walla walla county quarterly observations: ending march 31, 2015 market commentary market outlook...

Quarterly Report3/31/2015Account

Walla Walla County

￭￭￭￭

Quarter End Commentary ............................................................................................................................................................... 1 Account Summary ........................................................................................................................................................................... 2 Total Return .................................................................................................................................................................................... 3 Quarterly Net Performance ............................................................................................................................................................. 5 Gross Quarterly Performance ......................................................................................................................................................... 6 Transaction Summary ..................................................................................................................................................................... 7 Holdings Report .............................................................................................................................................................................. 8 GPAQrtlydisclaimer ....................................................................................................................................................................... 13 Notification of Fees - Invoice ......................................................................................................................................................... 14

http://www.gpafixedincome.com/

GPA QUARTERLY OBSERVATIONS: ENDING MARCH 31, 2015

Market Commentary Market Outlook

Market Yields: During the first quarter treasury yields were lowerwith a decline of 25 basis points in the 10 year note and a decline of13 basis points in the two year note. The two year note declined inyield from .67 to a quarter ending yield of .54. Five year notesdeclined 33 basis points from a yield of 1.65 to a 1.32. Yields in the3 and 6 month treasury bill were lower by just 2 basis points. Thetwo year to five year curve flattened from a spread of 98 basispoints to 78 basis points.FOMC: At the beginning of the quarter the market consensus wasfor a Fed Funds increase to commence in June. That target datewas extended to September with weaker data, but the Fed hasmade it clear that any increase would be based upon economicconditions.Employment: The unemployment rate fell slightly during thequarter to 5.5% which is the lowest level since 2008. Nonfarmpayrolls were strong during January and February with substantiallyweaker growth in March. Average hourly earnings ended thequarter with a YOY growth rate of 2.1%. The Fed will watch thisdata closely in the next few months as slow wage growth will mostlikely delay any increase in Fed Funds.GDP: Fourth quarter GDP was revised to 2.2% from 2.4%.Economic growth for 2015 is expected to increase to 2.9%.

Fed Funds:. The consensus call on Fed Funds is for the Fed toraise rates to .25 by September 2015 and by .50 by February 2016.We believe that the significant decline in the price of oil alongwith the beginning of quantitative easing in Europe will possiblydelay any rate hike until the end of the year. Inflation will mostlikely be very low during the first half of 2015 with little pressurefrom commodities, employment, or European growth.2 year: The 2 year treasury note is forecasted by over 80economists contributing to Bloomberg to trade at .79, 1.06, 1.30and 1.58 for the end of each of the next four quarters. We believethat you would need to see oil stabilize at 50 to 75 dollars alongwith some growth in European economic conditions for theseprojections to materialize.Portfolio Positioning: GPA is currently recommending thatportfolios stay neutral to their respective benchmark durations.We value the carry trade as we think the Fed may be slow to raiseFed Funds. We will continue to recommend credit when spreadsjustify additions as economic conditions should continue to bestrong. We are also suggesting that portfolios position theirmaturities for a flattening yield curve. We expect rates to risemodestly with the two year rising more than the five year note.

Quarterly Yield Change

06/30/14 9/30/14 12/30/14 03/31/15

3-month bill .02 .02 .04 .02

2- year note .46 .57 .66 .54

5 -year note 1.62 1.76 1.65 1.32

10- year note 2.53 2.49 2.17 1.92

Sources: Bloomberg

Economist’s Survey Projections for RatesEconomist’s Survey Projections

Q1-15 Q2-15 est

Q3-15 est

Q4-15 est

Fed Funds

.25 .30 .50 .75

2 Year .56 .79 1.06 1.30

10 year 1.92 2.17 2.36 2.53

Q1-15 Q2-15 Q3-15 Q4-15

Real GDP 1.4 3.05 3.00 2.90

CPI (YOY%) -.10 -.10 .2 1.04

Unemployment 5.57 5.40 5.30 5.20

1

Walla Walla County US Dollar 3/31/2015 logo.jpg Account Summary - SetFixed Income Allocation

