HomeMy WebLinkAbout07 QUARTERLY INVESTMENT REPORT ENDING IN DECEMBER 31, 2021DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Agenda Item 7
_1
Reviewed.' os
AGENDA REPORT City Manager ci
iso
Finance Director
MEETING DATE: FEBRUARY 15, 2022
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 DECEMBER 31, 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.
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 December 31, 2021 is rendered.
The City's total cash and investments amounted to approximately $204 million as of December 31,
2021. The weighted average yield for the investment portfolio was 0.50%, which is 7 basis points
lower than the weighted average 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 0.28% for January
2021 through December 2021. In contrast, the 12 -month average for a 2 -Year Treasury was 0.31 %
a year ago.
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Quarterly Investment Report for Period Ending December 31, 2021 Page 2 of 2
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 $7.6 million at December
31, 2021. The investment return for the PARS Pension Trust Fund was 10.3% for calendar year
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 $2.7 million at December 31, 2021. The investment return for the
PARS OPEB Trust Fund was 10.3% for calendar year 2021.
Investment Compliance Certification
On February 3, 2022, 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, which include, but are not limited to traffic and
street improvements, water system improvements, park projects, improvements to public facilities
and capital projects at the Tustin Legacy.
Jason AI -Imam
Finance Director/City Treasurer
Attachments: Quarterly Investment Report for the Period Ending December 31, 2021
PARS Trust Statement as of December 31, 2021
Restricted Deposits with Fiscal Agents as of December 31, 2021
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City of Tustin, California
Finance Department
February 3, 2022
Honorable Mayor and Members of the City Council:
Re: Investment Report Certification
TUSTIN
BUILDING OUR FUTURE
HONORING OUR PAST
In compliance with California Government Code Section 53646, the attached Investment Report
for the Quarter Ending December 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:
366, Nttdt,
OF8A52FF464F401...
John Wende, Chair
City of Tustin Audit Commission
DocuSigned by:
Y n "V V.
8D75CC3AFOCB4AE...
Jason Al -Imam, Finance Director
City of Tustin Treasurer
300 Centennial Way, Tustin, CA 92780 www.tustinca.or
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INVESTMENT REPORTit%
City of Tustin
Period Ending December 31, 2021
CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com
CHANDLER
ASSET MANAGEMENT
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ITable of Contents
SECTION 1
SECTION 2
SECTION 3
SECTION 4
Economic Update
Account Profile
Portfolio Holdings
Transactions
As of December 31, 2021
1 C11%
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Section 1 1 Economic Update
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Economic Update
■ We believe economic growth is likely to moderate but remain above -trend in 2022, as US fiscal support begins to wane, and
the Federal Reserve becomes less accommodative. We expect continued improvement in the labor market, particularly an
increase in the participation rate, will help drive economic growth this year as the health situation improves. Consumer
spending, the largest component of US GDP, should also remain solid, supported by healthy consumer balance sheets and
an improving labor market, in our view. We anticipate inventory rebuilding will likely be a significant driver of US GDP
growth in the second half of the year as well. Our outlook is predicated on an improving global health backdrop, though
risks to the downside remain. Over the near-term, we believe the omicron variant will hinder economic growth and we
expect financial market volatility will be elevated. Inflation readings continue to run hot, but we believe inflation may be at
or near a peak and pricing pressures are likely to abate as we move through the year.
0 The Federal Open Market Committee (FOMC) kept the fed funds target rate unchanged in December, in a range of 0.0%-
0.25%, but announced plans to accelerate the pace of their tapering process. The Fed will reduce the magnitude of their
monthly asset purchases by $30 billion in January, doubling the pace of the monthly reduction in asset purchases that began
in November. Should the Fed continue to reduce their monthly asset purchases at the new pace, their bond -buying
program would end this spring (late -March or mid-April). The FOMC's updated Summary of Economic Projections indicates
that policymakers may be prepared to hike the fed funds rate three times in 2022 (based on the median estimate), up from
the previous projection of just one 25 basis point hike. The Fed's updated projections suggest that these hikes would be
amid a backdrop of strong economic growth. With inflation now more elevated and prolonged than originally anticipated,
we believe the Fed's decision to accelerate the tapering process is prudent. However, we do not believe that monetary
policy is on a pre-set course and expect the Fed will adjust policy if necessary, depending on developments in the
economy.
In December, the 2 -year Treasury yield increased nearly 17 basis points to 0.73%, the 5 -year Treasury yield increased ten
basis points to 1.26%, and the 10 -year Treasury yield increased about seven basis points to 1.51% in the month. So far in
January, we have seen a relatively swift move upward in Treasury yields across the curve.
3 C11%
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IEmployment
Nonfarm Payroll (000's)
MCI
c -2,000
0
`
-61000
v
o�
-10,000
2
0 -14,000
-181000 Non-farm Payroll (000's)T
' 3 month average (000's)
-22,000
cd✓ S O ✓ S O
(°, r, 4�, Pte, �°c, dr, 47, Pa,
1g _0 �0 �0 �0
Source: US Department of Labor
Unemployment Rate
24.0%
♦♦ - - - Underemployment Rate (U6)
20.0% Unemployment Rate (U3)
16.0%
o
12.0% . '--.•
M -'•.•
8.0% ♦� •••••.
4.0%
0.0
dr �7�b O dr 7, SPpb, O
(°c 00��0 �
°c
Source: US Department of Labor
Job growth slowed in December, with US nonfarm payroll growth of just 199,000 in the month versus the consensus forecast of 450,000, but the
unemployment rate still declined to 3.9%, the lowest level since February 2020. On a trailing 3 -month and 6 -month basis, payrolls increased an
average of 365,000 and 508,000 per month, respectively, which still compares favorably to the average job gains in the five years leading up to
the pandemic of about 196,000 per month. We believe a variety of factors are keeping some workers out of the labor force for now, which
continues to hold back job growth despite strong demand from employers. The labor participation rate was unchanged in December at 61.9%
and remains lower than the pre -pandemic level of 63.4%. The employment -population ratio increased to 59.5%% in December form 59.3%% in
November, but also remains below the pre -pandemic level of 61.2%. 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 7.3% in December from 7.7% in November (versus 7.0%
in February 2020). Annualized average hourly earnings rose 0.6% month -over -month and were up 4.7% year -over -year in December versus
5.1% in November.
4 C11%
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Initial Claims for Unemployment
25,000
20,000
15,000
H
C
M
N
0 10,000
t
r
C
5,000
Initial Claims For Unemployment April 24, 2020 -January 07, 2022
III IIIIIIII III 11111111111III I111111111111111 ........
