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HomeMy WebLinkAbout08 QUARTERLY INVESTMENT REPORT FOR QUARTER ENDED DECEMBER 31, 2024Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 • AGENDA REPORT MEETING DATE: FEBRUARY 4, 2025 TO FROM SUBJECT SUMMARY: ALDO E. SCHINDER, CITY MANAGER Agenda Item 8 g-Fn+tfai— Reviewed: a`f s City Manager _ Initial - Finance Director JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY FOR THE QUARTER ENDED DECEMBER 31, 2024 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: There is no fiscal impact associated with this item. 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 December 31, 2024 is rendered. The City's total cash and investments amounted to approximately $204 million as of December 31, 2024. The weighted average yield for the investment portfolio was 4.07%, which is slightly lower than the weighted average portfolio yield for the prior quarter. During this quarter, the Federal Open Market Committee (FOMC) delivered two more 25 basis Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 City Council Agenda Report Quarterly Investment Report for the Period Ended December 31, 2024 February 4, 2025 Page 2 points reductions to the Federal Funds rate in its continuing effort toward the two percent inflation target. However, core inflation remains elevated and labor market growth trends above expectations. The Consumer Price Index (CPI) for December 2024 came in at 2.8% higher year -over -year with core CPI (excluding food and energy) at 3.3% higher year -over - year. For the past three months, the labor market added jobs at a pace exceeding expectations, especially during the December holiday month. The national unemployment rate remains at 4.1 %. As a result of the rate cuts, the 2-year Treasury yield inched up to 4.24% by December 2024, compared to a yield of 3.64% in September 2024. Similarly, the 5-year Treasury yield rose to 4.38% by December 2024, compared to a yield of 3.56% in September 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. 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 CaIPERS 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 $14.7 million on December 31, 2024. The five-year annualized return for the PARS Pension Trust Fund was 5.54%. PARS OPEB Trust The City has made $3.5 million in contributions into an Other Post -Employment Benefits (OPEB) Trust. 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 $4.5 million on December 31, 2024. The five-year annualized return for the PARS OPEB Trust Fund was 5.53%. Investment Compliance Certification On January 23, 2025, 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. Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 City Council Agenda Report Quarterly Investment Report for the Period Ended December 31, 2024 February 4, 2025 Page 3 ��Sii1gAAn'eAAd Iby: 4DS6AFAFFF77473... Jennifer King Finance Director/City Treasurer Attachments: 1. Investment Report Certification 2. Quarterly Investment Report for the Period Ended December 31, 2024 3. Restricted Deposits with Fiscal Agents as of December 31, 2024 4. PARS Trust Statement as of December 31, 2024 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 FINANCE DEPARTMENT Remembering what connects us. January 23, 2025 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 December 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 anticipated expenditures for the next six (6) months. Respectfulty submitted, J44f-11� John \Wide, Chair Jennifer King, Finance Director/City Treasurer City of Tustin Audit Commission City of Tustin 300 Centennial Way, Tustin, CA 92780 ■ 714-573-3060 ■ tustinca.org Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 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: ECC776D0-50E5-49AD-B095-50BB8D28F930 TABLE OF CONTENTS City of Tustin I As of December 31, 2024 ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS CHANDLER ASSET ASSET MANAGEMENT Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 CHANDLER it% ASSET MANAGEMENT Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 ECONOMIC UPDATE CHANDLER ASSET ASSET MANAGEMENT Recent economic data suggests continued growth fueled by a resilient consumer. Inflationary trends have subsided, but some components remain sticky, and core levels remain above the Fed's target. The labor market reflects improved balance between supply and demand for workers. While job creation has been robust, continuing jobless claims remain elevated. Given the economic outlook, we expect gradual normalization of monetary policy and a steepening yield curve. As broadly anticipated, the Federal Open Market Committee (FOMC) reduced the Fed Funds Rate by 25 basis points to the range of 4.25- 4.50% at the December meeting. Although the cut was widely anticipated, market participants viewed the trajectory of rates in the SEP as 'hawkish.' Chair Jerome Powell reiterated previous statements indicating the economy is in a good place and that monetary policy is well positioned. The Fed released the quarterly Summary of Economic Projections (SEP), which now forecasts a higher central tendency of core inflation and a higher longer run Fed Funds forecast. In the Chandler team's view, the updated SEP reflects the continued resiliency of the US economy and the corresponding risk of inflation taking longer to reach the FOMC's two percent objective in 2025. ■ US Treasury yields shifted higher in December and the curve steepened. The 2-year Treasury yield increased 9 basis points to 4.24%, the 5- year Treasury rose 33 basis points to 4.38%, and the 10-year Treasury yield surged 40 basis points to 4.57%. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +33 basis points at December month -end versus +2 basis points at November month -end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -37 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve increased to +25 basis points in December from -32 basis points in November. 