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HomeMy WebLinkAbout13 QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENTDocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C • AGENDA REPORT MEETING DATE TO: FROM: SUBJECT: SUMMARY: AUGUST 16, 2022 MATTHEW S. WEST, CITY MANAGER Agenda Item 13 Reviewed.' -M5,W City Manager Finance Director ga JASON AL -IMAM, FINANCE DIRECTOR/CITY TREASURER QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY FOR THE QUARTER ENDING JUNE 30, 2022 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 June 30, 2022 is rendered. The City's total cash and investments amounted to approximately $215 million as of June 30, 2022. The weighted average portfolio yield for the investment portfolio was 1.3%, which is 34 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 continuing upward movement in Treasury yields across the board. The Federal Open Market Committee (FOMC) raised the federal funds rate twice during the quarter, 0.50% in May and 0.75% in June. The moves are aimed at countering the fastest pace of inflation in over 40 years. Additional federal funds rate increases are expected for the remaining 2022 year. As a result, the 2 -year Treasury yield increased to 2.96% by June 2022, compared to a yield of 2.34% in March 2022. The 5 -year Treasury yield increased to 3.04% by June 2022, compared to a yield of 2.46% in March 2022. DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Quarterly Investment Report for the Period Ending June 30, 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 $8.3 million at June 30, 2022. The three-year annualized return for the PARS Pension Trust Fund was 3.64%. 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 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 $2.7 million at June 30, 2022. The three- year annualized return for the PARS OPEB Trust Fund was 3.74%. Investment Compliance Certification On July 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. DocuSigneedggby: DocuSigned by: �i�lOsu WW?9trGcsw �It.�.1/l� Jason AI-Imarff75CC3AFOCB4AE. Jennifer King 4A1CDD9FF1D5480... Finance DirecfTtor/City Treasurer Deputy Finance Director — Financial Services Attachment: Investment Report Certification Quarterly Investment Report for the Period Ending June 30, 2022 Restricted Deposits with Fiscal Agents as of June 30, 2022 PARS Trust Statements as of June 30, 2022 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C July 28, 2022 FINANCE DEPARTMENT Remembering what connects us. Honorable Mayor and Members of the City Council: Re: Investment Report Certification In compliance with California Government Code Section 53646, the attached Investment Report for the Quarter Ending June 30, 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 submitted, EDocuSigned by: bLt 4,vJt, OHA52FF464F401... John Wende, Chair City of Tustin Audit Commission DocuSigned by: SD75CC3AFOCB4AE... Jason Al -Imam, Finance Director City of Tustin Treasurer 300 Centennial Way, Tustin, CA 92780 • 714-573-3060 • tustinca.org DocuSign Envelope ID: E82E5848-CC4F-48C5-8636-73A2C882ED6C INVESTMENT REPORTit% City of Tustin Period Ending June 30, 2022 CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com CHANDLER ASSET MANAGEMENT DocuSign Envelope ID: E82E5848-CC4F-48C5-8636-73A2C882ED6C ITable of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 Economic Update Account Profile Portfolio Holdings Transactions As of June 30, 2021 1 Q,tj DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Section 1 1 Economic Update c� DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Economic Update ■ Financial markets are experiencing heightened volatility and tighter conditions as central banks employ more restrictive monetary policies to combat persistent inflation. The conflict between Russia and Ukraine has exacerbated inflationary pressures, particularly with energy and commodities, and strict COVID lockdowns in China are intensifying distressed supply chains. Inflation is weighing heavily on consumer sentiment and beginning to impact discretionary spending. Labor markets remain strong, but wage gains are not keeping up with inflation. While we expect the Fed to continue to tighten monetary policy, the FOMC has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. We continue to believe the risk of an economic slowdown later this year has increased. Over the near- term, we expect financial market volatility to remain intensified and conditions to remain tighter with persistent inflation, geopolitical risk, supply chain bottlenecks, and the Fed's shift to a more hawkish monetary policy. At the June meeting, persistently high inflation led the Federal Open Market Committee (FOMC) to announce a 0.75% federal funds rate increase to 1.50% - 1.75%. Federal Reserve Chair Powell indicated the committee may raise rates by 50 or 75 bps at the July meeting and continue to tighten as needed to dampen inflation. The Fed will continue shrinking its $9 trillion balance sheet by $47 billion per month as of June, increasing to $95 billion in September. We anticipate additional rates hikes as the Fed remains "committed" to the 2% long-term inflation target. In the second half of the year, monetary policy will be dependent on how the economy responds to tighter conditions. In June, yields rose, and the curve flattened. The 2 -year Treasury yield soared 40 basis points to 2.96%, the 5 -year Treasury yield increased 22 basis points to 3.04%, and the 10 -year Treasury yield rose 17 basis points to 3.02%. The spread between the 2 -year and 10 -year Treasury yield fell to 6 basis points at June month-end, down from 29 basis points at May month-end, and down significantly from 122 basis points one year ago. The spread between 3 -month and 10 -year treasuries is wider at about 135 basis points but continues to compress with each Fed rate hike. The shape of the curve bears watching but does not indicate a high probability of an imminent recession. 3 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Employment Source: US Department of Labor Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Source: US Department of Labor The U.S. economy added 372,000jobs in June, and job gains in May were revised down to 384,000 from 390,000. Trends in employment remain strong, with the three-month moving average payrolls at 375,000 and the six-month moving average at 457,000. Hiring was led by education and health services, followed by professional and business services, and leisure and hospitality. The unemployment rate remained unchanged at 3.6% for the fourth month, and 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 a seasonally adjusted 6.7% rate. Average hourly earnings rose 5.1% year -over -year in June, easing from a revised 5.3% year -over -year gain in May, which reflects a continuing, slow deceleration in wage growth that could help ease broad cyclical price pressures. The labor participation rate decreased to 62.2°/% from 62.3%, suggesting a slower pace for workers returning to the labor market despite higher wages. 