Item 1.4 - City’s Investment Report as of September 30, 2019DATE:
TO:
FROM:
CONTACT:
City of Poway
COUNCIL AGENDA REPORT
November 19, 2019
Honorable Mayor and Members of the City Council
Aaron Beanan, Director of Finance ')
Aaron Beanan, Director of Finance
(858) 668-4411 or abeanan(rpoway.org
SUBJECT: City's Investment Report as of September 30, 2019
Summary:
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 September 30, 2019.
Recommended Action:
It is recommended that the City Council accept and file the attached report.
Discussion:
Pursuant to Government Code Sec. 53646(b) and the City's Investment Policy, the Finance
Director (Le., 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 September 30, 2019, was $114,117,021. It consisted
of the following:
Investment Portfolio
Total
Deposits at CaITRUST
$ 22,571,198
Deposits at the Local Agency Investment Fund (LAIF)
8,602,474
U. S. Treasury Notes
15, 015,768
U. S. Instrumentalities
44, 304,425
Corporate Notes
23,623,155
$114,117,021
Fair Value of Investment Portfolio as of June 30, 2019
II
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.
1 of 31
November 19, 2019, Item #1.4
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
CaITRUST earn interest at variable rates. The interest rate for the month ending September 30,
2019, is estimated at 2.28% for LAIF, 2.20% for the CaITRUST short-term fund, and 2.13% for
the CaITRUST 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 over the last few months
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. While not totally within the scope of this report's time period, the
Federal Reserve decided to lower the target federal funds rate by 25 basis points three times
since June: July 31st, September 18th, and October 30tH
For fixed income securities, the difference between amortized cost and fair value is considered
an unrealized gain or Toss. 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 $82,564,038; the fair value is $82,943,349 for an
unrealized gain of $379,311 or .46% 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 September 30, 2019, was $474,172. The source of the
market value information for these investments was U.S. Bank. The total book value of the non -
managed investments was $106,516 at September 30, 2019. The City's cash on hand at
September 30, 2019, totaled $596,943.
The September 30, 2019 balance of the City's Library Trust Fund was $258,071. Through the
Fiscal Year 2019-20 period ending September 30, 2019, no transfer of interest earnings has been
made to the General Fund. At the close of Fiscal Year 2018-19, 90% of the Library Trust Fund's
interest earnings, or $4,954, was 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).
Fiscal Impact:
The externally managed investment portfolio earned $140,948 of interest during September 2019
as well as $142,761 during August 2019 and $128,920 during July 2019.
Public Notification:
None.
2of31
November 19, 2019, Item #1.4
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 September 30, 2019
Attachments:
Reviewed/Approved By:
Wendy serman
Assistant City Manager City Attorney
Reviewed By: Approved By:
Alan Fenstermacher
Chas Hafeftine
City Manager
3 of 31 November 19, 2019, Item #1.4
City of Poway
Investment Statistics
September
2018
June
2019
September
2019
Separately Managed Investment Pools
Fair Value:
CaITRUST Short -Term Deposits 10,894,784 11,136,533 11,203,088
CaITRUST Medium -Term Deposits 10,883,166 11,293,865 11,368,110
Deposits at the Local Agency Investment Fund (LAIF) 12,357,464 29,261,212 8,602,474
Total Fair Value 34,135,414 51,691,610 31,173,672
Weighted Average Yield 2.13% 2.49% 2.20%
Effective Average Duration in days 1 1 1
Weighted Average Maturity in days 1 1 1
Externally Managed Investment Pools
Fair Value:
U. S. Treasury Notes 13,875,516 11,035,860 15,015,768
U. S. Instrumentalities 36,470,876 40,004,279 44,304,426
Corporate Bonds 21,341,784 21,426,732 23,623,155
Municipal Bonds 1,233,456 0 0
Total Fair Value 72,921,632 72,466,871 82,943,349
Amortized Cost Value:
U. S. Treasury Notes 13,971,119 10,999,625 14,927,719
U. S. Instrumentalities 36,847,479 39,893,064 44,084,166
Corporate Bonds 21,569,366 21,421,640 23,552,153
Municipal Bonds 1,235,000 0 0
Total Amortized Cost Value 73,622,964 72,314,329 82,564,038
Unrealized Gain (Loss) (701,332) 152,542 379,311
Accrued Interest Earned 102,191 116,235 140,948
Weighted Average Yield 1.76% 2.01% 2.01%
Effective Average Duration in years 1.05 1.00 1.91
Weighted Average Maturity in years 1.06 1.05 2.02
Total Fair Value of Portfolio Assets 107,057,046 124,158,481 114,117,021
Weighted Average Yield
Effective Average Duration in years
Weighted Average Maturity in years
1.88% 2.21% 2.06%
0.72 0.58 1.39
0.72 0.61 1.47
Glossary of Yield Terminology
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.