Security Type Market Value % Assets

US Agency (USD) 36,729,456.36 50.9

Municipal (USD) 15,627,660.65 21.6

Pool Funds (USD) 7,001,240.79 9.7

Certificates of Deposit (USD) 1,000,000.00 1.4

US Treasury (USD) 1,006,797.00 1.4

Money Market Bank Deposits (USD) 10,823,265.44 15.0

Fixed Income Total 72,188,420.24 100.0

Par Value 72,053,681.13

Market Value 72,188,420.24

Amortized Book Value 72,169,003.05

Unrealized Gain/Loss 19,417.19

Estimated Annual Cash Flow 800,880.18

Fixed Income Totals

Book Yield 0.94

Maturity 1.79

Coupon 1.12

Moody Aa1

S&P AA

Weighted Averages

Government Portfolio Advisors

Walla Walla County

Account Summary3/31/2015

2

Walla Walla County Net of Accrued Fees | U 12/31/2014 - 3/31/2015 logo.jpg Total Return - Settled TrPortfolio Allocation

Industry Group Market Value % Assets Book Yield

US Treasury 1,006,797.00 1.4 0.7

US Agency Bullet 9,247,867.25 12.8 1.1

US Agency Callable 25,479,214.11 35.3 1.0

Bank Deposit 4,821,360.67 6.7 0.2

Certificate of Deposit 1,000,000.00 1.4 0.4

State Investment Pool 7,001,240.79 9.7 0.1

Money Market Fund 6,001,904.77 8.3 0.4

Muni GO 9,401,510.70 13.0 0.8

Muni Rev 918,164.05 1.3 1.5

Muni BABS 215,290.00 0.3 1.5

US Agency Step Up 2,002,375.00 2.8 1.4

Muni COPS 1,995,580.00 2.8 1.0

Total Return for PeriodSince 12/31/2014

Beginning Principal Value 71,107,405.97

Beginning Accrued Interest 122,996.38

Net Contributions/Withdrawals 715,469.83

Market Value Change 248,602.86

Interest Earnings 206,405.69

Ending Principal Value 72,187,328.44

Ending Accrued Interest 213,552.29

Net Total Return 453,008.55

Management Fees Paid By Client -2,000.00


Walla Walla County

Total Return ReportNet of Accrued Fees | US Dollar 12/31/2014 - 3/31/2015

3

Municipal Direct 3,097,115.90 4.3 3.9

Total 72,188,420.24 100.0 0.9


Walla Walla County

Total Return ReportNet of Accrued Fees | US Dollar 12/31/2014 - 3/31/2015

4

Walla Walla County Net of Allocated Fees | US 3/31/2015 logo.jpg Performanc

Time Weighted Return Inception (12/31/2014) to Date

Industry SectorMonth

To DateQuarterTo Date

YearTo Date

Latest1 Year

InceptionTo Date

Treasury 0.18 0.45 0.45 0.45

Agency 0.41 0.92 0.92 0.92

Municipal 0.27 0.67 0.67 0.67

Pool Fund 0.00 0.10 0.10 0.10

Money Market Bank Deposits 0.02 0.10 0.10 0.10

Bank Holdings 0.02 0.05 0.05 0.05

Cash

Account 0.28 0.64 0.64 0.64

Index

ML 0-3 Year Treasury Index 0.17 0.38 0.38 0.72 0.38

ML 0-1 Year Treasury 0.01 0.05 0.05 0.11 0.05

Performance History


Walla Walla County

Performance Net of FeesNet of Allocated Fees | US Dollar

3/31/2015

5

Walla Walla County Gross of Fees | US Dollar 3/31/2015 logo.jpg Performanc

Time Weighted Return Inception (12/31/2014) to Date

Industry SectorMonth

To DateQuarterTo Date

YearTo Date

Latest1 Year

InceptionTo Date

Treasury 0.18 0.46 0.46 0.46

Agency 0.41 0.92 0.92 0.92

Municipal 0.27 0.67 0.67 0.67

Pool Fund 0.01 0.10 0.10 0.10

Money Market Bank Deposits 0.02 0.11 0.11 0.11

Bank Holdings 0.02 0.06 0.06 0.06

Cash 0.00 0.00 0.00 0.00