4 Q11 Nonfarm Payroll (000's) 5,000 24.0% 4,000 20.0% 3,000 JA c 2,000 16.0% 0 c 1,000 0 12.0% C v -1,000 8.0a 0 0 -2,000 -3,000 Non-farm Payroll (000's) 4.0% -4,000 3 month average (000's) -5,000 0.0% 110 ".)0 1")0 �1 �1 �1 11 Source: US Department of Labor Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Source: US Department of Labor The U.S. economy added 372,000jobs in June, and job gains in May were revised down to 384,000 from 390,000. Trends in employment remain strong, with the three-month moving average payrolls at 375,000 and the six-month moving average at 457,000. Hiring was led by education and health services, followed by professional and business services, and leisure and hospitality. The unemployment rate remained unchanged at 3.6% for the fourth month, and 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 a seasonally adjusted 6.7% rate. Average hourly earnings rose 5.1% year -over -year in June, easing from a revised 5.3% year -over -year gain in May, which reflects a continuing, slow deceleration in wage growth that could help ease broad cyclical price pressures. The labor participation rate decreased to 62.2°/% from 62.3%, suggesting a slower pace for workers returning to the labor market despite higher wages. 4 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Inflation 10.0% 9.0% 8.0% 7.0% v iA 6.0% M L 5.0% 0 > 4.0% 0 ' 3.0% 2.0% 1.0% 0.0% Consumer Price Index (CPI) ✓4� ,)o SPp�o OPc�'� o a�� 1 Source: US Department of Labor ✓4�� SPp� pPc� �ar� ✓�,�� 10.0% 9.0% 8.0% 7.0% v F 6.0% M t 5.0% 0 } 4.0% 0 3.0% 2.0% 1.0% 0.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change o 0 +OG�o X16 �d��1 14g�1 �0��1 �Pb,� Source: US Department of Commerce The Consumer Price Index (CPI) hit a 40 -year high in June with broad-based price increases for most goods and services. Headline CPI was up 9.1% year -over -year in June, surpassing expectations, up from 8.6% year -over -year in May. Core CPI (CPI less food and energy) was up 5.9% in June, down from 6.0% in May. Gasoline, shelter, and food were the largest contributors to the increase. The Personal Consumption Expenditures (PCE) index was up 6.3% year -over -year in May, unchanged from April. Core PCE was up 4.7% year -over -year in May, versus up 4.9% year -over -year in April. Persistently elevated levels of inflation are likely to keep the Federal Reserve on the path of tightening monetary policy as long as they continue to run well above the Fed's longer -run target of around 2.0%. 5 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Consumer 60.0% 50.0% 40.0% r 30.0% OR a 0 20.0% =(11101 0.0% Retail Sales YOY % Change ✓4� SPb, O00 �dr ✓47, Source: US Department of Commerce 140 130 120 a� J 110 X a, c 100 90 80 Consumer Confidence SPp� O�c� �dr� ✓�,�� �t,,� SPa O 1 1 �O � Source: The Conference Board SPb 0�°c 'O Retail sales rose 1.0% in June from an upwardly revised -0.1% in May, led by a significant dollar value increase in gasoline sales. The higher- than-expected results indicate consumer demand is holding up more than expected despite inflation. Retail sales growth is at risk as consumers dip into savings and assume more debt. On a year -over -year basis, retail sales were up 8.4% in June versus up 8.2% revised in May. The Consumer Confidence index fell to 98.7 in June from a downwardly revised 103.2 in May. U.S. consumer savings rates are declining, and the wealth effect is waning from recent financial market declines. While the average consumer still has capacity to spend from accumulated savings, higher wages, and credit lines, consumer balance sheets and discretionary spending decisions are increasingly pressured by elevated gas, food, and shelter costs. 6 c`„ DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Economic Activity 2.5% 2.0% Leading Economic Indicators (LEI) 0 -0.5% -1.0% �p I)p I)p �1 Source: The Conference Board WE jV0111 r et v tkoM > 0.00 a s c -2.00 0 -4.00 .01 Chicago Fed National Activity Index (CFNAI) -8.00 X06, �a` 30 p k Source: Federal Reserve Bank of Chicago .cP6,1 47d`�g4g�1.c16�� �d`� 1 � The Conference Board's Leading Economic Index (LEI) decreased 0.4% month -over -month in May, following a 0.4% decline in April. On a year - over -year basis, the LEI was up 3.0% in May versus up 4.4% in April. The May monthly decline was fueled by tumbling stock prices, a slowdown in housing construction, and gloomier expectations. The index remains near historical highs, but the decline suggests weaker economic activity is likely in near term. Likewise, the Chicago Fed National Activity Index (CFNAI) fell to+0.01 in May after downwardly revised 0.40 in April. On a 3 -month moving average basis, the CFNAI decreased to 0.20 in May from 0.40 in April. 7 x`11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Housing 2000 7 1800 Y 1600 w 0 1400 c N 1200 3 1000 800 W r_ 600 U 400 5 0 200 0 Housing Starts �p �p 1)p X,Pb` �`�` �4�°� X, 06 �� Source: US Department of Commerce S&P/Case-Shiller 20 City Composite Home Price Index 24.0% 21.0% 18.0% o°1c 15.0% c M 12.0% 0 3�_ 9.0% 0 } 6.0% 3.0% 0.0% Source: S&P Oct ✓ate fpr ��'� Oct ✓ate 9'br, 1)0�O �p 1l Total housing starts declined 14.4% to an annual rate of 1,549,000 in May, from a revised 1,810,000 in units in April. Single-family home starts fell by 9.2% and multi -family fell 23.7% month -over -month. On a year -over -year basis, total housing starts decreased 3.5%, driven by multi- family. According to the Case-Shiller 20 -City home price index, home prices were up 21.2% in April versus 21.1% year -over -year in March, setting another new record. While tight supply has continued to support prices, rising mortgage rates and affordability could be headwinds to further price growth. 8 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C 66 64 62 60 58 56 54 52 50 48 46 44 42 40 Manufacturing Institute of Supply Management Purchasing Manager Index EXPANDING ✓4� �6 (Io �0/1 ✓412 SPp O00 �0'1 ✓4� ')O ")o )o Source: Institute for Supply Management 20.0% 15.0% 10.0% v T 5.0% s v 0.0% o -5.0% -10.0% -15.0% -20.0% Industrial Production ✓4� -,--,)o pPc ��'r ✓�,� >O �O "')O Source: Federal Reserve The Institute for Supply Management (ISM) manufacturing index dropped sharply to a two-year low of 53.0 in June from 56.1 in May. Readings above 50.0 are indicative of expansion in the manufacturing sector. The decline was primarily driven by weakness in new orders due to softening consumer demand, supply constraints, and labor shortages. On a month -over -month basis, the Industrial Production index declined 0.2% in June, following a revised 0.0% change in May. Capacity utilization declined to 80.0% in June, from an upwardly revised 80.3% in May bringing it in line with its longer run average. 