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HomeMy WebLinkAbout05 QUARTERLY INVESTMENT REPORT FOR THE CITY & SUCCESSOR AGENCY1'tY 4AGENDA REPORT MEETING DATE: AUGUST 20, 2019 TO: MATTHEW S. WEST, CITY MANAGER Agenda Item 5 Reviewed: City Manager Finance Dir ctor FROM: JOHN A. BUCHANAN, FINANCE DIRECTOR JENNY LEISZ, DEPUTY DIRECTOR - FINANCIAL SERVICES SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. RECOMMENDATION: Receive and file. FISCAL IMPACT: None. CORRELATION TO THE STRATEGIC PLAN: Correlates with the City's Strategic Plan Goal C: Financial Strength, Item 3. This investment report provides evidence of the City's commitment to ensuring that investments are in compliance with the adopted Investment Policy. DISCUSSION: In compliance with Government Code Section 53646, the attached Investment Report reporting cash and investments for the City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency for the quarter ending June 30, 2019 is rendered. QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY August 20, 2019 Page 2 of 3 The City's total cash and investments as of June 30, 2019 were $193 million, a decrease of $44 million from June 30, 2018 total cash and investments of $237 million. The decrease in cash and investments of $44 million is primarily due to the following significant outflows: • $22 million for various budgeted construction projects, including infrastructure at the Legacy development. • $15 million payment to Tustin Unified School District (TUSD) for additional funding for the Legacy Magnet Academy 6-12 School project at Tustin Legacy. • $3.7 million for the purchase of two properties adjacent to the Simon Ranch reservoir to facilitate water operations. • $3.3 million discretionary payment to CalPERS to pay down unfunded actuarial liabilities. • $0.5 million contribution to Public Agency Retirement Services (PARS) Trust Other Post -Employment Benefits (OPEB) account. The average cash balance for fiscal year 2018-19 was $212 million with an average weighted portfolio yield of 2.11 % and average weighted days to maturity of 569 days. The average cash balance for fiscal year 2017-18 was $218 million with an average weighted portfolio yield of 1.62% and average weighted days to maturity of 680 days. The decrease in the weighted average maturity was primarily caused by the decision to maintain highly liquid balances for various budgeted capital projects primarily within the Legacy development over the next one to two years. Interest earnings on a cash basis for fiscal year 2018-19 were $3.9 million, a $0.5 million increase in interest earnings from fiscal year 2017-18. Fiscal year 2017-18 interest earnings were $3.4 million. This increase in revenue was primarily due to the higher average weighted portfolio yield (0.49% increase) caused by the rising interest rate environment during most of fiscal year 2019. This increase was offset by decreased duration (111 days) and lower average cash balances ($6 million decrease), resulting from the volatile cash flow needs from the large construction projects taking place currently. In June 2018, $6.6 million was contributed to the Public Agency Retirement Services, (PARS) Trust to fund outstanding pension and other post -employment benefits (OPEB) liabilities. The PARS statement and quarterly report are attached showing the balances as QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY August 20, 2019 Page 3 of 3 of June 30, 2019 and the performance of the trust for the 1St quarter of calendar year 2019. The trust increased $0.9 million during fiscal year 2019 from a balance of $6.6 million at June 30, 2018, to $7.5 million at June 30, 2019. In March 2019, the City contributed $0.5 million to the OPEB account, which comprises close to half of the total increase in the trust. The remainder of the increase represents investment return for the year of 6.4% for the OPEB account and 6.8% for the pension account. The portfolio is invested in approximately half equities and half fixed income, with the objective of long-term earnings. The portfolio continues to meet the City's Investment Policy criteria to maximize the economic status of the City while protecting idle cash. The investment portfolio is currently laddered to reflect the projected cash flow needs of the City for the completion of various capital projects primarily within the Legacy. John A. Buchanan nce Director di�dny Lelsz Deputy Director - Fina lal Services Attachments: June 30, 2019 Quarterly Investment Report PARS Trust Statement as of June 30, 2019 PARS Moderate Fact Sheet Q1 2019 ny v 4 - �tlTREASU R'S QUARTERLY .� INVES ENT REPORT _ ! 44 .. d r _ 800.0000 700.0000 600.0000 500.0000 400.0000 300.0000 200.0000 100.0000 ti 0 O O A A A A 0 00 9 D 0 O OOti O� Oti Cie 01 Oti 0y Oti 01 01 0y Oti Oti ti ti ti 1 ti ti ti ti ti ti ti ti ti o\ \\� \3 \� \ \3 \\� \� � e titi 3 o e titi 3 � 2.70% 2.60% 2.50% moo+ 2.40% 2.30 2.20% , 2.10 2.00% 1.90% 1.80% 1.70% 1.60% _. 1.50% 1.40% 1.30% _ 1.20% ' 1.10% �. 1.00% 0.90% 0.80%- 0.70% - _ ...-.-- 0.60 0.50% 0.30% _ 0.20 0.10% 0.00% 10 (0A 61� QN, 6N O,O O, O,A O,A O,A otic O,� 61; otic otic' y\L o\ti o\4T 1\T e 00o\�\ti O\�o\ti �\�o\ti-,\'L"\T City of Tustin—t—LAIF Yield (%) —ONUS Treasury / 2 yr CITY OF TUSTIN Monthly Investment Report June 30, 2019 DIVERSIFICATION Investment Portfolio / Cost Value $192,525,705 Negotiable Certificate of Deposit $36,450,115 18.93% Municipal Bonds $8,758,989 4.55 Federal Agencies $63,588,987 33.03% Corporate Bonds $25,590,742 13.29% Liquid (Daily) $58,136,871 30.20% US Treasury $0 0.00% Y DIVERSIFICATION Investment Portfolio / Cost Value $236,506,653 Negotiable Certificate of Deposit $38,933,115 16.46% Corporate Bonds $24,651,919 10.42% Municipal Bonds. $8,508,989 3.60% US Treasury $6,987,354 2.95% Page 2 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 Maturity Distribution U5 Treasury p% Federal Agencies 5,000,000 4,002,200 16,907,496 18,489,814 18,489,478 700,000 63,588,987 33.03% Municipal Bonds 1,357,835 2,009,380 1,023,400 3,363,229 1,005,145 8,758,989 4.55% Commercial Paper 0a Certificate of Deposit - 0.00% Negotiable Certificate of Deposit 3,968,000 1,985,000 4,464,000 3,969,000 10,418,000 7,686,107 2,971,008 989,000 36,450,115 19% Corporate Bonds 1,991,904 9,011,161 7,062,430 6,491,106 1,034,142 25,590,742 13.29% Liquid (Daily) 58,136,871 58,136,871 30-2016 Total 68,462,706 3,976,904 8,466,200 5,978,380 37,360,056 36,601,580 28,956,737 2,723,142 192,525,705 100% Liquidity Distribution Page 3 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 GItY PA Investment Type Maximum Maturity Maximum % Holdings Maximum % per Issuer Minimum Rating % Invested Invested Compliance Municipal Bonds* 5 year 30% 5% N/A 4.55% $8,758,989 Yes U.S. Treasuries and General Obligations 5 year 100% 100% N/A 0.00% $0 Yes Federal Agency or US government sponsored enterprise 5 year 