Loading...
HomeMy WebLinkAbout04 QUARTERLY INVESTMENT REPORT ENDING MARCH 31, 2024DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Agenda Item 4 Reviewed: Ds AGENDA REPORT 1' City Manager Finance Director MEETING DATE: MAY 7, 2024 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 MARCH 31, 2024 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 ended March 31, 2024 is rendered. The City's total cash and investments amounted to approximately $204 million as of March 31, 2024. The weighted average yield for the investment portfolio was 4.41 %, which is slightly lower than the weighted average portfolio yield for the prior quarter. The Federal Open Market Committee (FOMC) has kept the target Federal Funds rate in the current range of 5.25%-5.50% since July 2023, continuing its effort to stabilize economic growth. The Consumer Price Index (CPI) for March 2024 came in at 3.5% higher year -over -year, above the Fed's inflation target of 2%. For the first three months in 2024, the labor market added jobs at a better-than-expected pace and the national unemployment rate remains low at 3.8%. As a result, the 2-year Treasury yield inched back to 4.62% by March 2024, compared to a yield of 4.25% in December 2023. Similarly, the 5-year Treasury yield rose to 4.21 % by March 2024, compared to a yield of 3.85% in December 2023. DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Quarterly Investment Report for the Period Ending March 31, 2024 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 $12 million on March 31, 2024. The five-year annualized return for the PARS Pension Trust Fund was 6.01 %. 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 $3.7 million on March 31, 2024. The five-year annualized return for the PARS OPEB Trust Fund was 6.07%. Investment Compliance Certification On April 25, 2024, the Audit Commission reviewed the investment report and certified that the 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. IV v Jennifer King Finance Director/City Treasurer Attachments: Investment Report Certification Quarterly Investment Report for the Period Ending March 31, 2024 Restricted Deposits with Fiscal Agents as of March 31, 2024 PARS Trust Statement as of March 31, 2024 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 INVESTMENT REPORT City of Tustin Period Ending March 31, 2024 CHANDLER it% ASSET MANAGEMENT CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 ITable of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 Economic Update Account Profile Portfolio Holdings Transactions As of March 31, 2024 1 Q,tj rDocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Section 1 1 Economic Update 2 C►1 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Economic Update Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market. Inflationary trends are subsiding, but core levels remain 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 loosen monetary policy in 2024. As expected at the March meeting, the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 - 5.50%. The March Summary of Economic Projections (SEP) showed stronger real GDP growth outlook and higher core inflation projections for 2024 on resilient labor market and consumer data. The median projection for Federal Funds rate by year-end remained the same at 4.625%, implying three 0.25% cuts. We continue to believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. ■ The US Treasury yield curve stabilized in March as the FOMC left the Federal Funds rate unchanged. The 2-year Treasury yield was unchanged at 4.62%, the 5-year Treasury fell 4 basis points to 4.21%, and the 10-year Treasury yield dropped 5 basis points to 4.20%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -42 basis points at March month -end versus -37 basis points at February month -end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -56 basis points. The inversion between 3-month and 10-year Treasuries widened to -117 basis points in March from -113 basis points in February. 3 QtJ DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Employment 1,000 _1111111111111POW, 0 0 600 C 400 0 L H �Irxl1f 0 -200 -400 Nonfarm Payroll (000's) 25.0% 20.0% e 15.0% v f6 J-1I IVI ILII QVCI QrC 1VVV Z.1 10.0°% 5.0 0.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) �dr SPp �dr SPp �dr SPp �dr 5�,� �dr Sip 117 117 SPA �dr Spa /J7dr SPA �dr Spa /J�jdr SPA 117 1,g �9 �O �p �1 �1 �� �� �.�' �,�' �9 j9 19 �O �p �1 �1 �� �� �.�' �,�' fit! Source: US Department of Labor Source: US Department of Labor The U.S. economy added a better-than-expected 303,000 jobs in March, and the prior two months were revised up by 22,000. Leading sectors included healthcare and government. Job creation remains healthy, with the three-month moving average payrolls at 276,000 and the six-month moving average at 244,000. The unemployment rate edged down to 3.8% in March. The labor participation rate ticked up to 62.7% but remained below the pre -pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons was unchanged at 7.3%. Average hourly earnings rose 4.1% year - over -year in March, down from 4.3% last month. Employment remains strong by historical standards. 4 C11 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 IJob Openings & Labor Turnover Survey Job Openings 14,000 Recession 12,000 Historical Average 10,000 _N O O 8,000 C c m 0 6,000 0 C 4,000 2,000 0 6O bO 6� 60 b0 b0 6? b1 6z 61 6z 6z bz bz b1 61 b� b2 b- b� b� Q S 6 � � 9 O .l � a' S! S 6 � � 9 O 1 � �' Q Source: US Department of Labor The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) edged up to 8.756 million in February compared to a downwardly revised 8.748 million in January. Job openings still represent a healthy ratio of around 1.4 jobs for each unemployed individual. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. 5 C11 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Inflation 10.0% 9.0% 8.0% 7.0% v r 6.0% M r " 5.0% 0 > 4.0% 0 3.0% 2.0% 1.0% 0.0% Consumer Price Index (CPI) Personal Consumption Expenditures (PCE) 10.0% 9 0% PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change 8.0% Fed Target 7.0 % r 6.0% M 5.0 % 0 >. 4.0 % 0 } 3.0% 2.0 % 1.0 % 0.0 % lid" SPz �0, sOb �0/. SP;6 �0, � sO;0 �0, SOb �0/1 �06 ��g1.9 �06�0 ��g�O �Pb�1 �G��1 �Pb�� 9`��� �Pb�.� 94��.� �Pb�St Source: US Department of Labor Source: US Department of Commerce The Consumer Price Index (CPI) came in higher than expected in March, increasing 0.4% month -over -month and 3.5% year -over -year. The Core CPI, which excludes volatile food and energy components, was up 0.4% month -over -month and 3.8% year -over -year in March, unchanged from 3.8% in February. Energy costs accelerated during the month, and shelter costs remain elevated. The Personal Consumption Expenditures (PCE) Index headline inflation increased 0.3% month -over -month and rose 2.5% year -over -year in February, in line with expectations. Core PCE, the Federal Reserve's preferred inflation gauge, increased 0.3% month -over -month and rose 2.8%year- over-year. While the trend is moderating, the path to the Fed's 2% inflation target remains uneven. 6 %rIT& k, DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Consumer 60.0% 50.0% 40.0% v 30.0% t 20.0% 10.0% 0 0.0% -10.0% -20.0% -30.0% Retail Sales YOY % Change 160 140 j 0 Recession 120 100 N 80 x 60 40 20 0 sip �dr sib �dr SPb �dr Sib �dr Source: US Department of Commerce Consumer Confidence 11�70/1 �01- dr, �01 �4'r �4'f 47 dr �4'f �4'f �ldr, �4'r, OQ 06' O6, .70 7 .7Q '76. .7& -O Source: The Conference Board All time high is 144.70 (1131100); All time low is 25.30 (2128109) March Retail Sales rose above expectations at +0.7% after a sizeable upward revision to +0.9% in February. On a year -over -year basis, Retail Sales growth increased 4.0% for March. Sales were supported by higher gas prices and higher volume sales in a busy travel period for spring break at schools, as well as strength from non -store retailers. The Conference Board's Consumer Confidence Index edged down to 104.7 in March after a sizeable downward revision to 104.8 in February. The lower reading was largely due to a deteriorating view of the labor market and future business conditions, along with concerns about the highly polarized political environment. 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. d• 7 'R1 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 ILeading Indicators of Economic Activity Leading Economic Indicators (LEI) 15.0% 10.0% 5.0 % a = 0.0% s -5.0% 0 o -10.0% -15.0% -20.0% -2 I no/ b� b� b9 b9 bo bo bo bz b1 b� b� St 8 6 O Sl cQ 6 O V Source: The Conference Board Chicago Fed National Activity Index (CFNAI) 1.00 0.75 0.50 v 0.25 a a 0.00 s 0 -0.25 M -0.50 -0.75 -1.00 �%,mob, �Pb, �Pb, �Pb, �Pb, mob, �'V d'cQ '9� 96 00 OQ 06> l� Source: Federal Reserve Bank of Chicago mob, , mobmob, 76, �O Est The Conference Board's Leading Economic Index (LEI) rose to 0.1% month -over -month in February ending its 2-year uninterrupted contraction since February 2022. The index declined 6.3% year -over -year. The Conference Board is no longer calling for recession but expects GDP growth to slow to near zero this year. The Chicago Fed National Activity Index (CFNAI) increased +0.05 in February from a downwardly revised -0.54 in January. On a 3-month moving average basis, the CFNAI decreased to -0.18 in February from -0.11 in January, indicating moderating economic growth. 8 Q DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Housing 2,400 2,200 2,000 1,800 c 1,600 4- 1,400 1,200 c 1,000 800 c IIIIIIIIIIIIII010 0 Annualized Housing Starts ■ Multi Family Housing Starts ■Single Family Housing Starts A A A X, /I A A Fd Fd X1 AP b0 b0 b0 b1 b1 b1 bV b� b� b"b� s! 6 � O � 4 6 cQ O � St Source: US Department of Commerce 24.0% 20.0% 16.0% 12.0% 8.0% s 4.0% u 0.0 % o -4.0% } -8.0% -12.0% -16.0% -20.0% S&P/Case-Shiller 20 City Composite Home Price Index 'O 'O 'O �1 �1 �1 �1 �d 7� st 6 cQ O � st 6 8 O � A Source: S&P Housing Starts increased 10.7% month -over -month in February to 1.521 million units, due to milder weather than seen in January and some rising confidence among homebuilders as mortgage rates fell below 7%. Starts for multi -family homes increased 8.6%, while single family homes increased 11.6% for the month. Total starts of new single-family homes are up 35.2% year -over -year. According to Freddie Mac, 30-year fixed mortgage rates averaged 6.79% as of March 31st. According to the Case-Shiller 20-City Home Price Index, housing prices rose 6.59% year -over -year in January, accelerating from a 6.15% year -over -year gain in December. Tight inventories and higher mortgage rates continue to impact affordability. DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Survey Based Measures 70 ISM Manufacturing 65 .1 55 Institute of Supply Management (ISM) Surveys ISM Services I EXPANDING . 50RACT , , 4 • 45 40 d ~'70 -0 -0 c-70 d ~1>O h -0 a-0 c-0 d ~�I �7 a�I c�7 �~�� h p�� c�� d~,.>' ��' b��' Source: Institute for Supply Management The Institute for Supply Management (ISM) Manufacturing index unexpectedly expanded to 50.3 in March from 47.8 in February, marking the first month of expansion in factory activity above a reading of 50 since 2022. Production and new orders surged, while employment improved and prices paid increased. The ISM Services Index fell to 51.4 in March from 52.6 in February but remained in expansion territory for the 15th consecutive month. The survey reflected slower growth in new orders, a contraction in employment, faster supplier deliveries, and declining price pressures. 