91 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 EMPLOYMENT 1,000 ,: T 0 0 600 >3 c 400 0 s MWel 0 -200 -400 Nonfarm Payroll (000's) Non -farm Payroll (000's) (ICI I9 O O Source: US Department of Labor 25.0% 20.0% e 15.0% a 10.0% 5.0 % 0.0 % Unemployment Rate (ICI 1 I? �O (10 1>O ` Source: US Department of Labor CHANDLER ASSET ASSET MANAGEMENT —Underemployment Rate (U6 Unemployment Rate (U3) O001 ✓�,9) OPc ✓�,� OPc ✓�,� OPc �.I The U.S. economy added 256,000 jobs in December, far exceeding consensus expectations. Gains were led by health care, retail, and leisure sectors, while manufacturing shed jobs. The three-month moving average and six-month moving average payrolls totaled 170,000 and 16S,000 respectively. The unemployment rate declined to 4.1% in December, and the labor participation rate was unchanged at 62.5%, 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 fell to 7.5%. Average hourly earnings moderated to an increase of 3.9% year -over -year in December. 4 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 JOB OPENINGS & LABOR TURNOVER SURVEY 14,000 12,000 10,000 0 0 0 8,000 4A c c 6,000 t C 4,000 2,000 0 OQ Off. 06' CHANDLER ASSET MANAGEMENT Job Openings tio1 tiob tio1 tio1 tio1 �o1 �'o1 �o1 �o1 �o1 tio� tio1 tio1 tio� �'o4 �o1 �o4 fob, O1 O6 Oy 10 11 1� 1� 1Q 1s 16 1> 1& 19 101 Source: US Department of Labor The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) rose to 8.098 million new job openings in November, which represented an increase from the upwardly revised 7.839 million job openings in October. Job openings indicate a ratio of 1.1 jobs for each unemployed individual, representing a relatively balanced labor market. 6� Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 INFLATION 10.0% 9.0 % 8.0 % 7.0 % v b 6.0 % M r " 5.0% 0 4.0% 0 r 3.0 % 2.0 % 1.0 % 0.0 % Consumer Price Index (CPI) CPI YOY % Change CHANDLER ASSET MANAGEMENT Personal Consumption Expenditures (PCE) 10.0% PCE Price Deflator YOY% Change 9'0% PCE Core Deflator YOY % Change 8.0% Fed Target 7.0% Y 6.0% M 5.0% 0 r 4.0% 0 } 3.0 % 2.0 % 1.0% 0.0 % do �o �o d`�Z d`�O �o �o �o d`2� d`�� dy�� �o �o �0 2/ �o d`2� d`�1 d`�O do do d` d`2� /.�Z `l.9 GAO 1.�� `�� G�4 L `'l.9 `20 G�1 /. `�Q Source: US Department of Labor Source: US Department of Commerce In November, the Consumer Price Index (CPI) rose 0.3% month -over -month and 2.7% year -over -year, rising from 2.6% in October as expected. The Core CPI, which excludes volatile food and energy components, rose 0.3% month -over -month and 3.3% year -over -year, also meeting consensus forecasts. The Personal Consumption Expenditures (PCE) Index rose 0.1% from the previous month and 2.4% year -over - year in November versus a 2.3% increase in October. The Core PCE deflator (the Fed's preferred gauge) increased 0.1% month -over - month, below recent small month -over -month rises and 2.8% over the past year. Core prices are exhibiting what Fed Chair Powell describes as "sideways" movement. Although inflation has moderated, price increases remain above the Fed's 2% target. Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 CONSUMER 60.0% 50.0% 40.0% 30.0% t 20.0% 10.0% 0 0.0 % -10.0% -20.0% -30.0% Retail Sales YOY % Change 160 140 120 100 v 80 x v ■I■N■I■■■1 60 40 20 0 �°L �d` �oL �d` �°L dL �°L dG �°L �0 �°L Source: US Department of Commerce CHANDLER ASSET MANAGEMENT Consumer Confidence OOOOO0 O0 6 0 O PcOS,c06 Pco8 .c�O Pc1� c�S0c16 c8 c�O C'� Pc�S Source: The Conference Board All time high is 144.70 (1131100); All time low is 25.30 (2128109) Retail Sales grew marginally above expectations at 0.7% in November versus 0.5% in October driven by strong motor vehicle sales. On a year -over -year basis, Retail Sales grew 3.8% in November versus 2.9% in October. Retail Sales Control Group, which are used to calculate gross domestic product, was also solid at 0.4% for the month. The Conference Board's Consumer Confidence Index declined to 104.7 in December from an upwardly revised 112.8 in November. Consumers' assessment about future business conditions and outcomes were substantially less optimistic and there was increased pessimism about future employment prospects. While the consumer has been resilient, low savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential risks to future spending. II Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 LEADING INDICATORS OF ECONOMIC ACTIVITY Leading Economic Indicators (LEI) 15.0% 10.0% 5.0 % a P 0.0% s -5.0% 0 0 -10.0% -15.0% -20.0% -2 , no/- 01, tioz ti01 �01 ti01 �01, 01, 8V 1P9 91.) 06 00 OV 0& Source: The Conference Board +1 +1 +1 +1 �sr CHANDLER ASSET ASSET MANAGEMENT Chicago Fed National Activity Index (CFNAI) 1.00 0.75 0.50 d 0.25 a a 0.00 s c 0 -0.25 M -0.50 -0.75 -1.00 ti01 ti01 ti01 ti01 ti01 trot fob �01 '&Q 8.C9 91-1 06 00 OQ 0& 1� Source: Federal Reserve Bank of Chicago The Conference Board's Leading Economic Index (LEI) increased 0.3% in November reversing its -0.4% decline in October due to a rebound in building permits, continued support from equities, improvement in average hours worked in manufacturing, and fewer initial unemployment claims. The LEI decreased year -over -year by -3.5%. According to the Conference Board, the rise in LEI is a positive sign for future activity in the US and is consistent with an expectation for moderate growth at the end of 2024 and into early 2025. The Chicago Fed National Activity Index (CFNAI) improved to -0.12 in November from -0.50 in October. The three-month moving average fell to -0.31 in November from -0.27 in October, indicating below -trend growth expectations for the economy. F: Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOUSING 2,400 2,200 2,000 1,800 c 1,600 1,400 1,200 c 1,000 800 c ;jilt tf�I� 0 Annualized Housing Starts ■ Multi Family Housing Starts ■ Single Family Housing Starts tio� �o� �o� �o1 tio1 �o1 dot dot dot poi trot, OQ 06 01:9 10 1) 1Q 16 4 '1-10 "�? ',-IQ Source: US Department of Commerce 24.0% 20.0% 16.0% 12.0% 8.0 % 4.0% 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 mQQ6ht 8 Q� 0 �� �� 4 ��� 0, �� � oolClo1C1o1oCetO� 6 Source: S&P Housing starts in