Comptroller’sInvestment ReportFiscal 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 2014 FY 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

Benchmark FY 2014 Variance FY 2013 Variance

Portfolio 0.68% 0.62%

3-Month Treasury 0.04% 0.64% 0.06% 0.56%

6-Month Treasury 0.07% 0.61% 0.10% 0.52%

ML 0-1 Treasury Index 0.11% 0.57% 0.13% 0.49%

1-Year Treasury 0.11% 0.57% 0.14% 0.48%

2-Year Treasury 0.40% 0.28% 0.29% 0.33%

Effective Federal Funds 0.09% 0.59% 0.13% 0.49%

Committee Benchmark 0.30% 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-portfolioAverage Book

Value EarningsRate of Return

Current Operating $ 644,339,220 $ 722,181 0.11%

Intermediate Operating 195,418,421 1,210,914 0.62%

Noncurrent Operating 478,528,689 7,397,179 1.55%

Debt Service Reserve 76,773,528 99,159 0.13%

Total $1,395,059,858 $9,429,433 0.68%

Roll down the yield curve trades added $1.8 million in capital gains to earnings and 13 basis points to the rate of return.

FLIGHT TO QUALITY SINCE ‘07

FY 2014 ANNUAL INVESTMENT REPORT

The 2015 effective rate of return?

Interest Earned $9.4 million

Effective Rate of Return 0.68%

REPORT ONLINE

FY 2014 ANNUAL INVESTMENT REPORT

WWW.OCCOMPT.COM