CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
1989
To: Honorable Mayor and Council Members
FROM: Tamara S. Letourneau, City Manager
DATE: November 1, 2022
SUBJECT: Investment Report as of September 30, 2022
RECOMMENDATION
Staff recommends that the City Council receive and file the City of Laguna Niguel Investment Report as of September 30, 2022.
BACKGROUND
The City Investment Policy requires the City Manager to submit an Investment Report monthly to the City Council that contains a summary of investment transactions, including investment types, percent of portfolio, yield, purchase date, maturity date, issuer or institution, par and dollar amount invested, market value, source of market valuation, the portfolio's average weighted yield and maturity, and a description of any local agency funds or investments under the management of contracted parties.
Submission of, and the City Council's action of receiving and filing this Report, addresses the City Council's goal of fiscal sustainability.
ANALYSIS
The following table compares the portfolio balance as of September 2022 to September 2021.
Portfolio Balance September 2022 September 2021 Difference Balance $61,556,261.20 $53,413,330.15 $8,142,931.05
• From August 2022 to September 2022, the City's total cash and investments had a net decrease of $4,236,676.05 going from $65,792,937.25 to $61,556,261.20. The cash outlay was higher than receipts for the month. The decrease is mainly derived from the $2,797,533.34 payment for July 2022 and August 2022 County of Orange law enforcement services and the $656,401.27 retention payment for the Niguel Road payment rehabilitation project. • The percentage of pooled investments decreased from 57.08% to 48.03%.
Pooled investments include the Local Agency Investment Fund (LAIF) and the Orange County Investment Pool (OCIP).
• The average weighted maturity of City investments, including investment pools, increased from 502 days to 552 days. The average weighted maturity of City investments, including investment pools, is calculated as follows: Sum of days left until maturity of each individual investment multiplied by the cost of each individual investment divided by the total portfolio at cost, excluding cash in bank.
• The net yield of LAIF increased from 1.276% to 1.513%. The net yield of OCIP increased from 0.979% to 1.260%.
• The average weighted yield of City investments, including investment pools, increased from 1.260% to 1.701%. The City's average weighted yield of City investments, including investment pools, is calculated by taking the total investment earnings divided by the total portfolio at cost, excluding cash in bank. A comparison of the City's average weighted yield to short-term and long- term benchmarks is presented below.
City Portfolio Benchmark Comparisons
Average 5-Year 1-Year 6-Month OCIP LAIF
Weighted Treasury Treasury Treasury
Yield
1.701% 4.060 % 4.050% 3.920% 1.260% 1.513%
The monthly Investment Report as of September 30, 2022, is attached.
ALTERNATIVES CONSIDERED
1. The City Council can choose not to receive and file the City of Laguna Niguel Investment Report as of September 30, 2022.
FISCAL REVIEW
There is no fiscal impact as a result of this action.
CONCLUSION
The City Investment Policy requires the submittal of a monthly Investment Report. Staff recommends that the City Council receive and file this Report.
Samass & slownean Erie Kendrubn
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
Attachments:
A. Monthly Investment Report as of September 30, 2022
ATTACHMENT A
Investment Report as of September 30, 2022
CITY OF LAGUNA NIGUEL
INVESTMENT REPORT
as of
September 30, 2022
Eric Hendrickson
FINANCE DIRECTOR
November 1, 2022
CITY OF LAGUNA NIGUEL
INVESTMENT REPORT
TABLE OF CONTENTS
Statement of Compliance/Non-Compliance 1
Report of Cash and Investments 2
LAIF Investment Reports 3-5
OCIP Investment Reports 6-8
US Bank Statement 9-17
PARS Statement 18
City of Laguna Niguel
Statement of Compliance/Non-Compliance with the City's Investment Policy The undersigned officers of the City of Laguna Niguel hereby certify that:
As of September 30, 2022, the City was in compliance with the Investment Policy adopted at the July 19, 2022 Regular City Council Meeting.
Sufficient investment liquidity from cash and cash equivalents and anticipated revenues are available to meet the City's budgeted expenditure requirements for the next six months.
