HomeMy WebLinkAbout98.11-28-2018 ONLINE Board Item 18 Attachment - FY 2018-19 First Quarter Financial Report.pdf Orange County Sanitation District
First Quarter
Financial Report
for the period ended September 30, 2018 r =
r:.
In
_.._. 'ram .�
� i �, � t"...�. i to �ip4ffT�� '1_�,�� •. . i ._ _ - b
01
18
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 2018-19 First Quarter Financial Report
This Page Intentionally Left Blank
Executive Summary
Consolidated Financial Reports
For the First Quarter Ended
September 30, 2018
Included in this consolidated report are the following quarterly financial reports for the
period ended September 30, 2018:
• First 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 first quarter ended September 30, 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 September 30, 2018. The chart below provides
for a summary of these activities.
First Quarter Results
as a Percentage of Budget
25.0% $36.OM
$36.3M
20.0% $488K
15.0% I
10.0%
5.0% �3M
0.0%
Oper. Oper Exp Capital Debt Self Ins
Rea Outlays Service Outlays
Various detail information can be found in this report. Below is a descriptive
summary of these activities through September 30th:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 4.1 percent of the $465.3 million budget, mainly due to
the timing of property tax and sewer fee distribution from the County that
occurs mostly after the first quarter. These two revenue sources make up
84.7 percent of the District's total budgeted revenue. Except for Service Fees,
Property Taxes, CIP Reimbursements, Grant Revenue and Other Revenues,
most major revenue sources are currently tracking close to or exceeding
revenue estimates. Overall, total revenues are projected to approximate
Page 1
FY 2018-19 First Quarter Report
budget at year-end. More detailed information on District revenues is
provided within Section 1 — Pages 3 through 5.
c) Collection, Treatment and Disposal Costs:
As indicated within the Consolidated Financial Reports Section of this report,
the net operating requirements through the first quarter of $36.0 million is
currently tracking at 22.3 percent of the $161.2 million budget. In addition, net
operating expenses have increased $495,000 or 1.4 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 $2,082 based on flows of 188 million
gallons per day. This is $331 per million gallons, or 13.7 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 2018-19 has been revised to $174.2 million, or 99.8
percent of the board approved cash outlay of $174.5 million. The actual cash
outlay spending through the first quarter is $36.3 million, or 20.8 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 the Long-Term Portfolio quarterly return of 27 basis points
outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of
20 basis points, while the Liquid Operating Monies Portfolio quarterly return of 52
basis points outperformed the ICE BAML 3-Month US Treasury Bill Index return of
49 basis points.
Chandler further notes that as expected, the Federal Open Market Committee
(FOMC) voted to raise the fed funds target rate by 25 basis points to a range of
2.00%-2.25% at the September 26th meeting. The vote was unanimous, including
a vote from the new Board of Governors Vice Chair, Richard Clarida. The Fed
raised its median forecast for GDP growth in 2018 and 2019 and left its forecasts
for unemployment and inflation relatively unchanged. The Fed also kept its fed
funds rate forecasts unchanged with the exception of the longer-run target which
increased slightly to 3.0%. The Fed's forecast points to one more fed funds rate
Page 2
Executive Summary
hike this year and three more hikes next year. Once again, in its policy statement,
the FOMC noted that economic activity has been rising at a "strong rate" and
policymakers expect that further gradual increases in the fed funds rate will be
appropriate. The FOMC continues to believe risks to the economic outlook are
roughly balanced. Market participants believe there is a very high probability that
there will be another rate hike in December.
Although the labor market is strong and consumer confidence remains high, we do
not believe the economy is close to overheating. The Core PCE Index suggests
that inflation is in line with the Fed's 2.0% target. Market participants are
forecasting annualized GDP growth of about 3.0% in the third quarter, 2.8% in the
fourth quarter, and 2.5% next year.
Treasury yields increased in September. At month-end, the 2-year Treasury yield
was up 19 basis points to 2.82%, while the 10-year Treasury yield was up 20 basis
points to 3.06%. The spread between 2- and 10-year Treasury yields remained
narrow at just 24 basis points at month-end. Over the past 20 years, the average
spread between 2- and 10-year Treasuries has been about 140 basis points. We
foresee an upward bias to rates across the Treasury yield curve but believe that
the yield curve will remain quite flat over the intermediate-term.
The Consumer Price Index (CPI) was up 2.7% year-over-year in August, versus
up 2.9% year-over-year in July. Core CPI (CPI less food and energy) was up 2.2%
year-over-year in August, down from 2.4% year-over-year in July. The Personal
Consumption Expenditures (PCE) index was up 2.2% year-over-year in August,
down slightly from 2.3% year-over-year in July. Core PCE (excluding food and
energy) was up 2.0% on a year-over-year basis in August, unchanged from 2.0%
in July. Core PCE inflation, which is the Fed's primary inflation gauge, remains in
line with the Fed's 2.0% target.
Economic Outlook
The global economic backdrop remains bifurcated with better performance in
developed market assets, in particular the US, and more pronounced weakness in
emerging markets. The gradual normalization of domestic monetary policy is
contributing to the downward pressure on emerging market currencies. So far this
year the Federal Reserve has increased the Fed Funds rate three times, 0.25%
per quarter, to a current target of 2.00% to 2.25%. The normalization of monetary
policy domestically is in stark contrast to other developed market central banks,
where policy remains stimulative and the normalization of traditional monetary
policy has yet to commence. The US Treasury curve has continued to move
higher and flatten, with short tenor interest rates moving higher than longer tenor
interest rates, as fears of accelerating inflation remain muted keeping longer tenor
interest rates contained despite the aforementioned increase in the Fed Funds
rate.
Page 3
FY 2018-19 First Quarter Report
Risk assets performed well in the third quarter, recovering from the lackluster
performance in the second quarter of this year. Domestic equity market
performance was strong and credit spreads moved modestly tighter as the
economic data in the US remains constructive. Although the three-month moving
average on non-farm payrolls decelerated to 190k per month, compared to a
three-month moving average of 217k at the end of June, the pace of job growth
remains comfortably above the amount required to continue to put downward
pressure on the unemployment rate. The traditional measure of unemployment,
the U-3 rate, edged down 0.3% to 3.7% at the end of the quarter, while the U-6
unemployment rate, which includes part time and marginally attached workers,
also moved lower by 0.3% to 7.5%. Wage inflation, which Chandler quantifies as
average hourly earnings on a year over year basis, increased by 0.1% to 2.8%
compared to the 2.7% reading at the end of June. Wage inflation continues to
underwhelm compared to the historical experience when the U-3 unemployment
rate was below 4.0% and remains a conundrum for Federal Reserve policy going
forward. In light of current demographic trends and the low US labor force
participation rate, most recently reported at 62.7%, the U-6 unemployment rate
may be a better indicator of the overall employment situation with the current
reading above levels typically associated with accelerating wage inflation.
Although the price of oil firmed in the quarter with the escalation of geopolitical
conflicts, other commodity prices remained soft, in particular copper, traditionally a
leading indicator of global economic growth.
Somewhat surprising to the Chandler team, financial conditions domestically
remain accommodative despite the overall increase in interest rates, the continued
shrinkage of the Federal Reserve's balance sheet (which will increase to $50
billion per month starting in the fourth quarter), increased Treasury issuance to
fund the tax cuts and growing deficit, and the tightening of financial conditions
outside the US. The Chandler team questions how much longer financial
conditions can remain accommodative domestically given the divergent trends in
Europe and Asia. With the Fed Funds rate finally above 2.0%, and another 0.25%
increase expected by market participants in December, the 'cost' of money and
the overall increase in interest rates will ultimately tighten financial conditions.
However, until financial conditions tighten domestically, the Federal Reserve will
be reluctant to alter the current pace of monetary policy normalization.
• 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
First Quarter Financial Report
September 30, 2018
Financial Management is pleased to present the FY 2018-19 first 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 September 30, 2018, 22.3 percent, or $36.0 million of
the FY 2018-19 net operating budget of $161.2 million has been expended. Net
operating expenses increased from the same period last year by $495,000, or 1.4
percent, mainly due to an increase of $1.5 million in Salaries and Benefits, $462,000 in
Utilities, $207,000 in Operating Materials and Supplies, and $137,000 in Repairs and
Maintenance, partially offset by a decrease of $953,000 in Contractual Services,
$296,000 in Other Operating Supplies, $176,000 in Administrative Expenses, $153,000
in Professional Services, $35,000 in Research and Monitoring, $26,000 in Training and
Meetings, and an increase of$168,000 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 September 30, 2018 include the following:
• Salaries. Wages and Benefits — Personnel costs of $23.5 million are on target at
24.5 percent of budget through the first quarter of FY 2018-19. Although the
budget is based on a 5 percent vacancy factor, staffing is 18 full-time equivalents
(FTE's), or 2.8 percent below the total 636 FTE's approved in the FY 2018-19
budget. Salary and benefit costs are $1.5 million or 6.6 percent higher than the
$22.0 million incurred in the same period last year, mainly due to an increase of$1.3
million in salaries and wages resulting from additional FTE's of 34 or 5.8 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 $469,000, or 23.4
percent of the $2.0 million budget through September 30. These costs are
$176,000 or 27.3 percent lower at September 30 in comparison with the prior year,
mainly due to decreases of $187,000 in prior year purchases of small computer
items including tablets and two-way radios and $48,000 in minor furniture and
fixtures for workstation installations and ergonomic chairs, offset by an increase of
$58,000 in memberships attributable to timing of payments. It is anticipated that
administrative costs will approximate budget at year-end.
Section 1 - Page 1
FY 2018-19 First Quarter Report
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$63,000, or 19.8 percent of the $317,000 budget through September 30. These
costs are $17,000 or 21.0 percent lower at September 30 in comparison with the
prior year mainly due to a decrease in notices and ads for 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 $157,000 are below target at
14.3 percent of the $1.1 million budget. This account is lower than the
proportionate budget due to the timing and need for training throughout the year.
These costs have decreased over the same period last year by $26,000 or 14.4
percent, primarily as a result of infrastructure condition assessment training and
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 $4.1
million is on target at 26.3 percent of the $15.8 million budget through
September 30. Operating Materials and Supplies are higher than the prior year by
$207,000 or 5.3 percent, primarily due to increases in Chemical Coagulants of
$183,000, Gasoline, Diesel & Oil of $50,000, and Lab Chemicals & Supplies of
$37,000, partially offset by a decrease in Odor Control of $62,000. The increase is
mainly brought about by higher chemical unit costs, usage, and additional purchases
of gasoline and lab supplies as compared to the prior year. Based on current
processes, operating materials and supplies are anticipated to approximate
budget at year-end.
• Contractual Services — Contractual services is below target at $5.1 million or
20.4 percent of the $25.2 million budget through September 30. Contractual
Services is lower by $953,000 or 15.7 percent over the same period last year. Solids
Removal costs, budgeted at $16.2 million, comprise the majority of this expense
category at $3.9 million, or 24.2 percent of budget at September 30. Other
Contractual Services decreased by $547,000, primarily due to prior year costs for
installing auto balance analyzers at each plant and the flow and loading study
project. The reduction in Temporary Services of $427,000 is because of position
vacancies filled in the current period. County Service Fees totaled only $10,000, or
2.0 percent of the $457,000 budget through the first 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 $669,000 or 12.4
percent of the $5.4 million budget through September 30. Professional service
costs, such as Legal, Engineering, Environmental Scientific Consulting, Industrial
Hygiene, Labor Negotiation, and Other Services, are proportionately low through
September 30 due to a variety of factors such as timing of services and re-
evaluation of needs for services. These costs are $153,000 or 18.6 percent lower at
September 30 in comparison with the prior year, mainly attributable to a decrease of
Section 1 - Page 2
Consolidated Financial Reports
$153,000 in Legal costs due to additional legal support services incurred in the prior
year. It is anticipated that the costs for this category will be below budget at
year-end.
• Research and Monitoring — Research and monitoring costs totaled $149,000, or
14.0 percent of the $1.1 million budget through September 30. These costs are
$35,000, or 19.0 percent lower at September 30 in comparison with the prior year,
mainly due to a decrease 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 $4.0 million,
or 18.4 percent of the $21.7 million budget through September 30. These costs
are $137,000, or 3.6 percent higher at September 30 in comparison with the prior
year, mainly due to 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 $2.5 million, or 33.2 percent of the $7.4 million
budget through September 30. These costs are $462,000 or 23.0 percent higher
at September 30 in comparison with the prior year, primarily due to an increase of
$251,000 in power charges as a result of higher electricity rates and consumption
from facility-related demand. Natural Gas costs rose by $159,000 because of a
volatile natural gas market causing unit prices to spike in the current period. It is
anticipated that the costs will exceed budget at year-end.
• Other Operating Supplies — Other operating supplies costs totaled $460,000, or
18.3 percent of the $2.5 million budget through September 30. Property and
General Liability Insurance, budgeted at $1.3 million, comprise the majority of this
expense category at $325,000. These costs are $203,000 or 38.5 percent lower at
September 30 in comparison with the prior year primarily due to a reduction in
budgeted in-lieu premium charges to maintain recommended reserve balances. In
addition, Regulatory Operating Fees decreased by $65,000 due to timing of
payments for equipment permit fees. It is anticipated that other operating
supplies costs will approximate budget at year-end.
• Revenues— Service Fees and Property Taxes —Through September 30, revenues
from service fees are at ($331,000), or (0.1) percent of the $294.5 million
budget and property taxes are at $2.4 million, or 2.5 percent of the $99.6
million budget. These items comprise the majority of the Sanitation District's
revenues and are mostly collected by the County through the property tax roll and
distributed to the Sanitation District throughout the year based on a set distribution
schedule that begins in November of each year. The negative sewer service fee
revenue is attributable to no sewer service fee apportionments scheduled or
received from the County through the first quarter, while sewer service rebates have
been issued for overcharges in prior years. The decrease of $265,000 is due to
additional user fee rebates issued in the current period. The property tax revenue
Section 1 - Page 3
FY 2018-19 First Quarter Report
reduction of $70,000 or 2.8 percent over the prior period is a result of timing of
unsecured property tax collections from the County. These revenues are expected
to approximate budget at year-end.
• Revenues — Permittee User Fees — Permittee User Fees are at $4.8 million, or
26.0 percent of the $18.3 million budget. The revenues through the first quarter
are higher than the same period last year by $287,000 or 6.4 percent due to an
increase in rates and strength of the discharge from 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 approximate budget at
year-end.
• Revenues — Inter District Sewer Use — SAWPA and SBSD — Inter District Sewer
revenues - SAWPA and SBSD are at $625,000, or 19.01 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 first quarter are lower than the same
period last year by $75,000 or 10.7 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 $1.0 million, or 23.2 percent of the $4.4 million budget. This
revenue is derived from charges to the Irvine Ranch Water District (IRWD) for
treatment of flows. The revenues through the first quarter are lower than the same
period last year by $88,000 or 8.0 percent, mainly due to an increase of$116,000 in
interest income allocated to IRWD based on higher cash reserves, partially offset by
an increase of $18,000 in operation and maintenance charges to IRWD. These
revenues are expected to approximate budget at year-end.
• Revenues - Sludge Disposal — IRWD — Sludge Disposal fees - IRWD are at $2.0
million, or 20.4 percent of the $9.8 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 first quarter are lower than the
same period last year by $948,000 or 32.2 percent, mainly due to decreased solids
received from IRWD. The current fiscal year quarterly billing to IRWD is based on
estimates. It is anticipated that IRWD sludge disposal revenues will be below
budget at year-end.
• Revenues — Capital Assessments — IRWD — Capital Assessments-IRWD are at
$1.0 million, or 16.8 percent of the $6.1 million budget. The revenues through the
first quarter are higher than the same period last year by $595,000 or 136.0 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 $4.7
million, or 33.4 percent of the $14.0 million budget. The revenues through the
first quarter are higher than the same period last year by $103,000 or 2.3 percent
Section 1 - Page 4
Consolidated Financial Reports
due to more supplemental capital facilities capacity charges assessed to industrial
dischargers than at this time last year, partially offset by a decrease in connection
fees collected from cities. These revenues are expected to exceed the budget at
year-end.
• Revenues — Interest Earnings — Interest Earnings are at $2.3 million or 35.3
percent of the $6.5 million budget. The revenues through the first quarter are
higher than the same period last year by $524,000 or 29.5 percent due to higher
account balances and yields earned on securities held in the investment portfolios. It
is estimated that the interest earnings will exceed the budget amount at year-
end.
• Revenues — CIP Reimbursements — CIP Reimbursements are $671,000 or 100.0
percent lower than the same period last year. The decrease is primarily due to
timing of reimbursements received. In the prior year, these revenues consisted 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 in the current year. These revenues are expected to be
below budget at year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $139,000 or 18.5
percent of the $750,000 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 first quarter are lower than the same period last year by
$25,000 or 15.4 percent due to a reduction in waste dumping. These revenues are
expected to be below budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $73,000 or 18.1 percent of
the $400,000 budget. This revenue is derived from public sales at the District's
Compressed Natural Gas (CNG) fueling station. The revenues through the first
quarter are lower than the same period last year by $36,000 or 33.4 percent due to
decreased usage of the public CNG fueling station as a result of prior year
mechanical failures that led to the station being oftline for several months. These
revenues are expected to be below budget at year-end.
• Revenues — Rents & Leases — Rents & Leases revenues are at $400,000 or 34.9
percent of the $1.1 million budget. The revenues through the first quarter are
higher than the same period last year by $307,000 or 331.7 percent due to rent
received from tenants occupying the newly acquired properties on Pacific/Bandilier
and Mt. Langley. These revenues are expected to exceed budget at year-end.
Section 1 - Page 5
FY 2018-19 First Quarter Report
Comparison of First Quarter Cost per
Million Gallon Results with Budget
Last Five Years
$2,300
$2,250
$2,200 I 2w
$2,150 tt.
$2,100
$2,050
$2,000 u
$1,950 s+a�
$1,900 si
$1,850
$1,800
$1,750
$1,700
$1,650
$1,600
$1,550
$1,500
14-15 15-15 16-17 17--18 1e-19
1st Annual 1st Annual 1st Annual 1st Annual 1st Annual
Or Budget Qtr Budget Or Budget Ctr 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 first quarter has been between 3.4 percent to 11.3
percent lower than the annual budget. The FY 2018-19 first quarter cost per million
gallons of $2,082 is 13.7 percent lower when compared with this year's budget. The
increase in cost per million gallons of $32 from the previous year is primarily due to an
increase in operating expenses, which are 1.4 percent higher than the same period last
year and a decrease in flows, which are 0.2 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 September 30 is $2,082 based on flows of 188
million gallons per day. This is $331 per million gallons, or 13.7 percent, lower than
the budgeted cost per million gallons of $2,413. 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 10.7
percent less than the proportionate budget through September 30 and flows of 188
million gallons per day being 2.7 percent higher than the budgeted flow of 183 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
2014 2015 2016 2017 2018
Agency SFR SFR SFR SFR SFR Notes
San Francisco $ 745 $ 784 $ B42 $ 937 $ 988
Vallejo Sanitation/Flood Control Distdc $ 520 $ 520 $ 520 $ 520 $ 585
City of San Diego $ 573 $ 573 $ 573 $ 573 $ 573 Note 4
Central Contra Costa Sanitary District $ 439 $ 471 $ 503 $ 530 $ 567
City of Los Angeles $ 435 $ 464 $ 495 $ 527 $ 561 Note 1
Sacramento County $ 348 $ 384 $ 420 $ 432 $ 444
Dublin San Ramon Services District $ 373 $ 382 $ 382 $ 397 $ 423
East Bay MUD $ 358 $ 355 $ 373 $ 391 $ 410
Union Sanitary District $ 357 $ 377 $ 380 $ 393 $ 407
City of Hayward $ 337 $ 347 $ 358 $ 375 $ 394
Orange County Sanitation District $ 316 $ 322 $ 327 $ 331 $ 335
City of Fresno $ 309 $ 309 $ 309 $ 309 $ 309 Note 3
IMne Ranch Water District $ 246 $ 289 $ 309 $ 309 $ 309 Note 2
Oro Loma Sanitary District $ 200 $ 206 $ 221 $ 238 $ 256
Los Angeles County $ 151 $ 155 $ 159 $ 163 $ 167
Notes:
(1)- Data is for the typical SFR customer rate.
(2)- Data represents the usage of 10 hundred cubic feet per unit.
(3)- Data represents the minimum SFR rate not including flow.
(4)- Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month.
Section 1 - Page 7
FY 2018-19 First 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 Sw.Trt. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG 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
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 4 $ 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 Note2
Legend for Service Prodded and Treatment Lewl:
B-Agencyoperates both collection and treatment facilities
T-Agency prouides treatment seMces but not collection
3-Secendarytreatment
4-Advanced secondaryor secondarywith some tertiary treatment
Notes:
(1)-Dataset represents wastewaterfiows from finalized publiclyawilable audited documents.
(2)-Does not include source control or owmead costs.
Section 1 - Page 8
Consolidated Financial Reports
Capital Outlay Review:
$200,000,000
i
$150,000,000
$100,000,000
$50,000,000
$0
9/30118 Actual Projected 2018-19 2018-19 Capital Outlay
Capital Outlay Capital Outlay Cashflow Budget
$36,252,221 $174,225,800 $174,542,000
As depicted by the preceding chart, Capital Outlays totaled $36.3 million or 20.8
percent of the capital outlay cash flow budget for FY 2018-19 as of September 30,
2018. Costs are proportionately low through the first quarter as some projects are still in
the design phase or have experienced various delays or deferrals. Examples as of
September 30 are Newhope-Placentia Trunk Replacement, which has a budget of
$13.5 million but actual costs of only $528,000, Bay Bridge Pump Station Replacement,
which has a budget of $13.0 million but actual costs of only $78,000, and Sludge
Dewatering and Odor Control at Plant 1, which has a budget of $16.7 million but actual
costs of $1.5 million. Overall, the capital outlay costs of the capital improvement
program are expected to approximate $174.2 million, or 99.8 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 September 30, 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 February during the third
quarter of each fiscal year. As of September 30, 2018, no principal payments have been
made through the end of the first quarter. Total principal payments, excluding
refundings, are expected to approximate budget at year-end. Interest costs are
Section 1 - Page 9
FY 2018-19 First Quarter Report
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
September 30, the Self-Insurance Fund revenues totaled $498,000 or 26.0 percent of
the budget, while expenses were $488,000 or 19.8 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
September 30, 2018
$1,600
$1,500
$1,400
$1,300
$1 200
$1,100
$1 000
$000
$800
8700
$600
$500
$400
$300
$2.
$10a
$a
uE z8
K y �
�eutlget �Aclual
Collection, Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
September 30, 2018
$75,000
$70,000
$65,000
$fi0,00n
MOO
$50.00n
$a5,000
$a0,000
$35,000
$30.000
$25,000
$20.000
$15.000
$10,000
$5,000
$6 — — — — JL
E u o' ' a 8
Meudga Nnaaai
Section 2-Page 1
2018-19 First Quarter Report
Divisional Contributions to Cost Per Million Gallons
For the Three Months Ended September 30,2018
2018-19
9130/16 9130117 Annual 9/30/18
Actual Actual Budget Actual
Flow in Million Gallons 16,992,54 17,320.06 66,795.00 17,286,08
Flow in Million Gallons per Day 184.70 188.26 183.00 187.89
Executive Management Department
General Management Administration $ 28.32 $ 30.70 $ 43.99 $ 28.94
Board Services 6.82 8.92 10.35 8.50
Public Affairs 12.86 13.82 16.19 13.74
Subtotal 48.00 53.44 70.53 51.18
Human Resources Department
Human Resources 49.02 48.94 62.45 51.22
Risk Management/Safety/Security 57.06 83.53 81.25 68.34
Subtotal 106.08 132.47 143.70 119.56
Administrative Services Department
Administrative Services 6.70 6.94 9.39 6.78
Financial Management 38.85 45.80 57.40 34.32
Contracts,Purchasing,&Materials Mgml. 59.86 62.27 90.20 64.97
Information Technology 137.15 184.43 173.97 202.83
Subtotal 242.56 299.44 330.96 308.90
Environmental Services Department
Environmental Services Administration 11.27 12.07 12.98 12.88
Resource Protection 75.32 75.62 89.24 83.11
Laboratory,Monitoring and Compliance 140.12 154.21 166.89 149.46
Subtotal 226.71 241.90 269.11 245.45
Engineering Department
Engineering Administration 5.72 6.08 7.62 6.99
Planning 43.23 49.37 63.72 50.22
Project Management Office 34.93 34.83 43.25 42.65
Civil and Mechanical Engineering 121.01 117.63 132.26 120.78
Electrical&Control System Engineering 51.32 66.38 81.18 70.98
Subtotal 256.21 274.29 318.03 291.62
Operations&Maintenance Department
Operations&Maintenance Administration 6.43 8.43 14.33 8.61
Collections Facilities O&M 163.09 186.66 199.21 194.08
Fleet Services 27.21 26.70 31.57 26.27
Plant No. l Operations 430.76 373.60 398.12 402.43
Plant No.2 Operations 287.64 289.79 304.77 300.46
Plant No. 1 Maintenance 248.18 198.98 276.06 197.38
Maintenance Reliability and Planning - 95.42 115.71 85.40
Plant No.2 Maintenance 157.29 164.09 241.32 156.85
Subtotal 1,320.60 1,343.67 1,581.09 1,371.48
Total Operating Expenses 2,200.16 2,345.21 2,713.42 2,388.19
Cost Allocation (276.78) (295.42) (300.42) (305.76)
Net Operating Requirements $ 1,923.38 $ 2,049.79 $ 2,413.00 $ 2,082.43
Section 2-Page 2
Operating Budget Review
Comparison of Expenses by Department
For the Three Months Ended September 30, 2018
2018-19
9/30/16 9130117 year to Date Budget%
Department and Division Actual Actual Budget 9130118 Realized
Executive Management Department
General Management Administration $ 481,214 $ 531,754 $ 2,938,490 $ 500,317 17.03%
Board Services 115,807 154,476 691,530 146,867 21.24%
Public Affairs 218,563 239,435 1,081,500 237,539 21.96%
Subtotal 815,584 925,665 4,711,520 884,723 18.78%
Human Resources Department
Human Resources 833,041 847,629 4,171,570 885,374 21.22%
Risk Management/Safety/Security 969,542 1,446,767 5,427,000 1,181,374 21.77%
Subtotal 1,802,583 2,294,396 9,598,570 2,066,748 21.53%
Administrative Services Department
Administrative Services 113,803 120,275 626,960 117,171 18.69%
Financial Management 660,179 793,250 3,834,170 593,289 15.47%
Contracts, Purchasing,&Materials Mgmt. 1,017,108 1,078,522 6,025,240 1,123.009 18.64%
Information Technology 2,330,501 3,194,317 11,620,570 3,506,102 30.17%
Subtotal 4,121,591 5,186,364 22,106,940 5,339,571 24.15%
Environmental Services Department
Environmental Services Administration 191,477 209,135 866,770 222,718 25.70%
Resource Protection 1,279,884 1,309,788 5,960,650 1,436,715 24.10%
Laboratory, Monitoring and Compliance 2,380,990 2,670,898 11,147,210 2,583,600 23.18%
Subtotal 3,852,351 4,189,821 17,974,630 4,243,033 23.61%
Engineering Department
Engineering Administration 97,187 105,345 509,130 120,828 23.73%
Planning 734,644 855,091 3,588,370 868,073 24.19%
Project Management Office 593,577 603,334 2,888,850 737,206 25.52%
Civil and Mechanical Engineering 2,056,323 2,037,393 8,834,460 2,087,898 23.63%
Electrical&Control System Engineering 872,079 1,149,722 5,422,590 1,226,924 22.63%
Subtotal 4,353,810 4,750,885 21,243,400 5,040,929 23.73%
Operations&Maintenance Department
Operations&Maintenance Administration 109,297 146,017 957,270 148,869 15.55%
Collections Facilities O&M 2,771,291 3,232,914 13,305,960 3,354,942 25.21%
Fleet Services 462,332 462,460 2,108,870 454,126 21.53%
Plant No.1 Operations 7,319,734 6,470,777 26,592,250 6,956,506 26.16%
Plant No.2 Operations 4,887,717 5,019,118 20,357,180 5,193.785 25.51%
Plant No.1 Maintenance 4,217,151 3,446,394 18,439,550 3,411,921 18.50%
Maintenance Reliability and Planning - 1,652,656 7,728,800 1,476,165 19.10%
Plant No.2 Maintenance 2,672,816 2,842,015 16,118,650 2,711,247 16.82%
Subtotal 22,440,338 23,272,351 105,608,530 23,707,561 22.45%
Total Operating Expenses 37,386,257 40,619,482 181,243,590 41,282,565 22.78%
Cost Allocation (4,703,125) (5,117,058) (20,070,430) (5,285,554) 26.34%
Net Operating Requirements $ 32,683,132 $ 35,502,424 $ 161,173,160 $ 35,997,011 22.33%
Section 2-Page 3
2018-19 First Quarter Report
Summary of Collection, Treatment, &Disposal Expenses by Major Category
For the Three Months Ended September 30,2018
Expense Expense Increase Increase Percent
Budget Through Through (Decrease) (Decrease) Budget Remaining
Description 2018-19 9/30/18 9130117 $ % Realized Budget
Salary&Wages $ 72,948,400 17,649,325 16,380,310 $ 1,269,015 7.75% 24.19% $55.299,075
Employee Benefits 23,044,400 5,889,801 5,629,980 259,821 4.61% 25.56% 17,154,599
Administrative Expenses 2,007,530 468,759 644,491 (175,732) -27.27% 23.35% 1,538,771
Printing&Publication 316,890 62,684 79,301 (16,617) -20.95% 19.78% 254,206
Training&Meetings 1,097,080 157,090 183,568 (26,478) -14.42% 14.32% 939,990
Operating Materials&Supplies 15,762,740 4,147,497 3,940,666 206,831 5.25% 26.31% 11,615,243
Contractual Services 25,206,520 5,133.841 6,087,090 (953,249) -15.66% 20.37% 20.072,679
Professional Services 5,393,480 668,690 821,483 (152,793) -18.60% 12.40% 4,724,790
Research&Monitoring 1,061,200 148,567 183,511 (34.944) -19.04% 14.00% 912,633
Repairs&Maintenance 21,715,360 3,996,894 3,859,714 137,180 3.55% 18.41% 17,718,466
Utilities 7,439,800 2,468.268 2,006,298 461,970 23.03% 33.18% 4,971,532
Other Materials,Supplies,
and Services 5,250,190 491,149 803,070 (311,921) -38.84% 9.35% 4,759,041
Net Cost Allocation (20,070,430) (5,285,554) (5,117,058) (168,496) 3.29% 26.34% (14,784,876)
Net Operating Requirements 161,173,160 35,997,011 35,502,424 494,687 1.39% 22.33% 125,176,149
Gallonage Flow(MG) 66,79&00 17,286.08 17,320.06 (33.98) -0.20%
Gallonage Flow(MGD) 183.00 187.89 188.26 (0.37) -0.20%
Gallonage Flow($'a/MG) $2,413000 $2,082.43 $2,049.79 $32.64 1.59%
Section 2-Page 4
Operating Budget Review
Summary of Revenues
For the Three Months Ended September 30, 2018
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2018-19 9/30/18 Realized Budget 9/30/17 $ %
Service Fees $294,450,000 $ (330,829) -0.11% $294,780,829 $ (65,999) $ (264,830) 401.26%
Permit Fees 18,320,000 4,760,889 25.99% 13,559,111 4,473,396 287,493 6.43%
Inter District Sewer Use-SAWPA&SBSD 3,290,000 625,418 19.01% 2,664,582 700,014 (74,596) -10.66%
Intro District Sewer Use-IRWD 4,373,820 1,013,278 23.17% 3,360,542 1,101,284 (88,006) -7.99%
Sludge Disposal-IRWD 9,775,000 1,992,636 20.39% 7,782,364 2,940,920 (948,284) -32.24%
Capital Assessments-IRWD 6,144,000 1,032,191 16.80% 5,111,809 437,228 594,963 136.08%
Capital Facilities Capacity Charges 14,000,000 4,678,078 33.41% 9,321,922 4,575,083 102,995 2.25%
Property Taxes 99,557,000 2,449,863 2.46% 97,107,137 2,519,562 (69,699) -2.77%
Interest Earnings 6,510,000 2,299,559 35.32% 4,210,441 1,775,451 524,108 29.52%
CIP Reimbursements 2,425,122 - 0.00% 2,425,122 670,562 (670,562) -100.00%
Wastehauler 750,000 138,721 18.50% 611,279 163,951 (25,230) -15.39%
Grant Revenue 1,300,000 - 0.00% 1,300,000 - - 0.00%
CNG Sales 400,000 72,538 18.13% 327,462 108,895 (36,357) -33.39%
Rents&Leases 1,147,100 399,845 34.86% 747,255 92,623 307,222 331.69%
Other Revenues 2,800,363 68,460 2,44% 2,731,903 50,247 18,213 36.25%
Power Sales 25,000 12,204 48.82% 12,796 10,383 1,821 17.54%
Other Sales 50,000 40,998 82.00% 9,002 4,849 36,149 745.49%
Total Revenues $465,317,405 $ 19,253,849 4.14% $446,063,556 $ 19,558,449 $ (304,600) -1.56%
Section 2-Page 5
2018-19 First Quarter Report
Summary of Collection,Treatment, &Disposal Expenses by Line Item
For the Three Months Ended September 30,2018
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2018-19 9130118 Expensed Budget 9130/17 $ %
Salaries.Wanes&Benefits
Salaries&Wages $ 72,948,400 $ 17,649,325 24.19% $ 55,299,075 $ 16,380,310 $ 1,269,015 7.75%
Employee Benafita
Retirement 10,739,100 2,874,236 26.76% 7,864,864 2,811,103 63,133 2.25%
Group Insurances 10,868,900 2,641,026 24.30% 8,227,874 2,471,541 169,485 6.86%
Tuition&Certification Relmb 128,700 24,604 19.12% 104,096 19,843 4,761 23.99%
Ed..degrees,Cart.&Lic. 460,800 131,458 28.53% 329,342 121,484 9,974 8.21%
Uniform Rental 131,200 33,516 25.55% 97,684 31,671 1,845 5.83%
Workers'Compensation 586,600 146,649 25.00% 439,951 138,584 8,065 5.82%
Unemployment Insurance 3],]00 1,244 3.30% 36,456 11,920 (10,676) -89.56%
EMT Supplemental Banal 91,400 37,068 40.56% 54,332 23,834 13,234 55.53%
Total Benefits 23,044,400 5,889,801 25.56% 17,154,599 5,629,980 259,821 4.61%
Salaries,Wages&Benefits 95,992,800 23,539,126 24.52% 72,453,674 22,010,290 1,528,836 6.95%
Man,Supply.&Services
Administrative Expenses
Memberships 618,760 235,829 38.11% 382,931 1]],958 5],8]1 32.52%
Office Exp-Supplies 6],4]0 7,163 10.62% 60,307 8,642 (1,479) -17.11%
Postage 43,270 11,957 27.63% 31,313 9,246 2,711 29.32%
Books&Publications 38,070 3,634 9.55% 34,436 5,137 (1,503) -29.26%
Forms No 1,245 129.69% (285) 190 1,055 555.26%
Smell Computer Items 904000 197,956 22.00% 702,044 384714 (186,758) 48.54%
Minor Furniture&Fixtures 339,000 10,975 3.24% 328,025 58,604 (47,629)
Subtotal 2,007,00 468769 23.35% 1,538,]]1 644,491 (176,732) -2].2]%
Printing&Publication
Repro-In-House 198,040 50,569 25.53% 147,471 41,694 8,875 21.29%
Printing-Outside 60,370 4,215 6.98% 56,155 4,395 (180) 4.10%
Notices&Ads 5&430 7,900 13.52% 50,530 33,212 (25,312) -76.21%
Photo Processing 50 0.00% 50 N/A
Subtotal 316,890 62,684 19.78% 254,206 79,301 (16,617)
Training&Meetings
Meetings 167,360 22,705 13.57% 14g655 18763 3,942 21.01%
Training 929,720 134,385 14.45% 795,335 164,805 (30,420)
Subtotal 1,097,080 157,090 14.32% 939,990 183,568 (26,478) -14.42%
Operating Mafls is Supplies
Chemical Coagulants 5,489,080 1,506,429 21.44% 3,982,651 1,323,130 183,299 13.85%
Odor Control 7,142,120 1,931,936 27.05% 5,210,184 1,993,450 (61,514) -3.09%
Disinfection 253,000 3],]93 14.94% 215,207 35,819 1,974 5.51%
Chemicals-Misc&Cogan 326,860 84,507 25.85% 242,353 68,832 15,675 22.]]%
Gasoline,Diesel&Oil 582,640 152,692 26.21% 429,948 102,729 49,963 48.64%
Tools 496,340 80,563 16.23% 415,787 90,798 (10,245) -11.28%
Safety equlpmentmols 559,690 119,502 21.35% 440,188 131,646 (18,144) -13.18%
Soly,Paints&Jan.Supplies 106,320 25,136 23.64% 81,184 21,963 3,173 14.45%
Lab Chemicals&Supplies 624,570 166,564 26.67% 458,006 129,634 36,930 28.49%
Other Operating Supplies 168,480 42,514 25.23% 125,966 3605 5,849 15.95%
Property Tax Fees 13,640 (129) -0.95% 13,769 (129) N/A
Subtotal 15,762,740 4,147,497 26.31% 11,615,243 3,940,666 206,831 5.25%
Contractual Services
Solids Remoyal 16,200,000 3,916,758 24.18% 12,283,242 3,933,840 (17,082) -0.43%
One,Waste Disposal 811,900 191,293 23.56% 620,607 184,018 ],2]5 3.95%
Groundskeeping 175,700 41,829 23.81% 133,871 40,929 900 2.20%
Janitorial 435,000 111,262 25.58% 323,738 91,601 13,661 14.00%
Outside Lab Services 210,000 30,012 14.29% 179,988 K056 (4,044) -11.87%
Oxygen 3301wo 77,712 23.55% 252,288 63744 13,968 21.91%
County Service Fee 497,490 10,113 2.03% 487,377 9,482 631 6.65%
Temporary Services 1,429,400 35,251 2.47% 1,394,149 462,726 (427,475) -92.38%
Security Services 1,608,000 406,713 25.29% 1,201,287 400,5]] 6,136 1.53%
Other 315091030 312,898 8.92% 3,196,132 860,117 (547,219)
Subtotal 25,206,520 5,133,841 20.37% 20,072,679 6,087,090 (953,249)
(Continued)
Section 2-Page 6
Operating Budget Review
Summary of Expenses by Line Item
For the Three Months Ended September 30,2018
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2018-19 9130118 Expensed Budget 9130117 $ %
Continued:
Professional Services
Legal 1,147,030 164,077 14.30% 982,953 317,200 (153.123) 4&27%
Audit&Accounting 231,690 52,198 22.53% 179,492 103,389 (51,191) 49.51%
Engineering 1,985,460 160,183 8.07% 1,825,277 87,246 72,937 83.60%
Ervin,Scientific Consulting 280,000 10,000 3.57% 270,000 - 10,000 N/A
Software PMm Consulting 376,000 82,287 21.88% 293,713 79,101 3,186 4.03%
Advocacy Eltods 165,000 39,000 23.64% 126000 39,000 - 0.00%
Industrial Hygiene Services 50,000 7,208 14.42% 42,792 10,906 (3,698) d3.91%
Labor Negotiation Services 40,000 - 0.00% 40,0D0 - - N/A
Other 1,118,300 163,737 13.75% 964,563 184,641 (30,904) -16.74%
Subtotal 5,393,480 668,690 12.40% 4,724,790 821,483 (152,793) -18.60%
Research&Monitoring
Environmental Monitoring 511,200 26,610 &19% 484,690 77,261 (50,751) -6&69%
Air Quality Monitoring 100,000 9,557 9.56% 90,443 - 9,557 N/A
Research 450,000 112,500 25.00% 337,500 106,250 6,250 5.88%
Subtotal 1,061,200 148,567 14.00% 912,633 183,511 (34,944) -19.04%
Repairs&Maintenance
Materials&Services 18.445,730 2,5d4,507 13.79% 15,901,223 2.666,708 (122,201) 4.58%
Svc.MR, Agreements 3,269,630 1,452,387 44.42% 1,817,243 1,193,0D6 259,381 21.74%
Subtotal 21,715,360 3,996,894 18,41% 17,718,466 3,859,714 137,180 3S6%
Utilities
Telephone 501,000 104,367 20.83% 396,633 90,761 13,606 14.99%
Diesel For Generators 11,290 9,469 83.87% 1,821 1,032 8.437 81T54%
Natural Gas 576,100 375,875 65.24% 200,225 217,265 158,610 73.00%
Power 5732,860 1,805,197 31.49% 3,927,663 1,554,540 250,657 16.12%
Water 618,550 173,360 28.03% 445,190 142,700 W660 21.49%
Subtotal 7,439,800 2,468,268 33,18% 4,971,532 2,006,298 461,970 2&03%
Other Operating Supplies
Outside Equip Rental 132,000 8,048 6.10% 123,952 34,991 (26,943) -77.00%
Insurance Premiums 36,500 27,155 76A9% BUS 26,189 He &69%
Prop&Gen Liab Insurance 1,299,300 324,825 25.00% 974,475 527,718 (202,893) 38.45%
Freight 87,050 18,848 21.65% 68,202 24,302 (5,454) -22.44%
Misc.Operating Expense 210,250 55,058 26.19% 155,192 52,160 2,898 5.56%
Regulatory Operating Fees 749,000 26,271 &51% 722,729 90,951 (&,NO) -71A2%
Subtotal 2,513,100 460,205 18.31% 2,052,895 756,311 (296,106) 39.15%
General Mgr Contingency
&Reappropriaions 1,136,600 0.00% 1,135,600 N/A
Other Non-0per Expense 1,601,490 30,944 1.93% 1,570,546 46,759 (15,815) J3.82%
Total Materials,
Supplies&Services 85,250,790 17,743,439 20.81% 67,507,351 18,609,192 (865,753) 4.65%
Total Expenditures 181,243,590 41,282,665 2278% 139,961,025 40,619,482 663.083 1.63%
Cost Allocation (20,070,430) (5,285,554) 2&M% (14,784,876) (5,117,058) (168,496) &29%
Net Operating Requirements $ 161.173,160 $ 35,997,011 22.33% $ 125,176,149 $ 35.502,424 $ 494,587 1.39%
Section 2-Page 7
2018-19 First Quarter Report
Summary of Collection,Treatment,8 Disposal Expenses by Process
For the Three Months Ended September 30,2018
Increase Increase
Actual Actual (Decrease) (Decrease)
9/30118 9130/17 $ %
Process:
Preliminary Treatment $ 1,778,265 $ 1,522,640 $ 255,625 16.79%
Primary Treatment 3,394,203 2,618,895 765,308 29.22%
Secondary Treatment 2,169,677 2,127,304 42,373 1.99%
Cryogenic Plant(Plant 2) 162,770 134,829 27,941 20.72%
Ef0uent Disposal 225,825 148,271 77,554 52.31%
Solids Handling 10,328,537 10,026,424 302,113 3.01%
Cogeneration 4,685,747 5,147,694 (461,947) -8.97%
Utilities 738,357 620,935 117,422 18.91%
Electrical Distribution 418,054 270,148 147,906 54.75%
Miscellaneous Buildings 2,276,232 3,101,713 (825,481) -26.61%
External Location 82,512 608 81,904 13462.13%
Nerlssa Vessel 52,892 48,815 4,077 8.35%
Laboratory 3,786,837 3,933,117 (146,280) -3.72%
Collections 5,907,103 5,801,031 106,072 1.83%
Net Operating Requirements $ 35.997,011 $ 35.502,424 $ 494,587 1.39%
Section 2-Page 8
Operating Budget Review
Staffing Trends
Full Time Equivalents
September 30,2018
700
650 624 624 627 635 636
600 44 52 49
550
:1
500
450
6/30/15 6130116 6/30/17 6130/18 9/30/18
8Adua1 8Vacant
At September 30, 2018, the total head count was 636 employees, or a full time equivalency of 618.