OS, OS, 06/ Q> O)/ O6, 00 .70, 0? 01) O�j 09 OV OV OS, 06, O)/ O)/ 01j
Od'i�9i19i1�ii�1i11iiiOS��6i19i�9i3�i�1i11i��i��'�1�i�3i���1si
�0 �0 �O �0 �0 �O �O
Source: US Department of Labor
In the most recent week, the number of initial jobless claims was 230,000, versus 207,000 in the prior week. The level of continuing
unemployment claims (where the data is lagged by one week) declined to 1.559 million from 1.753 million in the prior week. Continuing
jobless claims have declined significantly from the peak of nearly 25 million in May 2020, and are in the range of pre -pandemic levels (the 2019
average was 1.7 million).
5 C11%
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Inflation
Consumer Price Index (CPI)
8.0%
7.0% CPI YOY % Change
6.0% ' ' - Core CPI YOY % Change
5.0%
C
4.0%
0
0 3.0%
2.0%
1.0% ,
0.0%
OPc,7 ,10✓4h�0
Source: US Department of Labor
RRIVA.
7.0%
6.0%
5.0%
`- - u 4.0%
, o
0 3.0%
2.0%
1.0%
0.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
- - - PCE Core Deflator YOY % Change
Sip OPc Cdr ✓�,h sip OPc bio` FPb 4,-a 14 410
,)O ,)O '79 11O 11-30 1_)0 1O �1
Source: US Department of Commerce
The Consumer Price Index (CPI) was up 7.0% year -over -year in December, versus up 6.8% year -over -year in November. Core CPI (CPI less food
and energy) was up 5.5% year -over -year in December, versus up 4.9% in November. Pricing pressures were widespread in December, with
notable gains for used cars and trucks, new vehicles, food, and rent. The Personal Consumption Expenditures (PCE) index was up 5.7% year -
over -year in November, up from 5.1% in October. Core PCE was up 4.7°% year -over -year in November, versus up 4.2% in October. Current
inflation readings continue to run well above the Fed's longer -run target of around 2.0%. While we believe year -over -year inflation may be at
or near a peak, and pricing pressures are likely to abate as we move through the year, we expect inflationary pressures will remain elevated
over the near-term.
6 c1,%
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IConsumer
60.0%
50.0%
40.0%
a, 30.0%
s 20.0%
10.0%
0 0.0%
-10.0%
-20.0%
-30.0%
Retail Sales YOY % Change
O(c19 2,�~� ✓4h �O S010 O0c�O
O 1
Source: US Department of Commerce
140
130
120
a,
110
X
a�
c 100
90
80
Consumer Confidence
✓4�` s��` OPc` pPc` �dr,
1,g �O
Source: The Conference Board
✓�� SPp pPc �dr ✓4� sip pPc
'1:0>
On a year -over -year basis, retail sales were up 16.9% in December versus up 18.2% in November. On a month -over -month basis, retail sales
were softer than expected in December, down 1.9% versus expectations of down 0.1%, following a modest gain of just 0.2% in November.
Excluding vehicles and gas, retail sales were down 2.5% month -over -month. In our view, the data suggests that consumers started shopping
early in the holiday season and that high gas prices are likely taking some wallet share. We believe the surge in Omicron virus cases likely
hindered December sales as well. We remain constructive on the outlook for consumer spending this year, but we believe the current surge in
virus cases is likely to take a toll on January retail sales. Looking further ahead, we believe high levels of consumer savings along with
improvement in the health situation and continued improvement in the labor market, should provide a healthy tailwind for consumer
spending. The Consumer Confidence index increased to 115.8 in December from 111.9 in November. The improvement came despite the
arrival of the omicron variant and still elevated inflation.
C11%
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Economic Activity
4.0%
2.0%
0 0.0%
c
M
s
U
-2.0%
0 -4.0%
-6.0%
8.0%
Leading Economic Indicators (LEI)
41,
Source: The Conference Board
M- oll]
SIM
will,
t
c -2.00
0
-4.00
1:11161
Chicago Fed National Activity Index (CFNAI)
lid` 14g +°G 1,°G �c0,6 4-1a` q4� �,°G 06
�,I l)1 �1 l9 �O �p �O )o �1
Source: Federal Reserve Bank of Chicago
The Conference Board's Leading Economic Index (LEI) increased 1.1% month -over -month in November, following a 0.9% increase in October.
On a year -over -year basis, the LEI was up 9.8% in November versus up 9.6% in October. The Conference Board believes the strong gain in the
LEI in November suggests that the economic expansion will continue into the first half of 2022, but they caution that ongoing supply chain
headwinds and the current resurgence of the virus pose risks to the outlook. The Conference Board expects GDP growth to moderate in the
first quarter to 2.2% versus their forecast of 6.5% growth in the fourth quarter of this year. Meanwhile, the Chicago Fed National Activity Index
(CFNAI) declined to 0.37 in November from 0.76 in October. On a 3 -month moving average basis, the CFNAI increased to 0.37 in November
versus 0.21 in October.
8 C11%
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Housing
2000
1800
1600
0
1400
c
Ln 1200
3
1000
:V
v
c 600
400
0 200
Housing Starts
I r_ M
0 M
X01 "b, �dy �4g �o� X06 �a`
19 0 �p ")0")0
Source: US Department of Commerce
S&P/Case-Shiller 20 City Composite Home Price Index
24.0%
21.0%
18.0%
0 15.0%
c
f0
12.0%
0
} 9.0%
0
6.0%
3.0%
0.0%
Source: S&P
Oc�1 ✓d�� qpr� ✓4/ O Oe�� ✓d�� qp�2 ✓4� 1 O(X
9 O O O 1 1 1
Total housing starts jumped 11.8% in November to an annual pace of 1,679,000. Single-family starts increased 11.3°/% while multi -family starts
increased 12.9%, month -over -month. On a year -over -year basis total housing starts were up 8.3% in November. According to the Case-Shiller
20 -City home price index, home prices were up 18.4% year -over -year in October versus up 19.1% year -over -year in September, suggesting the
acceleration in home prices is easing. However, tight supply will likely continue to support prices.
9 CJJJ
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Manufacturing
66
64
62
60
58
56
54
52
50
48
46
44
42
40
Institute of Supply Management Purchasing Manager
Index
20.0%
15.0%
,%Wool, 10.0%
a
Y 5.0%
EXPANDING s
0.0%
}
o -5.0%
-10.0%
CONTRACTING
-15.0%
-20.0%
✓ S 0 ✓ S 0
19 �0 �0 )0 )0
Source: Institute for Supply Management
Industrial Production
00 10 10 �0 ,_'1010(10 11�1
Source: Federal Reserve
The Institute for Supply Management (ISM) manufacturing index declined to 58.7 in December from 61.1 in November. Nevertheless, readings
above 50.0 are indicative of expansion in the manufacturing sector. The Industrial Production index was up 3.7% in December, versus up 5.0%
in November. On a month -over -month basis, the Industrial Production index declined 0.1% in December, following an upwardly revised 0.7%
increase in November. Manufacturing production likely remains constrained by supply chain bottlenecks, and capacity utilization declined to
76.5% in December from 76.6% in November. Although capacity utilization remains below its longer -run average of 79.6%, it is running above
the pre -pandemic level of 76.3%.