Jamasa SOftonsean Sin Antiber
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
1 City of Laguna Niguel
Summary of Cash and Investments
9/30/22
Settlement Maturity Coupon Percent of Market
Description Date Date Rate Yield Cost Portfolio Value
Petty Cash/Change Drawers $ 2,600.00 0.00% $ 2,600.00
US Bank Checking Account $ 1,869,210.50 3.04% $ 1,869,210.50 US Bank Money Market Variable $ 3,675.48 0.01% $ 3,675.48 Local Agency Investment Fund 1.513% $ 28,530,597.32 46.35% $ 28,163,277.69 Orange County Investment Pool 1.260% $ 1,037,317.54 1.69% $ 1,037,317.54 Federal Home Loan Mortgage Corporation: 8.43%
3134GV5R5 7/15/2020 7/15/2024 0.570% 0.610% 1,000,000.00 932,710.00 3137EAEPO 1/29/2021 2/12/2025 1.500% 1.600% 4,188,112.71 3,748,640.00 Federal National Mortgage Association: 14.05%
3135G05X7 1/29/2021 8/25/2025 0.375% 0.420% 8,645,922.29 7,779,105.00 Federal Farm Credit Banks: 6.49%
3133ENVD9 4/26/2022 4/26/2027 2.875% 3.030% 3,995,360.00 3,794,280.00 Federal Home Loan Banks: 19.95%
3130AJTF6 7/14/2020 7/14/2025 0.740% 0.820% 1,000,000.00 900,360.00 3130AUTX7 7/21/2020 7/21/2025 0.720% 0.800% 625,000.00 562,050.00 3130AMFS6 8/12/2021 6/12/2026 0.750% 0.850% 2,001,415.36 1,764,420.00 3130A8XY4 10/18/2021 9/11/2026 1.875% 2.050% 4,665,690.00 4,105,800.00 3130ATBLO 9/19/2022 12/8/2023 3.625% 3.660% 3,991,360.00 3,961,320.00 Total City Investments Including Investment Pools $ 61,556,261.20 100.00% $ 58,624,766.21 Restricted for Specific Use
PARS 115 Pension Trust -5.290% $ 1,000,000.00 $ 877,267.05 Average weighted maturity of Investments, excluding Investment Pools: 1,094 days Average weighted maturity of Investments, including Investment Pools: 552 days Average weighted yield of Investments, excluding Investment Pools 1.923% Average weighted yield of Investments, including Investment Pools 1.701% * Market value of City investments is provided by US Bank NOTE: Market value disclosure is for informational purposes only. City policy is to hold all investments to maturity; therefore, any unrealized gain or loss reflected between the cost and market value of an investment will not be realized. 2 PMIA/LAIF Performance Report
as of 10/14/22
PMIA Average Monthly Quarterly Performance
Effective Yields(1) Quarter Ended 09/30/22
September 1.513 LAIF Apportionment Rate(2). 1.35
August 1.276 LAIF Earnings Ratio(2): 0.00003699565555327 July 1.090 AIF Fair Value Factor 0.980760962
MIA Daily! 1.63%
PMIA Quarter to Date 1.29%
PMIA Average Life ( 304
Pooled Money Investment Account
Monthly Portfolio Composition (1)
09/30/22
$222.9 billion
Corporate
Commercial Bonds
Time Paper 0.22%
Deposits 4.59%- Loans
2.20% 0.17%
Certificates of
Deposit/Bank Notes.
6.44%
Agencies
19.79%
Treasuries
66.59%
Chart does not include $3,917,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.