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 31 ATTACHMENT A
November 19, 2019, Item #1.4
City of Poway
Monthly Investment Portfolio Report
September 30, 2019
Seperately Managed Investment Pools % Return
LAIF
CalTrust - Short
CalTrust - Medium
Total Internally Managed
Weighted Average Yield
Effective Average Duration - Internal
Weighted Average Maturity - internal
8,602,474 28% 2.28%
11,203,088 36% 2.20%
11,368,110 36% 2.13%
31,173,672 27%
2.20%
Days
1
1
CalTrust -
Medium, 36%
LAIF, 28%
Externally Managed Assets % Return
Treasury Securities
Instrumentality Securities
Corporate Notes
Total Externally Managed
Weighted Average Yield
$ 15,015,768 18% 1.92%
$ 44,304,426 53% 1.99%
$ 23,623,155 28% 2.0995
$ 82,943,349 73%
Effective Average Duration - External
Weighted Average Final Maturity - External
2.01%
Years
1.91
2.02
Corporate
Notes, 28%
Treasury
Securities. 18%
Instrumentality
Securities, 53%
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
8,602,474 8% 2.28%
11,203,088 10% 2.20%
11,368,110 10% 2.13%
15,015,768 13% 1.92%
44,304,426 3996 1.99%
23,623,155 21% 2.09%
114,117,021
Corporate Notes
22%
Ca !Trust - Short
11%
CalTrust-
Medium
11%
2.06%
Years
1.39 Instrumentality
1.47 Securities
42%
Treasury
Securities
14%
Portfolio Change
Beginning Balance
Ending Balance
Assets values shown at Market
115,352,745
114,117,021
5 of 31 ATTACHMENT B
November 19, 2019, Item #1.4
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FOR PROFESSIONAL CLIENTS ONLY
NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL
PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT
ITY OF FOWAY
September 2019
Insight
INVESTMENT
BNY MELLON 1 I N\' ESTM ENT MANAGEMENT
Contents
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 15
Securities purchased 20
Securities sold and matured 21
Transaction report 22
Additional information 24
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FIXED INCOME MARKET REVIEW
As of September 30, 2019
CO
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s
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Chart 1: ISM Manufacturing & felon -Manufacturing Indices 9130f2014-9/30/2019
Sop -1? Sop -]ft Sep -17 Scp-18
'rSttnuraeLoring Non-ManafaeEuring
Source: Bloomberg Finance LP, September 30, 2019.
Chart 2: Treasury yield curve: 913012018 and 9/30/2019
3.50% -
3.00%
2S0•
2.00%
1.50%
0.50%
O.UU%
Sep -19
m
Eco lyr 2 y Syr 4yr Syr 6yr Tyr Syr Syr 10 yr
9fllhf2014 9f30+20114
Source: Bloomberg Finance LP, September 30, 2019.
DT( OF POWAY
Economic Indicators and Monetary Poiicv
The Institute for Supply Management 115Ma Manufacturing and Non -Manufacturing
Indices diverged in August. The Non -Manufacturing Index increased to a three-month
high of 56.4 from 53.7 in July with broad-based improvement and the business activity
subcomponent surged to 61.5 from the July reading of 53.1. Meanwhile, the
Manufacturing Index fell in August to 49.1 which was below market expectations and
the lowest reading since 2016. The new orders subcomponent fell to more than a 7 -
year low of 47.2 and the production measure fell to 49.5, the weakest since 2015_ For
the ISM Indices, readings below 50 indicate a contracting environment- (See Chart 1.)
The employment report showed that 130,040 jobs were added in August, below the
forecast for 160,000 new jobs, and July growth was revised to 159,000 jobs added
from 164,000 originally reported. The unemployment rate was unchanged at 3.7% for
the last three months, just off the historic low of 3.6% witnessed in April and May. The
underemployment rate, which is the broadest measure of unemployment and
includes marginally attached workers, increased to 7.2% in August from 7% in July.
