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HomeMy WebLinkAbout13 QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNDocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 • AGENDA REPORT MEETING DATE: MAY 17, 2022 TO: MATTHEW S. WEST, CITY MANAGER 13 Agenda Item Reviewed. Ds 5W City Manager Finance Director 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 MARCH 31, 2022 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 March 31, 2022 is rendered. The City's total cash and investments amounted to approximately $195 million as of March 31, 2022. The weighted average portfolio yield for the investment portfolio was 0.96%, which is 46 basis points higher than the weighted average portfolio yield for the prior quarter. The primary reason for the increase in the weighted average portfolio yield is due to a relatively swift upward movement in Treasury yields across the board that begun in January 2022. The Federal Open Market Committee (FOMC) raised the federal funds rate by 0.25% in March, its first increase since 2018. More federal funds rate increases are expected for the remaining 2022 year. As a result, the 2 -year Treasury yield increased to 2.34% by March 2022, compared to a yield of 0.73% in December 2021. The 5 - year Treasury yield increased to 2.46% by March 2022, compared to a yield of 1.26% in December 2021. DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Quarterly Investment Report for the Period Ending March 31, 2022 Page 2 of 2 PARS Pension Trust The City has made two contributions into a Pension Trust: $5.6 million in June 2018 and $2 million in March 2022. The Pension Trust is held by Public Agency Retirement Services (PARS) and 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 risks and return and provides for diversification. Pension Trust Fund assets amounted to $9.2 million at March 31, 2022. The three-year annualized return for the PARS Pension Trust Fund was 8.09%. PARS OPEB Trust Over the past four years, the City has also made $2.5 million in contributions into an Other Post - Employment Benefits (OPEB) Trust, including a recent contribution of $500,000 in March 2022. The OPEB Trust is held by PARS and includes funds that are set-aside for future retiree healthcare costs. Trust assets are managed in a customized investment strategy that balances risk and return and provides for diversification. OPEB Trust Fund assets amounted to $3 million at March 31, 2022. The three-year annualized return for the PARS OPEB Trust Fund was 8.19%. Investment Compliance Certification On April 28, 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 not limited to traffic and street improvements, water system improvements, park projects, improvements to public facilities and capital projects at the Tustin Legacy. Aaom V Jason AI -Imam Finance Director/City Treasurer Attachment: Investment Report Certification Jennifer King Deputy Finance Director — Financial Services Quarterly Investment Report for the Period Ending March 31, 2022 PARS Trust Statements as of March 31, 2022 Restricted Deposits with Fiscal Agents as of March 31, 2022 DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 City of Tustin, California Finance Department April 28, 2022 Honorable Mayor and Members of the City Council: Re: Investment Report Certification TUSTIN f f u ruler BUIL. ING OUR FUTURE HONORING OUR PAST In compliance with California Government Code Section 53646, the attached Investment Report for the Quarter Ending March 31, 2022 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 s jibluitted, Jo e e, Chair v of Tustin Audit Commission Jason Al -Imam, Finance Director City of Tustin Treasurer 300 Centennial Way, Tustin, CA 92780 www.tustinca.or� DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 INVESTMENT REPORTit% City of Tustin Period Ending March 31, 2022 CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com CHANDLER ASSET MANAGEMENT DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 I Table of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 Economic Update Account Profile Consolidated Information Portfolio Holdings Transactions As of March 31, 2022 1 Q,tj DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Section 1 1 Economic Update DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Economic Update ■ The Russian invasion into Ukraine and resulting Western sanctions on Russia have fueled volatility in financial markets. The latest escalation has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets. While consumer spending and economic growth remain strong, we believe an extended conflict in Eastern Europe along with elevated energy prices increases the risk of an economic slowdown later this year. While we expect the Fed to tighten monetary policy, the FOMC has very little margin for error as it attempts to combat inflation without pushingthe economy into a recession. Overthe near-term, we expectfinancial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Fed's pivot to less accommodative monetary policy. 0 The Federal Open Market Committee (FOMC) raised the federal funds rate by 0.25% at their March 16th meeting to a target range of 0.25% to 0.50%. The Federal Reserve also ended their bond -buying program as expected in March, which included the purchase of treasury and agency mortgage-backed securities. Fed Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, soonerthan previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot favors six additional rate hikes in 2022, which implies a 25 basis point rate hike at each remaining meeting this year, but the Fed hasn't ruled out incorporating one or more 50 basis point hikes to address inflation. The FOMC's Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE) inflation this year at 4.3% and a lower growth rate of 2.8% real GDP. We are anticipating additional rates hikes by the Fed this year, but we do not believe that monetary policy is on a pre-set course and expect the Fed's policy adjustments will depend on developments in the economy. In March, yields increased dramatically and the curve continued to flatten. The 2 -year Treasury yield increased 90 basis points to 2.34%, the 5 -year Treasury yield increased 74 basis points to 2.46%, and the 10 -year Treasury yield increased 51 basis points to 2.34%. The spread between the 2 -year and 10 -year Treasury yield declined to zero at March month-end versus 40 basis points at February month-end and 158 basis points one year ago. While the flat yield curve bears watching over the longer run, the spread between 3 -month and 10 -year treasuries is still steep at about 185 basis points, which indicates likely economic growth in the coming year. 3 CJJJ DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 IEmployment c -2,000 0 ` -6,000 0 -10,000 0 -14,000 -18,000 -22,000 Nonfarm Payroll (000's) Non-farm Payroll (000's) 3 month average (000's) ✓ S O ✓ S O dry�p�c O �O � O � O 1 1 1 1 Source: US Department of Labor Unemployment Rate 24.0% ♦♦ - - - Underemployment Rate (U6) 20.0% ♦ Unemployment Rate (U3) 16.0% ' �♦ ♦ 12.0% , - • M `. 