HomeMy WebLinkAbout16 QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNDocusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 16 Agenda Item Reviewed: RE AGENDA PORT City Manager a5 Finance Director MEETING DATE: AUGUST 20, 2024 TO: ALDO E. SCHINDER, 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 ENDED JUNE 30, 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. FISCAL IMPACT: No fiscal impact to receive and file the report. 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. BACKGROUND AND 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 June 30, 2024 is rendered. The City's total cash and investments amounted to approximately $202 million as of June 30, 2024. The weighted average yield for the investment portfolio was 4.36%, 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 June 2024 came in at 3% higher year -over -year. Although the latest CPI is still above the Fed's inflation target of 2%, it is worth noting that the CPI has been trending downward for the past three months. Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report Quarterly Investment Report for the Period Ended June 30, 2024 August 20, 2024 Page 2 For the past three months, the labor market added jobs at a moderate pace and the national unemployment rate inched up slightly to 4.1 % from the 3.8% at the end of last quarter. The 2-year Treasury yield edged to 4.76% by June 2024, compared to a yield of 4.62% in March 2024. Similarly, the 5-year Treasury yield rose to 4.38% by June 2024, compared to a yield of 4.21 % in March 2024. PARS Pension Trust As part of the City's pension pay -down plan, the City has made contributions totaling $11.6 million to a Pension Trust, including a $2 million contribution in June 2024. The Pension Trust is held by Public Agency Retirement Services (PARS). A Pension Trust provides rate stabilization since its 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. The City's Pension Trust Fund assets amounted to $14 million on June 30, 2024. The five-year annualized return for the PARS Pension Trust Fund was 5.59%. PARS OPEB Trust The City has made $3.5 million in contributions into an Other Post -Employment Benefits (OPEB) Trust, including a $500,000 contribution in June 2024. The OPEB Trust is also held by PARS and contains 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 $4.3 million on June 30, 2024. The five-year annualized return for the PARS OPEB Trust Fund was 5.64%. Investment Compliance Certification On July 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. , ISL�'a fzv,�,� Jennifer King Finance Director/City Treasurer Attachments: 1. Investment Report Certification 2. Quarterly Investment Report for the Period Ended June 30, 2024 3. Restricted Deposits with Fiscal Agents as of June 30, 2024 4. PARS Trust Statement as of June 30, 2024 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 FINANCE DEPARTMENT USI Remembering h nn what connects us. July 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 June 30, 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, DocuSigned by: �t Vt-� ftmb 't. E3741 B0184FB464... Jered Elmore, Chair City of Tustin Audit Commission Ej DocuSig ned by: 74,; K;.4-s 86AFAFFF77473... Jennifer King, Finance Director/City Treasurer City of Tustin 300 Centennial Way, Tustin, CA 92780 • 714-573-3060 • tustinca.org Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CHANDLER it% ASSET MANAGEMENT CHANDLER ASSET MANAGEMENT I chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 TABLE OF CONTENTS City of Tustin I As of June 30, 2024 SECTION 1 I ECONOMIC UPDATE SECTION 2 1 ACCOUNT PROFILE SECTION 31 PORTFOLIO HOLDINGS SECTION 4 1 TRANSACTIONS CHANDLER ASSET MANAGEMENT Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CHANDLER ,it ASSET MANAGEMENT Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Economic Update CHANDLER ASSET MANAGEMENT Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth. 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 June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The FOMC's latest projections now suggest only one interest rate cut in 2024, with four more cuts expected in 2025 and a slightly higher long- term neutral rate. Additionally, the Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage -backed securities as per its predefined schedule of $25 billion and $35 billion per month. ■ The US Treasury yield curve shifted lower in June as economic data moderated. The 2-year Treasury yield fell 12 basis points to 4.76%, the 5-year Treasury dropped 13 basis points to 4.38%, and the 10-year Treasury yield declined 10 basis points to 4.40%. The inversion between the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at June month -end versus -37 basis points at May month -end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -106 basis points. The inversion between 3-month and 10-year Treasuries widened to -96 basis points in June from -91 basis points in May. V Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Employment 1,000 0 0 600 C 400 0 L H 11�4i19 0 -200 -400 Nonfarm Payroll (000's) J-1I IVI ILII QVCI QrC 1VVV Z.1 -70 OC 10 _p 10 11 11 _�> Source: US Department of Labor CHANDLER ASSET MANAGEMENT Unemployment Rate 25.0% Underemployment Rate (U6) 20.0% Unemployment Rate (U3) 7.15.0% 10.0°% 5.0% 0.0% Source: US Department of Labor The U.S. economy added 206,000 jobs in June, remaining ahead of consensus expectations of 190,000 jobs. The gains were broad based, with government, health care, and social assistance posting the largest gains. The three-month moving average and six-month moving average payrolls have weakened from the first quarter to 177,000 and 222,000 respectively. The unemployment rate edged up to 4.1% in June, and the labor participation rate inched up to 62.6%, remaining 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 held steady at 7.4%. Average hourly earnings rose 3.9% year -over -year in June, down from 4.1% year -over -year in May. The labor markets continue to show signs of cooling in line with the Federal Reserve's view that there has been "substantial" progress towards better balance in the labor market between demand and supply for workers. W Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Job Openings & Labor Turnover Survey 14,000 12,000 10,000 _N O O 8,000 C c m 0 6,000 0 C 4,000 2,000 0 oi-O) oil pV OS 06 -OS 09 Source: US Department of Labor Job Openings CHANDLER ASSET MANAGEMENT 117a �a 4d 117 �a 117 �a 147 �a �a �d 4d �a �a 47 `1 `1 `1 `1 `1 `1 `1 `1 `7 Oil-, Oil- `" `� `� `� `� O l a rt S 6 8 9 0 The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) increased to 8.140 million job openings in May from a downwardly revised 7.919 million in April. Job openings still represent a healthy ratio of around 1.2 jobs for each unemployed individual. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. 6� Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 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) 10.0% 9.0% 8.0% 7.0% c 6.0% M u 5.0% 0 >. 4.0% 0 3.0% 2.0% 1.0% 0.0% CHANDLER ASSET ASSET MANAGEMENT Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target 4�10 `19 �oL 2!0 �oL 19 y b �� 2!O , �oL y21 21 7d �oL ` 2!o ` �oL v/0 , y�Q �d �oL �0 , �oL 2!d �oL y-7 'I9 `1O �0 `�1 �1 2!0 , �oL � 2!0 , �oL � �d y�Q Source: US Department of Labor Source: US Department of Commerce In May, the Consumer Price Index (CPI) remained unchanged month -over -month and rose 3.3%year-over-year, reflecting broad -based cost reductions. The Core CPI, which excludes volatile food and energy components, was up 0.2% month -over -month and 3.4%year-over-year in May, down from 3.6% in April and lower than expected. The Personal Consumption Expenditures (PCE) Index decelerated in May as expected. The headline PCE deflator was unchanged in May from April versus up 0.3% in the prior month. Year -over -year, the PCE deflator rose 2.6%. The Core PCE deflator (the Fed's preferred gauge) increased 0.1% in May from the prior month versus up 0.3% in April. The Core PCE deflator also rose 2.6% year -over -year, still above the Fed's 2% inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services. Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Consumer 60.0% 50.0% 40.0% v 30.0% ;a 20.0% 10.0% 0 0.0% -10.0% -20.0% -30.0% Retail Sales YOY % Change NINE 47aL �04 19 1y �0j, �o� �O �O �°'` °� �aL �01 �°'` 047, �' �aL Source: US Department of Commerce 160 tan I Recession 120 100 a� 80 x 60 c 40 20 0 CHANDLER ASSET MANAGEMENT Consumer Confidence h.0 7.0 �,O 71 �Z 71 �-7 �1 V) 4 6 d' O � 4 6 8 O � S! Source: The Conference Board All time high is 144.70 (1131100); All time low is 25.30 (2128109) May Retail Sales increased below expectations to +0.1% after a downwardly revised -0.2%, pointing to a fatigued consumer. On a year - over -year basis, Retail Sales growth further slowed to +2.3% in May. Nonstore retailers were a bright spot in May, up 0.8% following a 1.8% decline in April. The Conference Board's Consumer Confidence Index fell to 100.4 in June from 101.3 in May. While the present situation component rose marginally, consumers are less optimistic about future expectations for business conditions and potential income increases. While the consumer has been resilient, consumption has begun to moderate in the face of higher interest rates, rising credit card balances, and growing delinquencies. IA Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Leading Indicators of Economic Activity Leading Economic Indicators (LEI) 15.0% 10.0% 5.0% 0.0% M s -5.0% 0 o -10.0% -15.0% -20.0% -25.0% ArA�`913`9600 �d`(9V •�d`08'�d`1� Source: The Conference Board CHANDLER ASSET ASSET MANAGEMENT Chicago Fed National Activity Index (CFNAI) 1.00 0.75 0.50 v ° 0.25 a a 0.00 c 0 -0.25 M -0.50 -0.75 -1.00 �a` �d` �a` �d` �d` �d` �a` �a` �:9 9� 96 00 � O� 'I? Source: Federal Reserve Bank of Chicago �a` I6O ��V The Conference Board's Leading Economic Index (LEI) declined for the third consecutive month to -0.5% in May following a -0.6% decline in April. The index declined 5.3% year -over -year. The primary drivers for the negative print were a decline in new orders, weak consumer sentiment about future business conditions, and lower building permits. The Chicago Fed National Activity Index (CFNAI) increased to 0.18 in May from -0.26 in April, surpassing consensus expectations. However, the three-month moving average fell to -0.09 in May from -0.05 in April, indicating below -trend growth expectations for the economy. F: Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Housing 2,400 2,200 2,000 1,800 c 1,600 4- 1,400 1,200 c 1,000 F- 800 600 400 0 Annualized Housing Starts ■ Multi Family Housing Starts ■Single Family Housing Starts iil�iili IIIIIIIIIII 117O �O �O �d` �OL �OL �O day a` �a` �& OQ 06 Oe 1O 1) 1Q 16 1 �O ,�) 2Q 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% CHANDLER ASSET MANAGEMENT S&P/Case-Shiller 20 City Composite Home Price Index OV 06 06> 'lO 17,1 1ST 176 176 10 Source: S&P May Housing Starts declined 5.5% month -over -month from April to 1.352 million units. This equates to -19.3% less starts compared to May 2023. Single family starts were 5.2% lower month -over -month due to higher mortgage interest rates, lack of existing unit supply and home affordability. Multi -family home starts declined 10.3% month -over -month. The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.92% in June from 7.06% in May. According to the Case-Shiller 20-City Home Price Index, housing prices rose a higher -than -expected 7.2% year -over -year in April versus March's upwardly revised 7.5% increase. Tight inventories and higher mortgage rates continue to impact affordability. 