PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.       7c 
STAFF BRIEFING 
Date of Meeting   February 25, 2014 
DATE:      February 5, 2014 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Craig J. Kerr, Treasury Manager 
SUBJECT:   2013 Annual Treasury and Investment Portfolio Report 
BACKGROUND 
The purpose of this presentation is to provide a status report on the treasury function as
well as an update on the 2013 investment results and discuss portfolio and treasury
management initiatives. This report is required by Commission Resolution 3476, passed
December 11, 2001, establishing the Port's in-houseTreasury.  Prior to the passage of
Resolution No. 3476, King County served as the Port's Treasurer. During 2013, the
Port's portfolio earned 0.69% against our benchmark, the Bank of America, Merrill
Lynch 3-year Treasury Agency Index, of 0.35%. The Port's portfolio consists of safe,
conservative investments that are primarily in Treasury notes and federal agency
securities. 
Port investment policy has a maximum 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 with 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 a 2.0 duration 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 73 basis points. 
ATTACHMENTS TO THIS BRIEFING 
PowerPoint Presentation 
Current Port Investment Policy, Resolution No. 3663 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 


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