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HomeMy WebLinkAbout05 QUARTERLY INVESTMENT REPORT DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E Agenda Item 5 4n� Reviewed: AGENDA REPORT City Manager �� Finance Director MEETING DATE: AUGUST 18, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: JASON AL-IMAM, FINANCE DIRECTOR/CITY TREASURER SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY SUMMARY: 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, 2020 is rendered. DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY August 18, 2020 Page 2 of 3 The City's total cash and investments as of June 30, 2020 were $152 million, a decrease of $41 million from June 30, 2019 total cash and investments of$193 million. The decrease in cash and investments of$41 million is primarily due to the following significant outflows: • $35 million for various budgeted construction projects, including infrastructure at the Legacy development. • $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 2019-20 was $158 million with an average weighted portfolio yield of 1.91% and average weighted days to maturity of 331 days. 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 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 2019-20 were $3.3 million, a $0.6 million decrease in interest earnings from fiscal year 2018-19. Fiscal year 2018-19 interest earnings were$3.9 million. This decrease in revenue was primarily due to the lower average cash balances ($54 million decrease). Adding to the decrease was the decline in averaged weighted portfolio yield (0.2% decrease) caused by the declining interest rate environment during most of fiscal year 2020. Duration decreased 238 days as compared to the prior year, from the volatile cash flow needs from the large construction projects taking place currently. In June 2018, the City made a one-time contribution of $5.6 million into a Pension Trust, which is held by Public Agency Retirement Services (PARS). The Pension Trust provides for rate stabilization since Pension Trust assets can be used to offset unanticipated increases in CalPERS pension costs. The City has also made $2 million in contributions into an Other Post-Employment Benefits (OPEB) Trust, which is set-aside for future retiree healthcare costs. Pension and OPEB Trust assets are managed in a customized DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY August 18, 2020 Page 3 of 3 investment strategy that balances risk and return and provides for diversification. The Pension Trust had earnings of approximately $235,000 (4.55%) for the fiscal year-to-date (July 1, 2019 through June 30, 2020). The OPEB Trust also had earnings of approximately $86,000 (4.85%)for the fiscal year-to-date. Trust assets will continue to be monitored, with quarterly reviews with our investment advisor. 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. g."r,, 611—y. 1� I,c,is� Jason AI-Imam Jenny Leisz Finance Director/City Treasurer Deputy Director - Financial Services Attachment: June 30, 2020 Quarterly Investment Report PARS Trust Statement as of June 30, 2020 PARS Moderate Fact Sheet Q1 2020 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7- 5D01F1E A746C 'e Y U u Treasurer's Quarterly Inves'tm:ent Rpport June 3 �� , 2020x' � v�-;�, Iry lap l s �� '�� �� I• , .� ��i � Ili+�l��`' 1 - rr ._ APt lit 66 NMI. n .. AC3DC8B6-AED5-4OF9-A7F7-A746C5DOlFlE CITY OF &YMonthly Investment Report G� June 30,2020 PERFORMANCE Weighted Average-Maturity Weighted Average-Yield to Maturity Page 1 of 19 tl�r�1 z.7o% 900 2.60% _.. ..._..... .. ....._..__._.. 2.so% 2.10% j 700 2.00% 1.10% 300 1.00% 0.90% 0.80% 200 0.70% 0.60% O.so% 100 0.40% 0.30% 1 1 1 0 W 6 0 0 0 9 9 0 0 O~ 01 Oti 01 01 01 Oti 01 01 01 O~ Oti 01" 0.00% ��City of Tustin �NLAIF Yield(%) SUS Treasury/2 yr DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E CITY OF TUSTIN Monthly Investment Report June 30,2020 DIVERSIFICATION DIVERSIFICATION Investment Portfolio/Cost Value$152,173,983 Investment Portfolio/Cost Value$192,525,705 Negotiable Corporate Bonds Certificate of $25,590,742 Deposit 13.29% $36,450,115 Liquid(Daily) 18.93% $97,482,823 64.06% Municipal Bonds Corporate Bonds $8,758,989 $21,598,838 4.55% Liquid(Daily) 14.19 $58,136,571 30.20% Federal Agencies $63,588,987 US Treasury 33.03":, $0 0.00% Negotiable Certificate Federal Agencies of Deposit $9,849,957 - Municipal Bonds 6 47% US Treasury $17,850,591 $5,391,774 11.73% 3.54% $0 0.00% Page 2 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01F1E CITY OF TUSTIN Monthly Investment Report June 30,2020 Maturity Distribution USTreasury - - - I - I - - - 0.000% Federal Agencies 1,003,957 1,850,000 5,000,000 1,996,000 - 9,849,957 6.47% Municipal Bonds - 1,023,400 3,363,229 1,005,145 - 5,391,774 3.54% Commercial Paper - - - - 0.00% Certificate of Deposit - - - - - - - - 0.00% Negotiable Certificate of Deposit 1,241,000 1,489,000 2,234,000 4,710,000 5,206,591 2,724,000 246,000 17,850,591 11.73% Corporate Bonds 2,993,006 3,002,402 3,015,753 - 7,062,430 4,491,106 1,034,142 21,598,838 14.19% Liquid(Daily) 97,482,823 - - - - - - 97,482,823 64.06% Total 101,716,828 4,491,402 6,253,710 7,583,400 20,632,250 10,216,251 1,280,142 152,173,983 100.000% Liquidity Distribution 70.00% .0.00 , Orange County Investment Pool 50.00% E Local Agency