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HomeMy WebLinkAbout06 QUARTERLY INVESTMENT REPORT DocuSign Envelope ID: E1 BA391D2-53132-46132-131 EA-63D9F53591 BC Agenda Item 6 Reviewed: DS -m AGENDA REPORT City Manager Finance Director MEETING DATE: MAY 4, 2021 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 March 31, 2021 is rendered. DocuSign Envelope ID: E1 BA391D2-53132-46132-131 EA-63D9F53591 BC QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Page 2 of 3 The City's total cash and investments as of March 31, 2021 were$125.7 million, a decrease of$6.5 million from December 31, 2020 total cash and investments of$132.2 million. The decrease in cash and investments of$6.5 million reflects cash inflows/outflows for normal operations. The weighted average portfolio yield as of March 31, 2021 was 0.90%, 16 basis points lower than the weighted average portfolio yield of 1.06% as of December 31, 2020. The primary reason for the decrease in the weighted average portfolio yield is the decline in Local Agency Investment Fund (LAIF) rates from 0.54% in December 2020 to 0.35% in March 2021. 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 investment strategy that balances risk and return and provides for diversification. The Pension Trust had earnings of approximately $143,000 (2%) for the quarter-to-date (January 1, 2021 through March 31, 2021). The OPEB Trust also had earnings of approximately $50,000 (2%) for the quarter-to-date. Trust assets will continue to be monitored, with quarterly reviews with our investment advisor. On April 22, 2021, the Audit Commission verified that the investment portfolio is in compliance with the City's Investment Policy and the California Government Code. In addition, the Treasurer's cash management program and cash flow analysis indicates that sufficient liquidity is on hand to meet estimated operating expenditures for the next twelve (12)months and the projected cash flow needs for the completion of various capital projects primarily within the Legacy. DocuSign Envelope ID: E1 BA391D2-53132-46132-131 EA-63D9F53591 BC QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Page 3 of 3 QawjWQwo Jason AI-Imam Finance Director/City Treasurer Attachment: March 31, 2021 Quarterly Investment Report PARS Trust Statement as of March 31, 2021 March 31, 2021 Fiscal Agent Balances DocuSign Envelope ID: E1 BA39D2-53B2-4682-B1 EA-63D9F53591 BC DocuSign Envelope ID:FCF8F80E-48AB-4FCA-91E8-B876B2142357 City of Tustin, California TUSTIN Finance Department 0 V I11�Itt K1' BUILDING OUIi FUTURI: HONORING OUR PAST April 22,2021 Honorable Mayor and Members of the City Council: Re: Investment Report Certification In compliance with California Government Code Section 53646, the attached Investment Report for the Quarter Ending March 31, 2021 is hereby rendered for the City of Tustin and Successor Agency for the Tustin Community Redevelopment Agency (Successor Agency). We certify that this report reflects all City of Tustin and Successor Agency pooled cash and investments subject to the provisions of California Government Code and the City's Investment Policy. It has been verified that the investment portfolio is in compliance with the City's Investment Policy. In addition, the Treasurer's cash management program and cash flow analysis indicates that sufficient liquidity is on hand to meet estimated future expenditures for the next twelve (12) months. Respectfully submitted, DocuSigned by: DocuSigned by: E A81CC329F2394DF_. 8D75CC3AFOCB4AE... Craig Shimomura,Chair Jason Al-Imam,Finance Director City of Tustin Audit Commission City of Tustin Treasurer 300 Centennial Way,Tustin, CA 92780 www.tustinca.or>? DocuSign Envelope ID:El BA39D2-53B2-46B2-B1 EA-63D9F53591 BC I INVESTMENT REPORT C/„CHANDLER ASSET MANAGEMENT City of Tustin Period Ending March 31, 2021 CHANDLER ASSET MANAGEMENT, INC. 800.317.4747 www.chandlerasset.com r.�• ti y DocuSign Envelope ID:El BA39D2-53B2-46B2-B1 EA-63D9F53591 BC Table of Contents As of March 31,2021 SECTION 1 Economic Update SECTION 2 Consolidated Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions 1 CitAl �D,cuS-'ign Envelope ID:E1BA39D2-53B2-46B2-B1 EA-63D9F53591BC Section 1 Economic Update 2 C�1 DocuSign Envelope ID:E1 BA391D2-53132-46132-131 EA-63D9F53591 BC IEconomic Update ■ Economic growth is poised to accelerate meaningfully in the current quarter as vaccine distribution becomes more widespread in the US amid an ongoing backdrop of robust fiscal support, low interest rates,and accommodative monetary policy.The vaccine rollout has been fasterthan expected and roughly 201/o of the US population is now fully vaccinated,and more than one third has received at least one dose. Meanwhile, robust fiscal spending along with the Federal Reserve's highly accommodative monetary policy continues to provide support for the economy and financial markets. Last month, President Biden signed a $1.9 trillion fiscal relief plan (bringing the total amount of pandemic-related fiscal relief legislation in the last year to about$5.5 trillion)and at then end of March he unveiled a $2.3trillion infrastructure spending proposal. We expect some version of an infrastructure spending bill to come to fruition later this year. Estimates for US gross domestic product (GDP) growth this year continue to migrate higher.The current Bloomberg consensus estimate for 2021 US GDP growth is now 6.2%. • The Federal Open Market Committee kept monetary policy unchanged at their March meeting as expected, with the fed funds target rate in a range of 0.0%to 0.25%. The Fed also continues to purchase $80 billion of Treasuries per month, and $40 billion of agency mortgage-backed securities per month. The Fed intends to remain highly accommodative until the labor market has made a strong recovery and inflation is sustainably on track to achieve their 2.0% longer-run target.The majority of Fed policymakers expect to keep the fed funds rate unchanged through 2023.Though inflation rates are likely to increase in the coming months (due to low inflation last year and near-term supply constraints), the Fed believes the increase will be transitory and the Fed intends to remain on the sidelines. Fed Chair Powell emphasized that policymakers will clearly telegraph their outlook for monetary policy well in advance of any future policy changes. The yield curve has steepened.Year-to-date,the yield on 2-year Treasuries is about four basis points higherwhile the yield on 10-year Treasuries is nearly 83 basis points higher, as of March month-end. In April, we have seen a modest retreat in longer-term Treasury yields. Nevertheless, we believe the Treasury yield curve is poised to modestly steepen further as the year progresses, which would be consistent with an improving economic outlook, more widespread vaccine distribution,the anticipation of ongoing fiscal spending,and a moderate pick-up in inflation. 