HomeMy WebLinkAbout12 QUARTERLY INVESTMENT REPORT DocuSign Envelope ID: E8CAAF1 B-5DC4-4FB1-B79D-E9F1 3046CABF Agenda Item la
Reviewed: D5W
AGENDA REPORT City Manager
Finance Director Za :
MEETING DATE: AUGUST 3, 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 FOR THE QUARTER ENDING JUNE 30, 2021
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 for
the City of Tustin and the Successor Agency for the Tustin Community Redevelopment
Agency for the quarter ending June 30, 2021 is rendered.
DocuSign Envelope ID: E8CAAF1 B-5DC4-4FB1-B79D-E9F1 3046CABF
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 June 30, 2021 were $148 million, an increase
of$21 million from March 31 , 2021 total cash and investments of$127 million. The increase
in cash and investments is largely related to the receipt of property tax installment payments
and the first tranche of funding of American Rescue Plan Act Funds.
The weighted average portfolio yield as of June 30, 2021 was 0.68%, 21 basis points lower
than the weighted average portfolio yield for the prior quarter. The primary reason for the
decrease in the weighted average portfolio yield is due to the decline in interest rates, which
are currently at historical lows. For example, the 12-month average for a 2-Year Treasury
was 0.15% for July 2020 through June 2021 . In contrast, the 12-month average for a 2-Year
Treasury for the previous 12-month period (July 2019 - June 2020) was 1.06%.
PARS Pension Trust
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. Pension Trust assets are managed in a customized
investment strategy that balances risk and return and provides for diversification. Pension
Trust Fund assets amounted to $7.4 million at June 30, 2021 , which includes investment
earnings of approximately$1.2 million (20%)for the fiscal year-to-date (July 1 , 2020 through
June 30, 2021).
PARS OPEB Trust
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. OPEB Trust assets are
managed in a customized investment strategy that balances risk and return and provides
for diversification. OPEB Trust Fund assets amounted to $2.6 million at June 30, 2021,
which includes investment earnings of approximately $432 thousand (20%) for the fiscal
year-to-date (July 1, 2020 through June 30, 2021).
On July 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
largely within the Legacy.
DocuSign Envelope ID: E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
Page 3 of 3
DocuSigned by:
5 F
Jason AI-Imam
Finance Director/City Treasurer
Attachment: June 30, 2021 Quarterly Investment Report
PARS Trust Statement as of June 30, 2021
June 30, 2021 Fiscal Agent Balances
DocuSign Envelope ID: E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
City of Tustin, California TUSTIN
Finance Department
l
HISTORY
BUILDING OUR FUTURE
HONORING OUR PAST
July 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 June 30, 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,
IC
DocuSigned by: DocuSigned by:
miSUd►Mbwtlti xItw"MAFOCNAE
� ". at-V.. .
A81CC329F2394DF... ...
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:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
I INVESTMENT REPORT C/„CHANDLER
ASSET MANAGEMENT
City of Tustin
Period Ending June 30, 2021
CHANDLER ASSET MANAGEMENT, INC. 800.317.4747 www.chandlerasset.com
DocuSign Envelope ID:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Table of Contents
SECTION 1 Economic Update
SECTION 2 Consolidated Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
1 Cit
' `
�D7TTg!n!E!n!ve!o!pneIDE8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
k
Section 1 Economic Update
2 C�1
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IEconomic Update
■ The US economy continues to recover and while some pockets of the economy remain dislocated, real gross domestic
product(GDP) is approaching pre-pandemic levels.The recovery has been fueled by robust fiscal spending,accommodative
monetary policy, and a swift vaccine rollout. These factors are beginning to moderate but should continue to provide
tailwinds for the economy in the coming quarters. Vaccinations have slowed down, and infection rates in the US have
recently ticked up but remain well below their peak. Some pandemic-related fiscal relief is starting to phase out, but
President Biden and a group of bipartisan senators have agreed to an overall framework for a roughly $1 trillion
infrastructure plan (including about $579 billion in new federal spending above previously approved levels). Though the
details still need to be hashed out and a deal would need full congressional approval, the negotiations signal that more
fiscal stimulus is likely on the horizon. Meanwhile, the Federal Reserve continues to signal that itwill look past any near-
term uptick in inflation to facilitate continued improvement in the labor market. Estimates for US GDP growth remain
strong.The current Bloomberg consensus estimate for 2021 and 2022 US GDP growth are 6.6%and 4.1%, respectively.
• The Federal Open Market Committee (FOMC) kept monetary policy unchanged at its June meeting. The fed funds target
rate remains in the range of 0.0%to 0.25%, and the Fed continues to purchase $80 billion of Treasuries per month, and$40
billion of agency mortgage-backed securities per month. The Fed has started to discuss the idea of reducing its asset
purchases at some point, but that decision remains uncertain. FOMC members' updated economic projections also suggest
that the Fed may start to raise interest rates in 2023,versus the previous estimate of 2024,as the economy may be on track
to reach their employment and inflation goals at a faster than expected pace. Overall, monetary policy remains highly
accommodative for now, but the Fed seems to be inching toward a path of policy normalization.We anticipate the Fed will
remain on the sidelines over the near-term, but we believe the probability that the Fed will begin tapering its asset
purchases during the first half of next year has increased.
The yield curve flattened in June. We believe multiple factors influenced Treasury rates in the month, including market
technicals, dollar strengthening, uneven global vaccination rates, and a more modest forecast for U.S. infrastructure
spending than initially expected. Nevertheless, we believe longer-term rates have room to move higher this year and we
believe the Treasury yield curve is poised to steepen in the second half of the year.
3 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IEmployment
Nonfarm Payroll (000's) Unemployment Rate
6,000 24.0%
1♦
1 %
2,000 ��♦ 20.0% 1 %
1 1
\ 1 1 ♦
c -2,000 / 16.0% 1
o \ / 1
6,000 12.0% 1 `♦♦� ��—�`_—
-10,000 z
8.0%
0 -14,000
-18,000 —Non-farm Payroll(000's) 4.0% --- Underemployment Rate(U6)
-3 month average(000's) Unemployment Rate(U3)
-22,000 0.0%
�9 0'7 c19 dr�0 '�O p�0 coo dr�1 '�1 h 19 p 79 c19 dr�O �J2o OHO c,�o dr�Z �J�1
Source:US Department of Labor Source:US Department of Labor
Job growth was stronger than expected in June. U.S. nonfarm payrolls increased by 850,000, versus the consensus forecast of 720,000. May
payrolls were also revised up by 24,000 to 583,000. On a trailing 3-month and 6-month basis, payrolls increased by an average of 567,000 and
543,000 per month, respectively, which is indicative of a steady recovery in the labor market.The leisure and hospitality sectors continue to
drive the job gains in June and increased by 343,000. Government payrolls also posted a solid increase of 188,000 in June. The labor
participation rate was unchanged at 61.6% in June and is 1.7% lowerthan the pre-pandemic level.The employment-population ratio was also
unchanged in the month at 58.09/o and is 3.1%below the pre-pandemic level.The unemployment rate ticked higher to 5.9% in June from 5.8%
in May and remains well above the pre-pandemic low of 3.5% in February 2020.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 9.8%in June from 10.2% in May (versus 7.09/0
in February 2020). The index of aggregate private weekly payrolls was up 2.8% in June from February 2020, suggesting a solid increase in
aggregate wages.