10 C11 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 IGross Domestic Product (GDP) Personal Consumption Expenditures 2.5% 0.6% 2.1% Gross Private Domestic Investment -1.7% 0.9% 1.7% Net Exports and Imports 0.6% 0.0% 0.0% Federal Government Expenditures 0.3% 0.1% 0.5% State and Local (Consumption and Gross 0.5% 0.5% 0.5 Investment) 0.5% Total Source: US Department of Commerce 2.3% 2.1% 4.9% Gross Domestic Product (GDP) 30.0% 2 2% 20.0% 0.2% 10.0% 0.3% 0.0% - ■ - -10.0 0.2% -20.0% � GDP QOQ %Change 0.6% -30.0% GDP YOY %Change -40.0% 3.4% O ✓ O ✓ O ✓ O ✓ O ✓ O 4 l9 19 �O Source: US Department of Commerce According to the third estimate, fourth quarter GDP increased at an annualized rate of 3.4%, revised up from the second estimate of 3.2%. The upward revision was due mainly to stronger personal consumption expenditures and nonresidential investment. GDP growth for the full year 2023 is estimated at 2.5%. The consensus projection calls for 2.0% growth in the first quarter and 2.2% growth for the full year 2024. 11 C,, DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Federal Reserve 10,000,000 9,000,000 8,000,000 7,000,000 c 6,000,000 = 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Federal Reserve Balance Sheet Assets 117d r,0 ~O ~O ~ 7 r1 r1 r1 r1 r� r� r� Q 6 cP 0 Sl 6 O Q Source: Federal Reserve 6.00% 5.00% 4.00% IR 3.00% v 2.00% 1.00% 0.00% Effective Federal Funds Rate �'0 r,0 r,0 r,1 r1 r1 r1 r1 '--)0 Q 6 cQ O � St 6 cP � S! Source: Bloomberg As expected at the March meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The FOMC Statement and Summary of Economic Projections (SEP) was minimally changed from January. The Fed assesses the progress to achieving its employment and inflation goals are moving into better balance, yet changes to monetary policy remain data dependent. For 2024, the March SEP showed stronger real GDP growth outlook of 2.1% from 1.4% in December as labor market and consumer data have been resilient. Core inflation projections nudged up from 2.4% to 2.6%. The median projection for the Federal Funds rate by the end of the year remained the same at 4.625%, implying three 0.25% cuts in 2024, three cuts in 2025 and three cuts in 2026. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.5T to approximately $7.5T. 12 C,, DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Bond Yields 6.0 5.0 4.0 0 v 3.0 2.0 1.0% 0.0% US Treasury Note Yields • 2-Year V US Treasury Yield Curve 6.0% 5.0% 4.0 2.0% Mar-24 1.0% Dec-23 • Mar-23 0.0 1g 1s �p ?0 �1 �1 �� �� �� �,� �Q 470- 470 ll . yr 1i1 Syr Syr Source: Bloomberg Source: Bloomberg At the end of March, the 2-year Treasury yield was 59 basis point higher, and the 10-Year Treasury yield was 73 basis points higher, year - over -year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -42 basis points at March month -end versus -37 basis points at February month -end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -117 basis points in March from -113 basis points in February. 13 C>♦, rDocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Section 2 I Account Profile 14 c►® DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Objectives Investment Objectives As of March 31, 2024 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 QtJ DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 ICompliance As of March 31, 2024 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 supra national bankinggroups: IBRD, Complies IFC, and IADB; Supranational securities will notbepurchased until further noticefromstaff at the City of Tustin. 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 a domestic Corporate Medium Term Notes corporation or depository institution; If the credit rating of a security is downgraded belowthe minimum rating level for a Complies 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. 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; Complies (NCD) or "A" long-term rating category or higher by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity 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 Complies Certificates of Deposit deposit) above FDIC insured limits must be collateralized pursuantto California Government Code (CGC) 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-1/13-1 rating or equivalent by a NRSRO, plus A long term rating by a NRSRO; 30% max, 5% max per issuer; 10% max of any single issuer (combined issuer limitation of a local agency's investments in commercial paper and medium -term notes); 10% max outstanding from a single issuer; 270 days max maturity; "'Prime" quality commercial paper with the highest rating by a Commercial Paper NRSRO; The entity that issues thecommercial papershall meetall conditions in either (A) or (B): (A) 1. Organized and Complies operating in the U.S. as a general corporation; 2. Has total netassets >$500 million; 3. Has debtother 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, overcol lateral ization, letters of credit or surety bond; and 3. "A-1" rated or higher by a NRSRO 16 Q DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 ICompliance As of March 31, 2024 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 Money Market Mutual Funds years experience investing assets of at least $500 million; Must invest solely in investments, which the City itself could Complies legal ly purchase; 20% max; 10% max per Money Market Mutual Fund Max amount limited to the amount as specified by LAIF; Principal a mount withdrawa I of $10 million or> needs 24-hour Local Agency Investment Fund (LAIF) notice, and less than $10 million may be withdrawn the same day; Not used by investment adviser Complies Local Government Investment Pool Max amount