3 �I�� DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C I Will $5.5 Trillion Stimulus Propel Growth and Inflation? Fiscal Package CARES Act $2.23 Trillion Coronavirus Relief Bill $484 Billion Phase 4 Stimulus $908 Billion American Rescue Plan $1.9 Trillion Total So Far $5.5 Trillion Stimulus Checks Unemployment Assistance Tax Credits Individuals $799 Billion(42%) States Municipalities Infrastructure Local Governments $360 Billion(19%) Transportation$56 Billion I Public Transit,Airlines/Airports,Amtrak Education$176 BillionI K-12/Higher Education Transportation/Education/Housing Housing$48 Billion Housing Assistance $280 Billion(15%) COVID Policy$123 Billion ' COVID Testing/Contact Tracing,FEMA Vaccine Distribution Health$228 Billion(12%) Healthcare$105 Billion ' Defense Production siness$75 Billion(4%) Small Business$59 Billion PPP Other$146 Billion(15%) Restaurants,Small Business Loans Agriculture$16 Billion ■ Farm Relief IPension Bailouts,Cybersecurity Source:US Congress 4 Q11 DocuSign Envelope ID:E1 BA391D2-53132-46132-131 EA-63D9F53591 BC Federal Reserve Federal Reserve Balance Sheet Assets Effective Federal Funds Rate 8,000,000 3.00% 7,500,000 2.50% 7,000,000 6,500,000 2.00% �%% 6,000,000 %�� _ v_ 1.50% vE i 5,500,000 } 1 c 1 5,000,000 1.00% 1 1 4,500,000 1 1 4,000,000 0.50% 1 1 3,500,000 0.00% 9p~19 ✓ ✓ijZ9 pct 79 ✓d��0 9p~�O ✓4j�O Oc�2O ✓d�2� 9p,�Z qo,�9 ✓4j�9 Oz9 ✓a��0 gpr�O -ell p2O ✓a'��� qor�� Source:Federal Reserve Source:Bloomberg Last year,the Fed took a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets.The Fed lowered the fed funds target rate to a range of 0.0%-0.25%and continues to purchase Treasury and agency mortgage-backed securities to support smooth market functioning. Last year, policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund Liquidity Facility.The Fed also established the Primary Market Corporate Credit Facility,Secondary Market Corporate Credit Facility, Term Asset-Backed Securities Loan Facility, Paycheck Protection Program Liquidity Facility, Main Street Lending Facility, and Municipal Liquidity Facility. The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Notably, many of the Fed's lending facilities expired at the end of 2020,including the Fed's corporate credit,asset-backed securities, municipal lending,and Main Street Lending programs. 5 Q11 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C IEmployment Nonfarm Payroll (000's) Unemployment Rate 6,000 24.0% 1\ 1 \ 2,000 ��♦ 20.0% 1 1 1 / 1 o -2,000 00 16.0% \\ 1 \ -6,000 1 12.0% -10,000 z j 8.0% j 0 -14,000 -18,000 —Non-farm Payroll(0001s) 4.0°% --- Underemployment Rate(U6) --3 month average(000's) Unemployment Rate(U3) -22,000 0.0% d ,� b161 c41dr h, b, 6 1 2j9 6 2/ OC" Pc, c,r,19 .9 ,9 ,�9 )O _)O _)O �O 79 --')o O r �7 Source:US Department of Labor Source:US Department of Labor U.S. nonfarm payrolls were much stronger than expected in March, up 916,000, versus the Bloomberg consensus forecast of 660,000. February payrolls were also revised higher reflecting a 468,000 gain. Payrolls in the leisure and hospitality sector showed the strongest gains adding another 280,000 jobs. As expected, the unemployment rate declined to 6.09/o in March from 6.2% in February.The participation rate increased in March to 61.5%from 61.49/o last month but remains below pre-pandemic levels. Although the employment picture continues to improve, payrolls are approximately 8.4 million below the 152.5 million level prior to the pandemic. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 10.7%in March from 11.1%in February. 6 CJ" DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC IInitial Claims for Unemployment Initial Claims For Unemployment January 01,2021-April 02,2021 8,000 Initial Jobless Claims 7,000 Continuing Claims 5,140 5,061 6,000 I I 4,878 I 4,791 4,655 4,591 I 4,469 4,383 4,113 5,000 4,157 3,841 3,750 I I 3,734 4,000 I I R N 7 0 3,000 c 2,000 1,000 781 904 886 836 837 863 847 747 761 734 765 658 728 744 O O O O O O O O O O O O O O 7j Z1 7j 7j 71 �j �j 2, �j �', & & ? 4, �9i OS, 7�� 79� �6i Os, 7�� 7y� �6i O�j Source:US Department of Labor In the most recent week, the number of initial jobless claims increased to 744,000 versus 728,000 in the prior week. The level of continuing unemployment claims (where the data is lagged by one week) declined slightly to about 3.734 million from roughly 3.750 million in the prior week. Although continuing jobless claims are much lower than the peak of nearly 25 million last May, they remained above the 2019(pre- pandemic)average of 1.7 million. 7 Q11 DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC I Inflation Consumer Price Index(CPI) Personal Consumption Expenditures (PCE) 3.0% 2.5% PCE Price Deflator YOY%Change 2.5% --- PCE Core Deflator YOY%Change ° 1 W ♦ 1 M 1 M 1.5% 1 �. u 1.5% ' u 1 �/ i ♦—� i 1.00 1 1.0% 0.5% CPI YOY%Change 0.5% --- Core CPI YOY%Change 0.0% 0.0% �P6 �dy q4� .yaG �P6 �dy q4g aG �0 �P6 �dy qel �joG cP6 ,�0` q4g �,aG cPb 19 1g 79 7g �O 2� �p �p 2,7 s 19 .Zy '79 -"O �� )o �O �7 Source:US Department of Labor Source:US Department of Commerce The Consumer Price Index(CPI)was up 1.7%year-over-year in February,versus up 1.49/o year-over-year in January.However, Core CPI (CPI less food and energy)was up just 1.3%year-over-year in February,versus up 1.49/o in January.The Personal Consumption Expenditures (PCE) index was up 1.6%year-over-year in February,versus up 1.49/o year-over-year in January.Core PCE,which is the Fed's primary inflation gauge, was up 1.49/o year-over-year in February, versus up 1.5%year-over-year in January. Inflation rates are likely to increase as we begin to cycle through the deflationary impact of the pandemic last year, but for now inflation remains below the Fed's longer-run 2.09/o target. 8 Q11 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Consumer Retail Sales YOY%Change Consumer Confidence 15.0% 140 10.0% 130 5.0% w 120 0.0% .■■■■■■■■■■11 ■■■■■■■ u -5.0% ■ ■ v 110 0 X 0 10.0% c 100 - -15.0 90 -20.0% WNJ -25.0% 80 SPS �P619 19 g4"19 �oG19 �P6�0 �aL�O 94g"0 �oG2o 1 •�a~19 ✓��19 SPp19 QPc19 •�ar�0 ✓4''o "0 QPc110 4,- 11 Source:US Department of Commerce Source:The Conference Board On a year-over-year basis, retail sales were up 6.3%in February versus up 9.5% in January. On a month-over-month basis, retail sales fell 3.0% in February, following a sizable 7.6% increase in January. While January sales were boosted by federal stimulus checks, February sales were likely hindered by severe winter weather. We expect retail sales to bounce back in March, as another round of federal stimulus checks were delivered in the month. The Consumer Confidence index jumped to 109.7 in March from 90.4 in February, which also points to a pick-up in consumer spending for March. 9 Q11 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C IEconomic Activity Leading Economic Indicators (LEI) Chicago Fed National Activity Index(CFNAI) 4.0% 6.00 2.0% IN 4.00 2.00 im 0.0% iw c m 0.00 -2.0% r c -2.00 0 -4.0% m -4.00 -6.0% -6.00 -8.0% -8.00 AP6 �dy q�g .ioG X196 4,- /P0 q�g .iaG �P6 �P6 �dl, q4g �,oG �P6 �dy q4� 4,oG �'96 1,g ?9 'l.9 19 �o )p �0 'D �7 1y I9 79 79 �O 2o �o �0 2I Source:The Conference Board Source:Federal Reserve Bank of Chicago The Conference Board's Leading Economic Index (LEI) rose 0.2% month-over-month in February (following a 0.49/o increase in January) but remained down 1.3% on a year-over-year basis. According to the Conference Board, the index suggests the economy should continue to improve this year.While some components of the LEI showed signs of weakness in February, the Conference Board believes it may have been due to transitory factors such as bad weather and supply-chain disruptions.Severe winter weather likely had a negative impact on the Chicago Fed National Activity Index (CFNAI) in February as well.The CFNAI dropped to-1.09 in February from +0.75 in January. On a 3-month moving average basis,the CFNAI declined to-0.02 in February from 0.46 in January.The index turned negative on both a one month and 3-month basis in February,and a negative index reading corresponds to below trend growth. 