Account 0.28 0.65 0.65 0.65

Index

ML 0-3 Year Treasury Index 0.17 0.38 0.38 0.72 0.38

ML 0-1 Year Treasury 0.01 0.05 0.05 0.11 0.05

Performance History


Walla Walla County

Performance Gross of FeesGross of Fees | US Dollar

3/31/2015

6

Walla Walla County

Transaction Summary1/1/2015 - 3/31/2015

PurchasesTrade Date Settle Date Quantity Symbol Security

Adj UnitCost

AdjustedTotal Cost

2/26/2015 2/26/2015 1,000,000 3134G6FL2 FEDERAL HOME LN MTG CORP 99.99 999,850.00

1.125% Due 02-26-19

3/20/2015 3/23/2015 785,000 3134G43Y2 FEDERAL HOME LN MTG CORP 99.83 783,626.25

0.700% Due 05-08-17

Total Purchases 1,783,476.25

MaturitiesTrade Date Settle Date Quantity Symbol Security

Adj UnitCost

AdjustedTotal Cost

Amort. orAccretion

UnitPrice Proceeds Gain/Loss

1/2/2015 1/2/2015 1,000,000 973498348 UMPQUA BANK 100.00 1,000,000.00

0.350% Due 01-02-15

2/25/2015 2/25/2015 560,000 3133ECG81 FEDERAL FARM CR BKS 100.05 560,274.28 -274.28 100.00 560,000.00 0.00

0.300% Due 02-25-15

Total Maturities 1,560,274.28 -274.28 560,000.00 0.00

Government Portfolio Advisors 7

Portfolio HoldingsWalla Walla County

March 31, 2015

Call Trade Amor Book Market Market Market Accrued Total Unrealized Pct. Dur Eff

Cusip Quantity Security Date Date Price Yield Price Yield Value Interest Value Gain/Loss Assets Mat Dur

US Treasury

912828RU6 1,000,000 UNITED STATES

TREAS NTS

04-30-14 100.30 0.69 100.6797 0.47 1,006,797.00 2,908.65 1,009,705.65 3,803.99 1.4 1.65 1.65

0.875% Due 11-30-16

US Agency Bullet

3135G0SB0 1,000,000 FEDERAL NATL MTG

ASSN

12-17-12 99.99 0.39 100.0592 0.29 1,000,592.00 1,041.67 1,001,633.67 688.31 1.4 0.72 0.72

0.375% Due 12-21-15

3135G0RT2 2,000,000 FEDERAL NATL MTG

ASSN

03-04-14 99.48 1.07 100.0062 0.87 2,000,124.00 4,909.72 2,005,033.72 10,580.34 2.8 2.68 2.69

0.875% Due 12-20-17

3134G5AP0 1,000,000 FEDERAL HOME LN

MTG CORP

06-26-14 100.00 1.20 100.6939 0.94 1,006,939.00 3,166.67 1,010,105.67 6,939.00 1.4 2.68 2.69

1.200% Due 12-26-17

3137EADN6 1,000,000 FEDERAL HOME LN

MTG CORP

06-11-14 98.72 1.22 99.8230 0.81 998,230.00 1,645.83 999,875.83 11,021.98 1.4 2.74 2.76

0.750% Due 01-12-18

31315PZZ5 250,000 FEDERAL AGRIC MTG

CORP

11-08-13 97.63 1.61 98.6001 1.26 246,500.25 117.64 246,617.89 2,436.14 0.3 2.89 2.90

0.770% Due 03-09-18

3135G0WJ8 2,000,000 FEDERAL NATL MTG

ASSN

05-16-13 99.65 0.99 99.7624 0.95 1,995,248.00 6,319.44 2,001,567.44 2,270.45 2.8 3.08 3.09

0.875% Due 05-21-18

3133ECRW6 2,000,000 FEDERAL FARM CR

BKS

06-11-13 99.95 1.39 100.0117 1.36 2,000,234.00 8,372.22 2,008,606.22 1,192.36 2.8 3.11 1.20

1.370% Due 06-11-18

9,250,000 1.09 0.94 9,247,867.25 25,573.19 9,273,440.44 35,128.57 12.8 2.66 2.25

US Agency Callable

3136G04M0 1,000,000 FEDERAL NATL MTG

ASSN

05-21-15 11-21-12 100.00 0.75 99.9502 0.78 999,502.00 2,708.33 1,002,210.33 -498.00 1.4 1.62 0.82

0.750% Due 11-21-16

3130A2CW4 1,000,000 FEDERAL HOME

LOAN BANKS

06-30-15 06-30-14 100.00 0.75 99.8950 0.81 998,950.00 1,875.00 1,000,825.00 -1,050.00 1.4 1.73 0.84