9 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Survey Based Measures 70 ISM Manufacturing 65 \ 55 50 \ Institute of Supply Management (ISM) Surveys ISM Services I CHANDLER ASSET MANAGEMENT \ EXPANDING ` , , \, A_ I \ 45 � 40 7 Z9 ,bZ9 cZ9 dr�o �0 b�O c,�o d��1 r7 �Z b�Z c�Z dr7 .6�2 c,d, �� �.s' p'� c��' d~�Q �St Source: Institute for Supply Management The Institute for Supply Management (ISM) Manufacturing index edged down to 48.5 in June from 48.7 in May. While new orders picked up, prices paid for materials fell the most in over a year. The ISM Services Index returned to contraction declining to 48.8 in June, from 53.8 in the previous month. Although the level of the decline was a surprise, the trend in the Services PMI, which applies to a larger share of US economic output, has been steadily decreasing. 10 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Gross Domestic Product (GDP) 11 Personal Consumption Expenditures 0.6% 2.1% 2.2% Gross Private Domestic Investment 0.9% 1.7% 0.2% Net Exports and Imports 0.0% 0.0% 0.3% Federal Government Expenditures 0.1% 0.5% 0.2% State and Local (Consumption and Gross 0.5% 0.5% 0.6% Investment) Total Source: US Department of Commerce 2.1% 4.9% 3.4% CHANDLER ASSET MANAGEMENT Gross Domestic Product (GDP) M 40.0% 30.0% 1.0% 20.0% 0.8% 10.0% -0.7% 0.0% _ -10.0% 0.0% -20.0% GDP QOQ % Change 0.3% -30.0% GDP YOY %Change -40.0% 1.494osP dr1 •b1 dry b� dry �_ 9 9 O O ,7 1 dry b� d/� ;0 & )' Q Source: US Department of Commerce The third and final estimate of first quarter GDP came in as expected with growth up 1.4%, a small upward revision from 1.3% in the second estimate. Notably, the personal consumption expenditures component was revised down substantially to +1.5% in the final estimate from +2.0% in the second estimate. Weaker growth in consumer spending was offset by upward revisions in other major categories, particularly gross fixed investment. The consensus projection calls for 2.0% growth in the second quarter and 2.3% growth for the full year 2024. 11 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 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 6.00% 5.00% 4.00% 01 3.00% 2.00% 1.00% 0.00% st 6 T O V 6 40 sr 07 06' OT CHANDLER ASSET MANAGEMENT Effective Federal Funds Rate Source: Federal Reserve Source: Bloomberg Recession 10 1%� 1Q 16 1�p _)0 As expected at the June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The FOMC's latest projections now suggest only one interest rate cut in 2024, with four more cuts expected in 2025 and a slightly higher long- term neutral rate. The Fed's inflation projections ticked up marginally, while unemployment and GDP growth forecasts remained steady. Additionally, the Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage -backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.7T to approximately $7.3T. 12 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 Bond Yields US Treasury Note Yields 6.0 • 2-Year 5.0 4.0 2.0 1.0 0.0 US Treasury Yield Curve 6.0 5.0 4.0 2.0 1.0 ✓ O ✓ O ✓ O ✓ O ✓ O ✓ 0.0% 4V), 001 �'72 `CI1 4h� 0(11 �''� � (10' �'� � 00' �'72 � .3 6 �y� Sys � )r 10 y 9 9 O O 1 1 �' �o /o r Source: Bloomberg Source: Bloomberg CHANDLER ASSET ASSET MANAGEMENT Jun-24 Mar-24 • Jun-23 At the end of June, the 2-year Treasury yield was 15 basis points lower, and the 10-Year Treasury yield was 56 basis points higher, year - over -year. The inversion between the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at June month -end versus -37 basis points at May month -end. The inversion has occurred since July 2022 and remains historically long. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -96 basis points in June from -91 basis points in May. 13 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CHANDLER ,it ASSET MANAGEMENT 14 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 OBJECTIVES City of Tustin I As of June 30, 2024 Investment Objectives CHANDLER ASSET MANAGEMENT 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. ChandlerAsset 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 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 PORTFOLIO CHARACTERISTICS City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 Average Maturity (yrs) 2.76 0.70 0.69 Average Modified Duration 2.56 0.63 0.62 Average Purchase Yield 4.36% 4.40% Average Market Yield Average Quality" Total Market Value 4.65% 5.13% AA+ AA+ 202,152,078 5.51% AA+ 203,497,715 CHANDLER ASSET ASSET MANAGEMENT *Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody's and Fitch. 16 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 STATEMENT OF COMPLIANCE CHANDLER ASSET ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 As of June 30, 2024 Compliance Rules Name AGENCY MORTGAGE SECURITIES (CMOS) Limit Actual Notes Status Max % (MV) 20.0 1.2 Compliant Max % Issuer (MV) 10.0 1.2 Compliant Max Maturity (Years) 5.0 4.2 Compliant Min Rating (AA- by 1) 0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Days) 180 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS) Max % (MV) 30.0 0.0 Compliant COLLATERALIZED BANK DEPOSITS Max % (MV) 100.0 0.0 Compliant Max % Issuer (MV) 30.0 0.0 Compliant Max Maturity (Years) 5.0 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max Maturity (Years) 5.0 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant COMMERCIAL PAPER Max % (MV) 30.0 0.5 Compliant Max % Issuer (Corporate & Commercial Paper; MV) 10.0 1.0 Compliant Max % Issuer (MV) 5.0 0.5 Compliant Max Maturity (Days) 270 8 Compliant Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV) 30.0 15.6 Compliant Max % Issuer (Corporate & Commercial Paper; MV) 10.0 1.0 Compliant 17 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 STATEMENT OF COMPLIANCE City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 Rules Name Limit Actual Complianci. Status Max % Issuer (MV) 5.0 1.0 Compliant Max Maturity (Years) 5 4 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/ TD) Max Maturity (Years) 5 0.0 Compliant FEDERAL AGENCIES Max % (MV) 100.0 8.3 Compliant Max % Issuer (MV) 50.0 4.1 