10 Q11 DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC IHousing Housing Starts 5&P/Case-Shiller 20 City Composite Home Price Index 1800 12.0% 1600 6 1400 I 10.0°/0 m1200 t 8.0% c 1000 , 800 v 6.0% c 111111LIFamily ' m 600 O 4.0% M } 400 amily Housing Starts 0 0 200 Housing Starts 2.0% 0 0.0% X06, �dy gel �01, x(16 ��y 9el �Op X016 j�� _1L jell O�� �°'� 9br, ��'� 0 �a7 ?9 1y '19 '79 �O �� ')O �O �1 Zy Ig I9 dg 1101 "p �O �O �Z Source:US Department of Commerce Source:S&P Total housing starts declined 10.3%in February to an annual pace of 1,421,000.Single family starts fell 8.5%to an annualized rate of 1,040,000, while multi-family starts fell 15.09/o to an annualized rate of 381,000. On a year-over-year basis, total housing starts were down 9.3% in February. Meanwhile, permits declined 10.8%on a month-over-month basis in February, to an annualized rate of 1,682,000. It appears that rising mortgage rates is beginning to present a headwind to the housing sector which has been quite strong during the pandemic. According to the Case-Shiller 20-City home price index, home prices were up 11.1%year-over-year in January versus up 10.2%year-over-year in December. We believe rising mortgage rates may put pressure on home prices in the months ahead. 11 Q11 DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC IManufacturing Institute of Supply Management Purchasing Manager Industrial Production Index 66 6.0% 64 62 2.0% 60 EXPANDING 58 ON -2.0% — 56 54 u -6.0% 52 r' 50 0 48 '-10.00/. 46 CONTRACTING 44 -14.0% 42 40 -18.0% �dr ✓�7, , �Pc. �dr ✓4r1, sib, �Pc, 47 4" 946 ��L, �Q6, �0 9el X01, �P6 1y 19 '79 '19 )o �O ,)O "O �1 79 Zq 19 79 )O �0 �O �O �7 Source:Institute for Supply Management Source:Federal Reserve The Institute for Supply Management (ISM) manufacturing index increased to 64.7 in March from 60.8 in February. Readings above 50.0 are indicative of expansion in the manufacturing sector. We believe a weaker US dollar has been supportive of the US manufacturing sector throughout the past year.The Industrial Production index was down 4.3%year-over-year in February,versus down 2.09/o in January.On a month- over-month basis, the Industrial Production index fell 2.2% in February, following a 1.1% increase in January.The Federal Reserve said the decline was largely driven by severe winter weather.Capacity Utilization dropped to 73.8%in February from 75.5%in January and remains well below the long-run average of 79.8%. 12 Q11 DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC Gross Domestic Product (GDP) Gross Domestic Product (GDP) 35.0% 30.0% 25.0% Personal Consumption Expenditures -4.8% -24.0°/% 25.4°/% 1 A 20.0% 15.0% Gross Private Domestic Investment -1.6% -8.8% 12.0% 4.4% 10.0% 5.0% 11IF 0.0% Net Exports and Import 1.1% 0.6% -3.2% 5.0% 10.0% Federal Government Expenditures 0.1% 1.2% -0.4% -0.1% -15.0% GDP QOQ%Change -20.0% State and Local25.0% -GDP YOY%Change 0.1% -0.4% -0.490 Consumption and M-30.0% Gross Investment) -35.0% Total -5.0% -31.4% 33.4% 4.3% OPC, ✓4�. OPC' On, ✓4�. OOn, ✓4�. OOn, ✓4�. OOn, ZS 76' Z6 Zj Zj 4 Z8 Z9 Z9 -)O '1O Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, real US gross domestic product(GDP)grew at an annualized rate of 4.3%in the fourth quarter of 2020(slightly higher than the second estimate of 4.1%), following 33.49/16 growth in the third quarter and a 31.49/16 annualized decline in the second quarter. Personal consumption expenditures rose at an annual rate of 2.3%in the fourth quarter. The consensus forecast for US gross domestic product growth in 2021 is 6.2%,following a 3.5%decline in 2020. 13 Q11 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Bond Yields US Treasury Note Yields US Treasury Yield Curve 3.0% 2.5% •••••• 2-Year Mar-21 2.5% --- 5-Year o --- Dec-20 2.0/o y'% 10-Year •••••• Mar-20 2.0% \j 1.5% v 1.5% a 1 >. a} 1.0% 1.0% OP , 0.5% 0.5% 1�i�� ............ ISI 0.0% 0.0% �a~19 ✓4 19 SPp19 �Pc19 �d~�p ✓���D sPp�O ��o�o &0 Source:Bloomberg Source:Bloomberg The treasury yield curve is much steeper relative to this time last year.The 3-month T-bill yield is about four basis points lower,and the 2-year Treasury yield is about four basis points higher, while the 10-Year Treasury yield is about 83 basis points higher, year-over-year, as of March month-end. Yields declined precipitously in March 2020, with the Fed cutting rates by a total of 150 basis points and a flight to safe-haven assets driving down yields across the curve. Since late 2020, longer-term yields have been rising and the yield curve has steepened. The Fed has signaled plans to keep the front end of the Treasury yield curve anchored near zero until at least 2023. 14 Q11 � � '1FPII 14 DocuSign EnvelopelD:E1BA39D2-53B2-46B2-B1 EA-63D9F53591BC Section 2 Consolidated Account Profile 15 C® DocuSign Envelope ID:El BA39D2-53B2-46B2-B1 EA-63D9F53591 BC Objectives As of March 31,2021 Investment Objectives The investment objectives of the City of Tustin are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return. Chandler Asset Management Performance Objective The performance objective for the accounts is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 16 Q" DocuSign Envelope ID:E1 BA391D2-53132-46132-131 EA-63D9F53591 BC kL Compliance As of March 31,2021 City of Tustin Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy. Category Standard I Comment U.S.Treasuries No limitations; U.S.government obligations issued by the U.S.Treasury and backed by the full faith and credit of the Federal government Complies 50%max per issuer; Federal agencies or U.S.government-sponsored enterprise obligations,participations,or other instruments,including those issued by or fully Federal Agencies guaranteed as to principal and interest by federal agencies or U.S.government-sponsored enterprises Complies AA"rating category or better by a NRSRO; 5%max; 5%max per issuer; USD denominated senior unsecured unsubordinated obligations;Issued or unconditionally guaranteed by one of the three supranational banking groups:International Bank for Reconstruction and Development(IBRD),International Finance Corporation(IFC),or Supranational Obligations Inter-American Development Bank(IADB); Supranational securities will not be purchased until further notice from staff at the City of Tustin. Complies 30%max; 5%max per issuer; Bonds issued bythe local agency(City of Tustin bonds);State of California and any local agency within the State of California,including bonds payable solely out of the revenues form a revenue-producing property owned,controlled,or operated by a local agency,or by a department,board,agency,or authority of Municipal Securities(CA,Local Agency) the local agency Complies 30%max; 5%max per issuer; Bonds of any of the other49 states in addition to California,including bonds payable solely out of the revenues from a revenue-producing Municipal Securities(CA,Other States) property owned,controlled,or operated by a state,or by a department,board,agency,or authority of any of the other49 states,in addition to California Complies "A"rating or better by a NRSRO;30%max; 5%max per issuer; 10% max of any single issuer(combined issuer limitation of a local agency's investments in commercial paper and medium-term notes); Obligations of a domestic corporation or depository institution; If the credit rating of a security is downgraded belowthe minimum rating Corporate Medium Term Notes level for a new investment of that security,the Treasurer shall evaluate the downgrade on a case-by-case basis to determine if the security should be held or sold. Complies Mortgage Pass-Through Securities "AA"rated or better by a NRSRO; 20%max; 10%max per issuer Complies 30%max; 5%max per issuer; Certificates of deposit issued by a nationally or state-chartered bank,or a federal association,a state or federal credit union,or by a federally- Negotiable Certificates of Deposit(NCD) licensed or state-licensed branch of a foreign bank Complies Certificate of Deposit Placement Service(CDARS) 30%max;The City