9 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C IGross 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 6.7% 2.3% 6.9% -1.6% Source: US Department of Commerce Gross Domestic Product (GDP) GDP QOQ % Change -GDP YOY % Change �ar SPa �ar Som far Som /1,- SPa ��'r SPa /I,- '9 _'9 Source: US Department of Commerce According to the third estimate, first quarter 2022 GDP contracted at an annualized rate of 1.6%, revised down from the second estimate of a 1.5% decline, and following fourth quarter 2021 growth of 6.9%. The most significant contributors to the decline were a widening of the trade deficit and slower inventory build. Personal consumption expenditures increased at a healthy pace with strong positive revisions to the previous reading, reflecting a shift in consumer demand from goods to services. The consensus estimate calls for 1.0% growth in the second quarter, 1.8% growth in the current quarter and 2.1% growth for 2022. 10 C`„ 35.0% 30.0% 25.0% 7.9% 1.4% 1.8% 1.2% 20.0% 15.0% -0.7% 2.1% 5.8% 0.9% 10.0% 5.0% 0.0% -0.2% -1.3% -0.2% -3.2% -5.0% -10.0% -15.0% -0.4% -0.4% -0.3% -0.5% -20.0% -25.0% 0.0% 0.5% -0.2% -0.1% -30.0% -35.0% Total 6.7% 2.3% 6.9% -1.6% Source: US Department of Commerce Gross Domestic Product (GDP) GDP QOQ % Change -GDP YOY % Change �ar SPa �ar Som far Som /1,- SPa ��'r SPa /I,- '9 _'9 Source: US Department of Commerce According to the third estimate, first quarter 2022 GDP contracted at an annualized rate of 1.6%, revised down from the second estimate of a 1.5% decline, and following fourth quarter 2021 growth of 6.9%. The most significant contributors to the decline were a widening of the trade deficit and slower inventory build. Personal consumption expenditures increased at a healthy pace with strong positive revisions to the previous reading, reflecting a shift in consumer demand from goods to services. The consensus estimate calls for 1.0% growth in the second quarter, 1.8% growth in the current quarter and 2.1% growth for 2022. 10 C`„ DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C c 0 E 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 6 O� 6 6 6 6 O� O� Oe 6 Oe 6 6 00,09 0 c1 c1 c1 c1 c1 c1 c1 c1 c1 c100,1`10 c,� c,� 9 O 1 � .i' Q S 6 � 8 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 7<, 1) a° '49 O 1 v' Q S P 9 -70 1 16 cO 1 Source: Bloomberg At the June meeting, persistently high inflation led the Federal Open Market Committee (FOMC) to announce a 0.75% federal funds rate increase to 1.50% - 1.75%. Federal Reserve Chair Powell indicated the committee may raise rates by 50 or 75 bps at the July meeting and continue to tighten as needed to dampen inflation. Dot plot projections rose significantly from March, with the median fed funds target rate at 3.4% by the end of this year and 3.8% in 2023. The Fed will continue shrinking its $9 trillion balance sheet by $47 billion per month beginning this month, increasing to $95 billion in September. We anticipate additional rates hikes as the Fed remains "committed" to the 2% long-term inflation target. Although the FOMC views the economy as strong, the committee downgraded their economic outlook as trends cool later this year from tightening conditions. 11 C11% DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Bond Yields US Treasury Note Yields 3.5% 3.0% 2 -Year 5 -Year 2.5% 10 -Year 2.0% v } 1.5% 1.0% 0.5% 0.0% OC OC ')O -,.)O ")O Source: Bloomberg 3.5% i 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% a' 6 S 1 �o /110 y` yr yr 0 Source: Bloomberg US Treasury Yield Curve At the end of June, the 2 -year Treasury yield was 271 basis points higher, and the 10 -Year Treasury yield was about 155 basis points higher, year over -year. The spread between the 2 -year Treasury yield and 10 -year Treasury yield fell to 6 basis points at June month-end, down from 29 basis points at May month-end, which is narrow compared to the average historical spread (since 2003) of about 130 basis points. The spread between 3 -month and 10 -year treasuries is wider at about 135 basis points but continues to compress with each Fed rate hike. The shape of the curve bears watching but does not indicate a high probability of an imminent recession. 12 C`„ DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C a,. % Section 2 1 Account Profile 13 Cit DocuSign Envelope ID: E82E5848-CC4F-48C5-8636-73A2C882ED6C Objectives Investment Objectives As of June 30, 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 Q DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C compliance As of June 30, 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 U.S. Treasuries No limitations; U.S. government obligations issued by the U.S. Treasury and backed by the full faith and credit of the Federal government Complies Federal Agencies 50% max per issuer; Federal agencies or U.S. government-sponsored enterprise obligations, participations, or other instruments, including Complies those issued by or fully guaranteed as to principal and interest by federal agencies or U.S. government-sponsored enterprises "AA" rated or better by a NRSRO; 5% max; 5% max per issuer; USD denominated senior unsecured unsubordinated obligations; Issued or Supranational Obligations unconditionally guaranteed by one of the three supranational banking groups: IBRD, IFC, and IADB; Supranational securities will not be Complies purchased until further notice from staff at the City of Tustin. Municipal Securities (CA, Local 30% max; 5% max per issuer; Bonds issued by the local agency (City of Tustin bonds); State of California and any local agency within the Agency) State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated Complies by a local agency, or by a department, board, agency, or authority of the local agency Municipal Securities (CA, Other 30% max; 5% max per issuer; Bonds of any of the other 49 states in addition to California, including bonds payable solely out of the States) revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of Complies 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 Corporate Medium Term Notes agency's investments in commercial paper and medium-term notes); Obligations of a domestic corporation or depository institution; If Complies the credit rating of a security is downgraded below the 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 Negotiable Certificates of Deposit 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" long - (NCD) term rating category or higher by a NRSRO; 30% max; 5% max per issuer; Certificates of deposit issued by a nationally or state -chartered Complies 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 30% max; FDIC insured; The City may utilize these at the discretion of the Treasurer Complies Service (CDARS) Collateralized Bank Deposits/ Time or 30% max per issuer; All active (checking/savings accounts) and inactive (time or certificates of deposit) above FDIC insured limits must be Complies Certificates of Deposit collateralized pursuant to Government Code Bankers' Acceptances "A" rating or better by Moody's or equivalent rating by a NRSRO; 30% max; 5% max per issuer; 180 days maturity; Short-term debt Complies instruments issued by a company that is guaranteed by a commercial bank Commercial Paper 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 Complies (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 (A) or (B): (A) 1. Organized and operating in the U.S. 