10 C11%
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Gross Domestic Product (GDP)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
Total
Source: US Department of Commerce
4.5% 6.3% 6.7% 2.3%
Gross Domestic Product (GDP)
I
GDP QOQ % Change
GDP YOY % Change
` �dr Sip �dr, .SPp �dr, .SPp �0' SOb
16 l j 1)j0 _70 "O �0
Source: US Department of Commerce
Real US gross domestic product (GDP) growth decelerated in the third quarter of 2021 amid widespread supply chain disruptions and a surge in
the Covid Delta variant. However, third quarter growth was slightly better than previously estimated. According to the final estimate, third
quarter GDP grew at an annualized rate of 2.3% in the third quarter, revised up from the second estimate of 2.1% and the advance estimate of
2.0%. This follows a much stronger pace of growth in the first half of 2021, with first and second quarter annualized GDP growth up 6.3% and
6.7%, respectively. The consensus estimate is 5.9% GDP growth in the fourth quarter, and 3.0% GDP growth in the current quarter. We
anticipate the recent surge of omicron cases in the US will hamper current quarter economic growth.
11 C,,%
35.0%
30.0%
25.0%
2.3%
7.4%
7.9%
1.4%
20.0%
15.0%
4.0%
-0.4%
-0.7%
2.1%
10.0%
5.0%
0.0%
-1.7%
-1.6%
-0.2%
-1.3%
-5.0%
-10.0%
-15.0%
-0.2%
0.8%
-0.4%
-0.4%
-20.0
-25.0%
0.1%
0.0%
0.0%
0.5%
-30.0%
-35.0%
4.5% 6.3% 6.7% 2.3%
Gross Domestic Product (GDP)
I
GDP QOQ % Change
GDP YOY % Change
` �dr Sip �dr, .SPp �dr, .SPp �0' SOb
16 l j 1)j0 _70 "O �0
Source: US Department of Commerce
Real US gross domestic product (GDP) growth decelerated in the third quarter of 2021 amid widespread supply chain disruptions and a surge in
the Covid Delta variant. However, third quarter growth was slightly better than previously estimated. According to the final estimate, third
quarter GDP grew at an annualized rate of 2.3% in the third quarter, revised up from the second estimate of 2.1% and the advance estimate of
2.0%. This follows a much stronger pace of growth in the first half of 2021, with first and second quarter annualized GDP growth up 6.3% and
6.7%, respectively. The consensus estimate is 5.9% GDP growth in the fourth quarter, and 3.0% GDP growth in the current quarter. We
anticipate the recent surge of omicron cases in the US will hamper current quarter economic growth.
11 C,,%
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Federal Reserve
9,000,000
8,000,000
7,000,000
c 6,000,000
'^ 5,000,000
c
4,000,000
3,000,000
2,000,000
Federal Reserve Balance Sheet Assets
6 6 6 O� 6 6 O� O� O� 6 6 O� O�
00,00
0 c1 c1 c1 c1' 01 c1 c? c1 c1 01 c,� c,1
9 O 1 � •3 S! S 6 � cP 9 O 1
Source: Federal Reserve
2.50%
2.00%
1.50%
v
} 1.00%
0.50%
0.00%
Source: Bloomberg
Effective Federal Funds Rate
�P A X, X, A AA A A A A A
-70
bz 61 b' 6z b1 6'4 61 b' 61 b� 6�
O 1 � .�' sr S 6 � d' 9 O 1
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 started purchasing Treasury and agency mortgage-backed securities (MBS) to support
smooth market functioning. Last year, policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund
Liquidity Facility, and 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.
Many of the Fed's lending facilities expired at the end of 2020. In June 2021, the Fed announced plans to unwind its corporate credit facility.
The Fed started to taper their Treasury and agency MBS purchases in November 2021, and we believe the Fed's bond -buying program is likely
to end in the spring of 2022. The Fed has also signaled that they are likely to start hiking the fed funds target rate in 2022.
12 C,'%
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Bond Yields
US Treasury Note Yields
2.5%
2.0%
-••• 2 -Year
- - - 5 -Year
10 -Year
1.5%
v
1.0%
0.5%
0.0%
OPc �dr ✓4h Sip OPc �ar ✓4� Sip
1,9 '>O ')p )0 )0
Source: Bloomberg
O
OCI'
1
US Treasury Yield Curve
2.5%
Dec -21
2.0% - - - Sep -21
- • • • Dec -20
1.5%
too
M
} 1.0%
s
0.5%
I .•
0.0%
a'n _6n- yr syr kyr 1pl-r &0Y
r
Source: Bloomberg
At the end of December, the 2 -year Treasury yield was about 61 basis points higher and the 10 -Year Treasury yield was about 60 basis points
higher, year -over -year. The spread between the 2 -year Treasury yield and 10 -year Treasury yield was 78 basis points at year-end compared to
the average historical spread (since 2002) of about 135 basis points.
13 C11%
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N
ilk
Section 2 1 Account Profile
14
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Objectives
Investment Objectives
As of December 31, 2021
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 CJli
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compliance As of December 31, 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
No limitations; U.S. government obligations issued by the U.S. Treasury and backed by the full faith and credit of the Federal
U.S. Treasuries Complies
government
50% max per issuer; Federal agencies or U.S. government-sponsored enterprise obligations, participations, or other instruments,
Federal Agencies including those issued by or fully guaranteed as to principal and interest by federal agencies or U.S. government-sponsored Complies
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 of the three supranational banking groups: International Bank for
Supranational Obligations Complies
Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter -American Development Bank (IADB);
Supranational securities will not be purchased until further notice from staff at the City of Tustin.
30% max; 5% max per issuer; Bonds issued by the local agency (City of Tustin bonds); State of California and any local agency
Municipal Securities (CA, Local Agency) within the State of California, including bonds payable solely out of the revenues form a revenue-producing property owned, Complies
controlled, or operated by a local agency, or by a department, board, agency, or authority of the local agency
30% max; 5% max per issuer; Bonds of any of the other 49 states in addition to California, including bonds payable solely out of
Municipal Securities (CA, Other States) the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or Complies
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; 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
Corporate Medium Term Notes institution; If the credit rating of a security is downgraded below the minimum rating level for a new investment of that security, Complies
the 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 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
Negotiable Certificates of Deposit (NCD) Complies
state or federal credit union, or by a federally -licensed or state -licensed branch of a foreign bank
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
Complies
Certificates of Deposit must be collateralized pursuant to Government Code
"A" rating or better by Moody's or equivalent rating by a NRSRO; 30% max; 5% max per issuer; 180 days maturity; Short-term
Bankers' Acceptances Complies
debt instruments issued by a company that is guaranteed by a commercial bank
16 car
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
compliance As of December 31, 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
17 Q°
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): (1) a. Organized and operating in the U.S.