may utilize these at the discretion of the Treasurer Complies Collateralized Bank Deposits/Time or 30%max per issuer;All active(checking/savings accounts)and inactive(time or certificates of deposit)above FDIC insured limits must be collateralized pursuant to Certificates of Deposit Government Code Complies "A"rating or better by Moody's or equivalent rating by a NRSRO; 30%max; 5%max per issuer; 180 days maturity; Short-term debt instruments issued by a company that Bankers'Acceptances is guaranteed by a commercial bank Complies A-1/P-1 rating or equivalent by a NRSRO,plus A long term rating by a NRSRO; 30%max,5%max per issuer; 10% max of any single issuer(combined issuer limitation of a local agency's investments in commercial paper and medium-term notes); 10%max outstanding from a single issuer; 270 days max maturity; Prime"quality commercial paper with the highest rating by a NRSRO;The entity that issues the commercial paper shall meet all conditions in either(1)or(2): Commercial Paper (1)a.Organized and operating in the U.S.as a general corporation; b. Has total assets>$500 million; c. Has debt other than commercial paper,if any,that is"A"rating Complies category or higher by a NRSRO; (2)a.Organized within the U.S.as a special purpose corporation,trust,or LLC;b. Has program wide credit enhancements including,but not limited to,overcollateralization, letters of credit or suretv bond:and c."A-1"rated or hieher by a NRSRO Money Market Mutual Funds AAA or highest ranking of two of the three highest ranking NRSRO;Retained an investment adviser registered with SEC with>5 years experience investing assets of at least Complies $500 million; Must invest solely in investments,which the City itself could legally purchase; 20%max; 10%max per Money Market Mutual Fund Max amount limited to the amount as specified by LAIF; Principal amount withdrawal of$10 million or>needs 24-hour notice,and less than$10 million may be withdrawn Local Agency Investment Fund(LAIF) the same day; Fees charged by LAIF are limited by Statute; Not used by investment adviser Complies Local Government Investment Pool(LGIP)/ Orange County Investment Pool(OCIP) Investment in OCIP is allowable according to guidelines in Government Code; Max amount permitted by County Treasurer; Not used by investment adviser Complies 50%max per issuer; Shares of beneficial interest issued by a joint powers'authority organized pursuant to Section 6509.7 that invests in securities and obligations Joint Powers Authority(JPA)Investment Pools authorized in subdivisions(a)to(q),inclusive per policy Complies Repurchase Agreements 30%max;5%max per issuer;1 year max maturity;102%Collateralized; Not used by investment adviser Complies Inverse floaters,range notes,mortgage derived interest-only strips; zero interest accrual if held to maturity;Purchasing or selling securities on margin,credit,or for other than full cash payment,and shall not be pledged as collateral; Reverse Repurchase Agreements; Supranational securities will not be purchased until further notice from Prohibited staff at the City of Tustin. Complies Weighted Average Maturity 36 months max Complies Maximum Maturity 5 years,unless authorized by City Council Complies *Maximum and Issuer concentration complies on a consolidated basis;Inherited securities 17 Q" DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Portfolio Characteristics As of March 31,2021 City of Tustin Consolidated Account 3/31/2021 12/31/2020 Benchmark* Portfolio Portfolio Average Maturity(yrs) 2.66 0.28 0.36 Average Modified Duration 2.59 0.28 0.35 Average Purchase Yield n/a 0.89% 1.05% Average Market Yield 0.36% 0.30% 0.37% Average Quality** AAA AA+/Aa2 AA/Aa2 Total Market Value 126,586,140 134,377,549 *ICE BAML 1-5 Year US Treasury/Agency Index **Benchmark is a blended rating of S&P,Moody's,and Fitch.Portfolio is S&P and Moody's respectively. 18 C1ll DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C ISector Distribution As of March 31,2021 City of Tustin Consolidated Account March 31,2021 December 31,2020 Money Market Fund FI Agency Negotiable CD Agency 10.9/0.8% Negotiable CD g o 7.5% o Municipal Bonds 10.0/ 7.2% Cash 410 Cash Municipal Bonds 2.6% 6.2% 4.3% Local Gov Corporate Investment Pool Local Gov 9.4% Investment Pool 6'10 � Corporate 9.0% 11.9% LAIF LAIF 56.7% 53.3% $9,061,852.88 $3,308,760.94 $11,836,050.88 $71,792,111.51 $10,099,102.44 $8,291,741.22 $16,010,036.22 M$71,675,336.89 $11,455,699.56 $5,449,906.65 $12,622,188.20 $1,059,569.32 $8,150,761.95 $5,477,780.85 $14,672,789.00 The combined total of municipal bonds,Bankers'Acceptance,Commercial Paper, Repurchase Agreements, Medium-Term Notes, and Suprantionals does not exceed 30%of the total portfolio book value at the time of purchase. C/` 19 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Issuers As of March 31,2021 City of Tustin Consolidated Account -Account#10795 InvestmentType -10 Pill %Portfolio Local Agency Investment Fund LAIF 56.71% CAMP Local Gov Investment Pool 8.14% Toyota Motor Corp Corporate 3.68% Federal Home Loan Bank Agency 3.25% Bank Cash Account Cash 2.61% Federal Home Loan Mortgage Corp Agency 2.44% Apple Inc Corporate 1.63% State of California Municipal Bonds 1.62% ChevronTexaco Corp Corporate 1.61% Federal National Mortgage Association Agency 1.47% Santa Rosa Regional Resources Municipal Bonds 1.19% Orange County Investment Pool Local Gov Investment Pool 0.91% First American Govt Oblig Fund Money Market Fund FI 0.84% Visa Inc Corporate 0.81% City of Industry CA Municipal Bonds 0.81% Procter&Gamble Company Corporate 0.81% Pfizer Inc. Corporate 0.81% Murrieta Redevelopment Agency Municipal Bonds 0.48% Delaware State Police FCU Negotiable CD 0.21% UBS Corp Negotiable CD 0.21% California Edl Facs Auth Rev Municipal Bonds 0.21% Sallie Mae Bank Negotiable CD 0.21% Alliance Credit Union MO Negotiable CD 0.20% First Bank of Highland Negotiable CD 0.20% Signature Bank Chicago IL Negotiable CD 0.20% Mountain America FCU Negotiable CD 0.20% Allegiance Bank Negotiable CD 0.20% First Premier Bank Negotiable CD 0.20% Traverse City State Bank Negotiable CD 0.20% Barclays Bank Negotiable CD 0.20% FNB Bank Inc Negotiable CD 0.20% First Internet Bank of Indiana Negotiable CD 0.20% DNB First NA Negotiable CD 0.20% First Jackson Bank Inc Negotiable CD 0.20% Celtic Bank Negotiable CD 0.20% Northfield Bank Negotiable CD 0.20% Nebraska State Bank&Trust Negotiable CD 0.20% Keesler Federal Credit Union Negotiable CD 0.20% 20 C1" DocuSign Envelope ID:E1 BA391D2-53132-46132-131 EA-63D9F53591 BC Issuers As of March 31,2021 City of Tustin Consolidated Account -Account#10795 Uinta Bank Negotiable CD 0.20% American Eagle Bank IL Negotiable CD 0.20% Ohio Valley Bank Negotiable CD 0.20% Great Plains Bank SD Negotiable CD 0.20% EagleBank Negotiable CD 0.20% First Technology Federal Negotiable CD 0.20% RCB Bank Negotiable CD 0.20% Country Bank Newyork Negotiable CD 0.20% Central Federal Savings Negotiable CD 0.20% Partners Bank California Negotiable CD 0.20% Lake Bank Negotiable CD 0.20% Palmetto Heritage Bank&Trust Negotiable CD 0.20% Citigroup Inc Negotiable CD 0.20% Mercantil Bank NA Negotiable CD 0.20% TowneBank/Portsmounth VA Negotiable CD 0.20% Abacus Federal Savings Bank Negotiable CD 0.20% Stockyards Bank Negotiable CD 0.20% Bankers Bank Madison WI Negotiable CD 0.20% Central State Bank Iowa Negotia b le CD 0.20% FNB Bank Inc Romney WV Negotiable CD 0.20% CMS Energy Corp Negotiable CD 0.20% Commercial Bank Alma MI Negotiable CD 0.20% Nebraskaland National Bank Negotiable CD 0.20% Marine Bank Negotiable CD 0.20% Citizens ST Bank of Somerville Negotiable CD 0.20% Winter Hill Bank FSB Negotiable CD 0.20% Stifel Bank