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HomeMy WebLinkAbout05 QUARTERLY INVESTMENT REPORTDocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Agenda Item 5— Reviewed: Ds '' ` - AGENDA REPORT City Manager Finance Director MEETING DATE: NOVEMBER 7, 2023 TO: NICOLE BERNARD, ACTING CITY MANAGER FROM: JENNIFER KING, 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 SEPTEMBER 30, 2023 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 ensure 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 September 30, 2023 is rendered. The City's total cash and investments amounted to approximately $213 million as of September 30, 2023. The weighted average yield for the investment portfolio was 4.3%, which is 30 basis points higher than the weighted average portfolio yield for the prior quarter. The primary reason for the increase in the average portfolio yield is due to continuing upward movement in shorter -term Treasury bonds. The Federal Open Market Committee (FOMC) maintained the target Federal Funds rate in the current range of 5.25%-5.50% at its September meeting. However, the labor market remains robust and the national unemployment rate low at 3.8%. The FOMC continues to focus on bringing down the inflation growth toward their 2% target, which leaves the option open for more rate hikes in the future. As a result, the 2-year Treasury yield increased to 5.05% by September 2023, compared to a yield of 4.9% in June 2023. The 5-year Treasury yield increased to 4.61% by September 2023, compared to a yield of 4.16% in June 2023. DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Quarterly Investment Report for the Period Ending September 30, 2023 Page 2 of 2 PARS Pension Trust Since 2018, the City has made contributions totaling $9.6 million into a Pension Trust, which is held by Public Agency Retirement Services (PARS). A Pension Trust provides 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 $10.6 million on September 30, 2023. The five-year annualized return for the PARS Pension Trust Fund was 3.73%. PARS OPEB Trust The City has also made $3 million in contributions into an Other Post -Employment Benefits (OPEB) Trust since the trust's inception. 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 $3.3 million on September 30, 2023. The five-year annualized return for the PARS OPEB Trust Fund was 3.71 %. Investment Compliance Certification On October 26, 2023, 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 six (6) 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. Jennifer King Finance Director/City Treasurer Attachments: Investment Report Certification Quarterly Investment Report for the Period Ending September 30, 2023 Restricted Deposits with Fiscal Agents as of September 30, 2023 PARS Trust Statement as of September 30, 2023 DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F FINANCE DEPARTMENT Remembering what connects us. October 26, 2023 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 September 30, 2023 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, Jered Elmore, Chair City of Tustin Audit Commission Jennifer King, Finance Director City of Tustin 300 Centennial Way, Tustin, CA 92780 • 714-573-3060 • tustinca.org DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F INVESTMENT REPORT City of Tustin Period Ending September 30, 2023 CHANDLER it% ASSET MANAGEMENT CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F ITable of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 Economic Update Account Profile Consolidated Information Portfolio Holdings Transactions As of September 30, 2023 1 Q,tj V 111111 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Section 1 1 Economic Update 2 C►1 DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Economic Update Recent economic data continues to suggest positive but below trend growth this year. Labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Inflationary trends are subsiding, but core levels remain well above the Fed's target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will remain data dependent as they tread cautiously going forward. ■ As anticipated at the September meeting, the Federal Open Market Committee voted unanimously to maintain the target Federal Funds at the range of 5.25 - 5.50%. The Fed's Summary of Economic Projections (SEP) also revealed expectations of higher economic growth, reduced unemployment, and a gradual easing of inflation compared to earlier forecasts. The Fed is continuing to focus on achieving price stability and bringing inflation down toward their 2% policy objective, while leaving the option open for the possibility of additional rate hikes in the future if needed. ■ The yield curve remained inverted in September. The 2-year Treasury yield increased 18 basis points to 5.05%, the 5-year Treasury yield rose 36 basis points to 4.61%, and the 10-year Treasury yield increased 46 basis points to 4.57%. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -48 basis points at September month -end versus -76 basis points at August month - end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -45 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in August. The shape of the yield curve indicates that the probability of recession persists. 3 QtJ DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Employment 1,000 0 0 600 M o 400 0 s H lkIII av ho c s 0 U 0 -200 -400 Nonfarm Payroll (000's) sip �dr sPb �dr sip 1�p 19 1'9 �0 �� Source: US Department of Labor a c� 25.0% 20.0% 15.0% 10.0% 5.0 % Unemployment Rate 0.0 % Sip` SOb 2ldr, SP;0 �dr, Spa` l,9 _,,9 �p _O Source: US Department of Labor Underemployment Rate (U6) Unemployment Rate (U3) 2ldr SPA` 2ldr Sip` �dr, S�,�` The U.S. economy added 336,000 jobs in September, exceeding consensus expectations of 170,000, and the last two months were revised upward by 119,000 jobs. The largest gains came from leisure and hospitality, bringing restaurant and bar employment back in -line with pre -pandemic levels. The pace of job growth has picked up recently, with the three-month moving average payrolls at 266,000 and the six- month moving average at 234,000. The unemployment rate was unchanged at 3.8%, and the labor participation rate was consistent with last month's report at 62.8%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons declined slightly to 7.0% from the prior month at 7.1%. Average hourly earnings declined to 4.2% year -over -year in September from 4.3% in August. Employment remains strong by historical standards. AM 4 %rIT& k, DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F IJob Openings & Labor Turnover Survey 14,000 Recession 12,000 Historical Average 10,000 JA 0 0 8,000 c M c 6,000 s F c 4,000 2,000 Job Openings 0 a°'O 6°'O 6°'O 6°'O a°'O a°'O 6°'O a°'.l e° Z e° l e° 1 e° 1 ",-Is a° 1 6° 1 6° I6Q 6° Z 6°� 6°� .