permitted by County Treasurer; Investment in OCIP is allowable accordingto guidelines in Government Code; (LGI P)/ Not used by investment adviser Complies Orange County Investment Pool (OCIP) 50% max per issuer; 5 years max maturity; Shares of beneficial interest issued by a joint powers' authority organized Joint Powers Authority (JPA) Investment pursuantto Section 6509.7 that invests in securities and obligations authorized in subdivisions (a) to (q), inclusive; The JPA Pools must retain an investment advisor that is SEC registered or exempt from registration with Assets > $500 million, and >5 years Complies experi ence i nvesti ng i n i nstruments a uthori zed by CGC 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; Reverse Prohibited Repurchase Agreements; Securities on margin, credit, or for other than full cash payment, and shall not be pledged as Complies collateral; Purchase of security with a forward settlement date>45 days from the time of investment; Supranational securities wi I I not be purchased until further notice from staff at the City of Tusti n. 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: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Portfolio Characteristics As of March 31,2024 City of Tustin Consolidated Account Average Maturity (yrs) 2.68 0.70 0.64 Average Modified Duration 2.52 0.63 0.58 Average Purchase Yield n/a 4.41% 4.43% Average Market Yield 4.57% 5.17% 5.04% Average Quality" AA+ AA+ AAA/Aa2 Total Market Value 203,582,629 227,917,911 *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 Qtj DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Sector Distribution City of Tustin Consolidated Account March 31, 2024 Agency CMBS 1.5 % Agency 6.8/ Cash US Treasury 1•7% Commercial 23.2% Paper Negotiable CD 0.5 % 0.6 Money Market Negotiable CD Corporate Fund 0.6% 15.9 % 0.1 Money Market Fund 0.1% LAI F 3.4% Local Gov Investment Pool 46.4% $13,906,117.72 $3,413,468.46 - $984,943.00 - $6,979,240.63 ' $94,304,199.14 $173,541.85 $47,185,869.05 $3,006,632.20 US Treasury 18.2 December 31, 2023 CIVIC) 1.4% Local Gov Investment Pool 50.4% As of March 31, 2024 Agency 8.2 Cash 3.1% )mmercial Paper 0.4 $32,458,778.40 $18,704,136.26 - $7,147,946.96 - $970,810.00 $1,169,838.19 - $7,455,511.02 $114,909,706.30 $320,991.07 $41,510,166.22 $3,105,502.13 Corporate 14.2 LAIF 3.3 $32,372,900.91 $1,420,239.66 19 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Portfolio Allocation & Duration Changes City of Tustin Consolidated Account Local Gov Investment Pool US Treasury Corporate Cash M 1.7% 3.1% Agency 6.8% 8.2% 3.4% LAIF 3.3 % 1.5% Agency CMBS _ 1.4% 0.6% Negotiable CD 0.6% Commercial 0.5% Paper 0.4% Money Market 0.1% Fund 0.1% Benchmark: ICE BofA 1-5 Yr US Treasury & Agency Index Portfolio Allocation 18.2% ■ 15.9% 14.2% 23.2% 46.4 % 50.4% ■ 03/31/24 ■ 12/31/23 As of March 31, 2024 20 C►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Issuers City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 CAMP Local Gov Investment Pool 46.44% US Treasury US Treasury 23.16% Local Agency Investment Fund LAIF 3.44% Federal Home Loan Bank Agency 3.26% Federal Farm Credit Bank Agency 2.34% Account Receivable Payable Cash 1.68% Federal Home Loan Mortgage Corp Agency CMBS 1.40% JP Morgan Chase & Co Corporate 0.91% Federal National Mortgage Association Agency 0.89% US Bancorp Corporate 0.63% Toyota Motor Corp Corporate 0.48% Morgan Stanley Corporate 0.47% Nextera Energy Capital Corporate 0.47% Qualcomm Inc Corporate 0.46% Paccar Financial Corporate 0.46% Northern Trust Corp Corporate 0.46% Home Depot Corporate 0.46% Salesforce.com Inc Corporate 0.46% Mass Mutual Insurance Corporate 0.46% Toyota Motor Corp Commercial Paper 0.46% Target Corp Corporate 0.46% Chubb Corporation Corporate 0.46% Duke Energy Field Services Corporate 0.46% Metlife Inc Corporate 0.46% National Rural Utilities Corporate 0.45% New York Life Global Funding Corporate 0.45% Deere & Company Corporate 0.45% Bank of America Corp Corporate 0.45% Bank of Montreal Chicago Corporate 0.45% State Street Bank Corporate 0.45% Bank of New York Corporate 0.45% Pfizer Inc. Corporate 0.45% Toronto Dominion Holdings Corporate 0.44% Caterpillar Inc Corporate 0.44% United Health Group Inc Corporate 0.43% Amazon.com Inc Corporate 0.43% 21 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Issuers City of Tustin Consolidated Account — Account #10795 As of March 31, 2024 Charles Schwab Corp/The Corporate 0.43% Royal Bank of Canada Corporate 0.43% Wal-Mart Stores Corporate 0.38% Northwestern Mutual Glbl Corporate 0.33% Public Service El & Gas Corporate 0.27% MasterCard Inc Corporate 0.23% Colgate-Palmolive Co. Corporate 0.16% 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% First American Govt Oblig Fund Money Market Fund 0.08% TOTAL 100.00% 22 C►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 IMaturity Distribution As of March 31, 2024 $140, 000, 000. ^^ $120, 000, 000, $100, 000, 000. $80, 000, 000, $60,000, 000. $40, 000, 000. $20, 000, 000. $0. 