Average hourly earnings increased 0.4% in August for annual growth of 3.2%. Average
hourly earnings have been at least 3% since August 201&
On September 18, the Federal Open Market Committee {FOMC} eased monetary
policy further by lowering the fed funds target rate by 25bp to a range of 1.75%-2%.
However, its Summary of Economic Projections presented the cut in a somewhat
hawkish light while seven participants argued for another rate cut before the end of
the year, five indicated that the September cut was not warranted. The next meeting
of the FOMC is on October 30.
Interest Rate Summary
At the end of September, the 3 -month US Treasury bill yielded 1.82%, the 6 -month LiS
Treasury bill yielded 1.82%, the 2 -year US Treasury note yielded 1.62%, the 5 -year US
Treasury note yielded 1.55% and the 10 -year U5 Treasury note yielded 1.67%. See
Chart 2).
3
ACTIVITY AND PERFORMANCE SUMMARY
For the period September 1, 2019 - September 30, 2019
u
ss
P•4# well `640Z `61. JegweAoN
Amortized Cost Basis Activity Summary
Openitg balance
Income received
Total receipts
'Total disbursements
Interportfalio transfers
Total Interportfolio transfers
Realized gain (lass'
Total amortization expense
Total OIWNKKT accretion income
Return of capital
Closing balance
:Ending fair value
Unrealized gain (loss)
165,892.84
(22,321.21)
82,427,731.47
165,892.84
0.00
122,321.21 l
1,065.45
118,347.95}
10,017.54
0.00
82,564,038_14
82,943,349.37
379,311.23
Comparative Rates of Return (%
*Twelve *six
month trailing month trailing
Fed Funds
OvernightRepo
Merrill Lynch 3m 115 Trees 3111
Merrill Lynch 6m U5 Trees Bill
Mil Year US Treasury Note
ML 2 Year US Treasury Note
MLS Year U5 Treasury Note
* rates reflected are cumulative
2.31
2.40
2.23
2.25
2.33
2.28
2.28
1.15
1.18
1.06
1.03
1.03
0.96
0.94
* One month
0.17
0.17
0_15
0.15
0.15
0.13
0.13
CITY 13F POWAY
Corporate Bonds
Government Agencies
Government Bonds
Total
Detail of Amortized
Interest
eamed
44,732.29
73,176.5.4
23,039.20
140,948.03
Cost Basis Return
Accretion Realized
(amortization) gain doss)
{4,700.55)
(3,580.57)
(49.29)
{8,330.411
Total
income
1,065.45 41,097.19
0.00 69,595.97
0 00 22,989.91
1,065.45 133,683.07
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 {%)
YTO return 1%)
Weighted averagefinal maturity in days
Total portfolio
140,948.03
(8,330.41)
1,065.45
133,683.07
82,028,575.84
0.16
1.47
736
4
ACTIVITY AND PERFORMANCE SUMMARY
For the period September 1, 2019 - September 30, 2019
ti'6# well `6602 '61 JagwenoN
Fair Vatue Basis Activity Summary
Opening balance
Income received
Total receipts
Total disbursements
I me rportfoli o transfers
Total fnterportfolio transfers
Unrealized gain (loss) on security movements
Return of capital
Change in fair value for the period
Ending fair value
165,892.84
f22,321.21�
82,986,643.34
165,892.84
0.00
122,321.211
0.00
0.00
1186,865.60)
82,943,349.37
Comparative Rates of Return (%I
* Twelve *Six ' One month
month trailing month trailing
Fed Funds 2.31 1.15 017
Overnight Repo 2.40 1.18 0.17
ICE BofAML 3 Months US T -BILL 239 1.20 0.17
ICE ML Ern LIS Treas Bill 2.64 1.36 0.17
ICE ML 1 Year US Treasury Note 3.73 1.50 0_11
ICE ML US Treasury 1-3 4.36 2.02 10.111
ICE ML US Treasury 1-5 5.62 2.59 )0.24)
*rates reflected are cumulative
CITY OF PO WAY
Detail of Fair Value Basis Return
Interest Change in Total
earned fair value income
Corporate Bonds 44,732.24 (32,455.37)
Gove rn m ent Agencies 73,176.54 11 14,759,211
Gave rnment Bonds 23,039.20 (39,651.02)
Total 140,948.43 086,865.601
12, 276.92
(41,582 67}
( 16,611 .821
(45,917,57)
Summary of Fair Value Basis Return for the Period
Total portfolio
Interest earned 140,948.03
Change in fair value 1186,865.601
Total income an portfolio 145,917.57)
Average daily total value - 82,836,900.75
Period return 1X3 10 65)
YTD return (%) 263
Weighted average final maturity in days 736
* Total value equals market value and accrued interest
5
RECAP OF SECURITIES HELD
As of September 30, 2019
17'1# wall `6402 `61. JagWanoN
Historical
cost
Amortized
cost
Fair value
Unrealized
gain (loss)
Weighted
average
final
maturity (days)
Percent
of
portfolio
Weighted
average
effective
duration (years)
Corporate Bonds
Government Agencies
Government Bonds
23,631,882.00
44, 022,870.06
14, 918,905.72
23,552,152.75
44,084,166.64
14,927,718.75
23,623,154.79
44,304,426.46
15,015, 768.12
71,002.04
220,259.82
88,049.37
683
695
941
28.62
53.31
18.07
1.73
1.82
2.47
iota)
8 . , tr,, . .