4 CIlt
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IInitial Claims for Unemployment
Initial Claims For Unemployment April 02,2021-July 02,2021
6,000
lllllllllllllllllnitial Jobless Claims
(Continuing Claims
5,000
3,708 3,652 3,653 3,680 3,640 3,73 8 I 3,611 3,769 3,517 3,528 3,412 I I I I I 3,484 3,339
4,000
3,000
R
N
7
O
t
2,000
1,000 742 586 566 590
507 478 444 405 388374 416 418 371 373
■ ■ ■ ■ ■ ■ ■ W M W ■ ■ . M
OQ OQ OQ OQ OQ OS OS OS OS 06. 06, 06. 06, O)
�0 �O �Z �� ��' -O
�j� 9 6Oji ,j2
1 1 1 1 1 1 1 1 1 1 1 1 1 1
Source:US Department of Labor
In the most recent week, the number of initial jobless claims was 373,000 versus 371,000 in the prior week. The level of continuing
unemployment claims (where the data is lagged by one week) declined modestly to 3.339 million versus 3.484 million in the prior week.
Although continuing jobless claims have declined significantly from the peak of nearly 25 million last May, they remained above the 2019(pre-
pandemic)average of 1.7 million.
5 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Inflation
Consumer Price Index(CPI) Personal Consumption Expenditures (PCE)
5.5% 5.5% —
5.0% CPI YOY%Change 0 5.0% PCE Price DeflatorYOY%Change
4. % --- Core CPI YOY%Change 4.0% Ch
--– PCE Core Deflator YOY% ange
0% 4.0/o
3.5% c 3.5% ,
i
M 3.0% M 3.0%
2.5% _��– – 0 2.5%
00 2.0% '0 2.0% A
1.0% 1.0%
0.5% 0.5%
0.0% 0.0%
�d119 g4�19 �0,1v AP6�0 �dL�p 94��0 X041 X116 �d1�1 2ia119 g4g19 �0G19 AP6�0 4" -1
9���0 0G�0 AP6�1 �d`�Z
Source:US Department of Labor Source:US Department of Commerce
The Consumer Price Index (CPI) was up 5.0%year-over-year in May versus up 4.2°%in April. Core CPI (CPI less food and energy) was up 3.8°%
year-over-year in May,versus up 3.0°/o in April.The Personal Consumption Expenditures(PCE)index was up 3.9°%year-over-year in May,versus
up 3.6°%year-over-year in April.Core PCE was up 3.45a year-over-year in May,versus up 3.1°%year-over-year in April.Current inflation readings
are running well above the Fed's longer-run target of around 2.0°/o. However, the Fed believes that much (if not all) of the recent pricing
pressure have been caused by pandemic-related factors(e.g., base effects and supply chain disruptions). Fed policymakers have reiterated
that they believe most of those factors will be temporary.
6 X111
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IConsumer
Retail Sales YOY%Change Consumer Confidence
60.0% 140
50.0%
130
40.0%
v 30.0% 120
10 20.0% v
v110
10.0% J
Y x
v
oy 0.0% Elm
c 100
-10.0%
-20.0% 90
-30.0% 80
�dy 9��? /PaG, X06, �dy 94a° �0G, �P6, �dy ✓47. SPD, OPG`. �di ✓4�, s06 O0c, �dr ✓��J,
1y 1g 1y ,0 ,p "o �o �1 �1 79 zy 1y '>p �O ?o )o
Source:US Department of Commerce Source:The Conference Board
On a year-over-year basis, retail sales were up 28.1°/% in May versus up 53.4°/%in April.The year-over-year gains are distorted by the drop-off in
spending and activity at the early stage of the pandemic last year. On a month-over-month basis, retail sales declined 1.3% in May, following a
0.9% increase in April. Retail sales have been somewhat uneven on a monthly basis due to the timing of fiscal stimulus and economic
reopening. Overall, we believe consumer spending remains healthy and consistent with an ongoing recovery in economic activity. The
Consumer Confidence index jumped to 127.3 in June from 120.0 in May, reflecting a strong view of current conditions and a more upbeat
outlook.
7 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IEconomic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index(CFNAI)
4.0% 6.00
2.0% 4.00
2.00
o"c 0.0% iw
c m
0.00
2.0% r
c 2.00
0 4.0%
"' -4.00
-6.00
-8.01/0 -8.00
�d119 9419 P0
pG19 /0
6�0 �dy�0 94"Po 0G"O AP6�7 4OL�1 �aL19 9419 40�19 96"o 4aL,O 4�0 4
1
01- x'96 �0j,
Source:The Conference Board Source:Federal Reserve Bank of Chicago
The Conference Board's Leading Economic Index (LEI) increased 1.3% month-over-month in May (in line with expectations), following a 1.3%
increase in April. On a year-over-year basis, the LEI was up 14.7% in May against a severe decline in the index during the early stage of the
pandemic last year. According to the Conference Board, the index suggests that economic growth will remain strong in the near term.
Meanwhile, the Chicago Fed National Activity Index (CFNAI) increased to 0.29 in May from-0.09 in April. On a 3-month moving average basis,
the CFNAI increased to 0.81 in May from 0.17 in April,and it continues to signal above-trend economic growth.
8 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IHousing
Housing Starts S&P/Case-Shiller 20 City Composite Home Price Index
2000
16.0%
1800
w
1600 14.0%
a
1400 12.0%
c
1200 op 10.0°/0
� c
o r
F 1000 v 8.0%
800
c 600 ,'' Q 6.0%
li III, >.
I'll,
400 Multi Family Housing Starts 4.0%
0 200 ■Single Family Housing Starts 2.0%
0 111111111110MENNEEMENEEN 0.0%
2ldy 94g 11�0G X06 2ldy 9�g �0G X06 2ldy 90� ✓4�� Oct ✓a' 9p� ✓�/2 OCA ✓�i� 90�
Zy 1y Zy �O �O �O �O �Z �Z Zg 9 Zy �O �O O �?O
Source:US Department of Commerce Source:S&P
Total housing starts rose 3.6% in May to an annual pace of 1,572,000. Single-family starts rose 4.2% in May while multi-family starts were up
2.49/o. On a year-over-year basis, housing starts were up 50.3%in May,due in part to the steep decline in activity during the early stage of the
pandemic last year.According to the Case-Shiller 20-City home price index,home prices were up 14.9%year-over-year in April versus up 13.49/o
year-over-year in March.Low inventory and strong demand continue to put upward pressure on home prices.
9 Q11
DocuSign Envelope ID:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IManufacturing
Institute of Supply Management Purchasing Manager Industrial Production
Index
66 20.0%
64
62 15.0%
60 EXPANDING 10.00/0
58 v
56 c 5.0%
M
54 u 0.0%
52
r'
50 0 -5.0%
48
46 -10.0°/a
44 • -15.0%
42
40 -20.0%
✓4,'7 sP019 OPC l9 �d��o ✓4��O SPb�O OPC�O �d^�1 ✓�7�� �dL79 94p?Z9 �0l Z9 �P62O �dy�O 9�a?�O �O/.�O ��'6,1
Source:Institutefor Supply Management Source:Federal Reserve
The Institute for Supply Management(ISM)manufacturing index eased slightly to 60.6 in June from 61.2 in May.The index continues to point to
strength in manufacturing, as 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 during the pandemic,though the dollar index has been creeping higher since the end of May.
The Industrial Production index was up 16.3°/%year-over-year in May, versus up 17.6°/% in April.The year-over-year rates are distorted by the
effects of the pandemic last year. On a month-over-month basis, the Industrial Production index increased 0.8% in May, following a 0.1%
increase in April.Capacity Utilization increased to 75.2°/%in May from 74.6°/%in April but remains well below the long-run average of 79.8°/%.Chip
shortages continue to weigh on activity in the manufacturing sector.
