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Item 2 - City’s Investment Report as of March 31, 2020
May 5, 2020, Item #2 DATE: TO: FROM: CONTACT: SUBJECT: Summary: May 5, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ~ Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org City's Investment Report as of March 31, 2020 City of Poway CITY COUNCIL Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. For your information, attached is an investment portfolio report as of March 31, 2020. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b)(1) and the City's Investment Policy, the Finance Director (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of March 31, 2020, was $117,268,335. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 22,883,340 Deposits at the Local Agency Investment Fund (LAIF) 14,123,941 U.S. Treasury Notes 12,905,734 U.S. Instrumentalities 45,618,725 Corporate Notes 21,736,595 Fair Value of Investment Portfolio as of March 31, 2020 $117,268,335 1 of 28 May 5, 2020, Item #2 The attached portfolio report (Attachment B) and investment report (Attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, including the General Fund, Water Fund, Wastewater Fund and others -except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending March 31, 2020, is estimated at 1.79% for LAIF, 1.68% for the CalTRUST short-term fund, and 1.83% for the CalTRUST medium-term fund. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down, and vice versa. This is known as interest rate risk or market risk. A portfolio's duration is a common measurement of interest rate risk. Due to anticipated actions of the Federal Reserve, the Finance Department, in conjunction with Insight Investment, has been increasing the duration of the externally managed investment portfolio since July 2019 by investing in longer-term investments (e.g. treasuries and corporate notes). This strategy will help preserve the City's interest earning ability in an environment of declining interest rates as well as help increase market value. In response to the COVID-19 pandemic, the Federal Reserve lowered the target federal funds rate by 50 basis points on March 3, 2020 and 100 basis points on March 16, 2020. The target federal funds rate is currently between 0.00% and 0.25%. For fixed income securities, the difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $78,622,902; the fair value is $80,261,054 for an unrealized gain of $1,638,152 or 2.08% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non- managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at March 31, 2020, was $468,840. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $176,027 at March 31, 2020. The City's cash on hand at March 31, 2020, totaled $1, 172,802. The March 31, 2020 balance of the City's Library Trust Fund was $259,712. Through the Fiscal Year 2019-20 period ending March 31, 2020, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2019-20, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating expenses. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). 2 of28 May 5, 2020, Item #2 Fiscal Impact: The externally managed investment portfolio earned $159,432 interest during March 2020, as well as $141,054 interest during February 2020, and $149,039 during January 2020. Fees for investment services during this period totaled $9,959. Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at March 31, 2020 Reviewed/Approved By: Assistant City Manager 3 of28 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager May 5, 2020, Item #2 City of Poway Investment Statistics Separately Managed Investment Pools Fair Value: CalTRUST Short-Term Deposits CalTRUST Medium-Term Deposits Deposits at the Local Agency Investment Fund (LAIF) Total Fair Value Weighted Average Yield Effective Average Duration in days Weighted Average Maturity in days Externally Managed Investment Pools Fair Value: U. S. Treasury Notes U.S. Instrumentalities Corporate Bonds Total Fair Value Amortized Cost Value: U.S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Amortized Cost Value Unrealized Gain (Loss) Accrued Interest Earned Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology March December 2019 2019 11,050,617 11,271,671 11,139,326 11,427,085 17,903,428 4,593,072 40,093,371 27,291,828 2.44% 1.99% 1 1 1 12,473,258 13,993,384 38,221,348 43,318,054 21,342,785 21,675,308 72,037,391 78,986,746 12,497,341 13,927,787 38,326,583 43,100,214 21,431,153 21,587,993 72,255,077 78,615,994 (217,686) 370,752 121,176 151,068 1.95% 2.02% 0.88 1.91 0.92 2.02 112,130,762 106,278,574 2.13% 2.01% 0.57 1.47 0.59 1.55 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. March 2020 11,288,360 11,594,980 14,123,941 37,007,281 1.77% 1 12,905,734 45,618,725 21,736,595 80,261,054 12,427,608 44,532,828 21,662,466 78,622,902 1,638,152 159,432 1.97% 2.10 2.25 117,268,335 1.91% 1.44 1.54 Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in it, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings. Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of28 ATTACHMENT A May 5, 2020, Item #2 City of Poway Monthly Investment Portfolio Report March 31, 2020 Separately Managed Investment Pools % Return LAIF $ 14,123,941 38% 1.78% CalTrust -Short $ 11,288,360 31% 1.68% CalTrust -Medium $ 11,594,980 31% 1.83% Total Internally Managed $ 37,007,281 32% Weighted Average Yield 1.77% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 12,905,734 16% 1.88% Instrumentality Securities $ 45,618,725 57% 1.94% Corporate Notes $ 21,736,595 27% 2.09% Total Externally Managed $ 80,261,054 68% Weighted Average Yield 1.97% Years Effective Average Duration -External 2.10 Weighted Average Final Maturity-External 2.25 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ CalTrust -Medium $ Treasury Securities $ Instrumentality Securities $ Corporate Notes $ Total Portfolio Assets $ Weighted Average Yield Effective Average Duration -Total Weighted Average Maturity -Total Portfolio Change Beginning Balance Ending Balance Assets values shown at Market 5 of 28 14,123,941 12% 1.78% 11,288,360 10% 1.68% 11,594,980 10% 1.83% 12,905,734 11% 1.88% 45,618,725 39% 1.94% 21,736,595 19% 2.09% 117,268,335 1.91% Years 1.44 1.54 $ $ CalTrust - Medium, 31% Corporate Notes, 27% Corporate Notes 21% Instrumentality Securities 44% 120,009,881 117,268,335 ATTACHMENT B 31% LAIF, 38% Treasury Securities, 57% CalTrust -Short CalTrust - 11% Medium Treasury 13% May 5, 2020, Item #2 6of28 ATTACHMENT C May 5, 2020, Item #2 ...... Contents 0 ..... N 00 Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40 -Deposit and investment risk disclosure 14 Securities sold and matured 19 Transaction report 20 Additional information 21 May 5, 2020, Item #2 00 0 -t\ N 00 FIXED INCOME MARKET REVIEW As of March 31, 2020 Chart 1: Jobless claims skyrocket to entirely unprecedented levels amid coronavirus crisis 3.5 .-3 2.5 2 ' C 0 :§1.5 0.5 0 1967 1974 1982 1989 1997 200 --Initial jobless claims Source: Bloomberg Finance LP, March 31, 2020. 2012 2020 Chart 2: The Federal Reserve aggressively expands its balance sheet to combat the crisis 3.0% 2.5% 20% 1.5% 1.0% 0.5% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 --Fed balance sheet as a ~o of GDP Source: Bloomberg Finance LP March 31, 2020. CITY OF POWAY Economic Indicators and Monetary Policy The coronavirus crisis took hold in March and the US saw more cases than any other country at almost 190,000. A number of states enforced 'lockdown' measures, closing businesses such as bars and restaurants, schools and banning other public gatherings. Global sporting events were cancelled, as was travel between the US and Europe and the US and Canada. US jobless claims surged to an unprecedented 3m (Chart 1) US equities entered the sharpest bear market ever, twice delivering record low daily returns outside Black Tuesday 1929 and Black Monday 1987. Selling to meet margin calls and corporations drawing down revolving credit facilities created a liquidity crisis. The Federal Reserve (Fed) enacted an emergency S0bp rate cut early in the month, and later followed with a 1 00bp cut, bringing the fed funds rate to a range of 0 -.25%. To address the liquidity crisis, the Fed announced $3.Strn of repo market operations in March alone and lowered its discount rate for member banks by S0bp. The Fed also reintroduced quantitative easing (QE), initially at $700bn, but then later amended to an unlimited program. During a single week, the Fed purchased over $600bn of Treasuries and agency MBS, larger than the entire 201 0 'QE2' program. The Fed also brought back the 2008-era Term Asset-Backed Securities Loan Facility (TALF) and announced two new programs for purchasing corporate debt. (Chart 2) This was followed by a $2trn fiscal stimulus package including direct one-time payments to individuals, $500bn of funding to the economy, $350bn of loans to small businesses (forgivable if workers are retained) and $1 S0bn in hospital aid. Interest Rate Summary Yields fell dramatically during the month. At one point the entire yield curve yielded less than 1 %. Longer-dated yields later retraced, particularly when liquidity concerns abated within the longer-dated Treasury market. At the end of March, the 3-month US Treasury bill yielded 0.12%, the 6-month US Treasury bill yielded 0.16%, the 2-year US Treasury note yielded 0.25%, the 5-year US Treasury note yielded 0.38% and the 10-year US Treasury note yielded 0.67%. 3 May 5, 2020, Item #2 \0 0 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2020 -March 31, 2020 ~ I Amortized Cost Basis Activity Summary 00 Opening balance Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Realized gain {loss) Change in accruals from security movement Total amortization expense Total 01D/MKT accretion income Return of capital Closing balance Ending fair value Unrealized gain (loss) 184,875.00 (116,043.00) Comparative Rates of Return (%) Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Year US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note * rates reflected are cumulative * Twelve month trailing 1.88 1.92 1.72 1.68 1.70 1.63 1.64 * Six month trailing 0.72 0.73 0.65 0.64 0.66 0.67 0.69 78,576,559.17 184,875.00 0.00 {116,043.00) 0.00 0.00 (27,019.19) 4,529.89 0.00 78,622,901.87 80,261,054.21 1,638,152.34 * One month 0.05 0.06 0.02 0.02 0.03 0.04 0.05 Detail Qf Amortized Cost Basis Return Interest Accretion Realized earned (amortization) gain (loss) Corporate Bonds 51,635.94 {11,499.15) 0.00 Government Agencies 87,672.80 (10,636.27) 0.00 Government Bonds 20,123.00 (353.88) 0.00 Total 159,431.74 (22,489.30) 0.00 Summary of Amortized Cost Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return(%) YTD return {%) Weighted average final maturity in days CITY OF POWAY Total income 40,136.79 77,036.53 19,769.12 136,942.44 Total portfolio 159,431.74 (22,489.30) 0.00 136,942.44 78,627,399.14 0.17 0.49 822 4 May 5, 2020, Item #2 -' 0 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2020 -March 31, 2020 ~ j Fair Value Basis Activity Summary oo Opening balance 79,981,497.88 Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfolio transfers Unrealized gain (loss) on security movements Change in accruals from security movement Return of capital Change in fair value for the period Ending fair value 184,875.00 (116,043.00) Comparative Rates of Return{%} *Twelve * Six month trailing month trailing Fed Funds 1.88 0.72 Overnight Repo 1.92 0.73 ICE BofAML 3 Months UST-BILL 2.25 1.04 ICE ML 6m US Treas Bill 2.85 1.48 ICE ML 1 Year US Treasury Note 3.85 2.31 ICE ML US Treasury 1-3 5.42 3.33 ICE ML US Treasury 1-5 6.86 4.16 * rates reflected are cumulative 184,875.00 0.00 (116,043.00) 0.00 0.00 0.00 210,724.33 80,261,054.21 * One month 0.05 0.06 0.29 0.52 0.99 1.37 1.71 Detail of Fair Value Basis Retyrn Interest Change in earned fair value Corporate Bonds 51,635.94 (293,790.68) Government Agencies 87,672.80 313,897.82 Government Bonds 20,123.00 190,617.19 Total 159,431.74 210,724.33 Symmary of Fair Va lye Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value* Period return (%) YTD return(%) Weighted average final maturity in days * Total value equals market value and accrued interest CITY OF POWAY Total income (242,154.74) 401,570.62 210,740.19 370,156.07 Total portfolio 159,431.74 210,724.33 370,156.07 80,357,132.44 0.46 2.09 822 5 May 5, 2020, Item #2RECAP OF SECURITIES HELD As of March 31, 2020 ...,. ...,. 0 Historical """' N cost 00 Corporate Bonds 21,724,866.00 Government Agencies 44,587,915.46 Government Bonds 12,423,788.53 Amortized Fair value Unrealized Weighted cost gain (loss) average final maturity (days) 21,662,466.43 21,736,595.26 74,128.83 957 44,532,827.66 45,618,724.54 1,085,896.88 728 12,427,607.78 12,905,734.41 478,126.63 923 Portfolio diversification (%) ■ Corporate Bonds ■ Government Agencies ■ Government Bonds Total Percent of portfolio 27.59 56.63 15.78 27.59 56.63 15.78 100.00 CITY OF POWAY Weighted average effective duration (years) 2.43 1.84 2.45 6 May 5, 2020, Item #2 ..to N 0 ..... N 00 MATURITY DISTRIBUTION OF SECURITIES HELD As of March 31, 2020 Maturity Under 90 days 90 to 179 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years E .s .... VI 0 u iii u ] VI i: 25.00. Historic cost Percent 4,991,575.50 6.34 7,504,511.25 9.53 6,971,876.00 8.86 15,920,682.64 20.22 17,634,977.90 22.40 20,656,601.07 26.24 5,056,345.63 6.42 0.00 0.00 78,736,569.99 100.00 Maturity distribution ~ ~ ~ # ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ..::,<:1 ~<::) ~1> 0 'b<::) ~ CITY OF POWAY 7 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 ..a. w acusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Corporate Bonds 713448(55 1 .850 04/30/2020 1,500,000.00 1,499,655.00 1,499,990.34 1,499,846.60 (143.74) 0.00 2,389.58 11,562.50 1.90 PEPSICO INC 1.85% 0.00 9.67 (598.09) 30APR2020 CALLABLE 69353RES3 2.600 07/21/2020 1,000,000.00 1,016,010.00 1,001,327.34 998,459.78 (2,867.56) 0.00 2,311.12 5,055.56 1.29 PNC BANK NA 2.6% 21JUL2020 06/21/2020 0.00 (491.61) (5,027.41) (CALLABLE 21JUN20) 053015AD5 2.250 09/15/2020 1,000,000.00 1,002,630.00 1,000,360.09 1,001,644.73 1,284.64 11,250.00 2,000.00 1,000.00 1.27 AUTO MA TIC DAT A 08/15/2020 0.00 (80.02) (2,213.56) PROCESSNG 2.25% 15SEP2020 (CALLABLE 15AUG20) 191216BT6 1.875 10/27/2020 2,000,000.00 1,987,240.00 1,997,445.53 2,001,011.80 3,566.27 0.00 3,333.34 16,041.67 2.52 COCA-COLA CO/THE 1.875% 0.00 370.21 (4,421.98) 27OCT2020 89233P7F7 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,001,049.43 2,001,535.54 486.11 0.00 4,666.67 11,812.50 2.54 TOYOTA MOTOR CREDIT CORP 0.00 (31.48) (78,890.58) 2.625% 1 OJAN2023 084670BR8 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,017,085.80 1,034,703.25 17,617.45 13,750.00 2,444.44 1,222.22 1.30 BERKSHIRE HATHAWAY INC 01/15/2023 0.00 (510.02) (4,657.87) 2.75% 15MAR2023 (CALLABLE 15JAN23) 931142DH3 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,012,198.94 1,032,984.87 20,785.93 0.00 2,266.67 12,041.67 1.29 WALMART INC 2.55% 01/11/2023 0.00 (365.60) (2,729.72) 11 APR2023 (CALLABLE 11JAN23) 037833AK6 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,006,505.51 1,042,550.49 36,044.98 0.00 2,133.34 9,866.67 1.28 APPLE INC 2.4% 03MAY2023 0.00 (175.35) 9,981.42 166764BK5 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,550,647.12 1,540,206.95 (10,440.17) 0.00 2,886.75 14,433.75 1.97 CHEVRON CORP 2.566% 03/16/2023 0.00 (1,425.35) (12,459.63) 16MA Y2023 (CALLABLE 16MAR23) 8 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 ~ .i:a,. acusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Corporate Bonds 69353RFL7 3 .500 06/08/2023 