8.0% •�•••,, 4.0% 0.0% ✓ S O✓ S O P��� 4-7 o Source: US Department of Labor The U.S. economy added 431,000 jobs in March, with upward revisions from the prior months totaling 95,000. Trends in employment remain strong, with the three-month moving average payrolls at 561,000 and the six-month moving average at 600,000. Job gains were broad based in March, led by leisure and hospitality and professional and business services. The unemployment rate fell to 3.6% from 3.8%, the lowest level since February 2020. The labor participation rate increased marginally to 62.4% in March from 62.3°/% in February but remains lowerthan the pre - pandemic level of 63.4%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, fell to 6.9% in March from 7.2°% in February, declining below its pre -pandemic level of 7.0% in February 2020. Wage growth accelerated in March, with average hourly earnings rising 5.6% from 5.2% year -over -year. As more participants enter the labor force, wage inflation dynamics should start to moderate, helping to lowerthe current elevated inflation readings. 4 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Inflation ✓ f dr')0 4h-)0 Pp )0 Source: US Department of Labor Ooc') 2fd~� ✓47 � SPp� O 1 1 1 Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change - - - PCE Core Deflator YOY % Change mob �a` �4g �o� X06 `)0 �0 �0 -)0 Source: US Department of Commerce Although U.S. consumer prices rose less than expected in March, inflation remained elevated at a 40 -year high. The Consumer Price Index (CPI) was up 8.5% year -over -year in March, versus up 7.9% year -over -year in February. Core CPI (CPI less food and energy) was up 6.5°%year-over- year in March, versus up 6.4% year -over -year in February. Gasoline costs drove about half of the monthly increase, while food was also a sizable contributor. Used vehicle prices declined (although remaining firm), resulting in lower than forecast core increases for the month. The Personal Consumption Expenditures (PCE) index was up 6.4% year -over -year in February, up from 6.0% in January. Core PCE was up 5.4% year - over -year in February, versus up 5.2% in January. Current inflation readings continue to run well above the Fed's longer -run target of around 2.0%. While gas prices have started to decline in recent weeks in part due to COVID lockdowns in China, we believe pricing pressures may remain elevated longer than anticipated as a result of the conflict in Europe. 5 Q11► Consumer Price Index (CPI) 9.0% 9.0% 8.0% CPI YOY % Change 8.0% 7.0% - - - Core CPI YOY % Change 7.0% 6.0% • 6.0% r 5.0% J° 5.0% �`-�� 4.0% �� 4.0% 3.0% ° 3.0% 2.0% 2.0% 1.0% 0.0% 0.0% ✓ f dr')0 4h-)0 Pp )0 Source: US Department of Labor Ooc') 2fd~� ✓47 � SPp� O 1 1 1 Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change - - - PCE Core Deflator YOY % Change mob �a` �4g �o� X06 `)0 �0 �0 -)0 Source: US Department of Commerce Although U.S. consumer prices rose less than expected in March, inflation remained elevated at a 40 -year high. The Consumer Price Index (CPI) was up 8.5% year -over -year in March, versus up 7.9% year -over -year in February. Core CPI (CPI less food and energy) was up 6.5°%year-over- year in March, versus up 6.4% year -over -year in February. Gasoline costs drove about half of the monthly increase, while food was also a sizable contributor. Used vehicle prices declined (although remaining firm), resulting in lower than forecast core increases for the month. The Personal Consumption Expenditures (PCE) index was up 6.4% year -over -year in February, up from 6.0% in January. Core PCE was up 5.4% year - over -year in February, versus up 5.2% in January. Current inflation readings continue to run well above the Fed's longer -run target of around 2.0%. While gas prices have started to decline in recent weeks in part due to COVID lockdowns in China, we believe pricing pressures may remain elevated longer than anticipated as a result of the conflict in Europe. 5 Q11► DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 IConsumer 60.0% 50.0% 40.0% 30.0% J° 20.0% 10.0% 0 0.0% -10.0% -20.0% -30.0% Retail Sales YOY % Change ✓ S dry O �a� p O Source: US Department of Commerce 140 130 120 a, 110 X a� = 100 90 Consumer Confidence 80 ✓ S OPc,)O �dr ✓4h � SPp� O�c� � d�";0, �1 1 1 1 �O Source: The Conference Board OPc� 2fd~� ✓4� � SPp� Retail sales edged higher in March, but there are signs that higher gas prices are impacting discretionary spending. On a year -over -year basis, retail sales were up 6.9% in March versus up 18.2% in February. On a month -over -month basis, retail sales moderated, rising 0.5% in March versus an upwardly revised increase of 0.8% in February. Excluding vehicles and gas, retail sales were up just 0.2% month -over -month. Gains in March were driven primarily by gasoline purchases, while e-commerce and vehicle sales declined. Although inflation threatens to put a dent in expected growth, 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 rebounded to 107.2 in March following declines in January and February, primarily driven by positive assessments of employment. However, while consumers' evaluations of the present situation was strong, future expectations have been deteriorating. 6 c1'% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Economic Activity 4.0% 2.0% 0 0.0% c s u -2.0% 5 0 -4.0% -6.0% Leading Economic Indicators (LEI) -8.0% �Pb,,-)o �p �o X01, �% Source: The Conference Board M- oll] SIM will, Chicago Fed National Activity Index (CFNAI) t c -2.00 0 -4.00 1:11161 -8.00 2id`�1 1 Ot, Pb,� Pb2o a`�O g4gc Source: Federal Reserve Bank of Chicago /1i01,X06 /dam 14g �oL X06 �O �1 The Conference Board's Leading Economic Index (LEI) increased 0.3% month -over -month in February, following a 0.5% downwardly revised decline in January. On a year -over -year basis, the LEI was up 7.6% in February versus up 7.3% in January. The Conference Board acknowledged that the data do not fully reflect the impact of the Russian invasion of Ukraine on global supply chain issues, shortages, and the resulting soaring prices, which could result in slower than expected growth in the first half of the year. Meanwhile, the Chicago Fed National Activity Index (CFNAI) fell to 0.51 in February from a downwardly revised 0.59 in January. On a 3 -month moving average basis, the CFNAI declined to 0.35 in February, while January was revised downward to 0.37. 