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Item 4 - City’s Investment Report as of June 30, 2020September 1, 2020, Item #4~, AGENDA REPORT CityofPoway ·~, T\\I l~ CITY cou NCI L DATE: TO: FROM: CONTACT: SUBJECT: Summary: September 1, 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 June 30, 2020 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 June 30, 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 June 30, 2020, was $126,787,204. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 23, 188, 190 Deposits at the Local Agency Investment Fund (LAIF) 27,201,429 U. S. Treasury Notes 12,882,811 U.S. Instrumentalities 42,142,444 Corporate Notes 21,372,330 Fair Value of Investment Portfolio as of June 30, 2020 $126,787,204 1 of 27 September 1, 2020, Item #4The 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 June 30, 2020, is estimated at 1.22% for LAIF, 1.01 % for the CalTRUST short-term fund, and 1.30% 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%. The Federal Reserve affirmed this target at their July 29, 2020 meeting. 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 $74,093,862; the fair value is $76,397,585 for an unrealized gain of $2,303,723 or 3.11 % 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, atJune 30, 2020, was $616,755. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $78,168 at June 30, 2020. The City's cash on hand at June 30, 2020, totaled $1,674,721. The June 30, 2020 balance of the City's Library Trust Fund was $260,992. Through the Fiscal Year 2019-20 period ending June 30, 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 of27 September 1, 2020, Item #4Fiscal Impact: The externally managed investment portfolio earned $140,514 interest during June 2020, as well as $155,791 interest during May 2020, and $146,190 during April 2020. Fees for investment services during this period totaled $9,855. Public Notification: None. Attachments: A. Investment Statistics B. June 2020 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 June 30, 2020 Reviewed/Approved By: Assistant City Manager 3 of27 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager September 1, 2020, Item #4City 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 June March 2019 2020 11,136,533 11,288,360 11,293,865 11,594,980 29,261,212 14,123,941 51,691,610 37,007,281 2.49% 1.77% 1 1 1 1 11,035,860 12,905,734 40,004,279 45,618,725 21,426,732 21,736,595 . 72,466,871 80,261,054 10,999,625 12,427,608 39,893,064 44,532,828 21,421,640 21,662,466 72,314,329 78,622,902 152,542 1,638,152 116,235 159,432 2.01% 1.97% · 1.00 2.10 1.05 2.25 124,158,481 117,268,335 2.21% 1.91% 0.58 1.44 0.61 1.54 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. June 2020 11,423,336 11,764,854 27,201,429 50,389,619 1.19% 1 1 12,882,811 42,142,444 21,372,330 76,397,585 12,426,569 41,000,597 20,666,696 74,093,862 2,303,723 140,514 1.94% 2.03 2.17 126,787,204 1.64% 1.22 1.31 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 of 27 ATTACHMENT A September 1, 2020, Item #4City of Poway Monthly Investment Portfolio Report June 30, 2020 Separately Managed Investment Pools % Return LAIF $ 27,201,429 54% 1.22% CalTrust -Short $ 11,423,336 23% 1.01% CalTrust -Medium $ 11,764,854 23% 1.30% Total Internally Managed $ 50,389,619 40% Weighted Average Yield 1.19% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 12,882,811 17% 1.88% Instrumentality Securities $ 42,142,444 55% 1.92% Corporate Notes $ 21,372,330 28% 2.03% Total Externally Managed $ 76,397,585 60% Weighted Average Yield 1.94% Years Effective Average Duration -External 2.03 Weighted Average Final Maturity -External 2.17 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 of27 27,201,429 21% 1.22% 11,423,336 9% 1.01% 11,764,854 9% 1.30% 12,882,811 10% 1.88% 42,142,444 33% 1.92% 21,372,330 17% 2.03% 126,787,204 1.64% Years 1.22 1.31 $ $ CalTrust -Short, 23% Corporate 21% Instrumentality Securities 42% 117,788,082 126,787,204 ATTACHMENT B Treasury Securities, 55% CalTrust -Short CalTrust -12% Medium Treasury Securities 13% September 1, 2020, Item #4~ )> n :c s:: m z .... n September 1, 2020, Item #4" Contents 0 ..... N " 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 18 Transaction report 19 Additional information 20 September 1, 2020, Item #400 0 .... N ...... FIXED INCOME MARKET REVIEW As of June 30, 2020 Chart 1: Unemployment rate remains at post-Great Depression highs 16 1-+ 12 10 8 6 -l 2 \fay-16 \lay-l7 \fay-lS \fay-19 --Unemplo~·meru race (~c_l Source: Bloomberg Finance LP, June 5, 2020. Chart 2: Retail sales rebound 20 15 10 \Ia_v-15 \Iay-16 \Iay-18 --Recail sales gro\Yl.h race ("c .