0.750% Due 12-30-16

3134G5NY7 1,000,000 FEDERAL HOME LN

MTG CORP

05-28-15 11-21-14 100.00 0.75 100.1049 0.69 1,001,049.00 2,562.50 1,003,611.50 1,091.48 1.4 1.89 0.81

0.750% Due 02-28-17

3134G5AJ4 1,000,000 FEDERAL HOME LN

MTG CORP

06-30-15 06-30-14 100.00 0.92 100.1335 0.85 1,001,335.00 0.00 1,001,335.00 1,335.00 1.4 1.98 0.72

0.920% Due 03-30-17

8


March 31, 2015



3134G43Y2 785,000 FEDERAL HOME LN

MTG CORP

05-08-15 03-20-15 99.83 0.78 99.8572 0.77 783,879.02 2,182.74 786,061.76 236.88 1.1 2.08 1.24

0.700% Due 05-08-17

3133EC5L4 2,000,000 FEDERAL FARM CR

BKS

04-15-15 12-05-12 99.95 0.79 99.9311 0.80 1,998,622.00 4,962.22 2,003,584.22 -312.49 2.8 2.15 1.24

0.770% Due 06-05-17

3133ECP24 2,000,000 FEDERAL FARM CR

BKS

04-15-15 05-09-13 99.97 0.71 99.8241 0.77 1,996,482.00 2,022.22 1,998,504.22 -2,964.09 2.8 2.33 1.63

0.700% Due 08-09-17

3130A1ZX9 1,000,000 FEDERAL HOME

LOAN BANKS

04-15-15 06-18-14 99.80 1.30 100.0084 0.85 1,000,084.00 1,108.33 1,001,192.33 2,084.00 1.4 0.04 0.68

1.050% Due 08-22-17

3134G5RB3 1,000,000 FEDERAL HOME

LOAN MTG CORP

05-28-15 11-21-14 100.00 1.00 100.1342 0.94 1,001,342.00 3,416.67 1,004,758.67 1,342.00 1.4 2.37 0.93

1.000% Due 08-28-17

3130A13M8 1,500,000 FEDERAL HOME

LOAN BANKS

06-20-15 03-20-14 99.95 1.31 100.1747 1.23 1,502,620.50 5,470.83 1,508,091.33 3,370.50 2.1 2.66 0.90

1.300% Due 12-20-17

313381LC7 1,000,000 FEDERAL HOME

LOAN BANKS

04-28-15 12-28-12 100.00 0.95 99.5534 1.11 995,534.00 2,454.17 997,988.17 -4,466.00 1.4 2.69 1.35

0.950% Due 12-28-17

3135G0WB5 2,000,000 FEDERAL NATL MTG

ASSN

04-18-15 04-18-13 100.00 1.20 99.7844 1.27 1,995,688.00 10,866.67 2,006,554.67 -4,312.00 2.8 2.97 1.10

1.200% Due 04-18-18

3135G0WN9 1,500,000 FEDERAL NATL MTG

ASSN

04-30-15 04-30-13 99.94 1.02 99.2795 1.24 1,489,192.50 6,250.00 1,495,442.50 -9,883.66 2.1 3.01 2.44

1.000% Due 04-30-18

3134G43L0 1,500,000 FEDERAL HOME LN

MTG CORP

05-07-15 05-07-13 100.00 1.10 99.3839 1.30 1,490,758.50 6,600.00 1,497,358.50 -9,241.50 2.1 3.03 1.56

1.100% Due 05-07-18

3135G0XG3 2,000,000 FEDERAL NATL MTG

ASSN

05-21-15 05-21-13 99.95 1.02 99.3955 1.20 1,987,910.00 7,222.22 1,995,132.22 -11,154.13 2.8 3.07 2.15

1.000% Due 05-21-18

3133836L0 2,000,000 FEDERAL HOME

LOAN BANKS

04-24-15 05-28-13 100.00 1.20 99.8328 1.25 1,996,656.00 8,466.67 2,005,122.67 -3,314.05 2.8 3.07 1.49

1.200% Due 05-24-18

3135G0XK4 2,000,000 FEDERAL NATL MTG

ASSN

05-25-15 05-30-13 99.94 1.07 98.8571 1.42 1,977,142.00 7,350.00 1,984,492.00 -21,595.32 2.7 3.08 2.28