November declined 1.8% to 1.29 million units from 1.31 million units in October. Total starts are down 14.6% compared to November 2023. Starts remain soft as mortgage rates remain relatively high. The supply of existing homes is becoming more abundant after the period of scarcity as homeowners held onto their low mortgage rates. The Freddie Mac average rate for a 30-year fixed rate mortgage increased to 6.9% from 6.8% in December. According to the Case-Shiller 20-City Home Price Index, housing prices rose 4.2% year -over -year in October, decelerating from 4.6% reported in the previous month. With more inventory entering the market the trend is gradually improving, however higher mortgage rates continue to impact affordability. w, Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 SURVEY BASED MEASURES Q11CHANDLER ASSET MANAGEMENT 70 65 60 55 50 45 40 O�c19 2fdr�p✓�� �O SPp�O OPc�O Source: Institute for Supply Management Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services '� ✓G sP Oo '� ✓�, spO(1✓G sP O0 ✓�, sepO.9 ds�Z 7 �1 ,b�Z c�1 dr� cds7 ,bc�r�Q � �Q �A c�Q The Institute for Supply Management (ISM) Manufacturing index rose more than forecast to 49.3 in December from 48.4 in November. While the index has posted contractionary readings for the past nine months, New Orders and Prices indices continued in expansion territory and the Production Index returned to expansion this month. The Backlog of Orders Index and Employment Index remained in contraction. The ISM Services Index rose to 54.1 in December from 52.1 in November while marking the sixth straight month of expansion. Robust business activity ahead of the new year and mitigating risks of potential tariffs were the key drivers. A reading over 50 indicates expansion, while a reading under 50 indicates contraction. Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 GROSS DOMESTIC PRODUCT (GDP) WNRU C Personal Consumption Expenditures 2.3% 1.3% 1.9% Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures State and Local (Consumption and Gross Investment) Total Source: US Department of Commerce 0.2% 0.6% 1.5% 0.1% -0.6% -0.9% 0.0% 0.0% 0.3% 0.6% 0.3% 0.3% 3.2% 1.6% 3.0% M 40.0% 2.5% 30.0% 20.0% 0.2% 10.0% -0.4% 0.0% -10.0% 0.6% -20.0% 0.3% -30.0% -40.0% 3.1% CHANDLER ASSET MANAGEMENT Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change soa mar�dr sow mar sPp` 2�d. sip` mar sip` 19 1>0 � �1 Source: US Department of Commerce According to the third estimate, third quarter GDP increased at an annualized rate of 3.1% compared to 2.8% from the second estimate. Growth continues to be powered by personal consumption expenditures. Government consumption expenditures and nonresidential fixed investment also had positive contributions, with negative offsets by net exports, residential investment, and change in private inventories. The consensus projection calls for 2.4% growth in the fourth quarter and 2.7% growth for the full year 2024. 11 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 c 0 E FEDERAL RESERVE C31CHANDLER ASSET MANAGEMENT Federal Reserve Balance Sheet Assets 10, 000,000 6.00% 9,000,000-to— Recession 8,000,000 5.00% 7,000,000 4.00% 6,000,000 5,000,000 3.00% v 4,000,000 3,000,000 2.00% 2,000,000 1.00% 1,000,000 0 0.00% 00 OP OP OP OP OP OP O� Oo OP OPc o c0 co c� c� cz c� c1 c� c� � St 6 cQ O � St 6 � O � St Effective Federal Funds Rate O� O� O� O� OP O� O� O, O, O0 O0 c0 c0 cO c1 c1 c? c? c1 c,� c� c� St 6 cQ O 2 Q 6 8 O � S! Source: Federal Reserve Source: Bloomberg As broadly anticipated, the Federal Open Market Committee (FOMC) reduced the Fed Funds Rate by 25 basis points to the range of 4.25- 4.50% at the December meeting. There was one dissenting vote by Cleveland Fed President Beth Hammack who would have preferred no change in rates. Although a reduction in rates was widely anticipated, market participants viewed the trajectory of rates in the SEP as 'hawkish.' Chair Jerome Powell reiterated previous statements that monetary policy is "well positioned" and the outlook remains roughly balanced between the dual mandate of maximum employment and price stability. Economic activity is expanding at a solid pace, labor market conditions have "generally eased", and the unemployment rate "remains low." The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a higher, longer run median Fed Funds rate expectation among Fed Governors at 2.8 - 3.6%. 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 $1.9T to approximately $7.OT. 12 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 BOND YIELDS 6.0 % 5.0 % 4.0 % 2.0 % 1.0 % tiZiY� US Treasury Note Yields • 2-Year r v --- Source: Bloomberg 6.0% - 5.0% - • 4.0% 0 3.0% v r 2.0 % 1.0 % — 0.0 % US Treasury Yield Curve o70 Syr Syr ,yr Z0 Source: Bloomberg CHANDLER ASSET ASSET MANAGEMENT Dec-24 Sep-24 • Dec-23 At the end of December, the 2-year Treasury yield was 1 basis point lower, and the 10-Year Treasury yield was 69 basis points higher, year -over -year. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +33 basis points at December month -end versus +2 basis points at November month -end. The yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2004) is about +99 basis points. The 3-month and 10-year Treasury yield curve normalized to +25 basis points in December from-32 basis points in November. `90 yr 13 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 CHANDLER it% ASSET MANAGEMENT 14 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 OBJECTIVES City of Tustin I As of December 31, 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. 