•, 11.23
736 100.00
1.91
Portfolio diversification (%)
•
• Corporate Bonds
• Govern ment Agencies
• Government Bonds
Total
28.62
53.31
18.07
10000
MATURITY DISTRIBUTION OF SECURITIES HELD
As of September 30, 2019
N
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Col
i
17'1# wall `6402 `61. JagWanoN
Maturity
Historic cost Percent
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
7,972,438.75
11528,637.44
12,893,616.75
11,978,396.00
8,012,685.17
18,178,296.35
12, 009,587.32
0.00
9.66
13.96
15.62
14.51
9.70
22.02
14.54
0.00
82, 573,657.78 100.00
Historical cost [mm)
20.00
15.00
10.00
5.00
0.00
Maturity distribution
as iia e"�,� gal.' y 1'
.5o° �D^°' asyo -,,`9. 1.:`°
e:moa t.i%3 as `o
,��
1
CITY OF P 0 WAY
7
SECURITIES HELD
As of September 30, 2019
CITY OF POWAY
s
CAI
o Cusipl Coupon Maturity/ Par value or Historical cost/ Amortized cost' Fair value/ Unrealized Interest Interest Total %
'description CaII date shares Accrued interest Accretion Change in fair gain received earned accrued Port
purchased (amortization) value (loss) interest cost
Corporate Bonds
48127HAA7 2.200 1012212019 1,000,000.00 990,780.00 999,578.30 1,000,015.33 437.03 0.00 1,772.23 9:655.56 1.20
JP MORGAN CHASE & CO 2.2% 0.00 575.06 158.88
220CT2019
026651618L3 2.000 1111312019 1,000,000.00 993,010.00 999,504,01 999,990.00 485.99 0,00 1,611.11 7,611.11 1.20
AMERICAN HONDA FINANCE 0.00 346.04 210..00
2%13NOV24T9
149121_6E3 2.250 1210112019 1,000,000_00 1,011910.00 1,000,580.62 1,000,165.89 17T4.73) 0.00 1,812.50 7,437.50 1.23
CATERPILLAR FINL SERVICE 0.00 {433.091 (15.26)
2.25% 01 DEC2019
717081E85 1.700 12715/2019 1,000,000.00 999,940.00 999,995.23 999,182.40 1812.831 0.00 1369.44 4,958.33 1.21
PF12ER INC 1.7% 150EC2019 0.00 1.90 542.95
17275RAH5 4.450 0171512020 1,000,000.00 1,070,170.00 1,007.56453 1,006,595.06 (969.471 0.00 3,584.72 9,270.83 1.30
CISCO SYSTEMS INC 4.45% 0.00 (2,161.29} (1,870.671
15JAN2020
594918AY0 1.850 02/12,2020 1,500,000.00 1,506,140.00 1,500,658.61 1,498,745.97 (1,912.64) 0.00 2.235,42 3,700.00 1.82
MICROSOFT CORP 1.85% 01112/2020 0.00 (193.721 (582.53}
12FE82020 {CALLABLE
12JAN20}
25468P0P8 1.950 03/0412020 1,500,000.00 1,504,635.00 1,500,703.24 1,499,301.29 (1,401.95) 14,625.002,356.25 2,112.50 1.82
TWD0C ENTERPRISES 18 CORP 00 1137,00) {770.25I
Z 1.95%04MAR2020
7134r8C55 1.850 0413012020 1,500,000.00 1,499,655.00 1,499,932.35 1,498,81157 [1,120.78) 0.00 2,31250 11,562.50 1.82
acDPEPSiCO INC 1.85% 0313012020 0.00 9.66 672.24
30APR2020 )CALLABLE
CD 30MAR20}
j
.0 69353RE53 2,600 07/2112020 1,000,000.00 1,016.010.00 1,004,276.98 1,003,914.08 {362.901 0.00 2,094.44 4,983.33 1.23
N PNC BANK NA 2.6% 21111L2020 06/2112020 0.00 1491.611 ;486.74]
0 [CALLA8LE21IUN20}