Negotiable CD 0.20% Gold Coast Bank of Chicago Negotiable CD 0.20% Ponce Bank/Bronx NY Negotiable CD 0.20% Bank ofthe Pacific Negotiable CD 0.20% Triad Bank of Frontenac MO Negotiable CD 0.20% TOTAL 100.00% 21 �1�� DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC IMaturity Distribution As of March 31,2021 City of Tustin Consolidated Account $100,000,000.00 $95,228,707.10 $80,000,000.00 $60,000,000.00 $40,000,000.00 $20,000,000.00 $18,257,564.88 $7,641,485.77 $0.00 $0.00 $0.00 $3,592,542.86 $1,865,839.33 $o.00 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity(Yrs) 22 Q DocuSign Envelope ID:El BA391D2-53132-46132-131 EA-63D9F53591 BC Quality Distribution As of March 31,2021 City of Tustin Consolidated Account March 31,2021 vs.December 31,2020 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% • AAA AA A <A NR ■3/31/2021 0 12/31/2020 03/31/21 9.0% 15.0% 5.0% 0.0% 71.0% 12/31/20 5.2% 17.2% 5.5% 0.0% 72.1% Source:S&P Ratings 23 ci" DocuSign Envelope ID:El BA39D2-53B2-46B2-B1 EA-63D9F53591 BC IDuration Distribution As of March 31,2021 City of Tustin Consolidated Account March 31,2021 vs.December 31,2020 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% ■ 0-0.25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5+ ■March 31,2021 December 31,2020 03/31/21 75.2% 2.8% 6.9% 13.8% 1.3% 0.0% 0.0% 0.0% 12/31/20 70.8% 4.9% 5.0% 17.9% 1.2% 0.2% 0.0% 0.0% 24 QJ1 DocuSign Envelope ID:E1 BA39D2-53B2-46B2-B1 EA-631D9E53591 BC Investment Performance As of Morch 31,2021 City of Tustin Consolidated Account Total Rate of Return Since Inception 11/30/2020 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% -0.50% -0.60% 3 months Since Inception ■City of Tustin ■ICE BAML 1-5 Year US Treasury/Agency Index ■ICE BAML 1-3 Yr US Treasury/Agency Index TOTAL RATE OF RETURN Latest 3 months Since Inception City of Tustin Consolidated Account 0.10% 0.15% ICE BAML 1-5 Year US Treasury/Agency Index -0.52% -0.45% ICE BAML 1-3 Yr US Treasury/Agency Index -0.05% 0.00% Total rate of return:A measure of a portfolio's performance over time.It is the internal rate of return,which equates the beginning value of the portfolio with the ending value;it includes interest earnings,realized and unrealized gains and losses in the portfolio. 2s c1J1 �D,cuS-'ign Envelope ID:E1BA39D2-53B2-46B2-B1 EA-63D9F53591BC Section 3 Portfolio Holdings 26 C® DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP, Security Description r. 3136G3U94 FNMA Callable Note 1X 8/25/2017 1,850,000.00 08/25/2016 1,850,000.00 100.20 1,853,637.10 1.47% Aaa/AA+ 0.15 1.400% Due 05/25/2021 1.40% 1,850,000.00 0.09% 2,590.00 3,637.10 AAA 0.15 3130AB3U8 FHLB Callable Note 1X4/26/2019 4,000,000.00 04/26/2017 4,000,000.00 102.09 4,083,576.00 3.25% Aaa/AA+ 1.07 2.100% Due 04/26/2022 2.10% 4,000,000.00 0.14% 36,166.67 83,576.00 NR 1.05 3134GBMB5 FHLMC Callable Note 1X5/25/2018 1,000,000.00 05/25/2017 1,000,000.00 102.21 1,022,127.00 0.81% Aaa/AA+ 1.15 2.050% Due 05/25/2022 2.05% 1,000,000.00 0.12% 7,175.00 22,127.00 AAA 1.13 3134GBWQ1 FHLMC Callable Note 1X7/27/2018 2,000,000.00 07/27/2017 1,996,000.00 102.47 2,049,470.00 1.62% Aaa/AA+ 1.32 2.000% Due 07/27/2022 2.04% 1,998,944.14 0.13% 7,111.11 50,525.86 AAA 1.31 8,846,000.00 9,008,810.10 7.16% Aaa/AA+ 0.95 TOTALAgency 8,850,000.00 1.94% 8,848,944.14 0.13% 53,042.78 159,865.96 Aaa 0.94 Cash 90BOFA$00 Cash BOA Cash Acct 3,308,760.94 Various 3,308,760.94 1.00 3,308,760.94 2.61% NR/NR 0.00 0.25% 3,308,760.94 0.25% 0.00 0.00 NR 0.00 3,308,760.94 3,308,760.94 2.61% NR/NR 0.00 TOTAL Cash 3,308,760.94 0.25% 3,308,760.94 0.25% 0.00 0.00 NR 0.00 Corporate lliiiiiiim i 717081DZ3 Pfizer Inc.Note 1,000,000.00 07/16/2018 976,000.00 101.33 1,013,265.00 0.81% A2/A+ 0.71 2.200% Due 12/15/2021 2.94% 995,038.46 0.32% 6,477.78 18,226.54 A 0.70 89236TDP7 Toyota Motor Credit Corp Note 1,000,000.00 07/13/2017 1,017,027.84 101.79 1,017,921.00 0.81% Al/A+ 0.78 2.600% Due 01/11/2022 2.20% 1,002,953.70 0.29% 5,777.78 14,967.30 A+ 0.77 742718DY2 Procter&Gamble Cc Note 1,000,000.00 07/16/2018 979,800.00 101.76 1,017,627.00 0.81% Aa3/AA- 0.85 2.300% Due 02/06/2022 2.90% 995,171.25 0.22% 3,513.89 22,455.75 NR 0.84 166764BN9 Chevron Corp Callable Note Cont 2/3/2022 2,000,000.00 08/10/2017 2,034,400.00 101.89 2,037,836.00 1.61% Aa2/AA- 0.92 2.498% Due 03/03/2022 2.10% 2,006,937.82 0.24% 3,885.78 30,898.18 NR 0.84 037833CQ1 Apple Inc Callable Note Cont 4/11/2022 2,000,000.00 06/26/2017 2,015,402.54 102.23 2,044,598.00 1.63% Aal/AA+ 1.11 2.300% Due 05/11/2022 2.13% 2,003,504.51 0.13% 17,888.89 41,093.49 NR 1.02 89236TEC5 Toyota Motor Credit Corp Note 2,500,000.00 11/01/2017 2,482,750.00 102.59 2,564,780.00 2.03% Al/A+ 1.44 2.150% Due 09/08/2022 2.30% 2,494,889.25 0.34% 3,434.03 69,890.75 A+ 1.42 92826CAG7 Visa Inc Callable Note Cont 8/15/2022 1,000,000.00 10/03/2017 1,002,301.43 102.57 1,025,680.00 0.81% Aa3/AA- 1.46 2.150% Due 09/15/2022 2.10% 1,000,677.19 0.27% 955.56 25,002.81 NR 1.36 27 Q11 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP Security Description ParValue/Units Purchase Date Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 89236TFNO Toyota Motor Credit Corp Note 1,000,000.00 02/28/2019 1,019,000.00 107.14 1,071,356.00 0.85% Al/A+ 2.47 3.450% Due 09/20/2023 3.00% 1,010,293.09 0.54% 1,054.17 61,062.91 A+ 2.38 11,526,681.81 11,793,063.00 9.35% Al/AA- 1.22 TOTAL Corporate 11,500,000.00 2.38% 11,509,465.27 0.28% 42,987.88 283,597.73 A+ 1.16 LAIF ff- 90LAIF$00 Local Agency Investment Fund State Pool 71,719,587.69 Various 71,719,587.69 1.00 71,719,587.69 56.71% NR/NR 0.00 0.35% 71,719,587.69 0.35% 72,523.82 0.00 NR 0.00 71,719,587.69 71,719,587.69 56.71% NR/NR 0.00 TOTAL LAIF 71,719,587.69 0.35% 71,719,587.69 0.35% 72,523.82 0.00 NR 0.00 Local Gov Investment Pool 900CIP$01 Orange County Investment Pool 1,146,906.10 Various 1,146,906.10 1.00 1,146,906.10 0.91% NR/NR 0.00 0.84% 1,146,906.10 0.84% 0.00 0.00 NR 0.00 90CAMP$00 California Asset Mgmt Program CAMP 10,308,793.46 Various 10,308,793.46 1.00 10,308,793.46 8.14% NR/AAA 0.00 0.07% 10,308,793.46 0.07% 0.00 0.00 NR 0.00 11,455,699.56 11,455,699.56 9.05% NR/AAA 0.00 TOTAL Local Gov Investment Pool 11,455,699.56 0.15% 11,455,699.56 0.15% 0.00 0.00 NR 0.00 Money Market Fund FI 31846V203 First American Govt Obligation Fund Class 1,059,569.32 Various 1,059,569.32 1.00 1,059,569.32 0.84% Aaa/AAA 0.00 0.01% 1,059,569.32 0.01% 0.00 0.00 AAA 0.00 1,059,569.32 1,059,569.32 0.84% Aaa/AAA 0.00 TOTAL Money Market Fund FI 1,059,569.32 0.01% 1,059,569.32 0.01% 0.00 0.00 Aaa 0.00 Municipal Bonds isll- 13063DAC2 California State STE-GO 1,000,000.00 04/27/2017 1,023,400.00 100.00 1,000,000.00 0.80% Aa2/AA- 0.00 2.625% Due 04/01/2021 2.00% 1,000,000.00 2.63% 13,125.00 0.00 AA 0.00 802629AW5 Santa Rosa Regional Resources STE-REV 980,000.00 10/03/2017 987,154.00 100.64 986,301.40 0.78% NR/AA+ 0.34 2.200% Due 08/01/2021 2.00% 980,624.31 0.27% 3,593.33 5,677.09 AA 0.33 62719PAX4 Murrieta Redevelopment Agency STE-TA 350,000.00 10/18/2017 349,135.50 100.55 351,921.50 0.28% NR/A 0.34 2.250% Due 08/01/2021 2.32% 349,923.74 0.60% 1,312.50 1,997.76 NR 0.33 45656RDV1 City of Industry CA STE-REV 1,000,000.00 05/17/2017 1,013,000.00 101.62 1,016,230.00 0.81% A1/NR 0.76 2.750% Due 01/01/2022 2.45% 1,002,115.38 0.58% 6,875.00 14,114.62 NR 0.74 13063DADO California State TE-GO 1,000,000.00 04/27/2017 1,010,000.00 102.13 1,021,330.00 0.82% Aa2/AA- 1.00 2.367% Due 04/01/2022 2.15% 1,002,027.78 0.23% 11,835.00 19,302.22 AA 0.98 28 Q1 DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP Security Description ParValue/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 802629AX3 Santa Rosa Regional Resources STE-REV 500,000.00 10/03/2017 504,500.00 102.84 514,195.00 