stression 99
Investment Report
For Quarter Ended December 31, 2021 C
City of Hercules, California
CITY OF HERCULES
FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200
February 8, 2021
Honorable Mayor and City Council:
I verified that this investment portfolio, as of December 31, 2021, conforms with all state laws and City's investment policy. The City's expenditures requirements for the next months are covered by anticipated revenues from City operations and liquidity from cash on deposit.
As of December 31, 2021, the City has sufficient funds to meet its expenditure requirements for the next six months.
Sincerely,
Edwin Gato
Finance Director/City Treasurer
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2021
Investments by Type
• Cash on Hand
•LAIF
• Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
• Investments with
Trustees
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,255 $2,255
Cash on Deposit 4,630,196 4,630,196
Total Cash on Hand 4,632,451 6.33% 0.05% 4,632,451
Local Agency Investment Fund (LAIF) 44,313,895 60.58% 0.21% 44,200,412 Irrevocable Trust (Pension) 2,260,477 3.09% 1.85% 2,260,477 Irrevocable Trust (OPEB) 2,936,693 4.01% 1.85% 2,936,693 Investments with Bond Trustees 19,000,795 25.98% ).16° 18,997,328 Total Portfolio $73,144,311 100.00% 0.45% $73,027,361
Amount over (under) Market Value vs. Book Value ($116,950) % of Portfolio -0.1599%
General Fund All Other Funds
$104,200 309,213
F 21-21 fiscat ear a Date vestment Earings 22,442 86,980 Note: Yield shown does not account for change in market value of investments.
City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended December 31, 2021
(DAYS)
BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET
DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE
CASH ON HAND
PETTY CASH 2,255.00 0.00% 0.00% 2,255.00 $2,255.00
CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 2,916,480.58 0.00% 0.00% 2,916,480.58 2,916,480.58 MECHANICS BANK - HERCULES RDA 1,568,144.74 0.00% 0.00% 1,568,144.74 1,568,144.74 MECHANICS BANK - PD ASSET SEIZURE 145,570.37 0.00% 0.00% 145,570.37 145,570.37 CalTRUST 0.19% 0.19% 9/30/2021 12/31/2021 92
TOTAL AND AVERAGES 4,630,195.69 0.05% 0.05% 92 4,.630, 195.69 4,630,195.69 LOCAL AGENCY INVESTMENT FUND (LAF) 44,313,894.74 0.21% 0.21% 9/30/2021 12/31/2021 92 44,313,894.74 44.200,412.17
IRREVOCABLE TRUST (PENSION/OPE)
US BANK MUTUAL (PARS-OPEB) | 2,936,693.10 1.85% 1.85% 9/30/2021 12/31/2021 2,936,693.10 2,936,693.10 US BANK MUTUAL (PARS-PENSION) 2,260,476.71 1.85% 1.85% 9/30/2021 12/31/2021 2,260,476.71 2,260,476.71 TOTAL AND AVERAGES 5,197,169.81 1.85% 1.85% 5,197,169.81 5,197,169.81
INVESTMENTS WITH BOND TRUSTEES
GE CAPITAL CORPORATION 14,407.74 3.03% 3.03% 9/30/2021 12/31/2021 14,407.74 14,407.74 STERLING NATIONAL BANK 0.02% 0.02% 9/30/2021 12/31/2021 92
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA SER 0507 REVENUE FUND) 29.04 0.00% 0.00% 9/30/2021 12/31/2021 92 29.04 29.04
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA SER 05 RESERVE FD) 0.01% 0.01% 9/30/2021 12/31/2021 2,812,917.05 2,812,915.05
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007A REVENUE FD) 3.97 0.00% 0.00% 9/30/2021 12/31/2021 92 3.97 3.97
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B REVENUE FD) 2.20 0.00% 0.00% 9/30/2021 12/31/2021 92 2.20 2.20