1.050% Due 05-25-18

3134G5AF2 515,000 FEDERAL HOME LN

MTG CORP

04-09-15 07-09-14 100.00 2.00 100.0303 0.56 515,156.04 2,346.11 517,502.16 156.04 0.7 0.02 0.51

2.000% Due 07-09-19

9


March 31, 2015



3130A2F68 500,000 FEDERAL HOME

LOAN BANKS

04-09-15 07-09-14 100.00 2.00 100.0428 0.29 500,214.00 2,250.00 502,464.00 214.00 0.7 0.02 0.58

2.000% Due 07-09-19

313380PX9 247,059 FEDERAL HOME

LOAN BANKS

04-15-15 11-15-13 97.17 2.16 100.0156 1.64 247,097.54 45.02 247,142.56 7,018.37 0.3 4.31 2.00

1.640% Due 09-27-19

25,547,059 1.05 1.04 25,479,214.11 80,159.70 25,559,373.81 -51,942.97 35.3 2.40 1.38

Bank Deposit

SYS117600 1,320,000 Baker Boyer Bank 03-31-15 100.00 0.43 100.0000 0.43 1,320,000.00 0.00 1,320,000.00 0.00 1.8 0.07 0.01

0.100% Due 04-27-15

SYSUMPQ11 3,501,361 UMPQUA BANK MMF 02-28-15 100.00 0.16 100.0000 0.17 3,501,360.67 0.00 3,501,360.67 0.00 4.9 0.07 0.01

0.150% Due 04-27-15

4,821,361 0.23 0.24 4,821,360.67 0.00 4,821,360.67 0.00 6.7 0.07 0.01

Certificate of Deposit

973498389 1,000,000 UMPQUA BANK 06-23-14 100.00 0.40 100.0000 0.40 1,000,000.00 3,079.45 1,003,079.45 0.00 1.4 0.17 0.17

0.400% Due 06-01-15

State Investment Pool

WAPOOL 7,001,241 WASHINGTON LGIP 03-31-15 100.00 0.11 100.0000 0.11 7,001,240.79 0.00 7,001,240.79 0.00 9.7 0.07 0.07

0.110% Due 04-27-15

Money Market Fund

000000COL 6,001,905 COLUMBIA STATE

BANK

03-31-15 100.00 0.39 100.0000 0.39 6,001,904.77 0.00 6,001,904.77 0.00 8.3 0.07 0.07

0.350% Due 04-27-15

Muni GO

93974CLW8 1,000,000 WASHINGTON ST 06-03-13 100.94 0.48 100.9370 0.48 1,009,370.00 5,500.00 1,014,870.00 18.85 1.4 0.34 0.32

3.300% Due 08-01-15

181324PT5 2,000,000 CLARK CNTY WASH

SCH DIST NO 11

09-27-12 100.96 0.55 101.1410 0.28 2,022,820.00 13,333.33 2,036,153.33 3,586.47 2.8 0.66 0.65

2.000% Due 12-01-15

495044RA9 205,000 KING CNTY WASH

SCH DIST NO 401

04-19-13 101.38 1.67 100.0000 3.78 205,000.00 2,596.67 207,596.67 -2,838.77 0.3 0.65 0.04

3.800% Due 12-01-15

495116HQ1 750,000 KING CNTY WASH

SCH DIST NO 406

12-11-12 100.00 0.59 99.9870 0.61 749,902.50 1,477.50 751,380.00 -97.50 1.0 0.67 0.65

0.591% Due 12-01-15

10


March 31, 2015



720362BN1 1,000,000 PIERCE CNTY WASH

FIRE PROTN DI

12-09-13 102.36 0.45 102.4450 0.32 1,024,450.00 13,333.33 1,037,783.33 849.29 1.4 0.66 0.64

4.000% Due 12-01-15

764258SY6 250,000 RICHLAND WASH 06-06-13 99.93 0.76 100.0580 0.57 250,145.00 550.00 250,695.00 312.75 0.3 0.67 0.65

0.660% Due 12-01-15

921586BA0 250,000 VANCOUVER LIBR

CAP FACS AREA W

12-12-13 102.32 0.50 102.4710 0.29 256,177.50 3,333.33 259,510.83 365.91 0.4 0.66 0.64