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity (Yrs) 23 Cjj-' DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Quality Distribution 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% AAA City of Tustin Consolidated Account March 31, 2024 vs. December 31, 2023 AA ■ 03/31/24 <A 12/31/23 0 NR 03/31/24 54.2% 25.5% 24.5% 13.2% 7.1% 12/31/23 58.7% 21.2% 11.7% 0.0% 8.4% Source: S&P Ratings As of March 31, 2024 24 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 I Duration Distribution City of Tustin Consolidated Account March 31, 2024 vs. December 31, 2023 As of March 31, 2024 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% . - 0.0 0-0.25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5+ ■ March 31, 2024 December 31, 2023 03/31/24 59.3% 11.6% 9.6% 8.7% 3.7% 5.2% 1.9% 0.0% 12/31/23 62.8% 5.0% 12.3% 8.9% 5.1% 3.9% 2.0% 0.0% 25 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Investment Performance City of Tustin Consolidated Account Total Rate of Return Annualized Since Inception November 30, 2020 5.00% 4.00% 3.00% 2.00 % 1.00% As of March 31, 2024 0.00% ■■ ■■ ■- 0- -1.00% 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 1.06% 4.17% 2.43% 0.64% N/A N/A 0.60% ICE BofA 1-5 Yr US Treasury & Agency Index -0.01% 2.45% 1.02% -0.58% N/A N/A -0.66% ICE BofA 1-3 Yr US Treasury & Agency Index 0.30% 2.99% 1.58% 0.09% N/A N/A 0.08% REALIZED RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Tustin Consolidated Account 1.03% 3.96% 2.99% 2.20% N/A N/A 2.09% Q" 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 earnings26 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. rDocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Section 3 1 Portfolio Holdings 27 C DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 AGENCY 3133XVDG3 FEDERAL HOME LOAN BANKS 4.375 1,000,000.00 09/26/2022 998,060.00 99.57 995,701.87 0.49% Aaa/AA+ 0.45 09/13/2024 4.48% 999,553.56 5.34% 2,187.50 (3,851.69) AA+ 0.44 3133ENL40 FEDERAL FARM CREDIT BANKS FUNDING 1,000,000.00 09/08/2022 997,520.00 99.21 992,147.99 0.49% Aaa/AA+ 0.45 CORP 3.5 09/13/2024 3.63% 999,440.22 5.28% 1,750.00 (7,292.23) AA+ 0.44 3130APQ81 FEDERAL HOME LOAN BANKS 1.0 11/08/2024 1,000,000.00 08/01/2022 954,220.00 97.47 974,685.92 0.48% Aaa/AA+ 0.61 3.09% 987,795.68 5.32% 3,972.22 (13,109.76) AA+ 0.59 3130AQF40 FEDERAL HOME LOAN BANKS 1.0 12/20/2024 1,000,000.00 08/01/2022 955,420.00 97.04 970,366.29 0.48% Aaa/AA+ 0.72 2.94% 986,538.99 5.25% 2,805.56 (16,172.70) AA+ 0.70 3135G04Z3 FEDERAL NATIONAL MORTGAGE 2,000,000.00 04/12/2021 1,982,980.00 94.84 1,896,700.80 0.93% Aaa/AA+ 1.21 ASSOCIATION 0.5 06/17/2025 0.71% 1,995,070.22 4.95% 2,888.89 (98,369.42) AA+ 1.18 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 1,500,000.00 11/30/2023 1,503,345.00 100.26 1,503,857.49 0.74% Aaa/AA+ 2.63 11/17/2026 4.54% 1,502,967.84 4.52% 25,822.92 889.65 AA+ 2.42 3133EPH81 3130AW M N 7 3133EPUN3 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 10/04/2027 FEDERAL HOME LOAN BANKS 4.375 06/09/2028 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 08/28/2028 1,000,000.00 12/08/2023 1,001, 820.00 100.12 1, 001, 246.33 4.45% 1,001,673.67 4.46% 14,625.00 1,250,000.00 07/26/2023 1,255,762.50 100.07 1,250,891.65 4.27% 1,254,967.11 4.35% 17,013.89 1,500,000.00 08/29/2023 1,507,785.00 100.78 1,511,702.37 4.37% 1,506,871.63 4.30% 6,187.50 0.49% Aaa/AA+ 3.51 (427.34) AA+ 3.17 0.62% Aaa/AA+ 4.19 (4,075.46) AA+ 3.75 0.74% Aaa/AA+ 4.41 4,830.74 AA+ 3.95 3130AXQK7 FEDERAL HOME LOAN BANKS 4.75 1,200,000.00 12/08/2023 1,222,020.00 101.86 1,222,325.70 0.60% Aaa/AA+ 4.69 12/08/2028 4.33% 1,220,667.90 4.31% 23,433.33 1,657.80 AA+ 4.10 3133EPW84 FEDERAL FARM CREDIT BANKS FUNDING 1,500,000.00 01/29/2024 1,488,945.00 98.27 1,474,018.05 0.73% Aaa/AA+ 4.80 CORP 3.875 01/18/2029 4.04% 1,489,316.75 4.28% 11,786.46 (15,298.70) AA+ 4.30 Total Agency 13,867,877.51 98.92 13,793,644.46 6.79% Aaa/AA+ 2.66 13,950,000.00 3.61% 13,944,863.57 4.71% 112,473.26 (151,219.11) AA+ 2.41 AGENCY CMBS 3137BDCW4 FHMS K-039 A2 3.303 07/25/2024 826,849.49 04/19/2022 833,438.45 99.26 820,729.89 2.76% 827,597.12 5.20% 2,275.90 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 750,000.00 06/08/2023 719,560.55 95.93 719,508.90 4.39% 725,986.17 5.04% 2,026.88 0.40% Aaa/AA+ 0.32 (6,867.22) AAA 0.22 0.35% Aaa/AA+ 3.07 (6,477.27) AAA 2.78 28 C►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 3137FEZU7 FHMS K-076 A2 3.9 04/25/2028 750,000.00 10/30/2023 708,310.55 97.25 729,337.65 0.36% Aaa/AA+ 4.07 5.32% 712,215.70 5.04% 2,437.50 17,121.95 AAA 3.59 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 10/30/2023 705,556.64 97.05 727,865.48 0.36% Aaa/AA+ 4.49 5.31% 709,358.88 5.04% 2,450.00 18,506.60 AAA 3.95 2,966,866.19 97.43 2,997,441.92 1.48% Aaa/AA+ 2.90 Total Agency CMBS 3,076,849.49 4.39% 2,975,157.86 5.08% 9,190.28 22,284.06 AAA 2.56 CASH CCYUSD Receivable 294.95 -- 294.95 1.00 294.95 0.00% Aaa/AAA 0.00 0.00% 294.95 0.00% 0.00 0.00 AAA 0.00 CCYUSD Cash 3,679.89 -- 3,679.89 1.00 3,679.89 0.00% Aaa/AAA 0.00 0.00% 3,679.89 0.00% 0.00 0.00 AAA 0.00 CCYUSD Receivable 74,770.14 -- 74,770.14 1.00 74,770.14 0.04% Aaa/AAA 0.00 0.00% 74,770.14 0.00% 0.00 0.00 AAA 0.00 CBGMMF$04 Citizens Business Bank 233,768.46 01/31/2024 233,768.46 1.00 233,768.46 0.12% NA/NA 0.00 0.00% 233,768.46 0.00% 0.00 0.00 NA 0.00 CCYUSD Receivable 289,790.05 -- 289,790.05 1.00 289,790.05 0.14% Aaa/AAA 0.00 0.00% 289,790.05 0.00% 0.00 0.00 AAA 0.00 CBGMMF$03 Citizens Business Bank 2,811,164.97 11/30/2023 2,811,164.97 1.00 2,811,164.97 1.38% NA/NA 0.00 0.00% 2,811,164.97 0.00% 0.00 0.00 NA 0.00 3,413,468.46 1.00 3,413,468.46 1.68% Aaa/AAA 0.00 Total Cash 3,413,468.46 0.00% 3,413,468.46 0.00% 0.00 0.00 AAA 0.00 COMMERCIAL PAPER 89233GG83 Toyota Motor Credit Corporation 07/08/2024 1,000,000.00 10/12/2023 958,454.44 98.49 984,943.00 0.48% P-1/A-1+ 0.27 5.76% 984,864.44 5.32% 0.00 78.56 F1 0.27 Total Commercial 10/12/2023 958,454.44 98.49 984,943.00 0.48% P-1/A-1+ 0.27 Paper 1,000,000.00 5.76% 984,864.44 5.32% 0.00 78.56 F1 0.27 CORPORATE 29 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 79466LAG9 SALESFORCE INC 0.625 07/15/2024 1,000,000.00 04/25/2022 951,860.00 98.61 986,122.52 0.49% Al/A+ 0.29 2.85% 993,759.63 5.50% 1,319.44 (7,637.11) NA 0.29 59217GEP0 24422EVY2 57629WCG3 64952 W E K5 METROPOLITAN LIFE GLOBAL FUNDING 10.7 1,000,000.00 01/18/2022 979,170.00 97.65 976,532.97 0.48% Aa3/AA- 0.49 09/27/2024 1.49% 996,199.22 5.63% 77.78 (19,666.25) AA- 0.48 JOHN DEERE CAPITAL CORP 1.25 01/10/2025 1,000,000.00 