Investment Fund 0 Investments 40.00% m California Asset Management Program 3000% Bank of America-Checking 00 -00 Up to I Year 1-2 Years 2-3 Years 3-4 Years Page 3 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01F1E CITY OF TUSTIN Monthly Investment Report June 30,2020 HoldingsMaximum Maximum% Maximum% Minimum % Investment Type Maturity Invested Compliance Municipal Bonds* 5 year 30% 5% N/A 3.54%, $5,391,774 Yes U.S.Treasuries and General Obligations 5 year 100% 100% N/A 0.00% $0 Yes Federal Agency or US government sponsored 5 year 100% 50% N/A 6.47% $9,849,957 Yes enterprise Banker's Acceptance* 180 days 30% 5% N/A 0.00% $0 Yes Commercial Paper* 270 days 25% 5% A-1/P-1 plusA long term 0.00% $0 Yes Negotiable Certificates of Deposit 5 year 30% 5% N/A 11.73% $17,850,591 Yes Repurchase Agreements(102% 1 year 30% 5% N/A 0.00% $0 Yes Collateralized)* Medium-Term(Corporate)Notes* 5 year 20% 5% A 14.19% $21,598,838 Yes Money Market Mutual Funds N/A/2(A)7 20% 30% AAA/AAA 0.00% $0 Yes Eligible Shares of beneficial interest by a JPA 5 year 100% 50% N/A 15.11% $22,994,603 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 Max pemitted by Max permitted by Orange County Investment Pool N/A County Tresurer County Treasurer N/A 0.75% $1,137,736 Yes Local Agency Investment Fund N/A Maxpemitted by Max permitted by State N/A 47.54% $72,343,758 Yes State Tresurer Treasurer Bank of America(General Checking Account) N/A N/A N/A N/A 0.66% $1,006,725 Yes Total Invested $152,173,983 Combined total limitation(total classes with*) 30% 17.74% $26,990,612 Page 4 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-4OF9-A7F7-A746C5D01F1E CITY OF TUSTIN Monthly Investment Report June 30,2020 COMPLIANCE Investment Policy/ Corporate Bonds Corporate Bonds are required,at Settlement Date,to have an"A"rating from one of the three rating agencies. Rating Current Rating Prior Month Rating CUSIP Face Amount Settlement Date Moody's S&P Fitch Moody's S&P Fitch Compliance ADP 053015AD5 1,000,000 AA Aa3 AA NR Aa3 AA NR Yes American Express 0258MODX4 2,000,000 A- A2 A- A A2 A- A Yes Apple Inc. 037833B58 2,000,000 AA+ Aal AA+ NR Aal AA+ NR Yes Apple Inc. 037833CQ1 2,000,000 AA+ Aal AA+ NR Aal AA+ NR Yes Berkshire Hathaway 084670BQO 1,000,000 AA Aa2 AA A+u Aa2 AA A+u Yes Chevron Corporation 166764BN9 2,000,000 AA- Aa2 AA NR Aa2 AA NR Yes Coca-Cola Co 191216BT6 1,000,000 AA- Al A+ Au Al A+ Au Yes IBM Credit LLC 44932HAC7 1,000,000 A+ A2 A WD A2 A WD Yes Microsoft Corporation 594918BG8 1,000,000 AAA Aaa AAA AA+u Aaa AAA AA+u Yes Pfizer Inc 717081DZ3 1,000,000 AA Al AA- Au Al AA- Au Yes Procter&Gamble Co 742718DY2 1,000,000 AA- Aa3 AA- NR Aa3 AA- NR Yes Toyota Motor Credit Corp 89236TEC5 2,482,750 AA- Al A+ A+u Al A+ A+u Yes Toyota Motor Credit Corp 89236TDP7 1,000,000 AA- Al A+ A+u Al A+ A+u Yes Toyota Motor Credit Corp 89236TFNO 1,000,000 AA- Al A+ A+u Al A+ A+u Yes VISA Inc 92826CAG7 1,000,000 A+ Aa3 AA- NR Aa3 AA- NR Yes Walmart Store Inc 931142EA7 1,000,000 AA Aa2 AA AA Aa2 AA AA Yes Page 5 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E CITY OF TUSTIN _ Monthly Investment Report June 30,2020 - Cash and Investments/Summary [1] [2] [3] [4] [5] Description/Limits Face Amount Shares YTM@Cost Credit Rating Cost Value+Accrued Market Value Interest Investment Portfolio 54,531,000.00 2.20 54,691,160.35 55,858,513.80 Daily-Limit: [6]Reconciled/Bank of America Account-General Checking 0.30 N/A 1,006,725.13 1,006,725.13 Orange County Investment Pool 1.22 [7] 1,137,736.39 1,137,736.39 LAIF/Local Agency Investment Fund 1.22 N/A 72,343,758.39 72,343,758.39 California Asset Management Program(CAMP) 0.51 AAAm 22,994,602.81 22,994,602.81 97,482,822.72 97,482,822.72 Investment Portfolio TOTAL 152,173,983.07 153,341,336.52 Performance Measurement Weighted Average Days to Maturity 176 Weighted Average Yield 1.46% Benchmark/Treasury 2Year 1.06% Restricted/Un-Restricted Funds UN-RESTRICTED General Fund cash balance as of 6/30/2020(unaudited) 20,578,746.61 SEMI-RESTRICTED Cash Balance as of 6/30/2020(unaudited) 52,971,426.63 Capital Projects,Proceeds from Land Sales,Backbone Infrastructure RESTRICTED Cash balances as of 6/30/2020(un-audited) 75,466,141.83 Total 149,016,315.07 Successor Agency Community Redevelopment Agency/Cash&Investments Total 3,157,668.00 Page 6 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E CITY OF TUSTIN _ Monthly Investment Report lune 30,2020 - Restricted Deposits with Fiscal Agents [1] 121 131 141 151 Description Limits Face Amount Shares YTM@Cost Credit Rating Cost Value+Accrued Market Value Interest 2016 Successor Agency Tax Allocation Bonds,Refunding 834.78 N/A 834.78 834.78 2016 Water Revenue Bonds,Refunding 40.95 N/A 40.95 40.95 2012 Water Revenue Bonds-Refunding 110.29 N/A 110.29 110.29 2020 Water Revenue Bonds 18,831.35 N/A 18,831.35 18,831.35 CFD 04-1 1,128,868.15 N/A 1,128,868.15 1,128,868.15 CFD 06-1 9,024,366.46 N/A 9,024,366.46 9,024,366.46 CFD 07-1 1,776,247.77 N/A 1,776,247.77 1,776,247.77 CFD 14-1 12,291,575.21 N/A 12,291,575.21 12,291,575.21 24,240,874.96 24,240,874.96 24,240,874.96 Restricted Deposits with Fiscal Agents TOTAL 24,240,874.96 24,240,874.96 Page 7 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-4OF9-A7F7-A746C5D01F1E CITY OF TUSTIN _ Monthly Investment Report lune 30,2020 Footnotes (1)DESCRIPTION-LIMITS reflects the