> Source: Bloomberg Finance LP, June 16, 2020. \Jay-19 \Iay-20 CITY OF POWAY Economic Indicators and Monetary Policy Economic data, particularly relating to the consumer, generally came in better-than- expected. Monthly payrolls data increased by 2.5 million, beating expectations by around $1 O million -roughly the equivalent of New York State's workforce. Nonetheless, this still left the unemployment rate at post-Great Depression highs of 13.3%. May retail sales outperformed expectations at 17.7%, the biggest monthly gain since 1992, after recording the largest monthly decline in April. However, the recovery in retail sales is only about halfway to its pre-COVID February level. A resurgence of new COVID-19 infections, particularly in southern and western states such as Arizona, Texas and Florida, led to concerns that healthcare systems could become overstretched. Some reopening initiatives may be paused or even rolled back. The Federal Reserve (Fed) released its first 'dot-plot' this year, after March's release was abandoned due to the uncertainty at the height of the crisis. Federal Open Market Committee members collectively forecasted no change to interest rates until 2022. The Fed also committed to maintaining its Treasury and agency mortgage backed security (MBS) purchases "at least at the current pace" in coming months, which is a rate of at least $80 billion of Treasuries and $50 billion of MBS per month. This will likely expand the Fed's balance sheet to $8.5-$1 Otrn by the end of 2020 -from $7.2trn currently and $4.2trn pre-crisis. The Fed also stated that it was considering a 'yield curve control' policy, which would involve the Fed explicitly targeting 2-year to 5-year Treasury yield levels rather than just setting the overnight interest rate. Chairman Powell stated yield curve control remains an "open question" and that discussions would continue at further meetings. Interest Rate Summary Yields did not change materially over the month. At the end of June, the 3-month US Treasury bill yielded 0.15%, the 6-month US Treasury bill yielded 0.19%, the 2-year US Treasury note yielded 0.15%, the 5-year US Treasury note yielded 0.29% and the 10- year US Treasury note yielded 0.66%. 3 September 1, 2020, Item #4ACTIVITY AND PERFORMANCE SUMMARY \0 0 For the period June 1, 2020 -June 30, 2020 ~ Amortized Cost Basis Activity Summary -.J Opening balance Participant contributions 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 acaetlon Income Return of capital Closing balance Ending fair value Unrealized gain (loss) 0.44 191,893.06 (1, 191 ,893.50) Comparative Rates gf Return{%} * Twelve * Six month trailing month trailing Fed Funds 1.29 0.32 Overnight Repo 1.32 0.33 Merrill Lynch 3m US Treas Bill 1.16 0.29 Merrill Lynch 6m US Treas Bill 1.14 0.29 ML 1 Year US Treasury Note 1.17 0.31 ML 2 Year US Treasury Note 1.15 0.32 ML 5 Year US Treasury Note 1.19 0.38 * rates reflected are cumulative 75,118,370.97 191,893.50 0.00 (1 , 191 ,893.50) 0.00 0.00 (28,706.43) 4,197.59 0.00 74,093,862.13 76,397,584.76 2,303,722.63 * One month 0.01 0.01 0.01 0.01 0.01 0.02 0.03 Detail gf Amortized Cgst Basis Return Interest Accretion Realized earned {amortization) gain {loss) Corporate Bonds 47,188.83 (13,223.23) 0.00 Government Agencies 73,886.72 (10,943.20) 0.00 Government Bonds 19,438.05 (342.41) 0.00 Total 140,513.60 (24,508.84) 0.00 Summary of Amortized Cgst 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 33,965.60 62,943.52 19,095.64 116,004.76 Total portfolio 140,513.60 (24,508.84) 0.00 116,004.76 74,805,983.48 0.15 0.97 792 4 September 1, 2020, Item #4...a. 0 ACTIVITY AND PERFORMANCE SUMMARY For the period June 1, 2020 -June 30, 2020 ~ Fair Value Basis Activity Summary N -..J Opening balance 77,444,628.25 Participant contributions Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo 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 0.44 191,893.06 (1, 191,893.50) Comparative Rates of Return(%) * Twelve * Six month trailing month trailing Fed Funds 1.29 0.32 Overnight Repo 1.32 0.33 ICE BofAML 3 Months UST-BILL 1.63 0.60 ICE ML 6m US Treas Bill 2.11 0.93 ICE ML 1 Year US Treasury Note 2.86 1.69 ICE ML US Treasury 1-3 4.07 2.94 ICE ML US Treasury 1-5 5.25 4.10 * rates reflected are cumulative 191,893.50 0.00 (1, 191,893.50) 0.00 0.00 0.00 (47,043.49) 76,397,584.76 * One month 0.01 0.01 0.01 O.Q2 0.04 0.03 0.07 Detail of Fair Value Basis Return Interest Change in earned fair value Corporate Bonds 47,188.83 33,082.21 Government Agencies 73,886.72 (67,998.37) Government Bonds 19,438.05 (12,127.33) Total 140,513.60 (47,043.49) Summary of Fair Value 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 80,271 .04 5,888.35 7,310.72 93,470.11 Total portfolio 140,513.60 (47,043.49) 93,470.11 77,537,704.47 0.12 3.41 792 5 September 1, 2020, Item #4RECAP OF SECURITIES HELD As of June 30, 2020 --0 Historical ..... N cost " Corporate Bonds 20,751,756.00 Government Agencies 41,095,994.96 Government Bonds 12,423,788.53 Amortized Fair value Unrealized Weighted cost gain (loss) average final maturity (days) 20,666,695.86 21,372,329.78 705,633.92 960 41,000,597.20 42,142,443.70 1,141,846.50 694 12,426,569.07 12,882,811.28 456,242.21 832 Portfolio diversification (%) ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total Percent of portfolio 27.94 55.33 16.73 27.94 55.33 16.73 100.00 CITY OF POWAY Weighted average effective duration (years) 2.44 1.77 2.22 6 September 1, 2020, Item #4~ "' 0 ...... "' .... MATURITY DISTRIBUTION OF SECURITIES HELD As of June 30, 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 +-' U') 0 u ~ u ·;;:: E U') :i: o1>~ C!)<::) '\C!) o<IJ-' ,o v~ C!)<::) Maturity distribution o1>~ ~ flt(:-, ~~ ,~e; ~e; ~(lj ,o o'l, °., ,o ~ ,~ 'l, o1>~ 'b<::) "' CITY OF POWAY Historic cost Percent 6,488,501.25 8.74 5,972,611 .00 8.04 5,006,755.00 6.74 16,399,093.94 22.08 19,762,727.60 26.61 18,633,930.70 25.09 2,007,920.00 2.70 0.00 0.00 74,271,539.49 100.00 ~~ ~~ ~~ ~(lj ~(lj ~(lj ~ <-:, ~<-:, ,o ,o ":> ~ ~(lj 0 7 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -w 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 "" purchased (amortization) value (loss) interest cost Corporate Bonds 053015AD5 2.250 09/15/2020 1,000,000.00 1,002,630.00 1,000,120.03 1,002,206.64 2,086.61 0.00 1,812.50 6,562.50 1.35 AUTOMATIC DAT A 08/15/2020 0.00 (80.02) (1,724.02) PROCESSNG 2.25% 155EP2020 (CALLABLE 15AUG20) 191216BT6 1.875 10/27/2020 2,000,000.00 1,987,240.00 1,998,556.17 2,009,914.38 11,358.21 0.00 3,020.83 6,562.50 2.68 COCA-COLA CO/THE 1.875% 0.00 370.21 (2,915.54) 27OCT2020 68389XBB0 2.500 05/15/2022 1,500,000.00 1,542,555.00 1,538,543.92 1,550,968.11 12,424.19 0.00 3,020.83 4,687.50 2.08 ORACLE CORP 2.5% 03/15/2022 0.00 (1,880.20) (1,257.60) 15MA Y2022 (CALLABLE 15MAR22) 89233P7F7 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,954.98 2,094,257.34 93,302.36 0.00 4,229.17 24,791.67 2.69 TOYOTA MOTOR CREDIT CORP 0.00 (31.48) 16,380.16 2.625% 1 0JAN2023 084670BR8 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,015,555.73 1,059,039.30 43,483.57 0.00 2,215.27 8,020.83 1.38 BERKSHIRE HATHAWAY INC 01/15/2023 0.00 (510.02) (5,609.63) 2.75% 15MAR2023 (CALLABLE 15JAN23) 931142DH3 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,011,102.13 1,054,986.33 43,884.20 0.00 2,054.16 5,595.83 1.37 WALMART INC 2.55% 01/11/2023 0.00 (365.60) 1,418.17 11 APR2023 (CALLABLE 11JAN23) 037833AK6 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,005,979.45 1,057,070.00 51,090.55 0.00 1,933.33 3,800.00 1.36 APPLE INC 2.4% 03MAY2023 0.00 (175.35) (1,348.50) 166764BK5 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,546,371.10 1,582,040.39 35,669.29 0.00 3,100.58 4,704.33 2.09 CHEVRON CORP 2.566% 03/16/2023 0.00 (1 ,425.34) (4,032.07) 16MA Y2023 (CALLABLE 16MAR23) 69353RFL7 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,972,931.88 2,053,595.66 80,663.78 33,250.00 5,356.95 4,063.89 2.69 PNC BANK NA 3.5% 08JUN2023 05/09/2023 0.00 (2,126.29) 4,644.55 (CALLABLE 09MA Y23) 8 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 ...a. .i::i. 