02/04/2022 985,080.00 96.94 969,422.50 0.48% Al/A 0.78 1.77% 996,028.79 5.33% 2,812.50 (26,606.29) A+ 0.76 MASSMUTUAL GLOBAL FUNDING II 2.95 01/11/2025 NEW YORK LIFE GLOBAL FUNDING 1.45 01/14/2025 1,000,000.00 03/23/2022 1,004,360.00 98.05 980,451.49 0.48% Aa3/AA+ 0.78 2.79% 1,001,214.66 5.55% 6,555.56 (20,763.17) AA+ 0.75 1,000,000.00 01/18/2022 996,780.00 97.06 970,641.79 0.48% Aaa/AA+ 0.79 1.56% 999,149.21 5.29% 3,101.39 (28,507.42) AAA 0.77 63743HFC1 NATIONAL RURAL UTILITIES COOPERATIVE 1,000,000.00 03/23/2022 972,740.00 97.09 970,939.23 0.48% A2/A- 0.86 FINANCE CORP 1.875 02/07/2025 2.86% 991,899.89 5.42% 2,812.50 (20,960.66) A 0.83 57636QAN4 MASTERCARD INC 2.0 03/03/2025 500,000.00 11/01/2021 515,365.00 97.11 485,543.02 0.24% Aa3/A+ 0.92 1.03% 504,034.43 5.25% 777.78 (18,491.41) NA 0.90 69371RR73 PACCAR FINANCIAL CORP 2.85 04/07/2025 1,000,000.00 03/31/2022 999,740.00 97.71 977,119.55 0.48% Al/A+ 1.02 2.86% 999,911.99 5.19% 13,775.00 (22,792.44) NA 0.98 437076CM2 HOME DEPOT INC 2.7 04/15/2025 1,000,000.00 03/28/2022 995,620.00 97.50 975,019.35 0.48% A2/A 1.04 2.85% 998,507.18 5.20% 12,450.00 (23,487.83) A 1.00 87612EBL9 TARGET CORP 2.25 04/15/2025 1,000,000.00 02/04/2022 1,010,340.00 97.13 971,271.49 0.48% A2/A 1.04 1.90% 1,003,216.06 5.12% 10,375.00 (31,944.57) A 1.00 61747YEQ4 MORGAN STANLEY 3.62 04/17/2025 1,000,000.00 06/01/2022 1,000,910.00 99.89 998,883.10 0.49% Al/A- 1.05 3.56% 1,000,024.61 6.04% 16,491.11 (1,141.51) A+ 0.05 06406RAN7 BANK OF NEW YORK MELLON CORP 1.6 1,000,000.00 02/04/2022 989,120.00 96.18 961,803.01 0.47% Al/A 1.07 04/24/2025 1.95% 996,395.01 5.34% 6,977.78 (34,592.00) AA- 1.03 06367WB85 BANK OF MONTREAL 1.85 05/01/2025 1,000,000.00 08/17/2021 1,034,530.00 96.30 963,013.26 0.47% A2/A- 1.08 0.91% 1,010,095.75 5.41% 7,708.33 (47,082.49) AA- 1.05 91159HHZ6 US BANCORP 1.45 05/12/2025 1,400,000.00 12/23/2021 1,406,818.00 95.87 1,342,176.81 0.66% A3/A 1.11 1.30% 1,402,154.45 5.32% 7,838.06 (59,977.64) A 1.08 747525AFO QUALCOMM INC 3.45 05/20/2025 1,000,000.00 03/23/2022 1,018,960.00 98.13 981,348.80 0.48% A2/A 1.14 2.76% 1,005,958.51 5.16% 12,554.17 (24,609.71) NA 1.09 717081EX7 PFIZER INC 0.8 05/28/2025 1,000,000.00 03/23/2022 945,010.00 95.28 952,847.57 0.47% A2/A 1.16 2.59% 979,995.02 5.04% 2,733.33 (27,147.45) A 1.13 30 Qj DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 I Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 66815L2J7 NORTHWESTERN MUTUAL GLOBAL FUNDING 700,000.00 06/30/2022 703,738.00 98.65 690,578.36 0.34% Aaa/AA+ 1.25 4.0 07/01/2025 3.81% 701,560.92 5.12% 7,000.00 (10,982.57) AAA 1.20 194162AM5 CO LGATE-PALM OLIVE CO 3.108/15/2025 345,000.00 08/01/2022 344,682.60 97.63 336,824.30 0.17% Aa3/AA- 1.38 3.13% 344,855.70 4.90% 1,366.58 (8,031.40) NA 1.32 26442UAA2 DUKE ENERGY PROGRESS LLC 3.25 1,000,000.00 04/25/2022 1,000,280.00 97.51 975,087.43 0.48% Aa3/A 1.38 O8/15/2025 3.24% 1,000,105.06 5.15% 4,152.78 (25,017.63) WR 1.32 89114QCK2 TORONTO-DOMINION BANK 0.75 1,000,000.00 08/17/2021 993,000.00 93.92 939,171.10 0.46% Al/A 1.45 09/11/2025 0.92% 997,509.43 5.17% 416.67 (58,338.33) AA- 1.41 14913R2H9 CATERPILLAR FINANCIAL SERVICES CORP 0.8 1,000,000.00 04/21/2021 991,780.00 93.58 935,763.00 0.46% A2/A 1.62 11/13/2025 0.98% 997,082.27 4.98% 3,066.67 (61,319.27) A+ 1.57 857477BR3 STATE STREET CORP 1.746 02/06/2026 1,000,000.00 - 978,258.70 96.66 966,578.44 0.48% Al/A 1.85 2.61% 992,942.55 5.84% 2,667.50 (26,364.11) AA- 0.82 06051GHY8 BANK OF AMERICA CORP 2.015 02/13/2026 1,000,000.00 04/20/2021 1,030,470.00 96.88 968,772.76 0.48% Al/A- 1.87 1.07% 1,008,110.80 5.76% 2,686.67 (39,338.04) AA- 0.84 46647PBK1 JPMORGAN CHASE & CO 2.083 04/22/2026 2,000,000.00 - 2,072,110.00 96.36 1,927,124.48 0.95% Al/A- 2.06 0.97% 2,023,160.73 5.68% 18,399.83 (96,036.25) AA- 1.02 00440EAV9 CHUBB INA HOLDINGS INC 3.35 05/03/2026 1,000,000.00 07/23/2021 1,102,780.00 96.60 965,982.58 0.48% A3/A 2.09 0.98% 1,042,862.58 5.09% 13,772.22 (76,880.00) A 1.96 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,000,000.00 05/12/2021 995,200.00 92.34 923,432.89 0.45% Al/AA 2.11 1.10% 997,971.05 4.85% 3,861.11 (74,538.16) AA- 2.04 808513BR5 CHARLES SCHWAB CORP 1.15 05/13/2026 1,000,000.00 07/23/2021 1,007,990.00 92.19 921,892.37 0.45% A2/A- 2.12 0.98% 1,003,470.62 5.09% 4,408.33 (81,578.25) A 2.04 91324PEC2 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,000,000.00 07/28/2021 1,007,110.00 92.49 924,948.84 0.46% A2/A+ 2.12 1.00% 1,003,098.33 4.92% 4,344.44 (78,149.49) A 2.05 78016EZT7 ROYAL BANK OF CANADA 1.15 07/14/2026 1,000,000.00 07/28/2021 999,090.00 91.58 915,826.07 0.45% Al/A 2.29 1.17% 999,580.70 5.10% 2,459.72 (83,754.63) AA- 2.20 931142ERO WALMART INC 1.05 09/17/2026 900,000.00 09/22/2021 902,277.00 91.68 825,076.40 0.41% Aa2/AA 2.47 1.00% 901,111.99 4.67% 367.50 (76,035.60) AA 2.38 665859AW4 NORTHERN TRUST CORP 4.0 05/10/2027 1,000,000.00 01/30/2023 986,540.00 97.42 974,238.40 0.48% A2/A+ 3.11 4.35% 990,209.34 4.90% 15,666.67 (15,970.94) A+ 2.84 74456QBU9 PUBLIC SERVICE ELECTRIC AND GAS CO 3.7 600,000.00 06/29/2023 570,144.00 96.02 576,114.46 0.28% Al/A 4.08 05/01/2028 4.87% 574,807.42 4.78% 9,250.00 1,307.04 WR 3.68 31 Qj DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 I Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 341081GN1 FLORIDA POWER & LIGHT CO 4.4 05/15/2028 1,000,000.00 06/07/2023 987,550.00 98.92 989,198.72 0.49% Aa2/A+ 4.12 4.69% 989,601.97 4.69% 16,622.22 (403.25) AA- 3.67 89236TL69 TOYOTA MOTOR CREDIT CORP 5.25 1,000,000.00 09/26/2023 996,180.00 101.72 1,017,246.05 0.50% Al/A+ 4.45 09/11/2028 5.34% 996,572.55 4.81% 2,916.67 20,673.50 A+ 3.92 33,475,583.30 96.44 32,236,993.09 15.87% Al/A 1.65 Total Corporate 33,445,000.00 2.20% 33,443,158.40 5.24% 221,785.31 (1,206,165.31) A+ 1.42 LAIF 90LAIF$00 State Pool 