Commercial Paper
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 surety bond; and c. "A-1" rated or
higher by a NRSRO
AAA or highest ranking of two of the three highest ranking NRSRO; Retained an investment adviser registered with SEC with > 5
Money Market Mutual Funds
years experience investing assets of at least $500 million; Must invest solely in investments, which the City itself could legally
Complies
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,
Local Agency Investment Fund (LAIF)
and less than $10 million may be withdrawn the same day; Fees charged by LAIF are limited by Statute; Not used by investment
Complies
adviser
Local Government Investment Pool
Investment in OCIP is allowable according to guidelines in Government Code; Max amount permitted by County Treasurer; Not
(LGIP)/Orange County Investment Pool
Complies
(OCIP)
used by investment adviser
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
Complies
Pools
invests in securities and obligations authorized in subdivisions (a) to (q), inclusive per policy
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
Prohibited
securities on margin, credit, or for other than full cash payment, and shall not be pledged as collateral; Reverse Repurchase
Complies
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
17 Q°
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Portfolio Characteristics As of December 31, 2021
City of Tustin Consolidated Account
Average Maturity (yrs)
2.64
0.46
0.50
Average Modified Duration
2.57
0.43
0.46
Average Purchase Yield
n/a
0.50%
0.57%
Average Market Yield
0.85%
0.32%
0.30%
Average Quality"
AAA
AA+/Aa3
AA-/Aa3
Total Market Value
204,464,182
199,876,513
*ICE BofA 1-5 Yr 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 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Sector Distribution
Municipal Bonds
1.5%
Money Market
Fund
0.1%
Local Gov
Investment Pool
27.3%
December 31, 2021
Negotiable CD US Treasury
2.3% 1.9%
Agency
4.4%
City of Tustin Consolidated Account
Cash
9.1%
Corporate
12.0%
Municipal Bonds
1.5%
Money Market
Fund
0.0%
Local Gov
Investment Pool
0.4%
LAI F
42.2%
September 30, 2021
Negotiable CD US Treasury
2.9% 2.0%
As of December 31, 2021
Agency
4.6%
Cash
34.5%
LAIF Corporate
41.3% 11.9%
- $9,046,129.67 $18,660,678.64 $24,565,620.34 $84,439,776.97 ® $9,128,515.67 $68,929,114.27 $23,854,553.81 $84,391,774.30
$55,721,683.23 $293,043.72 $3,047,656.67 - $4,783,793.44 - $719,777.08 $31,181.02 - $3,061,422.92 $5,817,384.85
$3,905,799.01 $3,942,788.80
19 C`1%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Portfolio Allocation
LAIF
Local Gov
Investment Pool 1 0.4%
Corporate
Cash
-
Agency 4.4%
4.6%
Negotiable CD 2.3%
- 2.9%
US Treasury
= 2.0%
Municipal Bonds
1.5%
Money Market 1 0.1%
Fund 0.0%
City of Tustin Consolidated Account
E 12.0%
94 11.9%
9.1%
27.3%
As of December 31, 2021
34.5%
■ 12/31/2021
■ 9/30/2021
41.3%
42.2%
20 C`1%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Issuers
City of Tustin Consolidated Account - Account #10795
As of December 31, 2021
Local Agency Investment Fund
LAIF
41.30%
CAMP
Local Gov Investment Pool
27.25%
Bank Cash Account
Cash
9.13%
Toyota Motor Corp
Corporate
2.26%
Federal Home Loan Bank
Agency
1.98%
Government of United States
US Treasury
1.91%
Federal Home Loan Mortgage Corp
Agency
1.49%
JP Morgan Chase & Co
Corporate
1.00%
ChevronTexaco Corp
Corporate
0.99%
Apple Inc
Corporate
0.99%
Federal National Mortgage Association
Agency
0.96%
US Bancorp
Corporate
0.69%
Chubb Corporation
Corporate
0.53%
Bank of America Corp
Corporate
0.50%
Bank of Montreal Chicago
Corporate
0.50%
Visa Inc
Corporate
0.50%
City of Industry CA
Municipal Bonds
0.50%
State of California
Municipal Bonds
0.49%
Procter & Gamble Company
Corporate
0.49%
Amazon.com Inc
Corporate
0.49%
United Health Group Inc
Corporate
0.48%
Charles Schwab Corp/The
Corporate
0.48%
Royal Bank of Canada
Corporate
0.48%
Caterpillar Inc
Corporate
0.48%
Toronto Dominion Holdings
Corporate
0.48%
Wal-Mart Stores
Corporate
0.44%
MasterCard Inc
Corporate
0.25%
Santa Rosa Regional Resources
Municipal Bonds
0.25%
First American Govt Oblig Fund
Money Market Fund
0.14%
Delaware State Police FCU
Negotiable CD
0.13%
UBS Corp
Negotiable CD
0.13%
California Edl Facs Auth Rev
Municipal Bonds
0.13%
Murrieta Redevelopment Agency
Municipal Bonds
0.12%
Sallie Mae Bank
Negotiable CD
0.12%
Alliance Credit Union MO
Negotiable CD
0.12%
First Bank of Highland
Negotiable CD
0.12%
First Premier Bank
Negotiable CD
0.12%
Signature Bank Chicago IL
Negotiable CD
0.12%
21 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Issuers
City of Tustin Consolidated Account — Account #10795
As of December 31, 2021
Mountain America FCU
Negotiable CD
0.12%
Allegiance Bank
Negotiable CD
0.12%
Barclays Bank
Negotiable CD
0.12%
FNB Bank Inc
Negotiable CD
0.12%
First Internet Bank of Indiana
Negotiable CD
0.12%
Traverse City State Bank
Negotiable CD
0.12%
DNB First NA
Negotiable CD
0.12%
First Jackson Bank Inc
Negotiable CD
0.12%
Celtic Bank
Negotiable CD
0.12%
Nebraska State Bank & Trust
Negotiable CD
0.12%
Ohio Valley Bank
Negotiable CD
0.12%
Goldman Sachs Inc.