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 -.,J purchased (amortization) value (loss) interest cost Corporate Bonds 94988J5R4 3.550 08/14/2023 1,000,000.00 1,050,350.00 1,040,862.69 1,084,978.65 44,115.96 0.00 2,859.72 13,411.11 1.41 WELLS FARGO BANK NA 3.55% 07/14/2023 0.00 (1,120.54) 5,805.03 14AUG2023 (CALLABLE 14JUL23) 68389XBL8 2.400 09/15/2023 1,000,000.00 1,008,750.00 1,006,589.58 1,045,650.20 39,060.62 0.00 1,933.33 7,000.00 1.36 ORACLE CORP 2.4% 07/15/2023 0.00 (180.54) (8,837.16) 15SEP2023(CALLABLE 15JUL23) 17325FAS7 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,474,058.02 1,535,855.71 61,797.69 0.00 4,116.39 22,285.28 2.00 CITIBANK NA 3.65% 12/23/2023 0.00 (1,773.13) 8,569.99 23JAN2024 (CALLABLE 23DEC23) 91159HHV5 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,981,897.04 2,076,696.01 94,798.97 0.00 5,165.63 25,828.13 2.69 US BANCORP 3.375% 01/05/2024 0.00 (1,942.22) 6,353.18 05FEB2024(CALLABLE 05JAN24) 17275RAN2 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,062,279.33 1,113,935.44 51,656.11 0.00 2,920.14 11,680.56 1.44 CISCO SYSTEMS INC 3.625% 0.00 (1,411.16) (3,091.16) 04MAR2024 02665WCZ2 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,010,893.81 1,051,135.62 40,241.81 12,000.00 1,933.33 200.00 1.36 AMERICAN HONDA FINANCE 0.00 (227.43) 20,326.81 2.4% 27JUN2024 Total Corporate Bonds 20,200,000.00 20,751,756.00 20,666,695.86 21,372,329.78 705,633.92 45,250.00 45,672.16 149,194.13 27.94 0.00 (12,879.11) 34,682.21 Government Agencies 3133EHYM9 1.500 09/14/2020 2,000,000.00 1,993,720.00 1,999,567.70 2,006,590.94 7,023.24 0.00 2,416.66 8,833.33 2.68 FEDERAL FARM CREDIT BANK 0.00 175.25 (1,999.84) 1 .5% 14SEP2020 3130AEWA4 2.625 10/01/2020 2,000,000.00 1,990,580.00 1,998,761.24 2,012,239.52 13,478.28 0.00 4,229.17 12,979.17 2.68 FEDERAL HOME LOAN BANK 0.00 421.99 (4,059.48) 2.625% 01 OCT2020 9 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 ...a. u, 2tCusip/ 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 -.J purchased (amortization) value (loss) interest cost Government Agencies 3133EGM51 1.650 12/01/2020 1,000,000.00 996,971.00 999,681.71 1,006,080.35 6,398.64 8,250.00 1,329.17 1,329.17 1.34 FEDERAL FARM CREDIT BANK 0.00 63.23 (926.64) 1.65% 01 DEC2020 3130A3UQ5 1.875 12/11/2020 1,000,000.00 997,820.00 999,679.47 1,007,688.54 8,009.07 9,375.00 1,510.41 989.58 1.34 FEDERAL HOME LOAN BANK 0.00 59.73 (1,037.79) 1.875% 11 DEC2020 3133EKAJ5 2.500 02/11/2021 1,000,000.00 999,265.00 999,773.77 1,014,512.40 14,738.63 0.00 2,013.89 9,652.78 1.35 FEDERAL FARM CREDIT BANK 0.00 30.71 (1,675.59) 2.5% 11 FEB2021 3133EJJD2 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,001,653.77 1,017,817.64 16,163.87 0.00 2,046.11 5,997.22 1.35 FEDERAL FARM CREDIT BANK 0.00 (180.41) (1,990.15) 2.54% 05APR2021 313379RB7 1.875 06/11/2021 1,000,000.00 985,600.00 994,055.21 1,015,050.23 20,995.02 9,375.00 1,510.41 989.58 1.33 FEDERAL HOME LOAN BANK 0.00 523.01 (2,066.01) 1.875% 11JUN2021 3135G0U35 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,007,680.80 2,049,703.12 42,022.32 27,500.00 4,430.55 1,222.22 2.72 FANNIE MAE 2.75% 22JUN2021 0.00 (654.61) (3,923.06) 3133EKCB0 2.500 07/01/2021 1,000,000.00 999,030.00 999,585.60 1,022,897.32 23,311 .72 0.00 2,013.89 12,430.56 1.35 FEDERAL FARM CREDIT BANK 0.00 34.44 (1,144.36) 2.5% 01JUL2021 3137EAEC9 1.125 08/12/2021 1,000,000.00 991,273.00 994,053.81 1,010,635.89 16,582.08 0.00 906.25 4,312.50 1.33 FREDDIE MAC 1.125% 0.00 443.75 (431.35) 12AUG2021 3135G0Q89 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,893,361.88 1,928,463.12 35,101 .24 0.00 2,104.51 6,023.26 2.55 FANNIE MAE 1.375% 0.00 435.76 (1,721 .91) 07OCT2021 3130AABG2 1.875 11/29/2021 1,000,000.00 990,090.00 994,772.86 1,024,268.02 29,495.16 0.00 1,510.41 1,614.58 