PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7d 
STAFF BRIEFING 
Date of Meeting     March 8, 2016 
DATE:    February 16, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Diane Campbell, Treasury Manager 
SUBJECT:  2015 Annual Investment Portfolio Report and Treasury Update 
SYNOPSIS 
The purpose of this memo and report is to provide the annual investment update of the Port's
investment portfolio, as required by the Port's Statement of Investment Policy. 
SUMMARY OF INVESTMENT PORTFOLIO EARNINGS  Long term out-performance: 
Since the Port became its own Treasurer in 2001, the long term investment performance has
exceeded the benchmark (the Bank of America, Merrill Lynch 1-3-year Treasury Agency Index) 
by 80 basis points, and during 2015, the Port's portfolio earned 21 basis points over the
benchmark:
Year(s):        Port         Benchmark     Over/under performance 
2015        0.94%          0.73%            +0.21% 
2002 to 2015      2.67%          1.87%             +0.80% 
Under certain market conditions, the Port may underperform the benchmark. The Port's
investment portfolio includes funds for operations, capital investments and reserves. 
SELECT SUMMARY OF FIXED INCOME INVESTMENT OUTLOOK  Rising interest
rate environment: 
The Federal Reserve commenced and is on a course for increasing interest rates, of which the
level and timing are unfolding. Interest rates were higher at the end of 2015 compared to the
previous year end. The Port's portfolio may underperform the benchmark in a rising interest rate
environment. 
SELECT INVESTMENT POLICY HIGHLIGHTS: 
The Port's CFO is the appointed Treasurer, and is responsible for managing the Port's
investment program. The day to day duties and responsibilities may be delegated.  Authorized
investments are made in accordance with and subject to restrictions of the Revised Code of
Washington (RCW) 36.29.020. The Port's Statement of Investment Policy further supplements
and supports the Code. The emphasis is on preservation of principal and the primary investment
objectives, in order of priority are: safety, liquidity and yield. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 16, 2016 
Page 2 of 2 

BACKGROUND 
The Port established its in-house Treasury pursuant to the Port's Commission Resolution No.
3476, adopted on December 11, 2001. The resolution appointed the Port's Chief Financial
Officer as the Port's Treasurer. Prior to the passage of this resolution King County served as the
Port's Treasurer. Subsequently, Resolution No. 3663, adopted as of June 2002, authorized the
implementation of the Statement of Investment Policy, guiding how the Treasurer will invest
Port funds, much of which is dictated by State of Washington laws. 
Authorized investments are made in accordance with and subject to restrictions of the Revised
Code of Washington (RCW) 36.29.020, and the portfolio primarily consists of conservative
investments, typically U.S. Government Treasuries and Agencies bills, notes and bonds. To
meet the Port's investment objectives, the investment policy includes additional risk controls that
impose further restrictions on the types of securities permitted under statute. These include
limiting the maturity date of securities purchased to be no more than 10 years from the settlement
date, and a total portfolio target (modified) duration of 2.0 years, plus or minus  year. Further
details on permitted investments are in the attached Statement of Investment Policy. 
ATTACHMENTS TO THIS BRIEFING 
Annual Investment Report for year-end 2015 
Current Port Statement of Investment Policy 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 24, 2015 annual briefing for year-end 2014.