CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Tamara S. Letourneau, City Manager
DATE: April 16, 2024
SUBJECT: Investment Report as of February 29, 2024
RECOMMENDATION
Staff recommends that the City Council receive and file the City of Laguna Niguel Investment Report as of February 29, 2024.
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 Goal #2, fiscal sustainability, in the City's Strategic Plan.
ANALYSIS
The Federal Open Market Committee (FOMC) elected to leave the Federal Funds rate unchanged at 5.25%-5.50% at their March 2024 meeting. This marked the fifth straight meeting that the Committee did not adjust the Fed Funds rate. The FOMC stated that "it will not be appropriate to reduce the federal funds target range until inflation moves sustainably toward 2%." The focus for the market continues to be on the timing and the extent of rate cuts in the calendar year 2024. The latest "dot plot" from the Committee, shown on the next page, still shows that the majority of the FOMC members anticipate three rate cuts this year, with the average projection being a Fed Funds rate of 4.60% by the end of the year.
Yearend Yearend Yearend
2024 2025 2026 Longer Run
March 20,
2024 Fed Median: Median: Median: Median:
Funds Target 4.6% 3.9% 3.1% 2.6%
6.0%
5.25-5.50% = 5.5%
..
5.0%
- 4.5%
4.0%
.. 3.5%
.:. 3.0%
..... 2.5%
2.0%
= 1.5%
-
1.0%
0.5%
0.0%
Source, US Federal Reserve Summary of Economic Projections, March 20. 2024 Federal Reserve Chair Jerome Powell said that the latest inflation report released on March 19th was "along the lines of what we want to see", and that inflation is on a "sometimes bumpy path" toward the central bank's long-term goal of 2%. The year-over- year change in the "core" Personal Consumption Expenditures Index was 2.8%, marking the lowest measurement since January 2020 (see image below). Because the job market and the economy are still strong, he indicated the Committee won't be in a hurry to cut interest rates.
PCE INFLATION LOGS LOWEST ANNUAL
INCREASE SINCE MARCH '21
le Personal Consumption Expenditures (PCE) Price Index excluding food a ergy and the Consumer Price Index (CPI) excluding food and energy, sin 1/1/2020.
PERCENT CHANGE FROM A YEAR AGO
6%
CORE CPI
CORE PCE
230
02020 2021 2022 2023 2024
SOURCE BUREAU OF LABOR STATISTICS • SHADED AREAS INDICATE US RECESSIONS
The City continues to be in a strong position given the current state of the economy and interest rates. Staff anticipates receiving approximately $10 million in property taxes over the next few months, and those funds can be invested in high yield investments that will provide generous returns for the next several fiscal years.
The following table compares the portfolio balance as of February 2024 to January 2024.
Portfolio Balance January 2024 February 2024 Difference Balance $66,880,342 $64,888,241 ($1,992, 101)
• Over the past month, the City's total cash and investments experienced a net decrease of $1,992, 101. It is not unusual for the City's cash balance to deplete during the months when property taxes are not received, as property taxes represent over 50% of annual General Fund Revenues for the City. • The percentage of pooled investments increased to 0.28%. 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 and money market, increased to 801 days. The average weighted maturity of City investments, including investment pools and money market, 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 4.012% to 4.122%. The net yield of OCIP increased from 4.367% to 4.518%. The net yield for the First American money market funds in the City's custodian account decreased to 5. 190%. This is the second straight month the yield has decreased for the money market funds. As the FOMC has not changed rates since July 2023, the Feds Fund rate has been relatively flat, however, the rates for the pooled funds are still increasing as those funds are able to purchase and reinvest lower earning investments that mature at the current higher earnings levels. Staff does expect the pooled yields to continue to increase in the short term. The money market funds will react quickly upon a reduction in the Fed Funds rate.
Average Monthly Yield Comparison - 02/2019 through 02/2024
5.00%
5.00%
4.00% - S8P GIP
3.00% ---- Fed Funds
200%
1.00%
0.00%
19 S&P GIP 5.550%
2/20 5/2019 8/2019 11/2019 2/2020 5/2020 82020 11/2020 2/2021 5/2021 8/2021 11/2021 2/2022 5/2022 B/2022 11/2022 2/2023 3/2023 8/2023 11/2023 2/2024 Fed Funds 5.310%
• The average weighted yield of City investments, including investment pools and money market, decreased from 3.173% to 3.107%. This decrease is primarily due to a reduction in the money market funds held due to the monthly spend down noted above. The money market funds continue to be the City's strongest investment type this year. The City's average weighted yield of City investments, including investment pools and money market, is calculated by taking the total investment earnings divided by the total portfolio at cost, and includes cash in the sweep investments.
• 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
3.107% 4.260% 5.010% 5.300% 4.518% 4.122%
The monthly Investment Report as of February 29, 2024, is attached.
ALTERNATIVES CONSIDERED
Report of Februan 29, 200t to receive and file the City of Laguna Niguel Investment
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.
Jamass SAtonneau Tur An
Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
Attachments:
A. Monthly Investment Report as of February 29, 2024
ATTACHMENT A
Investment Report as of February 29, 2024
CITY OF LAGUNA NIGUEL
INVESTMENT REPORT
as of
February 29, 2024
Tamara S. Letourneau
CITY MANAGER
Trevor Agrelius
FINANCE DIRECTOR
April 16, 2024
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 6-9
US Bank Statement 10-25
PARS Statement 26
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 February 29, 2024, the City was in compliance with the Investment Policy adopted at the August 1, 2023, 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.