1,900,000.00 1,995,436.00 1,979,310.76 1,966,000.91 {13,309.85) 0.00 5,911.11 20,873.61 2.53 PNC BANK NA 3.5% 08JUN2023 05/09/2023 0.00 (2,126.30) {52,658.27) {CALLABLE 09MA Y23) 94988J5R4 3 .550 08/14/2023 1,000,000.00 1,050,350.00 1,044,224.33 1,046,972.10 2,747.77 0.00 3,155.55 4,634.72 1.33 WELLS FARGO BANK NA 3.55% 07/14/2023 0.00 {1,120.55) {19,245.22) 14AUG2023 {CALLABLE 14JUL23) 68389XBL8 2.400 09/15/2023 1,000,000.00 1,008,750.00 1,007,131.19 1,023,973.48 16,842.29 12,000.00 2,133.34 1,066.67 1.28 ORACLE CORP 2.4% 07/15/2023 0.00 (180.54) {8,044.94) 15SEP2023{CALLABLE 15JUL23) 17325FAS7 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,479,377.43 1,465,994.67 {13,382.76) 0.00 4,542.22 9,652.22 1.89 CITIBANK NA 3.65% 12/23/2023 0.00 {1,773.13) (37,145.21) 23JAN2024 {CALLABLE 23DEC23) 91159HHV5 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,987,723.70 2,017,079.48 29,355.78 0.00 5,700.00 9,975.00 2.54 US BANCORP 3.375% 01/05/2024 0.00 {1,942.23) (18,279.60) 05FEB2024{CALLABLE 05JAN24) 17275RAN2 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,066,512.82 1,078,062.71 11,549.89 18,125.00 3,222.22 2,718.75 1.36 CISCO SYSTEMS INC 3.625% 0.00 {1,411.16) (10,696.85) 04MAR2024 02665WCZ2 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,011,576.10 985,567.90 {26,008.20) 0.00 2,133.34 6,266.67 1.29 AMERICAN HONDA FINANCE 0.00 (227.42) {46,688.17) 2.4% 27JUN2024 Total Corporate Bonds 21,200,000.00 21,724,866.00 21,662,466.43 21,736,595.26 74,128.83 55,125.00 51,229.69 138,224.18 27.59 0.00 (11,480.88) (293,775.68) -Government Agencies 3130AECJ7 2.625 05/28/2020 1,500,000.00 1,497,100.50 1,499,727.00 1,505,343.00 5,616.00 0.00 3,500.00 13,453.13 1.90 FEDERAL HOME LOAN BANK 0.00 141.21 801.94 2.625% 28MA Y2020 9 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 -u, acusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Government Agencies 3130ABY34 1.613 05/29/2020 2,000,000.00 1,994,820.00 1,999,673.83 2,004,004.52 4,330.69 0.00 2,867.56 10,932.56 2.53 FEDERAL HOME LOAN BANK 0.00 165.85 2,730.60 1.613% 29MAY2020 3133EHYM9 1 .500 09/14/2020 2,000,000.00 1,993,720.00 1,999,041.93 2,012,229.10 13,187.17 15,000.00 2,666.67 1,416.67 2.53 FEDERAL FARM CREDIT BANK 0.00 175.25 7,948.72 1 .5% 14SEP2020 3130AEWA4 2. 625 1 0/01 /2020 2,000,000.00 1,990,580.00 1,997,522.49 2,022,991.62 25,469.13 0.00 4,666.67 26,250.00 2.53 FEDERAL HOME LOAN BANK 0.00 394.77 6,312.78 2.625% 01 OCT2020 3133EGM51 1 .650 12/01/2020 1,000,000.00 996,971.00 999,492.00 1,009,296.10 9,804.10 0.00 1,466.67 5,500.00 1.27 FEDERAL FARM CREDIT BANK 0.00 63.23 5,280.85 1.65% 01 DEC2020 3130A3UQ5 1.875 12/11/2020 1,000,000.00 997,820.00 999,500.29 1,011,008.82 11,508.53 0.00 1,666.67 5,729.17 1.27 FEDERAL HOME LOAN BANK 0.00 59.72 5,166.34 1 .875% 11 DEC2020 3133EKAJ5 2.500 02/11/2021 1,000,000.00 999,265.00 999,681.64 1,019,987.45 20,305.81 0.00 2,222.22 3,472.22 1.27 FEDERAL FARM CREDIT BANK 0.00 30.71 6,321.67 2.5% 11 FEB2021 3133EJJD2 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,002,195.00 1,023,085.85 20,890.85 0.00 2,257.78 12,417.78 1.28 FEDERAL FARM CREDIT BANK 0.00 (180.41) 5,906.33 2.54% 05APR2021 313379RB7 1.875 06/11/2021 1,000,000.00 985,600.00 992,486.20 1,018, 124.59 25,638.39 0.00 1,666.67 5,729.17 1.25 FEDERAL HOME LOAN BANK 0.00 523.00 7,103.27 1.875% 11JUN2021 3135G0U35 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,009,644.64 2,057,547.24 47,902.60 0.00 4,888.89 15,125.00 2.56 FANNIE MAE 2.75% 22JUN2021 0.00 (654.61) 12,220.70 3133EKCB0 2.500 07/01/2021 1,000,000.00 999,030.00 999,482.28 1,026,775.59 27,293.31 0.00 2,222.22 6,250.00 1.27 FEDERAL FARM CREDIT BANK 0.00 34.43 5,825.48 2.5% 01JUL2021 10 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 -0\ g_cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Government Agencies 3137EAEC9 1 .125 08/12/2021 1,000,000.00 991,273.00 992,722.57 1,010,274.40 17,551.83 0.00 1,000.00 1,531.25 1.26 FREDDIE MAC 1.125% 0.00 443.75 8,011.05 12AUG2021 3135G0Q89 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,892,054.59 1,927,636.58 35,581.99 0.00 2,322.22 12,627.08 2.40 FANNIE MAE 1.375% 0.00 435.76 15,654.13 07OCT2021 3130AABG2 1.875 11/29/2021 1,000,000.00 990,090.00 993,848.61 1,023,880.81 30,032.20 0.00 1,666.67 6,354.17 1.26 FEDERAL HOME LOAN BANK 0.00 308.08 7,639.27 1 .875% 29NOV2021 3135G0U92 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,508,708.61 1,558,027.71 49,319.10 0.00 3,500.00 8,750.00 1.92 FANNIE MAE 2.625% 0.00 (393.38) 11,626.14 11JAN2022 3137EADB2 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,014,132.72 1,035,065.34 20,932.62 0.00 2,111.11 5,145.83 1.29 FREDDIE MAC 2.375% 0.00 (659.38) 9,194.52 13JAN2022 313378CR0 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,002,778.99 2,072,735.90 69,956.91 22,500.00 4,000.00 2,500.00 2.55 FEDERAL HOME LOAN BANK 0.00 (118.93) 20,692.64 2.25% 11 MAR2022 3135G0V59 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,939,317.83 3,006,653.39 67,335.56 0.00 5,800.00 30,631.25 3.74 FANNIE MAE 2.25% 0.00 (1,611.39) 27,039.40 12APR2022 3133EA5E4 1 . 930 10/18/2022 2,000,000.00 2,015,820.00 2,014,522.76 2,052,116.94 37,594.18 0.00 3,431.11 17,477.22 2.56 FEDERAL FARM CREDIT BANK 0.00 (474.60) 332.06 1 . 