ 2.72
TOTAL PORTFOLIO 417,366,895.61 1.97% 416,088,321.50 2.42% 1,45g333.40 (4,735,207.35) Aaa 2.41
TOTAL MARKET VALUE PLUS ACCRUALS 412,803,447.55
Cj'k� Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. Mooi Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value MktY`pM Accrued Int. Gaml Fitch Duration
Agency
3131EAEA3 FHLMC Note 800,000.00 11/30/2017 798,240.00 99,98 799,844,80 0.86% Aaa/AA- 0.02
0.750% Due 04/09/2018 1,37% 799,890.85 1.62% 2,866.67 (46.051 AAA 0,02
313385VZ6 FHLB Discount Note 2,50Q000.00 03128/2018 2496723.61 99.89 ?49],191.6] 2.69% P-1IA-1+ 0.07
1.685% Dull 171% 2,497,191,67 1J1% 0.00 0.00 F-1+ 0.07
313385YB6 FHLB Discount Note 10.000.000.00 02/26/2018 9,949,900,00 99.66 9,965,672.22 1013% P-1IA-1+ 0.21
1.670% Due06/14/2018 170% 9.965,672.22 1+70% 000 000 F-1+ 0.20
13,244,863.61 13,262,708.69 14.28% Aaa/AAA 0.17
Total Agency 13,300,000.00 1.68% 13,262,754.74 1.70% 2,866.67 (48.05) Aaa 0.17
Pommercial Paper
69372BEO9 Paccar Financial Discount CP 1,500,000.00 0212612018 1.493,293.75 99.73 1,495,914.58 1.61% P-1/A-1 0.15
1.850% Du,0512412018 1.88% 1.495.914.58 1.88% 0.00 0.00 NR 0.15
06538CFDB Bank of Tokyo Mitsubishi NY Discount CP 1,855,000.00 03/13/2018 1,845,044.83 99.57 1,847,100]9 1.99% P-1/A-1 0.20
2.100% Due 01 2.14% 1,847,100.79 2.14% 0.00 0.00 NR 0.20
89233HFE9 Toyota Motor Credit Discount CP 1,800,000.00 01 1,788,516.50 99.60 1,792,859.00 1.93% P-1/A-1+ 0.21
1S30% Due06/14Y2018 1.97% 1.792,859.00 lSi 0.00 0.00 NR 0.20
OM06XG65 Bank of New York Mellon Discount CP 1,m,000.00 03/29/2018 993,840.00 99.40 994,026.67 lDi P-1/A-1+ 0.27
2.240% Dull 2.29% 994,026.67 2.29% 0.00 0.00 F-1+ 0.26
21681 Rabobank Nederland NV NY Discount CP 1,5W,000.00 0312012018 1,482,252+50 98.88 1,481 1.60% P-1/A-1 0.48
2.290% Dull 2.35% 1,481 2.35% 0.00 0.00 NR 0.48
7,602,947.58 7,613,107.71 8.20% P-1 IA-1 0.26
Total Commercial Pacer 7,655,000.00 2.11% 7,613,107.71 2.11% 0.00 0.00 F-1+ 0.25
oney Market Fund FI mu
31846V567 First American Goi Obligation MMKT Class-Z 19,095,907,39 Various 19,095,907,39 1,00 19,095,907,39 20.56% Aaa I AAA 0,00
1.49% 19,095,907,39 1.49% 0.00 0.00 AAA 0.00
19.095,907.39 19,095,907.39 20.m% Aaa/AAA 0.00
Total Money Market Fund FI 19,095,907.39 1.49% 19,095,907.39 1.0% 0.00 0.00 Aaa 0.00
Negotiable Cr IL
78012UAX3 ROYAL BANK OF CANADA Yankee CD 1,M,000.00 02/27/2018 1,000,000+00 100.00 1,000,000.00 1.08% P-1/A-1+ 0.66
2.320% Dull 2.32% 1,000,000.00 2.32% 2,062.22 0.00 F-1+ 0.65
1,000,000.00 1,000,000.00 1.08% Asa/AAA 0.66
Total Negotiable CD 1,000,001 2.32% 1,000,000.00 2.32% 2,062.22 0.00 Aaa 0.65
Supranational
459501 International Finance Corp Note 2,500,000,00 Various 2,490,715.00 9978 2,494,450,00 2.69% Aaa IAAA 021
0.875% Due 06/15/2018 1.61% 2,496,236.76 1.95% 6,440.97 (1,78676) NR 0.20
2,490,715.00 2,494,450.00 2.69% Aaa I AAA 0.21
Total Supranational 2,500,000.00 1.61% 2,496,236.76 1.95% 6,440.97 (1,786.76) NR 0.20
Cj'k� Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. MoodyfS&P Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value MMYTIM Accrued Int. Gainfl-obus Fitch Duration
US Corporate
084664BEO Berkshire Hathaway Note 1,M,00000 1210412017 1,016,250.00 100,32 1,003,152,00 1.10% Aa21 AA 0.12
5.400% Due05/15/2018 1.71% 1,004,440,99 2,76% 20,400.00 (1,288.991 A+ 0,12
46625HJL5 JP Morgan Chase Note 1,25),000.00 0211612018 1 249,525.00 99.90 1 248710.00 1.35% A31 A- 0.12
1625% Bull 1,78% 1,249,748.19 2.46% 7,673.61 (1,038.19) A+ 0.12
857477AK9 State Street Bank Note 2,100,000.00 Various 2,096,898.00 99.85 2,096,952.90 2.27% At I A 0.12
1.350% Due05115I2018 2.12% 2.098,00724 2.53% 10,71000 (1,054.34) AA- 0.12