Jenara Stouseau Im An
Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
City of Laguna Niguel
Summary of Cash and Investments
2/29/2024
Settlement Maturity Coupon Purchased Percent of Max Allowed Per Market Description Date Date Rate Yield Cost Portfolio Investment Policy Value Petty Cash/Change Drawers $ 2,500.00 0.00% N/A $ 2,500.00 US Bank Checking & Investment Accounts 4,919% 4,289,080.16 6.61% N/A 4,289,080.16 US Bank Money Market 5.190% 5,449,966.28 8.40% 10.00% 5,449,966.28 Local Agency Investment Fund 4.122% 101,912.88 0.16% >$40 million or 55% 101,250.45 Orange County Investment Pool 4.518% 77,431,79 0.12% >$40 million or 55% 77,431.79 US Treasury Note: 22.46% N/A
912828YH7 12/22/2023 9/30/2024 1.500% 4.779% 1,463,062.50 1,468,065.00 91282CFX4 11/10/2023 11/30/2024 4.500% 5.206% 992,812.50 994,610.00 9128283P3 12/22/2023 12/31/2024 2.250% 4,635% 1,464,600.00 1,465,260.00 91282CHD6 2/26/2024 5/31/2025 4.250% 4.810% 1,489,755.00 1,487,700.00 912810EV6 6/22/2023 8/15/2025 6.875% 4.311% 2,104,000.00 2,062,260.00 91282CJK8 11/30/2023 11/15/2026 4.625% 4.310% 1,008,640.00 1,003,750.00 9128284V9 12/22/2023 8/15/2028 2.875% 3.791% 1,441,875.00 1,413,630.00 91282CJA0 11/10/2023 9/30/2028 4.625% 4.500% 1,005,380.00 1,013,560.00 91282CDL2 12/22/2023 11/30/2028 1.500% 3,780% 1,571,710.00 1,542,800.00 91282CJN2 12/8/2023 11/30/20284.375% 4.020% 2,031,720.00 2,008,440.00 Certificates of Deposit: 6.55%
949764GT5 10/24/2023 4/24/2025 5.500% 5.500% 250,000.00 251,505.00 83407DBPO 10/30/2023 4/30/2025 5.450% 5.450% 250,000.00 251,220.00 15140RCY3 7/25/2023 7/26/2027 4.700% 4.700% 250,000.00 254,155.00 8562834C7 7/31/2023 8/2/2027 4.600% 4,600% 250,000.00 253,405.00 15118RM38 12/8/2023 12/8/2027 4.600% 4,600% 250,000.00 254,172.50 33610RVD2 12/12/2023 12/10/2027 4.550% 4,550% 250,000.00 253,662.50 05580AY24 7/18/2023 4/14/2028 4.400% 4.408% 249,875.00 252,177.50 2546733V6 7/18/2023 4/17/2028 4.400% 4.408% 249,875.00 252,862.50 20033A4J2 7/26/2023 7/26/2028 4450% 4.450% 250,000.00 253,760.00 062119CD2 7/28/2023 7/28/2028 4.500% 4.500% 250,000.00 254,270.00 02589AF64 11/1/2023 11/1/2028 5.000% 5.000% 250,000.00 259,760.00 87165E3V7 11/3/2023 11/3/2028 5.000% 5.000% 250,000.00 259,772.50 795451DH3 12/13/2023 12/13/2028 4.400% 4.400% 250,000.00 253,557.50 58404DTX9 12/22/2023 12/22/2028 4.300% 4.300% 250,000.00 252,657.50 32110YK46 12/28/2023 12/28/2028 4300% 4.300% 250,000.00 252,675.00 848608FB6 1/31/2024 1/31/2029 3.950% 3.950% 250,000.00 248,845.00 903572GO2 2/14/2024 2/14/2029 3.950% 3.950% 250,000.00 248,887.50 Federal Home Loan Mortgage Corporation: 8.00% 25.00%
3134GV5R5 7/15/2020 7/15/2024 0.570% 0.570% 1,000,000.00 981,620.00 3137EAEPO 1/29/2021 2/12/2025 1.500% 0.337% 4,188,112.71 3,867,320.00 Federal National Mortgage Association: 13.32% 25.00%
3135G05X7 1/29/2021 8/25/2025 0.375% 0.519% 8,645,922.29 8,151,465.00 Federal Farm Credit Banks: 16.96% 25,00%
3133EPYW9 10/20/2023 10/20/2025 5,125% 5.178% 999,000.00 1,004,910.00 3133ENVD9 4/26/2022 4/26/2027 2.875% 2.900% 3,995,360.00 3,815,840.00 3133EPH81 12/8/2023 10/4/2027 4.500% 4.150% 2,024,580.00 2,009,280.00 3133EPW84 1/30/2024 1/18/2029 3.875% 3.930% 2,493,800.00 2,455,175.00 3133EP3В9 2/26/2024 2/13/2029 4,125% 4.200% 1,494,975.00 1,488,960.00 Federal Home Loan Banks: 17.42% 25.00%
3130AJTF6 7/14/2020 7/14/2025 0.740% 0.740% 1,000,000.00 946,600.00 3130AJTX7 7/21/2020 7/21/2025 0.720% 0.720% 625,000.00 590,906.25 3130AMFS6 8/12/2021 6/12/2026 0.750% 0.735% 2,001,415.36 1,835,440.00 3130AWLY4 7/25/2023 6/13/2025 5.125% 4.900% 1,004,010.00 1,003,200.00 3130A8XY4 10/18/2021 9/11/2026 1.875% 1.100% 4,665,690.00 4,216,995.00 3130AWC24 6/23/2023 6/9/2028 4.000% 3.930% 2,006,180.00 1,976,120.00
55.70% 60.00%
$ 64,388,241.47 100.00% $ 65,032,079.93
Restricted for Specific Use
PARS 115 Pension Trust $ 2,000,000.00 20.00% $ 2,118,475.31 Average weighted maturity of Investments, excluding Investment 946 days Average weighted maturity of Investments, including Investment 801 days Average weighted yield of Investments, excluding Investment Poc 2.755% Average weighted yield of Investments, including Investment Poo 3.107% * 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 3/4/24, 9:24 AM LAIF Regular Monthly Statement
California State Treasurer
Fiona Ma, CPA
March 04, 2024
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001 LAIF Home
PMIA Average Monthly.
