STATE OF CALIFORNIA) RESOLUTION NO. 4003
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO)
A RESOLUTION OF THE CITY OF SAN JACINTO, CALIFORNIA, REVISING
THE STATEMENT OF INVESTMENT POLICY
WHEREAS, Section 53646 of the Government Code of the State of California requires that the Treasurer or Chief Fiscal Officer shall annually render to the legislative body of his/her agency for review and/or amendment a Statement of Investment Policy; and
WHEREAS, any changes to the City’s Statement of Investment must be considered in public session of the legislative body; and WHEREAS, the City’s Statement of Investment Policy was last reviewed on November 1, 2022, with no changes; and
WHEREAS, the City’s Statement of Investment Policy has not been significantly revised.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Jacinto hereby rescinds previous investment policy resolutions and approves the Statement of Investment Policy, as attached hereto in Exhibit “A”.
APPROVED, PASSED, and ADOPTED this 7th day of November 2023 by the following vote:
AYES:
NAYS:
ABSTAIN:
ABSENT:
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CITY OF SAN JACINTO:
_______________________
Alonso Ledezma, Mayor
ATTEST:
_____________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
__________________________
Craig Hayes, City Attorney
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EXHIBIT “A”
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CITY OF SAN JACINTO
STATEMENT OF INVESTMENT POLICY
I. INTRODUCTION
The City of San Jacinto’s (City) investment program will conform with federal, state, and other legal requirements, including California Government Code Sections 16429.1-16429.4, 53600- 53609 and 53630-53686. The following investment policy addresses the methods, procedures and practices, which must be exercised to ensure effective and judicious fiscal andinvestment management of the City’s funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws.
This Investment Policy was endorsed and adopted by the City’s governing body (City Council) and is effective as of November 7, 2023. This Investment Policy replaces any previous Investment Policy of the City.
II. PUBLIC TRUST
All participants in the investment process shall act as custodians of the public trust. Investment officialsshall recognize that the investment portfolio issubject to public review and evaluation.
The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. In a diversified portfolio, it must be recognized that occasional measurement losses are inevitable, and must be considered within the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.
III.SCOPE
This Investment Policy applies to all the City’s financial assets and investment activities with the following exceptions:
A. Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.
Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.
Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
IV. GENERAL OBJECTIVES
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The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks.
1. Safety: It is the primary duty and responsibility of the City Treasurer to protect, preserve and maintain cash and investments placed in his/her trust on behalf of the citizens of the City. Safety of principal is the foremost objective of the investment program.
Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. Since all cash requirements cannot be anticipated, investments in securities shall be those with active secondary or resalemarkets.
3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs. Yields should become a consideration only after the basic requirements of safety and liquidity have been met.
V. PRUDENCE, INDEMNIFICATION AND ETHICS
A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of thissection and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
In keeping with the objectives (Section IV), in addition to safeguarding the principle and maintaining the liquidity needs of the City, a prudent investor should also optimize return or yield to the greatest extent possible.
B. Indemnification: The City Treasurer, Finance Director and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the investment policy and exercising due diligence, will be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from
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expectations are reported within 30 days and appropriate action is taken to control adverse developments.
C. Ethics: Officers and employees involved in the investment process are prohibited from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
VI. DELEGATION OF AUTHORITY
A. Authority to manage the City’sinvestment program is derived from California Government Code Sections 53600 et seq. The City Council is responsible for the City’s cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the City Treasurer and the Finance Director.
The City Treasurer and Finance Director will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees.
B. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.
VII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, ANDBROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
A. The City Treasurer and Finance Director will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:
1. Primary government dealers as designated by the Federal Reserve Bank;
2. Nationally or state-chartered banks;
3. The Federal Reserve Bank; and,
4. Direct issuers of securities eligible for purchase.
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B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.
C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Finance Director with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City’s Investment Policy.
D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser, provided they meet all of the requirements as stated.
E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation (FDIC), or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law. Financial institutions that do not offer FDIC insurance will not be invested in. A written contract of deposit of public funds must be obtained from the financial institution, indicating the institution’s policy and process of FDIC insurance and collateralization.
VIII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVETRANSACTIONS A. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.
B. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City.
C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform.
IX. AUTHORIZED AND SUITABLE INVESTMENTS
All investments will be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Percentage limitations and minimum credit ratings described in this section will be applicable at the time of purchase. Permitted investments under this policy will include:
1. MUNICIPAL SECURITIES include obligations of the City of San Jacinto, the State of California and any local agency within the State of California, provided that:
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• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.
2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.
3. U.S. Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.
4. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued byor fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.
5. Banker’s acceptances, provided that:
• They are issued by institutions with short term debt obligations rated ”A-1” or higher, or the equivalent, by at least two NRSROs; and have long-term debt obligations which are rated in the ”A” category or higher by at least two NRSROs; • The maturity does not exceed 180 days; and,
• No more than 40% of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer.
6. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance; and,
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• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits; and,
• The maturity of such deposits does not exceed 5 years.
7. Collateralized time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits;
• They are issued by institutions which have long-term debt obligations which are rated in the ”A” category or higher by at least two NRSROs; and/or have short term obligations rated ”A-1” or higher, or the equivalent, by at least two NRSROs; and, • The maturity of such deposits does not exceed 5 years.
8. Certificate of Deposit Placement Service (CDARS), provided that:
• No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS; and,
• The maturity of CDARS deposits does not exceed five years.
9. Negotiable certificates of deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federal licensed or state licensed branch of a foreign bank, provided that:
• They are issued by institutions which have long-term obligations which are rated in the ”A” category or higher by at least two NRSROs; and/or have short term debt obligations rated ”A-1” or higher, or the equivalent, by at least two NRSROs; • The maturity does not exceed five years; and,
• No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer.
10. COLLATERALIZED BANK DEPOSITS. The City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the Agency may invest in collateralized bank deposits.
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11. Repurchase agreements collateralized with securities authorized under Sections VI and VIII(2 and 3) of this policy maintained at a level of at least 102% of the market value of the repurchase agreements, provided that:
• The maximum maturity of repurchase agreements will be 1 year; • There is no limit to the amount to be invested in repurchase agreements; • Securities used as collateral for repurchase agreements will be delivered to the City’s custodian bank (See Section VII B); and,
• The repurchase agreements are the subject of a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
12. Commercial paper, provided that:
• The maturity does not exceed 270 days from the date of purchase; • The issuer is a corporation organized and operating in the United States with assets in excess of $500 million;
• They are issued by institutions whose short term obligations are rated ”A-1” or higher, or the equivalent, by at least two NRSROs; and whose long-term obligations are rated ”A” category or higher by at least two NRSROs; and, • No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer.
13. State of California Local Agency Investment Fund (LAIF), provided that:
• No more than 70% of the total portfolio may be invested in LAIF, up to the maximum permitted balance; and,
• LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude it from the City’s list of allowable investments, provided that the fund’s reports allow the City Treasurer and Finance Director to adequately judge the risk inherent in LAIF’s portfolio.
14. Local government investment pools and Joint Powers Authority Pools • Riverside County Investment Fund, no more than 70% of the total portfolio; and, • JPA Pools, no more than 50% of the total portfolio.
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15. Corporate medium term notes (MTNs), provided that:
• Such notes have a maximum maturity of five years;
• Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
• Are rated ”A” category or better by at least two NRSROs; and, • Holdings of medium-term notes may not exceed 30% of the portfolio and no more than 5% per issuer.
16. Mortgage pass-through, mortgage-backed, collateralized mortgage obligations, and asset-backed securities, provided that such securities:
• have a maximum stated final maturity of five years;
• be issued by an issuer having an “A” category or higher rating for the issuer’s debt as provided by at least two NRSROs;
• be rated in a rating category of “AA” category or its equivalent or better by at least two NRSROs; and,
• Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio.
17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
• MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusiveand that meet either of the following criteria:
• Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
• Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.
• No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
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b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
3. No more than 20% of the total portfolio may be invested in Money Market Mutual Funds.
c. No more than 20% of the total portfolio may be invested in these securities.
18. SUPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
X. PORTFOLIO RISK MANAGEMENT
A. Prohibited investment vehicles and practices
1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited.
4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
5. Purchasing or selling securities on margin is prohibited.
6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
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7. The purchase of foreign currency denominated securities is prohibited.
B. Mitigating credit risk in the portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
1. The diversification requirements included in Section VIII are designed to mitigate credit risk in the portfolio;
2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises, Money Market Mutual Funds, Mutual Funds, LAIF, LGIPs, Supranationals, or unless otherwise specified in this investment policy;
3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,
4. If securities owned by the City are downgraded by either Moody’s or S&P to a level below the quality required by this Investment Policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
a. If a security is downgraded, the City Treasurer and Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the governing board.
C. Mitigating market risk in the portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cashflow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adoptsthe following strategies to control and mitigate its exposure to market risk:
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1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;
2. The maximum percent of callable securities (does not include “make whole call” securities as defined in the Glossary) in the portfolio will be 20%;
3. The maximum stated final maturity of individual securities in the portfolio will befive years, except as otherwise stated in this policy; and,
4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City’s investment objectives, constraints and risk tolerances. The City’s current Benchmark will be documented in the investment procedures manual.
XI.INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.
B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City’s investment procedures manual. The performance of the City’s investments shall be compared to the total return of a benchmark that closely corresponds to the portfolio’s duration, universe of allowable securities, risk profile, and other relevant characteristics.
XII. PROCEDURES AND INTERNAL CONTROLS
A. Procedures
The City Treasurer and Finance Director will establish written investment policy procedures in a separate investment procedures manual to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer and Finance Director.
B. Internal Controls
The City Treasurer and Finance Director are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be described in the City’s investment procedures manual.
XIII. REPORTING, DISCLOSURE AND PROGRAM EVALUATION
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A. Monthly reports
Monthly investment reports will be submitted by the City Treasurer to the City Council. These reports will disclose, at a minimum, the following information about the risk characteristics of the City’s portfolio:
1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, and interest rate;
2. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Average portfolio credit quality; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods;
3. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,
4. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.
5. A list of transactions for the period.
B. Annual reports
1. The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
2. A comprehensive annual report will be presented in conjunction with the investment policy review. This report will include comparisons of the City’s return to the Benchmark Index return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.
C. Periodic audit
The City Treasurer may establish a process of periodic independent review by an external expert to assure compliance with internal controls.
Prepared by:
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Thomas Prill, Deputy City Manager
Approved as to legal form:
Craig Hayes, City Attorney
Approved:
Alonso Ledezma, Mayor
Date: November 7, 2023
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Appendix I
Authorized Personnel
The following investments (as defined in Section IX) can only be made by joint approval of the City Treasurer and Finance Director. When an external investment adviser is retained, approval of a proposed portfolio structure by the City Treasurer and Finance Director will suffice.
Municipal bonds (City, State, Agency)
U.S. Treasury obligations
Federal Agency obligations
Banker’s acceptances
Time deposits, federally insured or collateralized, including CDARS Negotiable certificates of deposit
Repurchase agreements
Commercial paper
Corporate medium term notes
Mortgage pass-through and asset-backed securities
Mutual funds
The following investments (as defined in Section IX) can be made by the Finance Director or his designee:
Money market mutual funds (non-brokered)
Local Agency Investment Fund (LAIF)
County Pooled Investment Funds
Joint Powers Authority Pool
Bank deposits, federally insured or collateralized
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Appendix II
GLOSSARY OF INVESTMENT TERMS©
Agencies. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations.
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average Life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.
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Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Certificate of Deposit Account Registry System (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each so that FDIC coverage is maintained.
Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Commercial Paper. The short-term unsecured debt of corporations.
Cost Yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
Coupon. The rate of return at which interest is paid on a bond.
Credit Risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
Current Yield. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
Debenture. A bond secured only by the general credit of the issuer.
Delivery vs. Payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market ratefor securities of that maturity and/or quality.
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Packet Pg. 209 Attachment: Resolution No. 4003 - Statement of Investment Policy (Statement of Investment Policy) Resolution No. 4003
Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).
Federal Funds Rate. The rate of interest charged by banks for short-term loans to other banks.
The Federal Reserve Bank through open-market operations establishes it.
Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo). Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.
Market Risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
Market Value. The price at which a security can be traded.
Marking to Market. The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable.
Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.
MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
Modified Duration. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
Money Market. The market in which short-term debt instruments (Tbills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
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Packet Pg. 210 Attachment: Resolution No. 4003 - Statement of Investment Policy (Statement of Investment Policy) Resolution No. 4003
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.
Mutual Fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.
NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
Prepayment Speed. A measure of how quickly principal is repaid to investors in mortgage securities.
Prepayment Window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.
Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.
Government securities market.
Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Realized Yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.
Regional Dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories ofsecurities and that is not a primary dealer.
Repurchase Agreement (RP, Repo). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.
Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate
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Packet Pg. 211 Attachment: Resolution No. 4003 - Statement of Investment Policy (Statement of Investment Policy) Resolution No. 4003
notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
Total Rate of Return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury Bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month Tbills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.
Treasury Notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.
Treasury Bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.
Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
©Copyright 2018 by Chandler Asset Management, Inc.
3.A.7.a
Packet Pg. 212 Attachment: Resolution No. 4003 - Statement of Investment Policy (Statement of Investment Policy) November 7, 2023
TO: City Council
REQUESTED BY: Travis Randel, Deputy City Manager, Development Services APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Library Building Repair
RECOMMENDATION:
Staff recommends that the City Council APPROPRIATE $50,000 for the repair of the Library Building.