�' V S 6 � cQ 9 O .l � .>' A 6 9 O .l Source: US Department of Labor The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) unexpectedly increased to 9.61 million in August from a revised 8.92 million in July. The level significantly surpassed the survey of Bloomberg economists' expectations of 8.82 million and reflects approximately 1.5 job openings per available worker. Although JOLTS was an upside surprise, the quits rate remained at a benign 2.3% for August, well below its 3.0% peak in April 2022. Fewer quits can imply that workers are less confident in their ability to find another job in the current market. The current level of job openings remains elevated from a historical perspective. DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Inflation 10.0% 9.0 % 8.0 % 7.0 % a 6.0% 5.0 % 0 >- 4.0 % 0 3.0 % 2.0 % 1.0 % 0.0 % Consumer Price Index (CPI) 10.0% 9.0 % 8.0 % 7.0 % r 6.0% M 5.0 % 0 } 4.0 % 0 ' 3.0 % 2.0 % 1.0 % 0.0 % Personal Consumption Expenditures (PCE) q�,g �0,6 q�,� x1,6 9`� �06 q�,g �0,6 q�,� �06��°b �G� ��°b 9`� ��°b q�,� ��°b q�,g ��°6 q�,g jcP _,9 l9 �O �O �1 �1 �� �� �a' �.3' jcP j9 j9 �O �O Source: US Department of Labor Source: US Department of Commerce The Consumer Price Index (CPI) increased in August by 0.6% month -over -month and 3.7% year -over -year, accelerating from 3.2% year -over - year in July due to surging energy prices. The Core CPI, which excludes volatile food and energy components, was up 0.3% month -over - month and 4.3%year-over-year, decelerating from 4.7% last month. Shelter remained the largest contributor to the Core CPI increase. The Personal Consumption Expenditures (PCE) index rose 0.4% month -over -month and 3.5% year -over -year in August, up from a 3.4% year - over -year gain in July. Core PCE, the Federal Reserve's preferred inflation gauge, increased just 0.1% month -over -month and 3.9% year - over -year in August, down from a 4.3% increase in July. Personal income and spending remained relatively healthy, but the personal savings rate continued its declining trend to 3.9% in August from 4.1% in July. Inflation remains above the Fed's 2%target. 6 C�� DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Consumer 60.0% 50.0% 40.0% 30.0% ou s 20.0% 10.0% } 0 } 0.0% -10.0% -20.0% -30.0% Retail Sales YOY % Change 140 130 120 a J 110 x a� 100 90 Consumer Confidence 80 �� '_7 �4g19 �06' 9���0 A0,6 �g�1 ��b�� 94g�� �P6��' 94g��' SPp 18 2ld��9`SPb�9 �d~�psPa�O �d ~�j sPa�1 �d��� sP��� ��r�.�' SPp��' Source: US Department of Commerce Source: The Conference Board Retail Sales rose 0.6% in August, exceeding the consensus forecast. Sales of motor vehicles and higher gasoline prices drove greater than expected gains. However, Control Group Sales, which are used to calculate gross domestic product and exclude food services, auto dealers, building materials stores and gasoline stations, rose just 0.1%, the smallest advance in five months. On a year -over -year basis, retail sales growth decelerated to a 2.5% gain in August versus a downwardly revised 2.6% gain in July. The Conference Board's Consumer Confidence Index dropped more than expected to 103.0 in September from an upwardly revised 108.7 in August, primarily due to significantly weaker future expectations for employment. While the consumer has been resilient, dwindling excess savings, rising credit card balances, and the resumption of student loan payments pose potential headwinds to future economic growth. 7 DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Leading Indicators of Economic Activity 20.0% 15.0% 10.0% 5.0 M 0.0 -5.0% o -10.0% -15.0% -20.0% -25.0% Leading Economic Indicators (LEI) 1�1 14, 14 q4 10 14 10 10 14 10 q4 � & a°'& a°'9 a°9 a°'9 g0 a°'O 11" a° 1 a° 7 �� �' � 1 S 9 .9 � .l S 9 )9 Source: The Conference Board Chicago Fed National Activity Index (CFNAI) 1.00 0.75 0.50 a M0 0.25 v a 0.00 c 0 -0.25 M -0.50 -0.75 -1.00 q4g q�g q4g qua° a° a°' q�g q4g 8�, 8j 91 s 99 O�, O) 11 Source: Federal Reserve Bank of Chicago The Conference Board's Leading Economic Index (LEI) remained in negative territory for the seventeenth consecutive month at -0.4% in August due to weak new orders, deteriorating consumer expectations of business conditions, high interest rates, and tight credit conditions. The index declined 7.6% year -over -year. The consistent decline month -over -month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) surprised to the downside at -0.16 in August from downwardly revised 0.07 in July. On a 3-month moving average basis, the CFNAI remained negative at -0.14 in August, indicating a rate of growth below the historical average trend. 8 C� DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Housing 2,400 2,200 2,000 1,800 1,600 to 1,400 1,200 c 1,000 800 11 i�I� 400 200 0 Annualized Housing Starts ■ Multi Family Housing Starts ■Single Family Housing Starts A 94 154 q4 q4 14 �0 gO "'O �'O a' S � 9 Source: US Department of Commerce 24.0% 20.0% 16.0% 12.0% 8.0% s 4.0 % v 0.0 % o -4.0% -8.0% -12.0% -16.0% -20.0% S&P/Case-Shiller 20 City Composite Home Price Index VS Os Oj 00 1? ,7S ds• > dy Source: S&P Starts of new homes slowed -11.3% to 1.283 million units at a seasonally adjusted annual rate in August after a downward revision to 1.447 million units in July. The slower starts came from both a 4.3% decline in single-family home starts and 26.3% decline in multi -family homes, continuing the reversal of strong multi -family homebuilding in the second half of 2022 and early 2023. Total starts of new homes are down 14.8% year -over -year. According to Freddie Mac, average 30-year fixed rate mortgage rates increased to 7.35% as of September 28th. Rising mortgage rates are prompting homebuilders to offer incentives to attract buyers and has caused homebuilder sentiment to reach a five -month low. According to the Case-Shiller 20-City Home Price Index, housing prices rose 0.1% year -over -year in July, improving from a 1.2% decline in June. Tight inventories and higher mortgage rates continue to impact