City of Emeryville
Investment Management and Advisory Services
For One-on-One Presentation Only
Chandler Asset Management | 1
Specializing in Investment Management for Public Agencies Independent & Employee-Owned
• Fixed income specialist since 1988
• Founded by public investment professionals
• Serve institutions with public sector focus
• Headquartered in San Diego, CA, with offices in the Bay Area
Custom Investment Programs
• Investment solutions based on your risk profile and
return goals
• Strategies for operating, short, and long term reserves • Direct contact with investment management team
Stable Team of Investment Professionals
• Team of investment professionals average over two
decades portfolio management experience
• Disciplined, repeatable investment philosophy and
process
• Proprietary investment analysis
“We believe if we do what is right for our clients, our own success will follow.” Chandler Asset Management Assets as of March 31, 2022.
Assets Under Management
$26 Billion
Corporate
<1%
Non Profit 1%
Healthcare
16%
Sub-advisory
1%
Public
82%
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Chandler’s Representative List of Public Agency Clients Sample listing of the firm’s public agency clients as of 03/31/2022, shown in alphabetical order. This list includes discretionary and non-discretionary clients that have given permission to be listed. It is not known whether the listed clients approve or disapprove of Chandler Asset Management or the services provided. • Alpine, CA
• Buncombe, NC
• Calaveras, CA
• Dakota, MN
• Denver, CO
• Gwinnett, GA
• Mendocino, CA
• Pitkin, CO
• Routt, CO
• San Diego, CA
• Santa Clara, CA
• Sierra, CA
• Agoura Hills, CA
• American Canyon,CA
• Arcata, CA
• Brea, CA
• Breckenridge, CO
• Buena Park, CA
• Camarillo, CA
• Corona, CA
• Chino Hills, CA
• Danville, CA
• Deltona, FL
• Dublin, CA
• Imperial Beach, CA
• Indio, CA
• La Habra, CA
• La Mirada, CA
• Lakewood, CO
• Leesburg, FL
• Long Beach, CA
• Louisville, CO
• Menifee, CA
• Merced, CA
• Monterey, CA
• Moreno Valley, CA
• National City, CA
• Newport Beach, CA
• Parker, CO
• Pittsburg, CA
• San Clemente, CA
• San Jacinto, CA
• San Leandro, CA
• San Marcos, CA
• San Juan Capistrano, CA
• Solana Beach, CA
• So. San Francisco, CA
• Sunnyvale, CA
• Tracey, CA
• Truckee, CA
• Westminster, CA
• Westminster, CO
• Alameda Corridor Trans. Authority, CA
• Authority for CA Cities Excess Liability, CA
• California Earthquake Authority
• California Insurance Pool Authority, CA
• California Joint Powers RMA, CA
• California Wildfire Fund, CA
• Colorado Springs Utilities, CO
• CSAC Excess Insurance Authority, CA
• Eagle River Water & Sanitation District, CO
• Elsinore Valley Municipal Water District, CA
• E-470 Public Highway Authority, CO
• Florida Polytechnic University, FL
• Fontana POA Retiree Benefit Trust, CA
• LiCON Cooperative of Nevada
• Los Angeles Co. Metro. Trans. Authority, CA
• Maricopa County Community College Dist., AZ
• Moulton Niguel Water District, CA
• Orange County Sanitation District, CA
• Orange County Transportation Authority, CA
• Palomar Healthcare, CA
• Petaluma Health Care District, CA
• Rancho California Water District, CA
• Redlands Community Hospital, CA
• Redwood Empire Muni. Insurance Fund, CA
• Reedy Creek Improvement District, FL
• San Bernardino Municipal Water District, CA
• San Diego County Regional Airport Authority, CA
• San Diego County Water Authority, CA
• South Metro Fire Rescue Authority, CO
• Tampa Bay Water, FL
• Three Valleys Municipal Water District, CA
• Transportation Corridor Agencies, CA
• Vallecitos Water District, CA
• Walnut Valley Water District, CA
• WestEd, CA
• Western Municipal Water District, CA
• Whittier Area Schools Ins. Authority, CA
• Yolo County Public Agency RMIA, CA
• Delaware
• Nevada
Cities
Counties
States
Other Entities
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Key Northern California Relationships
City of Alameda
City of San Mateo
Alameda County
Water District
City of Dublin City of Merced
City of South San
Francisco
City of Monterey
BCJPIA
City of Milpitas
City of Cupertino
This list includes discretionary clients that have given permission to be listed. It is not known whether the listed clients approve or disapprove of Chandler Asset Management, or the services provided.