Section 2-Page 9
2018-19 First Quarter Report
This Page Intentionally Left Blank
Section 2- Page 10
CIP Budget Review
Capital Improvement Program
By Type and Funding Source
For the Three Months Ended September 30, 2018
ecolldical Faclli6es: 4 9%
otMHea4waral, 40%
MPnmary Treatment, 1.2%
oSecondary Treatment, 16%
MSolld.Hantlling&Olges6on: 13 2%
30.d outrall S,amdsr 4.9%
Duality Systems: 6.3%
MProcess Related Special Projeda: 1,6%
Mlnlormaton Management Systems: 4 3%
MSirategic&Master Planning: 0.5%
MWater Management Projects: 0.1%
MRese im6: 02%
OSuppod Fedli0es: 54.4%
Mothers: 0.0%
M Pr or Year Treatm ent Projects: 0.1%
MCapnal EqulpmeM Nacre..: 3o%
Total Capital Improvement Outlays -$36,252,221
Rehabilitation and Replacement 58%
Strategic Initiatives: 33%
❑Additional Capacity: 5%
Regulatory: 4%
Total Capital Improvement Outlays -$36,252,221
Section 3- Page 1
FY 2018-19 First Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2018
2018-19 2018-19 2018-19
Cashflow Actual at Projected
Budget 9/30/2018 Outlay
Collection System Improvement Projects
Collections Facilities
Raitt and Bristol Street Sewer Extension 135,408 - 100,800
Newhope-Placentia Trunk Grade Separation Replacement 100,599 368 122,400
Newhope-Placentia Trunk Replacement 13,499,364 527,838 15,607,600
Tustin Rose OCTA Grade Separation 11,361 368 13,000
Westminster Blvd Force Main Replacement 3,356,135 81,068 2,444,100
Rehabilitation of Western Regional Sewers 6,537,370 364,682 7,084,400
Interstate 405 Widening Project Impacts on OCSD Sewers 39,448 4,845 39,400
Seal Beach Pump Station Replacement 485,556 - 485,600
Newport Force Main Rehabilitation 69,910 3,747 102,900
Bay Bridge Pump Station Replacement 13,047,597 76,817 512,000
Newport Beach Pump Station Odor Control Improvements 50,720 - 30,700
District 6 Trunk Sewer Relief 2,886,772 381,056 2,080,300
Gisler- Red Hill Trunk Improvements- Reach B 1,674,943 20,519 2,155,600
Small Construction Projects Program-Collections 2,802,441 165,524 165,600
Planning Studies Program-Collections - 80,014 80,100
Research Program-Collections - 7,434 7,500
SARI Rock Stabilizers Removal 1,058,174 19,365 1,557,900
Bay Bridge Pump Station and Force Mains Rehab Study - 3,027 163,400
Additional Charges to CIP Closed at 6/30/18 12,892 12,900
Subtotal -Collections Facilities 45,755,798 1,749,564 32,766,200
Revenue Area 14
Newport Force Main Rehabilitation (2.18%) 1,558 84 2,300
Subtotal -Revenue Area 14 1,558 84 2,300
Total Collection System Improvement Projects 45,757,356 1,749,648 32,768,500
(Confined)
Section 3-Page 2
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2018
2018-19 2018-19 2018.19
Cashflow Actual at Projected
Budget 9/30/2018 Outlay
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 12,397,710 1,219,482 9,292,400
Trunk Line Odor Control Improvements 48,499 291 207,200
Headworks Modifications at P2 for GWRS Final Expansion 2,451,764 246,139 3,632,800
Subtotal -Headworks 14,897,973 1,465,912 13,132,400
Primary Treatment
Primary Clarifier Reliability Improvements at Plant No. 1 379,331 42,783 212,700
Primary Treatment Rehabilitation at Plant 2 4,850,687 406,813 4,551,300
Subtotal -Primary Treatment 5,230,018 449,596 4,764,000
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 697,946 43,864 117,900
Activated Sludge Aeration Basin Deck Repair at Plant 2 1,376,540 237,306 1,191,300
Return Activated Sludge Piping Replacement at Plant 2 1,447,905 294,146 893,600
Subtotal -Secondary Treatment 3,522,391 575,316 2,202,800
Solids Handling& Digestion
Digester Rehabilitation at Plant 1 136,855 27,390 98,500
Sludge Dewatedng and Odor Control at Plant 1 16,681,794 1,537,815 14,681,100
Plant No.2 Digester Facilities Rehabilitation 2,507,265 266,318 2,089,500
Sludge Dewatering and Odor Control at Plant 2 13,378,013 2,912,298 11,907,900
Interim Food Waste Receiving Facility 304,086 42,855 403,100
Subtotal -Solids Handling&Digestion 33,008,013 4,786,676 29,180,100
Ocean Outfall Systems
Ocean Outfall System Rehabilitation 7,417,783 1,702,345 9,357,000
Subtotal -Ocean Oulfall Systems 7,417,783 1,702,345 9,357,000
Utility Systems
Digester Gas Facilities Rehabilitation 4,896,117 83,387 4,212,100
Natural Gas Pipelines Replacement at Plants 1 and 2 65,178 9,417 87,300
Electrical Power Distribution System Improvements 285,913 25,709 189,000
Uninterruptable Power Supply Improvements at Plant 1 154,548 10,331 44,300
Consolidated Demolition and Utility Improvements at P2 11,303,152 2,143,210 14,154,000
Subtotal -Utility Systems 16,704,908 2,272,054 18,716,700
(Confined)
Section 3-Page 3
FY 2018-19 First Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2018
2018-19 2018-19 2018-19
Cashflow Actual at Projected
Budget 9/3012018 Outlay
Process Related Special Projects
Safety Improvements Program 9,372,763 559,947 5,279,100
Subtotal -Process Related Special Projects 9,372,763 559,947 5,279,100
Information Management Systems
Project Management Information System 1,668,647 117,184 1,294,800
SCADA System and Network Upgrades 1,299,323 241,792 623,800
Information Technology Capital Program 515,592 918,057 1,328,300
Geographic Information System 867,988 107,738 332,800
EAM Software and Process Implementation 941,955 129,628 579,700
Process Control Systems Upgrades Study 1,662,962 50,224 1,609,100
Subtotal -Information Management Systems 6,956,467 1,564,623 5,768,500
Strategic S Master Planning
Planning Studies Program 7,047,719 154,710 7,126,500
Climate Resiliency Study 188,757 6,621 271,200
Subtotal -Strategic&Master Planning 7,236,476 161,331 7,397,700
Water Management Projects
GWRS Final Expansion Coordination 108,588 44,071 179,500
Subtotal -Water Management Projects 108,588 44,071 179,500
Research
Research Program 2,166,356 80,620 2,310,000
Subtotal -Research 2,166,356 80,620 2,310,000
Support Facilities
Small Construction Projects Program 4,231,590 726,553 9,991,600
Fleet Services UST Leak Remediation at Plant 1 2,626,773 13,510 13,600
Operations 8 Maintenance Capital Program 930,125 8,139 735,200
18350 Mt. Langley Building Purchase and Improvement 126,931 4,323 27,500
Title 24 Access Compliance and Building Rehab Project 2,554,359 403,210 2,616,200
Headquarters Complex and Site Security at Plant 1 10,536,486 18,549,407 26,045,500
Plant 2 Warehouse Relocation 497,768 66,800
Subtotal -Support Facilities 21,504,032 19,705,142 39,496,400
(Continued)
Section 3-Page 4
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2018
2018-19 2018-19 2018-19
Cashflow Actual at Projected
Budget 9/30/2018 Outlay
Others
Perimeter Screening at Plant 2 105,711 10,554 67,700
Capital Improvement Program Management Services 579 600
Subtotal -Others 105,711 11,133 68,300
Additional Charges to CIP Completed at 6130118 22,337 22,400
Total Treatment and Disposal Projects 128,231,479 33,401,103 137,874,900
Capital Equipment Purchases 3,582,400 1,101,470 3,582,400
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases 177,571,235 36,252,221 174,225,800
Add: Future Rehab and Replacement 14,278,000
191,849,235 36,252,221 174,225,800
Less: Savings and Deferrals (17,307,124)
Net Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $174,542,111 $ 36,252,221 $174,225,800
Section 3 - Page 5
FY 2018-19 First Quarter Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2018
Current Total
Approved June 30,2018 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2019 Budget
Collection System Improvement Projects
Collections Facilities
Raiff and Bristol Street Sewer Extension 7,100,000 259,O75 100,800 359,875 6,740,125
Taft Branch Improvements 2,130,000 12,083 - 12,083 2,117,917
Newhope-Placentia Trunk Grade Separation Replacement 4,300,000 4,177,654 122,400 4,300,054 (54)
Newhope-Placentia Trunk Replacement 112,000,000 34,442,135 15,607,600 50,049,735 61,950,265
Yoffie Linda Pump Station Abandonment 10,800,000 - - - 10,800,000
Tustin Rose OCTA Grade Separation 455,000 437,790 13,000 450,790 4,210
Beach TrunkMnott Interceptor Sewer Relief 136,000,000 - - - 136,000,000
Westminster Blvd Force Main Replacement 54,000,000 4,488,574 2,444,100 6,932,674 47,067,326
Rehabilitation of Western Regional Sewers 202,000,000 10,960,026 7,084,400 18.044,426 183,955,574
Interstate 405 Widening Project Impacts on OCSD Sewers 528,000 54,819 39,400 94,219 433,781
Seal Beach Pump Station Replacement 78,900,000 - 485,600 485,600 78,414,400
Los Alamitos Sub-Trunk Extension 66,000,000 - - - 66,000,000
Newport Force Main Rehabilitation 58,367,238 58,264,373 102,900 58,367,273 (35)
Crystal Cove Pumping Station Upgrade and Rehabilitation 17,900,000 - - - 17,900,000
Bay Bridge Pump Station Replacement 64,000,000 876,689 512,000 1,388,689 62,611,311
Newport Beach Pump Station Odor Control Improvements 4,066,000 - 30,700 30,700 4,035,300
District 6 Trunk Sewer Relief 7,965,000 5,644,126 2,080,300 7,724,426 240,574
Gisler-Red Hill Trunk Improvements-ReachB 25,213,000 23,057,459 2,155,600 25,213,059 (59)
MacArthur Pump Station Rehabilitation 13,100,000 - - - 13,100,000
Main Street Pump Station Rehabilitation 60,400,000 - - - 60,400,000
Gisler-Red Hill Interceptor Rehabilitation 14,800,000 - - - 14,800,000
Edinger Bolas Chica Trunk Improvements 5,159,000 - - - 5,159,000
Edinger Pump Station Upgrade and Rehabilitation 14,100,000 - - - 14,100,000
Slater Avenue Pump Station Rehabilitation 25,300,000 - - - 25,300,000
Small Construction Project;Program-Collections 10,033,000 1,906,878 165,600 2,072,178 7,960,522
Planning Studies Program-Collections 4,793,800 2,692,376 80,100 2,772,476 2,021,324
Research Program-Collections 154,000 13,396 7,500 20,896 133,104
SARI Rock Stabilizers Removal 6,860,000 754,576 1,557,900 2,312,476 4,547,524
Bay Bridge Pump Station and Force Mains Rehab Study 725,000 564,695 163,400 728,095 (3,095)
Additional Charges to CIP Closed at 6130/18 12,900 12,900 (12,900)
Subtotal-Collections Facilities 1,OO7,149,038 148,606,724 32,766,200 181,372,924 825,776,114
Revenue Area 14,
Newport Force Main Rehabilitation(2.18%) 1,300,762 1,298,470 2,300 1,300,770 (8)
Subtotal-Revenue Area 14 1,300,762 1,298,470 2,300 1,300,770 (8)
Total Collection System Improvement Projects 1,008,449,800 149,905,194 32,768,500 182,6T3,694 825,776,106
(Continued)
Section 3-Page 6
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Three Months Ended September 30,2018
Current Total
Approved June 30,2018 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2019 Budget
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 370,000,000 12,489,150 9,292,400 21,781,550 348,218,450
Trunk Line Odor Control Improvements 9,299,000 9,091,812 207,200 9,299,012 (12)
Headworks Modifications at P2 for GWRS Final Expansion 54,000,000 2,443,746 3,632,800 6,076,546 47,923,454
Subtotal-Headworks 433,299,000 24,024,708 13,132,400 37,157,108 396,141,892
Primary Treatment
Primary Clanfers Replacements and Improvements at P1 106,000,000 520,752 - 520,752 105,479,248
Primary Clanfer Reliability Improvements at Plant No. 1 21,500,000 - 212,700 212,700 21,287,300
Primary Treatment Rehabilitation at Plant 245,000000 10,053,689 4,551,300 14,604,989 230,395,011
BIG-Side Primary Clarifiers Rehabilitation at Plant 2 249,560.000 249,560,000
Subtotal-Primary Treatment 622,060,000 10,574,441 4,764,000 15,338,441 606,721,559
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 7,900,000 730,862 117,900 848,762 7,051,238
Activated Sludge Aeration Basin Deck Repair at Plant 2 2,800,000 1,297,544 1,191,300 2,488.844 311,156
Return Activated Sludge Piping Replacement at Plant 12,750000 179,514 893,600 1,073,114 11,676,886
Subtotal-Secondary Treatment 23,450,000 2,207,920 2,202,800 4,410,720 19,039,280
Solids Handling&Digestion
Digester Rehabilitation at Plant 1 66,000,000 65,537,473 98,500 65,635,973 364,027
Sludge Dewatering and Odor Control at Plant 1 199,500,000 174,764,587 14,681,100 189,445,687 10,054,313
Plant No.2 Digester Facilities Rehabilitation 20,000,000 810,472 2,089,500 2,899,972 17,100,028
Sludge Dewatering and Odor Control at Plant 2 90,477,000 68,807,979 11,907,900 80,715,879 9,761,121
Interim Food Waste Receiving Facility 6,300,000 68,680 403,100 471,780 5,828,220
Digester P,Q,R,and S Replacement 166,000,000 166,000,000
Subtotal-Solids Handling&Digestion 548,277,000 309,989,191 29,180,100 339,169,291 209,107,709
Ocean Oulfall Systems
Ocean Outfall System Rehabilitafion 166,000,000 25,028,649 9,357,000 34,385,649 131,614,351
Subtotal-Ocean Outfall Systems 166,000,000 25,028,649 9,357,000 34,385,649 131,614,351
Utility Systems
UPS System Upgrades 4,700,000 - - - 4,700,000
Digester Gas Facilities Rehabilitation 96,500,000 1,553,893 4,212,100 5,765,993 90,734,007
Natural Gas Pipelines Replacement at Plants 1 and 2 1,310,000 74,297 87,300 161,597 1,148,403
Electrical Power Distribution System Improvements 34,608,000 - 189,000 189,000 34,419,000
(Confined)
Section 3-Page 7
FY 2018-19 First Quarter Report
Summary of Capital Improvement Construction Requirements-Project Life
For the Three Months Ended September 30,2018
Current Total
Approved June 30,2018 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2019 Budget
Utility Systems(continued)
Central Generation Rehabilitation at Plant 1 87,000,000 - - - 87,000,000
Unintermptable Power Supply Improvements at Plant 1 4,800,000 18,927 4g300 63,227 4,736,773
Consolidated Demolition and Utility Improvements at P2 31,000,000 13,119,376 14,184,000 27,303,376 3,696,624
Central Generation Rehabilitation at Plant 2 114,000.000 114,000,000
Subtotal-Utility Systems 373,918,000 14,766,493 18,716,700 33,483,193 340,434,807
Process Related Special Projects
Safety Improvements Program 19,000.000 4,606,887 5,279,100 9,885,987 9,114,013
Subtotal-Process Related Special Projects 19,000.000 4,606,887 5,279,100 9,885,987 9,114,013
Information Management Systems
Process Control Systems Upgrades 46,000,000 - - - 46,000,000
Project Management Information System 4,000,000 771,962 1,294,800 2,066,762 1,933,238
SCADA System and Noreen,Upgrades 5,000,000 4,376,218 623,800 5,000,018 (18)
Information Technology Capital Program 10,000,000 1,01 1,328,300 2,424,748 7,575,252
Geographic Informaton System 4,568,000 2,762,896 332,800 3,095,696 1,472,304
EAM Software and Process Implementation 7,500,000 4,975,483 579,700 5,555,183 1,944,817
Process Control Systems Upgrades Study 3,554,000 432,168 1,609,100 2,041,268 1,512,732
Subtotal-Information Management Systems 80,622,000 14,415,175 5,768,500 20,183,675 60,438,325
Strategic S Master Planning
Planning Studies Program 23,858,200 9,880,440 7,126,500 17,006,940 6,851,260
Climate Resiliency Study 590,000 14,511 271,200 285,711 304,289
Subtotal-Strategic B Master Planning 24,148,200 9,894,951 7,397,700 17,292,651 7,155,549
Water Management Projects
GWRS Final Expansion Coordination 1,132,000 93,576 179,500 273,076 858,924
Subtotal-Water Management Projects 1,132,000 93,576 179,500 273,076 858,924
Research
Research Program 8,346,000 315,847 2,310,000 2,625,847 5,720,153
Subtotal-Research 8,346,000 315,847 2,310,000 2,625,847 5,720,153
(ConBnuetl)
Section 3-Page 8
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2018
Current Total
Approver) June 30,2018 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2019 Budget
Support Facilities
Small Construction Projects Program 30,015,000 8,663,223 9,991,600 18,654,823 11,360,177
Fleet Services UST Leak Remediation at Plant 1 14,952,000 290,896 13,600 304,496 14,647,504
Operations&Maintenance Capital Program 15,622,000 856,510 735,200 1,591,710 14,030,290
18350 Mt.Langley Building Purchase and Improvement 11,000,000 9,852,057 27,500 9,879,557 1,120,143
Title 24 Access Compliance and Building Rehab Project 18,400,000 15,434,337 2,616,200 18,050,537 349,463
Headquarters Complex and Site Security at Plant l 179,067,000 2,488,272 26,045,500 28,533,772 150,533,228
Plant Warehouse Relocation 9,800,000 - 66,800 66,800 9,733,200
Plant Collections Yard Relocation 1,840,000 - - - 1,840,000
TPAD Digester Facility at Plant 2 405,100,000 405,100,000
Subtotal-Support Facilities 685,796,000 37,585,295 39,496,400 77,081,695 608,714,305
Others
Banning Gale Relocation and Grading at Plant 2 2,931,000 - - - 2,931,000
Perimeter Screening at Plant 2 2,800,000 35,032 67,700 102,732 2,697,268
Capital Improvement Program Management Services 300,000 101,379 600 101,979 198,021
Subtotal-Others 6,031,000 136,411 68,300 204,711 5,826,289
Additional Charges to Cl P Completed at M0118 22,400 22,400 (22,400)
Total Treatment and Disposal Projects 2,992,379,200 453,639,544 137.874,900 591,514,444 2,400.864,756
Capital Equipment Purchases 9,593,700 3,582,400 3,582,400 6,011,300
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $4,010,422,➢00 $603,544,738 $174,225,800 $777,770,538 $3,232,652,162
Section 3-Page 9
FY 2018-19 First Quarter Report
This Page Intentionally Left Blank
Section 3 - Page 10
Capital Assets Schedule & Debt Service Budget Review
Capital Assets Schedule
For the Three Months Ended September 30, 2018
Capital Facilities Budget Review
Balance Year-to-Date Balance
07f01118 Activity 6130/19
CONSTRUCTION IN PROGRESS:
Treatment Plant $ 356,575,569 $ 34,502,573 $ 391,078,142
Collection System 71,420,281 1,749,648 73,169,929
Subtotal 427,995,850 36,252,221 464,248,071
PROPERTY,PLANT&EQUIPMENT tat cost):
Land and Property Rights 29,741,243 - 29,741,243
Collection Lines and Pump Stations 860,710,368 - 860,710,368
Treatment Facilities 2,477,357,509 - 2,477,357,509
Ef0uent disposal facilities 97,014,820 - 97,014,820
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 253,129,772 - 253,129,772
Excess purchase price over book value on acquired assets 19,979,000 19,979,000
Subtotal 3,741,395,948 3,741,395,948
Total Properly,Plant&Equipment&CIP $ 4,169,391,798 $ 36,252,221 $ 4,205,644,019
Debt Service Budget Review
2018-19 Year-to-Date Remaining
Budget Payments %of Budget Budget
Principal Payments by Debt Issue:
2009A COP 4,690,000 - 0.00% 4,690,000
2010A BABs - - 0.00% -
2010CBABs - - 0.00% -
2011ACOP - - 0.00% -
2012ACOP - - 0.00% -
2012BCOP 19,920,000 - 0.00% 19,920,000
2014A COP 7,045,000 - 0.00% 7,045,000
2015A COP - - 0.00% -
2016ACOP - - 0.00% -
2016BCANs 7,488,968 - 0.00% 7,488,968
2017A COP 0.00%
Subtotal Principal Payments 39,143,968 0.00% 39,143,968
Interest Expense by Debt Issue:
2009A COP 234,500 58,650 25.01% 175,850
2010A BABs 2,897,639 993,008 34.27% 1,904,631
2010C BABs 6,523,780 2,235,763 34.27% 4,288,017
2011ACOP 3,348,350 837,175 25.00% 2,511,175
2012A COP 3,735,900 934,050 25.00% 2,801,850
2012E COP 3,187,400 796,800 25.00% 2,390,600
2014A COP 3,918,750 979,675 25.00% 2,939,075
2015A COP 6,375,500 1,593,850 25.00% 4,781,650
2016A COP 6,977,300 1,744,350 25.00% 5,232,950
2016B CANs 802,410 549,300 68.46% 253,110
2017A COP 3,318,500 829,650 25.00% 2,488,850
Subtotal Interest Expense 41,320,029 11,552,271 27.96% 17,011,198
Total Debt Service $ 80,463,997 $ 11,552,271 14.36% $ 56,155,166
Section 4- Page 1
2018-19 First Quarter Report
This Page Intentionally Left Blank
Section 4 - Page 2
Self Insurance Budget Review
General Liability and Property Fund Budget Review
For the Three Months Ended September 30,2018
Percent
Actual of Budget Remaining Actual
2018.19 Through Through 2018-19 Through Increase
Budget 9130118 9130/18 Budget 9/3e/17 (Decrease)
Revenues:
In-Lieu Premiums $ 1,299,300 $ 324,825 25.00% $ 974,475 $ 527,718 $ (202,893)
Miscellaneous Other Revenue 10,000 - 0.00% - 3,532 (3,532)
Service Department Allocations 20,000 (774) -3.87% 20,774 4,674 (5,448)
Total Revenues 1,329,300 324,051 24.38% 995,249 535,924 (211,873)
Expenses:
Benefits/Claims 350,000 - 0.00% 350,000 2,500 (2,500)
Legal Services 40,000 - 0.00% 40,000 1,938 (1,938)
Professional Services 10,000 0.00% 10,000
Subtotal 400,000 - 0.00% 400,000 4,438 (4,438)
Policy Premium Expense 1,300,000 319,224 24.56% 980,776 300,528 18,696
Total Expenses 1,700,000 319,224 18.789/6 1,380,776 304,966 14,258
Excess Revenue(Expense) (370,700) 4,827 $ (385,527) 230,958 (226,131)
Beginning Reserves 55,370,700 55,367,246 54,445,772 921,474
Ending Reserves $55A00,000 $55,372,073 $ 54.676.730 $ 695,343
Section 5-Page 1
FY 2018-19 First Quarter Report
Workers'Compensation Fund Budget Review
For the Three Months Ended September 30, 2018
Percent
Actual of Budget Remaining Actual
2018-19 Through Through 2018-19 Through Increase
Budget 9/30118 9/30/18 Budget 9130117 (Decrease)
Revenues:
In-Lieu Premiums $ 586,600 $ 146,650 25.00% $ 439,950 $ 138,582 $ 8,068
Service Department Allocations - 27,174 N/A (27,174) - 27,174
Total Revenues 586,600 173.824 29.639(. 412,776 138,582 35,242
Expenses:
Benefits/Claims 420,000 89,848 21.39% 330,152 72,623 17,225
Legal Services 80,000 5,388 6.74% 74,612 5,937 (549)
Professional Services 60,000 18,473 30.79% 41,527 18,473
Subtotal 560,000 113,709 20.31% 446,291 78,560 35,149
Policy Premium Expense 200,000 54,832 27.42% 145,168 51,628 3,204
Total Expenses 760,000 168,541 22.18% 591,459 130,188 38,353
Excess Revenue(Expense) (173,400) 5,283 $ (178,683) 8,394 (3,111)
Beginning Reserves 2,173,400 2,085,542 2,464,418 (378,876)
Ending Reserves $ 2.000. 000 $ 2.090.825 $ 2.472.812 $ (381.9871
Section 5-Page 2
mx
a
F'J p
October 31, 2018
STAFF REPORT
Quarterly Treasurer's Report
For the Three Months Ended September 30, 2018
SUMMARY
Section 15.0 of the Sanitation District's Investment Policy includes quarterly reporting
requirements for the Sanitation 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 Sanitation District's external money manager.
The ongoing monitoring of the Sanitation District's investment program by staff and Callan
Associates, the Sanitation District's independent investment advisor, indicates that the
Sanitation District's investments are in compliance with the Sanitation 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 Sanitation District to meet budgeted expenditures for the next six
months. The Sanitation 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
Sanitation District's portfolios, as of September 30, 2018. The Liquid Operating Monies
portfolio, with an average maturity of 80 days, consists entirely of high quality fixed income
investments consistent with the Sanitation District's investment policy.
Portfolio Performance Summary
The following table presents a performance summary of the Sanitation District's portfolios
as compared to their benchmarks for the period July 1 through September 30, 2018.
OCSD ♦ P.O.Box8127 ♦ Fountain Valley,CA 92]2M12] ♦ (716)%2-2411
Quarterly Treasurer's Report
For the Three Months Ended September 30, 2018
Page 2 of 4
Portfolio Performance Summary
Quarter Ended September 30,2018
Liquid Operating Monies(%) Long-Term Operating Monies(%)
Total Rate of Total Rate of
Return Benchmark') Return Benchmark")
3 Months 0.52 0.49 0.27 0.20
6 Months 0.97 0.95 0.52 0.37
9 Months 1.32 1.30 0.19 -0.08
12 Months 1.61 1.59 -0.05 -0.40
Annualized Since inception 30 Nov 2014 0.76 0.66 0.90 0.78
Market Value $75.2 M $462.1 M
Average Quality "AA+•rAal" 'AA"I-Aa1'
Current Yield(%) 1.8 2.1
Estimated Yield to Maturity(%) 2.3 2.9
Quarterly Deposits(Withdravals) ( 81.5 M) OM
Estimated Annual Income $1.7 M $10.1 M
(1) Benchmarks:
• Liquid Operating Portfolio: ICE BAML 3-Month Treasury Bill Index
• Long Term Operating Portfolio: ICE BAML Corp/Govt. 1-5 Year Bond Index
Portfolio Market Values
Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the
attached bar chart.
Liquid Long-Term
Quarter Operating Operating
Ending Monies($M) Monies($M)
31 Dec.17 145.5 396.6
31 Mar.18 92.9 412.8
30 Jun.18 156.1 460.8
30 Sep.18 75.2 462.1
Quarterly Treasurer's Report
For the Three Months Ended September 30, 2018
Page 3 of 4
The Sanitation District's Investment Account Balances as of September 30, 2018
Book Balances Estimated
Investment Accounts September 30,2018 Yield(%)
State of California LAIF $52,566,663 2.06
Union Bank Checking Account 51,038 0.25
Union Bank Overnight Sweep Account 172,519 1.81
Banc of California Checking Account 50,000 0.85
Banc of California Overnight Sweep Account 2,782,939 0.20
Union Bank W/C Checking 66,795 0.25
Banc of California W/C Checking 119,826 0.85
Union Bank Mount Langley Account 249,969 0.80
Union Bank Bandilier Account 80,583 0.80
Chandler—Short-term Portfolio 74,915,852 2.25
Chandler—Long-term Portfolio 459,971,998 2.85
Petty Cash 3,000 N/A
BNY Mellon OCIP Reserve 3,616,386 0.87
TOTAL 594 64]56 2.68
Debt Service Reserves w/Trustees S4254,05Z 1.95
The Sanitation District's Cost of Funds on Debt Issues as of September 30, 2018
Annual
Cost of Funds Outstanding Interest
Issue Description COP Balance Rate(%)
2009A Fixed $4,690,000 4.72
2010A Fixed 80,000,000 3.68
2010C Fixed 157,000,000 4.11
2011A Fixed 75,370,000 2.61
2012A Fixed 100,645,000 3.54
2012E Fixed 66,395,000 1.50
2014A Fixed 78,375,000 2.34
2015A Fixed 127,510,000 3.30
2016A Fixed 145,880,000 3.02
2016E Fixed 109,875,000 0.87
2017A Fixed 66.370.000 2.55
TOTAL $1 012 110 000
Weighted Avg.Cost of Funds 2.89
Quarterly Treasurer's Report
For the Three Months Ended September 30, 2018
Page 4 of 4
ATTACHMENTS
1. Chandler Quarterly Report
2. Summary of Performance Data and Portfolio Statistics — Liquid Operating Monies
3. Summary of Performance Data and Portfolio Statistics — Long Term 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
Account
8. Investment Listing (Yield Analysis Report)
9. Asset Detail — Consolidated
10. Custody Transaction History—Consolidated
11. Callan Quarterly Review
12. Chandler Quarterly Review
13. Rating Agency Comparisons
C/" CHANDLER
ASSET
MANAGEMENT
September 30, 2018
Mr. Lorenzo Tyner
Assistant General Manager
Director of Finance and Administrative Services
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Lorenzo,
Bond Market Recap
As expected, the Federal Open Market Committee (FOMC) voted to raise the fed funds target
rate by 25 basis points to a range of 2.00%-2.25% at the September 26th meeting. The vote was
unanimous, including a vote from the new Board of Governors Vice Chair, Richard Clarida. The
Fed raised its median forecast for GDP growth in 2018 and 2019 and left its forecasts for
unemployment and inflation relatively unchanged. The Fed also kept its fed funds rate forecasts
unchanged with the exception of the longer-run target which increased slightly to 3.0%.The Fed's
forecast points to one more fed funds rate hike this year and three more hikes next year. Once
again, in its policy statement, the FOMC noted that economic activity has been rising at a"strong
rate" and policymakers expect that further gradual increases in the fed funds rate will be
appropriate. The FOMC continues to believe risks to the economic outlook are roughly balanced.
Market participants believe there is a very high probability that there will be another rate hike in
December.
Although the labor market is strong and consumer confidence remains high, we do not believe
the economy is close to overheating. The Core PCE Index suggests that inflation is in line with
the Fed's 2.0% target. Market participants are forecasting annualized GDP growth of about 3.0%
in the third quarter, 2.8% in the fourth quarter, and 2.5% next year.
Treasury yields increased in September.At month-end,the 2-year Treasury yield was up 19 basis
points to 2.82%, while the 10-year Treasury yield was up 20 basis points to 3.06%. The spread
between 2- and 10-year Treasury yields remained narrow at just 24 basis points at month-end.
Over the past 20 years, the average spread between 2- and 10-year Treasuries has been about
140 basis points.We foresee an upward bias to rates across the Treasury yield curve but believe
that the yield curve will remain quite flat over the intermediate-term.
C/" CHANDLER
ASSET
MANAGEMENT
Consumer Prices
The Consumer Price Index (CPI) was up 2.7% year-over-year in August, versus up 2.9% year-
over-year in July. Core CPI (CPI less food and energy) was up 2.2% year-over-year in August,
down from 2.4% year-over-year in July. The Personal Consumption Expenditures (PCE) index
was up 2.2%year-over-year in August, down slightly from 2.3%year-over-year in July. Core PCE
(excluding food and energy) was up 2.0% on a year-over-year basis in August, unchanged from
2.0% in July. Core PCE inflation, which is the Fed's primary inflation gauge, remains in line with
the Fed's 2.0%target.
Retail Sales
On a year-over-year basis, retail sales were up 6.6% in August, versus up 6.7% year-over-year
in July. On a month-over-month basis, retail sales increased just 0.1% in August, following an
upwardly revised increase of 0.7% in July. Strong sales in July were somewhat offset by softer
trends in August, but the overall pace of consumer spending in the third quarter appears solid.
Labor Market
U.S. payrolls rose by 134,000 in September, below the consensus forecast of 185,000. However,
July and August payrolls were revised up by a total of 87,000. On a trailing 3-month and 6-month
basis payrolls increased by an average of 190,000 and 203,000 per month, respectively, more
than enough to absorb new entrants into the labor market. The unemployment rate declined
further in September to 3.7% from 3.8% in August. The labor participation rate was unchanged
month-over-month at 62.7%.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, increased to 7.5% from 7.4% in August. Wages rose 0.3% in September on a month-
over-month basis, in line with expectations. Wages were up 2.8% on a year-over-year basis in
September,versus up 2.9%year-over-year in August. The average workweek was unchanged at
34.5 hours. Overall,the September employment report indicates the labor market remains strong,
and there is steady but modest upward pressure on wages.
Housing Starts
Total housing starts increased 9.2% in August. Single-family starts increased 1.9% in August
while multi-family starts surged 29%. However, permits fell 5.7% in August. Housing data tends
to be volatile on a month-over-month basis. Broadly speaking, the housing sector is facing a few
different headwinds including supply constraints, rising mortgage interest rates, and a shortage
of skilled labor.
2
C/" CHANDLER
ASSET
MANAGEMENT
TREASURYYIELDS 913012018 6/3012018 CHANGE
3 Month 2.20 1.92 0.28
2 Year 2.82 2.53 0.29
3 Year 2.88 2.62 0.26
5 Year 2.95 2.74 0.21
7 Year 3.02 2.82 0.20
10 Year 3.06 2.86 0.20
30 Year 3.21 2.99 0.22
Economy Growth Remains Favorable
ECONOMIC INDICATOR Current Release Prior Release OneYear Ago
Trade Balance (53.2)$BIn AUG 18 (50.0)SBIn JUL 18 (44.2)$BIn AUG 17
GDP 4.2%JUN IS 2.2%MAR 18 3.0%JUN 17
Unemployment Rate 3.7%SEP 18 3.9%AUG 18 4.2%SEP 17
Prime Rate 5.25%SEP 18 5.0%AUG 18 4.25%SEP 17
CRB Index 195.165EP 18 192.96 AUG 18 183.09 SEP 17
Oil(West Texas Intl $73.25 SEP 18 $69.80 AUG 18 551.67 SEP 17
Consumer Price Index(y/o/y) 2.7%AUG 18 2.9%JUL 18 1.9%AUG 17
Producer Price Index(y/o/y) 3.0%SEP 18 3.6%AUG 18 3.3%SEP 17
Dollar/Euro 1.16 SEP 18 1.16 AUG 18 1.18 SEP 17
Source:Bloomberg
3
C/" CHANDLER
Asser
MANAGEMENT
Performance Attribution
Long-Term Portfolio
The portfolio outperformed during the quarter, generating a total return of 0.27% compared to the
0.20% return for the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government
AAA-A Index, a positive differential of 0.07%. From a sector allocation perspective, the out of
benchmark allocation to the Asset Backed sector, as well as the mix of securities making up the
Corporate allocation, were additive to the relative performance differentiation of the portfolio.
From a maturity distribution perspective, the out of benchmark positioning in securities with
maturities shorter than the benchmark were additive to the results of the portfolio.
The Chandler team added several securities to the portfolio in the Treasury, Agency, Asset
Backed and Corporate sectors of the market to keep the portfolio structure in-line with Chandler
targets. The purchased securities ranged in maturity from October 2018 to July 2023. Four
securities matured during the reporting period to facilitate the new holdings in the portfolio. The
sector allocation remained relatively stable. Some of the notable adjustments include the 1.9%
increase in the Asset Backed allocation,to 9.0%of the portfolio, mostly offset by the 1.8%decline
in the Commercial Paper allocation, to 1.9%of the portfolio. The duration of the portfolio modestly
contracted, currently 2.37 compared to 2.43 at the end of the prior reporting period. The Chandler
team would like to increase the duration of the portfolio, but preferably in the Corporate sector,
and the team remains patient in adding exposure to new names in the portfolio with the
appropriate level of spread compensation.
Liquid Portfolio
The portfolio outperformed the ICE Bank of America Merrill Lynch 3 Month Treasury Bill Index by
0.03%, generating a return of 0.52% versus 0.49% for the benchmark. Multiple securities were
purchased across the Treasury, Agency, Supranational, Certificate of Deposit and Corporate
sectors to keep the portfolio fully invested. The purchased securities ranged in maturity from
August 2018 to April 2019. Many securities matured and a net$81.5 million was withdrawn from
the portfolio during the reporting period. The sector allocation evolved with the large liquidity
needs during the reporting period. Notably the Treasury allocation remains higher than the
historical experience due to the increased issuance of the Treasury sector, improving valuations,
offset by the light funding needs of both Fannie Mae and Freddie Mac, which is leading to
unattractive valuations in the Agency sector. The duration of the portfolio modestly increased, as
the next forecasted liquidity need is not until January 31, 2019.
4
C/" CHANDLER
Asser
MANAGEMENT
Economic Outlook
The global economic backdrop remains bifurcated with better performance in developed market
assets, in particular the US, and more pronounced weakness in emerging markets. The gradual
normalization of domestic monetary policy is contributing to the downward pressure on emerging
market currencies. So far this year the Federal Reserve has increased the Fed Funds rate three
times, 0.25% per quarter, to a current target of 2.00% to 2.25%. The normalization of monetary
policy domestically is in stark contrast to other developed market central banks, where policy
remains stimulative and the normalization of traditional monetary policy has yet to commence.
