1. VIP Investment Management Report

2. Economic Overview Fed Funds Target Rate
The Federal Reserve increased its target rate to a range of 1.00% to 1.25% on June 15, 2017.
The June rate hike was the fourth increase in the past 18 months.
The FOMC believes the economy has improved enough to withstand higher interest rates and began the tightening process in December of 2015.
Source: Bloomberg

3. FOMC Dot Plot – September 2017
Economic Overview
FOMC Dot Plot – September 2017
Source: Bloomberg

4. Comparative Historical Yield Curves
Economic Overview
Comparative Historical Yield Curves
Interest rates are generally higher along the U.S. Treasury yield curve as the Fed has begun its tightening cycle.
The yield curve has flattened as expectations for growth an inflation have diminished over the past six months.
Source: Bloomberg

5. Money Market Yield Curves
Economic Overview
Money Market Yield Curves
The yield spread between short-term Treasuries and discount notes remain at very tight levels.
Adding credit in the form of commercial paper enhances the yield of the portfolio.
Money market yields continue to rise following the FOMC rate increase in June 2017.
Source: Bloomberg

6. US Average Hourly Earnings
Economic Overview
Labor Market
US Unemployment Rate
US Average Hourly Earnings
The unemployment rate ticked up to 4.4% in August up from a 16-year low of 4.3% in July.
Average hourly earnings increased 2.5% on a year-over-year basis in August.
Source: Bloomberg

7. Economic Overview Consumer Price Index
Inflation continues to trend away from the Fed’s 2% target in 2017.
Recent softness in inflation numbers has cast doubt on the Fed’s ability to continue to raise rates at its forecasted pace.
CPI on a year-over-year basis has decreased to 1.9% in August, down from 2.5% in January.
Source: Bloomberg

8. Institute for Supply Management
Economic Overview
Institute for Supply Management
ISM Manufacturing for August was 58.8 signaling continued expansion in the manufacturing sector of the economy.
ISM Non-manufacturing (Service) increased in August to 55.3 up from 53.9 in July. ISM Non- manufacturing decreased sharply in July from 57.4 to Decline was largest since November 2008, however index remains above 50 signaling continued expansion in the service sector.
Source: Bloomberg

9. Contributions to Percent Change in Real Gross Domestic Product
Economic Overview
Contributions to Percent Change in Real Gross Domestic Product
The U.S. economy expanded at a 3.1 % annualized pace during the second quarter of 2017.
Consumer Spending increased at a 3.3% annual pace adding 2.3% to second quarter growth.
GDP growth expectations remain at % for the foreseeable future.
Source: US Bureau of Economic Analysis

10. Safety Adhere to Virginia Code and VIP Board Policy
Follow requirements of S&P
Diversification requirements
WAM restrictions
Rigorous credit review process
Active pre and post-trade compliance

11. VIP Asset Allocation as of August 31, 2017
Safety
VIP Asset Allocation as of August 31, 2017
VIP Stable NAV Allocation
VIP 1-3 Year Fund Allocation
Source: Public Trust Advisors, LLC

12. Portfolio Characteristics
VIP Stable NAV Portfolio
VACo/VML VIP Stable NAV Liquidity Investment Pool
August 31, 2017
Ending Balance
Par Value
$ 481,985,310.56
Portfolio Characteristics
August 31, 2017
30 Day Average Net Yield
1.20%
Days to Final Maturity
71.45 Days
Days to Reset
53.06 Days
VACo/VML VIP Stable NAV Liquidity
Investment Pool
August 31, 2017
Ending Balance
Historical Cost
$ 481,469,993.26
Book Value
$ 481,620,750.10
Accrued Interest
695,310.95
Book Value Plus Accrued
$ 482,316,061.05
Net Unrealized Gain/Loss
6,613.61
Market Value Plus Accrued
$ 482,322,674.66
Net Pending Transactions -
Market Value Plus Accrued Net
Source: Public Trust Advisors, LLC