100% 50% N/A 33.03% $63,588,987 Yes Banker's Acceptance* 180 days 30% 5% N/A 0.00% $0 Yes Commercial Paper* 270 days 25% 5% A -1/P-1 plus 0.00% $0 Yes A long term Negotiable Certificates of Deposit 5 year 30% 5% - N/A 18.93% $36,450,115 Yes Repurchase Agreements (102% Collateralized)* 1 year 30% 5% N/A 0.00% $0 Yes Medium -Term (Corporate) Notes* 5 year 20% 5% A 13.29% $25,590,742 Yes Money Market Mutual Funds N/A/2 (A)7 20% 10% AAA/AAA 0.00 ° % $0 Yes Eligible Shares of beneficial interest by a JPA 5 year 100% 50% N/A 26.46% $50,937,339 Yes Supranationals (IBRD, IFD, and IADB)* 5 year 15% 5% AA 0.00% $0 Yes Collateralized Bank Deposits 5 year 100% 30% N/A 0.00% $0 Yes Orange County Investment Pool N/A Max pemitted by Max permitted by N/A 0.58% $1,110,835 Yes County Tresurer County Treasurer Local Agency Investment Fund g Y N A / Max pemitted by Max permitted by State N A / 1.38% $2,649,304 Yes State Tresurer Treasurer Bank of America (General Checking Account) N/A N/A N/A N/A 1.79% $3,439,392 Yes Total Invested $192,525,705 Combined total limitation (total classes with *) 30% 17.84% $34,349,732 Page 4 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 COMPLIANCE Investment Policy/ Corporate Bonds Corporate Bonds are required, at Settlement Date, to have an "A" rating from one of the three rating agencies. ADP American Express Apple Inc. Apple Inc. Barclays Bank PLC Berkshire Hathaway Chevron Corporation Coca-Cola Co IBM Credit LLC Microsoft Corporation Pfizer Inc Procter&Gamble Co Toyota Motor Credit Corp Toyota Motor Credit Corp Toyota Motor Credit Corp VISA Inc Walmart Store Inc Walmart Store Inc Wells Fargo Bank Face CUSIP Amount 053015AD5 1,000,000 0258MODX4 2,000,000 037833BS8 2,000,000 037833CQ1 2,000,000 06744CFN6 2,000,000 084670BQ0 1,000,000 166764BN9 2,000,000 191216BT6 1,000,000 44932HAC7 1,000,000 594918BG8 1,000,000 717081DZ3 1,000,000 742718DY2 1,000,000 89236TEC5 2,482,750 89236TDP7 1,000,000 89236TFN0 1,000,000 92826CAG7 1,000,000 931142EA7 1,000,000 94988J5G8 1,000,000 94988J5G8 1,000,000 Rating Settlement Date AA A- AA+ AA+ A- AA AA- AA - A+ AAA AA AA- AA- AA- AA - A+ AA AA A+ Prior Month Rating Current Rating S&P Moody's S&P Fitch Aa3 AA NR A2 A- A Aa1 AA+ NR Aa1 AA+ NR A2 A A+ Aa2 AA A+u Aa2 AA NR Al A+ Au Al A WD Aaa AAA AA+u Al AA A+u Aa3 AA- NR Aa3 AA- A+u Aa3 AA- A+u Aa3 AA- A+u Aa3 AA- NR Aa2 AA AA Aa2 AA AA Aa2 A+ AA - Prior Month Rating Moody's S&P Fitch Aa3 AA NR A2 A- A Aa1 AA+ NR Aa1 AA+ NR A2 A A+ Aa2 AA A+u Aa2 AA NR Al A+ Au Al A A Aaa AAA AA+u Al AA A+u Aa3 AA- NR Aa3 AA- A+u Aa3 AA- A+u Aa3 AA- A+u Aa3 AA- NR Aa2 AA AA Aa2 AA AA Aa2 A+ AA - Compliance Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Page 5 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 Cash and Investments / Summary [ll [2] [3] [4] [5] Description / Limits Face Amount YTM@Cost Credit Rating Cost Value +Accrued Market Value Shares Interest Investment Portfolio 134,232,000.00 2.06 134,388,833.95 134,318,679.15 Daily - Limit: [6] Reconciled / Bank of America Account - General Checking Orange County Investment Pool LAIF / Local Agency Investment Fund California Asset Management Program (CAMP) Performance Measurement Restricted / Un -Restricted Funds 1.25 N/A 3,439,392.37 3,439,392.37 2.33 [7] 1,110,834.99 1,110,834.99 2.43 N/A 2,649,304.23 2,649,304.23 2.48 AAAm 50,937,339.35 50,937,339.35 58,136,870.94 58,136,870.94 Investment Portfolio TOTAL 192,525,704.89 192,455,550.09 Weighted Average Days to Maturity 523 Weighted Average Yield 2.16% Benchmark / Treasury 2 Year 2.42% UN -RESTRICTED General Fund cash balance as of 6/30/2019 (unaudited) 24,238,032.69 SEMI -RESTRICTED Cash Balance as of 6/30/2019 (unaudited) 84,628,319.66 Capital Projects, Proceeds from Land Sales, Backbone Infrastructure RESTRICTED Cash balances as of 6/30/2019 (un -audited) 80,528,826.21 Total 189,395,178.56 Successor Agency Community Redevelopment Agency / Cash & Investments Total 3,130,526.33 Page 6 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 Restricted Deposits with Fiscal Agents [1] Description / Limits [2] [3] [4] [5] Face Amount YTM@Cost Credit Rating Cost Value +Accrued Market Value Shares 2013 Water Revenue Bonds Interest N/A 2016 Successor Agency Tax Allocation Bonds, Refunding 903.37 N/A 2016 Water Revenue Bonds, Refunding 369.84 N/A 2012 Water Revenue Bonds - Refunding 578.88 N/A 2013 Water Revenue Bonds 497.41 N/A CFD 04-1 1,130,042.26 N/A CFD 06-1 8,879,863.98 N/A CFD 07-1 1,744,445.09 N/A CFD 14-1 14,989,709.44 N/A 26,746,410.27 Restricted Deposits with Fiscal Agents TOTAL 903.37 903.37 369.84 369.84 578.88 578.88 497.41 497.41 1,130,042.26 1,130,042.26 8,879,863.98 8,879,863.98 1,744,445.09 1,744,445.09 14,989,709.44 14,989, 709.44 26,746,410.27 26,746,410.27 26,746,410.27 26,746,410.27 Page 7 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 Footnotes (1) DESCRIPTION -LIMITS reflects the various authorized investments as documented in the most current adopted investment policy and the allowable percentage of total portfolio per investment type. (2) FACE AMOUNT/SHARES is the full value of the security before any discount or premium is paid at purchase. (3) CREDIT RATING is the highest ratings from Standards & Poor's, Moody's or IDC Publishing Inc for bank ratings. IDC ratings are 1 (lowest) to 300 (highest). (4) COST VALUE +ACCRUED INTEREST is the original amount paid, including premiums/discounts, and purchased accrued interest. Amortization of discount/premium booked annually or when investment is sold/called/or matures. (5) MARKET VALUE is the price at which similar securities are currently trading. Current market values are provided by Bank of America and the State Treasurer's Office on all securities or deposits held in safekeeping for the City and the Successor Agency for the Tustin Community Redevelopment Agency. Market value differences are only booked at year end. (6) EARNINGS ALLOWANCE on compensating bank balances to offset bank activity charges. Allowance is included in the Average Yield calculation. The cash balances include amounts "swept" from account for overnight Investments. (7) ORANGE COUNTY INVESTMENT POOL rating is AAAm. Orange County Treasury Extended Fund is not rated by sponsor's choice. (8) Investments and earnings on monies held by fiscal agents generally are limited as to type and yield by the bond documents. Certifications We certify that this report reflects all City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency (SATCRA) pooled investments. The investments represented in this report are in conformity with the current adopted investment policy of the City of Tustin. The market values represented in this report are provided by the Custodian Bank and Trustees currently holding securities for the City of Tustin and SATCRA. The investment program herein shown provides sufficient cash flow liquidity to meet the next twelve (12) months