93% 18OCT2022 31331K3A6 2.710 12/13/2022 1,000,000.00 1,028,921.06 1,022,638.93 1,050,016.56 27,377.63 0.00 2,408.89 8,130.00 1.31 FEDERAL FARM CREDIT BANK 0.00 (698.02) 1,341.53 2. 71 % 13DEC2022 31331 KAF7 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,980,703.86 2,018,123.50 37,419.64 0.00 6,725.78 15,343.18 2.55 FEDERAL FARM CREDIT BANK 0.00 (3,890.00) 3,126.70 4.09% 18JAN2023 11 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 ... -.J g_cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Government Agencies 3133EKKT2 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,013,727.61 1,041,524.92 27,797.31 0.00 2,000.00 3,312.50 1.29 FEDERAL FARM CREDIT BANK 0.00 (400.61) 3,769.49 2.25% 08FEB2023 3133EJFK0 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,028,482.61 1,062,611.94 34,129.33 13,250.00 2,355.56 1,693.06 1.31 FEDERAL FARM CREDIT BANK 0.00 (807.64) 11,960.93 2.65% 08MAR2023 3137EAEN5 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,055,641.86 2,142,636.46 86,994.60 0.00 4,888.89 15,583.33 2.63 FREDDIE MAC 2.75% 0.00 (1,440.25) 26,359.64 19JUN2023 3134GU3T5 1.800 07/21/2023 1,500,000.00 1,501,995.00 1,501,537.81 1,504,758.26 3,220.45 0.00 2,175.00 5,250.00 1.91 FREDDIE MAC 1.8% 21 JUL2023 07/21/2020 0.00 (415.63) 2,220.86 (CALLABLE 21JUL20) 3135G0U43 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,032,290.35 1,077,999.46 45,709.11 14,375.00 2,555.55 1,517.36 1.32 FANNIE MAE 2.875% 0.00 (779.96) 10,998.47 12SEP2023 3133EKVB9 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,033.97 2,087,580.66 89,546.69 0.00 3,306.67 16,946.67 2.54 FEDERAL FARM CREDIT BANK 0.00 46.19 23,008.52 1.86% 17OCT2023 3130A3VC5 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,012,349.55 1,069,134.76 56,785.21 0.00 2,000.00 7,062.50 1.29 FEDERAL HOME LOAN BANK 0.00 (278.99) 20,884.91 2.25% 08DEC2023 3135G0V34 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,023,853.25 1,075,671.47 51,818.22 0.00 2,222.22 3,888.89 1.31 FANNIE MAE 2.5% 05FEB2024 0.00 (516.68) 17,204.92 3135G0V75 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,007,033.88 2,091,881.60 84,847.72 0.00 3,111.11 8,652.78 2.55 FANNIE MAE 1.75% 02JUL2024 0.00 (137.74) 27,213.96 Total Government Agencies 44,150,000.00 44,587,915.46 44,532,827.66 45,618,724.54 1,085,896.88 65,125.00 87,672.80 278,672.77 56.63 0.00 (10,636.27) 313,897.82 12 May 5, 2020, Item #2SECURITIES HELD CITY OF POWAY As of March 31, 2020 -00 g_cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Government Bonds 912828202 1.500 08/15/2020 2,000,000.00 1,990,156.25 1,998,677.85 2,011,718.76 13,040.91 0.00 2,554.94 3,708.79 2.53 USA TREASURY 1.5% 0.00 299.17 10,000.00 15AUG2020 912828F21 2.125 09/30/2021 1,000,000.00 991,015.63 994,795.52 1,028,906.25 34,110.73 10,625.00 1,799.86 0.00 1.26 USA TREASURY 2.125% 0.00 294.41 10,664.06 30SEP2021 9128285F3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,509,390.57 1,561,582.04 52,191.47 0.00 3,652.66 19,795.08 1.93 USA TREASURY 2.875% 0.00 (517.07) 15,292.97 15OCT2021 912828XW5 1 . 750 06/30/2022 1,000,000.00 998,515.63 998,905.06 1,034,375.00 35,469.94 0.00 1,490.38 4,375.00 1.27 USA TREASURY 1.75% 0.00 41.34 14,492.19 30JUN2022 912828L57 1.750 09/30/2022 1,000,000.00 999,417.41 999,551.89 1,037,226.56 37,674.67 8,750.00 1,482.24 0.00 1.27 USA TREASURY 1.75% 0.00 15.21 15,078.12 30SEP2022 9128282D1 1 .375 08/31/2023 2,000,000.00 1,967,109.38 1,972,707.78 2,072,968.76 100,260.98 13,750.00 2,316.58 2,316.58 2.50 USA TREASURY 1 .375% 0.00 677.93 40,000.00 31AUG2023 912828U57 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,921,558.06 2,025,207.04 103,648.98 0.00 3,419.74 13,458.33 2.45 USA TREASURY 2.125% 0.00 (499.10) 39,855.47 30NOV2023 912828X70 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,032,021.05 2,133,750.00 101,728.95 0.00 3,406.60 16,703.30 2.59 USA TREASURY 2% 30APR2024 0.00 (665.77) 45,234.38 Total Government Bonds 12,400,000.00 12,423,788.53 12,427,607.78 12,905,734.41 478,126.63 33,125.00 20,123.00 60,357.08 15.78 0.00 (353.88) 190,617.19 13 May 5, 2020, Item #2GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2020 ~ \0 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N 00 date rating rating shares cost hist cost value mkt value dur (yrs) Federal Farm Credit Banks Funding Corp 3133EHYM9 FEDERAL FARM CREDIT 1.500 09/14/2020 AA+ Aaa 2,000,000.00 1,993,720.00 2.53 2,012,229.10 2.51 0.46 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971.00 1.27 1,009,296.10 1.26 0.67 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.27 1,019,987.45 1.27 0.86 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.28 1,023,085.85 1.27 0.99 3133EKCBO FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.27 1,026,775.59 1.28 1.23 3133EASE4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 2.56 2,052,116.94 2.56 2.47 31331K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.31 1,050,016.56 1.31 2.60 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.55 2,018,123.50 2.51 2.65 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.29 1,041,524.92 1.30 2.77 3133EJFKO FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.31 1,062,611.94 1.32 2.84 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.54 2,087,580.66 2.60 3.42 Issuer total 14,850,000.00 15,094,485.56 19.17 15,403,348.61 19.19 2.00 United States Treasury Note/Bond 9128282Q2 USA TREASURY 1.5% 1.500 08/15/2020 AA+ Aaa 2,000,000.00 1,990, 156.25 2.53 2,011,718.76 2.51 0.38 912828F21 USA TREASURY 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.26 1,028,906.25 1.28 1.48 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 1.93 1,561,582.04 1.95 1.50 912828XW5 USA TREASURY 1. 