50 053015A05 2.250 09/1512020 1,000,000.00 1,002,630.00 1,000,840,21 1,002,763.21 1,923,00 11,250.00 1,812.50 937.50 1.21
F AUTOMATIC DATA 08/1512020 0.00 180.021 4102 981
3 P R DC E55NG 2.25% 155EP2020
(CALLABLE 1SAUG201
a
SECURITIES HELD
As of September 30, 2019
CITY OP P0WAY
a- .
O.Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost! Far value/ Unrealized Interest Interest Total %
Description Cali date shares Accrued interest Accretion Change in fair gain received earned accrued Port
s purchased (amortization) value (loss) interest cost
Corporate Bonds
191216816
COCA-COLA CO/THE 1.875%
270CT2020
1.875 10/2712020 2,000,000.40 1,987,240.00 1,995,224.26 2,000,902.16 5,677.90 0.00 3,020.83 15,937.50 241
0.00 370.22 1,463.40
89233P7F7 2.625 OT17012023 2,000,000.00 2,001,380.00 2,001,238.33 2,045,092.66 43,854.33 0.00 4,229.17 11,666.67 2.42
TOYOTA MOTOR CREDIT CORP 0.00 131.48} [2,952.42]
2.625% 10JAN2023
084670BR8 2.750 03115/2023 1,000,000.00 1,021,370.00 1,020,145.94 1,025,129.98 4.984.04 13,750.00 2,215.27 1,345.83 124
BERKSHIRE HATHAWAY INC 01115/2023 0.00 [510.03] 16,742.99)
2.75% 15MAR2023 {CALLABLE
15JAN23]
931142DH3 2.550 04111/2023 1,000,000.00 1,015,270.00 1,014,392.55 1,020,335.41 5,942.86 0.00 2,054.16 11,970.83 1.23
WALMART INC 2.55% 01111)2023 0.00[365.61] 14,731.981
11 APR2023 {CALLABLE
11 JAN23)
037833AK6 2.400 0510312023 1,000,000.00 1,{]07,420.00 1,007,557.67 1,016,469.15 8,411.54 0.00 1,933.33 9,800.00 1.22
APPLE INC 2.4% 03MAY2023 0.00 (175.351 (4,595.21)
69353RFL7 3.500 0610812023 1,900,000.00 1,995,436.00 1,992,068.53 1,994,928.31 2,859.78 0.00 5,356.95 20.688.89 2.42
PNC BANK NA 3.5%08JU1'J2023 0510912023 0.00 12,126.29} [9,172.14]
ICALLABLE 09MAY231
68389X8L8
z ORACLE CORP 2.4%
p 15SEP2023 [CALLABLE
• 15JUL231
a911591-1HV5
CD US BANCORP 3.375%
— 05FEB2024 (CALLABLE
• 05JAN24]
IV
c=> Corporate Bonds
CG
CD
3
j
2.400 0911512023 1,000,000.00 1,008,750.00 1,008,214.41 1,012,351.81 4,137.40 12,000.00 1,933.33 1,000.00 1.22
07/15/2023 0.00 [180.53} 12,593.86]
3.375 02/0512024 1,900,000.00 1.999,636.00 1,999,377.04 7,998,460.51 1916.53) 0.00 0.01 9,796.88 2 42
01/05/2024 19, 796.871 1258 461 11,175.491
23,300,000.00 23,631,8132.010 23,552,152.75 23,623,154.79 71,002.04 51,625.00 41,704.16 144,235.76 28.62
(9,796.87) {5,842.101 132,745.101
SECURITIES HELD
As of September 30, 2019
CITY OF POWAY
1
01
oCusip) Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized interest Interest Total %
{„Description CaII date shares Accrued interest Accretion Change in fair gain received earned accrued Port
purchased (amortization) value RIass) interest cost
17'4# we I `6402 `64 JegweAoN
Government Agencies
3134G3N30 1.500 1010312019 1.000,000.00 993,506.00 999.969.81 999,95754 112.271 0.00 1,20833 7.375.30 t.20
FREDDIE MAC 1.5% 0.00 301.85 545.56
0300721319 CALLABLE