10 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IGross Domestic Product (GDP)
Gross Domestic Product (GDP)
Components of GDP 6/20 9/20 12/20 3/21 35.0%
30.0%
25.0%
Personal Consumption Expenditures -24.0% 25.49/o 1.6% 7.4910 20.0%
15.0%
Gross Private Domestic Investment -8.8% 12.0% 4.4% -0.6% 10.0%
5.0%
0.0% ■ '
Net Exports and Imports 0.6916 x,3.2% 1.5%.,� -1.5% -5.0%°
Federal Government Expenditures 1.2% -0.4% --0.1%% 0.9% -15.0% GDP QOQ%Change
20.0%
State and Local(Consumption and Gross 25.0% -GDP YOY%Change
_0.4% -0.4% -0.19/010.1% -30.0%
Investment) -35.0%
Total -31.4% 33.4% 4.3% 6.4%
4,_ So
SPb, 4,_ S,,
SPb, �dr, s�'o, 4,_ S,,
SPb, �dr sPb, �Qr
I6 76 Z j 7 j 7� 4 ,7`q 19 ')0 -0 �7
Source:US Department of Commerce Source:US Department of Commerce
US economic growth accelerated in the first quarter. According to the third estimate, real US gross domestic product (GDP) grew at an
annualized rate of 6.49/o in the first quarter, following 4.3°% growth in the fourth quarter of 2020. Economic growth is believed to have
accelerated even further in the second quarter to an annualized rate of 9.2°%. The consensus forecast for full year 2021 US gross domestic
product growth is 6.6°%,following a 3.5°%decline in 2020.
11 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Federal Reserve
Federal Reserve Balance Sheet Assets Effective Federal Funds Rate
8,500,000 3.00%
8,000,000
2.50%
7,500,000
7,000,000 ran, 2.00%
"'�l
0 6,500,000 0
'- 6,000,000 1.50%
c 5,500,000 '
5,000,000 1.00%
4,500,000
0.50%
4,000,000
3,500,000 0.00%
✓4/'79 p j9 ✓a��0 9p^�O ✓(/�O p��20 ✓a��Z gbr�Z ✓U��Z �4 jZ9 0Z9 ✓a�20 gpr�0 ✓�j2D X20 ✓a�2Z q�^�Z ✓�/�Z
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 0.09/o-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.In June 2021,the Fed announced plans to gradually unwind its corporate credit facility and expects
to sell the full portfolio by year-end.
12 Q11
DocuSign Envelope ID:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Bond Yields
US Treasury Note Yields US Treasury Yield Curve
3.0% 3.0%
•••••• 2-Year Jun-21
2.5% --- 5-Year 2.5% Mar-21
10-Year ......Jun-20
2.0% 2.0%
v_ 1.5% 1.$% J
J.
} 1.0% } 1.0% �'
o
0.5/0 0.5%
0.0%
0.0%
�4' SPb. �O. �1i ✓4h. SPb dor �
car, ✓4' .r' 6 '> S I> 10 1?0
19 '19 s )0 )0 �O )0 �1 �1 2jo�a Y 1r 1r `r yr
Source:Bloomberg Source:Bloomberg
The treasury yield curve is steeper on a year-over-year basis.The 3-month T-bill yield was about nine basis points lower, while the 2-year
Treasury yield was about ten basis points higher, and the 10-Year Treasury yield was about 81 basis points higher, year-over-year, as of June
month-end.The Fed has signaled plans to keep the front end of the Treasury yield curve anchored near zero until 2023. We believe longer-
term rates still have room to move higher .this year.
13 Q11
' \ `
�D!!!!ign EnvelopelD:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Section 2 Account Profile
14 C®
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Objectives As of June 30, 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.
15 Q"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
ICompliance As of June 30, 2021
City of Tustin Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management and assets managed internally by Client. Chandler relies on Client to provide accurate information for reporting assets and producing this compliance statement.
Category Standard Comment
U.S.Treasuries No limitations; U.S.government obligations issued bythe U.S.Treasury and backed by the full faith and credit ofthe 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 guaranteed as to principal and
Federal Agencies Complies
interest by federal agencies or U.S.government-sponsored enterprises
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 ofthe three
Supranational Obligations supranational banking groups:International Bankfor Reconstruction and Development(IBRD),International Finance Corporation(IFC),or Inter-American Development Bank(IADB);Supranational Complies
securities will not be purchased until further notice from staff at the City of Tustin.
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
Municipal Securities(CA,Local Agency) Complies
the revenues form arevenue-producing property owned,controlled,or operated by a local agency,or by a department,board,agency,or authority ofthe local agency
30%max;5%max per issuer; Bonds of any ofthe other 49 states in addition to California,including bonds payable solely out ofthe revenues from a revenue-producing property owned,
Municipal Securities(CA,Other States) Complies
controlled,or operated by a state,or by a department,board,agency,or authority of any of the other 49 states,in addition to California
"A"rating or better by a NRSRO;30%max;5%max per issuer; 30%max of any single issuer(combined issuer limitation of a local agency's investments in commercial paper and medium-term
Corporate Medium Term Notes notes);Obligations of a domestic corporation or depository institution; Ifthe credit rating of a security is downgraded below the minimum rating level for a new investment ofthat security,the Complies
Treasurer shall evaluate the downgrade on a case-by-case basis to determine if the security should be held or sold.
Mortgage Pass-Through Securities "AA"rated or better bya 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-licensed or state-
Negotiable Certificates of Deposit(NCD) licensed branch of a foreign bank Complies
Certificate of Deposit Placement Service 30%max;The City may utilize these at the discretion of the Treasurer Complies
(CDARS)
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 Government Code Complies
Certificates of Deposit
Bankers'Acceptances "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 is guaranteed by a Complies
commercial bank
A-1/P-1 rating or equivalent bya NRSRO,plus A longterm rating bya NRSRO;30%max,5%max per issuer; 30%max of any single issuer(combined issuer limitation of a local agency's investments
in commercial paper and medium-term notes); 10%max outstandingfrom a single issuer;270days 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):
(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 category or higher bya Commercial Paper Complies
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
surety bond;and c."A-1"rated or higher by a NRSRO
AAA or highest ranking of two ofthe three highest ranking NRSRO;Retained an investment adviser registered with SEC with>5 years experience investing assets of at least$500 million; Must
Money Market Mutual Funds invest solely in investments,which the City itself could legally purchase;20%max; 10%max per Money Market Mutual Fund Complies
Local Agency Investment Fund(LAIF) 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 the same day; Fees Complies
charged by LAIF are limited by Statute; Not used by investment adviser
Local Government Investment Pool
(LGIP)/ Investment in OCIP is allowable accordingto guidelines in Government Code; Max amount permitted by County Treasurer; Not used by investment adviser Complies
Orange County Investment Pool(OCIP)
Joint Powers Authority(JPA)Investment 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 authorized in subdivisions(a)to
Pools (q),inclusive per policyComplies
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,
Prohibited Complies
and shall not be pledged as collateral; Reverse Repurchase Agreements;Supranational securities will not be purchased until further notice from staff at the City of Tustin.
Weighted Average Maturity 36 months max Complies
Maximum Maturity 5 years,unless authorized by City Council Complies
16 cif&%
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Portfolio Characteristics As of June 30, 2021
City of Tustin Consolidated Account
Portfolio6/30/2021 3/31/2021
Benchmark* Portfolio
Average Maturity(yrs) 2.66 0.45 0.28
Average Modified Duration 2.59 0.44 0.28
Average Purchase Yield n/a 0.68% 0.89%
Average Market Yield 0.41% 0.26% 0.30%
Average Quality** NR AA+/Aa2 AA+/Aa2
Tota l Market Value 148,051,699 126,586,140
*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.