estimated expenditures. This statement is prepared in conformance with Section 53646 of the Government Code. I C61—in Deering, Chair City of Tustin Audit Commission 4wliw J. VO Matt S. West, City Manager / Treasurer City of Tustin Page 8 of 17 CITY OF TUSTIN Monthly Investment Report June 30, 2019 Compliance / Investment Policy Description / Limits Face Amount Maximum Allowable Total Shares Maturity - Portion of Percentage Years/days Portfolio of Portfolio Cost Value + Accrued Market Value Interest US Treasury 0.00 5 years 100% 0.00% 0.00 0.00 US Agency 63,600,000.00 5 years 100% 33.03% 63,588,987.42 63,619,782.70 Municipal Bonds 8,680,000.00 5 years 30% 4.55% 8,758,989.40 8,735,308.10 Commercial Paper 0.00 270 days 25% 0.00% 0.00 0.00 Certificate of Deposit/ Negotiable 36,452,000.00 5 years 30% 18.93% 36,450,114.83 36,368,660.85 Corporate Bonds 25,500,000.00 5 years 20% 13.29% 25,590,742.30 25,594,927.50 Cash N/A N/A N/A 1.79% 3,439,392.37 3,439,392.37 Orange County Investment Pool N/A N/A N/A 0.58% 1,110,834.99 1,110,834.99 LAW / Local Agency Investment Fund N/A N/A N/A 1.38% 2,649,304.23 2,649,304.23 California Asset Management Program CAMP Shares of beneficial Interest by a JPA N/A N/A N/A 26.46% 50,937,339.35 50,937,339.35 Banker's Acceptance 0.00 180 days 30% 0.00% 0.00 0.00 Repurchase Agreements 0.00 1 year 30% 0.00% 0.00 0.00 Money Market Mutual Funds 0.00 N/A 20% 0.00% 0.00 0.00 Supranationals (IBRD, IFC and IADB) Collateralized Bank Deposits 0.00 0.00 5 years 5 years 15% 100% 0.00% 0.00% 0.00 0.00 0.00 0.00 Restricted Cash with Fiscal Agents 100.00% Investment Portfolio TOTAL 192,525,704.89 26,746,410.27 219,272,115.16 192,455,550.09 26,746,410.27 219,201,960.36 * Cash with Fiscal Agents are the Reserve and Construction Funds, held by Trustees for various City and RDA Bond Issues. Investment options are limited to those specifically permitted by bond documents. Page 9 of 17 City of Tustin Portfolio Holdings Compliance Report - Investment Policy Report Format: By Transaction Group By: Asset Class Average By: Cost Value Portfolio / Report Group: All Portfolios As of 6/30/2019 Page 10 of 17 Days To Maturity Settlement YTM @ Credit Credit Face Cost Value + Accrued % of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Interest Cost Price Market Value Portfolio > Liquid Assets Local Agency Investment Fund LGIP LGIP0936 1 N/A 6/30/2015 2.428 NR NR 1,560,075,81 1,560,075.81 100 1,560,075.81 0.81 California Asset Management Program LGIP CAMP6045 1 N/A 5/10/2017 2.480 NR NR 50,937,339.35 50,937,339.35 100 50,937,339.35 26.48 Bank of America - Checking MM MM0220 1 NIA 6/30/2015 1.250 NR NR 3,439,392.37 3,439,392.37 100 3,439,392.37 1.79 Orange County Investment Pool LGIP LGIP91-E 1 N/A 6/30/2015 2.327 NR NR 1,110,834.99 1,110,834,99 100 1,110,834.99 0.58 Local Agency Investment Fund LGIP LGIP0002 1 NIA 6/30/2015 2.428 NR NR 1,0B9,228.42 1,089,228.42 100 1,089,228.42 0.57 Sub Total / Average > Liquid Assets 1 2.402 58,136,870.94 58,136,870.94 100 58,136,870.94 30.22 Certificate of Deposit - Negotiable 30% Discover Bank2 7/9/2019 2546712E9 9 7/9/2019 7/9/2014 2.000 NR NR 248,000.00 248,000.00 100 247,983.88 0.13 American Express 1,95 7/10/2019 02587CAC4 10 7/10/2019 7/10/2014 1.950 NR NR 248,000.00 248,000.00 100 247,975.94 0.13 SmarlBank 1.4 7/19/2019 83172HDJ6 19 7/19/2019 4/19/2017 1.400 NR NR 248,000.00 248,000.00 100 247,875.26 0.13 Bridgewater Bank MN 1.55 7/26/2019 108622EE7 26 7/26/2019 1/27/2015 1.550 NR NR 248,000.00 248,000.00 100 247,862.86 0.13 Connectone Bankl.55 7/29/2019 20786ABA2 29 7/29/2019 1/28/2015 1.550 NR NR 248,000.00 248,000,00 100 247,960.82 0.13 Bank of Lexington, Inc 1.6 8/9/2019 063253BG2 40 8/9/2019 8/9/2017 1.600 NR NR 248,000.00 248,000.00 100 247,809.04 0.13 Investors Bank WI 1.7 8/14/2019 46147UQR4 45 8/14/2019 8/14/2015 1.700 NR NR 248,000.00 248,000,00 100 247,935.52 0.13 Medallion Bank UT 1.2 8/19/2019 58403134W3 50 8/19/2019 8/19/2016 1.200 NR NR 248,000.00 248,000.00 100 247,564.51 0.13 Morgan Stanley Bank 1.7 8/19/2019 61760ACZO 50 8/19/2019 8/17/2017 1.700 NR NR 248,000.00 248,000.00 100 247,787.96 0.13 Morgan Stanley Private Bank 1.7 8/19/2019 61747MYE5 50 8/19/2019 8/17/2017 1.700 NR NR 248,000.00 248,000,00 100 247,787.96 0.13 FNB of Mcgregor TX 1.1 8/19/2019 32112UCDI 50 8/19/2019 8/18/2016 1.100 NR NR 248,000.00 248,000.00 100 247,583.11 0,13 Franklin Synergy Bank 1.5 8/23/2019 35471TDH2 54 8/23/2019 5/24/2017 1.500 NR NR 248,000.00 248,000.00 100 247,694.22 0.13 Evegreen Bank Group 1.5 8/28/2019 300185FJ9 59 8/28/2019 2/28/2017 1.500 NR NR 248,000.00 248,000.00 100 247,671.40 0.13 LCA Bank Corporation 1.45 9/3/2019 501798KG6 65 9/3/2019 3/2/2017 1.450 NR NR 248,000.00 248,000.00 100 247,617.58 0.13 Landmark Community Bank 1.45 9/3/2019 51507LBG8 65 9/3/2019 3/3/2017 1.450 NR NR 248,000.00 248,000.00 100 247,629.74 0.13 Buckeye Community Bank 1.4 9/6/2019 11815SCW8 68 9/6/2019 3/6/2017 1.400 NR NR 248,000.00 248,000.00 100 247,593.28 0.13 Security State Bank 1.5 10/7/2019 81489TAV8 99 10!7/2019 4/7/2017 1.500 NR NR 248,000.00 248,000.00 100 247,524.83 0.13 Merrick Bank UT 1.55 10/9/2019 59013JKA6 101 10/9/2019 10/9/2015 1.550 NR NR 249,000.00 249,000.00 100 248,883.47 0.13 Capital One 2 11/5/2019 140420QN3 128 11/5/2019 11/5/2014 2.000 NR NR 248,000.00 248,000.00 100 247,926.34 0.13 City Bank UT 2.15 11/5/2019 17284C2R4 128 11/5/2019 11/5/2014 2.150 NR NR 248,000.00 248,000.00 100 247,978.92 0.13 Kearny Federal Savings Bank 1.7 11/15/2019 48714LAE9 138 11/15/2019 11/15/2017 1.700 NR NR 248,000.00 248,000.00 100 247,560.30 0.13 Washington Trust Company 1.65 11/25/2019 940637JAO 148 11/25/2019 5/24/2017 1.650 NR NR 248,000.00 248,000.00 100 247,492.59 0.13 Bank of Hope 1.7 11/26/2019 062683AJ6 149 11/26/2019 5/26/2017 1.700 NR NR 248,000.00 248,000.00 100 247,550.87 0.13 American Express2.2 11/29/2019 02587DWKO 152 11/29/2019 11/28/2014 2.200 NR NR 248,000.00 248,000.00 100 247,956.10 0.13 Page 10 of 17 Description CUSIP/Ticker Days To Maturity Maturity Date Settlement Date YTM @ Credit Cost Rating 1 Credit Rating 2 Face Amount/Shares Cost Value + Accrued Interest Cost Price Market Value % of Portfolio First Source Bank 1.75 12/30/2019 33646CFE9 183 12/30/2019 6/30/2015 1.750 NR NR 248,000.00 248,000.00 100 247,684.54 0.13 GE Capital Bank 1,8 1/16/2020 36162PFS6 200 1/16/2020 1/16/2015 1.800 NR NR 248,000.00 248,000.00 100 248,083.58 0.13 Peoples United Bank 1.85 1/21/2020 71270QLM6 205 1/21/2020 1/21/2015 1.850 NR NR 248,000.00 248,000.00 100 248,079,86 0.13 Douglas National Bank 1.65 1/21/2020 259744DS6 205 1/21/2020 7/19/2017 1.650 NR NR 248,000.00 248,000.00 100 247,331.14 0,13 Bank of Georgetown DC 1.65 1/30/2020 06424XBT8 214 1/30/2020 1/30/2015 1.650 NR NR 248,000.00 248,000.00 100 248,072.91 0,13 PrivateBank IL 1.8 1130/2020 74267GUW5 214 1/30/2020 1/30/2015 1.800 NR NR 248,000.00 248,000.00 100 248,058.03 0,13 Machias