PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA 
Item No.:         7b 
Date of Meeting:     March 1, 2011 
DATE:    February 11, 2011 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Craig J. Kerr, Treasury Manager 
SUBJECT:  2010 Annual Treasury and Investment Portfolio Report 

BACKGROUND: 
The purpose of this presentation is to provide a status report of the 2010 investment results and
discuss portfolio initiatives. During 2010 the portfolio earned 2.17% against our benchmark, the
Bank of America, Merrill Lynch 3-year Treasury Agency Index, of 0.72%. The Port's portfolio
consists of safe, conservative investments that are primarily invested in Treasury notes and
federal agency securities. 
Port investment policy has a maturity restriction of 10 years as well as established diversification
limits for all types of securities the Port is allowed to buy under existing State statutes. In
addition, the investment policy sets out a strategy standard for a 2.0 target duration plus or minus
50 basis points. Duration is a proxy for the average life of the portfolio security holdings, with
2.0 translating into an average portfolio life of approximately 27 months. 
Since the Port became its own treasurer in 2002 the investment performance, over time, has
exceeded the benchmark by 93 basis points. 
ATTACHMENTS: 
Port Investment Policy-Resolution No. 3589 with Exhibit A 
PowerPoint Presentation