Daily rates are now availabie 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:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
3 State of California
Pooled Money Investment Account
Market Valuation
9/30/2022
Carrying Cost Plus
Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury:
Bills $ 46,457,160,163.94 $ 46.657,126.553.35 I$ 46,514.062,000.00 NA Notes $ 101,947,915,596.75 $ 101,931,736,332.18 $ 98,369.732,500.00 237,324,054.50 Federal Agency:
SBA $ 334,748,643.50 $ 334,663,003.17 $ 335,043,755.16 $ 569,406.02 MBS-REMICS $ 3,916,682.58 $ 3,916,682.58 $ 3,897,852.17 $ 17,633.20 Debentures 8,593,591,055.03 8,592,721,013.39 $ 8,353,930,850.00 $ 19,156,465.50 Debentures FR - $ $
Debentures CL 2,650,000,000.00 $ 2,650,000,000.00 $ 2,574,109,000.00 $ 18,005,248.00 Discount Notes $ 30,277,339,791.63 $ 30,410,365,854.03 $ 30,310,774,000.00 NA Supranational Debentures $ 2,229,190,558.99 2,229,010,003.43 2,133,180,400.00 $ 7,597,861.50 Supranational Debentures FR $ - $
CDs and YCDs FR - - $ - $
Bank Notes 100,000,000.00 $ 100.000.000.00 $ 99,780,349.59 $ 775,000.00 CDs and YCDs 14,260,000,000.00 $ 14,260,000,000.00 14,229,806,876.24 $ 76,472,855.58 Commercial Paper 10,239,348,756.91 $ 10,295,023,243.07 10,275,778,388.91 NA Corporate:
Bonds FR $ - $ - - $
Bonds $ 481,185,800.06 $ 481,129,063.95 $ 451,006,190.00 $ 2,646,445.75 Repurchase Agreements $ - $ $ $
Reverse Repurchase $ - $ $ $
Time Deposits 4,909,000,000.00 4,909,000,000.00 $ 4,909,000,000.00 NA PMIA & GF Loans $ 367,981,000.00 $ 367,981,000.00 $ 367,981,000.00 NA TOTAL $ 222,851,378,049.39 $ 223.222,672,749.15| S 218.928,083,162.07$ 362,564,970.05 Fair Value Including Accrued Interest $ 219,290,648,132.12 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participating dollar equals the fair value divided by the amortized cost (0.980760962).
As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,615,219.23 or $20,000,000.00 × 0.980760962. 4 10/3/22, 9:54 AM LAIF Regular Monthly Statement
California State Treasurer
Fiona Ma, CPA
Local Agency Investment Fund October 03, 2022
P.O. Box 942809
Sacramento, CA 94209-0001 LAIF Home
(916) 653-3001 PMIA Average Monthly Yields
CITY OF LAGUNA NIGUEL
TREASURER
30111 CROWN VALLEY PARK WAY
LAGUNA NIGUEL, CA 92677
Tran Type Definitions
Account Number:
September 2022 Statement
Web
Effective Transaction Tran Confirm Confirm
Date Date Type Number Number Authorized Caller Amount
9/21/2022 9/21/2022 RW 1713460 N/A KRISTIN FORIER -1,000,000.00 Account Summary
Total Deposit: 0.00 Beginning Balance: 29,530,597.32
Total Withdrawal: -1,000,000.00 Ending Balance: 28,530,597.32
COUNTY OF ORANGE
OFFICE OF THE TREASURER-TAX COLLECTOR DANGT COUNT
Shari L. Freidenrich, CPA, CCMT, CPFA, ACPFIM
P. O. BOX 4515
LIFOR SANTA ANA, CA 92702-4515
ctreasurer.com/publicfunds
September 30, 2022
CITY OF LAGUNA NIGUEL
Attn: Eric Hendrickson, Finance Director
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Fund Number :
SEPTEMBER 2022 STATEMENT
INVESTMENT BALANCE IN OCIP
Transactions
Transaction Transaction Description Authorized Signer
Date Amount
09/01/2022 August 2022 Investment Admin Fee $ (375.72)
09/02/2022 Withdrawal Eric Hendrickson (3,000,000.00)
09/13/2022 Withdrawal Eric Hendrickson (4,000,000.00)
09/28/2022 June 2022 Interest Paid $ 11,602.40
Summary
Total Deposit: $ 11,602.40 Beginning Balance: $ 8,026,090.86 Total Withdrawal: $ (7,000,375.72) Ending Balance: $ 1,037,317.54 6 OF
OFFICE OF THE TREASURER-TAX COLLECTOR CALICE COUNT
SHARI L. FREIDENRICH, CPA, CCMT, CPFA, ACPFIM
8 P.O. Box 4515
CALIFORNI SANTA ANA, CA 92702-4515
octreasurer.com/publicfunds
ORANGE COUNTY INVESTMENT POOL
APPORTIONMENT YIELDS & BASIS POINT FEES