17 C/"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
ISector Distribution As of June 30, 2021
City of Tustin Consolidated Account
June 30,2021 March 31,2021
Negotiable CD US Treasury
Negotiable CD
5.3% 2.7% Agency 10.0% Agency
Municipal Bonds 6.2% Municipal Bonds 7. 0 Cash
3.0% 4.3% o
Cash Money Market 2.6/
9.3% Fund
Money Market 0.8%
Fund
6.7% Corporate
Local Gov 9.4%
Investment Pool
Local Gov
9.1%
Investment Pool Corporate
.50 0 10.0%
LAIF LAIF
56.4% 56.7%
-$9,144,772.67 $13,711,479.65 -$14,849,546.33 -$83,544,183.75 -$9,061,852.88 -$3,308,760.94 -$11,836,050.88 -$71,792,111.51
$719,684.48 $9,859,461.31 $4,425,969.45 $7,835,091.52 $11,455,699.56 $1,059,569.32 $5,449,906.65 $12,622,188.20
$3,959,556.94
18 Q
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Portfolio Allocation & Duration Changes As of June 30, 2021
City of Tustin Consolidated Account
Portfolio Allocation
LAIF 56.4%
56.7%
Corporate 10.0%
9.4%
Cash 9.3%
- 2.6%
Money Market Fund 6.7%
0.8%
Agency 6.2%
7.2%
Negotiable CD 5.3%
10.0%
Municipal Bonds 3.0%
- 4.3%
-
2.7% ■6/30/2021
US Treasury
0.0%
■3/31/2021
Local Gov Investment 0.5%
Pool 9.1%
19 ci"
DocuSign Envelope ID:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Issuers As of June 3O, 2021
City of Tustin Consolidated Account -Account#10795
InvestmentType Pill %Portfolio
Local Agency Investment Fund LAIF 56.43%
Bank Cash Account Cash 9.26%
FirstAmerican Govt Oblig Fund Money Market Fund 6.66%
Toyota Motor Corp Corporate 3.15%
Federal Home Loan Bank Agency 2.76%
Government of United States US Treasury 2.67%
Federal Home Loan Mortgage Corp Agency 2.08%
ChevronTexaco Corp Corporate 1.38%
Apple Inc Corporate 1.38%
Federal National Mortgage Association Agency 1.34%
Santa Rosa Regional Resources Municipal Bonds 1.02%
Ban k of America Corp Corporate 0.70%
Visa Inc Corporate 0.69%
City of IndustryCA Municipal Bonds 0.69%
State of California Municipal Bonds 0.69%
Procter&Gamble Company Corporate 0.69%
Pfizer Inc. Corporate 0.68%
Amazon.com Inc Corporate 0.68%
Caterpillar Inc Corporate 0.67%
CAMP Local Gov Investment Pool 0.49%
Murrieta Redevelopment Agency Municipal Bonds 0.41%
Delaware State Police FCU Negotiable CD 0.18%
UBS Corp Negotiable CD 0.18%
California Edl Facs Auth Rev Municipal Bonds 0.18%
Sallie Mae Bank Negotiable CD 0.17%
Alliance Credit Union MO Negotiable CD 0.17%
First Bank of Highland Negotiable CD 0.17%
Mountain America FCU Negotiable CD 0.17%
Signature Bank Chicago IL Negotiable CD 0.17%
First Premier Bank Negotiable CD 0.17%
Allegiance Bank Negotiable CD 0.17%
Barclays Bank Negotiable CD 0.17%
FNB Bank Inc Negotiable CD 0.17%
First Internet Bank of Indiana Negotiable CD 0.17%
Traverse City State Bank Negotiable CD 0.17%
DNB First NA Negotiable CD 0.17%
First Jackson Bank Inc Negotiable CD 0.17%
Celtic Bank Negotiable CD 0.17%
20 C1"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Issuers As of June 30, 2021
City of Tustin Consolidated Account —Account#10795
Nebraska State Bank&Trust Negotiable CD 0.17%
Ohio Valley Bank Negotiable CD 0.17%
Northfield Bank Negotiable CD 0.17%
Partners Bank California Negotiable CD 0.17%
Keesler Federal Credit Union Negotiable CD 0.17%
Great Plains Bank SD Negotiable CD 0.17%
Uinta Bank Negotiable CD 0.17%
American Eagle Bank IL Negotiable CD 0.17%
Palmetto Heritage Bank&Trust Negotiable CD 0.17%
CMS Energy Corp Negotiable CD 0.17%
Commercial Bank Alma MI Negotiable CD 0.17%
Abacus Federal Savings Bank Negotiable CD 0.17%
Bankers Bank Madison WI Negotiable CD 0.17%
Central State Bank Iowa Negotiable CD 0.17%
FNB Bank Inc Romney WV Negotiable CD 0.17%
TOTAL 100.00%
21 Qf&I
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
IMaturity Distribution As of June 30, 2021
City of Tustin Consolidated Account
$120,000,000.00
$111,419,199.76
$100,000,000.00
$80,000,000.00
$60,000,000.00
$40,000,000.00
$20,000,000.00
$15,036,324.25
$9,510,342.17
$6,996,215,89
$1,760,203.70 $1,338,847.44 $1,988,612.89
$0.00
$0.00
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity(Yrs)
22 C
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Quality Distribution As of June 30, 2021
City of Tustin Consolidated Account
June 30,2021 vs.March 31,2021
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0% ■
AAA AA A <A NR
■6/30/2021 ■3/31/2021
06/30/21 7.1% 15.6% 5.6% 0.0% 71.7%
03/31/21 9.0% 15.0% 5.0% 0.0% 71.0%
Source:S&P Ratings
23 ci"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Duration Distribution As of June 30, 2021
City of Tustin Consolidated Account
June 30,2021 vs.March 31,2021
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+
■June 30,2021 ■March 31,2021
06/30/21 75.3% 2.0% 9.3% 6.4% 0.9% 2.0% 4.0% 0.0%
03/31/21 75.2% 2.8% 6.9% 13.8% 1.3% 0.0% 0.0% 0.0%
24 Q1
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Investment Performance As of June 30, 2021
City of Tustin Consolidated Account
Total Rate of Return Since Inception 11/30/2020
0.30%
0.20%
0.10%
0.00%
-0.10%
-0.20%
-0.30%
-0.40%
3 months Since Inception
■City of Tustin Consolidated Account ■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 0.09% 0.24%
ICE BAML 1-5 Year US Treasury/Agency Index 0.11% -0.34%
ICE BAML 1-3 Yr US Treasury/Agency Index -0.03% -0.03%
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.