75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.27 1,034,375.00 1.29 2.20 912828L57 USA TREASURY 1. 75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.27 1,037,226.56 1.29 2.45 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.50 2,072,968.76 2.58 3.34 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.45 2,025,207.04 2.52 3.52 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.59 2,133,750.00 2.66 3.91 Issuer total 12,400,000.00 12,423,788.53 15.78 12,905,734.41 16.08 2.45 Federal National Mortgage Association 3135GOU35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.56 2,057,547.24 2.56 1.20 14 May 5, 2020, Item #2GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2020 N 0 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N 00 date rating rating shares cost hist cost value mkt value dur (yrs) Federal National Mortgage Association 3135G0Q89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.40 1,927,636.58 2.40 1.49 3135G0U92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 1.92 1,558,027.71 1.94 1.74 3135G0V59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 3.74 3,006,653.39 3.75 1.97 3135G0U43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.32 1,077,999.46 1.34 3.30 3135G0V34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.31 1,075,671.47 1.34 3.68 3135G0V75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.55 2,091,881.60 2.61 4.10 Issuer total 12,300,000.00 12,439,722.40 15.80 12,795,417.45 15.94 2.34 Federal Home Loan Banks 3130AECJ7 FEDERAL HOME LOAN 2.625 05/28/2020 AA+ Aaa 1,500,000.00 1,497,100.50 1.90 1,505,343.00 1.88 0.16 3130ABY34 FEDERAL HOME LOAN 1.613 05/29/2020 AA+ Aaa 2,000,000.00 1,994,820.00 2.53 2,004,004.52 2.50 0.16 3130AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.53 2,022,991.62 2.52 0.50 3130A3UQ5 FEDERAL HOME LOAN 1.875 12/11/2020 AA+ Aaa 1,000,000.00 997,820.00 1.27 1,011,008.82 1.26 0.69 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.25 1,018,124.59 1.27 1.18 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.26 1,023,880.81 1.28 1.63 313378CR0 FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.55 2,072,735.90 2.58 1.91 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.29 1,069,134.76 1.33 3.53 Issuer total 11,500,000.00 11,474,610.50 14.57 11,727,224.02 14.61 1.08 Federal Home Loan Mortgage Corp 3137EAEC9 FREDDIE MAC 1.125% 1.125 08/12/2021 AA+ Aaa 1,000,000.00 991,273.00 1.26 1,010,274.40 1.26 1.35 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.29 1,035,065.34 1.29 1.75 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.63 2,142,636.46 2.67 3.08 3134GU3T5 FREDDIE MAC 1.8% 1.800 07/21/2023 07/21/2020 AA+ Aaa 1,500,000.00 1,501,995.00 1.91 1,504,758.26 1.87 0.42 Issuer total 5,500,000.00 5,579,097.00 7.09 5,692,734.46 7.09 1.81 15 May 5, 2020, Item #2GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2020 N -a. acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) 00 PNC Bank NA 69353RES3 PNC BANK NA 2.6% 2.600 07/21/2020 06/21/2020 A A2 1,000,000.00 1,016,010.00 1.29 998,459.78 1.24 0.30 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.53 1,966,000.91 2.45 2.93 Issuer total 2,900,000.00 3,011,446.00 3.82 2,964,460.69 3.69 2.04 US Bancorp 91159HHV5 US BANCORP 3.375% 3.375 02/05/2024 01/05/2024 A+ A1 1,900,000.00 1,999,636.00 2.54 2,017,079.48 2.51 3.54 Issuer total 1,900,000.00 1,999,636.00 2.54 2,017,079.48 2.51 3.54 Toyota Motor Credit Corp 89233P7F7 TOY OT A MOTOR CREDIT 2.625 01/10/2023 AA-A1 2,000,000.00 2,001,380.00 2.54 2,001,535.54 2.49 2.65 Issuer total 2,000,000.00 2,001,380.00 2.54 2,001,535.54 2.49 2.65 Coca-Cola Co/The 191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ A1 2,000,000.00 1,987,240.00 2.52 2,001,011.80 2.49 0.57 Issuer total 2,000,000.00 1,987,240.00 2.52 2,001,011.80 2.49 0.57 Chevron Corp 166764BK5 CHEVRON CORP 2.566% 2.566 05/16/2023 03/16/2023 AA Aa2 1,500,000.00 1,552,215.00 1.97 1,540,206.95 1.92 2.87 Issuer total 1,500,000.00 1,552,215.00 1.97 1,540,206.95 1.92 2.87 PepsiCo Inc 713448CS5 PEPSICO INC 1.85% 1.850 04/30/2020 A+ A1 1,500,000.00 1,499,655.00 1.90 1,499,846.60 1.87 0.08 Issuer total 1,500,000.00 1,499,655.00 1.90 1,499,846.60 1.87 0.08 Citibank NA 17325FAS7 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 1.89 1,465,994.67 1.83 3.49 Issuer total 1 ,400,000.00 1,484,224.00 1.89 1,465,994.67 1.83 3.49 16 May 5, 2020, Item #2GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2020 N N g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) 00 Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.36 1,078,062.71 1.34 3.67 Issuer total 1 ,000,000.00 1,070,370.00 1.36 1,078,062.71 1.34 3.67 Wells Fargo Bank NA 94988JSR4 WELLS FARGO BANK NA 3.550 08/14/2023 07/14/2023 A+ Aa2 