1.33 FEDERAL HOME LOAN BANK 0.00 308.08 (1,453.01) 1.875% 29NOV2021 10 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -0\ ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % I\JDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port ..... purchased (amortization) value (loss) interest cost Government Agencies 3135G0U92 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,507,474.21 1,555,553.18 48,078.97 0.00 3,171 .88 18,484.38 2.04 FANNIE MAE 2.625% 0.00 (420.51) (2,969.14) 11JAN2022 3137EADB2 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,012,154.58 1,033,337.07 21,182.49 0.00 1,913.19 11,017.36 1.37 FREDDIE MAC 2.375% 0.00 (659.38) (1,827.04) 13JAN2022 313378CR0 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,002,422.20 2,066,119.02 63,696.82 0.00 3,625.00 13,625.00 2.70 FEDERAL HOME LOAN BANK 0.00 (118.93) (4,943.48) 2.25% 11 MAR2022 3135G0V59 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,934,483.67 3,006,044.18 71,560.51 0.00 5,256.25 14,137.50 3.96 FANNIE MAE 2.25% 0.00 (1,611.39) (4,969.85) 12APR2022 3133EA5E4 1 . 930 10/18/2022 2,000,000.00 2,015,820.00 2,013,098.96 2,075,849.14 62,750.18 0.00 3,109.44 7,720.00 2.71 FEDERAL FARM CREDIT BANK 0.00 (474.60) (3,707.26) 1 . 93% 18OCT2022 31331K3A6 2. 710 12/13/2022 1,000,000.00 1,028,921.06 1,020,544.89 1,059,270.99 38,726.10 13,550.00 2,183.05 1,279.72 1.39 FEDERAL FARM CREDIT BANK 0.00 (698.01) (2,663.22) 2. 71 % 13DEC2022 31331KAF7 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,969,033.87 2,028,311 .62 59,277.75 0.00 6,095.24 34,049.25 2.70 FEDERAL FARM CREDIT BANK 0.00 (3,890.00) (7,090.55) 4.09% 18JAN2023 3133EKKT2 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,012,525.78 1,050,722.16 38,196.38 0.00 1,812.50 8,875.00 1.37 FEDERAL FARM CREDIT BANK 0.00 (400.61) (2,352.03) 2.25% 08FEB2023 3133EJFK0 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,026,059.70 1,062,922.85 36,863.15 0.00 2,134.72 8,244.44 1.39 FEDERAL FARM CREDIT BANK 0.00 (807.64) (2,771.21) 2.65% 08MAR2023 3137EAEN5 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,051,321.09 2,149,729.32 98,408.23 27,500.00 4,430.56 1,680.56 2.78 FREDDIE MAC 2.75% 0.00 {1,440.26) {2,897.68) 19JUN2023 11 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -..... 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 ..... purchased (amortization) value (loss) interest cost Government Agencies 3134GU3T5 1.800 07/21/2023 1,500,000.00 1,501,995.00 1,500,290.94 1,501,020.36 729.42 0.00 2,175.00 11,925.00 2.02 FREDDIE MAC 1.8% 21JUL2023 07/21/2020 0.00 (415.62) (1,440.20) (CALLABLE 21JUL20) 3135G0U43 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,029,950.47 1,083,711.31 53,760.84 0.00 2,315.97 8,625.00 1.40 FANNIE MAE 2.875% 0.00 (779.96) (1,423.46) 12SEP2023 3133EKVB9 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,172.53 2,100,307.70 102,135.17 0.00 2,996.66 7,543.33 2.69 FEDERAL FARM CREDIT BANK 0.00 46.18 (2,061.42) 1.86% 17OCT2023 3130A3VC5 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,011,512.61 1,063,575.30 52,062.69 11,250.00 1,812.50 1,375.00 1.37 FEDERAL HOME LOAN BANK 0.00 (278.98) (2,615.05) 2.25% 08DEC2023 3135G0V34 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,022,303.22 1,078,547.91 56,244.69 0.00 2,013.88 10,069.44 1.38 FANNIE MAE 2.5% 05FEB2024 0.00 (516.68) (2,074.01) 3135G0V75 1.750 07/02/2024 2,000 I 000. 00 2,007,920.00 2,006,620.66 2,111,474.50 104,853.84 0.00 2,819.45 17,305.56 2.70 FANNIE MAE 1.75% 02JUL2024 0.00 (137.74) 236.42 Total Government Agencies 40,650,000.00 41 ,095, 994. 