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B RESERVE A C) 1,082,580.97 0.01% 0.01% 9/30/2021 12/31/2021 92 1,082,580.97 1,082,580.97
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B PROJECT FD ACCOUNT) 52,111.58 0.01% 0.01% 9/30/2021 12/31/2021 92 52,111.58 52,111.58
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007A RESERVE A C) 955,982.92 0.01% 0.01% 9/30/2021 12/31/2021 92 955,982.92 955,982.92 THE BANK OF NEW YORK (BNY) JM RESERVE FUND 55,797.47 0.00% 0.00% 9/30/2021 12/31/2021 55,797.47 55,797.47
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA 2007A PROJ REIMB ACCT) 2,705.69 0.01% 0.01% 9/30/2021 12/31/2021 92 2,705.69 2,705.69
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA 2007A RESERVE ACCT) 3,813,349.03 0.01% 0.01% 9/30/2021 12/31/2021 92 3,813,349.03 3,813,349.03
THE BANK OF NEW YORK (BNY) MELLON TRUST
WWPT REVENUE BONDS (COST OF ISSUANCE) 2,887.50 0.00% 0.00% 9/30/2021 12/31/2021 92 2,887.50 2,887.50 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended December 31, 2021
(DAYS)
BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET
DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE 8,325,000.00 0.00% 0.00% 9/30/2021 12/31/2021 92 8,325,000.00 8,325,000.00
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 480,818.66 0.01% 0.01% 9/30/2021 12/31/2021 92 480,818.66 477,353.53
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 128,277.96 0.01% 0.01% 9/30/2021 12/31/2021 92 128,277.96 128,277.96
THE BANK OF NEW YORK (BNY) MELLON TRUST
284,201.51 0.01% 0.01% 9/30/2021 12/31/2021 92 284,201.51 284,201.51 (HERCULES PFA 09 RESERVE FD) 920,215.00 0.01% 0.01% 9/30/2021 12/31/2021 92 920,215.00 920,215.00
THE BANK OF NEW YORK (BNY) MELLON TRUST
0.00% 0.00% 9/30/2021 12/31/2021 92
THE BANE NEED MELLON TRUST
(HERCULES 2020 INT FD) 69.506.92 0.00% 0.00% 9/30/2021 12/31/2021 69,506.92 69,506.92 TOTAL AND AVERAGES 19,000,795.21 0.16% 0.16% 19,000,795.21 18,997,328.08 TOTAL INVESTMENT REPORT $73,144,310.45 0.45% 0.45% $73.144,310.45 $73.027.360.75 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2021
Cash by Fund
Internal Service Funds
4%
Bond Trustee
General Fund
.26%
17%
Inevocable Trust
7%
Restricted
46%
% of
Cash Description Book Value Total
Bond Trustee $19,000,795 26%
Irrevocable Trust 5,197,170 7%
Restricted 33,860,147 46%
General Fund 12,394,306 17%
Internal Service Funds 2,691,893 4%
$73,144,311 100%
Restricted:
Wastewater $17,359,277
Successor Agency Fund 10,632,392
Development Impact Fees 2,074,897
Landscape & Lighting 1,188,656
Solid Waste 937,078
Gas Tax & Measure J "Street" 1,422,817
Asset Seizure 245,030
$33,860,147
PMIA/LAIF Performance Report
as of 01/13/22
PMIA Average Monthly Quarterly Performance
Effective Yields(1) Quarter Ended 12/31/21
Dec 0.212 LAIF Apportionment Rate (2). 0.23
Nov 0.203 LAIF Earnings Ratio(2) 0.00000625812849570
Oct 0.203 LAIF Fair Value Factor!). 0.997439120
0.22%
PMIA Quarter to Date(). 0.21%
340
Pooled Money Investment Account
Monthly Portfolio Composition (1)
12/31/21
$181.4 billion
Corporate
Commercial Bonds
Paper 0.17%
Loans
Time 6.33%
_0.41%
Deposits
2.10%
Certificates of
Deposit/Bank Notes
7.39%
Agencies
18.20%
Treasuries
65.40%
Chart does not include $6,716,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Daily rates are now available here. View PMIA Daily Rates Notes: The apportionment rate includes interest earned on the CaPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a).