7 c1,% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Housing 1800 1600 0 a 1400 c 1200 3 1000 800 a 600 400 0 200 0 Housing Starts 41 ILDI i. Multi Family Housing Starts ■ Single Family Housing Starts .0016 Oil 94g�0 �oG�O O �06�1 Oil 1 94g�I �oG�1 �061)0 �� Source: US Department of Commerce 24.0% 21.0% 18.0% 0 15.0% c f0 12.0% 0 } 9.0% 0 6.0% 3.0% 0.0% S&P/Case-Shiller 20 City Composite Home Price Index 1/ .1 ��~� ✓4/ O Oc�� ✓d�� qpr� ✓4/ 1 Oce ✓a�� O O 1 1 1 Source: S&P Total housing starts rebounded 6.8% to an annual rate of 1,769,000 in February. Single-family starts increased 5.7%, and multi -family starts increased 9.3%, month -over -month. On a year -over -year basis, total housing starts were up 22.3% in February driven by multi -family starts. According to the Case-Shiller 20 -City home price index, home prices were up 19.1% year -over -year in January versus up 18.6°/% year -over -year in December, suggesting tight supply may be continuing to support prices. Rising mortgage rates and affordability could be headwinds to further price growth. 8 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 66 64 62 60 58 56 54 52 50 48 46 44 42 40 Manufacturing Institute of Supply Management Purchasing Manager Index ✓ S 0 10 1)0 I)p 20 Source: Institute for Supply Management ✓ S 0 Pct �dr� 20.0% 15.0% 10.0% a Y 5.0% s u 0.0% } o -5.0% -10.0% -15.0% -20.0% d' -O O Source: Federal Reserve Industrial Production SPp� O0c� 2!d~� ✓4� SPp� 600 �dr� O O I 1 l 1 The Institute for Supply Management (ISM) manufacturing index fell to an 18 -month low of 57.1 in March from 58.6 in February due to surging energy and commodities prices triggered by Russia's invasion of Ukraine. Readings above 50.0 are indicative of expansion in the manufacturing sector. On a month -over -month basis, the Industrial Production index rose 0.9% in March, following an upwardly revised 0.9% increase in February. Capacity utilization rose to 78.3% in March, up from 77.7% in February. Although capacity utilization remains below its longer -run average of 79.6%, it is running above the pre -pandemic level of 76.3%. 9 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 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) Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Total 6.3% 6.7% 2.3% 6.9% �Oc, ✓�'1), SOC, ✓�'V), �0c, ✓�''�. Dov ✓�''�.101Dov ✓x'72 hoc, 16 1> 1> 1�p 1� l9 l9 ,)O Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, fourth quarter GDP grew at an annualized rate of 6.9%, revised slightly downward from the second estimate of 7.0%. Economic growth reaccelerated in the fourth quarter after slowing to a pace of 2.3% growth in the third quarter, bringing overall GDP growth for 2021 to 5.7%. The most significant contributor to fourth quarter growth was inventory build, potentially reflecting some easing in supply chain disruptions. The fourth -quarter's build will make for a tough comparison in the first quarter. The consensus estimate calls for 1.0% GDP growth in the first quarter, 3.0°% growth in the current quarter, and 3.2°% growth for 2022. 10 C11% 35.0% 30.0% 25.0% 7.4% 7.9% 1.4% 1.8% 20.0% 15.0% -0.4% -0.7% 2.1% 5.8% 10.0% 5.0% 0.0% -1.6% -0.2% -1.3% -0.2% -5.0% -10.0% -15.0% 0.8% -0.4% -0.4% -0.3% -20.0% -25.0% 0.0% 0.0% 0.5% -0.2% -30.0% -35.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Total 6.3% 6.7% 2.3% 6.9% �Oc, ✓�'1), SOC, ✓�'V), �0c, ✓�''�. Dov ✓�''�.101Dov ✓x'72 hoc, 16 1> 1> 1�p 1� l9 l9 ,)O Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, fourth quarter GDP grew at an annualized rate of 6.9%, revised slightly downward from the second estimate of 7.0%. Economic growth reaccelerated in the fourth quarter after slowing to a pace of 2.3% growth in the third quarter, bringing overall GDP growth for 2021 to 5.7%. The most significant contributor to fourth quarter growth was inventory build, potentially reflecting some easing in supply chain disruptions. The fourth -quarter's build will make for a tough comparison in the first quarter. The consensus estimate calls for 1.0% GDP growth in the first quarter, 3.0°% growth in the current quarter, and 3.2°% growth for 2022. 10 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 _ 0 E c Federal Reserve 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 Federal Reserve Balance Sheet Assets c0 c1 c1 c1 c1 c1 c1 c1 c1 c1 c1 c� c1 9 O 1 � �' st S 6 � cQ 9 O 1 Source: Federal Reserve 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% } 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% Effective Federal Funds Rate .k Oil 10 11 1� 1S 1Q 1S, 16' 1j4 19 -b -1 Source: Bloomberg As expected the Federal Open Market Committee (FOMC) raised the federal funds rate by 0.25% at their March meeting to a target range of 0.25% to 0.50%., This was the first increase since 2018, after two years of holding the federal funds rates near zero to insulate the economy from the impacts of the pandemic. The Federal Reserve (Fed) also ended their bond -buying program as expected in March, which grew the balance sheet to about $8.9 trillion. Fed Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot favors six additional rate hikes in 2022, which implies a 25 basis point rate hike at each remaining meeting this year, but the Fed hasn't ruled out incorporating one or more 50 basis point hikes to address inflation. The FOMC's Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE) inflation this year at 4.3% and a lower growth rate of 2.8% real GDP. 11 C,,J DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Bond Yields US Treasury Note Yields 2.5 .... 2 -Year 2.0% - - - 5 -Year 10 -Year 1.5% I ; 6 I a, ♦ - .0 . 1.0% 0.5 • • ■ ■ • . • ■ . ■ ■ ■ . ■ . ■ . ■ ■ • • . . ■ 0.0% ✓ S CO ✓ S 0 47 dr"e 4,y�0 Pp )0 echo �d~�1 4Pp�1 ee�1 dr�� Source: Bloomberg 2.5% 2.0% US Treasury Yield Curve Source: Bloomberg At the end of March, the 2 -year Treasury yield was 217 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 declined to zero at March month-end compared to the average historical spread (since 2003) of about 130 basis points. While the flat yield curve bears watching over the longer run, the spread between 3 -month and 10 -year treasuries is still steep at about 185 basis points, which indicates likely economic growth in the coming year. 12 C,'% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 N ilk Section 2 1 Account Profile 13 C� DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Objectives Investment Objectives As of March 31, 2022 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. 