Comptroller’s Investment Report Fiscal Year 2014

INVESTMENT OBJECTIVES  Safety  Liquidity  Yield

AGENDA  Highlights  Benchmarks  Portfolio & Fed Funds Rate  Treasury Yield Curves  Economic Conditions  Strategy  Sub-portfolios  Composition by Sub-portfolio  Return by Sub-portfolio  Portfolio Composition  Flight to Quality Since ‘07

HIGHLIGHTS FY 2014FY 2013 Earnings$9,429,390$8,589,967 Effective Rate of Return 0.68%0.62% Average Daily Balance $1,395,059,858$1,390,495,017

BENCHMARKS BenchmarkFY 2014VarianceFY 2013Variance Portfolio0.68%0.62% 3-Month Treasury0.04%0.64%0.06%0.56% 6-Month Treasury0.07%0.61%0.10%0.52% ML 0-1 Treasury Index0.11%0.57%0.13%0.49% 1-Year Treasury0.11%0.57%0.14%0.48% 2-Year Treasury0.40%0.28%0.29%0.33% Effective Federal Funds0.09%0.59%0.13%0.49% Committee Benchmark0.30%0.38%0.21%0.41%

PORTFOLIO & FED RATES

TREASURY YIELD CURVES

ECONOMIC CONDITIONS  Improving labor market  Moderate GDP growth  Modest inflation  Strong U.S. dollar  Plunging oil prices  US QE tapering complete  QE in Japan and Europe  Geopolitical risk

STRATEGY  Approximately 90% of portfolio in Treasuries and money market mutual funds  Match maturities to cash flow  Maximize yield:  Longer-term investments  Roll down the yield curve  Agencies and CDs

SUB-PORTFOLIOS  Current Operating  Maximum maturity of 13 months  All authorized investment types  Intermediate Operating  3-year monthly ladder - Treasuries  Noncurrent Operating  5-year monthly ladder - Treasuries  Debt Service Reserve  Bond covenants  Maturities less than one year  Treasuries and money markets

COMPOSITION BY SUB-PORTFOLIO The Noncurrent and Intermediate sub-portfolios represented 48% of investments…but generated 91% of returns.

RETURN BY SUB-PORTFOLIO FISCAL YEAR 2014 Sub-portfolio Average Book ValueEarnings Rate of Return Current Operating$ 644,339,220$ 722, % Intermediate Operating195,418,4211,210, % Noncurrent Operating478,528,6897,397, % Debt Service Reserve76,773,52899, % Total$1,395,059,858$9,429, % Roll down the yield curve trades added $1.8 million in capital gains to earnings and 13 basis points to the rate of return.

PORTFOLIO COMPOSITION

FLIGHT TO QUALITY SINCE ‘07

FY 2014 ANNUAL INVESTMENT REPORT The 2015 effective rate of return? Interest Earned$9.4 million Effective Rate of Return0.68%

REPORT ONLINE FY 2014 ANNUAL INVESTMENT REPORT