DISCUSSION:
On October 18, 2023, at approximately 5:00 PM, an incident occurred in the library parking lot involving a 2007 Toyota Camry. The driver of the vehicle, who reported that her shoe became stuck on the accelerator pedal while attempting to park in the library parking lot, experienced an unintended acceleration, which resulted in the vehicle jumping the curb and impacting the library building. Fortunately, the driver emerged from the incident without any injuries, and medical aid was not required.
Following the incident, the City’s Senior Building Inspector conducted an assessment to determine the extent of damage to the library building. The inspection concluded that, although there was significant damage to a specific section of the building, the overall structural integrity remained intact. Consequently, the building was not red-tagged, and it is deemed safe for public use.
The immediate response to the incident focused on ensuring the safety and security of the library and its patrons. Public Works Staff cordoned off the damaged area to restrict access and maintain public safety. Furthermore, temporary measures were implemented to secure the damaged section of the building, preventing unauthorized entry and addressing potential weather-related issues.
As of the date of this report, the library continues to remain open for public use. The damaged area remains cordoned off to prevent access, and the necessary steps have been taken to temporarily secure the affected section of the building.
Staff received a quote to repair the building for approximately $35,000. Staff is requesting that the City Council appropriate $50,000 for the building repair, including $35,000 for the building repair based on the current visual inspection, with an additional $15,000 for unforeseen repairs that may also be required once the building damage is fully realized.
CEQA ANALYSIS:
The project has been reviewed and determined to be exempt from further CEQA analysis under several relevant provisions. First, it qualifies for statutory exemption under Section 15269 – Emergency Projects due to the critical necessity of repairing a building damaged as a result of a
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vehicle collision, directly related to ensuring the health and safety of library patrons. Second, the project falls within categorical exemptions as outlined in Sections 15301 – Existing Facilities and 15303 – Replacement or Reconstruction, as it strictly involves repairing an existing building without any expansion in size or capacity.
Moreover, the project is also subject to exemption under Section 15061 – Common Sense Exemption, as CEQA's applicability pertains to projects with the potential to cause significant environmental impacts. Repairing the library, in this context, is determined to have no significant environmental impact.
FISCAL IMPACT:
Staff recommends that the City Council appropriate an additional $50,000 in the NonDepartmental, Building Repair and Maintenance Account, 010-2500-425.33-01, to complete the repairs.
The City will pursue damage recovery through the Driver’s insurance company. If these efforts prove successful, the repair costs will be covered without any adverse impact on the General Fund. However, in the event of unsuccessful recovery, it is anticipated that the repair expenses could potentially result in an increase in General Fund spending of up to $50,000, as the City’s property insurance deductible with PERMA is more than this amount.
ATTACHMENTS:
October 18, 2023 Library Incident Damage
October 18, 2023 Library Incident Temporary Repairs
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3.A.8.a
Packet Pg. 215 Attachment: October 18, 2023 Library Incident Damage (Library Building Repair)
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Packet Pg. 216 Attachment: October 18, 2023 Library Incident Temporary Repairs (Library Building November 7, 2023
TO: City Council
REQUESTED BY: Travis Randel, Deputy City Manager, Development Services APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Bucket Truck Replacement - Enterprise Fleet Management RECOMMENDATION:
Staff recommends that the City Council:
1. APPROPRIATE $32,354 for the Street Capital Machinery & Equipment, Account 010- 4150-410.40-45, for the Capitalized Price for a new 2022 Chevrolet 5500HD Bucket Truck.
2. APPROPRIATE $32,354 for the Parks Capital Machinery & Equipment, Account 010- 7100-410.40-45, for the Capitalized Price for a new 2022 Chevrolet 5500HD Bucket Truck.
3. APPROPRIATE $9,777 for the Streets Rent/Leases, Account 010-4150-410.34-50, for 7-month lease of a new 2022 Chevrolet 5500HD Bucket Truck.
4. APPROPRIATE $9,777 for the Parks Rent/Leases, Account 010-7101-410.34-50, for 7- month lease of a new 2022 Chevrolet 5500HD Bucket Truck.
DISCUSSION:
On March 5, 2019, City Council authorized the City Manager to enter into an agreement with Enterprise Fleet Management Inc. for a vehicle replacement and maintenance program. Since entering into the agreement, a number of vehicles have been replaced and all City vehicles are being maintained under Enterprise.
As part of the Agreement, Enterprise Fleet Management, Inc. would assist in the identification of various vehicles within the City’s current fleet in need of replacement. Several years ago, the City and Enterprise identified the City’s 2008 Ford F-550 Bucket Truck as being past its useful life and non-compliant with various safety and regulatory requirements. At the time, procurement of such vehicles was approximately 3-5 years, and as such, was not previously budgeted. However, the City has been notified of a vehicle that is currently available and meets all of the City requirements for replacement of the existing vehicle. Given that the procurement process from the manufacturer normally takes many years, staff is requesting that the City Council authorize a budget adjustment to appropriate the necessary funds to purchase this 2022 Chevrolet 5500HD Bucket Truck vehicle.
The truck is expected to be used equally between two divisions in Public Works; Streets and Parks. Accordingly, staff recommends the following budget adjustment:
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• Appropriate $32,354 for the Street Capital Machinery & Equipment, Account 010-4150- 410.40-45, for the Capitalized Price for a new 2022 Chevrolet 5500HD Bucket Truck. • Appropriate $32,354 for the Parks Capital Machinery & Equipment, Account 010-7100- 410.40-45, for the Capitalized Price for a new 2022 Chevrolet 5500HD Bucket Truck.. • Appropriate $9,777 for the Streets Rent/Leases, Account 010-4150-410.34-50, for 7- month lease of a new 2022 Chevrolet 5500HD Bucket Truck.. • Appropriate $9,777 for the Parks Rent/Leases, Account 010-7101-410.34-50, for 7- month lease of a new 2022 Chevrolet 5500HD Bucket Truck..
The Capital Machinery & Equipment is for the “accessory” component (i.e. Bucket lift) that, per the contract with Enterprise Fleet management, Inc., are not included in the lease and are to be paid upfront by the City. The remaining appropriations are for the monthly lease payments for the remaining fiscal year.
FISCAL IMPACT:
Approval of this request will result in a one-time General Fund cost of $64,708, which will purchase the accessory components (i.e. Bucket lift) that are not included in the lease price.
In addition, the General Fund will incur an annual cost of approximately $33,521 for the lease of the vehicle. Some costs are off-set by overhead allocations from the various LLPD and CFD fund accounts, where the vehicle will be utilized.
ATTACHMENTS:
Bucket Truck Quote
Requested Bucket Truck
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Packet Pg. 219 Attachment: Bucket Truck Quote (Bucket Truck Replacement - Enterprise Fleet Management)
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Packet Pg. 220 Attachment: Bucket Truck Quote (Bucket Truck Replacement - Enterprise Fleet Management)
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Packet Pg. 221 Attachment: Bucket Truck Quote (Bucket Truck Replacement - Enterprise Fleet Management)
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Packet Pg. 222 Attachment: Bucket Truck Quote (Bucket Truck Replacement - Enterprise Fleet Management)
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Packet Pg. 223 Attachment: Bucket Truck Quote (Bucket Truck Replacement - Enterprise Fleet Management)
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Packet Pg. 224 Attachment: Requested Bucket Truck (Bucket Truck Replacement - Enterprise Fleet
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Packet Pg. 225 Attachment: Requested Bucket Truck (Bucket Truck Replacement - Enterprise Fleet
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Packet Pg. 226 Attachment: Requested Bucket Truck (Bucket Truck Replacement - Enterprise Fleet
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Packet Pg. 227 Attachment: Requested Bucket Truck (Bucket Truck Replacement - Enterprise Fleet November 7, 2023
TO: City Council
REQUESTED BY: Tom Prill, Deputy City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Investment Portfolio Review with Advisors
RECOMMENDATION:
Staff recommends that the City Council receive and file the Investment Portfolio Review.
DISCUSSION:
In May 2012, the City Council approved the use of two Investment Advisors to control a portfolio of $10 million each. Chandler Asset Management has maintained one portfolio for 11 years and 4 months, while Public Trust Advisors (formerly BLX) has maintained another portfolio for 11 years.
Both Chandler and PTA will be in attendance to make brief presentations (attached) and to answer questions from the City Council.
FISCAL IMPACT:
None.
ATTACHMENTS:
Public Trust Advisors Portfolio Review - 063023
Chandler Portfolio Review - 063023
4.1 Packet Pg. 228
Annual Portfolio Review
For the Period Ended June 30, 2023
City of San Jacinto
November 7, 2023
4.1.a
Packet Pg. 229 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
This information is for the sole purposes of the client and is not intended to provide specific advice or recommendations. Please review the contents of this information carefully. Should you have any questions regarding the information presented, calculation methodology, investment portfolio, security detail, or any other facet of this information, please feel free to contact us.
Public Trust Advisors, LLC (Public Trust) statements and reports are intended to detail our investment advisory activity as well as the activity of any client accounts managed by Public Trust. The custodian bank maintains the control of assets and executes and settles all investment transactions. The custodian statement is the official record of security and cash holdings transactions. Public Trust recognizes that clients may use these reports to facilitate record keeping; therefore, it is recommended that the client reconcile this information with their custodian bank statement. Many custodians use a settlement date basis that may result in the need to reconcile due to a timing difference. The underlying market value, amortized cost, and accrued interest may differ between the custodian and this statement or report. This can be attributable to differences in calculation methodologies and pricing sources used. Please contact your relationship manager or call us at (855) 395-3954 with questions regarding your account.
Public Trust does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retain responsibility for their internal accounting policies, implementing and enforcing internal controls, and generating ledger entries or otherwise recording transactions. The total market value represents prices obtained from various sources; it may be impacted by the frequency at which prices are reported, and such prices are not guaranteed. Prices received from pricing vendors are generally based on current market quotes but when such quotes are not available, the pricing vendors use a variety of techniques to estimate value.
These estimates, particularly for fixed-income securities, may be based on certain minimum principal amounts (e.g. $1 million) and may not reflect all the factors that affect the value of the security including liquidity risk.
The prices provided are not firm bids or offers. Certain securities may reflect N/A or unavailable where the price for such security is generally not available from a pricing source. The market value of a security, including those priced at par value, may differ from its purchase price and may not closely reflect the value at which the security may be sold or purchased based on various market factors. The securities in this investment portfolio, including shares of mutual funds, are not guaranteed or otherwise protected by Public Trust, the FDIC (except for certain non-negotiable certificates of deposit), or any government agency unless specifically stated otherwise.
Clients may be permitted to establish one or more unmanaged accounts for the purposes of client reporting. Public Trust defines an unmanaged account as one where the investment direction remains the sole responsibility of the client rather than the Investment Manager. These accounts do not receive ongoing supervision and monitoring services. The Investment Manager does not make any investment recommendations and may not charge a fee for reporting on these accounts. The primary purpose for this service is to include unmanaged accounts owned by the client in the performance reports provided by the Investment Manager.
The Investment Manager assumes no liability for the underlying performance of any unmanaged accounts or assets, and it is the client’s sole responsibility for the accuracy or correctness of any such performance.
Beginning and ending balances are based on market value plus accrued interest on a trade date basis. Statements and reports made available to the end user either from Public Trust or through the online reporting platform may present information and portfolio analytics using various optional methods including, but not limited to, historical cost, amortized cost, and market value. All information is assumed to be correct, but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The data in this report is unaudited and is only applicable for the date denoted on the report. Market values may change day-to-day based on numerous circumstances such as trading volume, news released about the underlying issuer, issuer performance, etc.
Underlying market values may be priced via numerous aspects as certain securities are short term in nature and not readily traded. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings.
Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.
The investment advisor providing these services is Public Trust Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. Public Trust is required to maintain a written disclosure brochure of our background and business experience. If you would like to receive a copy of our current disclosure brochure, Privacy Policy, or Code of Ethics, please contact us.
Public Trust Advisors
717 17th Street, Suite 1850
Denver, Colorado 80202
Disclosures
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Packet Pg. 230 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Economic Update
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Packet Pg. 231 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
The resiliency that has come to define the U.S. economy’s recent performance continued through the third quarter with the Gross Domestic Product (GDP) advancing a stronger-than-expected 4.9% over the period. The U.S. economy continues to be supported by the enduring strength of the labor market.
Please refer to the disclosure slide of this presentation for more information.
U.S. Gross Domestic Product Has Remained Remarkably Resilient Over the Past Year Source: Bureau of Economic Analysis, Bloomberg
Data as of: October 31, 2023
4.1.a
Packet Pg. 232 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Retail sales accelerated in the third quarter rising at an average monthly rate of 0.7% compared to 0.4% the prior quarter.
Sustained strength in consumer demand continues to be supported by robust labor market conditions which have helped consumers sustain spending
Please refer to the disclosure slide of this presentation for more information.
Retail Sales Continue to Reflect Durable Consumer Demand Source: Bureau of Economic Analysis, Bloomberg
Data as of: October 31, 2023
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Packet Pg. 233 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Nonfarm payrolls grew at a robust 336K pace in September, and upward revisions to job growth in July and August further bolstered the strength of the report. Persistently strong employment will likely keep the FOMC on guard as it watches for signs that a tight labor market could prevent inflation from returning to the 2% target on a sustained basis.
The Labor Market is Gradually Easing From Very Tight Levels Source: Bureau of Labor Statistics, Bloomberg Please refer to the disclosure slide of this presentation for more information.