affordability. DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Survey Based Measures 70 ISM Manufacturing 65 .1, Institute of Supply Management (ISM) Surveys ISM Services 55 50 / \1 45 40 I , EXPANDING ' 1 P 6P Zj '/l/ SP 6 'j ' '�' SP 0 � ✓& SP 6 47 ✓�/ SP QP /� ✓�/ SP p jcQ c jcQ dv19 � 79 "79 "is d~�p �O p>O c>0 d��z �,I Source: Institute for Supply Management The Institute for Supply Management (ISM) Manufacturing index remained in contraction territory at 49.0 in September, up from 47.6 in August. This is the eleventh consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector. However, this is the highest reading since November 2022, as both employment and new orders improved, while prices paid subsided. The ISM Services Index eased to 53.6 in September from the six-month high of 54.5 in August. The prices paid component continued to grow primarily due to high labor costs and an uptick in energy costs, but new orders reflected a significant slowdown. 10 C11 DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F IGross Domestic Product (GDP) 're= O .1 MWY#WV M Personal Consumption Expenditures 1.1% 0.8% 2.5% Gross Private Domestic Investment -1.5% 0.6% -1.7% Net Exports and Imports 2.6% 0.3% 0.6% Federal Government Expenditures 0.1% 0.6% 0.3% State and Local (Consumption and Gross 0.4% 0.3% 0.5% Investment) Total Source: US Department of Commerce 2.7% 2.6% 2.3% Gross Domestic Product (GDP) M 40.0% 30.0% 0.6% 20.0% 0 0. 0 10.0% 0.0% 0.0% ■ _ 1 I ■ _ -10.0% 0.1% -20.0% GDP QOQ % Change 0.5% -30.0% GDP YOY %Change -40.0% 2.1% cle 1& 1& _70 70 �p �0 �l �1 �? 2� Source: US Department of Commerce According to the third estimate, second quarter annualized GDP growth remained unchanged at 2.1%. A material decline in consumer spending was offset by improvement in business investment. Historically low unemployment, wage growth and savings built up during the pandemic has supported consumer spending at a level to keep economic growth intact, but there are signs the consumer is beginning to show signs of stress. The consensus estimate calls for 3.0% growth for the third quarter and 2.1% for the full year 2023. 11 C,, DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Federal Reserve 10,000,000 9,000,000 8,000,000 7,000,000 c 6,000,000 5,000,000 c 4,000,000 3,000,000 2,000,000 1,000,000 0 Federal Reserve Balance Sheet Assets SSSS pO,p OSp Op 0> 9 Source: Federal Reserve Sop Sop Sop Sop 11 1S 'lS 1) Effective Federal Funds Rate 6.00% 5.00% 4.00% v 3.00% ►�iI�Y�.! 1.00% 0.00% S S S So So So So So So So So So So So % op, op, p0 pO p0 p0 b1 b1 b1 61 61 1,g �l �S a' S 9 1 3' S 9 Source: Bloomberg At the September meeting, the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 - 5.50%. Nonetheless, the Fed conveyed a consensus view that another rate hike is possible later in the year, along with its commitment to keeping rates at their current level until inflation subsides closer to its 2% target, endorsing a data -dependent 'higher -for - longer' strategy. The Fed's Summary of Economic Projections (SEP) also revealed expectations of higher economic growth, reduced unemployment, and a gradual easing of inflation compared to earlier forecasts. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for or will tighten policy further to curb inflation. Since the Federal Reserve began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1 trillion to $8.024T. 12 cIT&k, DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Bond Yields US Treasury Note Yields 6.0% 6.0% • 2-Year 5.0% 5-Year 5.0% 4.0% 0 -a 3.0% v r 2.0% 1.0% 0.0% 4.0% US Treasury Yield Curve 2.0% Sep-23 1.0% Jun-23 • Sep-22 0.0% sib. ��'r, SPA �dr, S�� �dr, S0,0 �0/, SPb, �dr, .S�a .�' 6n_ S l .7' 1� 1g s �p �O 11 �1 �� �� �3 �.y' 270 470 yr Syr Syr Source: Bloomberg Source: Bloomberg At the end of September, the 2-year Treasury yield was 77 basis points higher, and the 10-Year Treasury yield was about 74 basis points higher, year -over -year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -48 basis points at September month -end versus -76 basis points at August month -end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in August. The shape of the yield curve indicates that the probability of recession persists. 13 C>♦, V 14 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F �ft� Section 2 I Account Profile 14 c►® DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Objectives Investment Objectives As of September 30, 2023 The investment objectives of the City of Tustin are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return. Chandler Asset Management Performance Objective The performance objective for the accounts is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 15 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Icompliance As of September 30, 2023 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 limit; 5 years max maturity Complies Federal Agencies 50% max per issuer; 5 years max maturity Complies "AA" rated or better by a NRSRO; 5% max; 5% max per issuer; 5 years max maturity; USD denominated senior unsecured Supranational Obligations unsubordinated obligations issued or unconditionally guaranteed byoneof the three supranational bankinggroups: IBIRD, IFC, and Complies IADB; Supranational securities will not bepurchased until further noticefromstaffattheCityofTustin. Municipal Securities (CA, Other States) 30% max; 5% max per issuer; 5 years max maturity Complies "A" rating or better by a NRSRO; 30% max; 5% max per issuer; 10% max of any single issuer (combined issuer limitation of a local agency's investments in commercial paper and medium -term notes); 5 years max maturity; Obligations of domestic corporation Corporate Medium Term Notes or depository institution; If the credit rating of a security is downgraded below the minimum rating level for a new investment of Complies thatsecurity, the Treasurer shall evaluatethe downgrade on a case -by -case basis to determine if the security should be held or sold. Agency Mortgage Pass -Through "AA" rated or better by a NRSRO; 20% max; 10% max per issuer; 5 years max maturity; Only invest in mortgage pass -through Complies Securities securities that are guaranteed by U.S. government or a government -sponsored enterprise 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" NCD long-term rating category or higher a NRSRO; 30% max; 5% max per issuer; 5 ears max maturityComplies ( ) g- g