Savings Bank1.65 2/6/2020 554479DS1 221 2/6/2020 2/6/2015 1.650 NR NR 248,000,00 248,000.00 100 248,067.95 0.13 Springs Valley Bank & Trust Company 1.752/12/ 851791AR4 227 2/12/2020 10/12/2017 1.750 NR NR 248,000.00 248,000.00 100 247,388.43 0.13 Signature BK of Arkansas 1,152/18/2020 82669LGHO 233 2/18/2020 8/18/2016 1.150 NR NR 248,000.00 248,000,00 100 246,452.73 0.13 Belmont Savings Bank 1.55 2/24/2020 080515BT5 239 2/24/2020 2/24/2017 1.550 NR NR 248,000.00 248,000.00 100 247,017.92 0.13 Steams Bank 1.6 2/26/2020 857894TA7 241 2/26/2020 2/24/2017 1.600 NR NR 248,000,00 248,000.00 100 247,088.60 0.13 Berkshire Bank 1.55 2/28/2020 084601 GY3 243 2/28/2020 2/28/2017 1.550 NR NR 248,000.00 248,000.00 100 246,994.36 0.13 CrossFirst Bank 1.6 2/28/2020 22766AAX3 243 2/28/2020 2/28/2017 1.600 NR NR 248,000.00 248,000.00 100 247,078.43 0.13 First Western Bank 1.55 2/28/2020 33749VAK4 243 2/28/2020 2/28/2017 1.550 NR NR 248,000.00 248,000.00 100 246,996.34 0,13 Wells Fargo Bank 1.8 3/2/2020 949763FA9 246 3/2/2020 3/1/2017 1.800 NR NR 248,000.00 248,000.00 100 247,393.39 0.13 Keyeank National Association 1.7 3/9/2020 49306SXK7 253 3/9/2020 3/8/2017 1.700 NR NR 248,000.00 248,000.00 100 247,189.54 0.13 Beneficial Bank 1.3 3/9/2020 08173QBN5 253 3/9/2020 3/9/2016 1.300 NR NR 248,000.00 248,000.00 100 247,468.29 0,13 Goldman Sachs Bank 1.95 3/11/2020 38148JMVO 255 3/11/2020 3/11/2015 1.950 NR NR 248,000.00 248,000.00 100 247,613.37 0.13 Northwest Bank(FKA Western Capital Bank) 1.65 4/13 66736ABB4 288 4/13/2020 4/13/2017 1.650 NR NR 248,000.00 248,000,00 100 246,968.07 0,13 East Boston Savings Bank 1.7 4/13/2020 27113PBNO 288 4/13/2020 4/11/2017 1,700 NR NR 248,000,00 248,000.00 100 247,065.29 0.13 Mercantile Bank of Michigan 1.65 4/13/2020 58740XYW4 288 4/13/2020 4/11/2017 1.650 NR NR 248,000.00 248,000.00 100 246,962.86 0.13 MB Financial Bank 1.65 4/13/2020 55266CUYO 288 4/13/2020 4/13/2017 1.650 NR NR 248,000.00 248,000,00 100 246,968.07 0.13 Jefferson Bank and Trust Company 1.75 5/12/2020 472376AC6 317 5/12/2020 11/9/2017 1.750 NR NR 248,000.00 248,000,00 100 247,080.91 0.13 First Bank of Owasso 1.8 5/14/2020 31927LAMO 319 5/14/2020 11/14/2017 1.800 NR NR 248,000.00 248,000.00 100 247,184.82 0.13 Commerce State Bank 1.65 5/22/2020 20070PJDO 327 5/22/2020 5/22/2017 1.650 NR NR 248,000.00 248,000.00 100 246,834.65 0.13 Oriental Bank 1.85 5/26/2020 68621 KAY7 331 5/26/2020 5/24/2017 1.850 NR NR 248,000,00 248,000.00 100 247,262.70 0.13 Horicon State Bank 1.65 5/26/2020 440392FL7 331 5/26/2020 5/23/2017 1.650 NR NR 248,000.00 248,000.00 100 246,813.82 0.13 Summit Community Bank Inc 1.65 5/29/2020 86604XLT1 334 5/29/2020 5/31/2017 1.650 NR NR 248,000.00 248,000.00 100 246,810.84 0.13 Kennebec Savings Bank 1.65 5/29/2020 489265AU2 334 5/29/2020 5/30/2017 1.650 NR NR 248,000.00 248,000.00 100 246,810,84 0.13 Sturgis Bank & Trust Company 1.8 6/9/2020 864088DM8 345 6/9/2020 11/9/2017 1.800 NR NR 248,000.00 248,000,00 100 247,125,55 0.13 University of Iowa 2.85 6/19/2020 91435LAN7 355 6/19/2020 6/20/2018 2.850 NR NR 249,000.00 249,000.00 100 250,618.50 0.13 Comenity Cap Bank UT 2.15 6/29/2020 20033ALD6 365 6/29/2020 6/29/2015 2.150 NR NR 248,000.00 248,000,00 100 247,815.49 0.13 Chippewa Valley Bank 1.7 6/30/2020 169894AN2 366 6/30/2020 6/30/2017 1.700 NR NR 248,000.00 248,000,00 100 246,828.94 0.13 The Bank of Princeton 1.7 6/30/2020 064520AD1 366 6/30/2020 6/30/2017 1.700 NR NR 248,000.00 248,000.00 100 246,828.94 0,13 Midsouth Bank Lafayette 1.85 7/13/2020- 18 59805FAA7 379 7/13/2020 7/12/2017 1.850 NR NR 248,000,00 248,000.00 100 247,167.96 0.13 First Oklahoma Bank 1.7 7/27/2020 335857BE7 393 7/27/2020 7/26/2017 1.700 NR NR 248,000.00 248,000,00 100 246,737.18 0,13 Bank of Deerfield 1.15 7/27/2020 061785DP3 393 7/27/2020 8/26/2016 1.150 NR NR 248,000.00 248,000.00 100 245,281.92 0.13 Capital One 2.3 8/12/2020 14042E5M8 409 8/12/2020 8/12/2015 2.300 NR NR 248,000.00 248,000.00 100 248,330,34 0.13 BMW Bank UT 2,25 8/21/2020 05580ACS1 418 8/21/2020 8/21/2015 2.250 NR NR 248,000.00 248,000.00 100 248,335.54 0.13 Page 11 of 17 Description CUSIP/Ticker Days To Maturity Maturity Date Settlement Date YTM @ Credit Cost Rating 1 Credit Rating 2 Face AmountlShares Cost Value + Accrued Interest Cost Price Market Value % of Portfolio Southern State Bank AL 2.8 9/28/2020 843879BT3 456 9/28/2020 6/27/2018 2.800 NR NR 249,000.00 249,000.00 100 250,895.64 0.13 Financial Federal Bank 1.7 9/30/2020 31749TAX5 458 9/30/2020 5/30/2017 1.700 NR NR 248,000.00 248,000,00 100 246,520.18 0.13 Lakeside Bank 1.75 11/19/2020 51210SMS3 508 11/19/2020 5/19/2017 1.750 NR NR 248,000.00 248,000.00 100 246,519.19 0.13 American National Bank -Fox Cities 1.75 11/23/2020 02771PNQ6 512 11/23/2020 5/23/2017 1.750 NR NR 248,000.00 248,000.00 100 246,506.30 0.13 Alma Bank 1.7 12/9/2020 020080BE6 528 12/9/2020 12/9/2016 1.700 NR NR 248,000.00 248,000.00 100 246,279.13 0.13 Plus International Bank 2.8 12/14/2020 729401.103 533 12/14/2020 6/13/2018 2.800 NR NR 249,000.00 249,000.00 100 251,189.46 0.13 Morton Community Bank 1.7 12/16/2020 619165GW7 535 12/16/2020 12/16/2016 1.700 NR NR 248,000.00 248,000.00 100 246,254.33 0.13 First Bank Richmond 1,8 12/28/2020 319267GE4 547 12/28/2020 6/27/2017 1.800 NR NR 248,000.00 248,000.00 100 246,577.72 0.13 Stone Bank 1.85 1/11/2021 86158RAMI 561 1/11/2021 10/11/2017 1.850 NR NR 248,000.00 248,000,00 100 246,727.02 0.13 First Federal Savings Bank 1.9 1/15/2021 32021YDA8 565 1/15/2021 11/15/2017 1.900 NR NR 248,000.00 248,000.00 100 246,905.33 0.13 First Fanners Bank & Trust Company 1,9 1/21/20 320165HW6 571 1/21/2021 7/21/2017 1.900 NR NR 248,000.00 248,000.00 100 246,894.17 0.13 Lead Bank 1.7 2/9/2021 521680AE8 590 2/9/2021 8/9/2017 1.700 NR NR 248,000.00 248,000.00 100 246,065.85 0.13 Luana Savings Bank 1.7 2/11/2021 54910321-2 592 2/11/2021 8/11/2017 1.700 NR NR 248,000.00 248,000.00 100 246,061.88 0.13 Apex Bank 1.252/17/2021 03753XAEO 598 2/17/2021 8/17/2016 1.250 NR NR 248,000.00 248,000.00 100 244,245.28 0.13 US Alliance FCU NY 3 2/22/2021 90352RAB1 603 2/22/2021 6/22/2018 3.000 NR NR 249,000.00 249,000.00 100 252,252.19 0.13 First Security State Bank IA 2.85 2/22/2021 336386AX5 603 2/22/2021 6/22/2018 2.850 NR NR 249,000.00 249,000.00 100 251,647.37 0.13 National Cooperative Bank 1.5 3/9/2021 635573AH1 618 3/9/2021 3/9/2016 1.500 NR NR 248,D00.00 248,000.00 100 246,984.94 0.13 Triad Bank 1.854/12/2021 89579NBU6 652 4/12/2021 10/12/2017 1.850 NR NR 248,000.00 248,000.00 100 246,491.17 0.13 Gold Coast Bank 1.9 5/10/2021 38058KDU7 680 5/10/2021 11/9/2017 1.900 NR NR 248,000.00 248,000.00 100 246,643.94 0.13 The Lake Bank MN 2.9 5/17/2021 507515BE3 687 5/17/2021 6/22/2018 2.900 NR NR 249,000.00 249,000.00 100 252,218.33 0.13 Bank of the Pacific 1.25 5/24/2021 0642513CK3 694 5/24/2021 8/24/2016 1.250 NR NR 248,000.00 248,000.00 100 243,605.69 0.13 Ponce De Leon Federal Bank 1.9 5/26/2021 