Invesco Fixed Income - Granicus

City of Sarasota Employee Pension PlanInvesco Fixed Income

Intermediate Core Fixed Income

July 2018

CONFIDENTIALITY NOTICE: All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. This publication may contain confidential and proprietary information of Invesco Advisers, Inc. and/or Invesco Ltd. Circulation, disclosure, or dissemination of all or any part of this material to any unauthorized persons is prohibited.

Item No. 8.1.

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Biography

Marvin E. Flewellen, CFA®

Head of IFI Client ManagementMarvin Flewellen is the Head of Client Management and Senior Client Portfolio Manager with Invesco Fixed

Income (IFI). In this role, he is responsible for leading the client engagement platform across public markets

for fixed income. He is also responsible for communicating the fixed income investment process and strategy

to prospective clients and consultants in key market segments.

Mr. Flewellen joined Invesco Fixed Income in 2003. He began his investment career in 1987, working as both

a fixed income trader and portfolio manager at Northern Trust Bank. He also held responsibilities in corporate

and municipal credit research. In 1994, Mr. Flewellen joined Duff & Phelps Investment Management, where

he was responsible for setting and implementing investment strategies within several product groups. He

also had trading responsibilities for specific sectors across the entire fixed income platform. Prior to joining

Invesco, Mr. Flewellen was the senior product manager for Zurich Scudder Investments, where he led the

fixed income business management, product development and external communication across the

institutional market.

Mr. Flewellen earned a BA degree in computational mathematics from DePauw University. He also earned a

MBA with a specialization in financial management from The University of Chicago Booth. He holds the

Chartered Financial Analyst (CFA) designation. Mr. Flewellen currently is a member of the board of trustees

of DePauw University and is the past chair of the investment committee.

FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC2

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Biography

Dane Hoard, CAIA®

Associate Client ManagerDane Hoard is an Associate Client Manager on Invesco Fixed Income’s (“IFI”) Client Management/Client

Portfolio Management team. In this role, he supports IFI by delivering the investment experience primarily for

institutional clients, a scope of work which includes facilitating communications and managing client-driven

deliverables. The Client team primarily focuses on servicing separate account clients, acting as a principal

point of contact beginning with the onboarding process and extending into all forms of business thereafter.

Workflow and other initiatives include coordinating the production and presentation of investment results and

market views, and streamlining IFI’s deliverables and processes for a consistent client-experience across the

IFI platform.

Mr. Hoard joined Invesco in 2018, bringing 5 years of institutional investment experience. Previously, he was

a Consultant for Aon Hewitt Investment Consulting, Inc., advising institutional clients including corporate

pension, 401(k), a variety of other plans in the retirement space. He began his career as an Investment

Analyst at Aon Hewitt (formerly Hewitt EnnisKnupp).

Mr. Hoard earned a BBA degree from Georgia Southern University, majoring in Finance and minoring in

Business Management. He earned the Chartered Alternative Investment Analyst (CAIA) designation in 2017

and is a member of CAIA Association’s Atlanta chapter. Additionally, he has also completed level 1 of the

Chartered Financial Analyst (CFA) program.


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Table of contents

Portfolio Overview

Market Overview

Firm Overview & Investment Process

Appendix


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Portfolio Overview

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City of Sarasota Employee Pension Plan

Portfolio Summary

Inception Date: 4/1/1994

Assets Under Management: $28,072,266

Benchmark: Bloomberg Barclays Intermediate US Aggregate Index

Investment Guidelines:

▪ Portfolio fully invested in a separate account

▪ Investment grade ratings (AAA/Aaa to A/A3); No securities purchased below ‘A/A3’ rated

▪ Broad sector diversification (primary):

Treasuries Agencies Corporates

Mortgage-Backeds (MBS) Asset-Backeds(ABS) Commercial Mortgage-Backeds(CMBS)

▪ Interest rate range (duration) +/- 25% versus benchmark

As of 6/30/2018.

Source: Invesco.


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Market Value Reconciliation

As of 6/30/2018.

Source: Invesco.


Quarter-to-Date Year-to-Date 1 Year

Beginning Market Value $28,076,173 $28,400,931 $28,214,323

Contributions $0 $0 $0

Distributions $0 $0 $13,080

Expenses $15,825 $31,807 $50,604

Investment Change ($19,732) ($360,471) ($205,741)

Ending Market Value $28,072,266 $28,072,266 $28,072,266

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Trailing Performance as of June 30, 2018

0.03

-1.05

-0.29

1.34

1.83

3.38

5.15

0.01

-1.15

-0.47

1.16

1.64

3.19

4.95

0.09

-0.97

-0.32

1.27

1.83

3.29

4.88

0.07

-0.82-0.61

0.94

1.37

2.78

4.64

-2

0

2

4

6

3 Months YTD 1 Year 3 Year 5 Year 10 Year Since Inception

Retu

rns %

Sarasota Employee Pension Plan (Gross) Sarasota Employee Pension Plan (Net)

Barclays Intermediate Agg. Barclays Intermediate Agg. (A- or Better)

Inception date: April 1, 1994

Source: Invesco. As of 6/30/2018. * - Benchmark changed 5/31/2002 from Bloomberg Barclays (formerly Lehman) Intermediate Government/Credit Index to Bloomberg

Barclays (formerly Lehman) Intermediate Aggregate Index. Past performance is not indicative of future results.


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Trailing Performance as of June 30, 2018


Source: Invesco. As of 6/30/2018. * - Benchmark changed 5/31/2002 from Bloomberg Barclays (formerly Lehman) Intermediate Government/Credit Index to Bloomberg

Barclays (formerly Lehman) Intermediate Aggregate Index. Past performance is not indicative of future results.

FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC

Performance Summary:

▪ Returns are negative year-to-date and only slightly below benchmark, despite notable performance in higher quality credits,

which was the best performing segment within investment grade as investors sought safe-haven assets.

▪ Trailing year returns have been negatively impacted by sharp spikes in interest rates over the past several years, and more

recently due to market weakness in 2018 given high levels of volatility and geopolitical risks fostering a risk-off sentiment.

▪ Long-term results have consistently returned near the benchmark, while maintaining portfolio guidelines which prohibit

BBB/Baa exposures. The overweight to A-rated credits and security selection have mostly offset the higher credit quality

restrictions over time, and is evident when comparing against a benchmark with similar constraints.

9

Attribution Summary - YTD 2018

Positives: Negatives:

Overweight to ABS Overweight to Corporate Credit

Security selection in the utilities sector, agency mortgages, and

ABS

Overweight allocations in financials and technology, media &

telecom (“TMT”)

Avoidance of BBB-rated securities Overweight to A-rated securities

Underweight to 3-5 Year maturities Overweight to 5-7 Year maturities

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Annual Performance

-4

-2

0

2

4

6

8

10

12

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Gro

ss R

etu

rns %

Sarasota Employees Barclays Intermediate Agg Barclays Intermediate Agg (A- of Better)


As of 12/31/2017. * - Benchmark changed 5/31/2002 from Bloomberg Barclays (formerly Lehman) Intermediate Government/Credit Index to Bloomberg

Barclays (formerly Lehman) Intermediate Aggregate Index. Source: Invesco. Performance is gross of fees. Past performance is not indicative of future

results.


▪ Consistent performance over the past 18 years versus the broad index.

▪ Outperforms index with similar restrictions over the majority of periods shown.

10

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Characteristics

Sectors Sarasota

(as of 06/17)

Sarasota

(as of 12/17)

Sarasota

(as of 06/18)

Bloomberg Barclays

Intermediate Agg.

(as of 06/18)

Duration (yrs.) 4.20 4.16 4.32 4.28

Yield to Maturity 2.25 2.46 3.13 3.17

Average Quality Aa1 Aa1 Aa1 Aa1

# of securities 145 158 152 7,807

Sources: Invesco, Bloomberg Barclays, as of 6/30/2018. Due to rounding the percentages in the chart might not equal 100%. Benchmark: Bloomberg Barclays Intermediate U.S.