The US Treasury curve has continued to move higher and flatten, with short tenor interest rates
moving higher than longer tenor interest rates, as fears of accelerating inflation remain muted
keeping longer tenor interest rates contained despite the aforementioned increase in the Fed
Funds rate.
Risk assets performed well in the third quarter, recovering from the lackluster performance in the
second quarter of this year. Domestic equity market performance was strong and credit spreads
moved modestly tighter as the economic data in the US remains constructive. Although the three-
month moving average on non-farm payrolls decelerated to 190k per month, compared to a three-
month moving average of 217k at the end of June, the pace of job growth remains comfortably
above the amount required to continue to put downward pressure on the unemployment rate. The
traditional measure of unemployment, the U-3 rate, edged down 0.3% to 3.7% at the end of the
quarter, while the U-6 unemployment rate, which includes part time and marginally attached
workers, also moved lower by 0.3% to 7.5%. Wage inflation, which Chandler quantifies as
average hourly earnings on a year over year basis, increased by 0.1% to 2.8% compared to the
2.7% reading at the end of June. Wage inflation continues to underwhelm compared to the
historical experience when the U-3 unemployment rate was below 4.0% and remains a
conundrum for Federal Reserve policy going forward. In light of current demographic trends and
the low US labor force participation rate, most recently reported at 62.7%, the U-6 unemployment
rate may be a better indicator of the overall employment situation with the current reading above
levels typically associated with accelerating wage inflation. Although the price of oil firmed in the
quarter with the escalation of geopolitical conflicts, other commodity prices remained soft, in
particular copper, traditionally a leading indicator of global economic growth.
Somewhat surprising to the Chandler team, financial conditions domestically remain
accommodative despite the overall increase in interest rates, the continued shrinkage of the
Federal Reserve's balance sheet(which will increase to$50 billion per month starting in the fourth
quarter), increased Treasury issuance to fund the tax cuts and growing deficit, and the tightening
of financial conditions outside the US. The Chandler team questions how much longer financial
conditions can remain accommodative domestically given the divergent trends in Europe and
Asia. With the Fed Funds rate finally above 2.0%, and another 0.25% increase expected by
market participants in December, the'cost' of money and the overall increase in interest rates will
ultimately tighten financial conditions. However, until financial conditions tighten domestically,the
Federal Reserve will be reluctant to alter the current pace of monetary policy normalization.
5
C/" CHANDLER
Asser
MANAGEMENT
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Increase the allocation to the Corporate sector
o The current allocation is 24.5%; the Chandler team would like to add one or two
additional names to the portfolio to bring the total allocation above 26.0%.
o The team would prefer to add exposure to new names with attractive relative
valuations and stable to improving fundamentals as opposed to addition to
exposure in existing names and/or positions.
• Continue to expand the Asset Backed allocation to be above 10.0% of the total portfolio.
Ideally the exposure would be obtained via the new issue market.
• Assuming issuance increases in the primary market, add to the Supranational asset
allocation of the portfolio.
• Increase the overall duration of the portfolio to be closer to the benchmark considering
the drift lower in the interest rate sensitivity of the portfolio in the third quarter.
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, and Commercial Paper exposure to the
portfolio where the additional spread compensation versus like maturity Treasury notes
is attractive.
• Maintain a dedicated exposure to the Treasury sector on an ongoing basis to ensure
ample liquidity in the portfolio.
6
C/" CHANDLER
ASSET
MANAGEMENT
Compliance Issue3
Orange County Sanitation Dlstriet Long Term
September30,2018
COMPLIANCEPOLICY
Asset marmil by Charster-Assef Managementare in Nn compliance riM a(ak lawantl wth the invasbnanlpdicy
Category Sbndand Comment
Treasury bsuea 5yearamnsnporilyl Minimum allocation of 10% Complies'
US,Agencies 20%maxissueq 5yearsmaxmarvit, Complies
SuprareYonal 'WraredarbeearbyriNFill 30%matlnuq 5,commax an"Aly, USGEemmlreWeenarunsecued Complies
Corporab(MRJa) W rated or bellerlorg term debt bya NR5R W%matlmvn;5%maxissrer; 5yeammaxmaWnty, issued Complies
b w onstoreo ariIDE aMa director wrial U.S.orisaraE tie sib Institutions lwrpedb Ne U.S.
Municipal Secubees 'A'road orN Mr aNRSR0;10%nature ; 5%muisaper 5 mount, Complies
Asset Budi CMOsr Madge 'AA'ranal or better bye ril -A"or higher issuer aide bye Nitri 20%maumum; 5%max issuer Complies'
backed emludl comparable), maWd
N,.Iabla CDs 'A'raided or paper lone term debt by a NRSR0;or'A-1"I lightest darn term rNrO by a NRSRQ 30% Complies
andichomp, max Issuer,5years max maWnty
CBNficates M Deposit 5%maxiesuer; 5Mrs mere malarl Secured/ lWletl..d Complies
Banker's Acce brcea A-1 rat"ore uiwHnalwrllerm paing bad pli 40%meumvn; 5%norpridapper,180dayarresprodurps Complies
Commer Paper A-lral darequitWnsMrllermadebya NRSRO', "A"orbefterloreterm EeMissuerbya NRSRO', issued Complies
by a domestic mPorz4onorgariard and Cperzde in une US wiNAUM>$500milion; 25%mammup, 5%
max eq 270 day, memory
Mup¢IFvrlBMorey Market Highest turn,or'AAAmreed by per NRl SEC registered adnsar xiN AUM 4500 notion and Complies
billFw etpedeneegtaRr Nan5yaam;la%MrOMMu IF"; 20%mornerissleron Morey Markel MUWaI
Foods'20%psa lde Districts our.mo
Re vcYmee Amayearmand, 102%colateraliuell Complies
Rererse Repurchase A re moms 5%madmorn.90 days max parrunt, Complies
LAIF Not usdob imreebneril advaer Com lies
OCP Not part b imesaoeM admier Complies
A D,t,n Nor W eased 80 marthe-pilto 120%dtle inereMaM Coal
Max Perhaer 5%oi porl paxnaptSu planted U.S.Government Scandal,Mal Ford Complies
Madman bel 5 WarsmWmorn maWl Com Ilea'
'Ipeppdio IonfMymel21)anunnin xNi maurNea geelarMn SYnninclwire W13)WW,aeummi(1])MBS ve meltlaeeaury. AllesuiNneoechnatddh Neprey--
manageranEmmglM.limeIldr ae.
7
C/" CHANDLER
ASSET
MANAGEMENT
GKI Orange County Sanitation Dlab,ldt Liquid
september30,2518
COMPLIANCE WITH INVESTMENT POLICY
Assets monagedhy ChendlerAsset Managementam m Nil compliance win Nate lawand Win Me Invesfinero p011cy
Centel Standard Comment
Tnasu Issues 1 earmaxnaturty, MinmunallocatlonoHO% complies
U.S.A9elxias 20%maxlseoe, lyearma nowarty Complies
SlprarwBotel 'AA-grelorbefterbya NRSR W%madmun; l yearmaxmaturil USD derwmiremd Complies
sonorargoomed unsubosiremd obligatlous issued or upotgitlonslyguantrteed by IBRD,
FC or WDB
Cotponte(MTNa) 'A'rated or better long tern debt bye NRSRO; 30%madmum;5%maxlasuer; lysarmex Compiles
matlaity, Issued bymrporatiom otgamosL and opentitg Mdint5a U.S.or issued by
depositerviroltobcaslicensed bme U.S.
Asset Backadl CMOs 'AA-ratedorbefterbyarilgl "A-mirgMrlssuerraUrgbyarIll 20%maNmuml Complies
5%maxlssuer, 1 yearmaornaftift
Negotable CDs 'A'ntetl orbetter long term debt bye NRSRO;or-A-1'l HgbestsMrtterm nEtg bye Complies
NRSRO' 30%minus 5%maxissuar lwarmaxinialarittv
Gertlflcates of Deposit 5%maxlssuen1yearmaxmatudtg Secuetllcolaterelised Complies
Banker's Acceptances A-1 afed or equivalent short term rating by a NRSROI 40%maNmum; 5%max Issuer.180 Complies
clasemaxonaturty
Commercial Paper A-1 rated or equivalent stnrttem ra0g by a Nl 'A'or better big tam cataloguer bye Complies
NRSRO; Mood bye domestic cotpombon orgatired and oparl intne US wtl>
$500mlllon; 25%matlmurw 5%maxlssuer; 270daysmaxmatud
MWSIFud&Money Market Mutual Furl Higbestn4ngor"AoXnated bytm NRSROs;SEC registered ac Asersith AUM>$500 Complies
million and experience gnaterdan 5 year,10%per one Mutual Fuld; 20%maxper issuar on
More MarkatMWal Fuss; 20%maxoftle Dieoasaur Io,mene
Re urcteae Agreements 102%collatenlvtlmn Complies
fawn.Re uMsaeA nementa 5%madmum 90 days max maturity complies
IAF Not usedb Investment adl Complies
OCIP Not usetlb imeshnentadNser Creadas
PmHbifed Munici ISecudtles Complies
PIOHblfed MO a .Seeordes Complies
A Duration Nottosesee,1180dess, Maxdfirgdticmoofll2year complies
Max Perrouar 5%a rttolio exce tSu mreJomis U.S.Goemnent A erpes Mutual Fud complies
limsdrounloinorittv 1 mead Complies
8
C/" CHANDLER
ASSET
MANAGEMENT
CA I OCSD Lehman Exposure
septamber30,2016
COMPLIANCEPOLICY
Asaels managed by CEandlerAsset Managemantare in NII eomptlance pith stare lawand eftb the(nvearem nrpollcy
Category Standard Camm•n,
Treasu bsues 5aa mNri Complies
SUp2n3tl01rel "M"or better by 10f 3 NRSROS; 30%therma : 5%max 6years maturity. Inclades only ACE. Complies
IBM,am IFC per CGC
U.S.Against. 20%mex issuer S ware maximum matai Complies
U.S.corporate MTNs "A"or better am term rating by I of 3 NRSR0s; 30%maximum;5%max issuer; 5 year,max marry Comil
Municipal Sesubes "A"arhi herb 1 sl 10%neadmium 5uArraxissuar' S matun Coal
Asset BackedlCMCed "M"or better by l of 3 NRFbZs; "A"or hlgherissuer hi by l of 3 NMR0sm20%maximum; 5% Complies
Morawage4all mexissuer bassludin,MBSismytsell 5 are martarty
Negotiable CDs "A'orbotlronitsbMg nndebtbylof3NRSRQ ; 'ALP1"orngleanstartteanmbe,sbylof3 Complies
NMROs; 3l)%maddmum;6%m..i.sde,,. 5whimarram,matin
CDsrTDS 5%mex issuer 5 yeard max makints, Complies
Bankets Acceptances A-1,or"Jralerd highest shod term rating by l of 3 NRSROS; 40%maximum; 5%max Issuer;180 Complies
ease maturity
Commercial Paper A-1,or egJrsleM by l of3 NRSROS; "A"orbaderby l of3 NRSROs,iflorg term debtissued; 25% Complies
maximum' S%max issuer' 270 does max matultv
Morey Market Fund Highest rhati by 2of 3 NRSRO9; 20%maxinalm;10%mex issuer Complies
Re urohaseA reemerds 102%collatemloation Complies
Reverse Replachase 5%maximum,90 days max maturity Complies
A reandrds
LAIF Not dead by Investment adaser Complies
Aw Duration Not to ecead 60 monlhe - 80%te 120%of to bencbmatic Complies
'Mecum holCs$2 million$e Hue(cu¢ip 525ESCBY6)and losso sted fic¢was exap 525E8C1B2)oreessutled Lehman Bmc Holdings that vwe purshacM ley rha swou¢
manapv. Correiedal EmeIXWmb¢e.
9
C/" CHANDLER
ASSET
MANAGEMENT
Defaulted Bonds
OC80 Lehman Exposure-Account#10284 For the Month Ending g/30/2018
wmmw�wocx
sww.+,M �.�� ope Po,moaoa 5o,5dl,da z1,621 11 �z21 sip
1�1
132 sstn
US Corpor xe
555ESCI55 1Id 1.1.11 1 ILnx
I11.1 UNFk
ms64C0V6 m g000,00g00 .111 NrIIA� I,
W 11,W],Ox III
O..x a w 051g55r.Is NR
u5,J0.9
60.W1.N I,fl]tl n.yl
I1 >aa dot
10
C/" CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
September 30,20M vs.June 30,2018
1a.00%
ec W%
so W%
ar'.
3c.W%
IOW%
tO W%
a.00%
A44 M A W NR
ed3W]018 •d3W]%a
HM M A <A NR
09) W18 11.6% 63.8% 14.5% 0.6% 9.5%
0613W19 127% 63.3% 146% 07% am
aou,ce:54P�p
Orange County Sanitation District Liquid
September 30,2018 uJune 30,2018
arr.
ro 00%
ao.om
so W%
ao.ao%
10 uo%
Io.ao%
o%
M M A W NR
e YlMN1B �6IlMl01B
AM M A �A NR
O9130118 45.] 44.6% 8.3% 0.0% 1.3%
OWW10 67.6% 26.7% 5.2% 0.0% 0.6%
8cu,ce8&P�e9
1T
C/" CHANDLER
ASSET
MANAGEMENT
OCSD Investment Program
Quarter End Portfolio Value
$800,000,000 —
� Liquid Operating Monies
$500,000.000 a Long-Term Operating Monies
$400,000,000
$300,000,000
$200,000,000
I I t t
$100,000,000
$- Q Q
`�q
0�4t 0 '7v 77 p g19 s°210 1&eu S .�s�,spa s��0 ;1 1 1 gx �§;7e es&r��
HISTORICAL YIELD CURVE
4.00%
3.02% 3.06% 3.21%
3.00% 2.88% 2.95%
_2.82% ------_ ________________________
2.37
2.20%
2.00%
_____________________________ �SEP 2018
1.00% -- �AUG2018 ___________
7SEP 2017
0.00%
12
Orange County Sanitation District Liquid Portfolio Summary �,"
Account#10282 As of September 30, 2018
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY TOP ISSUERS
Average Modified Duration 0.22 Beg.Values End Values Government of United States 63.1%
asofs/31/18 as of 9/30/18 Federal Home Loan Bank 8.0%
Average Coupon 1.83% Market Value 107,833,985 74,948,329
Accruedlnterest 198,635 228957 MUFG Bank Ltd/NY 4.1%
Average Purchase VTM 2.23% Total Market Value 108,032,620 75,177,285 Toronto Dominion Holdings 4.0%
Average Market TIM 2.25% Income Earned 200,614 154,199 Bank of Montreal Chicago 4.0%
Average S&P/Moody Rating AA+/Aal COnVWD -33,000,000 Royal Bank of Canada 2.7%
Par 107,980,140 75,106,706 International Finance Corp 2.7%
Average Final Maturity 0.22 yrs Book Value 107,831,077 74,954,954 Bank of America Corp 2.0%
Average Life 0.17 yrs Cost Value 107,532,104 74,821,535 Total 90.6%
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY(S&P)
48.8%
tan, 63.1% 504 s.4%45.9%
.(45.M)
.scow 12.1% 40%
es<.m■ 8.3% 30%
N.m.8.0% 20% x811.3%1
tamm nw•'4.1% 10% A I8.3%)
w.' 17%
x 0 0
0-35 13-.5 .5-1 1-1.3 1.5-3 3-3.5 3.5-3 3. M144.fi%
.m MMidl 1.8% Namdly(Yre)
PERFORMANCE REVIEW 1
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS SYRS 10YRS 11/30/2014
Orange County Sanitation District Liquid 0.16% 0.52% 1.32% 1.61% 1.17% 0.92% N/A N/A 0.76%
ICE BAML 3-Month US Treasury Bill Index 0.15% 0.49% 1.30% 1.59% 1.12% 0.84% N/A N/A 0.66%
Chandler Asset Management-CONFIDENTIAL Paee 1 Eremtlon Tlme_10/2/2➢18 63219 AM
Orange County Sanitation District Long Term Portfolio Summary �,"
Account#10268 As of September 30, 2018
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY TOP ISSUERS
Average Modified Duration 2.37 Beg.Values End Values Government of United States 32.3%
asof6/31/18 as of 9/30/18 Federal National Mortgage Assoc 10.5%
Average Coupon 2.05% Market Value 461,006,841 460,354,557
Accrued Interest 1,938,103 1,745,181 Federal Home Loan Bank 6.8%
Average Purchase VTM 2.18% Federal Home Loan Mortgage Corp 6.8%
Total Market Value 462,944,944 462,099,738
Average Market TIM 2.85% Income Earned 828,317 837688 Inter-American Day Bank 3.7%
Average S&P/Moody Rating AA/Aal COnVWD 1,352 Honda ABS 2.7%
Par 468,243,811 469,221,904 John Deere ABS 2.4%
Average Final Maturity 2.74 yrs Intl Bank Recon and Development 2.1%
Book Value 466,374,599 467,406,562 P
Average Life 2.49 yrs Cost Value 466,215,638 467,247,812 Total 67.3%
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY(S&P)
usn.wv 32.3% 25% 24.0%
Apn<v- 23.5% 20.8%
20% MI63A%I
05 Cap-21.fi%
uslllllllllllllllll,9.0%
35% 122o-
7.2% .
su4,.rllllllllllll, 6.9%
m>.vraNr4ll'2.1% 10% BBB I06%I
munlrwq' 1.0% 5% 1 a% Na I9.5%)
sa.B l 1.0%
WO'osss % AAN
0 .25 15-3 .5-1 1-3 3 a 3-4 4-5 5. Au4ssa
masl0.3% Natudlyf ni)
PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M ' YTD 1YR 2YRS 3YRS SYRS 10YRS 11/30/2014
Orange County Sanitation District Long Term -0.18% 0.27% 0.19% -0.05% 0.25% 0.83% N/A N/A 0.90%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index -0.23% 0.20% -0.08% -0.40% -0.06% 0.56% N/A N/A 0.78%
ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx -0.19% 0.28% -0.04% -0.31% 0.11% 0.77% N/A N/A 0.92%
Chandler Asset Management-CONFIDENTIAL Pase 1 Evecutlon nme_10/3/2o1e 6oM10 AM
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
September 30, 2018
Par Value Book Value Market Value Rate Yield
Balance
September 1, 2018 $34,466,663 $34,466,663 $34,466,663 2.06 2.06
Deposits:
9/14/2018 33,000,000 33,000,000 33,000,000 2.06 2.06
Total Deposits 33,000,000 33,000,000 33,000,000 2.06 2.06
Quarterly
Interest
Distribution 2.06 2.06
Withdrawals:
9/6/2018 (3,400,000) (3,400,000) (3,400,000) 2.06 2.06
9/12/2018 (5,500,000) (5,500,000) (5,500,000) 2.06 2.06
9/20/2018 (1,800,000) (1,800,000) (1,800,000) 2.06 2.06
912 612 01 8 (4,200,000) (4,200,000) (4,200,000) 2.06 2.06
Total Withdrawals (14,900,000) (14,900,000) (14,900,000) 2.06 2.06
Balance
September 30,2018 $52,566,663 $52,566,663 $52,566,663 2.06 2.06
U.S. Bank
Asset Summary - Liquid
As of 9/30/2018
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 3,100,000.0000 3,075,417.00 3,097,272.00 4.13 21,855.00
FIRST AMERICAN SHORT TERM FDS 1,320,456.3500I ,320,456.351 1,320,456.35 1.76 -
U. S.GOVERNMENT 20,000,000.0000 19,893,838.45 19,949,650.00 26.63 55,811.55
US AGY-SHORT TERM CASH EQUIV 6,000,000.0000 5,990,620.00 5,996,160.00 8.00 5,540.00
Cash Equivalents Total 30,420,456.3500 30,280,531.80 30,383,538.35 40.53 83,206.55
Fixed Income
FINANCE 4,000,000,0000 3,992,810.00 3,994,480.00 5.33 1,670.00
FIXED INCOME FUNDS OTHER 2,950,000,0000 2,941,422.57 2,947,817.00 3.93 6,394.43
INDUSTRIAL 1,000,000.0000 997,500.00 998,970.00 1.33 1,470.00
MATERIALS TRANSPORTATION 1,205,000.0000 1,198,513.80 1,203,156.35 1.61 4,642.55
SHORT TERM FUNDS 6,000,000.0000 5,992,731.01 5,998,510.00 8.01 5,778.99
SUPRANATIONAL 2,000,000.0000 1,992,444.44 1,999,880.00 2.67 7,435.56
U. S.GOVERNMENT 27,500,000.0000 27,394,531.25 27,409,500.00 36.59 14,968.75
Fixed Income Total 44,655,000.0000 44,509,953.07 44,552,313.35 59.47 42,360. 88
Grand Total 75,075,456.3500 74,790,284.87 74,915,851.70 100.00 125,566.83
1 of1
U.S. Bank
Asset Summary - Long-Term
As of 9/3 012 0 1 8
Industry Name Shares/Units Cost Basis Markel Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 9,000,000.0000 8,937,870.00 8,992,080.00 1.95 54,210.00
FIRST AMERICAN SHORT TERM FDS 9,085,141.8200 9,085,141.82 9,085,141.82 1.98 -
U.S. GOVERNMENT 5,000,000.0000 4,996,302.22 4,997,150.00 1.09 847.78
US AGV-SHORT TERM CASH EOUIV 5,000,000.0000 4,992,012.50 4,993,250.00 1.09 1,237.50
Cash Equivalents Total 28,065,141.8200 28,011,326.54 28,067,621.82 6.10 56,285.28
Fixed Income
CONSUMER DISCRETIONARY 4,845,000.0000 4,890,178.15 4,825,195.60 1.05 (64,982.55)
CONSUMER STAPLES 3,880,000.0000 3,878,991.40 3,896,878.00 0.85 17,886.60
ENERGY 8,850,000.0000 8,856,036.90 8,638,414.50 1.88 (217,622,40)
FINANCE 52,689,000.0000 51,846,706.71 49,479,509.54 10.76 (2,367,197,17)
FOREIGN CORPORATE 4,500,000.0000 4,429,980.00 4,369,815.00 0.95 (60,165.00)
HEALTH CARE 4,000,000.0000 4,009,675.00 3,982,280.00 0.87 (27,395.00)
INDUSTRIAL 8,160,000.0000 8,185,022.00 8,126,644.00 1.77 (58,378.00)
INFORMATION TECHNOLOGY 20,715,000.0000 20,582,924.95 20,256,549.25 4.40 (326,375.70)
INVESTMENT GRADE-MUNI REVENUE 4,240,000'0000 4,307,633.89 4,346,693.20 0.94 39,059.31
MTG RELATED SECURITY 45,232,066.4400 45,181,643.64 45,126,667.99 9.81 (54,975.65)
SUPRANATIONAL Total 33,005,000.0000 32,742,600.25 31,921,395.55 6.94 (821.204.70)
U.S. GOVERNMENT 137,307,842.5200 135,767,973.10 133,332,423.70 28.99 (2,435,549.40)
U.S.GOVERNMENT TIPS 11,037,728.0000 10,893,008.09 10,602,620.76 2.31 (290,387.33)
US AGV-LONG TERM ISSUES 104,865,000.0000 104,606,386.40 102,999,288.75 22.39 (1,607,097.65)
Fixed Income Total 1 443,326,636.9600 440,178,760.48 431,904,375.84 93.90 (8,274,384.64)
Grand Total 471,411,778.7800 468,190,087.02 459,971,997.66 100.00 (8,218,689.36)
1 Of
W5112X ECW1015380 E
NY ME LLON StYement Period WOIIM18 Through 09/30MIS
ACCOUM300282 Base Cu.e y=USD
OCSD LIBERTY MUTUAL
Statement of Assets Held by Asset Classification
SDxealpu Value Anneal Accrued Esdmaled Market
DGSOVOW Market Pike Us"Value C" Average Cod Moores ., Income _ vkld
MIEDINCOME
3.600.000.000 UNRED STATES TREASURY NDTE/BOND WAM00 3,5]0.192.W 3,553,031.25 ge.69531 14.372.% 31.500.110 0A9%
MATU:g1 2
IMTURf1YDATE:ON152019
MTE:O.e]5%
M000rs Asa
Ta1aI FIXED INCOME 3,570,192.00 d55da3125 14,31295 31,500.001 a.eaX
CASHANDSHORTTERM
CASH BAUNCE 46,194.16 46.1"Aff Domm, daa am 0.00%
TonO CASH AND SHORT TERM K,t90.16 46,1W.16 a00 am GAa%
ACCOUNT TOTALS 3,616,3a6.16 3.599,2Y5.41 14,3M" 31,500.00 Ohm
Total Mxket Value%ia ToV4 AmUed 111coma 3,00,759,11
Statement of Transactions by Transaction Date
Realized
Transwiti nDent TraMaetlM DeworWon Income Pikdpd COY Aana/Lossec
No Transactions This Period
Cimulmie,anted caiwi an ant in.pavtonhorn12131Y2a1]for xvinaes Md in plooniod of amwnf.
Short Telm: 9,9Y.3]' Long Tenn: am
•Toe carve on antl toes poean dos ofirbkMe barmxtiolm where Mx cool inlwmaaon is noonloete or lebM.
R
The eankw Maw voA MBllm may uiilixa subsbanes vw ar61ia1as 10 prorfm aenioasvldmlfan poducm ro n1e Acmunl. slhsimenes va anlaams may ore campenasNamr lhehswlces ens poeu=N.
TMvaNa of sewnUea sal lcM an this AwcuM Sabmae we dnxmiredpyTM Berlkol New York Makn lorCwpama Tlus[m Ne besia olmarkel pnwamdinfomie4on ebleilpd by The Benkol New York Melon horn -
u1uMIiN�NiNpalSes(b1d�w34idePeMolpliang ve'idorsl('IhiM perry pricilg senkasT. lore Bank of New YOM Mellon has nW verified wM Merkel value winbrmeAonand makes oaawranoaaam Nor eccvxypr
ewrwPless of ylcM1 makalvauaswbllwmaticnaMal Menurkd valwssetbMmlhisAh ml Stalemenl rMbct the valor of Ce seantlec lnettan be rmliZe]ugn the sal9 elWU 9eeuritps. In ddtlNm,Ole Markel values
for sewlddes sal fprlA In baaAd'x1nl Sabment may diner hoer th nleMel p���s ergiaallwnpn br Me same sewlNes usetl by alherbusioss unim at Tlw Sank al New Yolk MNlpn or its subaitliwiearn aMYaMabaaetl upo -
uu by.rioeaandiaplmanM ote iee ko oNerlhlydper nori gselNpes eswi by suchaMer business units. Carpprale Trotdoanolofaer yl ss,dM aluexei n ai s rr as re ull ofdiaxieW alkelvaues .,
used by.oher Waossoimol The Benkof New York MNbnoritswbadianesawl Mores. Toe BaNcof New Yarkn Ylallolbeheobfwr ilosa,dadanwmiys.airiwrral asereaull olar mislrq iromw
rented b tlnllwketvaosor inbinl�o wovimd aY tliN palryp1a00 servbaswme deerenres In 111aket p'cea w 1n(wmefio proWed by oMer mid pent Pndn9 cervices. -
U.S. Bank
Investment Listing -Yield
As of 9/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Cash Equivalents 313385K39 F H L B DISC NTS 10/12/18 0.0000% 6,000,000.0000 N/A N/A 99.94 5,990,620.00 5,996,160.00
Cash Equivalents 3133851-79 F H L B DISC NTS 1024/18 0.0000% 5,000,000.0000 N/A N/A 99.87 4,992,012.50 4,993,250.00
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 2.0509% 1,320,456.3500 100.00 1,320,456.35 1,320,456.35
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 2.0509% 9:085:141.8200 100.00 9,085,141.82 9,085,141.82
Cash Equivalents 62479MKF9 MUFG BANK LTD NY BRAN C P 10/15/18 0.0000% 3,100,000.0000 99.91 3,075,417.00 3,097,272.00
Cash Equivalents 62479MKF9 MUFG BANK LTD NY BRAN C P 10/15/18 0.0000% 9,000,000.0000 99.911 8,937,870.00 8,992,080.00
Cash Equivalents 912796PP8 U S TREASURY BILL 1131/19 2.2998% 5,000,000.0000 N/A N/A 99.25 4,958,270.17 4,962,300.00
Cash Equivalents 912796NZ8 U S TREASURY BILL 10/11/18 2.0412% 5,000,000.0000 N/A N/A 99.94 4,996,302.22 4,997,150.00
Cash Equivalents 912796NZ8 U S TREASURY BILL 10/11/18 2.0412% 10,000,000.0000 N/A N/A 99.94 9,959,266.11 9,994,300.00
Cash Equivalents 912796QE2 U S TREASURY BILL 10/25/18 2.0829% 5,000,000.0000 N/A N/A 99.86 4,976,302.17 4,993,050.00
Fixed Income _ 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 2.7927% 2,000,000.0000 A3 A 96.68 1,937,000.00 1,933,580.00
Fixed Income 00440EAUl ACE INA HOLDINGS 2.875%11/03/22 2.9371% 4,169,000.0000 A3 A 97.89 4,232,453.17 4,080,867.34
Fixed Income 02587AAJ3 AMERICAN EXPRESS 1.930% 9/15/22 1.9571% 6,270,000.0000 AAA N/A 9&61 6,174,085.15 6,183,097.80
Fixedi ncome 02665WAH4 AMERICAN HONDA MTN 2.250% 8/15/19 2.2605% 4,000,000.0000 A2 A+ 99.54 4,046,640.00 3,981,480.00
Fixed Income 026651W CJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.4553% 845,000.0000 A2 A+ 99.85 843,538.15 843,715.60
Fixed Income 03215PFN4 AMRESCO 3.15585% 6/25/29 3.3099% 133,743.2900 N/A A+ 95.35 100,432.85 127,517.54
Fixed Income 1037833BS8 APPLE INC 2.250% 2/23/21 2.2908% 4,000,000.0000 AA1 AA+ 98.22 4,050,840.00 3,928,720.00
Fixed Income 06406HCW7 BANK NY MELLON MTN 2.300% 9111119 2.3112% 2,120,000.0000 Al A 99.52 2,142,175.20 2,109,739.20
Fixed Income 06051GFD6 BANK OF AMERICA CORP 2.650% 4/01/19 2.6498% 1,500,000.0000 A3 A. 100.01 1,499,910.00 1,500,105.00
Fixed Income 06371ERK5 BANK OF MONTREAL C D 1.750% 11/13/18 1.7513% 2,950,000.0000 99.93 2,941,422.57 2,947,817.00
Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2107122 2.6661% 2,500,000.0000 Al A 97.52 2,504,475.00 2,437,975.00
Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1129123 3.0241% 1,500,000.0000 Al A 97.55 1,486,065.00 1,463,235.00
Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.8157% 2,500,000.0000 AA2 AA 97.67 2,440,950.00 2,441,625.00
Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 3.0195% 4,000,000.0000 AA2 AA 99.36 4,131,120.00 3,974,200.00
Fixed Income 166764BG4 CHEVRON CORP 2.100% 5/16/21 2.1529% 2,500,000.0000 AA2 AA- 97.54 2,485,350.00 2,438,575.00
Fixed Income 532457BF4 ELI LILLY CO 1.950% 3/15/19 1.9587% 4,000,000.0000 A2 AA- 99.56 4,009,675.00 3,982,280.00
Fixed Income 30231GAV4 EXXON MOBIL 2.222% 3/01/21 2.2670% 3,000,000.0000 AAA AA+ 98.01 3,016,097.40 2,940,390.00
Fixed Income 3130A7CV5 F H L B DEB 1.375% 2/1821 1.4238% 5,365,000.0000 AAA AA+ 96.58 5,343,325.40 5,181,248.75
Fixed Income 3133782M2 F H L B DEB 1.500% 3/08/19 1.5056% 7,500,000.0000 AAA AA+ 99.63 7,589,190.00 7,472,325.00
Fixed Income 313383HU8 F H L B DEB 1.750% 6/1220 1.7822% 5,000,000.0000 AAA AA+ 98.19 5,008,950.00 4,909,700.00
Fixed Income 313379RB7 F H L B DEB 1.875% 6/1121 1.9252% 4,000,000.0000 AAA AA+ 97.39 4,030,160.00 3,895,600.00
Fixed Income 313383QR5 F H L B DEB 3.250% 6/0923 3.2161% 5,000,000.0000 AAA AA+ 101.06 5,083,350.00 5,052,750.00
Fixed Income 3137EAEN5 F H L M C 2.750% 6/1923 2.7842% 10,000,000.0000 N/A AA+ 98.77 9,956,500.00 9,877,100.00
Fixed Income 3137EADM8 F H L M C MTN 1.250%10/02/19 1.2675% 7,500,000.0000 AAA AA* 98.62 7,399,850.00 7,396,850.00
Fixed Income 3137EAEK7 F H L M C MTN 1.875%11/1720 1.9132% 5,000,000.0000 N/A AA+ 98.00 4,986,225.00 4,900,100.00
Fixed Income 3137EAEL9 IF H L M C MTN 2.375% 2/16/21 2.4026% 7,500,000.0000 AAA AA+ 98.85 7,484,475.00 7,413,750.00
Fixed Income 31348SWZ3 IF H L M C#786064 3.427% 1/01/28 3.3508% 2,049.3700 N/A N/A 102.28 1,999.48 2,095.99
1 of 5
U.S. Bank
Investment Listing -Yield
As of 9/30/2018
Asset Category CUSIP Asset Short Name , Yield Shams/Units Moody's S&P Rating Price Cost Basis -Market Value
Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.587% 8115132 3.5397% 15,013.8000 101.34 15,029.51 15,214.44
Fixed Income 31398VJ98 F H L M C MLTCL MTG 4.251% 1/25/20 4.1968% 900,000.0000 N/A N/A 101.29 951,046.88 911,628.00
Fixed Income 31394JY35 IF H L M C MLTCL MTG 6.500% 9125143 5.8088% 790,248.1800 N/A N/A 111. 01 894,956.06 884,287.71
Fixed Income 3135GOG72 IFNMA 1.125%12/14/18 1.1275% 5,000,000.0000 N/A AA, 99.77 4,963,950.00 4,988,700.00
Fixed Income 3135GOF73 F N M A 1.500%11/3020 1.5434% 7,500,000.0000 AAA AA+ 97.19 7,370,726.00 7,289,250.00
Fixed Income 3135GOT45 IFNMA 1.875% 4/05/22 1.9437% 5,000,000.0000 AAA AA+ 96.47 4,972,500.00 4,823,350.00
Fixed Income 3135GOS38 FNMA 2.000% 1/05/22 2.0595% 3,000,000.0000 AAA AA+ 97.11 2,994,570.00 2,913,390.00
Fixed Income 313500035 FNMA 2.750% 6/22/21 2.7633% 7,500,000.0000 AAA AA- 99.52 7,515,225.00 7,463,775.00
Fixed Income 31371NUC7 F N M A9257179 4.500% 4/0128 4.3499% 18,054.8200 N/A N/A 103.45 19,094.74 18,677.89
Fixed Income 31376KT22 F N M A#357969 5.000% 9/01/35 4.7077% 114,218.9500 N/A N/A 106.21 122,785.35 121,311.95
Fixed Income 31381PDA3 F N M A#466397 3.400% 11/01/20 3.3842% 345,887.6300 N/A N/A 100.47 338,402.41 347,502.93
Fixed Income 31403DJZ3 F N M A#745580 5.000% 6/01/36 4.7088% 111,245.5200 N/A N/A 106.19 119,588.95 118,126.06
Fixed Income 31403GXF4 F N M A#748678 5.000% 10/01/33 4.7118% 2,572.5900 N/A N/A 106.12 2,755.54 2,729.93
Fixed Income 31406POY8 F N M A#815971 5.000% 3/01/35 4.7113% 196,758.2400 N/A N/A 106.13 211,515.13 208,815.58
Fixed Income 31406XWT5 F N M A#823358 3.481% 2/01/35 3.3258% 120,591.1200 N/A N/A 104.67 119,649.01 125,219.11
Fixed Income 31407BXH7 F N M A#826080 5.000% 7/01/35 4.7074% 22,349.5800 N/A N/A 106.22 24,025.78 23,738.61
Fixed Income 31410F4V4 F N M A#888336 5.000% 7/01/36 4.7080% 219,725.3300 N/A N/A 106.20 236,204.73 233,354.89
Fixed Income 3138EG61F6 F N M A#AL0869 4.500% 6/01/29 4.3495% 12,333.2900 N/A N/A 103.46 13,043.67 12,760.02
Fixed Income 31417YAY3 F N M A#MA0022 4.500% 4/01/29 4.3498% 20,066.7500 N/A N/A 103.45 21,222.56 20,759.45
Fixed Income 3135GOJ20 F N M A DEB 1.375% 2/26/21 1.4243% 10,000,000.0000 AAA AA+ 96.54 10,040,950.00 9,554,000.00
Fixed Income 3135GOD75 IF N M A DEB 1.500% 622/20 1.5327% 5,000,000.0000 AAA AA+ 97.87 4,955,650.00 4,893,250.00
Fixed Income 3135GOT94 F N M A DEB 2.375% 1/1923 2.4362% 5,000,000.0000 AAA AA+ 97.49 4,910,990.00 4,874,350.00
Fixed Income 31397OREO F N M A GTD REMIC 1.113% 2/25/41 2.8410% 223,883.0100 N/A N/A 101.93 223,813.05 228,203.95
Fixed Income 36225CAZ9 G N M A 11#080023 3.125% 12/20/26 3.0384% 18,884.6500 N/A N/A 102.85 19,196.64 19,422.67
Fixed Income 36225CC20 G N M A 11#080088 3.625% 6/2027 3.5223% 21,006.7800 N/A N/A 102.92 21,466.32 21,619.55
Fixed Income 36225CNM4 G N M A 11#080395 3.625% 4/20/30 3.5129% 7,842.5200 N/A N/A 103.19 7,771.42 8,092.70
Fixed Income 36225CN28 G N M A 11#080408 3.625% 5/20/30 3.5127% 60,675.1700 N/A N/A 103.20 60,058.94 62,614.35
Fixed Income 36225DCB8 G N M A 11#080965 2.750% 7/20/34 2.6535% 58,707.0000 N/A N/A 103.64 58,670.31 60,842.17
Fixed Income 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 3.0161% 3,160,000.0000 A2 A+ 99.47 3,138,038.00 3,143,094.00
Fixed Income 36962G7MO GENERAL ELEC CA MTN 2.200% 1/09/20 2.2235% 5,000,000.0000 BAA1 BBB+ 98.94 5,014,950.00 4,947,050.00
Fixed Income 43814RACO HONDAAUTO 1.210% 12/18/20 1.2211% 2,429,718.8000 N/A AAA 99.09 2,403,048.84 2,407,632.66
Fixed Income 438140,AC2 HONDAAUTO 1.390% 4/1520 1.3954% 714,560.8000 AAA N/A 99.61 714,546.94 711,774.01
Fixed Income 43814PAB6 HONDAAUTO 1.570% 12120 1.5744% 504,918.5000 N/A AAA 99.72 504,873.61 503,519.88
Fixed Income 43814PAC4 HONDAAUTO 1.790% 92021 1.8159% 3,090,000.0000 N/A AAA 98.57 3,040,994.53 3,045,936.60
Fixed Income 43815HAC1 HONDAAUTO 2.950% 82222 2.9597% 3,970,000.0000 AAA N/A 99.67 3,969,455.32 3,956,938.70
Fixed Income 43814UAG4 HONDAAUTO 3.010% 5/1822 3.0133%1 1,7101000.0000 N/A AAA 99.89 1,709,962.72 1,708,101.90
Fixed Income 404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 2.7289%1 4,500,000.0000 A2 A 97.11 4,429,980.00 4,369,815.00
2 of5
U.S. Bank
Investment Listing -Yield
As of 9/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 40428HPR7 HSBC USA INC MTN 2.350% 3/05120 2.3760% 2,500,000.0000 A2 A 98.90 2,472,287.50 2,472,600.00
Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/0623 3.0517% 5,670,000.0000 Al A 98.31 5,603,264.40 5,574,006.90
Fixed Income 459515H96 IFC DISC NTS 10/02/18 0.0000% 2,000,000.0000 N/A N/A 99.99 1,992,444.44 1,999,880.00
Fixed Income 4581XOCX4 INTER AMER DEV BK 1.625% 5/12/20 1.6574% 3,035,000.0000 AAA AAA 98.04 3,027,807.05 2,975,605.05
Fixed Income 4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 1.8385% 6,500,000.0000 N/A N/A 95.18 6,249,655.00 6,186,960.00
Fixed Income 4581XOCW6 INTER AMER DEV BK 2.125% 1/18/22 2.1873% 3,000,000.0000 AAA N/A 97.15 2,996,310.00 2,914,530.00
Fixed Income 4581XOCS5 INTER AMERICAN REVEL 1.875% 3/15/21 1.9244% 5,000,000.0000 AAA AAA 97.43 5,059,610.00 4,871,700.00
Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 2.0674% 10,000,000.0000 AAA N/A 96.74 10,006,350.00 9,674,100.00
Fixed Income 45950KCMO INTL BK M T N 2.250% 1/25/21 2.2862% 2,970,000.0000 AAA AAA 98.42 2,961,268.20 2,922,925.50
Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1839% 2,500,000.0000 AAA AAA 95.02 2,441,600.00 2,375,575.00
Fixed Income 24422ESS9 JOHN DEERE CAP MTN 2.300% 9116119 2.3076% 5,000,000.0000 A2 A 99.67 5,046,984.00 4,983,550.00