Compliant Max Maturity (Years) 5 4 Compliant JPA INVESTMENT POOLS Max % (MV) 100.0 44.3 Compliant Max % Issuer (MV) 50.0 44.3 Compliant Max Maturity (Years) LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV) MONEY MARKET MUTUAL FUNDS Max % (MV) Max % Issuer (MV) Min Rating (AAA by 2) MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV) Max % Issuer (MV) Max Maturity (Years) Min Rating (A- by 1) MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV) Max % Issuer (MV) Max Maturity (Years) CHANDLER ASSET ASSET MANAGEMENT 5.0 0.0 Compliant 75.0 7.1 Compliant 20.0 0.4 Compliant The City of Tustin maintains adequate liquidity to cover at least six months of expected 10.0 0.4 Compliant 0.0 0.0 Compliant 30.0 0.0 Compliant 5.0 0.0 Compliant 5 0.0 Compliant 0.0 0.0 Compliant 30.0 0.0 Compliant 5.0 0.0 Compliant 5 0.0 Compliant 18 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 STATEMENT OF COMPLIANCE City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 Rules Name Limit Actual .. Status Min Rating (A- by 1) 0.0 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV) 30.0 0.6 Compliant Max % Issuer (MV) 5.0 0.1 Compliant CHANDLER ASSET ASSET MANAGEMENT Max Maturity (Years) 5 2 Compliant Min Rating (A-1 by 1 or A- by 1 if> FDIC Limit) 0.0 0.0 Compliant REPURCHASE AGREEMENTS Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Years) 1.0 0.0 Compliant U.S. TREASURIES Max % (MV) 100.0 23.0 Compliant Max % Issuer (MV) 100.0 23.0 Compliant Max Maturity (Years) 5 4 Compliant 19 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 SECTOR DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 50% 25% 0% CHANDLER ASSET ASSET MANAGEMENT LGIP US Treasury Corporate Agency LAW Cash Agency CMBS 06/30/2024 03/31/2024 Neg CD Comm Paper Money Mkt M Sector as a Percentage of Market Value Sector LGIP 0. 44.4% 46.4% US Treasury 23.0% 23.2% Corporate 15.6% 15.9% Agency 8.2% 6.8% LAIF 3.5% 3.4% Cash 2.6% 1.7% Agency CMBS 1.2% 1.5% Neg CD 0.6% 0.6% Comm Paper 0.5% 0.5% Money Mkt Fd 0.4% 0.1% 20 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 ISSUERS C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 California Asset Mgmt Program LGIP 44.40% United States US Treasury 23.00% Federal Home Loan Banks Agency 4.13% LAIF LAIF 3.50% Farm Credit System Agency 3.16% Citizens Business Bank Cash 2.58% FHLMC Agency CMBS 1.19% Toyota Motor Corporation Multiple 1.00% JPMorgan Chase & Co. Corporate 0.96% FNMA Agency 0.95% U.S. Bancorp Corporate 0.67% Salesforce, Inc. Corporate 0.49% Metropolitan Life Global Funding I Corporate 0.49% Massachusetts Mutual Life Insurance Corporate 0.49% QUALCOMM Incorporated Corporate 0.49% NextEra Energy, Inc. Corporate 0.49% PACCAR Inc Corporate 0.49% The Home Depot, Inc. Corporate 0.49% Duke Energy Corporation Corporate 0.49% Deere & Company Corporate 0.49% National Rural Utilities Cooperative Corporate 0.48% New York Life Insurance Company Corporate 0.48% Bank of America Corporation Corporate 0.48% Northern Trust Corporation Corporate 0.48% State Street Corporation Corporate 0.48% Target Corporation Corporate 0.48% Bank of Montreal Corporate 0.48% BNY Mellon Corp Corporate 0.48% 21 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 ISSUERS City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 Chubb Limited C3% CHANDLER ASSET MANAGEMENT PortfolioInvestment Type % Corporate 0.48% Pfizer Inc. Corporate 0.48% The Toronto -Dominion Bank Corporate 0.47% Caterpillar Inc. Corporate 0.47% Amazon.com, Inc. Corporate 0.46% UnitedHealth Group Incorporated Corporate 0.46% The Charles Schwab Corporation Corporate 0.46% Royal Bank of Canada Corporate 0.46% Walmart Inc. Corporate 0.41% First American Govt Oblig fund Money Mkt Fd 0.40% Northwestern Mutual Global Funding Corporate 0.34% Public Service Enterprise Group Inco Corporate 0.28% Mastercard Incorporated Corporate 0.24% Colgate-Palmolive Company Corporate 0.17% Capital One Financial Corporation Neg CD 0.12% Ally Bank Neg CD 0.12% Synchrony Bank Neg CD 0.12% Discover Bank Neg CD 0.12% The Goldman Sachs Group, Inc. Neg CD 0.11% Cash Cash 0.04% TOTAL 100.00% %ai Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 MATURITY DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 15Q,000,000 125, 00 0, 000 100,000,000 - 75,000,000 — 50,000,000 25.000,000 r11L 125,074,154.47 CHANDLER ASSET MANAGEMENT 404,55 . 10.214,077,63 It �nlk 11,383,8n.al U - _zD ZO - .� _:J - 1 1-Z Z-6 k1-4 4-1) 23 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 QUALITY DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 S&P Rating 60% 40% 20% 070 AAA AA A BBB NR 03/31/2024 0 06/30/2024 Moody's Rating 60% 40% 20% 070 AAA AA A NR 03/31/2024 0 06/30/2024 CHANDLER ASSET ASSET MANAGEMENT Fitch Rating 60%1 40% 20% 070 AAA AA A BBB NR 03/31/2024 0 06/30/2024 Rating 03/31/2024 0. 0. 06/30/2024 AAA 54.4% 55.1% AAA 33.1% 34.3% AAA 56.2% 56.7% AA 27.0% 25.3% AA 2.8% 2.8% AA 28.9% 27.7% A 13.2% 13.0% A 12.7% 12.3% A 7.1% 6.2% BBB 0.5% 0.5% NR 51.5% 50.6% BBB 0.1% 0.1% NR 4.9% 6.1% NR 7.7% 9.3% 24 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 DURATION DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 80%I 60% 40 % 20 % 0% 0-.25 r .25-.5 .5-1 1-2 2-3 3-4 06/30/2024 0 04/01/2024 CHANDLER ASSET ASSET MANAGEMENT 4-5 5-7 7+ D. , 06/30/2024 61.9% 7.0% 13.3% 6.2% 3.5% 4.7% 3.5% 0.0% 0.0% 03/31/2024 57.5% 12.3% 10.2% 9.2% 3.9% 5.5% 2.1% 0.0% 0.0% 25 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 INVESTMENT PERFORMANCE City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 Total and Realized Rate of Return: Inception 1 11/01/2020 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% km -1.00% CHANDLER ASSET ASSET MANAGEMENT 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 TOTAL RATE OF RETURN City of Tustin Cons Agg 1.22% 4.76% 3.49% 1.01% 0.90% Benchmark 0.82% 4.18% 1.85% (0.34Y.) (0.35%) Secondary Benchmark 0.94% 4.54% 2.31% 0.41% 0.34% REALIZED RATE OF RETURN r City of Tustin Cons Agg 1.08% 4.10% 3.29% 2.42% 2.19% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Secondary Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index 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 market 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. 