various authorized investments as documented in the most current adopted investment policy and the allowable percentage oftotal 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 inconformity 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. tAWKUA.l.L EVIUA �aoor /rwcvs Larry Friend,Chair Jason AI-Imam,Finance Director/ City of Tustin Audit Commission City of Tustin Treasurer Page 8 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01F1E CITY OF TUSTIN _ Monthly Investment Report lune 30,2020 Compliance/Investment Policy Description Limits Face Amount Maximum Maturity Allowable Total Cost value+Accrued Market Value Shares Years/days Portion of Percentage Interest US Agency 9,850,000.00 5 years 100% 6.47% 9,849,956.94 10,118,948.96 Municipal Bonds 5,330,000.00 5years 30% 3.54% 5,391,774.34 5,441,881.10 Certificate of Deposit/Negotiable 17,851,000.00 5 years 30% 11.73% 17,850,590.94 18,266,010.06 Corporate Bonds 21,500,000.00 5 years 20% 14.19% 21,598,838.13 22,031,673.68 Cash N/A N/A N/A 0.66% 1,006,725.13 1,006,725.13 Orange County Investment Pool N/A N/A N/A 0.75% 1,137,736.39 1,137,736.39 LAIF/Local Agency Investment Fund N/A N/A N/A 47.54% 72,343,758.39 72,343,758.39 California Asset Management Program(CAMP) Shares of beneficial Interest by a JPA N/A N/A N/A 15.11% 22,994,602.81 22,994,602.81 100.00% 152,173,983.07 153,341,336.52 Restricted Cash with Fiscal Agents 24,240,874.96 24,240,874.96 Investment Portfolio TOTAL 176,414,858.03 177,582,211.48 *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 speci0cally permitted by bond documents. Page 9 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E 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 6/30/2020 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio >Liquid Assets Bank of America- MM0220 1 N/A 6/30/2015 0.300 NR NR 1,006,725.13 1,006,725.13 100 1,006,725.13 0.66 Checking MM California Asset Management Program CAMP6045 1 N/A 5/10/2017 0.510 NR NR 22,994,602.81 22,994,602.81 100 22,994,602.81 15.12 LGIP Local Agency LGIP0936 1 N/A 6/30/2015 1.217 NR NR 71,228,898.63 71,228,898.63 100 71,228,898.63 46.85 Investment Fund LGIP Local Agency LGIP0002 1 N/A 6/30/2015 1.217 NR NR 1,114,859.76 1,114,859.76 100 1,114,859.76 0.73 Investment Fund LGIP Orange County LGIP9LE 1 N/A 6/30/2015 1.216 NR NR 1,137,736.39 1,137,736.39 100 1,137,736.39 0.75 Investment Pool LGIP Sub Total/Average> 1 1.041 97,482,822.72 97,482,822.72 100 97,482,822.72 64.11 Liquid Assets Certificate of Deposit-Negotiable 30 Abacus Federal Savings Bank 1.95 00257TAY2 386 7/21/2021 7/21/2017 1.950 NR NR 248,000.00 248,000.00 100 252,683.23 0.16 7/21/2021 Allegiance Bank 2.2 01748DAY2 856 11/3/2022 11/3/2017 2.200 NR NR 248,000.00 248,000.00 100 259,274.33 0.16 11/3/2022 Alliance Credit Union 2.25 10/13/2022 01859BAA3 835 10/13/2022 10/13/2017 2.250 NR NR 248,000.00 248,000.00 100 259,348.73 0.16 Alma Bank 1.7 020080BE6 162 12/9/2020 12/9/2016 1.700 NR NR 248,000.00 248,000.00 100 249,725.09 0.16 12/9/2020 American Eagle Bank 2 02554BCR0 548 12/30/2021 7/13/2017 2.000 NR NR 247,000.00 247,175.95 100 253,739.64 0.16 12/30/2021 American National Bank-Fox Cities 1.75 02771PNQ6 146 11/23/2020 5/23/2017 1.750 NR NR 248,000.00 248,000.00 100 249,601.09 0.16 11/23/2020 03753XAE0 232 2/17/2021 8/17/2016 1.250 NR NR 248,000.00 248,000.00 100 249,750.38 0.16 Page 10 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio Apex Bank 1.25 2/17/2021 Bank of Deerfield 1.15 061785DP3 27 7/27/2020 8/26/2016 1.150 NR NR 248,000.00 248,000.00 100 248,192.94 0.16 7/27/2020 Bank of the Pacific 1.25 06425BCK3 328 5/24/2021 8/24/2016 1.250 NR NR 248,000.00 248,000.00 100 250,452.22 0.16 5/24/2021 Bankers Bank Madison WI 1.9 7/14/2021 06610RAQ2 379 7/14/2021 7/14/2017 1.900 NR NR 248,000.00 248,000.00 100 252,471.19 0.16 Barclays Bank Delaware 2.2 06740KKD8 742 7/12/2022 7/12/2017 2.200 NR NR 247,000.00 247,000.00 100 256,928.41 0.16 7/12/2022 BMO Harris Bank Step 05581 WNM3 652 4/13/2022 4/13/2017 2.143 NR NR 248,000.00 248,000.00 100 248,191.21 0.16 4/13/2022-17 BMW Bank UT 2.25 8/21/2020 05580ACS1 52 8/21/2020 8/21/2015 2.250 NR NR 248,000.00 248,000.00 100 248,786.66 0.16 Capital One 2.3 14042E5M8 43 8/12/2020 8/12/2015 2.300 NR NR 248,000.00 248,000.00 100 248,649.02 0.16 8/12/2020 Celtic Bank 2.1 15118RMF1 660 4/21/2022 4/21/2017 2.100 NR NR 248,000.00 248,000.00 100 256,487.30 0.16 4/21/2022 Central Federal S&L Assoc of Chicago 2.85 15347EAH2 363 6/28/2021 6/28/2018 2.850 NR NR 249,000.00 249,000.00 100 255,654.03 0.16 6/28 Central State Bank 15523RBJ4 379 7/14/2021 7/14/2017 1.850 NR NR 248,000.00 248,000.00 100 252,342.48 0.16 Iowa 1.85 7/14/2021 Citibank Sioux Falls SD 17312QN47 350 6/15/2021 6/15/2018 3.000 NR NR 246,000.00 246,000.00 100 252,753.44 0.16 36/15/2021 Citizens State Bank 1.85 6/30/2021 17670DAD6 365 6/30/2021 6/30/2017 1.850 NR NR 248,000.00 248,000.00 100 252,185.00 0.16 Commercial Bank Alma 201282HD5 412 8/16/2021 8/16/2016 1.400 NR NR 248,000.00 248,000.00 100 251,442.74 0.16 Mi 1.4 8/16/2021 Country Bank NY 2.9 6/18/2021 22230PBS8 353 6/18/2021 6/20/2018 2.900 NR NR 249,000.00 249,000.00 100 255,614.44 0.16 Delaware State Police Federal Credit Union 3 246399AB5 1,368 3/29/2024 3/29/2019 3.000 NR NR 246,000.00 246,000.00 100 269,562.62 0.16 3/29/ DNB First,National Association 2 25590AAH3 723 