g Y g Y ° ° p Y 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; 5 years max maturity; All active (checking/savings accounts) and inactive (time or certificates of deposit) Certificates of Deposit above FDIC insured limits must be collateralized pursuantto California Government Code (CGC) Complies Bankers' Acceptances "A" rating or better by Moody's or equivalent rating by a NRSRO; 30% max; 5% max per issuer; 180 days maturity Complies A-1/P-1 rating or equivalent by a NRSRO, plus A longterm rating by a NRSRO; 30% max, 5% max per issuer; 10% max of any single issuer (combined issuer limitation of a local agency's investments in commercial paper and medium -term notes); 10% max outstandingfrom 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) I.Organized and operating in the U.S. Commercial Paper Complies as a general corporation; 2. Has total net assets >$500 million; 3. Has debt other than commercial paper, if any, that is "A" rating category or higher by a NRSRO; or (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 16Q DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Icompliance As of September 30, 2023 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 AAA or highest ranking of two of the three highest ranking NRSRO; Retain 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 amountwithdrawaI of $10 million or > needs 24-hour notice, and Local Agency Investment Fund (LAIF) Complies less than $10 million may be withdrawn the same day; Not used by investment adviser Local Government Investment Pool Max amount permitted by County Treasurer; Investment in OCIP is allowable accordingto guidelines in Government Code; Not used (LGI P)/ Complies by i nvestment a dvi ser Orange County Investment Pool (OCIP) 50% max per issuer; 5 years max maturity; Shares of beneficial interest issued by a joint powers' authority organized pursuantto Joint Powers Authority (JPA) Investment Section 6509.7 that invests in securities and obligations authorized in subdivisions (a) to (q), inclusive; The JPA must retain an Pools investment advisor that is SEC registered or exemptfrom registration with Assets >$500 million, and >5 years experience investing Complies in instruments authorized by CGC Repurchase Agreements 30% max; 5% max per issuer; 1 year max maturity; 102%Collateralized; Not used by investment adviser Complies I nverse floaters, range notes, mortgage derived interest -only strips; zero interest accrual if held to maturity; Reverse Repurchase Prohibited Agreements; Securities on margin, credit, or for other than full cash payment, and shall not be pledged as collateral; Purchase of Complies security with a forward settlement date>45 days from the time of investment; Supra national 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 from the date of settlement, unless authorized by City Council Complies The City of Tustin maintains adequate liquidity to coveratleastsix months of expected disbursements. 17 Q DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Portfolio Characteristics As of September 30, 2023 City of Tustin Consolidated Account Average Maturity (yrs) 2.65 0.66 0.61 Average Modified Duration 2.49 0.60 0.55 Average Purchase Yield n/a 4.30% 3.99% Average Market Yield 4.98% 5.23% 4.83% Average Quality" AA+ AAA/Aa2 AAA/Aa2 Total Market Value 212,892,918 225,870,050 *ICE BofA 1-5 Yr US Treasury & Agency Index **Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively. 18 C1, DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F I Sector Distribution September 30, 2023 US Treasury 16.6 % Money Market Fund 0.1% Negotiable CD 0.7% Local Gov Investment Poo, 47.7% City of Tustin Consolidated Account Agency 10.7% Cash 2.5 0/- CIVIC) 0.8% Commercial Paper 1.4% LAI F 4.6% Corporate 14.9 % 7— $22,852,863.85 $5,294,166.46 - $1,689,208.16 - $2,989,191.11 - $31,689,697.62 $9,897,983.70 - $101,472,898.50 - $292,341.70 $1,388,396.03 M $35,326,170.97 June 30, 2023 US Treasury Agency 14.4% 8 8% Money Market Fund 0.1% Negotiable CD 0.6 % Local Gov Investment Pool 47.8 % As of September 30, 2023 Cash 4.0% CMO 0.8% Commercial Paper 1.3 % Corporate 14.0% LAIF 8.2 % $19,934,713.88 $8,925,503.29 $1,695,227.38 $2,949,937.77 - $31,620,405.58 $18,491,959.31 $108,021,594.70 - $267,960.90 $1,394,412.67 $32,568,334.35 DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Portfolio Allocation & Duration Changes City of Tustin Consolidated Account Portfolio Allocation Local Gov 47.7% Investment Pool 47.8% US Treasury Corporate . 10.7% Agency 8.8% 4.7% LAIF 8.2% 2.5% Cash 4.0% Commercial 1.4% Paper A 1.3% 0.8% CMO 0.8% 0.7% Negotiable CD 0.6% Money Market 10.1% Fund 0.1% 16.6% 14.4% 1 14.9% 14.0% As of September 30, 2023 ■ 09/30/23 ■ 06/30/23 20 C►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Issuers City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 CAMP Local Gov Investment Pool 47.66% Government of United States US Treasury 16.59% Federal Home Loan Bank Agency 8.70% Local Agency Investment Fund LAIF 4.65% Bank Cash Account Cash 2.49% Federal Farm Credit Bank Agency 1.16% MUFG Bank Ltd/NY Commercial Paper 0.93% 1P Morgan Chase & Co Corporate 0.89% Federal National Mortgage Association Agency 0.87% Federal Home Loan Mortgage Corp CMO 0.79% US Bancorp Corporate 0.62% Morgan Stanley Corporate 0.47% Toyota Motor Corp Commercial Paper 0.47% Toyota Motor Corp Corporate 0.47% Florida Power and Light Corporate 0.46% Qualcomm Inc Corporate 0.46% Paccar Financial Corporate 0.46% Home Depot Corporate 0.46% Mass Mutual Insurance Corporate 0.46% Duke Energy Field Services Corporate 0.45% Target Corp Corporate 0.45% Salesforce.com Inc Corporate 0.45% Chubb Corporation Corporate 0.45% Northern Trust Corp Corporate 0.45% National Rural Utilities Corporate 0.45% New York Life Global Funding Corporate 0.45% Deere & Company Corporate 0.45% Metlife Inc Corporate 0.45% State Street Bank Corporate 0.44% Bank of Montreal Chicago Corporate 0.44% Bank of New York Corporate 0.44% Bank of America Corp Corporate 0.44% Pfizer Inc. Corporate 0.44% Caterpillar Inc Corporate 0.43% Toronto Dominion Holdings Corporate 0.43% United Health Group Inc Corporate 0.42% Amazon.com Inc Corporate 0.42% Charles Schwab Corp/The Corporate 0.42% 21 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Issuers City of Tustin Consolidated Account — Account #10795 As of September 30, 2023 Royal Bank of Canada Corporate 0.42% Wal-Mart Stores Corporate 