Negotiable CD
0.12%
TOTAL
100.00%
22 Cit'%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Maturity Distribution As of December 31, 2021
$200,000,000,00
$150:000,000.09
$100.000,000.00
$50.000,000.00
$0.00
City of Tustin Consolidated Account
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
23 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Quality Distribution
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
City of Tustin Consolidated Account
December 31, 2021 vs. September 30, 2021
I. W-- 01:1
AAA AA A
■ 12/31/2021
<A
_ 9/30/2021
As of December 31, 2021
NR
12/31/21 27.4% 11.1% 8.3% 0.0% 53.3%
09/30/21 0.4% 11.4% 8.1% 0.0% 80.1%
Source: S&P Ratings
24 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
I Duration Distribution
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
City of Tustin Consolidated Account
December 31, 2021 vs. September 30, 2021
0-0.25
0.25-0.50 0.50-1 1-2 2-3
■ December 31, 2021
M-
3-4 4-5
A September 30, 2021
As of December 31, 2021
5+
12/31/21
81.0%
3.9%
4.3%
0.8%
0.4%
5.1%
4.4%
0.0%
09/30/21
78.1%
3.3%
7.8%
1.6%
0.1%
3.6%
5.6%
0.0%
25 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-80B6-83CA408FF28B
Investment Performance
City of Tustin Consolidated Account
Total Rate of Return Annualized Since Inception 11/30/2020
0.40%
0.20%
0.00%
-0.20%
-0.40%
-0.60%
-0.80%
-1.00%
As of December 31, 2021
-1.20%
12 months 2 years
3 years
5 years
10 years
Since Inception
■ City of Tustin Consolidated Account
ICE BofA 1-5 Yr US Treasury & Agency Index
■ ICE BofA
1-3 Yr US Treasury
& Agency Index
Annualized
TOTAL RATE OF RETURN
3 months 12 months
2 years
3 years
5 years
10 years Since
Inception
City of Tustin Consolidated Account
-0.04% 0.16%
N/A
N/A
N/A
N/A 0.19%
ICE BofA 1-5 Yr US Treasury & Agency Index
-0.68% -1.09%
N/A
N/A
N/A
N/A -0.94%
ICE BofA 1-3 Yr US Treasury & Agency Index
-0.53% -0.55%
N/A
N/A
N/A
N/A -0.46%
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.
26 Q1`
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
N
ilk
Section 3 1 Portfolio Holdings
27
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Holdings Report As of December 31, 2021
City of Tustin Consolidated Account - Account #10795
Agency
3130AB3U8 FHLB Callable Note 1X 4/26/2019
4,000,000.00 04/26/2017
4,000,000.00
100.59
4,023,744.00
1.98%
Aaa / AA+
0.32
2.100% Due 04/26/2022
2.10%
4,000,000.00
0.24%
15,166.67
23,744.00
NR
0.32
3134GBMB5 FHLMC Callable Note 1X 5/25/2018
1,000,000.00 05/25/2017
1,000,000.00
100.72
1,007,223.00
0.49%
Aaa / AA+
0.40
2.050% Due 05/25/2022
2.05%
1,000,000.00
0.24%
2,050.00
7,223.00
AAA
0.40
3134GBWQ1 FHLMC Callable Note 1X 7/27/2018
2,000,000.00 07/27/2017
1,996,000.00
101.00
2,019,912.00
1.00%
Aaa / AA+
0.57
2.000% Due 07/27/2022
2.04%
1,999,546.55
0.26%
17,111.11
20,365.45
AAA
0.57
3135GO4Z3 FNMA Note
2,000,000.00 04/12/2021
1,982,980.00
98.03
1,960,534.00
0.96%
Aaa / AA+
3.46
0.500% Due 06/17/2025
0.71%
1,985,913.33
1.08%
388.89
(25,379.33)
AAA
3.42
1,001,898.00
0.49%
8,978,980.00
0.10
9,011,413.00
4.42%
Aaa / AA+
1.07
TOTAL Agency
9,000,000.00 1.77%
8,985,459.88
0.43%
34,716.67
25,953.12
Aaa
1.06
Cash
Apple Inc Callable Note Cont 4/11/2022
2,000,000.00
01
2,015,402.54
90BOFA$00 Cash BOA Cash Acct 18,660,678.64 Various 18,660,678.64
1.00 18,660,678.64
9.13%
NR/NR
0.00
0.25% 18,660,678.64
0.25% 0.00
0.00
NR
0.00
18,660,678.64
18,660,678.64
9.13%
NR/NR
0.00
TOTAL Cash 18,660,678.64 0.25% 18,660,678.64
0.25% 0.00
0.00
NR
0.00
A+
Corporate
Apple Inc Callable Note Cont 4/11/2022
2,000,000.00
06/26/2017
2,015,402.54
100.51
2,010,218.00
0.99%
Aaa / AA+
89236TDP7
Toyota Motor Credit Corp Note
1,000,000.00 07/13/2017
1,017,027.84
100.04
1,000,422.00
0.50%
Al/A+
0.03
NR
2.600% Due 01/11/2022
2.20%
1,000,103.64
1.07%
12,277.78
318.36
A+
0.03
742718DY2
Procter & Gamble Cc Note
1,000,000.00 07/16/2018
979,800.00
100.19
1,001,898.00
0.49%
Aaa / AA-
0.10
16,871.53
2.300% Due 02/06/2022
2.90%
999,441.05
0.34%
9,263.89
2,456.95
NR
0.10
166764BN9
Chevron Corp Callable Note Cont 2/3/2022
2,000,000.00 08/10/2017
2,034,400.00
100.18
2,003,534.00
0.99%
Aa2 / AA-
0.17
1,000,327.14
2.498% Due 03/03/2022
2.10%
2,001,259.54
0.49%
16,375.78
2,274.46
NR
0.09
037833CQ1
Apple Inc Callable Note Cont 4/11/2022
2,000,000.00
06/26/2017
2,015,402.54
100.51
2,010,218.00
0.99%
Aaa / AA+
0.36
2.300% Due 05/11/2022
2.13%
2,001,124.90
0.45%
6,388.89
9,093.10
NR
0.28
89236TEC5
Toyota Motor Credit Corp Note
2,500,000.00
11/01/2017
2,482,750.00
101.12
2,527,987.50
1.24%
Al/A+
0.69
2.150% Due 09/08/2022
2.30%
2,497,566.31
0.51%
16,871.53
30,421.19
A+
0.68
92826CAG7
Visa Inc Callable Note Cont 8/15/2022
1,000,000.00
10/03/2017
1,002,301.43
101.06
1,010,606.00
0.50%
Aaa / AA-
0.71
2.150% Due 09/15/2022
2.10%
1,000,327.14
0.44%
6,330.56
10,278.86
NR
0.62
89236TFNO
Toyota Motor Credit Corp Note
1,000,000.00
02/28/2019
1,019,000.00
104.51
1,045,090.00
0.52%
Al/A+
1.72
3.450% Due 09/20/2023
3.00%
1,007,154.95
0.80%
9,679.17
37,935.05
A+
1.66
57636CIAN4 MasterCard Inc Callable Note 1x 02/03/2025 500,000.00 11/01/2021 515,365.00 102.56 512,791.50 0.25% Al / A+ 3.17