Data as of: October 31, 2023
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Packet Pg. 234 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Despite the moderating pace of job creation, labor market conditions remain notably tight and a tailwind to the U.S. economy. The resiliency of the labor market in the face of the Fed’s aggressive rate increases is a primary source of optimisms amongst many market participants that a recession may yet be avoided.
The Unemployment Rate Remains at Historically Low Levels Source: Bureau of Labor Statistics, Bloomberg Please refer to the disclosure slide of this presentation for more information.
Data as of: October 31, 2023
4.1.a
Packet Pg. 235 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
The layoffs and discharge rate remains exceptionally low evidencing the preference of employers to retain workers amidst persistent labor scarcity. Prior to the pandemic, the lowest layoff and discharge rate ever was 1.1%. The rate has now been at or lower than 1.1% for 31 out of the last 32 months.
Source: Bureau of Labor Statistics, Bloomberg
Data as: August 31, 2023
The Layoff and Discharge Rate Remains at Historically Low Levels Please refer to the disclosure slide of this presentation for more information.
4.1.a
Packet Pg. 236 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Source: Bureau of Labor Statistics, Bloomberg Public Trust Advisors 2023 © Data as of: September 30, 2023
After more than 2 years of negative real wage growth, workers are finally getting a raise as inflation cools. Real average hourly earnings turned positive in May on a year-over-year basis for the first time since April 2021, providing some relief to consumers still struggling with elevated prices.
Please refer to the disclosure slide of this presentation for more information.
Workers are Finally Getting a Raise as Inflation Cools
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Packet Pg. 237 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Conference Board, Bloomberg
Data as of: September 30, 2023
Despite the resiliency of economic conditions, the U.S. Leading Economic Index has fallen on a consecutive monthly basis for a year and a half, suggesting a growing risk that activity in the U.S. economy is poised to slow in coming quarters and the risk of recession remains despite having been pushed further out.
Please refer to the disclosure slide of this presentation for more information.
Leading Indicators Post 18th Consecutive Decline In September
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Packet Pg. 238 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Bureau of Economic Analysis, Bloomberg
Data as of: August 31, 2023
After surging thanks to government stimulus, the personal savings rate fell to 3.9% in August, well off its pandemic era highs and below its decades-long average of 8.9%. A recent study by the Federal Reserve Bank of San Francisco predicts that excess pandemic era savings were depleted in the third quarter, removing a key pillar of economic support.
Please refer to the disclosure slide of this presentation for more information.
Percent (%)
Declining Savings Threatens to Undermine Consumer Spending
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Packet Pg. 239 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Federal Reserve, Bureau of Economic Analysis, Bloomberg Data as of June 30. 2023
Rising credit card debt may, in part, reflect consumer’s turning to borrowing to help offset the impact of higher prices. As a percent of GDP, record-high levels of credit card debt appear less daunting though the outlook for consumer spending remains uncertain as pandemic savings are drawn down, student loan payments resume, and prices remain elevated.
Please refer to the disclosure slide of this presentation for more information.
U.S. Credit Card Debt Reaches All-Time High of Over $1 Trillion
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Packet Pg. 240 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Federal Reserve, Bloomberg , Bankrate.com
Data as of June 30, 2023
Though rising, credit card delinquencies remain relatively low compared to the last thirty years. Still, the impact that both record-high balances and interest rates may have on consumer spending bears monitoring. Bankrate reports average credit card interest rates reached a record 20.7% Please refer to the disclosure slide of this presentation for more information.
U.S. Credit Card Delinquencies are Rising
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Packet Pg. 241 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Price growth in September came in somewhat stronger than expected, with the Consumer Price Index rising 0.4% versus expectations for a 0.3% gain. Excluding food and energy, prices rose 0.3%, in line with expectations. September’s inflation report illustrates that further progress in lowering inflation may prove more challenging than has been over the past year.
Source: Bureau of Labor Statistics, Bureau of Economic Analysis, Bloomberg Data as of: September 30, 2023 Please refer to the disclosure slide of this presentation for more information.
Inflation Continues to Moderate as Price Pressures Ease
4.1.a
Packet Pg. 242 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Despite the uptick in September’s readings, inflation has clearly downshifted following last year’s surge. The path to reducing inflation from its highest levels since the early 19890’s to the Federal Reserve’s 2% target was never expected to be without turbulence and the recent uptick in energy prices will make the Fed’s job a bit tougher in the months ahead.
Source: Bureau of Labor Statistics, Bloomberg, PTA Calculations Data as of: September 30, 2023 Please refer to the disclosure slide of this presentation for more information.
Cooler Monthly CPI Readings Confirm Disinflationary Trend
4.1.a
Packet Pg. 243 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
The National Association of Realtors Housing Affordability Index registered 87.8 in July, its lowest level since 1989 as high mortgage rates and still-elevated home prices weigh on the sector. A reading of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
Source: National Association of Realtors, Bloomberg
Data as of: September 30, 2023 Please refer to the disclosure slide of this presentation for more information.
Housing Affordability Stretched By High Mortgage Rates
4.1.a
Packet Pg. 244 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Small business optimism remains subdued as nearly 1,500 small business have filed for bankruptcy through September, nearly as many as all last year. Moreover, the NFIB Small Business Optimism Index posted its 21st consecutive month below its 49-year average level of 98. Small businesses continue to be challenged by inflation and worker shortages.
Source: NFIB, The Wall Street Journal, Bloomberg
Data as of: September 30, 2023 Please refer to the disclosure slide of this presentation for more information.
Small Businesses Still Challenged by Inflation and Worker Shortages
4.1.a
Packet Pg. 245 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Federal Reserve, Bloomberg
Data as of: September 30, 2023
The Federal Reserve has hiked rates by a cumulative 5.25% over the last 18 months to combat inflation. At their September meeting, the Fed left rates unchanged in a range of 5.25% - 5.50%. While this pause was widely expected, forward guidance was still moderately hawkish and consistent with the Fed’s message of higher for longer. 5.5 $0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
0.00 1.00
2.00 3.00
4.00 5.00
6.00 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Federal Reserve Total Assets ($Trillions) Funds Rate (%) Federal Reserve Total Assets (RHS) Federal Funds Target Rate: Upper Bound (LHS) Please refer to the disclosure slide of this presentation for more information.
The Federal Funds Rate is Now at its Highest Level Over 22 Years
4.1.a
Packet Pg. 246 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Federal Reserve, Bloomberg
Data as of: October 24, 2023 Please refer to the disclosure slide of this presentation for more information.
Fed Funds Futures Anticipate Rate Cuts to Begin in Mid 2024 While pricing in the federal funds futures market reflect the belief that the Federal Reserve is done raising interest rates this cycle, the Fed’s persistent messaging of higher-for-longer coupled with the continued resiliency of the U.S. economy have pushed expectations of the Fed’s first rate cut further into the future.
4.1.a
Packet Pg. 247 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Source: Bloomberg
Data as of: October 24, 2023 Please refer to the disclosure slide of this presentation for more information.
Yields Surged on Fed Rate Hikes and Expectation of “Higher for Longer” Shorter-term yields have shifted higher over the past year as the Federal Reserve raised policy rates to combat persistent inflationary pressures. Longer-term yields have risen as hopes of a soft landing gained traction and fiscal imbalances have gained renewed focus. The yield curve remains inverted, signaling longer term growth concerns.
4.1.a
Packet Pg. 248 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 © Source: Bloomberg
Data as of: October 31, 2023
Please refer to the disclosure slide of this presentation for more information.
The Yield Curve Begins to Steepen From Historic Levels of Inversion While the Treasury yield curve shifted higher over the past year, longer term rates have risen more dramatically in recent months causing the spread between 10- and 2-year Treasuries to rise from -106 basis points in June to -25 basis points.
Longer-term yields have been pressured higher by continued economic resilience as well as a rising term premium.
4.1.a
Packet Pg. 249 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Portfolio Update: Summary Characteristics
4.1.a
Packet Pg. 250 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Portfolio Overview
Portfolio Summary
Asset Allocation
Portfolio Characteristics
Summary 06/30/22 06/30/23
Historical Cost $11,335,494.08 $11,301,915.88
Book Value 11,303,055.97 11,324,824.52
Accrued Interest 24,612.34 34,595.61
Net Pending Transactions 29.37 432.16
Book Value Plus Accrued $11,327,697.67 $11,359,852.29
Net Unrealized Gain/Loss (527,550.12) (586,208.15)
Market Value Plus Accrued $10,800,147.56 $10,773,644.14 Detail may not add to total due to rounding.
Executive Summary
Duration
Years to Effective Maturity
Years to Final Maturity
Coupon Rate
Book Yield
Market Yield
06/30/22
2.523
2.605
2.614
1.192
1.146
2.990
06/30/23
2.538
2.676
2.678
1.669
2.188
4.730
4.1.a
Packet Pg. 251 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Maturity Distribution by Security Type
Portfolio Overview
Issuer Value
United States 72.75%
Federal Home Loan Mortgage Corporation 5.25%
Amazon.com, Inc. 3.95%
Federal National Mortgage Association 3.51%
Caterpillar Inc. 2.58%
Toyota Motor Corporation 2.46%
PACCAR Inc 2.15%
Federal Home Loan Banks 1.93%
PepsiCo, Inc. 1.91%
State of California 1.13%
Top Ten Holdings Maturity Distribution by Type
Security Distribution 0-3 Months 3-6 Months 6-9 Months 9-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5+ Years Portfolio Total CASH $432.16 -- -- -- -- -- -- -- -- $432.16
CORP 84,096.47 107,900.91 276,338.78 874,325.64 196,132.95 1,538,794.75 FED INST (GSE) 13,272.89 267,664.54 493,255.64 378,091.06 1,152,284.13 MMFUND 62,265.76 62,265.76
MUNI 182,143.20 182,143.20
US GOV 1,469,852.11 2,416,535.12 1,672,269.73 2,279,067.17 7,837,724.14 TOTAL $75,970.81 $84,096.47 $375,565.45 $276,338.78 $2,837,433.39 $2,990,759.14 $1,854,412.94 $2,279,067.17 -- $10,773,644.14 • Maturity Distribution
4.1.a
Packet Pg. 252 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Market Value Basis Security Distribution
Asset Balance by Security Type
Security Distribution Jun 30, 2022
Ending Balance
Jun 30, 2022
Portfolio Allocation
Jun 30, 2023
Ending Balance
Jun 30, 2023
Portfolio Allocation
Change in
Allocation Book Yield
Cash $29.37 0.00% $432.16 0.00% 0.00% 0.00%
U.S. Treasury Notes $6,723,044.90 62.25% $7,837,724.14 72.75% 10.50% 2.34% Federal Instrumentality (GSE) 2,185,472.10 20.24% 1,152,284.13 10.70% (9.54%) 1.11% Money Market Funds $81,731.04 0.76% $62,265.76 0.58% (0.18%) 4.71% Corporate Notes 1,809,870.14 16.76% 1,538,794.75 14.28% (2.47%) 1.83% Municipal Bonds 182,143.20 1.69% 1.69% 4.73%
Portfolio Total $10,800,147.56 100.00% $10,773,644.14 100.00% 2.19% Portfolio Overview • Security Distribution – Market Value
4.1.a
Packet Pg. 253 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Portfolio Overview
S&P Rating Distribution Moody’s Rating Distribution
Allocation by Standard and Poor’s Rating Allocation by Moody’s Rating S&P Rating Distribution Jun 30, 2023
Ending Balance
Portfolio
Allocation
Short Term Rating Distribution
A-1+ $0.00 0.00%
A-1
A-2
Total Short Term Ratings $0.00 0.00%
Long Term Rating Distribution
AAA $330,362.46 3.07%
AA $9,404,459.75 87.29% A $1,038,821.94 9.64%
Below A
Not Rated
Total Long Term Ratings $10,773,644.14 100.00%
Portfolio Total $10,773,644.14 100.00%
Moody's Rating Distribution Jun 30, 2023
Ending Balance
Portfolio
Allocation
Short Term Rating Distribution
P-1 $0.00 0.00%
P-2
Total Short Term Ratings $0.00 0.00%
Long Term Rating Distribution
Aaa $9,052,706.19 84.03%
Aa $256,564.82 2.38% A $1,464,373.13 13.59%
Below A
Not Rated
Total Long Term Ratings $10,773,644.14 100.00%
Portfolio Total $10,773,644.14 100.00%
• Rating Distribution 4.1.a
Packet Pg. 254 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors 2023 ©
Portfolio Compliance
4.1.a
Packet Pg. 255 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Portfolio Compliance: June 30, 2023
4.1.a
Packet Pg. 256 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Portfolio Performance
4.1.a
Packet Pg. 257 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Source: ICE BofA Fixed Income Indices, PTA Public Trust Advisors 2023 © City of San Jacinto Historical Total Return: Account Inception - October 31, 2019 Trailing Month
Periodic
Trailing 3-Months
Periodic
Trailing 6-Months
Periodic
Trailing 12-Months
Periodic
Year to Date
Periodic
Total Return Performance
City of San Jacinto Portfolio 0.34% 1.04% 2.19% 4.49% 3.50% ICE BofAML 1-3 Year Treasury Index 0.33% 1.03% 2.15% 4.54% 3.37% Trailing 3 Years
Annualized
Trailing 5 Years
Annualized
Since Inception *
Annualized
Total Return Performance
City of San Jacinto Portfolio 1.78% 1.41% 1.21%
ICE BofAML 1-3 Year Treasury Index 1.66% 1.33% 1.12%
Notes: Account Inception Date: 12/1/2012. Annualized total return performance presented for investment periods longer than one year. Index Return information obtained from
Bloomberg.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Trailing Month
Periodic
Trailing 3-Months
Periodic
Trailing 6-Months
Periodic
Trailing 12-Months
Periodic
Year to Date
Periodic
Trailing 3 Years
Annualized
Trailing 5 Years
Annualized
Since Inception *
Annualized
Portfolio and Benchmark Total Return
City of San Jacinto Portfolio ICE BofAML 1-3 Year Treasury Index Portfolio Performance: Historical Performance
4.1.a
Packet Pg. 258 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Source: ICE BofA Fixed Income Indices, PTA Public Trust Advisors 2023 © Notes: Strategy Inception Date: 2/1/2020 Annualized total return performance presented for investment periods longer than one year. Index Return information obtained from
Bloomberg.
