1 Investment Report
For Quarter Ended September 30, 2022
City of Hercules, California
1 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended September 30, 2022
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 5,531,375 5,531,375
Total Cash on Hand 5,533,380 8.31% 0.05% 5,533,380 Local Agency Investment Fund (LAIF) 44,947,273 67.52% 1.51% 44,082,531 Irrevocable Trust (Pension) 1,965,355 2.95% -4.15% 1,965,355 Irrevocable Trust (OPEB) 2,448,470 3.68% -4.15% 2,448,470 Investments with Bond Trustees 11,673,625 17.54% 1.13% 11,672,577 Total Portfolio $66,568,103 100.00% -0.29% $65,702,313
Amount over (under) Market Value vs. Book Value ($865,790) % of Portfolio -1.3006%
Investments by Type
Cash on Hand
LAIF
Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
Investments with
Trustees
2 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended September 30, 2022
(DAYS)
BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET
DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE
CASH ON HAND
PETTY CASH 2,005.00 0.00% 0.00% 2,005.00 $2,005.00
CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 4,952,458.97 0.00% 0.00% 4,952,458.97 4,952,458.97 MECHANICS BANK - HERCULES RDA 395,980.02 0.00% 0.00% 395,980.02 395,980.02 MECHANICS BANK - PD ASSET SEIZURE 162,896.91 0.00% 0.00% 162,896.91 162,896.91 CalTRUST 20,039.28 0.19% 0.19% 7/1/2022 9/30/2022 91 - 20,039.28 20,039.28 TOTAL AND AVERAGES 5,531,375.18 0.05% 0.05% 91 - 5,531,375.18 5,531,375.18
LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 44,947,273.34 1.51% 1.51% 7/1/2022 9/30/2022 91 - 44,947,273.34 44,082,531.04
IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,448,469.58 -4.15% -4.15% 7/1/2022 9/30/2022 91 - 2,448,469.58 2,448,469.58 US BANK MUTUAL (PARS-PENSION) 1,965,355.20 -4.15% -4.15% 7/1/2022 9/30/2022 91 - 1,965,355.20 1,965,355.20 TOTAL AND AVERAGES 4,413,824.78 -4.15% -4.15% 91 - 4,413,824.78 4,413,824.78
INVESTMENTS WITH BOND TRUSTEES
GE CAPITAL CORPORATION 4,455.50 3.03% 3.03% 7/1/2022 9/30/2022 91 - 4,455.50 4,455.50
WEBSTER BANK (STERLING NATIONAL BANK
ESCROW) 117,474.09 0.24% 0.24% 7/1/2022 9/30/2022 91 - 117,474.09 117,474.09 THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 0.00% 7/1/2022 9/30/2022 91 - 55,797.47 55,797.47
THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 0.00% 7/1/2022 9/30/2022 91 - 2,887.50 2,887.50
THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW ACQUISITION FD 21 A 8,325,000.00 0.00% 0.00% 7/1/2022 9/30/2022 91 - 8,325,000.00 8,325,000.00
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 455,138.28 2.54% 2.54% 7/1/2022 9/30/2022 91 - 455,138.28 454,090.74
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 75,499.70 2.57% 2.57% 7/1/2022 9/30/2022 91 - 75,499.70 75,499.70
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 208,852.73 2.57% 2.57% 7/1/2022 9/30/2022 91 - 208,852.73 208,852.73
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 2.57% 2.57% 7/1/2022 9/30/2022 91 - 920,215.00 920,215.00
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 7/1/2022 9/30/2022 91 - 4,567.80 4,567.80
THE BANK OF NEW YORK (BNY) MELLON TRUST (SA
HERCULES 2022 A B DEBT SERVICE) 1,470,238.27 0.00% 0.00% 7/1/2022 9/30/2022 91 - 1,470,238.27 1,470,238.27 THE BANK OF NEW YORK (BNY) MELLON TRUST (sa