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 credit or surety bond; and 3. "A-1" rated or higher by a NRSRO 15 cry► DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C compliance As of June 30, 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 Money Market Mutual Funds AAA or highest ranking of two of the three highest ranking NRSRO; Retained an investment adviser registered with SEC with > 5 years Complies Max amount limited to the amount as specified by LAIF; Principal amount withdrawal of $10 million or> needs 24-hour notice, and less Local Agency Investment Fund (LAIF) Complies 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 used by (LG IP)/ Complies Orange County Investment Pool investment adviser Joint Powers Authority (JPA) 50% max per issuer; Shares of beneficial interest issued by a joint powers' authority organized pursuant to Section 6509.7 that invests in Complies Investment Pools 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 Agreements; Complies 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 The City of Tustin maintains adequate liquidity to cover at least six months of expected disbursements. 16 Q1 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Portfolio Characteristics As of June 30, 2022 City of Tustin Consolidated Account Average Maturity (yrs) 2.61 0.73 0.80 Average Modified Duration 2.51 0.70 0.77 Average Purchase Yield n/a 1.30% 0.97% Average Market Yield 2.98% 1.80% 1.07% Average Quality" AAA AA/Aa2 AA/Aa2 Total Market Value 215,059,046 194,561,191 *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. DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Sector Distribution US Treast 23.0% Negotiable CD 2.6% Municipal Bonds 0.5% Money Market Fund 0.4% Local Gov Investment Pool 6.9% June 30, 2022 Commercial CMO Paper Agency 0.5% 4.6% 2.4% ra,h / City of Tustin Consolidated Account Corporate 14.8% US Treasury 23.1% Negotiable CD 2.2% Municipal Bonds 1.0% Money Market Fund 0.7% Local Gov Investment Pool 3.6% March 31, 2022 Agency 5.2% As of June 30, 2022 Cash 5.1% Corporate 15.7% -AIF 3.4% $5,116,176.33 $7,454,206.20 $31,891,591.27 $87,981,994.44 ® $10,190,878.13 $9,869,613.02 - $30,505,715.21 $84,504,948.22 - $14,752,255.19 $922,570.75 $1,009,629.17 - $5,612,376.31 - $6,998,700.08 $1,258,364.45 $2,023,785.42 - $4,237,565.04 $49,363,367.46 - $1,001,457.50 $9,953,421.12 $44,971,621.50 18 Q1", DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Portfolio Allocation City of Tustin Consolidated Account LAIF US Treasury 23.0% 23.1% Corporate 14.8% 15.7% Local Gov Investment Pool 6.9% 3.6% Commercial Paper o � 4.6/0 0.0% Cash - 3.5% 5.1% Negotiable CD 2.6% 2.2% Agency 2.4% - 5.2% Municipal Bonds 1 0.5% V 1.0% CMO 1 0.5% 0.0% Money Market Fund 1 0.4% ■ 0.7% 40.9% i 43.4% ■ 06/30/22 ■ 03/31/22 As of June 30, 2022 19 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C IIssuers City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 Local Agency Investment Fund LAIF 40.91% Government of United States US Treasury 22.95% CAMP Local Gov Investment Pool 6.86% Bank Cash Account Cash 3.47% MUFG Bank Ltd/NY Commercial Paper 1.86% Royal Bank of Canada NY Commercial Paper 1.85% Toyota Motor Corp Corporate 1.64% Toronto Dominion Holdings Negotiable CD 1.12% Federal Home Loan Mortgage Corp Agency 0.94% 1P Morgan Securities LLC Commercial Paper 0.92% JP Morgan Chase & Co Corporate 0.87% Federal National Mortgage Association Agency 0.86% US Bancorp Corporate 0.61% Federal Home Loan Bank Agency 0.58% Visa Inc Corporate 0.47% Duke Energy Field Services Corporate 0.47% Federal Home Loan Mortgage Corp CMO 0.47% Qualcomm Inc Corporate 0.46% Mass Mutual Insurance Corporate 0.46% Morgan Stanley Corporate 0.46% Home Depot Corporate 0.46% Paccar Financial Corporate 0.46% Chubb Corporation Corporate 0.46% Target Corp Corporate 0.45% National Rural Utilities Corporate 0.45% Deere & Company Corporate 0.44% Bank of Montreal Chicago Corporate 0.44% State Street Bank Corporate 0.44% New York Life Global Funding Corporate 0.44% Salesforce.com Inc Corporate 0.44% Bank of America Corp Corporate 0.44% Bank of New York Corporate 0.44% Metlife Inc Corporate 0.44% Pfizer Inc. Corporate 0.43% First American Govt Oblig Fund Money Market Fund 0.43% Caterpillar Inc Corporate 0.42% Amazon.com Inc Corporate 0.42% United Health Group Inc Corporate 0.42% 20 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C IIssuers City of Tustin Consolidated Account — Account #10795 As of June 30, 2022 Toronto Dominion Holdings Corporate 0.42% Charles Schwab Corp/The Corporate 0.42% Royal Bank of Canada Corporate 0.42% Wal-Mart Stores Corporate 0.38% Santa Rosa Regional Resources Municipal Bonds 0.23% MasterCard Inc Corporate 0.23% Murrieta Redevelopment Agency Municipal Bonds 0.12% California Edl Facs Auth Rev Municipal Bonds 0.12% First Premier Bank Negotiable CD 0.12% Barclays Bank Negotiable CD 0.12% Alliance Credit Union MO Negotiable CD 0.12% UBS Corp Negotiable CD 0.12% First Bank of Highland Negotiable CD 0.12% Signature Bank Chicago IL Negotiable CD 0.12% Mountain America FCU Negotiable CD 0.12% Allegiance Bank Negotiable CD 0.12% First Internet Bank of Indiana Negotiable CD 0.12% FNB Bank Inc Negotiable CD 0.12% Sallie Mae Bank Negotiable CD 0.12% Delaware State Police FCU Negotiable CD 0.11% Goldman Sachs Inc. Negotiable CD 0.10% TOTAL 100.00% 21 C11% DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C IMaturity Distribution As of June 30, 2022 S140,000 S1120.000 S1100.000 $80.000 $60.000 $40,000 520.000 City of Tustin Consolidated Account 4-.25 .25-_5 .5-1 1-2 2-3 3-4 4-5 5+ IiAntUrity {Yrs} 22 C►" DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C I Quality Distribution 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% AAA City of Tustin Consolidated Account June 30, 2022 vs. March 31, 2022 AA ■June 30, 2022 I I <A _! March 31, 2022 NR 06/30/22 10.3% 31.1% 12.3% 0.0% 46.3% 03/31/22 4.2% 33.2% 11.8% 0.0% 