Fixed Income 24422ESF7 JOHN DEERE MTN 1.950%12/13/18 1.9520% 1,000,000.0000 A2 A 99.90 997,500.00 998,970.00
Fixed Income 47788MAC4 JOHN DEERE OWNER 1.360% 4/15/20 1.3644% 808,770.1600 AAA N/A 99.68 808,642.87 806,165.92
Fixed Income 47788NADO JOHN DEERE OWNER 1.490% 5/1523 1.5118% 1,151,000.0000 AAA N/A 98.56 1,131,936.56 1,134,391.07
Fixed Income 47787XAB3 JOHN DEERE OWNER 1.500% 10/15/19 1.5011% 192,866.9800 AAA N/A 99.93 192,866.21 192,730.04
Fixed Income 47788BABO JOHN DEERE OWNER 1.590% 4/15/20 1.5942% 437,905.0400 AAA N/A 99.74 437,856.99 436,757.73
Fixed Income 47788BAD6 JOHN DEERE OWNER 1.820% 10/15/21 1.8453% 675,000.0000 AAA N/A 98.63 674,950.59 665,752.50
Fixed Income 47788CAB8 JOHN DEERE OWNER 2.420% 10/15120 2.4238% 11800,000.0000 AAA N/A 99.84 1,796,343.75 1,797,174.00
Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6796% 1,340,000.0000 AAA N/A 99.27 1,339,903.65 1,330,177.80
Fixed Income 47788EAC2 JOHN DEERE OWNER 3.080% 11/15122 3.0852% 4,630,000.0000 AAA N/A 99.83 4,629,649.05 4,622,267.90
Fixed Income 46625HKA7 JPMORGAN CHASE CO 2.250% 1/23/20 2.2733% 2,000,000.0000 A2 A- 98.98 1,994,880.00 1,979,540.00
Fixed Income 46625HJR2 JPMORGAN CHASE CO 2.350% 1/28/19 2.3520%1 1,000,000.0000 A2 A- 99.91 998,810.00 999,130.00
Fixed Income 525ESCOY6 LEHMAN BIRTH HLD ESC 0.0000% 2,000,000.0000 - 1,056,016.58
Fixed Income 525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1/24/13 0.0004% 600,000.0000 N/A N/A 2.82 327,458.23 16,920.00
Fixed Income 594918BP6 MICROSOFT CORP 1.550% 8/08/21 1.6749% 3,045,000.0000 AAA AAA 95.98 3,041,385.15 2,922,882.35
Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 72821 5.2249% 2,800,000.0000 A3 BBB- 105.27 3,200,848.00 2,947,448.00
Fixed Income 64971M5E8 NEWYORKNYCITY 4.075%11/0120 4.0026% 1,400,000.0000 AAI AAA 101.81 1,400,000.00 1,425,340.00
Fixed Income 65478VAD9 NISSAN AUTO 1.320% 1/15/21 1.3304% 1,361,853.1000 AAA N/A 99.22 1,350,947.64 1,351,217.03
Fixed Income 654747ABO NISSAN AUTO 1.470% 1/15/20 1.4719% 340,612.6300 AAA N/A 99.87 340,610.89 340,169.83
Fixed Income 65477UAD2 NISSAN AUTO 1.500% 9/15/21 1.5059% 1,616,346.7400 AAA N/A 99.61 1,606,244.57 1,509,962.17
Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0693% 3,560,000.0000 AAA AAA 99.70 3,559,884.66 3,549,213.20
Fixed Income 674599CK9 OCCIDENTAL PETROLEUM 2.600% 4/1522 2.6722% 3,350,000.0000 A3 A 97.30 3,354,589.50 3,259,449.50
Fixed Income 68389XBKO ORACLE CORP 1.900% 9/15/21 1.9678% 3,000,000.0000 Al AA- 96.55 2,892,240.00 2,896,590.00
Fixed Income 69353RFL7 PNC BANK NA 3.500% 6/0823 3.5127% 5,000,000.0000 A2 A 99.64 4,993,318.05 4, 81,950.00
Fixed Income 169353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.6950% 1,000,000.0000 A2 A 97.40 974,940.00 :74,030.00
Fixed Income73358WAG9 PORT AUTH NY NJ 5.309%12/01/19 5.1743%1 2,440,000.0000 AA3 AA- 102.60 2,507,633.891 2,503,513.20
Fixed Income 74005PBH6 PRAXAIR INC 1.250%11/07/18 1.2519% 1,205,000.0000 A2 A 99.85 1,198,513.80 1,203,156.35
3 of5
U.S. Bank
Investment Listing -Yield
As of 9/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 747525AD5 QUALCOMM INC 2.250% 5120/20 2.2798% 5,000,000.0000 A2 A- 98.69 4,995,195.40 4,934,550.00
Fixed Income 78009N2V7 ROYAL BK CANADA C D 1.700% 10/05/18 1.7002% 1,000,000.0000 99.99 996,762.00 999,900.00
Fixed Income 78012UAX3 ROYAL BK OF C D 2.320% 11/27/18 2.3202% 1,000,000.0000 i
99.99 1,000,000.00 999,930.00
Fixed Income 83162CLJ0 S B A GTD DEV PART 6.340% 3/01/21 6.1867% 23,619.2100 N/A NIA 102.48 23,819.21 24,204.49
Fixed Income 78445JAA5 S L M A 3.92054% 4/25/23 3.8395% 21,879.4100 BAA3 A 102.11 26,770.35 27,446.57
Fixed Income 89113X794 TORONTO C D 2.260% 10/29/18 2.2599% 1,000,000.0000 100.00 1,000,000.00 1,000,040.00
Fixed Income 89113XUZ5 TORONTO DOMINION C D 2.150% 1/24/19 2.1524% 1,000,000.0000 99.89 997,312.00 998,900.00
Fixed Income 89113X3W2 TORONTO DOMINION C D 2.700% 6/07/19 2.7003%1 1,000,000.0000 P-1 A-1+ 99.99 1,000,000.00 999,890.00
Fixed Income 189238BAB8 TOYOTA AUTO 2.100%10/1520 2.1063% 5,170,000.0000 AAA AAA 99.70 5,169,471.63 5,154,593.40
Fixed Income 1912828WUO ,U S TREASURY I P S 0.125% 7/1524 0.1301% 11,037,728.0000 AAA N/A 96.06 10,893,008.09 10,602,620.76
Fixed Income 912828T34 U S TREASURY NT 1.125% 9/30/21 1.1846% 7,000,000.0000 AAA N/A 94.97 6,757,914.08 6,547,830.00
Fixed Income 912828W97 U S TREASURY NT 1.250% 3/31/19 1.2574% 5,000,000.0000 AAA N/A 99.41 4,965,429.69 4,970,700.00
Fixed Income 912828T67 U S TREASURY NT 1.250%10/3121 1.3132% 6,000,000.0000 AAA N/A 95.18 5,813,691.98 5,711,040.00
Fixed Income 912828N89 US TREASURY NT 1.375% 1/31/21 1.4224% 6,000,000.0000 AAA N/A 96.67 5,895,840.41 5,800,080.00
Fixed Income 9128281-99 U S TREASURY NT 1.375%10/3120 1.4167% 10,000,000.0000 AAA N/A 97.06 9,850,311.40 9,705,900.00
Fixed Income 1912828B33 U S TREASURY NT 1.500% 1/31/19 1.5041% 11,000,000.0000 AAA N/A 99.73 11,042,439.19 10,970,080.00
Fixed Income 9128281333 U S TREASURY NT 1.500% 1/31/19 1.5041% 22,500,000.0000 AAA N/A 99.73 22,429,101.56 22,438,800.00
Fixed Income 912828SN1 U S TREASURY NT 1.500% 3/31/19 1.5069-XI 5,000,000.0000 AAA N/A 99.54 5,016,423.00 4,976,950.00
Fixed Income 912828XE5 U S TREASURY NT 1.500% 5/31/20 1.5321% 5,000,000.0000 AAA N/A 97.91 4,966,423.00 4,895,300.00
Fixed Income 912828G61 US TREASURY NT 1.500%11/30/19 1.5209% 7,500,000.0000 AAA N/A 98.63 7,449,634.50 7,397,175.00
Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 7.7235% 5,000,000.0000 AAA N/A 94.29 4,757,226.56 4,714,250.00
Fixed Income 912828WS5 U S TREASURY NT 1.625% 6/30/19 1.6360% 2,000,000.0000 AAA N/A 99.33 1,996,861.44 1,986,560.00
Fixed Income 912828W W U S TREASURY NT 1.625% 7/31/19 1.6380% 5,000,000.0000 AAA N/A 99.21 5,012,388.70 4,960,350.00
Fixed Income 912828J76 U S TREASURY NT 1.750% 3/31/22 1.8200% 5,000,000.0000 AAA N/A 96.161 4,976,383.94 4,807,800.00
Fixed Income 912828XW5 U S TREASURY NT 1.750% 6/30/22 1.8252% 5,000,000.0000 AAA N/A 1 95.881 4,973,454.25 4,793,950.00
Fixed Income 912828F39 U S TREASURY NT 1.750% 9/30/19 1 7. M% 5,800,000.0000 AAA N/A 1 99.101 5,873,186.87 5,747,916.00
Fixed Income 9128281-57 U S TREASURY NT 1.750% 9/30/22 1.8313% 13,000,000.0000 AAA N/A 95.56 12,763,554.69 12,422,670.00
Fixed Income 912828U65 US TREASURY NT 1.750%11/3021 1.8127% 7,000,000.0000 AAA N/A 96.54 6,900,492.20 6,757,730.00
Fixed Income 912828V72 US TREASURY NT 1.875% 1/31/22 1.9384% 3,000,000.0000 AAA N/A 96.73 3,004,814.74 2,901,930.00
Fixed Income _ 9128281-24 U S TREASURY NT 1.875% 8/31/22 1.9508% 6,000,000.0000 AAA N/A 96.11 5,987,832.60 5,766,780.00
Fixed Income 912828M80 US TREASURY NT 2.000%11/3022 2.0758% 8,000,000.0000 AAA N/A 96.35 7,907,500.00 7,707,840.00
Fixed Income _ 912828N30 U S TREASURY NT 2.125%12/3122 2.1963% 5,000,000.0000 AAA N/A 96.75 4,926,562.50 4,837,700.00
Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.5473% 10,000,000.0000 AAA N/A 98.15 9,887,265.63 9,814,500.00
Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 4.8200% 400,000.0000 AA3 AA- 104.46 400,000.00 417,840.00
Fixed Income 90331HNL3 JUSBANK NA MTN 2.850% 123M 2.9256% 5,000,000.0000 Al AA- 97.42 4,981,600.00 4,870,800.00
Fixed Income 931142EK5 WALMARTINC 3.400% 62623 3.3853% 3,880,000.0000 AA2 AA 100.44 3,878,991.40 3,896,878.00
Fixed Income 94974BGM6 W ELLS FARGO CO MTN 2.600% 7/22/20 2.6261% 5,000,000.0000 A2 A. 1 99.01 5,001,650.00 4,950,400.00
4 of5
U.S. Bank
Investment Listing -Yield
As of 9/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 94974BFU9 WELLS FARGO COM MTN 2.125% 4/22/19 2.1318% 1,500,000.0000 A2 A- 99.68 1,494,090.00 1,495,245.00
Fused Income 950001-12138 WELLS FARGO MTN 2.625% 7/22/22 2.7178% 3,000,000.0000 A2 A- 96.59 2,954,520.00 2,897,550.00
Fixed Income 96121T6G8 WESTPAC BIKING CD 2.060% 11/01/18 2.0603% 1,000,000.0000 99.99 998,657.011999,850.00
Total Consolidated 534,887,849.3,
5of5
U.S. Bank
Asset Detail -Consolidated
As of 9/30/2018
CUSIP Asset Shad Name Prim Shares/Units Cost Basis Market Value Percent of Total Unrealized Galn&oss
Cash Equivalents Total
313385K39 F H L B DISC NTS 10/12/18 99.94 6,000,000,0000 5,990,620.00 5,996,160,00 1.12 5,M0,00
313385179 F H L B DISC NTS 10/24/18 99.87 5,000,000.0000 4,992,012.50 4,993,250.00 0.93 1,237,50
31846V567 FIRST AM GOVT OB FD CL Z 100.001 1,320,456,3500 1,320,456.35 1,320,456.35 U25 -
31846V561 FIRST AM GOVT OB FD CLZ 1 100.001 91085,141,8200 9,085,141.82 9,085,141A2 1.70 -
_ 62479MKF9 MUFGBANKLTDNVBRANCP 10/15/18 99.911 3,100,000,0000 3,0]5A1].00 3,097,272.00 0.58 21,855,00
62479MKF9 MILL 9,000,00,0000 8,937,870.00 8,992,080.00 1.68 54,210.00
912796PP8 USTREASURVBILL 1/31119 99.25 5,000,000,0000 4,958,270.17 4,962,300.00 0.93 4,029.83
912196NZ8 USTREASURVBILL 10/11/18 99.94 5,000,0000000 4,9%,302.22 4,997,150.00 0,93 84]]81
912796NZ8 US TREASURY BILL 10/11/18 99.94 10,000,000,0000 9,959,266.11 9,994,300.00 1.87 35,033,89
912196OE2 US TREASURY BILL 10/25/18 99.86 5,000,000.0000 4,976,302.17 4,993,050.00 0,93 16,747,83
Cash Equivalents Totait 56,505,598.1700 58,291,658.34 58,431,160.17 10.92 139,501.83
Fixed Income
00440EAP2 ACE INA HOLDINGS 2.700% 311323 96.68 2,000,0000000 1,937,000.00 1,933,580.00 0,36 (3,420.00)
00440EAU1 ACE INA HOLDINGS 2.8]5%if/03122 97.89 4,189,000.0000 4,232,453.17 4,080,867.34 016 (151,585.83)
02587AAJ3 AMERICAN EXPRESS 1.W0% 9115/22 98,61 6,270,000,0000 6,174,085.15 6,113,09].80 1,16 9,012.65
02665WAH4 AMERICAN HONDA MTN 2.250% 8115119 99.54 4,000,000.0000 4,046,640.00 3,981,480.00 0.74 (65,160.00)
02665WCJB AMERICAN HONDA MTN 3.450% 7114/23 99.85 845,0000000 943,538.15 843,715.60 0.16 177,45
03215PFN4 AMRESCO 3.15585% 6125129 95.35 133,743,2900 10OA32.85 12],51].54 0.02 2],084.69
0378336SB APPLE INC 2.250% 2123121 98.22 4,000,000,0000 4,050,840.00 3,928,]20.00 0]3 (122,120.00)
06406HCW7 BANK NV MELLON MTN 2.300% 9/11119 99.52 2,120,000.0000 2,142,175.20 2,109,739,20 0.391 2,436.00)
06051GFD6 BANK OF AMERICA CORP 2.650% 4/01119 100.01 1,500,000,0000 1,499,910.00 1,500,105,00 0.28 195,00
06371ERK5 BANK OF MONTREAL C D 1.750%11/13/18 99.93 2,950,000.0000 2,941,422.57 2,947,817,00 0.55 6,394.43
06406RAA5 BANK OF NV MTN 2.600% 21O7/22 97.52 2,500,000.0000 2,504A75.00 2,437,975,00 0.46 (66,500,00)
06406RAE7 BANK OF NV MTN 2.950% 1129/23 97.55 1,500,000.0000 1,466,065.00 1,463,235,00 0.27 (22,830.00)
084670BR8 BERKSHIRE HATHAWAV 2.750% 315123 9].6] 2,500,0000000 2,440,950.00 2,441,625,00 0.46 675,00
084664BT7 BERKSHIRE HATHAWAV 3.000% 5/15/22 99.36 4,000,000.0000 4,131,120.00 3,974,200,00 0]4 (156,920.00)
166764BG4 CHEVRON CORP 2.100% 5/16121 97.54 2,500,0000000 2,485,350.00 2,438,575,00 0.46 (46,775.00)
532457BF4 ELI LILLV CO 1.950% 3/15119 99.56 4,000,000.0000 4,009,675.00 3,982,280.00 0.74 (27,395.00)
30231GAV4 EXXON MOBIL 2.222% 3101M 98.01 3,000,0000000 3,016,097.40 2,940,390.00I 0.55 (75,707.40)I
3130A7CV5 F H LB DEB 1.375% 2/18/21 96.58 5,365,000.0000 5,343,325.40 5,181,24835 0.97 (162,076.65)
3133782M2 F H L S DEB 1.500% 3/08119 99.63 7,500,000.0000 7,589,190.00 7,472,325,00 1,40 (116,865.00)
313383HU8 F H L B DEB 1.750% 6/12120 98.19 5,000,000.0000 5,008,950.00 4,909,700,00 0.92 (99,250.00)
313379RB7 F H L S DEB 1.875% 6/11121 97.39 4,000,000.0000 4,030,160.00 3,895,600.00 0.73 (134,560.00)
313383OR5 F H F B DEB 3.250% 6/09123 101.06 5,000,000,0000 5,083.350.00 51052,750.00 0.94 (30,600.00)
3137EAEN5 FHLMC 2.750% 611923 98.]] 10,000,000,0000 9,956,500.00 9,8]],100.00 1.85 (79,400.00)
3137EADMB FHLMC MTN 1.250%10102/19 98.62 7,500,000.0000 7,399,650.00 7,396,650.00 1.38 (3,000.00)
3137EAEK1 FHLMC MTN 1.875%11117/20 98.00 5,000,000,0000 4,986,225.00 4,900,100.00 0,92 (86,125.00)
3137EAEL9 FHLMC MTN 2.375% 2/16121 98.85 7,500,000,0000 7,484,475.00 7,413,750.00 1.39 (70,725.00)
31348SWZ3 FHLMC#786064 3A21% 1101128 102.28 2,049.3700 1,999.48 2,095.99 0,00 96,51
3133TCE95 F H L M C MLTCL MTG 3.587% 8115132 101.34 15,013,8000 15,029.51 15,214.44 0.00 184.93
1 of 4
U.S. Bank
Asset Detail -Consolidated
As of 9/30/2018
USIP Asset Short Name Prlp Shares/Units Cost Basis Market Value Percent of Total Unrealized Galn&oss
31398VJ98 F H L M C MLTCL MTG 4.251% 112520 101.29 900,000.0000 951,046.88 911,628,00 0.17 (39,418.88)
31394JY35 F H L M C MLTCL MTG 6.500% 9125143 111.90 790,248.1800 894,956.06 884,28]]1 0.17 (10,668.35)
3135GOG72 FNMA 1.125%12M4/18 99.T 5,000,000.0000 4,%3,950.00 4,988,700.00 0.93 24,750,00
3135GOF73 FNMA 1.500%11130/20 97.19 7,500,000.0000 7,370,726.00 7,289,250.00 1.36 (81,476.00)
3135GOT45 FNMA 1.875% 4/05/22 96.47 5,000,000.0000 4,972,500.00 4,823,350.00 0,90 (149,150,00)
3135G0838 FNMA 2.000% 1105/22 97.11 3,000,000.0000 2,994,570.00 2,913,390.00 0.54 (81,180.00)
3135GOU35 FNMA 2 750% 6/2221 99.52 7,500,000.0000 7,515,225.00 1,463,]]5.00 1,40 (51,450.00)
31371NUC7 F N MA#25]i]9 4.500% 4/0128 103.45 18,054.8200 19,094]4 18,6F/.89 0.00 (416.85)
31376KT22 FN MA#357969 5.000% 9101135 106.21 114,218.9500 122,785.35 121,311.95 0,02 (1,473.40)
31381PDA3 F N M A#466397_3.400%11101/20 100.47 345,887.6300 338,402.41 347,502S3 0.06 9,100,52
31403DJZ3 FNMA#745580 5.000% 6101/36 106.19 111,245.5200 119,588.95 118,126,06 0,02 (1,462.89)
31403GXF4 FNMA#748678 5.000%10101/33 106.12 2,5]2.5900 2,765.54 2,729,93 0.00 (31.61,
31406PQYB FN MA#815971 5.000% 3101135 106.13 196,158.2400 211:515.13 208,815,58 0.0I (2,699.55)
31406MT5 F N M A#823358_3.481% 2/01135 104.6] 120,591.1200 119,649.01 126,219,11 0.02 S5]0.10
31401BXH7 FN MA#826080 5.000% 7101/35 106.22 22,349.5800 24,025.78 23,738,61 0.00 (281.17)
3141 OF4V4 FN MA#888336 5.000% 7101/36 10520 219,725.3300 236,204.73 233,354S9 0.04 (2,849.84)
3138EG6F6 FN MA#AL0869 4.500% 610129 10346 12,333.2900 13,043.67 12,760.02 0.00 (283.65)
31417YAY3 FN MA#MA0022 4.500% 4/01129 10545 20,066.7500 21,222.56 20,159.45 0.00 (463.11)
3135GOJ20 F N M A DEB 1.375% 212621 96,54 10,000,000.0000 10,040,950.00 9,654,000.00 1.80 (386,950.00)
3135GOD75 F N M A DEB 1.500% 6/22/20 9187 5,000,000.0000 4,955,650.00 4,893,250,00 0.91 (62,400.00)
3135GOT94 FN MADES 2.375% 111923 97,49 5,000,000.0000 4,910,990.00 4,874,350.00 0.91 (36,640.00)
31397OREO F N M A GTD REMIC 1.113% 2125141 101S3 223,883.0100 223,813.05 228,203.95 0.04 4,390,90
36225CAZ9 G N M A 11#080023 3.125%1220126 102.85 18,884.6500 19,196.64 19,422.67 0.00 226,03
36225CC20 G N M A I1#0800883.625% 6/20/27 102.92 21,006.7800 21AS6.32 21619.55 0.00 15523
36225CNM4 G N M A 11#080395 3.625% 4120130 103.19 7,M2.5200 7,]]1.42 8:092.70 0,00 321.28
36225CN28 G N M A II#08W083.625% 5/20/30 103.20 60,675.1700 60,058.94 62,614.35 0.01 2,555.41
36225DCB8 G N M A 11#0809652.750% 1120/34 103.64 58,707.0000 58,670.31 60,842.17 0.01 2.171.86
369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 9947 3,160,000.0000 3,138,038.00 3,143,094.00 0.59 5,056.00
36962G1M0 GENERAL ELEC CA MTN 2.200% 110920 98.94 5,000,000.0000 5,014,950.00 4,941,050.00 0.92 (67,900.00)
43814RACO HONDA AUTO 1.210%LV18/20 99.09 2,429,718,8000 2,403,048.84 2,407,632,66 0.45 4,583.82
43814OAC2 IHONDAAUTO 1.390% 411520 99.61 714,5608000 714,546.94 711,774,01 0.13 (2,T2.93)
43814PAB6 HONDAAUTO 1.570% 1/2120 99.72 504,918,5000 504,873.61 503,519,88 0.09 (1,353.73)
43814PAC4 HONDA AUTO 1.790% 9I20M 98,57 3,090,0000000 3,040,994.53 3,045,933S0 0.57 4.942.07
43815HAC1 HONDAAUTO 2.950% 8/22/22 9967 3,970,000.0000 3,969455.32 3,956,938.70 0.74 (12,516.62)
43814UAG4 HONDA AUTO 3.010% 511822 99.89 1,710,0000000 1,709,962.72 1,708,101.90 0.32 (1,860.82)
404280BF5 HSBC HOLDINGS PLC 2.650% 1I0522 97.11 4500000.0000 41421:980.00 43]698105.000 0.82 (60,
4122 ] 2,42,
40428HPR HSBC USA INC MTN 2.35)% 310520 98.90 2,500,000.0000 2, 60 165.00)
0.46 312.50
44932HAH6 IBM CREDIT CORP 3.000% 2/06123 98.31 5,670,000.0000 5,603,264.40 5,574,006.90 1.04 (29,257.50)
45951511% IFC DISC NTS 10102J18 9SW 2,000,000.0000 1,992,444.44 1,999,880.00 0.3] 7,435,56
4581XOCX4 INTER AMER DEV BK 1.625% 5/12120 98.04 3,035,000.0000 3,027,807.05 2,975,605.05 0.56 (52,202.00)
4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 95.18 6,500,000.0000 6,249,655.00 6,186,%0.00 1.16 (62,695.00)
4581XOCW6 INTER AMER DEV BK 2.125% 1/18122 9].15 3,000,000.0000 2,996,310.00 2,914,530.00 0.54 (81,780.00)
2of4
U.S. Bank
Asset Detail -Consolidated
As of 9/30/2018
CUSIP Asset Shod Name Prim Shams/Units Cost Basis Market Value Percent of Total Unrealized GalnlLoss
4581XOCS5 INTER AMERICAN DEVEL 1.875% 311521 97.43 5,000,000,0000 5,059,610.00 4,871,700,00 091 (187,910.00)
459058FY4 INTL SK 2.000% 112622 96.74 10,000,000,0000 10,W6,350.00 9,674,100BO lAl (332,250.00)
459WKCMO INTL SK MTN 2.250% 12521 98.42 2,970,0000000 2,961,268.20 2,922,925.50 0.55 (38,342.]O)
45950KCJ7 INTL FINANCE CORP 1.125% ]I2021 95.02 2,500,000.0000 2,441,800.00 2,3]5,5]5.00 044 (88,025.00)
24422ESS9 JOHN DEERE CAP MTN 2.300% 9116/19 99.6] 5,000,000,0000 5,046,984.00 4,983,550.00 0,93 (63,434.00)
24422ESF] JOHN DEERE MTN 1.950%12113/18 99.90 1,000,000,0000 997,500.00 998,970,00 OAF 1,470.00
4]]88MAC4 JOHN DEERE OWNER 1.360% 4/15/20 99.681 808,T0.1600 808,642.87 806,165,92 0.15 (2,476.95)
4]]88NADO JOHN DEERE OWNER 1.490% 5/15123 98.56 1,151,000.0000 1,131,936.56 1,134,391,07 0.21 2,454.51
477e7XAS3 JOHN DEERE OWNER 1.5000/,10115/19 99.93 192,866.9800 192,866.21 192,730,04 0.04 (136.17)
4]]88BMO JOHN DEERE OWNER 1.590% 4/15/20 99.74 437,905,0400 437,866.99 436,75].]3 0.08 (1,109.26)
41188BAD6 JOHN DEERE OWNER 1.8200/.10/15/21 9863 615,000.0000 674,950.59 665,752,50 0.12 (9,1%.09)
4]]88CAB8 JOHN DEERE OWNER 2.420%1011520 99A4 1,800,000.0000 1,196.343.75 1,70,174,00 0.34 630.25
41188CAC6 JOHN DEERE OWNER 2.660% 4/18/22 99.27 1,340,0000000 1,339,903.65 1,330,177SO 0.25 (9,725.85)
4]]88EAC2 JOHN DEERE OWNER 3.080%11/1522 99.83 4,630,000,0000 4,629,649.05 4,622,267.90 0.86 (7,381.15)
46625HKA7 JPMORGAN CHASE CO 2.250% 123120 98.98 2,000,0000000 1,994,880.00 1,979,540.00 0.37 (15,340.00)
48825HJR2 JPMORGAN CHASE CO 2,350% 128/19 99.91 1,000,000,0000 998,810.00 999,130A0 0.19 320.00
525ESCOY6 LEHMAN BIRTH HLD ESC - 2,000,0000000 1,056,016.56 - - (1,056,016.56)
525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 124/13 2.82 600,000,0000 327,458.23 16,920,00 0.00 (310,538.23)
594918BP8 MICROSOFT CORP 1.550% 810821 9598 Sm,0000000 3,041,385.15 2,922,682,35 0.55 (118,702.80)
61]4]WAL3 MORGAN STANLEY 5.500% 7/2821 10527 2,800,000,0000 3,200,848.00 2,947,448.00 0.55 (253AOO.00)
64971 M5E8 NEW YORK NV CITY 4.075%11/01120 101.81 1,400,000,0000 1,400,000.00 1,425,34000 0.27 25,340.00
65478VAD9 NISSAN AUTO 1.320% 1/1521 99.22 1,361,853,1000 1,350,947.64 1,351,217,03 0.25 269.39
654]4]A60 NISSAN AUTO 1.470% 1115/20 99.87 340,612.6300 340,610.89 340,169,83 0.06 (441,06)
654]]UAD2 NISSAN AUTO 1.500% 9/1521 99.61 1,616,346,7400 1,606,244.57 1,609,962.17 0.30 3,71760
65419GAD1 NISSAN AUTO 3.060% 311523 99.70 3,560,000,0000 3,559,884.66 3,549,213.20 0.66 (10,671 46)
674599CK9 OCCIDENTAL PETROLEUM 2.600% 4/15122 97.30 3,350,000.0000 3,354,589.50 3,259,44150 0.81 (95,140.00)
68389XBK0 ORACLE CORP 1.900% eH 521 96.55 3,000,0000000 2,892,240.00 2,896,590.00 0.54 4,35000
69353RFV PNC BANK NA 3.500% 6/08123 9964 5,000,000.0000 4,993,318.05 4,981,950.00 0.93 (11,368.05)
69353RFB9 PNC BANK NA MTN 2.625% 211122 97.40 1,000,000,0000 974,940.00 9]4030.00 0.18 (910.00)
73358WAG9 PORT AUTH NY NJ 5.309%12/01119 102.60 2,440,000.0000 2,507,633.89 2,503:513.20 0.4] (4,120.69)
14005PBH6 PRAXAIR INC 1.250%11107118 99.85 1,205,0000000 1,198,513.80 1,203,156.35 0.221 ,642.55
]4]525AD5 DUALCOMM INC 2.250% 5/20/20 98.69 5,000,000,0000 4,995,195.40 4,934,550B0 0.92 (60,645.40)
180091,12V1 ROYAL BK CANADA C D 1.700%10105118 99.99 1,000,000,0000 996162.00 999,900,00 0,19 3,138,00
78012UAX3 ROYAL BK OF CD 2.320%1127118 99.99 1,000,000,0000 1,000,000.00 999,930,00 OAS (70.00)
83162CW0 SBA GTD DEV PART 6.340% 3/01121 102.48 23,619,2100 23,619.21 24,204.49 0.00 585,28
78445JAA5 S L M A _ 3.92054% 425123 102.11 26,879,4100 26,]]0.35 2],446.5] 0.01 676,22
89113X7S4 TORONTO CD 2.260%10129118 100.00 1,000,000,0000 1,000,000.00 1,000,040.00 0,19 40,00
89113XUZ5 TORONTO DOMINION C D 2.150% 1124/19 99.89 1,000,000,0000 997,312.00 998,900,00 OAS 1,588,00
89113X3W2 TORONTO DOMINION C D 2.700% 6107/19 99.99 1,000,000,0000 1,000,000.00 999,890,00 0,19 (110,00)
89238BAB8 TOYOTAAUTO 2.100%10/15120 99.70 5,170,000,0000 5,169,471.63 5,154,593,40 0.96 (14,878.23)
912828W UO U S TREASURY I P S 0.125% 1/1524 96.06 11,037,728,0000 10,893,008.09 10,602,620,76 1,98 (290,387.33)
912828T34 US TREASURY NT 1.125% 9/30121 94.97 7,000,000.0000 6,757,914.08 6,647,830,00 124 (110,084.08)
3 of
U.S. Bank
Asset Detail -Consolidated
As of 9/30/2018
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized GalnlLoss
912828W97 US TREASURY NT 1.2501A3131119 99.41 5,000,000,0000 4,965,429.69 4,970,700,00 0.93 5,27031
912828T67 US TREASURY NT 1.250%10131/21 95.18 6,000,000,0000 5,813,691.98 5,711,040.00 1.07 (102,651.98)
9128281,189 US TREASURY NT 1.375% 1131121 96.67 6,000,000,0000 5,895,840.41 5,800,080,00 1.08 (95,760.41)
912828L99 US TREASURY NT 1.375%10131120 97.06 10,000,000,0000 9,850,311.40 9,705,90000 1.81 (144,411.40)
912828633 US TREASU BY NT 1.500% 1/31119 99.73 11,000,Coo 0000 11,042A39.19 10,970,080,00 2.05 (72,359.19)
912828B33 US TREASURY NT 1.500% 1/31119 99.T3 22,500,000.0000 22,429,101.56 22,438,800,00 4.20 9,698.44
912828SN1 US TREASU BY NT 1.500% 3/31119 99.54 5,000,0000000 5,016A23.00 4,976,950,00 0.93 (39,4T3.00)I
912828XE5 US TREASU BY NT 1.500% 5/31120 9T.01 5,000,000,0000 4,966A23.00 4,895,300,00 0.92 (71,123.00)
91282BG61 US TREASURY NT 1.500%11130/19 98.63 T,500,000.0000 7,449,634.50 7,397,175,00 1.38 (52A59.50)
912828R69 US TREASURY NT 1.625% 5/31123 94.29 5,000,000,0000 4,757,226.56 4,714,250,00 0.88 (42,976.56)
912828WS5 US TREASURY NT 1.625% W0119 99.33 2,000,0000000 1,996,861.44 1,986,560.00 0.37 (10,301.44)
912828WW6 US TREASURY NT 1.625% 7/31119 99.21 5,000,000,0000 5,012,388.70 4,960,350,00 0.93 (52,038.70)
91282BJ76 US TREASURY NT 1.750% 3/31122 96.16 5,000,0000000 4,976,383.94 4,807,800,00 0.90 (168,583.94)
912828=5 US TREASURY NT 1.750% 6/30122 95.88 5,000,000,0000 4,973,454.25 4,793,950,00 0.90 (179,504.25)
91282BF39 US TREASURY NT 1.750% 9/30119 99.10 5,800,0000000 5,873,186�,916,00 1,07 (125,270.87)
991128287 US TREASURY T 1.750% 9/30122 95.56 13.000000.0000 12,763,554..69 12,422,670,00 232 (340,884.69)
5 150%11/30/21 ,00000022U6 US TREASURY NT 7000 6,900A92.20 6,757,730,00 1,26 (142,762.20)
33,00912828V2 US TREASURY NT 1.675% 1/31122 9 0,000,0000 300481474 2901,930,00 0.54 (102,884.74)
16,0091282BL24 US TREASURY NT 1.875% 8/31122 96 0, 00,0000 5,97
.832.60 5,766,780,00 1,08 (221,052.60)
158,00912828M80 US TREASURY NT 2.000%11130122 96 0,000,0000
7,907,500.00 7,707,840.00 144 (199,660.00)
91282BN30 US TREASURY NT 2.125%12/31/22 96.75 5,000,000,0000 4,926,562.50 4,837,700,00 0,90 (88,862.50)
9128284139 US TREASURY NT 2.500% 3/31123 98.15 10,000,000,0000 9,887,265.63 9,814,50000 1S3 (72,765.63)
913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15121 104,46 400,000,0000 400,000.00 417,840.00 0,08 17,840.00
90331HNL3 US BANK NA MTN 2.850% 1/23123 1 9L42 5,000,000.0000 4,981,600.00 4,870,800.00 0.91 (110,80000)
931142EK5 WALMART INC 3.400% 6/26123 100.44 3,880,000,0000 3,8 BB,991.40 3,896,878.00 0.13 17,886,60
94974BGM6 WELLS FARGO CO MTN 2.600% 7/22120 9901 5,000,000.0000 5,001,650.00 4,950,400.00 0.93 (51,250.00)
94974BFU9 WELLS FARGO COM MTN 2.125% 4/22/19 99.68 1,500,000.0000 1,494,090.00 11495,245.00 0.28 1,155,00
95000U2B8 WELLS FARGO WIN2.625% 7/22122 96.59 3,000,000.0000 2,954,520.00 2,897,550.00 0.54 (55,970.00)
96121T6G8 WESTPACBKINGCD 2.060%11/01118 99.99 1,000,000,0000 998,657.01 999,850.00 0,19 1,192,99
Fixed Income Total 487,981,636.9600 484,688,713.55 476,456,689.19 89.08 (8,232,024.36)
Grand Total 548,487,235.1300 5/2,980,371.89 S34,887,819.36 100.00 (8,092,522.53)
4&4
U.S. Bank
Transaction History
09/01/2018 Thru 09/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash�t Cost Gain/L
AcnulsmoTls
09/04/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,500,000.0000 1.000000 -1,500,000.00 1,500,000.00 0.00
09/04/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,125.0000 1.000000 -13,125.00 13,125.00 0.00
09/04/2018 31BOV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,330.0000 1.000000 -33,330.00 33,330.00 0.00
09/04/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 16,736.1100 1.000000 -16,736.11 16,736.11 0.00
09/05/2018 318OV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11.773.5300 1.000000 -11,T73.53 11,773.53 0.00
09/05/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 51,853.8600 1.000000 -51,853.86 51,853.86 0.00
09/06/2018 31 WV567 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
09/10/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,056,250.0000 1.000000 -8,056,250,00 8,056,250.00 0.00
09/11/2018 31 WV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 24,380.0000 1.000000 .24,380.00 24,380.00 0.00
09/12/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,000,000.0000 1.000000 -4,000,000.00 4,000,000.00 0.00
09/13/2018 31 WV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,000,000.0000 1.000000 30,000,000.00 30,000,000.00 0.00
09/13/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 27,000.0000 1.000000 -27,000.00 27,000.00 0.00
09/14/2018 313385K39 PURCHASED PAR VALUE OF F H L B DISC NTS 10112/18/NOMURA 6,000.000.0000 0.998437 .5,990,620.00 5,990,620.00 0.00
SECURITIES INTERNATIONAI6,000,000 PAR VALUE AT 99.84366667%
09/14/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 12,400,000.0000 1.000000 -12,400,000.00 12,400,000.00 0.00
09/14/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 56,875.0000 1.000000 -56,875.00 56,875.00 0.00
09/17/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 964,443.2900 1.000000 -964,443.29 964,443.29 0.00
09/17/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,684.8000 1.000000 -100.684.80 100,684.60 0.00
09/18/2018 91282BB33 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/31119/J.P.MORGAN 7,500,000.0000 0.997109 -7,478,320.31 7,478,320.31 0.00
SECURITIES LLC17,500,000 PAR VALUE AT 99.71093747%
09/18/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 300,745.1900 1.000000 300,745.19 300,745.19 0.00
09/19/2018 912796PP8 PURCHASED PAR VALUE OF U S TREASURY BILL 1131/19/J.P.MORGAN 5,000.000.0000 0.991654 4,958,270.17 4,958,270.17 0.00
SECURITIES LLC/5,000,000 PAR VALUE AT 99.1654034%
09/20/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 5,373.2100 1.000000 -5,373.21 5,373.21 0.00
09/21/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 133,069.5100 1.000000 -133.069.51 133,069.51 0.00
09/24/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 2,127,124.3800 1.000000 -2,127,124.38 2,127,124.38 0.00
09/25/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 3,188.2500 1.000000 -3,188.25 3,188.25 0.00
09/25/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 36,433.9500 1.000000 -36,433.95 36,433.95 0.00
09127/2018 313385179 PURCHASED PAR VALUE OF F H L B DISC NTS 10124/18/JEFFERIES 5,000,000.0000 0.999403 4,992,012.50 4,992,012.50 0.00
LLC/5,000,000 PAR VALUE AT 99.84025%
09/27/2018 91282BB33 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/31/19/BMO CAPITAL 10,000,000.0000 0.997188 .9,971,875.00 9,971,875.00 0.00
MARKETS CORP/BONDS/10,000,000 PAR VALUE AT 99.71875%
09/27/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 5,000,000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00
1 of 8
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost GainlLoss
09/28/2018 912796NZ8 PURCHASED PAR VALUE OF U S TREASURY BILL 10111118IRBC CAPITAL 5,000,000,0000 0.999260 4996,30222 4,996,302.22 0,00
MARKETS,LLC/5,000,000 PAR VALUE AT 99.9260444%
TOTAL ACQUISITIONS 108.362,386.0800 408,249.786.28 108,249,786.28 0.00
DISPOSITIONS
09/04/2018 45950KCA6 MATURED PAR VALUE OF INTL FINANCE CORP 1.750% 9/04/181,500,000 PAR .1,500,000.0000 1.000000 1,500,000.00 .1,498,365.00 1,635.00
VALUE AT 100%
09/04/2018 83162CLJO PAID DOWN PAR VALUE OF S B A GTD DEV PART 6.340% 3101121 -15,496.1500 0.967982 15,496A5 -15,496.15 0.00
09/06/2018 912796PY9 MATURED PAR VALUE OF U S TREASURY BILL 9/06/18 5,000,000 PAR VALUE 5,000,000.0000 1.000000 4,997,333.33 4,997,333.33 0.00
AT 100%
09/10/2018 89233HJA3 MATURED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 9110118 8,000.000 PAR .8,000,000.0000 1.000000 7,936,313.33 -7,936,313.33 0.00
VALUE AT 100%
09/12/2018 313385F50 MATURED PAR VALUE OF F H L B DISC NTS 9112/184,000,000 PAR VALUE AT 4,000,000.0000 1.000000 3,997,241.11 -3,997,241.11 0.00
100%
09/13/2018 912796NV7 MATURED PAR VALUE OF U S TREASURY BILL 9/13118 30,000,000 PAR VALUE -30,000,000.0000 1.000000 29,798,784.98 -29,798,784.98 0.00
AT 100%
09/14/2018 313385F76 MATURED PAR VALUE OF F H L B DISC NTS 9114/1810,900,000 PAR VALUE AT -10,900,000.0000 1.000000 10,888,795.56 -10,888,795.56 0.00
100%
09/14/2018 89233HJE5 MATURED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 9/14118 1,500,000 PAR .1,500,000.0000 1.000000 1,487,573.33 .1,487,573.33 0.00
VALUE AT 100%
09/14/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -38,990,620.0000 1.000000 38,990,620.00 -38,990,620.00 0.00
09/17/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.427% 1/01/28 AUGUST FHLMC -15.8600 0.000000 15.86 -15.47 0.39
DUE 9/15118
09/17/2018 43814OAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 .99.741.5700 0.000000 99,741.57 -99,739.63 1.94
09/17/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15120 -133,399.8600 7.603353 133,399.86 -133,378.86 21.00
09/17/2018 47787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 -107.262.2700 9.456132 107,262.27 .107,261.84 0.43
09/17/2018 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4/15120 -53,571.5700 18.933293 53,571.57 -53,566.92 4.65
09/17/2018 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15121 -116.535.6200 8.703658 116,535.62 .115,602.42 933.20
09/17/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15120 -100,169.5100 10.125698 100,169.51 -100,169.00 0.51
09/17/2018 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.500% 9/15121 -183.653.2600 5.522833 183,653.26 -182,505.43 1,147.83
09/18/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.587% 8/15/329/15/18 PRIN AND -875.9500 0.000000 875.95 -876.87 -0.92
INT PYMT
09/18/2018 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210%12/18/20 -206,514.6400 0.000000 206,514.64 -204,247.82 2,266.82
09/181201843814PAB6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21/20 -80,982.9300 0.000000 80,982.93 -80,975.73 7.20
09/18/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,493,299.9300 1.000000 7,493,299.93 -7,493,299.93 0.00
09/19/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z 4,958,270.1700 1.000000 4,958,270.17 4,958,270.17 0.00
2 of
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#0800233.125%12/20/26 AUGUST GNMA -1,004A500 0.000000 1,004.15 -1,020.74 -16.59
DUE 9120/18
09/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#0800883.625% 6120127 AUGUST GNMA -201.0800 0.000000 201.08 -205.48 -4.40
DUE 9/20/18
0920/2018 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#080395 3.625% 4/20I30 AUGUST GNMA -161.5500 0.000000 i6t55 -160.09 1.46
DUE 9120/18
09/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A I I#0804083.625% 5120130 AUGUST GNMA .2.094.2100 0.000000 2,094.21 .2,072.94 21.27
DUE 9/20/18