Aggregate Index. The characteristics are subject to change. This portfolio is actively managed. Average credit quality and quality distribution chart are internal measurements

calculated by taking the highest rating of the 3 major rating agencies (S&P, Moody’s & Fitch) at a security level. It is then changed into a numerical value, asset weighted and then

calculated to be shown at the portfolio level in Moody’s format. Non-rated securities are not included in the average quality calculation. Information on non-rated securities is

provided in the Quality Distribution chart, if applicable. Average Credit Quality calculations may vary across the industry and should not be the only factor in analyzing a portfolio.


▪ Neutral duration posture – Shorter rates are moving higher, but moderate inflation risks favor longer maturities.

▪ YTM – negatively affected by the higher credit rating quality of the mandate. No purchases of securities rated below A-.

▪ Average Quality – consistent with index, but the mandate maintains a higher credit rating distribution.

11

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Sector distribution Relative Positions

Sectors Sarasota

(as of 06/17)

Sarasota

(as of 12/17)

Sarasota

(as of 06/18)

Bloomberg Barclays

Intermediate Agg.

(as of 06/18)

Treasury 28.85 25.74 30.39 37.10

Agency 6.70 4.23 2.31 3.30

ABS 4.95 6.03 7.72 0.65

MBS 25.71 22.70 23.02 33.48

CMBS 5.29 5.74 4.56 2.23

Credit 27.65 33.60 30.82 20.35

Cash/ST 0.87 1.47 0.70 0.00

Pending Settlements 0.00 0.00 0.00 0.00

Other 0.00 0.50 0.48 2.88

As of 6/30/2018.

Source: Invesco; Bloomberg Barclays.


▪ Treasury underweight enhances yield and relative return opportunities.

▪ Corporate credit overweight persists given supportive fundamentals. Positive long-term outlook on technicals despite near-term

weakness.

▪ MBS sector underweight driven by expectations for weakening technicals as the Fed tapers reinvestments.

12

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Quality distribution (modified)


Ratings Sarasota

(as of 06/17)

Sarasota

(as of 12/17)

Sarasota

(as of 06/18)

Bloomberg Barclays

Intermediate Agg.

(as of 06/18)

Aaa 71.64 65.57 69.12 73.97

Aa 6.42 4.669 4.15 6.35

A 21.06 25.50 24.10 9.06

Baa 0.00 2.77 1.94 10.45

Cash 0.87 1.47 0.70 0.00

NR 0.00 0.00 0.00 0.14

Pending Settlements 0.00 0.00 0.00 0.00

Relative Positions

As of 6/30/2018.

Source: Invesco; Bloomberg Barclays. Rating requirement is that the issuer must have at least 1 rating in the top three rating classifications.

▪ The overweight to single A rated securities due to investment guideline restrictions

13

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Market Overview

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Market Overview


Sources: Bloomberg, as of June 30, 2018

Past performance is not indicative of future results.

US Treasury Yields (%)

Fed Funds 3 Mo 6 Mo 2 Yr 5 Yr 10 Yr 30 Yr

6/30/2018 1.75 – 2.00 1.93 2.11 2.52 2.73 2.85 2.98

5/31/2018 1.50 – 1.75 1.93 2.08 2.40 2.68 2.83 3.00

4/30/2018 1.50 – 1.75 1.87 2.04 2.49 2.79 2.95 3.11

3/31/2018 1.50 – 1.75 1.73 1.93 2.27 2.56 2.74 2.97

2/28/2018 1.25 – 1.50 1.65 1.86 2.25 2.65 2.87 3.13

1/31/2018 1.25 – 1.50 1.46 1.66 2.14 2.52 2.72 2.95

12/31/2017 1.25 – 1.50 1.38 1.53 1.88 2.21 2.40 2.74

12/31/2016 0.50 – 0.75 0.50 0.61 1.19 1.93 2.44 3.07

▪ The US Treasury yields rose across the majority of the curve in June, with the year’s second Fed Funds rate hike and

a largely risk-on sentiment initially sent the curve higher; but, appetites for risk waned as the month progressed,

causing a modest rate rally and continued flattening as long-dated yields proceeded to fall.

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Market Overview

Investment Grade Sectors - Excess Returns (2Q 2018)


1) Source: Bloomberg Barclays

As of June 30, 2018. Excess returns are the curve-adjusted return differential of a given index/sector relative to a comparable term structure-matched position in treasuries. Past performance cannot guarantee future results.

2009 2010 2011 2012 2013 2014 2015 2016 2017 2Q18

YTD

2018

Agency 2.38 0.72 0.19 0.97 0.01 0.55 0.08 0.39 0.69 -0.15 0.00

ABS 24.96 1.69 0.52 2.46 0.24 0.53 0.44 0.95 0.92 0.17 -0.02

CMBS 29.60 15.01 0.47 8.41 0.97 1.08 -0.28 2.36 1.58 0.00 -0.06

MBS 4.95 2.25 -1.06 0.91 0.98 0.40 -0.05 -0.11 0.52 0.15 -0.24

Credit 19.90 1.92 -3.22 6.93 2.26 -0.18 -1.69 4.42 3.35 -0.91 -1.54

Industrial 23.12 1.75 -2.33 4.92 2.24 -1.10 -2.67 6.03 3.49 -1.13 -1.78

Utility 27.80 1.81 -1.60 4.67 2.95 -0.15 -2.03 4.83 3.41 -1.37 -2.20

Financials 21.41 3.26 -6.28 12.52 3.93 0.55 0.48 2.78 3.43 -0.67 -1.64

Aaa 1.68 0.64 -0.97 1.96 0.47 0.25 -0.07 0.39 1.05 -0.02 -0.19

Aa 11.47 0.95 -2.91 4.15 1.36 0.26 -0.04 2.33 2.18 -0.38 -0.67

A 19.12 1.70 -3.71 7.40 2.53 -0.39 -0.34 3.52 2.96 -0.90 -1.86

Baa 31.30 3.05 -3.52 8.56 2.66 -0.22 -3.65 6.66 4.47 -1.22 -1.76

High Yield 60.14 9.74 -2.40 13.94 9.23 -1.12 -5.77 15.73 6.10 0.96 0.79

▪ The investment grade sectors posted negative relative results for the quarter-end period as credit spreads gradually widened. Global demand for risk-assets waned throughout the quarter as steady economic growth was challenged by geopolitical uncertainties and investor fears over a developing trade war between the US and other major economies.

▪ The corporate credit sector underperformed duration-matched treasuries, with -91bps of excess return for the period against a backdrop of rising interest rates and trade war implications between the US and China. Technical factors continued to decline as elevated issuance and wider spreads further pressured valuations, despite strong corporate fundamentals.

Bloomberg Barclays Aggregate Index Excess Returns (%)1

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Credit Indications Within Economic Cycle

Factors supporting cycle arguments

USIG

USHY

EMIG

EURIG

EMHY

EURHY

Loans-US

Loans-EUR

Asia HY

Asia IG

Early Cycle Mid-Cycle Late Cycle Recession

Growth Accelerating Peaks Slows Contracts

Credit Spreads Opportunistic Declining Tight Widening

Defaults Plateau Trend lower Bottoms Rising

Margins Recovering Expanding Plateaus Declines & troughs

CAPEX Bottom then Rises Stabilizes Accelerates Declines

Dividends Payouts & ratios rise Payouts & ratios rise Payouts rise, ratios decline Payouts decline, ratios rise

Buybacks Reinstated Rising but less than FCF Rising & nearing or exceeds FCF Falls or halted

M&A Start of cycle Growing, major deals emerge Peaks, mega deals, high valuations End of cycle, cheap valuations

Cash Position Buildup Buildup & redeployment Declines Rebuild

17

Source: Invesco, June, 2018.