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 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 STATEMENT OF COMPLIANCE C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 Rules Name Limit Actual Compliance Notes Status AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV) 20.0 2.0 Compliant Max % Issuer (MV) 10.0 2.0 Compliant Max Maturity (Years) 5.0 4.3 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 1.5 Compliant Max % Issuer (Corporate & Commercial Paper; MV) 10.0 1.0 Compliant Max % Issuer (MV) 5.0 1.0 Compliant Max Maturity (Days) 270 65 Compliant Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV) 30.0 17.6 Compliant 16 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 STATEMENT OF COMPLIANCE City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 Rules Name Limit Actual .. Status Max % Issuer (Corporate & Commercial Paper; MV) 10.0 1.0 Compliant CHANDLER ASSET ASSET MANAGEMENT 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 7.6 Compliant Max % Issuer (MV) 50.0 3.6 Compliant Max Maturity (Years) 5 4 Compliant JPA INVESTMENT POOLS Max % (MV) 100.0 44.4 Compliant Max % Issuer (MV) 50.0 44.3 Max Maturity (Years) 5.0 0.0 LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV) 75.0 4.8 MONEY MARKET MUTUAL FUNDS Max % (MV) 20.0 0.4 Max % Issuer (MV) 10.0 0.4 Min Rating (AAA by 2) 0.0 0.0 MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV) 30.0 0.0 Max % Issuer (MV) 5.0 0.0 Max Maturity (Years) 5 0.0 MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV) 30.0 0.0 Max % Issuer (MV) 5.0 0.0 Compliant Compliant Compliant Compliant The City of Tustin maintains adequate liquidity to cover at least six months of expected disbursements Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant 17 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 STATEMENT OF COMPLIANCE C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 NotesRules Name Limit Actual Compliance Status Max Maturity (Years) 5 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % Issuer (MV) 5.0 0.1 Compliant Max Maturity (Years) 5 1 Compliant Min Rating (A-1 by 1 or A- by 1 if> FDIC Limit) REPURCHASE AGREEMENTS Max % (MV) 0.0 30.0 0.0 0.0 Compliant Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Years) U.S. TREASURIES Max %(MV) 1.0 100.0 0.0 20.4 Compliant Compliant Max % Issuer (MV) 100.0 20.4 Compliant Max Maturity (Years) 5 5 Compliant 18 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 PORTFOLIO CHARACTERISTICS City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 Average Maturity (yrs) 2.66 1.05 1.12 Average Modified Duration 2.48 0.94 1.67 Average Purchase Yield 4.07 4.19% Average Market Yield 4.29% 4.42% 4.60% Average Quality" AA+ AA+ AA Total Market Value 204,220,840 177,812,183 *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. CHANDLER ASSET ASSET MANAGEMENT 19 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 SECTOR DISTRIBUTION C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 5016 25% 0% LGIP US Treasury Corporate Agency Cash LAIF Agency CMBS Comm Paper Neg CD Money Mkt Fd 12/31/2024 09/30/2024 Sector as a Percentage of Market Value Sector 12/31/2024 09/30/2024 LGIP 44.45% 37.25% US Treasury 20.39% 22.85% Corporate 17.58% 19.74% Agency 7.63% 10.09% Cash 3.13% 1.95% LAIF 2.37% 2.69% Agency CMBS 2.01% 2.37% Comm Paper 1.46% 1.66% Neg CD 0.58% 0.67% Money Mkt Fd 0.39% 0.72% 20 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 ISSUERS City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 California Asset Mgmt Program Government of The United States C/„CHANDLER ASSET MANAGEMENT Portfolio LGIP 44.45% US Treasury 20.39% Farm Credit System Agency 3.59% Citizens Business Bank Cash 3.10% Federal Home Loan Banks Agency 3.08% LAIF LAIF 2.37% FHLMC Agency CMBS 2.01% Mitsubishi UFJ Financial Group, Inc. Comm Paper 0.97% JPMorgan Chase & Co. Corporate 0.97% FNMA Agency 0.97% U.S. Bancorp Corporate 0.68% Toyota Motor Corporation Corporate 0.50% Cisco Systems, Inc. Corporate 0.49% BlackRock, Inc. Corporate 0.49% Massachusetts Mutual Life Insurance Corporate 0.49% Deere & Company Corporate 0.49% New York Life Insurance Company Corporate 0.49% PepsiCo, Inc. Corporate 0.49% National Rural Utilities Cooperative Corporate 0.49% Bank of America Corporation Corporate 0.49% State Street Corporation Corporate 0.49% QUALCOMM Incorporated Corporate 0.49% PACCAR Inc Corporate 0.49% The Home Depot, Inc. Corporate 0.49% Target Corporation Corporate 0.49% Toyota Motor Corporation Comm Paper 0.49% Duke Energy Corporation Corporate 0.49% Bank of Montreal Corporate 0.49% BNY Mellon Corp Corporate 0.49% NextEra Energy, Inc. Corporate 0.49% 21 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 ISSUERS City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 Northern Trust Corporation Pfizer Inc. Chubb Limited C/„CHANDLER ASSET MANAGEMENT PortfolioInvestment Type % Corporate 0.48% Corporate 0.48% Corporate 0.48% Eli Lilly and Company Corporate 0.48% The Toronto -Dominion Bank Corporate 0.48% Caterpillar Inc. Corporate 0.48% Amazon.com, Inc. Corporate 0.47% UnitedHealth Group Incorporated Corporate 0.47% The Charles Schwab Corporation Corporate 0.47% Royal Bank of Canada Corporate 0.47% Honeywell International Inc. Corporate 0.45% Apple Inc. Corporate 0.44% Walmart Inc. Corporate 0.42% First American Govt Oblig fund Money Mkt Fd 0.39% 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 0.03% TOTAL 100.00% 22 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 MATURITY DISTRIBUTION 01 City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 140,000,000 1 0.000,000—115-J01-W&I 100,000,000 80,000,000 �iI�I�TiI�I�Ti7 40.000,000 20,000,000 1❑ CHANDLER ASSET ASSET MANAGEMENT 27.408,401, 69 U - .ZO .Zo - .n .D - 7 I -Z Z-15 .5-4 4-:0 23 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 QUALITY DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 S&P Rating 60% I 40% /INN 0% AAA AA A BBB NR 12/31/2024 0 09/30/2024 Moody's Rating 60%1 40% 20% 07011 it AAA AA A NR 2/31/2024 0 09/30/2024 CHANDLER ASSET ASSET MANAGEMENT Fitch Rating 60% 40% 20% 070 AAA AA A BBB NR 12/31/2024 0 09/30/2024 Rating 12/31/2024 0• 0• 09/30/2024 AAA 47.9% 45.4% AAA 33.3% 38.2% AAA 49.8% 47.7% AA 31.1% 31.6% AA 3.8% 3.2% AA 31.8% 32.8% A 15.1% 17.3% A 12.9% 16.0% A 6.7% 7.7% BBB 0.5% 0.5% NR 50.0% 42.5% BBB 0.1% 0.1% NR 5.4% 5.1% NR 11.6% 11.7% 24 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 DURATION DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 80ro 1 60% 40% 20% 0% 0-.25 .25-.5 .5-1 1-2 2-3 3-4 