FY 22/23 Date Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis Year Point Fees
Gross Yield Net Yield Point Fees
July 2022 0.848% (1) 0.793% (1) 5.5
YTD August 2022 1.034% 0.979% 5.5
GROSS September 2022 1.315% 1.260% 5.5
YIELD October 2022
1.057% November 2022
December 2022 Not Yet
January 2023 Available
February 2023
YTD NET March 2023
YIELD April 2023
1.002% May 2023
June 2022
FY 21/22 Date Year Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis Gross Yield Net Yield Point Fees Point Fees
July 2021 0.593% 0.535% 5.8
YTD August 2021 0.575% 0.517% 5.8
GROSS September 2021 0.562% 0.504% 5.8
YIELD October 2021 0.514% 0.456% 5.8
0.523% November 2021 0.515% 0.457% 5.8
December 2021 0.396% 0.338% 5.8 Not Yet
January 2022 0.402% 0.344% 5.8 Available
February 2022 0.439% 0.381% 5.8
YTD NET March 2022 0.462% 0.404% 5.8
YIELDR April 2022 0.513% (1) 0.455% (1) 5.8
0.471% May 2022 0.614% (1) 0.594% (1) 2.0
June 2022 0.722% (1) 0.702% (1) 2.0
FY 20/21 Date Year Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis Gross Yield Net Yield Point Fees Point Fees
July 2020 1.223% 1.164% 5.9 5.0
YTD August 2020 1.144% 1.085% 5.9 5.0
GROSS September 2020 1.060% 1.001% 5.9 5.0
YIELD October 2020 0.956% 0.897% 5.9 5.0
0.802% November 2020 0.899% 0.840% 5.9 5.0
December 2020 0.767% 0.708% 5.9 5.0
January 2021 0.694% 0.635% 5.9 5.0
February 2021 0.803% 0.744% 5.9 5.0
YTD NET March 2021 0.624% 0.565% 5.9 5.0
YIELD April 2021 0.539% 0.480% 5.9 5.0
0.752% May 2021 0.562% 0.503% 5.9 5.0
June 2021 0.598% 0.588% 1.0 5.0
(1) Revised gross and net yields based on adjustments to interest income Mission: Ensure safe and timely receipt, deposi, collection and investment of public funds.
ORANGE COUNTY TREASURER - TAX COLLECTOR
BY INVESTMENT TYPE AT MARKET VALUE - By Percentage Holdings September 30, 2022
90%
80%
70%
60%
40%
20%
10%
Orange County Investment Pool Orange County Educational Investment Pool John Wayne Airport Investment Fund Orange County Investment Pool Orange County Educational Investment Pool John Wayne Airport Investment Fund In Thousands In Thousands In Thousands
[U. S. TREASURIES 1.959,599 36.64% U.S. TREASURIES 2.299,716 37.06% U.S. TREASURIES 0.00% EU.S. GOVERNMENT AGENCIES 2,351,181 43.96% LU.S. GOVERNMENT AGENCIES 2,707,225 43.62% BU.S. GOVERNMENT AGENCIES 49,960 93.03% MONEY MARKET MUTUAL FUNDS 824,566 15.42% MONEY MARKET MUTUAL FUNDS 948,766 15.29% MONEY MARKET MUTUAL FUNDS 3,744 6.97% MUNICIPAL DEBT 178,510 3.34% MUNICIPAL DEBT 209,493 3.38% •LOCAL AGENCY INVESTMENT FUND 34,320 0.64% •LOCAL AGENCY INVESTMENT FUND 40,276 0.65% $ 5,348.176 100.00% 6.205.476 100.00% 53,704 100.00%
23523
00--M -UC-UU-274-04
0220657-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022
MARKET VALUE SUMMARY
Current Period
09/01/22 to 09/30/22
Beginning Market Value Change: 3,324,488.88
$24,227,871.60 $36,000,000
Taxable Interest 37,863.88
$30,000,000
Cash Receipts 3,870,000.00
Change in Investment Value -583,375.00 $24,000,000
$18,000,000
Ending Market Value $27,552,360.48
$12,000,000
$6,000,000
$0
Beginning Ending
MV MV
$24,227,871.60 $27,552,360.48
10 $469,700.45 100.00 $27,552,360.48 Total Market Value 469,600.00 100.00 27,548,685.00 Taxable Bonds
100.45 0.00 3,675.48 Cash & Equivalents
Annual Income Total Market Value Assets
Estimated % of Current Period
ASSET SUMMARY
September 1, 2022 to September 30, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
022057-0-04207-04
23523
11 $37,863.88 Total Current Period Income
37,863.88 Taxable Interest
Current Period
Income Received
INCOME SUMMARY
September 1, 2022 to September 30, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
0220657-00-04007-04
00--M -UC-UU -274-04
23523
$0.00 Ending Cash 09/30/2022