Portfolio Performance: Current Benchmark Performance
City of San Jacinto Total Return: February 2020 - June 30, 2023 Trailing Month
Periodic
Trailing 3-Months
Periodic
Trailing 6-Months
Periodic
Trailing 12-Months
Periodic
Year to Date
Periodic
Total Return Performance
City of San Jacinto Portfolio -0.70% -0.63% 1.04% -0.24% 1.04% ICE BofAML 1-5 Year Tsy/Agy Index -0.73% -0.85% 0.95% -0.42% 0.95% ICE BofAML 1-5 Year AAA-AA US Corp/Govt Index -0.72% -0.83% 0.98% -0.38% 0.98% Trailing 3 Years
Annualized
Trailing 5 Years
Annualized
Since Inception *
Annualized
Total Return Performance
City of San Jacinto Portfolio -1.63% NA -0.51%
ICE BofAML 1-5 Year Tsy/Agy Index -1.78% NA -0.66%
ICE BofAML 1-5 Year AAA-AA US Corp/Govt Index -1.75% NA -0.64%
4.1.a
Packet Pg. 259 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Source: ICE BofA Fixed Income Indices, PTA Public Trust Advisors 2023 © Notes: Account Inception Date: 12/1/2012. Annualized total return performance presented for investment periods longer than one year. Index Return information obtained from
Bloomberg.
City of San Jacinto Total Return: Account Inception - June 30, 2023 Trailing Month
Periodic
Trailing 3-Months
Periodic
Trailing 6-Months
Periodic
Trailing 12-Months
Periodic
Year to Date
Periodic
Total Return Performance
City of San Jacinto Portfolio -0.70% -0.63% 1.04% -0.24% 1.04% Trailing 3 Years
Annualized
Trailing 5 Years
Annualized
Since Inception *
Annualized
Total Return Performance
City of San Jacinto Portfolio -1.63% 0.84% 0.72%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
Trailing Month
Periodic
Trailing 3-Months
Periodic
Trailing 6-Months
Periodic
Trailing 12-Months
Periodic
Year to Date
Periodic
Trailing 3 Years
Annualized
Trailing 5 Years
Annualized
Since Inception *
Annualized
Portfolio Total Return
City of San Jacinto Portfolio
Portfolio Performance: Total Account Performance
4.1.a
Packet Pg. 260 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors 2023 ©
Portfolio Details: Holdings as of June 30, 2023
4.1.a
Packet Pg. 261 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
CASH 0.00%
Receivable
CCYUSD
0.00%
06/30/23
06/30/23
0.00 --
-- 432.16 $432.16$432.16
$432.16
1.00 $432.16
$0.00 $0.00 0.00% N--
0.00%
0.00%
0.00%
AAA
Aaa
CASH TOTAL
06/30/23
06/30/23
0.00 --
-- 432.16 $432.16$432.16
$432.16
1.00 $432.16
$0.00 $0.00 0.00% N--
0.00%
0.00%
0.00%
AAA
Aaa
MMFUND 0.00%
FIRST AMER:GVT OBLG Y
31846V203
4.70%
06/30/23
06/30/23
0.00 --
-- 62,265.76 $62,265.76$62,265.76
$62,265.76
1.00 $62,265.76
$0.00 $0.00 0.58% N--
4.71%
--
--
AAAm
Aaa
MMFUND TOTAL
06/30/23
06/30/23
0.00 --
-- 62,265.76 $62,265.76$62,265.76
$62,265.76
1.00 $62,265.76
$0.00 $0.00 0.58% N--
4.71%
--
--
AAAm
Aaa
US GOV 0.00%
UNITED STATES TREASURY
912828YV6
1.50%
11/30/24
11/30/24
1.37 11/28/22
11/29/22 375,000.00 $353,759.77$359,803.66
$355,971.68
94.93 $356,448.11
$476.43 ($3,831.98) 3.31% N--
4.49%
5.26%
--
AA+
Aaa
UNITED STATES TREASURY
912828YY0
1.75%
12/31/24
12/31/24
1.45 --
-- 320,000.00 312,171.28309,865.85
304,175.00
95.05 304,190.22
15.22 (5,690.85) 2.82% N--
3.93%
5.22%
--
AA+
Aaa
UNITED STATES TREASURY
912828ZC7
1.12%
02/28/25
02/28/25
1.61 --
-- 295,000.00 302,591.21297,790.01
276,470.31
93.72 277,579.57
1,109.26 (21,319.70) 2.58% N--
0.55%
5.10%
--
AA+
Aaa
UNITED STATES TREASURY
912828ZL7
0.38%
04/30/25
04/30/25
1.78 02/24/21
02/26/21 155,000.00 154,461.13154,762.33
142,587.89
91.99 142,685.82
97.93 (12,174.44) 1.32% N--
0.46%
5.00%
--
AA+
Aaa
UNITED STATES TREASURY
912828ZT0
0.25%
05/31/25
05/31/25
1.87 --
-- 425,000.00 423,066.41424,162.87
388,858.40
91.50 388,948.39
89.99 (35,304.47) 3.61% N--
0.35%
4.95%
--
AA+
Aaa
UNITED STATES TREASURY
912828ZW3
0.25%
06/30/25
06/30/25
1.95 11/02/20
11/04/20 255,000.00 253,894.34254,523.45
232,836.91
91.31 232,838.65
1.73 (21,686.54) 2.16% N--
0.34%
4.86%
--
AA+
Aaa
UNITED STATES TREASURY
91282CAB7
0.25%
07/31/25
07/31/25
2.03 10/28/21
10/29/21 175,000.00 170,358.40172,405.08
159,215.82
90.98 159,398.31
182.49 (13,189.26) 1.48% N--
0.97%
4.85%
--
AA+
Aaa
UNITED STATES TREASURY
91282CFE6
3.12%
08/15/25
08/15/25
2.00 03/09/23
03/13/23 170,000.00 163,777.73164,522.64
164,162.89
96.57 166,158.75
1,995.86 (359.75) 1.54% N--
4.74%
4.84%
--
AA+
Aaa
Portfolio Holdings
Supporting Reports 4.1.a
Packet Pg. 262 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
UNITED STATES TREASURY
91282CAT8
0.25%
10/31/25
10/31/25
2.27 01/06/21
01/08/21 60,000.00 59,547.6659,779.62
54,145.31
90.24 54,170.58
25.27 (5,634.31) 0.50% N--
0.41%
4.71%
--
AA+
Aaa
UNITED STATES TREASURY
91282CFW6
4.50%
11/15/25
11/15/25
2.21 --
-- 275,000.00 274,344.53274,347.74
273,528.32
99.46 275,108.82
1,580.50 (819.42) 2.55% N--
4.60%
4.74%
--
AA+
Aaa
UNITED STATES TREASURY
91282CAZ4
0.38%
11/30/25
11/30/25
2.35 02/04/21
02/05/21 205,000.00 204,375.39204,685.15
185,012.50
90.25 185,077.61
65.11 (19,672.65) 1.72% N--
0.44%
4.69%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBC4
0.38%
12/31/25
12/31/25
2.43 02/24/21
02/26/21 155,000.00 153,395.51154,166.88
139,681.64
90.12 139,683.22
1.58 (14,485.24) 1.30% N--
0.59%
4.61%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBH3
0.38%
01/31/26
01/31/26
2.51 03/29/21
03/31/21 125,000.00 122,236.33123,510.42
112,207.03
89.77 112,402.56
195.53 (11,303.39) 1.04% N--
0.84%
4.62%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBQ3
0.50%
02/28/26
02/28/26
2.59 10/28/21
10/29/21 335,000.00 326,520.31329,741.18
300,871.88
89.81 301,431.73
559.85 (28,869.30) 2.80% N--
1.10%
4.60%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBT7
0.75%
03/31/26
03/31/26
2.66 05/06/21
05/10/21 300,000.00 299,566.41299,754.52
271,089.84
90.36 271,655.42
565.57 (28,664.68) 2.52% N--
0.78%
4.51%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBW0
0.75%
04/30/26
04/30/26
2.74 08/05/21
08/09/21 235,000.00 235,688.48235,415.41
211,564.26
90.03 211,861.20
296.94 (23,851.15) 1.97% N--
0.69%
4.54%
--
AA+
Aaa
UNITED STATES TREASURY
91282CCF6
0.75%
05/31/26
05/31/26
2.82 06/03/21
06/07/21 220,000.00 219,028.91219,426.77
197,553.12
89.80 197,692.88
139.75 (21,873.64) 1.83% N--
0.84%
4.52%
--
AA+
Aaa
UNITED STATES TREASURY
91282CHH7
4.12%
06/15/26
06/15/26
2.75 06/22/23
06/26/23 110,000.00 109,248.05109,251.36
108,857.03
98.96 109,055.39
198.36 (394.33) 1.01% N--
4.37%
4.50%
--
AA+
Aaa
UNITED STATES TREASURY
91282CCJ8
0.88%
06/30/26
06/30/26
2.90 10/04/21
10/06/21 125,000.00 124,804.69124,875.56
112,597.66
90.08 112,600.63
2.97 (12,277.90) 1.05% N--
0.91%
4.44%
--
AA+
Aaa
UNITED STATES TREASURY
91282CCP4
0.62%
07/31/26
07/31/26
2.98 09/01/21
09/03/21 335,000.00 332,579.10333,468.77
298,372.46
89.07 299,245.82
873.36 (35,096.31) 2.78% N--
0.78%
4.46%
--
AA+
Aaa
UNITED STATES TREASURY
91282CCZ2
0.88%
09/30/26
09/30/26
3.13 10/28/21
10/29/21 415,000.00 409,050.59411,034.47
371,198.04
89.45 372,110.82
912.77 (39,836.42) 3.45% N--
1.18%
4.39%
--
AA+
Aaa
Portfolio Holdings
4.1.a
Packet Pg. 263 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
UNITED STATES TREASURY
912828U24
2.00%
11/15/26
11/15/26
3.20 05/01/23
05/03/23 110,000.00 103,541.80103,819.76
101,707.03
92.46 101,988.01
280.98 (2,112.72) 0.95% N--
3.79%
4.43%
--
AA+
Aaa
UNITED STATES TREASURY
91282CEC1
1.88%
02/28/27
02/28/27
3.46 03/09/22
03/11/22 335,000.00 335,157.03335,117.81
306,969.92
91.63 309,069.36
2,099.44 (28,147.89) 2.87% N--
1.87%
4.37%
--
AA+
Aaa
UNITED STATES TREASURY
91282CEF4
2.50%
03/31/27
03/31/27
3.50 04/27/22
04/28/22 80,000.00 78,971.8879,205.53
74,946.88
93.68 75,449.61
502.73 (4,258.66) 0.70% N--
2.78%
4.34%
--
AA+
Aaa
UNITED STATES TREASURY
91282CEN7
2.75%
04/30/27
04/30/27
3.57 08/29/22
08/30/22 225,000.00 219,541.99220,465.65
212,466.80
94.43 213,509.26
1,042.46 (7,998.85) 1.98% N--
3.31%
4.34%
--
AA+
Aaa
UNITED STATES TREASURY
91282CET4
2.62%
05/31/27
05/31/27
3.66 06/09/22
06/10/22 200,000.00 196,085.94196,870.81
187,851.56
93.93 188,296.23
444.67 (9,019.25) 1.75% N--
3.05%
4.33%
--
AA+
Aaa
UNITED STATES TREASURY
91282CEW7
3.25%
06/30/27
06/30/27
3.70 07/07/22
07/08/22 135,000.00 136,181.25135,962.94
129,795.12
96.14 129,807.04
11.92 (6,167.83) 1.20% N--
3.06%
4.31%
--
AA+
Aaa
UNITED STATES TREASURY
9128282R0
2.25%
08/15/27
08/15/27
3.84 08/29/22
08/30/22 390,000.00 371,429.30374,353.70
360,384.38
92.41 363,681.06
3,296.69 (13,969.33) 3.38% N--
3.30%
4.28%
--
AA+
Aaa
UNITED STATES TREASURY
91282CAL5
0.38%
09/30/27
09/30/27
4.13 11/28/22
11/29/22 425,000.00 359,158.20366,518.59
361,565.43
85.07 361,966.05
400.61 (4,953.16) 3.36% N--
3.92%
4.25%
--
AA+
Aaa
UNITED STATES TREASURY
91282CFM8
4.12%
09/30/27
09/30/27
3.82 06/22/23
06/26/23 180,000.00 179,690.63179,692.01
178,931.25
99.41 180,797.64
1,866.39 (760.76) 1.68% N--
4.17%
4.28%
--
AA+
Aaa
UNITED STATES TREASURY
91282CFZ9
3.88%
11/30/27
11/30/27
4.00 01/26/23
01/30/23 535,000.00 541,415.82540,922.79
527,246.68
98.55 529,002.60
1,755.93 (13,676.11) 4.91% N--
3.60%
4.24%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBB6
0.62%
12/31/27
12/31/27
4.35 03/09/23
03/13/23 370,000.00 312,635.55315,937.33
316,060.94
85.42 316,067.22
6.28 123.61 2.93% N--
4.23%
4.22%
--
AA+
Aaa
UNITED STATES TREASURY
91282CBS9
1.25%
03/31/28
03/31/28
4.51 05/01/23
05/03/23 250,000.00 223,007.81223,824.03
218,691.40
87.48 219,476.92
785.52 (5,132.62) 2.04% N--
3.67%
4.18%
--
AA+
Aaa
UNITED STATES TREASURY
91282CCE9
1.25%
05/31/28
05/31/28
4.67 06/22/23
06/26/23 75,000.00 65,619.1465,642.86
65,387.70
87.18 65,467.10
79.41 (255.17) 0.61% N--
4.08%
4.16%
--
AA+
Aaa
Portfolio Holdings
4.1.a
Packet Pg. 264 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
UNITED STATES TREASURY
91282CHE4
3.62%
05/31/28
05/31/28
4.44 06/22/23
06/26/23 115,000.00 112,906.64112,912.01
112,448.44
97.78 112,801.53
353.09 (463.57) 1.05% N--
4.04%
4.13%
--
AA+
Aaa
US GOV TOTAL
08/06/26
08/06/26
2.94 --
-- 8,490,000.00 $8,239,809.21$8,268,539.58
$7,815,411.52
92.22 $7,837,724.14