012/31/2024 0 09/30/2024 4-5 CHANDLER ASSET ASSET MANAGEMENT 5-7 7+ Date 1 12/31/2024 57.4% 11.7% 3.6% 5.5% 3.9% 8.9% 9.0% 0.0% 0.0% 09/30/2024 51.9% 8.8% 11.6% 6.9% 2.6% 8.9% 9.3% 0.0% 0.0% 25 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 INVESTMENT PERFORMANCE Q11CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 Total and Realized Rate of Return : Inception 1 12/01/2020 5.00 % 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 12 months 2 years ■ City of Tustin Consolidated Account 3 years 5 years ■ ICE BofA 1-5 Yr US Treasury & Agency Index 13 10 years Since Inception ■ ICE BofA 1-3 Yr US Treasury & Agency Index TOTAL RATE OF RETURN City of Tustin Cons Agg Gross of Fees 0.47% 4.66% 4.61% 1.94% 1.36% Benchmark (0.76%) 3.42% 3.86% 0.74% 0.29% Secondary Benchmark (0.05%) 4.09% 4.18% 1.50% 0.98% REALIZED RATE OF RETURN E 0 City of Tustin Cons Agg 1.00% 4.02% 3.86% 3.03% 2.43% *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: ECC776D0-50E5-49AD-B095-50BB8D28F930 CHANDLER it% ASSET MANAGEMENT 27 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT AGENCY FEDERAL NATIONAL MORTGAGE 04/12/2021 1,982,980.00 98.32 1,966,385.64 0.97% Aaa/AA+ 0.46 3135G04Z3 ASSOCIATION 0.5 06/17/2025 2,000,000.00 0.71% 1,998,137.39 4.24% 388.89 (31,751.75) AA+ 0.45 FEDERAL HOME LOAN BANKS 11/30/2023 1,503,345.00 100.64 11509,621.72 0.74% Aaa/AA+ 1.88 3130AXU63 4.62511/17/2026 1,500,000.00 4.54% 1,502,117.68 4.26% 8,479.17 7,504.04 AA+ 1.77 FEDERAL FARM CREDIT BANKS 12/08/2023 1,001,820.00 100.42 11004,197.85 0.49% Aaa/AA+ 2.76 3133EPH81 FUNDING CORP 4.5 10/04/2027 1,000,000.00 4.45% 1,001,314.37 4.33% 10,875.00 2,883.48 AA+ 2.54 FEDERAL HOME LOAN BANKS 07/26/2023 1,255,762.50 99.77 1,247,143.75 0.61% Aaa/AA+ 3.44 3130AWMN7 4.375 06/09/2028 1,250,000.00 4.27% 1,254,074.33 4.45% 3,342.01 (6,930.58) AA+ 3.15 FEDERAL FARM CREDIT BANKS 08/29/2023 1,507,785.00 100.62 11509,291.66 0.74% Aaa/AA+ 3.66 3133EPUN3 FUNDING CORP 4.5 08/28/2028 1,500,000.00 4.37% 1,505,697.90 4.31% 23,062.50 3,593.76 AA+ 3.29 FEDERAL HOME LOANBANKS4.75 12/08/2023 1,222,020.00 101.53 11218,405.24 0.60% Aaa/AA+ 3.94 3130AXQK7 12/08/2028 1,200,000.00 4.33% 1,217,348.00 4.32% 3,641.67 1,057.24 AA+ 3.55 FEDERAL FARM CREDIT BANKS 01/29/2024 1,488,945.00 98.02 1,470,348.27 0.72% Aaa/AA+ 4.05 3133EPW84 FUNDING CORP 3.875 01/18/2029 1,500,000.00 4.04% 1,490,992.67 4.41% 26,317.71 (20,644.40) AA+ 3.63 FEDERAL HOME LOAN BANKS4.5 04/25/2024 1,384,040.00 100.01 11400,093.80 0.69% Aaa/AA+ 4.19 3130AVBD3 03/09/2029 1,400,000.00 4.76% 11386,284.09 4.50% 19,600.00 13,809.71 AA+ 3.73 FEDERAL FARM CREDIT BANKS 04/25/2024 1,376,046.00 99.92 1,398,846.72 0.69% Aaa/AA+ 4.27 3133ERAK7 FUNDING CORP 4.375 04/10/2029 1,400,000.00 4.77% 1,379,308.84 4.39% 13,781.25 19,537.88 AA+ 3.82 FEDERAL FARM CREDIT BANKS 09/17/2024 2,002,440.00 96.19 1,923,874.60 0.95% Aaa/AA+ 4.69 3133ERSP7 FUNDING CORP 3.5 09/10/2029 2,000,000.00 3.47% 2,002,299.08 4.41% 21,583.33 (78,424.48) AA+ 4.22 FEDERAL HOME LOAN BANKS 09/30/2024 921,906.00 98.64 887,721.24 0.44% Aaa/AA+ 4.70 3130ATHX8 4.125 09/14/2029 900,000.00 3.58% 920,791.93 4.45% 11,034.38 (33,070.69) AA+ 4.17 15,647,089.51 99.30 15,535,930.49 7.63% Aaa/AA+ 3.35 Total Agency 15,650,000.00 3.80% 15,658,366.29 4.36% 142,105.90 (122,435.80) AA+ 3.03 AGENCY CMBS 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 750,000.00 06/08/2023 719,560.55 97.09 728,167.28 0.36% Aaa/AA+ 2.31 4.39% 732,017.04 4.56% 2,026.88 (3,849.76) AAA 2.10 3137FEZU7 FHMS K-076 A2 3.9 04/25/2028 750,000.00 10/30/2023 708,310.55 97.70 732,779.10 0.36% Aaa/AA+ 3.32 5.32% 719,327.74 4.63% 2,437.50 13,451.36 AAA 2.96 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 10/30/2023 705,556.64 97.44 730,818.08 0.36% Aaa/AA+ 3.74 5.31% 716,283.48 4.65% 2,450.00 14,534.60 AAA 3.33 28 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT 3137FKZZ2 FH MS K-088 A2 3.69 01/25/2029 1,000,000.00 07/22/2024 963,789.06 96.34 963,391.70 0.47% Aaa/AA+ 4.07 4.58% 967,363.24 4.68% 3,075.00 (3,971.54) AA+ 3.62 3137FLYVO FH MS K-092 A2 3.298 04/25/2029 1,000,000.00 09/17/2024 981,484.38 94.57 945,703.70 0.46% Aaa/AA+ 4.31 3.72% 982,637.41 4.70% 2,748.33 (36,933.71) AAA 3.87 4,078,701.18 96.50 4,100,859.85 2.01% Aaa/AA+ 3.62 Total Agency CMBS 4,250,000.00 4.61% 4,117,628.91 4.65% 12,737.71 (16,769.06) AAA 3.24 CASH CBGMMF$04 Citizens Business Bank 451,671.63 - 451,671.63 1.00 451,671.63 0.22% NA/NA 0.00 451,671.63 0.00% 0.00 0.00 NA 0.00 CBGMMF$03 Citizens Business Bank 5,849,740.50 12/31/2024 5,849,740.50 1.00 5,849,740.50 2.87% NA/NA 0.00 5,849,740.50 0.00% 0.00 0.00 NA 0.00 CCYUSD Receivable 54,553.59 -- 54,553.59 1.00 54,553.59 0.03% Aaa/AAA 0.00 0.00% 54,553.59 0.00% 0.00 0.00 AAA 0.00 CCYUSD CCYUSD Total Cash COMMERCIAL PAPER 62479LQ40 Receivable 2,673.02 -- 2,673.02 1.00 2,673.02 0.00% 2,673.02 0.00% 0.00 Receivable 2,450.91 -- 2,450.91 1.00 2,450.91 0.00% 2,450.91 0.00% 0.00 6,361,089.65 1.00 6,361,089.65 6,361,089.65 0.00% 6,361,089.65 0.00% 0.00 0.00% Aaa/AAA 0.00 0.00 AAA 0.00 0.00% Aaa/AAA 0.00 0.00 AAA 0.00 3.13% Aaa/AAA 0.00 0.00 AAA 0.00 MUFG Bank, Ltd. - New York 2,000,000.00 07/31/2024 1,938,919.99 99.22 1,984,458.00 0.97% P-1/A-1 0.17 Branch 03/04/2025 5.24% 1,982,467.77 4.62% 0.00 1,990.23 NA 0.17 Toyota Motor Credit Corporation 07/09/2024 965,600.00 99.20 992,001.00 0.49% P-1/A-1+ 0.18 89233GQ66 03/06/2025 1,000,000.00 5.32% 990,826.67 4.61% 0.00 1,174.33 F1 0.17 Total Commercial Paper CORPORATE 24422EVY2 JOHN DEERE CAPITAL CORP 1.25 01/10/2025 2,904,519.99 99.22 2,976,459.00 1.46% P-1/AA- 0.17 3,000,000.00 5.26% 2,973,294.44 4.62% 0.00 3,164.56 A+ 0.17 02/04/2022 985,080.00 99.93 999,267.47 0.49% Al/A 0.03 1,000,000.00 1.77% 999,874.15 4.52% 5,937.50 (606.68) A+ 0.02 29 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT 57629WCG3 MASSMUTUAL GLOBAL FUNDING II 2.95 01/11/2025 1,000,000.00 03/23/2022 2.79% 1,004,360.00 1,000,042.62 99.95 4.85% 999,509.08 13,930.56 0.49% (533.54) Aa3/AA+ AA+ 0.03 0.03 NEW YORK LIFE GLOBAL FUNDING 01/18/2022 996,780.00 99.90 998,951.94 0.49% Aaa/AA+ 0.04 64952WEK5 