58933YAGO Merck 8 Cc Note 1,000,000.00 1210112017 998880.00 99.88 998,830.00 1.08% AllAA 0.13
1.300% Due05/18I2018 1.55% 999,679.02 2.19% 4,80218 (849.02) A 0.13
717081DWO Pfizer Inc. Note 1,000,000.00 01/04/2018 997,970.00 99.86 998,625.00 1.08% All AA 0.17
1.200% Due06/012018 1.71% 999,140.07 2.02% 4,000.00 (515.07) A+ 0.17
OW50TMC3 Bank of America Note 1,000,000.00 02/20/2018 999,110.00 99.87 998,671.00 1.08% Aa3/A+ 0.18
1.750% Dull 2.05% W9,449.05 2.49% 5,638.89 (778.05) A+ 0.18
17215RAU6 Cisco Systems Note 1,0W,000.00 1210112017 1,000,150+00 99.92 999,229.00 1.08% A11AA- 0.21
1.650% Due06/15/2018 1.62% 1,000,058.59 2.02% 4,058.33 (829.59) NR 0.20
24422ESXB John Deere Capital Corp Note 1,50, 000.00 0212212018 1,497,600.00 99.79 1,496,88].50 1.62% A2I A 0.28
1.600% Due0Tl1312018 2.02% 1498,195.62 2.33% 5,200.00 (1,308.12) A 0.28
808513AJ4 Charles Schwab Corp Callable Note Cant 612512018930,000.00 11/29/2017 931,841.40 99.97 929,710]] 1.01% A2IA 0.32
2.200% Due07125/2018 1.89% 930,897+29 2.30% 3751.00 (1,186,52) A 0.23
40428HPJ5 HSBC USA Inc Note 619,000.00 0211312018 620,281.33 99.98 618,899.72 0.67% A2/A 0.48
2.625% Due09Y24Y2018 2.28% 620,020,43 2.66% 315.95 (1,120.71) AA- 0.47
11,408,505.73 11,389,667.89 12.34% At IA+ 0.20
Total US Corporate 11,399,000.00 1.89% 11,399,63649 2.38% 67,350.56 (9,968.60) A+ 0.19
,US Treasury Ni
912828VE7 US Treasury Note 8,000,000.00 Various 7,98375000 99.88 7,990744.00 8.63% Aaa/AA« 0.17
1000% Due05/31/2018 146% 7,993,948,31 169% 26,813A9 (3,20431) AAA 0.17
912796PV US Treasury Bill 15,000,000.00 Various 14,917,779S6 99.70 14,954,818.89 16A0% P-1IA-1+ 0.21
1.465% Due06/14W8 1.49% 14,954,818.89 1.49% 0.00 0.00 F-1+ 0.20
912828S68 US Treasury Note 15,W0,000.00 Various 14,932,226+57 99.64 14,946,615.00 16.11% Aaa/AA+ 0.33
0.750% Bull 1.61% 14,957,45814 1.81% 18,646.41 (10,783.74) AAA 0.33
37,033,756.43 37,892,237.89 40.85% Asia/AAA 0.25
Total US Treasury 3$000,000.00 1.53% 37,906,225.94 1.68% 45,459.60 (13,988.05) Asia 0.25
92,676,695.74 92,748,079.57 100.00% An1AAA 0.18
TOTAL PORTFOLIO 92,949,907.39 1.65% 92.773,869.03 1.77% 124,10002 (25,I89.48) Asia 0.18
TOTAL MARKET VALUE PLUS ACCRUALS 92,872,259.59
Cj'k� Holdings Report
OCSD Lehman Exposure -Account #10284 For the Month Ending 3/31/2018
Purchase Date Cost Value Mkt Price Market Value %of Pon. MoodyIS&P Maturity
CUSIP Security Description ParValue/Units Book Yield Book Value MMYTM Accrued Ind. GainfLoss Fitch Duration
Common Stock
SLHOPNTA4 Lehman Brothers, Inc Open Position Long 60,64149 1l2l2i)14 57842.64 OA2 25,621.03 1972% NR/NR 000
Exposure 0.00% 57,84264 000% 000 (32.22161) NR 0.00
0.000% Due03/392018
57,842.64 25,621.03 19.72% NR/NR 0.00
Total Common Stock 60,641.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00
S Corporate
525ESCIB7 Lehman Brothers Note-Defaulted 600,000.00 09/1912008 331,90374 4.05 24,300.00 18.70% NR/NR 0.82
0.000% Due01Y24Y2019 0.00% 331,901 0.00% 0.00 (307.603.74) NR 0,00
525ESCOY6 Lehman Brothers Note-Defaulted 2,000,000.00 0911812008 1,0701 4.00 50,000.00 61.58% NR/NR 31,58
0.000% Due 10Y22I2049 0.00% 1,070,782.46 0.00% 0.00 (990,782.46) NR 0.00
1,402,686.20 104,300.00 80.28% NR/NR 24.42
Total US Corporate 2,600,000.00 0.00% 1,402,686.20 0.00% 0.00 (1,298,386.20) NR 0.00
1,460,528.84 129,921.03 100.00% NR/NR 19.60
TOTAL PORTFOLIO 2,660,641.49 0.00% 1,460,528.84 0.00% 0.00 (1,330,607.81) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 129,921.03
Coil
SECTION 5
Transactions
Cj'k� Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 December 31, 2017 through March 31, 2018