732333AG4 696 5/26/2021 5/26/2017 1.900 NR NR 248,000.00 248,000.00 100 246,606.74 0.13 Stock Yards Bank & Trust Co KY 2.9 6/14/2021 861026AAO 715 6/14/2021 6/14/2018 2.900 NR NR 246,000.00 246,000.00 100 249,290,25 0.13 First Tech Federal CU Palo Alto CA 3.05 6/14/2021 33715LBL3 715 6/14/2021 6/14/2018 3.050 NR NR 249,000.00 249,000.00 100 253,049.49 0.13 Citibank Sioux Falls SD 3 6/15/2021 17312QN47 716 6/15/2021 6/15/2018 3.000 NR NR 246,000.00 246,000.00 100 249,766.75 0.13 Eagle Bank Bethesda MD 2.9 6/15/2021 27002YDS2 716 6/15/2021 6/15/2018 2.900 NR NR 249,000.00 249,000.00 100 252,362.99 0.13 Country Bank NY 2.9 6/18/2021 22230PBS8 719 6/18/2021 6/20/2018 2.900 NR NR 249,000.00 249,000.00 100 252,354.78 0.13 RCB Bank Claremore OK 2.9 6/21/2021 74934YAJO 722 6/21/2021 6/20/2018 2.900 NR NR 249,000.00 249,000.00 100 252,362,99 0.13 Mercantil Bank Coral Gables FL 3 6/21/2021 58733AEX3 722 6/21/2021 6/21/2018 3.000 NR NR 246,000.00 246,000.00 100 249,796.27 0.13 The Business Bank of Saint Louis 1.8 6/23/2021 12325EHU9 724 6/23/2021 6/23/2017 1.800 NR NR 248,000.00 248,000.00 100 246,061.38 0.13 Towne Bank Portsmouth VA 3 6/28/2021 89214PBR9 729 6/28/2021 6/28/2018 3.000 NR NR 246,000.00 246,000.00 100 249,830.71 0.13 Nebraskal-and National Bank 1.85 6/28/2021 63970QFG6 729 6/28/2021 6/28/2017 1.850 NR NR 248,000.00 248,000.00 100 246,288.55 0.13 Winter Hill Bank, FSB 1.8 6/28/2021 975875AK1 729 6/28/2021 6/26/2017 1.800 NR NR 248,000.00 248,000.00 100 246,046.26 0.13 Central Federal S&L Assoc of Chicago 2.856/28 15347EAH2 729 6/28/2021 6/28/2018 2.850 NR NR 249,000.00 249,000.00 100 252,149.35 0.13 Marine Bank 1.85 6/29/2021 56817TAB7 730 6/29/2021 6/29/2017 1.850 NR NR 248,D00.00 248,000.00 100 246,285.58 0,13 Citizens State Bank 1.85 6/30/2021 17670DAD6 731 6/30/2021 6/30/2017 1.850 NR NR 248,000.00 248,000.00 100 246,282.35 0.13 Texas Exchange Bank 1.95 6/30/2021-18 88241TBP4 731 6/30/2021 6/30/2017 1.950 NR NR 248,000.00 248,000.00 100 246,766.94 0.13 Page 12 of 17 Page 13 of 17 Days To Maturity Settlement YTM @ Credit Credit Face Cost Value + Accrued % of Description CUSIP/ficker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Interest Cost Price Market Value Portfolio Central State Bank Iowa 1.85 7/14/2021 15523RBJ4 745 7/14/2021 7/14/2017 1.850 NR NR 248,000.00 248,000.00 100 246,238.70 0.13 Bankers Bank Madison 1M 1.9 7/14/2021 06610RAQ2 745 7/14/2021 7/14/2017 1.900 NR NR 248,000.00 248,000.00 100 246,486.21 0.13 FNB Bank, Inc/Romney 1.85 7/19/2021 30257JAC9 750 7/19/2021 7/19/2017 1.850 NR NR 248,000.00 248,000.00 100 246,222.83 0.13 Abacus Federal Savings Bank 1.95 7/21/2021 00257TAY2 752 7/21/2021 7/21/2017 1.950 NR NR 248,000.00 248,000.00 100 246,716.60 0.13 SpiritbankBristow OK1.98/11/2021-18 848608DB8 773 8/11/2021 8/11/2017 1.900 NR NR 248,000.00 248,000.00 100 246,412,80 0.13 Commercial Bank Alma Mi 1.4 8/16/2021 201282HD5 778 8/16/2021 8/16/2016 1.400 NR NR 248,000.00 248,000.00 100 243,813.02 0.13 Partners Bank of California 1.85 8/16/2021 70212YAW2 778 8/16/2021 8/15/2017 1.850 NR NR 248,000.00 248,000.00 100 246,140.00 0.13 JPMorgan Chase Bank NA 1.65 8/16/2021 48126XAH8 778 8/16/2021 8/16/2016 1.650 NR NR 248,000.00 248,000.00 100 244,135.91 0.13 Palmetto Heritage Bank and Trust 1.9 8/20/2021 69709QAM3 782 8/20/2021 8/21/2017 1.900 NR NR 248,000.00 248,000.00 100 246,381.06 0.13 Enerbank USA 1.45 8/26/2021 29266N31-18 788 8/26/2021 8/26/2016 1.450 NR NR 248,000.00 248,000.00 100 244,012.90 0.13 Keesler Federal CU 3 8/30/2021 49254FAQ9 792 8/30/2021 2/28/2019 3.000 NR NR 249,000.00 249,000.00 100 253,151.33 0.13 Uinta County State Bank 2.05 10/13/2021 903572CC7 836 10/13/2021 10/13/2017 2.050 NR NR 247,000.00 247,000.00 100 246,059.42 0.13 State Bank of Chinon 2 10/13/2021-18 85641 PDQO 836 10/13/2021 10/13/2017 2.000 NR NR 248,000.00 248,000.00 100 246,785.05 0,13 Northfield Bank 1.95 10/20/2021 66612ABV9 843 10/20/2021 11/1/2017 2.029 NR NR 248,000.00 247,414.99 99.7 246,484.72 0.13 Commerce Bank Geneva MN 2 11/26/2021-18 20056QQQ9 880 11/26/2021 8/25/2017 2.000 NR NR 248,000.00 248,000.00 100 246,679.15 0.13 Great Plains Bank 1.85 12/21/2021 39115UAZ6 905 12/21/2021 4/21/2017 1.850 NR NR 248,000.00 248,000.00 100 245,719.14 0.13 American Eagle Bank 2 12/30/2021 02564BCR0 914 12/30/2021 7/13/2017 2.000 NR NR 247,000.00 247,175.95 100 245,605.69 0.13 The Ohio Valley Bank Company 1,9 1/19/2022 677721CN0 934 1/19/2022 7/19/2017 1.900 NR NR 248,000.00 248,000.00 100 245,928.95 0.13 Nebraska State B&T Co. 1.95 2/21/2022 63969ACD4 967 2/21/2022 4/21/2017 1.950 NR NR 248,000.00 248,000.00 100 246,143.72 0.13 United Community Bank 2.05 4/12/2022- 18 90983WBN0 1,017 4/12/2022 10/12/2017 2.050 NR NR 248,000.00 248,000.00 100 246,670.47 0.13 BMO Harris Bank Step 4/13/2022-17 05581 WNM3 1,018 4/13/2022 4/13/2017 2.143 NR NR 248,000.00 248,000.00 100 247,703.89 0.13 International Bank of Chicago 2.1 4/20/2022-18 45906ABR7 1,025 4/20/2022 10/20/2017 2.100 NR NR 248,000.00 248,000.00 100 246,989.15 0.13 Celtic Bank 2.14/21/2022 15118RMF1 1,026 4/21/2022 4/21/2017 2.100 NR NR 248,000.00 248,000.00 100 246,979.73 0.13 The North Jackson Bank 2.05 5/9/2022 32063KAS1 1,044 5/9/2022 11/8/2017 2.050 NR NR 248,000.00 248,000.00 100 246,598.55 0.13 First State Bank of DeQueen Step 5/26/2022-18 336460CG3 1,061 5/26/2022 5/26/2017 2.077 NR NR 248,000.00 248,000.00 100 235,330.00 0.13 Farmers & Mechanics FS & LA 2 6/16/2022-17 307764AA8 1,082 6/16/2022 6/26/2017 2.053 NR NR 248,000.00 247,515.89 99.75 246,158.60 0.13 DNB First, National Association 2 6/23/2022 25590AAH3 1,089 6/23/2022 6/23/2017 2.000 NR NR 248,000.00 248,000.00 100 246,131.32 0.13 National Bank of Commerce 2.15 6/27/2022-17 633368EK7 1,093 6/27/2022 6/27/2017 2.150 NR NR 248,000.00 248,000.00 100 247,205.16 0.13 Traverse City State Bank 2 6/28/2022 894333FFS 1,094 6/28/2022 6/28/2017 2.000 NR NR 248,000.00 248,000.00 100 246,120.41 0.13 First National Bank of Syracuse 2.1 6/28/2022-17 334342CA8 1,094 6/28/2022 6/28/2017 2.100 NR NR 248,000.00 248,000.00 100 246,841.10 0.13 First State Community Bank 2.1 6/30/2022-18 33708UCF4 1,096 6/30/2022 6/30/2017 2.100 NR NR 248,000.00 248,000.00 100 246,830.18 0.13 Barclays Bank Delaware 2.2 7/12/2022 06740KKD8 1,108 7/12/2022 7/12/2017 2.200 NR NR 247,000.00 247,000.00 100 246,471.91 0.13 First Internet Bank of Indiana 2.05 7/14/2022 32056GCQ1 1,110 7/14/2022 7/14/2017 2.050 NR NR 248,000.00 248,000.00 100 246,362.70 0.13 Fidelity Coop Bank Leominster Step 8/9/2022-17 316077CV6 1,136 8/9/2022 8/9/2017 1.977 NR NR 248,000,00 247,008.00 99.6 247,543.43 0.13 330459BUl 1,145 8/18/2022 8/18/2017 2.000 NR NR 248,000.00 248,000.00 100 245,732.29 0.13 Page 13 of 17 Page 14 of 17 Days To Maturity Settlement YTM @ Credit Credit Face Cost Value + Accrued % of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Interest Cost Price Market Value Portfolio The First National Bank