6/23/2022 6/23/2017 2.000 NR NR 248,000.00 248,000.00 100 256,758.12 0.16 6/23/2022 Eagle Bank Bethesda MD 2.9 6/15/2021 27002YDS2 350 6/15/2021 6/15/2018 2.900 NR NR 249,000.00 249,000.00 100 255,650.29 0.16 EnerbankUSA 1.45 8/26/202121 29266N31-18 422 8/26/2021 8/26/2016 1.450 NR NR 248,000.00 248,000.00 100 251,666.43 0.16 8/26/2 Page 11 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio Financial Federal Bank 31749TAX5 92 9/30/2020 5/30/2017 1.700 NR NR 248,000.00 248,000.00 100 248,988.28 0.16 1.7 9/30/2020 First Bankof Highland Park 2.2 11//8/2022 319141JF5 861 11/8/2022 11/8/2017 2.200 NR NR 248,000.00 248,000.00 100 259,365.34 0.16 First Bank Richmond 1.8 12/28/2020 319267GE4 181 12/28/2020 6/27/2017 1.800 NR NR 248,000.00 248,000.00 100 250,053.19 0.16 First Federal Savings Bank 1.9 1/15/2021 32021YDA8 199 1/15/2021 11/15/2017 1.900 NR NR 248,000.00 248,000.00 100 250,381.05 0.16 of First Internet Bank 32056GCQ1 744 7/14/2022 7/14/2017 2.050 NR NR 248,000.00 248,000.00 100 257,240.48 0.16 Indiana 2.05 7/14/20022 First Oklahoma Bank 1.7 7/27/2020 335857BE7 27 7/27/2020 7/26/2017 1.700 NR NR 248,000.00 248,000.00 100 248,295.12 0.16 First Premier Bank 2.05 33610RQY2 783 8/22/2022 8/21/2017 2.050 NR NR 248,000.00 248,000.00 100 257,660.59 0.16 8/22/2022 First Security State Bank IA 2.85 2/22/2021 336386AX5 237 2/22/2021 6/22/2018 2.850 NR NR 249,000.00 249,000.00 100 253,361.48 0.16 First Tech Federal CU Palo Alto CA 3.05 33715LBL3 349 6/14/2021 6/14/2018 3.050 NR NR 249,000.00 249,000.00 100 255,879.12 0.16 6/14/2021 FNB Bank,Inc/Romney 30257JAC9 384 7/19/2021 7/19/2017 1.850 NR NR 248,000.00 248,000.00 100 252,398.53 0.16 1.85 7/19/2021 Gold Coast Bank 1.9 38058KDU7 314 5/10/2021 11/9/2017 1.900 NR NR 248,000.00 248,000.00 100 251,742.07 0.16 5/10/2021 Great Plains Bank 1.85 12/21/2021 39115UAZ6 539 12/21/2021 4/21/2017 1.850 NR NR 248,000.00 248,000.00 100 254,076.99 0.16 Keesler Federal CU 3 49254FAQ9 426 8/30/2021 2/28/2019 3.000 NR NR 249,000.00 249,000.00 100 257,212.77 0.16 8/30/2021 Lakeside Bank 1.75 51210SMS3 142 11/19/2020 5/19/2017 1.750 NR NR 248,000.00 248,000.00 100 249,556.45 0.16 11/19/2020 Lead Bank 1.7 521680AE8 224 2/9/2021 8/9/2017 1.700 NR NR 248,000.00 248,000.00 100 250,368.65 0.16 2/9/2021 Luana Savings Bank 549103212 226 2/11/2021 8/11/2017 1.700 NR NR 248,000.00 248,000.00 100 250,399.90 0.16 1.7 2/11/2021 Marine Bank 1.85 6/29/2021 56817TAB7 364 6/29/2021 6/29/2017 1.850 NR NR 248,000.00 248,000.00 100 252,174.09 0.16 Mercantil Bank Coral 58733AEX3 356 6/21/2021 6/21/2018 3.000 NR NR 246,000.00 246,000.00 100 252,865.61 0.16 Gables FL 3 6/21/2021 Morton Community 619165GW7 169 12/16/2020 12/16/2016 1.700 NR NR 248,000.00 248,000.00 100 249,800.73 0.16 Bank 1.7 12/16/2020 Mountain America Credit Union 2.3 62384RAC0 861 11/8/2022 11/8/2017 2.300 NR NR 248,000.00 248,000.00 100 259,914.17 0.16 11/8/2022 Page 12 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio National Cooperative 635573AH1 252 3/9/2021 3/9/2016 1.500 NR NR 248,000.00 248,000.00 100 251,149.60 0.16 Bank 1.5 3/9/2021 Nebraska State B&T 63969ACD4 601 2/21/2022 4/21/2017 1.950 NR NR 248,000.00 248,000.00 100 255,131.98 0.16 Co.1.95 2/21/2022 Nebraskal-and National 63970QFG6 363 6/28/2021 6/28/2017 1.850 NR NR 248,000.00 248,000.00 100 252,163.18 0.16 Bank 1.85 6/28/2021 Northfield Bank 1.95 66612ABV9 477 10/20/2021 11/1/2017 2.029 NR NR 248,000.00 247,414.99 99.7 253,754.59 0.16 10/20/2021 Palmetto Heritage Bank and Trust 1.9 69709QAM3 416 8/20/2021 8/21/2017 1.900 NR NR 248,000.00 248,000.00 100 252,897.75 0.16 8/20/2021 Partners Bank of California 1.85 70212YAW2 412 8/16/2021 8/15/2017 1.850 NR NR 248,000.00 248,000.00 100 252,709.77 0.16 8/16/2021 Plus 2.812/14/2020 Bank 72940UJF3 167 12/14/2020 6/13/2018 2.800 NR NR 249,000.00 249,000.00 100 252,033.57 0.16 2.8 12/14/2020 Ponce De Leon Federal 732333AG4 330 5/26/2021 5/26/2017 1.900 NR NR 248,000.00 248,000.00 100 251,924.85 0.16 Bank 1.9 5/26/2021 RCB Bank Claremore 74934YAJ0 356 6/21/2021 6/20/2018 2.900 NR NR 249,000.00 249,000.00 100 255,650.29 0.16 OK 2.9 6/21/2021 Sallie Mae Bank 3 795450M93 1,022 4/18/2023 4/18/2018 3.000 NR NR 245,000.00 245,000.00 100 263,440.66 0.16 4/18/2023 Signature Bank Chicago 2.15 82669VBY6 861 11/8/2022 11/8/2017 2.150 NR NR 248,000.00 248,000.00 100 259,073.20 0.16 11/8/2022 Southern State Bank 843879BT3 90 9/28/2020 6/27/2018 2.800 NR NR 249,000.00 249,000.00 100 250,629.21 0.16 AL 2.8 9/28/2020 Spiritbank Bristow OK 848608DBS 407 8/11/2021 8/11/2017 1.900 NR NR 248,000.00 248,000.00 100 248,502.70 0.16 1.9 8/11/2021-18 Stock Yards Bank& Trust Co KY 2.9 861026AA0 349 6/14/2021 6/14/2018 2.900 NR NR 246,000.00 246,000.00 100 252,497.84 0.16 6/14/2021 Stone Bank 1.85 86158RAM1 195 1/11/2021 10/11/2017 1.850 NR NR 248,000.00 248,000.00 100 250,266.97 0.16 1/11/2021 The Business Bank of Saint Louis 1.8 12325EHU9 358 6/23/2021 6/23/2017 1.800 NR NR 248,000.00 248,000.00 100 251,987.10 0.16 6/23/2021 The First National Bank 330459BUl 779 8/18/2022 8/18/2017 2.000 NR NR 248,000.00 248,000.00 100 257,345.88 0.16 of Mayfield 2 8/18/2022 The Lake Bank MN 2.9 507515BE3 321 5/17/2021 6/22/2018 2.900 NR NR 249,000.00 249,000.00 100 255,028.54 0.16 5/17/2021 The North Jackson Bank 2.05 5/9/2022 32063KAS1 678 5/9/2022 11/8/2017 2.050 NR NR 248,000.00 