13. Portfolio Characteristics
VIP 1-3 Year Fund Portfolio
VACo/VML
Virginia Investment Pool
August 31, 2017
Ending Balance
Historical Cost
$ 347,972,110.70
Book Value
$ 346,134,392.09
Accrued Interest
1,341,050.56
Book Value Plus Accrued
$ 347,475,442.65
Net Unrealized Gain/Loss
(359,465.09)
Market Value Plus Accrued
$ 347,115,977.56
Net Pending Transactions -
Market Value Plus Accrued Net
Portfolio Characteristics
August 31, 2017
Book Yield Gross
1.31%
Market Yield Gross
1.39%
Weighted Average Coupon
1.72%
Duration
1.73 Years
Weighted Effective Maturity
1.79 Years
Weighted Final Maturity
1.81 Years
Trailing Month
Trailing Quarter
Trailing Year
Fiscal Year to Date
Since Inception
Total Return Performance
Periodic
Annualized
VACo/VML 1-3 Year High Quality Bond Fund
0.19%
0.39%
0.63%
0.42%
0.94%
BofA ML 1-3 Year AAA-AA Corp/Gov Index
0.20%
0.35%
0.62%
0.82%
Source: Public Trust Advisors, LLC

14. Portfolio Characteristics
VIP Stable NAV Asset Allocation
Security Distribution
August 31, 2017
Ending Balance
Portfolio
Allocation
Permitted
by Policy
Compliant
U.S. Treasury Securities
$ 9,989,722.00
2.07%
100.00%
YES
Federal Instrumentalities
$ 4,999,700.00
1.04%
Commercial Paper
$ 145,396,339.10
30.19%
35.00%
Certificates of Deposit
$ 305,506,598.05
63.43%
Corporate Notes
$ 5,099,694.00
1.06%
Repurchase Agreements
$ 10,635,310.56
2.21%
Total Portfolio Market Value
$ 481,627,363.71
VIP 1-3 Year Asset Allocation
Security Distribution
August 31, 2017
Ending Balance
Portfolio
Allocation
Permitted
by Policy
Compliant
Cash
$ -
0.00%
100.00%
YES
U.S. Treasury Notes
$ 170,736,070.97
49.19%
FNMA
$ 42,308,211.21
12.19%
FHLMC
$ 44,748,816.20
12.89%
FFCB
$ 612,771.94
0.18%
FHLB
$ 20,098,084.51
5.79%
Fed Instrumentality Subtotal
$ 107,767,883.87
31.05%
Corporate Notes
$ 59,587,961.63
17.17%
Municipal Bonds
$ 9,024,061.08
2.60%
Total Portfolio Market Value
$ 347,115,977.56
100.01%
*includes accrued interest
Source: Public Trust Advisors, LLC

15. Portfolio Maturity Distribution
VIP Maturity Distribution
VIP Stable NAV Maturity Distribution
VIP 1-3 Year Maturity Distribution
Source: Public Trust Advisors, LLC

16. Portfolio Ratings and Compliance
Portfolio Allocation by Standard & Poor’s Rating
VIP Stable NAV Ratings Distribution
VIP 1-3 Year Ratings Distribution
Portfolio Compliance
Compliant
Security Distribution
YES
Maturity Distribution
Rating Distribution
Portfolio Compliance
Compliant
Security Distribution
YES
Maturity Distribution
Rating Distribution
Source: Public Trust Advisors, LLC

17. Liquidity Adherence to Board Policy and VA State Code
Follow Requirements of Rating Agencies
Evaluate historical data to determine potential fund flows
Portfolio Considerations

18. Follow Requirements of Rating Agencies
Liquidity
Follow Requirements of Rating Agencies
60 Days to Reset Maximum Allowed by Guidelines
Days to Final Maximum Allowed by Guidelines
Source: Public Trust Advisors, LLC

