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QUARTERS INVESTMENT DECISIONS (excluding LAIF and money market funds): Purchases: Issuer Buy Value Maturity Coupon(%) Yield(%) Date Fremont Bank 246,228 10/21/19 0.595 0.595 Heritage Bank of Commerce 246,228 10/21/19 0.595 0.595 Federal Farm Credit Bank 1,993,462 12/06/21 1.930 2.135 Federal Farm Credit Bank 2,000,000 10/05/21 2.000 2.233 Federal Farm Credit Bank 1,996,896 11/15/21 2.090 2.220 Federal Farm Credit Bank 1,994,742 11/15/21 2.090 2.220 US Treasury 1,998,952 07/31/20 1.625 1.931 US Treasury 1,980,996 08/31/20 1.375 1.940 Federal National Mortgage Assn 1,993,344 11/24/20 1.900 2.084 Federal Farm Credit Bank 2,002,642 06/11/21 2.125 2.069 Apple Inc. 1,995,783 05/11/22 2.300 2.468 Maturities: Maturity Issuer Par Value Date Coupon(%) Yield(%) Fremont Bank 245,000 10/21/17 0.50 0.50 Heritage Bank of Commerce 245,000 10/21/17 0.50 0.50 Capital One Bank 245,000 10/30/17 0.50 0.50 Federal Home Loan Bank 1,000,000 10/20/17 1.230 0.835 FREDDIE MAC 2,000,000 10/27/17 0.720 0.720 Federal Home Loan Bank 2,000,000 11/17/17 0.595 0.595 Federal Home Loan Bank 2,000,000 12/08/17 1.125 0.860 Federal Farm Credit Bank 2,000,000 12/26/17 0.900 0.921 Called Bonds: Issuer Par Value Call Date Coupon(%) Yield(%) Due to the current interest environment no bonds were called. CURRENT INVESTMENT STRATEGY: Staff intends to invest in a mix of fixed income securities as excess cash is available while continuing to match maturities with future cash needs. Staff have begun to look closely at the yield curve and strategies to further enhance returns as well as the structure of the portfolio. The markets have been dominated by inflation worries causing Bond durations to dictate market prices, as our current strategy revolves around holding bonds to maturity staff is aggressively looking at bonds priced cheaper due to duration risk, thus enhancing yields. Additionally, staff is cautiously monitoring the portfolio's credit exposure and mix of corporate debt while complying with the City's investment policy's mandate of safety, liquidity, and yield. This strategy is expected to continue throughout FY 2017-18 while paying close attention to the market developments in general.