3135GOR39 1.000 10)2412019 1,000,000.00 983,180.00 999,573.28 999,39779 (175.49) 0.00 805.55 4,333.33 1,19
FANNIE MAE 1% 240072019 0,00 533.41 867.62
3130AA2H0 1.125 11)29/2019 1,000,000 00 997,150.00 999,847.14 998,816.85 (1,030.291 0,00 906.25 3,781.25 1.21
FEDERAL HOME LOAN BANK 0,00 77.73 1,057.67
1.125% 29NOV2019
3136040A8 1.200 12130/2019 1,000,060.00 998,250.00 999, 864.11 998,342.29 {1,521.82) 0.00 1,000.00 3,000.06 1.21
FANNIE MAE 1.2%300E02019 0.030 45.30 580.81
CALLABLE 40001
3133EGLA1 1.170 01)1312020 2.000.000.00 1.999780 00 1,999,981.09 1,996,293.64 (3,687.45) 0.00 1,885.00 5,005.00 2.42
FEDERAL FARM CREDIT BANK 0.00 5.51 2,386.04
1.17% 131AN2020 (CALLABLE
11001'19)
3137EAEE5
FREDDIE MAC 1.5% 17JAI't2020
3130AECJ7
FEDERAL HOME LOAN BANK
2.625% 28MAY2020
3130ABY34
FEDERAL HOME LOAN BANK
1.613% 29MAY2020
3136G4KD4
FANN I E MAE 1.75% 29JUN2020
(CALLABLE 29DEC19)
1.500 0111712020 3,000,000.00 2,957,514.00 2,989,696.44 2,996,334.00 6,637.56 0.00 3,625.00 9,125.00 3.58
0.00 2,888.85 1,317.63
2.625 0512812020 1,500,000.00 1,497,100.50 1,498,879.74 1,507,300.70 8,420.96 0.00 3,171.87 13,343.75 1.81
0.00 141.21 (912.64)
1.613 05/29r2020 2,000,000.00 1,994,820.00 1,998,678.74 1,997,050.08 {1,628.66) 0.00 2,598.72 10,842.94 2.42
0.00 165.85 255.04
1.750 06/29/2020 1,900,000.00 1,899,525.00 1,899,895.61 1,895,540.47 (4,355.14) 0.00 2,678.47 8,404.86 2.30
12/29/2019 0.00 11.64 {4,523.22)
3133EHYM9 1.500 0911412020 2,000,000.00 1,993,720.00 1,997,990.40 1,994,295.78 13,694.621 15,000.00 2,416.66 1,333,33 2.41
FEDERAL. FARM CREDIT BANK 0.00 175.26 (1,124.541
1.5% 145EP2020
'4
SECURITIES HELD
As of September 30, 2019
o
• Cusipt Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value' Unrealized Interest Interest Total %
G3- Description Cali date shares Accrued interest Accretion Change in fair gain received earned accrued Port
s purchased (amortization) value {loss} interest cost
ti' 4# we `61.OZ '61. JO WOAO
Government Agencies
3t30AEWA4 2 625 10/0112020 2.000,000.00 1,990,580.00 1,995,085.81 2,015,499.82 20,414.01 0.00 4,229.17 26,104.17 2.41
FEDERAL HOME LOAN BANK 0.00 421.99 [4,425.65)
2.625% 010CT2020
3133EGM51 1.650 12/0112020 1,000,000.00 996,971.00 999,112.59 997,766,22 (1,346.37) 0.00 1,329.17 5,454.17 1.21
FEDERAL FARM CREDIT BANK 0.00 63.24 12,242.84)
1.65% 01 DEC202D
3130A3UQ5 1.875 12/11/2020 1,000,000.00 997,820.00 999,141.94 1,000,418.53 1,276.59 0.00 1,510,41 5,677.08 1.21
FEDERAL HOME LOAN BANK 0.00 59.73 12,845.60)
1.875% 11 DEC2020
3133EKAJ5 2.500 02/1112021 1,000,000A0 999,265.00 999,497.37 1,009,061.93 9,564.56 0.00 2,013.89 3.402.78 1.21
FEDERAL FARM CREDIT BANK 0.00 30.71 (3,319.39[
2.5% :1FE8202)
3133EJ51)2 2.540 0410512021 1,000,000.00 1,004,390.00 1,003,277.47 1,012,474.71 9,197.24 0.00 2,046.11 12,347.22 1.22