HERCULES 2022 A B INTEREST ACCT) 33,498.59 0.00% 0.00% 7/1/2022 9/30/2022 91 - 33,498.59 33,498.59 TOTAL AND AVERAGES 11,673,624.93 1.13% 1.13% 91 - 11,673,624.93 11,672,577.39 TOTAL INVESTMENT REPORT $66,568,103.23 -0.29% -0.29% 91 - $66,568,103.23 $65,702,313.39 3 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended September 30, 2022
% of
Cash Description Book Value Total
Bond Trustee $11,673,625 18%
Irrevocable Trust 4,413,825 7%
Restricted 33,130,713 50%
General Fund 15,707,950 24%
Internal Service Funds 1,641,990 2%
Total, Book Value $66,568,103 100%
Restricted:
Wastewater 21,014,397
Successor Agency 4,867,443
Development Impact Fees 1,966,977
Capital Projects 1,376,232
Solid Waste 908,649
Gas Tax & Measure J "Street" 752,798
Landscape & Lighting 736,381
Agency Fund 581,697
Grants 473,625
BART (Park & Ride) 289,617
Asset Seizure 162,897
33,130,713
Bond Trustee
17%
Irrevocable Trust
7%
Restricted
50%
General Fund
24%
Internal Service Funds
2%
Cash by Fund
4 September 1.513
August 1.276
July 1.090
0.00003699565555327
0.980760962
LAIF Earnings Ratio(2):
LAIF Fair Value Factor(1):
PMIA Daily(1): 1.63%
1.35LAIF Apportionment Rate(2):
PMIA Quarter to Date(1): 1.29%
304PMIA Average Life(1):
Treasuries
66.59%
Agencies
19.79%
Certificates of
Deposit/Bank Notes
6.44%
Time
Deposits
2.20%
Commercial
Paper
4.59%
Corporate
Bonds
0.22%
Loans
0.17%
Notes: The apportionment rate includes interest earned on the CalPERS 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:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 10/14/22
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/22
Chart does not include $3,917,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
09/30/22
$222.9 billion
5 City of Hercules
As of September 30, 2022
Presented By
Andrew Brown, CFA
6 PARS: City of Hercules
Performance Inception: 6/1/2010
The OPEB plan was invested in account 6746019207, PARS Balanced HighMark Plu s, from June 1, 2010 to December 31, 2017. The Plan was then subsequently in vested in account 6746050104, PARS Moderately Conservative H ighMark Plus, from January 1, 2018 and onwards. R eturns are gross of account level investment adv isory fees and net of any fees, including fees to manage mutual fund or exchange traded fund holdi ngs. Returns for periods over one year are annualized. The information p resented has been obtained from sources believed to be accurate and reliable. Past performance i s not indicative of future returns. Securities are not FDIC insured, ha ve no bank guarantee, and may lose value.
2 Quarter
to Date
(3 Months)
Year
to Date
(9 Months) 1 Year 3 Years 5 Years 10 Years
Inception
to Date
06/01/2010
Cash Equivalents .47 .62 .62 .47 1.00 .59 .48
Lipper Money Market Funds Index .49 .63 .63 .47 .97 .54 .44
Total Fixed Income -3.91 -13.73 -13.98 -2.76 -.14 1.10 2.09 Bloomberg US Aggregate Bd Index -4.75 -14.61 -14.60 -3.26 -.27 .89 1.88
Total Equities -5.72 -24.57 -19.83 4.79 5.46 8.84 9.50
Large Cap Funds -4.85 -24.84 -18.51 7.74 8.24 11.19 11.41 S&P 500 Composite Index -4.88 -23.87 -15.47 8.16 9.24 11.70 12.34
Mid Cap Funds -3.42 -24.13 -19.11 5.15 6.35 8.89 9.85
Russell Midcap Index -3.44 -24.27 -19.39 5.19 6.48 10.30 10.93
Small Cap Funds -3.25 -21.49 -18.85 5.04 5.66 10.58 11.34 Russell 2000 Index -2.19 -25.10 -23.50 4.29 3.55 8.55 9.22