0.38% Northwestern Mutual Glbl Corporate 0.32% Public Service El & Gas Corporate 0.27% MasterCard Inc Corporate 0.22% Colgate-Palmolive Co. Corporate 0.16% First American Govt Oblig Fund Money Market Fund 0.14% Delaware State Police FCU Negotiable CD 0.11% Capital One Negotiable CD 0.11% Ally Bank Negotiable CD 0.11% Synchrony Financial Negotiable CD 0.11% Discover Financial Services Negotiable CD 0.11% Goldman Sachs Inc. Negotiable CD 0.10% TOTAL 100.00% 22 C►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F IMaturity Distribution As of September30, 2023 $140, 000, 000. ^^ $120, 000, 000, $100, 000, 000. $80, 000, 000, $60,000, 000. $40,000, 000. $20, 000, 000. $0. City of Tustin Consolidated Account 0-.25 25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity (Yrs) 23 Cjj-' DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Quality Distribution 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% MA 1 City of Tustin Consolidated Account September 30, 2023 vs. June 30, 2023 AA A ■ 09/30/23 <A 06/30/23 NR As of September 30, 2023 09/30/23 56.5% 22.6% 12.3% 0.0% 8.6% 06/30/23 54.9% 20.1% 11.5% 0.0% 13.5% Source: S&P Ratings 24 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F I Duration Distribution City of Tustin Consolidated Account September 30, 2023 vs. June 30, 2023 As of September 30, 2023 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% 0.0% 0-0.25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5+ ■ September 30, 2023 June 30, 2023 09/30/23 61.4% 4.8% 11.5% 12.8% 4.7% 2.3% 2.5% 0.0% 06/30/23 63.4% 6.0% 8.5% 14.4% 4.4% 2.0% 1.3% 0.0% 25 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Investment Performance City of Tustin Consolidated Account Total Rate of Return Annualized Since Inception November 30, 2020 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% ■ As of September 30, 2023 ■ -3.00% 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 Inception City of Tustin Consolidated Account 0.80% 3.32% 1.00% N/A N/A N/A 0.80% ICE BofA 1-5 Yr US Treasury & Agency Index 0.24% 2.14% -2.42% N/A N/A N/A -1.83% ICE BofA 1-3 Yr US Treasury & Agency Index 0.74% 2.49% -1.26% N/A N/A N/A -0.88% REALIZED RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Tustin Consolidated Account 1.06% 3.17% 2.05% N/A N/A N/A 1.71% Zb GIR Total rate of return: A measure of a portfolio's performance overtime. 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. Realized Rate of Return: A measure of a portfolio's return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio. V 14 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Section 3 1 Portfolio Holdings 27 C►1 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 313384NH8 FHLB Discount Note 3,000,000.00 03/29/2023 2,918,801.67 99.71 2,991,328.33 1.41% P-1/A-1+ 0.06 4.730% Due 10/23/2023 4.92% 2,991,328.33 4.92% 0.00 0.00 NR 0.06 3130ATBLO FHLB Note 2,250,000.00 09/08/2022 2,248,110.00 99.66 2,242,410.75 1.07% Aaa /AA+ 0.19 3.625% Due 12/08/2023 3.70% 2,249,717.54 5.37% 25,601.56 (7,306.79) NR 0.19 313384RB7 FHLB Discount Note 3,000,000.00 03/28/2023 2,894,053.33 98.87 2,965,973.33 1.39% P-1/A-1+ 0.24 4.640% Due 12/28/2023 4.84% 2,965,973.33 4.84% 0.00 0.00 NR 0.24 313384RR2 FHLB Discount Note 3,000,000.00 03/30/2023 2,890,366.67 98.70 2,960,900.00 1.39% P-1/A-1+ 0.28 4.600% Due 01/11/2024 4.80% 2,960,900.00 4.80% 0.00 0.00 NR 0.28 313384SV2 FHLB Discount Note 2,000,000.00 03/28/2023 1,919,244.44 98.34 1,966,777.78 0.92% P-1/A-1+ 0.36 4.600% Due 02/08/2024 4.81% 1,966,777.78 4.81% 0.00 0.00 NR 0.35 3130ARHG9 FHLB Note 1,250,000.00 03/24/2022 1,248,575.00 98.63 1,232,921.25 0.58% Aaa /AA+ 0.41 2.125% Due 02/28/2024 2.19% 1,249,696.81 5.51% 2,434.90 (16,775.56) NR 0.40 3133ENL40 FFCB Note 1,000,000.00 09/08/2022 997,520.00 98.15 981,485.00 0.46% Aaa /AA+ 0.96 3.500% Due 09/13/2024 3.63% 998,819.37 5.52% 1,750.00 (17,334.37) AA+ 0.92 3133XVDG3 FHLB Note 1,000,000.00 09/26/2022 998,060.00 98.97 989,700.00 0.47% Aaa /AA+ 0.96 4.375% Due 09/13/2024 4.48% 999,058.41 5.50% 2,187.50 (9,358.41) NR 0.92 3130APQ81 FHLB Callable Note Mnthly 12/8/2021 1,000,000.00 08/01/2022 954,220.00 95.13 951,322.00 0.45% Aaa /AA+ 1.11 1.000% Due 11/08/2024 3.11% 977,689.84 5.60% 3,972.22 (26,367.84) NR 1.07 313OAQF40 FHLB Note 1,000,000.00 08/01/2022 955,420.00 94.82 948,192.00 0.45% Aaa /AA+ 1.22 1.000% Due 12/20/2024 2.95% 977,172.58 5.44% 2,805.56 (28,980.58) NR 1.18 3135G04Z3 FNMA Note 2,000,000.00 04/12/2021 1,982,980.00 92.46 1,849,196.00 0.87% Aaa /AA+ 1.72 0.500% Due 06/17/2025 0.71% 1,993,029.16 5.15% 2,888.89 (143,833.16) AA+ 1.66 3130AWMN7 FHLB Note 1,250,000.00 07/26/2023 1,255,762.50 98.60 1,232,445.00 0.58% Aaa /AA+ 4.70 4.375% Due 06/09/2028 4.27% 1,255,561.22 4.71% 12,152.78 (23,116.22) NR 4.15 3133EPUN3 FFCB Note 1,500,000.00 08/29/2023 1,507,785.00 98.68 1,480,231.50 0.70% Aaa /AA+ 4.92 4.500% Due 08/28/2028 4.38% 1,507,652.69 4.80% 6,187.50 (27,421.19) NR 4.34 22,770,898.61 22,792,882.94 10.73% Aaa / AAA 1.04 TOTAL Agency 23,250,000.00 3.95% 23,093,377.06 5.06% 59,980.91 (300,494.12) AA+ 0.96 Cash CBGMMF$04 Citizens Business Bank Citizens Business Bank Cash 226,759.31 Various 226,759.31 1.00 226,759.31 0.11% NR/NR 0.00 0.00% 226,759.31 0.00% 0.00 0.00 NR 0.00 28 Qtj DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 CBGMMF$03 Citizens Business Bank Citizens Business Bank Cash 5,067,407.15 Various 5,067,407.15 1.00 5,067,407.15 2.38% NR/NR 0.00 0.00% 5,067,407.15 0.00% 0.00 0.00 NR 0.00 5,294,166.46 5,294,166.46 2.49% NR/NR 0.00 TOTAL Cash 5,294,166.46 0.00% 5,294,166.46 0.00% 0.00 0.00 NR 0.00 CMO 3137BDCW4 FHLMC K039 A2 998,389.82 04/19/2022 1,006,345.74 98.23 980,723.96 0.46% NR/NR 0.82 3.303% Due 07/25/2024 2.75% 1,001,107.93 5.82% 2,748.07 (20,383.97) AAA 0.62 3137FiG44 FHLMCK065A2 750,000.00 06/08/2023 719,560.55 93.83 703,709.25 0.33% NR/NR 3.57 3.243% Due 04/25/2027 4.42% 721,931.90 5.18% 2,026.88 (18,222.65) AAA 3.20 1,725,906.29 1,684,433.21 0.79% NR/NR 1.97 TOTAL CMO 1,748,389.82 3.45% 1,723,039.83 5.55% 4,774.95 (38,606.62) AAA 1.70 Commercial Paper 89233HX58 Toyota Motor Credit Discount CP 1,000,000.00 04/04/2023 973,973.33 99.94 999,431.11 0.47% P-1 / A-1+ 0.01 5.120% Due 10/05/2023 5.33% 999,431.11 5.33% 0.00 0.00 F-1 0.01 62479MY64 MUFG Bank Ltd/NY Discount CP 2,000,000.00 03/28/2023 1,936,853.33 99.49 1,989,760.00 0.93% P-1 / A-1 0.10 5.120% Due 11/06/2023 5.34% 1,989,760.00 5.34% 0.00 0.00 NR 0.10 2,910,826.66 2,989,191.11 1.40% P-1 / A-1 0.07 