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Industries Vary Widely Within Corporate Credit Cycle

U.S. Banks

EnergyIndustrials

Utilities

Non-Cyclical

Telecomm

Healthcare

Technology

Consumer

Cyclical

Insurance

REITs

Metals

Autos

Media

Early Cycle Mid-Cycle Late Cycle Recession

Growth Accelerating Peaks Slows Contracts

Credit Spreads Opportunistic Declining Tight Widening

Defaults Plateau Trend lower Bottoms Rising

Margins Recovering Expanding Plateaus Declines & troughs

CAPEX Bottom then Rises Stabilizes Accelerates Declines

Dividends Payouts & ratios rise Payouts & ratios rise Payouts rise, ratios decline Payouts decline, ratios rise

Buybacks Reinstated Rising but less than FCF Rising & nearing or exceeds FCF Falls or halted

M&A Start of cycle Growing, major deals emerge Peaks, mega deals, high valuations End of cycle, cheap valuations

Cash Position Buildup Buildup & redeployment Declines Rebuild

18

Construction

EUR Banks



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IFI Credit Scorecard – 3 month Projections

Asset Class Comparison

Asset Class

Ove

rall

Fu

nd

am

en

tal

Va

lua

tio

ns

Te

ch

nic

al

Current

Spread

US Investment Grade C B C D 110

EUR Investment Grade B B B C 111

UK Investment Grade C C C C 138

US High Yield C B E C 332

EUR High Yield C B E C 353

Emerging Markets - Sovereign C B B E 356

Emerging Market - Corporate C B B E 287

Asia Investment Grade B B B C 153

Asia High Yield B B B C 451

Bank Loans B B B B 540

Bank Loans - EUR B B C B 360


19 FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC

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IFI Credit Scorecard – 3 month Projections

Asset Class Comparison

Asset Class

Ove

rall

Fu

nd

am

en

tals

Va

lua

tio

ns

Te

ch

nic

als

Start

Spread

Agency MBS D C D D 58

Non-Agency MBS – Legacy C B C C 95

Non-Agency MBS – GSE CRT (BBB) B B C B 86

Non-Agency MBS – GSE CRT (BIG) C B D B 204

ABS C B C C 45

CMBS C C C B 76

Municipals – Investment Grade B B C B 50

Municipals – High Yield B B C A 200



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Global IG Credit Themes

▪ Central Bank Forces Less Favorable

– Rate Hikes Drive ↑ FX Hedge Costs

– QT, Deficits Push ↑ Net FI Supply

▪ Credit Fundamentals To Improve

+ Earnings, Leverage Trends

▪ US Fiscal Policy Expectations

+ Tax Policy Stimulus Enacted

▪ Cash Repatriation Opposing Forces

+ Lower Funding Needs

- Front End Selling Pressure

▪ Commodities – Crude Range Bound,

preferred vs Metals, Pipelines

▪ Consumer Related

+ EUR: Consumer Deleveraging

+ US: High Confidence Remaining

▪ Favor Housing/Constr. Related Sectors

▪ TMT Data/Wireless/Cloud

▪ Retail Sub-Sector Selectivity

+ Convenience, Less Internet Sensitive

▪ Biotech Innovative, Resilient

▪ US IG: Bear Flattener

- U/W Front End, Selling Pressure

+ 7-10yr (roll-down)

+ 30yr less attractive

▪ EU IG: ECB remains supportive

▪ UK IG: Brexit/Political Concern

▪ US IG Supply Outlook Moderating

+ M&A Uncertainty Remains

+ Organic Growth Returning

▪ Financials: Cap Structure

– T1/Preferred Less Rich

+ Senior/Sub Debt Cheap, Holdco

Funding Technical Abating

▪ BBB/A Basis Cheapened

▪ Single-A Industrials Rich

▪ HQ Secured FA Backed Notes Trade

Cheap vs Sr. Fins, HQ Industrials

Macro

Cre

dit

Secto

r

Qu

ality

Cu

rve, Tech

nic

als

Source: Invesco, June, 2018.21 FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC

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Credit Strategy – Valuations

As of June 15, 2018

HY Continues to Outperform EM and IG

Source: Barclays, JP Morgan, Bloomberg


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Credit vs Equity Relative Performance

US IG Diverging from Equities

S&P 500 vs. US IG Credit OAS

▪ IG spreads now pricing in higher market volatility

after the short-VIX trade unwind

▪ Pickup in M&A supply likely at fault for US IG

underperforming equities in Q218

US IG Credit: Yield to Worst vs OAS

▪ All-in yields touch 4% for the 1st time in over 7 years

▪ Should attract more demand from pension & insurance

Higher Yields Improves Relative Value vs Other Developed Markets

80

90

100

110

120

1302200

2300

2400

2500

2600

2700

2800

2900

Jun-1

7

Jul-1

7

Aug-1

7

Sep-1

7

Oct-

17

No

v-1

7

De

c-1

7

Jan-1

8

Feb

-18

Ma

r-1

8

Apr-

18

Ma

y-1

8

Jun-1

8

S&P 500 (lhs)US IG Credit OAS (rhs)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50Yield to Worst OAS (in %)

Source: Bloomberg, Barclays as of June 13, 2018 Source: Bloomberg, Barclays as of June 13, 2018


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Becoming Easier to Generate Decent Yield in US IG

Yet Still Difficult for Foreign Investors to Find Yield

Source: Barclays as of May 31, 2018

27.3%

16.1%

0%

10%

20%

30%

40%

50%

60%

Fe

b-1

1

Jul-1

1

De

c-1

1

Ma

y-1

2

Oct-

12

Ma

r-1

3

Aug-1

3

Jan-1

4

Jun-1

4

No

v-1

4

Apr-

15

Sep-1

5

Feb

-16

Jul-1

6

De

c-1

6

Ma

y-1

7

Oct-

17

Ma

r-1

8

Share of Euro Agg Index WithNegative Yield

Share of Global Agg Index WithNegative Yield

Source: Barclays as of May 31, 2018

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apr-

08

No

v-0

8

Jun-0

9

Jan-1

0

Aug-1

0

Ma

r-1

1

Oct-

11

Ma

y-1

2

De

c-1

2

Jul-1

3

Feb

-14

Sep-1

4

Apr-

15

No

v-1

5

Jun-1

6

Jan-1

7

Aug-1

7

Ma

r-1

8

Global Negative Yields Still Pervasive US IG Index: MV% w/YTW >= 3%


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FX-Hedged Yields by Tenor for Foreign Investors

Source: BAML Indices, Bloomberg, June 15, 2018

0.0

0.5

1.0

1.5

2.0

2.5

0 2 4 6 8 10 12 14 16 18 20 22 24 26

Eff

ecti

ve Y

ield

(E

UR

, %

)

Years to maturity

Hedged IG Yields for EUR Investors

EUR HG

USD HG in EUR

0.0

0.5

1.0

1.5

2.0

2.5

0 2 4 6 8 10 12 14 16 18 20 22 24 26

Eff

ecti

ve Y

ield

(JP

Y, %

)

Years to maturity

Hedged IG Yields for JPY Investors

USD HG in JPYEUR HG in JPYJPY HG

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

Jun-1

5

Aug-1

5

Oct-

15

De

c-1

5

Feb

-16

Apr-

16

Jun-1

6

Aug-1

6

Oct-

16

De

c-1

6

Feb

-17

Apr-

17

Jun-1

7

Aug-1

7

Oct-

17

De

c-1

7

Feb

-18

Apr-

18

US IG Yields, JPY-Hedged, by Maturity Bucket

1-3yr US Corp

3-5yr US Corp

5-7yr US Corp

7-10yr US Corp

10+y US Corp

40yr JGB

25FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC

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Credit Strategy – Issuance

Supply as of April 30, 2018

US IG: Spreads Still Struggling Despite Issuance -10% y/y

Source: Invesco, Bloomberg

519 544 557

326

493 464

567564

653 636672

608

5% 2%

-42%

51%

-6%

22%-1%

16%-3% 6%

-10%

0

100

200

300

400

500

600

700

800

900

1,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US Investment Grade: Year to Date Issuance ($bb) YTD Issuance 5/31 Y/Y% chg

88.6

168.1

96.4

128.6108.0

139.3126.4 121.5

33.7

135.6

97.1

126.3 122.6

0

20

40

60

80

100

120

140

160

180

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

US Investment Grade: Monthly Issuance ($bb)

26FOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC

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Firm Overview and Investment Process

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Invesco Ltd.

Solely dedicated to investment management for the benefit of clients

28

Source: Invesco Ltd. Investment professional and AUM are as of March 31, 2018, and include all assets under advisement, distributed and overseen by Invesco.