26 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CHANDLER ,it ASSET MANAGEMENT MA Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT AGENCY 3133XVDG3 FEDERAL HOME LOAN BANKS4.375 1,000,000.00 09/26/2022 998,060.00 99.77 997,694.01 0.49% Aaa/AA+ 0.21 09/13/2024 4.48% 999,799.78 5.45% 13,125.00 (2,105.77) AA+ 0.20 3133ENL40 3130APQ81 313OAQF40 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.5 09/13/2024 FEDERAL HOME LOAN BANKS 1.0 11/08/2024 FEDERAL HOME LOAN BANKS 1.0 12/20/2024 1,000,000.00 09/08/2022 997,520.00 99.57 995,682.69 0.49% Aaa/AA+ 0.21 3.63% 999,748.95 5.60% 10,500.00 (4,066.26) AA+ 0.20 1,000,000.00 08/01/2022 954,220.00 98.35 983,479.14 0.49% Aaa/AA+ 0.36 3.09% 992,820.99 5.73% 1,472.22 (9,341.85) AA+ 0.35 1,000,000.00 08/01/2022 955,420.00 97.97 979,716.40 0.49% Aaa/AA+ 0.47 2.94% 991,196.60 5.40% 305.56 (11,480.20) AA+ 0.46 3135G04Z3 FEDERAL NATIONAL MORTGAGE 2,000,000.00 04/12/2021 1,982,980.00 95.66 1,913,280.00 0.95% Aaa/AA+ 0.96 ASSOCIATION 0.5 06/17/2025 0.71% 11996,085.18 5.17% 388.89 (82,805.18) AA+ 0.94 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 1,500,000.00 11/30/2023 1,503,345.00 99.90 1,498,492.31 0.74% Aaa/AA+ 2.38 11/17/2026 4.54% 1,502,686.51 4.67% 8,479.17 (4,194.21) AA+ 2.22 3133EPH81 FEDERAL FARM CREDIT BANKS 1,000,000.00 12/08/2023 1,001,820.00 99.78 997,805.36 0.49% Aaa/AA+ 3.26 FUNDING CORP 4.5 10/04/2027 4.45% 1,001,554.77 4.57% 10,875.00 (3,749.41) AA+ 2.97 3130AWMN7 FEDERAL HOME LOAN BANKS4.375 1,250,000.00 07/26/2023 1,255,762.50 99.58 1,244,776.38 0.62% Aaa/AA+ 3.94 06/09/2028 4.27% 1,254,671.68 4.49% 3,342.01 (9,895.31) AA+ 3.57 3133EPUN3 FEDERAL FARM CREDIT BANKS 1,500,000.00 08/29/2023 1,507,785.00 100.05 1,500,718.80 0.74% Aaa/AA+ 4.16 FUNDING CORP 4.5 08/28/2028 4.37% 1,506,483.23 4.49% 23,062.50 (5,764.43) AA+ 3.70 3130AXQK7 FEDERAL HOME LOAN BANKS4.75 1,200,000.00 12/08/2023 1,222,020.00 101.38 1,216,601.52 0.60% Aaa/AA+ 4.44 12/08/2028 4.33% 1,219,569.31 4.40% 3,641.67 (2,967.79) AA+ 3.96 3133EPW84 FEDERAL FARM CREDIT BANKS 1,500,000.00 01/29/2024 1,488,945.00 97.94 1,469,028.63 0.73% Aaa/AA+ 4.55 FUNDING CORP 3.875 01/18/2029 4.04% 11489,871.33 4.38% 26,317.71 (20,842.70) AA+ 4.05 3130AVBD3 FEDERAL HOME LOAN BANKS 4.5 1,400,000.00 04/25/2024 1,384,040.00 100.42 1,405,882.48 0.70% Aaa/AA+ 4.69 03/09/2029 4.76% 1,384,632.44 4.40% 19,600.00 21,250.04 AA+ 4.13 3133ERAK7 FEDERAL FARM CREDIT BANKS 1,400,000.00 04/25/2024 1,376,046.00 99.92 1,398,925.63 0.69% Aaa/AA+ 4.78 FUNDING CORP 4.375 04/10/2029 4.77% 11376,868.34 4.39% 13,781.25 22,057.28 AA+ 4.23 16,627,963.51 99.14 16,602,083.33 8.23% Aaa/AA+ 2.80 Total Agency 16,750,000.00 3.80% 16,715,989.12 4.81% 134,890.97 (113,905.79) AA+ 2.52 AGENCY CMBS Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 3137BDCW4 FHMS K-039 A2 3.303 07/25/2024 243,895.35 04/19/2022 245,838.89 99.62 242,961.21 0.12% Aaa/AA+ 0.07 2.76% 243,895.35 5.70% 671.32 (934.14) AAA 0.07 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 750,000.00 06/08/2023 719,560.55 95.59 716,954.78 0.36% Aaa/AA+ 2.82 4.39% 727,981.84 4.94% 2,026.88 (11,027.06) AAA 2.55 3137FEZU7 FHMS K-076 A2 3.9 04/25/2028 750,000.00 10/30/2023 708,310.55 96.65 724,896.00 0.36% Aaa/AA+ 3.82 5.32% 714,569.14 4.86% 2,437.50 10,326.86 AAA 3.38 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 10/30/2023 705,556.64 96.54 724,045.65 0.36% Aaa/AA+ 4.24 5.31% 711,650.29 4.82% 2,450.00 12,395.36 AAA 3.74 2,379,266.63 96.60 2,408,857.63 1.19% Aaa/AA+ 3.27 Total Agency CMBS 2,493,895.35 4.78% 2,398,096.62 4.95% 7,585.70 10,761.01 AAA 2.91 CASH CCYUSD Receivable 789.01 -- 789.01 1.00 789.01 0.00% Aaa/AAA 0.00 0.00% 789.01 0.00% 0.00 0.00 AAA 0.00 CCYUSD Receivable 13,274.01 -- 13,274.01 1.00 13,274.01 0.01% Aaa/AAA 0.00 0.00% 13,274.01 0.00% 0.00 0.00 AAA 0.00 CCYUSD Receivable 76,436.57 -- 76,436.57 1.00 76,436.57 0.04% Aaa/AAA 0.00 0.00% 76,436.57 0.00% 0.00 0.00 AAA 0.00 CBGMMF$03 Citizens Business Bank 1,812,290.03 06/28/2024 0.00% 1,812,290.03 1,812,290.03 1.00 0.00% 1,812,290.03 0.00 0.90% 0.00 NA/NA NA 0.00 0.00 CBGMMF$04 Citizens Business Bank 3,387,979.46 -- 3,387,979.46 1.00 3,387,979.46 1.68% NA/NA 0.00 0.00% 3,387,979.46 0.00% 0.00 0.00 NA 0.00 5,290,769.08 1.00 5,290,769.08 2.62% Aaa/AAA 0.00 Total Cash 5,290,769.08 0.00% 5,290,769.08 0.00% 0.00 0.00 AAA 0.00 COMMERCIAL PAPER 89233GG83 Toyota Motor Credit Corporation 1,000,000.00 10/12/2023 958,454.44 99.85 998,529.00 0.50% P-1/A-1+ 0.02 07/08/2024 5.76% 998,918.89 5.41% 0.00 (389.89) F1 0.02 Total Commercial 958,454.44 99.85 998,529.00 0.50% P-1/A-1+ 0.02 Paper 1,000,000.00 5.76% 998,918.89 5.41% 0.00 (389.89) F1 0.02 29 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT CORPORATE 79466LAG9 SALESFORCE INC 0.625 07/15/2024 1,000,000.00 04/25/2022 951,860.00 99.81 998,078.73 0.49% Al/A+ 0.04 2.85% 999,167.95 5.23% 2,881.94 (1,089.22) NA 0.04 59217GEPO METROPOLITAN LIFE GLOBAL 1,000,000.00 01/18/2022 979,170.00 98.82 988,229.55 0.49% Aa3/AA- 0.24 FUNDING 1 0.709/27/2024 1.49% 998,131.46 5.63% 1,827.78 (9,901.91) AA- 0.24 24422EVY2 JOHN DEERE CAPITAL CORP 1.25 1,000,000.00 02/04/2022 985,080.00 97.80 978,021.52 0.49% Al/A 0.53 01/10/2025 1.77% 997,301.25 5.53% 5,937.50 (19,279.73) A+ 0.51 57629WCG3 MASSMUTUAL GLOBAL FUNDING 11 1,000,000.00 03/23/2022 1,004,360.00 98.64 986,433.03 0.49% Aa3/AA+ 0.53 2.95 01/11/2025 2.79% 1,000,826.82 5.58% 13,930.56 (14,393.79) AA+ 0.51 64952WEK5 NEW YORK LIFE GLOBAL FUNDING 1,000,000.00 01/18/2022 996,780.00 97.74 977,417.41 0.48% Aaa/AA+ 0.54 1.45 01/14/2025 1.56% 999,418.04 5.76% 6,726.39 (22,000.63) AAA 0.52 63743HFC1 NATIONAL RURAL UTILITIES 1,000,000.00 03/23/2022 972,740.00 97.80 977,970.53 