International Equities -10.54 -26.29 -25.12 -1.11 -.71 2.81 3.71 MSCI EAFE Index -9.36 -27.09 -25.13 -1.83 -.84 3.67 4.42 MSCI EM Free Index -11.57 -27.16 -28.11 -2.07 -1.81 1.05 1.99
REIT Funds -11.07 -29.25 -18.46 -1.98 2.76
Wilshire REIT Index -10.23 -29.66 -17.60 -2.17 2.88 6.15 8.17
Total Managed Portfolio -4.15 -16.31 -14.76 .03 2.18 5.15 6.12 Selected Period Performance
Hercules OPEB
Period Ending: 9/30/2022
7 Asset Allocation – OPEB Plan
As of September 30, 2022
PARS: City of Hercules
3 Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 27.39%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.76% VGIAX Vanguard Growth & Income Adm 5.20%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.53%
IVE iShares S&P 500 Value ETF 1.17%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.61% PRUFX T. Rowe Price Growth Stock Fund I 1.61%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.69%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.08% Small Cap Growth VBK Vanguard Small-Cap Growth ETF 2.12% International Core DFALX DFA Large Cap International I 1.76% International Value DODFX Dodge & Cox International Stock Fund 0.55% International Growth MGRDX MFS® International Growth R6 0.56% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 1.72% Real Estate VNQ Vanguard Real Estate ETF 1.02%
Fixed Income Range: 50%-80% 66.55%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.64% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.28% PTTRX PIMCO Total Return Instl Fund 17.33%
PTRQX Prudential Total Return Bond Q 17.27%
High Yield PHIYX PIMCO High Yield Instl 1.03%
Cash Range: 0%-20% 6.06%
FGZXX First American Government Oblig Z 6.06%
TOTAL 100.00%
8 PARS: City of Hercules
Performance Inception: 12/01/2017 Initial contribution was made on November 2017.
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 i ndicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. 4 Quarter
to Date
(3 Months)
Year
to Date
(9 Months) 1 Year 3 Years
Inception
to Date
(58 Months)
Cash Equivalents .47 .62 .62 .47 1.01
Lipper Money Market Funds Index .49 .63 .63 .47 .97
Total Fixed Income -3.91 -13.73 -13.98 -2.76 -.12
Bloomberg US Aggregate Bd Index -4.75 -14.61 -14.60 -3.26 -.26
Total Equities -5.72 -24.57 -19.83 4.79 4.80
Large Cap Funds -4.85 -24.84 -18.51 7.74 7.48
S&P 500 Composite Index -4.88 -23.87 -15.47 8.16 8.37
Mid Cap Funds -3.42 -24.13 -19.11 5.15 5.49
Russell Midcap Index -3.44 -24.27 -19.39 5.19 5.62
Small Cap Funds -3.25 -21.49 -18.85 5.04 4.93
Russell 2000 Index -2.19 -25.10 -23.50 4.29 2.89
International Equities -10.54 -26.29 -25.12 -1.11 -1.16 MSCI EAFE Index -9.36 -27.09 -25.13 -1.83 -1.39
MSCI EM Free Index -11.57 -27.16 -28.11 -2.07 -2.61
REIT Funds -11.07 -29.25 -18.46 -1.98 2.52
Wilshire REIT Index -10.23 -29.66 -17.60 -2.17 2.60
Total Managed Portfolio -4.15 -16.31 -14.76 .03 1.70
Selected Period Performance
PARS/PRSP MODERATELY CONSERVATIVE HM
Account 6746050104
Period Ending: 9/30/2022
9 Asset Allocation – Pension
As of September 30, 2022
PARS: City of Hercules
5 Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 27.39%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.76% VGIAX Vanguard Growth & Income Adm 5.20%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.53%