96 41,000,597.20 42,142,443.70 1, 141,846.50 106,800.00 73,886.72 242,330.49 55.33 0.00 (10,943.20) (67,998.37) Government Bonds 9128282Q2 1.500 08/15/2020 2,000,000.00 1,990,156.25 1,999,556.07 2,003,260.50 3,704.43 0.00 2,472.53 11,208.79 2.68 USA TREASURY 1 .5% 0.00 289.53 (2,381.24) 15AUG2020 912828F21 2.125 09/30/2021 1,000,000.00 991,015.63 995,659.77 1,024,218.75 28,558.98 0.00 1,741.80 5,283.47 1.33 USA TREASURY 2.125% 0.00 284.92 (1,562.50) 30SEP2021 9128285F3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,507,872.74 1,552,089.84 44,217.10 0.00 3,534.84 8,954.92 2.04 USA TREASURY 2.875% 0.00 (500.38) (3,339.84) 15OCT2021 12 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -00 ~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 ..... purchased (amortization) value (loss) interest cost Government Bonds 912828XW5 1.750 06/30/2022 1,000,000.00 998,515.63 999,026.42 1,031,484.38 32,457.96 8,750.00 1,442.31 0.00 1.34 USA TREASURY 1.75% 0.00 40.01 (1,250.00) 30JUN2022 912828L57 1.750 09/30/2022 1,000,000.00 999,417.41 999,596.56 1,035,429.69 35,833.13 0.00 1,434.42 4,351.09 1.35 USA TREASURY 1.75% 0.00 14.73 (1,171.87) 30SEP2022 9128282D1 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,974,697.84 2,075,390.62 100,692.78 0.00 2,241.85 9,116.85 2.65 USA TREASURY 1 .375% 0.00 656.06 (312.50) 31AUG2023 912828U57 2. 125 11/30/2023 1,900,000.00 1,925,679.69 1,920,092.95 2,024,687.50 104,594.55 20,187.50 3,309.43 3,309.43 2.59 USA TREASURY 2.125% 0.00 (483.00) (1,484.38) 30NOV2023 912828X70 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,030,066.72 2,136,250.00 106,183.28 0.00 3,260.87 6,630.44 2.74 USATREASURY2%30APR2024 0.00 (644.28) (625.00) Total Government Bonds 12,400,000.00 12,423,788.53 12,426,569.07 12,882,811.28 456,242.21 28,937.50 19,438.05 48,854.99 16.73 0.00 (342.41) (12,127.33) 13 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 ..... \0 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) -.J 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 2.68 2,006,590.94 2.63 0.21 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971 .00 1.34 1,006,080.35 1.32 0.42 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.35 1,014,512.40 1.33 0.61 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.35 1,017,817.64 1.33 0.76 3133EKCB0 FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.35 1,022,897.32 1.34 0.98 3133EASE4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 2.71 2,075,849.14 2.72 2.25 31331K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.39 1,059,270.99 1.39 2.39 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.70 2,028,311.62 2.65 2.41 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.37 1,050,722.16 1.38 2.53 3133EJFK0 FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.39 1,062,922.85 1.39 2.59 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.69 2,100,307.70 2.75 3.20 Issuer total 14,850,000.00 15,094,485.56 20.32 15,445,283.11 20.22 1.77 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 2.68 2,003,260.50 2.62 0.13 912828F21 USA TREASURY 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.33 1,024,218.75 1.34 1.23 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.04 1,552,089.84 2.03 1.27 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.34 1,031,484.38 1.35 1.97 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.35 1,035,429.69 1.36 2.21 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.65 2,075,390.62 2.72 3.10 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.59 2,024,687.50 2.65 3.31 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.74 2, 136,250.00 2.80 3.70 Issuer total 12,400,000.00 12,423,788.53 16.73 12,882,811.28 16.86 2.22 Federal National Mortgage Association 3135G0U35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.72 2,049,703.12 2.68 0.97 14 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 N 0 ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares -...J cost hist cost value mkt value dur (yrs) Federal National Mortgage Association 3135GOQ89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.55 1,928,463.12 2.52 1.26 3135GOU92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 2.04 1,555,553.18 2.04 1.49 3135GOV59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 3.96 3,006,044.18 3.93 1.74 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.40 1,083,711.31 1.42 3.06 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.38 1,078,547.91 1.41 3.43 3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.70 2,111,474.50 2.76 3.85 Issuer total 12,300,000.00 12,439,722.40 16.75 12,813,497.32 16.77 2.10 Federal Home Loan Banks 3130AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.68 