83,496.12 Net Money Market Activity
-3,991,360.00 Purchases
3,870,000.00 Cash Receipts
37,863.88 Taxable Interest
$0.00 Beginning Cash 09/01/2022
Cash
CASH SUMMARY
September 1, 2022 to September 30, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
002057-00-0-04
23523
23523
00--M -UC-UU -274-04
0220657-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022
ASSET DETAIL
Security Description Percent
Unrealized of Total Estimated Estimated
Shares/Face Amt Price Market Value Tax Cost Gain/Loss Portfolio Annual Income Current Yield Cash & Equivalents
Cash/Money Market
First American Government - 31846V567
Oblig Fd CIZ
#3676
3,675.480 1.0000 3,675.48 3,675.48 0.00 0.0 100.45 2.73 Total Cash/Money Market $3,675.48 $3,675.48 $0.00 0.0 $100.45 Total Cash & Equivalents $3,675.48 $3,675.48 $0.00 0.0 $100.45 Taxable Bonds
US Government Issues
1.500 02122025EAEPO
4,000,000.000 93.7160 3,748,640.00 4,188,112.71 -439,472.71 13.6 60,000.00 1.60 FHLMC MTN - 3134GV5R5
0.570 07/15/2024
1,000,000.000 93.2710 932,710.00 1,000,000.00 -67,290.00 3.4 5,700.00 0.61 FNMA - 3135G05X7
0.375 08/25/2025
8,700,000.000 89.4150 7,779,105.00 8,645,922.29 -866,817.29 28.2 32,625.00 0.42 Federal Farm Credit Bks - 3133ENVD9
2.875 04/26/2027
4,000,000.000 94.8570 3,794,280.00 3,995,360.00 -201,080.00 13.8 115,000.00 3.03 Federal Home Loan Bks - 3130AJTX7
0.720 07/21/2025
625,000.000 89.9280 562,050.00 625,000.00 -62,950.00 2.0 4,500.00 0.80 23523
20221-57-0-0400-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022 ASSET DETAIL (continued)
Security Description Percent
Unrealized of Total Estimated Estimated
Shares/Face Amt Price Market Value Tax Cost Gain/Loss Portfolio Annual Income Current Yield Federal Home Loan Bks - 3130AJTF6
0.740 07/14/2025
1,000,000.000 90.0360 900,360.00 1,000,000.00 -99,640.00 3.3 7,400.00 0.82 Federal Home Loan Bks - 3130AMFS6
0.750 06/12/2026
2,000,000.000 88.2210 1,764,420.00 2,001,415.36 -236,995.36 6.4 15,000.00 0.85 Foes m202 ks - 313048X74
4,500,000.000 91.2400 4,105,800.00 4,665,690.00 -559,890.00 14.9 84,375.00 2.05 23825 120m2L2an Bks - 3130ATBLO
4,000,000.000 99.0330 3,961,320.00 3,991,360.00 -30,040.00 14,4 145,000.00 3.66 Total US Government Issues $27,548,685.00 $30,112,860.36 -$2,564,175.36 100.0 $469,600.00 Total Taxable Bonds $27,548,685.00 $30,112,860.36 -$2,564,175.36 100.0 $469,600.00 Total Assets $27,552,360.48 $30,116,535.84 -$2,564,175.36 100.0 $469,700.45 Estimated Current Yield 1.70
ASSET DETAIL MESSAGES
Time of trade execution and trading party (if not disclosed) will be provided upon request.
Publicly traded assets are valued in accordance with market quotations or valuation methodologies from financial industry services believed by us to be reliable. Assets that are not publicly traded may be not necessarily refect prices at which assels could be Bought or sold: Values are updated based on hermai poicy and may be tupdate less frequently than statement generation, value. Values shown do 23523
20220857-00-0420-04
usbank.
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022
TRANSACTION DETAIL
Date
Posted Activity Description Cash Tax Cost
Beginning Balance 09/01/2022 $0.00 $26,208,671.96
09/01/22 Asset Income Interest Earned On 106.94
First Am Govt Ob Fd CI Z
Interest From 8/1/22 To 8/31/22
09/12/22 Asset Income THIL B DaD 1805% 9111/26 42,187.50
0.009375 USD/$1 Pv On 4,500,000 Par Value Due 9/11/22
09/16/22 Cash Receipt Cash Receipt 3,870,000.00
Recd From City Of Laguna Niguel
Received In Account Via ACH
Due 10/19/21
Transfer Of Fiunds To Custody Account
09/19/22 Purchase Purchased 4,000,000 Par Value Of -3,991,360.00 3,991,360.00 F HL B Deb 3.625% 12/08/23
Trade Date 9/16/22
Purchased Through Cantor Fitzgerald & Co.