Transaction Send.an.nor AcqlDisp Interest
Ty" Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Gaml
ertnn�4
Purchase 01/17/2018 40,12801 3,000,000.00 HSBC Holdings PLC Note 99088 289% 2,972,640.00 2,650.00 2,975,290.00 0.00
2 65%Due:01/05/2022
Purchase 0111912018 313385SUl 1,300,000.00 FHLB Discount Note 99.930 1.34% 1,299,094.33 0.00 1,299,094.33 0.00
1.32%Due:02/0712018
Purchase 0111912018 313385SW7 7,400,000.00 FHLB Discount Note 99.924 1.33% 7,394,345.17 0.00 7,394,345.17 0.00
1.31%Due:0210912018
Purchase 01/1912018 313385TH9 1,100,000.00 FHLB Discount Note 99,881 1.36% 1,098,689.78 0.00 1,098,689.78 0.00
1.34%Due:02120/2018
Purchase 01/2412018 313385TJ5 7,500,000.00 FHLB Discount Note 99.897 1.M% 7,492,311.67 0.00 7,492,311.67 0.00
1.318%Due:0021/2018
Purchase 01/2412018 9501 1,500,000.00 WELLS FARGO&COMPANY Note 98.413 3.01% 1,476,195.00 218.75 1,476,413.75 0.00
2.625%Due:0712M022
Purchase 01/2512018 45950KCMO 2,970,000.00 International Finance Cory Note 99.706 2.35% 2,%1,268.20 0.00 2,961,268.20 0.00
2.25%Due:01125/2021
Purchase 01/25/2018 9128281430 5,000,000.00 US Treasury Note 98.531 2.44% 4,926,562.50 7,337.71 4,933,900.21 0.00
2.125%Due:1213112022
Purchase 0112512018 9501 1,500,000.00 WELLS FARGO&COMPANY Note 98.555 2.97% 1,478,325.00 328.13 1,478,653.13 0.00
2.625%Due:0712212022
Purchase 01130/2018 313385TDB 13,000,000.00 FHLB Discount Nate 99.939 1.32% 12,992,019.44 0.00 12,91 0.00
1.3%Due:02116/2018
Purchase 0113112018 89238BAB8 5,170,000.00 Toyota Auto Receivables Owner 2018-A A2A gg 990 2.12% 5,169,471.63 0.00 5,169,471.63 0.00
2.1%Due: 1011512020
Purchase 0113112018 901 5,000,000.00 US Bank NA Callable Note Cont 12/23/22 99.632 2.93% 4,981,600.00 3,166.67 4,984,766.67 0.00
2.85%Due:01/2312023
Purchase 0210912018 43814RAC0 2,875,000.00 Honda Auto Receivables 20164 A3 98.902 2.58% 2,843,442.38 2,029.27 2,845,471.65 0.00
1.21%Due: 1211812020
Purchase 02/1312018 65477UAD2 1,800,000.00 NAROT 2015-A4 99,375 1.86% 1,788.750.00 2,100.00 1,790,850.00 0.00
1.5%Due:091
Purchase 02/14/2018 65478VAD9 2,000,000.00 NAROT 2016-B A3 99,199 1.87% 1,983,984.38 2,126.67 1,986,111.05 0.00
1.32%Due:0111512021
Cj'k� Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 December 31, 2017 through March 31, 2018
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Annot.t Pur/Sold Total Amount Gain/Loss
Purchase 02/2612018 69372BEQ9 5,000,000.00 Paccar Financial Discount CP 99.553 1.88% 4,9T1,645.83 0.00 4,97],645.83 0.00
1.85%Due:05/2412018
Purchase 0212712018 313385UN4 5,000,000.00 FHLB Discount Note 99.914 1A2% 4,995,722.22 0.00 4,995,722.22 0.00
1.4%Due:03121/2018
Purchase 0212712018 313385UV6 1,500,000.00 FHLB Discount Note 99.882 lA9% 1,498.223.75 0.00 1,498,223.75 0.00
1.47%Due:0312812018
Purchase 02/2712018 3137EAEL9 7,500,000,00 FHLMC Note 99.793 2AS% 7,484,475.00 5,442.71 7,489,917.71 0.00
2.375%Due:021612021
Bank of NV Mellon Corp Callable Note Court
Purchase 02/28/2018 06406RAE7 1,500,000.00 1229/2022 99.071 3.16% 1,486,065.00 3,564.58 1,489,629.58 0.00
2.95%Due:0112912023
Purchase 0212812018 4581%OCZ9 6,000,000.00 Inter-Amancan Day,Bank Note 95.573 2.79% 4,778,650.00 39,861.11 4,818,511.11 0.00
1.75%Due:0911412022
Purchase 0212812018 4T188CAC6 1,340,000.00 John Deere Owener Trust 2016-B A4 99.993 2.68% 1,339,903.65 0.00 1,339,903.65 0.00
2.66%Due:0411812022
Purchase 0311312018 065380FD8 8,240,000.00 Bank of Tokyo Mitsubishi NV Discount CP 99.463 2.14% 8,195P8.67 0.00 8,195,778.67 0.00
2.1%Due:0811312018
Purchase 03/1312018 44932HAH6 1,680,000.00 IBM Credit Corp Note 99,031 3.22% 1,663,720.80 5,180.00 1,668,900.80 0.00
3%Due:02106=3
