ITEM NO: _______7c_Supp_______ 
DATE OF 
MEETING: _____March 6, 2012___

Annual Treasury And Investment
Portfolio Update for 2011 
Commission Briefing 
Presented by Craig Kerr 
March 6, 2012

BACKGROUND 
Commission Resolution Approved Port Investment
Policy 
2.0 Target Duration Plus Or Minus 50 Basis Points 
Do Not Forecast Rates; Balance RETURN And
RISK Over Cycles 
This Strategy Outperforms The Market When Rates Are
Falling And Underperforms When Rates Are Rising 
Benchmark  Bank of America Merrill Lynch
Treasury/Agency 3 Year Index 
2

PORTFOLIO COMPOSITION 
12/31/2011 
"HIGH GRADE"
MORTGAGEBACKED
SECURITIES 
1% 
REPURCHASE
AGREEMENTS 
25% 
TREASURY
NOTES 
23% 





FEDERAL
AGENCIES 
51% 


3

INTEREST RATE TRENDS 
For 2011, Short And Medium Term Rates Fell Throughout
the Year. 
The Federal Reserve Left Short Term Rates at 2010 Levels
Throughout 2011 [0.25%] 
Staff Monitors Market Conditions; but, Does Not Time the
Market. 
Short and Medium Term Rates Are Expected to Stay
Within a Narrow Trading Range for 2012. 

4

Source: Bloomberg 




5

Source: Bloomberg 

6

2011 YIELD COMPARISON 
Benchmark    Port's Pool 
Q1-2011      0.77%       1.62% 
Q2-2011      0.50%       2.56% 
Q3-2011      0.34%       1.32% 
Q4-2011      0.31%       1.20% 
ANNUAL    0.48%      1.67% 

7

PORTFOLIO EARNINGS 2007 2011 

2011
1.67%     $15,069,955 

2010
2.17%     $19,376,723 

Year 
2009
2.76%     $21,517,877 

2008
4.04%     $30,396,932 

2007
4.78%   $39,142,329 

Interest Earnings - % Yield and $ 


8

YIELD HISTORY 
Year        Benchmark    Port's Pool 
2002 - 2006    3.13%        3.69% 
2007       4.33%        4.78% 
2008       2.01%        4.04% 
2009       1.12%        2.76% 
2010       0.72%        2.17% 
2011       0.48%        1.67% 

Ten Years   2.43%        3.39% 
9

YIELD HISTORY 
Benchmark Yield     Port's Yield
5.4%
5.00%
4.78%
4.33%
4.4%      4.45%
4.07%
4.08%                              4.04%
3.72%
3.57%
3.4%

2.50%          2.50%                                 2.76%
2.64%
2.4%
2.01%
2.17%
1.58%
1.67%
1.4%                                                  1.12%
0.72%
0.48%
0.4%
2002    2003    2004    2005    2006    2007    2008    2009    2010    2011

10

Port's Investment Portfolio Size
Fluctuates 
Port's Investment Portfolio 12/31/2011 Was
$879 Million 
Over The Past 5 Years, The Size Has
Ranged From $639 Million to $976 Million 
Size Fluctuations Are Mostly Tied To
Capital Spending: 
Capital Project Spending Reduces The Portfolio
Size 
Bond Issues To Fund Projects Increase The
Portfolio 
11

Investment Pool Participating Funds 



Examples 
Minimum Operating Fund Balance: General & Airport Development = 9
months O&M expense 
Operating Funds Available for Capital: General, Airport, Tax Levy funds
programmed to be spent over the next few years. 
Bond Funds: Capital projects 
Reserves & Security: Bond reserves, customer lease security 
Special Use (primarily for capital projects): Passenger & Customer Facility
Charges, Transportation & Infrastructure