14 CJli DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Compliance As of March 31, 2022 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 includingthose issued byorfullyguaranteed as to principal and interest byfederal agencies or U.S. govern ment-spons ored Complies enterprises "AA" rated or better by a NRSRO; 5% max; 5% max per issuer; USD denominated senior unsecured unsubordinated obligations; Supranational Obligations Issued or unconditionally guaranteed byoneof the three supranational bankinggroups: IBRD, IFC, and 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 by the local agency (City of Tustin bonds); State of California and any local agency Municipal Securities (CA, Local Agency) within theStateof California, including bonds payable solely out of therevenues froma revenue-producing propertyowned, Complies control led, 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 Complies institution; If the credit rating of a security is downgraded belowthe minimum rating level for a new investment of that security, the Treasurer shall evaluate the downgrade on a case-by-case basis to determine if the security should be held or sold. Mortgage Pass -Through Securities "AA" rated or better by a NRSRO; 20% max; 10% max per issuer Complies Any amount above FDIC insured limit must be issued by institutions with "A-1" short-term debt rating or higher by a NRSRO; or "A" Negotiable Certificates of Deposit long-term rating category or higher by a NRSRO; 30% max; 5% max per issuer; Certificates of deposit issued by a nationally or state- Complies (NCD) chartered bank, or a federal association, a 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; FDIC insured; 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 Certificates of Deposit must be collateralized pursuantto Government Code Complies "A" rating or better by Moody's or equivalent rating by a NRSRO; 30% max; 5% max per issuer; 180 days maturity; Short-term debt Bankers' Acceptances instruments issued by a company that is guaranteed by a commercial bank Complies 15 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Compliance As of March 31, 2022 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 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 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 (A) or (B): (A) 1. Organized and operating in the U.S. Commercial Paper Complies as a general corporation; 2. Has total assets >$500 million; 3. Has debt other than commercial paper, if any, that is "A" rating category or higher by a NRSRO; (B) 1. Organized within the U.S. as a special purpose corporation, trust, or LLC; 2. Has program wide credit enhancements including, but not limited to, overcollateralization, letters of creditor surety bond; and 3. "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 years Money Market Mutual Funds experience investing assets of at least $500 million; Must invest solely in investments, which the City itself could legally purchase; Complies 20% max; 10% max per Money Market Mutual Fund Max amount limited to the amount as specified by LAIF; Principal amount withdrawal of $10 million or > needs 24-hour notice, and Local Agency Investment Fund (LAI F) Complies less than $10 million may be withdrawn the same day; Not used by investment 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 pursuantto Section 6509.7 that Pools invests in securities and obligations authorized in subdivisions a to Complies g () (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 wi I I not be purchased unti I 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 Q& DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Portfolio Characteristics As of March 31, 2022 City of Tustin Consolidated Account Average Maturity (yrs) 2.62 0.80 0.46 Average Modified Duration 2.53 0.77 0.43 Average Purchase Yield n/a 0.96% 0.50% Average Market Yield 2.30% 1.07% 0.32% Average Quality" AAA AA/Aa2 AA+/Aa3 Total Market Value 194,561,191 204,464,182 *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. 17 C,1` DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Sector Distribution Negotiable CD 2.2% Municipal Bonds 1.0% Money Market Fund 0.6% Local Gov Investment Pool 3.6% March 31, 2022 US Treasury Agency 23.1% 5.2% $10,190,878.13 M $6,998,700.08 $44,971,621.50 LAI F 43.4% City of Tustin Consolidated Account Cash 5.1% $9,869,613.02 - $30,505,715.21 $1,258,364.45 $2,023,785.42 Corporate 15.7% $84,504,948.22 $4,237,565.04 December 31, 2021 Negotiable CD US Treasury Municipal Bonds 2.3% 1.9% 1.5% Money Market Fund 0.1% Local Gov Investment Pool 27.3% As of March 31, 2022 Agency 4.4% LAIF 41.3% $9,046,129.67 $18,660,678.64 $24,565,620.34 $55,721,683.23 $293,043.72 - $3,047,656.67 $3,905,799.01 Cash 9.1% Corporate 12.0% $84,439,776.97 $4,783,793.44 18 C`1% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Portfolio Allocation City of Tustin Consolidated Account LAIF _ US Treasury ® 1.9% Corporate Agency 5.2% - 4.4% Cash 5.1% 9.1% Local Gov 3.6% Investment Pool Negotiable CD 2.2% _ 2.3% Municipal Bonds 1.0% M 1.5% Money Market 0.7% Fund 0.1% 12.0% 15.7% 23.1% 27.3% As of March 31, 2022 43.4% 41.3% ■ 03/31/22 ■ 12/31/21 19 C`1% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Issuers City of Tustin Consolidated Account - Account #10795 As of March 31, 2022 Local Agency Investment Fund LAIF 43.43% Government of United States US Treasury 23.11% Bank Cash Account Cash 5.07% CAMP Local Gov Investment Pool 3.60% Federal Home Loan Bank Agency 2.72% Toyota Motor Corp Corporate 1.81% Federal Home Loan Mortgage Corp Agency 1.55% Apple Inc Corporate 1.04% JP Morgan Chase & Co Corporate 1.00% Federal National Mortgage Association Agency 0.97% US Bancorp Corporate 0.69% First American Govt Oblig Fund Money Market Fund 0.65% Qualcomm Inc Corporate 0.53% Chubb Corporation Corporate 0.53% State of California Municipal Bonds 0.52% Mass Mutual Insurance Corporate 0.52% Visa Inc Corporate 0.52% Home Depot Corporate 0.51% Target Corp Corporate 0.51% National Rural Utilities Corporate 0.50% Bank of New York Corporate 0.50% Bank of Montreal Chicago Corporate 0.50% State Street Bank Corporate 0.50% Deere & Company Corporate 0.50% Bank of America Corp Corporate 0.50% New York Life Global Funding Corporate 0.50% Pfizer Inc. Corporate 0.49% Metlife Inc Corporate 0.49% Amazon.com Inc Corporate 0.48% Charles Schwab Corp/The Corporate 0.48% United Health Group Inc Corporate 0.48% Caterpillar Inc Corporate 0.48% Toronto Dominion Holdings Corporate 0.47% Royal Bank of Canada Corporate 0.47% Wal-Mart Stores Corporate 0.43% Santa Rosa Regional Resources Municipal Bonds 0.26% MasterCard Inc Corporate 0.25% California Edl Facs Auth Rev Municipal Bonds 0.13% 20 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Issuers City of Tustin Consolidated Account — Account #10795 As of March 31, 2022 UBS Corp Negotiable CD 0.13% Sallie Mae Bank Negotiable CD 0.13% Alliance Credit Union MO Negotiable CD 0.13% First Bank of Highland Negotiable CD 0.13% Murrieta Redevelopment Agency Municipal Bonds 0.13% Signature Bank Chicago IL Negotiable CD 0.13% Mountain America FCU Negotiable CD 0.13% Allegiance Bank Negotiable CD 0.13% Delaware State Police FCU Negotiable CD 0.13% Traverse City State Bank Negotiable CD 0.13% First Premier Bank Negotiable CD 0.13% FNB Bank Inc Negotiable CD 0.13% Barclays Bank Negotiable CD 0.13% First Internet Bank of Indiana Negotiable CD 0.13% DNB First NA Negotiable CD 0.13% First Jackson Bank Inc Negotiable CD 0.13% Celtic Bank Negotiable CD 0.13% Goldman Sachs Inc. Negotiable CD 0.12% TOTAL 100.00% 21 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Maturity Distribution As of March 31, 2022 $120,000.000. DO $100,000.000.00 $80.000,000.00 $60,000.000.00 $40,000,000.00 $20.000,000.01D $0.00 City of Tustin Consolidated Account 0-.25 .25-.5 .5-1 1=2 2-3 3-4 4-5 5+ Maturity ;Yrs 22 C1'% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Quality Distribution 60.0% 50.0% 40.0% 30.0% 20.0% 10.0 0.0% N - AAA City of Tustin Consolidated Account March 31, 2022 vs. December 31, 2021 AA ■ 03/31/22 <A _ 12/31/21 NR 03/31/22 4.2% 33.2% 11.8% 0.0% 50.7% 12/31/21 27.4% 11.1% 8.3% 0.0% 53.3% Source: S&P Ratings As of March 31, 2022 23 c1,% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 I Duration Distribution 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% City of Tustin Consolidated Account March 31, 2022 vs. December 31, 2021 01�- 0-0.25 0.25-0.50 0.50-1 ■ March 31, 2022 1-2 0- N N �. 