$22,312.62 ($453,128.05) 72.75% N--
2.34%
4.56%
--
AA+
Aaa
GSE 0.00%
FEDERAL HOME LOAN
MORTGAGE CORP
3137EAEP0
1.50%
02/12/25
02/12/25
1.55 02/13/20
02/14/20 300,000.00 $299,769.00$299,923.33
$283,146.28
94.38 $284,883.78
$1,737.50 ($16,777.04) 2.64% N--
1.52%
5.17%
--
AA+
Aaa
FEDERAL HOME LOAN BANKS
3130AJHU6
0.50%
04/14/25
04/14/25
1.74 04/15/20
04/16/20 225,000.00 223,884.00224,596.91
208,131.23
92.50 208,371.86
240.62 (16,465.68) 1.93% N--
0.60%
4.93%
--
AA+
Aaa
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
3135G05X7
0.38%
08/25/25
08/25/25
2.09 08/25/20
08/27/20 415,000.00 413,057.80414,157.63
377,546.37
90.98 378,091.06
544.69 (36,611.26) 3.51% N--
0.47%
4.84%
--
AA+
Aaa
GSE TOTAL
05/22/25
05/22/25
1.83 --
-- 940,000.00 $936,710.80$938,677.87
$868,823.89
92.45 $871,346.70
$2,522.81 ($69,853.98) 8.09% N--
0.84%
4.97%
--
AA+
Aaa
GSE MBS 0.00%
FHMS K-033 A2
3137B4WB8
3.06%
07/01/23
07/25/23
0.07 12/12/19
12/17/19 13,287.54 $13,741.71$13,287.54
$13,239.01
99.63 $13,272.89
$33.88 ($48.53) 0.12% Y--
0.14%
--
--
AA+
Aaa
FHMS K-725 A2
US3137BWWD24
3.00%
01/01/24
01/25/24
0.48 12/12/19
12/17/19 270,974.61 279,696.61271,634.56
266,986.65
98.53 267,664.54
677.89 (4,647.91) 2.48% Y--
2.12%
--
--
AAA
Aaa
GSE MBS TOTAL
12/23/23
01/16/24
0.47 12/12/19
12/17/19 284,262.15 $293,438.31$284,922.10
$280,225.66
98.58 $280,937.43
$711.77 ($4,696.44) 2.61% Y--
2.03%
--
--
AAA
Aaa
MUNI 0.00%
CALIFORNIA ST
13063D3N6
4.85%
03/01/27
03/01/27
3.28 03/09/23
03/15/23 120,000.00 $120,000.00$120,000.00
$119,715.60
99.76 $121,427.85
$1,712.25 ($284.40) 1.13% N--
4.85%
4.92%
--
AAAa2
CONNECTICUT ST
20772KTJ8
5.05%
05/15/27
05/15/27
3.48 06/01/23
06/22/23 60,000.00 61,152.0061,145.16
60,639.60
101.07
60,715.35
75.75 (505.56) 0.56% N--
4.51%
4.74%
--
AAAa3
Portfolio Holdings
4.1.a
Packet Pg. 265 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
MUNI TOTAL
03/26/27
03/26/27
3.35 --
-- 180,000.00 $181,152.00$181,145.16
$180,355.20
100.20
$182,143.20
$1,788.00 ($789.96) 1.69% N--
4.73%
4.86%
--
AAAa2
CORP 0.00%
PEPSICO INC
713448FB9
0.40%
10/07/23
10/07/23
0.27 10/06/20
10/07/20 85,000.00 $84,951.55$84,995.65
$84,017.14
98.84 $84,096.47
$79.33 ($978.52) 0.78% N--
0.42%
4.74%
--
A+
A1
CATERPILLAR FINANCIAL
SERVICES CORP
14913R2S5
0.95%
01/10/24
01/10/24
0.51 01/03/22
01/10/22 110,000.00 109,982.40109,995.35
107,404.53
97.64 107,900.91
496.38 (2,590.82) 1.00% N--
0.96%
5.55%
--
A
A2
AMAZON.COM INC
023135BW5
0.45%
05/12/24
05/12/24
0.84 05/11/21
05/12/21 145,000.00 144,788.30144,938.70
139,009.49
95.87 139,098.30
88.81 (5,929.21) 1.29% N--
0.50%
5.39%
--
AA
A1
PACCAR FINANCIAL CORP
69371RR81
3.15%
06/13/24
06/13/24
0.92 06/06/22
06/13/22 140,000.00 139,967.80139,984.45
137,019.98
97.87 137,240.48
220.50 (2,964.46) 1.27% N--
3.16%
5.47%
--
A+
A1
PACCAR FINANCIAL CORP
69371RR40
0.50%
08/09/24
08/09/24
1.07 08/03/21
08/09/21 100,000.00 99,946.0099,979.97
94,657.46
94.66 94,854.68
197.22 (5,322.51) 0.88% N--
0.52%
5.54%
--
A+
A1
CATERPILLAR FINANCIAL
SERVICES CORP
14913R2P1
0.60%
09/13/24
09/13/24
1.17 09/08/21
09/14/21 180,000.00 179,755.20179,901.35
169,886.91
94.38 170,210.91
324.00 (10,014.43) 1.58% N--
0.65%
5.49%
--
A
A2
TOYOTA MOTOR CREDIT
CORP
89236TJN6
0.62%
09/13/24
09/13/24
1.17 09/08/21
09/13/21 280,000.00 279,868.40279,947.02
264,406.00
94.43 264,931.00
525.00 (15,541.02) 2.46% N--
0.64%
5.47%
--
A+
A1
AMAZON.COM INC
023135CE4
3.00%
04/13/25
04/13/25
1.70 04/11/22
04/13/22 295,000.00 294,530.95294,716.06
284,535.39
96.45 286,452.89
1,917.50 (10,180.67) 2.66% N--
3.06%
5.10%
--
AA
A1
HOME DEPOT INC
437076CM2
2.70%
04/15/25
04/15/25
1.70 03/24/22
03/28/22 60,000.00 59,895.0059,937.64
57,534.15
95.89 57,876.15
342.00 (2,403.49) 0.54% Y03/15/25
2.76%
5.13%
5.25%
A
A2
COLGATE-PALMOLIVE CO
194162AM5
3.10%
08/15/25
08/15/25
2.00 08/01/22
08/09/22 45,000.00 44,958.6044,970.59
43,315.53
96.26 43,842.53
527.00 (1,655.06) 0.41% N--
3.13%
4.98%
--
AAAa3
PEPSICO INC
713448FQ6
4.55%
02/13/26
02/13/26
2.34 02/13/23
02/15/23 120,000.00 119,930.40119,938.43
119,648.67
99.71 121,711.34
2,062.67 (289.76) 1.13% Y01/13/26
4.57%
4.67%
4.67%
A+
A1
Portfolio Holdings
4.1.a
Packet Pg. 266 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Public Trust Advisors
07/01/2022 to 06/30/2023
City of San Jacinto
Description
Identifier
Coupon
Effective
Maturity
Final Maturity
Duration
Trade Date
Settle Date
Par Value Original Cost
Book Value
Market Value
Market Price
MV + Accrued
Accrued Balance
Net Unrealized
Gain/Loss
% of Market
Value
Callable
Next Call Date
Book Yield
YTM
YTC
S&P
Moody's
COLGATE-PALMOLIVE CO
194162AQ6
4.80%
03/02/26
03/02/26
2.44 02/27/23
03/01/23 30,000.00 29,965.2029,968.84
30,099.09
100.33
30,579.09
480.00 130.25 0.28% N--
4.84%
4.66%
--
AAAa3
CORP TOTAL
11/03/24
11/03/24
1.28 --
-- 1,590,000.00 $1,588,539.80$1,589,274.05
$1,531,534.34
96.36 $1,538,794.75
$7,260.41 ($57,739.71) 14.28% --
1.83%
5.26%
4.86%
A+
A1
PORTFOLIO TOTAL
03/04/26
03/05/26
2.54 --
-- 11,546,960.07 $11,302,348.04$11,325,256.68
$10,739,048.53
92.60 $10,773,644.14
$34,595.61 ($586,208.15) 100.00% --
2.19%
4.71%
4.85%
AA
Aa1
Portfolio Holdings
4.1.a
Packet Pg. 267 Attachment: Public Trust Advisors Portfolio Review - 063023 (Investment Portfolio Review with Advisors) CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending June 30, 2023
City of San Jacinto, California
4.1.b
Packet Pg. 268 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
Table of Contents As of June 30, 2023
1 4.1.b
Packet Pg. 269 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors)
SECTION
| Section 1 | Economic Update
2 4.1.b
Packet Pg. 270 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Economic Update
Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market.
Inflationary trends are subsiding, but core levels remain well above the Fed’s target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will remain data dependent as they tread cautiously going forward.
As anticipated at the September meeting, the Federal Open Market Committee voted unanimously to maintain the target Federal Funds at the range of 5.25 - 5.50%. The Fed’s Summary of Economic Projections (SEP) also revealed expectations of higher economic growth, reduced unemployment, and a gradual easing of inflation compared to earlier forecasts. The Fed is continuing to focus on achieving price stability and bringing inflation down toward their 2% policy objective, while leaving the option open for the possibility of additional rate hikes in the future if needed.
The yield curve remained inverted in September. The 2-year Treasury yield increased 18 basis points to 5.05%, the 5-year Treasury yield rose 36 basis points to 4.61%, and the 10-year Treasury yield increased 46 basis points to 4.57%. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -48 basis points at September month-end versus -76 basis points at August monthend. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -45 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in August. The shape of the yield curve indicates that the probability of recession persists.
3 4.1.b
Packet Pg. 271 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Employment
-400
-200
0 200
400
600
800
1,000 MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 336,000 jobs in September, exceeding consensus expectations of 170,000, and the last two months were revised upward by 119,000 jobs. The largest gains came from leisure and hospitality, bringing restaurant and bar employment back in-line with pre-pandemic levels. The pace of job growth has picked up recently, with the three-month moving average payrolls at 266,000 and the sixmonth moving average at 234,000. The unemployment rate was unchanged at 3.8%, and the labor participation rate was consistent with last month’s report at 62.8%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons declined slightly to 7.0% from the prior month at 7.1%. Average hourly earnings declined to
4.2% year-over-year in September from 4.3% in August. Employment remains strong by historical standards.
Source: US Department of Labor Source: US Department of Labor 4 4.1.b
Packet Pg. 272 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Job Openings & Labor Turnover Survey
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) unexpectedly increased to 9.61 million in August from a revised
8.92 million in July. The level significantly surpassed the survey of Bloomberg economists’ expectations of 8.82 million and reflects approximately 1.5 job openings per available worker. Although JOLTS was an upside surprise, the quits rate remained at a benign 2.3% for August, well below its 3.0% peak in April 2022. Fewer quits can imply that workers are less confident in their ability to find another job in the current market. The current level of job openings remains elevated from a historical perspective.
Source: US Department of Labor
5 4.1.b
Packet Pg. 273 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Inflation
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) increased in September by 0.4% month-over-month and 3.7% year-over-year, slightly higher than expected. Gains in shelter and energy costs accounted for a large part of the monthly increase. The Core CPI, which excludes volatile food and energy components, was up 0.3% month-over-month and 4.1% year-over-year, decelerating from 4.3% last month. The Personal Consumption Expenditures (PCE) index rose 0.4% month-over-month and 3.4% year-over-year in September, unchanged from August. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 0.3% month-over-month and decelerated to 3.7% year-over-year in September from a 3.8% increase in August. Personal income and spending remained relatively healthy, but the personal savings rate continued its declining trend to 3.4% in September from 4.0% in August. Inflation remains above the Fed's 2% target.