4,000,000 Par Value At 99.784%
09/19/22 Purchase Accrued Interest Paid Accrued Interest On Purchase Of -4,430.56 F HL B Deb 3.625% 12/08/23
Income Debit 4,430.56- USD
Purchase Combined Purchases For The Period 9/1/22 - 9/30/22 OF -3,912,294.44 3,912,294.44 First Am Govt Ob Fd CIZ
Sale Combined Sales For The Period 9/ 1/22 - 9/30/22 Of 3,995,790.56 -3,995,790.56 First Am Govt Ob Fd CIZ
Ending Balance 09/30/2022 $0.00 $30,116,535.84
23523
00--M -UC-UU -274-04
0220657-00-04007-04
usbank.
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022
BOND SUMMARY
60%
50%
40%
30%
20%
10%
0%
2022 2023 2024 2025 2026 2027
Percentage of
Par Value Market Value Category
MATURITY
2022 0.00 0.00 0.00
2023 4,000,000.00 3,961,320.00 14.38
2024 1,000,000.00 932,710.00 3.39
2025 14,325,000.00 12,990, 155.00 47.16
2026 6,500,000.00 5,870,220.00 21.30
2027 4,000,000.00 3,794,280.00 13.77
Total of Category $29,825,000.00 $27,548,685.00 100.00
MOODY'S RATING
Aaa 28,825,000.00 26,615,975.00 96.61
N/A 1,000,000.00 932,710.00 3.39
Total of Category $29,825,000.00 $27,548,685.00 100.00
23523
00--M -UC-UU -274-04
0220657-00-04007-04
usbank.
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: September 1, 2022 to September 30, 2022 BOND SUMMARY (continued)
Percentage of
Par Value Market Value Category
S&P RATING
AA+ 28,825,000.00 26,615,975.00 96.61
N/A 1,000,000.00 932,710.00 3.39
Total of Category $29,825,000.00 $27,548,685.00 100.00
BOND SUMMARY MESSAGES
Data contained within this section excluded Mutual Funds, Exchange Traded Funds, and Closed-Ended Funds.
PUBLIC
AGENCY PARS
RETIREMENT
SERVICES
CITY OF LAGUNA NIGUEL Account Report for the Period
PARS Post-Employment Benefits Trust 9/1/2022 to 9/30/2022 Tamara Letourneau
City Manager
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Account Summary
Balance as of Balance as o
Source 9/1/2022 Contributions Earnings Expenses Distributions Transfers 9/30/202:
PENSION $926,739.94 $0.00 -$49,017.95 $454.94 $0.00 $0.00 $877,267.05 Totals S926,739.94 $0.00 -$49,017.95 $454.94 $0.00 $0.00 $877,267.05 Investment Selection
Source
PENSION Moderately Conservative HighMark PLUS
Investment Objective
Source
PENSION The dual goals of the Moderately Conservative Strategy are current income and moderate capital appreciation. The major portion of the assets is committed to income-producing securities. Market fluctuations should be expected.
Investment Return
Annualized Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years Plan's Inception Date PENSION - 5.29% 4.18% -14.61% 5/26/2020
Information as provided by US Bank, Truste 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 retums. Information is deemed reliable but may be subject to change Investment Return: Annualized rate of return is the retur 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, Trustec 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 18 / HIGHMARK®
CAPITAL MANAGEMENT
PARS DIVERSIFIED PORTFOLIOS
MODERATELY CONSERVATIVE Q2 2022
INVESTMENT OBJECTIVE Efficient Frontier
WHY THE PARS DIVERSIFIED
MODERATELY CONSERVATIVE PORTFOLIO? To provide current income, with Capital appreciation as a of Return) Balanced Capital Apprecialion Comprehensive Investment Solution secondary objective, The major HighMark® Capital Management, Inc.'s (HighMark) Moderate portion of the assets is (Rate
diversified investment portfolios are designed to Moderately Conservative committed to income-producing Reward
balance return expectations with risk tolerance securities. Market fluctuations Conservative
Key features include: sophisticated asset allocation
should be expected.
and optimization techniques, four layers of Risk (Standard Deviation) diversification (asset class, style, manager, and ASSET ALLOCATION — MODERATELY CONSERVATIVE PORTFOLIO security), access to rigorously screened, top tier
Strategic Range Policy Tactical
money managers, flexible investment options, and
Equity 20 - 40% 30% 29%
experienced investment management.