City of Pittsburg City of Sunnyvale
Chandler Asset Management | 4
COMPLIANCE
Automated pre-trade, post-trade and end
of day compliance checks.
REPORTING
Presentations to Staff and Board.
RISK MANAGEMENT
Rigorous credit analysis and monitoring
of securities issuers.
Best-in-class resources for portfolio
management, compliance, settlement, and
reporting.
RESOURCES
Expert Oversight and Governance of Investment Program
INVESTMENT ADVISER
OVERSIGHT
Full time investment advisory and
management services.
CLIENT SERVICE
Direct access to Investment and Client
Service Professionals.
Chandler services are designed to do the heavy-lifting
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Review Investment
Policy Cash Flow Analysis Develop Portfolio Strategy
Active Investment
Management
Approach to Building an Optimal Investment Program
Credit analysis of security issuers and financial institutions Broker/dealer due diligence and relations
Consistent application of a disciplined, conservative investment process. Our approach focuses on:
Ongoing Management
• Safety of principal*
• Appropriate levels of liquidity
• Diversification of risk
• Compliance with legal requirements,
policies, and objectives
• Generating market yield and return
*While Chandler focuses on safety of principal by investing in conservative investment-grade quality bonds, investors should be aware that bonds and other fixed income securities do carry some degree of risk and we cannot ensure a profit nor guarantee against loss.
Portfolio Management is Risk Management
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Positioning securities along the yield curve to capture value across maturities
Adding Value and Controlling Risk
Portfolio
Duration
Sector
Allocation
Term
Structure
Security
Selection
Constraining portfolio duration relative to benchmark duration Strategic allocations to key sectors, with value-based rotation Selecting bonds that we believe are undervalued and offer the greatest potential for risk-adjusted return
Four Key Elements of Our Approach
Chandler Asset Management | 7
Implementing a Disciplined Repeatable Investment Process Proprietary quantitative Horizon Analysis Model suggests target duration, sector allocation and term structure.
The security selection process employs quantitative tools and rigorous qualitative analysis to determine relative value.
Chandler’s Investment Process
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Chandler’s Credit Process
The diagram above reflects the typical credit process applied to Chandler’s strategies. At any given time, other criteria may affect the process.
CREDIT
COMMITTEE INVESTMENT
COMMITTEE &
CIO REVIEW
CHANDLER STRATEGIES
Issuer-specific
fundamental
analysis
Industry
research and
fundamental
analysis
Macroeconomic
research
• Research reports
• Relative value
analysis
• Investment
recommendations
• Maintains Approved
Issuer List
Chandler’s Credit Committee provides continuous oversight and monitoring of credit issues and issuers • Evaluate fundamentals
• Determine relative value
• ESG considerations
• Segment issuers into three tiers
• Establish suitability by strategy
Chandler Asset Management | 9
Key Points for Chandler and City of Emeryville
Chandler’s approach is based on safety and liquidity first. At Chandler, portfolio management is risk management.
City’s investment policy is robust. Though we will formally review the policy, we are prepared to initially begin investing without any changes to the policy. Changes to the City’s investment program will be done in gradual, measured steps:
• Interest rates are on the rise
• Changes must consider Committee’s and City Council preferences Policy includes sustainable and responsible investing considerations—we will work to thoroughly understand City interpretations in order to ensure compliance.
Disclosures
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Disclosures
©2022 Chandler Asset Management, Inc., An Independent Registered Investment Adviser.
The information herein is provided for informational purposes only and should not be construed as a recommendation of any security, strategy, or investment product, nor an offer or solicitation for the purchase or sale of any financial instrument. No investment decision should be made based solely on the information provided herein. All investments involve risk, including loss of principal invested. The strategies referenced may not be suitable for all investors. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which was obtained from sources believed to be reliable, but are subject to change at any time at the provider's discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.
References to specific securities are examples of securities held in a portfolio and are not intended to be, and should not be interpreted as an offer, solicitation, or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio. The information contained in this sample presentation was obtained from sources we believe to be reliable, but we do not guarantee its accuracy. Past performance is not indicative of future success.
Any forecasts, forward-looking statements and assumptions are inherently limited and should not be relied upon as an indicator of future results. Any opinions or views constitute judgments made by the author at the date of this presentation and may become outdated or superseded at any time without notice. Any statements concerning financial market trends are based on current market conditions, which will fluctuate.
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.
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. Past performance is not indicative of future results.
Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which was obtained from sources believed to be reliable, but are subject to change at any time at the provider’s discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.
CHANDLER ASSET MANAGEMENT | 800.317.4747 | chandlerasset.com | [email protected]