TOTAL Commercial Paper 3,000,000.00 5.33% 2,989,191.11 5.33% 0.00 0.00 F-1 0.07 Corporate 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022 1,000,000.00 04/25/2022 951,860.00 96.11 961,113.00 0.45% A2 / A+ 0.79 0.625% Due 07/15/2024 2.88% 982,883.56 5.72% 1,319.44 (21,770.56) NR 0.77 59217GEPO Metlife Note 1,000,000.00 01/18/2022 979,170.00 95.03 950,285.00 0.45% Aa3/AA- 0.99 0.700% Due 09/27/2024 1.49% 992,313.50 5.94% 77.78 (42,028.50) AA- 0.96 24422EVY2 John Deere Capital Corp Note 1,000,000.00 02/04/2022 985,080.00 94.76 947,600.00 0.45% A2 / A 1.28 1.250% Due 01/10/2025 1.78% 993,469.88 5.55% 2,812.50 (45,869.88) A+ 1.23 57629WCG3 Mass Mutual Global funding Note 1,000,000.00 03/23/2022 1,004,360.00 96.46 964,600.00 0.46% Aa3 / AA+ 1.28 2.950% Due 01/11/2025 2.79% 1,001,994.60 5.86% 6,555.56 (37,394.60) AA+ 1.22 64952WEK5 New York Life Global Note 1,000,000.00 01/18/2022 996,780.00 94.76 947,587.00 0.45% Aaa /AA+ 1.29 1.450% Due 01/14/2025 1.56% 998,608.61 5.72% 3,101.39 (51,021.61) AAA 1.24 63743HFC1 National Rural Utilities Note 1,000,000.00 03/23/2022 972,740.00 94.99 949,866.00 0.45% A2/A- 1.36 1.875% Due 02/07/2025 2.87% 987,148.86 5.78% 2,812.50 (37,282.86) A 1.30 29 Qtj DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 57636QAN4 MasterCard Inc Callable Note lx 02/03/2025 500,000.00 11/01/2021 515,365.00 95.30 476,513.00 0.22% Aa3 / A+ 1.42 2.000% Due 03/03/2025 1.06% 506,557.92 5.47% 777.78 (30,044.92) NR 1.37 69371RR73 Paccar Financial Corp Note 1,000,000.00 03/31/2022 999,740.00 96.01 960,144.00 0.46% Al / A+ 1.52 2.850% Due 04/07/2025 2.86% 999,868.58 5.62% 13,775.00 (39,724.58) NR 1.44 87612EBL9 Target Corp Callable Note Cont 4/15/25 1,000,000.00 02/04/2022 1,010,340.00 95.29 952,907.00 0.45% A2 / A 1.54 2.250% Due 04/15/2025 1.91% 1,005,000.93 5.48% 10,375.00 (52,093.93) A 1.47 437076CM2 Home Depot Callable Note Cont 3/15/2025 1,000,000.00 03/28/2022 995,620.00 96.04 960,436.00 0.46% A2 / A 1.54 2.700% Due 04/15/2025 2.85% 997,786.37 5.41% 12,450.00 (37,350.37) A 1.46 61747YEQ4 Morgan Stanley Callable Note S/A 4/17/2024 1,000,000.00 06/01/2022 1,000,910.00 98.43 984,256.00 0.47% Al/A- 1.55 3.620% Due 04/17/2025 4.58% 1,000,489.27 6.59% 16,491.11 (16,233.27) A+ 0.52 06406RAN7 Bank of NY Mellon Corp Callable Note Cont 3/24/2025 1,000,000.00 02/04/2022 989,120.00 93.72 937,199.00 0.44% Al / A 1.57 1.600% Due 04/24/2025 1.95% 994,694.72 5.85% 6,977.78 (57,495.72) AA- 1.50 06367WB85 Bank of Montreal Note 1,000,000.00 08/17/2021 1,034,530.00 93.85 938,499.00 0.44% A2/A- 1.59 1.850% Due 05/01/2025 0.90% 1,014,773.01 5.97% 7,708.33 (76,274.01) AA- 1.51 91159HHZ6 US Bancorp Callable Note Cont 4/11/2025 1,400,000.00 12/23/2021 1,406,818.00 93.28 1,305,935.40 0.62% A3 / A 1.62 1.450% Due 05/12/2025 1.30% 1,403,262.23 5.87% 7,838.06 (97,326.83) A 1.55 747525AFO Qualcomm Inc Callable Note Cont 2/20/2025 1,000,000.00 03/23/2022 1,018,960.00 96.78 967,812.00 0.46% A2 / A 1.64 3.450% Due 05/20/2025 2.82% 1,009,825.63 5.53% 12,554.17 (42,013.63) NR 1.54 717081EX7 Pfizer Inc. Callable Note Cont 4/28/2025 1,000,000.00 03/23/2022 945,010.00 92.64 926,441.00 0.44% Al / A+ 1.66 0.800% Due 05/28/2025 2.62% 971,319.87 5.49% 2,733.33 (44,878.87) A 1.60 66815L2J7 Northwestern Mutual Glbl Note 700,000.00 06/30/2022 703,738.00 97.09 679,648.90 0.32% Aaa /AA+ 1.75 4.000% Due 07/01/2025 3.81% 702,187.35 5.76% 7,000.00 (22,538.45) AAA 1.65 26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25 1,000,000.00 04/25/2022 1,000,280.00 96.04 960,388.00 0.45% Aa3 / A 1.88 3.250% Due 08/15/2025 3.24% 1,000,158.81 5.50% 4,152.78 (39,770.81) NR 1.78 194162AM5 Colgate Palmolive Co. Note 345,000.00 08/01/2022 344,682.60 96.23 331,993.16 0.16% Aa3 / AA- 1.88 3.100% Due 08/15/2025 3.13% 344,802.99 5.24% 1,366.58 (12,809.83) NR 1.78 89114QCK2 Toronto Dominion Bank Note 1,000,000.00 08/17/2021 993,000.00 91.01 910,115.00 0.43% Al/A 1.95 0.750% Due 09/11/2025 0.93% 996,646.23 5.69% 416.67 (86,531.23) AA- 1.88 14913R2H9 Caterpillar Financial Service Note 1,000,000.00 04/21/2021 991,780.00 90.80 907,991.00 0.43% A2 / A 2.12 0.800% Due 11/13/2025 0.98% 996,178.81 5.46% 3,066.67 (88,187.81) A+ 2.04 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1,000,000.00 Various 978,258.70 94.37 943,652.00 0.44% Al / A 2.36 1.746% Due 02/06/2026 3.68% 986,792.24 6.16% 2,667.50 (43,140.24) AA- 1.30 30 QVI DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025 1,000,000.00 04/20/2021 1,030,470.00 94.09 940,933.00 0.44% Al / A- 2.38 2.015% Due 02/13/2026 2.22% 1,015,009.68 6.59% 2,686.67 (74,076.68) AA- 1.31 46647PBK3 JP Morgan Chase & Co Callable Note Cont 4/22/2025 2,000,000.00 Various 2,072,110.00 93.86 1,877,210.00 0.89% Al / A- 2.56 2.083% Due 04/22/2026 2.33% 2,039,094.59 6.27% 18,399.84 (161,884.59) AA- 1.48 00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026 1,000,000.00 07/23/2021 1,102,780.00 94.85 948,506.00 0.45% A3 / A 2.59 3.350% Due 05/03/2026 1.13% 1,055,788.11 5.51% 13,772.22 (107,282.11) A 2.40 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026 1,000,000.00 05/12/2021 995,200.00 89.91 899,088.00 0.42% Al/AA 2.62 1.000% Due 05/12/2026 1.10% 997,489.47 5.17% 3,861.11 (98,401.47) AA- 2.51 808513BR5 Charles Schwab Corp Callable Note Cont 4/13/2026 1,000,000.00 07/23/2021 1,007,990.00 88.57 885,735.00 0.42% A2 / A- 2.62 1.150% Due 05/13/2026 0.98% 1,004,357.77 5.92% 4,408.33 (118,622.77) A 2.50 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1,000,000.00 07/28/2021 1,007,110.00 89.96 899,562.00 0.42% A2 / A+ 2.62 1.150% Due 05/15/2026 1.00% 1,003,888.15 5.30% 4,344.44 (104,326.15) A 2.51 78016EZT7 Royal Bank of Canada Note 1,000,000.00 07/28/2021 999,090.00 88.36 883,636.00 0.42% Al / A 2.79 1.150% Due 07/14/2026 1.17% 999,488.69 5.72% 2,459.72 (115,852.69) AA- 2.67 931142ERO Wal-Mart Stores Callable Note Cont 08/17/2026 900,000.00 09/22/2021 902,277.00 89.16 802,469.70 0.38% Aa2 / AA 2.97 1.050% Due 09/17/2026 1.00% 901,354.43 5.03% 367.50 (98,884.73) AA 2.85 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027 1,000,000.00 01/30/2023 986,540.00 94.59 945,929.00 0.45% A2 / A+ 3.61 4.000% Due 05/10/2027 4.35% 988,629.36 5.68% 15,666.67 (42,700.36) A+ 3.24 74456QBU9 Public Service El & Gas Callable Note Cont 02/01/28 600,000.00 06/29/2023 570,144.00 93.60 561,622.80 0.27% Al / A 4.59 3.700% Due 05/O1/2028 4.87% 571,715.37 5.29% 9,250.00 (10,092.57) NR 4.07 341081GN3 Florida Power and Light Callable Note Cont 3/15/2028 