(916) 653-3001
Yields
CITY OF LAGUNA NIGUEL
TREASURER
30111 CROWN VALLEY PARKWAY
LAGUNA NIGUEL, CA 92677
Tran Type Definitions
Account Number: 98-30-408
February 2024 Statement
Account Summary
Total Deposit: 0.00 Beginning Balance: 101,912.88
Total Withdrawal: 0.00 Ending Balance: 101,912.88
3 https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 PMIA/LAIF Performance Report
anns
as of 3/06/24
Quarterly Performance PMIA Average Monthly
Quarter Ended 12/31/23 Effective Yields(2)
LAIF Apportionment Rate(2) 4.00 February 4.122
LAIF Earnings Ratio?). 0.00010932476863589 January 4.012 LAIF Administrative Cost)* 0.29 December 3.929
LAIF Fair Value Factor. 0.993543131 November 3.843
PMIA Daily). 3.96 October 3.670
PMIA Quarter to Date! 3.81 September 3.534
PMIA Average Life"). 230
Pooled Money Investment Account
Monthly Portfolio Composition (1)
1/31/24
$165.8 billion
Corporate
Commercial Bonds
Paper 0.37%
Time
5.91% Loans
Deposits
0.20%
3.13%
Certificates of
Deposit/Bank Notes
8.98%
Treasuries
58.88%
Agencies.
22.53%
Chart does not include $2,112,000.00 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 Votes: The apportionment rate includes interest earned on the CaPERS Supplemental Pension Payment pursuant to Government Code 2082 c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides th ministrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
Source:
12) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
State of California
PMIA Pooled Money Investment Account
Market Valuation
2/29/2024
Carrying Cost Plus
Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury:
Bills $ 26,924,803,816.81 $ 27.291.651,500.00 NA
Notes 63,298,748,638.50 $ 62,447,680,500.00 $ 388,251,924.50 Federal Agency:
SBA $ 267,820,971.68 267,426,730.80 1,297,607.73
MBS-REMICS $ 2,059,624.46 3913,050-24 8 9,008.19
Debentures 8,383,258,772.30 $ 8,289,911,050.00 72,399,903.20 Debentures FR $
070A CA CA 78791,500.00 5,686,111.50
Debentures CL 800,000,000.00 $
Discount Notes 28.871,448,333.25 $ 29,262,665,000.00 NA Supranational Debentures 2,819,489,700.14 $ 2,780,695,500.00 22,733,834.60 Supranational Debentures FR $ - $
CDs and YCDs FR $ $ $
Bank Notes
CDs and YCDs 16,500,000,000.00 $ 16,500,095,058.09 $ 239,387,680.55 Commercial Paper $ 10,484,704,916.64 10,621,501,579.94 NA Corporate:
Bonds FR $ 628.469,070.00
Bonds $ 645,582.722.40 $ 4.714,625.21
Repurchase Agreements $
Reverse Repurchase $ - $
Time Deposits 4,959,000,000.00 4,959,000,000.00 NA
PMIA & GF Loans $ 325,717,000.00 $ 325,717,000.00 NA
TOTAL $ 164,282.634,496.18 $ 164.164.739.952.07 S 734,480,695.48 Fair Value Including Accrued Interest $ 164,899,220,647.55 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). 5 COUNTY OF ORANGE
OFFICE OF THE TREASURER-TAX COLLECTOR CALCE COUNT
8 Shari L. Freidenrich, CPA, CCT, CPFA, ACPFIM
P. O. BOX 4515
SANTA ANA, CA 92702-4515 KER-TAX COM
octreasurer.com/publicfunds
February 29, 2024
CITY OF LAGUNA NIGUEL
Fund Number : 9LQ
FEBRUARY 2024 STATEMENT
Transactions
Transaction Transaction Description Authorized Signer Amount Date
02/01/2024 January 2024 Investment Admin Fee $ (3.29)
02/22/2024 lovember 2023 Interest Pai $ 273.66
Summary
Total Deposit: $ 273.66 Beginning Balance: $ 77,161.42
Total Withdrawal: $ (3.29) Ending Balance: $ 77,431.79
6 ORANGE COUNTY TREASURER-TAX COLLECTOR
ORANGE COUNTY INVESTMENT FUND (OCIF)
ORANGE COUNTY TREASURER'S POOL (OCTP), SPECIFIC INVESTMENT AND BOND PROCEEDS ACCOUNTS (* FOR THE MONTH ENDED: FEBRUARY 29, 2024
OCT INVESTMENT STATIS
Duration Daily Yield as MONTHLY Current NAV
DESCRIPTION CURRENT BALANCES of 02/29/2024 Gross Yield
MARKET Value $ 15,348,609,325
Orange County Treasurer's Pool (OCTP) COST (Capital) $ 15,285,754,125 0.94 4.727% 4.518% 1.0007 MONTHLY AVG Balance $ 15,239,484,468
BOOK Value S 15,337,378,823
SPECIFIC INVESTMENT ACCOU TS STATISTI
Fund MONTHLY Market Value Book Value Current NAV
DESCRIPTION CURRENT BALANCE Gross Yield