of Mayfield 2 8/18/2022 First Premier Bank 2.05 8/22/2022 33610RQY2 1,149 8/22/2022 8/21/2017 2.050 NR NR 248,000.00 248,000.00 100 246,081.47 0.13 Alliance Credit Union 2.25 10/13/2022 01859BAA3 1,201 10/13/2022 10/13/2017 2,250 NR NR 248,000.00 248,000.00 100 247,241.12 0.13 Allegiance Bank 2.21113/2022 01748DAY2 1,222 11/3/2022 11/3/2017 2.200 NR NR 248,000.00 248,000.00 100 246,700.23 0.13 First Bank of Highland Park 2.2 11/8/2022 319141JF5 1,227 11/8/2022 11/8/2017 2.200 NR NR 248,000.00 248,000.00 100 246,663.03 0.13 Mountain America Credit Union 2.3 11/8/2022 62384RAC0 1,227 11/8/2022 11/8/2017 2.300 NR NR 248,000.00 248,000.00 100 247,464.07 0.13 Signature Bank Chicago 2.15 11/8/2022 82669VBY6 1,227 11/8/2022 11/8/2017 2.150 NR NR 248,000.00 248,000.00 100 246,264.00 0.13 Sallie Mae Bank 3 4/18/2023 795450M93 1,388 4/18/2023 4/18/2018 3.000 NR NR 245,000.00 245,000.00 100 249,474.93 0.13 UBS Bank USA Salt Lake City UT 3.25 6/13/2023 90348JCW8 1,444 6/13/2023 6/13/2018 3.250 NR NR 248,000.00 248,000.00 100 254,641.44 0.13 Toyota Financial Savings Bank 3,4 7/24/2023-19 89235MJA0 1,485 7/24/2023 7/23/2018 3.400 NR NR 245,000.00 245,000.00 100 245,161.21 0.13 Community Financial Services Bank 3.25 7/2512023-1 20364ACF0 1,486 7/25/2023 7/25/2018 3.250 NR NR 249,000.00 249,000,00 100 249,178.28 0.13 CresCom Bank 2.8 3/28/2024-19 225862EA5 1,733 3/28/2024 3/29/2019 2.800 NR NR 249,000.00 249,000.00 100 249,109.06 0.13 Delaware State Police Federal Credit Union 3 3/29/ 246399AB5 1,734 3/29/2024 3/29/2019 3.000 NR NR 246,000.00 246,000,00 100 250,010.29 0.13 Sub Total / Average Certificate of Deposit - Negotiable 30% 585 1.969 36,452,000.00 36,450,114.83 99.995558 36,368,660.85 18.95 Corporate Bonds 15% Walmart Inc 1.75 10/9/2019 931142DY6 101 10/9/2019 7/16/2018 2.371 Moodys-Aa2 S&P -AA 1,000,000.00 997,215.28 99.25 998,302.00 0.52 Wells Fargo Bank 2.15 12/6/2019 94988J5G8 159 12/6/2019 7/16/2018 2.718 Moodys-Aa2 S&P -A+ 1,000,000.00 994,688.89 99,23 999,060.00 0.52 American Express Credit Corp 2.6 9/14/2020-20 0258MODX4 442 9/14/2020 6/13/2018 3.000 Moodys-Aa2 S&P -A- 2,000,000.00 1,995,505.58 99.132501 2,007,490.00 1.03 Automatic Data Processing2.25 9/15/2020 053015AD5 443 9/15/2020 6/13/2018 2.617 Moodys-Aa3 S&P -AA 1,000,000.00 997,500.00 99.2 1,000,633.00 0.52 COCO-COLA CO 1.87510/27/2020 191216BT6 485 10/27/2020 7/13/2017 1.875 Moodys-Aa3 S&P -AA- 1,000,000.00 1,003,958.33 100 997,843.00 0.52 Microsoft 211/3/2020-20 594918BG8 492 11/3/2020 11/6/2015 1.929 Moodys-Aaa S&P -AAA 1,000,000.00 1,003,546.67 100.338 999,602.00 0.52 Walmart Inc 1,9 12/15/2020 931142EA7 534 12/15/2020 6/13/2018 2.622 Moodys-Aa2 S&P -AA 1,000,000.00 994,897.22 98.26 998,204.00 0.51 Apple Inc 2.25 2123/2021-21 037833BS8 604 2/23/2021 12/2/2016 2.125 Moodys-Aal S&P -AA+ 2,000,000.00 2,022,375.00 100,5 2,007,144.00 1.04 Berkshire Hathaway Inc 2,2 3/15/2021 084670BQ0 624 3/15/2021 6/13/2018 2.654 Moodys Aa2 S&P -AA 1,000,000.00 993,377.78 98.8 1,002,770.00 0.51 Pfizer Inc 2.2 12/15/2021 717081DZ3 899 12/15/2021 7/16/2018 2.944 Moodys-At S&P -AA 1,000,000.00 977,894.44 97.6 1,000,893.00 0.51 Toyota Motor Credit Crop 2.61111/2022 89236TDP7 926 1/11/2022 7/13/2017 2.200 Moodys-Aa3 S&P -AA- 1,000,000.00 1,017,172.28 101.702784 1,010,463.00 0.53 Procter & Gamble Co 23 2/6/2022 742718DY2 952 2/6/2022 7/16/2018 2.902 Moodys-Aa3 S&P -AA- 1,000,000.00 990,022.22 97.98 1,007,909,00 0.51 Chevron Corp 2.498 3/3/2022 166764BN9 977 3/3/2022 8/10/2017 2.101 Moodys-Aa2 S&P -AA- 2,000,000.00 2,056,188.11 101.72 2,020,382.00 1,06 Apple Inc 2.3 5/11/2022 037833CQ1 1,046 5/11/2022 6/26/2017 2.133 Moodys-Aal S&P -AA+ 2,000,000.00 2,021,152.54 100.770127 2,013,702.00 1.05 Barclays Bank PLC Step 8/25/2022-18 06744CFN6 1,152 8/25/2022 8/25/2017 2.440 Moodys-A1 S&P -A- 2,000,000.00 2,000,000.00 100 1,979,032.00 1.04 Toyota Motor Credit Corp 2,159/8/2022 89236TEC5 1,166 9/8/2022 11/1/2017 2.301 Moodys-Pa3 S&P -AA- 2,500,000.00 2,490,663.19 99.31 2,502,877.50 1.29 IBM Credit LLC 2.2 9/8/2022 44932HAC7 1,166 9/8/2022 10/3/2017 2.301 Moodys-A1 S&P -A+ 1,000,000.00 996,827.78 99.53 997,526.00 0.52 VISA Inc 2.159/15/2022 92826CAG7 1,173 9/15/2022 10/3/2017 2.101 Moodys-A1 S&P -A+ 1,000,000.00 1,003,615.32 100.230143 1,004,187.00 0.52 Toyota Motor Credit Corp 3.45 9/20/2023 89236TFN0 1,543 9/20/2023 2/28/2019 3.001 Moodys-Aa3 S&P -AA- 1,000,000.00 1,034,141.67 101.9 1,046,908,00 0.53 Sub Total / Average Corporate Bonds 15% 819 2.413 25,500,000.00 25,590,742.30 99.877252 25,594,927.50 13.24 Municipal Securitlea 15% / 5% 62719PAV8 32 8/1/2019 10/18/2017 1.802 NR S&P -A 350,000.00 349,989.50 99.997 349,772.50 0.18 Page 14 of 17 US Agency Bonds / Notes 75% FNMA 1.18/23/2019-17 3136G32A2 Days To Maturity Settlement YTM @ Credit Credit Face Cost Value + Accrued 100 4,991,675.00 % of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Interest Cost Price Market Value Portfolio Murrieta Redevelopment Agency 1.8 3133EFH59 246 3/2/2020 3/2/2016 1.380 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 1,992,020.00 1.04 8/1/2019 3133EJGJ2 443 9/15/2020 6/13/2018 2.602 Moodys-Aaa S&P -AA+ 1,DDO,000.00 1,003,137,78 99.71 1,000,017.00 0.52 Fresno County Pension2.488 8/15/2019 358266CQ5 46 8/15/2019 9/8/2015 2.288 NR S&P -AA- 1,000,000.00 1,007,845.56 100.75 1,000,240.00 0.52 California ST 1.84/1/2020 13063CSQ4 276 4/1/2020 4/29/2015 1.700 Moodys-Aa3 S&P -AA- 2,ODO,000.00 2,009,380.00 100.469 1,997,920.00 1.04 CalHomia ST 2.625 4/1/2021 13063DAC2 641 4/1/2021 4/27/2017 2.003 Moodys-Aa3 S&P -AA- 1,000,000.00 1,023,400.00 102.34 1,012,610.00 0.53 Murrieta Redevelopment Agency 2.25 8/1/2021 62719PAX4 763 8/1/2021 10/18/2017 2.319 NR S&P -A 350,000.00 349,135.50 99.753 350,311.50 0.18 Santa Rosa CA REGL Resource Rev 2.2 8/1/2021 802629AW5 763 8/1/2021 10/3/2017 2.001 Fitch -AA S&P -AA+ 980,000.00 989,489.67 100.73 982,861.60 0.51 Industry Calif Sales Tax Rev 2.75 1/1/2022 45656RDV1 916 1/1/2022 5/17/2017 2.451 Moodys-At S&P -AA- 1,000,000.00 1,014,604.17 101.3 1,014,580.00 0.53 California ST 2.367 4/1/2022 13063DADO 1,006 4/1/2022 4/27/2017 2.152 Moodys-Aa3 S&P -AA- 1,000,000.00 1,010,000.00 101 1,011,560,00 0.53 Murrieta Redevelopment Agency 2.5 8/1/2022 62719PAY2 1,128 8/1/2022 10/18/2017 2.559 NR S&P -A 250,000.00 249,345.00 99.738 252,002.50 0.13 Santa Rosa CA REGI. Resources Rev 2.4 8/1/2022 802629AX3 1,128 8/1/2022 10/3/2017 2.202 Fitch -AA S&P -AA+ 500,000.00 505,800.00 100.9 505,210.00 0.26 California State University 3,054 11/1/2022 13077DFD9 1,220 11/1/2022 8/2/2018 3.054 Moodys-Aa2 S&P -AA- 250,000.00 250,000.00 100 258,240,00 0.13 Sub Total/Average /5h Municipal Securities 15S/e / 5 3134GAZR8 615 12/30/2021 12/30/2016 2.097 S&P -AA+ 8,680,000.00 8,768,989.40 100.850164 8,736,308.10 4.55 US Agency Bonds / Notes 75% FNMA 1.18/23/2019-17 3136G32A2 64 8/23/2019 8/30/2016 1.100 Moodys-Aaa S&P -AA+ 5,000,000,00 5,000,000.00 100 4,991,675.00 