Global ReachClient Focus High Performance Culture

▪ Over 750 investment

professionals in more than 20

countries

▪ US$934.2 billion in assets under

management for clients globally

▪ Global profile that spans nine of

the world’s ten largest markets

▪ Business focused exclusively on

investment management

▪ We’re relentless in our pursuit of

achieving more for clients

▪ Our global support platform

eliminates distractions and

empowers our distinct investment

teams with the potential to

produce strong, long-term

investment results

▪ A culture of accountability and

collaboration focused on helping

clients achieve their investment

objectives

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Our global perspective and local market knowledge help us

uncover investment opportunities

29

Scope of fixed income platform:

US$314.4 billion AUM

Depth of resources:

169 investment professionals

226 professionals

Global footprint:

10 locations in key markets

Rates 19 Currency 14 Credit 72 PM 77

London

Hong Kong

Tokyo

We have a well-resourced investment team with a strong global perspective

San Diego

New YorkAtlanta

London

Hong

Kong

Chicago

Louisville

ShenzhenMumbaiPalm Harbor

Source: Invesco, as of March 31, 2018. Subject to change without notice.

TorontoPortland

Shenzhen and Mumbai represent wholly owned Invesco subsidiaries and are not included in the official IFI location count.


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Invesco Fixed Income

Assets under management – March 31, 2018


IFI Asset Breakdown ($ billion)

Global Investment Grade $47

Multi Sector $11

Stable Value* $30

Bank Loans $44

High Yield $5

Emerging Markets $4

Structured Securities $40

Municipals $27

Global Liquidity $106

Total $314

* Approximately $23.8 billion of Stable Value Assets are managed within our Global Fixed Income and Structured Securities teams and are being reflected

in the line items of those groups above.

Global Investment

Grade

Multi Sector

Stable Value

Structured Securities

Bank Loans

Emerging Markets/High

Yield

Global Liquidity

Municipals

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Invesco Fixed Income Overview

IFI’s experienced teams provide broad market coverage and

specialized expertise

Fixed Income TeamsTeam Members

Average yrs.with Invesco

Average yrs.Industry Experience*

Portfolio Management & Trading 74 12 21

Global Research 95 9 17

Total Investment Professionals 169 10 19

Business Professionals 57 12 18

Total Fixed Income Employees 226 11 19

As of March 31, 2018. Subject to change without notice.

*Investment specific experience for investment professionals.


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▪ An economy’s cycle of expansions and

contractions matters for asset prices

▪ Successful long-term management requires skill

in determining market direction and effective

security selection

▪ Integrating local knowledge into a global view

strengthens our capabilities

▪ Multi-faceted risk management is critical for

exceptional long term performance

We believe return opportunities arise from both market

direction and fundamentally-based security selection

32

Our philosophy ties opportunity to the economic cycle

Economic

Cycle

Themes

Security

Selection

Market

Direction

We believe at different points in a market

cycle, market direction and security

selection differ in importance

For illustrative purposes only.

Source: Invesco, as of May 2018.


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Our disciplined process builds on our investment

philosophy as we seek to drive strong results

33


Macro Research

Credit Research

Integrated

Strategy

Client Portfolio

Our investment process builds on

key components

Portfolio

Management

▪ Fundamentally–based macro

and credit research generate investable

views, themes and input for strategy

▪ Integrated strategy determines views on

market direction, risk positioning, and

asset allocation

▪ Portfolio managers utilize platform

views (the tool kit) for client portfolios

▪ Risk management is integrated

throughout our process

Platform

Tool Kit


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Our macro process leverages experience with quantitative

tools to generate investment views

34



Econometric Assessment

Regime & Policy

Determination

Thematic &

Opportunistic Ideas

The Macro Research Component Seasoned Macro Team

▪ Our deep and experienced team

integrates local market knowledge with a

global approach

▪ Country-specific, learning-based

quantitative modeling is employed in a

framework allowing easy comparison

across markets

▪ Seasoned local experts utilize detailed

country analysis and quantitative results

to generate rates and currency

positioning

▪ Our platform communicates decisions

broadly in a standardized format

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Rigorous credit research process identifies thematic and

high conviction investments

35



Thematic &

Opportunistic

Ideas

PM & Research

Reconciliation

Fundamental

Analysis

Rigorous Credit Analysis

▪ Our research teams are well-resourced

and consistently apply a systematic

global framework

▪ Macro research views provide a

consistent starting point

▪ Standardized decisions and regular

forums provide comparability across

geography, asset classes, industries

and quality

▪ PMs & analysts synthesize research

into thematic ideas and high-conviction

security selection

The Credit Research Component

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Our Investment Strategy Team leads the integration of our

research and portfolio management platform

36



Research Teams Portfolio Management Teams

Investment Strategy Team

Rob Waldner, Chair

Head, Global Macro/Chief Strategist

Raymund Uy

Head

Global Macro Research

Tony Wong

Head, Global Research, Liquidity

& Municipals

Michael Hyman

CIO, Global Investment Grade &

Emerging Markets

Gareth Isaac

CIO, EMEA

Joseph Portera

CIO, High Yield & Multi-Sector

Credit

John Anzalone

Head, Structured Securities

PM

Week 1 Week 2 Week 3 Week 4

Macro Sector Relative Value Asset Allocation

▪ Senior investors from research and

portfolio management lead integration

of strategy

▪ Culture of inclusion drives full potential

of our global resources to provide

actionable insights

▪ Structured weekly process, with

flexibility to adapt to market events

▪ Process results in broad risk

positioning and asset allocation

expressed as a model portfolio

Our integrated perspective

compounds our expertise

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Deep and experienced Investment Grade team


Michael Hyman (27)

CIO, Global Investment Grade and Emerging Markets

Global Investment Grade Credit Team

Portfolio Management & Trading

* Co-Heads of Investment Grade Credit Research. () Denotes years of experience as of March 31, 2018. Organization structure as of April 2018. Subject to change without notice. 1

Invesco Global Trading is a supporting group for Invesco Fixed Income and does not fall under IFI headcount. ^ The primary responsibilities of the client portfolio manager (CPM) are to

represent the investment team in the marketplace and to help manage the team's business responsibilities. The CPM does not manage portfolio assets.

Global Macro Team

26 Professionals

Public Corporate Credit

Team

49 Professionals

Structured Credit Team

17 Professionals

Investment Strategy Team

7 Professionals

Matt Brill, CFA (16)

Ryan Watts, CFA (17)

Robert Young, CFA (24)

Lyndon Man, CFA (17)

Luke Greenwood (24)

Heide Fiscella (31)

North America Europe

Chuck Burge (25)

Marvin Flewellen, CFA (33)Steven Thompson (26) Peter Wendt (24)

Global Investment Grade Credit Research

David Todd* (21) Paul English, CFA* (20)

Fabrice Pellous, CFA (19)Chris Maurice, CFA (8)

Ray Janssen (17)

Andy Stone , CFA (19) Jacob Habibi, CFA (19)

Ian Centis (31)

Justo Gonzalez (32)

Michael Breuer, CFA (8)

Samira Sattarzadeh, CFA (16)Jay Sammons, CFA (9)

Bixby Stewart (8) Maynard Xu, CFA (10)

Client Portfolio Management ^

Global Trading Support1

16 Professionals

Todd Schomberg, CFA (19)

Chris Freel, CFA (7)

Michael Booth, ACA (7)

Lucas Simmons, CFA (11)

Peter Wietrak, CFA (12) Jason Trujillo (11)

Sam Morton (16)

Cosmo Zhang (21) Matthew Kong (22)

Lisa Tao (10)Adrian Garcia (20)Yi Hu, CFA (11)

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Our portfolio managers are responsible for leveraging the platform as they target client risk and return objectives

Portfolio

Management

Platform

Tool Kit

Portfolio manager responsibilities

▪ Experienced PMs identify and implement relevant

platform tools as they seek to meet client needs

▪ PMs conduct ongoing risk management and portfolio

positioning, leveraging IFI and Invesco resources

▪ PMs are accountable for managing within client

guidelines and responsible for portfolio performance

▪ IFI oversight reviews portfolio risk positioning and return

attribution


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Appendix

of 50

Michael Hyman

CIO, Global Investment Grade and EMD Portfolio Management

Michael Hyman is the CIO of Investment Grade Portfolio Management for Invesco Fixed

Income.