1,000,000.00 06/07/2023 987,550.00 96.42 964,249.00 0.46% Aa2 / A+ 4.63 4.400% Due 05/15/2028 4.69% 988,337.62 5.28% 16,255.56 (24,088.62) AA- 4.05 89236TLB9 Toyota Motor Credit Corp Note 1,000,000.00 09/26/2023 996,180.00 99.44 994,357.00 0.47% Al / A+ 4.95 5.250% Due 09/11/2028 5.34% 996,186.33 5.38% 2,916.67 (1,829.33) A+ 4.29 33,475,583.30 31,468,278.96 14.89% Al / A+ 2.16 TOTAL Corporate 33,445,000.00 2.36% 33,448,103.54 5.71% 221,418.66 (1,979,824.58) AA- 1.88 31 Q1 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 90LAIF$00 Local Agency Investment Fund State Pool 9,767,938.51 Various 9,767,938.51 1.00 9,767,938.51 4.65% NR/NR 0.00 3.61% 9,767,938.51 3.61% 130,045.19 0.00 NR 0.00 9,767,938.51 9,767,938.51 4.65% NR/NR 0.00 TOTAL LAIF 9,767,938.51 3.61% 9,767,938.51 3.61% 130,045.19 0.00 NR 0.00 Local Gov Investment Pool 90CAMP$00 California Asset Mgmt Program CAMP 101,472,898.49 Various 101,472,898.49 1.00 101,472,898.49 47.66% NR / AAA 0.00 5.52% 101,472,898.49 5.52% 0.00 0.00 NR 0.00 101,472,898.49 101,472,898.49 47.66% NR/AAA 0.00 TOTAL Local Gov Investment Pool 101,472,898.49 5.52% 101,472,898.49 5.52% 0.00 0.00 NR 0.00 Money Market Fund 31846V203 First American Govt Obligation Fund Class Y 133,570.22 Various 133,570.22 1.00 133,570.22 0.06% Aaa / AAA 0.00 4.94% 133,570.22 4.94% 0.00 0.00 AAA 0.00 31846V203 First American Govt Obligation Fund Class Y 158,771.48 Various 158,771.48 1.00 158,771.48 0.07% Aaa / AAA 0.00 4.94% 158,771.48 4.94% 0.00 0.00 AAA 0.00 292,341.70 292,341.70 0.14% Aaa / AAA 0.00 TOTAL Money Market Fund 292,341.70 4.94% 292,341.70 4.94% 0.00 0.00 AAA 0.00 Negotiable CD 246399AB5 Delaware State Police FCU Negotiable CD 246,000.00 03/29/2019 246,000.00 98.79 243,031.76 0.11% NR/NR 0.50 3.000% Due 03/29/2024 3.00% 246,000.00 5.50% 40.44 (2,968.24) NR 0.48 14042TJB4 Capital One Bank USA NA Negotiable CD 240,000.00 08/01/2022 239,640.00 96.26 231,017.76 0.11% NR/NR 1.85 3.450% Due 08/04/2025 3.50% 239,779.14 5.61% 1,338.41 (8,761.38) NR 1.75 02007GXF5 Ally Bank Negotiable CD 240,000.00 08/02/2022 239,280.00 96.17 230,809.20 0.11% NR/NR 1.85 3.400% Due 08/04/2025 3.51% 239,557.88 5.60% 1,296.66 (8,748.68) NR 1.75 87165EXE2 Synchrony Bank Negotiable CD 240,000.00 08/01/2022 239,640.00 96.17 230,797.44 0.11% NR/NR 1.85 3.400% Due 08/05/2025 3.45% 239,778.61 5.60% 1,274.30 (8,981.17) NR 1.75 254673P26 Discover Bank Negotiable CD 240,000.00 08/01/2022 239,280.00 96.15 230,762.88 0.11% NR/NR 1.86 3.400% Due 08/08/2025 3.51% 239,555.26 5.60% 1,207.23 (8,792.38) NR 1.76 38149MYS6 Goldman Sachs Bank USA Negotiable CD 245,000.00 08/17/2021 243,775.00 88.39 216,559.18 0.10% NR/NR 2.90 1.050% Due 08/25/2026 1.15% 244,289.55 5.42% 260.77 (27,730.37) NR 2.79 1,447,615.00 1,382,978.22 0.65% NR/NR 1.78 TOTAL Negotiable CD 1,451,000.00 3.01% 1,448,960.44 5.56% 5,417.81 (65,982.22) NR 1.69 32 Qtj DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Holdings Report City of Tustin Consolidated Account - Account #10795 As of September 30, 2023 912828T91 US Treasury Note 1,200,000.00 04/25/2022 1,187,296.88 99.70 1,196,440.80 0.57% Aaa/AA+ 0.08 1.625% Due 10/31/2023 2.34% 1,199,310.86 5.13% 8,160.33 (2,870.06) AA+ 0.08 912828U57 US Treasury Note 1,250,000.00 03/23/2022 1,251,416.02 99.45 1,243,176.25 0.59% Aaa/AA+ 0.17 2.125% Due 11/30/2023 2.06% 1,250,137.92 5.39% 8,926.74 (6,961.67) AA+ 0.17 912828V80 US Treasury Note 1,250,000.00 03/23/2022 1,252,832.03 98.96 1,236,962.50 0.58% Aaa/AA+ 0.34 2.250% Due 01/31/2024 2.12% 1,250,509.60 5.41% 4,738.45 (13,547.10) AA+ 0.33 91282CBR3 US Treasury Note 2,600,000.00 04/03/2023 2,495,187.50 97.72 2,540,688.80 1.19% Aaa/AA+ 0.46 0.250% Due 03/15/2024 4.66% 2,549,714.23 5.34% 285.71 (9,025.43) AA+ 0.45 91282CBV2 US Treasury Note 2,500,000.00 06/27/2023 2,403,125.00 97.32 2,432,910.00 1.14% Aaa/AA+ 0.54 0.375% Due 04/15/2024 5.40% 2,434,642.55 5.48% 4,328.89 (1,732.55) AA+ 0.53 912828X70 US Treasury Note 1,250,000.00 03/23/2022 1,245,019.53 98.03 1,225,391.25 0.58% Aaa/AA+ 0.58 2.000% Due 04/30/2024 2.19% 1,248,625.18 5.47% 10,461.96 (23,233.93) AA+ 0.56 912828WJ5 US Treasury Note 1,000,000.00 04/25/2022 998,593.75 98.21 982,070.00 0.47% Aaa/AA+ 0.62 2.500% Due 05/15/2024 2.57% 999,574.38 5.45% 9,442.93 (17,504.38) AA+ 0.60 912828XT2 US Treasury Note 2,500,000.00 06/27/2023 2,424,804.69 97.75 2,443,847.50 1.16% Aaa/AA+ 0.67 2.000% Due 05/31/2024 5.38% 2,445,939.47 5.47% 16,803.28 (2,091.97) AA+ 0.64 91282CCL3 US Treasury Note 1,250,000.00 03/23/2022 1,197,802.73 96.10 1,201,270.00 0.56% Aaa/AA+ 0.79 0.375% Due 07/15/2024 2.24% 1,232,188.61 5.48% 993.55 (30,918.61) AA+ 0.77 91282CFA4 US Treasury Note 2,500,000.00 08/18/2023 2,446,484.38 97.96 2,449,120.00 1.16% Aaa/AA+ 0.84 3.000% Due 07/31/2024 5.36% 2,452,844.21 5.52% 12,635.87 (3,724.21) AA+ 0.80 912797GK7 US Treasury Bill 2,500,000.00 08/18/2023 2,375,898.44 95.61 2,390,312.50 1.12% P-1/A-1+ 0.86 5.063% Due 08/08/2024 5.33% 2,390,312.50 5.33% 0.00 0.00 F-1+ 0.84 9128282U3 US Treasury Note 1,250,000.00 03/23/2022 1,238,085.94 96.80 1,210,010.00 0.57% Aaa/AA+ 0.92 1.875% Due 08/31/2024 2.28% 1,245,520.53 5.50% 1,996.05 (35,510.53) AA+ 0.89 912797GL5 US Treasury Bill 4,500,000.00 09/14/2023 4,271,826.25 95.16 4,282,081.25 2.01% P-1/A-1+ 0.93 5.128% Due 09/05/2024 5.41% 4,282,081.25 5.41% 0.00 0.00 F-1+ 0.91 912828YM6 US Treasury Note 1,250,000.00 03/23/2022 1,224,902.34 95.91 1,198,828.75 0.57% Aaa/AA+ 1.09 1.500% Due 10/31/2024 2.30% 1,239,560.22 5.44% 7,846.47 (40,731.47) AA+ 1.04 912828YV6 US Treasury Note 1,250,000.00 03/23/2022 1,223,486.33 95.68 1,195,947.50 0.56% Aaa/AA+ 1.17 1.500% Due 11/30/2024 2.32% 1,238,498.14 5.37% 6,301.23 (42,550.64) AA+ 1.12 912828YYO US Treasury Note 1,300,000.00 05/18/2022 1,263,335.94 95.68 1,243,836.10 0.59% Aaa/AA+ 1.25 1.750% Due 12/31/2024 2.88% 1,282,491.67 5.37% 5,749.32 (38,655.57) AA+ 1.20 91282CBH3 US Treasury Note 2,000,000.00 04/27/2021 1,957,500.00 90.02 1,800,390.00 0.85% Aaa/AA+ 2.34 0.375% Due 01/31/2026 0.83% 1,979,153.25 4.96% 1,263.59 (178,763.25) AA+ 2.27 33 QVI DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Holdings Report 91282CBT7 US Treasury Note 0.750% Due 03/31/2026 As of September 30, 2023 City of Tustin Consolidated Account - Account #10795 2,000,000.00 04/27/2021 1,989,531.25 90.43 1,808,594.00 0.85% Aaa/AA+ 2.50 0.86% 1,994,689.93 4.86% 40.98 (186,095.93) AA+ 2.42 91282CFM8 US Treasury Note 1,740,000.00 11/09/2022 1,724,978.91 97.92 1,703,773.20 0.80% Aaa/AA+ 