4.000% Due 12-01-15

932185KD2 200,000 WALLA WALLA CNTY

WASH SCH DIST

07-31-12 102.31 0.62 102.5530 0.29 205,106.00 2,750.00 207,856.00 492.96 0.3 0.66 0.64

4.125% Due 12-01-15

93974BLS9 810,000 WASHINGTON ST 01-27-14 99.67 0.50 99.9150 0.13 809,311.50 0.00 809,311.50 2,009.53 1.1 0.67 0.65

0.000% Due 12-01-15

962525FW6 100,000 WHATCOM CNTY

WASH SCH DIST NO

07-29-13 100.86 0.70 100.9440 0.58 100,944.00 666.67 101,610.67 85.99 0.1 0.66 0.65

2.000% Due 12-01-15

932185KE0 250,000 WALLA WALLA CNTY

WASH SCH DIST

01-07-13 105.44 0.81 105.8830 0.57 264,707.50 3,437.50 268,145.00 1,117.12 0.4 1.61 1.59

4.125% Due 12-01-16

731418KV0 1,020,000 POLK MARION &

BENTON CNTYS ORE

02-13-13 100.00 1.23 100.8690 0.83 1,028,863.80 3,697.10 1,032,560.90 8,863.80 1.4 2.17 2.15

1.231% Due 06-15-17

64966E3Q8 1,000,000 NEW YORK N Y 10-22-13 107.59 1.45 108.0770 1.27 1,080,770.00 8,000.00 1,088,770.00 4,849.94 1.5 2.21 2.21

4.800% Due 08-01-17

747045MU3 390,000 PUYALLUP WASH 02-12-13 100.30 1.25 101.0110 0.98 393,942.90 1,777.10 395,720.00 2,764.86 0.5 2.61 2.60

1.367% Due 12-01-17

9,225,000 0.78 0.62 9,401,510.70 60,452.54 9,461,963.24 22,381.20 13.0 1.08 1.05

Muni Rev

795906JS6 425,000 SAMMAMISH

PLATEAU WASH WTR

& S

04-18-13 100.00 0.83 100.3370 0.63 426,432.25 1,175.83 427,608.08 1,432.25 0.6 1.65 1.64

0.830% Due 12-01-16

387883RK9 485,000 GRANT CNTY WASH

PUB UTIL DIST

09-25-13 100.00 2.01 101.3880 1.49 491,731.80 2,437.12 494,168.92 6,731.80 0.7 2.66 2.66

2.010% Due 01-01-18

910,000 1.46 1.09 918,164.05 3,612.96 921,777.01 8,164.05 1.3 2.19 2.19

11


March 31, 2015



Muni BABS

387883PC9 200,000 GRANT COUNTY WA

PUD BABS

10-08-14 107.65 1.50 107.6450 1.51 215,290.00 2,180.50 217,470.50 -18.45 0.3 2.58 2.58

4.361% Due 01-01-18

US Agency Step Up

3136G1GQ6 1,000,000 FEDERAL NATL MTG

ASSN

06-27-15 03-27-13 99.88 1.07 100.0312 1.20 1,000,312.00 83.33 1,000,395.33 1,462.00 1.4 2.93 1.16

1.000% Due 03-27-18

3134G6FL2 1,000,000 FEDERAL HOME LN

MTG CORP

08-26-15 02-26-15 99.98 1.63 100.2063 1.59 1,002,063.00 1,062.50 1,003,125.50 2,213.00 1.4 3.79 1.58

1.125% Due 02-26-19

2,000,000 1.35 1.39 2,002,375.00 1,145.83 2,003,520.83 3,675.00 2.8 3.36 1.37

Muni COPS

939720LJ5 2,000,000 WASHINGTON ST

CTFS PARTN

03-19-13 99.87 0.96 99.7790 1.00 1,995,580.00 4,500.00 2,000,080.00 -1,774.20 2.8 2.22 2.21

0.900% Due 07-01-17

Municipal Direct

FAIR20119 113,250 Walla Walla County 12-08-11 100.00 3.07 100.0000 3.04 113,249.61 868.34 114,117.95 0.00 0.2 1.61 1.00