50.7% Source: S&P Ratings As of June 30, 2022 23 C`'11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Duration Distribution 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 June 30, 2022 vs. March 31, 2022 0-0.25 0.25-0.50 0.50-1 ■June 30, 2022 1-2 2-3 3-4 4-5 Vu March 31, 2022 5+ 06/30/22 56.9% 17.5% 1.8% 6.0% 10.9% 6.6% 0.4% 0.0% 03/31/22 57.4% 6.7% 13.3% 4.1% 9.2% 8.3% 1.0% 0.0% As of June 30, 2022 24 Qtj DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Investment Performance As of June 30, 2022 City of Tustin Consolidated Account Total Rate of Return Annualized Since Inception November 30, 2020 0.00% -0.50% -1.00% -1.50% -2.00% -2.50% -3.00 -3.50% -4.00% -4.50% -5.00% 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 -0.23% -0.81% N/A N/A N/A N/A -0.36% ICE BofA 1-5 Yr US Treasury & Agency Index -0.81% -4.60% N/A N/A N/A N/A -3.14% ICE BofA 1-3 Yr US Treasury & Agency Index -0.51% -3.30% N/A N/A N/A N/A -2.11% REALIZED RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Tustin Consolidated Account 0.29% 0.72% N/A N/A N/A N/A 0.83% 25 C`'11 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. DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C a,. % Section 4 1 Portfolio Holdings 26 C� DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Holdings Report City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 Agency 1.00 7,454,206.20 3.47% NR/NR 0.00 0.25% 7,454,206.20 0.25% 0.00 0.00 NR 0.00 3134GBWQ1 FHLMC Callable Note 1X 7/27/2018 2,000,000.00 07/27/2017 1,996,000.00 100.03 2,000,698.00 0.94% Aaa / AA+ 0.07 0.00 2.000% Due 07/27/2022 NR 2.04% 1,999,943.04 1.52% 17,111.11 754.96 AAA 0.07 3130ARHG9 FHLB Note 1,250,000.00 03/24/2022 1,248,575.00 98.71 1,233,875.00 0.58% Aaa / AA+ 1.67 2.125% Due 02/28/2024 2.19% 1,248,773.09 2.93% 7,083.33 (14,898.09) NR 1.61 3135G04Z3 FNMA Note 2,000,000.00 04/12/2021 1,982,980.00 92.85 1,857,020.00 0.86% Aaa / AA+ 2.97 0.500% Due 06/17/2025 0.711/. 1,987,932.08 3.049/. 388.89 (130,912.08) AAA 2.90 5,227,555.00 5,091,593.00 2.38% Aaa / AA+ 1.51 TOTAL Agency 5,250,000.00 1.57% 5,236,648.21 2.41% 24,583.33 (145,055.21) Aaa 1.47 Cash 90BOFA$00 Cash BOA Cash Acct 7,454,206.20 Various 7,454,206.20 1.00 7,454,206.20 3.47% NR/NR 0.00 0.25% 7,454,206.20 0.25% 0.00 0.00 NR 0.00 7,454,206.20 7,454,206.20 3.47% NR/NR 0.00 TOTAL Cash 7,454,206.20 0.25% 7,454,206.20 0.25% 0.00 0.00 NR 0.00 CMO 3137BDCW4 FHLMC K039 A2 1,000,000.00 04/19/2022 1,007,968.75 99.87 998,705.00 0.47% NR/NR 2.07 3.303% Due 07/25/2024 2.75% 1,007,263.29 3.28% 2,752.50 (8,558.29) AAA 1.80 1,007,968.75 998,705.00 0.47% NR/NR 2.07 TOTAL CMO 1,000,000.00 2.75% 1,007,263.29 3.28% 2,752.50 (8,558.29) Aaa 1.80 Commercial Paper 62479MJ20 MUFG Bank Ltd/NY Discount CP 1.270% Due 09/02/2022 78015DL73 Royal Bank of Canada NY Discount CP 1.570% Due 11/07/2022 46640QM65 JP Morgan Discount CP 1.730% Due 12/06/2022 4,000,000.00 04/05/2022 1.29% 4,000,000.00 04/05/2022 1.60% 2,000,000.00 04/06/2022 1.77% 3,978,833.33 99.78 3,991,110.00 1.86% P-1 / A-1 0.18 3,991,110.00 1.29% 0.00 0.00 NR 0.17 3,962,320.00 99.44 3,977,496.67 1.85% P-1 / A-1+ 0.36 3,977,496.67 1.60% 0.00 0.00 NR 0.35 1,976,548.89 99.24 1,984,814.45 0.92% P-1 / A-1 0.44 1,984,814.45 1.77% 0.00 0.00 F-1+ 0.43 9,917,702.22 9,953,421.12 4.63% P-1 / A-1 0.30 TOTAL Commercial Paper 10,000,000.00 1.51% 9,953,421.12 1.51% 0.00 0.00 F-1+ 0.30 Corporate 89236TEC5 Toyota Motor Credit Corp Note 2,500,000.00 11/01/2017 2,482,750.00 99.96 2,499,037.50 1.17% Al / A+ 0.19 2.150% Due 09/08/2022 2.30% 2,499,328.30 2.34% 16,871.53 (290.80) A+ 0.19 27 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C Holdings Report City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 92826CAG7 Visa Inc Callable Note Cont 8/15/2022 1,000,000.00 10/03/2017 1,002,301.43 99.96 999,619.00 0.47% Aa3 / AA- 0.21 2.150% Due 09/15/2022 2.10% 1,000,096.74 2.32% 6,330.56 (477.74) NR 0.21 89236TFNO Toyota Motor Credit Corp Note 1,000,000.00 02/28/2019 1,019,000.00 100.24 1,002,412.00 0.47% Al / A+ 1.22 3.450% Due 09/20/2023 3.00% 1,005,089.49 3.24% 9,679.17 (2,677.49) A+ 1.18 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022 1,000,000.00 04/25/2022 951,860.00 94.71 947,114.00 0.44% A2/A+ 2.04 0.625% Due 07/15/2024 2.88% 955,723.09 3.33% 2,881.94 (8,609.09) NR 1.99 59217GEPO Metlife Note 1,000,000.00 01/18/2022 979,170.00 93.46 934,585.00 0.44% Aa3/AA- 2.25 0.700% Due 09/27/2024 1.49% 982,609.82 3.77% 1,827.78 (48,024.82) AA- 2.18 24422EVY2 John Deere Capital Corp Note 1,000,000.00 02/04/2022 985,080.00 94.90 949,040.00 0.44% A2 / A 2.53 1.250% Due 01/10/2025 1.78% 987,079.59 3.37% 5,937.50 (38,039.59) A 2.44 57629WCG3 Mass Mutual Global funding Note 1,000,000.00 03/23/2022 1,004,360.00 98.33 983,304.00 0.46% Aa3 / AA+ 2.54 2.950% Due 01/11/2025 2.79% 1,003,942.33 3.65% 13,930.56 (20,638.33) AA+ 2.38 64952WEK5 New York Life Global Note 1,000,000.00 01/18/2022 996,780.00 94.49 944,887.00 0.44% Aaa / AA+ 2.55 1.450% Due 01/14/2025 1.56% 997,258.57 3.75% 6,726.39 (52,371.57) AAA 2.44 63743HFC1 National Rural Utilities Note 1,000,000.00 03/23/2022 972,740.00 95.63 956,261.00 0.45% A2/A- 2.61 1.875% Due 02/07/2025 2.87% 975,284.27 3.65% 7,500.00 (19,023.27) A 2.49 57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025 500,000.00 11/01/2021 515,365.00 96.51 482,570.00 0.23% Al / A+ 2.68 2.000% Due 03/03/2025 1.06% 512,332.43 3.37% 3,277.78 (29,762.43) NR 2.56 69371RR73 Paccar Financial Corp Note 1,000,000.00 03/31/2022 999,740.00 98.11 981,070.00 0.46% Al / A+ 2.77 2.850% Due 04/07/2025 2.86% 999,760.16 3.57% 6,650.00 (18,690.16) NR 2.62 87612EBL9 Target Corp Callable Note Cont 4/15/25 1,000,000.00 02/04/2022 1,010,340.00 96.62 966,156.00 0.45% A2 / A 2.79 2.250% Due 04/15/2025 1.91% 1,009,067.52 3.53% 4,750.00 (42,911.52) A 2.66 437076CM2 Home Depot Callable Note Cont 3/15/2025 1,000,000.00 03/28/2022 995,620.00 98.20 982,032.00 0.46% A2 / A 2.79 2.700% Due 04/15/2025 2.85% 995,986.31 3.38% 6,975.00 (13,954.31) A 2.64 61747YEQ4 Morgan Stanley Callable Note S/A 4/17/2024 1,000,000.00 06/01/2022 1,000,910.00 98.79 987,949.00 0.46% Al / A- 2.80 3.620% Due 04/17/2025 3.28% 1,000,885.71 3.77% 7,139.44 (12,936.71) A 2.62 06406RAN7 Bank of NY Mellon Corp Callable Note Cont 3/24/2025 1,000,000.00 02/04/2022 989,120.00 94.00 939,967.00 0.44% Al / A 2.82 1.600% Due 04/24/2025 1.95% 990,448.64 3.87% 2,977.78 (50,481.64) AA- 2.70 06367WB85 Bank of Montreal Note 1,000,000.00 08/17/2021 1,034,530.00 94.88 948,837.00 0.44% A2 / A- 2.84 1.850% Due 05/01/2025 0.90% 1,026,453.40 3.77% 3,083.33 (77,616.40) AA- 2.71 91159HHZ6 US Bancorp Callable Note Cont 4/11/2025 1,400,000.00 12/23/2021 1,406,818.00 93.80 1,313,169.20 0.61% A2/A+ 2.87 1.450% Due 05/12/2025 1.30% 1,405,793.36 3.75% 2,763.06 (92,624.16) A+ 2.76 747525AFO Qualcomm Inc Callable Note Cont 