Pension Prepayment-CEO (PP-CEO) MARKET Value $ 554,412,596 PP-CEO 4.761% $ 521,560,938 522,722,030 0.9978 Fountain Valley School District Fund 40 (FVSD) COST (Capital) S 532,583,784 FVSD 2.755% 32,851,658 33,846,186 0.9706 ONTHLY AVG Balance 532,595,037
556,568,216
BOND PROCEEDS ACCOUNT STATISTICS 12
DESCRIPTION CURRENT BALANCE Fund MONTHLY Market Value Book Value Current NAV Gross Yield
CCCD Series 2017E Bonds (CCCD) MARKET Value $ 22,331,503 CCCD 3.524% $ 22,331,503 23,772,310 0.9394 COST (Capital) $ 24,665,775
MONTHLY AVG Balance $ 24,623,676
BOOK Value S 23,772,310
INVESTMENTS & CASH YEAR-TO-DATE EARNINGS
OCTP 15,285,754,125 OCTP 410,666,626
OCIP 176,690,341
OCEIP 233,976,285
Specific Investment Accounts 532,583,784 Specific Investment Accounts 15,896,138 Bond Proceeds Account 24,865,775 Bond Proceeds Account 531,179 Cash 7,892,428
Total Assets in the County Treasury 15,850,896,112 Total OCIF Year-To-Date Earnings 427.093,943
KEY POOL ST
INTEREST RATE YIELD WEIGHTED AVERAGE MATURITY (WAM)
OCTP - YTD NET YIELD 4.143% OCTP 358
90-DAY T-BILL YIELD - YTD AVERAGE 5.412% LGIP (Standard & Poors) 41 (1) Reported in compliance with Government Code Section 53646 (b)(1), with 2024 IPS requiring at least quarterly reporting per Government Code Section 53646 (d). (2) Due to the longer term nature of PP-CEO, FVSD, and CCCD, they continue to stay below book values. The PP-CEO, FVSD, and CCCD have sufficient liquidity to meet projected cash flow needs. 5 ORANGE COUNTY TREASURER-TAX COLLECTOR
SUMMARY OF INVESTMENT DATA
INVESTMENT TRENDS
JANUARY 2024 INCREASE NET CHANGE FEBRUARY 2023 INCREASE NET CHANGE% FEBRUARY 2024
(DECREASE) % (DECREASE)
Orange County Investment Pool (OCIP)
End Of Month Market Value' $ 6,789,751,281 $ 6,623,351,122 $ 166,400,159 2.51% $6,231,723,672 $ 558,027,609 8.95% End Of Month Book Value' $ 6,784,783,253 $ 6,603,305,276 181,477,977 2.75% $6,326,347,517 $ 458,435,736 7.25% Monthly Average Balance 6,582,747,936 $ 6,550,441,916 32,306,020 0.49% $6,060,966,431 $ 521,781,505 8.61% Year-To-Date Average Balance 6,270,000,616 $ 6,225,322,428 44,678,188 0.72% $6,059,552,728 $ 210,447,888 3.47% Monthly Accrued Earnings? $ 23,752,669 $ 24,168,148 (415,479) -1.72% $14,596,699 $ 9,155,970 62.73% Orange County Educational Investment Pool (OCEIP)
End Of Month Market Value!? $ 8,558,858,044 $ 8,972,744,888 $ (413,886,844) 4.61% $7,673,600,099 $ 885,257,945 11.54% End Of Month Book Value' $ 8,552,595,570 $ 8,945,588,505 $ (392,992,935) 4.39% $7,790,940,072 $ 761,655,498 9.78% Monthly Average Balance? $ 8,656,736,532 $ 9,051,820,071 (395,083,539) -4.36% $7,820,686,765 $ 836,049,767 10.69% Year-To-Date Average Balance? $ 8,261,346,016 $ 8,204,861,656 $ 56,484,360 0.69% $6,881,466,753 $ 1,379,879,263 20.05% Monthly Accrued Earnings? $ 31,507,806 $ 33,695,942 $ (2,188,136) -6.49% $18,840,351 $ 12,667,455 67.24% Orange County Treasurer's Pool (OCTP)
Monthly Net Yield? 4.498% 4.276% 0.222% 5.20% 3.085% 1.413% 45.81% Year-To-Date Net Yield' 4.143% 4.093% 0.050% 1.23% 2.039% 2.104% 103.19% Annual Estimated Gross Yield* 4.050% 4.050% 0.000% 0.00% 2.615% 1.435% 54.88% Weighted Average Maturity (WAM) 358 333 25 7.51% 198 160 80.81% Market values provided by Bloomberg and Northern Tr
The OCEIP End of Month Market Values, Monthly Average Balance and Year-To- Date Average Balance are higher than the prior year primarily due to an increase In property assessed values of 6.41% in FY 23-2 3 The OCIP and OCEIP Monthly Accrued Earnings, OCTP Monthly Net Yield and Year-To-Date Net Yield are higher than prior year due to higher interest rates with the FOMC raising short-term rates by 3.75% since July 1, 2022, and reinvestment yields that are higher than the * The OCT NAM sier natos it a due to anger per yur ase. onlined a markets no in a mage in rates a re a meing a aro 0,2 or elouary 20231 reported at the actual anual gross yields for FY 2-23. 8 6
ORANGE COUNTY TREASURER - TAX COLLECTOR
OCTP INVESTMENT TYPE AND CREDIT QUALITY BY MARKET VALUE PERCENT February 29, 2024
Investment Type Credit Quality
0.01% 0.01%
100% 3.82% 100%