Prior to joining Invesco in 2013, Mr. Hyman was with ING Investment Management and ING

Institutional Markets for 12 years. At ING, he was head of investment grade corporate credit with

responsibility for managing a variety of investment grade credit-related portfolios, including

insurance, mutual fund and institutional separate account mandates. Preceding ING, Mr. Hyman

was a director of capital markets for GE Capital, where he was responsible for securitization and

derivative structuring. He also held trading and risk management positions at Société Générale

and Yasuda Trust and Bank. He entered the industry in 1991.

Mr. Hyman earned his BSE degree in finance from Pennsylvania State University and his MBA

from the Stern School of Business at New York University.

Biography


of 50

Ryan Watts, CFA®

Portfolio Manager

Ryan Watts is a Portfolio Manager with Invesco Fixed Income, with primary responsibilities

within US Investment Grade Credit. He is responsible for the application of investment strategy

across fixed income portfolios, consistent with client investment objectives and guidelines. He is

also responsible for trading and monitoring corporate bond positions across portfolios in

telecommunications, media, and financials.

Mr. Watts joined Invesco in 2002 as performance analyst with Invesco's Performance and Risk

Measurement team. In that role, he was responsible for providing performance and statistical

analysis of fixed income and equity products across the firm. In 2007, he joined the portfolio

management team, where he was responsible for trading government bonds and derivatives, as

well as for implementing investment strategy across core and intermediate portfolios.

Mr. Watts earned a BA degree in business administration from Bellarmine University in 2002.

He holds the Chartered Financial Analyst charterholder and is a member of the CFA Society of

Atlanta.

Biography


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Robert B. Waldner, Jr., CFA®

Chief Strategist and Head of Multi-Sector

Rob Waldner is Chief Strategist and Head of Multi-Sector for Invesco Fixed Income (IFI). Mr.

Waldner has overall management responsibility for the IFI public credit asset class teams and the

Multi-Sector team. In this role, he is responsible for oversight of the portfolio construction process

for IFI’s public security portfolios. Mr. Waldner chairs the IFI Investment Strategy team and is

responsible for oversight of the overall IFI investment process. He joined Invesco in 2013.

Prior to joining Invesco, Mr. Waldner worked with Franklin Templeton for 17 years. At Franklin

Templeton, he was a senior strategist and senior portfolio manager. He was the lead manager for

Franklin absolute return strategies, and a member of the Fixed Income Policy Committee. Mr.

Waldner was instrumental in the launch of a number of new strategies on the Franklin Templeton

fixed income platform. Previously, Mr. Waldner was a member of the Macro team at Omega

Advisors and a portfolio manager with Glaxo (Bermuda) Ltd. He entered the industry in 1986.

Mr. Waldner earned a BSE degree in civil engineering from Princeton University, graduating

magna cum laude in 1986. He is a CFA charterholder.

Biography


of 50

Ray Uy, CFA®

Head of Macro Research and Global Multi-Sector Portfolio Management

Raymund Uy is Head of Macro Research and Global Multi-Sector Portfolio Management for

Invesco Fixed Income.

Mr. Uy has been in the industry since 1993. He has experience in a variety of functions, including

global fixed income trading and portfolio management; currency trading and portfolio management;

credit research and macroeconomic analysis.

Mr. Uy worked at Hartford Investment Management (HIMCO) for eight years prior to joining

Invesco in 2012. At HIMCO, he was a lead portfolio manager for non-US-dollar-based fixed income

portfolios, and as head of Fixed Income Trading, he managed a centralized platform of traders

across multiple fixed income sectors. Before joining HIMCO, Mr. Uy spent six years at Mackay

Shields in New York and five years at Fiduciary Trust.

He earned a BBA from Hofstra University in New York, and is a CFA charterholder.

Biography


of 50

Biography

Tony Wong

Head of Global Credit Research and Head of Global Liquidity

Tony Wong is Head of Global Credit Research for Invesco Fixed Income. He is responsible for providing

management oversight of Invesco Fixed Income’s global credit research organization. Mr. Wong directs

the credit research process and investment management-related support activities across Invesco Fixed

Income’s liquidity management, stable value, municipals and broad fixed income businesses,

encompassing public investment grade, high yield, and emerging markets.

Additionally, Mr. Wong is Head of Global Liquidity for Invesco Fixed Income. He is responsible for the

investment management and business development of our global liquidity business, which includes a

broad range of money market and short duration capabilities.

At the corporate level, Mr. Wong provides oversight and risk management support for various

counterparty credit risk related activities. He is a member of Invesco Ltd.’s Corporate Risk Management

Committee as well as the Invesco Atlanta Management Council. Externally, Mr. Wong is actively

involved with regulatory affairs, serving in various advisory roles with the Investment Company Institute.

Mr. Wong joined Invesco in 1996 as a fixed income analyst focusing on the analysis of corporations and

financial institutions. Prior to joining Invesco, Mr. Wong was in corporate finance as a business analyst

with Healthcare Realty Trust. Mr. Wong earned a BA degree in history and a BBA from Southern

Methodist University in Dallas. He also earned an MBA from University of St. Thomas in Houston.


of 50

Paul English, CFA®

Head of US Investment Grade Research

Paul J. English is Head of US Investment Grade Research for Invesco Fixed Income. His

primary responsibilities include the management and coordination of the investment grade

research function, credit strategy, resource requirements and standards of practice. In addition,

his coverage responsibilities are focused on the analysis of financial institutions.

Mr. English joined Invesco in 1998. Previously, he was a manager of financial planning with

Macy's (Federated Department Stores.) He has also served as a finance manager responsible

for financial forecasting and analysis at Midland Enterprises in Cincinnati.

Mr. English earned a BS degree in business administration from Xavier University. He holds the

Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Atlanta.

Biography


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Fixed Income Investment Appraisal

As of June 30, 2018

Source: InvescoFOR CITY OF SARASOTA EMPLOYEE PENSION USE ONLY NOT FOR USE WITH THE PUBLIC46

Security Classification SecurityShares / Par

ValueCUSIP Price (Base)

Average Unit

Cost (Base)

Accrued

Income (Base)

Market Value

(USD)

Market Value

+ AI

(USD)

Account

Weight % S&P Rating Fitch Rating

Moody's

Rating

99.54 1.01 118,740 27,953,526 28,072,266 100.00 - - -

100.19 1.01 118,740 27,757,755 27,876,496 99.30 - - -

Fixed income UNITED STATES TREASURY NOTE/BOND T 2 7/8 05/31/25 2,325,700 9128284R8 100.38 1.01 5,663 2,334,603 2,340,266 8.34 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 2 3/4 05/31/23 1,715,400 9128284S6 100.13 1.00 3,996 1,717,544 1,721,540 6.13 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 2 5/8 06/15/21 1,508,000 9128284T4 100.01 1.00 1,730 1,508,176 1,509,907 5.38 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 2 7/8 05/15/28 1,047,500 9128284N7 100.20 0.99 3,864 1,049,587 1,053,450 3.75 AA+ AAA Aaa

FNCL AO8632 3.5 07-01-42 757,286 3138M0SW1 100.36 0.99 2,209 759,979 762,188 2.72 AA+ AAA Aaa

FEDERAL NATIONAL MORTGAGE ASSOCIATION FNMA 1 5/8

11/27/18

650,000 3135G0YT4 99.80 1.00 998 648,720 649,717 2.31 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 2 1/2 05/31/20 633,800 9128284Q0 99.95 1.00 1,342 633,503 634,845 2.26 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 1 3/8 04/30/20 485,000 912828K58 97.95 0.99 1,124 475,073 476,196 1.70 AA+ AAA Aaa