FEDERAL FARM CREDIT BANK 0.00 (180.411 [1,782.131
2.54% 05APR2021
313379RB7 1.875 06/11/2021 1,000,000.00 955,600.00 989,348.18 '1,002,223.57 12,575.39 0,00 1,510.41 5,677.08 1.19
FEDERAL HOME LOAN BANK 0.00 523.00 12,941.59)
1 ,875% 111UN2021
3135G0U35 2.750 0612212021 2,000,000.00 2,017,500.00 2,013,572.32 2,035,456.96 21,884.64 0.00 4,430.55 14,972.22 2.44
FANNIE MAE 2.75% 22JUN2021 0.00 [654.611 [7,665.66)
3133EKCBD 2.500 07/0112021 1,000,000.00 999,030.00 999,275.66 1,012,337.65 13,061.99 0.00 2,013.89 6,180.56 111
FEDERAL FARM CREDIT BANK 0.00 34.44 [3,795.65)
2.5%01JUL2021
313DAA8G2 1.875 11/29/2021 1.000,000.00 990,090.00 992,000,11 1,004,071.00 12,070.89 0.00 1,510.41 6,302.03 120
FF_DERAL HOME LOAN BANK 0.00 304.08 (3,573.831
1.875% 29N0V2021
313500U92 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,511,136.71 1,532,042.78 20,906.07 0.00 3.171.88 8,64063 1.53
FANNIE MAE 2.625% 0.00 I420.51) (6,050.671
11 JAN2022
11
SECURITIES HELD
As of September 30, 2019
oiCusipf
!„!Description
17'4# W041 `6LOZ '61. JagweAoN
Coupon Maturity)
CaII date
CITY OFPOWAY
Par value or Historical cost/ Amortized ci}st/ Fair value! Unrealized Interest Interest Total
shares Accrued interest Accretion Change in fair gain received earned accrued Port
purchased {amortization) value llossa interest cost
Government Agencies
313378CR0
FEDERAL HOME LOAN BANK
2259E 1 1 MAR2022
2.250 03{11/2022 2,000,000.00 2,004,000.00 2,003,492.57 2.028.635.82 25,143.25 22,500.00 3,625.00 2,375.00 2.43
0.00 (118.93) 18,360.341
31331K3A6 2.710 1211312022 1,000,000.00 1,028,921.06 1,026,827.02 1,034,272,24 7,445.22 0.00 2,183,05 8,054.72 1.25
FEDERAL FARM CREDIT BANK 0.00 1698.01) 16,177.341
2,71% 13DEC2022
31331KAF7 4.090 41{18/2023 1,850,000.00 2,008,452.50 2,004,043.84 1,994,546.77 19,497.071 0.00 6,095.24 15,133.00 2.43
FEDERAL FARM CREDIT 5,41+110 0.00 13,889.99] {11,410.061
4.09% 18JAN2023
3133EKKT2 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,016,131.28 1,020,717.92 4,586.64 0.00 1,8(2.50 3,250.00 1.23
FEDERAL FARM CREDIT BANK 0.00 (400,611 (3,544.493
2.25% 08FEB2023
3137EAEN5
FRED D I E MAC 2.75%
191u N2023
3135001143
FANN I E MAE 2.875%
125EP2023
2.750 06+1912023 2.000,000.00 2,067,740.00 2,064,223.39 2,080.856.60 16,573.21 0.00 4,430.56 15,430.56 2.50
0.00 (1,440.25] 111,634.90}
2.875 09/1212023 1,000,000.00 1,039,05(100 1,036,970.11 1,047,994.30 11,024.19 14,375.00 2,315.97 1,437.50 1.26
0.00 (779.961 17,330.87)
3133EKV89 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,997,756.85 2,019,924.88 22,168.03 0.00 2,996.66 7.543.33 142
FEDERAL FARM CREDIT BANK 0.00 46.19 114,801.101
1.86% 1700T2023
3130A3VC5
FEDERAL H OME LOAN BANK
2.25% 08DEC2023
2.250 12108)2023 1,000,000.00 1,014,600.06 1,014,023,44 1,023,689.53 9.666.09 0.00 1,81250 7,000.00 1.23