25 ci"
' `
�D7TTg!n!E!n!ve!o!pneIDE8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
k
Section 3 Portfolio Holdings
26 C®
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Holdings Report As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
Purchase Date
CUSIP Security Description ParValue/Units Book Yield Book Va,ue Mkt�M Accrued Int. Gain/Loss Fitch Duration
3130AB3U8 FHLB Callable Note 1X4/26/2019 4,000,000.00 04/26/2017 4,000,000.00 101.61 4,064,416.00 2.76% Aaa/AA+ 0.82
2.100% Due 04/26/2022 2.10% 4,000,000.00 0.14% 15,166.67 64,416.00 NR 0.82
3134GBMB5 FHLMC Callable Note 1X5/25/2018 1,000,000.00 05/25/2017 1,000,000.00 101.74 1,017,366.00 0.69% Aaa/AA+ 0.90
2.050% Due 05/25/2022 2.05% 1,000,000.00 0.12% 2,050.00 17,366.00 AAA 0.90
3134GBWQ1 FHLMC Callable Note 1X7/27/2018 2,000,000.00 07/27/2017 1,996,000.00 102.00 2,040,050.00 1.39% Aaa/AA+ 1.07
2.000% Due 07/27/2022 2.04% 1,999,143.48 0.14% 17,111.11 40,906.52 AAA 1.06
3135G04Z3 FNMA Note 2,000,000.00 04/12/2021 1,982,980.00 99.41 1,988,224.00 1.34% Aaa/AA+ 3.97
0.500% Due 06/17/2025 0.71% 1,983,861.11 0.65% 388.89 4,362.89 AAA 3.92
8,978,980.00 9,110,056.00 6.18% Aaa/AA+ 1.57
TOTALAgency 9,000,000.00 1.77% 8,983,004.59 0.25% 34,716.67 127,051.41 Aaa 1.55
Cash
90BOFA$00 Cash BOA Cash Acct 13,711,479.65 Various 13,711,479.65 1.00 13,711,479.65 9.26% NR/NR 0.00
0.25% 13,711,479.65 0.25% 0.00 0.00 NR 0.00
13,711,479.65 13,711,479.65 9.26% NR/NR 0.00
TOTAL Cash 13,711,479.65 0.25% 13,711,479.65 0.25% 0.00 0.00 NR 0.00
Corporate
717081DZ3 Pfizer Inc.Note 1,000,000.00 07/16/2018 976,000.00 100.90 1,009,024.00 0.68% A2/A+ 0.46
2.200% Due 12/15/2021 2.94% 996,788.46 0.23% 977.78 12,235.54 A 0.46
89236TDP7 Toyota Motor Credit Corp Note 1,000,000.00 07/13/2017 1,017,027.84 101.24 1,012,415.00 0.69% Al/A+ 0.53
2.600% Due 01/11/2022 2.20% 1,002,010.59 0.26% 12,277.78 10,404.41 A+ 0.52
742718DY2 Procter&Gamble Co Note 1,000,000.00 07/16/2018 979,800.00 101.28 1,012,766.00 0.69% Aa3/AA- 0.61
2.300% Due 02/06/2022 2.90% 996,584.17 0.17% 9,263.89 16,181.83 NR 0.59
166764BN9 Chevron Corp Callable Note Cont 2/3/2022 2,000,000.00 08/10/2017 2,034,400.00 101.32 2,026,420.00 1.38% Aa2/AA- 0.67
2.498% Due 03/03/2022 2.10% 2,005,058.82 0.26% 16,375.78 21,361.18 NR 0.59
037833CQ1 Apple Inc Callable Note Cont 4/11/2022 2,000,000.00 06/26/2017 2,015,402.54 101.64 2,032,794.00 1.38% Aal/AA+ 0.86
2.300% Due 05/11/2022 2.13% 2,002,717.08 0.20% 6,388.89 30,076.92 NR 0.78
89236TEC5 Toyota Motor Credit Corp Note 2,500,000.00 11/01/2017 2,482,750.00 102.26 2,556,620.00 1.74% Al/A+ 1.19
2.150% Due 09/08/2022 2.30% 2,495,775.11 0.24% 16,871.53 60,844.89 A+ 1.17
92826CAG7 Visa Inc Callable Note Cont 8/15/2022 1,000,000.00 10/03/2017 1,002,301.43 102.17 1,021,686.00 0.69% Aa3/AA- 1.21
2.150% Due 09/15/2022 2.10% 1,000,561.36 0.22% 6,330.56 21,124.64 NR 1.11
89236TFNO Toyota Motor Credit Corp Note 1,000,000.00 02/28/2019 1,019,000.00 106.30 1,062,997.00 0.72% Al/A+ 2.22
3.450% Due 09/20/2023 3.00% 1,009,254.65 0.59% 9,679.17 53,742.35 A+ 2.14
27 Q1
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Holdings Report As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
CUSIP Security Description Tr ParValue/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity
Book Yield Book Va I ue Mkt YTM Accrued Int. Gain/Loss Fitch Duration
14913R2H9 Caterpillar Financial Service Note 1,000,000.00 04/21/2021 991,780.00 99.45 994,540.00 0.67% A2/A 4.38
0.800% Due 11/13/2025 0.98% 992,120.65 0.93% 1,066.67 2,419.35 A 4.28
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025 1,000,000.00 04/20/2021 1,030,470.00 103.14 1,031,392.00 0.70% A2/A- 4.63
2.015% Due 02/13/2026 1.11% 1,029,256.75 1.13% 7,724.17 2,135.25 AA- 3.47
023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026 1,000,000.00 05/12/2021 995,200.00 100.06 1,000,575.00 0.68% Al/AA 4.87
1.000% Due 05/12/2026 1.10% 995,326.32 0.99% 1,361.11 5,248.68 AA- 4.65
14,544,131.81 14,761,229.00 10.03% Al/AA- 1.72
TOTAL Corporate 14,500,000.00 2.11% 14,525,453.96 0.42% 88,317.33 235,775.04 A+ 1.57
LAIF
90LAIF$00 Local Agency Investment Fund State Pool 83,488,332.61 Various 83,488,332.61 1.00 83,488,332.61 56.43% NR/NR 0.00
0.25% 83,488,332.61 0.25% 55,851.14 0.00 NR 0.00
83,488,332.61 83,488,332.61 56.43% NR/NR 0.00
TOTAL LAIF 83,488,332.61 0.25% 83,488,332.61 0.25% 55,851.14 0.00 NR 0.00
Local Gov Investment Pool
900CIP$01 Orange County Investment Pool 1,953.11 Various 1,953.11 1.00 1,953.11 0.00% NR/NR 0.00
0.40% 1,953.11 0.40% 0.00 0.00 NR 0.00
90CAMP$00 California Asset Mgmt Program CAMP 719,684.48 Various 719,684.48 1.00 719,684.48 0.49% NR/AAA 0.00
0.05% 719,684.48 0.05% 0.00 0.00 NR 0.00
721,637.59 721,637.59 0.49% NIR/AAA 0.00
TOTAL Local Gov Investment Pool 721,637.59 0.05% 721,637.59 0.05% 0.00 0.00 NR 0.00
Money Market Fund
31846V203 First American Govt Obligation Fund Class 9,859,461.31 Various 9,859,461.31 1.00 9,859,461.31 6.66% Aaa/AAA 0.00
0.01% 9,859,461.31 0.01% 0.00 0.00 AAA 0.00
9,859,461.31 9,859,461.31 6.66% Aaa/AAA 0.00
TOTAL Money Market Fund 9,859,461.31 0.01% 9,859,461.31 0.01% 0.00 0.00 Aaa 0.00
Municipal Bonds
802629AW5 Santa Rosa Regional Resources STE-REV 980,000.00 10/03/2017 987,154.00 100.16 981,558.20 0.67% NR/AA+ 0.09
2.200% Due 08/01/2021 2.00% 980,158.64 0.35% 8,983.33 1,399.56 AA 0.09
62719PAX4 Murrieta Redevelopment Agency STE-TA 350,000.00 10/18/2017 349,135.50 100.14 350,472.50 0.24% NR/A 0.09
2.250% Due 08/01/2021 2.32% 349,980.62 0.68% 3,281.25 491.88 NR 0.09
28 Q1
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Holdings Report As of June 30, 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
45656RDV1 City of Industry CA STE-REV 1,000,000.00 05/17/2017 1,013,000.00 101.09 1,010,890.00 0.69% AI/NR 0.51
2.750% Due 01/01/2022 2.45% 1,001,415.38 0.58% 13,750.00 9,474.62 NR 0.49
13063DADO California State TE-GO 1,000,000.00 04/27/2017 1,010,000.00 101.65 1,016,490.00 0.69% Aa2/AA- 0.75
2.367% Due 04/01/2022 2.15% 1,001,522.22 0.17% 5,917.50 14,967.78 AA 0.75
802629AX3 Santa Rosa Regional Resources STE-REV 500,000.00 10/03/2017 504,500.00 102.32 511,615.00 0.35% NR/AA+ 1.09
2.400% Due 08/01/2022 2.20% 501,010.78 0.26% 5,000.00 10,604.22 AA 1.07