90% 90%
23.64%
80% 80%
70% 70%
60% 60%
50% 50% 99.99%
40% • 40%
72.53%
30% 30%
20% 20%
10% 10%
0% 0%
In Thousands % InThousands %
U.S. GOVERNMENT AGENCIES $ 11,132,056 72.53% I US GOVERNMENT $ 15,347,247 99.99% U. S. TREASURIES 3,628,668 23.64% NR 1,362 0.01%
MONEY MARKET MUTUAL FUNDS 586,523 3.82% $ 15,348.609,325 100.00% LOCAL AGENCY INVESTMENT FUND 1,362 0.01%
$ 15.348,609 100.00%
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ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
MARKET VALUE SUMMARY
Current Perioc
2/01/24 to 02/29/2
Change: -189,422.49
Beginning Market Value $58,751,240.02 $70,000,000
Taxable Interest 180,571.01 $60,000,000
Short Term Gains/Losses 40,925.00 $50,000,000
Change in Investment Value -410,918.50 $40,000,000
$58,561,817.53 $30,000,000
Ending Market Value
$20,000,000
$10,000,000
$0
Beginning Ending
MV MV
$58,751,240.02 $58,561,817.53
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ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
ASSET SUMMARY
Surrent Perio % of Estimated
Assets Market Valur Total Annual Income
Cash & Equiv
$5,449,966.28
Cash & Equivalents 5,449,966.28 9.30 282,732.37
Taxable Bonds 53,111,851.25 90.70 1,502,850.00
Total Market Value $58,561,817.53 100.00 $1,785,582.37
Taxable Bonds
$53,111,851.25
Fixed Income Summary
Corporate Issues
$4,307,945.00
US Government Issues
$48.803.906.25
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CITY OF LAGUNA NIGUEL Page 3 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
INCOME SUMMARY
Income Received
Current Period
Taxable Interest 180,571.01
Total Current Period Income $180,571.01
12 19654
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CITY OF LAGUNA NIGUEL Page 4 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
CASH SUMMARY
Cash
Beginning Cash 02/01/2024 $0.00
Taxable Interest 180,571.01
Purchases -3,234,730.00
Sales 2,500,000.00
Net Money Market Activity 554,158.99
Ending Cash 02/29/2024 $0.00
13 19654
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CITY OF LAGUNA NIGUEL Page 5 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
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 Treasury Oblig - 31846V542
Fd CIZ
#3678
5,449,966.280 1.0000 5,449,966.28 5,449,966.28 0.00 9.3 282,732.37 5.19 Total Cash/Money Market $5,449,966.28 $5,449,966.28 $0.00 9.3 $282,732.37 Total Cash & Equivalents $5,449,966.28 $5,449,966.28 $0.00 9.3 $282,732.37 Taxable Bonds
US Government Issues
F HLMC - 3137EAEP0
1.500 02/12/2025
4,000,000.000 96.6830 3,867,320.00 4,188,112.71 -320,792.71 6.6 60,000.00 1.55 FHLMC MTN - 3134GV5R5
0.570 07/15/2024
1,000,000.000 98.1620 981,620.00 1,000,000.00 -18,380.00 1.7 5,700.00 0.58 FN MA - 3135G05X7
0.375 08/25/2025
8,700,000.000 93.6950 8,151,465.00 8,645,922.29 -494,457.29 13.9 32,625.00 0.40 Federal Farm Credit Bks - 3133ENVD9
2.875 04/26/2027
4,000,000.000 95.3960 3,815,840.00 3,995,360.00 -179,520.00 6.5 115,000.00 3.01 Federal Farm Credit Bks - 3133EPW84
3.875 01/18/2029
2,500,000.000 98.2070 2,455,175.00 2,493,800.00 -38,625.00 4.2 96,875.00 3.95 14 19654
202200040-04
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CITY OF LAGUNA NIGUEL Page 6 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 ASSET DETAIL (continued)
Security Description Percent
Unrealized of Total Estimate Estimated
Shares/Face Amt Price Market Value Tax Cost Gain/Loss Portfolio innual Incom Current Yield Federal Farm Credit Bks - 3133EP3B9
4.125 02/13/2028
1,500,000.000 99.2640 1,488,960.00 1,494,975.00 -6,015.00 2.5 61,875.00 4.16 Federal Farm Credit Bks - 3133ЕPH8*
4.500 10/04/2027
2,000,000.000 100.4640 2,009,280.00 2,024,580.00 -15,300.00 3.4 90,000.00 4.48 Federal Farm Credit Bks - 3133EPYW9
5.125 10/20/2025
1,000,000.000 100.4910 1,004,910.00 999,000.00 5,910.00 1.7 51,250.00 5.10 Federal Home Loan Bks - 3130AJTX7
0.720 07/21/2025
625,000.000 94.5450 590,906.25 625,000.00 -34,093.75 1.0 4,500.00 0.76 Federal Home Loan Bks - 3130AJTF6
0.740 07/14/2025
