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Maturities (continues): Maturity Coupon Yield Issuer Par Value Date (%) (%) Federal National Mortgage Assn. 1,500,000 3/13/2019 1.38 1.33 Freddie Mac 2,000,000 3/22/2019 1.25 1.25 Freddie Mac 2,000,000 3/29/2019 1.27 1.27 Total Maturities 15,500,000 Callable (matured) Bonds: Issuer Par Value Called Date Coupon (%) Yield (%j Federal Home Loan Bank 2,000,000 3/18/2019 2.95 2.95 Federal Farm Credit Bank 2,000,000 3/26/2019 3.35 3.35 Federal Farm Credit Bank 1,500,000 3/27/2019 2.80 2.80 Federal Home Loan Bank 2,000,000 3/28/2019 3.00 3.00 Total Maturities 7,500,000 CURRENT INVESTMENT STRATEGY: The effective rate of return for the recent month on the portfolio rose to 2.04% from 1.87% reported for the quarter ended December 31, 2018 due to a mix of investment strategy. Staff faces with the recent Federal Reserve policy changes to end its tightening programs by stop raising rates and also stop shrinking the Fed balance sheet. The policy change signals that the economy would continue to weaken in the near future and staff expects one or two rate cuts within this calendar year. Staff continues to invest in a longer term securities to secure the interest rate and matches maturities with future cash needs. This strategy will eventually increase the average days to maturity to a greater than 532 days as of March 31, 2019 to capitalize the rate cuts. Additionally, staff is balancing the portfolio's credit exposure 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 be continuously monitored during FY 2018-19.