2.000% Due 03/03/2025 1.06% 514,619.49 1.15% 3,277.78 (1,827.99) NR 2.98
28 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Holdings Report
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
As of December 31, 2021
City of Tustin Consolidated Account - Account #10795
1,000,000.00 08/17/2021 1,034,530.00 101.52 1,015,196.00 0.50% A2 / A- 3.33
0.90% 1,031,079.56 1.38% 3,083.33 (15,883.56) AA- 3.22
91159HHZ6 US Bancorp Callable Note Cont 4/11/2025 1,400,000.00 12/23/2021 1,406,818.00 100.45 1,406,354.60 0.69% A2/A+ 3.36
1.450% Due 05/12/2025 1.30% 1,406,795.85 1.31% 2,763.06 (441.25) A+ 3.19
89114QCK2 Toronto Dominion Bank Note 1,000,000.00 08/17/2021 993,000.00 97.37 973,703.00 0.48% Al/A 3.70
0.750% Due 09/11/2025 0.93% 993,636.79 1.48% 2,291.67 (19,933.79) AA- 3.61
14913R2H9 Caterpillar Financial Service Note
1,000,000.00 04/21/2021
991,780.00
98.12
981,218.00
0.48%
A2 / A
3.87
0.800% Due 11/13/2025
0.98%
993,029.05
1.30%
1,066.67
(11,811.05)
A
3.79
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
1,000,000.00 04/20/2021
1,030,470.00
101.33
1,013,273.00
0.50%
A2 / A-
4.12
2.015% Due 02/13/2026
1.13%
1,026,067.62
1.40%
7,724.17
(12,794.62)
AA-
3.92
46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025
2,000,000.00 Various
2,072,110.00
101.54
2,030,788.00
1.00%
A2 / A-
4.31
2.083% Due 04/22/2026
1.26%
2,065,799.45
1.60%
7,984.84
(35,011.45)
AA-
3.18
00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026
1,000,000.00 07/23/2021
1,102,780.00
107.27
1,072,667.00
0.53%
A3 / A
4.34
3.350% Due 05/03/2026
1.13%
1,093,452.46
1.51%
5,397.22
(20,785.46)
A
3.82
023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026 1,000,000.00 05/12/2021 995,200.00 99.07 990,732.00 0.49% Al / AA 4.36
1.000% Due 05/12/2026 1.10% 995,810.53 1.22% 1,361.11 (5,078.53) AA- 4.25
808513BR5 Charles Schwab Corp Callable Note Cont 4/13/2026 1,000,000.00 07/23/2021 1,007,990.00 98.71 987,073.00 0.48% A2 / A 4.37
1.150% Due 05/13/2026 0.98% 1,007,269.03 1.46% 1,533.33 (20,196.03) A 4.23
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1,000,000.00
07/28/2021
1,007,110.00
98.97
989,735.00
0.48%
A3/A+
4.37
1.150% Due 05/15/2026
1.00%
1,006,480.26
1.39%
1,469.44
(16,745.26)
A
4.24
78016EZT7 Royal Bank of Canada Note
1,000,000.00
07/28/2021
999,090.00
97.87
978,703.00
0.48%
A2 / A
4.54
1.150% Due 07/14/2026
1.17%
999,167.93
1.64%
5,334.72
(20,464.93)
AA-
4.37
931142ERO Wal-Mart Stores Callable Note Cont 08/17/2026
900,000.00
09/22/2021
902,277.00
98.94
890,425.80
0.44%
Aa2 / AA
4.72
1.050% Due 09/17/2026
1.00%
902,153.07
1.28%
2,730.00
(11,727.27)
AA
4.56
24,609,201.81
24,442,415.40
12.01%
Al / A+
2.52
TOTAL Corporate
24,300,000.00
1.62%
24,542,338.62
1.04%
123,204.94
(99,923.22)
A+
2.33
29 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Holdings Report
City of Tustin Consolidated Account - Account #10795
As of December 31, 2021
LAIF
Various
293,043.72
1.00
293,043.72
90LAIF$00 Local Agency Investment Fund State Pool 84,395,825.43 Various 84,395,825.43
1.00 84,395,825.43
41.30%
NR/NR
0.00
0.22% 84,395,825.43
0.22% 43,951.54
0.00
NR
0.00
84,395,825.43
84,395,825.43
41.30%
NR/NR
0.00
TOTAL LAW 84,395,825.43 0.22% 84,395,825.43
0.22% 43,951.54
0.00
NR
0.00
Local Gov Investment Pool
Various
293,043.72
1.00
293,043.72
90CAMP$00 California Asset Mgmt Program CAMP 55,721,683.23 Various 55,721,683.23
1.00 55,721,683.23
27.25%
NR / AAA
0.00
0.05% 55,721,683.23
0.05% 0.00
0.00
NR
0.00
55,721,683.23
55,721,683.23
27.25%
NR / AAA
0.00
TOTAL Local Gov Investment Pool 55,721,683.23 0.05% 55,721,683.23
0.05% 0.00
0.00
NR
0.00
Money Market Fund
31846V203 First American Govt Obligation Fund Class Y
TOTAL Money Market Fund
Municipal Bonds
45656RDV1 City of Industry CA STE-REV
2.750% Due 01/01/2022
13063DADO California State TE -GO
2.367% Due 04/01/2022
293,043.72
Various
293,043.72
1.00
293,043.72
0.14%
Aaa / AAA
0.00
0.58
0.01%
293,043.72
0.01%
0.00
0.00
AAA
0.00
AA
0.58
293,043.72
250,000.00
293,043.72
0.14%
Aaa / AAA
0.00
293,043.72
0.01%
293,043.72
0.01%
0.00
0.00
Aaa
0.00
1,000,000.00
05/17/2017
1,013,000.00
100.00
1,000,000.00
0.50%
AI/NR
0.00
102.18
2.45%
1,000,000.00
2.75%
13,750.00
0.00
NR
0.00
1,000,000.00
04/27/2017
1,010,000.00
100.55
1,005,450.00
0.49%
Aa2 / AA-
0.25
2.15%
1,000,500.00
0.18%
5,917.50
4,950.00
AA
0.25
802629AX3 Santa Rosa Regional Resources STE-REV
500,000.00
10/03/2017
504,500.00
101.15
505,770.00
0.25%
NR/AA+
0.58
2.400% Due 08/01/2022
2.20%
500,541.12
0.42%
5,000.00
5,228.88
AA
0.58
62719PAY2 Murrieta Redevelopment Agency STE-TA
250,000.00
10/18/2017
249,345.00
100.97
252,432.50
0.12%
NR / A
0.58
2.500% Due 08/01/2022
2.56%
249,920.56
0.82%
2,604.17
2,511.94
NR
0.57
13077DFD9 California State University TE -REV
250,000.00
08/02/2018
250,000.00
102.18
255,460.00
0.13%
Aa2 / AA-
0.84
3.054% Due 11/01/2022
3.05%
250,000.00
0.43%
1,272.50
5,460.00
NR
0.82
3,026,845.00
3,019,112.50
1.49%
Aa3 / AA-
0.30
TOTAL Municipal Bonds
3,000,000.00
2.37%
3,000,961.68
1.15%
28,544.17