Source: US Department of Labor Source: US Department of Commerce 6 4.1.b
Packet Pg. 274 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Consumer
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
Retail Sales rose 0.7% in September after an upward revision to 0.8% in August, exceeding the consensus forecast. Control Group Sales, which are used to calculate gross domestic product and exclude food services, auto dealers, building materials stores and gasoline stations, rebounded 0.6% and reflected broad increases across sectors. On a year-over-year basis, Retail Sales growth accelerated 3.8% in September versus an upwardly revised 2.9% gain in August. The Conference Board’s Consumer Confidence Index dropped more than expected to 103.0 in September from an upwardly revised 108.7 in August, primarily due to significantly weaker future expectations for employment. While the consumer has been resilient, dwindling excess savings, rising credit card balances, and the resumption of student loan payments pose potential headwinds to future economic growth. 80 90
100
110
120
130
140
Index Level
Consumer Confidence
Source: US Department of Commerce Source: The Conference Board 7 4.1.b
Packet Pg. 275 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Leading Indicators of Economic Activity
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell 0.7% in September, continuing the persistent decline for the last year and a half. The index declined 7.8% year-over-year. The consistent decline month-over-month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) surprised to the upside at 0.02 in September from a downwardly revised -0.22 in August. On a 3-month moving average basis, the CFNAI improved to 0.00 in September, indicating a rate of growth about equal to the historical average trend.
Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 4.1.b
Packet Pg. 276 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Housing
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing Starts recovered 7% in September to an annual rate of 1.358 million units. Starts were up 17.6% for multi-family units and 3.2% for single-family. Total starts of new homes are down 7.2% year-over-year. According to Freddie Mac, average 30-year fixed rate mortgage rates increased to 7.71% as of October 19th. According to the Case-Shiller 20-City Home Price Index, housing prices rose 0.1% year-over-year in July, improving from a 1.2% decline in June. Tight inventories and higher mortgage rates continue to impact affordability.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change
9 4.1.b
Packet Pg. 277 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Survey Based Measures
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index remained in contraction territory at 49.0 in September, up from 47.6 in August. This is the eleventh consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector.
However, this is the highest reading since November 2022, as both employment and new orders improved, while prices paid subsided.
The ISM Services Index eased to 53.6 in September from the six-month high of 54.5 in August. The prices paid component continued to grow primarily due to high labor costs and an uptick in energy costs, but new orders reflected a significant slowdown.
Source: Institute for Supply Management
10 4.1.b
Packet Pg. 278 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Gross Domestic Product (GDP)
Components of GDP 12/22 3/23 6/23 9/23
0.8% 2.5% 0.6% 2.7%
0.6% -1.7% 0.9% 1.5%
0.3% 0.6% 0.0% -0.1%
0.6% 0.3% 0.1% 0.4%
0.3% 0.5% 0.5% 0.4%
2.6% 2.3% 2.1% 4.9%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce According to the “advance” estimate, third quarter GDP exceeded expectations at an annualized rate of 4.9%, following 2.1% in the second quarter, marking the fastest growth in nearly two years. The largest contributor to the rise was the 4.0% increase in consumer spending across both goods and services. Almost all the major components made a positive contribution to GDP, except for a small decline in net exports. The consensus estimate calls for a marked slowing to 0.8% in the fourth quarter and 2.2% for full year 2023. 11 4.1.b
Packet Pg. 279 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Federal Reserve
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
At the September meeting, the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 - 5.50%. Nonetheless, the Fed conveyed a consensus view that another rate hike is possible later in the year, along with its commitment to keeping rates at their current level until inflation subsides closer to its 2% target, endorsing a data-dependent 'higher-forlonger' strategy. The Fed’s Summary of Economic Projections (SEP) also revealed expectations of higher economic growth, reduced unemployment, and a gradual easing of inflation compared to earlier forecasts. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for or will tighten policy further to curb inflation. Since the Federal Reserve began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1 trillion to $8.024T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
12 4.1.b
Packet Pg. 280 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Bond Yields
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Sep-23
Jun-23
Sep-22
Yield (%)
At the end of September, the 2-year Treasury yield was 77 basis points higher, and the 10-Year Treasury yield was about 74 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -48 basis points at September month-end versus -76 basis points at August month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in August. The shape of the yield curve indicates that the probability of recession persists. 13 4.1.b
Packet Pg. 281 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Section 2| SECTION | Section 2 | Account Profile
14 4.1.b
Packet Pg. 282 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return over a market cycle that equals or exceeds the benchmark, the ICE BofA 1-5 Year US Treasury & Agency Index.
Investment Objectives
The City of San Jacinto’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code.
As of June 30, 2023
15 4.1.b
Packet Pg. 283 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Compliance As of June 30, 2023
Category Standard Comment
U.S. Treasuries No limitations; Full faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agencies
No Limitations; Federal agencies or U.S. government-sponsored enterprise obligations, participations, or other instruments, including those issued or fully guaranteed as to principal and interest by federal agencies or U.S. government sponsored enterprises.
Complies
Supranational Obligations
"AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB")
Complies
Municipal Securities "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer Complies Corporate Medium Term Notes
"A" rating category or better by at least two NRSROs; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.
Complies
Asset-Backed (ABS), Mortgage-Backed
Securities; Mortgage Pass-Throughs;
Collateralized Mortgage Obligations
(CMOs)
"AA" rating category or better by at least two NRSROs; "A" issuer rating category or higher by at least two NRSROs; 20% maximum; 5% max per issuer Complies
Negotiable Certificates of Deposit
(NCD)
"A" long-term issuer rating category or higher by at least two NRSROs; and/or "A-1" short term rated or higher by at least two NRSROs; 30% maximum; 5% max per issuer Complies Certificate of Deposit Placement
Service (CDARS) 30% max (combination of Certificates of Deposit, including CDARS) Complies FDIC Insured Time Deposits (Nonnegotiable CD/TD)
20% maximum (combined FDIC insured and collateralized TD/ CD); Amount per institution is limited to maximum covered under federal insurance Complies
Collateralized Time Deposits (Nonnegotiable CD/TD)"A" long-term debt rating category or higher by at least two NRSROs; and/or "A-1" short term debt rated or higher by at least two NRSROs; 20% maximum (combined FDIC and collateralized TD/ CD) Complies Collateralized Bank Deposits City's deposits with financial institutions will be collateralized with pledged securities per California Government Code Complies
Banker’s Acceptances "A-1" short term debt rated or higher by at least two NRSROs; and "A" long-term debt rated or higher by at least two NRSROs; 40% maximum; 5% max per issuer; 180 days max maturity Complies Commercial Paper
"A-1" short term debt rated or higher by at least two NRSROs; and "A" long-term debt rated or higher by at least two NRSROs; 25% maximum; 5% max per issuer; 270 days max maturity; Issuer is a corporation organized and operating in the U.S. with assets > $500 million
Complies
City of San Jacinto
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 16 4.1.b
Packet Pg. 284 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Compliance As of June 30, 2023
Category Standard Comment
Money Market Mutual Funds
Registered with SEC under Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing money market mutual funds with AUM >$500 million; 20% max combined Money Market Mutual Funds and Mutual Funds; 20% max per Money Market Mutual Fund
Complies
Mutual Funds
Invest in securities as authorized under CGC, Section 53601 (a) to (k) and (m) to (q) inclusive and meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience investing in securities authorized by CGC, Section 53601 and with AUM >$500 million; 20% max combined Money Market Mutual Funds and Mutual Funds; 10% max per Mutual Fund Complies
Local Agency Investment Fund (LAIF) 70% of the portfolio may be invested in LAIF, up to the maximum permitted balance; Not used by investment adviser Complies Local Government Investment Pools
and Joint Powers Authority Pools
Riverside County Investment Fund- 70% max of the total portfolio JPA Pools- 50% max of the total portfolio Complies
Repurchase Agreements 102% collateralized; 1 year max maturity Complies Prohibited Securities
Any investments not specifically described in the policy; Futures and options; Inverse floaters; Ranges notes, Interest-only strips from mortgaged backed securities; Zero interest accrual securities if held to maturity; Margin purchasing or selling; Reverse repurchase agreements; Foreign currency denominated securities Complies
Max Callables 20% maximum callable securities (does not include "make whole call" securities) Complies Max Per Issuer 5% of portfolio per issuer (except U.S. Government, its Agencies and enterprises, Money Market Mutual Funds, Mutual Funds, LAIF, LGIP, Supranationals, or unless otherwise specified in the investment policy) Complies Maximum Maturity 5 years Complies
City of San Jacinto
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 17 4.1.b
Packet Pg. 285 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Portfolio Characteristics
City of San Jacinto
06/30/23 03/31/23
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.64 2.63 2.53
Average Modified Duration 2.49 2.38 2.30
Average Purchase Yield n/a 1.92% 1.72%
Average Market Yield 4.74% 4.91% 4.26%
Average Quality** AAA AA/Aa1 AA+/Aa1
Total Market Value 10,807,852 10,857,852
*ICE BofA 1-5 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of June 30, 2023
18 4.1.b
Packet Pg. 286 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) City of San Jacinto
Sector Distribution
ABS
4.0%
Agency
30.5%
Corporate
22.5%
Money Market
Fund
0.1%
Supranational
1.9%
US Treasury
41.0%