1.45 01/14/2025 1,000,000.00 1.56% 999,961.60 4.57% 6,726.39 (1,009.66) AAA 0.03 NATIONAL RURAL UTILITIES 03/23/2022 972,740.00 99.70 996,985.49 0.49% A2/A- 0.10 63743HFC1 COOPERATIVE FINANCE CORP 1,000,000.00 2 86% 999,039.41 4.95% 7,500.00 (2,053.92) A 0.10 1.875 02/07/2025 57636QAN4 MASTERCARD INC 2.0 03/03/2025 500,000.00 11/01/2021 515,365.00 99.56 497,801.92 0.24% Aa3/A+ 0.17 1.03% 500,432.26 4.58% 3,277.78 (2,630.34) NA 0.17 PACCAR FINANCIAL CORP 2.85 03/31/2022 999,740.00 99.54 995,403.87 0.49% Al/A+ 0.27 69371RR73 04/07/2025 1,000,000.00 2 86% 999,977.23 4.58% 6,650.00 (4,573.36) NA 0.26 437076CM2 HOME DEPOT INC 2.7 04/15/2025 1,000,000.00 03/28/2022 995,620.00 99.49 994,942.83 0.49% A2/A 0.29 2.85% 999,590.36 4.46% 5,700.00 (4,647.53) A 0.28 87612EBL9 TARGET CORP 2.25 04/15/2025 1,000,000.00 02/04/2022 1,010,340.00 99.26 992,589.44 0.49% A2/A 0.29 1.90% 1,000,674.63 4.85% 4,750.00 (8,085.19) A 0.28 BANK OF NEW YORK MELLON 02/04/2022 989,120.00 99.03 990,309.99 0.49% Aa3/A 0.31 06406RAN7 CORP 1.6 04/24/2025 1,000,000.00 1.95% 998,950.09 4.75% 2,977.78 (8,640.10) AA- 0.31 BANK OF MONTREAL 1.85 08/17/2021 1,034,530.00 99.07 990,672.94 0.49% A2/A- 0.33 06367W685 05/01/2025 1,000,000.00 0.91% 1,003,067.06 4.70% 3,083.33 (12,394.12) AA- 0.33 91159HHZ6 US BANCORP 1.45 05/12/2025 1,400,000.00 12/23/2021 1,406,818.00 98.86 1,383,986.25 0.68% A3/A 0.36 1.30% 1,400,574.52 4.66% 2,763.06 (16,588.27) A 0.36 747525AFO QUALCOMM INC 3.45 05/20/2025 1,000,000.00 03/23/2022 1,018,960.00 99.59 995,884.44 0.49% A2/A 0.38 2.76% 1,000,916.69 4.52% 3,929.17 (5,032.25) NA 0.38 717081EX7 PFIZER INC 0.8 05/28/2025 1,000,000.00 03/23/2022 945,010.00 98.46 984,622.02 0.48% A2/A 0.41 2.59% 993,031.44 4.66% 733.33 (8,409.42) WR 0.40 NORTHWESTERN MUTUAL 06/30/2022 703,738.00 99.70 697,924.88 0.34% Aaa/AA+ 0.50 66815L2J7 GLOBAL FUNDING 4.0 07/01/2025 700,000.00 3.81% 700,619.58 4.61% 14,000.00 (2,694.70) AAA 0.49 DUKE ENERGY PROGRESS LLC 3.25 04/25/2022 1,000,280.00 99.17 991,726.81 0.49% Aa3/A 0.62 26442UAA2 08/15/2025 1,000,000.00 3.24% 1,000,034.42 4.61% 12,277.78 (8,307.61) WR 0.60 COLGATE-PALMOLIVE CO 3.1 08/01/2022 344,682.60 99.17 342,139.75 0.17% Aa3/A+ 0.62 194162AM5 08/15/2025 345,000.00 3.13% 344,934.91 4.47% 4,040.33 (2,795.16) NA 0.60 TORONTO-DOMINION BANK 0.75 08/17/2021 993,000.00 97.34 973,402.01 0.48% A2/A- 0.70 89114QCK2 09/11/2025 1,000,000.00 0.92% 998,806.60 4.70% 2,291.67 (25,404.59) AA- 0.67 30 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT CATERPILLAR FINANCIAL SERVICES 04/21/2021 991,780.00 96.79 967,852.67 0.48% A2/A 0.87 14913R2H9 CORP 0.8 11/13/2025 1,000,000.00 0.98% 998,439.93 4.64% 1,066.67 (30,587.26) A+ 0.84 STATE ST R E ET CO R P 1. 746 -- 978,258.70 99.61 996,139.00 0.49% Aa3/A 1.10 8574776R3 02/06/2026 1,000,000.00 2.61% 999,183.06 5.82% 7,032.50 (3,044.06) AA- 0.09 BANK OF AMERICA CORP 2.015 04/20/2021 1,030,470.00 99.67 996,656.75 0.49% Al/A- 1.12 06051GHY8 02/13/2026 1,000,000.00 1.07% 1,001,096.74 5.21% 7,724.17 (4,439.99) AA- 0.11 JPMORGAN CHASE & CO 2.083 -- 2,072,110.00 99.14 1,982,820.70 0.97% Al/A 1.31 46647PBK1 04/22/2026 2,000,000.00 0.97% 2,006,660.21 5.95% 7,984.83 (23,839.51) AA- 0.30 CHUBB INA HOLDINGS LLC 3.35 07/23/2021 1,102,780.00 98.45 984,454.20 0.48% A2/A 1.34 00440EAV9 05/03/2026 1,000,000.00 0.98% 1,025,348.15 4.56% 5,397.22 (40,893.95) A 1.28 AMAZON.COM INC 1.0 05/12/2021 995,200.00 95.68 956,794.76 0.47% Al/AA 1.36 023135BX3 05/12/2026 1,000,000.00 1.10% 998,694.74 4.30% 1,361.11 (41,899.98) AA- 1.33 CHARLES SCHWAB CORP 1.15 07/23/2021 1,007,990.00 95.48 954,802.38 0.47% A2/A- 1.36 8085136R5 05/13/2026 1,000,000.00 0.98% 1,002,184.34 4.61% 1,533.33 (47,381.96) A 1.32 UNITEDHEALTH GROUP INC 1.15 07/28/2021 1,007,110.00 95.56 955,643.05 0.47% A2/A+ 1.37 91324PEC2 05/15/2026 1,000,000.00 1.00% 11001,953.12 4.53% 1,469.44 (46,310.07) A 1.33 ROYAL BANK OF CANADA 1.15 07/28/2021 999,090.00 94.98 949,815.89 0.47% Al/A 1.53 78016EZT7 07/14/2026 1,000,000.00 1.17% 999,718.96 4.58% 5,334.72 (49,903.07) AA- 1.48 931142ERO WALMART INC 1.05 09/17/2026 900,000.00 09/22/2021 902,277.00 94.60 851,417.36 0.42% Aa2/AA 1.71 1.00% 900,759.69 4.36% 2,730.00 (49,342.33) AA 1.66 NORTHERN TRUST CORP 4.0 01/30/2023 986,540.00 98.68 986,842.31 0.48% A2/A+ 2.36 665859AW4 05/10/2027 1,000,000.00 4.35% 992,583.62 4.59% 5,666.67 (5,741.31) A+ 2.21 PUBLICSERVICE ELECTRICAND 06/29/2023 570,144.00 96.66 579,954.11 0.28% Al/A 3.33 74456QBU9 GAS CO 3.7 05/01/2028 600,000.00 4.87% 579,453.94 4.80% 3,700.00 500.17 WR 3.07 FLORIDA POWER & LIGHT CO 4.4 06/07/2023 987,550.00 99.00 990,029.35 0.49% Aa2/A+ 3.37 341081GN1 05/15/2028 1,000,000.00 4.69% 991,501.94 4.72% 5,622.22 (1,472.59) AA- 3.08 TOYOTA MOTOR CREDIT CORP 09/26/2023 996,180.00 101.40 1,014,016.76 0.50% Al/A+ 3.70 89236TL69 5.25 09/11/2028 1,000,000.00 5.34% 997,152.94 4.83% 16,041.67 16,863.82 A+ 3.28 17275RBR2 CISCO SYSTEMS INC4.85 1,000,000.00 09/27/2024 1,037,530.00 100.50 1,005,041.00 0.49% Al/AA- 4.16 02/26/2029 3.90% 1,035,319.56 4.71% 16,840.28 (30,278.56) NA 3.59 09290DAA9 713448FX1 BLACKROCK INC 4.7 03/14/2029 PEPSICO INC 4.5 07/17/2029 1,000,000.00 07/22/2024 1,002,010.00 100.07 1,000,735.83 0.49% Aa3/AA- 4.20 4.65% 1,001,814.67 4.68% 13,969.44 (1,078.84) NA 3.72 1,000,000.00 07/22/2024 997,560.00 99.81 4.56% 997,777.19 4.55% 998,095.03 0.49% Al/A+ 4.54 20,500.00 317.84 NA 3.98 31 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 438516BU9 HONEYWELL INTERNATIONAL INC 2.7 08/15/2029 037833DP2 APPLE INC 2.2 09/11/2029 Total Corporate 1,000,000.00 08/15/2024 1,000,130.00 97.91 4.20% 1,000,119.99 4.71% CHANDLER ASSET ASSET MANAGEMENT 979,060.73 0.48% Al/A+ 4.62 15,983.33 (21,059.26) NA 4.08 1,000,000.00 08/15/2024 930,020.00 91.65 916,522.88 0.45% A2/A 4.62 4.27% 935,311.64 4.73% 10,200.00 (18,788.76) A 4.21 10/30/2024 908,490.00 89.80 897,976.68 0.44% Aaa/AA+ 4.70 1,000,000.00 4.31% 911,684.61 4.64% 6,722.22 (13,707.93) NA 4.34 36,419,383.30 98.26 35,790,792.57 17.58% Al/A 1.56 36,445,000.00 2.50% 36,317,286.58 4.76% 257,448.50 (526,494.02) A+ 1.33 LAIF Local