2,012,239.52 2.63 0.25 3130A3UQ5 FEDERAL HOME LOAN 1.875 12/11/2020 AA+ Aaa 1,000,000.00 997,820.00 1.34 1,007,688.54 1.32 0.45 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.33 1,015,050.23 1.33 0.94 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.33 1,024,268.02 1.34 1.40 313378CRO FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.70 2,066, 119.02 2.70 1.66 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.37 1,063,575.30 1.39 3.32 Issuer total 8,000,000.00 7,982,690.00 10.75 8,188,940.63 10.72 1.25 Federal Home Loan Mortgage Corp 3137EAEC9 FREDDIE MAC 1.125% 1.125 08/12/2021 AA+ Aaa 1,000,000.00 991,273.00 1.33 1,010,635.89 1.32 1.11 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.37 1,033,337.07 1.35 1.50 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.78 2,149,729.32 2.81 2.87 3134GU3T5 FREDDIE MAC 1.8% 1.800 07/21/2023 07/21/2020 AA+ Aaa 1,500,000.00 1,501 ,995.00 2.02 1,501,020.36 1.96 0.80 Issuer total 5,500,000.00 5,579,097.00 7.51 5,694,722.64 7.45 1.75 Oracle Corp 68389XBBO ORACLE CORP 2.5% 2.500 05/15/2022 03/15/2022 A A3 1,500,000.00 1,542,555.00 2.08 1,550,968.11 2.03 1.68 15 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 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) -.J 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 1.36 1,045,650.20 1.37 2.94 Issuer total 2,500,000.00 2,551,305.00 3.44 2,596,618.31 3.40 2.18 Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 2.69 2,094,257.34 2.74 2.43 Issuer total 2,000,000.00 2,001,380.00 2.69 2,094,257.34 2.74 2.43 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 2.69 2,076,696.01 2.72 3.31 Issuer total 1,900,000.00 1,999,636.00 2.69 2,076,696.01 2.72 3.31 PNC Bank NA 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.69 2,053,595.66 2.69 2.74 Issuer total 1,900,000.00 1,995,436.00 2.69 2,053,595.66 2.69 2.74 Coca-Cola Co/The 191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ A1 2,000,000.00 1,987,240.00 2.68 2,009,914.38 2.63 0.33 Issuer total 2,000,000.00 1,987,240.00 2.68 2,009,914.38 2.63 0.33 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 2.09 1,582,040.39 2.07 2.64 Issuer total 1,500,000.00 1,552,215.00 2.09 1,582,040.39 2.07 2.64 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 2.00 1,535,855.71 2.01 3.25 Issuer total 1,400,000.00 1 ,484,224.00 2.00 1,535,855.71 2.01 3.25 16 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 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) Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.44 1,113,935.44 1.46 3.45 Issuer total 1,000,000.00 1,070,370.00 1.44 1,113,935.44 1.46 3.45 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 1.41 1,084,978.65 1.42 2.87 Issuer total 1,000,000.00 1,050,350.00 1.41 1,084,978.65 1.42 2.87 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.38 1,059,039.30 1.39 2.46 Issuer total 1,000,000.00 1,021 ,370.00 1.38 1,059,039.30 1.39 2.46 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.36 1,057,070.00 1.38 2.75 Issuer total 1,000,000.00 1,007,920.00 1.36 1,057,070.00 1.38 2.75 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 1.37 1,054,986.33 1.38 2.47 Issuer total 1,000,000.00 1,015,270.00 1.37 1,054,986.33 1.38 2.47 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.36 1,051,135.62 1.38 3.81 Issuer total 1,000,000.00 1,012,410.00 1.36 1,051,135.62 1.38 3.81 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 1.35 1,002,206.64 1.31 0.13 Issuer total 1,000,000.00 1,002,630.00 1.35 1,002,206.64 1.31 0.13 17 September 1, 2020, Item #4N w SECURITIES SOLD AND MATURED For the period June 1, 2020 -June 30, 2020 g. Cusip/ Trade date Coupon Maturity/ Par value or NDescription/ Settle date Call date shares ...,.Broker Corporate Bonds 69353RES3 PNC BANK NA 2.6% 21 JUL2020 (CALLABLE 22JUN20) 06/22/2020 2.600 (1,000,000.00) 06/22/2020 Historical cost Amortized cost 1,016,010.00 at sale or maturity /Acer (amort) 1,000,000.00 (344.12) Total (Corporate Bonds) (1,000,000.00) 1,016,010.00 1 ,000,000.00 (344.12) Price Fair value at 0.00 sale or maturity / Chg.in fair value 1,000,000.00 (1 ,600.00) 1,000,000.00 (1,600.00) Realized