FNCL AU5918 3.0 09-01-43 458,752 3138X5SG3 97.70 0.99 1,147 448,205 449,352 1.60 AA+ AAA Aaa

FNCL AT5895 3.0 06-01-43 429,970 3138WTRR9 97.69 0.99 1,075 420,048 421,123 1.50 AA+ AAA Aaa

FNCL AS8804 3.5 02-01-47 417,168 3138WJYA0 99.81 0.99 1,217 416,358 417,574 1.49 AA+ AAA Aaa

FGLMC Q11836 3.5 10-01-42 407,718 3132HNBD0 100.30 1.07 1,189 408,951 410,140 1.46 AA+ AAA Aaa

CHASE ISSUANCE TRUST CHAIT 2014-A2 A2 400,000 161571GK4 99.43 1.00 492 397,724 398,216 1.42 AAA AAA NR

FGLMC A97043 4.5 02-01-41 350,667 312945ZG6 105.17 1.06 1,315 368,804 370,119 1.32 AA+ AAA Aaa

FGLMC G08542 4.0 08-01-43 342,594 3128MJS84 102.47 1.03 1,142 351,062 352,204 1.25 AA+ AAA Aaa

FNCL BE0468 3.0 10-01-46 346,976 3140FKQW3 96.96 1.04 867 336,423 337,291 1.20 AA+ AAA Aaa

GENERAL ELECTRIC CO GE 4.65 10/17/21 305,000 36962G5J9 104.01 1.00 2,915 317,233 320,149 1.14 A A A2

WELLS FARGO & CO WFC 4.1 06/03/26 300,000 94974BFY1 97.99 1.01 957 293,970 294,927 1.05 BBB+ A A3

NAVIENT STUDENT LOAN TRUST 2014-8 NAVSL 2014-8 A3 290,000 63939DAC9 100.41 1.00 124 291,182 291,306 1.04 AA+ AAA Aaa

FNCL BM1785 4.0 08-01-47 269,563 3140J56X2 102.71 1.02 899 276,871 277,769 0.99 AA+ AAA Aaa

UNITED STATES TREASURY NOTE/BOND T 1 1/2 05/31/20 275,000 912828XE5 98.07 1.00 349 269,693 270,043 0.96 AA+ AAA Aaa

COSTCO WHOLESALE CORP COST 2.3 05/18/22 261,000 22160KAK1 97.12 1.00 717 253,484 254,201 0.91 A+ A+ A1

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A FORDF

2014-2 A

250,000 34528QDA9 100.34 1.00 286 250,838 251,124 0.89 AAA NR Aaa

US BANCORP USB 3.6 09/11/24 250,000 91159HHK9 98.79 1.00 2,750 246,970 249,720 0.89 A- A+ A1

PNC BANK NA PNC 2.7 11/01/22 250,000 69349LAG3 96.13 1.00 1,125 240,320 241,445 0.86 A- A A3

Occidental Petroleum 235,000 674599CE3 97.15 1.00 2,397 228,313 230,710 0.82 A A A3

PEPSICO INC PEP 3.6 03/01/24 225,000 713448CM8 101.12 1.00 2,700 227,525 230,225 0.82 A+ A A1

FNCL AI4222 5.0 07-01-41 210,567 3138AHVQ6 107.81 1.08 877 227,005 227,882 0.81 AA+ AAA Aaa

BANC OF AMERICA COMMERCIAL MORTGAGE TRUST 2015-UBS7

BACM 2015-UBS7 A4

225,000 06054AAX7 100.22 1.03 695 225,493 226,188 0.81 NR AAA Aaa

WFRBS COMMERCIAL MORTGAGE TRUST 2013-C15 WFRBS 2013-

C15 A4

200,000 92938CAD9 103.48 1.03 692 206,965 207,657 0.74 AAA AAA Aaa

Fixed income Total

Grand Total

of 50



As of June 30, 2018

Source: Invesco




Average Unit

Cost (Base)

Accrued

Income (Base)

Market Value

(USD)

Market Value

+ AI

(USD)

Account


Moody's

Rating

Fixed income FNCL AS5593 3.5 08-01-45 204,936 3138WFGB6 100.03 1.05 598 204,994 205,592 0.73 AA+ AAA Aaa

ORACLE CORP ORCL 2.95 05/15/25 214,000 68389XBC8 95.47 1.00 807 204,297 205,103 0.73 AA- A+ A1

FNCL AB9858 3.0 07-01-43 205,441 31417G5U6 97.69 1.03 514 200,700 201,214 0.72 AA+ AAA Aaa

FNCL 984280 6.0 06-01-38 181,002 31415MM51 110.44 1.08 905 199,908 200,813 0.72 AA+ AAA Aaa

BRISTOL-MYERS SQUIBB CO BMY 1 3/4 03/01/19 200,000 110122AV0 99.45 1.00 1,167 198,893 200,060 0.71 A+ A- A2

CME Class A 200,000 12572QAE5 98.94 1.00 1,767 197,873 199,640 0.71 AA- NR Aa3

UNITED STATES TREASURY NOTE/BOND T 1 5/8 06/30/20 200,000 912828XH8 98.22 1.00 1,634 196,445 198,079 0.71 AA+ AAA Aaa

BANK OF AMERICA CORP BAC 2.816 07/21/23 200,000 06051GGQ6 96.69 1.00 2,503 193,385 195,889 0.70 A- A+ A3

MORGAN STANLEY MS 3.591 07/22/28 200,000 61744YAK4 95.04 1.00 3,172 190,089 193,261 0.69 BBB+ A A3

UNITED STATES TREASURY NOTE/BOND T 1 3/8 05/31/21 194,000 912828R77 96.50 1.01 226 187,218 187,444 0.67 AA+ AAA Aaa

MICROSOFT CORP MSFT 1.55 08/08/21 185,000 594918BP8 95.89 1.00 1,139 177,398 178,537 0.64 AAA AA+ Aaa

FGLMC Q37878 4.0 12-01-45 171,557 3132QUXG3 102.34 1.07 572 175,566 176,138 0.63 AA+ AAA Aaa

Chevron 180,000 166764AB6 95.60 1.00 306 172,086 172,392 0.61 AA- NR Aa2

PUBLIC SERVICE ELECTRIC & GAS CO PEG 2.3 09/15/18 170,000 74456QBE5 99.91 1.00 1,151 169,842 170,993 0.61 A A+ Aa3

United Parcel Service (UPS) Class B 175,000 911312AQ9 96.90 1.00 1,072 169,570 170,642 0.61 A+ NR A1


C17 A4

165,000 92938GAD0 102.97 1.03 553 169,900 170,453 0.61 AAA AAA Aaa

FNCL AX7566 3.5 01-01-45 167,686 3138Y9MQ8 99.98 1.04 489 167,646 168,135 0.60 AA+ AAA Aaa

BANK OF NEW YORK MELLON CORP/THE BK 2.661 05/16/23 168,000 06406RAC1 97.04 1.01 559 163,029 163,588 0.58 A AA- A1

BERKSHIRE HATHAWAY FINANCE CORP BRK 4 1/4 01/15/21 150,000 084664BQ3 103.12 1.07 2,940 154,678 157,617 0.56 AA A+ Aa2

SUNTRUST BANK/ATLANTA GA STI 2.45 08/01/22 160,000 86787EAT4 96.06 1.00 1,633 153,702 155,335 0.55 A- A- Baa1

FNCL AS7587 3.5 07-01-46 153,982 3138WHND0 99.92 1.04 449 153,862 154,311 0.55 AA+ AAA Aaa

MIDAMERICAN ENERGY CO BRKHEC 2.4 03/15/19 150,000 595620AJ4 99.75 1.00 1,060 149,626 150,686 0.54 A+ A+ Aa2

STATE STREET CORP STT 2.55 08/18/20 150,000 857477AS2 99.19 1.00 1,413 148,778 150,192 0.54 A AA- A1

CSAIL 2017-C8 COMMERCIAL MORTGAGE TRUST CSAIL 2017-C8 A2 150,000 12595BAB7 98.93 1.03 373 148,401 148,775 0.53 NR AAA Aaa

PRECISION CASTPARTS CORP PCP 2 1/4 06/15/20 150,000 740189AL9 98.77 1.00 150 148,159 148,309 0.53 AA- NR A2

BB&T CORP BBT 2 3/4 04/01/22 150,000 05531FAX1 97.68 1.02 1,031 146,518 147,549 0.53 A- A+ A2

FGLMC A94035 4.0 09-01-40 142,452 312942PU3 102.81 1.03 475 146,449 146,924 0.52 AA+ AAA Aaa

GOLDMAN SACHS GROUP INC/THE GS 2.905 07/24/23 150,000 38141GWM2 96.32 1.00 1,900 144,476 146,376 0.52 BBB+ A A3

ABBVIE INC ABBV 2.3 05/14/21 150,000 00287YAU3 97.17 1.00 450 145,759 146,209 0.52 A- NR Baa2

COMCAST CORP CMCSA 4.2 08/15/34 150,000 20030NBM2 95.49 1.00 2,380 143,240 145,620 0.52 A- A- A3

of 50



As of June 30, 2018




Average Unit

Cost (Base)