2/20/2025 1,000,000.00 03/23/2022 1,018,960.00 99.58 995,793.00 0.46% A2 / A 2.89 3.450% Due 05/20/2025 2.82% 1,017,347.08 3.60% 3,929.17 (21,554.08) NR 2.72 28 Qj DocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C Holdings Report City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 717081EX7 Pfizer Inc. Callable Note Cont 4/28/2025 1,000,000.00 03/23/2022 945,010.00 93.19 931,949.00 0.43% A2/A+ 2.91 0.800% Due 05/28/2025 2.62% 949,655.71 3.27% 733.33 (17,706.71) A 2.83 26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25 1,000,000.00 04/25/2022 1,000,280.00 99.33 993,275.00 0.47% Aa3 / A 3.13 3.250% Due 08/15/2025 3.24% 1,000,264.91 3.48% 12,277.78 (6,989.91) NR 2.91 89114QCK2 Toronto Dominion Bank Note 1,000,000.00 08/17/2021 993,000.00 90.37 903,730.00 0.42% Al / A 3.20 0.750% Due 09/11/2025 0.93% 994,490.57 3.99% 2,291.67 (90,760.57) AA- 3.09 14913R2H9 Caterpillar Financial Service Note 1,000,000.00 04/21/2021 991,780.00 91.07 910,744.00 0.42% A2 / A 3.38 0.800% Due 11/13/2025 0.98% 993,922.63 3.64% 1,066.67 (83,178.63) A 3.27 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1,000,000.00 Various 978,258.70 94.48 944,830.00 0.44% Al / A 3.61 1.746% Due 02/06/2026 2.73% 979,765.52 3.82% 6,984.00 (34,935.52) AA- 3.40 06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025 1,000,000.00 04/20/2021 1,030,470.00 93.81 938,068.00 0.44% A2/A- 3.63 2.015% Due 02/13/2026 1.55% 1,022,930.49 4.12% 7,724.17 (84,862.49) AA- 3.40 46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025 2,000,000.00 Various 2,072,110.00 93.59 1,871,816.00 0.87% A2/A- 3.81 2.083% Due 04/22/2026 1.56% 2,058,223.31 4.25% 7,984.84 (186,407.31) AA- 3.58 00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026 1,000,000.00 07/23/2021 1,102,780.00 97.91 979,110.00 0.46% A3 / A 3.84 3.350% Due 05/03/2026 1.13% 1,082,767.12 3.94% 5,397.22 (103,657.12) A 3.55 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026 1,000,000.00 05/12/2021 995,200.00 91.02 910,218.00 0.42% Al / AA 3.87 1.000% Due 05/12/2026 1.10% 996,286.84 3.50% 1,361.11 (86,068.84) AA- 3.73 808513BR5 Charles Schwab Corp Callable Note Cont 4/13/2026 1,000,000.00 07/23/2021 1,007,990.00 90.32 903,213.00 0.42% A2 / A 3.87 1.150% Due 05/13/2026 0.98% 1,006,443.11 3.87% 1,533.33 (103,230.11) A 3.71 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1,000,000.00 07/28/2021 1,007,110.00 90.77 907,652.00 0.42% A3/A+ 3.88 1.150% Due 05/15/2026 1.00% 1,005,744.88 3.73% 1,469.44 (98,092.88) A 3.72 78016EZT7 Royal Bank of Canada Note 1,000,000.00 07/28/2021 999,090.00 89.36 893,572.00 0.42% Al / A 4.04 1.150% Due 07/14/2026 1.17% 999,258.93 4.03% 5,334.72 (105,686.93) AA- 3.85 931142ERO Wal-Mart Stores Callable Note Cont 08/17/2026 900,000.00 09/22/2021 902,277.00 91.05 819,492.30 0.38% Aa2 / AA 4.22 1.050% Due 09/17/2026 1.00% 901,926.50 3.34% 2,730.00 (82,434.20) AA 4.05 33,390,800.13 31,721,472.00 14.83% Al / A+ 2.74 TOTAL Corporate 33,300,000.00 1.93% 33,356,167.33 3.54% 170,119.27 (1,634,695.33) A+ 2.61 29 Qj DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Holdings Report LAW 90LAIF$00 Local Agency Investment Fund State Pool City of Tustin Consolidated Account - Account #10795 87,833,956.35 Various 87,833,956.35 1.00 87,833,956.35 0.94% 87,833,956.35 0.94% 148,038.09 As of June 30, 2022 40.91% NR/NR 0.00 0.00 NR 0.00 87,833,956.35 87,833,956.35 40.91% NR/NR 0.00 TOTAL LAIF 87,833,956.35 0.94% 87,833,956.35 0.94% 148,038.09 0.00 NR 0.00 Local Gov Investment Pool 250,000.00 10/18/2017 I - 250,040.00 90CAMP$00 California Asset Mgmt Program CAMP 14,752,255.19 Various 14,752,255.19 1.00 14,752,255.19 6.86% NR / AAA 0.00 1.40% 14,752,255.19 1.40% 0.00 0.00 NR 0.00 14,752,255.19 14,752,255.19 6.86% NR / AAA 0.00 TOTAL Local Gov Investment Pool 14,752,255.19 1.40% 14,752,255.19 1.40% 0.00 0.00 NR 0.00 Money Market Fund 250,000.00 10/18/2017 249,345.00 100.02 250,040.00 0.12% NR/A+ 0.09 31846V203 First American Govt Obligation Fund Class Y 190,523.75 Various 190,523.75 1.00 190,523.75 0.09% Aaa / AAA 0.00 13077DFD9 California State University TE -REV 0.97% 190,523.75 0.97% 0.00 0.00 AAA 0.00 31846V203 First American Govt Obligation Fund Class Y 732,047.00 Various 732,047.00 1.00 732,047.00 0.34% Aaa / AAA 0.00 2.050% Due 07/14/2022 0.97% 732,047.00 0.97% 0.00 0.00 AAA 0.00 TOTAL Municipal Bonds 1,000,000.00 2.50% 922,570.75 2.14% 922,570.75 0.43% Aaa / AAA 0.00 TOTAL Money Market Fund 922,570.75 0.97% 922,570.75 0.97% 0.00 0.00 Aaa 0.00 Municipal Bonds 802629AX3 Santa Rosa Regional Resources STE-REV 500,000.00 10/03/2017 504,500.00 100.04 500,195.00 0.23% NR /AA+ 0.09 2.400% Due 08/01/2022 2.20% 500,079.13 1.93% 5,000.00 115.87 AA 0.09 62719PAY2 Murrieta Redevelopment Agency STE-TA 250,000.00 10/18/2017 249,345.00 100.02 250,040.00 0.12% NR/A+ 0.09 2.500% Due 08/01/2022 2.56% 249,988.38 2.29% 2,604.17 51.62 NR 0.09 13077DFD9 California State University TE -REV 250,000.00 08/02/2018 250,000.00 100.21 250,517.50 0.12% Aa2 / AA- 0.34 3.054% Due 11/01/2022 3.05% 250,000.00 2.42% 1,272.50 517.50 NR 0.33 2.050% Due 07/14/2022 2.05% 1,003,845.00 1.70% 1,000,752.50 0.47% Aa2 / AA 0.15 TOTAL Municipal Bonds 1,000,000.00 2.50% 1,000,067.51 2.14% 8,876.67 684.99 AA 0.15 Negotiable CD 06740KKD8 Barclays Bank Delaware Negotiable CD 247,000.00 07/12/2017 247,000.00 100.02 247,039.77 0.12% NR/NR 0.03 2.200% Due 07/12/2022 2.20% 247,000.00 1.69% 2,530.90 39.77 NR 0.03 32056GCQ1 First Internet Bank of IN Negotiable CD 248,000.00 07/14/2017 248,000.00 100.01 248,033.48 0.12% NR/NR 0.04 2.050% Due 07/14/2022 2.05% 248,000.00 1.70% 236.79 33.48 NR 0.04 30 Qj DocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C Holdings Report 330459BU1 FNB Bank Inc Negotiable CD 2.000% Due 08/18/2022 City of Tustin Consolidated Account - Account #10795 248,000.00 08/18/2017 248,000.00 100.03 248,078.12 2.00% 248,000.00 1.76% 176.66 As of June 30, 2022 0.12% NR/NR 0.13 78.12 NR 0.13 33610RQY2 First Premier Bank Negotiable CD 248,000.00 08/21/2017 248,000.00 100.04 248,096.97 0.12% NR/NR 0.15 2.050% Due 08/22/2022 2.05% 248,000.00 1.77% 1,810.74 96.97 NR 0.14 89114WU86 Toronto Dominion Yankee CD 2,400,000.00 04/06/2022 2,400,000.00 99.80 2,395,111.20 1.12% P-1 / A-1+ 0.27 1.450% Due 10/06/2022 1.45% 2,400,000.00 2.20% 8,313.33 (4,888.80) F-1+ 0.27 01859BAA3 Alliance Credit Union MO Negotiable CD 248,000.00 10/13/2017 248,000.00 100.11 248,282.72 0.12% NR/NR 0.29 2.250% Due 10/13/2022 2.25% 248,000.00 1.84% 1,207.73 282.72 NR 0.29 01748DAY2 Allegiance Bank Negotiable CD 248,000.00 11/03/2017 248,000.00 100.10 248,240.06 0.12% NR/NR 0.35 2.200% Due 11/03/2022 2.20% 248,000.00 1.92% 418.54 240.06 NR 0.34 319141JF5 First Bank of Highland Negotiable CD 248,000.00 11/08/2017 248,000.00 100.09 248,234.86 0.12% NR/NR 0.36 2.200% Due 11/08/2022 2.20% 248,000.00 1.93% 807.19 