09/20/2018 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#0809652.750% 7120134 AUGUST GNMA -1,444.7100 0.000000 1,444.71 -1,443.81 0.90
DUE 9/20/18
09/21/2018 43814TABB PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7/22/19 CMO FINAL -125,438.7200 0.000000 125,438.72 -125,435.72 3.00
PAVDOWN
09/24/2018 21687BJO5 MATURED PAR VALUE OF COOPERATIEVE CENTRALE C P 9/24/18 1,500,000 PAR -1,500,000.0000 1.000000 1,482,252.50 -1,482,252.50 0.00
VALUE AT 100%
09/24/2018 40428HPJ5 MATURED PAR VALUE OF HSBC USA INC 2.625% 9/24/18 619,000 PAR VALUE 4 19,000.0000 1.000000 619,000.00 .620,281.33 .1.281.33
AT 100%
09/25/2018 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -12,021.6000 0.000000 12,021.60 -13,614.46 -1,592.86
09/25/2018 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4101/28 AUGUST FNMA -186.7800 0.000000 186.78 -197.54 -10.76
DUE 9/25/18
09/25/2018 31376KT22 PAID DOWN PAR VALUE OFF N M A#357%9 5.000% 9I01/35 AUGUST FNMA .1.908.8900 0.000000 1,908.89 .2,052.06 .143.17
DUE 9125/18
09/25/2018 31381PDA3 PAID DOWN PAR VALUE OFF N M A#466397 3.400%11/01/20 AUGUST FNMA -665.1200 0.000000 665.12 -650.73 14.39
DUE 9/25/18
09/25/2018 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6101/36 AUGUST FNMA -2,352.4300 0.000000 2,352.43 -2,528.86 -176.43
DUE 9/25/18
09/25/2018 31403GXF4 PAID DOWN PAR VALUE OFF N M A#748678 5.000%10/01/33 AUGUST FNMA -10.8400 0.000000 10.84 -11.65 -0.81
DUE 9125118
09/25/2018 31406POV8 PAID DOWN PAR VALUE OFF N M A#815971 5.000% 3101135 AUGUST FNMA -876.4700 0.000000 876.47 -942.21 -65.74
DUE 9/25118
09/25/2018 31406XWT5 PAID DOWN PAR VALUE OFF N M A#823358 3.481% 2101/35 AUGUST FNMA 470.3200 0.000000 470.32 466.65 3.67
DUE 9/25/18
09/25/2018 31407BXH7 PAID DOWN PAR VALUE OFF N M A#826080 5.000% 7101/35 AUGUST FNMA -283.2400 0.000000 283.24 -304.48 -21.24
DUE 9/25/18
09/25/2018 31410F4V4 PAID DOWN PAR VALUE OFF N M A#888336 5.000% 7I01/36 AUGUST FNMA -3,575.4200 0.000000 3,575.42 -3,943.58 -268.16
DUE 9125118
09/25/2018 3138EG6F6 PAID DOWN PAR VALUE OFF N M A#AL0869 4.500% 6I01/29 AUGUST FNMA -278.3200 0.000000 278.32 -294.35 .16.03
DUE 9/25118
09/25/2018 31417VAY3 PAID DOWN PAR VALUE OFF N M A#MA0022 4.500% 4/01129 AUGUST FNMA -575.6100 0.000000 575.61 -608.76 -33.15
DUE 9/25/18
3of8
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/25/2018 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2/25141 -3,664.0200 0.000000 3,664.02 3,662.88 1.14
09/27/2018 912796QAO MATURED PAR VALUE OF U S TREASURY BILL 9/27/18 5,000,000 PAR VALUE -5,000,000.0000 1.000000 4,984,594.44 4,984,594.44 0.00
AT 100%
09/27/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,995,516.3000 1.000000 9,995,516.30 .9,995,516.30 0.00
09/27/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,992,012.5000 1.000000 4,992,012.50 -4,992,012.50 0.00
09/28/2018 31846V567 SOLD UNITSOF FIRSTAMGOVTOB FDCLZ -4,996,302.2200 1.000000 4,996,302.22 -4,996,302.22 0.00
TOTAL DISPOSITIONS .140,700.453.7900 140,373,342.37 .140,370,909.16 2,433.21
OTHERTRANSACTIONS
09/04/2018 30231GAV4 INTEREST EARNED ON EMON MOBIL 2.222% 3/01121 $1 PV ON 3000000.0000 0.0000 0.000000 33,330.00 0.00 0.00
SHARES DUE 9A/2018
09/04/2018 31846V567 INTEREST EARNED ON FIRST AM GOUT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 11,773.53 0.00 0.00
W31/2018 INTEREST FROM Wl/18 TO W31118
09/04/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 22,478.86 0.00 0.00
8/31/2018 INTEREST FROM 8/1/18 TO 8131118
09/04/2018 45950KCA6 INTEREST EARNED ON INTL FINANCE CORP 1.750% 9/04118$1 PV ON 0.0000 0.000000 13,125.00 0.00 0.00
1500000.0000 SHARES DUE 9/4/2018
09/04/2018 B3162CUO INTEREST EARNED ON S B A GTD DEV PART 6.340% 3/01/21 $1 PV ON 1239.9600 0.0000 0.000000 1,239.96 0.00 0.00
SHARES DUE 9/1/2018$0.03170/PV ON 39,115.36 PV DUE 9/1/18
09/05/2018 40428HPR7 INTEREST EARNED ON HSBC USA INC MTN 2.350% 3/05/20$1 PV ON 0.0000 0.000000 29,375.00 0.00 0.00
2500000.0000 SHARES DUE 9/5/2018
09/06/2018 912796PY9 INTEREST EARNED ON U S TREASURY BILL 9/06/18$1 PV ON 5000000.0000 0.0000 0.000000 2,666.67 0.00 0.00
SHARES DUE 9/6/2018 5,000,000 PAR VALUE AT 100%
09/10/2018 3133782M2 INTEREST EARNED ON F H L B DEB 1.500% 3108/19$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00
SHARES DUE 9/8/2018
09/10/2018 89233HJA3 INTEREST EARNED ON TOYOTA MOTOR CREDIT CO C P 9110/18$1 PV ON 0.0000 0.000000 63,686.67 0.00 0.00
8000000.0000 SHARES DUE 9/10/2018 8,000,000 PAR VALUE AT 100%
09/11/2018 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 9/11/2018
09/12/2018 313385F50 INTEREST EARNED ON F H L B DISC NTS 9/12/18$1 PV ON 4000000.0000 0.0000 0.000000 2,758.89 0.00 0.00
SHARES DUE 9/12/20184,000,000 PAR VALUE AT 100%
09/13/2018 912828W UO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 936.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/13/2018 912828WUD FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 936.00 UNITS 0.0000 0.000000 0.00 936.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/13/2018 00440EAP2 INTEREST EARNED ON ACE INA HOLDINGS 2.700% 3/13/23$1 PV ON 0.0000 0.000000 27,000.00 0.00 0.00
2000000.0000 SHARES DUE 9/13/2018
09/13/2018 912796NV7 INTEREST EARNED ON U S TREASURY BILL 9/13/18$1 PV ON 30000000.0000 0.0000 0.000000 201,215.02 0.00 0.00
SHARES DUE 9/13/2018 30,000,000 PAR VALUE AT 100%
4 of
U.S. Bank
Transaction History
09/1 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Arat Cost Gain/Loss
09/13/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 936.0000 UNITS 936.0000 0.000000 0.00 0.00 0,00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/13/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 936.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/14/2018 313385F76 INTEREST EARNED ON F H L B DISC NTS 9/14118$1 PV ON 10900000.0000 0.0000 0.000000 11,201 0.00 0.00
SHARES DUE 9/14/2018 10,900,000 PAR VALUE AT 100%
09/14/2018 4581XOCZ9 INTEREST EARNED ON INTER AMER DEV BK 1.750% 9114/22$1 PV ON 0.0000 0.000000 56,875.00 0.00 0.00
6500000.0000 SHARES DUE 9/1412018
09/14/2018 89233HJE5 INTEREST EARNED ON TOYOTA MOTOR CREDIT CO C P 9/14/18$1 PV ON 0.0000 0.000000 12,426.67 0.00 0.00
1500000.0000 SHARES DUE 9/14/2018 1.501 PAR VALUE AT 100%
09/14/2018 CASH DISBURSEMENT PAID TO UNION BANK OUTGOING DOMESTIC WIRE PER 0.0000 0.000000 33,000,000.00 0.00 0.00
DIR DTD 9/12/18
09/17/2018 01 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9115/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00
SHARES DUE 9/1 512 01 8$0.01 ON 6,270,000.00 PV DUE 9/15118
09/17/2018 084670BR8 INTEREST EARNED ON BERKSHIRE HATHAWAY 2.750% 3115/23$1 PV ON 0.0000 0.000000 34,375.00 0.00 0.00
2500000.0000 SHARES DUE 9/1512018
09/17/2018 532457BF4 INTEREST EARNED ON ELI LILLY CO 1.950% 3/15/19$1 PV ON 4000000.0000 0.0000 0.000000 39,000.00 0.00 0.00
SHARES DUE 9/15/2018
09/17/2018 31348SWZ3 INTEREST EARNED ON F H L M C#786064 3.427% 1101/28$1 PV ON 5.9000 0.0000 0.000000 5.90 0.00 0.00
SHARES DUE 9/1 512 01 8 JULY FHLMC DUE 9/15118
09/17/2018 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4115/20$1 PV ON 943.2300 0.0000 0.000000 943.23 0.00 0.00
SHARES DUE 9/15/2018$0.00116/PV ON 814,302.37 PV DUE 9/15/18
09/17/2018 4581X0CS5 INTEREST EARNED ON INTER AMERICAN DEVEL 1.875% 3115/21 $1 PV ON 0.0000 0.000000 46,875.00 0.00 0.00
5000000.0000 SHARES DUE 911 512 01 8
09/17/2018 24422ESS9 INTEREST EARNED ON JOHN DEERE CAP MTN 2.300% 9/16119$1 PV ON 0.0000 0.000000 57,500.00 0.00 0.00
5000000.0000 SHARES DUE 911 612 01 8
09/17/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 1067.7900 0.0000 0.000000 1,067.79 0.00 0.00
SHARES DUE 9/1 512 01 8$0.00113/PV ON 942,170.02 PV DUE 9115/18
09/17/2018 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5/15123$1 PV ON 1429.1600 0.0000 0.000000 1,429A6 0.00 0.00
SHARES DUE 9/1 512 01 8$0.00124/PV ON 1,151,000.00 PV DUE 9/15118
09/17/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500% 10/15/19$1 PV ON 375.1600 0.0000 0.000000 375.16 0.00 0.00
SHARES DUE 9/1 512 01 8$0.001251PV ON 300,129.25 PV DUE 9/15/18
09/17/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15120$1 PV ON 651.2100 0.0000 0.000000 651.21 0.00 0.00
SHARES DUE 9/1 512 01 8$0.001331PV ON 491,476.61 PV DUE 9115`18
09/17/2018 4778813AD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 1023.7500 0.0000 0.000000 1,023.75 0.00 0.00
SHARES DUE 9/1 512 01 8$0.00152/PV ON 675,000.00 PV DUE 9115/18
09/17/2018 47788CABB INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 3630.0000 0.0000 0.000000 3,630.00 0.00 0.00
SHARES DUE 9/1 512 01 8$0.00202/PV ON 1,800,000.00 PV DUE 9/15118
09/17/2018 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3300 0.0000 0.000000 2,970.33 0.00 0.00
SHARES DUE 9/1512018$0.00222/PV ON 1,340,000.00 PV DUE 9/15118
5 Of
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Pricn, Net Cash Anint Cost Gain/Loss
09/17/2018 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11/15/22$1 PV ON 0.0000 0.000000 19,806.11 0.00 0,00
19806.1100 SHARES DUE 9/15/2018$0.00428/PV ON 4,630,000.00 PV DUE 9/15/18
09/17/2018 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 1626.2300 0.0000 0.000000 1,626.23 0.00 0.00
SHARES DUE 9/1512018$0.001101PV ON 1,478,388.72 PV DUE 9/15/18
09/17/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15120$1 PV ON 539.9600 0.0000 0.000000 539.96 0.00 0.00
SHARES DUE 9/1 512 01 8$0.00123/PV ON 440,782.14 PV DUE 9/15/18
09/17/2018 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 Dw
SHARES DUE 9/15/2018$0.001251PV ON 1,800,000.00 PV DUE 9/15118
09/17/2018 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15123$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00
SHARES DUE 9/15/2018$0.002551PV ON 3,560,000.00 PV DUE 9/15118
09/17/2018 68389XBKO INTEREST EARNED ON ORACLE CORP 1.900% 9/15/21 $1 PV ON 3000000.0000 0.0000 0.000000 28,500.00 0.00 0.00
SHARES DUE 9/15/2018
09/17/2018 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 9047.5000 0.0000 0.000000 9,047.50 0.00 0.00
SHARES DUE 9/1 512 01 8$0.001751PV ON 5,170,000.00 PV DUE 9/15118
091IM018 91282BB33 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/19 0.0000 0.000000 .14,979.62 0.00 Dw
09/18/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.587% 8115/32$1 PV ON 48.4200 0.0000 0.000000 48.42 0.00 0.00
SHARES DUE 9/15/2018$0.002991PV ON 15,889.75 PV DUE 9/15/18
09/18/2018 43814RAGO INTEREST EARNED ON HONDA AUTO 1110%12/18/20$1 PV ON 2658.2000 0.0000 0.000000 2,658.20 0.00 0.00
SHARES DUE 9/1 812 01 8$0.00101/PV ON 2,636,233.44 PV DUE 9/18118
09/18/2018 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1121/20$1 PV ON 766.5500 0.0000 0.000000 766.55 0.00 Dw
SHARES DUE 9/1 812 01 8$0.00131/PV ON 585,901.43 PV DUE 9/18/18
09/18/2018 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9120/21 $1 PV ON 4609.2500 0.0000 0.000000 4,609.25 0.00 0.00
SHARES DUE 911 812 01 8$0.001491PV ON 3,090,000.00 PV DUE 9/18/18
09/18/2018 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5118/22$1 PV ON 1710000.0000 0.0000 0.000000 4,289.25 0.00 0.00
SHARES DUE 9/18/2018
09/20/2018 36225CAZ9 INTEREST EARNED ON G N M A 114080023 3.125% 12120/26$1 PV ON 51.7900 0.0000 0.000000 51.79 0.00 0.00
SHARES DUE 912 012 01 8 AUGUST GNMA DUE 9120/18
09/20/2018 36225CC20 INTEREST EARNED ON G N M A 11#080088 3.625% 6/20/27$1 PV ON 64.0700 0.0000 0.000000 64.07 0.00 Dw
SHARES DUE 9/2 012 01 8 AUGUST GNMA DUE 9120/18
09/20/2018 36225CNM4 INTEREST EARNED ON G N M A 11#080395 3.625% 4/20/30$1 PV ON 24.1800 0.0000 0.000000 24.18 0.00 0.00
SHARES DUE 9/2 012 01 8 AUGUST GNMA DUE 9120/18
09/20/2018 36225CN28 INTEREST EARNED ON G N M A 11#0804083.625% 5/20/30$1 PV ON 189.6200 0.0000 0.000000 189.62 0.00 0.00
SHARES DUE 9/2 012 01 8 AUGUST GNMA DUE 9120/18
09/20/2018 36225DCB8 INTEREST EARNED ON G N M A 11#080965 2.750% 7/20/34$1 PV ON 137.8500 0.0000 0.000000 137.85 0.00 0.00
SHARES DUE 912 012 01 8 AUGUST GNMA DUE 9120/18
09/21/2018 43814TABB INTEREST EARNED ON HONDA AUTO 1.420% 7122/19$1 PV ON 125438.7200 0.0000 0.000000 148.44 0.00 DW
SHARES DUE 9/21/2018
09/21/2018 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 3970000.0000 0.0000 0.000000 7,482.35 0.00 0.00
SHARES DUE 9/21/2018
6 Of
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/24/2018 21687BJQ5 INTEREST EARNED ON COOPERATIEVE CENTRALE C P 9/24/18$1 PV ON 0.0000 0.000000 17,747.50 0.00 0,00
15W000.0000 SHARES DUE 9/24/2018 1,500,000 PAR VALUE AT 100%
09/24/2018 40428HPJ5 INTEREST EARNED ON HSBC USA INC 2.625% 9/24/18$1 PV ON 619000.0000 0.0000 0.000000 8,124.38 0.00 0.00
SHARES DUE 9/24/2018
09/25/2018 03215PFN4 INTEREST EARNED ON AMRESCO 0.04227% 6/25/29$1 PV ON 323.7200 0.0000 0.000000 323.72 0.00 0.00
SHARES DUE 9/2 512 01 8$0.00004/PV ON 133,743.29 PV DUE 9/25/18
09/25/2018 313%VJ98 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 9/25/2018
09/25/2018 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9125/43$1 PV ON 4345.6300 0.0000 0.000000 4,345.63 0.00 0.00
SHARES DUE 9/2 512 01 8$0.005421PV ON 802,269.78 PV DUE 9/25/18
09/25/2018 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 68.4100 0.0000 0.000000 68.41 0.00 0.00
SHARES DUE 9/25/2018 AUGUST FNMA DUE 9/25118
09/25/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01135$1 PV ON 483.8700 0.0000 0.000000 483.87 0.00 0.00
SHARES DUE 9/25/2018 AUGUST FNMADUE 9/25/18
09/25/2018 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 1014.6300 0.0000 0.000000 1,014.63 0.00 0.00
SHARES DUE 9/2 512 01 8 AUGUST FNMA DUE 9/25/18
09/25/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6101136$1 PV ON 473.3200 0.0000 0.000000 473.32 0.00 0.00
SHARES DUE 9/2 512 01 8 AUGUST FNMADUE 9/25/18
09/25/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 10.7600 0.0000 0.000000 10.76 0.00 0.00
SHARES DUE 9/25/2018 AUGUST FNMADUE 9/25118
09/25/2018 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 823.4800 0.0000 0.000000 823.48 0.00 0.00
SHARES DUE 9/2 512 0 1 8 AUGUST FNMADUE 9/25/18
09/25/2018 31406XWT5 INTEREST EARNED ON F N M A#823358 3.481% 2/01/35$1 PV ON 351.1800 0.0000 0.000000 351.18 0.00 0.00
SHARES DUE 9/2 512 01 8 AUGUST FNMADUE 9/25/18
09/25/2018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON 94.3000 0.0000 0.000000 94.30 0.00 0.00
SHARES DUE 9/2 512 01 8 AUGUST FNMADUE 9/25/18
09/25/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01136$1 PV ON 930.4200 0.0000 0.000000 930.42 0.00 0.00
SHARES DUE 912 512 01 8 AUGUST FNMADUE 9/25118
0912MO18 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6101129$1 PV ON 47.2900 0.0000 0.000000 47.29 0.00 0.00
SHARES DUE 9/25/2018 AUGUST FNMADUE 9/25/18
09/25/2018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 77.4100 0.0000 0.000000 77.41 0.00 0.00
SHARES DUE 9/2 512 01 8 AUGUST FNMA DUE 9125/18
09/25/2018 31397QREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 520.4700 0.0000 0.000000 520.47 0.00 0.00
SHARES DUE 9/2 512 01 8$0.00229/PV ON 227,547.03 PV DUE 9125/18
09/26/2018 912828W UO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/26/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 416.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/26/2018 91282SWUD PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 416.0000 UNITS 416.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
7 of
U.S. Bank
Transaction History
09/01/2018 Thru 0 913 0/2 01 8
Ent,y D.t.CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/2612018912828WUO STATE COSTOF U STREASURY I PS 0.125% 7/15/24 ADJUSTED BY416.00 UNITS 0,0000 0,000000 0.00 0.00 0,00
INCREASE TO ADJUST FOR CHANGE IN CPI
09/27/2018 91282BB33 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/19 0.0000 0.000000 -23,641.30 0.00 0.00
09/27/2018 912796QAO INTEREST EARNED ON U S TREASURY BILL 9/27/18$1 PV ON 5000000.0000 0.0000 0.000000 15,405.56 0.00 0.00
SHARES DUE 9/27/2018 5,000,000 PAR VALUE AT 100%
TOTAL OTHER TRANSACTIONS 1,352.0000 .32,123,556.09 1,352.00 0.00
8 of
Callan
September 30,2018
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
Information determined herein includes confidential,trade secret and pmprietlry Information.Neither this Report nor any specific information command therein Is
to be used other than by the intended recipient for its intended purpose or disseminated to any other person without Callan s permission Certain information
therein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan had 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 informational 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
September 30, 2018
Capital Markel Review 1
Active Management Overview
Market Overview 7
Domestic Fixed Income 8
Asset Allocation
Investment Manager Asset Allocation 10
Investment Manager Returns 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 September 30, 2018
Asset Allocation
September 30, 2018 June 30, 2018
Market Value Weiaht Net Na.Inv. Inv. Return Market Value Weigh[
Domeaac Flxetl Income
Lang iann Operating Fund' 462,141,157 86.01% 0 1,280,198 460,860,959 74.70%
cAdruno $597,329.511 100.0% $01,500,000) $1,967.587 $616,961,925 100.0%
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Funtl^ 0.28% 0.06% 0.89% 1.10% 1.11%
Chandler 0.28% 0.06% 0.89% - -
Blmbg Gov OCred 1-5 Year Idx 0.26% (0.38%) 0.72% 1.06% 1.16%
ML 1-5 Govt/Corp 0.28% (0.31%) 0.77% 1.11% 1.23%
Liquid Operating Monies^ 0.50% 1.62% 0.91% 0.60% 0.47%
Chandler 0.50% 1.62% 0.91% - -
Citigrouo 3 Wrth Treasury Bill 0.50% 1.57% 0.80% 0.49% 0.37%
Total Fund 0.33% 0.40% 0.81% 0.98% 0.90%
Target* 0,33% 0.06% 0.78% 0,99% 1,06%
`Current Guarler Target=80.0%Mi.1-5 GoWCom and 20.0%Ci4 3mo T-Bills.
^Assets mr,transferred in Mod to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Recent Developments
During the quarter, $81.5 million was withdrawn from the Liquid Operating Monies, while the
Long Term Operating Fund experienced no net new investments.
Organizational Issues
N/A
Fixed Income Market Snapshot
Rates moved higher across the curve during the quarter, pushed up by strong U.S. economic
data and increasingly hawkish monetary policy. As expected, the Federal Open Markel
Committee (FOMC) increased the Federal Funds rate by 25 basis points at their September
meeting, bringing the target range to 2.00% -2.25%. The Committee also removed language
that referred to current monetary policy as "accommodative," although they downplayed the
significance of the change. Further, the FOMC noted expectations for an additional hike in
December and three more in 2019. The 2-year Treasury rate rose 29 bps to 2.81%, the 10-
year Treasury rate increased 20 bps to 3.05%, and the 30-year Treasury rate climbed 21 bps
Callan OrangeD my Sanilatm Distnd
to 3.19%. The yield curve flattened over the quarter with the spread between the 2-year and
10-year rates falling from 33 bps to 24 bps.
The Bloomberg Aggregate Index was flat for the quarter, returning only two bps as
underlying sector returns were mixed. The more interest rate sensitive sectors detracted,
with the Bloomberg U.S. Government Index falling 0.6%, the Bloomberg Long Gov/Credit
Index losing 0.5%, and the Bloomberg Mortgage Backed Securities Index declining 0.1%.
Conversely, credit (Bloomberg Credit Index: +0.9%) performed well as investment grade
spreads tightened 17 bps. Strong corporate earnings and limited issuance boosted
performance of the sector. Among sectors not represented in the Aggregate, high yield (ML
U.S. High Yield Cash Pay Index: +2.4%)was the best performer followed by leveraged loans
(CS Leveraged Loan Index: +1.9%). TIPS (Bloomberg U.S. TIPS Index: -0.8%) was the
worst performer in the quarter amid rising real yields, but is also not included in the
Aggregate.
Manager Performance
— The Long Term Operating Fund returned 0.28% during the quarter, performing in line with
the MIL U.S. 1-5 Corp/Gov Index (+0.28%) and ranking in the 92nd percentile versus peers.
The portfolio's duration is lower than the benchmark (2.37 years versus 2.68 years), which
was additive as interest rates increased. Positive attribution relative to the benchmark in the
third quarter also stemmed from an overweight allocation to asset-backed securities and
security selection in corporate credit. The lower effective yield of the Long Term Operating
fund stems from the shorter duration position (2.85% versus the benchmark's 3.05%). The
portfolio had less than 30% invested in credit (23%) and less than the permitted 20%
invested in the combination of asset-backed securities (9%), commercial mortgage backed
securities(0%), and CMOs(1%)as of September 30, 2018 (see page 20).
The Liquid Operating Portfolio gained 0.46°% (after fees) in the quarter, which modestly
trailed the return of the 3-month Treasury(+0.50%). The Portfolio returned 1.46% (after fees)
for the trailing 12-months and ranked in the 26d'percentile versus peers.
Cordially,
Gordon M. Weightman, CFA
Senior Vice President
2
Capital Market Review
Capital Market Overview September 30, 2018
U.S.EQUITY U.S.Equity:Quarterly Returns
The U.S.equity market posted broad-based gains in the third
quarter fueled by strong economic growth, robust corporate Russell 300 Ei%
earnings,and heightened stock buybacks.Several major
indices hit record levels during the quarter,and the 7.7%gain
for the S&P 500 was its biggest since the fourth quarter of Russell 1000 7.4%
2013.Volatility was muted in spite of persistent headlines
around trade war threats and the ever-changing negotiations. Russell 1000 Growth 9.2%
Large Cap Outpaced Small Cap(Russell 1000:+7.4%; Russell 1000 Value - 5.7%
Russell 2000:+3.6%)
- Tax reform and domestic prosperity contributed to an S&P 500 - 7.7%
acceleration in Corporate earnings growth,and valuations
remained elevated as strong sentiment persisted given Russell Midcap - S0%
positive economic data.
- Amazon(+17.8%),Apple(+22.4%),and Microsoft(+16.4%) Russell 2500 - 4.7%
were strong contributors to large cap outperfonnance.
- FAANG stocks plus Microsoft had a more muted impact than Russell 2000 3.6%
in previous quarters,but still contributed ready 25%of the
S&P 500's quarterly return.
- All sectors landed in positive territory with Health Care U.S.Equity:One•Year Returns
(+14.5%),Industrials(+10%),and Communication Services q y'
(+9,9%)as the strongest performers.
- The new Communication Services sector represents 10%of Russa113000 17.6%
the S&P 500 and includes several FAANG stocks such as
Alphabet, Facebook,and Netftix;Tech and Consumer Russell 1000 - 17.8%
Discretionary now represent lower weightings in the index.
Growth Continued to Outperform Value(Russell 1000 Russell 1000 Growth 26.3%
Growth:+9.2%;Russell 1000 Value:+5.7%)
- Divergence between Growth and Value approaching Russell 1000 Value 9.5%
historical high;Growth outpacing Value this year by the
widest margin in 15 years within large cop(Russell 1000 S&P 500 - 17.9%
Growth YTD:+17.1%vs. Russell 1000 Value YTD:+3.9%)
due largely to ongoing euphoria of the FAANG stocks. Russell Midcep 14.0%
- Momentum continued as the leading factor for the quarter
and year-todate;value has been the worst-performing style Russell 2500 16.2%
for the last 18 months.
Russell 2000 15.2%
Russell Sector Returns,Quarter ended September 30,2018
•Russell 1000 is Russell 2000
12.9%
47%
L RIME M aa% 1.4%
Health Care Producer Technology Consumer Consumer Financial Utilities Communication Materials& EmMy
Durables Discretionary Staples Services Services Processing
Sources:FTSE Russell,Standard&Poor s
Callan
Capital Market Overview(continued) September 30, 2018
NON-U.S./GLOBAL EQUITY Global Equity:Quarterly Returns
Markel divergence has emerged after synchronized growth in
2017.The U.S.continues to post positive returns while non- MSCI ACWI - 4.3%
U.S.developed and emerging markets have rolled over year-
to-dale,dragged down by geopolitical and economic MSCI World _ 5.0%
uncertainties.
MSCI ACWI ex USA ' 0.7%
Global/Non-US 0.8%; Developed(MSCI ;MS I Word MSCI
Europe:+0.8%;MSCI Japan:+3.7%;MSCI Word ex USA: MSCI wodtl ex USA , 1.3%
+1.3%)
- The dollar rallied against the euro and yen given the MSCI ACWI ex USA SC
fundamentals of the U.S.economy and Fed's contractionary MSCI World ex USA SC -0.9% '
monetary policy;other central banks maintained status quo
- Global trade tensions coupled with Brexfl negotiation and MSCI Europe ex UK . 1.8%
Italy's populism concerns tempered the European market
despite solid earnings growth;re-election of Prime Minister MSCI United kingdom -1.7% .
Shinzo Abe and GDP growth sparked the Japanese market
MSCI Pacific ex Japan
- Top sector performers were Health Care,
Telecommunication Services,and Energy MSCI Japan 3.7%
- Real Estate,Financials,and Consumer Staples were hurt by MSCI Emerging Markets
rising interest rates and a flattening yield curve
- Style had a de minimis Impact;however,Growth moderately MSCI China -7.5% —
outperformed Value.Volatility and small cap factors were out
of favor given market uncertainties MSCI Frontier Markets -2.0% .
Emerging Markets(MSCI EM:-1.1%)
- Emerging markets were under pressure from a rising dollar, Global Equity:One-Year Returns
U.S.interest rates,and U.S.-China trade frictions
- Turkey was the worst-performing country within emerging MSCI ACWI — 9.8%
markets as the lira and local currency bonds crashed due to
the twin deficit, high level of dollar debt,and inflation MSCI World — 11.2%
- The economic slowdown in China and trade tensions with
the U.S.weakened the market MSCI ACWI ex USA , 1.8%
- Brazil and Russia were among the best performers due to MSCI World ex USA . 2.7%
climbing oil prices
- Energy was the best performer supported by rising oil prices; MSCI ACWI ex USA sc 1.9%,
Consumer Discretionary was the worst sector performer MSCI World ex USA SC ■ 3.4%
weighed down by China and India
- Value and large cap factors were in favor as Energy gained MSCI Europe ex UK -1.5% '
traction with rising oil prices and momentum struggled as
market leadership rotated away from Asian tech companies MSCI United Kingdom . 2.9%
International Small Cap (MSCI World ex USA Small Cap: MSCI Pacific ex Japan . 4.3%
+0.9%;MSCI EM Small Cap:4.2%) MSCI Japan — 10.2%
- Both non-U.S.developed and emerging market small cap
underperformed large cap as appetite for risk waned due to MSCI Emerging Markets -0.8% I
rising interest rates/dollar,global trade tensions,and
geopolitical conflicts MSCI China -2.2% ,
- Value was favored in both non-U.S.developed and emerging MSCI Frontier Markets -7.7% _
market small cap as the value-oriented Energy sector thrived
with rising oil prices
Source:MSGI
Callan
Capital Market Overview(continued) September 30, 2018
U.S.FIXED INCOME U.S.Fixed Income:Quarterly Returns
Fixed income performance was Oat for the third quarter.The
U.S.Treasury yield curve rose across the maturity spectrum on Blmberg Barclays Gov/Cr 1-3 Yr ' 0.3%
batter-than-expected corporate earnings and solid U.S.
economic data despite increased headline risks from U.S.
trade tensions and European political uncertainties.The Blmberg Barclays Intern Gov/Cr 10.2%
best-performing sector was investment grade corporate,while
the worst was U.S.Treasuries. Investors searching for shorter Blmberg Barclays Aggregate 0.0%
duration spreads helped both the commercial
mortgage-backed securities(CMBS)and asset-backed Blmberg Barclays Long Gov/Cr -0.5% '
securities(ABS)markets as well,but higher Interest rates
slowed prepayments and extended the duration of agency
MSS,resulting in its underperformance. Blmberg Barclays Universal ' 0.3%
In other markets, U.S.below4rivesiment grade debt and bank
loans also provided strong results this quarter as a lack of new CB Leveraged Loans 1.9%
high yield issuance and demand for bank loans from
collateralized loan obligation(CLO)formation provided strong Blmberg Barclays High Yield 2.4%
support.
Blmberg Barclays TIPS -0.8% .
Bloomberg Barclays US Aggregate Bond Index:+0.02%in
30;-1.6%YTD
- 10-year U.S.Treasury yield rose steadily,reaching a high of U.S.Fixed Income:One-Year Returns
3.10%,before settling at 3.06%as strong economic data
repriced investors inflation expectations and increased the
probability of a December rate hike by the Federal Reserve Blmberg Barclays Gov/Cr 1-3 Yr 10.2%
- The yield curve flattened with short-term interest rates rising
quicker than the longer-tens rate.The spread between the Blmberg Barclays Intern Gov/Cr -1.0% '
2-year and 10-year key rates narrowed 9 bps to 24 bps from
last quarter,the tightest in 10 years Blmberg Barclays Aggregate -1.2% ,
Investment Grade Corporates:+1.0%in 30;.2.3%YTD Blmberg Barclays Long Gov/Cr -2.7% ■
- New issuance remained strong with an average of 2-3x
oversubscribed demand throughout the quarter Blmberg Barclays Universal -1.0% '
- Spreads continued to narrow this quarter despite leverages
increasing within the sector CS Leveraged Loans 5.6%
- Higher rates and weaker overall fundamentals caused this
sector to post negative results year to date Moberg Barclays High Yield . 3.0%
High Yield;+2.4%in 3Q;+2.6%YTD Blmberg Barclays TIPS I04%
- Low new issuance volume and stable fundamentals
compressed spreads
- Bond issuance was$41 billion,33%lower than 3Q17 U.S.Treasury Yield Curves
September 30,2018 June 30,2018
Bank Loans:+1.8%in 3Q;+4.0%YTD September 30,2017
- Demand continues for floating rate securities despta 4%
covenant-lite structures and higher spread duration 3%
- Heavy issuance continued through the quarter,YTD 2%
leveraged loan issuance is above$900 billion,driven by
leveraged buyout and mergers-and-acquisitions activities 1%
- CLO formation also increased demand in the third quarter 0%
0 5 10 15 20 25 30
Maturity(Years)
Sources'Bloomberg.Bloomberg Barclays.Credit Suisse
Callan
Capital Market Overview(continued) September 30, 2018
NON-U.S.FIXED INCOME Global Fixed Income:Quarterly Returns
Volatility Hinders Local EM Debt
— The quarterly return for the JPM EMBI Global Diversified all Barclays GI Aggregate -0.9% ,
Index(USD denominated)was+2.3%with all sub-regions Blmberg Barclays GI Agg(nag) 0.0%
delivering positive results. Local currency emerging markets,
however,fared more poorly.The JPM GBI-EM Global
Diversifed Index fell 1.8%for the quarter,but also endured Blmberg Barclays GI High Yield ■ 2.0%
significant intra-quarter volatility including a 6.1%drop in
August. Blmberg Barclays GI Agg ex US -1.7% ■
— Further,return dispersion among countries was significant.
Argentina(-35%)has seen its peso fall more than 50%this JPM EMBI Global Diversified . 2.3%
year to a record low as investors were spooked by previous
currency debacles and worries over the economic picture. In JPM GBI-EM Global Diversified -1.8% ■
addition to securing support from the International Monetary
Fund,the country's central bank hiked short-term interest
rates 15 percentage points to a global high of 60%.Turkey JPM EMBI GI Di,,/JPM GBI-EM GI Div 10.2%
(-27%)endured a Similar currency rout,though for different
reasons.U.S.-Imposed sanctions and concerns over central JPM CEMBI . 1.3%
bank policy were the Min drivers of the lira's weakness.
Turkey hiked short rates by 6.25 percentage points to 24%to
stem its currency slide.
Global Fixed Income:One-Year Returns
— Elsewhere, returns were far more modest(positive or
negative)with only Russia(-6%)and Mexico(+6%)being
noteworthy. almberg Barclays GI Aggregate -1.3% '
— Issuers in Europe faced a different challenge as political
uncertainties surrounding Italy caused that market to Blmberg Barclays GI Agg(bag) ' 0.8%
weaken.