0.41% NR/AA+ 1.34 2.400% Due 08/01/2022 2.20% 501,243.05 0.27% 2,000.00 12,951.95 AA 1.31 62719PAY2 Murrieta Redevelopment Agency STE-TA 250,000.00 10/18/2017 249,345.00 102.42 256,052.50 0.20% NR/A 1.34 2.500% Due 08/01/2022 2.56% 249,817.51 0.67% 1,041.67 6,234.99 NR 1.31 13077DFD9 California State University TE-REV 250,000.00 08/02/2018 250,000.00 104.37 260,912.50 0.21% Aa2/AA- 1.59 3.054% Due 11/01/2022 3.05% 250,000.00 0.29% 3,181.25 10,912.50 NR 1.54 5,386,534.50 5,406,942.90 4.31% Aa3/AA- 0.68 TOTAL Municipal Bonds 5,330,000.00 2.23% 5,335,751.77 0.80% 42,963.75 71,191.13 AA 0.67 1111 IIIIIIIIIIIIIIIF Negotiable CD i or 89579NBU6 Triad Bank of Frontenac MO Negotiable CD 248,000.00 10/12/2017 248,000.00 100.06 248,148.80 0.20% NR/NR 0.03 1.850% Due 04/12/2021 1.85% 248,000.00 0.02% 251.40 148.80 NR 0.03 38058KDU7 Gold Coast Bank of Chicago Negotiable CD 248,000.00 11/09/2017 248,000.00 100.21 248,509.64 0.20% NR/NR 0.11 1.900% Due 05/10/2021 1.91% 248,000.00 0.02% 296.92 509.64 NR 0.11 507515BE3 Lake Bank Negotiable CD 249,000.00 06/22/2018 249,000.00 100.37 249,926.53 0.20% NR/NR 0.13 2.900% Due 05/17/2021 2.92% 249,000.00 0.01% 197.84 926.53 NR 0.13 06425BCK3 Bank of the Pacific Negotiable CD 248,000.00 08/24/2016 248,000.00 100.18 248,446.40 0.20% NR/NR 0.15 1.250% Due 05/24/2021 1.25% 248,000.00 0.03% 67.95 446.40 NR 0.15 732333AG4 Ponce De Leon Federal Bank Negotiable CD 248,000.00 05/26/2017 248,000.00 100.29 248,713.74 0.20% NR/NR 0.15 1.900% Due 05/26/2021 1.90% 248,000.00 0.02% 77.46 713.74 NR 0.15 33715LBL3 First Technology Federal Negotiable CD 249,000.00 06/14/2018 249,000.00 100.62 250,535.33 0.20% NR/NR 0.21 3.050% Due 06/14/2021 3.05% 249,000.00 0.05% 374.52 1,535.33 NR 0.20 861026AAO Stock Yards Bank Negotiable CD 246,000.00 06/14/2018 246,000.00 100.59 247,460.26 0.20% NR/NR 0.21 2.900% Due 06/14/2021 2.90% 246,000.00 0.01% 2,110.88 1,460.26 NR 0.21 17312QN47 Citibank NA Negotiable CD 246,000.00 06/15/2018 246,000.00 100.62 247,531.60 0.20% NR/NR 0.21 3.000% Due 06/15/2021 3.00% 246,000.00 0.01% 2,163.45 1,531.60 NR 0.21 22230PBS8 Country Bank New York Negotiable CD 249,000.00 06/20/2018 249,000.00 100.63 250,557.25 0.20% NR/NR 0.22 2.900% Due 06/18/2021 2.92% 249,000.00 0.01% 237.40 1,557.25 NR 0.22 27002YDS2 EagleBank Negotiable CD 249,000.00 06/15/2018 249,000.00 100.64 250,596.59 0.20% NR/NR 0.22 2.900% Due 06/21/2021 2.92% 249,000.00 0.05% 336.32 1,596.59 NR 0.22 74934YAJO RCB Bank Negotiable CD 249,000.00 06/20/2018 249,000.00 100.64 250,596.59 0.20% NR/NR 0.22 2.900% Due 06/21/2021 2.92% 249,000.00 0.05% 237.40 1,596.59 NR 0.22 58733AEX3 Mercantile Bank NA Negotiable CD 246,000.00 06/21/2018 246,000.00 100.67 247,652.63 0.20% NR/NR 0.22 3.000% Due 06/21/2021 3.00% 246,000.00 0.01% 2,042.14 1,652.63 NR 0.22 12325EHU9 Stifel Bank Negotiable CD 248,000.00 06/23/2017 248,000.00 100.40 249,000.43 0.20% NR/NR 0.23 1.800% Due 06/23/2021 1.80% 248,000.00 0.05% 110.07 1,000.43 NR 0.23 29 C1" DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP Security Description ParValue/Units Purchase Date Cost Va!ue Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration 975875AK1 Winter Hill Bank FSB Negotiable CD 248,000.00 06/26/2017 248,000.00 100.43 249,060.70 0.20% NR/NR 0.24 1.800% Due 06/28/2021 1.81% 248,000.00 0.05% 73.38 1,060.70 NR 0.24 63970QFG6 Nebraskaland National Bank Negotiable CD 248,000.00 06/28/2017 248,000.00 100.44 249,091.20 0.20% NR/NR 0.24 1.850% Due 06/28/2021 1.85% 248,000.00 0.05% 50.28 1,091.20 NR 0.24 89214PBR9 TowneBank/Portsmouth VA Negotiable CD 246,000.00 06/28/2018 246,000.00 100.73 247,793.59 0.20% NR/NR 0.24 3.000% Due 06/28/2021 3.00% 246,000.00 0.01% 1,900.60 1,793.59 NR 0.24 15347EAH2 Central Federal Savings Negotiable CD 249,000.00 06/28/2018 249,000.00 100.68 250,704.16 0.20% NR/NR 0.24 2.850% Due 06/28/2021 2.85% 249,000.00 0.04% 77.77 1,704.16 NR 0.24 56817TAB7 Marine Bank Negotiable CD 248,000.00 06/29/2017 248,000.00 100.45 249,103.60 0.20% NR/NR 0.25 1.850% Due 06/29/2021 1.85% 248,000.00 0.05% 37.71 1,103.60 NR 0.25 17670DAD6 Citizens ST Bank of Somerville Negotiable CD 248,000.00 06/30/2017 248,000.00 100.45 249,116.00 0.20% NR/NR 0.25 1.850% Due 06/30/2021 1.85% 248,000.00 0.04% 25.14 1,116.00 NR 0.25 06610RAQ2 Bankers Bank Madison WI Negotiable CD 248,000.00 07/14/2017 248,000.00 100.53 249,324.82 0.20% NR/NR 0.29 1.900% Due 07/14/2021 1.90% 248,000.00 0.04% 232.37 1,324.82 NR 0.29 15523RB14 Central State Bank Iowa Negotiable CD 248,000.00 07/14/2017 248,000.00 100.52 249,289.10 0.20% NR/NR 0.29 1.850% Due 07/14/2021 1.85% 248,000.00 0.04% 226.26 1,289.10 NR 0.29 30257JAC9 FNB Bank Inc Romney WV Negotiable CD 248,000.00 07/19/2017 248,000.00 100.54 249,350.86 0.20% NR/NR 0.30 1.850% Due 07/19/2021 1.85% 248,000.00 0.04% 163.41 1,350.86 NR 0.30 00257TAY2 Abacus Federal Savings Bank Negotiable CD 248,000.00 07/21/2017 248,000.00 100.59 249,452.04 0.20% NR/NR 0.31 1.950% Due 07/21/2021 1.95% 248,000.00 0.04% 145.74 1,452.04 NR 0.31 201282HD5 Commercial Bank Alma MI Negotiable CD 248,000.00 08/16/2016 248,000.00 100.51 249,262.57 0.20% NR/NR 0.38 1.400% Due 08/16/2021 1.40% 248,000.00 0.05% 152.20 1,262.57 NR 0.38 70212YAW2 Partners Bank California Negotiable CD 248,000.00 08/15/2017 248,000.00 100.69 249,708.72 0.20% NR/NR 0.38 1.850% Due 08/16/2021 1.85% 248,000.00 0.03% 565.64 1,708.72 NR 0.38 69709QAM3 Palmetto Heritage Bank&Trust Negotiable CD 248,000.00 08/21/2017 248,000.00 100.72 249,794.53 0.20% NR/NR 0.39 1.900% Due 08/20/2021 1.91% 248,000.00 0.04% 142.01 1,794.53 NR 0.39 29266N31-18 Enerbank USA Negotiable CD 248,000.00 08/26/2016 248,000.00 100.57 249,405.42 0.20% NR/NR 0.41 1.450% Due 08/26/2021 1.45% 248,000.00 0.05% 59.11 1,405.42 NR 0.40 49254FAQ9 Keesler Federal Credit Union Negotiable CD 249,000.00 02/28/2019 249,000.00 101.23 252,057.47 0.20% NR/NR 0.42 3.000% Due 08/30/2021 3.02% 249,000.00 0.05% 81.86 3,057.47 NR 0.41 903572CC7 Uinta Bank Negotiable CD 247,000.00 10/13/2017 247,000.00 101.07 249,641.17 0.20% NR/NR 0.54 2.050% Due 10/13/2021 2.05% 247,000.00 0.06% 2,358.34 2,641.17 NR 0.53 66612ABV9 Northfield Bank Negotiable CD 248,000.00 11/01/2017 247,256.00 101.05 250,609.70 0.20% NR/NR 0.56 1.950% Due 10/20/2021 2.03% 247,896.28 0.06% 2,159.64 2,713.42 NR 0.55 39115UAZ6 Great Plains Bank SD Negotiable CD 248,000.00 04/21/2017 248,000.00 101.30 251,220.03 0.20% NR/NR 0.73 1.850% Due 12/21/2021 1.85% 248,000.00 0.06% 138.27 3,220.03 NR 0.72 30 cj" DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP Security Description ParValue/Units Purchase Date Cost Va!ue Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Va ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration 02554BCRO American Eagle Bank IL Negotiable CD 247,000.00 07/13/2017 247,000.00 101.46 250,604.97 0.20% NR/NR 0.75 2.000% Due 12/30/2021 2.00% 247,000.00 0.06% 1,245.15 3,604.97 NR 0.75 677721CNO Ohio Valley Bank Negotiable CD 248,000.00 07/19/2017 248,000.00 101.47 251,648.08 0.20% NR/NR 0.81 1.900% Due 01/19/2022 1.90% 248,000.00 0.07% 167.82 3,648.08 NR 0.80 63969ACD4 Nebraska State Bank 8,Trust Negotiable CD 248,000.00 04/21/2017 248,000.00 101.67 252,137.63 0.20% NR/NR 0.90 1.950% Due 02/21/2022 1.95% 248,000.00 0.09% 145.74 4,137.63 NR 0.89 15118RMF1 Celtic Bank Negotiable CD 248,000.00 04/21/2017 248,000.00 102.12 253,260.08 0.20% NR/NR 1.06 2.100% Due 04/21/2022 2.10% 248,000.00 0.09% 156.95 5,260.08 NR 1.05 32063KAS1 First Jackson Bank Inc Negotiable CD 248,000.00 11/08/2017 248,000.00 102.16 253,361.76 0.20% NR/NR 1.11 2.050% Due 05/09/2022 2.06% 248,000.00 0.10% 334.29 5,361.76 NR 1.09 25590AAH3 DNB First NA Negotiable CD 248,000.00 06/23/2017 248,000.00 102.33 253,774.68 0.20% NR/NR 1.23 