2.60 FNMA 1.65 1/27/2020-17 3136GOS46 211 1/27/2020 2/21/2017 1.650 Moodys-Aaa S&P -AA+ 2,ODO,000,00 2,002,200.00 100 1,994,220.00 1.04 FFCB 1.38 3/2/2020-17 3133EFH59 246 3/2/2020 3/2/2016 1.380 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 1,992,020.00 1.04 FFCB 2.47 9/15/2020-18 3133EJGJ2 443 9/15/2020 6/13/2018 2.602 Moodys-Aaa S&P -AA+ 1,DDO,000.00 1,003,137,78 99.71 1,000,017.00 0.52 FFCB 1.77 12!1/2020-17 3133EGR49 526 12/7/2020 12/7/2016 1.770 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 1,998,106,00 1.04 FFCB 1.91 1/20/2021-17 3133EHGHO 570 1/20/2021 4/20/2017 1.910 Moodys-Aaa S&P -AA+ 1,500,000.00 1,500,000.00 100 1,500,004.50 0.78 FHLB 1.375 2/18/2021 313OA7CV5 599 2/18/2021 4/4/2016 1.328 Moodys-Aaa S&P -AA+ 1,ODO,000.00 1,003,956.94 100.22 992,658.00 0.52 FNMA Step 3/15/2021-17 3136G3AY1 624 3/15/2021 3/15/2016 2.004 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 2,015,342.00 1.04 FHLMC Step 3/23/2021-16 3134G8NQ8 632 3/23/2021 4/4/2016 2.169 Moodys-Aaa S&P -AA+ 1,050,000.00 1,050,401.04 100 1,050,312.90 0.55 FHLMC Step 3/30/2021-16 3134G8NV7 639 3/30/2021 3/30/2016 2.118 Moodys-Aaa S&P -AA+ 1,500,000.00 1,500,000.00 100 1,499,022.00 0.78 FFCB 2 4/5/2021-18 3133EHEG4 645 4/5/2021 4/5/2017 2.000 Moodys-Aaa S&P -AA+ 3,500,000.00 3,500,000.00 100 3,500,031.50 1.82 FFCB 1.934/20/2021-18 3133EHGG2 660 4/20/2021 4/20/2017 1.930 Moodys-Aaa S&P -AA+ 1,500,000.00 1,500,000.00 100 1,493,929.50 0.78 FNMA 1.45/25/2021-17 3136G3U94 695 5/25/2021 8/25/2016 1.400 Moodys-Aaa S&P -AA+ 1,850,000.00 1,850,000.00 100 1,834,682.00 0.96 FHLMC 2 7/27/2021-17 3134GBXA5 758 7/27/2021 7/27/2017 2.000 Moodys-Aaa S&P -AA+ 1,000,000.00 1,000,000.00 100 1,000,082.00 0.52 FHLMC 2.05 12/30/2021-17 3134GAZR8 914 12/30/2021 12/30/2016 2.050 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,ODO.00 100 2,000,446.00 1.04 FFCB 1.95 3/14/2022-17 3133EHYQO 988 3/14/2022 11/1/2017 2.082 Moodys-Aaa S&P -AA+ 2,000,000.00 1,994,091.67 99.45 2,000,016.00 1.03 FFCB 23/14/2022-17 3133EHMH3 988 3/14/2022 6/22/2017 2.023 Moodys-Aaa S&P -AA+ 2,000,000.00 1,998,888.89 99.9 2,000,022.00 1,04 FFCB 2 4/5/2022-17 3133EHQG1 1,010 4/5/2022 7/11/2017 2.078 Moodys-Aaa S&P -AA+ 1,000,000.00 996,833.33 99.65 1,000,011.00 0.52 FHLB 2.14/26/2022-19 3130AB3U8 1,031 4/26/2022 4/26/2017 2.100 NR S&P -AA+ 4,000,000.00 4,000,000,00 100 4,033,852.00 2.08 FHLB 2.084/27/2022-18 313OA86Q4 1,032 4/27/2022 4/27/2017 2.080 Moodys-Aaa S&P -AA+ 1,500,000.00 1,500,000.00 100 1,500,018,00 0.78 FHLB 2.1 5/18/2022-18 3130ABCS3 1,053 5/18/2022 5/18/2017 2.100 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 2,000,028.00 1.04 FHLMC 2.05 5/25/2022-18 3134GBMB5 1,060 5/25/2022 5/25/2017 2.050 Moodys-Aaa S&P -AA+ 1,000,000.00 1,000,000.00 100 1,008,167.00 0.52 FHLMC 2.16/29/2022-17 3134GBTL6 1,095 6/29/2022 6/29/2017 2.100 Moodys-Aaa S&P -AA+ 2,000,000,00 2,000,000.00 100 2,001,280.00 1.04 FHLMC Step 7/5/2022-17 3134GBYK2 1,101 7/5/2022 7/11/2017 2.048 Moodys-Aaa S&P -AA+ 1,000,000.00 1,000,333.33 100 1,000,016.00 0,52 FHLMC 2 7/19/2022-17 3134GBVF6 1,115 7/19/2022 7/19/2017 2.000 Moodys-Aaa S&P -AA+ 2,000,000,00 2,000,000.00 100 2,000,112.00 1.04 FHLMC 2.25 7/26/2022-18 3134GBYP1 1,122 7/26/2022 7/26/2017 2.250 Moodys-Aaa S&P -AA+ 2,000,000.00 2,000,000.00 100 2,000,026.00 1.04 Page 15 of 17 Page 16 of 17 Days To Maturity Settlement YTM @ Credit Credit Face Cost Value + Accrued % of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Interest Cost Price Market Value Portfolio FHLMC 2 7127/2022-18 3134GBWQ1 1,123 7/27/2022 7/27/2017 2.042 Moodys-Aaa S&P -AA+ 2,000,000,00 1,996,000,00 99.8 2,015,904,00 1.04 FHLMC Step 8/22/2022-17 3134GBB27 1,149 8/22/2022 8/22/2017 2.144 Fitch -AAA S&P -AA+ 2,000,000.00 2,000,000.00 100 2,000,270,00 1.04 FHLB Step 8/2412022-17 3130ABZW9 1,151 8/24/2022 8/24/2017 2.071 Moodys-Aaa S&P -AA+ 1,000,000.00 1,000,000.00 100 1,000,015.00 0,52 FHLMC 2.05 9/29/2022-17 3134GBH39 1,187 9/29/2022 10/31/2017 2.163 Moodys-Aaa S&P -AA+ 2,000,000.00 1,993,144.44 99,475 2,001,074.00 1.03 FHLB Step 10/18/2022-18 3130ACGV48 1,206 10/18/2022 10/18/2017 2.144 Moodys-Aaa S&P -AA+ 1,500,000.00 1,500,000.00 100 1,500,120.00 0.78 FNMA 2.2510/27/2022-18 3136G4PV9 1,215 10/27/2022 10/27/2017 2,250 Moodys-Aaa None 2,000,000.00 2,000,000.00 100 2,000,482.00 1.04 FHLMC 2.411/28/2022-18 3134GBY63 1,247 11/28/2022 11/28/2017 2.400 Moodys-Aaa S&P -AA+ 3,000,000.00 3,000,000.00 100 2,995,143.00 1.56 FHLMC 2.75 3/27/2024-19 3134GTAZ6 1,732 3/27/2024 3/27/2019 2.750 S&P -AA+ Moodys-Aaa 700,000.00 700,000.00 100 700,678.30 0.36 Sub Total / Average US Agency Bonds I Notes 76% 832 1.955 63,600,000.00 63,588,987.42 99.96037 63,619,782.70 33.04 Total / Average 2.160 523 192,368,870.94 192,625,704.89 100.004815 192,455,550.09 100 Page 16 of 17 City of Tustin Transactions Summary Monthly Investment Transactions Group By: Action Portfolio / Report Group: All Portfolios Begin Date: 03/31/2019, End Date: 06/30/2019 Page 17 of 17 YTM @ Settlement Description CUSIPTcker Portfolio Name Cost Trade Date Date Maturity Date Face Amount/Shares Principal Price Interest/Dividends Total Matured FHLMC 1.2 5/16/2019-17 3134G9DK0 Fixed Income - US Agency Bonds / Notes 0.000 5/16/2019 5/16/2019 5/16/2019 1,000,000.00 1,000,000.00 0 0.00 1,000,000.00 Citizens National Bank of Bluffton 1.55 5/22/2019 175144DD3Fixed Income - Certificate of 0.000 5/22/2019 5/22/2019 5/22/2019 248,000.00 248,000,00 0 0.00 248,000.00 Deposit Negotiable North American Savings Bank 1.6 5/24/2019 657156EL5 Fixed Income - Certificate of Deposit Negotiable 0.000 5/24/2019 5/24/2019 5/24/2019 248,000,00 248,000,00 0 0.00 248,000.00 First Capital Bank VA 1.5 5/28/2019 31944FBH2 Fixed Income - Certificate of Deposit Negotiable 0.000 5/28/2019 5/28/2019 5/28/2019 248,000.00 248,000.00 0 0.00 248,000.00 First Business Bank WI 1.45 5/28/2019 31938QL69 Fixed Income - Certificate of Deposit Negotiable 0.000 5/28/2019 5/28/2019 5/28/2019 248,000.00 248,000.00 0 0.00 248,000.00 Synchrony Bank UT (GE) 2 5/30/2019 3616OKL60 Fixed Income - Certificate of Deposit Negotiable 0.000 5/30/2019 5/30/2019 5/30/2019 248,000.00 248,000.00 0 0.00 248,000.00 Barclays Bank PLC 2 5/31/2019-18 06741VUWO Fixed Income - Corporate Bonds 0.000 5/31/2019 5/31/2019 5/31/2019 1,000,000.00 1,000,000.00 0 0.00 1,000,000.00 Kansas State Bank of Manhattan 1.55 5/31/2019 50116CAZ2 Fixed Income - Certificate of Deposit Negotiable 0.000 5/31/2019 5131/2019 5/31/2019 248,000.00 248,000.00 0 0.00 248,000.00 Sub Total / Average Matured 3,488,000.00 3,488,000.00 0.00 3,488,000.00 Page 17 of 17 PLIBLIC AGENCY RETIREMENT SERVICES i PARS CITY OF TUSTIN PARS Post -Employment Benefits Trust Jeffrey Parker City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Account Report for the Period 7/1/2018 to 6/30/2019 Investment Selection Source OPEB City of Tustin - OPEB PENSION City of Tustin - Pension Investment Objective