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THE CITY OF pLEASANTON© CITY OF PLEASANTON INVESTMENT ACTIVITY SUMMARY AND ANALYSIS AS OF MARCH 31, 2019 SUMMARY: Primary City Managed Investment Portfolio The City of Pleasanton investment portfolio increased by $8,810,678 from the General investment portfolio during the third quarter of FY 2018-19. The General portfolio increased from $189,769,079 on December 31, 2018 to $198,579,757 on March 31, 2019 reflecting a slow capital spending on many outstanding capital improvement projects. For the quarter ending the effective rate of return on the portfolio was 2.04%, an increase from 1.87% reported for the quarter ended December 31, 2018. The average days to maturity (ADM) decreased from 582 days on December 31, 2018 to 532 days on March 31, 2019. As described in this report, the City's investment in the Local Agency Investment Fund (LAIF) increased to $39 million from $23 million mainly due to take an advantage of the inverted and negative slope at the front of the coupon curve by investing with short-term instruments. LAIF is a short-term investment option available to local agencies in California administered by the State Treasurer's Office. The quarterly LAIF interest rate was 2.44% with ADM of 179 days. During the quarter approximately $23 million in securities matured or called and $16 million of these were reinvested into significantly higher yielding investments as the yields demonstrated a higher level of volatility which we used to our advantage by investing when bond prices dropped. The yields on the newly added investments ranged from 2.48% to 3.35%. As of March 31, 2019 approximately 60.72% of the total portfolio consisted of U.S Treasuries and agency securities, while the LAIF investment was 19.64% of the portfolio. • Fair Market Value of total portfolio - $198,686,685 • Effective rate of return — 2.04% • Weighted average days to maturity — 532 days • Fiscal year-to-date net interest earnings — $2,558,063