1,000,000.00 1,050,350.00 1.33 1,046,972.10 1.30 3.11 Issuer total 1,000,000.00 1,050,350.00 1.33 1,046,972.10 1.30 3.11 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.28 1,042,550.49 1.30 2.96 Issuer total 1,000,000.00 1,007,920.00 1.28 1,042,550.49 1.30 2.96 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.30 1,034,703.25 1.29 2.72 Issuer total 1,000,000.00 1,021,370.00 1.30 1,034,703.25 1.29 2.72 Walmart Inc 931142DH3 WALMART INC 2.55% 2.550 04/11/2023 01/11/2023 AA Aa2 1,000,000.00 1,015,270.00 1.29 1,032,984.87 1.29 2.71 Issuer total 1,000,000.00 1,015,270.00 1.29 1,032,984.87 1.29 2.71 Oracle Corp 68389XBL8 ORACLE CORP 2.4% 2.400 09/15/2023 07/15/2023 A+ A3 1,000,000.00 1,008,750.00 1.28 1,023,973.48 1.28 3.21 Issuer total 1 ,000,000.00 1,008,750.00 1.28 1,023,973.48 1.28 3.21 Automatic Data Processing Inc 05301 SADS AUTOMATIC DAT A 2.250 09/15/2020 08/15/2020 AA Aa3 1,000,000.00 1,002,630.00 1.27 1,001,644.73 1.25 0.38 Issuer total 1,000,000.00 1,002,630.00 1.27 1,001,644.73 1.25 0.38 17 May 5, 2020, Item #2GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2020 N w g.cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares 00 cost hist cost value mkt value dur (yrs) American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A A3 1,000,000.00 1,012,410.00 1.29 985,567.90 1.23 3.97 Issuer total 1,000,000.00 1,012,410.00 1.29 985,567.90 1.23 3.97 18 May 5, 2020, Item #2SECURITIES SOLD AND MATURED CITY OF POWAY For the period March 1, 2020 -March 31, 2020 N .,::.. g_cusip/ Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued Interest Interest NDescription/ Settle date Call date shares at sale or maturity sale or maturity/ gain interest received earned 00Broker /Acer (amort) Chg.in fair value (loss) sold Corporate Bonds 25468PDP8 03/04/2020 1.950 (1,500,000.00) 1,504,635.00 1,500,000.00 0.00 1,500,000.00 0.00 0.00 14,625.00 406.25 WALT DISNEY COMPANY 03/04/2020 (18.27) (15.00) (THE) MTN 1.95% 03-04-2020 -- -lf otal (Corporate Bonds) (1 ,500,000.00) 1,504,635.00 1 ,500,000.00 1,500,000.00 0.00 0.00 14,625.00 406.25 (18.27) (15.00) Government Bonds 9128283Y4 03/02/2020 2.250 (1,500,000.00) 1,492, 148.44 1,500,000.00 0.00 1,500,000.00 0.00 0.00 16,875.00 0.00 US TREAS NTS DTD 03/02/2020 0.00 0.00 02-28-2018 2.25% DUE 02-29-2020 - -Total (Government Bonds) (1,500,000.00) 1 ,492, 148.44 1,500,000.00 1,500,000.00 0.00 0.00 16,875.00 0.00 0.00 0.00 19 May 5, 2020, Item #2TRANSACTION REPORT CITY OF POWAY For the period March 1, 2020 -March 31, 2020 N u, a Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total NSettle date shares gain(loss) 00 02/29/2020 9128282D1 Income Government Bonds USA TREASURY 1.375% 08/31/2023 2,000,000.00 0.00 0.00 13,750.00 13,750.00 02/29/2020 02/29/2020 9128283Y4 Income Government Bonds US TREAS NTS DTD 02-28-2018 02/29/2020 1,500,000.00 0.00 0.00 16,875.00 16,875.00 02/29/2020 03/02/2020 9128283Y4 Capital Change Government Bonds US TREAS NTS DTD 02-28-2018 02/29/2020 (1,500,000.00) 0.00 1,500,000.00 0.00 1,500,000.00 03/02/2020 03/04/2020 17275RAN2 Income Corporate Bonds CISCO SYSTEMS INC 3.625% 03/04/2024 1,000,000.00 0.00 0.00 18,125.00 18,125.00 03/04/2020 03/04/2020 25468PDP8 Income Corporate Bonds WALT DISNEY COMPANY (THE) 03/04/2020 1,500,000.00 0.00 0.00 14,625.00 14,625.00 03/04/2020 03/04/2020 25468PDP8 Capital Change Corporate Bonds WALT DISNEY COMPANY (THE) 03/04/2020 (1,500,000.00) 0.00 1,500,000.00 0.00 1,500,000.00 03/04/2020 03/08/2020 3133EJFKO Income Government Agencies FEDERAL FARM CREDIT BANK 03/08/2023 1,000,000.00 0.00 0.00 13,250.00 13,250.00 03/08/2020 03/11/2020 313378CRO Income Government Agencies FEDERAL HOME LOAN BANK 03/11/2022 2,000,000.00 0.00 0.00 22,500.00 22,500.00 03/11/2020 03/12/2020 3135GOU43 Income Government Agencies FANNIE MAE 2.875% 09/12/2023 1,000,000.00 0.00 0.00 14,375.00 14,375.00 03/12/2020 03/14/2020 3133EHYM9 Income Government Agencies FEDERAL FARM CREDIT BANK 09/14/2020 2,000,000.00 0.00 0.00 15,000.00 15,000.00 03/14/2020 03/15/2020 053015AD5 Income Corporate Bonds AUTOMATIC DATA PROCESSNG 09/15/2020 1,000,000.00 0.00 0.00 11,250.00 11,250.00 03/15/2020 03/15/2020 084670BR8 Income Corporate Bonds BERKSHIRE HATHAWAY INC 03/15/2023 1,000,000.00 0.00 0.00 13,750.00 13,750.00 03/15/2020 03/15/2020 68389XBL8 Income Corporate Bonds ORACLE CORP 2.4% 15SEP2023 09/15/2023 1,000,000.00 0.00 0.00 12,000.00 12,000.00 03/15/2020 03/31/2020 912828F21 Income Government Bonds USA TREASURY 2.125% 09/30/2021 1,000,000.00 0.00 0.00 10,625.00 10,625.00 03/31/2020 03/31/2020 912828L57 Income Government Bonds USA TREASURY 1.75% 09/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 03/31/2020 20 May 5, 2020, Item #2ADDITIONAL INFORMATION CITY OF POWAY As of March 31, 2020 N cnPast performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate changes) and investors may not get 0 back the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes ;:'.;in market conditions. 