IVE iShares S&P 500 Value ETF 1.17%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.61% PRUFX T. Rowe Price Growth Stock Fund I 1.61%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.69%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.08% Small Cap Growth VBK Vanguard Small-Cap Growth ETF 2.12% International Core DFALX DFA Large Cap International I 1.76% International Value DODFX Dodge & Cox International Stock Fund 0.55% International Growth MGRDX MFS® International Growth R6 0.56% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 1.72% Real Estate VNQ Vanguard Real Estate ETF 1.02%
Fixed Income Range: 50%-80% 66.55%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.64% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.28% PTTRX PIMCO Total Return Instl Fund 17.33%
PTRQX Prudential Total Return Bond Q 17.27%
High Yield PHIYX PIMCO High Yield Instl 1.03%
Cash Range: 0%-20% 6.06%
FGZXX First American Government Oblig Z 6.06%
TOTAL 100.00%
10 PARS: City of Hercules
6 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 -9.50 -5.67 -23.36 -16.97 8.44 8.36 11.61 Vanguard Growth & Income Adm -8.98 -4.48 -22.69 -13.85 8.64 9.26 11.80 Dodge & Cox Stock I -9.52 -7.19 -17.89 -13.09 8.46 7.29 11.39 iShares S&P 500 Value ETF -8.48 -5.86 -16.69 -9.80 4.93 6.00 9.45 Harbor Capital Appreciation Retirement -9.15 -1.80 -36.75 -33.57 8.36 9.90 12.86 T. Rowe Price Growth Stock I -9.49 -3.29 -38.69 -35.76 3.60 6.83 11.48 S&P 500 TR USD -9.21 -4.88 -23.87 -15.47 8.16 9.24 11.70 iShares Russell Mid-Cap ETF -9.28 -3.47 -24.35 -19.51 5.03 6.33 10.13 Russell Mid Cap TR USD -9.27 -3.44 -24.27 -19.39 5.19 6.48 10.30 Undiscovered Managers Behavioral Val R6 -9.95 -5.61 -13.07 -6.72 9.14 5.99 10.79 Russell 2000 Value TR USD -10.19 -4.61 -21.12 -17.69 4.72 2.87 7.94 Vanguard Small-Cap Growth ETF -8.99 -0.79 -30.50 -30.09 2.82 5.65 9.15 Russell 2000 Growth TR USD -9.00 0.24 -29.28 -29.27 2.94 3.60 8.81 Dodge & Cox International Stock I -9.05 -10.69 -19.64 -17.71 0.25 -1.48 4.17 DFA Large Cap International I -9.44 -10.05 -25.80 -23.33 -0.75 -0.26 3.83 MFS International Growth R6 -7.89 -7.73 -25.61 -21.94 0.99 3.04 5.56 MSCI EAFE NR USD -9.35 -9.36 -27.09 -25.13 -1.83 -0.84 3.67 Hartford Schroders Emerging Mkts Eq F -10.82 -12.16 -29.54 -31.60 -2.63 -1.70 1.53 MSCI EM NR USD -11.72 -11.57 -27.16 -28.11 -2.07 -1.81 1.05 Source: SEI Investments, Morningstar Investments
INTERNATIONAL EQUITY FUNDS
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.
CITY OF HERCULES
For Period Ending September 30, 2022
LARGE CAP EQUITY FUNDS
MID CAP EQUITY FUNDS
SMALL CAP EQUITY FUNDS
11 PARS: City of Hercules
7 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 -12.83 -10.98 -29.25 -18.71 -1.62 3.07 6.23 PIMCO Total Return Instl -4.31 -4.82 -15.59 -15.65 -3.14 -0.30 1.05 PGIM Total Return Bond R6 -4.82 -4.57 -16.77 -16.51 -3.72 -0.14 1.74 Vanguard Short-Term Investment-Grade Adm -2.01 -1.87 -7.35 -7.98 -0.74 0.75 1.34 DoubleLine Core Fixed Income I -4.13 -4.08 -13.77 -13.96 -3.08 -0.31 1.36 Bloomberg US Agg Bond TR USD -4.32 -4.75 -14.61 -14.60 -3.26 -0.27 0.89 PIMCO High Yield Instl -3.77 -0.50 -14.37 -13.79 -1.28 1.05 3.45 ICE BofA US High Yield Mstr II Index -4.02 -0.68 -14.62 -14.06 -0.67 1.41 3.90 Source: SEI Investments, Morningstar Investments
REAL ESTATE FUNDS
BOND FUNDS
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.
CITY OF HERCULES
For Period Ending September 30, 2022
12