Fixed Income 50 - 80% 65% 66%
Rigorous Manager Due Diligence Cash 0 - 20% 5% 5%
Our manager review committee utilizes a rigorous
screening process that searches for investment ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees)
managers and styles that have not only produced HighMark Plus Composite (Active) index Plus Composite (Passive) above-average returns within acceptable risk Current Quarter* -8.10% Current Quarter* -7.28%
parameters, but have the resources and commitment
Blended Benchmark*, ** -7,44% Blended Benchmark*** -7.44% to continue to deliver these results. We have set high
Year To Date* -12.84% Year To Date* -12.25%
standards for our investment managers and funds.
This is a highly specialized, time consuming Blended Benchmark* ** -12.03% Blended Benchmark* ** -12.03% approach dedicated to one goal: competitive and 1 Year -11.85% 1 Year -10.69% consistent performance. Blended Benchmark** -10.30% Blended Benchmark** -10.30% 3 Year 1.82% 3 Year 1.86%
Flexible Investment Options Blended Benchmark** 2.07%
Blended Benchmark** 2.07%
In order to meet the unique needs of our clients, 5 Year
3.24% 5 Year 3.14%
we offer access to flexible implementation strategies: Blended Benchmark**
3.37% Blended Benchmark** 3.37%
HighMark Plus utilizes actively managed mutual
10 Year 4.32% 10 Year 4.11%
funds while Index Plus utilizes index-based
Blended Benchmark** 4.29% Blended Benchmark** 4.29%
securities, including exchange-traded funds. Both
investment options leverage HighMark's active asset * Returns less than one year are nol annualized *Breakdown for Blended Benchmark: From 10/1/2012 - Present. 15.5% S&P500 3% Russell Mid Cap. 4.5% Russell 2000, 2% MSCI EM (net), 4% MSCI EAFE (net), 49.25% Bloomberg US Agg, 14% ICE BofA 1- allocation approach. 3 Yr US Corp/Gov'i, 1.75% ICE BofA US High Yield Master il, 1% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 - 9/30/2012, the blended benchmark was 25% S&P 500; 1.5% Russell 2000,3.5% MSCIEAFE (nel). 25% ICE BofA 1-3 Year Corp/Govl, 40% Bloomberg US Agg, 5% FTSE 1 Mih US T-Bill Prior to April 2007, the blended benchmark was 30% S&P 500 5% ICE BofA 1-3Yr Corp/Gov. 40% Bloomberg US Agg. and 5% FTSE 1 Mth US T-BI Risk Management (Gross of Investment Management Fees, but Net of Embedded The portfolio is constructed to control risk through ANNUAL RETURNS Fund Fees) four layers of diversification - asset classes (cash, HighMark Plus Composite (Active) Index Plus Composite (Passive) fixed income, equity), investment styles (large cap, 2008 -15.37% 2008 -12.40% small cap, international, value, growth), managers 2009 18.71% 2009 11.92% and securities. Disciplined mutual fund selection and 2010 10.46% 2010 9.72% monitoring process helps to drive return potential 2011 1.75% 2011 3.24% while reducing portfolio risk. 2012 10.88% 2012 8.24%
2013 7.30% 2013 6.78%
2014 4.41% 2014 5.40%
2015 0.32% 2015 -0,18%
2016 4.94% 2016 5.42%
2017 9.56% 2017 8.08%
2018 -2.60% 2018 -2.33%
2019 13.73% 2019 13.53%
2020 10.76% 2020 9.74%
2021 5.15% 2021 5.33%
PORTFOLIO FACTS
HighMarkg Plus (Active) Index Plus (Passive)
Composite Inception Date 08/2004 Composite Inception Date 05/2005 No of Holdings in Portfolio 20 No of Holdings in Portfolio 13
HOLDINGS
HIGHMARK CAPITAL MANAGEMENT
HighMark Plus (Active) Index Plus (Passive)
350 California Street
Columbia Contrarian Core 13 iShares Core S&P 500 ETF
Suite 1600
Vanguard Growth & Income Adm iShares S&P 500 Value ETF
San Francisco, CA 94104
Dodge & Cox Stock Fund iShares S&P 500 Growth ETF 800-582-4734 iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF
Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - 1 iShares Russell 2000 Value ETF
ABOUT THE ADVISER
iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF HighMark® Capital Management, Inc. (HighMark) has
Vanguard Real Estate ETF iShares Core MSCI EAFE ETF over 100 years (including predecessor organizations) of Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF institutional money management experience with $8,8 billion in assets under management and $8.8 billion in
Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm assets under advisement*. HighMark has a long term DFA Large Cap International Portfolio iShares Core U.S. Aggregate disciplined approach to money management and Dodge & Cox International Stock Vanguard High-Yield Corp Adm currently manages assets for a wide array of clients.