Source:
) State of California, Office of the Treasure
State of Calfiornia, Office of the Controlle
City of Hercules
As of December 31, 2021
Presented By
Randall Yurchak, CFA
/HIGHMARK®
CAPITAL MANAGEMENT
Selected Period Performance
Hercules OPEB
Period Ending: 12/31/2021
Year Inception
to Date to Date
3 Months (1 Year) 3 Years 5 Years 10 Years 06/01/2010
Cash Equivalents .00 .02 .82 98 .53 .46
Lipper Money Market Funds Index .00 .00 .79 .93 48 .41
Total Fixed Income - 29 -.75 4.79 3.68 3.27 3.54
Bloomberg US Aggregate Bd Index .01 -1.54 4.79 3.57 2.90 3.41 Total Equities 6.28 19.11 21.48 15.20 13.52 12.86
Large Cap Funds 8.42 26.02 25.25 18.04 16.18 14.99
S&P 500 Composite Index 11.03 28.71 26.07 18.47 16.55 15.89 Mid Cap Funds 6.61 22.50 23.02 14.81 13.19 13.18
Russell Midcap Index 6.44 22.58 23.29 15.10 14.91 14.39 Small Cap Funds 3.36 10.64 19.82 14.19 14.66 14.48
Russell 2000 Index 2.14 14.82 20.02 12.02 13.23 12.62
International Equities 1.59 4.93 13.92 10.28 7.15 6.72
MSCI EAFE Index: 2.69 11.26 13.54 9.55 8.03 7.61
MSCI EM Free Index -1.31 -2.54 10.94 9.87 5.49 4.95
REIT Funds 15.25 40.45 19.35 10.97
Wilshire REIT Index 17.14 46.18 19.19 10.92 11.47 12.07 Total Managed Portfolio 1.85 5.27 9.80 8.26 8.22 8.18
Performance Inception: 6/1/2010
The OPEB plan was invested in account 6746019207, PARS Balanced HighMark Plus, from June 1, 2010 to December 31, 2017. The Plan was then subsequently invested in account 6746050104, PARS Moderately Conservative HighMark Plus, from January 1, 2018 and onwards. Returns are gross of account level investment advisory fees and net of any fees, including fees to manage mutual fund or exchange traded fund holdings. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value.
/HIGHMARK® PARS: City of Hercules
CAPITAL MANAGEMENT
Asset Allocation - OPEB Plan
As of December 31, 2021
Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 31.75%
Large Cap Core COFYX Columbia Contrarian Core Inst3 3.08% VGIAX Vanguard Growth & Income Adm 5.79%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.75%
IVE iShares S&P 500 Value ETF 1.29%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.73% PRUFX T. Rowe Price Growth Stock Fund I 1.71%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.62%
Small Cap Value UBVEX Undiscovered Managers Behavioral Val R6 2.92% Small Cap Growth RSEJX Victory RS Sm Cap Growth #279 2.79% International Core DFALX DFA Large Cap International I 2.09% International Value DODFX Dodge & Cox International Stock Fund 0.96% International Growth MGRDX MFS® International Growth R6 0.95% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.00% Real Estate Vanguard Real Estate ETF 1.08%
Fixed Income Range: 50%-80% 67.69%
Short-Term VESUX Vanguard Short-Term Investment-Grade Adm 11.73% Intermediate-Term DBLFX DoubleLine Core Fixed Income / 17.73% PTTRX PIMCO Total Return Instl Fund 17.76%
PTRQX Prudential Total Return Bond Q 17.82%
High Yield PHIYX PIMCO High Yield Instl 2.65%
Cash Range: 0%-20% 0.56%
First American Government Oblig Z 0.56%
TOTAL 100.00%
/HIGHMARK® PARS: City of Hercules
CAPITAL MANAGEMENT
Selected Period Performance
PARS/PRSP MODERATELY CONSERVATIVE HM
Account 6746050104
Period Ending: 12/31/2021
Year Inception
to Date to Date
3 Months (1 Year) 3 Years (4 Years)
Cash Equivalents .00 .02 .82 1.04
Lipper Money Market Funds Index .00 .00 .79 1.00
Total Fixed Income -29 -75 4.79 3.47
Bloomberg US Aggregate Bd Index .01 -1.54 4.79 3.58
Total Equities 6.28 19.11 21.48 13.14
Large Cap Funds 8.42 26.02 25.25 16.77
S&P 500 Composite Index 11.03 28.71 26.07 17.65
Mid Cap Funds 6.61 22.50 23.02 14.03
Russell Midcap Index 6.44 22.58 23.29 14.26
Small Cap Funds 3.36 10.64 19.82 12.36
Russell 2000 Index 2.14 14.82 20.02 11.37
International Equities 1.59 4.93 13.92 5.79
MSCI EAFE Index 2.69 11.26 13.54 5.99
MSCI EM Free Index -1.31 -2.54 10.94 3.92
REIT Funds 15.25 40.45 19.35 12.41
Wilshire REIT Index 17.14 46.18 19.19 12.67
Total Managed Portfolio 1.85 5.27 9.80 6.49
Performance Inception: 12/01/2017 Initial contribution was made on November 2017.
Over one yoar are anualied. The moration presented has been obained from sures eleven role mucuate and reliaba. Past performance is at intrate aire returns. Securities are not FDIC insured, have no bank guarantee, and may lose value.