0.48% A2/A- 0.61 COOPERATIVE FINANCE CORP 1.875 2.86% 994,262.42 5.64% 7,500.00 (16,291.89) A 0.58 02/07/2025 57636QAN4 MASTERCARD INC 2.0 03/03/2025 500,000.00 11/01/2021 515,365.00 97.81 489,026.81 0.24% Aa3/A+ 0.67 1.03% 502,842.44 5.35% 3,277.78 (13,815.63) NA 0.65 69371RR73 PACCAR FINANCIAL CORP 2.85 1,000,000.00 03/31/2022 999,740.00 98.01 980,093.16 0.49% Al/A+ 0.77 04/07/2025 2.86% 999,933.58 5.52% 6,650.00 (19,840.42) NA 0.74 437076CM2 HOME DEPOT INC 2.7 04/15/2025 1,000,000.00 03/28/2022 995,620.00 97.97 979,711.89 0.49% A2/A 0.79 2.85% 998,865.61 5.35% 5,700.00 (19,153.72) A 0.76 87612EBL9 TARGET CORP 2.25 04/15/2025 1,000,000.00 02/04/2022 1,010,340.00 97.57 975,672.11 0.48% A2/A 0.79 1.90% 1,002,375.08 5.43% 4,750.00 (26,702.97) A 0.77 06406RAN7 BANK OF NEW YORK MELLON CORP 1,000,000.00 02/04/2022 989,120.00 96.93 969,321.80 0.48% Al/A 0.82 1.6 04/24/2025 1.95% 997,240.51 5.49% 2,977.78 (27,918.71) AA- 0.79 06367WB85 BANK OF MONTREAL 1.85 1,000,000.00 08/17/2021 1,034,530.00 97.00 970,003.15 0.48% A2/A- 0.84 05/01/2025 0.91% 1,007,769.89 5.57% 3,083.33 (37,766.74) AA- 0.81 91159HHZ6 US BANCORP 1.45 05/12/2025 1,400,000.00 12/23/2021 1,406,818.00 96.58 1,352,111.17 0.67% A3/A 0.87 1.30% 1,401,631.64 5.54% 2,763.06 (49,520.47) A 0.84 747525AFO QUALCOMM INC 3.45 05/20/2025 11000,000.00 03/23/2022 1,018,960.00 98.36 983,588.03 0.49% A2/A 0.89 2.76% 1,004,290.12 5.36% 3,929.17 (20,702.09) NA 0.86 30 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 717081EX7 PFIZER INC 0.8 05/28/2025 1,000,000.00 03/23/2022 945,010.00 95.99 959,905.30 0.48% A2/A 0.91 2.59% 984,308.89 5.37% 733.33 (24,403.59) WR 0.89 66815L2J7 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.007/01/2025 194162AM5 COLGATE-PALMOLIVE CO 3.1 08/15/2025 700,000.00 06/30/2022 703,738.00 98.74 3.81% 701,249.42 5.31% 345,000.00 08/01/2022 344,682.60 97.84 3.13% 344,881.91 5.10% 691,185.43 0.34% Aaa/AA+ 1.00 14,000.00 (10,063.99) AAA 0.95 337,536.28 0.17% Aa3/A+ 1.13 4,040.33 (7,345.63) NA 1.07 26442UAA2 DUKE ENERGY PROGRESS LLC 3.25 1,000,000.00 04/25/2022 1,000,280.00 97.80 978,025.53 0.49% Aa3/A 1.13 08/15/2025 3.24% 1,000,081.68 5.28% 12,277.78 (22,056.15) WR 1.07 89114QCK2 14913R2H9 857477BR3 06051GHY8 TORONTO-DOMINION BANK 0.75 09/11/2025 CATERPILLAR FINANCIAL SERVICES CORP 0.8 11/13/2025 STATE STREET CORP 1.746 02/06/2026 BANK OF AMERICA CORP 2.015 02/13/2026 1,000,000.00 08/17/2021 993,000.00 94.62 0.92% 997,938.68 5.45% 1,000,000.00 04/21/2021 991,780.00 94.27 0.98% 997,531.53 5.18% 1,000,000.00 978,258.70 97.57 2.61% 995,007.59 5.84% 1,000,000.00 04/20/2021 1,030,470.00 97.71 1.07% 1,005,789.78 6.10% 946,242.16 0.47% Al/A 1.20 2,291.67 (51,696.52) AA- 1.16 942,748.90 0.47% A2/A 1.37 1,066.67 (54,782.63) A+ 1.33 975,733.57 0.48% Al/A 1.61 7,032.50 (19,274.02) AA- 0.58 977,112.70 0.48% Al/A- 1.62 7,724.17 (28,677.08) AA- 0.60 46647PBK1 JPMORGAN CHASE & CO 2.083 2,000,000.00 2,072,110.00 97.11 1,942,121.04 0.96% Al/A- 1.81 04/22/2026 0.97% 2,017,700.56 6.58% 7,984.83 (75,579.52) AA- 0.78 00440EAV9 CHUBB INA HOLDINGS LLC 3.35 1,000,000.00 07/23/2021 1,102,780.00 96.76 967,643.77 0.48% A3/A 1.84 05/03/2026 0.98% 1,037,066.89 5.21% 5,397.22 (69,423.12) A 1.75 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,000,000.00 05/12/2021 995,200.00 93.03 930,324.26 0.46% Al/AA 1.87 1.10% 998,210.52 4.95% 1,361.11 (67,886.26) AA- 1.81 808513BR5 CHARLES SCHWAB CORP 1.15 1,000,000.00 07/23/2021 1,007,990.00 92.48 924,764.86 0.46% A2/A- 1.87 05/13/2026 0.98% 1,003,044.97 5.44% 1,533.33 (78,280.11) A 1.80 91324PEC2 UNITEDHEALTH GROUP INC 1.15 1,000,000.00 07/28/2021 1,007,110.00 92.96 929,569.57 0.46% A2/A+ 1.87 05/15/2026 1.00% 1,002,719.37 5.14% 1,469.44 (73,149.80) A 1.81 78016EZT7 ROYAL BANK OF CANADA 1.15 1,000,000.00 07/28/2021 999,090.00 92.17 921,712.99 0.46% Al/A 2.04 07/14/2026 1.17% 999,626.45 5.25% 5,334.72 (77,913.46) AA- 1.96 931142ERO WALMART INC 1.05 09/17/2026 900,000.00 09/22/2021 902,277.00 92.18 829,653.40 0.41% Aa2/AA 2.22 1.00% 900,995.41 4.81% 2,730.00 (71,342.01) AA 2.14 665859AW4 NORTHERN TRUST CORP 4.0 1,000,000.00 01/30/2023 986,540.00 97.61 976,140.17 0.48% A2/A+ 2.86 05/10/2027 4.35% 990,995.01 4.90% 5,666.67 (14,854.84) A+ 2.65 31 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 74456QBU9 PUBLICSERVICE ELECTRICAND GAS 600,000.00 06/29/2023 570,144.00 95.75 574,512.52 0.28% Al/A 3.84 CO 3.7 05/01/2028 4.87% 576,344.99 4.93% 3,700.00 (1,832.48) WR 3.50 341081GN1 FLORIDA POWER & LIGHTCO 4.4 1,000,000.00 06/07/2023 987,550.00 98.22 982,166.46 0.49% Aa2/A+ 3.88 05/15/2028 4.69% 990,230.69 4.91% 5,622.22 (8,064.23) AA- 3.50 89236TLB9 TOYOTA MOTOR CREDIT CORP 5.25 1,000,000.00 09/26/2023 996,180.00 101.14 1,011,444.43 0.50% Al/A+ 4.20 09/11/2028 5.34% 996,764.61 4.94% 16,041.67 14,679.82 A+ 3.68 32,474,673.30 96.84 31,404,222.22 15.57% Al/A 1.42 Total Corporate 32,445,000.00 2.16% 32,444,545.78 5.44% 177,942.94 (1,040,323.56) A+ 1.22 LAIF 90LAIF$00 Local Agency Investment Fund State 7,055,888.33 -- 7,055,888.33 1.00 7,055,888.33 3.50% NA/NA 0.00 Pool 4.56% 7,055,888.33 4.56% 0.00 0.00 NA 0.00 7,055,888.33 1.00 7,055,888.33 3.50% NA/NA 0.00 Total LAIF 7,055,888.33 4.56% 7,055,888.33 4.56% 0.00 0.00 NA 0.00 LOCAL GOV INVESTMENT POOL 90CAMP$00 CAMP Total Local Gov Investment Pool MONEY MARKET FUND 31846V203 31846V203 FIRST AMER:GVT OBLG Y FIRST AMER:GVT OBLG Y 89,532,930.31 -- 89,532,930.30 1.00 89,532,930.31 5.44% 89,532,930.30 5.44% 0.00 89,532,930.30 1.00 89,532,930.31 89,532,930.31 5.44% 89,532,930.30 5.44% 0.00 123,972.33 -- 123,972.33 1.00 123,972.33 4.92% 123,972.33 4.92% 0.00 688,052.53 -- 688,052.53 1.00 688,052.53 4.92% 688,052.53 4.92% 0.00 44.40% NA/AAAm 0.00 0.01 AAA 0.00 NA/ 44.40% AAAm 0.00 0.01 AAA 0.00 0.06% Aaa/ 0.00 0.00 AAAm 0.00 AAA 0.34% Aaa/ 0.00 0.00 AAAm 0.00 AAA 32 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT Aaa/ Total Money Market 812,024.86 1.00 812,024.86 0.40% AAAm 0.00 Fund 812,024.86 