62719PAY2 Murrieta Redevelopment Agency STE-TA 250,000.00 10/18/2017 249,345.00 101.98 254,955.00 0.17% NR/A 1.09
2.500% Due 08/01/2022 2.56% 249,851.61 0.67% 2,604.17 5,103.39 NR 1.06
13077DFD9 California State University TE-REV 250,000.00 08/02/2018 250,000.00 103.67 259,180.00 0.18% Aa2/AA- 1.34
3.054% Due 11/01/2022 3.05% 250,000.00 0.30% 1,272.50 9,180.00 NR 1.31
4,363,134.50 4,385,160.70 2.99% Aa3/AA 0.59
TOTAL Municipal Bonds 4,330,000.00 2.28% 4,333,939.25 0.39% 40,808.75 51,221.45 AA 0.58
Negotiable CD 1111111110 111
15523RB14 Central State Bank Iowa Negotiable CD 248,000.00 07/14/2017 248,000.00 100.07 248,173.60 0.17% NR/NR 0.04
1.850% Due 07/14/2021 1.85% 248,000.00 0.02% 213.69 173.60 NR 0.04
06610RAQ2 Bankers Bank Madison WI Negotiable CD 248,000.00 07/14/2017 248,000.00 100.07 248,178.31 0.17% NR/NR 0.04
1.900% Due 07/14/2021 1.90% 248,000.00 0.03% 219.46 178.31 NR 0.04
30257JAC9 FNB Bank Inc Romney WV Negotiable CD 248,000.00 07/19/2017 248,000.00 100.10 248,235.60 0.17% NR/NR 0.05
1.850% Due 07/19/2021 1.85% 248,000.00 0.02% 150.84 235.60 NR 0.05
00257TAY2 Abacus Federal Savings Bank Negotiable CD 248,000.00 07/21/2017 248,000.00 100.11 248,274.78 0.17% NR/NR 0.06
1.950% Due 07/21/2021 1.95% 248,000.00 0.02% 132.49 274.78 NR 0.06
201282HD5 Commercial Bank Alma MI Negotiable CD 248,000.00 08/16/2016 248,000.00 100.17 248,427.80 0.17% NR/NR 0.13
1.400% Due 08/16/2021 1.40% 248,000.00 0.06% 142.68 427.80 NR 0.13
70212YAW2 Partners Bank California Negotiable CD 248,000.00 08/15/2017 248,000.00 100.23 248,582.55 0.17% NR/NR 0.13
1.850% Due 08/16/2021 1.85% 248,000.00 0.03% 1,709.50 582.55 NR 0.13
69709QAM3 Palmetto Heritage Bank&Trust Negotiable CD 248,000.00 08/21/2017 248,000.00 100.26 248,650.01 0.17% NR/NR 0.14
1.900% Due 08/20/2021 1.91% 248,000.00 0.02% 129.10 650.01 NR 0.14
29266N3H8 Enerbank USA Negotiable CD 248,000.00 08/26/2016 248,000.00 100.22 248,540.14 0.17% NR/NR 0.16
1.450% Due 08/26/2021 1.45% 248,000.00 0.06% 49.26 540.14 NR 0.16
49254FAQ9 Keesler Federal Credit Union Negotiable CD 249,000.00 02/28/2019 249,000.00 100.49 250,224.08 0.17% NR/NR 0.17
3.000% Due 08/30/2021 3.02% 249,000.00 0.06% 61.40 1,224.08 NR 0.17
903572CC7 Uinta Bank Negotiable CD 247,000.00 10/13/2017 247,000.00 100.58 248,440.50 0.17% NR/NR 0.29
2.050% Due 10/13/2021 2.05% 247,000.00 0.02% 1,095.94 1,440.50 NR 0.29
66612ABV9 Northfield Bank Negotiable CD 248,000.00 11/01/2017 247,256.00 100.59 249,465.68 0.17% NR/NR 0.31
1.950% Due 10/20/2021 2.03% 247,943.01 0.02% 953.95 1,522.67 NR 0.31
29 Q11
DocuSign Envelope ID:EBCAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Holdings Report As of June 30, 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
39115UAZ6 Great Plains Bank SD Negotiable CD 248,000.00 04/21/2017 248,000.00 100.85 250,120.15 0.17% NR/NR 0.48
1.850% Due 12/21/2021 1.85% 248,000.00 0.06% 125.70 2,120.15 NR 0.47
02554BCRO American Eagle Bank IL Negotiable CD 247,000.00 07/13/2017 247,000.00 100.99 249,447.52 0.17% NR/NR 0.50
2.000% Due 12/30/2021 2.00% 247,000.00 0.02% 13.53 2,447.52 NR 0.50
677721CNO Ohio Valley Bank Negotiable CD 248,000.00 07/19/2017 248,000.00 101.02 250,534.06 0.17% NR/NR 0.56
1.900% Due 01/19/2022 1.90% 248,000.00 0.06% 154.92 2,534.06 NR 0.55
63969ACD4 Nebraska State Bank 8,Trust Negotiable CD 248,000.00 04/21/2017 248,000.00 101.22 251,017.91 0.17% NR/NR 0.65
1.950% Due 02/21/2022 1.95% 248,000.00 0.07% 132.49 3,017.91 NR 0.64
15118RMF1 Celtic Bank Negotiable CD 248,000.00 04/21/2017 248,000.00 101.64 252,077.86 0.17% NR/NR 0.81
2.100% Due 04/21/2022 2.10% 248,000.00 0.06% 142.68 4,077.86 NR 0.80
32063KAS1 First Jackson Bank Inc Negotiable CD 248,000.00 11/08/2017 248,000.00 101.70 252,207.57 0.17% NR/NR 0.86
2.050% Due 05/09/2022 2.06% 248,000.00 0.07% 320.36 4,207.57 NR 0.85
25590AAH3 DNB First NA Negotiable CD 248,000.00 06/23/2017 248,000.00 101.87 252,639.58 0.17% NR/NR 0.98
2.000% Due 06/23/2022 2.00% 248,000.00 0.09% 108.71 4,639.58 NR 0.97
894333FF5 Traverse City State Bank Negotiable CD 248,000.00 06/28/2017 248,000.00 101.91 252,738.78 0.17% NR/NR 0.99
2.000% Due 06/28/2022 2.00% 248,000.00 0.08% 40.77 4,738.78 NR 0.99
06740KKD8 Barclays Bank Delaware Negotiable CD 247,000.00 07/12/2017 247,000.00 102.17 252,360.15 0.17% NR/NR 1.03
2.200% Due 07/12/2022 2.20% 247,000.00 0.10% 2,530.90 5,360.15 NR 1.02
32056GCQ1 First Internet Bank of IN Negotiable CD 248,000.00 07/14/2017 248,000.00 102.03 253,023.74 0.17% NR/NR 1.04
2.050% Due 07/14/2022 2.05% 248,000.00 0.10% 236.79 5,023.74 NR 1.03
330459BUl FNB Bank Inc Negotiable CD 248,000.00 08/18/2017 248,000.00 102.14 253,303.98 0.17% NR/NR 1.13
2.000% Due 08/18/2022 2.00% 248,000.00 0.11% 176.66 5,303.98 NR 1.12
33610RQY2 First Premier Bank Negotiable CD 248,000.00 08/21/2017 248,000.00 102.22 253,505.60 0.17% NR/NR 1.15
2.050% Due 08/22/2022 2.05% 248,000.00 0.11% 1,810.74 5,505.60 NR 1.13
01859BAA3 Alliance Credit Union MO Negotiable CD 248,000.00 10/13/2017 248,000.00 102.73 254,777.34 0.17% NR/NR 1.29
2.250% Due 10/13/2022 2.25% 248,000.00 0.13% 1,207.73 6,777.34 NR 1.27
01748DAY2 Allegiance Bank Negotiable CD 248,000.00 11/03/2017 248,000.00 102.76 254,850.01 0.17% NR/NR 1.35
2.200% Due 11/03/2022 2.20% 248,000.00 0.14% 418.54 6,850.01 NR 1.32
62384RACO MOUNTAIN AMERICA FD CRED Negotiable CD 248,000.00 11/08/2017 248,000.00 102.92 255,250.78 0.17% NR/NR 1.36
2.300% Due 11/08/2022 2.30% 248,000.00 0.15% 359.43 7,250.78 NR 1.34
3191411F5 First Bank of Highland Negotiable CD 248,000.00 11/08/2017 248,000.00 102.80 254,954.91 0.17% NR/NR 1.36
2.200% Due 11/08/2022 2.20% 248,000.00 0.13% 807.19 6,954.91 NR 1.34
82669VBY6 Signature Bank Chicago IL Negotiable CD 248,000.00 11/08/2017 248,000.00 102.74 254,786.02 0.17% NR/NR 1.36
2.150% Due 11/08/2022 2.15% 248,000.00 0.13% 788.84 6,786.02 NR 1.34
795450M93 Sallie Mae Bank Negotiable CD 245,000.00 04/18/2018 245,000.00 105.05 257,362.70 0.17% NR/NR 1.80
3.000% Due 04/18/2023 3.00% 245,000.00 0.19% 1,490.14 12,362.70 NR 1.76
30 Q11
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Holdings Report As of June 30, 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
90348JCWS UBS Bank USA Negotiable CD 248,000.00 06/13/2018 248,000.00 105.91 262,646.63 0.18% NR/NR 1.95