Purchase 03/13/2018 44932HAH6 2,985,000.00 IBM Credit Corp Note 99.013 3.22% 2,955,538.05 9,203.75 2,964,741.80 0.00
3%Due:0V06=3
Purchase 03/20/2018 404280BF5 1,500,000.00 HSBC Holdings PLC Note 97.156 3.46% 1,457,340.00 8,281.25 1,465,621.25 0.00
2.65%Due:01105/2022
Purchase 03/20/2018 47788CAB8 1,800,000.00 John Deere Onener Trust 2018-A A2 99.797 2.59% 1,796,343.75 2,420.00 1,798,763.75 0.00
2.42%Due: 10/15/2020
Purchase 03/21/2018 313385VE3 4,350,000.00 FHLB Discount Note 99924 172% 4,346,713.33 0.00 4,346,713.33 0.00
1.7%Due:04106/2018
Purchase 03/22/2018 89233HE75 8,000,000.00 Toyota Motor Credit Discount CP 99.759 1.92% 7,980,680.00 0.00 7,980,680.00 0.00
1.89%Due 05/07/2018
Purchase 0312812018 313385VZ6 10,000,000.00 FHLB Discount Note 99.869 1.71% 9,986,894.44 0.00 9,986,894.44 0.00
1.685%Due'0412512018
Purchase 0312812018 69353RFB9 1,000,000.00 PNC Bank Callable Nate Cant 1/18/2022 97.494 3.32% 974,940.00 2,989.58 977,929.58 0.00
2.625%Due:0211712022
Cj'k� Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 December 31, 2017 through March 31, 2018
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amot.t Pur/Sold Total Amount Gain/Loss
Purchase 03/2912018 3135GOT94 3,000,000.00 FNMA Nate 98.547 2.70% 2,956,410.00 13,062.50 2,969,472.50 0.00
2,375%Due:01/19/2023
Purchase 0312912018 4581XOCS5 1,500,000.00 Inter-American Day Bank Note 97.947 2.60% 1,469,205.00 1,093.75 1,470,298.75 0.00
1.875%Due:03/15/2021
Subtotal 132,010,000.00 131,202,948.97 111,056.43 131,314,005.40 0.00
Security 0312812018 912828WUD 26,416.00 US Treasury Inflation Index Note 100.000 26.416.00 6.57 26,422.57 0.00
Contribution 0.125%Due:07/15/2024
Security 0313112018 912828WUO 30,368.00 US Treasury Inflation Index Note 100.000 30,368.00 7.86 30,375.86 0.00
Contribution 0.125%Due:07/15/2024
Subtotal 56,784.00 56,784.00 14.43 56,798.43 0.00
TOTAL ACQUISITIONS 132,066,784.00 131259,73297 111,070.86 131,370.803.83 0.00
DISPOSITIONS
Maturity 01/11/2018 313385RR9 4,750,000,00 FHLB Discount Note 100,000 4,750,000.00 0.00 4,750,000.00 0.00
1.27%Due:01/11/2018
Maturity 01/1212018 3137EADN6 4,000,000.00 FHLMC Note 100.000 4,000,000.00 0.00 4,000,000.00 0.00
0.75%Due:0111212018
Maturity 01/1612018 40428HPH9 3,000,000.00 HSBC USA Inc Note 100.000 3,000,000.00 0.00 3,000,000.00 0.00
1.625%Due:01/1612018
Maturity 01/1812018 38141 GF04 600,000.00 Goldman Sachs Group Inc Note 100.000 600,000.00 0.00 600,000.00 0.00
5.95%Due:01118/2018
Maturity 01/19/2018 313385RZI 12,100,000.00 FHLB Discount Note 100.000 12,100,000.00 0.00 12,100,000.00 0.00
1.27%Due:01/19/2018
Maturity 0112312018 88059OSD7 8,000,000.00 TVA Dismount Note 100.000 8,000,000.00 0.00 8,000,000.00 0.00
1.27%Due:01/23/2018
Maturity 01124/2018 313385SE7 6,225,000.00 FHLB Discount Note 100.000 6,225,000.00 0.00 6,225,000.00 0.00
1.265%Due:0112412018
Maturity 0210712018 313385SU1 1,300,000.00 FHLB Discount Note 100.000 1,300.000.00 0.00 1,300,000.00 0.00
1.32%Due:02/07/2018
Maturity 0210912018 313385SW7 7,400,000.00 FHLB Discount Note 100.000 7,400.000.00 0.00 7,400,000.00 0.00
1.31%Due:0210912018
Cj'k� Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 December 31, 2017 through March 31, 2018
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Arrammt Pur/Sold Total Amount Gain/Loss
Maturity 02/1512018 674599CD5 2,000,000.00 Occidental Petroleum Callable Nate Conn 1/15/18 100.000 2p00,000.00 0.00 2,000,000.00 0.00
1.5%Due:02/15/2018
Maturity 0211612018 3133MTDB 13,000,000.00 FHLB Discount None 100.000 13p00,000.00 Dw 13,000,000.00 Dw
1.3%Due:02/16/2018