6,979,240.63 -- 6,979,240.63 1.00 6,979,240.63 3.44% NA/NA 0.00 4.27% 6,979,240.63 4.27% 0.00 0.00 NA 0.00 6,979,240.63 1.00 6,979,240.63 3.44% NA/NA 0.00 Total LAIF 6,979,240.63 4.27% 6,979,240.63 4.27% 0.00 0.00 NA 0.00 LOCAL GOV INVESTMENT POOL 90CAMP$00 CAMP 94,304,199.14 -- 94,304,199.13 1.00 94,304,199.14 46.44% NA/AAAm 0.00 5.48% 94,304,199.13 5.48% 0.00 0.01 AAA 0.00 NA/ Total Local Gov 94,304,199.13 1.00 94,304,199.14 46.44% AAAm 0.00 Investment Pool 94,304,199.14 5.48% 94,304,199.13 5.48% 0.00 0.01 AAA 0.00 MONEY MARKET FUND 31846V203 FIRST AMER:GVT OBLG Y 31,764.13 -- 31,764.13 1.00 31,764.13 0.02% Aaa/ 0.00 4.91% 31,764.13 4.91% 0.00 0.00 AAAm 0.00 AAA 31846V203 FIRSTAMER:GVT OBLG Y 141,777.72 -- 141,777.72 1.00 141,777.72 0.07% Aaa/ 0.00 4.91% 141,777.72 4.91% 0.00 0.00 AAAm 0.00 AAA Aaa/ Total Money Market 173,541.85 1.00 173,541.85 0.09% AAAm 0.00 Fund 173,541.85 4.91% 173,541.85 4.91% 0.00 0.00 AAA 0.00 32 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 NEGOTIABLE CD 14042TJB4 Capital One Bank (USA), National Association 240,000.00 08/01/2022 239,640.00 97.98 235,153.10 0.12% WR/BBB+ 1.34 3.45 08/04/2025 3.50% 239,839.20 5.01% 1,315.73 (4,686.09) A 1.30 02007GXF5 Ally Bank 3.4 08/04/2025 240,000.00 08/02/2022 239,280.00 97.91 234,976.40 0.12% A3/BBB- 1.34 3.50% 239,678.10 5.02% 1,274.30 (4,701.70) NA 1.30 87165EXE2 Synchrony Bank 3.4 08/05/2025 240,000.00 08/01/2022 239,640.00 97.90 234,968.72 0.12% NA/BBB 1.35 3.45% 239,838.72 5.02% 1,269.33 (4,870.00) BBB 1.30 2546731326 Discover Bank 3.4 08/08/2025 240,000.00 08/01/2022 239,280.00 97.89 234,945.77 0.12% A2/BBB 1.36 3.50% 239,675.47 5.02% 1,184.88 (4,729.70) A- 1.31 38149MYS6 Goldman Sachs Bank USA 1.05 08/25/2026 245,000.00 08/17/2021 243,775.00 91.63 224,496.23 0.11% Al/A+ 2.40 1.15% 244,412.32 4.78% 253.73 (19,916.10) AA- 2.33 1,201,615.00 96.71 1,164,540.22 0.57% A2/BBB 1.55 Total Negotiable CD 1,205,000.00 3.04% 1,203,443.82 4.97% 5,297.96 (38,903.59) A- 1.50 US TREASURY 91282CBV2 UNITED STATES TREASURY 0.375 04/15/2024 2,500,000.00 06/27/2023 2,403,125.00 99.81 2,495,237.35 1.23% Aaa/AA+ 0.04 5.40% 2,495,355.31 5.02% 4,328.89 (117.96) AA+ 0.05 912828X70 UNITED STATES TREASURY 2.0 04/30/2024 1,250,000.00 03/23/2022 1,245,019.53 99.73 1,246,626.74 0.61% Aaa/AA+ 0.08 2.19% 1,249,811.94 5.24% 10,508.24 (3,185.20) AA+ 0.09 912828WJ5 UNITED STATES TREASURY 2.5 05/15/2024 1,000,000.00 04/25/2022 998,593.75 99.65 996,530.47 0.49% Aaa/AA+ 0.12 2.57% 999,917.50 5.28% 9,478.02 (3,387.03) AA+ 0.13 912828XT2 UNITED STATES TREASURY 2.0 05/31/2024 2,500,000.00 06/27/2023 2,424,804.69 99.46 2,486,505.00 1.22% Aaa/AA+ 0.17 5.38% 2,486,651.72 5.23% 16,803.28 (146.72) AA+ 0.17 91282CCG4 UNITED STATES TREASURY 0.25 06/15/2024 2,300,000.00 11/07/2023 2,230,281.25 98.95 2,275,876.96 1.12% Aaa/AA+ 0.21 5.44% 2,276,232.24 5.35% 1,696.72 (355.29) AA+ 0.21 912797GB7 UNITED STATES TREASURY 07/11/2024 3,000,000.00 01/11/2024 2,924,266.58 98.56 2,956,696.26 1.46% P-1/A-1+ 0.28 5.24% 2,957,739.91 5.45% 0.00 (1,043.65) F1+ 0.28 91282CCL3 UNITED STATES TREASURY 0.375 07/15/2024 1,250,000.00 03/23/2022 1,197,802.73 98.58 1,232,312.01 0.61% Aaa/AA+ 0.29 2.22% 1,243,506.26 5.31% 991.59 (11,194.25) AA+ 0.29 33 Qj DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 91282CFA4 UNITED STATES TREASURY 3.0 07/31/2024 2,500,000.00 08/18/2023 2,446,484.38 99.22 2,480,517.58 1.22% Aaa/AA+ 0.33 5.36% 2,481,230.75 5.34% 12,568.68 (713.18) AA+ 0.33 912797GK7 UNITED STATES TREASURY 08/08/2024 4,750,000.00 -- 4,569,728.60 98.16 4,662,789.52 2.30% P-1/A-1+ 0.36 5.32% 4,663,711.10 5.42% 0.00 (921.57) F1+ 0.35 9128282U3 UNITED STATES TREASURY 1.875 08/31/2024 1,250,000.00 03/23/2022 1,238,085.94 98.58 1,232,299.80 0.61% Aaa/AA+ 0.42 2.28% 1,247,967.52 5.35% 2,038.04 (15,667.72) AA+ 0.41 912797GI-5 UNITED STATES TREASURY 09/05/2024 4,500,000.00 09/14/2023 4,271,826.25 97.77 4,399,539.62 2.17% P-1/A-1+ 0.43 5.42% 4,399,372.81 5.40% 0.00 166.80 F1+ 0.43 912797GW1 UNITED STATES TREASURY 10/03/2024 3,000,000.00 10/23/2023 2,852,512.50 97.42 2,922,469.59 1.44% P-1/A-1+ 0.51 5.42% 2,920,912.50 5.42% 0.00 1,557.09 F1+ 0.50 912828YM6 UNITED STATES TREASURY 1.5 10/31/2024 1,250,000.00 03/23/2022 1,224,902.34 97.86 1,223,242.19 0.60% Aaa/AA+ 0.59 2.29% 1,244,384.66 5.28% 7,881.18 (21,142.47) AA+ 0.57 912828G38 UNITED STATES TREASURY 2.25 11/15/2024 3,000,000.00 02/20/2024 2,938,359.38 98.19 2,945,625.00 1.45% Aaa/AA+ 0.63 5.15% 2,947,559.47 5.24% 25,590.66 (1,934.47) AA+ 0.61 912828YV6 UNITED STATES TREASURY 1.5 11/30/2024 1,250,000.00 03/23/2022 1,223,486.33 97.58 1,219,763.19 0.60% Aaa/AA+ 0.67 2.31% 1,243,439.08 5.24% 6,301.23 (23,675.89) AA+ 0.65 912828YYO UNITED STATES TREASURY 1.75 12/31/2024 1,300,000.00 05/18/2022 1,263,335.94 97.51 1,267,601.56 0.62% Aaa/AA+ 0.75 2.87% 1,289,502.66 5.18% 5,750.00 (21,901.11) AA+ 0.73 91282CGGO UNITED STATES TREASURY 4.125 01/31/2025 2,700,000.00 03/14/2024 2,676,480.47 99.19 2,678,027.35 1.32% Aaa/AA+ 0.84 5.15% 2,677,722.18 5.13% 18,664.49 305.16 AA+ 0.81 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,000,000.00 04/27/2021 1,957,500.00 92.46 1,849,140.62 0.91% Aaa/AA+ 1.84 0.83% 1,983,625.65 4.71% 1,256.87 (134,485.03) AA+ 1.79 91282CBT7 UNITED STATES TREASURY 0.75 03/31/2026 2,000,000.00 04/27/2021 1,989,531.25 92.66 1,853,125.00 0.91% Aaa/AA+ 2.00 0.86% 1,995,755.44 4.64% 40.98 (142,630.44) AA+ 1.94 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 1,740,000.00 11/09/2022 1,724,978.91 99.22 1,726,474.21 0.85% Aaa/AA+ 3.50 4.32% 1,729,253.82 4.37% 196.11 (2,779.61) AA+ 3.16 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 1,500,000.00 02/23/2023 1,458,281.25 97.07 1,456,113.28 0.72% Aaa/AA+ 3.84 4.13% 1,467,515.99 4.34% 8,798.08 (11,402.70) AA+ 3.53 9128285M8 UNITED STATES TREASURY 3.125 