3.250% Due 06/13/2023 3.25% 248,000.00 0.22% 397.48 14,646.63 NR 1.89
246399AB5 Delaware State Police FCU Negotiable CD 246,000.00 03/29/2019 246,000.00 107.43 264,270.67 0.18% NR/NR 2.75
3.000% Due 03/29/2024 3.00% 246,000.00 0.28% 1,900.60 18,270.67 NR 2.64
7,680,256.00 7,817,069.01 5.29% NR/NR 0.81
TOTAL Negotiable CD 7,681,000.00 2.12% 7,680,943.01 0.09% 18,022.51 136,126.00 NR 0.80
US Treasury
91282CBH3 US Treasury Note 2,000,000.00 04/27/2021 1,957,500.00 98.04 1,960,704.00 1.33% Aaa/AA+ 4.59
0.375% Due 01/31/2026 0.83% 1,959,064.12 0.81% 3,128.45 1,639.88 AAA 4.52
91282CBT7 US Treasury Note 2,000,000.00 04/27/2021 1,989,531.25 99.60 1,991,954.00 1.35% Aaa/AA+ 4.75
0.750% Due 03/31/2026 0.86% 1,989,903.89 0.84% 3,770.49 2,050.11 AAA 4.65
3,947,031.25 3,952,658.00 2.67% Aaa/AA+ 4.67
TOTAL US Treasury 4,000,000.00 0.85% 3,948,968.01 0.82% 6,898.94 3,689.99 Aaa 4.59
147,294,444.72 147,807,083.87 100.00% Aa2/AA+ 0.45
TOTAL PORTFOLIO 147,291,911.16 0.68% 147,253,219.98 0.26% 244,615.34 553,863.89 AA+ 0.44
TOTAL MARKET VALUE PLUS ACCRUALS 148,051,699.21
31 ci"
�D7!Tg!n!E!n!ve!o!pneID 'E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
k
Section 4 Transactions
32 C®
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
` Transaction Ledger As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
March 31,2021 through lune 30,2021
Transaction Settlement Quantity Security
Acq/Disp Amount Interest Total Amount Gain/Loss
Type ..
DescriptionCUSIP
te Yield Pur/Sold
ACQUISITIONS
Purchase 04/13/2021 3135G04Z3 2,000,000.00 FNMA Note 99.149 0.71% 1,982,980.00 3,222.22 1,986,202.22 0.00
0.5%Due:06/17/2025
Purchase 04/15/2021 90LAIF$00 78,352.92 Local Agency Investment Fund State Pool 1.000 0.35% 78,352.92 0.00 78,352.92 0.00
Purchase 04/22/2021 06051GHY8 1,000,000.00 Bank of America Corp Callable Note Cont 103.047 1.11% 1,030,470.00 3,862.08 1,034,332.08 0.00
2/13/2025
2.015%Due:02/13/2026
Purchase 04/23/2021 14913R2H9 1,000,000.00 Caterpillar Financial Service Note 99.178 0.98% 991,780.00 3,555.56 995,335.56 0.00
0.8%Due:11/13/2025
Purchase 04/28/2021 91282CBH3 2,000,000.00 US Treasury Note 97.875 0.83% 1,957,500.00 1,802.49 1,959,302.49 0.00
0.375%Due:01/31/2026
Purchase 04/28/2021 91282CBT7 2,000,000.00 US Treasury Note 99.477 0.86% 1,989,531.25 1,147.54 1,990,678.79 0.00
0.75%Due:03/31/2026
Purchase 04/30/2021 90CAMP$00 203.18 California Asset Mgmt Program CAMP 1.000 0.07% 203.18 0.00 203.18 0.00
Purchase 05/14/2021 0231356X3 1,000,000.00 Amazon.com Inc Callable Note Cont 4/12/2026 99.520 1.10% 995,200.00 55.56 995,255.56 0.00
1%Due:05/12/2026
Purchase 05/27/2021 900CIP$01 707.25 Orange County Investment Pool 1.000 0.84% 707.25 0.00 707.25 0.00
Purchase 05/28/2021 90CAM5$00 509.47 California Asset Mgmt Program CAMP 1.000 0.07% 509.47 0.00 509.47 0.00
Purchase 06/29/2021 900CIP$01 608.51 Orange County Investment Pool 1.000 0.34% 608.51 0.00 608.51 0.00
Purchase 06/30/2021 90CAMP$00 570.37 California Asset Mgmt Program CAMP 1.000 0.05% 570.37 0.00 570.37 0.00
Subtotal 9,080,951.70 9,028,412.95 13,645.45 9,042,058.40 0.00
Security 04/22/2021 90CAMP$00 4,500,000.00 California Asset Mgmt Program CAMP 1.000 4,500,000.00 0.00 4,500,000.00 0.00
Contribution
Security 04/22/2021 90LAIF$00 3,600,000.00 Local Agency Investment Fund State Pool 1.000 3,600,000.00 0.00 3,600,000.00 0.00
Contribution
Security 04/26/2021 90CAMP$00 2,300,000.00 California Asset Mgmt Program CAMP 1.000 2,300,000.00 0.00 2,300,000.00 0.00
Contribution
33 Q
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
` Transaction Ledger As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
March 31,2021 through lune 30,2021
DescriptionTransaction Settlement CUSIP Quantity Security
Type Date V Price Yield Amount Pur/Sold Total Amount Gain/Loss
Security 05/14/2021 90CAMP$00 3,000,000.00 California Asset Mgmt Program CAMP 1.000 3,000,000.00 0.00 3,000,000.00 0.00
Contribution
Security 05/20/2021 90CAMP$00 8,800,000.00 California Asset Mgmt Program CAMP 1.000 8,800,000.00 0.00 8,800,000.00 0.00
Contribution
Security 05/28/2021 90CAMP$00 1,300,000.00 California Asset Mgmt Program CAMP 1.000 1,300,000.00 0.00 1,300,000.00 0.00
Contribution
Security 06/30/2021 90LAIF$00 9,690,392.00 Local Agency Investment Fund State Pool 1.000 9,690,392.00 0.00 9,690,392.00 0.00
Contribution
Subtotal 33,190,392.00 33,190,392.00 0.00 33,190,392.00 0.00
TOTAL ACQUISITIONS 42,271,343.70 42,218,804.95 13,645.45 42,232,450.40 0.00
DISPOSITIONS
Maturity 04/01/2021 13063DAC2 1,000,000.00 California State STE-GO 100.000 1,000,000.00 0.00 1,000,000.00 0.00
2.625%Due:04/01/2021
Maturity 04/12/2021 89579NBU6 248,000.00 Triad Bank of Frontenac MO Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.85%Due:04/12/2021
Maturity 05/10/2021 38058KDU7 248,000.00 Gold Coast Bank of Chicago Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.9%Due:05/10/2021
Maturity 05/17/2021 507515BE3 249,000.00 Lake Bank Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
2.9%Due:05/17/2021
Maturity 05/24/2021 06425BCK3 248,000.00 Bank of the Pacif ic Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.25%Due:05/24/2021
Maturity 05/25/2021 3136G3U94 1,850,000.00 FNMA Callable Note 1X8/25/2017 100.000 1,850,000.00 0.00 1,850,000.00 0.00
1.4%Due:05/25/2021
34 Ci"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
` Transaction Ledger As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
March 31,2021 through lune 30,2021
Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Amount Interest Total Amount Gain/Loss
Type Date Yield Pur/Sold
Maturity 05/26/2021 732333AG4 248,000.00 Ponce De Leon Federal Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.9%Due:05/26/2021
Maturity 06/14/2021 33715LBL3 249,000.00 First Technology Federal Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
3.05%Due:06/14/2021
Maturity 06/14/2021 861026AAO 246,000.00 Stock Yards Bank Negotiable CD 100.000 246,000.00 0.00 246,000.00 0.00
2.9%Due:06/14/2021
Maturity 06/15/2021 17312QN47 246,000.00 Citibank NA Negotiable CD 100.000 246,000.00 0.00 246,000.00 0.00
3%Due:06/15/2021
Maturity 06/18/2021 22230PBS8 249,000.00 Country Bank New York Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
2.9%Due:06/18/2021
Maturity 06/21/2021 27002YDS2 249,000.00 EagleBank Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
