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QUARTERS INVESTMENT DECISIONS (excluding LAIF and money market funds): Purchases: Issuer Par Value Maturity Coupon(%) Yield(%) Date Microsoft Corp 1,000,000 11/03/20 2.000 2.475 Federal Farm Credit Bank 2,000,000 11/22/21 2.740 2.740 Federal Farm Credit Bank 1,500,000 02/28/22 2.800 2.800 Microsoft Corp 1,250,000 11/03/20 2.000 2.530 Maturities: Maturity Issuer Par Value Date Coupon(%) Yield(%) Federal Farm Credit Bank 1,000,000 03/01/18 1.050 1.090 Federal Farm Credit Bank 2,000,000 03/06/18 1.000 0.985 Callable (matured) Bonds: Issuer Par Value Call Date Coupon(%) Yield(%) Freddie Mac 2,000,000 01/22/18 0.950 0.995 Freddie Mac 2,000,000 01/22/18 1.000 1.070 CURRENT INVESTMENT STRATEGY: Staff continues to invest in a mix of fixed income securities as excess cash is available while continuing to match maturities with future cash needs. The Federal reserve has continuously been increasing interest rates and the indications are that we could see a few more rate increases coming. We have concentrated on purchasing callable securities over the last year which has paid off as they are now behaving as bullets and providing a higher yield to the portfolio. We are deliberately not going too long on the maturity curve due to the current rate environment, in order to provide additional income and structure to the portfolio. Additionally, staff is balancing the portfolio's credit exposure in order to pick up incremental yields 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.