4.92% 812,024.86 4.92% 0.00 0.00 AAA 0.00 NEGOTIABLE CD 14042T1B4 Capital One Bank (USA), National 240,000.00 08/01/2022 239,640.00 98.17 235,604.82 0.12% WR/BBB+ 1.10 Association 3.45 08/04/2025 3.50% 239,869.06 5.24% 3,380.05 (4,264.24) A 1.04 02007GXF5 Ally Bank 3.4 08/04/2025 240,000.00 08/02/2022 239,280.00 98.11 235,456.22 0.12% A3/BBB- 1.10 3.50% 239,737.88 5.25% 3,308.71 (4,281.67) NA 1.04 87165EXE2 Synchrony Bank 3.408/05/2025 240,000.00 08/01/2022 239,640.00 98.10 235,447.29 0.12% NA/BBB 1.10 3.45% 239,868.61 5.25% 3,332.00 (4,421.32) BBB 1.05 2546731326 Discover Bank 3.4 08/08/2025 240,000.00 08/01/2022 239,280.00 98.09 235,420.61 0.12% A2/BBB 1.11 3.50% 239,735.25 5.24% 3,219.29 (4,314.64) A- 1.05 38149MYS6 Goldman Sachs Bank USA 1.05 245,000.00 08/17/2021 243,775.00 92.23 225,975.33 0.11% Al/A+ 2.15 08/25/2026 1.15% 244,473.37 4.93% 895.09 (18,498.05) AA- 2.07 1,201,615.00 96.98 1,167,904.26 0.58% A2/BBB 1.30 Total Negotiable CD 1,205,000.00 3.04% 1,203,684.18 5.18% 14,135.14 (35,779.92) A- 1.24 US TREASURY 912797GB7 UNITED STATES TREASURY 3,000,000.00 01/11/2024 2,924,266.58 99.85 2,995,623.60 1.49% P-1/A-1+ 0.03 07/11/2024 5.24% 2,995,815.83 4.86% 0.00 (192.23) F1+ 0.03 91282CCL3 UNITED STATES TREASURY0.375 1,250,000.00 03/23/2022 1,197,802.73 99.81 1,247,601.88 0.62% Aaa/AA+ 0.04 07/15/2024 2.22% 1,249,134.17 5.03% 2,163.46 (1,532.29) AA+ 0.04 91282CFA4 UNITED STATES TREASURY3.0 2,500,000.00 08/18/2023 2,446,484.38 99.80 2,495,068.98 1.24% Aaa/AA+ 0.08 07/31/2024 5.36% 2,495,346.47 5.26% 31,318.68 (277.49) AA+ 0.08 912797GK7 UNITED STATES TREASURY 4,750,000.00 -- 4,569,728.60 99.45 4,723,714.69 2.34% P-1/A-1+ 0.11 08/08/2024 5.32% 4,724,581.56 5.22% 0.00 (866.88) F1+ 0.11 9128282U3 UNITED STATES TREASURY1.875 1,250,000.00 03/23/2022 1,238,085.94 99.39 1,242,415.36 0.62% Aaa/AA+ 0.17 08/31/2024 2.28% 1,249,184.33 5.48% 7,833.73 (6,768.97) AA+ 0.17 912797GL5 UNITED STATES TREASURY 4,500,000.00 09/14/2023 4,271,826.25 99.04 4,456,942.20 2.21% P-1/A-1+ 0.18 09/05/2024 5.42% 4,457,698.13 5.28% 0.00 (755.93) F1+ 0.18 33 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 912797GW1 UNITED STATES TREASURY 3,000,000.00 10/23/2023 2,852,512.50 98.65 2,959,462.50 1.47% P-1/A-1+ 0.26 10/03/2024 5.42% 2,959,815.00 5.28% 0.00 (352.50) F1+ 0.26 912828YM6 UNITED STATES TREASURY1.5 1,250,000.00 03/23/2022 1,224,902.34 98.72 1,233,951.83 0.61% Aaa/AA+ 0.34 10/31/2024 2.29% 1,246,783.70 5.40% 3,158.97 (12,831.88) AA+ 0.33 912828G38 UNITED STATES TREASURY2.25 3,000,000.00 02/20/2024 2,938,359.38 98.84 2,965,312.50 1.47% Aaa/AA+ 0.38 11/15/2024 5.15% 2,968,489.68 5.38% 8,620.92 (3,177.18) AA+ 0.37 912828YV6 UNITED STATES TREASURY1.5 1,250,000.00 03/23/2022 1,223,486.33 98.43 1,230,395.51 0.61% Aaa/AA+ 0.42 11/30/2024 2.31% 1,245,896.05 5.33% 1,588.11 (15,500.54) AA+ 0.41 912797LPO UNITED STATES TREASURY 2,500,000.00 06/13/2024 2,436,504.68 97.67 2,441,668.95 1.21% P-1/A-1+ 0.45 12/12/2024 5.34% 2,441,498.69 5.28% 0.00 170.26 F1+ 0.44 912828YYO UNITED STATES TREASURY1.75 1,300,000.00 05/18/2022 1,263,335.94 98.24 1,277,148.44 0.63% Aaa/AA+ 0.50 12/31/2024 2.87% 1,292,989.00 5.36% 61.82 (15,840.56) AA+ 0.49 91282CGGO UNITED STATES TREASURY 4.125 2,700,000.00 03/14/2024 2,676,480.47 99.31 2,681,252.93 1.33% Aaa/AA+ 0.59 01/31/2025 5.15% 2,684,369.01 5.34% 46,508.24 (3,116.08) AA+ 0.56 912797KA4 UNITED STATES TREASURY 2,500,000.00 04/18/2024 2,394,087.13 96.77 2,419,156.25 1.20% P-1/A-1+ 0.64 02/20/2025 5.22% 2,419,271.62 5.18% 0.00 (115.37) F1+ 0.63 91282CEQO UNITED STATES TREASURY2.75 2,500,000.00 05/30/2024 2,443,164.06 97.93 2,448,291.03 1.21% Aaa/AA+ 0.87 05/15/2025 5.22% 2,448,212.52 5.19% 8,780.57 78.50 AA+ 0.85 91282CBH3 UNITED STATES TREASURY 0.375 2,000,000.00 04/27/2021 1,957,500.00 93.20 1,863,984.38 0.92% Aaa/AA+ 1.59 01/31/2026 0.83% 1,985,849.63 4.89% 3,131.87 (121,865.25) AA+ 1.54 91282CBT7 UNITED STATES TREASURY0.75 03/31/2026 91282CFM8 UNITED STATES TREASURY4.125 09/30/2027 91282CGH8 UNITED STATES TREASURY3.5 01/31/2028 2,000,000.00 04/27/2021 0.86% 1,989,531.25 1,996,285.28 93.26 4.81% 1,865,156.24 3,770.49 0.92% (131,129.04) Aaa/AA+ AA+ 1.75 1.70 1,740,000.00 11/09/2022 1,724,978.91 98.87 1,720,289.07 0.85% Aaa/AA+ 3.25 4.32% 1,730,019.60 4.50% 18,041.80 (9,730.53) AA+ 2.98 1,500,000.00 02/23/2023 1,458,281.25 96.85 1,452,714.84 0.72% Aaa/AA+ 3.59 4.13% 1,469,627.45 4.46% 21,923.08 (16,912.61) AA+ 3.27 9128285M8 UNITED STATES TREASURY3.125 1,500,000.00 02/29/2024 1,425,351.56 94.96 1,424,355.47 0.71% Aaa/AA+ 4.38 11/15/2028 4.30% 1,430,646.39 4.40% 5,986.75 (6,290.93) AA+ 4.01 9128286T2 UNITED STATES TREASURY2.375 1,350,000.00 05/16/2024 1,228,130.86 91.32 1,232,824.21 0.61% Aaa/AA+ 4.87 05/15/2029 4.41% 1,231,137.50 4.37% 4,094.94 1,686.71 AA+ 4.51 45,884,801.14 98.01 46,377,330.84 23.00% Aaa/AA+ 0.88 Total US Treasury 47,340,000.00 4.42% 46,722,651.64 5.11% 166,983.44 (345,320.79) AA+ 0.83 34 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 202,218,386.59 48.51 201,650,539.87 100.00% Aa2/AA 0.70 Total Portfolio 203,925,507.93 4.36% 203,175,498.79 5.13% 501,538.20 (1,524,958.92) AA+ 0.63 Total Market Value + Accrued 202,152,078.08 35 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CHANDLER ,it ASSET MANAGEMENT 36 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 TRANSACTION LEDGER CHANDLER ASSET ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 04/01/2024 Through 06/30/2024 1 Transaction Settlement . .Interest Pur/ Total Amount Gain/Loss Type .. Sold ACQUISITIONS Purchase 04/19/2024 912797KA4 2,500,000.00 UNITED STATES 95.763 5.22% (2,394,087.13) 0.00 (2,394,087.13) 0.00 TREASURY 02/20/2025 Purchase 04/26/2024 3130AVBD3 1,400,000.00 FEDERAL HOME LOAN 98.860 4.76% (1,384,040.00) (8,225.00) (1,392,265.00) 0.00 BANKS 4.5 03/09/2029 Purchase 04/30/2024 90CAMP$00 407,765.18 CAMP 1.000 0.00% (407,765.18) 0.00 (407,765.18) 0.00 Purchase 04/30/2024 3133ERAK7 1,400,000.00 FEDERAL FARM CREDIT 98.289 