2-3 3-4 4-5 -! December 31, 2021 5+ As of March 31, 2022 03/31/22 57.4% 6.7% 13.3% 4.1% 9.2% 8.3% 1.0% 0.0% 12/31/21 81.0% 3.9% 4.3% 0.8% 0.4% 5.1% 4.4% 0.0% 24 C`1% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Investment Performance City of Tustin Consolidated Account Total Rate of Return Annualized Since Inception November 30, 2020 0.00% -0.50% -1.00% -1.50% 3 years -2.00% -2.50% Since Inception -3.00% ICE BofA 1-5 Yr US Treasury & Agency Index -3.50% 1-3 Yr US Treasury & Agency Index As of March 31, 2022 -4.00% 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 -0.53% -0.47% N/A N/A N/A N/A -0.24% ICE BofA 1-5 Yr US Treasury & Agency Index -3.16% -3.71% N/A N/A N/A N/A -3.12% ICE BofA 1-3 Yr US Treasury & Agency Index -2.34% -2.84% N/A N/A N/A N/A -2.13% 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 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 N ilk Section 3 1 Portfolio Holdings 26 C� DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report As of March 31, 2022 City of Tustin Consolidated Account - Account #10795 Agency 3130AB3U8 FHLB Callable Note 1X 4/26/2019 4,000,000.00 04/26/2017 4,000,000.00 100.10 4,004,152.00 2.08% Aaa / AA+ 0.07 2.100% Due 04/26/2022 2.10% 4,000,000.00 0.60% 36,166.67 4,152.00 NR 0.07 3134GBMB5 FHLMC Callable Note 1X 5/25/2018 1,000,000.00 05/25/2017 1,000,000.00 100.18 1,001,763.00 0.52% Aaa / AA+ 0.15 2.050% Due 05/25/2022 2.05% 1,000,000.00 0.87% 7,175.00 1,763.00 AAA 0.15 3134GBWQ1 FHLMC Callable Note 1X 7/27/2018 2,000,000.00 07/27/2017 1,996,000.00 100.38 2,007,672.00 1.04% Aaa / AA+ 0.32 90BOFA$00 2.000% Due 07/27/2022 9,869,613.02 2.04% 1,999,743.70 0.80% 7,111.11 7,928.30 AAA 0.32 3130ARHG9 FHLB Note 1,250,000.00 03/24/2022 1,248,575.00 99.74 1,246,778.75 0.64% Aaa /AA+ 1.92 2.125% Due 02/28/2024 2.19% 1,248,589.15 2.26% 442.71 (1,810.40) NR 1.86 3135G04Z3 FNMA Note 2,000,000.00 04/12/2021 1,982,980.00 93.84 1,876,728.00 0.97% Aaa / AA+ 3.22 0.500% Due 06/17/2025 0.71% 1,986,917.13 2.51% 2,888.89 (110,189.13) AAA 3.14 Corporate John Deere Capital Corp Note 1,000,000.00 02/04/2022 10,227,555.00 96.36 10,137,093.75 5.24% Aaa / AA+ 0.93 TOTAL Agency Apple Inc Callable Note Cont 4/11/2022 10,250,000.00 1.82% 10,235,249.98 1.22% 53,784.38 (98,156.23) Aaa 0.91 Cash Visa Inc Callable Note Cont 8/15/2022 1,000,000.00 10/03/2017 1,002,301.43 100.31 1,003,071.00 0.52% Aaa / AA- 0.46 90BOFA$00 Cash BOA Cash Acct 9,869,613.02 Various 9,869,613.02 1.00 - 9,869,613.02 5.07% NR/NR 0.00 89236TFNO Toyota Motor Credit Corp Note 1,000,000.00 0.25% 9,869,613.02 0.25% 0.00 0.00 NR 0.00 3.450% Due 09/20/2023 3.00% 9,869,613.02 2.48% 9,869,613.02 5.07% NR/NR 0.00 TOTAL Cash Metlife Note 9,869,613.02 0.25% 9,869,613.02 0.25% 0.00 0.00 NR 0.00 0.700% Due 09/27/2024 1.49% 980,677.57 3.03% 77.78 (36,111.57) AA- 2.43 Corporate John Deere Capital Corp Note 1,000,000.00 02/04/2022 985,080.00 96.36 963,569.00 0.50% A2 / A 2.78 037833CQ1 Apple Inc Callable Note Cont 4/11/2022 2,000,000.00 06/26/2017 2,015,402.54 100.06 2,001,160.00 1.04% Aaa / AA+ 0.11 57629WCG3 2.300% Due 05/11/2022 1,000,000.00 2.13% 2,000,346.12 0.19% 17,888.89 813.88 NR 0.03 89236TEC5 Toyota Motor Credit Corp Note 2,500,000.00 11/01/2017 2,482,750.00 100.25 2,506,185.00 1.29% Al/A+ 0.44 2.150% Due 09/08/2022 2.30% 2,498,442.44 1.58% 3,434.03 7,742.56 A+ 0.43 92826CAG7 Visa Inc Callable Note Cont 8/15/2022 1,000,000.00 10/03/2017 1,002,301.43 100.31 1,003,071.00 0.52% Aaa / AA- 0.46 2.150% Due 09/15/2022 2.10% 1,000,212.58 1.31% 955.56 2,858.42 NR 0.37 89236TFNO Toyota Motor Credit Corp Note 1,000,000.00 02/28/2019 1,019,000.00 101.38 1,013,839.00 0.52% Al/A+ 1.47 3.450% Due 09/20/2023 3.00% 1,006,127.93 2.48% 1,054.17 7,711.07 A+ 1.43 59217GEPO Metlife Note 1,000,000.00 01/18/2022 979,170.00 94.46 944,566.00 0.49% Aa3 / AA- 2.50 0.700% Due 09/27/2024 1.49% 980,677.57 3.03% 77.78 (36,111.57) AA- 2.43 24422EVY2 John Deere Capital Corp Note 1,000,000.00 02/04/2022 985,080.00 96.36 963,569.00 0.50% A2 / A 2.78 1.250% Due 01/10/2025 1.78% 985,807.12 2.62% 2,812.50 (22,238.12) A 2.69 57629WCG3 Mass Mutual Global funding Note 1,000,000.00 03/23/2022 1,004,360.00 100.10 1,001,030.00 0.52% Aa3 /AA+ 2.79 2.950% Due 01/11/2025 2.79% 1,004,330.17 2.91% 6,555.56 (3,300.17) AA+ 2.63 27 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2022 64952WEK5 New York Life Global Note 1,000,000.00 01/18/2022 996,780.00 96.20 962,033.00 0.50% Aaa / AA+ 2.79 1,024,507.72 1.450% Due 01/14/2025 2,686.67 1.56% 996,989.74 2.88% 3,101.39 (34,956.74) AAA 2.69 63743HFC1 National Rural Utilities Note 1,000,000.00 03/23/2022 972,740.00 96.98 969,836.00 0.50% A2/A- 2.86 AA- 1.875% Due 02/07/2025 00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026 2.87% 972,921.73 2.99% 2,812.50 (3,085.73) A 2.74 57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025 500,000.00 11/01/2021 515,365.00 98.53 492,641.50 0.25% Al/A+ 2.93 2.000% Due 03/03/2025 1.06% 513,482.28 2.53% 777.78 (20,840.78) NR 2.81 87612EBL9 Target Corp Callable Note Cont 4/15/25 1,000,000.00 02/04/2022 1,010,340.00 98.61 986,078.00 0.51% A2 / A 3.04 2.250% Due 04/15/2025 1.91% 1,009,877.28 2.73% 10,375.00 (23,799.28) A 2.88 437076CM2 Home Depot Callable Note Cont 3/15/2025 1,000,000.00 03/28/2022 995,620.00 99.92 999,209.00 0.51% A2 / A 3.04 2.700% Due 04/15/2025 2.85% 995,627.88 2.73% 225.00 3,581.12 A 2.82 06406RAN7 Bank of NY Mellon Corp Callable Note Cont 3/24/2025 1,000,000.00 02/04/2022 989,120.00 96.51 965,051.00 0.50% Al / A 3.07 1.600% Due 04/24/2025 1.95% 989,603.14 2.80% 6,977.78 (24,552.14) AA- 2.94 06367WB85 Bank of Montreal Note 1,000,000.00 08/17/2021 1,034,530.00 96.21 962,118.00 0.50% A2/A- 3.09 1.850% Due 05/01/2025 0.90% 1,028,779.26 3.15% 7,708.33 (66,661.26) AA- 2.94 91159HHZ6 US Bancorp Callable Note Cont 4/11/2025 1,400,000.00 12/23/2021 1,406,818.00 95.70 1,339,800.00 0.69% A2/A+ 3.12 1.450% Due 05/12/2025 1.30% 1,406,297.37 2.90% 7,838.06 (66,497.37) A+ 2.99 747525AFO Qualcomm Inc Callable Note Cont 2/20/2025 1,000,000.00 03/23/2022 1,018,960.00 101.99 1,019,877.00 0.53% A2 / A 3.14 3.450% Due 05/20/2025 2.82% 1,018,844.79 2.78% 12,554.17 1,032.21 NR 2.92 717081EX7 Pfizer Inc. Callable Note Cont 4/28/2025 1,000,000.00 03/23/2022 945,010.00 94.57 945,662.00 0.49% A2/A+ 3.16 1,024,507.72 0.800% Due 05/28/2025 2,686.67 2.62% 945,341.84 2.60% 2,733.33 320.16 A 3.08 89114QCK2 Toronto Dominion Bank Note 1,000,000.00 