19. VIP Stable NAV Adherence to S&P Guidelines
Liquidity
VIP Stable NAV Adherence to S&P Guidelines
WAM Breakdown Security Type August 31, 2017
Security Type
Market Value
WAM
Contribution
Commercial Paper A-1+/P-1
$103,518,081.00
14.48
Commercial Paper A-1/P-1
$41,878,258.10
6.96
U.S. Treasury Bills AA+/Aaa
$4,992,456.50
0.58
U.S. Treasury Notes AA+/Aaa
$ 4,997,265.50
0.63
Repurchase Agreements A-1+
$10,635,310.56
0.02
U.S. Government Agency Securities AA+/Aaa
$4,999,700.00
0.3
Certificates of Deposits A-1+
$135,003,687.90
13.55
Certificates of Deposit A-1
$170,502,910.15
15.79
Corporate Securities AA-
$5,099,694.00
0.74
Source: Public Trust Advisors, LLC

20. Yield
Asset Allocation
Performance
Portfolio Considerations

21. Comparison Yields – October 2016 through August 2017
Each local government investment pool (LGIPS) being compared is governed by the same specific state statutes, but each may have its own unique investment policy to further restrict permissible investments. Consequently, such LGIPS may vary in investment strategy, style, and fee structure. Such differences may account for variances in yield, weighted average maturities and portfolio composition. Figures are an average of the daily yields for the month. Past Performance is no guarantee of future results. Any financial and/or investment decision may incur losses. See Additional Disclosures for more information. *Yields shown are average daily yields for the month of August 2017.
Source: Public Trust Advisors, LLC,

22. VIP Liquid vs. S&P AAA/AA GIP Comparison 30 Day Net Yields
The benchmark, the S&P US AAA & AA Rated GIP All 30 Day Net Yield (LGIP30D) is a performance indicator of rated GIPs that maintain a stable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The S&P benchmark utilized in this comparison is a composite of all rated stable net asset value pools. GIPs in the index include only those rated based on Standard & Poor’s money market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to maintain principal value while those rated ‘AAm’ offer very good safety and a strong capacity to maintain principal value (Source: Standard & Poor’s website). The comparison between this index and the portfolio may differ in holdings, duration, fee, and percentage composition of each holding. Such differences may account for variances in yield. Past Performance is no guarantee of future results. Any financial and/or investment decision may incur losses.
*30-day yield as of August 31, 2017
** as of August 31, 2017
Source: Public Trust Advisors, LLC and Bloomberg

23. Balance Information – VIP since transition in November 2016
Year In Review
Balance Information – VIP since transition in November 2016
Source: Public Trust Advisors, Net Asset Figures

24. VIP Participant Analysis
Combined Fund Participant Breakdown as of August 31, 2017
Accounts by Type
Balance by Type
Source: Public Trust Advisors, LLC

25. VIP Stable NAV Liquidity Participant Breakdown
VIP Stable NAV Participant Breakdown as of August 31, 2017
Accounts by Type
Balance by Type
Source: Public Trust Advisors, LLC

26. VIP 1-3 High Quality Bond Fund
VIP 1-3 Year Participant Breakdown as of August 31, 2017
Accounts by Type
Balance by Type
Source: Public Trust Advisors, LLC

27. Additional Disclosure
This presentation is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions and is not a recommendation to buy, sell, implement or change any securities or investment strategy, function or process. Any financial and/or investment decision should be made only after considerable research, consideration and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact, and these assumptions may or may not be correct based on foreseen and unforeseen events. All calculations and results presented and are for discussion purposes only and should not be used for making calculations and/or decisions. The data in this presentation is unaudited. This presentation material is for the sole purpose of the VIP Board of Trustees. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past performance is not an indicator of future performance or results. Any financial and/or investment decision may incur losses. The investment advisor providing these services is Public Trust Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. Additionally, this registration provides no guarantee of return or protection against loss.