4.00 4.125% Due 09/30/2027 4.32% 1,727,713.84 4.70% 196.11 (23,940.64) AA+ 3.64 91282CGH8 US Treasury Note 1,500,000.00 02/23/2023 1,458,281.25 95.43 1,431,504.00 0.68% Aaa/AA+ 4.34 3.500% Due 01/31/2028 4.13% 1,463,269.87 4.67% 8,845.11 (31,765.87) AA+ 3.94 35,630,389.16 35,217,154.40 16.59% Aaa / AA+ 1.20 TOTAL US Treasury 36,590,000.00 3.69% 35,906,778.21 5.30% 109,016.57 (689,623.81) AA+ 1.14 214,788,564.18 212,362,264.00 100.00% Aa2 / AAA 0.66 TOTAL PORTFOLIO 216,311,734.98 4.30% 215,436,795.35 5.23% 530,654.09 (3,074,531.35) AA 0.60 TOTAL MARKET VALUE PLUS ACCRUALS 212,892,918.09 34 Qtj V 14 DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F Section 5 1 Transactions 35 C DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Transaction Ledger City of Tustin Consolidated Account - Account #10795 June 30, 2023 through September 30, 2023 As of September 30, 2023 ACQUISITIONS Purchase 07/15/2023 90LAIF$00 182,081.98 Local Agency Investment Fund State Pool 1.000 3.26% 182,081.98 0.00 182,081.98 0.00 Purchase 07/31/2023 3130AWMN7 1,250,000.00 FHLB Note 100.461 4.27% 1,255,762.50 3,038.19 1,258,800.69 0.00 4.375% Due: 06/09/2028 Purchase 07/31/2023 90CAMP$00 487,555.91 California Asset Mgmt Program CAMP 1.000 5.43% 487,555.91 0.00 487,555.91 0.00 Purchase 08/21/2023 912797GK7 2,500,000.00 US Treasury Bill 95.036 5.33% 2,375,898.44 0.00 2,375,898.44 0.00 5.063% Due: 08/08/2024 Purchase 08/21/2023 91282CFA4 2,500,000.00 US Treasury Note 97.859 5.36% 2,446,484.38 4,279.89 2,450,764.27 0.00 3% Due:07/31/2024 Purchase 08/31/2023 3133EPUN3 1,500,000.00 FFCB Note 100.519 4.38% 1,507,785.00 562.50 1,508,347.50 0.00 4.5% Due: 08/28/2028 Purchase 08/31/2023 90CAMP$00 497,237.65 California Asset Mgmt Program CAMP 1.000 5.54% 497,237.65 0.00 497,237.65 0.00 Purchase 09/15/2023 912797GL5 4,500,000.00 US Treasury Bill 94.929 5.41% 4,271,826.25 0.00 4,271,826.25 0.00 5.128% Due: 09/05/2024 Purchase 09/28/2023 89236TLB9 1,000,000.00 Toyota Motor Credit Corp Note 99.618 5.34% 996,180.00 2,479.17 998,659.17 0.00 5.25% Due: 09/11/2028 Purchase 09/30/2023 90CAMP$00 466,510.24 California Asset Mgmt Program CAMP 1.000 5.52% 466,510.24 0.00 466,510.24 0.00 Subtotal 14,883,385.78 14,487,322.35 10,359.75 14,497,682.10 0.00 TOTAL ACQUISITIONS 14,883,385.78 14,487,322.35 10,359.75 14,497,682.10 0.00 DISPOSITIONS Maturity 07/31/2023 912828S92 1,250,000.00 US Treasury Note 100.000 1,250,000.00 0.00 1,250,000.00 0.00 1.25% Due: 07/31/2023 Maturity 08/31/2023 9128282D1 1,300,000.00 US Treasury Note 100.000 1,300,000.00 0.00 1,300,000.00 0.00 1.375% Due: 08/31/2023 Maturity 09/14/2023 912796CQO 4,000,000.00 US Treasury Bill 100.000 4,000,000.00 0.00 4,000,000.00 0.00 4.649% Due: 09/14/2023 36 Qtj DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F ITransaction Ledger City of Tustin Consolidated Account - Account #10795 June 30, 2023 through September 30, 2023 Transaction Settlement CUSIP Quantity Security Description Type Date Maturity 09/20/2023 89236TFNO 1,000,000.00 Toyota Motor Credit Corp Note 3.45% Due: 09/20/2023 As of September 30, 2023 100.000 1,000,000.00 0.00 1,000,000.00 0.00 Subtotal 7,550,000.00 7,550,000.00 0.00 7,550,000.00 0.00 Security 07/31/2023 90LAIF$00 3,227,000.00 Local Agency Investment Fund State Pool 1.000 3,227,000.00 0.00 3,227,000.00 0.00 Withdrawal Security 08/31/2023 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 Withdrawal Security 08/31/2023 90LAIF$00 2,500,000.00 Local Agency Investment Fund State Pool 1.000 2,500,000.00 0.00 2,500,000.00 0.00 Withdrawal Security 09/30/2023 90CAMP$00 3,000,000.00 California Asset Mgmt Program CAMP 1.000 3,000,000.00 0.00 3,000,000.00 0.00 Withdrawal Security 09/30/2023 90LAIF$00 3,000,000.00 Local Agency Investment Fund State Pool 1.000 3,000,000.00 0.00 3,000,000.00 0.00 Withdrawal Subtotal 16,727,000.00 16,727,000.00 0.00 16,727,000.00 0.00 TOTAL DISPOSITIONS 24,277,000.00 24,277,000.00 0.00 24,277,000.00 0.00 37 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F IImportant Disclosures As of September30, 2023 2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser Information contained herein is confidential. 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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. 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This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward -looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody's, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage -backed securities ("MBS") reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody's and Fitch respectively. Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account. 38 c►" DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Benchmark Disclosures As of September30, 2023 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 AM ::: �k, DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F CITY OF TUSTIN Monthly Investment Report September 30, 2023 Restricted Deposits with Fiscal Agents Ill Description / Limits [21 [31 [4] Face Amount Shares YTM@Cost Credit Rating Cost Value +Accrued Interest 151 Market Value 2016 Successor Agency Tax Allocation Bonds, Refunding 8,662.20 N/A 8,662.20 8,662.20 2016 Water Revenue Bonds, Refunding 343,657.13 N/A 343,657.13 343,657.13 2020 Water Revenue Bonds 198,628.46 N/A 198,628.46 198,628.46 CFD 04-1 627,810.42 N/A 627,810.42 627,810.42 CFD 06-1 4,216,492.59 N/A 4,216,492.59 4,216,492.59 CFD 07-1 1,206,862.55 N/A 1,206,862.55 1,206,862.55 CFD 14-1 2,655,552.44 N/A 2,655,552.44 2,655,552.44 9,257,665.79 9,257,665.79 9,257,665.79 Restricted Deposits with Fiscal Agents TOTAL 9,257,665.79 9,257,665.79 DocuSign Envelope ID: 6EA22186-lF25-4BFA-9167-587106976A9F PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN PARS Post -Employment Benefits Trust Matthew West City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Account Report for the Period 9/1/2023 to 9/30/2023 Source Balance as of 9/1/2023 Contributions Earnings Expenses Distributions Transfers Balance as of 9/30/2023 OPEB $3,436,778.59 $0.00 -$118,046.71 $1,417.67 $0.00 $0.00 $3,317,314.21 PENSION $10,960,435.76 $0.00 -$376,378.34 $4,520.73 $0.00 $0.00 $10,579,536.69 Totals $14,397,214.35 $0.00 -$494,425.05 $5,938.40 $0.00 $0.00 $13,8969850.90 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 -3.43% -3.28% 8.70% 1.94% 3.71% 6/26/2018 PENSION -3.43% -3.28% 8.72% 1.95% 3.73% 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