Accrued

Income (Base)

Market Value

(USD)

Market Value

+ AI

(USD)

Account


Moody's

Rating

Fixed income SYNCHRONY CREDIT CARD MASTER NOTE TRUST SYNCT 2017-1

A

145,000 87165LBP5 98.01 1.00 124 142,117 142,242 0.51 NR AAA Aaa

VISA INC V 2.8 12/14/22 143,000 92826CAC6 98.16 1.00 189 140,372 140,561 0.50 A+ NR A1

UNITED STATES TREASURY NOTE/BOND T 1 5/8 11/30/20 143,000 912828M98 97.76 1.00 197 139,794 139,990 0.50 AA+ AAA Aaa

CISCO SYSTEMS INC CSCO 2.45 06/15/20 140,000 17275RAX0 99.38 1.02 152 139,126 139,279 0.50 AA- NR A1

CITIBANK CREDIT CARD ISSUANCE TRUST CCCIT 2017-A9 A9 140,000 17305EGH2 98.77 1.00 707 138,275 138,982 0.50 AAA AAA NR

WORLD FINANCIAL NETWORK CREDIT CARD MASTER TRUST

WFNMT 2016-C A

141,000 981464FU9 98.48 1.00 108 138,861 138,969 0.50 AAA AAA NR

AMERISOURCEBERGEN CORP ABC 3.45 12/15/27 150,000 03073EAP0 92.13 0.98 230 138,188 138,418 0.49 A- A- Baa2

JPMORGAN CHASE & CO JPM 3.54 05/01/28 140,000 46647PAF3 95.74 1.01 826 134,035 134,861 0.48 A- AA- A3

FGLMC Q15424 3.5 02-01-43 133,370 3132J6PJ7 100.30 1.02 389 133,773 134,162 0.48 AA+ AAA Aaa

EXXON MOBIL CORP XOM 2.709 03/06/25 136,000 30231GAF9 96.04 1.00 1,177 130,620 131,797 0.47 AA+ NR Aaa

JPMorgan Chase 130,000 46625HJE1 99.07 0.99 1,150 128,795 129,945 0.46 A- AA- A3

CITIBANK CREDIT CARD ISSUANCE TRUST CCCIT 2018-A1 A1 130,000 17305EGK5 98.73 1.00 1,358 128,354 129,712 0.46 NR AAA Aaa

APPLE INC AAPL 3.35 02/09/27 130,000 037833CJ7 97.65 1.00 1,718 126,945 128,662 0.46 AA+ NR Aa1

CITIGROUP INC C 2.876 07/24/23 130,000 172967LM1 96.43 1.00 1,631 125,357 126,987 0.45 BBB+ A Baa1

FNCL 745886 5.5 04-01-36 114,647 31403DUK3 108.49 0.99 525 124,377 124,902 0.44 AA+ AAA Aaa

FNCL AE4595 4.5 09-01-40 114,778 31419FC95 105.17 1.05 430 120,717 121,147 0.43 AA+ AAA Aaa

COMM 2015-DC1 MORTGAGE TRUST COMM 2015-DC1 A2 120,000 12629NAB1 99.84 1.03 287 119,804 120,091 0.43 NR AAA Aaa

MORGAN STANLEY MS 2.8 06/16/20 120,000 61761JB32 99.19 1.00 140 119,032 119,172 0.42 BBB+ A A3

BANK 2017-BNK8 BANK 2017-BNK8 A4 120,000 06650AAE7 98.07 1.03 349 117,688 118,037 0.42 NR AAA Aaa

FNCL AL7890 3.5 12-01-45 117,691 3138EQXU1 99.91 1.05 343 117,581 117,925 0.42 AA+ AAA Aaa

CAPITAL ONE MULTI-ASSET EXECUTION TRUST COMET 2017-A4 A4 120,000 14041NFN6 97.98 1.00 106 117,571 117,677 0.42 AAA AAA NR

FGLMC G08633 4.0 03-01-45 110,801 3128MJV31 102.34 1.07 369 113,397 113,766 0.41 AA+ AAA Aaa

VERIZON COMMUNICATIONS INC VZ 2 5/8 08/15/26 125,000 92343VDD3 88.75 1.00 1,240 110,943 112,182 0.40 BBB+ A- Baa1


C24 A5

110,000 92939KAE8 100.17 1.03 331 110,191 110,521 0.39 NR AAA Aaa

CITIGROUP INC C 3.668 07/24/28 110,000 172967LP4 95.14 1.00 1,760 104,655 106,415 0.38 BBB+ A Baa1

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP NRUC

10 3/8 11/01/18

100,000 637432LR4 102.56 0.99 1,729 102,560 104,289 0.37 A A+ A1

ANHEUSER-BUSCH INBEV FINANCE INC ABIBB 3.65 02/01/26 104,000 035242AP1 97.89 1.00 1,582 101,810 103,392 0.37 A- BBB A3

PACIFICORP BRKHEC 3.6 04/01/24 100,000 695114CR7 100.73 1.00 900 100,735 101,635 0.36 A+ A+ A1

CITIBANK CREDIT CARD ISSUANCE TRUST CCCIT 2013-A4 A4 100,000 17305EFB6 100.00 1.00 42 100,000 100,042 0.36 AAA NR Aaa

DUKE ENERGY PROGRESS LLC DUK 2.8 05/15/22 100,000 144141DC9 99 1.00 358 98,716 99,074 0.35 A NR Aa3

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As of June 30, 2018




Average Unit

Cost (Base)

Accrued

Income (Base)

Market Value

(USD)

Market Value

+ AI

(USD)