Blmberg Barclays GI High Yieltl 10.3%
Blmberg Barclays GI Agg ex US
JPM EMBI Global Diversified -1.9% ,
JPM GBI-EM Global Diversified-7.4%
JPM EMBI GI DivIJPM GBI-EM GI Div 4.6% -
JPM CEMBI -1.2% '
Change in 10-Year Global Government Bond Yields
2Q18 to 3Q18
U.S.Treasury — 20 bps
Germany — 17 bps
U.K. 30 bps
Canada — 26 bps
Japan — Slips
Sources Bloombe,Bloomberg Barclays.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 first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
Large Cap Equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended September 30,2018
12%
to%
8% (42)9
6%
E %- A(57)
'v
m 2%
45)R"
0%
(2%) 100)a
(4%) large Cep Small Cap Non-US Domestic Non-US Real
EquNy Equity Equity Fixed Income Fixed Income Estate
V. s vs
5&p SOU Russell 2000 MSCI EAFE aiming Aggr ad Citi Non-US GoA NCREIF Index
10ih Percentile 9.13 952 2.54 040 (0.F7) 2]3
250 Percentile 8.41 T36 1.M 0,26 (073) 2,33
Median 7.31 406 0.91 0,17 040) 1,71
75th Percentile 5.90 1 M 0.32 0,08 1.61 1.29
90th Percentile 5.00 0a6 (O.d8) (0.09) 1.71 0.54
Index • 7.71 358 1.35 0,02 (2,19) 1,81
Range of Separate Account Manager Returns by Asset Class
One Year Ended September 30,2018
40%
35%
so%
25%
ca 20%
ais% (51) (50)
M to%
5% (59)®(46)
0% (29)
(5%)
(10%) barge Cap Small Cap Non-Us Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
se vs
S&P No Russell 2000 MBGIEAFE Blmbg Aggr Bd Giti Non U5GoA NCREIF Index
10M Percentile 29.14 33.60 8.26 0.37 0.17 11.25
25th Percentile 24.32 2482 Zed 0.So (1.17) 9.59
Median 18.07 15.34 2.53 0.81 (2.19) 7.62
75th Percentile 12.95 WAS 0.51 1.06 (3.21) 6.16
90th Percentile 9.60 7.08 (1.1]) 1.2fi 6.2 1.90
Callan
• 17.91 15.24 2.74 (1.22) (1.57) 7.31
Callan Drax,e County Sanitation Diatdct 7
Domestic Fixed Income
Active Management Overview
Yields rose during the quarter;the 2-year U.S. Treasury Note climbed nearly 30 bps to close at a multi-year high of 2.81%
while the 10-and 30-year Treasury yields rose roughly 20 bps The yield curve continued to flatten with the spread between
the 2-year Treasury yield and the 10-year Treasury yield falling to 24 bps as of quarter-end.As expected,the Fed hiked short
rates by 25 bps in September and one more hike in December 2018 appears likely. Markets expect two more hikes in 2019
while the median Fed projection is for three.The 10-year breakeven inflation rate rose mcdesfly to 2.14% (9/30)from 2.11%
(6/30). The Bloomberg Barclays TIPS Index fell 0.8% as rates rose. The Bloomberg Barclays Aggregate Index was flat
(+0.0%)for the quarter with the U.S.Treasury sector(-0.6%)underperforming the Corporate bond sector(+1.0%). High yield
(Bloomberg Barclays High Yield Index: +2.4%)outperformed and leveraged loans rose 1.8% (S&P: LSTA Leveraged Loan).
Separate Account Style Group Median Returns
for Quarter Ended September 30,2018 Blmbg Aggregate: 0.02%
4% Blmbg High Yield: 2.40%
Blmbg Long Gov/Creel (047%)
3%
2.37
2% —————————————————————————————i3OY— ——
m
K
1%
0.49 0.3fi 0.39
0.11
0%
(0 36)
(1%)
Defensive Intermed Care Core Plus Extended Bank High Yield
Bond Maturity Loans
Separate Account Style Group Median Returns
for One Year Ended September 30,2018 Blmbg Aggregate: (1,22%1
0% Blai High Yield: 3.05%
Blmbg Long Gov/Creel (2.73%)
6%
5.32
4%
3.03
2%
0.71
m
� 0% NEER
(0.52) (0.01) (0.49)
(2.68)
4%1
(6%)
Defensive Intermed care Core Plus Extended Bank High Yleltl
Callan
Maturity Leans
Callanchange County Sanitation Distinct 6
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of September 30, 2018,with
the distribution as of June 30,2018. 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
September 30,2018 June 30,2018
Market Value Weight Net New Inv. Inv.Return Market Value Weight
Domestic Fixed Income
Long Term Operating Fund' 462,141,167 86,01% 0 1.280.190 460.860.959 74,70%
Liquid ODeratina Monies' 75,188,355 13.99% (81,500,000) 507.309 156.100.966 25.30%
Total Fund 3537,329,511 100.0% V8115001000) $1,867,587 $616.961,925 100.0%
'Chandler replaced PIMCO during,the 4th quarter of 2014.Assets were transferred In+lnd as of 12I01I2014.
Callan OraM,e 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 September
30, 2018. 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.
Returns for Periods Ended September 30,2018
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 0.28% 0.06% 0.89% 1.10% 1.11%
Chandler 0.28% 0.06% 0.89% - -
Blmbg Govt/Cred 1-5 Year Idx 0.26% (0.38%) 0.72% 1.06% 1.16%
ML1-5 Govt/Corp 0.28% (0.31%) 0.77% 1.11% 1.23%
Liquid Operating Monies^ 0.50% 1.62% 0.91% 0.60% 0.47%
Chandler 0.50% 1.62% 0.91% - -
Citigroup 3-Month Treasury Bill 0.50% 1,57% 0.80% 0.49% 0,37%
Total Fund 0.33% 0.40% 0.81% 0.98% 0.99%
Target* 0.33% 0,06% 0.78% 0.99% 1,06%
Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callanoranea County sannaron Dist e „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended September
30, 2018. 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.
Returns for Periods Ended September 30,2018
Last Last Last
10 15 23
Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 2.54% 2.89% 4.19%
Blmbg Govt/Cred 1-5 Year Idz 2.30% 2.62% 4.00%
ML 1-5 Govt/Corp 2.33% 2.64% 4.03%
Liquid Operating Monies^ 0.48% 1.44% 2.58%
Ciligroup 3-Month Treasury Bill 0.32% 1.24% 2.28%
Total Fund 2.16% 2.60% 3.94%
Target` 1.93% 2.36% 3.68%
Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan 0mr,e County SantlerinnDlstnd 12
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periotls. 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-
9/2018 2017 2016 2015 2014
Domestic Fixed Income
Long Term Operating Fund^ 0.26% 1.18% 1.58% 0.85% 1.98%
Chandler 0.26% 1.18% 1.58% 0.85% -
Blmbg Govl/Cred 1-5 Year Idx (0.07%) 1.27% 1.56% 0.97% 1.42%
ML 1-5 Govt/Com (0.04%) 1.28% 1.62% 1.05% 1.51%
Liquid Operating Monies^ 1.31% 0.91% 0.47% 0.22% 0.09%
Chandler 1.31% 0.91% 0.47% 0.22% -
Citiarouo 3-Month Treasury Bill 1.29% 0.84% 0.27% 0.03% 0.03%
Total Fund 0.52% 1.02% 1.15% 0.80% 1.73%
Target* 0.23% 1.19% 1.35% 0.85% 1.21%
*Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan mrenaa County Santle,Inn mistnd „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periotls. 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%
Citigroup 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/Gov:1-5Y and 20.0%FTSE 3 Mo T-Bill.
Msssets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Orarxre County Santlerinn 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
14%
1,2%
1.0%
0.8%
N
K
0.6%
04% YCLS�W'YL'IY�
0.2%
0.20% 0.30% 0.40% 0,50% 0,60% 070% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
1.5%
1.0%
m
K
0.5%
0.0%
0.10% 020% 0.30% OA0% 0.50% 0.60% 0.70% 0.80% 0.90% 1,00% 1.10% 1,20% 1.30%
/'�,, 1,, Standard Deviation
Callan Omrr County Sandation Oisftt 15
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended September 30, 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 0.28%return Beginning Market Value $460,860,959
for the quarter placing it in the 92 percentile of the Callan Net New Investment $0
Short Term Fixed Income group for the quarter and in the 89 Investment Gains/(Losses) $1.280,198
percentile for the last year.
• Long Term Operating Fund's portfolio underperformed the Ending Market Value $462,141,157
ML US Corp/Govt 1-5Y by 0.01% for the quarter and
outperformed the ML US Corp/Govt 1-5Y for the year by
0.38%.
Performance vs Callan Short Term Fixed Income(Gross)
5%
4% 2
9)®B
2% 447) A(3 )
1% 90JqA1] 61 ]53
0% g1)IA9
(1%) Last Otr Last Last3 Yrs Chandler Last 5Ym Last]yet LSN10Yrs 61noe9/30015
Yr Inception
10U Percentile 0.73 1 Al 1.96 1.91 2.01 22] 3.53 488
25U Percen111e 058 f03 1,57 1,62 1.61 1.91 291 4.11
Median OA9 071 1,23 1,24 1.26 1.40 230 384
]5U Percentile 0.40 OA3 1.00 1.11 1.D5 1.12 1.90 388
90U Percentile 0.29 (0.01) 0.76 0.94 0.94 0.89 1.29 3.10
Long Term
Operating Fund •A 0.28 0.06 0.89 1.03 1.11) 1.11 2.54 4.19
Undue G0v0Crad
t-5 Year ldx 06 026 (038) 0.]2 0.99 1.05 1.16 2.30 400
ML US
Com/GmA 1-6Y ♦ 0.28 (081) 0.]] 1.04 1.11 1.23 2.33 4.03
Callan Short Term Fixed Income(Gross)
Relative Return vs ML US Corp/Govt 1-SY Annualized Seven Year Risk vs Return
1.6% 5.0%
4.5%
0%
4.0%
E o5% 3.5%
N
3.0%
Of00% �2.5%
> d
p 2.0%
0.5%
11 2012 2013 2014 2015 2016 2017 N18 0.0%0.0 0.5 16 15 20 25 30
Standard Deviation
Callan
Term Operating Fund
Callan Orange County Sanitation District 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 Short Term Fixed Income(Gross)
62
�g0 AN( 11 1 11
aA 2]®B 8 t�B( �1y�Bl2®al 2)
! A10 )
%1 12117-Me W17 2016 2015 2014 2013 M12 2011 2010 2009
loth Percentile 122 2.24 2.82 1.l7 1.50 1.20 4.46 2ffi 4.71 1374
25th Percentile 0.92 1.74 217 101 1.207 0.81 2.60 232 4.01 8.60
Median 0.]2 1.31 156 081 I'll 065 181 185 3.18 5.94
25th Pementle 0.53 0.95 1.18 0,76 0.07 040 145 1,65 2]2 2.53
90h PerceMile 0.16 0.66 1.03 064 0.73 0.29 0.92 1.44 241 1.82
Long Term
Op ung Fund *A 0.26 1.18 158 085 1,98 (1,77) 306 459 4A2 5.52
elm Gowcred
-5 Year I& ■B (0.07) 1.27 1.56 0.97 1.42 0.28 2.24 3.14 4cli 4.62
ML US
Cor,/GO 15Y ♦ (0.04) 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% --- --- __ -- -- --- --- --- --- ---
of 1%
y 0%
lY
(2%)
(4%) --- --- -------- --- --- ---
(5%)
08 2009 2010 2011 2012 2013 2014 M15 2016 2017 2018
Long Term Operal ng Fund 0 Blmbg Go Cmd 15 Year Idx 0 Callan Short Tema Fa Inc
Risk Adjusted Return Measures vs ML US Corp/Govt 1-5Y
Rankings Against Callan Short Term Fixed Income(Gross)
Seven Years Ended September 30,2018
25
20
1.5
0 6�
0.5 A 98�
0
0.5)0 A98
(1.0) •6(98)
(1.5)
(2.0) Alpha Sharpe Excaee Retum
Ral. Redo
Im Parcentlla 1.24 1.86 1.48
25th Percentile 0.87 1.55 0.89
Median 0.40 1.26 0.41
75th Pervun1 0.24 1.00 (0.18)
gg BOIh Percentlla 0.02)) 0.76 (0.64 0.53 ))
LonBlmbg GovVCree1-5Yearltlx Fund MB R0]) 0.67 �1.23)
Callan Omrge County sanitation Disidct 10
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 Short Term Fixed Income
as of September 30,2018
45
4.0
3.5
3.0 (2)♦ (20)♦ �(21) (60) (85)
2 0 (11) (66)�
o 69)
1.5
1.0
0.5
0.0
(0.5) Average event. Coupon CA
Duration life Yield Rate Convexity
101b Pemen1le 2.39 3.33 3.73 3.26 0.10
25th Pemen9le 1.W 2.42 3.29 2.97 0.05
Median 1.77 2.04 3.09 2.63 0.04
TStb Percentile 1.3T 1.T1 2.96 2.32 000
901M1 Pemen8le 0.99 1.12 2.66 2.04 (0.04)
Long Term
Operating Fund • 2.37 2.74 2.85 2.05 -
elmb9 Gov/Cred 1-5 Yr ♦ 2.68 2.84 3.05 2.39 0 09
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
September 30,2018 vs Callan Short Term Fixed Income
ae. � s ray
�.>
.t________�__ AAA
i
amc 144AI ° �P^� AAa (13)
274
(35)
AA-
w Aa
r.xeumpva uri A
A Weighted Average
Quality Rating
cme loth Percentile M.
25m Percentile AA
au Median AA-
]SthPercentile At
slain Percentile A
0% 10% 20% 30% 60% 50% 60% 70% 80%
Long Term Operating FUM Callan SM1art Term Fixed Income Long Term
Operating Fund 0 AA
,,11,,M 0 Blmbg Gov/Cmd 1-5 Yr Blmbg GovlCred 1-5 Yr ♦ AA*
L.&3 r Orange County Sanitation Oistnd 19
Long Term Operating Fund
Portfolio Characteristics Summary
As of September 30, 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 Troy US Trsy
32% 62%
CMOs
1%
char
9%
Gov Related
24%
ABS
9%
Caoh Gov Formed
2% V 411%
Core(Inc1144A) la-£ 'pt USMuni Corp lmcl 144A)
23% % 2]%
Long Term Operating Fund Blmbg GoWCredit 1.5 Year
Weighted Average: Duration
Duration Distribution ■ Long Term Cremona Fund: 2.37
80% ■ Bleb,GoWC%dit 1-5 Year 2.68
070% ____________ ______ ______
60% -- -- 61.3
_____ ______ ____
0dc11 106%
. . —_—_—_—_—_—
_
___
50% ______ __ ______ __
40% ______ _3r_3a2 ______ ______ ___
30% _23_5____ ______ ______
or
22 ———
2a%
<1 1-3 35 5-7 7-10 NO
Years Duration
aWelgh�dage: OueliryDuality Distribution Operaing Fund:100% WCmdit l-5 Year: AA+•80% ______ ___ ___ __ ___ __
__ ___69.1 63.8
60% _ ___ ___ __ ___ ___ ___ __ ___ __ __ ___20% — ttss1[.3 —1279.5
5.0 0.6
e%
APA PA A BBB Be B CCC CC C 0 NIR
Quality Rating
Callan Oram,a County Sanitation District 20
Chandler-Liquid Operating Money
Period Ended September 30, 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 0,46% Beginning Market Value $156.100,966
return for the quarter placing it in the 33 percentile of the Net New Investment $-81,500,000
Callan Money Market Funds group for the quarter and in the Investment Gains/(Losses) $587,389
26 percentile for the last year.
• Liquid Operating Money Nefs portfolio underperformed the Ending Market Value $75,188,355
Citigroup 3-Month Treasury Bill by 0.04%for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.11%.
Performance vs Callan Money Market Funds(Net)
2. 0(13
2.0% 26)
0%
1.5% 19)�(26
1.0%
0.5% 24)®(33 26)H
(29 28628 251�
(30 241�131 2fi1�(25
0.0% Last Oa Last Last 3 Yr Chandler Last 5Ym Last 7Ym LastlOYrs Slnce9130195
Yr Inwpaon
10T Percentile 064 113 1.38 L20 1.01 ON 100 262
25M Percentile 0.49 1 A9 10 828 0.650 0.49 0.36 0.33 2.28
Median 0.42 125 0,59 0.47 0.35 0.25 0.21 2.14
75th Percentlle ON f04 044 0.36 026 0.19 OA7 201
90T Perwntile 029 080 0,31 0,25 0,19 0.13 0,12 188
Liquid Operating
Money Net • OA6 1A6 0,76 0,62 045 0.32 033 2A3
Ciligmup 3-Month
Treasury Bill ♦ 0.50 157 0,80 0.65 0.49 0.37 0.32 2.28
Relative Returns vs Callan Money Market Funds(Net)
Citigroup 3-Month Treasury Bill Annualized Seven Year Risk vs Return
OJO% 3.0%
008% __ ____--- __ _
2.5%
0.06% 2.0%
E o04%
1.5%
0.02% E
m
> o 00%
(0.02%)
0.5%
(0.06%) -- ------- -- -- - (g.5%)
(0.08%) (Lo%)
11 2012 2013 2014 2015 2016 2017 2018 00 as 04 06 06 10 12 14
Callan
Liquid Operating Money N Standard Deviation
et
Callan Orange County Santlation Doffid 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)
2.0%
1.5%
20®29
1. % 0
�35
0.5%
33♦ 30 15 1 4]
0.0%
(0.5%) 12117 9/18 2017 2016 2015 2014 2013 2012 2011 2010 2009
101h PercenMe 144 1.42 t 32 0.28 0.35 0.30 Us 0.12 0.24 0.63
25th Pecrdle 1.23 0.91 040 0.08 0.03 004 006 004 0.08 0.33
Media n 1.05 0.61 0.14 0.01 0.01 0.01 0.01 0.01 0.02 0.15
]5th PecenOle 0.90 0.41 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.05
90ih Percent. 0.71 0.22 001 000 run 0.00 000 000 gee 0.02
Liquid Operating
Money Net • 1.20 0.76 0.32 00] (0.06) (0.02) 0.02 0.09 0.10 0.43
Citi9rwp 3-Mordh
Treasury Bill ♦ 1.29 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
0.60%
0.50%
0.40% ___ ___ ________ ___
3 cm% ___ ___ ___
'e
> 0.10% _ ___ ________ ___ ___ ___
d
oso%)
OB 2003 2010 2011 2012 2013 2014 2015 2016 2017 2018
10 Liquid Opened,Money Net 0Callan Monay Ma�kat Funds
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury BIII
Rankings Against Callan Money Market Funds(Net)
Seven Years Ended September 30,2018
2.0
1.5
.0
05
00
0.5)
(1.0) •(30)
(1.5)
(20)
(2.5)
(30) /dpha SM1 rpe Excess Retum
Rat. Ratio
101b Percentile 0.58 105 Ise
25th Percentila (0.01) 0.12) 0.20
Median (0.11) 0.81 0.20
75th Perranble (u17) t05)) 180
611
901h Percentile (023) (185) 2.13
/'�
Liquid Operating Money Net • (0.06) (0.25) (1.00)
Callan Orange County 6andation Oistdct 2
Callan Research/Education
Callan I INSTITUTE ` 3rd Quarter 2018
l 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.coMlibrary to see all of our publications,and www.callan.comlblog
to view our blog"Perspectives."For more information contact Cony Walsh at 312.346.35361 institute@callan.com.
New Research from Callan's Experts
® e e m s An Investor Framework for Addressing The Shape of Risk:Making Cents of the Irrational With Options
0 ®® � Climate Change I Callan's Anna West lays I In the third quarters Hedge Fund Monitor,Jim McKee discusses
® ® ®e out the lop issues for investors about this the use of options as insurance for institutional portfolios.
issue. We also identify solutions and areas
of progress for those seeking to address 2018 ESG Survey I Callan's Sixth annual survey on the status of
climate-related risks as well as benefit from emerging opportunities. environmental,social,and governance(ESG)investing in the U.S.
institutional investment market reveals more than 40%of investors
Promoting Gender Diversity in the Investment Industry I Callan are incorporating ESG factors into investment decisions.
Executive Chairman Ron Peyton offers his observations on what
has worked for gentler inclusion at the firm over the last 45 years your Plan Will Face a Cyberattack;Here's How to Prepare I The
and what we have learned in the hope that it will info"others on third quarter's edition of the DC Observer is designed to assist plan
how to progress toward equality in senior roles industry-wide. sponsors with formulating and executing their cybersecurity, strat-
egy to protect their information and their assets.
Helping Plan Participants in the
Distribution" Phase I Callan's Tom Shingler Quarterly Periodicals
and James Veneruso discuss our research on the
"distribution phase"of defined contribution plans, Private Equity Trends I This newsletter offers the latest data on
when participants are drawing down assets,and private equity fundraising,buyouts,venture capital,and returns.
--- the issues that plan sponsors should address. MarketPulseFlipbooklAquartedymarketreferenceguidecover-
Picking Through the Alpha Graveyard: Correcting for ing investment and fund sponsor trends in the U.S.economy,U.S.
Survivorship Bias in Investment Product Universes I In this and non-U.S. equities and fixed income, alternatives,and defined
contribution.
paper from the Journal of Investment Management, Callan's Greg
Allen,Ivan Cliff,and Wally Meerschaert propose a technique to car- Capital Market Review I This quartery publication provides analy-
rect for survivorship bias in investment product universes. It uses sis and a broad overview of the economy and public and private
all available data for survivors and non-survivors,contacts for bias market activity across a wide range of asset classes.
across the full distribution(from 1st to 99th percentile),and can be
applied to other return-based statistics such as the Sharpe ratio. Real Estate Indicators: Too Hot to Touch or Cool Enough
to Handle? I Callan's Real Assets Consulting group ident-
Infrastructure: No Longer a Niche Option I Callan's Jan Mende fes seven indicators--based on spreads in real estate and fixed
discusses investing in infrastructure. Institutional investors are in- income markets hat,combined with an understanding of prevail-
creasing allocations, managers are creating more investment op- ling market dynamics,have helped signal when the institutional real
lions,and benchmarks are being refined. estate market is overheated or cooled.
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.callen.com/library/ sionals who are involved in the investment decision-making pro-
cess.It was founded in 1994 to provide clients and non-clients alike
Callan's 2019 National Conference will be held January 28-30, with basic to intermediate-level instruction.Our next sessions are:
2019, Mark your calendars for this upcoming event!And please
visit the Events page on our website(wwwcallan com/events/)for Introduction to Investments
additional information as it becomes available. San Francisco,April 16-17,2019
San Francisco,July 16-17, 2019
For more information about events, please contact Barb Chicago, October 22-23,2019
Gerraty:415.274.3093/gerraty@callan.com
This program familiarizes fund sponsor trustees, staff, and asset
management advisers with basic investment theory,terminology,
and practices. It lasts one-and-a-helf days and is designed for in-
dividuals who have less than two years of experience with asset-
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/evenwicallan-college-intro or
contact Kathleen Cu nnie:415.274.3029/can nie@callan.com
Education: By the Numbers
Attendees(on average)of the 50+ Unique pieces of research the
525
Institutes annual National Conference Institute generates each year
300 College"since 1994 e'Callan 1980 wasrfo founded
Institute
$7
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,Chief Executive Oficer and Chief Research Officer
Callan V @CallanLLC 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).
Alpha measures a portfolio's return in excess of the market return adjusted for disk. It is a measure of the manager's
contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively
rewarded for the residual risk which was taken for that level of market exposure.
Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio's beta measures the
expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5,a 1 percent increase in
the return on the market will result,on average, in a 1.5 percent increase in the return on the portfolio. The converse would
also be true.
Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside
volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the
standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency
and magnitude of underperformance affect the amount of downside risk.
Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management
performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is
calculated by dividing the managers annualized cumulative excess return relative to the index by the standard deviation of
the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager's active riskireward
tradeoff for diverging from the index when the index is mandated to be the"nskless"market position.
Information Ratio measures the manager's market risk-adjusted excess return per unit of residual risk relative to a
benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being
equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information
ratios will add value relative to the benchmark more reliably and consistently.
R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be
thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of.75 indicates that
75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio's
returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no
relationship exists between the portfolio's return and the market.
Relative Standard Deviation is a simple measure of a managers risk(volatility)relative to a benchmark. It is calculated by
dividing the manager's standard deviation of returns by the benchmark's standard deviation of returns. A relative standard
deviation of 1.20,for example, means the manager has exhibited 20% more risk than the benchmark over that time period.
A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade
fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling
time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark.
Residual Portfolio Risk is the unsystematic risk of a fund,the portion of the total risk unique to the fund(manager)itself and
not related to the overall market. This reflects the"bets"which the manager places in that particular asset market. These
bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager
considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that
portfolio.
Callan
27
Risk/Reward Statistics
Rising 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-free" return
(usually 3 Month Treasury Bill)from the portfolio return and dividing the resulting"excess return" by the porlfolio'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 lie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within
plus or minus one standard deviation from the sample mean.
Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two
measures of risk: market(non-diversifiable or systematic)risk and residual(diversifiable or unsystematic) risk. The purpose
of portfolio diversifcation is to reduce the residual risk of the portfolio.
Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a
portfolio's individual quarterly or monthly returns from the index's returns. Typically, the lower the Tracking Error, the more
"index-like"the portfolio.
Traynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its
benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk
assumed.
Note:Alpha,Total Risk,and Residual Risk are annualized.
Callan
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 ('bulletnessi 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 l
Quarterly List as of
September 30, 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 conflicts of interest
encountered in the investment consulting industry and that it is our responsibility to manage those conflicts effectively and in the best interest of our
clients. At Callan,we employ a robust process to Identify,manage,monitor and disclose potential conflicts on an ongoing basis.
The list below is an important component of our conflicts management and disclosure process. It identities those investment managers that pay Callan
fees for educational,consulfing,software,database or reporting products and services. We update the list quarterly because we believe that our fund
sponsor clients should know the investment managers that do business with Callan,particularly those investment manager clients that the fund sponsor
clients may be using or considering using.Please note that if an investment manager receives a product or service on a complimentary basis(e.g.
attending and educational event),they 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 pe foening 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 institutional 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 find relationships are not indicated on our
list.
Fund sponsor clients may request a copy a the most currently available list at any time.Fund sponsor clients may also request specific information
regarding the fees paid to Callan by particular fund manager clients. Per company policy,information requests regarding fees are handled exclusively
by Callan's Compliance Department.
Acadian Asset Management LLC Capital Group
AEGON USA Investment Management Canllon Tower Advisers
Aether Investment Partners CastleArk Management,LLC
AEW Capital Management Causeway Capital Management
Affiliated Managers Group,Inc. CenterSquare Investment Management
Alcentra Charts ll Investment Partners
AllianceBernstein Christian Brothers Investment Services
Allian,Global Investors CIM Group
Allianz Life Insurance Company of North America ClearBndge Investments,LLC
Amended Century Investments Cohen&Steers Capital Management,Inc.
Amundi Pioneer Asset Management Columbia Threadneedle Investments
Apollo Global Management Columbus Circle Investors
AOR Capital Management Credit Suisse Asset Management
Area Management LLC CS McKee.L.P.
Adel Investments,LLC Defended,Race&Zone Inc.
Atlanta Capital Management Co.,LLC D.E.Shaw Investment Management,L.L.C.
Aviva Investors Americas Diamond Hill Capital Management,Inc.
AXA Investment Managers Dimensional Fund Advisors LP
Baillis Gifford International,LLC Doubleline
Beirut Advisors Duff&Phelps Investment Management Co.
Baron Capital Management,Inc. DWS(Formerly Deutsche Asset Management)
Barrow,Hanley,Mewhinney&Sudden,LLC EARNEST Partners,LLC
Black Creek Investment Management,Inc. Eaton Vance Management
BlackRock Epoch Investment Partners,Inc.
BMO Global Asset Management Fayez Sarofim&Company
BNP Paribas Asset Management Federated Investors
BNV Mellon Asset Management Fidelity Institutional Asset Management
Boston Partners Fiera Capital Corporation
Bandes Investment Partners,L.P. First Eagle Investment Management,LLC
Brandywine Global Investment Management,LLC First Hawaiian Bank Wealth Management Division
Breckinridge Capital Advisors.Inc. Fisher Investments
BdghtSpbere Investment Group(FKA Old Mutual Asset) Franklin Templeton
Brown Brothers Harman&Company Fred Alger Management,Inc.
Cambiar Investors, GAM(USA)Inc.
Callan I Knowledge.Experience.Integrity. Page 1 of 2
Dancing Edlen Pacific Investment Management Company
Glolsi lax Capital,L P. Pathway Capital Management
GMO LLC Peregrine Capital Management,Inc.
Goldman Sachs Asset Management Perkins Investment Management
Green Square Capital LLC PGIM
Greenwich Investment Management,Inc. PGIM Fixed Income
Guggenheim Investments PineBridge Investments
GW&K Investment Management Pictet Asset Management Ltd.
Harbor Capital Group Trust PNC Capital Advisors,LLC
Harding Lcevner L.P.
Phil Advisors,LLC
Global Investors
Hanford Funds Private
Hartford Investment Management Co.
Heitman LLC Putnam Investments,LLC
OMA
Hotchkis 8 Wiley Capital Management,LLC RBC Global Asset Management
HSBC Global Asset Management
Income Research+Management,Inc. Reaves Asset Management
Insight Investment Management Limited Regions Financial Corporation
Intach Investment Management,LLC Robeco Ins Partners LLC
Rocket Institutional Asset Management,US Inc.
Invesco Rockefeller 8 Co.,Inc.
Inveslec Asset Management Rothschild Asset Management Inc.
Ivy Investments Russell Investments
J.P.Morgan Santander Global Fall lNes
Janus Schroder Investment Management North America Inc.
Jennison Associates LLC Smith Graham&Co.Investment Advisors,L.P.
Jensen Investment Management Smith Group Asset Management
Jobs Peak Advisers South Texas Money Management,Ltd.
KeyCory
Lazard Asset Management S I Investment Management Ltd,
Standard Invesments Limited
Legal&General Investment Management America Slate Street Global Advisors
Lincoln National Corporation Stone Harbor Investment Partners,L.P.
LMCG Investments,LLC Sun Life Investment Management
Longview Partners T.Rowe Price Associates,Inc.
Loomis,Bayles&Company,L.P. The Boston Company Asset Management,LLC
Lord Abbed&Company The London Company
Los Angeles Capital Management The TCW Group,Inc.
LSV Asset Management Thompson,Siegel&Walmsley LLC
MacKay Shields LLC Thornburg Investment Management,Inc.
Macquarie Investment Management(MIM)
Tri-Star Trust Bank
As
Manulife Asset Management UeS Asset Management
McKinley Capital Management,LLC VanEck
MFS Investment Management Velanne Asset Management Ltd.
MidFirst Bank Versus Capital Group
Mondrian Investment Partners Limited Victory Capital Management Inc.
Montag&Caldwell,LLC Vince Investment Partners,Inc.
Morgan Stanley Investment Management Vontobel Asset Management,Inc.
Mountain Lake Investment Management LLC Voya
MUFG Union Bank,N.A. WCM Investment Management
Natives Investment Managers WEDGE Carnal Management
Neuberger Berman Wetl d Partners,Inc.
Newton Investment Management g
Wellington
Capital
Management Company,LLP
Nikko Asset Management Co.,Ltd. Wells Capital Management
Northern Trust Asset Management
Nuveen Investments,Inc. Western Asset Management Company LLC
William Blair&Company LLC
West Capital Management Company,LP
OR Global Asset Management
O'Shaughnessy Asset Management LLC William
PIE Investments
Callan I Knowledge.Experience.Integrity. Page 2 of 2 September 30, 2018
Investment Report
Orange County Sanitation District
Period Ending
September 30, 2018
Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Gilk
SECTION 1
Economic Update
IC& I Economic Update
■ As expected, the Federal Open Market Committee (FOMC) voted to raise the fed funds target rate by 25 basis points
to a range of 2.00%-2.25% at the September 26th meeting. The vote was unanimous, including a vote from the new
Board of Governors Vice Chair, Richard Clarida. The Fed raised its median forecast for GDP growth in 2018 and 2019
and left its forecasts for unemployment and inflation relatively unchanged. The Fed also kept its fed funds rate
forecasts unchanged with the exception of the longer-run target which increased slightly to 3.0%. The Fed's forecast
points to one more fed funds rate hike this year and three more hikes next year. Once again, in its policy statement,
the FOMC noted that economic activity has been rising at a "strong rate" and policymakers expect that further gradual
increases in the fed funds rate will be appropriate. The FOMC continues to believe risks to the economic outlook are
roughly balanced. Market participants believe there is a very high probability that there will be another rate hike in
December.
■ Economic data remains favorable but predictive economic indicators suggest that economic growth is unlikely to
accelerate. Although the labor market is strong and consumer confidence is high, we do not believe the economy is
close to overheating. The Core PCE Index suggests that inflation is in line with the Fed's 2.0% target. Market
participants are forecasting annualized GDP growth of about 3.2% in the third quarter, 2.8% in the fourth quarter, and
2.5% next year.
■ Treasury yields increased in September. At month-end, the 2-year Treasury yield was up 19 basis points to 2.82%,
while the 10-year Treasury yield was up 20 basis points to 3.06%. The spread between 2- and 10-year Treasury yields
remained narrow at just 24 basis points at month-end. Over the past 20 years, the average spread between 2- and 10-
year Treasuries has been about 140 basis points. We foresee an upward bias to rates across the Treasury yield
curve but believe that the yield curve will remain quite flat over the intermediate-term.
s
C1111 Employment
Nonfarm Payroll (000's) Unemployment Rate
350
12.0%
11.0% —Undolomployment Rate(U6)
300 10 0% —Unemployment Rate(U3)
N
$ 250 9.0
0
u 200 a 8.0%
7.0%
t 150 6.0%
U
100 5.0%
4.0
50
3.0
0 2.0%
11, 1 10% 4a, cec, 41a. �`* .o, `Sex, lea 41a. 10% 1%, �1�
vs �s v� v� » » rg vg vg �s �s �i �i �i �i vg 7e 7e
Source:US Department of Labor Smooe:US Department of Labor
U.S. payrolls rose by 134,000 in September, below the consensus forecast of 185,000. However, July and August payrolls were revised
up by a total of 87,000. On a trailing 3-month and 6-month basis payrolls increased by an average of 190,000 and 203,000 per month,
respectively, more than enough to absorb new entrants into the labor market. The unemployment rate declined further in September to
3.7% from 3.8% in August. The labor participation rate was unchanged month-over-month at 62.7%. 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, increased to 7.5% from 7.4% in August. Wages rose 0.3% in September on a month-aver-month basis, in line with
expectations. Wages were up 2.8% on a year-over-year basis in September, versus up 2.9% year-over-year in August. The average
workweek was unchanged at 34.5 hours. Overall, the September employment report indicates the labor market remains strong, and
there is steady but modest upward pressure on wages.
URA Inflation
Consumer Price Index (CPI) Personal Consumption Expenditures
3.5% 3.5 (PCE)
3.0% 3.0%
ar 2.5% a 2.5%
m m
c c
L 2.0%
u V 2.0
Y 1.5%
O p
1.0% Y 1.0%
CPI YOY%Change —PCE Pfce Oefiator YOY%Chenge
0.5% Core CPI YOY%CM1an Be 0.5/0 —PCE Core Deflator YOY%Chenge
0.0% 0.0%
10% 41a, "Cn, �A � 6 +O��6 lb 1Iai J5� +Op � yak79 7) 7) ry 7� 79 79 )B 1 9�9
719 19 79
S..:US Department of ab., Source:US Department of Commerce
The Consumer Price Index (CPI) was up 2.3% year-over-year in September, versus up 2.7% year-over-year in August. Core CPI (CPI
less food and energy) was up 2.2% year-over-year in September, unchanged from 2.2% year-aver-year in August. The Personal
Consumption Expenditures (PCE) index was up 2.2% year-over-year in August, down slightly from 2.3% year-over-year in July. Core
PCE (excluding food and energy) was up 2.0% on a year-over-year basis in August, unchanged from 2.0% in July. Core PCE inflation,
which is the Fed's primary inflation gauge, remains in line with the Fed's 2.0% target.
s
Consumer
Retail Sales YOY % Change Consumer Confidence
7.0% 145
140
6.0
135
u 5.0% 130
125
4.0% 120
115
Y3.0% i 110
lo c 105
2.0
100
1.0% 95
90
0.0% 85
°c 41a �'0. �0c 4)e ��0. % 4-, `* 4,a,. 4feh `2i1 `9o,Q 4.,' '� you; 4,0 i14�1 •
70 70 •!) l� 7> lj '79 lg 1B 16 76• 1) 1) 1) I )j )j 1B 1B 1B 6 1B
Sou :US Department of Commerce Source:The Conference Boartl
On a year-over-year basis, retail sales were up 4.7% in September, versus up 6.5% year-over-year in August. On a month-over-month
basis, retail sales increased just 0.1% in September, well below expectations for a 0.6% increase. E-commerce and furniture sales were
strong in September while department store sales declined. The Consumer Confidence Index remains very strong at 138.4 in
September, up from 134.7 in August. Ongoing strength in the labor market continues to support consumer confidence and spending
trends.
s
URA Economic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index
1.4% 0.60 (CFNAI)
0.40
1.0%
b y
m 0.8% 0.20
L
0.6% L 0.00
C
0.4% A V A e
— -0.20
0.2%
N001 4 V0.0 k 0.40
-0.2q -0.60
`� O a,. ✓ox 1%4 %, %, `%4' 10.1 ia` t `Ss Ilk, 6i `Sb
�s �s 4 '� '� '� 10 '� 1 ,e ,e ,e 'Sb"�s rs Z '� I a,� �Ti vi ,o `t ae .aye
Som The Conference Boam Sow :Federal Reserve Bank of Chicago
The Index of Leading Economic Indicators (LEI) rose 0.5% month-over-month in September, following a 0.4% increase in August.
According to the Conference Board, the index points to strong US economic growth heading into 2019. However, the Conference Board
also warns that growth of index has slowed recently, suggesting that the economy may be facing capacity constraints. The Chicago Fed
National Activity Index (CFNAI) declined to 0.17 in September from 0.27 in August. On a 3-month moving average basis, the index
decreased to 0.21 in September from 0.27 in August. Although the index declined, it still points to above trend economic growth.
Housing
Housing Starts S&P/CaseShiller 20 City Composite Home
Price Index
1800 7.5%
1600 ■MUItIFamlly Houang Starts
j ■Single Family HouangSWIs 70%
c 1400
1200 u 6.5%
10 e
0 1000 i
H 6.0%
800
600 p 5.5%
w Y
u 400 5.0%
200
S
p 4.5
Sea 100c 41d. �On, `�,a �°c �a. �, sew7 4&7 . ;7 7
/s �s �� v� » » �s vs �g s s > > > > e s s
Source:US Department of Commerce Source:S&P
Total housing starts decreased 5.3% in September. Single-family starts declined 0.9% in September and multi-family starts dropped
15.2%. Meanwhile, permits fell 0.6% in September. According to the Case-Shiller 20-City home price index, home prices were up 5.9%
year-over-year in July, versus 6.4% in June. Housing data tends to be volatile on a month-aver-month basis. Broadly speaking, the
housing sector is facing a few different headwinds including supply constraints, rising mortgage interest rates, and a shortage of skilled
labor, and housing trends have softened.
s
CAJJ Manufacturing
Institute of Supply Management Industrial Production
Purchasing Manager Index 6.0%
62
60 expanding 5.0%
58 4.0%
m 3.0% oes
56 m
U 2.0%
54
i
52 y 0.0
50 1.0%
48 -20%
Contracting
46 -a0%
410,
1%4
10-1
1�41
%
410,
'0'76 "'s 'i '> >i 7i 1%1,7,9 'a 's 's 's '�> '�> ''s 'B 'a
Source:Insfdute for Supply Management Souce:Fedeml Reserve
The Institute for Supply Management (ISM) manufacturing index edged down to 59.8 in September from 61.3 in August (the highest level
since May 2004). A reading above 50.0 suggests the manufacturing sector is expanding. The Industrial Production index was up 5.1%
year-over-year in September versus up 4.9% year-over-year in August. On a month-over-month basis, the manufacturing component of
the index edged up just 0.2% in September, following a 0.3% increase in August, pointing to modest growth in the sector. Capacity
Utilization was unchanged at 78.1% in September, and remains below the long-run average of 79.8% indicating there is still excess
capacity for growth.
s
J1111 Gross Domestic Product (GDP)
Gross Domestic Product(GDP)
6.0%
Personal Consumption Expenditures 1.5% 2.6% 0.4% 2.6% 5.0%
Gross Private Domestic Investment 1.5% 0.1% 1.6% -0.1% 4.0%
3.0%
Net Exports and Imports 0.0% -0.9% 0.0% 1.2% 2.0%
0%
Federal Government Expenditures -0.1% 0.3% 0.2% 0.2%
0.0
State and Local(Consumption and Gross -0.1% 0.2% 0.1% 0.2% -1 0% W .WGDPInvestment) -20% GDP YOY%Change Total 2.8% 2.3% 2.2% 4.2% �o�. eft; �47 �mG ��. �� i� '0BG "�. ck �G� �BG �a
l� )2 l? 70 )p )g Is. 75. 76 lB 1) )j 1B
Source: US Department of Gommeme
Soume: US Department o/Commerce
Annualized second quarter GDP grew at an annualized pace of 4.2%, according to the third estimate, following growth of 2.2% in the first
quarter. Consumer spending and exports were particularly strong in the second quarter. Market participants estimate the economy grew
3.2% in the third quarter. GDP growth is expected to ease back toward the 2.5%-3.0% range in the fourth quarter.