234.86 NR 0.36 62384RACO MOUNTAIN AMERICA FD CRIED Negotiable CD 248,000.00 11/08/2017 248,000.00 100.13 248,323.39 0.12% NR/NR 0.36 2.300% Due 11/08/2022 2.30% 248,000.00 1.93% 359.43 323.39 NR 0.36 82669VBY6 Signature Bank Chicago IL Negotiable CD 248,000.00 11/08/2017 248,000.00 1.050% Due 08/25/2026 1.15% 243,982.97 100,08 248,190.22 0.12% NR/NR 0.36 5,591,049.90 2.150% Due 11/08/2022 Aaa / AAA 2.15% 248,000.00 2.18% 21,326.41 1.93% 788.84 190.22 NR 0.36 79545OM93 Sallie Mae Bank Negotiable CD 245,000.00 04/18/2018 245,000.00 99.96 100.38 245,930.51 0.12% NR/NR 0.80 1.07% 3.000% Due 04/18/2023 2.12% 3.00% 245,000.00 AAA 2.51% 1,490.14 930.51 NR 0.78 90348JCW8 UBS Bank USA Negotiable CD 248,000.00 06/13/2018 248,000.00 100.44 249,085.00 0.12% NR/NR 0.95 3.250% Due 06/13/2023 3.25% 248,000.00 2.78% 397.48 1,085.00 NR 0.94 246399AB5 Delaware State Police FCU Negotiable CD 246,000.00 03/29/2019 246,000.00 99.68 245,203.70 0.11% NR/NR 1.75 3.000% Due 03/29/2024 3.00% 246,000.00 3.19% 1,900.60 (796.30) NR 1.68 38149MYS6 Goldman Sachs Bank USA Negotiable CD 245,000.00 08/17/2021 243,775.00 91.10 223,199.90 0.10% NR/NR 4.16 1.050% Due 08/25/2026 1.15% 243,982.97 3.36% 888.04 (20,783.07) NR 3.99 5,613,775.00 5,591,049.90 2.61% Aaa / AAA 0.53 TOTAL Negotiable CD 5,615,000.00 1.93% 5,613,982.97 2.18% 21,326.41 (22,933.07) Aaa 0.51 US Treasury 5,000,000.00 03/23/2022 5,014,843.75 99.75 4,987,500.00 2.32% Aaa /AA+ 0.38 9128281-57 US Treasury Note 5,750,000.00 03/23/2022 5,774,482.42 99.98 5,749,091.50 2.69% Aaa / AA+ 0.25 1.750% Due 09/30/2022 0.93% 5,761,725.79 1.81% 25,293.72 (12,634.29) AAA 0.25 9128283C2 US Treasury Note 6,000,000.00 03/23/2022 6,033,281.25 99.96 5,997,372.00 2.80% Aaa /AA+ 0.34 2.000% Due 10/31/2022 1.07% 6,018,372.45 2.12% 20,217.39 (21,000.45) AAA 0.33 912828TY6 US Treasury Note 5,000,000.00 03/23/2022 5,014,843.75 99.75 4,987,500.00 2.32% Aaa /AA+ 0.38 1.625% Due 11/15/2022 1.16% 5,008,616.92 2.29% 10,377.04 (21,116.92) AAA 0.37 91282CAX9 US Treasury Note 5,000,000.00 03/23/2022 4,963,281.25 99.09 4,954,490.00 2.30% Aaa /AA+ 0.42 0.125% Due 11/30/2022 1.20% 4,977,763.94 2.32% 529.37 (23,273.94) AAA 0.41 31 Qtj DocuSign Envelope ID: E82E5848-CC4F-48C5-8636-73A2C882ED6C Holdings Report City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 912828YW4 US Treasury Note 6,000,000.00 03/23/2022 6,017,343.75 99.64 5,978,670.00 2.78% Aaa /AA+ 0.46 1.625% Due 12/15/2022 1.22% 6,010,888.75 2.41% 4,262.30 (32,218.75) AAA 0.45 91282CBG5 US Treasury Note 1,000,000.00 03/23/2022 989,101.56 98.58 985,781.00 0.46% Aaa /AA+ 0.59 0.125% Due 01/31/2023 1.41% 992,548.67 2.59% 521.41 (6,767.67) AAA 0.58 91282CBNO US Treasury Note 1,250,000.00 03/23/2022 1,234,375.00 98.32 1,228,955.00 0.57% Aaa /AA+ 0.67 0.125% Due 02/28/2023 1.48% 1,238,911.29 2.68% 522.25 (9,956.29) AAA 0.66 912828869 US Treasury Note 1,250,000.00 03/23/2022 1,248,828.13 98.85 1,235,596.25 0.58% Aaa / AA+ 0.92 1.625% Due 05/31/2023 1.70% 1,249,096.06 2.91% 1,720.46 (13,499.81) AAA 0.90 912828592 US Treasury Note 1,250,000.00 03/23/2022 1,239,697.27 98.24 1,227,978.75 0.57% Aaa /AA+ 1.08 1.250% Due 07/31/2023 1.87% 1,241,761.99 2.91% 6,517.61 (13,783.24) AAA 1.06 9128282D3 US Treasury Note 1,300,000.00 05/18/2022 1,283,191.41 98.20 1,276,640.30 0.60% Aaa /AA+ 1.17 1.375% Due 08/31/2023 2.40% 1,284,732.50 2.95% 5,974.52 (8,092.20) AAA 1.14 912828791 US Treasury Note 1,200,000.00 04/25/2022 1,187,296.88 98.32 1,179,843.60 0.55% Aaa /AA+ 1.34 1.625% Due 10/31/2023 2.34% 1,188,812.98 2.92% 3,285.33 (8,969.38) AAA 1.30 912828U57 US Treasury Note 1,250,000.00 03/23/2022 1,251,416.02 98.91 1,236,426.25 0.58% Aaa /AA+ 1.42 2.125% Due 11/30/2023 2.06% 1,251,188.45 2.91% 2,249.83 (14,762.20) AAA 1.38 912828V80 US Treasury Note 1,250,000.00 03/23/2022 1,252,832.03 98.94 1,236,718.75 0.58% Aaa /AA+ 1.59 2.250% Due 01/31/2024 2.12% 1,252,418.50 2.94% 11,731.70 (15,699.75) AAA 1.53 912828X70 US Treasury Note 1,250,000.00 03/23/2022 1,245,019.53 98.33 1,229,150.00 0.57% Aaa /AA+ 1.84 2.000% Due 04/30/2024 2.19% 1,245,661.54 2.94% 4,211.96 (16,511.54) AAA 1.78 912828WJ5 US Treasury Note 1,000,000.00 04/25/2022 998,593.75 99.18 991,836.00 0.46% Aaa / AA+ 1.88 2.500% Due 05/15/2024 2.57% 998,717.50 2.95% 3,192.93 (6,881.50) AAA 1.81 91282CCL3 US Treasury Note 1,250,000.00 03/23/2022 1,197,802.73 94.94 1,186,718.75 0.55% Aaa /AA+ 2.04 0.375% Due 07/15/2024 2.24% 1,203,925.40 2.95% 2,162.47 (17,206.65) AAA 2.00 9128282U3 US Treasury Note 1,250,000.00 03/23/2022 1,238,085.94 97.73 1,221,582.50 0.57% Aaa /AA+ 2.17 1.875% Due 08/31/2024 2.28% 1,239,409.72 2.96% 7,833.73 (17,827.22) AAA 2.09 912828YM6 US Treasury Note 1,250,000.00 03/23/2022 1,224,902.34 96.70 1,208,691.25 0.56% Aaa /AA+ 2.34 1.500% Due 10/31/2024 2.30% 1,227,512.29 2.98% 3,158.97 (18,821.04) AAA 2.26 912828YV6 US Treasury Note 1,250,000.00 03/23/2022 1,223,486.33 96.55 1,206,885.00 0.56% Aaa /AA+ 2.42 1.500% Due 11/30/2024 2.32% 1,226,159.30 2.99% 1,588.11 (19,274.30) AAA 2.35 912828YYO US Treasury Note 1,300,000.00 05/18/2022 1,263,335.94 97.00 1,261,050.70 0.59% Aaa / AA+ 2.51 1.750% Due 12/31/2024 2.88% 1,264,983.33 3.00% 61.82 (3,932.63) AAA 2.42 91282CBH3 US Treasury Note 2,000,000.00 04/27/2021 1,957,500.00 91.04 1,820,782.00 0.85% Aaa /AA+ 3.59 0.375% Due 01/31/2026 0.83% 1,967,984.47 3.03% 3,128.45 (147,202.47) AAA 3.50 32 Qj DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Holdings Report City of Tustin Consolidated Account - Account #10795 As of June 30, 2022 91282CBT7 US Treasury Note 2,000,000.00 04/27/2021 1,989,531.25 91.96 1,839,296.00 0.86% Aaa / AA+ 3.75 0.750% Due 03/31/2026 0.86% 1,992,029.08 3.03% 3,770.49 (152,733.08) AAA 3.64 49,828,228.53 49,241,055.60 22.95% Aaa / AA+ 1.06 TOTAL US Treasury 50,050,000.00 1.47% 49,843,220.92 2.51% 122,311.86 (602,165.32) Aaa 1.04 216,952,863.12 214,561,037.61 100.00% Aa2 / AA 0.73 TOTAL PORTFOLIO 217,177,988.49 1.30% 216,973,759.84 1.80% 498,008.13 (2,412,722.23) Aaa 0.70 TOTAL MARKET VALUE PLUS ACCRUALS 215,059,045.74 33 C`„ DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Section 5 1 Transactions 34 C� DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Transaction Ledger City of Tustin Consolidated Account - Account #10795 March 31, 2022 through June 30, 2022 ACQUISITIONS As of June 30, 2022 Purchase 04/05/2022 62479MJ20 4,000,000.00 MUFG Bank Ltd/NY Discount CP 99.471 1.29% 3,978,833.33 0.00 3,978,833.33 0.00 1.27% Due: 09/02/2022 Purchase 04/05/2022 780ISDL73 4,000,000.00 Royal Bank of Canada NY Discount CP 99.058 1.60% 3,962,320.00 0.00 3,962,320.00 0.00 1.57% Due: 11/07/2022 Purchase 04/06/2022 46640QM65 2,000,000.00 JP Morgan Discount CP 98.827 1.77% 1,976,548.89 0.00 1,976,548.89 0.00 1.73% Due: 12/06/2022 Purchase 04/06/2022 89114WU86 2,400,000.00 Toronto Dominion Yankee CD 100.000 1.45% 