gain (loss) 0.00 0.00 CITY OF POWAY Accrued interest sold Interest received 0.00 10,905.56 Interest earned 1,516.67 0.00 10,905.56 1,516.67 18 September 1, 2020, Item #4TRANSACTION REPORT CITY OF POWAY For the period June 1, 2020 -June 30, 2020 N .i:. ~Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total NSettle date shares gain(loss) " 05/31/2020 912828U57 Income Government Bonds USA TREASURY 2.125% 11/30/2023 1,900,000.00 0.00 0.00 20,187.50 20,187.50 05/31/2020 06/01/2020 3133EGM51 Income Government Agencies FEDERAL FARM CREDIT BANK 12/01/2020 1,000,000.00 0.00 0.00 8,250.00 8,250.00 06/01/2020 06/08/2020 3130A3VC5 Income Government Agencies FEDERAL HOME LOAN BANK 12/08/2023 1,000,000.00 0.00 0.00 11,250.00 11,250.00 06/08/2020 06/08/2020 69353RFL7 Income Corporate Bonds PNC BANK NA 3.5% 08JUN2023 06/08/2023 1,900,000.00 0.00 0.00 33,250.00 33,250.00 06/08/2020 06/11/2020 3130A3UQ5 Income Government Agencies FEDERAL HOME LOAN BANK 12/11/2020 1,000,000.00 0.00 0.00 9,375.00 9,375.00 06/11/2020 06/11/2020 313379RB7 Income Government Agencies FEDERAL HOME LOAN BANK 06/11/2021 1,000,000.00 0.00 0.00 9,375.00 9,375.00 06/11/2020 06/13/2020 31331 K3A6 Income Government Agencies FEDERAL FARM CREDIT BANK 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 06/13/2020 06/19/2020 3137EAEN5 Income Government Agencies FREDDIE MAC 2.75% 06/19/2023 2,000,000.00 0.00 0.00 27,500.00 27,500.00 06/19/2020 06/22/2020 3135GOU35 Income Government Agencies FANNIE MAE 2.75% 22JUN2021 06/22/2021 2,000,000.00 0.00 0.00 27,500.00 27,500.00 06/22/2020 06/22/2020 69353RES3 Income Corporate Bonds PNC BANK NA 2.6% 21JUL2020 07/21/2020 1,000,000.00 0.00 0.00 10,905.56 10,905.56 06/22/2020 06/22/2020 69353RES3 Capital Change Corporate Bonds PNC BANK NA 2.6% 21JUL2020 07/21/2020 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 06/22/2020 06/29/2020 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 06/29/2020 06/30/2020 912828XW5 Income Government Bonds USA TREASURY 1.75% 06/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 06/30/2020 19 September 1, 2020, Item #4ADDITIONAL INFORMATION CITY OF POWAY As of June 30, 2020 N U1Past 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 .....iyour 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 ofTreasury bills with time to maturity of less than 6 months. The Bof A 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. 20 September 1, 2020, Item #4N °' ADDITIONAL INFORMATION As of June 30, 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 -..Jlnsight is a group of wholly owned subsidiaries ofThe Bank of New York Mellon Corporation. BNY Mellon is the corporate brand ofThe 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 ofThe 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. 21 September 1, 2020, Item #4N -.J 0 """ N -.J City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash June 2020 Investments & Cash with Fiscal A ents Settlement INVESTMENT DESCRIPTION Date 1st Am Gov't Obligations Money Mkt Fd 06/30/20 Average/Total Paying Agent or Uninvested Cash & DITs Total Investments and Cash with Fiscal Agent Non-ManaQed Investments INVESTMENT DESCRIPTION County Pool Wells-Fargo CD Average/Total General Pavroll & Pettv Cash General Cash (Union Bank) Payroll Cash (Union Bank) Emergency Cash (Union Bank) Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash Settlement Date 06/30/20 08/05/20 -I Part I Yield to Days to % of Total Maturity Maturity Investment 0.01%1 1 I 100.00%1 I I I I I I I I I 0.01%1 11 100.00%1 Part II Yield to I Maturity Days to I Maturity % of Total I Investment 1.56%1 1 I 36.04%1 0.05%1 361 63.96%1 0.59%1 N/A I 100.00%1 Part Ill - Face Value $616,755.00 $616,755.00 Face Value I s28, 168.oo I s5o,ooo.oo I $78,168.00 I I Book Value $616,755.00 $616,755.00 $0.00 $616,755.00 Book Value I s28, 168.oo I $50,000.00 I $78, 168.00 1 Book Value $1,616,121.00 $20,000.00 $10,000.00 $0.00 $20,000.00 $8,600.00 $1,674,721.00 Market Value $616,755.00 $616,755.00 Market Value I s28,497.oo I s5o,ooo.oo I $78,497.oo I Unrealized Gain(Loss) so.oo 1 Unrealized I Gain(Loss) $329.oo I so.oo I $329.oo I I