Bond Yields
US Treasury Note Yields US Treasury Yield Curve
4.0% 4.0%
3.5% 3.5%
3.0% 3.0%
2.5% 2.5%
a e
—° 2.01% 9 2.0%
• a
-> s
is% ts%
1.0% 2-Year 1.0% �SeP-18
'Year �Jun18
0.5% 1a-veer 0.5% �seP-Sep
0.0% 0.0%
�A7 OBa7 41a^ f'n, ` Don 1%,;7 `F'0.7 �q, a ys46 2 y s l I l 70 3s
s s > > > > s s a o o
So=e:Bloomberg Sou :Bloomberg
On a year-over-year basis, Treasury yields have increased and the Treasury yield curve has flattened. The spread between 2-Year and
10-year Treasury yields has narrowed from 85 basis points to 24 basis points, year-over-year as of September month-end. Rate hikes by
the Federal Reserve have put upward pressure on rates, while supply and demand imbalances, technical factors, and subdued inflation
expectations have contributed to the curve flattening.
C11,k
SECTION 2
Account Profile
GWI 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.
UIL Compliance
Orange County Sanitation District Long Term
September 30,2018
COMPLIANCEPOLICY
Assets managed by Chandler Asset Management are in full compliance with state lawand with the investment policy
Category Standard Comment
Treasury Issues 5 years maxmalurity, Minimum allocation of 10% Complies*
U.S.Agencies 20% max issuer; 5 years max maturity Complies
Supranational "AA"rated or better by a NRSRO; 30%maximum; 5 years max maturity, USD denominated senior unsecured Complies
unsubordinated obligations issued or unconditionally guaranteed by BIRD, IFC or IADB
Corporate(MTNs) "A" rated or better long term debt by a NRSRO; 30% maximum;5% max issuer; 5 years max maturity; Issued Complies
by corporations organized and operating 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% max issuer; 5 years max maturity Complies
Asset Backed/CMOs/Mortgage- "AA" ratedorbetterbya NRSRO; "A"or higher issuer rating by a NRSRO; 20% maximum; 5%maxissuer Complies*
backed - (excluding ovt a enc /mbs ;5 years max maturity
Negotiable CDs "A"rated or better longterm debt by a NRSRO;or"A-1"/highest short term rating bya NRSRO; 30% Complies
maximum;5%max issuer;5 years max maturity
Certificates of Deposit 5%maxissuer; 5 years max maturity; Secured/collateralized Complies
Banker's Acceptances A-1 rated orequivalent short term rating by aNRSRO; 40% maximum; 5%max issuer, 180 days max maturity Complies
Commercial Paper A-1 rated or equivalent short term rating bya NRSRO; "A" or better long term debt issuer by a NRSRO; Issued Complies
bya domestic corporation organized and operating in the US with AUM>$500million; 25% maximum; 5%
max issuer; 270 days max maturity
Mutual Fund & Money Market Highest rating or"AAA" rated by two NRSROs; SEC registered adviserwith AUM>$500 million and Complies
Mutual Fund experience greater than 5 years; 10%per one Mutual Fund; 20%max per 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 maturity Complies
LAIF Not used 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 orlfolio(except Su ranationals, U.S. Government,Agencies, Mutual Fund Com lies
Maximum Maturity5 ars maximum maturity Com lies*
'The portfolio has twenty-one(21)securities with maturities greater than 5 years including four(3)CMOs, seventeen(17)MBS and one(1)treasury. All securities were inherited from the preNous
manager and complied at time of purchase.
Cil'tj Portfolio Characteristics
Orange County Sanitation District Long Term
9/30/2018 6/30/2018
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.69 2.74 2.79
Modified Duration 2.54 2.37 2.43
Average Purchase Yield n/a 2.18% 2.12%
Average Market Yield 2.96% 2.85% 2.68%
Average Quality" AAA AA/Aa1 AA/Aa1
Total Market Value 462,099,738 460,812,924
*ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Several securities were added to the portfolio in the Treasury, Agency, Asset Backed and Corporate sectors of the
market to keep the portfolio structure in-line with Chandler targets. The purchased securities ranged in maturity from
October 2018 to July 2023. Four securities matured during the reporting period to facilitate the new holdings in the
portfolio.
Sector Distribution
Orange County Sanitation District Long Term
September 30, 2018 June 30, 2018
Negotiable CID ABS 1.3% ABS ABS
9A%
US Treasury
32.3% US Treasury
31.5%
Agency
Agency 22.3%
23.5%
CMO CMO
0.5% 0.5%
Commercial Commercial
Paper Paper
Foreign 1'9% Corpora
Foreign 37%
US Corporate Corporate US Corporate Corpoo ate
21.6% 1.0% 22.2%
Supra national Money Market
Money Market Fund FI
6.9% Fund FI Supanational
Mortgage Pass T 0% Mortgage Pass 2.3%
Municipal Bonds 2.1%
10% Thru Municipal Bonds Thru
0.3% 1.0% 0.3%
The sector allocation was relative stable during the quarter. Some of the notable adjustments include the 1.9% increase
in the Asset Backed allocation, to 9.0% of the portfolio, mostly offset by the 1.8% decline in the Commercial Paper
allocation, to 1.9% of the portfolio.
UIL Issuers
Orange County Sanitation District Long Term —Account #10268 As of 9/30/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 32.32%
Federal National Mortgage Association Agency 10.20%
Federal Home Loan Bank Agency 6.84
Federal Home Loan Mortgage Corp Agency 6.44
Inter-American Dev Bank Supranational 3.68%
Honda ABS ABS 2.67%
John Deere ABS ABS 2.38%
Intl Bank Recon and Development Supranational 2.10%
First American Govt Obligation Fund Class-Z Money Market Fund FI 2.05%
MUFG Bank Ltd/NY Commercial Paper 1.95%
Wells Fargo Corp US Corporate 1.71
Nissan ABS ABS 1.48%
Berkshire Hathaway US Corporate 1.40%
American Express ABS ABS 1.34%
Chubb Corporation US Corporate 1.31
Bank of New York US Corporate 1.31
PNC Financial Services Group US Corporate 1.30%
IBM Corp US Corporate 1.21
International Finance Corp Supranational 1.15%
Toyota ABS ABS 1.12%
Deere &Company US Corporate 1.08%
Qualcomm Inc US Corporate 1.08%
General Electric Cc US Corporate 1.08%
US Bancorp US Corporate 1.06%
Honda Motor Corporation US Corporate 1.05%
HSBC Holdings PLC Foreign Corporate 0.95%
Eli Lilly 8.Cc US Corporate 0.86%
Apple Inc US Corporate 0.85%
Wal-Mart Stores US Corporate 0.85%
Occidental Petroleum Corporation US Corporate 0.71
UIL Issuers
Orange County Sanitation District Long Term —Account #10268 As of 9/30/2018
Issue Name Investment Type % Portfolio
General Dynamics Corp US Corporate 0.69%
Morgan Stanley US Corporate 0.64%
Exxon Mobil Corp US Corporate 0.64%
Microsoft US Corporate 0.63%
Oracle Corp US Corporate 0.63%
Port Authority of New York and New Jersey Municipal Bonds 0.55%
HSBC Holdings PLC US Corporate 0.54
ChevronTexaco Corp US Corporate 0.53%
JP Morgan Chase&Cc US Corporate 0.43%
Federal Home Loan Mortgage Corp CMO 0.39%
New York City Transitional Finance Authority Municipal Bonds 0.31%
Federal National Mortgage Association Mortgage Pass Thru 0.27%
University of California Municipal Bonds 0.09%
Federal National Mortgage Association CMO 0.05%
GNMA Mortgage Pass Thru 0.04
AMRESCO Residental Securities Corp CMO 0.03%
SLIM Corp ASS 0.01%
Small Business Administration ABS 0.01%
Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
September 30, 2018 vs. June 30, 2018
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00
AAA AA A <A vF:
•g/30/2018 6/30/2018
AAA AA A <A NR
09/30/18 11.6% 63.8% 14.5% 0.6% 9.5%
06/30/18 12.7% 63.3% 14.4% 0.7% 9.0%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of September 30, 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/Govt Rated AAA-A Index
0 . 0.25 0.25 . 0.50 0.60 -1 1 .2 2 -3 3 -4 4 -5 5+
Portfolio 7.4% 7.9% 8.2% 13.2% 25.9% 21.7% 13.4% 2.3%
Benchmark* 0.0% 0.0% 1.7% 32.6% 29.6% 22.4% 13.8% 0.0%
*ICE BAML 1-5 Yr US Corp/Govt Rated AAA-
A Index
The duration of the portfolio contracted modestly, currently 2.37 compared to 2.43 at the end of the prior quarter.
AW Investment Performance
Orange County Sanitation District Long Term
Period Ending
September 30, 2018
Total Rate of Return
Annualized Since Inception
November 30,2014
1.00%
0.80%
0.60%
0.40%
0.20%
0.00% -:7V ib it
-0.20%
-0.40%
-0.60%
12 months 2 years 3 years 5 years 10 years Since Inception
e Orange County Sanitation District Long Tenn
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
IOpep[IOn
Orange County Sanitation District Long Term 0.27% -0.05% 0.25% 0.83% N/A N/A 0.90%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.20% -0.40% -0.06% 0.56% 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.
AW Compliance
Orange County Sanitation District Liquid
September 30,2018
COMPLIANCE •
Assets managed by Chandler-Asset Management are in full compliance mlth state/awand Kith the investment policy
Category Standard Comment
Treasury Issues 1 year max maturity, Minimum allocation of 10% Complies
U.S.Agencies 20% max issuer; l year max maturity Complies
Supranational "AA" rated or better by a NRSRO; 30% maximum; 1 year max maturity, USD denominated Complies
senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBIRD,
IFC or tADB
Corporate (MTNs) "A" rated or better long tern debt by a NRSRO; 30%maximum;5% max issuer; 1 year max Complies
maturity; Issued by corporations organized and operating within the U.S.or issued by
depository institutions licensed by the U.S.
Asset Backed/CMOs "AA"rated or better bya NRSRO; "A" or higher issuer rating by a NRSRO; 20%maximum; Complies
5% max issuer 1 year max maturity
Negotiable CDs "A" rated or better long term debt bya NRSRO;or"A-1"/highest short term rating by a Complies
NRSRO; 30%maximum; 5%max issued year max maturity
Certificates of Deposit 5%max issuer; 1 year max maturity; Secured/collateralized Complies
Bankers Acceptances A-1 rated or equivalent short term rating by a NRSRO; 40% maximum; 5%max issuer; 180 Complies
days max maturity
Commercial Paper A-1 rated or equivalerd short term rating bya NRSRO; "A"or better long term debt issuer by a Complies
NRSRO; Issued bya 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 AUM>$500 Complies
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 Districts surplus money
Repurchase A reements 102%collateralization 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 Not to exceed 180 days; Max duration of 1/2 year Complies
Max Per Issuer 5%of portfolio(except Su mnationals, U.S.Government,Agencies, Mutual Fund Complies
Maximum Maturity 1 year maximum maturity Complies
Cil'tj Portfolio Characteristics
Orange County Sanitation District Liquid
9/30/2018 6/30/2018
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 0.16 0.22 0.15
Modified Duration 0.16 0.22 0.15
Average Purchase Yield n/a 2.23% 1.94%
Average Market Yield 2.11% 2.25% 1.96%
Average Quality" AAA AA+/Aa1 AAA/Aaa
Total Market Value 75,177,285 156,065,422
*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.
Multiple securities were purchased across the Treasury, Agency, Supranational, Certificate of Deposit and Corporate
sectors to keep the portfolio fully invested. The purchased securities ranged in maturity from August 2018 to April 2019.
Many securities matured and a net$81.5 million was withdrawn from the portfolio during the reporting period.
Sector Distribution
Orange County Sanitation District Liquid
September 30, 2018 June 30, 2018
Agency Commercial
8.0% Paper 4.1 Agency
15.5%
Money Market
Fund FI Commercial
1.8% Paper
6.4%
D Negotiable C
12.1%
Money Markel
Fund FI
3.0%
Supranational US Treasury
2 no 58.3% 41 Negotiable CD
US Treasury 6.4%
63.1%
US Corporate Supranational
8.3% 5.1%
US Corporate
5.2%
The sector allocation evolved with the large liquidity needs during the reporting period. Notably the Treasury allocation
remains higher than the historical experience due to the increased issuance of the Treasury sector, improving
valuations, offset by the light funding needs of both Fannie Mae and Freddie Mac, which is leading to unattractive
valuations in the Agency sector.
UIL Issuers
Orange County Sanitation District Liquid —Account #10282 As of 9/30/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 63.07%
Federal Home Loan Bank Agency 7.98%
MUFG Bank Ltd/NY Commercial Paper 4.12%
Toronto Dominion Holdings Negotiable CD 4.02%
Bank of Montreal Chicago Negotiable CD 3.99%
Royal Bank of Canada Negotiable CD 2.70%
International Finance Corp Supranational 2.66%
Bank of America Corp US Corporate 2.02%
Wells Fargo Corp US Corporate 2.01%
First American Govt Obligation Fund Class-Z Money Market Fund FI 1.80%
Pramir US Corporate 1.61%
Westpac Banking Corp NY Negotiable CD 1.35%
Deere &Company US Corporate 1.34%
JP Morgan Chase&Cc US Corporate 1.33%
Total 100.00%
Quality Distribution
Orange County Sanitation District Liquid
September 30, 2018 vs. June 30, 2018
80.00%
70.00%
60.00% ,
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
AAA AA A <A vF:
•9/30/2018 6/30/2018
AAA AA A <A NR
09/30/18 45.7% 44.6% 8.3% 0.0% 1.3%
06/30/18 67.5% 26.7% 5.2% 0.0% 0.6%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark as of September 30, 2018
120.00%
100.00% i
80.00%
60.00%
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 BAML 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 48.8% 47.8% 3.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Benchmark* 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
*ICE SAW 3-Month US Treasury Bill Index
The duration of the portfolio modestly increased, as the next forecasted liquidity need is not until January 31, 2019.
GI Investment Performance
Orange County Sanitation District Liquid
Period Ending
September 30, 2018
Total Rate of Return
Annualized Since Inception
November 30,2014
1.80%
1.60%
1.40%
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
e 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
Inception
Orange County Sanitation District Liquid 0.52% 1.61% 1.17% 0.92% N/A N/A 0.76%
ICE BAML 3-Month US Treasury Bill Index 0.49% 1.59% 1.12% 0.84% N/A N/A 0.66%
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.
GIL Compliance
CA I OCSD Lehman Exposure
September 30, 2018
COMPLIANCEPOLICY
Assets managed by ChandlerAsset Management are in full compliance talth state lawand vilth the investment policy
Category 0 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; Includes only IADB, Complies
IBRD, and IFC per CGC
U.S.Agencies 20% max issuer 5 years maximum maturity Complies
U.S. Corporate MTNs "A" or better long term rating by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies*
Municipal Securities "A" or higher b 1 of 3 NRSROS; 10% maximum; 5% max issuer 5 years maximum maturity Complies
Asset Backed/CMOs/ "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% Complies
Mortgage-backed max issuer(excluding MBS/ ovt 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 ratings by 1 of 3 Complies
NRSROs; 30% maximum; 5% max issuer; 5 years max maturity
CDs/TDS 5% max issuer 5 years max maturity Complies
Banker's Acceptances A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 Complies
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 debt issued; 25% Complies
maximum; 5% max issuer 270 days max maturity
Money Market Fund Highest rating b 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 b investment adviser Complies
Avg Duration Not to exceed 60 months - 80%to 120% of the benchmark Complies
Maximum Maturity 5 years maximum maturity Complies
*Account holds $2 million face value (cusip 525ESCOY6)and$600,000 face value(cusip 525ESC1 B7)of defaulted Lehman Bros Holdings that were purchased by the premous
manager. Complied at time of purchase.
CII'tj Portfolio Characteristics
OCSD Lehman Exposure
9/30/2018 6/30/2018
Portfolio Portfolio
Average Maturity (yrs) 17.72 18.32
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 98,541 104,921
CA
SECTION 3
Consolidated Information
CII'tj Portfolio Characteristics
Orange County Sanitation District Consolidated
9/30/2018 6/30/2018
Portfolio Portfolio
Average Maturity (yrs) 2.39 2.13
Modified Duration 2.07 1.85
Average Purchase Yield 2.18% 2.07%
Average Market Yield 2.76% 2.50%
Average Quality AA+/Aa1 AA+/Aa1
Total Market Value 537,375,564 616,983,268
Sector Distribution
Orange County Sanitation District Consolidated
September 30, 2018 June 30, 2018
ABS ABS
7.7% 5.3%
US Treasury US Treasury
36.6% 382% Agency
Agency 20.6%
21.3%
CMO CMO
0.4% 0.4%
Commercial Commercial
Paper Paper
2.2/ Foreign 4.4
For.
9
Corporate Corporate
0.8% 0.7%
Money Market Money Market
US Corporate Fund FI Fund FI
19 7% Mortgage Pass 2.0% US Corporate
Mortgage Pass 2.5%
Thru 17 g 1 Thru
Supranational 0'3 Supranational 0.2%
6.3% 6.5% Municipal Bonds
Negotiable CD Municipal Bonds Negotiable CD 0 7%
1.7% 0.8% 2.6%
CA
SECTION 4
Portfolio Holdings
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
ABSPurchase D:te Cost Value Mint Price Market Value %of Pon. Moi Maturity
CUSIP Security Description ParValui Book Yi ld Book Value Min WM Accrued Int. Gain/Loss Fitch Duration
47787%AB3 John Deere Owner Trust 2017-A A2 192,86698 02I22I201] 192,86621 9993 192,73021 0.04% Asa INR 104
1500% Due 1011512019 1.50% 192,866,68 2,65% 128,58 (136,47) AAA 0.06
654747AB0 Nissan Auto Receivables 2017-A AM 340,612,63 0312112017 340,610,89 9987 340,1]03] 0,07% Aaa/NR 1.29
1,470% Due01/1512020 147% 340,611.83 2.46% 222.53 (441.46) AAA 0.13
43814PAB6 Honda Auto Receivables Owner T 173 A2 504,918.50 09/2512017 504,873.61 99.72 503,521.18 0.11% NRIAAA 1.31
1.570% Due 01212020 1.58% 504,893.13 2,58% 286.26 (1,371.95) AAA 0.27
47788MAC4 John Deere Owner Trust 2016-A A3 808,770.16 OMM016 808,642.87 99.68 806,164.17 0.17% Asa I NR 1.54
1.360% Due04/i5Y2020 1.37% 808,722.63 2.62% 488.86 (2,558A6) AAA 0.26
43814QAC2 Honda Auto Receivables 2016.2 A3 714,560.80 0524M16 714,546.94 99.61 711,770.98 0.15% Aaa I NR 1.54
1.390% Due 0411M020 1.40% 714,555.30 2.61% 441.44 (2,784.32) AAA 0.32
4Tr88BAB0 John Deere Owner Trust 2017-B AM 437,905.04 07/112017 437,866.99 99.74 436,758.42 0.09% Aaa I NR 1.54
1.590% Due04/15/2020 1.60% 437,883.70 2.58% 309A5 (1,125.28) AAA 0.26
89238BABB ToWn Auto Receivables Owner2018-AA2A 5.170,000.00 01/232018 5,169,471.63 99.70 5.154.619.25 1,12% Asia/AAA 2.04
2.100% Due 101152020 2.12% 5,169,601.58 2.70% 4,825.33 (14,982.33) NR 0.50
4T788CAB8 John Deere Owner Trusl2018-AA2 1,800,000.00 03/162018 1,796,363.75 99.84 1,797,166.80 0.39% Aai 2.04
2.420% Due 10/152020 2.59% 1.797,102.23 2.72% 1.936.00 64.57 AAA 0.55
43814RAC0 Honda Auto Receivables 20164 A3 2,429,718.80 02/0T2018 2,403,048.84 99.09 2,407,64418 0.62% NR I AAA 2.22
1.210% Due 12MB2020 2.58% 2,409,032.32 2.80% 1,061.65 (1,387.54) AAA 0.57
654T8VAD9 NAROT 201&B A3 1,361,853.10 02/12201a 1,350,94T.64 99.22 1,351,214.28 0.29% AaaI NR 2.30
1.320% Due01/152021 1.87% 1,353,290.37 2.77% 199.74 (2,076.09) AAA 0.54
83162CUO Small Business Administration 2001-20C 23,619.21 03/062001 23,619.21 102.48 24,204.42 0.01% Aaa/Mar 2.42
6.340% Due 03/01/2021 6.34% 23,619.21 5.57% 12419 585.21 AAA 1.30
65477UAD2 NAROT 2016A4 1,616,346.74 02/092018 1,606,244.57 99.60 1,809,954.09 0,35% Aaa/NR 2.96
1.500% Due 0911512021 1.86% 1,608,018.23 2uM%, 1,077.56 1,935.86 AAA 0.35
43814PAC4 Honda Auto Receivables Owner T 17-3 A3 3A90,000.00 06282018 3,040,994.53 98.57 3,045,936.60 0.66% NR I AAA 2.98
1.790% Due 09202021 2.78% 3.044,901.67 3,03% 1.997.34 1.034.93 AAA 1.22
47788BAD6 John Deere Owner Trust 2017-B A3 675,000.00 07/112017 674,960.59 98.63 665,751.11 0.14% Asia I NR IN
1.820% Due 10/152021 1.83% 674,966.62 3.01% 546.00 (9,213.51) AAA 1.16
47788CAC6 John Deere Owner Trust 201&B A4 1,340,000.00 0221201a 1,339,903.65 99.27 1,330,172.44 0.29% AaaI NR 3.55
2.660% Due 04/182022 2.68% 1,339,917.37 3.13% 1,584.18 (9,744.93) AAA 1.62
43814UAG4 Honda Auto Receivables 2018-2 A3 1,710,000.00 05222018 1,709,962.72 99.89 1,708,103.61 0.37% NR/AAA 3.63
3.010% Due05/18/2022 3.03% 1,709,965.91 3.08% 1,858.68 (1,862.30) AAA 2.02
43815HACI Honda Auto Receivables Owner 2018-3 A3 3,970,000.00 08/21/2018 3,969,455.32 99.67 3,956.950.61 0,86% Asia/NR 3.90
2.950% Due 082212022 2,98% 3,969,468.05 3.12% 3,253.19 (12,517.44) AAA 2.10
02587AAJ3 American Express Credit 2017-1 6,270.000.00 Various 6,174,085.15 98.61 6,183,078.93 1.36% Ass/NR IN
1.930% Due09/152022 2.91% 6,180.092.97 2,98% 5.378.27 2.985.96 AAA 1.33
47788EAC2 John Deere Owner Trust 2018-B A3 4,630,000.00 OT/182018 4,629,649.05 99.83 4.622,263.18 1.00% Aaa I NR 4.13
3.080% Due 11/152022 3.10% 4,629,664.21 3.18% 6,337.96 (7,401.03) AAA 2.11
654T9GAD1 Nissan Auto Receivables Owner 2018.0 A3 3,560,000.00 07/1T2018 3,559,884.66 99.70 3,549,22T.44 0,77% Aaa/AAA 4.46
3.060% Due03/152023 3.08% 3,559,889.29 3.21% 4,841.60 (10,661.85) NR 2.35
ICjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mkt Price Market Value %of Port. Moi Maturity
CUSIP Security Description Par ValuefUnits Book Yi a Id Book Value Mitt YTM Accrued Int. Gain/Loss Fitch Duration
78445JAA5 SLMA 2008-9 A 26,879.41 08/22/2008 26,770.35 102.11 27,446.48 0.01% Baa3/A 4.57
3.837% Due O425n023 3.92% 26,845.45 3.28% 194.81 601 03 B 332
47788NADO John Deere Owner Trust 201&B A4 1,151,000.00 06272018 1,131,936.66 98.56 1,134,38817 0.25% Asa I NR 4.62
1.490% Due 05/152023 2.19% 1,132,962.72 3.06% 762.22 1,446.05 AAA 0.92
41,606,675.73 41,559,238.12 9.00% All I AAA 3.22
Total ABS 41,824,051.37 2.60% 41,628,849A7 2.95% 37,856.N (69,611.35) Anne 1.27
Agency I,
313385179 FHLB Discount Note 5,000,000.00 09/27/2018 4,992,012.50 99.86 4,993,19583 1,08% P-1/A-1+ 0.07
2.130% Due 10/242018 2.16% 4,993,195.83 2.16% 0.00 0.00 F-1+ 0.07
3135GOG72 FNMA Note 5,000,000.00 12/182015 4,963,950.00 99.77 4,98$710.00 1,08% Asia/AA+ 0.21
1.125% Due12/142018 1.37% 4,997,550.32 2.22% 16,718.75 (8,840.32) AAA 0.20
3133782M2 FHLB Note 7,500,000.00 Various 7,589.190.00 99.63 7,472,347.50 1.62% Aaa/AA- 044
1.500% Due03/OS/2019 1,14% 7,511,294.20 2.35% 7,187.50 (38,94670) AAA 0.43
3137EADM8 FHLMC Note 7,500.000.00 Various 7,399,650,00 98.62 7,396,657.50 1,61% Aaa I AA+ 1.01
1.250% Due 1010212019 161% 7,473,598.57 2.65% 46,614.58 (76.941+07) AAA 0.98
313383HUS FHLB Note 5,000,000.00 08/132015 5,008,950.00 98.19 4,909,705.00 1.07% Asia/AA+ 1.70
1.750% Due 06/12/2020 1,71% 5,003,145,69 2,84% 26,491 DG,440.69) MR 1.65
3135GOD75 FNMA Note 5,000,000.00 11/162015 4,955,650.00 97.86 4.893,240.00 1.06% Aaa/AA+ 1.73
1.500% Due 06/2M020 1.70% 4,983,358.86 2.77% 20,625.00 (91 AAA 1.68
3137EAEK1 FHLMC Note 5,000,000.00 Various 4,986,225.00 98.00 4,900,110.00 1.07% Aaa/AA+ 2.13
1.875% Bari 1.97% 4,990,040.75 2.85% 34,895.83 (89,930.75) AAA 2.05
3135GOF73 FNMA Note 7,500,000.00 Various 7,370,726.00 97.19 7,289,242+50 1.59% Aaa/AA+ 2.17
1.500% Due 1113M020 1.87% 7,443,523.07 2.85% 37,812.50 (154,280.57) AAA 2.10
3137EAEL9 FHLMC Note 7,500.000.00 02262018 7,484,475.00 98.85 7,413,712.50 1.61% Aaa I AA+ 2.38
2.375% Due02/162021 2.45% 7.487,565.69 2.88% 22.265+63 (73,853+19) AAA 2.29
313OA7CV5 FHLB Note 5,365,000.00 OV172016 5,343,325.40 96.58 5,181,266.85 1.12% Asia/AA+ 2.39
1.375% Due02A82021 1,46% 5,354,666.90 2,87% 8,811+27 (173,402.05) AAA 2.32
3135GOJ20 FNMA Note 10,000,000.00 Various 10,040,950.00 96.54 9.654,040.00 2.09% Aaa/AA+ 2.41
1.375% Due 02262021 1.28% 10,021,479.32 2.87% 13,368.06 (367,439.32) AAA 2.34
313379RB7 FHLB Note 4,000,000.00 08/302017 4,030,160.00 97.39 3,895,584.00 0.85% Aaa/AA+ 2.70
1.875% Due08/112021 1.67% 4,021,505.39 2.89% 22,916.67 (125,921.39) AAA 2.59
3135GOU35 FNMA Note 7,500,000.00 06/28/2018 7,515,225.00 99.52 7,463,782.50 1.63% Aaa/AA- 2.73
2.750% Due 06/22/2021 2.68% 7,513,910,81 2.93% 55,000.00 (50,128.31) AAA 2.59
3135GO838 FNMA Note 3,000.000.00 01/30/2017 2,994,570,00 97.11 2,913.396.00 0.63% Aaa I AA+ 3.27
2.000% Due01/052022 2.04% 2,996404.13 2.93% 14.333+33 (83,008+13) AAA 3.11
3135GOT45 FNMA Note 5,000,000.00 05/052017 4,972,500.00 96.47 4,823,340.00 1.05% Area/AA+ 3.52
1.875% Due 04/052022 1,99% 4,980,337,42 2,94% 45.833.33 (156,997+42) AAA 3.33
3135GOT94 FNMA Note 5,000,000.00 Various 4,910,990.00 97.49 4,874,335.00 1.06% Aaa/Mot 4.31
2.375% Due01/19/2023 2.78% 4,919,755.12 3.00% 23,750.00 (45,420.12) AAA 4.03
313383QR5 FHLB Note 5,000,000.00 08282018 5,083,350.00 101.06 6052,755.00 1.10% Aaa/AA+ 4.69
3.250% Due 06/092023 2.87% 5,081,773.75 3.01% 50,555.56 (29,018.75) NR 4.28
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mdt Price Market Value %of Port. Mooki Maturity
CUSIP Security Description Par Value/Units Book Yi a ld Book Value Mkt YTM Accrued Inn, Gain/Loss Fitch Duration
3137EAEN5 FHLMC Note 10,000,000.00 Various 9,956,500.00 98.77 9,877,060.00 2.16% Ana I AA+ 4.72
2.750% Due06119P2023 2K4% 9,958,475,40 3.03% 84,027.78 (81,415AO) AAA 4.35
109,598,398.90 107,992,478.18 23.0% Asa/AA- 2.38
Total Agency 109,865,000.00 1.99% 109,731,581.20 2.79% 531,208.85 (1,739,103.02) Aaa 2.26
31398VJ98 FHLMC FHMS KOM A2 900,000.00 it/2MOIO 951,046.88 101.29 911,627.10 0.20% Asia/AA+ 1.32
4.251% Due01Y2512020 3,54% 907,342.57 2,89% 3.188+25 4.284.53 AAA 1.13
03215PFN4 AMRESCO Residential Securities 1999-1 A 133,743.29 OS/20/2011 100,432.85 100.03 133,779.40 0.03% NR I A+ 10.74
3.170% Due OBY25Y2029 6.96% 113,979.87 3.36% 70.66 19.799.53 BBB 6.96
3133TCE95 FHLMC FSPC E3A 15,013.80 03/11/1998 15,029.51 101.34 15,214A4 0,00% Aaa/AA+ 13.88
3.739% Due 08/15Y2032 3.70% 15,020.15 2.75% 46.78 194.29 AAA 1.25
31397OREO FNMA FNR 20113 FA 223,883+01 1220/2010 223,813.05 101.37 226,961+40 0.05% Me/AA+ 22.42
2,910% Due02/25/2041 2,92% 223,830,90 2.63% 108.59 3,130.50 AAA 4.39
313WJY35 FHLMC FSPC T582A 790,24848 06/09/2011 894,956,06 109.95 868.869.97 0,19% Aaa I AA+ 25.00
6.500% Due 09/25/2043 540% 871281.12 3.64% 856.10 (2,411+15) AAA ISO
2,185,278.35 2,1%,452.31 0.47% Asia/AA+ 13.74
Total CMO 2,062,888.28 4.43% 2,131,454.61 3.19% 4,270.38 24,99710 Asa 2.79
Commercial Paper
62479MKF9 MUFG Bank LtdINY Discount CP 9,000,000.00 06/28/2018 8,937,870.00 9991 8,992,02090 1,95% P-1 I A-1 0.04
2.280% Due 1O/15/2018 2.33% 8.992,020.00 2.33% 0.00 0.00 MR 0.04
8,937,870.00 8,992,020.00 1.95% P4 IA-1 0."