2,400,000.00 0.00 2,400,000.00 0.00 1.45% Due: 10/06/2022 Purchase 04/07/2022 69371RR73 1,000,000.00 Paccar Financial Corp Note 99.974 2.86% 999,740.00 0.00 999,740.00 0.00 2.85% Due: 04/07/2025 Purchase 04/15/2022 90LAIF$00 66,544.39 Local Agency Investment Fund State Pool 1.000 0.42% 66,544.39 0.00 66,544.39 0.00 Purchase 04/21/2022 3137BDCW4 1,000,000.00 FHLMC K039 A2 100.797 2.75% 1,007,968.75 1,835.00 1,009,803.75 0.00 3.303% Due: 07/25/2024 Purchase 04/26/2022 912828T91 1,200,000.00 US Treasury Note 98.941 2.34% 1,187,296.88 9,534.53 1,196,831.41 0.00 1.625% Due: 10/31/2023 Purchase 04/26/2022 912828W15 1,000,000.00 US Treasury Note 99.859 2.57% 998,593.75 11,187.85 1,009,781.60 0.00 2.5% Due: 05/15/2024 Purchase 04/27/2022 26442UAA2 1,000,000.00 Duke Energy Progress LLC Callable Note Cont 100.028 3.24% 1,000,280.00 6,500.00 1,006,780.00 0.00 5/15/25 3.25% Due: 08/15/2025 Purchase 04/27/2022 79466LAG9 1,000,000.00 Salesforce.com Inc Callable Note Cont 7/15/2022 95.186 2.88% 951,860.00 1,770.83 953,630.83 0.00 0.625% Due: 07/15/2024 Purchase 04/30/2022 90CAMP$00 745.46 California Asset Mgmt Program CAMP 1.000 0.52% 745.46 0.00 745.46 0.00 Purchase 05/19/2022 9128282D1 1,300,000.00 US Treasury Note 98.707 2.40% 1,283,191.41 3,885.87 1,287,077.28 0.00 1.375% Due: 08/31/2023 Purchase 05/19/2022 912828YY0 1,300,000.00 US Treasury Note 97.180 2.88% 1,263,335.94 8,735.50 1,272,071.44 0.00 1.75% Due: 12/31/2024 Purchase 05/31/2022 90CAMP$00 4,788.66 California Asset Mgmt Program CAMP 1.000 0.91% 4,788.66 0.00 4,788.66 0.00 Purchase 06/03/2022 61747YEQ4 1,000,000.00 Morgan Stanley Callable Note S/A 4/17/2024 100.091 3.28% 1,000,910.00 4,323.89 1,005,233.89 0.00 3.62% Due: 04/17/2025 35 C`„ DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Transaction Ledger City of Tustin Consolidated Account - Account #10795 March 31, 2022 through June 30, 2022 As of June 30, 2022 Type Date X4&d11L1Lf aCL.LFRf ZCM.11,tLIA11 rFILC Yield AMI&FIL Pur/Sold I &Ldl AFTI&MIL &,dIF11 Llbb Purchase 06/30/2022 90CAMP$00 13,020.99 California Asset Mgmt Program CAMP 1.000 1.40% 13,020.99 0.00 13,020.99 0.00 Subtotal 22,285,099.50 22,095,978.45 47,773.47 22,143,751.92 0.00 Security 04/04/2022 90LAIF$00 6,000,000.00 Local Agency Investment Fund State Pool 1.000 6,000,000.00 0.00 6,000,000.00 0.00 Contribution Security 05/24/2022 90CAMP$00 4,000,000.00 California Asset Mgmt Program CAMP 1.000 4,000,000.00 0.00 4,000,000.00 0.00 Contribution Security 06/07/2022 90LAIF$00 3,323,000.00 Local Agency Investment Fund State Pool 1.000 3,323,000.00 0.00 3,323,000.00 0.00 Contribution Security 06/30/2022 90CAMP$00 5,000,000.00 California Asset Mgmt Program CAMP 1.000 5,000,000.00 0.00 5,000,000.00 0.00 Contribution Subtotal 18,323,000.00 18,323,000.00 0.00 18,323,000.00 0.00 TOTAL ACQUISITIONS 40,608,099.50 40,418,978.45 47,773.47 40,466,751.92 0.00 DISPOSITIONS Maturity 04/01/2022 13063DADO 1,000,000.00 California State TE -GO 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.367% Due: 04/01/2022 Maturity 04/21/2022 15118RMF1 248,000.00 Celtic Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 2.1% Due: 04/21/2022 Maturity 04/26/2022 3130AB3U8 4,000,000.00 FHLB Callable Note 1X 4/26/2019 100.000 4,000,000.00 0.00 4,000,000.00 0.00 2.1% Due: 04/26/2022 Maturity 05/09/2022 32063KAS1 248,000.00 First Jackson Bank Inc Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 2.05% Due: 05/09/2022 Maturity 05/11/2022 037833CQ1 2,000,000.00 Apple Inc Callable Note Cont 4/11/2022 100.000 2,000,000.00 0.00 2,000,000.00 0.00 2.3% Due: 05/11/2022 36 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Transaction Ledger As of June 30, 2022 City of Tustin Consolidated Account - Account #10795 March 31, 2022 through June 30, 2022 Maturity 05/25/2022 3134GBMB5 1,000,000.00 FHLMC Callable Note 1X 5/25/2018 100.000 1,000,000.00 0.00 1,000,000.00 0.00 2.05% Due: 05/25/2022 Maturity 06/23/2022 25590AAH3 248,000.00 DNB First NA Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 2% Due: 06/23/2022 Maturity 06/28/2022 894333FF5 248,000.00 Traverse City State Bank Negotiable CD 100.000 248,000.00 0.00 248,000.00 0.00 2% Due: 06/28/2022 Subtotal 8,992,000.00 8,992,000.00 0.00 8,992,000.00 0.00 Security 04/21/2022 90LAIF$00 6,000,000.00 Local Agency Investment Fund State Pool 1.000 6,000,000.00 0.00 6,000,000.00 0.00 Withdrawal Security 04/30/2022 90CAMP$00 1,265,000.00 California Asset Mgmt Program CAMP 1.000 1,265,000.00 0.00 1,265,000.00 0.00 Withdrawal Subtotal 7,265,000.00 7,265,000.00 0.00 7,265,000.00 0.00 TOTAL DISPOSITIONS 16,257,000.00 16,257,000.00 0.00 16,257,000.00 0.00 37 Q11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C IImportant Disclosures As of June 30, 2022 2022 Chandler Asset Management, Inc, An Independent Registered Investment Adviser Information contained herein is confidential. Prices are provided by ICE Data Services Inc ("IDS"), an independent pricing source. In the event IDS 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. 38 C`'11 DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C Benchmark Disclosures As of June 30, 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. 39 c�►: DocuSign Envelope ID: E82E5848-CC4F-48C5-8B36-73A2C882ED6C CITY OF TUSTIN Monthly Investment Report June 30, 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 19.45 N/A 19.45 19.45 2012 Water Revenue Bonds - Refunding 51.53 N/A 51.53 51.53 2020 Water Revenue Bonds 8.30 N/A 8.30 8.30 CFD 04-1 1,138,696.59 N/A 1,138,696.59 1,138,696.59 CFD 06-1 6,583,609.72 N/A 6,583,609.72 6,583,609.72 CFD 07-1 1,864,560.08 N/A 1,864,560.08 1,864,560.08 CFD 14-1 5,027,257.64 N/A 5,027,257.64 5,027,257.64 14,614,205.80 14,614,205.80 14,614,205.80 Restricted Deposits with Fiscal Agents TOTAL 14,614,205.80 14,614,205.80 DocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN Account Report for the Period PARS Post -Employment Benefits Trust 6/1/2022 to 6/30/2022 Matthew West City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Investment Return Annualized Return Source 1-1month 3 -Months 1 -Year 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB -4.35% -9.23% -11.23% 3.74% 6/26/2018 PENSION -4.35% -9.23% -11.22% 3.64% 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 6/1/2022 Contributions Earnings Expenses Distributions Transfers 6/30/2022 OPEB $2,861,767.59 $0.00 -$124,395.22 $1,239.99 $0.00 $0.00 $2,736,132.38 PENSION $8,709,765.26 $0.00 -$378,752.28 $3,772.83 $0.00 $0.00 $8,327,240.15 Totals $11,571,532.85 $0.00 -$503,147.50 $5,012.82 $0.00 $0.00 $11,063,372.53 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 1-1month 3 -Months 1 -Year 3 -Years 5 -Years 10 -Years Plan's Inception Date OPEB -4.35% -9.23% -11.23% 3.74% 6/26/2018 PENSION -4.35% -9.23% -11.22% 3.64% 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