June 30, 2023 March 31, 2023
ABS
4.8%
Agency
32.5%
Corporate
19.2%
Money Market
Fund
0.3%
Supranational
1.9%
US Treasury
41.2%
As of June 30, 2023
19 4.1.b
Packet Pg. 287 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Duration Allocation As of June 30, 2023
City of San Jacinto
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 06/30/23 1.4% 1.0% 10.4% 30.5% 24.6% 18.8% 13.3% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
Corporate
Money Market Fund
Supranational
US Treasury
20 4.1.b
Packet Pg. 288 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Portfolio Allocation & Duration Changes
City of San Jacinto
As of June 30, 2023
Benchmark: ICE BofA 1-5 Yr US Treasury & Agency Index
95.5%
91.3% 91.7% 92.2%
96.8%
99.2% 99.0%
101.3%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
110.0%
09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 06/30/23 Duration as a % of the Benchmark
0.3%
1.9%
4.8%
19.2%
32.5%
41.2%
0.1%
1.9%
4.0%
22.5%
30.5%
41.0%
Money Market
Fund
Supranational
ABS
Corporate
Agency
US Treasury
Portfolio Allocation
06/30/23
03/31/23
21 4.1.b
Packet Pg. 289 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of San Jacinto ICE BofA 1-5 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 1.4% 1.0% 10.4% 30.5% 24.6% 18.8% 13.3% 0.0%
Benchmark* 0.0% 0.0% 1.7% 36.4% 26.5% 21.3% 14.1% 0.0%
*ICE BofA 1-5 Yr US Treasury & Agency Index
Duration Distribution
City of San Jacinto
As of June 30, 2023
22 4.1.b
Packet Pg. 290 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Issue Name Investment Type % Portfolio
Government of United States US Treasury 40.95%
Federal Home Loan Bank Agency 13.07%
Federal National Mortgage Association Agency 12.13%
Federal Home Loan Mortgage Corp Agency 5.31%
Inter-American Dev Bank Supranational 1.92%
Apple Inc Corporate 1.89%
Wal-Mart Stores Corporate 1.81%
Royal Bank of Canada Corporate 1.71%
Toronto Dominion Holdings Corporate 1.64%
Deere & Company Corporate 1.39%
John Deere ABS ABS 1.38%
Nextera Energy Capital Corporate 1.37%
Amazon.com Inc Corporate 1.33%
Public Service El & Gas Corporate 1.33%
JP Morgan Chase & Co Corporate 1.32%
Honeywell Corp Corporate 1.29%
Northern Trust Corp Corporate 1.17%
Honda ABS ABS 1.14%
Berkshire Hathaway Corporate 1.13%
Toyota Motor Corp Corporate 0.99%
Charles Schwab Corp/The Corporate 0.73%
Toyota ABS ABS 0.73%
United Health Group Inc Corporate 0.70%
MasterCard Inc Corporate 0.66%
Morgan Stanley Corporate 0.56%
Target Corp Corporate 0.56%
BMW Vehicle Lease Trust ABS 0.40%
Mercedes-Benz Auto Lease Trust ABS 0.34%
Prologis Trust Corporate 0.32%
State Street Bank Corporate 0.31%
Merck & Company Corporate 0.27%
First American Govt Oblig Fund Money Market Fund 0.13%
TOTAL 100.00%
Issuers
City of San Jacinto – Account #10167
As of June 30, 2023
23 4.1.b
Packet Pg. 291 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) AAA AA
A <A NR
06/30/23 3.8% 77.6% 16.0% 0.0% 2.5%
03/31/23 4.4% 79.9% 13.0% 0.0% 2.6%
Source: S&P Ratings
June 30, 2023 vs. March 31, 2023
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AAA <A NR
06/30/23 03/31/23
Quality Distribution
City of San Jacinto
As of June 30, 2023
24 4.1.b
Packet Pg. 292 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Total Rate of Return Annualized Since Inception June 30, 2012 *ICE BofA 1-3 Yr US Treasury Index to 3/31/20; then ICE BofA 1-5 Yr US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment Performance
City of San Jacinto
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
12 months 2 years 3 years 5 years 10 years Since Inception City of San Jacinto San Jacinto 1-5 Yr US Tsy & Agy Blended Index* San Jacinto 1-5 Yr AAA-A US Corp & Govt Blend* Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of San Jacinto -0.43% 0.32% -2.12% -1.42% 0.94% 0.87% 0.82% San Jacinto 1-5 Yr US Tsy & Agy Blended Index* -0.85% -0.42% -2.53% -1.78% 0.53% 0.56% 0.54% San Jacinto 1-5 Yr AAA-A US Corp & Govt Blend* -0.77% -0.24% -2.52% -1.71% 0.61% 0.68% 0.68% As of June 30, 2023
25 4.1.b
Packet Pg. 293 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors)
SECTION
| Section 3
| Portfolio Holdings
26 4.1.b
Packet Pg. 294 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
47789KAC7 John Deere Owner Trust 2020-A A3
1.100% Due 08/15/2024
421.00 03/04/2020
1.11%
420.97
420.99
99.83 7.52%
420.27
0.21 0.00%
(0.72)
Aaa / NR
AAA
1.13 0.03
89237VAB5 Toyota Auto Receivables Trust 2020-C A3
0.440% Due 10/15/2024
6,634.48 07/21/2020
0.44%
6,633.96
6,634.32
99.31 6.03%
6,588.95
1.30 0.06%
(45.37)
Aaa / AAA
NR
1.30 0.12
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
20,802.55 09/22/2020
0.38%
20,799.49
20,802.18
98.61 5.95%
20,514.33
2.78 0.19%
(287.85)
NR / AAA
AAA
1.30 0.25
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
2,308.91 07/14/2020
0.52%
2,308.56
2,308.86
99.28 5.17%
2,292.32
0.52 0.02%
(16.54)
Aaa / NR
AAA
1.38 0.15
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3
0.400% Due 11/15/2024
36,963.09 06/22/2021
0.40%
36,960.30
36,962.50
98.41 6.13%
36,376.71
6.57 0.34%
(585.79)
NR / AAA
AAA
1.38 0.27
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
15,709.77 09/08/2021
0.34%
15,708.14
15,709.42
98.70 6.39%
15,506.30
0.86 0.14%
(203.12)
Aaa / NR
AAA
1.49 0.21
89236XAC0 Toyota Auto Receivables 2020-D A3
0.350% Due 01/15/2025
9,006.35 10/06/2020
0.36%
9,004.67
9,005.74
98.94 6.01%
8,910.72
1.40 0.08%
(95.02)
NR / AAA
AAA
1.55 0.19
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
28,598.10 01/11/2022
1.11%
28,593.83
28,596.66
98.29 5.84%
28,109.07
5.24 0.26%
(487.59)
NR / AAA
AAA
1.74 0.36
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
12,129.62 02/17/2021
0.27%
12,129.41
12,129.57
97.65 6.18%
11,844.90
0.91 0.11%
(284.67)
Aaa / NR
AAA
1.81 0.39
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
30,265.78 02/02/2021
0.27%
30,260.16
30,264.50
97.82 5.87%
29,605.20
3.50 0.27%
(659.30)
Aaa / NR
AAA
1.88 0.39
47788UAC6 John Deere Owner Trust 2021-A A3
0.360% Due 09/15/2025
22,604.35 03/02/2021
0.37%
22,600.00
22,602.79
97.07 6.12%
21,942.68
3.62 0.20%
(660.11)
Aaa / NR
AAA
2.21 0.50
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
35,000.00 11/16/2021
0.89%
34,992.62
34,996.26
95.98 5.92%
33,592.34
8.56 0.31%
(1,403.92)
Aaa / NR
AAA
2.56 0.80
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
38,942.00 07/13/2021
0.52%
38,938.53
38,940.38
95.80 6.12%
37,305.93
9.00 0.35%
(1,634.45)
Aaa / NR
AAA
2.71 0.75
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
35,000.00 11/09/2021
0.71%
34,999.25
34,999.62
95.77 6.14%
33,518.21
11.04 0.31%
(1,481.41)
NR / AAA
AAA
2.79 0.78
43815BAC4 Honda Auto Receivables Trust 2022-1 A3
1.880% Due 05/15/2026
60,000.00 02/15/2022
1.89%
59,990.98
59,994.76
95.55 5.87%
57,330.36
50.13 0.53%
(2,664.40)
Aaa / AAA
NR
2.88 1.13
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
45,000.00 03/10/2022
2.34%
44,990.05
44,993.72
96.32 5.88%
43,345.49
46.40 0.40%
(1,648.23)
Aaa / NR
AAA
3.22 1.04
As of June 30, 2023
27 4.1.b
Packet Pg. 295 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
45,000.00 07/12/2022
3.77%
44,995.70
44,996.84
97.15 5.73%
43,719.48
74.80 0.41%
(1,277.36)
Aaa / NR
AAA
3.64 1.46
TOTAL ABS 444,386.00 1.24%
444,326.62
444,359.11 5.97%
430,923.26
226.84
3.99%
(13,435.85)
Aaa / AAA
AAA
2.42 0.73
Agency
313383YJ4 FHLB Note
3.375% Due 09/08/2023
80,000.00 12/27/2018
2.73%
82,252.00
80,090.61
99.62 5.37%
79,693.44
847.50
0.75%
(397.17)
Aaa / AA+
NR
0.19 0.19
3135G0V34 FNMA Note
2.500% Due 02/05/2024
375,000.00 03/24/2020
0.82%
398,835.00
378,696.79
98.23 5.55%
368,360.25
3,802.08
3.44%
(10,336.54)
Aaa / AA+
AAA
0.60 0.57
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
210,000.00 Various
1.96%
219,055.20
211,733.55
97.57 5.52%
204,896.16
285.10
1.90%
(6,837.39)
Aaa / AA+
NR
0.96 0.92
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
150,000.00 10/29/2019
1.76%
157,737.00
151,912.52
97.17 5.33%
145,749.00
1,293.75
1.36%
(6,163.52)
Aaa / AA+
AAA
1.21 1.15
3130A3GE8 FHLB Note
2.750% Due 12/13/2024
250,000.00 12/16/2019
1.77%
261,672.50
253,399.94
96.46 5.31%
241,146.00
343.75
2.23%
(12,253.94)
Aaa / AA+
NR
1.46 1.40
3135G0X24 FNMA Note
1.625% Due 01/07/2025
225,000.00 01/16/2020
1.69%
224,298.00
224,785.19
94.82 5.22%
213,337.13
1,767.19
1.99%
(11,448.06)
Aaa / AA+
AAA
1.53 1.46
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
245,000.00 02/13/2020
1.52%
244,811.35
244,938.81
94.40 5.16%
231,273.63
1,418.96
2.15%
(13,665.18)
Aaa / AA+
AAA
1.62 1.55
3135G03U5 FNMA Note
0.625% Due 04/22/2025
310,000.00 Various
0.63%
309,949.40
309,984.93
92.48 5.02%
286,692.96
371.35
2.66%
(23,291.97)
Aaa / AA+
AAA
1.81 1.76
3130AJKW8 FHLB Note
0.500% Due 06/13/2025
225,000.00 06/24/2020
0.52%
224,824.50
224,931.02
91.48 5.14%
205,828.65
56.25 1.90%
(19,102.37)
Aaa / AA+
AAA
1.96 1.90
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
145,000.00 07/21/2020
0.48%
144,277.90
144,702.69
91.24 4.90%
132,296.41
241.67
1.23%
(12,406.28)
Aaa / AA+
AAA
2.06 2.00
3135G05X7 FNMA Note
0.375% Due 08/25/2025
230,000.00 08/25/2020
0.47%
228,923.60
229,536.16
90.99 4.83%
209,288.27
301.88
1.94%
(20,247.89)
Aaa / AA+
AAA
2.16 2.09
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
230,000.00 09/23/2020
0.44%
229,307.70
229,690.67
90.74 4.80%
208,694.41
234.79
1.93%
(20,996.26)
Aaa / AA+
AAA
2.24 2.17
3135G06G3 FNMA Note
0.500% Due 11/07/2025
250,000.00 11/09/2020
0.57%
249,105.00
249,577.32
90.63 4.76%
226,579.25
187.50
2.10%
(22,998.07)
Aaa / AA+
AAA
2.36 2.29
3130ATS57 FHLB Note
4.500% Due 03/10/2028
325,000.00 Various
3.91%
333,444.50
333,039.43
100.96
4.27%
328,131.38
4,509.38
3.08%
(4,908.05)
Aaa / AA+
AAA
4.70 4.14
As of June 30, 2023
28 4.1.b
Packet Pg. 296 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130AWC24 FHLB Note
4.000% Due 06/09/2028
200,000.00 06/27/2023
4.11%
198,982.00
198,983.69
99.38 4.14%
198,755.00
666.67
1.85%
(228.69)
Aaa / AA+
NR
4.95 4.43
TOTAL Agency 3,450,000.00 1.52%
3,507,475.65
3,466,003.32 5.01%
3,280,721.94
16,327.82
30.51%
(185,281.38)
Aaa / AA+
AAA
2.08 1.95
Corporate
24422EUR8 John Deere Capital Corp Note
3.450% Due 01/10/2024
150,000.00 03/14/2019
2.95%
153,322.50
150,364.55
98.80 5.79%
148,197.45
2,458.13
1.39%
(2,167.10)
A2 / A
A+
0.53 0.50
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024
0.750% Due 03/18/2024
40,000.00 03/16/2021
0.77%
39,980.00
39,995.24
96.47 5.84%
38,589.96
85.83 0.36%
(1,405.28)
A2 / AA0.72
0.69 023135BW5 Amazon.com Inc Note
0.450% Due 05/12/2024
90,000.00 05/10/2021
0.50%
89,868.60
89,962.11
95.87 5.39%
86,285.61
55.13 0.80%
(3,676.50)
A1 / AA
AA0.870.84
46625HJX9 JP Morgan Chase Note
3.625% Due 05/13/2024
145,000.00 12/19/2019
2.20%
153,560.80
146,693.99
98.23 5.73%
142,436.69
700.83
1.32%
(4,257.30)
A1 / AAA0.87
0.84 78015K7H1 Royal Bank of Canada Note
1.150% Due 06/10/2025
200,000.00 10/14/2021
1.17%
199,878.00
199,934.92
92.31 5.37%
184,620.60
134.17
1.71%
(15,314.32)
A1 / A
AA1.951.88
931142EW9 Wal-Mart Stores Note
3.900% Due 09/09/2025
30,000.00 09/06/2022
3.92%
29,979.00
29,984.65
98.00 4.87%
29,401.29
364.00
0.28%
(583.36)
Aa2 / AA
AA
2.20 2.05
857477BR3 State Street Bank Callable Note Cont 2/6/2025
1.746% Due 02/06/2026
35,000.00 02/02/2022
1.75%
35,000.00
35,000.00
93.69 5.93%
32,792.55
246.14
0.31%
(2,207.45)
A1 / A
AA2.611.53
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
30,000.00 Various
1.08%
30,097.10
30,056.10
90.43 4.75%
27,129.15
44.08 0.25%
(2,926.95)
A3 / A+
A
2.88 2.76
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
120,000.00 06/15/2021
1.13%