Total Commercial Paper 9,000,000.00 2.33% 8,992,020.00 2.33% 0.00 0.00 MR 0.04
Foreign Corporate
4042801EF5 HSBC Holdings PLC Note 4,50000000 Various 4,429,980,00 91 4,369,815.00 0.95% A2IA 327
2.650% Due 01/0512022 308% 4.440,830,29 3,60% 28487.50 (71,015.29) AA- 3-07
4,429,980.00 4,369,815+00 0.95% A21A 3.27
Total Foreign Corporate 4,500,000,00 3.08% 4,440,830.29 3.60% 28,487.50 (71,015.29) AA- 3.07
Money Market Fund FI
31846V567 First Amencan Gast Obligation MMKT Class-Z 9,49526682 Various 9,495266,82 1On 9,495,266.82 2.05% P-1IA-1+ 000
1,94% 9,495266,82 194% 000 000 F-1 0.00
9,495,266.82 9,495,266,82 2.05% Are/AAA 0.00
Total Money Market Fund FI 9,495,266.82 1.94% 9,495,266.82 1 94% 0.00 0.00 AA 0.00
Mortgage Pass Thru
31381PDA3 FNMA FN 466397 345,887,62 12/01/2010 338,402,40 101 347,50188 0,08% Aaa I AA+ 2,09
3,400% Due11/012020 3.80% 344311,13 3,13% 22867 3,190.75 AAA 1,99
36225CAZ9 GNMA Poi G280023 18.884.65 0WOW1997 19,197.43 102.85 19,422.64 0.00% Aae/AA+ 8,23
3.230% Due 12J20/2026 3.12% 18,972.33 3.37% 50.83 450.31 AAA 309
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mkt Price Market Value %of Port. Moral Maturity
CUSIP Security Description Par Value/Units Book Yi 0 ld Book Value Mkt YTM Aci,rued I.t Gain/Loss Fitch Duration
36225CC20 GNMA Pool#G280088 21,006.77 OS/1 Ill 997 21,466.31 102.92 21,619.60 0.00% Aaa/AA+ 873
3.860% Due 06202027 372% 21,141.12 3.61% 69.59 47848 AAA 3.85
31348SWM FHLMC FH 786064 2,049.36 02/182000 1,999.47 102.27 2,095.97 0.00% Aaa/AA+ 9.26
3.447% Due 0110112028 3.65% 2,032.79 3.97% 5.89 63.18 AAA 4.15
31371NUC7 FNMA FN 257179 18,054.81 121OS/2011 19,094.73 103.45 18,677.79 0.00% Asia AA+ 9.51
4.500% Due 041012028 3.72% 18,660.78 3.29% 67.71 17.01 AAA 3.24
31417YAY3 FNMA Poi FN MA0022 20,066.74 12/052011 21,222.55 103.45 20,759 34 0.00% Aaa I AA+ 10.51
4.500% Due 041012029 3.76% 20,768.09 3.31% 7525 (8.75) AM 3.34
3138EG6F6 FNMA FN AL0869 12.333.29 12/052011 13,043.67 103.46 12,760.05 0.00% Aee I AA+ 10.68
4.500% Due 06/012029 3.77% 12767.02 3.33% 1079 (6.97) AAA 3.41
36225CNW GNMA Pool#G280395 7,842.52 03/152000 7,771.42 103.19 8,092.69 0.00% Aaa/AA+ 11.56
3.860% Due 04202030 3.94% 7,815.06 3.39% 25.23 277.63 AM 3.r
36225CN28 GNMA Poi G280108 60,675.21 03/152000 60,068.97 103.20 62,614.15 0.01% Aaa/AA+ 11.64
3.860% Due 05202030 3.95% 60,436.15 3.32% 195.17 2.178.00 AAA 3.47
31403GXF4 FNMA Poi FN 748678 2,572.59 061102013 2,765.54 106.12 2,729.94 0.00% Aaa/AA+ 15.01
5.000% Due 10/01/2033 4.16% 2,715.78 3.50% 1072 14.16 PAA 4.14
36225DCBB Gkl APool#G280965 5$706.99 O711MON 58,670.30 103.64 60,84228 0.01% M. AA+ 15.81
2,810% Duel 2.82% 58,687,60 3.16% 137.47 2,154.68 AM 3.57
31406XWTS FNMA Pool#FN 823358 120,591A2 011112006 119,649.01 104.67 126,218.50 0,03% Ali.l M+ 16.35
3.502% Due0210112035 3.57% 120,060,78 3.31% 351.96 6.15772 AAA 4.56
31406PQYS FNMA Poi FIN 815971 196,758.25 06/102013 211,515.14 106.13 208,815.99 0.05% Aaa/AA+ 16.43
5.000% Due 0310112035 4.21% 207,958.09 3.55% 81983 85Z90 AAA 4.39
3140]BXH] FNMA Poi FN 826080 22,349.59 06/102013 24,025.80 106.22 23,73871 0.01% Aaa/AA+ 1676
5.000% Due 07/012035 4.22% 23,627.91 3.55% 93.12 110.80 AAA 4.39
31376R722 FNMA FN 357969 114,218.94 061102013 122,785.34 106.21 121,311.82 0.03% Aaa/AA+ 16.93
5.000% Due 09/01/2035 4.22% 120,767.47 3.56% 111.06 544.35 PAA 4.42
31403DJZ3 FNMA Pool N745580 111,245+51 0611MO13 1191 106.18 118,125+71 0.03% AeeIAA+ 17.68
5.000% Due 0610112036 4.26% 117,688.03 3.57% 463.52 437.68 AM 4.45
314101 FNMA Poi FN 888336 219,725.35 OW102013 236,20476 106.20 233,354.91 0,05% Arlie I qA+ 17.76
5.000% Due 07/012036 4.25% 232,463.64 3.56% 915.52 891.27 AAA 4.43
1,397,461.76 1,408,681.97 0.31% Anne I AA+ 12.52
Total Mortgage Pass Turn 1,352,969.31 3.95% 1,390,873.77 3.39% 3,630.30 17,808.20 Aaa 3.68
Municipal Bonds
73358WAG9 Pon Authority of NV B NJ TE-REV 2,440,000.00 Various 2.501,633,89 101 2,503,513.20 0.55% Aa3/AA- 1.17
5.309% Due12/0112019 4.97% 2,447,57522 3.02% 43,179.87 55,93798 AA- 1.11
&491 New York NY TE-REV 1,400,00000 10/27/2010 1,400,000.00 101.81 1,425,34000 0,31% Aa1/AAA 2.09
4.075% Due11/012020 4.08% 1,400,000.00 3,17% 23770+83 25.340.00 AM 1.96
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mkt Price Market Value %of Port. Moci Maturity
CUSIP Security Description Par Value/Units Book Yi d Id Book Value Mkt YTM Accrued rut Gain/Loss Fitch Duration
913366EJ5 Univ of California Rots Med TE-REV 400,000.00 11/09/2010 400,000.00 104.46 417,840.00 0.09% Aa3/AA- 2.62
5,035% Dual 594% 400,000,00 3,25% 7,60844 17,84000 AA- 241
4,307,633.89 4,34(1,693.20 0.96% Anal 1.61
Total Municipal Bonds 4,240,000.00 4.68% 4,247,576.22 3.09% 74,559.14 99,117.98 AA 1.52
Supranational
4581XOCX4 Inter-American Dev Bank Note 3,035.000.00 04/052017 3,027,807.05 98.04 2,975,614.16 0.65% Ads/AAA 1.62
1.625% Due05/122020 1,70% 3,031,237.44 2,87% 19.042.52 (55,623.28) AAA 1.57
45950KCMO International Finance Corp Note 2,970,000.00 01/182018 2,961,268.20 98.42 2,922,928.47 0.64% Aaa/AAA 2.32
2.250% Due 01252021 2.35% 2,963,251.98 2.96% 12,251.25 (40,323.51) NR 2.23
4581X0CS5 Inter-American Dev Bank Note 5,000,000.00 Various 5,059,610.00 97.43 4,871,700.00 1,06% Aaa/AAA 2.46
1.875% Due 03/15/2021 1.68% 5,022,344.54 2.96% 4,166.67 (150,644.54) AAA 2.38
4591 Intema mnal Finance Corp Note 2,500,000.00 11/092016 2,441,600.00 95.02 2,375,57500 0.52% Aaa/AAA 2.81
1.125% Due0712012021 1.64% 2,465,123.64 2.99% 5,546.88 (89,548,64) NR 2.72
4581XOCW6 Inter-American Dev Bank Nate 3,000,000.00 01/102017 2,996,310.00 97.15 2,914,536.00 0,63% Ask I NR 3.30
2.125% Due 01/18/2022 2.15% 2.997.564.92 3.04% 12,927.08 (83,028.92) AAA 3.14
459058FY4 Intl.Bank Recon 8 Development Note 10,000,000.00 Various 10,006,350.00 9674 9,674,120.00 2.10% Add I NR 3.33
2.000% Due01262022 1,99% 10,003,186.21 3.04% 36,111A2 (329,066,21) AM 3.17
4581XOCZ9 Inter-American Dev Bank Note 6,500,000.00 Various 6,249,655.00 95.18 6,186,947.00 1.34% NR/NR 3.96
1750% Due09/14/2022 2.65% 6,283,397.41 3.05% 5,371.52 (96,450.41) AAA 3.77
32,742,600.25 31,921,420.63 6.93% Aaa IAAA 3.02
Total Supranational 33,005,000.00 2.07% 32,766,106.14 3.00% 95,417.04 (844,685,51) Ads 2.89
US Corporate
J
532457BF4 Eli Lilly B CO Note 4p00,00000 Various 4,009,675.00 99,56 3,982.264.00 0.86% A2/AA- 0.45
1950% Due 03/15/2019 1.89% 4,001,025.81 2,93% 3,466.67 (18,761.81) A 0.45
02665WAH4 American Honda Finance Note 4,000,00000 Various 4,046,640.00 99,54 3,981,46800 0,86% A2/A+ 0.87
2.250% Due 08/15/2019 1.93% 4,010,664.17 2.79% 11,500.00 (29,196.17) NR 0.86
06406HCW7 Bank of New York Callable Note Cent 8/112019 2,120,000.00 02/102016 2,142,175.20 99.52 2,109,739+20 0.46% At/A 0.95
2.300% Due 09/1112019 199% 2,125,474.07 2.82% 2,70889 (15,734.87) M. 0.93
24422ESS9 John DBere Capital Corp Note 5,000,000.00 Various 5,046,984.00 99.67 4,983,56500 1,08% A2/A 0.96
2.300% Due0911612019 2.07% 5,010276.38 2.65% 4,79167 (26711+38) A 0.94
36962G7MO General Electric Capital Corp Callable Note 1X 5,000,000.00 Various 5,014,950.00 98.94 4,947,060.00 1,08% A21 A 1.28
12/9/20182+200% Due 01I092020 2.13% 5,003,750.41 3.05% 25,055.55 (56,690.41) A 1.24
1Z9120
4691 JP Morgan Chase Callable Note Cent 12232019 2,000,000.00 02/062015 1,994,880.00 98.98 1,979,534.00 0.43% A3/A- 1.32
2.250% Due 01232020 2,30% 1,998,642.79 3,05% 8.500.00 (19,108.79) AA- 1.28
40428HPR7 HSBC USA Inc Note 2,500,000.00 Various 2,472,287.50 98.90 2.472,600.00 0.54% A2/A 1.43
2.350% Due 03/052020 2.64% 2,490,125,87 3.14% 4.243.06 (17,525.87) AA- 1.39
747525AD5 Gualoamm Inc Note 5,000,000.00 051192015 4,995,195.40 98.69 4,934,560.Oo 1.08% A2/A- 1.64
2.250% Due 05202020 2.27% 4,998,428.30 3.07% 40,937.51 (63,868.30) NR 1.56
91 Walls Fargo Corp Note 5,000,000.00 07/162015 5,001,650.00 99.01 4,950,400.00 1.08% Al IA- 1.81
2.600% Due 0712M020 2.59% 5,000,596.06 3.17% 24,916.67 (50,196.06) A+ 1.75
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase,Data Cost Value Midt Price Market Value %of Port. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi.Id Book Veto. Mkt YTM Accrued Int, Gain/Loss Fitch Duration
037833BS8 Apple Inc Callable Note Cent 1232021 4p00,000.00 05/23/2016 4,01 98.22 3,928,720.00 0.85% Ant/AA- 2.40
2.250% Due O2232021 1.96% 4,025,225.95 3.03% 9,501 (96,505.95) NR 2.31
30231GAV4 Exxon Mobil Corp Callable Note Cont 2112021 3,000,000.00 Various 3,016,097.40 98.01 2,940,387.01 0.64% Asa/AA- 2.42
2.222% Due 03/012021 2.10% 3,008,164.41 3.08% 5,555.01 (8])]].60) NR 2.33
369550BE7 General Dynamics Corp Note 3,160,000.00 01 3,138,038.00 99.47 3,143,100.32 0.69% A2l A+ 2.61
3.000% Due 05/11/2021 3.24% 3,140,903.48 3.21% 36,866.67 2,196.84 NR 2.47
lffl BG4 Chevron Corp Callable Note Cont 411512021 2,500,000.00 05/20/2016 2,485350.00 91 2,438,575.00 0.53% Aa2/AA- 2.63
2.100% Due05/16/2021 2,23% 2,492,275,89 3.08% 19,68➢.50 (53,700.89) NR 2.51
61749WAL3 Morgan Stanley Note 2,800.000.00 06M(3/2014 3,200848,00 105.29 2,947.434.00 0.64% A3/BBB+ 2.83
5.500% Due W/282021 324% 2,95870748 3.53% 26.950+00 (11,273+48) A 2.59
594918BP8 Microsoft Callable None Cont 718121 3,045,000.00 Various 3,041,385.15 96.98 2,922,670.17 0.63% Are/AAA 2.86
1.550% Due08/08Q021 1.57% 3,042,937.20 3.03% 6.948.52 (120,267.03) AA+ 2.76
68381 Orade Corp Callable Note Cant 8101121 3,000,000.00 06282018 2,892,240.00 96.55 2.896,57500 0.63% At/AA- 2.%
1.900% Dull 3.08% 2,900,868.14 3.13% 2,53333 (4,293.14) A 2.84
06406RAA5 Bank of NV Mellon Corp Callable Note Cant 2,500,000.00 0Z 08/2017 2,504,495.00 97.52 2,437,98250 0.53% Al/A 3.36
102022 2.56% 2,502,986.67 3.39% 9,75000 (65,004.17) AA- 3.17
2.600% Due 02/0]2022
69353RFB9 PNC Bank Callable Note Cont 1/1 B2022 1,000,000.00 03262018 94,940.00 97.40 974,026.00 0.21% A2/A 3.39
2.625% Due02/1]2022 3.32% 978,235.51 3.44% 3,208.33 (4,209.51) A+ 3.19
674591 Occidental Petroleum Callable Note Cant 3/152022 3,350,00000 04/252017 3,354,589.50 97.30 3,259,439+45 0.71% A3/A 3.54
2,600% Due 04/15/2022 2.57% 3,353,247.68 3.42% 40,16278 (93,808.23) A 3.31
0134661 Berkshire Hathaway Note 4,000,00000 05/23/2017 4,131,120.00 99.36 3,974,21600 0.87% Aa21 AA 3.62
3.000% Due05/152022 2.30% 4,095 504 48 3.19% 45,33333 (121.288+48) A+ 3.37
950001 WELLS FARG08 COMPANY Note 3,000,000.00 Various 2,95 520.00 96.59 2,897,553.00 0.63% A21 A- 3.81
2.625% Due 07122Y2022 2,99% 2,961,441,72 3,59% 15,09376 (63,888.72) A. 3.57
ON40EAUl Chubb INA Holdings Inc Callable Note Cant 4,169,000.00 Various 4,232,453.17 97.89 4,080,863.17 0.89% A3/A 4.10
2+875%2 Due 11/03202T 2.54% 4,220,764.61 3.43% 49,275.26 (139,911.44) A 3.78
91302
91 US Bank NA Callable Note Cent 12123122 5,000,000.00 01292018 4,981,600.00 97.42 4,870,820.00 1.06% At/AA- 4.32
2.850% Due 01232023 2.93% 4,984,059.41 3.50% 26,916.67 (113,239Al) AA- 3.99
06406RAE7 Bank on NY Mellon Corp Callable Note Cant 1,500,000.00 0212612018 1,486,065.00 97.55 1,463,235.00 0.32% Al/A 4.33
12/29/2022 3.16% 1,487,733.17 3.57% 7,620.83 (24,498.17) AA- 4.00
2.950% Due 01292023
4493211AR6 IBM Credit Corp Note 5.670,000.00 Various 5,608264.40 98.31 5,573,918.56 1.21% At A+ 4.36
3.000% Due 021082023 3.26% 5,610,089.79 3.42% 25,987.50 (36,111.23) A+ 4.02
00440EAP2 Chubb INA Holdings Inc Note 2,000,000.00 05242018 1,937,000.00 96.68 1,03,576.00 0.42% A3/A 4.45
2.700% Due 03/13/2023 3.42% 1,941,502.57 3.51% 2,700.00 (7,926.57) A 4.14
084670BR8 Berkshire Hathaway Callable Note Cent 111512023 2,500,000.00 0420/2018 2,440,950.00 97.67 2,441,625.00 0,53% Aa21 AA 4.46
2.750% Due03/152023 3.28% 2,446,240.03 3.32% 3,055.56 (4,615.03) A+ 4.15
69353RFV PNC Bank Callable Note Cent 5I92023 5,000.000.00 Various 4,993,318.05 99.64 4,981,935.01 1.09% A2/A 4.69
3.500% Due 06/082023 3.53% 4.993729.32 3.58% 54,930.56 (1179.31) NR 4.24
91 Wal-Mart Stores Callable Note Cent 512612023 3,880,000.00 Various 3,878,991.40 100.44 3,896,889.64 0.85% Aa21 AA 4.74
3.400% Due OWWO23 3.41% 3,8791 3.30% 34,44518 17.845.19 AA 4.24
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mdt Price Market Value %of Port. Moodyi Maturity
CUSIP Security Description Par Value/Units Book Yi 0 ld Book Value Mkt YTM Accrued Int Gain/Loss Fitch Duration
02665WCJ8 American Honda Finance Note 845,000.00 07/11/2018 843,538.15 99.85 843,713.07 0.18% A2/A+ 479
3,450% Due 07/14Y023 3.49% 843,599,86 348% 6,07344 11321 NR 435
100,866,060.32 99,188,W4.10 21.59% Ai/A+ 2.83
Total US Corporate 100,539,000.00 2.62% 100,506,245.68 3.21% 558,714.85 (1,317,741.58) A+ 2.64
US Treasury
912796NZ8 US Treasury Bill 5,000,000.00 09/28/201a 4,996,302.22 99.94 4,997,155.55 1.08% P-1/A-1+ 0.03
2.048% Due10/11/2018 2,08% 4,997,155.55 2,08% 0.00 0.00 F-1+ 0.03
912828833 US Treasury Note 11,000,000.00 Various 11,042,439.19 9973 10,970,113.00 2.38% Asia/AA+ 0.34
1.500% Due 01/31Y2019 1.37% 11,004,570.90 2.31% 27,798.91 (34,457.90) AAA 0.33
912828SN1 US Treasury Note 5,000,000.00 1228/2016 5,016,423.00 99.54 4,976,955.00 1,08% Me/AA+ 0.50
1.500% Due03/31Y2019 1.35% 5,003,616.26 2.43% 206.04 (26,661.26) AAA 0.49
91281 US Treasury Note 2,000,000.00 Various 1,996,861" 99.33 1,986,562.00 0.43% Asa/AA- 075
1.625% Due06130W!) 1,66% 1,999,526,14 2.53% 8,213.32 (12,964.14) AAA 074
912828WW6 US Treasury Note 5,000.000.00 Various 5,012,388,70 99.21 4,960.350.00 1,08% Asia/AA. 0.83
1.625% Due 07/31/2019 1,57% 5,002,072.35 2.59% 13.688+86 (41722+35) AAA 0.82
91282BF39 US Treasury Note 5,800,000.00 10/27/2014 5,873,186.87 99.10 5,747,892.80 1.24% Asia/AA+ 1.00
1.750% Duea9/30/2019 1,48% 5,814,816,47 2,67% 278.84 (66,923+67) AAA 0.98
91282BG61 US Treasury Note 7,500,000.00 12/19/2014 7,449,634.50 98.63 7,397,167.50 1.61% Asia/AA+ 1.17
1.500% Due 11/30Q019 1.64% 7,488,136.51 2.70% 37,807.38 (90,967.01) AAA 1.14
912828R 5 US Treasury Note 5,000,000.00 1221/2016 4,966,423.00 97.91 4,895,310.00 1.06% Aaa/AA+ 1.67
1.500% Due 05131Y020 170% 4,983,746.17 2.79% 25,204.92 (88,436.17) AAA 1.62
912828199 US Treasury Note 10,000,000+00 Various 9,850,311.40 97.06 9,705,860+00 2.11% Asa/AA+ 2A9
1.375% Due 10131/2020 1.81% 9,913,469,31 2.84% 57,54076 (207,609.31) AAA 2.02
912828N89 US Treasury Note 6,000,000.00 Various 5,895,MV41 96.67 5,800,08000 1.26% Asia/AA+ 2.34
1.375% Due 01/31/2021 1.81% 5,941,30273 2.86% 13,89945 (141.222+73) AAA 2.27
912828TU US Treasury Note 7,000,000.00 Various 6,757,914.08 94.97 6,647,81600 1.44% Asia/AA+ 3.00
1.125% Due09130,2021 1,88% 6,848s19,03 2,89% 21635 (201,103.03) AAA 2.91
912828T67 US Treasury Note 6,000,000.00 12/13/2016 5,813,691.98 95.18 5.711,016.00 1.24% Asia/AA+ 3.09
1.250% Due 10131n021 1.92% 5,882,276.75 2.89% 31,385.87 (171,260.75) AAA 2.97
9128281,165 US Treasury Note 7,000,000.00 1228/2016 6,900,492.20 96.54 6,757,737.00 1.47% Asia/AA+ 3.17
1.750% Due 11130Q021 2.06% 6,935,987.19 2.90% 41,168.03 (178,250.19) AAA 3.03
91281 US Treasury Note 3,000,000.00 02/27/2017 3,004,814.74 96.73 2,901,915.00 0.63% Me/AA+ 3.34
1.875% Duel 1.84% 3,003,261.60 2.91% 9,476.90 (101,346.60) AAA 3.19
912828J76 US Treasury Note 5,000.000.00 04/25/2017 4,976,383.W 96.16 4,807,810.00 1.04% Asia/AA+ 3.50
1750% Due 03/31/2022 1.85% 4,983.245.72 2.91% 240.38 1175.435+72) AAA 3.36
912828M5 US Treasury Note 5,000,000.00 07/25/2017 4,973,454.25 95.88 4,793,945.00 1.04% Asia/AA+ 3.75
1.750% Due 06/30/2022 1,86% 4,979,825,23 2,92% 22.112.77 (185,880+23) AAA IN
912828124 US Treasury Note Q000,000.00 09/27/2017 5,987,832.60 96.11 5,766,798.00 1.25% Asia/AA+ 3.92
1.875% Due 08/31/2022 1.92% 5,990,322.92 2.93% 9,633.98 (223,524.92) AAA 3.73
912828157 US Treasury Note 13,000,000.00 Various 12,763,554.69 95.56 12,422,618.00 2.69% Aaa/AA+ 4.00
1.750% Due 09130Q022 2.15% 12,802,333.45 2.93% 626.00 (379,715A5) AAA 3.82
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 9/30/2018
Purchase Date Cost Value Mkt Price Market Value %of Port. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi 0 Id Book Value Mkt YTM Accrued Int Gain/Loss Fitch Duration
912828MM US Treasury Note 8,000,000.00 12/22/2017 7,907,500.00 96.35 7,707,816.00 1.68% Aaa I AA+ 4.17
2.000% Due 11/30Q022 2.25% 7,921,837.50 2.W% 53,770.49 (214,021.50) AAA 3.93
912828N30 US Treasury Note 5,000,000.00 01/24/2018 4,926,562.50 96.75 4,837,695.00 1.05% Asia/AA+ 4.25
2.125% Dual 2.44% 4,936,715.71 2.96% 26,851.22 (99,020.71) AAA 4.00
9128264D9 US Treasury Note 10,000,000.00 Various 9,887,265.63 98.14 9,014,450.00 2.12% Ass,/AA+ 4.50
2.500% Due 03/31Y2023 2.75% 9,897,372.16 2.94% 686.82 (82,922.16) AAA 4.22
912828R69 US Treasury Note 5,000,000.00 05/30/2018 4,757226.56 94.29 4,714,260+00 1.03% Aaa/AA+ 4.67
1.625% Dull 267% 4,773,579,86 2.94% 27,305.33 (59,319.86) AAA 4.42
912828WUO US Treasury Inflation Index Note 11,039,928.00 Various 10,924,081,66 96.06 10,802,664.88 2.30% Aaa I AA+ 5.79
0.125% Due07115/2024 023% 10,971,67126 0.82% 2.924+41 1369.006+38) AAA STS
151,680,585.56 148,923,986.73 32.32% Aaa I AA+ 2.85
Total US Treasury 10,337,728.00 1.81% 152,075,758.77 2.64% 411,036.03 (3,151,772.04) Aaa 2.74
467,247,811.60 460,354,557.06 100.00% Adel IAA 2.74
TOTAL PORTFOLIO 469,221,903.78 2.19% 467,406,561.97 2.85% 1,745,180.53 (7,052,004.91) Aaa 2.37
TOTAL MARKET VALUE PLUS ACCRUALS 482,099,737.59
Cjjj � Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 9/30/2018
Purchase D:te Cost Value Mitt Price Market Value %of Pon. Moody/S&P Maturity
CUSIP Security Description ParValuelUdits Book Yi ld Book Value Mkt Will Accrued Int. Gain/Loss Fitch Duration
Agency
313385K39 FHLB Discount Note 6,000,00000 09/14/2018 5,990,620.00 9994 5,996,315.00 798% P-1IA-1+ 003
2.010% Duel011212018 2,04% 5,996,315,00 2.04% 0.00 000 F-1+ 0.03
5,990,620.00 5,996,315.00 7.98% Aaa IAAA 0.03
Total Agency 6,000,000.00 2.04% 5,996,315.00 2.04% 0.00 0.00 Asia 0.03
Commercial Paper
62479MKF9 MUFG Bank Ltd/NY Discount CP 3,100,00000 06/14/2018 3,075,41 7,00 9991 3,097,179.00 4,12% P-1/A-1 0,04
2.340% Due 10115/2018 2.39% 3,097,179.00 2.39% 000 0.00 NR 0.04
3,075,417.00 3,097,179.00 4.12% P-1IA-1 0.04
Total Commercial Paper 3,100,000.00 2.39% 3,097,179.00 2.39% 0.00 0.00 NR 0.04
Money Market Fund FI
31846V567 First American Gust Obligation MMKT Class-Z 1,351,706.35 Various 1,351,706.35 1,00 1,351,706,35 1,80% P-1 I A-1+ 000
1.94% 1,351,706.35 1.9sp 01 0.00 F-1 0.00
1.351,706.35 1,351,706.35 1.80% Aaa I AAA 0.00
Total Money Market Fund Fit 1,351,706.35 1.94% 1,351,706.35 1.94% 0.00 0.00 AA 0.00
Negotiable CD
18009N2V1 Royal Bank of Canada Yankee CD 1,000,00000 04/24/2018 996,762,00 9999 999,920,54 1.35% P-1IA-1+ 0.01
1,700% Due 10/05/2018 2.40% 991 2,40% 1700000 0.00 F-1+ 0.01
89113X7B4 Toronto Dominion NY Yankee CD 1,000.00000 07/18/2018 1,000,000,00 10000 1,000,00000 1.34% P-1/A-1+ 0.08
2.260% Due 1012912018 2,26% 1,000,000.00 2.26% 4,646.56 0.00 F-1+ 0.06
96121T6G8 Westpac Banking Corp Yankee CD 1,000.000.00 0525/2618 998,657.01 99.97 999739.80 1.35% P-1/A-1+ 0.09
2.060% Due 1110112018 2.35% 999739.80 2.35% 13.905.00 0.00 F-1+ 0.09
063]1ERK5 Bank of Montreal Chicago Yankee CD 2,950,000.00 Various 2,941,422.57 99.95 2,948,495.50 3.99% P-1/A-1 0.12
1750% DuellA3/2018 2.38% 2,947719.54 2.13% 50.190.97 775.96 F-1+ 0.12
780121bi Royal Bank of Canada Yankee CD 1,000,000.00 01 1,000,000.00 100.00 1,000,000.00 1.35% P-1/A-1+ 0.16
2.320% Due 11Y2]Y2018 2.32% 1,000,000.00 2.32% 13,855.56 0.00 F-1+ 0.16
89113Mn Toronto Dominion NY Yankee CD 1,W0,000.00 01 997,312.00 99.88 998,787.76 1.35% NR/NR 0.32
2.150% Due 01/24/2019 2.52% 998,787.76 2.52% 14,811.11 0.00 NR 0.31
89113X3W2 Toronto Dominion NY Yankee CD 1,000,000,00 06/21/2018 1,000,000.00 100.00 1,000,000.00 1.34% P-1/A-1+ 0.68
2.700% Due06/01Y2019 2.70% 1,000,000.00 2.70% 7,575.00 0.00 F-1+ 0.68
8,934,153.58 8,946,943.60 12.06% Aaa IAAA 0.19
Total Negotiable CD 8,950,000.00 2.41% 8,946,167.64 2.33% 121,983.20 775.96 Asia 0.12
Supranational
459515H96 IFC Discount Note 2000.00000 07/26/2018 1,992444.44 9999 1999,888.89 266% P-1IA-1+ 0.01
2.000% Due 1010212018 2,04% 1,999,888,89 2,04% 0.00 000 F-1+ 0.01
1,992,444.44 1,999,888.89 2.66% Aaa/AAA 0.01
Total Supranational 2,000,000.00 2.04% 1,999,888.89 2,04% 0.00 0.00 Ass 0.01
Cjjj � Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 9/30/2018
Purchase D:te Cost Value MkIt Price Market Value %of Pon. Moi Maturity
CUSIP Security Description ParValueJUl Book Yi ld Book Value Mkt Will Accrued Int. Gain/Loss Fitch Duration
US Corporate
74005PBH6 Praxsr Note 1205,00000 Various 1,198,513.80 9985 1203,157.56 1.61% A2IA 0.10
1250% Due 11/07/2018 2,52% 1,203,481,52 2.73% 6,02500 (323,96) NR 0.10
24422ESF7 John Deere Capital Corp Note 1,000.001 06/18/2018 997500,00 9990 998.972.00 1.34% A2I A 0.20
1.950% Due 1211312018 2.47% 998,968.93 2.45% 5,850.00 3.07 A 0.20
46625HJR2 JP Morgan Chase Note 1p00,000.00 05/032018 998,810.00 99.91 999,132.00 1.33% Ai IA- 0.33
2.350% Due011282019 2,51% 999,467.63 2,61% 4.112.50 (335.63) AA- 0.33
06051GFD6 Bank of America Coup Note 1,500,000.00 07202018 1,499,910.00 100.01 1,500,108.00 2.02% A3IA- 0.50
2.650% Dua04/01Y2019 2.66% 1,491 2.64% 19,875.00 173.26 A+ 0.49
94974BFU9 Wells Fargo Corp Note 1,500,000.00 07202018 1,494,090.00 99.68 1,495,243S0 2,01% A2IA- 0.56
2.125% Due04222019 2.66% 1,495,589.23 2.70% 14,078.13 (345.73) A+ 0.55
6,188,823.80 6,196,613.06 8.31% A2/A- 0.36
Total US Corporate 6,205,000.00 2.58% 6,197,442.05 2.63% 49,940.63 (828.99) A+ 0.36
912196NZ8 US Treasury BIII 10,000,000.00 07/27/2018 9,959266,11 99,95 9,994,640.28 13,29% P-1 /A-1+ 0.03
1930% Due 10/11/2018 1.96% 9,994,640.28 1.96% 0.00 0.00 F-1+ 0.03
912796OE2 US Treasury Bill 5,000,00000 07/30/2018 4,976,302,17 9987 4,993,462,67 6.64% P-1IA-1+ 0.07
1.961% Due 10/25/2018 2.00% 4,993,462.67 2.00% 0.00 0.00 F-1+ 0.07
912796PP8 US Treasury Bill 5,000,00000 09/19/2018 4,958,270.17 99.24 4,962,007.17 6,60% P-1/A-1+ 0.34
2.242% Due01/312019 2.29% 4,962,007.17 2.29% 0.00 0.00 F-1+ 0.33
912828B33 US Treasury Note 22,500,000.00 Varous 22,429,101.56 99.73 22,438,867.50 29,92% Aaa/AA+ 0.34
1.500% Due01/312019 2.28% 22.441,788.95 2.31% 56.861+41 (2,921.451 AAA 0.33
912828W 9] US Treasury Note 5,000,000.00 07 T2018 4,965,429.69 99.41 4,970,705.00 6.61% Asia I AA+ 0.5)
1.250% Dua031312019 2.30% 4,974,355.63 244% 17110 (3,650A3) AAA 0.49
47,288,369.70 47,359,682.62 63.07% Aaa I AAA 0.26
Total US Treasury 47,500,000.00 2.19% 47,366,254.70 2.22% 57,033.11 (6,572,08) Aaa 0.26
74,821,534.87 74,948,328.52 100.00% Aat/AA+ 0.22
TOTAL PORTFOLIO 75,106,706.35 2.24% 74,954,953.63 2.25% 228,956.94 (6,625.11) A. 0.22
TOTAL MARKET VALUE PLUS ACCRUALS 75,177,285A6
lCjjj � Holdings Report
OCSD Lehman Exposure -Account #10284 For the Month Ending 9/30/2018
Purchase D:te Cost Value Mint Price Market Value %of Pon. Moi Maturity
CUSIP Security Description ParValuelUnits Book Yi Id Book Value Mid YTM Accrued Int. Gain/Loss Fitch Duration
Common Stock
SLHOPNTA4 Lehman Brothers, Inc Open Position Long 60,641 49 1112112014 57 842.64 042 25,621.03 26.00% NR/NR 000
Exposure 000% 5784264 000% 000 (32221.61) NR 000
0.000% Due09/30/2018
57,842.64 25,621.03 26.00% NR/NR 0.00
Total Common Stock 60,661.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00
525ESCIB7 Lehman Brothers Note-Defaultel 600,000.00 09/1912008 327,458.23 2.82 16,920.00 17.17% NR/NR 0.32
0.000% Due01/24Y2019 0.00% 327,458.23 0.00% 0.00 (310,538.23) NR 0.00
525ESCOY6 Lehman Brothers Note-Defaulted! 2,000,000.00 09/18/2008 1,056,016.56 2.80 56,000.00 56.83% NR/NR 31.08
0.000% Due 10/22/2049 0.00% 1,056,016.56 0.00% 0.00 (1,000018.58) NR 0.00
1,383,474.79 72.920.00 74.00% NR/NR 23.94
Total US Corporate 2,600,000.00 0.00% 1,383,474.79 0.00% 0.00 (1,310,554.79) NR 0.00
1,441,317.43 98,541.03 100.00% NR/NR 17.72
TOTAL PORTFOLIO 2,660,641.49 0.00% 1,441,317.43 0.00% 0.00 (1,342,776.40) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 98,541.03
Gilk
SECTION 5
Transactions
C�j't Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 June 30, 2018 through September 30, 2018
Transaction Settlement AcqrDisp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurSold Total Amount, Gain/Loss
ertnlnslnnuw
Purchase 07/16/2018 0261 845,000.00 American Honda Finance Note 3,45%Due 07/14/2023 gg gy 3.49% 843,538.15 0.00 843,538.15 0.00
:
Purchase 07/1M018 3137EAEN5 5,000,000.00 FHLMC Note 99.418 2.88% 4,970,900.00 13.750.00 4,984,650.00 0.00
2.75%Due:M/19/2023
Purchase 07/25/2018 47781 4,630,000.00 John Deere Owner Trust 2018-B A3 99992 3.10% 4,629,649.05 0.00 4,629,649.05 0.00
3 08%Due: 11/15/2022
Purchase 07/25/2018 61 3,560,000.00 Nissan Auto Receivables Owner 2018-B A3 99.997 3.08% 3,559,886.66 0.00 3,559,884.66 0.00
3.06%Due:03/15/2023
Purchase 081 43815HAC1 3,970,000.00 Honda Auto Receivables Owner 2018-3 A3 99.986 2,98% 3,969,455.32 0.00 3,969,455.32 0.00
2.95%Due:08/22/2022
Purchase 08/29/2018 313383QR5 5,000,00000 FHLB Note 101.667 2.87% 5,083,350.00 36,111.11 5,119,461.11 0.00
3.25%Due:M/09/2023
Purchase 09/27/2018 313385179 5,000,0W.W FHLB Discount Note 99,840 2.16% 4,992,012.50 0.00 4,992,012.50 0.00
2.13%Due: 10/24/2018
Purchase 09/28/2018 9127%NZ8 5,000,000.00 US Treasury Bill 99.926 2.08% 4,996,302.22 0.00 4,996,302.22 0.00
2.048%Due:10/11Y O18
Subtotal 33,005,000.00 33,045,091.90 49,861.11 33,094,953.01 0.00
Security 07/31/2018 912828WUO 45,656.00 US Treasury Inflation Index Note 100.000 45,656.00 2.48 45,658.48 0.00
Contribution 0.125%Due:0711WO24
Security 08/31/2018 912828WUO 18,408.00 US Treasury Inflation Index Note 100.000 18,408.00 294 18,410.94 0.00
Contribution 0.125%Due:07/15/2024
Security 09/30/2018 912828WUO 1,352.00 US Treasury Inflation Index Note 100.000 1,352.00 0,35 1,352.35 0.00
Contribution 0.125%Due:07/15/2024
Subtotal 65,416.00 65,416.00 5.77 65,421.77 0.00
TOTAL ACQUISITIONS 33.070.416.00 33.110.507.90 49,866.88 33,160,374.70 0.00
Maturity 07/02/2018 07391 3,200,0W.W Bear Steams Note 100.000 3,200,000.00 0.00 3,200,000.00 0.00
4.65%Due-07/02/2018
C�j't Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 June 30, 2018 through September 30, 2018
Transaction S."lament Acq/Diap Interest
Type Date CUSIP Quartity Security Description Price Yield Arm.nt PurlSold Total Amount Gain/Loss
Maturity 0112712018 313385ZW9 9,000,000.00 FHLB Discount Note 100.000 9,000,000.00 0.00 9,000,000.00 0.00
1.846%Due:0712712018
Maturity OM912018 08417GXH6 5,825,000.00 Bank of Nova Scotia Yankee GD 100.000 5,825,000.00 92.722.68 5,917,722.68 0.00
1.57%Due:0810912018
Maturity 09/10/2018 89233HJA3 8,000,000.00 Toyota Motor Credit Discount CP gg 204 8,000,000.00 0.00 8,000,000.00 0.00
2 33 h Due:0911012018
Subtotal 26,025,000.00 26,025,000.00 92,722.68 26,117,722.68 0.00
TOTAL DISPOSITIONS 29,264,165.52 29.2"165.52 324,]18.92 29,588,884.44 0.00
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 June 30, 2018 through September 30, 2018
Transaction Settlement AcqlDisp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurfSold Total Amount Gain/Loss
ertnn
Purchase 07/16/2018 313385D52 5,000,000.00 FHLB Discount Note 1 9%Due 08/27/2018 99.]]8 1.93% 4,988,916.6] 0.00 4,988,916.67 0.00
:
Purchase 07/19/2018 89113X7B4 1,000,000.00 Toronto Dominion NY Yankee CD 100.000 2.26% 1.000,000.00 0.00 1,000,000.00 0.00
2.26%Due: 10/29/2018
Purchase 07/24/2018 06051GFD6 1,500,000.00 Bank of America Corp Note 999g4 2.66% 1.499,910.00 12.477.08 1,512.387.08 0.00
2.65%Due:04/01/2019
Purchase 07124Y2018 94974BFU9 1,500,000.00 Wells Fargo Corp Note 99.606 2.66% 1.494,090.00 8.145.83 1,502.235.83 0.00
2.125%Due:04/22/2019
Purchase 07/26/2018 4595151196 2,000,000.00 IFC Discount Note 99622 2.04% 1.992,444.44 0.00 1,992,444.44 0.00
2%Due:10MM018
Purchase 07/27/2018 9127%NZ8 10,000,000.00 US Treasury Bill 99.593 1.96% 9,959,266.11 0.00 9,959,266.11 0.00
1.93%Due: 10/11/2018
Purchase 07/30/2018 912796CA0 5.000,000.00 US Treasury Bill 99.692 1.91% 4,984,594.44 0.00 4,984,594.44 0.00
1.88%Due:09/27/2018
Purchase 07/30/2018 912796DE2 5,000,000.00 US Treasury Bill 99.526 2.00% 4,976,302.17 0.00 4,976,302.17 0.00
1.961%Due:10Y25/2018
Purchase 07/30/2018 91282BW97 5,000,000.00 US Treasury Note 99.309 2.30% 4,965,429.69 20,662.57 4,986,092.26 0.00
1.25%Due:03/31/2019
Purchase 08/20/2018 313385176 3,900,000.00 FHLB Discount Note 99.867 1.95% 3,894,800.00 0.00 3,894,800.00 0.00
1.92%Due:09/14/2018
Purchase 08/27/2018 912796PY9 5,000,000.00 US Treasury Bill 99.947 1.95% 4,N7,333.33 0.00 4,997,333.33 0.00
1.92%Due:09/06/2018
Purchase 0W2912018 313385176 7,000,000.00 FHLB Discount Note 99.914 1.96% 6,993,995.56 0.00 6,993,995.56 0.00
1.93%Due:09/14/2018
Purchase 08/30Y2018 313385F50 4,000,000.00 FHLB Discount Note 99.931 1.9et% 3,991,241.11 0.00 3,997,241.11 0.00
1.91%Due:09/12/2018
Purchase 09/14/2018 3133HK39 6,000,000.00 FHLB Discount Note 99,844 2.0 % 5,990,620.00 0.00 5,99Q620.00 0.00
2.01%Due:10/12/2018
Purchase 09/18/2018 91282SB33 7,500,000.00 US Treasury Note 99.711 2.29% 7.478,320.31 14.979.62 7,493.299.93 0.00
1.5%Due:01/31/2019
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 June 30, 2018 through September 30, 2018
Transaction S."I.ment Aco/Diap Interest
Type Date CUSIP Quartity Security Description Price Yield Am.mt PurlSold Total Amount Gain/Loss
Purchase 09119/2018 912796PP8 5,000,000.00 US Treasury Bill 99165 2.29% 4,958,270.17 0.00 4,958,270.17 0.00
2.242%Due:01/31/2019
Purchase 09/27/2018 91282SB33 10,000,000.00 US Treasury Note 99.719 2.32% 9,971,875.00 23,641.30 9,995,516.30 0.00
1.5%Due:01/31/2019
Subtotal 84,400,000.00 84,143,409.00 79,906.40 84,223,315.40 0.00
TOTAL ACQUISITIONS 84,400,000.00 84,143,408.00 79.906.40 84,223,315.40 0.00
DISPOSITIONS
Maturity 07MW2018 06406XG65 1,000,000.00 Bank of New York Mallon Discount CP 99384 1.000,000.00 0.00 1,000,000.00 0.00
2.24%Due:07AX/2018
Maturity 07/11/2018 313385ZE9 5,000,000.00 FHLB Dismount Note 100.000 5.000,000.00 0.00 5,000,000.00 0.00
1 8T%Due:07/11/2018
Maturity 07/13/2018 24422ESX8 1,500,000.00 John Deere Capital Corp Note 100.000 1.500,000.00 0.00 1,500.000.00 0.00
1.6%Due:07/13/2018
Maturity 0711312018 459515ZGO 5,000,000.00 IFC Discount Note 100.000 5.000,000.00 0.00 5,000,000.00 0.00
1.86%Due:0711312018
Maturity 0711312018 869MJRF14 2,000,000.00 Svenska Hantlelsbanken Yankee CD 100.000 2,000,000.00 31,329.17 2,031,329.17 0.00
1.545%Due:07/13Y2018
Maturity 0711512018 590188JF6 1,000,000.00 Bank of America Corp Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
6.5%Due:07/15/2018
Maturity 0711912018 313385Z149 5,000,000.00 FHLB Discount Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00
1 88%Dua:0711912018
Maturity 07/25/2018 313385ZU3 2,300,000.00 FHLB Discount Note 100.000 2,300,000.00 0.00 2,300,000.00 0.00
1.89%Due:07/2512018
Maturity 07/26/2018 912796PR4 30,000,000.00 US Treasury Bill 100.000 30,000,000.00 0.00 30,000,000.00 0.00
1.799% Due:07126/2018
Maturity 07/27/2018 313385M9 2,900,000.00 FHLB Discount Note 100.000 2,900,00D00 0.00 2,900,000.00 0.00
1.875%Due:07/27/2018
Maturity 07/31/2018 36960MGX5 1,500,000.00 General Electric Co Discount CP 99.351 1,500,000.00 0.00 1,500,000.00 0.00
2.29%Due:07/31/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 June 30, 2018 through September 30, 2018
Transaction S."I.ment Acq/Diap Interest
Type Date CUSIP Quantity Security Description Price Yield Amm.nt PurlSold Total Amount Gain/Loss
Maturity 07/31/2018 912828568 26.000,000.00 US Treasury Note 100.000 26.000,000.00 0.00 26,000,W0.00 0.00
0.75%Due:07/31/2018
Maturity OSM312018 313385A55 1,300,OW.W FHLB Discount Note 100.000 1,W0,000.00 0.00 1,300.000.00 0.00
1.9%Due:OW03/2018
Maturity OMW2018 02665KH67 1,500,OW.W American Honda Discount CP 99.337 1,W0,000.00 0.00 1,W0,000.00 0.00
2.21%Due:0810612018
Maturity 08X7/2018 40428HPU0 1,000,000.00 HSBC USA Inc Note 100.000 1.000,000.00 0.00 1,W0,000.00 0.00
2%Due:08/07/2018
Maturity 08/15/2018 097014AM6 700,000.00 Boeing Capital Corp Callable Note Cent 7115118 100.000 700,000.00 0.00 700.000.00 0.00
2.9%Due:08/15/2018
Maturity 0812212018 313385C87 5,000,000.00 FHLB Discount Note 100.000 5,000,000.00 0.00 5,000.000.00 0.00
1.89%Due:0812212018
Maturity 0812412018 313385D29 2.755,OW.W FHLB Discount Note 100.000 2,755,000.00 0.00 2,755,000.00 0.00
1.89%Due:0812412018
Maturity 0812412018 4581XOBRO 1,500,OW.W Inter-American Dev Bank Note 100.000 1,W0,000.00 0.00 1,WO,000.00 0.00
1.75%Dua:0812412018
Maturity 0812712018 313385D52 5,000,OW.W FHLB Discount Note 100.000 5,W0,000.00 0.00 5,000,000.00 0.00
1.9%Due:0812712018
Maturity 09/04/2018 45950KCA6 1,500,OW.W International Finance Corp Note 100.000 1,W0,000.00 0.00 1,W0,000.00 0.00
1.75%Due:09/0412018
Maturity 09/06/2018 912796PY9 5,000,OW.W US Treasury Bill 100.000 5,000,000.00 0.00 5,W0,000.00 0.00
1.92%Due:09/0612018
Maturity 091122018 313385F50 4,000,OW.W FHLB Discount Note 100.000 4,000,000.00 0.00 4,W0,000.00 0.00
1.91%Due:09/12/2018
Maturity 09/13/2018 912796NW W,000,000.00 US Treasury Bill 100.000 W,000,000.00 0.00 30,W0,000.00 0.00
1.859%Due:0911312018
Maturity 09/14/2018 313385F76 10,W0,000.00 FHLB Dismunt Note 100.000 10,9(10,000.00 0.00 10,900,000.00 0.00
1.925%Due:0911412018
Maturity 09/14/2018 89233HJE5 1,500,OW.00 Toyota Motor Credit Discount CP 99172 1,500,000.00 0.00 1,W0,000.00 0.00
2.33%Due:09/14/2018
Maturity 09/24/2018 21687BJ05 1,500,0W.W Rabobank Nederland NV NY Discount CP 98817 1,W0,000.00 0.00 1,W0,000.00 0.00
2.29%Due:09/24/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 June 30, 2018 through September 30, 2018
Transaction S."II Acq/Diap Interest
Type Date CUSIP Qu,mfity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Maturity 09/24/2018 40428HPJ5 619,000.00 HSBC USA Inc Nate 100.000 619,000.00 0.00 619,000.00 0.00
2.625%Due:0912412018
Maturity 09/27/2018 9127NQAO 5,000,000.00 US Treasury Bill 100.000 5,000,000.00 0.00 5,000,000.00 0.00
1.88%Due:09127I2018
Subtotal 161,974,000.00 161,974,000.00 31,329.17 162,005,329.17 0.00
TOTAL DISPOSITIONS 161,974,000.00 161,974,000.00 31,329.17 162,005,329.17 0.00
IJJJ � 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 2018-19 First Quarter Report
This Page Intentionally Left Blank
October 31, 2018
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended September 30, 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 September 30, 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 eleven debt issues.
Attachments
1. Graph - OCSD COP Rate History Report
Prepared by Finance,1 0/2 912 01 8,11:11 AM
OCSD COP RATE HISTORY REPORT
SEPTEMBER 2018
5.00
4.001,
w
3.00
2.00
1.00
0.00
DAB 3 § 3 9 a g 1 ! s 5
Benes 2000A F111 Benea 1111A Fw" —S--21110 Fl-1 —9e1ea 2011A File Ml-Fl- +4erea2012BFi-
5¢1es 2014B Fh¢d We$2015A FNW +sME8201M Flµy —BBd¢5201BB F.¢E 2011A FLLy
H1depAasdMMCommonWonthly and Quarterly Treasurer's Report\FV 18-1 MCOP Rate History Report FV 1&19
FY 2018-19 First Quarter Report
This Page Intentionally Left Blank
�y �
c gy
e e as
M HE yY�
ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.ocsd.com
09/30/18
1