18,150.82
AA
0.30
Negotiable CD
677721CNO Ohio Valley Bank Negotiable CD 248,000.00 07/19/2017 248,000.00 100.09 248,216.01 0.12% NR/NR 0.05
1.900% Due 01/19/2022 1.90% 248,000.00 0.23% 167.82 216.01 NR 0.05
30 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-80B6-83CA408FF28B
Holdings Report
City of Tustin Consolidated Account - Account #10795
As of December 31, 2021
63969ACD4
Nebraska State Bank & Trust Negotiable CD
248,000.00
04/21/2017
248,000.00
100.24
248,597.18
0.12%
NR/NR
0.14
1.950% Due 02/21/2022
1.95%
248,000.00
0.26%
145.74
597.18
NR
0.14
15118RMF1
Celtic Bank Negotiable CD
248,000.00
04/21/2017
248,000.00
100.57
249,413.85
0.12%
NR/NR
0.30
2.100% Due 04/21/2022
2.10%
248,000.00
0.22%
156.95
1,413.85
NR
0.30
32063KASI
First Jackson Bank Inc Negotiable CD
248,000.00
11/08/2017
248,000.00
100.64
249,598.61
0.12%
NR/NR
0.35
2.050% Due 05/09/2022
2.06%
248,000.00
0.23%
334.29
1,598.61
NR
0.35
25590AAH3
DNB First NA Negotiable CD
248,000.00
06/23/2017
248,000.00
100.84
250,084.19
0.12%
NR/NR
0.48
2.000% Due 06/23/2022
2.00%
248,000.00
0.24%
122.30
2,084.19
NR
0.47
894333FF5
Traverse City State Bank Negotiable CD
248,000.00
06/28/2017
248,000.00
100.87
250,155.12
0.12%
NR/NR
0.49
2.000% Due 06/28/2022
2.00%
248,000.00
0.23%
54.36
2,155.12
NR
0.49
06740KKD8
Barclays Bank Delaware Negotiable CD
247,000.00
07/12/2017
247,000.00
101.03
249,555.71
0.12%
NR/NR
0.53
2.200% Due 07/12/2022
2.20%
247,000.00
0.24%
2,575.57
2,555.71
NR
0.52
32056GCQ1
First Internet Bank of IN Negotiable CD
248,000.00
07/14/2017
248,000.00
100.96
250,392.46
0.12%
NR/NR
0.53
2.050% Due 07/14/2022
2.05%
248,000.00
0.24%
250.72
2,392.46
NR
0.53
330459BU1
FNB Bank Inc Negotiable CD
248,000.00
08/18/2017
248,000.00
101.09
250,702.46
0.12%
NR/NR
0.63
2.000% Due 08/18/2022
2.00%
248,000.00
0.27%
190.25
2,702.46
NR
0.63
33610RQY2
First Premier Bank Negotiable CD
248,000.00
08/21/2017
248,000.00
101.14
250,836.13
0.12%
NR/NR
0.64
2.050% Due 08/22/2022
2.05%
248,000.00
0.26%
1,852.53
2,836.13
NR
0.64
01859BAA3
Alliance Credit Union MO Negotiable CD
248,000.00
10/13/2017
248,000.00
101.52
251,775.06
0.12%
NR/NR
0.78
2.250% Due 10/13/2022
2.25%
248,000.00
0.30%
1,223.01
3,775.06
NR
0.78
01748DAY2
Allegiance Bank Negotiable CD
248,000.00
11/03/2017
248,000.00
101.58
251,914.68
0.12%
NR/NR
0.84
2.200% Due 11/03/2022
2.20%
248,000.00
0.32%
433.49
3,914.68
NR
0.83
319141JF5
First Bank of Highland Negotiable CD
248,000.00
11/08/2017
248,000.00
101.60
251,969.74
0.12%
NR/NR
0.85
2.200% Due 11/08/2022
2.20%
248,000.00
0.32%
807.19
3,969.74
NR
0.85
62384RACO
MOUNTAIN AMERICA FD CRIED Negotiable CD
248,000.00
11/08/2017
248,000.00
101.69
252,184.75
0.12%
NR/NR
0.85
2.300% Due 11/08/2022
2.30%
248,000.00
0.32%
375.06
4,184.75
NR
0.85
82669VBY6
Signature Bank Chicago IL Negotiable CD
248,000.00
11/08/2017
248,000.00
101.56
251,863.84
0.12%
NR/NR
0.85
2.150% Due 11/08/2022
2.15%
248,000.00
0.32%
788.84
3,863.84
NR
0.85
795450M93
Sallie Mae Bank Negotiable CD
245,000.00
04/18/2018
245,000.00
103.31
253,110.73
0.12%
NR/NR
1.30
3.000% Due 04/18/2023
3.00%
245,000.00
0.44%
1,510.27
8,110.73
NR
1.27
90348JCW8
UBS Bank USA Negotiable CD
248,000.00
06/13/2018
248,000.00
104.00
257,913.55
0.13%
NR/NR
1.45
3.250% Due 06/13/2023
3.25%
248,000.00
0.48%
419.56
9,913.55
NR
1.42
246399AB5
Delaware State Police FCU Negotiable CD
246,000.00
03/29/2019
246,000.00
105.09
258,515.50
0.13%
NR/NR
2.24
3.000% Due 03/29/2024
3.00%
246,000.00
0.71%
1,900.60
12,515.50
NR
2.17
31 C,`%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Holdings Report
City of Tustin Consolidated Account - Account #10795
As of December 31, 2021
38149MYS6 Goldman Sachs Bank USA Negotiable CD 245,000.00 08/17/2021 243,775.00
99.09 242,776.14
0.12%
NR/NR
4.65
1.050% Due 08/25/2026 1.15% 243,861.54
1.25% 909.18
(1,085.40)
NR
4.51
4,701,775.00
4,769,575.71
2.34%
NR / NR
0.95
TOTAL Negotiable CD 4,703,000.00 2.20% 4,701,861.54
0.36% 14,217.73
67,714.17
NR
0.93
3,138.59
(27,778.95)
AAA
4.03
91282CBT7 US Treasury Note
US Treasury
91282CBH3 US Treasury Note
2,000,000.00 04/27/2021
1,957,500.00
96.79
1,935,782.00
0.95%
Aaa /AA+
4.09
0.375% Due 01/31/2026
0.83%
1,963,560.95
1.18%
3,138.59
(27,778.95)
AAA
4.03
91282CBT7 US Treasury Note
2,000,000.00 04/27/2021
1,989,531.25
98.15
1,963,046.00
0.96%
Aaa / AA+
4.25
0.750% Due 03/31/2026
0.86%
1,990,975.22
1.20%
3,832.42
(27,929.22)
AAA
4.15
3,947,031.25
3,898,828.00
1.91%
Aaa / AA+
4.17
TOTAL US Treasury
4,000,000.00 0.85%
3,954,536.17
1.19%
6,971.01
(55,708.17)
Aaa
4.09
204,335,064.08 204,212,575.63 100.00% Aa3 / AA+ 0.46
TOTAL PORTFOLIO 204,074,231.02 0.50% 204,256,388.91 0.32% 251,606.06 (43,813.28) AA 0.43
TOTAL MARKET VALUE PLUS ACCRUALS 204,464,181.69
32 c1'%
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
N
ilk
Section 4 1 Transactions
33
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Transaction Ledger
City of Tustin Consolidated Account - Account #10795
September 30, 2021 through December 31, 2021
As of December 31, 2021
ACQUISITIONS
1,947,776.45