08/17/2021 993,000.00 92.30 923,029.00 0.47% Al/A 3.45 AA- 0.750% Due 09/11/2025 00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026 0.93% 994,061.32 3.12% 416.67 (71,032.32) AA- 3.35 14913R2H9 Caterpillar Financial Service Note 1,000,000.00 04/21/2021 991,780.00 93.05 930,470.00 0.48% A2 / A 3.62 0.800% Due 11/13/2025 0.98% 993,473.37 2.84% 3,066.67 (63,003.37) A 3.51 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1,000,000.00 Various 978,258.70 96.44 964,358.00 0.50% Al / A 3.86 1.746% Due 02/06/2026 2.41% 978,366.33 2.80% 2,619.01 (14,008.33) AA- 3.67 06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025 1,000,000.00 04/20/2021 1,030,470.00 96.36 963,592.00 0.50% A2 / A- 3.88 2.015% Due 02/13/2026 1.28% 1,024,507.72 2.92% 2,686.67 (60,915.72) AA- 3.67 46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025 2,000,000.00 Various 2,072,110.00 96.61 1,932,218.00 1.00% A2/A- 4.06 2.083% Due 04/22/2026 1.31% 2,062,032.31 2.99% 18,399.84 (129,814.31) AA- 3.82 00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026 1,000,000.00 07/23/2021 1,102,780.00 101.49 1,014,856.00 0.53% A3 / A 4.09 3.350% Due 05/03/2026 1.13% 1,088,139.31 2.94% 13,772.22 (73,283.31) A 3.54 28 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2022 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026 1,000,000.00 05/12/2021 995,200.00 93.86 938,572.00 0.48% Al / AA 4.12 1.000% Due 05/12/2026 1.10% 996,047.37 2.58% 3,861.11 (57,475.37) AA- 3.97 808513BR5 Charles Schwab Corp Callable Note Cont 4/13/2026 1,000,000.00 07/23/2021 1,007,990.00 93.24 932,385.00 0.48% A2 / A 4.12 1.150% Due 05/13/2026 0.98% 1,006,858.35 2.90% 4,408.33 (74,473.35) A 3.95 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1,000,000.00 07/28/2021 1,007,110.00 93.05 930,451.00 0.48% A3/A+ 4.13 1.150% Due 05/15/2026 1.00% 1,006,114.60 2.95% 4,344.44 (75,663.60) A 3.96 78016EZT7 Royal Bank of Canada Note 1,000,000.00 07/28/2021 999,090.00 91.79 917,890.00 0.47% Al / A 4.29 1.150% Due 07/14/2026 1.17% 999,213.18 3.22% 2,459.72 (81,323.18) AA- 4.11 931142ERO Wal-Mart Stores Callable Note Cont 08/17/2026 900,000.00 09/22/2021 902,277.00 93.10 837,884.70 0.43% Aa2 / AA 4.47 1.050% Due 09/17/2026 1.00% 902,040.41 2.70% 367.50 (64,155.71) AA 4.31 31,453,412.67 30,361,431.20 15.68% Al / A+ 2.82 TOTAL Corporate 31,300,000.00 1.77% 31,404,563.51 2.52% 144,284.01 (1,043,132.31) A+ 2.68 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 84,444,411.96 Various 84,444,411.96 1.00 84,444,411.96 43.43% NR/NR 0.00 0.42% 84,444,411.96 0.42% 60,536.26 0.00 NR 0.00 84,444,411.96 84,444,411.96 43.43% NR/NR 0.00 TOTAL LAIF 84,444,411.96 0.42% 84,444,411.96 0.42% 60,536.26 0.00 NR 0.00 Local Gov Investment Pool 90CAMP$00 California Asset Mgmt Program CAMP 6,998,700.08 Various 6,998,700.08 1.00 6,998,700.08 3.60% NR / AAA 0.00 0.07% 6,998,700.08 0.07% 0.00 0.00 NR 0.00 6,998,700.08 6,998,700.08 3.60% NR / AAA 0.00 TOTAL Local Gov Investment Pool 6,998,700.08 0.07% 6,998,700.08 0.07% 0.00 0.00 NR 0.00 Money Market Fund 31846V203 First American Govt Obligation Fund Class Y 93,538.86 Various 93,538.86 1.00 93,538.86 0.05% Aaa / AAA 0.00 0.01% 93,538.86 0.01% 0.00 0.00 AAA 0.00 31846V203 First American Govt Obligation Fund Class Y 1,164,825.59 Various 1,164,825.59 1.00 1,164,825.59 0.60% Aaa / AAA 0.00 0.01% 1,164,825.59 0.01% 0.00 0.00 AAA 0.00 1,258,364.45 1,258,364.45 0.65% Aaa / AAA 0.00 TOTAL Money Market Fund 1,258,364.45 0.01% 1,258,364.45 0.01% 0.00 0.00 Aaa 0.00 29 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report Municipal As of March 31, 2022 City of Tustin Consolidated Account - Account #10795 13063DADO California State TE -GO 1,000,000.00 04/27/2017 1,010,000.00 100.00 1,000,000.00 0.52% Aa2/AA- 0.00 2.367% Due 04/01/2022 2.15% 1,000,000.00 2.37% 11,835.00 0.00 AA 0.00 802629AX3 Santa Rosa Regional Resources STE-REV 500,000.00 10/03/2017 504,500.00 100.50 502,475.00 0.26% NR / AA+ 0.34 2.400% Due 08/01/2022 2.20% 500,311.40 0.91% 2,000.00 2,163.60 AA 0.33 62719PAY2 Murrieta Redevelopment Agency STE-TA 2.500% Due 08/01/2022 250,000.00 10/18/2017 2.56% 249,345.00 249,954.28 100.39 1.31% 250,985.00 1,041.67 0.13% 1,030.72 NR / A+ NR 0.34 0.33 13077DFD9 California State University TE -REV 250,000.00 08/02/2018 250,000.00 100.91 252,267.50 0.13% Aa2 / AA- 0.59 3.054% Due 11/01/2022 3.05% 250,000.00 1.49% 3,181.25 2,267.50 NR 0.57 238.58 NR 2,013,845.00 32063KAS1 2,005,727.50 1.04% Aa2 / AA- 0.20 TOTAL Municipal Bonds 2,000,000.00 2.33% 2,000,265.68 1.76% 18,057.92 5,461.82 AA 0.20 Negotiable CD Traverse City State Bank Negotiable CD 248,000.00 06/28/2017 248,000.00 100.38 248,947.86 0.13% -71 15118RMF1 Celtic Bank Negotiable CD 248,000.00 04/21/2017 248,000.00 100.10 248,238.58 0.13% NR/NR 0.06 NR 2.100% Due 04/21/2022 2.10% 248,000.00 0.43% 156.95 238.58 NR 0.06 32063KAS1 First Jackson Bank Inc Negotiable CD 248,000.00 11/08/2017 248,000.00 100.17 248,429.78 0.13% NR/NR 0.11 1,176.13 2.050% Due 05/09/2022 2.06% 248,000.00 0.43% 334.29 429.78 NR 0.11 25590AAH3 DNB First NA Negotiable CD 248,000.00 06/23/2017 248,000.00 100.36 248,885.61 0.13% NR/NR 0.23 248,000.00 2.000% Due 06/23/2022 2.00% 248,000.00 0.45% 122.30 885.61 NR 0.23 894333FF5 Traverse City State Bank Negotiable CD 248,000.00 06/28/2017 248,000.00 100.38 248,947.86 0.13% NR/NR 0.24 2.000% Due 06/28/2022 2.00% 248,000.00 0.43% 1,277.37 947.86 NR 0.24 06740KKD8 Barclays Bank Delaware Negotiable CD 247,000.00 07/12/2017 247,000.00 100.48 248,191.53 0.13% NR/NR 0.28 2.200% Due 07/12/2022 2.20% 247,000.00 0.49% 1,176.13 1,191.53 NR 0.28 32056GCQ1 First Internet Bank of IN Negotiable CD 248,000.00 07/14/2017 248,000.00 100.44 249,096.16 0.13% NR/NR 0.29 2.050% Due 07/14/2022 2.05% 248,000.00 0.51% 250.72 1,096.16 NR 0.29 330459BU1 FNB Bank Inc Negotiable CD 248,000.00 08/18/2017 248,000.00 100.51 249,254.88 0.13% NR/NR 0.38 2.000% Due 08/18/2022 2.00% 248,000.00 0.68% 190.25 1,254.88 NR 0.38 33610RQY2 First Premier Bank Negotiable CD 248,000.00 08/21/2017 248,000.00 100.54 249,338.21 0.13% NR/NR 0.39 2.050% Due 08/22/2022 2.05% 248,000.00 0.68% 543.22 1,338.21 NR 0.39 01859BAA3 Alliance Credit Union MO Negotiable CD 248,000.00 10/13/2017 248,000.00 100.73 249,818.09 0.13% NR/NR 0.54 2.250% Due 10/13/2022 2.25% 248,000.00 0.88% 2,598.90 1,818.09 NR 0.53 01748DAY2 Allegiance Bank Negotiable CD 248,000.00 11/03/2017 248,000.00 100.77 249,906.13 0.13% NR/NR 0.59 2.200% Due 11/03/2022 2.20% 248,000.00 0.90% 433.49 1,906.13 NR 0.59 319141JF5 First Bank of Highland Negotiable CD 248,000.00 11/08/2017 248,000.00 100.78 249,938.62 0.13% NR/NR 0.61 2.200% Due 11/08/2022 2.20% 248,000.00 0.91% 2,152.50 1,938.62 NR 0.60 30 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2022 62384RACO MOUNTAIN AMERICA FD CRIED Negotiable CD 248,000.00 11/08/2017 248,000.00 100.84 250,092.87 0.13% NR/NR 0.61 2.300% Due 11/08/2022 2.30% 248,000.00 0.91% 375.06 2,092.87 NR 0.60 82669VBY6 Signature Bank Chicago IL Negotiable CD 248,000.00 11/08/2017 248,000.00 100.75 249,863.97 