3.067% Due 12-08-16

FAIR20127 117,663 Walla Walla County 04-30-12 100.00 3.24 100.0000 3.21 117,662.68 953.07 118,615.75 0.00 0.2 1.95 2.00

3.240% Due 04-30-17

WWCO1 1,311,957 Walla Walla County 10-01-09 100.00 4.00 100.0000 3.96 1,311,956.59 13,119.57 1,325,076.16 0.00 1.8 3.08 3.51

4.000% Due 10-01-18

HS12 1,554,247 Walla Walla County 12-30-10 100.00 3.86 100.0000 3.82 1,554,247.02 14,998.48 1,569,245.50 0.00 2.2 4.71 5.76

3.860% Due 12-30-20

3,097,116 3.87 3.83 3,097,115.90 29,939.46 3,127,055.36 0.00 4.3 3.80 4.49

TOTAL 72,053,681 0.94 0.89 72,188,420.24 213,552.29 72,401,972.52 19,417.19100.0 1.73 1.28

12

This report is for general informational purposes only and is not intended to provide specific advice or recommendations. Government Portfolio Advisors (GPA) is an investment advisor registered with the Securities and Exchange Commission and is required to maintain a written disclosure statement of our background and business experience. Questions About an Account: GPA's monthly report is intended to detail our investment advisory activity managed by GPA. In addition, at the request of the account, the report may include bank balances, LGIP balances and other funds that are held but not invested at the direction of GPA. The custodian bank maintains the control of assets and executes (ie. Settles) all investment transactions. The custodian statement is the official record of security and cash holdings and transactions. GPA recognizes that clients may use these reports to facilitate record keeping and that the custodian bank statement and the GPA report should be reconciled and differences resolved. Many custodians use a settlement date basis which may result in the need to reconcile due to a timing difference.

Account Control:GPA does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retain responsibility for their deposit funds to the custodian. Our clients retain responsibility for their internal accounting policies, implementing and enforcing internal controls and generating ledger entries or otherwise recording transactions.

Market Value:Generally, market prices in GPA's reports are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data or Bloomberg. Where prices are not available from generally recognized sources the securities are priced using a yield-based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated. Non-negotiable FDIC –insured bank certificates of deposit are priced at par. Although GPA believes the prices to be reliable, the values of the securities do not always represent the prices at which the securities could have been bought or sold.

Amortized Cost:The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premiums with respect to short term securities (those with less than one year to maturity at time of issuance) is amortized on a straightline basis. Such discount or premium with respect to longer term securities is amortized using the constant yield basis. Financial Situation:In order to better serve you, GPA should be promptly notified of any material change in your investment objective or financial situation.

Callable Securities:Securities subject to redemption prior to maturity may be redeemed in whole or in part before maturity, which could affect the yield represented. Certain call dates may not show up on the report if the call date has passed and it is continuously callable.

Duration:The duration listed on the reports is duration to maturity and duration to call. Effective duration is calculated on Bloomberg and imported into these reports and reflects the OAS duration which incorporates the probability of the bond being called. Effective duration is what GPA compares to the benchmark to reflect current market risk.

Benchmark Duration: The benchmark duration is the historical weighted average of the benchmark duration over monthly periods. GPA is reporting this number as a static amount period over period.

Portfolio:The securities in this portfolio are not guaranteed or otherwise protected by GPA, the FDIC (except for non-negotiable certificates of deposit) or any government agency. Investment in securities involves risks, including the possible loss of the amount invested.

Rating:Information provided for ratings is based upon a good faith inquiry of selected sources, but its accuracy and completeness cannot be guaranteed.


Disclaimer & Terms3/31/2015

13

2188 SW Park Place, Suite 100 Portland, OR 97205Phone: 503-248-9973 Fax: 971-266-8825

Date: 3/31/15

To: Mr. Gordon Heimbigner

Walla Walla County

315 West Main Street, 2nd Floor Room 204

Walla Walla, WA 99362

Subtotal

For Further Questions:

Whitney Maher

503-248-9973

[email protected]

$2,000.00

3/31/2015

Investment Advisory Services$2,000.00

Provided from 1/1/15 to 3/31/15

INVOICE

Payment Terms

Payment due within 30 days of receipt

Quarter Ending Description Amount

Thank you for your business!14

mailto:[email protected]

walla walla county quarterly observations: ending march 31, 2015 market commentary market outlook...

Documents