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. The information contained herein is for ooyour reference only and is being provided in response to your specific request and has been obtained from sources believed to be reliable; however, no representation is made regarding its accuracy or completeness. This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document should not be duplicated, amended, or forwarded to a third party without consent from Insight. This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through two different SEC-registered investment advisers using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as Insight, Insight Group or Insight Investment. INA is an investment adviser registered with the 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. You may request, without charge, additional information about Insight. Moreover, specific information relating to Insights strategies, including investment advisory fees, may be obtained from INA's Form ADV Part 2A, which is available without charge upon request. Where indicated, performance numbers used in the analysis are gross returns. The performance reflects the reinvestment of all dividends and income. INA charges management fees on all portfolios managed and these fees will reduce the returns on the portfolios. For example, assume that $30 million is invested in an account with INA, and this account achieves a 5.0% annual return compounded monthly, gross of fees, for a period of five years. At the end of five years that account would have grown to $38,500,760 before the deduction of management fees. Assuming management fees of 0.25% per year are deducted monthly from the account, the value at the end of the five year period would be $38,022,447. Actual fees for new accounts are dependent on size and subject to negotiation. INA's investment advisory fees are discussed in Part 2A of its Form ADV. Unless otherwise stated, the source of information is Insight. Any forecasts or opinions are Insight's own at the date of this document (or as otherwise specified) and may change. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will remain in any fund, account, or strategy, or that a previously held security will not be repurchased. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. Please compare the information provided in this statement to the information provided in the statement received from your Custodian. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker. In calculating ratings distributions and weighted average portfolio quality, Insight assigns U.S Treasury and U.S agency securities a quality rating based on the methodology used within the respective benchmark index. When Moody's, S&P and Fitch rate a security, Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic. Insight assigns all other securities the lower of Moody's and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy's holdings may differ substantially from the securities that comprise the indices shown. The BofA Merrill Lynch 3 Mo UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The BofA Merrill Lynch 6 Mo UST-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. The BofA Merrill Lynch Current 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch Current 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch Current 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The BofA Merrill Lynch 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. 21 May 5, 2020, Item #2 N -..J ADDITIONAL INFORMATION As of March 31, 2020 CITY OF POWAY a1nsight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. N OOlnsight is a group of wholly owned subsidiaries of The Bank of New York Mellon Corporation. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2020 Insight Investment. All rights reserved. 22 May 5, 2020, Item #2N 00 0 -+i N 00 ~ ~ n :I: ~ m z -f C City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash March 2020 Investments & Cash with Fiscal AQ.ents INVESTMENT DESCRIPTION Settlement Date Yield to I Days to Maturity Maturitr_ Part I % of Total Face Investment Value Book Market 1 • Unrealized Value Value · Gain(Loss) 1st Am Gov't Obligations Money Mkt Fd 03/31/20 1] 100.00%] ' ~. $468,840.00 ·s468,84o.oo J --$468,840.00 I so.oo I Average/Total Paying Agent or Uninvested Cash & Dils Total Investments and Cash with Fiscal Agent Non-Mana2ed Investments INVESTMENT DESCRIPTION County Pool Wells-Fargo CD Average/Total General Cash (Union Bank) I -I . r-=" It--""-=~~~) 100.00%) -$468,840.00 $468,840.00 1 $468,840.00 _______________________ s_o._oo_l _________ _ Settlement Date -----03/31/20 08/05/19 Part II Yield to Days to % of Total ~ Maturity Maturity ' Investment 1 ~90%1 11 : 11.60%1 ·• __ 12__.61 -28.40%1 : . 1.37%] N/ A I -"'" 100.00%1 :· Part Ill $468,840.00] ----------Face Book I ' Market Unrealized Value Value ~ Value Gain(Loss) s126,021.os 11~ s126,021.os 1 =~ s121,499.oo I s1,411.9s I sso,000.00 1. = sso,000.00 l ~ sso,000.00 I so.oo I $176,027.05 I H ™ $176,027.05 I $177,499.00 I H "s1,471"."9s f Book Value $1,114,202.00 Payroll Cash (Union Bank)' _______________________ __. $20,000.00 I _________ _____. Emergency Cash (Union Bank) ~ = -~~------~ ~ ----1 $10,000.00 I _________ ____. Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash $0.00, _-________ ____. ~ =· •= It $20,0QQ.QQ 1 ---~=::--~-~-~ ~ ~ ~~ ~, __________________ .....,I -$8,600.001 -----· --· -· -~ ------~ ~ __ -~~~--~--___ -~l s1, 112,802.00 , _-_---------------