0.13% NR/NR 0.61 2.150% Due 11/08/2022 2.15% 248,000.00 0.91% 2,103.58 1,863.97 NR 0.60 795450M93 Sallie Mae Bank Negotiable CD 245,000.00 04/18/2018 245,000.00 101.72 249,223.56 0.13% NR/NR 1.05 3.000% Due 04/18/2023 3.00% 245,000.00 1.34% 3,322.60 4,223.56 NR 1.02 90348JCW8 UBS Bank USA Negotiable CD 248,000.00 06/13/2018 248,000.00 102.12 253,267.77 0.13% NR/NR 1.20 3.250% Due 06/13/2023 3.25% 248,000.00 1.47% 419.56 5,267.77 NR 1.18 246399AB5 Delaware State Police FCU Negotiable CD 246,000.00 03/29/2019 246,000.00 101.72 250,225.79 0.13% NR/NR 2.00 3.000% Due 03/29/2024 3.00% 246,000.00 2.12% 60.66 4,225.79 NR 1.93 38149MYS6 Goldman Sachs Bank USA Negotiable CD 245,000.00 08/17/2021 243,775.00 93.50 229,081.37 0.12% NR/NR 4.41 1.050% Due 08/25/2026 1.15% 243,921.92 2.62% 246.68 (14,840.55) NR 4.25 4,205,775.00 4,221,800.78 2.18% NR / NR 0.78 TOTAL Negotiable CD 4,207,000.00 2.23% 4,205,921.92 0.94% 15,764.26 15,878.86 NR 0.77 US Treasury - 912828L57 US Treasury Note 5,750,000.00 03/23/2022 5,774,482.42 100.35 5,770,217.00 2.97% Aaa / AA+ 0.50 1.750% Due 09/30/2022 0.93% 5,773,451.58 1.04% 274.93 (3,234.58) AAA 0.50 9128283C2 US Treasury Note 6,000,000.00 03/23/2022 6,033,281.25 100.46 6,027,654.00 3.12% Aaa / AA+ 0.59 2.000% Due 10/31/2022 1.07% 6,032,076.50 1.20% 50,386.74 (4,422.50) AAA 0.57 912828TY6 US Treasury Note 5,000,000.00 03/23/2022 5,014,843.75 100.23 5,011,330.00 2.59% Aaa / AA+ 0.63 1.625% Due 11/15/2022 1.16% 5,014,340.57 1.26% 30,749.31 (3,010.57) AAA 0.62 91282CAX9 US Treasury Note 5,000,000.00 03/23/2022 4,963,281.25 99.23 4,961,330.00 2.55% Aaa / AA+ 0.67 0.125% Due 11/30/2022 1.20% 4,964,451.57 1.29% 2,094.78 (3,121.57) AAA 0.66 912828YW4 US Treasury Note 6,000,000.00 03/23/2022 6,017,343.75 100.20 6,011,952.00 3.10% Aaa / AA+ 0.71 1.625% Due 12/15/2022 1.22% 6,016,822.13 1.34% 28,660.71 (4,870.13) AAA 0.70 91282CBG5 US Treasury Note 1,000,000.00 03/23/2022 989,101.56 98.83 988,281.00 0.51% Aaa /AA+ 0.84 0.125% Due 01/31/2023 1.41% 989,380.11 1.54% 207.18 (1,099.11) AAA 0.83 91282CBNO US Treasury Note 1,250,000.00 03/23/2022 1,234,375.00 98.67 1,233,398.75 0.63% Aaa /AA+ 0.92 0.125% Due 02/28/2023 1.48% 1,234,741.57 1.59% 135.87 (1,342.82) AAA 0.91 912828R69 US Treasury Note 1,250,000.00 03/23/2022 1,248,828.13 99.71 1,246,386.25 0.64% Aaa / AA+ 1.17 1.625% Due 05/31/2023 1.70% 1,248,849.78 1.88% 6,808.04 (2,463.53) AAA 1.14 912828592 US Treasury Note 1,250,000.00 03/23/2022 1,239,697.27 99.00 1,237,548.75 0.64% Aaa / AA+ 1.33 1.250% Due 07/31/2023 1.87% 1,239,864.12 2.01% 2,589.78 (2,315.37) AAA 1.31 912828U57 US Treasury Note 1,250,000.00 03/23/2022 1,251,416.02 99.92 1,248,975.00 0.65% Aaa /AA+ 1.67 2.125% Due 11/30/2023 2.06% 1,251,397.63 2.17% 8,902.82 (2,422.63) AAA 1.62 31 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Holdings Report 912828V80 US Treasury Note 2.250% Due 01/31/2024 City of Tustin Consolidated Account - Account #10795 1,250,000.00 03/23/2022 1,252,832.03 99.96 1,249,462.50 2.12% 1,252,798.61 2.27% 4,661.60 As of March 31, 2022 0.64% Aaa / AA+ 1.84 (3,336.11) AAA 1.78 912828X70 US Treasury Note 1,250,000.00 03/23/2022 1,245,019.53 99.31 1,241,357.50 0.64% Aaa / AA+ 2.08 1,223,702.33 2.000% Due 04/30/2024 6,284.34 2.19% 1,245,071.41 2.34% 10,497.24 (3,713.91) AAA 2.01 91282CCL3 US Treasury Note 1,250,000.00 03/23/2022 1,197,802.73 95.52 1,193,993.75 0.61% Aaa /AA+ 2.29 AAA 0.375% Due 07/15/2024 2.24% 1,198,297.49 2.39% 984.12 (4,303.74) AAA 2.26 9128282U3 US Treasury Note 1,250,000.00 03/23/2022 1,238,085.94 98.68 1,233,496.25 0.64% Aaa / AA+ 2.42 1.875% Due 08/31/2024 2.28% 1,238,192.91 2.44% 2,038.04 (4,696.66) AAA 2.34 912828YM6 US Treasury Note 1,250,000.00 03/23/2022 1,224,902.34 97.64 1,220,507.50 0.63% Aaa / AA+ 2.59 1.500% Due 10/31/2024 2.30% 1,225,113.24 2.45% 7,872.93 (4,605.74) AAA 2.50 912828YV6 US Treasury Note 1,250,000.00 03/23/2022 1,223,486.33 97.50 1,218,798.75 0.63% Aaa / AA+ 2.67 1.500% Due 11/30/2024 2.32% 1,223,702.33 2.47% 6,284.34 (4,903.58) AAA 2.58 91282CBH3 US Treasury Note 2,000,000.00 04/27/2021 1,957,500.00 92.26 1,845,234.00 0.95% Aaa /AA+ 3.84 0.375% Due 01/31/2026 0.83% 1,965,760.49 2.50% 1,243.09 (120,526.49) AAA 3.76 91282CBT7 US Treasury Note 2,000,000.00 04/27/2021 1,989,531.25 93.36 1,867,266.00 0.96% Aaa / AA+ 4.00 0.750% Due 03/31/2026 0.86% 1,991,499.24 2.50% 40.98 (124,233.24) AAA 3.90 45,095,810.55 44,807,189.00 23.11% Aaa / AA+ 1.25 TOTAL US Treasury 45,250,000.00 1.35% 45,105,811.28 1.61% 164,432.50 (298,622.28) Aaa 1.22 195,567,487.73 194,104,331.74 100.00% Aa2 / AA 0.80 TOTAL PORTFOLIO 195,578,089.51 0.96% 195,522,901.88 1.07% 456,859.33 (1,418,570.14) AA+ 0.77 TOTAL MARKET VALUE PLUS ACCRUALS 194,561,191.07 32 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 N ilk Section 4 1 Transactions 33 C� DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Transaction Ledger December 31, 2021 through March 31, 2022 ACQUISITIONS 0.7% Due: 09/27/2024 1,000,000.00 Purchase 01/20/2022 59217GEPO Purchase 01/20/2022 64952WEK5 Purchase 01/31/2022 90CAMP$00 Purchase 01/31/2022 90LAIF$00 Purchase 02/07/2022 857477BR3 Purchase 02/08/2022 06406RAN7 Purchase 02/08/2022 24422EVY2 Purchase 02/08/2022 87612EBL9 Purchase 02/28/2022 90CAMP$00 Purchase 03/24/2022 9128282U3 Purchase 03/24/2022 9128283C2 Purchase 03/24/2022 9128281-57 Purchase 03/24/2022 9128281369 Purchase 03/24/2022 912828592 Purchase 03/24/2022 912828TY6 Purchase 03/24/2022 912828U57 City of Tustin Consolidated Account - Account #10795 1,000,000.00 Metlife Note As of March 31, 2022 97.917 0.7% Due: 09/27/2024 1,000,000.00 New York Life Global Note 981,347.78 1.45% Due: 01/14/2025 2,419.44 California Asset Mgmt Program CAMP 48,586.53 Local Agency Investment Fund State Pool 265,000.00 State Street Bank Callable Note Cont 2/6/2025 1.000 1.746% Due: 02/06/2026 1,000,000.00 Bank of NY Mellon Corp Callable Note Cont 2,419.44 3/24/2025 1.000 1.6% Due: 04/24/2025 1,000,000.00 John Deere Capital Corp Note 48,586.53 1.25% Due: 01/10/2025 1,000,000.00 Target Corp Callable Note Cont 4/15/25 265,000.00 2.25% Due: 04/15/2025 2,637.61 California Asset Mgmt Program CAMP 1,250,000.00 US Treasury Note 989,120.00 1.875% Due: 08/31/2024 6,000,000.00 US Treasury Note 98.508 2% Due: 10/31/2022 5,750,000.00 US Treasury Note 986,052.22 1.75% Due: 09/30/2022 1,250,000.00 US Treasury Note 1,010,340.00 1.625% Due: 05/31/2023 1,250,000.00 US Treasury Note 1.000 1.25% Due: 07/31/2023 5,000,000.00 US Treasury Note 2,637.61 1.625% Due: 11/15/2022 1,250,000.00 US Treasury Note 1,238,085.94 2.125% Due: 11/30/2023 As of March 31, 2022 97.917 1.49% 979,170.00 2,177.78 981,347.78 0.00 99.678 1.56% 996,780.00 241.67 997,021.67 0.00 1.000 0.05% 2,419.44 0.00 2,419.44 0.00 1.000 0.25% 48,586.53 0.00 48,586.53 0.00 100.000 1.75% 265,000.00 0.00 265,000.00 0.00 98.912 1.95% 989,120.00 4,622.22 993,742.22 0.00 98.508 1.78% 985,080.00 972.22 986,052.22 0.00 101.034 1.91% 1,010,340.00 7,062.50 1,017,402.50 0.00 1.000 0.07% 2,637.61 0.00 2,637.61 0.00 99.047 2.28% 