248,000.00 100 256,479.37 0.16 Page 13 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio The Ohio Valley Bank Company 1.9 677721CN0 568 1/19/2022 7/19/2017 1.900 NR NR 248,000.00 248,000.00 100 254,572.99 0.16 1/19/2022 Towne Bank Portsmouth VA 3 89214PBR9 363 6/28/2021 6/28/2018 3.000 NR NR 246,000.00 246,000.00 100 252,996.24 0.16 6/28/2021 Traverse City State Bank 2 6/28/2022 894333FF5 728 6/28/2022 6/28/2017 2.000 NR NR 248,000.00 248,000.00 100 256,848.64 0.16 Triad Bank 1.85 4/12/2021 89579NBU6 286 4/12/2021 10/12/2017 1.850 NR NR 248,000.00 248,000.00 100 251,322.70 0.16 UBS Bank USA Salt Lake City UT 3.25 90348JCWS 1,078 6/13/2023 6/13/2018 3.250 NR NR 248,000.00 248,000.00 100 269,346.10 0.16 6/13/2023 Uinta County State 903572CC7 470 10/13/2021 10/13/2017 2.050 NR NR 247,000.00 247,000.00 100 252,968.26 0.16 Bank 2.05 10/13/2021 US Alliance FCU NY 3 90352RAB1 237 2/22/2021 6/22/2018 3.000 NR NR 249,000.00 249,000.00 100 253,602.27 0.16 2/22/2021 Winter Hill Bank,FSB 975875AK1 363 6/28/2021 6/26/2017 1.800 NR NR 248,000.00 248,000.00 100 252,040.17 0.16 1.8 6/28/2021 Sub Total/Average Certificate of Deposit 432 2.144 17,851,000.00 17,850,590.94 99.995844 18,266,010.06 11.74 -Negotiable 30 Corporate Bonds 15 American Express Moodys- S&P-A- 2,000,000.00 1,995,505.58 99.132501 2,005,120.00 1.30 Credit Corp 2.6 0258MODX4 76 9/14/2020 6/13/2018 3.000 Aa2 9/14/2020-20 Apple Inc 2.25 037833BS8 238 2/23/2021 12/2/2016 2.125 Moodys- S&P-AA. 2,000,000.00 2,022,375.00 100.5 2,021,954.04 1.32 2/23/2021-21 Aa1 Apple Inc 2.3 5/11/2022 037833CQ1 680 5/11/2022 6/26/2017 2.133 Aa1 dys S&P-AA+ 2,000,000.00 2,021,152.54 100.770127 2,070,807.64 1.33 Automatic Data Moodys- Processing2.25 053015AD5 77 9/15/2020 6/13/2018 2.617 Aa3 S&P-AA 1,000,000.00 997,500.00 99.2 1,002,206.64 0.65 9/15/2020 Berkshire Hathaway Inc 084670BQ0 258 3/15/2021 6/13/2018 2.654 Moodys- S&P-AA 1,000,000.00 993,377.78 98.8 1,011,991.07 0.65 2.2 3/15/2021 Aa2 Chevron Corp 2.498 166764BN9 611 3/3/2022 8/10/2017 2.101 Moodys- 3/3/2022 Aa2 S&P-AA- 2,000,000.00 2,056,188.11 101.72 2,069,405.74 1.34 COCO-COLA CO 191216BT6 119 10/27/2020 7/13/2017 1.875 Moodys- S&P-AA- 1,000,000.00 1,003,958.33 100 1,004,957.19 0.66 1.875 10/27/2020 Aa3 IBM Credit LLC 2.2 44932HAC7 800 9/8/2022 10/3/2017 2.301 Moodys- S&P-A+ 1,000,000.00 996,827.78 99.53 1,036,318.57 0.65 9/8/2022 Al 594918BG8 126 11/3/2020 11/6/2015 1.929 S&P-AAA 1,000,000.00 1,003,546.67 100.338 1,004,074.02 0.66 Page 14 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio Microsoft 2 11/3/2020- Moodys- 20 Aaa Pfizer Inc717081 DZ3 533 12/15/2021 7/16/2018 2.944 Moodys- 12/15/200211 Al S&P-AA 1,000,000.00 977,894.44 97.6 1,024,768.37 0.64 Procter&Gamble Co 742718DY2 586 2/6/2022 7/16/2018 2.902 Moodys- S&P-AA- 1,000,000.00 990,022.22 97.98 1,032,367.51 0.64 2.3 2/6/2022 Aa3 Toyota Motor Credit 89236TEC5 800 9/8/2022 11/1/2017 2.301 Moodys- Corp 2.15 9/8/2022 Aa3 S&P-AA- 2,500,000.00 2,490,663.19 99.31 2,584,070.83 1.63 Toyota Motor Credit 89236TFNO 1,177 9/20/2023 2/28/2019 3.001 Moodys- Corp 3.45 9/20/2023 Aa3 S&P-AA- 1,000,000.00 1,034,141.67 101.9 1,086,945.40 0.67 Toyota Motor Credit 89236TDP7 560 1/11/2022 7/13/2017 2.200 Moodys- Crop 2.6 1/11/2022 Aa3 S&P-AA- 1,000,000.00 1,017,172.28 101.702784 1,030,870.16 0.67 VISA Inc 2.15 92826CAG7 807 9/15/2022 10/3/2017 2.101 Moodys- 9/15/2022 Al S&P-A+ 1,000,000.00 1,003,615.32 100.230143 1,039,196.23 0.66 Walmart Inc 1.9 931142EA7 168 12/15/2020 6/13/2018 2.622 Moodys- 12/15/2/15/2020 Aa2 S&P-AA 1,000,000.00 994,897.22 98.26 1,006,620.27 0.65 Sub Total/Average 486 2.398 21,500,000.00 21,598,838.13 99.924705 22,031,673.68 14.13 Corporate Bonds 15 Municipal Securities 15%15% California ST 2.367 13063DADO 640 4/1/2022 4/27/2017 2.152 Moodys- S&P-AA- 1,000,000.00 1,010,000.00 101 1,030,290.00 0.66 4/1/2022 Aa3 California ST 2.625 13063DAC2 275 4/1/2021 4/27/2017 2.003 Moodys- S&P-AA- 1,000,000.00 1,023,400.00 102.34 1,015,430.00 0.67 4/1/2021 Aa3 California State Moodys- University 3.054 13077DFD9 854 11/1/2022 8/2/2018 3.054 Aa2 S&P-AA- 250,000.00 250,000.00 100 261,967.50 0.16 11/1/2022 Industry Calif Sales Tax 45656RDV1 550 1/1/2022 5/17/2017 2.451 Moodys- Rev 2.75 1/1/2022 Al S&P-AA- 1,000,000.00 1,014,604.17 101.3 1,022,330.00 0.67 Murrieta Redevelopment 62719PAX4 397 8/1/2021 10/18/2017 2.319 NR S&P-A 350,000.00 349,135.50 99.753 354,018.00 0.23 Agency 2.25 8/1/2021 Murrieta Redevelopment 62719PAY2 762 8/1/2022 10/18/2017 2.559 NR S&P-A 250,000.00 249,345.00 99.738 256,575.00 0.16 Agency 2.5 8/1/2022 Santa Rosa CA REGL Resource Rev 2.2 802629AW5 397 8/1/2021 10/3/2017 2.001 Fitch-AA S&P-AA+ 980,000.00 989,489.67 100.73 989,770.60 0.65 8/1/2021 Santa Rosa CA REGL Resources Rev 2.4 802629AX3 762 8/1/2022 10/3/2017 2.202 Fitch-AA S&P-AA+ 500,000.00 505,800.00 100.9 511,500.00 0.33 8/1/2022 520 2.228 5,330,000.00 5,391,774.34 101.066505 5,441,881.10 3.54 Page 15 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio Sub Total/Average Municipal Securities 15%/5% US Agency Bonds I Notes 75 FHLB 1.3752/18/2021 3130A7CV5 233 2/18/2021 4/4/2016 1.328 Aaadys S&P-AA, 1,000,000.00 1,003,956.94 100.22 1,007,335.52 0.66 FHLB 2.1 4/26/2022-19 3130AB3U8 665 4/26/2022 4/26/2017 2.100 NR S&P-AA+ 4,000,000.00 4,000,000.00 100 4,133,117.24 2.63 FHLMC 2 7/27/2022-18 3134GBWQ1 757 7/27/2022 