Maturity 02/20/2018 313385TH9 1,100,000.00 FHLB Discount Note 100.000 1,100,000.00 0.00 1,100,000.00 0.00
1.34%Due:02/2012018
Maturity 0212112018 313385TJ5 7,500,000,00 FHLB Discount Note 100.000 7,500,000.00 0.00 7,500,000.00 0.00
1.318%Due:02/21/2018
Maturity 02/2812018 912828UR9 3,500,000.00 US Treasury Note 100,000 3,500,000.00 0.00 3,500,000.00 0.00
0.75%Due:0212812018
Maturity 03I0712018 3137EADP1 5,000,000.00 FHLMC Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00
0.875%Due:03107/2018
Maturity 03/0912018 31337BA43 7,500,000.00 FHLB Note 100.000 7,W0,000.00 0.00 7,500,0W.W 0.00
1.375%Due:03/09/2018
Maturity 03/13/2018 06538CCD1 6,665,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99497 6,665,000.00 0.00 6,665,0W.W 0.00
1.45%Due:03113/2018
Maturity 03/19/2018 025816AY5 2,900,000.00 American Express Credit Note 100.000 2,900,000.00 0.00 2,900,0W.W 0.00
7%Due:03/19/2018
Maturity 0312112018 313385UN4 5,000,000.00 FHLB Discount Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00
1.4%Due:03/21/2018
Maturity 0312812018 313385UV6 1,500,000.00 FHLB Discount Note 100.000 1,500,000.00 0.00 1,500,000.00 0.00
1.47%Due:0 312 812 01 8
Subtotal 103,040,0W.W 103,040,000.00 0.00 103'"0'000.00 0.00
Security 02/27/2018 912828WUO 6,136.00 US Treasury Inflation Index Note 99768 6,136.00 0.00 6,136.00 41.38
Withdrawal 0.125%Due:07/15/2024
Subtotal 6,136.00 6,136.00 0.00 6,136.00 41.38
TOTAL DISPOSITIONS 107,021,156.55 107.021.156.55 111,796.04 107,132,952.59 41.38
Cj'k� Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 December 31, 2017 through March 31, 2018
Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount GamI
ertnrnsrtlnua
Purchase 01/08/2018 717081DW0 1,000,000.00 Pfizer Inc. Note 1 2%Due 06/01/2018 gg 7g7 1.71% 997,970.00 1,233.33 999,203.33 0.00
:
Purchase 01/17/2018 313385SL1 4,600,000.00 FHLB Discount Note 99.953 1.32% 4,597.840.56 0.00 4,597,840.56 0.00
1.3%Due:01/3012018
Purchase 0112312018 313385SL1 3,300,000.00 FHLB Discount Note 99.975 1.30% 3,299,178.67 0.00 3,299,178.67 0.00
1.28%Due:0113012018
Purchase 01/2412018 313385SK3 15,000,000.00 FHLB Discount Note 99,982 1.32% 14.997,291.67 0.00 14,997,291.67 0.00
1.3%Due:01/29/2018
Purchase 01/3012018 313385TDB 5,000,000.00 FHLB Discount Note 99.939 1.32% 4,996,930.56 0.00 4,996,930.56 0.00
1.3%Due:0211WM18
Purchase 01/30/2018 9127%PL7 10,000,000.00 US Treasury Bill 99.452 1.49% 9,945,231.25 0.00 9,945,231.25 0.00
1.46%Dua:06/14/2018
Purchase 01/30/2018 91282BS68 5,000,000.00 US Treasury Note 99.570 1.61% 4,978,515.63 18,648.10 4,997,163.73 0.00
0.75%Due:07/31/2018
Purchase 01/31/2018 313385TP1 7,500,000.00 FHLB Discount Note 99.905 1.33% 7,492,904.17 0.00 7,492,904.17 0.00
1,31%Due:02/26/2018
Purchase 01/31/2018 912796PL7 5,000,000.00 US Treasury Bill 99.451 1.50% 4,972,548.61 0.00 4,972,548.61 0.00
1.475%Due:06/14/2018
Purchase 01131/2018 912828568 5,000,000.00 US Treasury Note 99.570 1.62% 4,978.515.63 0.00 4,978,515.63 0.00
0.75%Due:07/31/2018
Purchase 02115/2018 4042BHP,5 619.000.00 HSBC USA Inc Note 100.207 2.28% 620,281.33 6,364.09 626,645.42 0.00
2.625%Due:09/24/2018
Purchase 0211512018 89233HFE9 1,800,000.00 Toyota Motor Credit Discount CP 99.362 1.97% 1,788,516.50 0.00 1,788,516.50 0.00
1.93%Due:H/1412018
Purchase 02/20/2018 06050TMC3 1,000,000.00 Bank of America Note 99.911 2.05% 999,110.00 3,645.83 1,002,755.83 0.00
1.75%Due:0610512018
Purchase 02/2112018 46625HJL5 1,250,000.00 JP Morgan Chase Note 99,962 1.78% 1,249.525.00 5,416.67 1,251,9,11.67 0.00
1.625%Due:05/15/2018
Purchase 02/26/2018 24422ESX8 1,500,000.00 John Deere Capital Corp Note 99,840 2.02% 1,497,600.00 2,866.67 1,500,466.67 0.00