MFS International Growth - R6 First American Government Obligations Z ABOUT THE PORTFOLIO MANAGEMENT TEAM Hartford Schroders Emerging Markets Eq Andrew Brown, CFA Vanguard Short-Term Invest-Grade Adm Senior Portfolio Manager Investment Experience: since 1994
PIMCO High Yield Instl HighMark Tenure: since 1997
PIMCO Total Return Fund - Inst Holdings are subject to change at the Education: MBA, University of Southern California, discretion of the investment manager. BA. University of Southern California PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - 1 Salvatore "Tory" Milazzo III, CFA® First American Government Obligations Z Senior Portfolio Manager Investment Experience since 2004
HighMark Tenure: since 2014
STYLE Education: BA. Colgate University
Large Cap Value Real Estate 1.1%
38% J. Keith Stribling, CFA®
Cash 5 4% _ Small Cap 4 4%
Senior Portfolio Manager
Investment Experience: since 1985
Intl Stocks 5 1% HighMark Tenure since 1995
Education: BA, Stetson University
Mid Cap 2,7%
Christiane Tsuda
Large Cap Growth Senior Portfolio Manager
3.3%
Investment Experience: since 1987
HighMark Tenure: since 2010
Large Cap Core Interm-Term Bond
8.2% Education: BA, International Christian University. Tokyo 515%
Anne Wimmer, CFA®
Senior Portfolio Manager
Short-Term Bond _ Investment Experience: since 1987
13 5% HighMark Tenure: since 2007
Education: BA, University of California, Santa Barbara
High Yield 1.0%
The performance records shown represent a size-weighted composile of tax exempt accounts that meet the following criteria. Accounts are managed by HighMark with full investment authority according to the PARS Moderately Conservative active and passive objectives
The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a siiding scale. US Bank Asset Allocation Committee pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisor Number of Members: 16 agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incuired in the management of the portfolio, will reduce the portfolio's returns. Assuming an investmen: for five years. Average Years of Experience: 27 retum, and an annual sub-advisory fee rate of 0.38% deducted from the assets at market at the end of each vear, a $10 Average Tenure (Years) 15 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees) Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's retur will be reduced by the advisory fees and other expenses it Manager Review Group Number of Members. 7
not reflect the deduction of investment advisory fees, custody fees, or taxes but do refect the deduction of trading Average Years of Experience: 22 expenses, Returns are calculated based on trade-date accounting Average Tenure (Years): 10
Biended benchmarks represent HichMark's stratecic allocations between equity, fixed income and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other eamings. An investor cannot invest directiy in an index. The unmanaged S&P 500 index is representative of the performance of large companies in the US. stock market. The MSC EAFE index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSC Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Russell 2000 Index
*Assets under management ("AUM") include assets for which index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S: domestic market Wilshire REIT index measures US publicly traded Real Estate Investment Trusts The unmanacer HighMark provides continuous and regular supervisory and Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The IC management services. Assets under advisement ("AUA") OfA 1-3 Year US. Corporate & Government Index tracks the bond performance of the ICE BofA US. Corporate a overnment Index, with a remaining term to final matunty less than 3 years The unmanaged FTSE 1-Month U.S include assets for which HighMark provides certain investment Treasury Bill Index tracks the vield of the f-month US, Treasury Bill advisory services (including, but not limited to, investment HighMark Capital Management. Inc research and strategies) for client assets of its parent company. and nonprofit organizations, public agencies, and public and private retirement plans. MUB. MUFG Union Bank, N.A Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does nol quarantee future results. Individual account management and construction will vary depending uns each client's investment needs and obiectives. investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 20