Agency Investment Fund -- 4,827,164.34 1.00 4,827,164.34 2.37% NA/NA 0.00 90LAIF$00 4,827,164.34 State Pool 4.43% 4,827,164.34 4.43% 0.00 0.00 NA 0.00 4,827,164.34 1.00 4,827,164.34 2.37% NA/NA 0.00 Total LAIF 4,827,164.34 4.43% 4,827,164.34 4.43% 0.00 0.00 NA 0.00 LOCAL GOV INVESTMENT POOL 90CAMP$00 CAMP 90,472,853.42 -- 90,472,853.41 1.00 90,472,853.42 44.45% NA/AAAm 0.00 4.65% 90,472,853.41 4.65% 0.00 0.01 AAA 0.00 Total Local Gov 90,472,853.41 1.00 90,472,853.42 44.45% NA/AAAm 0.00 Investment Pool 90,472,853.42 4.65% 90,472,853.41 4.65% 0.00 0.01 AAA 0.00 MONEY MARKET FUND -- 367,582.39 1.00 367,582.39 0.18% Aaa/AAAm 0.00 31846V203 FIRST AMER:GVT OBLG Y 367,582.39 4.09% 367,582.39 4.09% 0.00 0.00 AAA 0.00 -- 418,258.41 1.00 418,258.41 0.21% Aaa/AAAm 0.00 31846V203 FIRST AMER:GVT OBLG Y 418,258.41 4.09% 418,258.41 4.09% 0.00 0.00 AAA 0.00 Total Money Market 785,840.80 1.00 785,840.80 0.39% Aaa/AAAm 0.00 Fund 785,840.80 4.09% 785,840.80 4.09% 0.00 0.00 AAA 0.00 NEGOTIABLE CD 32 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT Capital One Bank (USA), National 08/01/2022 239,640.00 99.56 238,937.70 0.12% WR/BBB+ 0.59 14042TJB4 000.00 Association 3.45 08/04/2025 240,3.50% 239,929.44 4.21% 3,425.42 (991.74) A 0.57 02007GXF5 Ally Bank 3.4 08/04/2025 240,000.00 08/02/2022 239,280.00 99.52 238,846.11 0.12% A3/BBB- 0.59 3.50% 239,858.76 4.23% 3,353.42 (1,012.65) NA 0.57 87165EXE2 Synchrony Bank 3.4 08/05/2025 240,000.00 08/01/2022 239,640.00 99.52 238,841.74 0.12% NA/BBB 0.59 3.45% 239,929.05 4.23% 3,377.33 (1,087.31) BBB 0.57 2546731326 Discover Bank 3.4 08/08/2025 240,000.00 08/01/2022 239,280.00 99.51 238,828.80 0.12% A2/BBB 0.60 3.50% 239,856.13 4.22% 3,264.00 (1,027.33) A- 0.58 Goldman Sachs Bank USA 1.05 08/17/2021 243,775.00 95.23 233,313.68 0.11% Al/A+ 1.65 38149MYS6 08/25/2026 245,000.00 1.15% 244,596.81 4.08% 909.18 (11,283.13) AA- 1.60 1,201,615.00 98.68 1,188,768.04 0.58% A2/BBB 0.80 Total Negotiable CD 1,205,000.00 3.03% 1,204,170.19 4.19% 14,329.37 (15,402.15) A- 0.77 US TREASURY UNITED STATESTREASURY4.125 03/14/2024 2,676,480.47 99.98 2,699,364.85 1.33% Aaa/AA+ 0.08 91282CGG0 01/31/2025 2,700,000.00 5.15% 2,697,808.74 4.35% 46,608.02 1,556.11 AA+ 0.08 UNITED STATES TREASURY 04/18/2024 2,394,087.13 99.43 2,485,788.25 1.22% P-1/A-1+ 0.14 912797KA4 02/20/2025 2,500,000.00 5.22% 2,482,750.35 4.27% 0.00 3,037.90 F1+ 0.13 UNITED STATES TREASURY 07/10/2024 2,886,629.17 98.79 2,963,595.60 1.46% P-1/A-1+ 0.29 912797K55 04/17/2025 3,000,000.00 5.07% 21957,081.04 4.27% 0.00 6,514.56 F1+ 0.28 UNITED STATES TREASURY 2.75 05/30/2024 2,443,164.06 99.45 2,486,252.48 1.22% Aaa/AA+ 0.37 91282CEQ0 05/15/2025 2,500,000.00 5.22% 2,478,177.60 4.25% 8,926.11 8,074.87 AA+ 0.36 UNITED STATES TREASURY2.875 10/15/2024 2,972,343.75 99.42 2,982,635.01 1.47% Aaa/AA+ 0.41 9128284R8 05/31/2025 3,000,000.00 4.39% 2,981,724.94 4.30% 7,582.42 910.07 AA+ 0.40 UNITED STATES TREASURY2.875 11/05/2024 2,478,515.63 99.40 2,484,904.30 1.22% Aaa/AA+ 0.45 91282CEU1 06/15/2025 2,500,000.00 4.32% 2,483,959.63 4.23% 3,356.80 944.67 AA+ 0.44 UNITED STATES TREASURY3.0 11/15/2024 2,973,632.81 99.35 2,980,641.00 1.46% Aaa/AA+ 0.54 91282CEY3 07/15/2025 3,000,000.00 4.36% 2,978,487.02 4.23% 41,576.09 2,153.98 AA+ 0.52 UNITED STATES TREASURY0.375 04/27/2021 1,957,500.00 95.95 1,919,021.74 0.94% Aaa/AA+ 1.08 91282CBH3 01/31/2026 2,000,000.00 0.83% 1,990,346.46 4.25% 3,138.59 (71,324.72) AA+ 1.05 UNITED STATES TREASURY0.75 04/27/2021 1,989,531.25 95.78 1,915,678.08 0.94% Aaa/AA+ 1.25 91282CBT7 03/31/2026 2,000,000.00 0.86% 1,997,356.61 4.27% 3,832.42 (81,678.53) AA+ 1.21 33 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2024 CHANDLER ASSET ASSET MANAGEMENT 91282CFM8 UNITED STATES TREASURY4.125 1,740,000.00 11/09/2022 1,724,978.91 99.61 1,733,128.60 0.85% Aaa/AA+ 2.75 09/30/2027 4.32% 1,731,567.99 4.28% 18,338.12 1,560.61 AA+ 2.54 UNITED STATES TREASURY3.5 02/23/2023 1,458,281.25 97.71 1,465,615.43 0.72% Aaa/AA+ 3.08 91282CGH8 01/31/2028 1,500,000.00 4.13% 1,473,896.78 4.30% 21,970.11 (8,281.35) AA+ 2.84 9128283W8 UNITED STATES TREASURY2.75 02/15/2028 1,400,000.00 11/08/2024 4.22% 1,338,039.06 1,340,642.46 95.27 4.39% 1,333,718.40 14,542.12 0.66% (6,924.06) Aaa/AA+ AA+ 3.13 2.91 UNITED STATES TREASURY 3.125 02/29/2024 1,425,351.56 95.69 1,435,328.61 0.71% Aaa/AA+ 3.88 9128285M8 11/15/2028 1,500,000.00 4.30% 1,438,632.04 4.35% 6,085.98 (3,303.43) AA+ 3.57 UNITED STATES TREASURY2.375 05/16/2024 1,228,130.86 92.18 1,244,382.24 0.61% Aaa/AA+ 4.37 9128286T2 05/15/2029 1,350,000.00 4.41% 1,243,431.32 4.36% 4,162.81 950.92 AA+ 4.06 UNITED STATES TREASURY3.25 08/15/2024 1,462,089.84 95.42 1,431,340.58 0.70% Aaa/AA+ 4.50 91282CEV9 06/30/2029 1,500,000.00 3.82% 1,465,030.59 4.38% 134.67 (33,690.02) AA+ 4.12 UNITED STATES TREASURY 2.625 08/15/2024 1,420,078.13 92.77 1,391,609.90 0.68% Aaa/AA+ 4.58 91282CFCO 07/31/2029 1,500,000.00 3.81% 1,426,171.62 4.38% 16,477.58 (34,561.73) AA+ 4.19 UNITED STATES TREASURY3.125 09/11/2024 2,455,664.06 94.72 2,367,983.75 1.16% Aaa/AA+ 4.67 91282CFJ5 08/31/2029 2,500,000.00 3.52% 2,458,377.01 4.39% 26,545.23 (90,393.26) AA+ 4.22 UNITED STATES TREASURY4.0 12/16/2024 2,717,666.02 98.32 2,703,719.59 1.33% Aaa/AA+ 4.83 91282CFT3 10/31/2029 2,750,000.00 4.33% 2,717,938.65 4.39% 18,839.78 (14,219.06) AA+ 4.31 UNITED STATES TREASURY4.125 12/04/2024 1,503,339.84 98.86 1,482,958.19 0.73% Aaa/AA+ 4.91 91282CMA6 11/30/2029 1,500,000.00 4.08% 1,503,290.32 4.38% 5,439.56 (20,332.14) AA+ 4.38 UNITED STATES TREASURY4.375 12/30/2024 1,998,984.38 99.95 1,998,995.28 0.98% Aaa/AA+ 5.00 91282CMD0 12/31/2029 2,000,000.00 4.39% 11998,984.94 4.39% 241.71 10.34 AA+ 4.44 41,504,488.18 97.85 41,506,661.85 20.39% Aaa/AA+ 2.16 Total US Treasury 42,440,000.00 4.13% 41,845,656.13 4.31% 247,798.10 (338,994.27) AA+ 1.97 204,202,745.36 49.29 203,546,420.01 100.00% Aa2/AA 1.05 Total Portfolio 205,436,948.21 4.07% 204,563,350.74 4.42% 674,419.58 (1,016,930.73) AA+ 0.94 Total Market Value + Accrued 204,220,839.60 34 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 CHANDLER it% ASSET MANAGEMENT 