1,000,000.000 94.6600 946,600.00 1,000,000.00 -53,400.00 1.6 7,400.00 0.78 Federal Home Loan Bks - 3130AMFS6
0.750 06/12/2026
2,000,000.000 91.7720 1,835,440.00 2,001,415.36 -165,975.36 3.1 15,000.00 0.82 Federal Home Loan Bks - 3130A8XY4
1.875 09/11/2026
4,500,000.000 93.7110 4,216,995.00 4,665,690.00 -448,695.00 7.2 84,375.00 2.00 Federal Home Loan Bks - 3130AWC24
4.000 06/09/2028
2,000,000.000 98.8060 1,976,120.00 2,006,180.00 -30,060.00 3.4 80,000.00 4.05 Federal Home Loan Bks - 3130AWLY4
5.125 06/13/2025
1,000,000.000 100.3200 1,003,200.00 1,004,010.00 810.00 1.7 51,250.00 5.11 U S Treasury Bond - 912810EV6
6.875 08/15/2025
2,000,000.000 103.1130 2,062,260.00 2,104,000.00 -41,740.00 3.5 137,500.00 6.67 15 19654
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CITY OF LAGUNA NIGUEL Page 7 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 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 U S Treasury Note - 912828YH7
1.500 09/30/2024
1,500,000.000 97.8710 1,468,065.00 1,463,062.50 5,002.50 2.5 22,500.00 1.53 U S Treasury Note - 91282CDL2
1.500 11/30/2028
1,750,000.000 88.1600 1,542,800.00 1,571,710.00 -28,910.00 2.6 26,250.00 1.70 U S Treasury Note - 9128283P3
2.250 12/31/2024
1,500,000.000 97.6840 1,465,260.00 1,464,600.00 660.00 2.5 33,750.00 2.30 US Treasury Note - 9128284V9
2.875 08/15/2028
1,500,000.000 94.2420 1,413,630.00 1,441,875.00 -28,245.00 2.4 43,125.00 3.05 U S Treasury Note - 91282CHD6
4.250 05/31/2025
1,500,000.000 99.1800 1,487,700.00 1,489,755.00 -2,055.00 2.5 63,750.00 4.28 U S Treasury Note - 91282CJN2
4.375 11/30/2028
2,000,000.000 100.4220 2,008,440.00 2,031,720.00 -23,280.00 3.4 87,500.00 4.36 U S Treasury Note - 91282CFX4
4.500 11/30/2024
1,000,000.000 99.4610 994,610.00 992,812.50 1,797.50 1.7 45,000.00 4.52 U S Treasury Note - 91282CJA0
4.625 09/30/2028
1,000,000.000 101.3560 1,013,560.00 1,005,380.00 8,180.00 1.7 46,250.00 4.56 U S Treasury Note - 91282CJK8
4.625 11/15/2026
1,000,000.000 100.3750 1,003,750.00 1,008,640.00 -4,890.00 1.7 46,250.00 4.61 Total US Government Issues $48,803,906.25 $50,717,600.36 -$1,913,694.11 83.3 $1,307,725.00 16 19654
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CITY OF LAGUNA NIGUEL Page 8 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 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 Corporate Issues
Cmerican Express Nat BK 02589AF64
5.000 11/01/2028
250,000.000 103.9040 259,760.00 250,000.00 9,760.00 0.4 12,500.00 4.81 Cok Five Nine Oconomowo Wis - 0619CD2
4.500 07/28/2028
250,000.000 101.7080 254,270.00 250,000.00 4,270.00 0.4 11,250.00 4.42 SY BK North Amer Sall Lake Cily 0 5580AY24
4.400 04/14/2028
250,000.000 101.1110 252,777.50 249,875.00 2,902.50 0.4 11,000.00 4.35 Celtic Bk Salt Lake City Utah - 15118RM38
4.600 12/08/2027
250,000.000 101.6690 254,172.50 250,000.00 4,172.50 0.4 11,500.00 4.52 Centier BK Whitting ind - 15140RCY3
4.700 07/26/2027
250,000.000 101.6620 254,155.00 250,000.00 4,155.00 0.4 11,750.00 4.62 Comenity Cap Bk Draper - 20033A.2
4.450 07/26/2028
250,000.000 101.5040 253,760.00 250,000.00 3,760.00 0.4 11,125.00 4.38 C cover BK Greenwood Del - 2546733V6
4.400 04/17/2028
250,000.000 101.1450 252,862.50 249,875.00 2,987.50 0.4 11,000.00 4.35 First Natl Bk Amer East Lans - 32110YK46
CD
4.300 12/28/2028
250,000.000 101.0700 252,675.00 250,000.00 2,675.00 0.4 10,750.00 4.25 19654
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CITY OF LAGUNA NIGUEL Page 9 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 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 Er st Premier Bk Sioux Falls - 33610RVD2
4.550 12/10/2027
250,000.000 101.4650 253,662.50 250,000.00 3,662.50 0.4 11,375.00 4.48 C dalion Bk Utah - 58404DTX9
4.300 12/22/2028
250,000.000 101.0630 252,657.50 250,000.00 2,657.50 0.4 10,750.00 4.25 Sallie Mae Bk Salt Lake City - 795451DH3
4.400 12/13/2028
250,000.000 101.4230 253,557.50 250,000.00 3,557.50 0.4 11,000.00 4.34 Sofi Bk Natl Assn Cottonwood H - 83407DBP0
CD
5.450 04/30/2025
250,000.000 100.4880 251,220.00 250,000.00 1,220.00 0.4 13,625.00 5.42 Spritbank Tulsa Okia - 848608FB6