2.9%Due:06/21/2021
Maturity 06/21/2021 58733AEX3 246,000.00 Mercantile Bank NA Negotiable CD 100.000 246,000.00 0.00 246,000.00 0.00
3%Due:06/21/2021
Maturity 06/21/2021 74934YAJO 249,000.00 RCB Bank Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
2.9%Due:06/21/2021
Maturity 06/23/2021 12325EHU9 248,000.00 Stifel Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.8%Due:06/23/2021
Maturity 06/28/2021 15347EAH2 249,000.00 Central Federal Savings Negotiable CD 100.000 249,000.00 0.00 249,000.00 0.00
2.85%Due:06/28/2021
Maturity 06/28/2021 63970QFG6 248,000.00 Nebraskaland National Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.85%Due:06/28/2021
Maturity 06/28/2021 89214PBR9 246,000.00 TowneBank/Portsmouth VA Negotiable CD 100.000 246,000.00 0.00 246,000.00 0.00
3%Due:06/28/2021
Maturity 06/28/2021 975875AK1 248,000.00 Winter Hill Bank FSB Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.8%Due:06/28/2021
Maturity 06/29/2021 56817TAB7 248,000.00 Marine Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.85%Due:06/29/2021
Maturity 06/30/2021 17670DAD6 248,000.00 Citizens ST Bank of Somerville Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00
1.85%Due:06/30/2021
Subtotal 7,560,000.00 7,560,000.00 0.00 7,560,000.00 0.00
Security 04/07/2021 90CAMP$00 10,000,000.00 California Asset Mgmt Program CAMP 1.000 10,000,000.00 0.00 10,000,000.00 0.00
Withdrawal
35 Ci"
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
` Transaction Ledger As of June 30, 2021
City of Tustin Consolidated Account -Account #10795
March 31,2021 through lune 30,2021
DescriptionTransaction Settlement CUSIP Quantity Security
Type Date Vr Price Yield Amount Pur/Sold Total Amount Gain/Loss
Security 04/09/2021 90LAIF$00 1,600,000.00 Local Agency Investment Fund State Pool 1.000 1,600,000.00 0.00 1,600,000.00 0.00
Withdrawal
Security 04/30/2021 9006IP$Ol 1,146,906.10 Orange County Investment Pool 1.000 1,146,906.10 0.00 1,146,906.10 0.00
Withdrawal
Security 05/03/2021 900CIP$01 39.03 Orange County Investment Pool 1.000 39.03 0.00 39.03 0.00
Withdrawal
Security 05/07/2021 90CAMP$00 1,300,000.00 California Asset Mgmt Program CAMP 1.000 1,300,000.00 0.00 1,300,000.00 0.00
Withdrawal
Security 06/01/2021 900CIP$01 0.11 Orange County Investment Pool 1.000 0.11 0.00 0.11 0.00
Withdrawal
Security 06/03/2021 90CAMP$00 1,500,000.00 California Asset Mgmt Program CAMP 1.000 1,500,000.00 0.00 1,500,000.00 0.00
Withdrawal
Security 06/18/2021 90CAMP$00 7,000,000.00 California Asset Mgmt Program CAMP 1.000 7,000,000.00 0.00 7,000,000.00 0.00
Withdrawal
Security 06/29/2021 90CAMP$00 9,690,392.00 California Asset Mgmt Program CAMP 1.000 9,690,392.00 0.00 9,690,392.00 0.00
Withdrawal
Subtotal 32,237,337.24 32,237,337.24 0.00 32,237,337.24 0.00
TOTAL DISPOSITIONS 39,797,337.24 39,797,337.24 0.00 39,797,337.24 0.00
36 cilij
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Important Disclosures As of June 30, 2021
2021 Chandler Asset Management,Inc,An Independent Registered 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.
Source ice Data Indices,LLC("ICE"),used with permission.ICE permits use ofthe ICE indices and related data on an"as is"basis;ICE,its affiliates and their respective third party suppliers disclaim any and
all warranties and representations,express and/or implied,including any warranties of merchantability or fitness for a particular purpose or use,including the indices,index data and any data included
in,related to,or derived therefrom.Neither ICE data,its affiliates or their respective third party providers guarantee the quality,adequacy,accuracy,timeliness or completeness of the indices or the
index data or any component thereof,and the indices and index data and all components thereof are provided on an"as is"basis and licensee's use it at licensee's own risk.ICE data,its affiliates and their
respective third party do not sponsor,endorse,or recommend chandler asset management,or any of its products or services.
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 QJ1
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
Benchmark Disclosures As of June 30, 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: E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
PUBLIC
AGENCY
RETIREMENT
SERVICES PARS
CITY OF TUSTIN Account Report for the Period
PARS Post Employment Benefits Trust 7/1/2020 to 6/30/2021
Matthew West
City Manager
City of Tustin
300 Centennial Way
Tustin,CA 92780
Account Summary
Balance as of Balance as of
Source 7/1/2020 Contributions Earnings Expenses Distributions Transfers 6/30/2021
OPEB $2,166,914.75 $0.00 $431,636.80 $13,015.35 $0.00 $0.00 $2,585,536.20
PENSION $6,182,498.93 $0.00 $1,231,352.88 $37,133.62 $0.00 $0.00 $7,376,718.19
Totals $8,349,413.68 $0.00 $1,662,989.68 $50,148.97 $0.00 $0.00 $9,962,254.39
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 F 3-Years 5-Years 10-Years Plan's Inception Date
OPEB 1.19% 4.45% 19.96% 10.21% 6/26/2018
PENSION 1.19% 4.45% 19.94% 10.24% 6/26/2018
Information as provided by US Bank,Trustee for PARS;Not FDIC Insured;No Bank Guarantee;May Lose Value
Past performance does not guarantee future results.Performance returns may not reflect the deduction of applicable fees,which could reduce returns. Information is deemed reliable but may be subject to change.
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Account balances are inclusive of Trust Administration,Trustee and Investment Management fees
Headquarters-4350 Von Kannan Ave.,Suite 100,Newport Beach,CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org
DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF
CITY OF TUSTIN _
Monthly Investment Report
June 30,2021
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 8.22 N/A 8.22 8.22
2012 Water Revenue Bonds-Refunding 22.43 N/A 22.43 22.43
2020 Water Revenue Bonds 8.14 N/A 8.14 8.14
CFD 04-1 1,119,959.51 N/A 1,119,959.51 1,119,959.51
CFD 06-1 7,906,342.24 N/A 7,906,342.24 7,906,342.24
CFD 07-1 1,765,897.44 N/A 1,765,897.44 1,765,897.44
CFD 14-1 8,259,772.24 N/A 8,259,772.24 8,259,772.24
19,052,017.50 19,052,017.50 19,052,017.50
Restricted Deposits with Fiscal Agents TOTAL 19,052,017.50 19,052,017.50