1,238,085.94 1,528.53 1,239,614.47 0.00 100.555 1.07% 6,033,281.25 47,734.81 6,081,016.06 0.00 100.426 0.93% 5,774,482.42 48,377.40 5,822,859.82 0.00 99.906 1.70% 1,248,828.13 6,361.61 1,255,189.74 0.00 99.176 1.87% 1,239,697.27 2,244.48 1,241,941.75 0.00 100.297 1.16% 5,014,843.75 28,953.73 5,043,797.48 0.00 100.113 2.06% 1,251,416.02 8,319.02 1,259,735.04 0.00 34 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Transaction Ledger As of March 31, 2022 City of Tustin Consolidated Account - Account #10795 December 31, 2021 through March 31, 2022 Purchase 03/24/2022 912828V80 1,250,000.00 US Treasury Note 100.227 2.12% 1,252,832.03 4,040.06 1,256,872.09 0.00 2.25% Due: 01/31/2024 Purchase 03/24/2022 912828X70 1,250,000.00 US Treasury Note 99.602 2.19% 1,245,019.53 9,944.75 1,254,964.28 0.00 2% Due: 04/30/2024 Purchase 03/24/2022 912828YM6 1,250,000.00 US Treasury Note 97.992 2.30% 1,224,902.34 7,458.56 1,232,360.90 0.00 1.5% Due: 10/31/2024 Purchase 03/24/2022 912828YV6 1,250,000.00 US Treasury Note 97.879 2.32% 1,223,486.33 5,872.25 1,229,358.58 0.00 1.5% Due: 11/30/2024 Purchase 03/24/2022 912828YW4 6,000,000.00 US Treasury Note 100.289 1.22% 6,017,343.75 26,517.86 6,043,861.61 0.00 1.625% Due: 12/15/2022 Purchase 03/24/2022 91282CAX9 5,000,000.00 US Treasury Note 99.266 1.20% 4,963,281.25 1,957.42 4,965,238.67 0.00 0.125% Due: 11/30/2022 Purchase 03/24/2022 91282CBG5 1,000,000.00 US Treasury Note 98.910 1.41% 989,101.56 179.56 989,281.12 0.00 0.125% Due: 01/31/2023 Purchase 03/24/2022 91282CBNO 1,250,000.00 US Treasury Note 98.750 1.48% 1,234,375.00 101.90 1,234,476.90 0.00 0.125% Due: 02/28/2023 Purchase 03/24/2022 91282CCL3 1,250,000.00 US Treasury Note 95.824 2.24% 1,197,802.73 880.52 1,198,683.25 0.00 0.375% Due: 07/15/2024 Purchase 03/25/2022 3130ARHG9 1,250,000.00 FHLB Note 99.886 2.19% 1,248,575.00 0.00 1,248,575.00 0.00 2.125% Due: 02/28/2024 Purchase 03/25/2022 57629WCG3 1,000,000.00 Mass Mutual Global funding Note 100.436 2.79% 1,004,360.00 6,063.89 1,010,423.89 0.00 2.95% Due: 01/11/2025 Purchase 03/25/2022 63743HFC1 1,000,000.00 National Rural Utilities Note 97.274 2.87% 972,740.00 2,500.00 975,240.00 0.00 1.875% Due: 02/07/2025 Purchase 03/25/2022 717081EX7 1,000,000.00 Pfizer Inc. Callable Note Cont 4/28/2025 94.501 2.62% 945,010.00 2,600.00 947,610.00 0.00 0.8% Due: 05/28/2025 Purchase 03/25/2022 747525AFO 1,000,000.00 Qualcomm Inc Callable Note Cont 2/20/2025 101.896 2.82% 1,018,960.00 11,979.17 1,030,939.17 0.00 3.45% Due: 05/20/2025 Purchase 03/25/2022 857477BR3 735,000.00 State Street Bank Callable Note Cont 2/6/2025 97.042 2.63% 713,258.70 1,711.08 714,969.78 0.00 1.746% Due: 02/06/2026 Purchase 03/30/2022 437076CM2 1,000,000.00 Home Depot Callable Note Cont 3/15/2025 99.562 2.85% 995,620.00 150.00 995,770.00 0.00 2.7% Due: 04/15/2025 35 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Transaction Ledger As of March 31, 2022 City of Tustin Consolidated Account - Account #10795 December 31, 2021 through March 31, 2022 Settlement Type Date CUSIP Quantity DescriptionTransaction Security Yield Pur/Sold Purchase 03/31/2022 90CAMP$00 6,959.80 California Asset Mgmt Program CAMP 1.000 0.07% 6,959.80 0.00 6,959.80 0.00 Subtotal 53,560,603.38 53,333,396.38 240,552.99 53,573,949.37 0.00 TOTAL ACQUISITIONS 53,560,603.38 53,333,396.38 240,552.99 53,573,949.37 0.00 DISPOSITIONS Call 02/03/2022 166764BN9 2,000,000.00 Chevron Corp Callable Note Cont 2/3/2022 100.000 2.50% 2,000,000.00 20,816.00 2,020,816.00 -578.15 2.498% Due: 03/03/2022 Subtotal 2,000,000.00 2,000,000.00 20,816.00 2,020,816.00 -578.15 Maturity 01/01/2022 45656RDV1 1,000,000.00 City of Industry CA STE-REV 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.75% Due: 01/01/2022 Maturity 01/11/2022 89236TDP7 1,000,000.00 Toyota Motor Credit Corp Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.6% Due: 01/11/2022 Maturity 01/19/2022 677721CNO 248,000.00 Ohio Valley Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.9% Due: 01/19/2022 Maturity 02/06/2022 742718DY2 1,000,000.00 Procter & Gamble Co Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.3% Due: 02/06/2022 Maturity 02/21/2022 63969ACD4 248,000.00 Nebraska State Bank & Trust Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 1.95% Due: 02/21/2022 Subtotal 3,496,000.00 3,496,000.00 0.00 3,496,000.00 0.00 Security 03/22/2022 90CAMP$00 48,735,000.00 California Asset Mgmt Program CAMP 1.000 48,735,000.00 0.00 48,735,000.00 0.00 Withdrawal Subtotal 48,735,000.00 48,735,000.00 0.00 48,735,000.00 0.00 TOTAL DISPOSITIONS 54,231,000.00 54,231,000.00 20,816.00 54,251,816.00 -578.15 36 C11% DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Important Disclosures As of March 31, 2022 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. 3 7 C,,J DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Benchmark Disclosures As of March 31, 2022 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. 38 C11 DocuSign Envelope ID: F5AAB750-D243-4FBO-A521 -EE7F836FBF1 1 PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN Account Report for the Period PARS Post -Employment Benefits Trust 3/1/2022 to 3/31/2022 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 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB 0.04% -5.37% 2.16% 8.19% 6/26/2018 PENSION 0.05% -5.36% 2.17% 8.09% 6/26/2018 Information as provided by US. Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Balance as of Balance as of Source 3/1/2022 Contributions Earnings Expenses Distributions Transfers 3/31/2022 OPEB $2,518,363.56 $500,000.00 $1,188.59 $1,140.07 $0.00 $0.00 $3,018,412.08 PENSION $7,184,921.67 $2,000,000.00 $4,499.72 $3,252.11 $0.00 $0.00 $9,186,169.28 Totals $9,703,285.23 $2,500,000.00 $5,688.31 $4,392.18 $0.00 $0.00 $12,204,581.36 Investment Selection Source OPEB City of Tustin - OPEB PENSION City of Tustin - Pension Investment Objective Source Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that OPEB dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that PENSION dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Investment Return Annualized Return Source 1 -Month 3 -Months 1 -Year 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB 0.04% -5.37% 2.16% 8.19% 6/26/2018 PENSION 0.05% -5.36% 2.17% 8.09% 6/26/2018 Information as provided by US. Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 CITY OF TUSTIN Monthly Investment Report March 31, 2022 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 2.49 N/A 2.49 2.49 2016 Water Revenue Bonds, Refunding 343,650.00 N/A 343,650.00 343,650.00 2012 Water Revenue Bonds - Refunding 957,600.00 N/A 957,600.00 957,600.00 2020 Water Revenue Bonds 406,930.85 N/A 406,930.85 406,930.85 CFD 04-1 830,313.48 N/A 830,313.48 830,313.48 CFD 06-1 4,969,760.69 N/A 4,969,760.69 4,969,760.69 CFD 07-1 1,362,828.71 N/A 1,362,828.71 1,362,828.71 CFD 14-1 4,870,964.03 N/A 4,870,964.03 4,870,964.03 13,742,050.25 13,742,050.25 13,742,050.25 Restricted Deposits with Fiscal Agents TOTAL 13,742,050.25 13,742,050.25