2.000% Due 06/23/2022 2.00% 248,000.00 0.11% 122.30 5,774.68 NR 1.22 894333FF5 Traverse City State Bank Negotiable CD 248,000.00 06/28/2017 248,000.00 102.36 253,848.58 0.20% NR/NR 1.24 2.000% Due 06/28/2022 2.00% 248,000.00 0.10% 1,277.37 5,848.58 NR 1.23 06740KKD8 Barclays Bank Delaware Negotiable CD 247,000.00 07/12/2017 247,000.00 102.69 253,632.94 0.20% NR/NR 1.28 2.200% Due 07/12/2022 2.20% 247,000.00 0.10% 1,176.13 6,632.94 NR 1.27 32056GCQ1 First Internet Bank of IN Negotiable CD 248,000.00 07/14/2017 248,000.00 102.50 254,195.54 0.20% NR/NR 1.29 2.050% Due 07/14/2022 2.05% 248,000.00 0.11% 250.72 6,195.54 NR 1.27 330459BUl FNB Bank Inc Negotiable CD 248,000.00 08/18/2017 248,000.00 102.60 254,455.44 0.20% NR/NR 1.38 2.000% Due 08/18/2022 2.00% 248,000.00 0.12% 190.25 6,455.44 NR 1.36 33610RQY2 First Premier Bank Negotiable CD 248,000.00 08/21/2017 248,000.00 102.70 254,702.20 0.20% NR/NR 1.39 2.050% Due 08/22/2022 2.05% 248,000.00 0.11% 543.22 6,702.20 NR 1.38 01859BAA3 Alliance Credit Union MO Negotiable CD 248,000.00 10/13/2017 248,000.00 103.26 256,077.36 0.20% NR/NR 1.54 2.250% Due 10/13/2022 2.25% 248,000.00 0.13% 2,598.90 8,077.36 NR 1.50 01748DAY2 Allegiance Bank Negotiable CD 248,000.00 11/03/2017 248,000.00 103.29 256,158.70 0.20% NR/NR 1.59 2.200% Due 11/03/2022 2.20% 248,000.00 0.13% 433.49 8,158.70 NR 1.57 3191411F5 First Bank of Highland Negotiable CD 248,000.00 11/08/2017 248,000.00 103.32 256,223.68 0.20% NR/NR 1.61 2.200% Due 11/08/2022 2.20% 248,000.00 0.14% 2,152.50 8,223.68 NR 1.58 82669VBY6 Signature Bank Chicago IL Negotiable CD 248,000.00 11/08/2017 248,000.00 103.24 256,025.03 0.20% NR/NR 1.61 2.150% Due 11/08/2022 2.15% 248,000.00 0.13% 2,103.58 8,025.03 NR 1.58 62384RACO MOUNTAIN AMERICA FD CRED Negotiable CD 248,000.00 11/08/2017 248,000.00 103.48 256,623.95 0.20% NR/NR 1.61 2.300% Due 11/08/2022 2.30% 248,000.00 0.14% 375.06 8,623.95 NR 1.58 795450M93 Sallie Mae Bank Negotiable CD 245,000.00 04/18/2018 245,000.00 105.80 259,204.61 0.21% NR/NR 2.05 3.000% Due 04/18/2023 3.00% 245,000.00 0.16% 3,322.60 14,204.61 NR 1.98 903481CW8 UBS Bank USA Negotiable CD 248,000.00 06/13/2018 248,000.00 106.73 264,679.98 0.21% NR/NR 2.20 3.250% Due 06/13/2023 3.25% 248,000.00 0.19% 419.56 16,679.98 NR 2.13 31 cj" DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Holdings Report As of March 31,2021 City of Tustin Consolidated Account -Account #10795 CUSIP Security Description ParValue/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 246399AB5 Delaware State Police FCU Negotiable CD 246,000.00 03/29/2019 246,000.00 108.03 265,741.75 0.21% NR/NR 3.00 3.000% Due 03/29/2024 3.00% 246,000.00 0.31% 60.66 19,741.75 NR 2.89 12,390,256.00 12,588,018.43 9.97% NR/NR 0.74 TOTAL Negotiable CD 12,391,000.00 2.23% 12,390,896.28 0.07% 34,169.77 197,122.15 NR 0.73 125,693,089.82 126,340,451.94 100.00% Aa2/AA+ 0.28 TOTAL PORTFOLIO 125,614,617.51 0.90% 125,628,674.97 0.30% 245,688.00 711,776.97 AA 0.28 TOTAL MARKET VALUE PLUS ACCRUALS 126,586,139.94 32 QJ1 �D,cuS-'ign Envelope ID:E1BA39D2-53B2-46B2-B1 EA-63D9F53591BC Section 4 Transactions 33 C® DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C ` Transaction Ledger As of March 31,2021 City of Tustin Consolidated Account -Account #10795 December 31,2020 through March 31,2021 Transaction Settlement Quantity Security Type �. CUSIP �- .pt-..n �EV P r-i,',c e Amount st Total Amount Gain/Loss te Yield Pur/Sold ACQUISITIONS Purchase 01/15/2021 90LAIF$00 113,218.75 Local Agency Investment Fund State Pool 1.000 0.52% 113,218.75 0.00 113,218.75 0.00 Purchase 01/29/2021 900CIP$01 929.17 Orange County Investment Pool 1.000 0.84% 929.17 0.00 929.17 0.00 Purchase 01/29/2021 90CAMP$00 1,042.99 California Asset Mgmt Program CAMP 1.000 0.12% 1,042.99 0.00 1,042.99 0.00 Purchase 02/25/2021 900CIP$01 846.70 Orange County Investment Pool 1.000 0.84% 846.70 0.00 846.70 0.00 Purchase 02/26/2021 90CAMP$00 767.98 California Asset Mgmt Program CAMP 1.000 0.11% 767.98 0.00 767.98 0.00 Purchase 03/30/2021 900CIP$01 746.40 Orange County Investment Pool 1.000 0.84% 746.40 0.00 746.40 0.00 Purchase 03/31/2021 90CAMP$00 771.22 California Asset Mgmt Program CAMP 1.000 0.07% 771.22 0.00 771.22 0.00 Subtotal 118,323.21 118,323.21 0.00 118,323.21 0.00 Security 01/07/2021 90CAMP$00 4,800,000.00 California Asset Mgmt Program CAMP 1.000 4,800,000.00 0.00 4,800,000.00 0.00 Contribution Security 02/25/2021 90CAMP$00 3,600,000.00 California Asset Mgmt Program CAMP 1.000 3,600,000.00 0.00 3,600,000.00 0.00 Contribution Subtotal 8,400,000.00 8,400,000.00 0.00 8,400,000.00 0.00 TOTAL ACQUISITIONS 8,518,323.21 8,518,323.21 0.00 8,518,323.21 0.00 DISPOSITIONS 0 Call 01/28/2021 037833BS8 2,000,000.00 Apple Inc Callable Note Cont 1/23/2021 100.000 2.24% 2,000,000.00 19,375.00 2,019,375.00 -168.39 2.25%Due:02/23/2021 Call 03/26/2021 44932HAC7 1,000,000.00 IBM Credit Corp Note 102.853 0.23% 1,028,531.12 1,100.00 1,029,631.12 29,916.85 2.2%Due:09/08/2022 Subtotal 3,000,000.00 3,028,531.12 20,475.00 3,049,006.12 29,748.46 Maturity 01/11/2021 86158RAM1 248,000.00 Stone Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.85%Due:01/11/2021 34 CJ" DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C ` Transaction Ledger As of March 31,2021 City of Tustin Consolidated Account -Account #10795 December 31,2020 through March 31,2021 DescriptionTransaction Settlement CUSIP Quantity Security Type Date Vr Price Yield Amount Pur/Sold Total Amount Gain/Loss Maturity 01/15/2021 32021YDA8 248,000.00 First Federal Savings Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.9%Due:01/15/2021 Maturity 02/09/2021 521680AE8 248,000.00 Lead Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.7%Due:02/09/2021 Maturity 02/11/2021 549103212 248,000.00 Luana Savings Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.7%Due:02/11/2021 Maturity 02/17/2021 03753XAEO 248,000.00 Apex Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.25%Due:02/17/2021 Maturity 02/18/2021 3130A7CV5 1,000,000.00 FHLB Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00 1.375%Due:02/18/2021 Maturity 02/22/2021 336386AX5 249,000.00 First Security Bank Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00 2.85%Due:02/22/2021 Maturity 02/22/2021 90352RAB1 249,000.00 USAlliance Fed Credit Union Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00 3%Due:02/22/2021 Maturity 03/09/2021 635573AH1 248,000.00 National Cooperative Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.5%Due:03/09/2021 Maturity 03/15/2021 094670BQO 1,000,000.00 Berkshire Hathaway Callable Note Cont 2/15/2021 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.2%Due:03/15/2021 Subtotal 3,986,000.00 3,986,000.00 0.00 3,986,000.00 0.00 Security 01/01/2021 900CIP$01 57.44 Orange County Investment Pool 1.000 57.44 0.00 57.44 0.00 Withdrawal Security 01/22/2021 90CAMP$00 1,800,000.00 California Asset Mgmt Program CAMP 1.000 1,800,000.00 0.00 1,800,000.00 0.00 Withdrawal Security 02/01/2021 900CIP$01 57.47 Orange County Investment Pool 1.000 57.47 0.00 57.47 0.00 Withdrawal Security 03/01/2021 900CIP$01 51.94 Orange County Investment Pool 1.000 51.94 0.00 51.94 0.00 Withdrawal Security 03/04/2021 90CAMP$00 2,800,000.00 California Asset Mgmt Program CAMP 1.000 2,800,000.00 0.00 2,800,000.00 0.00 Withdrawal 35 CJ" DocuSign Envelope ID:El BA39D2-53B2-46B2-B1 EA-63D9F53591 BC ` Transaction Ledger As of March 31,2021 City of Tustin Consolidated Account -Account #10795 December 31,2020 through March 31,2021 DescriptionTransaction Settlement CUSIP Quantity Security Type Date V Price Yield Amount Pur/Sold Total Amount Gain/Loss Security 03/18/2021 90CAMP$00 500,000.00 California Asset Mgmt Program CAMP 1.000 500,000.00 0.00 500,000.00 0.00 Withdrawal Subtotal 5,100,166.85 5,100,166.85 0.00 5,100,166.85 0.00 TOTAL DISPOSITIONS 12,086,166.85 12,114,697.97 20,475.00 12,135,172.97 29,748.46 36 QJ1 DocuSign Envelope ID:E1 BA391D2-53132-46132-131 EA-63D9F53591 BC Important Disclosures As of March 31,2021 2021 Ch and ler Asset Management,Inc,An Ind ependentRegistered Investment Adviser. Information contained herein is confidential.Prices are provided by IDC,an independent pricing source.In the event IDC does not provide a price or if the price provided is not reflective of fair market value,Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client's Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of dividends and other earnings.Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alterthe performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee,the incurrence of which would have the effect of decreasing historical performance results.It is not possible to invest directly in an index. 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This report is provided for informational purposes only and should not be construed as a specific investment or legal advice.The information contained herein was obtained from sources believed to be reliable as of the date of publication,but may become outdated or superseded at any time without notice.Any opinions or views expressed are based on current market conditions and are subject to change.This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results.Past performance is not indicative of future results.This report is not intended to constitute an offer,solicitation,recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest,credit and market risk.Interest rate risk:the value of fixed income investments will decline as interest rates rise.Credit risk:the possibility that the borrower may not be able to repay interest and principal.Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk.Market risk:the bond market in general could decline due to economic conditions,especially during periods of rising interest rates. Ratings information have been provided by Moody's,S&P and Fitch through data feeds we believe to be reliable as of the date of this statement,however we cannot guarantee its accuracy. Security level ratings for U.S.Agency issued mortgage-backed securities("MBS")reflect the issuer rating because the securities themselves are not rated.The issuing U.S.Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P,Moody's and Fitch respectively. 37 QJJ DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C Benchmark Disclosures As of March 31,2021 ICE BAML 1-5 Year US Treasury/Agency Index The ICE BAML 1-5 Year US Treasury&Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market.Qualifying securities must have an investment grade rating(based on an average of Moody's,5&P and Fitch).Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity,at least 18 months to maturity at time of issuance,a fixed coupon schedule and a minimum amount outstanding cf$1 billion for sovereigns and$250 million for agencies.(Index.GVAO.Please visit www.mlindex.ml.com for more information) ICE BAML 1-3 Yr US Treasury/Agency Index The ICE BAML 1-3 Year US Treasury&Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market.Qualifying securities must have an investment grade rating(based on an average of Moody's,5&P and Fitch).Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity,at least 18 months to maturity at time of issuance,a fixed coupon schedule and a minimum amount outstanding cf$1 billion for sovereigns and$250 million for agencies.(Index:G1AO.Please visit www.mlindex.ml.comformore information) 38 ci" DocuSign Envelope ID: E1 BA39D2-5382-4682-B1 EA-63D9F53591 BC AGENCY rusuc PARS Page 1 of 2 RETIREMENT SERVICES TRUSTED SOLUTIONS.LASTING RESULTS. Monthly Account Report for the Period 03/01/2021 to 03/31/2021 Jenny Leisz CITY OF TUSTIN City of Tustin PARS PAPEBT Plan Summary Beginning Plan Value as of $9,435,972.48 03/01/2021 Change in Plan Value $113,923.54 Ending Plan Value as of 03/31/2021 $9,549,896.02 Activity Summary by Source Balance on Balance on Source 03/01/2021 Contributions Earnings Expenses Distributions Transfers 03/31/2021 OPEB $2,448,930.83 $0.00 $30,700.65 $(1,123.25) $0.00 $0.00 $2,478,508.23 PENSION $6,987,041.65 $0.00 $87,550.83 $(3,204.69) $0.00 $0.00 $7,071,387.79 Totals $9,435,972.48 $0.00 $118,251.48 $(4,327.94) $0.00 $0.00 $9,549,896.02 Transactions for the Period Source Date Description Amount OPEB 03/26/2021 ASSET MGMT FEES $(613.06) OPEB 03/30/2021 INTER-ACCOUNT TRANSFER IN $510.19 OPEB 03/30/2021 INTER-ACCOUNT TRANSFER OUT $(510.19) OPEB 03/30/2021 TRUST ADMINISTRATOR FEES $(510.19) OPEB 03/31/2021 ACCOUNT GAINS/(LOSSES) $30,700.65 PENSION 03/26/2021 ASSET MGMT FEES $(1,749.05) PENSION 03/30/2021 INTER-ACCOUNT TRANSFER IN $1,455.64 PENSION 03/30/2021 INTER-ACCOUNT TRANSFER OUT $(1,455.64) PENSION 03/30/2021 TRUST ADMINISTRATOR FEES $(1,455.64) PENSION 03/31/2021 ACCOUNT GAINS/(LOSSES) $87,550.83 Investment Selection Source Selected Investment OPEB HighMark Index PLUS Moderate PENSION HighMark Index PLUS Moderate 4350 Von Karman Ave.,Ste. 100, Newport Beach,CA 92660-2043 phone 800.540.6369 fax 949.250.1250 www.pars.org DocuSign Envelope ID: E1 BA39D2-5382-4682-B1 EA-63D9F53591 BC AGENCY rusuc PARS Page 2 of 2 RETIREMENT SERVICES TRUSTED SOLUTIONS.LASTING RESULTS. Monthly Account Report for the Period 03/01/2021 to 03/31/2021 Jenny Leisz CITY OF TUSTIN City of Tustin PARS PAPEBT Investment Objective Selected Investment Description HighMark Index PLUS The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest Moderate 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 Performance Annualized Return Inception Source 1-Month 3-Month 1-Year 3-Years 5-Years 10-Years Date OPEB 1.25% 2.21% 27.42% 06/26/2018 PENSION 1.25% 2.20% 27.41% 06/26/2018 Information as provided by US Bank, Trustee for PARS. Investments 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. Past performance does not guarantee future results.Account balances are inclusive of Trust Administration, Trustee and Investment Management fees if applicable. Performance returns may not reflect the deduction of applicable fees, which could reduce returns.Annualized Return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Information is deemed reliable but may be subject to change. The plan's Rate of Return may differ from the rate of return in the above linked document. Reasons for the difference may include the timing of transactions into and out of the plan, the duration of time the plan's funds reside in the sweep account and differences in the methodology used to calculate performance. 4350 Von Karman Ave.,Ste. 100, Newport Beach,CA 92660-2043 phone 800.540.6369 fax 949.250.1250 www.pars.org DocuSign Envelope ID:ElBA39D2-53132-46132-131 EA-63D9F535913C CITY OF TUSTIN _ Monthly Investment Report March 31,2021 Restricted Deposits with Fiscal Agents [1] [2] [3] [4] [5] Description Limits Face Amount Shares YTM@Cost Credit Rating Cost Value+Accrued Market Value Interest 2016 Successor Agency Tax Allocation Bonds,Refunding 7.28 N/A 7.28 7.28 2016 Water Revenue Bonds,Refunding 343,650.00 N/A 343,650.00 343,650.00 2012 Water Revenue Bonds-Refunding 940,300.00 N/A 940,300.00 940,300.00 2020 Water Revenue Bonds 368,223.63 N/A 368,223.63 368,223.63 CFD 04-1 872,949.25 N/A 872,949.25 872,949.25 CFD 06-1 7,741,447.08 N/A 7,741,447.08 7,741,447.08 CFD 07-1 1,311,730.85 N/A 1,311,730.85 1,311,730.85 CFD 14-1 11,765,543.16 N/A 11,765,543.16 11,765,543.16 23,343,851.25 23,343,851.25 23,343,851.25 Restricted Deposits with Fiscal Agents TOTAL 23,343,851.25 23,343,851.25