11/15/2028 1,500,000.00 02/29/2024 1,425,351.56 95.25 1,428,691.41 0.70% Aaa/AA+ 4.63 4.30% 1,426,696.97 4.27% 17,771.29 1,994.44 AA+ 4.19 46,684,738.63 97.94 47,035,204.70 23.16% Aaa/AA+ 0.87 Total US Treasury 48,040,000.00 4.34% 47,427,865.50 5.16% 150,664.36 (392,660.80) AA+ 0.82 34 1QQ DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Holdings Report City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 204,025,585.13 47.70 203,083,217.47 100.00% Aa2/AA 0.70 Total Portfolio 205,587,299.57 4.41% 204,849,803.66 5.17% 499,411.17 (1,766,586.19) AA+ 0.63 Total Market Value + Accrued 203,582,628.64 35 Qtj rDocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Section 5 I Transactions 01. DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Transaction Ledger City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 ACQUISITIONS Purchase 01/12/2024 912797GB7 3,000,000.00 UNITED STATES 97.476 5.27% 2,924,266.58 0.00 (2,924,266.58) 0.00 TREASURY07/11/2024 Purchase 01/31/2024 3133EPW84 1,500,000.00 FEDERAL FARM CREDIT 99.263 4.04% 1,488,945.00 (2,098.96) (1,491,043.96) 0.00 BANKS FUNDING CORP 3.875 01/18/2029 Purchase 02/13/2024 912797GK7 2,250,000.00 UNITEDSTATES 97.504 5.29% 2,193,830.16 0.00 (2,193,830.16) 0.00 TREASURY08/08/2024 Purchase 02/21/2024 912828G38 3,000,000.00 UNITED STATES TREASURY2.25 97.945 5.15% 2,938,359.38 (18,173.08) (2,956,532.46) 0.00 11/15/2024 Purchase 03/01/2024 9128285M8 1,500,000.00 UNITED STATES TREASURY 95.023 4.30% 1,425,351.56 (13,779.19) (1,439,130.75) 0.00 3.125 11/15/2028 Purchase 03/15/2024 91282CGGO 2,700,000.00 UNITED STATES TREASURY 99.129 5.15% 2,676,480.47 (13,462.91) (2,689,943.38) 0.00 4.125 01/31/2025 Total Purchase 13,950,000.00 13,647,233.15 (47,514.14) (13,694,747.29) 0.00 TOTAL ACQUISITIONS 13,950,000.00 13,647,233.15 (47,514.14) (13,694,747.29) 0.00 DISPOSITIONS Maturity 01/11/2024 313384RR2 (3,000,000.00) FEDERALHOMELOAN 100.000 0.00% (3,000,000.00) 0.00 3,000,000.00 0.00 BAN KS01/11/2024 Maturity 01/31/2024 912828V80 (1,250,000.00) UNITED STATES TREASURY2.25 100.000 0.00% (1,250,000.00) 0.00 1,250,000.00 0.00 01/31/2024 Maturity 02/08/2024 313384SV2 (2,000,000.00) FEDERAL HOME LOAN 100.000 0.00% (2,000,000.00) 0.00 2,000,000.00 0.00 BANKS02/08/2024 Maturity 02/20/2024 912797JE8 (3,000,000.00) UNITEDSTATES 100.000 0.00% (3,000,000.00) 0.00 3,000,000.00 0.00 TREASURY02/20/2024 Maturity 02/28/2024 3130ARHG9 (1,250,000.00) FEDERAL HOME LOAN BANKS 100.000 0.00% (1,250,000.00) 0.00 1,250,000.00 0.00 2.125 02/28/2024 37 Qtj DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 ITransaction Ledger City of Tustin Consolidated Account - Account #10795 As of March 31, 2024 Transaction Type settlement CUSIP Quantity Security Description Price .. Amount Total Amount Gain Loss Date Yield Pur/Sold Maturity 03/15/2024 91282CBR1 (2,600,000.00) UNITED STATES TREASURY0.25 100.000 0.00% (2,600,000.00) 0.00 2,600,000.00 0.00 03/15/2024 Maturity 03/29/2024 246399AB5 (246,000.00) Delaware State Police Federal 100.000 0.00% (246,000.00) 0.00 246,000.00 0.00 Credit Union 3.003/29/2024 Total Maturity (13,346,000.00) (13,346,000.00) 0.00 13,346,000.00 0.00 TOTAL DISPOSITIONS (13,346,000.00) (13,346,000.00) 0.00 13,346,000.00 0.00 38 c►" DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 IImportant Disclosures As of March 31,2024 2024 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. 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. 39 QtJ DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 Benchmark Disclosures As of March 31,2024 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. DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 CITY OF TUSTIN Monthly Investment Report March 31, 2024 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 3,308.39 N/A 3,308.39 3,308.39 2016 Water Revenue Bonds, Refunding 1,248,654.93 N/A 1,248,654.93 1,248,654.93 2020 Water Revenue Bonds 638,622.70 N/A 638,622.70 638,622.70 2024 Water Revenue Bonds 4,011,903.60 N/A 4,011,903.60 4,011,903.60 CFD 04-1 907,733.67 N/A 907,733.67 907,733.67 CFD 06-1 6,420,631.46 N/A 6,420,631.46 6,420,631.46 CFD 07-1 1,501,297.90 N/A 1,501,297.90 1,501,297.90 CFD 14-1 3,113,455.93 N/A 3,113,455.93 3,113,455.93 17,845,608.58 17,845,608.58 17,845,608.58 Restricted Deposits with Fiscal Agents TOTAL 17,845,608.58 17,845,608.58 DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN PARS Post -Employment Benefits Trust Nicole Bernard Acting City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Account Report for the Period 3/1/2024 to 3/31/2024 Source Balance as of 3/1/2024 Contributions Earnings Expenses Distributions Transfers Balance as of 3/31/2024 OPEB $3,657,587.61 $0.00 $78,872.64 $1,493.50 $0.00 $0.00 $3,734,966.75 PENSION $11,664,784.36 $0.00 $251,499.62 $4,762.88 $0.00 $0.00 $11,911,521.10 Totals $15,322,371.97 $0.00 $330,372.26 $6,256.38 $0.00 $0.00 $15,6469487.85 Investment Selection Source OPEB City of Tustin - OPEB PENSION City of Tustin - Pension Investment Objective Source Individual account based on Moderate - Index. 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. 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 2.16% 3.57% 12.09% 2.69% 6.07% 6/26/2018 PENSION 2.16% 3.57% 12.09% 2.70% 6.01% 6/26/2018 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org DocuSign Envelope ID: 009D57E6-9ACB-4264-ADDC-CAF3F57A8588 '+ FINANCE DEPARTMENT USI Remembering h nn what connects us. April 25, 2024 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 March 31, 2024 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 six (6) months. Respectfully submitted, Jered Elmore, Chair City of Tustin Audit Commission Jennifer King, Finance Director/City Treasurer City of Tustin 300 Centennial Way, Tustin, CA 92780 • 714-573-3060 9 tustinca.org