1,969,959.45
4,260.56
1,974,220.01
0.00
Security
Purchase
10/15/2021
90LAIF$00
47,715.24
Local Agency Investment Fund State Pool
1.000
0.21%
47,715.24
0.00
47,715.24
0.00
Purchase
10/31/2021
90CAMP$00
31.28
California Asset Mgmt Program CAMP
1.000
0.05%
31.28
0.00
31.28
0.00
Purchase
11/03/2021
57636QAN4
500,000.00
MasterCard Inc Callable Note 1x 02/03/2025
103.073
1.04%
515,365.00
1,666.67
517,031.67
0.00
56,971,804.39
4,260.56
56,976,064.95
2% Due: 03/03/2025
DISPOSITIONS
Purchase
11/30/2021
90CAMP$00
29.93
California Asset Mgmt Program CAMP
1.000
0.05%
29.93
0.00
29.93
0.00
Purchase
12/28/2021
91159HHZ6
1,400,000.00
US Bancorp Callable Note Cont 4/11/2025
100.487
1.30%
1,406,818.00
2,593.89
1,409,411.89
0.00
Maturity
10/20/2021
1.45% Due: 05/12/2025
248,000.00
Northfield Bank Negotiable CD
100.000
248,000.00
0.00
248,000.00
Subtotal
1,947,776.45
1,969,959.45
4,260.56
1,974,220.01
0.00
Security
12/31/2021
90CAMP$00
55,001,844.94
California Asset Mgmt Program CAMP
1.000
55,001,844.94
0.00
55,001,844.94
0.00
Contribution
Subtotal
55,001,844.94
55,001,844.94
0.00
55,001,844.94
0.00
TOTAL ACQUISITIONS
56,949,621.39
56,971,804.39
4,260.56
56,976,064.95
0.00
DISPOSITIONS
Maturity
10/13/2021
903572CC7
247,000.00
Uinta Bank Negotiable CD
100.000
247,000.00
0.00
247,000.00
0.00
2.05% Due: 10/13/2021
Maturity
10/20/2021
66612ABV9
248,000.00
Northfield Bank Negotiable CD
100.000
248,000.00
0.00
248,000.00
0.00
1.95% Due: 10/20/2021
Maturity
12/15/2021
717081DZ3
1,000,000.00
Pfizer Inc. Note
100.000
1,000,000.00
0.00
1,000,000.00
0.00
2.2% Due: 12/15/2021
Maturity
12/21/2021
39115UAZ6
248,000.00
Great Plains Bank SD Negotiable CD
100.000
248,000.00
0.00
248,000.00
0.00
1.85% Due: 12/21/2021
Maturity
12/30/2021
02554BCRO
247,000.00
American Eagle Bank IL Negotiable CD
100.000
247,000.00
0.00
247,000.00
0.00
2% Due: 12/30/2021
Subtotal
1,990,000.00
1,990,000.00
0.00
1,990,000.00
0.00
TOTAL DISPOSITIONS
1,990,000.00
1,990,000.00
0.00
1,990,000.00
0.00
34 C11%
DocuSign Envelope ID: 062B9853-6381-4FOF-80B6-83CA408FF28B
Important Disclosures As of December 31, 2021
2022 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 alter the 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 of the 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.
35 CJJJ
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
Benchmark Disclosures As of December 31, 2021
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 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, S&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 of $1 billion for sovereigns and $250 million for
agencies.
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 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, S&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 of $1 billion for sovereigns and $250 million for
agencies.
36 C11
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
CITY OF TUSTIN
Monthly Investment Report
December 31, 2021
Restricted Deposits with Fiscal Agents
[ll
Description / Limits
[2] [31 [4]
Face Amount Shares YTM@Cost Credit Rating Cost Value +Accrued
Interest
[5]
Market Value
2016 Successor Agency Tax Allocation Bonds, Refunding
10.30
N/A
10.30
10.30
2016 Water Revenue Bonds, Refunding
0.96
N/A
0.96
0.96
2012 Water Revenue Bonds - Refunding
0.12
N/A
0.12
0.12
2020 Water Revenue Bonds
0.00
N/A
0.00
0.00
CFD 04-1
689,496.12
N/A
689,496.12
689,496.12
CFD 06-1
4,650,832.03
N/A
4,650,832.03
4,650,832.03
CFD 07-1
1,137,816.56
N/A
1,137,816.56
1,137,816.56
CFD 14-1
5,355,447.91
N/A
5,355,447.91
5,355,447.91
11,833,604.00
11,833,604.00
11,833,604.00
Restricted Deposits
with Fiscal Agents TOTAL
11,833,604.00
11,833,604.00
DocuSign Envelope ID: 062B9853-6381-4FOF-8OB6-83CA408FF28B
PUBLIC
AGENCY
RETIREMENT
SERVICES PARS
CITY OF TUSTIN Account Report for the Period
PARS Post -Employment Benefits Trust 12/1/2021 to 12/31/2021
Matthew West
City Manager
City of Tustin
300 Centennial Way
Tustin, CA 92780
Account Summary
Investment Return
Annualized Return
Source 1 -Month 3 -Months 1 -Year F -3 -Years 5 -Years 10 -Years Plan's Inception Date
OPEB 2.08% 3.89% 10.34% 13.02% 6/26/2018
PENSION 2.08% 3.89% 10.33% 13.04% 6/26/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but maybe subject to change.
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees
Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org
Balance as of Balance as of
Source
12/1/2021 Contributions Earnings Expenses Distributions Transfers 12/31/2021
OPEB
$2,611,744.05 $0.00 $54,308.16 $1,190.26 $0.00 $0.00 $2,664,861.95
PENSION
$7,451,451.36 $0.00 $154,913.11 $3,395.81 $0.00 $0.00 $7,602,968.66
Totals
$10,063,195.41 $0.00 $209,221.27 $4,586.07 $0.00 $0.00 $10,267,830.61
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 2.08% 3.89% 10.34% 13.02% 6/26/2018
PENSION 2.08% 3.89% 10.33% 13.04% 6/26/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but maybe subject to change.
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees
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