HIGHMARK® PARS: City of Hercules
CAPITAL MANAGEMENT
Asset Allocation - Pension
As of December 31, 2021
Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 31.75%
Large Cap Core COFYX Columbia Contrarian Core Inst3 3.08% VGIAX Vanguard Growth & Income Adm 5.79%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.75%
IVE iShares S&P 500 Value ETF 1.29%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.73% PRUFX T. Rowe Price Growth Stock Fund I 1.71%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.62%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.92% Small Cap Growth RSEJX Victory RS Sm Cap Growth #279 2.79% International Core DFALX DFA Large Cap International I 2.09% International Value DODFX Dodge & Cox International Stock Fund 0.96% International Growth MGRDX MFS® International Growth R6 0.95% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.00% Real Estate VNQ Vanguard Real Estate ETF 1.08%
Fixed Income Range: 50%-80% 67.69%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 11.73% Intermediate-Term DBLEX DoubleLine Core Fixed Income I 17.73% PTTRX PIMCO Total Return Instl Fund 17.76%
PTRQX Prudential Total Return Bond Q 17.82%
High Yield PHIYX PIMCO High Yield Instl 2.65%
Cash Range: 0%-20% 0.56%
FGZXX First American Government Oblig Z 0.56%
TOTAL 100.00%
/HIGHMARK® PARS: City of Hercules
CAPITAL MANAGEMENT
CITY OF HERCULES
For Period Ending December 31, 2021
LARGE CAP EQUITY FUNDS
1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year
Fund Name Return Return Date Return Return Return Return Columbia Contrarian Core Inst3 4.96 8.34 24.45 24.45 26.57 17.65 16.55 Dodge & Cox Stock 5.51 5.85 31.73 31.73 20.78 14.14 15.57 Harbor Capital Appreciation Retirement -2.64 5.02 15.74 15.74 33.63 26.43 20.04 iShares S&P 500 Value ETF 7.02 8.28 24.67 24.67 18.46 11.72 13.10 Vanguard Growth & Income Adm 4.57 11.43 29.11 29.11 25.54 17.92 16.55 T. Rowe Price Growth Stock I -0.88 4.77 20.18 20.18 29.23 23.41 19.24 S&P 500 TR USD 4.48 11.03 28.71 28.71 26.07 18.47 16.55
MID CAP EQUITY FUNDS
iShares Russell Mid-Cap ETF 4.07 6.40 22.38 22.38 23.08 14.92 14.73 Russell Mid Cap TR USD 4.08 6.44 22.58 22.58 23.29 15.10 14.91
SMALL CAP EQUITY FUNDS
Undiscovered Managers Behavioral Val R6 5.57 7.31 34.50 34.50 19.79 10.60 14.08 Victory RS Small Cap Growth R6 -0.27 -0.55 -10.74 -10.74 19.55 16.42 15.00 Russell 2000 TR USD 2.23 2.14 14.82 14.82 20.02 12.02 13.23
INTERNATIONAL EQUITY FUNDS
Dodge & Cox International Stock 2.40 11.03 11.65 7.19 7.58 DFA Large Cap International I 3.32 12.81 14.18 9.88 8.02 MFS International Growth R6 4.94 9.65 17.37 14.35 10.09 MSCI EAFE NR USD 2.69 11.26 13.54 9.55 8.03
Hartford Schroders Emerging Mkts Eq F -2.93 -4.93 12.91 11.41 6.50 MSCI EM NR USD -1.31 -2.54 10.94 9.87 5.49
Source: SEI Investments, Morningstar Investments
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
HIGHMARK® PARS: City of Hercules
CAPITAL MANAGEMENT
CITY OF HERCULES
For Period Ending December 31, 2021
REAL ESTATE FUNDS
1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year
Fund Name Return Return Date Return Return Return Return Vanguard Real Estate ETF 9.70 14.89 40.38 40.38 19.91 11.22 11.50
BOND FUNDS
DoubleLine Core Fixed Income I -0.13 -0.23 -0.34 -0.34 4.36 3.53 3.59 PIMCO Total Return Instl 0.18 0.16 -0.61 -0.61 5.42 4.20 3.70 Vanguard Short-Term Investment-Grade Adm 0.04 -0.69 -0.33 -0.33 3.55 2.74 2.52 PGIM Total Return Bond R6 0.03 0.29 -1.16 - 1.16 5.89 4.71 4.44 Bloomberg US Agg Bond TR USD -0.26 0.01 - 1.54 -1.54 4.79 3.57 2.90 PIMCO High Yield Insti 2.06 0.68 4.05 4.05 8.00 5.62 6.17 ICE BofA US High Yield Mstr II Index 1.88 0.66 5.36 5.36 8.57 6.10 6.76 Source: SEI Investments, Morningstar Investments
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. /HIGH MARK® PARS: City of Hercules
CAPITAL MANAGEMENT