35 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 TRANSACTION LEDGER City of Tustin Cons Account I Account #10795 1 10/01/2024 Through 12/31/2024 1 CHANDLER ASSET ASSET MANAGEMENT ACQUISITIONS Purchase 10/16/2024 9128284R8 3,000,000.00 UNITED STATES TREASURY 99.078 4.39% (2,972,343.75) (32,520.49) (3,004,864.24) 0.00 2.875 05/31/2025 Purchase 10/31/2024 037833DP2 1,000,000.00 APPLE INC 2.2 09/11/2029 90.849 4.31% (908,490.00) (3,055.56) (911,545.56) 0.00 Purchase 11/06/2024 91282CEU1 2,500,000.00 UNITED STATES TREASURY 99.141 4.32% (2,478,515.63) (28,278.69) (2,506,794.32) 0.00 2.875 06/15/2025 Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase 11/12/2024 9128283W8 1,400,000.00 UNITED STATES TREASURY 95.574 4.22% (1,338,039.06) (9,311.14) (1,347,350.20) 2.75 02/15/2028 11/18/2024 91282CEY3 3,000,000.00 UNITED STATES TREASURY gg 121 4.36% (2,973,632.81) (30,815.22) (3,004,448.03) 3.0 07/15/2025 11/30/2024 90CAMP$00 25,000,000.00 CAMP 1.000 4.81% (25,000,000.00) 0.00 (25,000,000.00) 12/04/2024 90CAMP$00 4,000,000.00 CAMP 1.000 4.65% (4,000,000.00) 0.00 (4,000,000.00) 12/05/2024 91282CMA6 12/17/2024 91282CFT3 12/20/2024 90CAMP$00 12/31/2024 91282CM D0 1,500,000.00 UNITED STATES TREASURY 100.223 4.08% (1,503,339.84) (849.93) (1,504,189.77) 4.125 11/30/2029 2,750,000.00 UNITED STATES TREASURY 98824 4.27% (2,717,666.02) (14,281.77) (2,731,947.79) 4.0 10/31/2029 7,000,000.00 CAMP 1.000 4.65% (7,000,000.00) 0.00 (7,000,000.00) 2,000,000.00 UNITED STATES TREASURY 99.949 4.39% (1,998,984.38) 0.00 (1,998,984.38) 4.375 12/31/2029 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Purchase 53,150,000.00 (52,891,011.49) (53,010,124.29) 0.00 TOTAL ACQUISITIONS 53,150,000.00 (52,891,011.49) (53,010,124.29) 0.00 DISPOSITIONS Maturity 10/03/2024 912797GW1 (3,000,000.00) UNITED STATES TREASURY 100.000 0.00% 3,000,000.00 0.00 3,000,000.00 0.00 10/03/2024 36 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 TRANSACTION LEDGER C31CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 10/01/2024 Through 12/31/2024 1 Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Amount Interest Total Amount Gain/Loss Type D. . . Maturity 10/31/2024 912828YM6 (1,250,000.00) UNITED STATES TREASURY 100.000 1.50% 1,250,000.00 0.00 1,250,000.00 0.00 1.5 10/31/2024 Maturity 11/05/2024 912797MA2 (2,500,000.00) UNITED STATES TREASURY 100.000 0.00% 2,500,000.00 0.00 2,500,000.00 0.00 11/05/2024 Maturity 11/08/2024 3130APQ81 (1,000,000.00) FEDERALHOMELOAN 100.000 1.00% 1,000,000.00 0.00 1,000,000.00 0.00 BANKS 1.0 11/08/2024 Maturity 11/15/2024 912828G38 (3,000,000.00) UNITED STATES TREASURY 100.000 2.25% 3,000,000.00 0.00 3,000,000.00 0.00 2.25 11/15/2024 Maturity 11/30/2024 912828YV6 (1,250,000.00) UNITED STATES TREASURY 100.000 1.50% 1,250,000.00 0.00 1,250,000.00 0.00 1.5 11/30/2024 Maturity 12/12/2024 912797LPO (2,500,000.00) UNITED STATES TREASURY 100.000 0.00% 2,500,000.00 0.00 2,500,000.00 0.00 12/12/2024 Maturity 12/20/2024 313OAQF40 (1,000,000.00) FEDERAL HOME LOAN 100.000 1.00% 1,000,000.00 0.00 1,000,000.00 0.00 BANKS 1.0 12/20/2024 Maturity 12/31/2024 912828YYO (1,300,000.00) UNITED STATES TREASURY 100.000 1.75% 1,300,000.00 0.00 1,300,000.00 0.00 1.75 12/31/2024 Total Maturity (16,800,000.00) 16,800,000.00 0.00 16,800,000.00 0.00 Sale 10/31/2024 90CAMP$00 (5,500,000.00) CAMP 1.000 5.01% 5,500,000.00 0.00 5,500,000.00 0.00 Sale 11/30/2024 90CAMP$00 (2,000,000.00) CAMP 1.000 4.81% 2,000,000.00 0.00 2,000,000.00 0.00 Sale 12/18/2024 90CAMP$00 (5,000,000.00) CAMP 1.000 4.65% 5,000,000.00 0.00 5,000,000.00 0.00 Total Sale (12,500,000.00) 12,500,000.00 0.00 12,500,000.00 0.00 TOTAL DISPOSITIONS (29,300,000.00) 29,300,000.00 0.00 29,300,000.00 0.00 37 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 IMPORTANT DISCLOSURES City of Tustin I As of December 31, 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. Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 BENCHMARK DISCLOSURES City of Tustin I As of December 31, 2024 CHANDLER ASSET MANAGEMENT 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 ICE BofA 1-5 Yr US Treasury & Agency Index (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. 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 ICE BofA 1-3 Yr US Treasury & Agency Index (based on an average of Moody's, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 39 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 CITY OF TUSTIN Monthly Investment Report December 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 8,080.68 N/A 8,080.68 8,080.68 2016 Water Revenue Bonds, Refunding 1,159.96 N/A 1,159.96 1,159.96 2020 Water Revenue Bonds 652.29 N/A 652.29 652.29 2024 Water Revenue Bonds 3,672,245.11 N/A 3,672,245.11 3,672,245.11 CFD 04-1 678,950.95 N/A 678,950.95 678,950.95 CFD 06-1 4,508,179.83 N/A 4,508,179.83 4,508,179.83 CFD 07-1 1,299,085.04 N/A 1,299,085.04 1,299,085.04 CFD 14-1 2,944,223.43 N/A 2,944,223.43 2,944,223.43 13,112,577.29 13,112,577.29 13,112,577.29 Restricted Deposits with Fiscal Agents TOTAL 13,112,577.29 13,112,577.29 Docusign Envelope ID: ECC776D0-50E5-49AD-B095-50BB8D28F930 LIC CY �a ■ RETIREMENT NTVSERVICES CITY OFTUSTIN Account Report for the Period PARS Post -Employment Benefits Trust 12/ 1/ 20 24 to 12/ 31/ 20 24 Aldo Schindler City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Balance as of Balance as of Source 12/'V2024 Contributions Earnings Expenses Distributions Transfers 12/31/2024 OPEB $4,599,911.24 $0.00-$115,105.60 $1,716.67 $0.00 $0.00 $4,483,088.97 PENSION $15,111,120.19 $0.00-$378,126.47 $5,639.38 $0.00 $0.00 $14,727,354.34 Totals $19,711,031.43 $0.00-$493,232.07 $7,356.05 $0.00 $0.00 $19,210,443.31 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 dividend and OPEB 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 dividend and PENSION 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-2.50% -1.08% 10.01% 2.14% 5.53% 6/26/2018 PENSION-2.50% -1.08% 10.04% 2.16% 5.54% 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 maybe 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