1.6%Due:07/13/2018
Cj'k� Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 December 31, 2017 through March 31, 2018
Transaction Settlement Acql Interest
Type Date CUSIP Quantity Security Description Price Yield Annot.t Pur/Sold Total Amount Gain/Loss
Purchase 02/2612018 313385YBB 10,000,000.00 FHLB Discount Note 99499 1.70% 9,949,900.00 0.00 9,949,900.00 0.00
1.67%Due:06/14/2018
Purchase 0212612018 69372BEQ9 1,500,000.00 Paccar Financial Discount OP 99.553 1.88% 1,493,293.75 0.00 1,493,293.75 0.00
1.85%Due:05/2412018
Purchase 0212712018 8574nW9 1,300,000.00 State Street Bank Note 99.866 1.96% 1,298,258.00 4,972.50 1,303,230.50 0.00
1.35%Due:0 5/1 512 01 8
Purchase 0212812018 78012UAX3 1,000,000,00 ROYAL BANK OF CANADA Yankee CD 100.000 2.32% 1,000,000.00 0.00 1,000,000.00 0.00
2.32%Due: 1112 712 01 8
Purchase 03/1312018 065380FD8 1,855,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99,463 2.14% 1,845,044.83 0.00 1,845,044.83 0.00
2.1%Due:0611312018
Purchase 03/16/2018 8574AAK9 800,000.00 State Street Bank Note 99.830 2.38% 79$640.00 3,630.00 802,270.00 0.00
1.35%Due:0511512018
Puchase 03/22/2018 21687BJ05 1,500,000.00 Rabobank Nederland NV NY Discount CP 98.817 2.35% 1,482,252.50 0.00 1,482,252.50 0.00
2.29%Dua:09124/2018
Purchase 03/2812018 313385VZ6 2,500,000.00 FHLB Discount Note 99.869 1.71% 2,496,723.61 0.00 2,4%,723.61 0.00
1.685%Due:04/2512018
Purchase 03/29/2018 OM06XG65 1,000,000.00 Bank of New York Mellon Discount CP 99384 2.29% 91 0.00 993,840.00 0.00
2.24%Due:07/06/2018
Subtotal 89,024,000.00 $8,769,912.27 46,M.19 88,816,689.46 0.00
TOTAL ACQUISITIONS $9,024,000.00 88.769.912.27 46.777.19 88,816,689.46 0.00
DISPOSITIONS
Call 01124/2018 69353REJ3 1,000,000.00 PNC Bank Callable Note Cont 1/24/2018 100.000 1.50% 1,000,000.00 6,291.67 1,006,291.67 0.00
1.5%Due:02/23/2018
Call 0210112018 46623EKDO 1,000,000.00 JP Morgan Chase Callable Nate Cont 2/1/2018 100.000 1.69% 1,000,000.00 7,083.30 1,007,083.30 89.28
1.7%Due:0310112018
Call 0210812018 808513AKI 1,000,000.00 Charles Schwab Corp Callable Note Cont 211012018 100.000 1.50% 1,000,000.00 6,166.60 1,006,166.60 -105.77
1.5%Due:03110/2018
Subtotal 3,000,000.00 3,000,000.00 19,541.57 3,019,541.57 -16.49
Maturity 0111112018 313385RR9 4,750,000.00 FHLB Discount Note 100.000 4,750,000.00 0.00 4,750,000.00 0.00
1.27%Due:0111112018
Cj'k� Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 December 31, 2017 through March 31, 2018
Transaction Settlement Acqi Interest
Type Date CUSIP Quantity Security Description Price Yield Amac.t Pur/Sold Total Amount Gain/Loss
Maturity 01/15/2018 46625HGY0 1,000,000.00 3P Morgan Chase Nate 100.000 1p00,000.00 0.00 1,000,000.00 0.00
6%Due:01/15/2018
Maturity 0111512018 912828H37 10,500,000.00 US Treasury Note 100.000 10,500,000.00 0.00 10,500,000.00 0.00
0.875%Due:01/15/2018
Maturity 0111612018 24422EST7 1,000,000.00 John Deere Capital Corp Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.35%Due:01/1612018
Maturity 0111612018 40428HPH9 1,000,000,00 HSBC USA Inc Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.625%Due:01/16/2018
Maturity 01/1712018 313385RX6 1,000,000.00 FHLB Discount Note 100,000 1,000,000.00 0.00 1,000,000.00 0.00
1.28%Due:0111712018
Maturity 01/23/2018 69372BAP5 1,500,000.00 Paccar Financial Discount CP 99.843 1,500,000.00 0.00 1,500,0W.W 0.00
1.45%Due:0112 312 01 8
Maturity 01/23/2018 8801 10,000,000.00 TVA Discount Note 100.000 10,000,000.00 0.00 10,000,0W.W 0.00
1.27%Dua:01123/2018
Maturity 01/2512018 06406HCE7 870,000.00 Bank of New York Callable Note Cont 12125Y2017 100.000 870,000.00 0.00 870,0W.W 0.00