3.950 01/31/2029
250,000.000 99.5380 248,845.00 250,000.00 -1,155.00 0.4 9,875.00 3.97 State Bk India Chicago III - 8562834C7
4.600 08/02/2027
250.000.000 101.3620 253,405.00 250,000.00 3,405.00 0.4 11,500.00 4.54 Synchrony Bank CD - 87165E3V7
CD
5.000 11/03/2028
250,000.000 103.9090 259,772.50 250,000.00 9,772.50 0.4 12,500.00 4.81 Uinta Bk Mtn View - 903572GQ2
CD
3.950 02/14/2029
250,000.000 99.5550 248,887.50 250,000.00 -1,112.50 0.4 9,875.00 3.97 18 19654
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CITY OF LAGUNA NIGUEL Page 10 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 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 Wells Fargo Bank Natl Assn - 949764GT5
5.500 04/24/2025
250,000.000 100.6020 251,505.00 250,000.00 1,505.00 0.4 13,750.00 5.47 Total Corporate Issues $4,307,945.00 $4,249,750.00 $58,195.00 7.4 $195,125.00 Total Taxable Bonds $53,111,851.25 $54,967,350.36 -$1,855,499.11 90.7 $1,502,850.00 Total Assets $58,561,817.53 $60,417,316.64 -$1,855,499.11 100.0 $1,785,582.37 Estimated Current Yield 3.04
ASSET DETAIL MESSAGES
Time of trade execution and trading party (if not disclosed) will be provided upon request. 19 19654
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CITY OF LAGUNA NIGUEL Page 11 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
TRANSACTION DETAIL
Date
Posted Activity Description Cash Tax Cost
Beginning Balance 02/01/2024 $0.00 $60,195,820.63
02/01/24 Asset Income Interest Earned On 25,165.29
irst Am Treas Ob Fd Cl
terest From 1/1/24 To 1/31/2
02/08/24 Asset Income Interest Earned On 976.71
Celtic Bk C D 4.600% 12/08/21
0.003907 USD/$1 Pv On 250,000 Par Value Due 2/8/24
02/12/24 Asset Income Interest Earned On 30,000.00
F H L MC 1.500% 2/12/25
0.0075 USD/$1 Pv On 4,000,000 Par Value Due 2/12/24
02/14/24 Purchase Purchased 250,000 Par Value Of -250,000.00 250,000.00 Uinta Bk Mtn C D 3.950% 2/14/29
Purchased Through Cantor Fitzgerald & Co.
2250000 Pao Value Or sein Board
02/15/24 Asset Income Interest Earned On 68,750.00
4.37575 US D81 8702,0200 Par Value Due 215124
02/15/24 Asset Income Interest Earned On 21,562.50
U S Treasury Nt 2.875% 8/15/28
0.014375 USD/$1 Pv On 1,500,000 Par Value Due 2/15/24
02/22/24 Asset Income Interest Earned On 913.01
Medallion Bk C D 4.300% 12/22/28
0.003652 USD/$1 Pv On 250,000 Par Value Due 2/22/24
02/26/24 Purchase urchased 1,500,000 Par Value C -1,489,755.00 1,489,755.00 S Treasury Nt 4.250% 5/31/2
Trade Date 2/23/24
Purchased Through Cantor Fitzgerald & Co
1,500,000 Par Value At 99.317%
02/26/24 Purchase Accrued Interest Paid Accrued Interest On Purchase Of -15,327.87 U S Treasury Nt 4.250% 5/31/25
Income Debit 15,327.87-USD
19654
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CITY OF LAGUNA NIGUEL Page 12 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 TRANSACTION DETAIL (continued)
Date
Posted Activity Description Cash Tax Cost
02/26/24 Purchase -1,494,975.00 1,494,975.00
archased Through Cantor Fitzgerald & C
500,000 Par Value At 99.665
02/26/24 Purchase Accrued Interest -2,234.38
02/26/24 Asset Income Interest Earned On 1,167.81
Wells Fargo C D 5.500% 4/24/2:
).004671 USD/$1 Pv On 250,000 Par Value Due 2/24/2:
02/26/24 Asset Income Interest Earned On 16,312.50
F N M A 0.375% 8/25/25
0.001875 USD/$1 Pv On 8,700,000 Par Value Due 2/25/24
02/26/24 • Asset Income Interest Earned On 944.86
Comenity Cap Bk C D 4.450% 7/26/28
.003779 USD/$1 Pv On 250,000 Par Value Due 2/26/24
02/28/24 Asset Income Interest Earned On 955.48
Bank Five Nine C D 4.500% 7/28/28
0.003822 USD/$1 Pv On 250,000 Par Value Due 2/28/24
02/28/24 Asset Income Interest Earned On 913.01
First Natl Bk C D 4.300% 12/28/28
0.003652 USD/$1 Pv On 250,000 Par Value Due 2/28/24
02/29/24 Asset Income Interest Earned On 784.59
Spiritbank Tulsa C D 3.950% 1/31/29
0.003138 USD/$1 Pv On 250,000 Par Value Due 2/29/24
02/29/24 Sale Matured 2,500,000 Par Value O 2,500,000.00 -2,459,075.00 J S Treasury Nt 2.375% 2/29/2.