7/27/2017 2.042 Aaadys S&P-AA+ 2,000,000.00 1,996,000.00 99.8 2,073,639.86 1.31 FHLMC 2.05 3134GBMB5 694 5/25/2022 5/25/2017 2.050 Moodys- S&P-AA+ 1,000,000.00 1,000,000.00 100 1,034,724.05 0.66 5/25/2022-18 Aaa FNMA 1.4 5/25/2021- 3136G3U94 329 5/25/2021 8/25/2016 1.400 Moodys- S&P-AA+ 1,850,000.00 1,850,000.00 100 1,870,132.29 1.22 17 Aaa Sub Total/Average US Agency Bonds I 580 1.873 9,850,000.00 9,849,956.94 99.981853 10,118,948.96 6.48 Notes 75% Total/Average 176 1.458 152,013,822.72 152,173,983.07 100.025482 153,341,336.52 100 Page 16 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01F1E City of Tustin Transactions Summary Monthly Investment Transactions Group By:Action Portfolio/Report Group:All Portfolios Begin Date:03/31/2020,End Date:06/30/2020 YTM @ Settlement Maturity Face Description CUSIP/Ticker Portfolio Name Cost Trade Date Date Date Amount/Shares Principal Price Interest/Dividends Total Called Commerce Bank Geneva MN 2 200560009 Fixed Income-Certificate 0.000 5/25/2020 5/25/2020 11/26/2021 248,000.00 248,000.00 0 0.00 248,000.00 11/26/2021-18 of Deposit Negotiable JPMorgan Chase Bank NA 1.65 48126XAH8 Fixed Income-Certificate 0.000 5/16/2020 5/16/2020 8/16/2021 248,000.00 248,000.00 0 0.00 248,000.00 8/162021-20 of Deposit Negotiable Midsouth Bank Lafayette 1.85 59805FAA7 Fixed Income-Certificate 0.000 4/12/2020 4/12/2020 7/13/2020 248,000.00 248,000.00 0 0.00 248,000.00 7/13/2020-18 of Deposit Negotiable United Community Bank 2.05 90983WBNO Fixed Income-Certificate 0.000 4/12/2020 4/12/2020 4/12/2022 248,000.00 248,000.00 0 0.00 248,000.00 4/12/2022-18 of Deposit Negotiable Sub Total/Average Called 992,000.00 992,000.00 0.00 992,000.00 Matured California ST 1.84/1/2020 13063CSQ4 Fixed Income-Municipal 0.000 4/1/2020 4/1/2020 4/1/2020 2,000,000.00 2,000,000.00 0 0.00 2,000,000.00 Securities Chippewa Valley Bank 1.7 169894AN2 Fixed Income-Certificate 0.000 6/30/2020 6/30/2020 6/30/2020 248,000.00 248,000.00 0 0.00 248,000.00 6/30/2020 of Deposit Negotiable Comenity Cap Bank UT 2.15 20033ALD6 Fixed Income-Certificate 0.000 629/2020 629/2020 6292020 248,000.00 248,000.00 0 0.00 248,000.00 6/292020 of Deposit Negotiable Commerce State Bank 1.65 20070PJDO Fixed Income-Certificate 0.000 5222020 522/2020 5222020 248,000.00 248,000.00 0 0.00 248,000.00 522/2020 of Deposit Negotiable East Boston Savings Bank 1.7 27113PBNO Fixed Income-Certificate 0.000 4/132020 4/13/2020 4/132020 248,000.00 248,000.00 0 0.00 248,000.00 4/13/2020 of Deposit Negotiable First Bank of Owasso 1.8 31927LAMO Fixed Income-Certificate 0.000 5/142020 5/14/2020 5/142020 248,000.00 248,000.00 0 0.00 248,000.00 5/14/2020 of Deposit Negotiable Horicon State Bank 1.65 440392FL7 Fixed Income-Certificate 0.000 5262020 5262020 5262020 248,000.00 248,000.00 0 0.00 248,000.00 526/2020 of Deposit Negotiable Jefferson Bank and Trust 472376AC6 Fixed Income-Certificate 0.000 5/122020 5/122020 5/122020 248,000.00 248,000.00 0 0.00 248,000.00 Company 1.75 5/12/2020 of Deposit Negotiable Kennebec Savings Bank 1.65 489265AU2 Fixed Income-Certificate 0.000 5/292020 5292020 5/292020 248,000.00 248,000.00 0 0.00 248,000.00 5/29/2020 of Deposit Negotiable MB Financial Bank 1.65 55266CUYO Fixed Income-Certificate 0.000 4/132020 4/132020 4/132020 248,000.00 248,000.00 0 0.00 248,000.00 4/13/2020 of Deposit Negotiable Mercantile Bank of Michigan 58740XYW4 Fixed Income-Certifcate 0.000 4/13/2020 4/13/2020 4/13/2020 248,000.00 248,000.00 0 0.00 248,000.00 1.65 4/13/2020 of Deposit Negotiable Northwest Bank(FKA Western 66736ABB4 Fixed Income-Certificate 0.000 4/13/2020 4/13/2020 4/13/2020 248,000.00 248,000.00 0 0.00 248,000.00 Capital Bank)1.65 4/13 of Deposit Negotiable Oriental Bank 1.855262020 68621KAY7 Fixed Income-Certifcate 0.000 526/2020 526/2020 526/2020 248,000.00 248,000.00 0 0.00 248,000.00 of Deposit Negotiable Page 17 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01F1E YTM Lal Settlement Maturity Face Description CUSIP/Ticker Portfolio Name Cost Trade Date Date Date Amount/Shares Principal Price Interest/Dividends Total Sturgis Bank&Trust Company 864088DM8 Fixed Income-Certificate 0.000 6/9/2020 6/9/2020 6/9/2020 248,000.00 248,000.00 0 0.00 248,000.00 1.8 6/9/2020 of Deposit Negotiable Summit Community Bank Inc 86604XLT1 Fixed Income-Certificate 0.000 5/29/2020 5/29/2020 5/29/2020 248,000.00 248,000.00 0 0.00 248,000.00 1.65 5/2912020 of Deposit Negotiable The Bank of Princeton 1.7 064520AD1 Fixed Income-Certificate 0.000 6/30/2020 6/30/2020 6/30/2020 248,000.00 248,000.00 0 0.00 248,000.00 6/302020 of Deposit Negotiable University of Iowa 2.85 91435LAN7 Fixed Income-Certificate 0.000 6/19/2020 6/19/2020 6/19/2020 249,000.00 249,000.00 0 0.00 249,000.00 6/192020 of Deposit Negotiable Sub Total/Average Matu red 5,969,000.00 5,969,000.00 0.00 5,969,000.00 Page 18 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN Account Report for the Period PARS Post-Employment Benefits Trust 7/1/2019 to 6/30/2020 Matthew West City Manager City of Tustin 300 Centennial Way Tustin,CA 92780 Account Summary Balance as of Balance as of Source 7/1/2019 Contributions Earnings Expenses Distributions Transfers 6/30/2020 OPEB $1,580,453.94 $500,000.00 $97,677.46 $11,216.65 $0.00 $0.00 $2,166,914.75 PENSION $5,947,477.16 $0.00 $268,367.23 $33,345.46 $0.00 $0.00 $6,182,498.93 Totals $7,5279931.10 $5009000.00 $3669044.69 $449562.11 $0.00 $0.00 $893499413.68 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 of principal 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 1.53% 10.96% 4.85% 6/26/2018 PENSION 1.53% 10.96% 4.55% 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 maybe 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 100,Newport Beach,CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Page 19 of 19 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E HIGHMARK° CAPITAL MANAGEMENT PARS DIVERSIFIED PORTFOLIOS MODERATE •1 2020 WHY THE PARS DIVERSIFIED INVESTMENT OBJECTIVE Efficient Frontier MODERATE PORTFOLIO? To provide current income and moderate capital appreciation. �C.pitliation Com prehensive Investment Solution Balanced HighMark® Capital Management, Inc.'s (HighMark) It is expected that dividend and Moderate interest income w ill comprise a diversified investment portfolios are designed to ModeratelyConservatiee balance return expectations w ith risktolerance. significant portion of total return, Key features include:sophisticated asset allocation although growth through capital 9 conservative appreciation is equally important. and optirnization techniques,four layers of Risk(Standard Deviation) diversification(asset class,style,manager,and ASSET ALLOCATION-MODERATE PORTFOLIO security),accessto rigorously screened,top tier money managers,flexible investment options,and Strategic Range Policy Tactical experienced investment management. Equity 40-60% 50% 47% Fixed Income 40-60% 45% 48% Rigorous Manager Due Diligence Cash 0-20% 5% 5% Our manager review comrnittee utilizes a rigorous (Gross of Investment ManagementFees,butNetof screening process that searches for investment ANNUALIZED TOTAL RETURNS Embedded Fund Fees) managers and styles that have not only produced High Mark Plus Composite(Active) Index Plus Composite(Passive) above-average retue the resources and risk Current Quarter" � -12.47% Current Quarter'�0.69°/� parameters,but have the resources and commitment to continue to deliver these results.We have set high Blended Benchmark*," -10.90% Blended BenchmaW," -10.90% standards for our investment managers and funds. Year To Date" -12.47% Year To Date" -10.69% This is a highly specialized,time consuming Blended Benchmark',`* -10.90% Blended BenchmaW,`* -10.90% approach dedicated to one goal: competitive and 1 Year -4.81% 1 Year -2.96% consistent performance. BlendedBenchn7ark" -2.88% Blended Benchmark" -2.88% 3 Year 2.57% 3 Year 2.93% Flexible Investment Options Blended Benchmark" 3.10% Blended Benchrr>ark" 3.10% In order to meet the unique needs of our clients, 5 Year W 3.11% 5 Year 3.29% w e offer access to f lexible irrplementation strategies: HighMark Plus utilizes actively managed mutual Blended Benchmark"' 3.55% Blended Benchmark" 3.55% funds while Index Plus utilizes index-based 10 Year 5.63% 10 Year 5.77% securities,including exchange-traded funds.Both Blended Benchmark" 5.93% Blended Benchmark" 5.93% Returns investment options leverage HighMark's active asset 5%Russell SNid Cap,7.5%than one 5%Russell 200D,are not 325%MSCI EM(net),Blended MSCI EAFE(et),33.50%BBG Ba days US Agg,0%Im 1011/2012-Present 26.5% CE allocation a roach. BofA 13 Yr US Corp/Godt,150%ICE BofA US High Yield Master II,1.75%Wilshire REIT,and 5%FTSE 1 Mtth T-Bill.From pp 4/1/2007-9/30/2012:the blended benchmark was43%S&P 500'2%Russd12000,5%MSCI EAFE(net),15%ICE BdA 13 Year Corp./Govt,30%BBG Barclays US Agg,5%FTSE 1 Ntth T-Bill.Prior to April 2007:he blended benchmark was 50%S&P 500, 15%ICE BofA 13Yr Corp/Gov,30'/o BBG Barclays US Agg,and 5%FTSE 1 Mtth T-Bill. Risk Management ANNUAL RETURNS (Gross of Investment Management Fees,but Netof Embedded The portfolio is constructed to control riskthrough Fund Fees) four layers of diversification-assetclasses(cash, High MarkPlusComposite(Active) Index Plus Composite(Passive) fixed income,equity),investment styles(large cap, 2008 -22.88% 200 -18.14% small cap,international,value,growth),managers 2009 21.47% 2009 16.05% and securities.Disciplined mutual fund selection and 2010 12.42% 201 11.77% monitoring process helps to drive return potential 2011 0.55% 2011 2.29% while reducing portfolio risk. 201 12.25% 2 10.91% 2013 13.06% 2013 12.79% 201 4.84% 201 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% 2019 17.71% 2019 17.52% PORTFOLIO FACTS High Mark Plus(Active) Index Plus(Passive) Composite Inception Date 10/2004 Composite Inception Date 05/2006 No of Holdingsin Portfolio 19 No of Holdingsin Portfolio 12 DocuSign Envelope ID:AC3DC8B6-AED5-40F9-A7F7-A746C5D01 F1 E HOLDINGS HIGHM , . CAPITAL HighMark Plus(Active) Index Plus(Passive) 350 Street Columbia Contrarian Core 13 iShares Core S&P 500 ETF Suite California•„ Vanguard Growth&Income Adm iSharesS&P 500 Value ETF Francisco,San 94104 Dodge&Cox Stock Fund iSharesS&P 500 Growth ETF 800-582-4734 iSharesS&P 500 Value ETF iSharesRussell Mid-Cap ETF Harbor Capital Appreciation-Retirement Vanguard Real Estate ETF T.Rowe Price Growth Stock-I i Shares Russel 12000 Value ETF ABOUT ADVISER iSharesRussell Mid-Cap ETF i Shares Russel 12000 Growth ETF High M o Capital - _•_ _ - Vanguard Real Estate ETF iShares MSCI EAFE ETF - 10 - •i Ing• ed ecessor org- i zati• Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF of institutional - -'- - experience billion in assets under m anagem entVictory RS Small Cap Growth-R6 Vanguard Short-Term Invest-Grade Adm b il assets •_ _• _ _ - DFA Large Cap International Portfolio iSharesCore U.S.Aggregate long term -• approachto money -•- - Dodge&Cox International Stock First American Government ObligationsZ and ag -ss -wide array of M FS International Growth-R6 Hartford Schroders Emerging Markets Eq ABOUT THE PORTFOLIO Vanguard Short-Term Invest-Grade Adm Andrew A© SeniorPortfolio Manager PIMCOTotal Return Fund-Inst Investment Experience: 1994 since PGIM Total Return Bond-R6 Holdings are subject tochangeatthe - - - DoubleLineCoreFixedlncome-I discretion of the investrrL-ntn7anager. -tion:MBA,Universityof Southern - • BA,Universityof Southern California First American Government ObligationsZ Salvatore"Tory" M ilazzo III, .o SeniorPortfolio Manager STYLE - - '- - - - 00 Real Estate • 2014 Large Cap Value 2.8% Education: Colgate University 6.7% Small Cap J.Keith 5.6 Stribling,CFAI Cash - • '• • • Manager 4.9% - - Experience: 1985 - - - • - 1995 Intl Stacks • . i Stetson - 9.3 Christiane Tsucla Mid Cap Wniiiiiiii"' Interco-Term Bond _ • .• • • Manager 3.3% 38.8% Investment Experience:since 1987 - - • - • • Large Cap GrowthEducation: International Christian University, • • 5.0% Anne Wimmer, .o SeniorPortfolio Manager Large Cap Core) Investment Experience: 14.8% • - - - •• \ Santa,—Short-Term Bond Education:- ' ' Barbara 8.8 Randy Yurchak, .o The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark Capital Advisors(HCA)with full investment authority according to the PARS Moderate SeniorPortfolio Manager active and passive objectives. Investment Experience: -2002 The adviser to the PARS portfolios is US Bank and HighMarkserves as sub-adviser to US Bankto manage these portfolios. -• - - -2017 US Bank may charge clients as much as 0.60%annual management fee based on a sliding scale.US Bankpays HighMark • - _ Arizona _ 60%ofthe annual management fee for assets sub-advised by HighMarkunder its sub-ad\Asoryagreementwith US Bank The 0.36%paid to HighMarkas well as other expenses that may be incurred in the management of the portfolio,will reduce - • . •State the portfolio's returns.Assuming an imestment for five years,a 5%annual total return,and an annual sub-ad\nsoryfee rate of0.36%deducted from the assets at market at the end ofeach year,a$10 million initial value would growto$12.53 million after fees(Net-of-Fees)and$12.76 million before fees(Gross-of-Fees).Gross returns are presented before management AssetAllocation Committee 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'sNumberof Members: policies and procedures for calculating and reporting performance results is available upon request.Performance results areAverage - • Experience: calculated and presented in U.S.dollars and do not reflect the deduction of investment adNsory fees,custody fees,or tames but do reflect the deduction of trading expenses.Returns are calculated based on trade-date accounting. Average Tenure - Blended benchmarks represent HipphMarks 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 M a na.- renestment of dividends and other earnings.An investor cannot nest directly in an index The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S.stockmarket.The MSCI EAFE Index is a free float- Numberof adjusted market capitalization index designed to measure developed market equity performance,excluding the U.S.and Average Yearsof Experience: Canada.The MSC Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equitymarket performance in the global emerging markets.The Russell Midcap Indexmeasures the performance of the mid- - -•-Tenure - cap segment of the U.S.equity universe.The Russell 2000 Index measures the performance of the small-cap seg ment of the U.S.equity universe.The ICE BofA US High Yield Master II Indextracls the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S.domestic market.Wilshire REIT indexmeasures U.S.publicly traded Real Estate Investment Trusts.The unmanaged Bloomberg Barclays U.S. predate Bond Indexis generally representative of the U.S.taxable bond market as a whole.The ICE BofA 1-3 Year .5.Corporate&Government Index tracks the bond performance of the ICE BofA U.S.Corporate&Government Index,with a remaining term to final maturity less than 3 years.The unmanaged FTSE 1-Month Treasury Bill Indextracls the yield of the 1-month U.S.Treasury Bill. HighMark Capital Management Inc. (HighMark),an SEC-registered imestmentadviser,isawhollyowned subsidiaryof *Assets under management("AU M")include assets forwhich 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 subsidiaryof MUFG Americas HighMark provides continuousand regular supervisory and Holdings Corporation,protides certain services to HighMarkand is compensated for these services.Past performance does management services.Assets under not guarantee future results.Individual account management and construction w 11 vary depending on each client's _ investment needs and objectives.Investments employing HighMark strategies are NOT insured bythe FDIC or byany investment other Federal Government Agency,are NOT Banc deposits,are NOT guaranteed bythe Bank or anyBank affiliate, adv isory services _ investment and MAY lose value,including possible loss of principal. research