1.3%Due:01/2512018
Maturity 01/29/2018 313385SK3 15,000,000.00 FHLB Discount Note 100.000 15,000,000.00 0.00 15,000,000.00 0.00
1.3%Due:0112912018
Maturity 01I30I2018 313385SL1 11,500,000.00 FHLB Discount Note 100.000 11,500,000.00 0.00 11,500,000.00 0.00
1.29%Due:01/30/2018
Maturity 0113012018 89233HAW4 1,300,000.00 TOyola Motor Credit Discount CP 99.708 1,300,000.00 0.00 1,300,000.00 0.00
1.3%Due:01/30/2018
Maturity 01131/2018 06538CAX9 2,000,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99.818 2p00,000.00 0.00 2,000,000.00 0.00
1.6%Due:01/31/2018
Maturity 0113112018 313385SM9 19,500,000.00 FHLB Discount Note 100.000 19,500,000.00 0.00 19,500,000.00 0.00
1.278%Due:01/31/2018
Maturity 0113112018 91282OP20 35,000,000.00 US Treasury Note 100.000 35,000.000.00 0.00 35,000,000.00 0.00
0.75%Due:0113112018
Maturity 0211612018 313385TD8 5,000,000.00 FHLB Discount Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00
1.3%Due:02/16/2018
Maturity 02/2212018 02N5KSN6 1,000,000.00 American Honda Discount CP 99,724 1,000,000.00 0.00 1,000,000.00 0.00
1.53%Due:02122/2018
Cj'k� Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 December 31, 2017 through March 31, 2018
Transaction Settlement Acq/Disp Interest
Type Date CUSP Quantity Security Description Price Yield Annati.t Pur/Sold Total Amount Gain/Loss
Maturity 02/2612018 313385TP1 7,500,000.00 FHLB Discount Note 100.000 7,W0,000.00 0.00 7,500,000.00 0.00
1.31%Due:02/2612018
Maturity 03I0612018 30231GAL6 1,000,000.00 E.n Mobil Cory Note 100.000 1,OW,WO.00 O.W 1,000,000.00 O.W
1.305%Due:03/06/2018
Maturity 0310712018 3137EADP1 2,500,000.00 FHLMC Note 100.000 2,500,000.00 0.00 2,500,OW.W 0.00
0.875%Due:03/07/2018
Maturity 0311312018 02665WAT8 1,000,000,00 American Honda Finance Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.5%Due:03/13/2018
Maturity 03/1312018 06538CCD1 1,000,000.00 Bank of Tokyo Mitsubishi NV Discount CP 99497 1,000,000.00 0.00 1,000,000.00 0.00
1.45%Due:0311312018
Maturity 03/15/2018 4581XOBZO 3,000,000.00 Inter-American Day,Bank Note 100.000 3,W0,000.00 0.00 3,000,000.00 0.00
0.875%Due:0311512018
Maturity 03/31/2018 912828045 13,W0,WODO US Treasury Note 100.000 13,W0,000.00 0.00 13,000,000.00 0.00
0.875%Due:03/31QO18
Maturity 03/3112018 912828UU2 5,000,000.00 US Treasury Note 100.000 5,W0,000.00 0.00 5,000,0W.W 0.00
0.75%Due:03131/2018
Subtotal 155,920,000.00 155,920,000.00 0.00 155,920,000.00 0.00
TOTAL DISPOSITIONS 158,920,000.00 158.92U no..00 19.541.5] 158.939.541.5] -16.49
IC& I Disclosure
2018 Chandler Asset Management, Inc,An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a
price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing
source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV
Part 2A.
Performance results are presented gross-of-fees and represent the client's Total Return. These results include the reinvestment of dividends
and other earnings. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that
future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment
strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or
withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the
deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the
effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ice Data Indices, LLC ("ICE"), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN "AS IS"
BASIS; ICE, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND
REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED
THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY,
ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANYCOMPONENT THEREOF,
AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN "AS IS"BASIS AND LICENSEE'S USE
IS AT LICENSEE'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR
RECOMMEND CHANDLER ASSET MANAGEMENT, OR ANY OF ITS PRODUCTS OR SERVICES.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information
contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at
any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may
contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past
performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding
any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as
interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have
to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to
economic conditions, especially during periods of rising interest rates.
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 Mood '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
Moodv'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 Bee 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.
FY 2017-18 Third Quarter Report
This Page Intentionally Left Blank
n
April 30, 2018
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended March 31, 2018
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 2009, the District issued $200 million of fixed rate COPS, Series 2009A at a true
interest cost of 4.72 percent for the issue.
In May 2010, the District issued $80 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 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.
In August 2012, the District issued $66.395 million of fixed rate COPS, Series 2012E
refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50
percent.
With the issuance of Series 2012B, there remains no variable interest rate COPS at the
District.
OCSD ♦ P.O.Box8127 ♦ Fountain Valley,CA 9272M127 ♦ (714)%2-2411
Quarterly COP Report
For the Three Months Ended March 31, 2018
Page 2 of 2
In August 2014, the District issued $85.09 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 February 2015, the District issued $127.51 million of fixed rate COPS, Series 2015A,
refunding $152.99 million of the Series 2007E debt. The true interest cost for the issue
is 3.30 percent.
In March 2016, the District issued $145.88 million of fixed rate CANS, Series 2016A,
refunding $162.78 million of the Series 2009A fixed rate debt. The true interest cost for
the issue is 3.02 percent.
In November 2016, the District issued $109.875 million of fixed rate CANS, Series
201613, refunding the Series 2014B CANS. The true interest cost for the issue is 0.87
percent.
In February 2017, the District issued $66.37 million of fixed rate COPS, Series 2017A,
refunding $91.885 million of the Series 2007A debt. The true interest cost for the issue
is 2.55 percent.
Additional Information
The graph entitled, "OCSD COP Rate History Report,' shows the various fixed interest
rates of the District's thirteen debt issues.
Attachments
1. Graph - OCSD COP Rate History Report
Prepared by Finance,4117/2018,10:49 AM
OCSD COP RATE HISTORY REPORT
MARCH 2O18
5.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
4.00
X 3.00
w
2.00
1.00
0.00 q gg QQ
DATE
—8enee 2011A F'¢M —gene 2010A F'wel —Senee 2010C Flze! Sens 2011A Fimd —Sens 2012A Fed 20128 Rmd
—Was 2014A FIxM S.d.a 2015A Flxed —sede52015A FdW swiss 2015e Fixed —Sed.2017A FlxW
H:\depAasdMMCommon\Monthly and Quarterly Treasurer's Report\FV 17-18\COP Rate History Report FV 17-18
FY 2017-18 Third Quarter Report
This Page Intentionally Left Blank
2 BAXII I
p � N
i�
p0
NI X XE EM
ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.ocsd.com
3/31/18