Trade Date 2/29/24
2.500.000 Par Value At 100%
02/29/24 Asset Income Interest Earned On 29,687.50
J S Treasury Nt 2.375% 2/29/24
.011875 USD/$1 Pv On 2,500,000 Par Value Due 2/29/2
Purchase Combined Purchases For The Period 2/1/24 - 2/29/24 Of -2,679,762.20 2,679,762.20 First Am Treas Ob Fd CIZ
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CITY OF LAGUNA NIGUEL Page 13 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 TRANSACTION DETAIL (continued)
Date
Posted Activity Description Cash Tax Cost
Sale Gis Ameras 05 reperiod 2121-2282401 3,233,921.19 -3,233,921.19 Ending Balance 02/29/2024 $0.00 $60,417,316.64
22 19654
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CITY OF LAGUNA NIGUEL Page 14 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
SALE/MATURITY SUMMARY
Settlement Estimated
Date Description Tax Cost Proceeds Gain/Loss
Taxable Bonds
02/29/24 Matured 2,500,000 -2,459,075.00 2,500,000.00 40,925.00 Par Value
rade Date 2/29/2
,500,000 Par Value At 100'
Total Taxable Bonds -$2,459,075.00 $2,500,000.00 $40,925.00 Total Sales & Maturities -$2,459,075.00 $2,500,000.00 $40,925.00
SALE/MATURITY SUMMARY MESSAGES
Estimated Year-To-Date Short-Term Gain (Loss): $40,925.00 Estimates should not be used for tax purposes
19654
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CITY OF LAGUNA NIGUEL Page 15 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024
BOND SUMMARY
50% |
40%
30%
0%
2024 2025 2026 2027 2028 2029
Percentage of
Par Value Market Value Category
MATURITY
2024 5,000,000.00 4,909,555.00 9.25
2025 20,325,000.00 19,617,086.25 36.94
2026 7100000000 7,056,185.00 13.29
2027 6,840,515.00 12.87
2028 10,500,000.00 10,246,642.50 19.29
2029 4,500,000.00 4,441,867.50 8.36
Total of Category $54,825,000.00 $53,111,851.25 100.00
MOODY'S RATING
Aaa 49,575,000.00 47,822,286.25 90.04
N/A 2,750,000.00 2,746,790.00 5.17
NOT RATED 2,500,000.00 2,542,775.00 4.79
Total of Category $54,825,000.00 $53,111,851.25 100.00
24 19654
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CITY OF LAGUNA NIGUEL Page 16 of 16
ACCOUNT NUMBER: 6736304200 February 1, 2024 to February 29, 2024 BOND SUMMARY (continued)
Percentage of
Par Value Market Value Category
S&P RATING
AA+ 34,825,000.00 33,362,211.25 62.82
N/A 15,750,000.00 15,441,695.00 29.07
NOT RATED 4,250,000.00 4,307,945.00 8.11
Total of Category $54,825,000.00 $53,111,851.25 100.00
BOND SUMMARY MESSAGES
Data contained within this section excluded Mutual Funds, Exchange Traded Funds, and Closed-Ended Funds. 25 PUBLIC
AGENCY PARS
RETIREMENT
SERVICES
CITY OF LAGUNA NIGUEL Account Report for the Period
PARS Post-Employment Benefits Trust 2/1/2024 to 2/29/2024 Tamara Letourneau
City Manager
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Account Summary
Balance as of Balance as of
2/1/2024 Contributions Earnings Expenses Distributions Transfers 2/29/2024 Source
PENSION S2,104,655,61 $0,00 S14,836.66 $1,016.96 $0.00 $0,00 S2,118,475.31 Totals S2,104,655.61 $0.00 $14,836.66 S1,016.96 $0.00 $0.00 S2,118,475.31 Investment Selection
Source
PENSION Moderately Conservative - Strategic Blend
Investment Objective
Source
The dual goals of the Moderately Conservative Strategy are current income and moderate capital appreciation. The major portion of the assets is PENSION 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 0.70% 5.18% 9.81% 0.73% 5/26/2020
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 may be subject to change Investment Retum: 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 retum.
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave, Suite 100, Newport Beach, CA 92660 Fax 949.250.1250 www.pars.org 26