119,947.20
119,968.68
89.41 5.01%
107,294.52
48.75 0.99%
(12,674.16)
A1 / A+
A+
2.97 2.85
61747YET8 Morgan Stanley Callable Note Cont 7/17/2025
4.679% Due 07/17/2026
60,000.00 07/18/2022
4.68%
60,000.00
60,000.00
98.13 5.66%
58,877.28
1,278.93
0.56%
(1,122.72)
A1 / AA+3.05
1.88 89114TZG0 Toronto-Dominion Bank Note
1.250% Due 09/10/2026
200,000.00 11/17/2021
1.70%
195,888.00
197,267.25
88.40 5.24%
176,796.40
770.83
1.64%
(20,470.85)
A1 / A
AA3.203.04
931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
30,000.00 09/08/2021
1.09%
29,943.30
29,963.55
89.28 4.68%
26,784.84
91.00 0.25%
(3,178.71)
Aa2 / AA
AA
3.22 3.08
87612EBM7 Target Corp Callable Note Cont 12/15/2026
1.950% Due 01/15/2027
65,000.00 01/19/2022
1.99%
64,889.50
64,921.31
91.54 4.56%
59,502.56
584.46
0.56%
(5,418.75)
A2 / A
A
3.55 3.32
037833CJ7 Apple Inc Callable Note Cont 11/9/2026
3.350% Due 02/09/2027
210,000.00 10/05/2022
4.38%
201,528.60
202,954.74
96.03 4.56%
201,653.55
2,774.92
1.89%
(1,301.19)
Aaa / AA+
NR
3.62 3.30
As of June 30, 2023
29 4.1.b
Packet Pg. 297 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027
2.450% Due 03/03/2027
45,000.00 03/01/2022
2.47%
44,951.40
44,964.31
89.58 5.63%
40,309.70
361.38
0.38%
(4,654.61)
A2 / AA3.68
3.40 084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027
2.300% Due 03/15/2027
130,000.00 03/07/2022
2.30%
129,975.30
129,981.70
93.51 4.21%
121,563.00
880.39
1.13%
(8,418.70)
Aa2 / AA
A+
3.71 3.47
023135CF1 Amazon.com Inc Callable Note Cont 3/13/2027
3.300% Due 04/13/2027
60,000.00 04/11/2022
3.35%
59,876.40
59,906.45
95.23 4.69%
57,139.92
429.00
0.53%
(2,766.53)
A1 / AA
AA3.793.48
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
130,000.00 09/28/2022
4.70%
126,240.40
126,852.48
96.34 5.05%
125,238.49
736.67
1.17%
(1,613.99)
A2 / A+
A+
3.86 3.50
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027
3.700% Due 05/15/2027
50,000.00 05/17/2022
3.69%
50,025.40
50,019.73
96.40 4.73%
48,199.25
236.40
0.45%
(1,820.48)
A3 / A+
A
3.88 3.54
931142EX7 Wal-Mart Stores Callable Note Cont 09/09/2027
3.950% Due 09/09/2027
140,000.00 10/05/2022
4.51%
136,557.40
137,068.62
98.09 4.45%
137,323.48
1,720.44
1.29%
254.86
Aa2 / AA
AA
4.20 3.77
438516CJ3 Honeywell Intl Callable Note Cont 01/15/2028
4.950% Due 02/15/2028
135,000.00 02/13/2023
4.44%
138,028.05
137,798.63
101.34
4.62%
136,809.81
2,524.50
1.29%
(988.82)
A2 / A
A
4.63 3.96
57636QAW4 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due 03/09/2028
70,000.00 03/06/2023
4.90%
69,932.10
69,936.34
101.13
4.60%
70,791.70
1,061.67
0.66%
855.36
Aa3 / A+
NR
4.70 4.03
74456QBU9 Public Service El & Gas Callable Note Cont 02/01/28
3.700% Due 05/01/2028
150,000.00 06/27/2023
4.77%
143,142.00
143,149.76
95.13 4.84%
142,693.50
925.00
1.33%
(456.26)
A1 / A
NR
4.84 4.33
341081GN1 Florida Power and Light Callable Note Cont 3/15/2028
4.400% Due 05/15/2028
150,000.00 06/27/2023
4.78%
147,565.50
147,568.23
98.12 4.84%
147,181.80
788.33
1.37%
(386.43)
Aa2 / A+
AA4.884.31
58933YBH7 Merck & Co Callable Note Cont 4/17/2028
4.050% Due 05/17/2028
30,000.00 05/08/2023
4.07%
29,975.70
29,976.30
98.26 4.45%
29,478.57
148.50
0.27%
(497.73)
A1 / A+
NR
4.88 4.36
74340XCG4 Prologis LP Callable Note Cont 5/15/2028
4.875% Due 06/15/2028
35,000.00 06/26/2023
5.02%
34,786.15
34,786.50
99.09 5.08%
34,682.87
14.22 0.32%
(103.63)
NR / NR
NR
4.96 4.35
TOTAL Corporate 2,530,000.00 3.08%
2,514,938.40
2,509,076.14 5.01%
2,411,774.54
19,463.70
22.50%
(97,301.60)
A1 / A+
A+
3.21 2.89
As of June 30, 2023
30 4.1.b
Packet Pg. 298 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Money Market Fund
31846V203 First American Govt Obligation Fund Class Y
14,276.00 Various
4.70%
14,276.00
14,276.00
1.00 4.70%
14,276.00
0.00 0.13%
0.00 Aaa / AAA
AAA
0.00 0.00
TOTAL Money Market Fund 14,276.00 4.70%
14,276.00
14,276.00 4.70%
14,276.00
0.00 0.13%
0.00 Aaa / AAA
AAA
0.00 0.00
Supranational
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
230,000.00 04/13/2021
0.97%
228,946.60
229,409.27
90.21 4.64%
207,485.76
396.91
1.92%
(21,923.51)
Aaa / AAA
AAA
2.81 2.71
TOTAL Supranational 230,000.00 0.97%
228,946.60
229,409.27 4.64%
207,485.76
396.91
1.92%
(21,923.51)
Aaa / AAA
AAA
2.81 2.71
US Treasury
912828Y87 US Treasury Note
1.750% Due 07/31/2024
220,000.00 01/17/2020
1.63%
221,160.16
220,277.93
96.18 5.42%
211,595.34
1,605.94
1.97%
(8,682.59)
Aaa / AA+
AAA
1.09 1.04
9128282U3 US Treasury Note
1.875% Due 08/31/2024
230,000.00 12/12/2019
1.76%
231,230.86
230,305.04
96.08 5.38%
220,979.63
1,441.41
2.06%
(9,325.41)
Aaa / AA+
AAA
1.17 1.12
912828YV6 US Treasury Note
1.500% Due 11/30/2024
230,000.00 12/12/2019
1.74%
227,421.48
229,263.69
94.95 5.24%
218,374.19
292.21
2.02%
(10,889.50)
Aaa / AA+
AAA
1.42 1.37
91282CDN8 US Treasury Note
1.000% Due 12/15/2024
185,000.00 12/22/2021
0.94%
185,310.74
185,152.23
94.11 5.24%
174,109.61
80.87 1.61%
(11,042.62)
Aaa / AA+
AAA
1.46 1.41
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
400,000.00 03/24/2020
0.51%
412,046.88
404,066.91
93.73 5.09%
374,922.00
1,504.08
3.48%
(29,144.91)
Aaa / AA+
AAA
1.67 1.61
912828ZT0 US Treasury Note
0.250% Due 05/31/2025
230,000.00 06/04/2020
0.39%
228,373.83
229,374.89
91.51 4.94%
210,476.91
48.70 1.95%
(18,897.98)
Aaa / AA+
AAA
1.92 1.87
9128284Z0 US Treasury Note
2.750% Due 08/31/2025
155,000.00 06/24/2021
0.72%
167,950.98
161,712.81
95.79 4.82%
148,473.11
1,424.69
1.39%
(13,239.70)
Aaa / AA+
AAA
2.17 2.05
9128285C0 US Treasury Note
3.000% Due 09/30/2025
200,000.00 02/25/2022
1.87%
207,804.69
204,897.29
96.25 4.78%
192,492.20
1,508.20
1.79%
(12,405.09)
Aaa / AA+
AAA
2.25 2.13
91282CAZ4 US Treasury Note
0.375% Due 11/30/2025
240,000.00 12/15/2020
0.37%
240,018.75
240,009.15
90.27 4.68%
216,637.44
76.23 2.01%
(23,371.71)
Aaa / AA+
AAA
2.42 2.35
91282CBC4 US Treasury Note
0.375% Due 12/31/2025
250,000.00 01/28/2021
0.41%
249,541.02
249,766.55
90.14 4.60%
225,341.75
2.55 2.09%
(24,424.80)
Aaa / AA+
AAA
2.51 2.43
91282CBQ3 US Treasury Note
0.500% Due 02/28/2026
250,000.00 03/24/2021
0.82%
246,123.05
247,905.46
89.83 4.59%
224,570.25
417.80
2.08%
(23,335.21)
Aaa / AA+
AAA
2.67 2.59
As of June 30, 2023
31 4.1.b
Packet Pg. 299 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Holdings Report
City of San Jacinto - Account #10167
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CBT7 US Treasury Note
0.750% Due 03/31/2026
250,000.00 Various
0.86%
248,714.06
249,268.03
90.38 4.51%
225,957.00
471.32
2.10%
(23,311.03)
Aaa / AA+
AAA
2.75 2.66
91282CCP4 US Treasury Note
0.625% Due 07/31/2026
300,000.00 08/25/2021
0.82%
297,152.34
298,218.63
89.09 4.45%
267,269.40
782.11
2.48%
(30,949.23)
Aaa / AA+
AAA
3.09 2.98
9128282A7 US Treasury Note
1.500% Due 08/15/2026
150,000.00 09/23/2021
0.91%
154,230.47
152,702.67
91.40 4.48%
137,103.45
845.30
1.28%
(15,599.22)
Aaa / AA+
AAA
3.13 2.98
912828V98 US Treasury Note
2.250% Due 02/15/2027
130,000.00 03/29/2022
2.53%
128,334.38
128,762.23
92.99 4.36%
120,884.79
1,098.90
1.13%
(7,877.44)
Aaa / AA+
AAA
3.63 3.39
91282CEF4 US Treasury Note
2.500% Due 03/31/2027
225,000.00 05/25/2022
2.73%
222,626.95
223,164.57
93.71 4.33%
210,858.30
1,413.93
1.96%
(12,306.27)
Aaa / AA+
AAA
3.75 3.50
91282CET4 US Treasury Note
2.625% Due 05/31/2027
215,000.00 Various
3.36%
207,938.48
209,341.11
93.96 4.32%
202,015.94
478.02
1.87%
(7,325.17)
Aaa / AA+
AAA
3.92 3.66
91282CFM8 US Treasury Note
4.125% Due 09/30/2027
350,000.00 11/21/2022
4.00%
351,886.72
351,651.55
99.44 4.27%
348,044.90
3,629.10
3.25%
(3,606.65)
Aaa / AA+
AAA
4.25 3.82
91282CFZ9 US Treasury Note
3.875% Due 11/30/2027
275,000.00 01/24/2023
3.59%
278,501.95
278,191.33
98.58 4.23%
271,100.50
902.58
2.52%
(7,090.83)
Aaa / AA+
AAA
4.42 4.00
91282CGT2 US Treasury Note
3.625% Due 03/31/2028
210,000.00 05/25/2023
3.88%
207,621.09
207,669.45
97.67 4.17%
205,110.99
1,913.52
1.92%
(2,558.46)
Aaa / AA+
AAA
4.76 4.27
TOTAL US Treasury 4,695,000.00 1.70%
4,713,988.88
4,701,701.52 4.69%
4,406,317.70
19,937.46
40.95%
(295,383.82)
Aaa / AA+
AAA
2.74 2.58
TOTAL PORTFOLIO 11,363,662.00 1.92%
11,423,952.15
11,364,825.36 4.91%
10,751,499.20
56,352.73
100.00%
(613,326.16)
Aa1 / AA
AAA
2.63 2.38
TOTAL MARKET VALUE PLUS ACCRUALS 10,807,851.93
As of June 30, 2023
32 4.1.b
Packet Pg. 300 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors)
SECTION
| Section 4
| Transactions
33 4.1.b
Packet Pg. 301 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Transaction Ledger
City of San Jacinto - Account #10167
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 04/19/2023 3130ATS57 145,000.00 FHLB Note
4.5% Due: 03/10/2028
103.022 3.82% 149,381.90 706.88 150,088.78 0.00
Purchase 05/17/2023 58933YBH7 30,000.00 Merck & Co Callable Note Cont 4/17/2028
4.05% Due: 05/17/2028
99.919 4.07% 29,975.70 0.00 29,975.70 0.00
Purchase 05/26/2023 91282CGT2 210,000.00 US Treasury Note
3.625% Due: 03/31/2028
98.867 3.88% 207,621.09 1,164.75 208,785.84 0.00
Purchase 06/28/2023 3130AWC24 200,000.00 FHLB Note
4% Due: 06/09/2028
99.491 4.11% 198,982.00 600.00 199,582.00 0.00
Purchase 06/28/2023 74340XCG4 35,000.00 Prologis LP Callable Note Cont 5/15/2028
4.875% Due: 06/15/2028
99.389 5.02% 34,786.15 0.00 34,786.15 0.00
Purchase 06/29/2023 341081GN1 150,000.00 Florida Power and Light Callable Note Cont 3/15/2028
4.4% Due: 05/15/2028
98.377 4.78% 147,565.50 751.67 148,317.17 0.00
Purchase 06/29/2023 74456QBU9 150,000.00 Public Service El & Gas Callable Note Cont 02/01/28
3.7% Due: 05/01/2028
95.428 4.77% 143,142.00 894.17 144,036.17 0.00
Subtotal 920,000.00 911,454.34 4,117.47 915,571.81 0.00 TOTAL ACQUISITIONS 920,000.00 911,454.34 4,117.47 915,571.81 0.00
DISPOSITIONS
Sale 04/19/2023 313383YJ4 120,000.00 FHLB Note
3.375% Due: 09/08/2023
99.319 2.73% 119,182.80 461.25 119,644.05 -1,096.89
Sale 05/26/2023 3137EAEY1 180,000.00 FHLMC Note
0.125% Due: 10/16/2023
97.972 0.26% 176,349.60 25.00 176,374.60 -3,552.22
Sale 06/28/2023 3130A0F70 220,000.00 FHLB Note
3.375% Due: 12/08/2023
99.131 2.71% 218,088.20 412.50 218,500.70 -2,518.30
Sale 06/28/2023 912828W71 210,000.00 US Treasury Note
2.125% Due: 03/31/2024
97.602 1.63% 204,963.28 1,085.14 206,048.42 -5,797.50
Subtotal 730,000.00 718,583.88 1,983.89 720,567.77 -12,964.91 March 31, 2023 through June 30, 2023
As of June 30, 2023
34 4.1.b
Packet Pg. 302 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Transaction Ledger
City of San Jacinto - Account #10167
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss Maturity 06/19/2023 3137EAEN5 50,000.00 FHLMC Note
2.75% Due: 06/19/2023
100.000 50,000.00 0.00 50,000.00 0.00
Subtotal 50,000.00 50,000.00 0.00 50,000.00 0.00
TOTAL DISPOSITIONS 780,000.00 768,583.88 1,983.89 770,567.77 -12,964.91 March 31, 2023 through June 30, 2023
As of June 30, 2023
35 4.1.b
Packet Pg. 303 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Important Disclosures
2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.
As of June 30, 2023
36 4.1.b
Packet Pg. 304 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors) Benchmark Disclosures
San Jacinto 1-5 Yr AAA-A US Corp & Govt Blend*
TThe ICE BofA 1-3 AAA-A Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. The ICE BofA 1-5 Year AAA-A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities.
Qualifying securities must be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities.
San Jacinto 1-5 Yr US Tsy & Agy Blended Index*
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance.
As of June 30, 2023
37 4.1.b
Packet Pg. 305 Attachment: Chandler Portfolio Review - 063023 (Investment Portfolio Review with Advisors)