4.77% (1,376,046.00) (3,402.78) (1,379,448.78) 0.00 BANKS FUNDING CORP 4.375 04/10/2029 Purchase 04/30/2024 90CAMP$00 4,000,000.00 CAMP 1.000 0.00% (4,000,000.00) 0.00 (4,000,000.00) 0.00 Purchase 04/30/2024 CBGMMF$03 22,833,486.00 Citizens Business Bank 1.000 0.00% (22,833,486.00) 0.00 (22,833,486.00) 0.00 Purchase 05/17/2024 9128286T2 1,350,000.00 UNITEDSTATES 90.973 4.41% (1,228,130.86) (174.25) (1,228,305.11) 0.00 TREASURY 2.375 05/15/2029 Purchase 05/31/2024 90CAMP$00 417,713.23 CAMP 1.000 0.00% (417,713.23) 0.00 (417,713.23) 0.00 Purchase 05/31/2024 91282CEQO 2,500,000.00 UNITED STATES 97.727 5.22% (2,443,164.06) (2,989.13) (2,446,153.19) 0.00 TREASURY 2.75 05/15/2025 Purchase 05/31/2024 CBGMMF$04 3,154,211.00 Citizens Business Bank 1.000 0.00% (3,154,211.00) 0.00 (3,154,211.00) 0.00 Purchase 05/31/2024 90CAMP$00 5,000,000.00 CAMP 1.000 0.00% (5,000,000.00) 0.00 (5,000,000.00) 0.00 Purchase 05/31/2024 CBGMMF$03 29,558,405.63 Citizens Business Bank 1.000 0.00% (29,558,405.63) 0.00 (29,558,405.63) 0.00 37 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 TRANSACTION LEDGER CHANDLER ASSET ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 04/01/2024 Through 06/30/2024 1 Transaction Settlement . .Interest Pur/ Total Amount Gain/Loss Type .. Sold Purchase 06/17/2024 912797LPO 2,500,000.00 UNITEDSTATES 97.460 5.34% (2,436,504.68) 0.00 (2,436,504.68) 0.00 TREASURY 12/12/2024 Purchase 06/28/2024 90CAMP$00 403,252.76 CAMP 1.000 0.00% (403,252.76) 0.00 (403,252.76) 0.00 Purchase 06/28/2024 CBGMMF$03 11,852,574.88 Citizens Business Bank 1.000 0.00% (11,852,574.88) 0.00 (11,852,574.88) 0.00 Total Purchase 89,277,408.68 (88,889,381.41) (14,791.16) (88,904,172.57) 0.00 TOTAL ACQUISITIONS 89,277,408.68 (88,889,381.41) (14,791.16) (88,904,172.57) 0.00 DISPOSITIONS Call 04/17/2024 61747YEQ4 (1,000,000.00) MORGAN STANLEY 100.000 0.00% 1,000,000.00 0.00 1,000,000.00 0.00 Redemption 3.62 04/17/2025 Total Call Redemption (1,000,000.00) 1,000,000.00 0.00 1,000,000.00 0.00 Maturity 04/15/2024 91282CBV2 (2,500,000.00) UNITEDSTATES 100.000 0.38% 2,500,000.00 0.00 2,500,000.00 0.00 TREASURY 0.375 04/15/2024 Maturity 04/30/2024 912828X70 (1,250,000.00) UNITED STATES 100.000 2.00% 1,250,000.00 0.00 1,250,000.00 0.00 TREASURY 2.0 04/30/2024 Maturity 05/15/2024 912828WJ5 (1,000,000.00) UNITEDSTATES 100.000 2.50% 1,000,000.00 0.00 1,000,000.00 0.00 TREASURY 2.5 05/15/2024 Maturity 05/31/2024 912828XT2 (2,500,000.00) UNITEDSTATES 100.000 2.00% 2,500,000.00 0.00 2,500,000.00 0.00 TREASURY 2.0 05/31/2024 Maturity 06/15/2024 91282CCG4 (2,300,000.00) UNITED STATES 100.000 0.25% 2,300,000.00 0.00 2,300,000.00 0.00 TREASURY 0.25 06/15/2024 Total Maturity (9,550,000.00) 9,550,000.00 0.00 9,550,000.00 0.00 Sale 04/30/2024 CBGMMF$03 (21,888,192.75) Citizens Business Bank 1.000 0.00% 21,888,192.75 0.00 21,888,192.75 0.00 M Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 TRANSACTION LEDGER CHANDLER ASSET ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 04/01/2024 Through 06/30/2024 1 Transaction Settlement Type .. Sale 04/30/2024 90CAMP$00 (5,000,000.00) CAMP 1.000 .. .Interest 0.00% 5,000,000.00 Pur/ Sold 0.00 Total Amount 5,000,000.00 Gain/Loss 0.00 Sale 05/31/2024 CBGMMF$03 (28,088,195.63) Citizens Business Bank 1.000 0.00% 28,088,195.63 0.00 28,088,195.63 0.00 Sale 05/31/2024 90CAMP$00 (5,000,000.00) CAMP 1.000 0.00% 5,000,000.00 0.00 5,000,000.00 0.00 Sale 06/07/2024 90CAMP$00 (4,000,000.00) CAMP 1.000 0.00% 4,000,000.00 0.00 4,000,000.00 0.00 Sale 06/21/2024 90CAMP$00 (1,000,000.00) CAMP 1.000 0.00% 1,000,000.00 0.00 1,000,000.00 0.00 Sale 06/28/2024 CBGMMF$03 (15,266,953.07) Citizens Business Bank 1.000 0.00% 15,266,953.07 0.00 15,266,953.07 0.00 Total Sale (80,243,341.45) 80,243,341.45 0.00 80,243,341.45 0.00 TOTAL DISPOSITIONS (90,793,341.45) 90,793,341.45 0.00 90,793,341.45 0.00 39 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 IMPORTANT DISCLOSURES City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. CHANDLER ASSET MANAGEMENT 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. 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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. 40 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 BENCHMARK DISCLOSURES City of Tustin Cons Account I Account #10795 1 As of June 30, 2024 CHANDLER ASSET ASSET MANAGEMENT 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. 41 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 CITY OF TUSTIN Monthly Investment Report June 30, 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 3,350.27 N/A 3,350.27 3,350.27 2016 Water Revenue Bonds, Refunding 1,976.35 N/A 1,976.35 1,976.35 2020 Water Revenue Bonds 2,444.33 N/A 2,444.33 2,444.33 2024 Water Revenue Bonds 4,065,017.01 N/A 4,065,017.01 4,065,017.01 CFD 04-1 1,207,803.61 N/A 1,207,803.61 1,207,803.61 CFD 06-1 7,076,270.53 N/A 7,076,270.53 7,076,270.53 CFD 07-1 2,077,425.02 N/A 2,077,425.02 2,077,425.02 CFD 14-1 3,826,236.61 N/A 3,826,236.61 3,826,236.61 18,260,523.73 18,260,523.73 18,260,523.73 Restricted Deposits with Fiscal Agents TOTAL 18,260,523.73 18,260,523.73 Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D2348lF1D15 PUBLIC AGENCY �� ■ RETIREMENT SERVICES CITY OF TUSTIN Account Report for the Period PARS Post -Employment Benefits Trust 6/1/2024 to 6/30/2024 Nicole Bernard Acting City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Balance as of Balance as of Source 6/1/2024 Contributions Earnings Expenses Distributions Transfers 6/30/2024 OPEB $3,722,633.62 $500,000.00 $47,885.59 $1,512.22 $0.00 $0.00 $4,269,006.99 PENSION $11,872,211.69 $2,000,000.00 $156,709.40 $4,822.85 $0.00 $0.00 $14,024,098.24 Totals $15,594,845.31 $2,500,000.00 $204,594.99 $6,335.07 $0.00 $0.00 $18,293,105.23 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 1.18% 0.92% 10.16% 1.52% 5.64% 6/26/2018 PENSION 1.18% 0.94% 10.19% 1.54% 5.59% 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