Account


Moody's

Rating

Fixed income GM FINANCIAL CONSUMER AUTOMOBILE RECEIVABLES TRUST

2018-1 GMCAR 2018-1 A3

100,000 36255PAD2 98.73 1.00 97 98,731 98,827 0.35 NR AAA Aaa

TOYOTA AUTO RECEIVABLES 2018-A OWNER TRUST TAOT 2018-A

A4

100,000 89238BAE2 98.57 1.00 112 98,575 98,687 0.35 AAA NR Aaa

JOHN DEERE CAPITAL CORP DE 1 1/4 10/09/19 100,000 24422ETJ8 98.15 0.99 285 98,155 98,439 0.35 A A A2

CSAIL 2017-CX10 COMMERCIAL MORTGAGE TRUST CSAIL 2017-

CX10 A2

98,000 12595JAC8 99.74 1.03 266 97,744 98,011 0.35 AAA AAA NR

Deere 100,000 244199BE4 97.47 1.00 166 97,468 97,634 0.35 A A A2

BANK OF AMERICA CORP BAC 6 7/8 11/15/18 95,000 590188JN9 101.55 0.83 835 96,476 97,310 0.35 A- A+ A3

CONOCOPHILLIPS CO COP 4.95 03/15/26 89,000 20826FAQ9 107.78 1.08 1,297 95,922 97,220 0.35 A- A- Baa1

COMCAST CORP CMCSA 3.15 02/15/28 100,000 20030NCA7 92.42 1.00 1,190 92,422 93,612 0.33 A- A- A3

LOWES COS INC LOW 2 1/2 04/15/26 101,000 548661DM6 91.48 1.00 533 92,390 92,923 0.33 A- NR A3

GOLDMAN SACHS GROUP INC/THE GS 3.691 06/05/28 96,000 38141GWL4 94.80 1.01 256 91,006 91,262 0.33 BBB+ A A3

WALMART INC WMT 3.3 04/22/24 90,000 931142DP5 99.56 1.00 569 89,601 90,170 0.32 AA AA Aa2

FNCL 741908 5.0 11-01-33 83,825 31402YGR9 107.09 0.97 349 89,768 90,117 0.32 AA+ AAA Aaa

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP NRUC

2 01/27/20

90,000 637432NC5 98.59 1.00 770 88,732 89,502 0.32 A A+ A1

AMERICAN EXPRESS CREDIT CORP AXP 1 7/8 05/03/19 89,000 0258M0EK1 99.27 1.00 269 88,346 88,615 0.32 A- A A2

DOMINION ENERGY GAS HOLDINGS LLC D 3.6 12/15/24 86,000 257375AH8 99.52 1.00 138 85,591 85,729 0.31 BBB+ A- A2

FNCL 814789 6.0 04-01-35 74,484 31406NF66 111.91 1.02 372 83,354 83,727 0.30 AA+ AAA Aaa

APPLE INC AAPL 2.15 02/09/22 84,000 037833AY6 96.90 1.00 712 81,392 82,105 0.29 AA+ NR Aa1

UBS COMMERCIAL MORTGAGE TRUST 2017-C2 UBSCM 2017-C2 A2 82,000 90276CAB7 98.85 1.03 207 81,059 81,266 0.29 AAA AAA Aaa

TD AMERITRADE HOLDING CORP AMTD 3.3 04/01/27 80,000 87236YAF5 95.42 1.00 660 76,336 76,996 0.27 A A- A2

FNCI AE3069 4.0 09-01-25 73,827 31419DMT5 102.96 1.05 246 76,015 76,261 0.27 AA+ AAA Aaa

CHEVRON CORP CVX 1.961 03/03/20 76,000 166764AR1 98.73 1.00 489 75,035 75,524 0.27 AA- NR Aa2

FNCL 794633 5.5 10-01-34 64,915 31405NY66 109.11 1.02 298 70,830 71,127 0.25 AA+ AAA Aaa

UNITED AIRLINES 2018-1 CLASS AA PASS THROUGH TRUST UAL 3

1/2 03/01/30

69,000 909318AA5 97.10 1.00 919 66,997 67,916 0.24 A AA Aa3

APPLIED MATERIALS INC AMAT 3.3 04/01/27 67,000 038222AL9 97.06 1.00 553 65,027 65,580 0.23 A- NR A3

UNITED AIRLINES 2016-1 CLASS AA PASS THROUGH TRUST UAL

3.1 07/07/28

62,311 90931LAA6 94.67 1.00 934 58,993 59,926 0.21 NR AA Aa3

CARMAX AUTO OWNER TRUST 2018-1 CARMX 2018-1 A4 60,000 14314AAD1 98.85 1.00 70 59,308 59,378 0.21 AAA AAA NR

HONDA AUTO RECEIVABLES 2017-3 OWNER TRUST HAROT 2017-3

A4

60,000 43814PAD2 97.35 1.00 43 58,408 58,451 0.21 AAA AAA NR

FREDDIE MAC REMICS FHR 3792 DF 57,823 3137A63Z3 100.22 1.00 64 57,948 58,012 0.21 AA+ AAA Aaa

ANHEUSER-BUSCH INBEV FINANCE INC ABIBB 2.65 02/01/21 58,000 035242AJ5 98.62 1.00 640 57,201 57,841 0.21 A- BBB A3

BMW VEHICLE LEASE TRUST 2016-2 BMWLT 2016-2 A3 54,821 05582XAD4 99.61 1.00 24 54,607 54,631 0.19 AAA AAA NR

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As of June 30, 2018




Average Unit

Cost (Base)

Accrued

Income (Base)

Market Value

(USD)

Market Value

+ AI

(USD)

Account


Moody's

Rating

Fixed income Citigroup 50,000 172967FT3 102.72 0.99 1,044 51,359 52,403 0.19 BBB+ A Baa1

FNCL 725220 5.0 03-01-34 48,261 31402CVM1 107.10 0.96 201 51,687 51,888 0.18 AA+ AAA Aaa

JPMORGAN CHASE & CO JPM 2.295 08/15/21 53,000 46623EKG3 96.61 1.00 460 51,204 51,663 0.18 A- AA- A3

Wells Fargo 50,000 94974BFJ4 98.00 1.00 661 49,002 49,663 0.18 BBB+ A A3

FNCL 729001 5.5 08-01-33 44,510 31402G3J0 108.70 0.99 204 48,380 48,584 0.17 AA+ AAA Aaa

BMW VEHICLE OWNER TRUST 2018-A BMWOT 2018-A A4 49,000 09659QAE7 98.65 1.00 17 48,340 48,357 0.17 NR AAA Aaa

GILEAD SCIENCES INC GILD 1.85 09/20/19 47,000 375558BR3 98.78 1.00 244 46,429 46,673 0.17 A NR A3

FNCL 725946 5.5 11-01-34 41,247 31402DP79 108.77 0.98 189 44,865 45,054 0.16 AA+ AAA Aaa

GILEAD SCIENCES INC GILD 2.35 02/01/20 45,000 375558AY9 99.02 1.00 441 44,560 45,000 0.16 A NR A3

GILEAD SCIENCES INC GILD 3 1/4 09/01/22 41,000 375558BC6 99.42 1.00 444 40,764 41,208 0.15 A NR A3

MERCEDES-BENZ AUTO LEASE TRUST 2018-A MBALT 2018-A A3 40,000 58772QAD8 99.35 1.00 43 39,739 39,782 0.14 AAA AAA NR

FHARM 1N0169 3.3 07-01-36 34,870 3128QGFJ6 103.79 1.02 193 36,191 36,384 0.13 AA+ AAA Aaa

FNCL AI4589 4.5 07-01-41 30,594 3138AJC34 104.41 1.05 115 31,943 32,057 0.11 AA+ AAA Aaa

FNARM 896286 3.9 06-01-36 26,211 31410SXP7 102.72 1.01 84 26,925 27,009 0.10 AA+ AAA Aaa

DUKE ENERGY FLORIDA LLC DUK 2.1 12/15/19 21,750 26444HAD3 99.42 1.00 20 21,625 21,645 0.08 A- NR A3

FGLMC A81625 6.0 09-01-38 19,631 312927YW0 109.59 1.02 98 21,515 21,613 0.08 AA+ AAA Aaa

FNARM 758614 3.9 11-01-33 12,174 31403UYK1 103.38 1.02 39 12,585 12,624 0.04 AA+ AAA Aaa

FNCL 736061 4.5 09-01-33 11,561 31402RWW5 104.64 0.93 43 12,098 12,141 0.04 AA+ AAA Aaa

FGLMC A12055 5.0 08-01-33 9,926 31296LH87 106.45 1.00 41 10,566 10,608 0.04 AA+ AAA Aaa

FNCL 725238 5.0 03-01-34 9,537 31402CV74 107.42 0.99 40 10,244 10,284 0.04 AA+ AAA Aaa

FNARM 796989 3.4 08-01-34 5,915 31405RNE2 103.60 1.02 17 6,128 6,145 0.02 AA+ AAA Aaa

FNCL 480950 6.5 03-01-29 3,369 31382FH36 110.23 1.00 18 3,713 3,732 0.01 AA+ AAA Aaa

FNCL 359435 7.5 12-01-22 1,436 31376MHL9 104.43 1.00 9 1,500 1,509 0.01 AA+ AAA Aaa

FNCI 254865 4.5 09-01-18 1,043 31371LCA5 100.73 1.02 4 1,050 1,054 0.00 AA+ AAA Aaa

FNCL 313097 6.5 05-01-26 935 31374FX20 110.23 0.95 5 1,030 1,035 0.00 AA+ AAA Aaa

FNCL 418147 6.5 05-01-28 860 31379FP81 110.23 1.00 5 948 953 0.00 AA+ AAA Aaa

FNARM 754623 5.1 11-01-33 617 31403QLC2 99.67 1.04 3 615 617 0.00 AA+ AAA Aaa

GNSF 377615 7.5 09-15-25 517 36204RN87 106.55 1.00 3 551 555 0.00 AA+ AAA Aaa

GNSF 417392 7.5 05-15-26 451 36206PUR9 106.69 1.03 3 481 484 0.00 AA+ AAA Aaa

FNCI 753693 4.5 09-01-18 466 31403NKE6 100.73 1.01 2 469 471 0.00 AA+ AAA Aaa

FNARM 675481 5.2 02-01-33 205 31391SM64 104.77 1.03 1 215 215 0.00 AA+ AAA Aaa

GNSF 299164 9.0 12-15-20 104 362207JH6 100.31 1.06 1 104 105 0.00 AA+ AAA Aaa

1.00 1.00 0 195,770 195,770 0.70

Cash & Cash equivalents Cash or Equivalents 195,770 CASHUSD00 1.00 1.00 0 195,770 195,770 0.70

Cash & Cash equivalents Total

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Invesco Fixed Income - Granicus

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