Source Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that OPEB dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth ofprincipal and income. It is expected that PENSION dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Investment Return Annualized Return Source 1 -Month 3 -Months 1 -Year 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB 3.73% 2.96% 6.44% 6/26/2018 PENSION 3.74% 2.95% 6.85% 6/26/2018 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave.. Suite t00, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Beginning Balance as Ending of Balance as of Source 7/1/2018 Contributions Earnings Expenses Distributions Transfers 6/30/2019 OPEB $1,003,282.84 $500,000.00 $83,277.35 $6,106.25 $0.00 $0.00 $1,580,453.94 PENSION $5,596,340.49 $0.00 $381,338.40 $30,201.73 $0.00 $0.00 $5,947,477.16 Totals $6,599,623.33 $500,000.00 $464,615.75 $36,307.98 $0.00 $0.00 $7,527,931.10 Investment Selection Source OPEB City of Tustin - OPEB PENSION City of Tustin - Pension Investment Objective Source Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that OPEB dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth ofprincipal and income. It is expected that PENSION dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Investment Return Annualized Return Source 1 -Month 3 -Months 1 -Year 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB 3.73% 2.96% 6.44% 6/26/2018 PENSION 3.74% 2.95% 6.85% 6/26/2018 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave.. Suite t00, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org H IGHMRK® CAPITAL MANAGEMENT WHY THE PARS DIVERSIFIED MODERATE PORTFOLIO? Comprehensive Investment Solution HighMark® Capital Management, Inc.'s (HighMark) diversified investment portfolios are designed to balance return expectations with risktolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index -based securities, including exchange -traded funds. Both investment options leverage HighMark's active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification - asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. INVESTMENT OBJECTIVE To provide current income and moderate capital appreciation. It is expected that dividend and o interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. Conservative Efficient Frontier Capital Appreciation Balanced Moderate Moderately Conservative Risk (Standard Deviation) ASSET ALLOCATION - MODERATE PORTFOLIO Strategic Range Equit"� JW0 - 60% Fixed Income 40-60% Cas 0 - 20% Policy Tactical 50% - 45% 46% 0 ANNUALIZED TOTAL RETURNS Emross of beddednvestment Fund Fees)Management Fees, but Net of HighMark Plus Composite (Active) Index Plus Composite (Passive) 2009 Current Quarter* i 8.24% Current Quarter* 17% Blended Benchmark*, ** 7.94% Blended Benchmark*, ** 7.94% Year To Date* 8.24% Year To Date*- 8.17% Blended Benchmark*, ** 7.94% Blended Benchmark*, ** 7.94% 1 Ye 4.64% 1 Ym�, .88% Blended Benchmark** 5.18% Blended Benchmark** 5.18% 3 Ye 7.53% 3 Ye 6.91 % Blended Benchmark** 7.13% Blended Benchmark** 7.13% 5 Ye 2018 `5 Year 2018 Blended Benchmark** 5.62% Blended Benchmark** 5.62% Blended Benchmark** 8.80% Blended Benchmark** 8.80% * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012- Present: 26.5 % S&P500, 5% Russell Mid Cap, 7.5% Russell 2000,3.25% MSCI EM (net), 6% MSCI EAFE (net), 33.50% BBG Barclays US Agg, 10% ICE BofAML 1-3 Yr US Corp/Gov't, 1.50% ICE BofAML US High Yield Master II, 1.75% Wilshire REIT, and 5% FTSE 1 Mth T -Bill. From 4/1/2007- 9/30/2012: the blended benchmarkwas 43% S&P 500; 2% Russell 2000, 5% MSCI EAFE (net), 15% ICE BofAML 1-3 Year Corp./Govt, 30% BBG Barclays US Agg, 5% FTSE 1 Mth T -Bill. Prior to April 2007: the blended benchmark was 50% S&P 500,15% ICE BofAML 1-3Yr Corp/Gov, 30% BBG Barclays US Agg, and 5% FTSE 1 Mth T -Bill. (Gross of Investment Management Fees, but Net of Embedded ANNUAL RETURNS Fund Fees) HighMark Plus Composite (Active) Index Plus Composite (Passive) 2008 -22.880/.P 200 2009 21.47% 2009 16.05% 2010 12.420 2010 2011 0.55% 2011 2.29% 2012 12.250/81 2012 2013 13.06% 2013 12.79% 2014 4.84% 2014 5.72% 2015 0.14% 2015 -0.52% 2016 6.45% 2016 7.23% 2017 13.19% 2017 11.59% 2018 -4.03% 2018 -4.03% PORTFOLIO FACTS HighMark Plus (Active) Index Plus (Passive) Composite Inception Date 10/2004 Composite Inception Date 05/2006 No of Holdings in Portfolio 18 No of Holdings in Portfolio 12 HOLDINGS HighMark Plus (Active) Columbia Contrarian Core 13 Vanguard Growth & Income Adm Dodge & Cox Stock Fund Harbor Capital Appreciation - Retirement T. Rowe Price Growth Stock - I iShares Russell Mid -Cap ETF Vanguard Real Estate ETF Index Plus (Passive) iShares Core S&P 500 ETF iShares S&P 500 Value ETF iShares S&P 500 Growth ETF iShares Russell Mid -Cap ETF Vanguard Real Estate ETF iShares Russell 2000 Value ETF iShares Russell 2000 Growth ETF Undiscovered Managers Behavioral Value -R6 iShares MSCI EAFE ETF Victory RS Small Cap Growth - R6 Vanguard FTSE Emerging Markets ETF DFA Large Cap International Portfolio Vanguard Short -Term Invest -Grade Adm Dodge & Cox International Stock MFS International Growth - R6 Hartford Schroders Emerging Markets Eq Vanguard Short -Term Invest -Grade Adm PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z STYLE Intl Stocks 10.0% Mid Ca{ 4.0% Large Cap Growth 5.1% Large Cal 15.01 iShares Core U.S. Aggregate First American Government Obligations Z Holdings are subject to change at the discretion of the investment manager. Real Estate arae Can Value 2.4% 9.7% Interm-Term Bond 36.4% The performance records shown represent size -weighted composites of tax exempt accounts that meet the following criteria Accounts are managed by HighMark's Portfolio Management Group (PMG) with full investment authority according to the PARS Moderate active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviserto US Bankto manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub -advised by HighMark under its sub -advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio's returns. Assuming an investment for five years, a 5% annual total return, and an annual sub -advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade -date accounting. Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float - adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float -adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid - cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small -cap segment of the U.S. equity universe. The ICE BofAML US High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg Barclays U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofAML 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofAML U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1 -Month Treasury Bill Index tracks the yield of the 1 -month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client's investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.