0.00 (278.98) 18,648.911
3135GOV34 2.500 02/05/2024 1.000,000.00 1,028,090.00 1,026,953.31 1,037,701.89 10,74858 0.00 2,013.88 3,819.44 1.25
FANNIE MAE 2.5%05FE82024 0.00 1516.68] 18,577.751
12
Total Government Agencies
SECURITIES HELD
As of September 30, 2019
_ATV OF PCWAY
CO
O� Cusipi Coupon Maturity' Par value or Historical cost( Amortized cosh Fair valuer Unrealized Interest Interest Total %
Description Cali date shares Accrued interest Accretion Change in fair gain received earned accrued Port
- purchased (amortization} value (loss} interest cost
V 1.# wall `61.02 '61 .iagWanoN
Government Agencies
3135GOV75 1.750 0710212024 2,000,000.00
FANNIE MAE 1.75%021UL2024
2,007,920.00
(6,902.78}
2,007,864.31
(59.69)
2,011,404 20 3.543.89
3,484 20
0.00 1,069.44 7,972.22 =.=]
43,750,000.00 44,022,870.06 44,084,166.64 44,304,426.46 220,259.$2 51,875.00 72,416.54 233,318.22 53.31
(6,902.78} (3,604..64) (115,234.631
Government Bonds
912828661 1.500 11+3012019 5,000,000.00 5,002,968.75 5,000,199.88 999,084.50 (1,115.38} 0.00 1,229.51 5,000.00 1.21
USA TREASURY 1.5% 0.00 {98.311 412.62
30N0V2019
9128283Y4 2.250 02+2912020 1,500,000.00 1.492,148.44 1,497,822.20 1,542,10938 4,287.18 16,875.00 2,781.59 2,781.59 1.81
USA TREASURY 2.25% 0.00 42923 (234.37i
29FEB2020
9128282Q2 1.540 08/1512020 2,000,000.00 1,990,156.25 1,996,911 76 1,994,062.50 (2,349.261 0.00 2,445.65 3,750.00 2.41
USA TREASURY 1.5% 0.00 289.52 {390.62]
15AUG2020
912828F21 2.125 09/3012021 1,000,000.00 991,015.63 993,057.53 1,009,179.69 16,122.16 10,625.00 1,741.80 0.00 1.20
USA TREASURY 2.125% 0.00 284.91 13,164.06)
305EP2021
9128285F3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,512,442,93 1,536,621.09 24,178.16 0.00 3,534.83 19,795.08 1.84
USA TREASURY 2.875% 0.00 1500.38) 15,566.411
150CT2021
912828XW5 1.750 06/3012022 1,000,000.00 998,515.63 998,661.00 1,004,375.00 5,714.00 0.00 1,426.63 4,375.00 1.21
USA TREASURY 1.75% 0.00 40.01 14,375.001
30JUN2022
9128281.57 1.750 09130/2022 1,000,000.00 999,417,41 999,462.07 1,004,960.94 5,498.87 8,750.00 1,434.43 0.00 1.21
USA TREASURY 1.75% 0.00 14.72 (4,531.25}
30S€P2022
912828201 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,968,705.80 1,985,48.76 16,762.96 13,750.00 2,266.48 2,266.48 2.38
USA TREASURY 1.375% 0.00 656.06 (11,250.00)
31AUG2023
13
SECURITIES HELD
As of September 30, 2019
Cusipf
c„,Description
3
D'' 4# wall `6402 '61. JaquaanoN
CITY OF POWAY
Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total %
CaII date shares Accrued interest Accretion Change in fair gain received earned accrued Port
purchased (amortization) value (loss) interest cost
Government Bonds
412828U57
USA TREASURY 2.125%
30N0V2023
912828X70
USA TREASURY 2% 30A PR2024
2.125 11130/2023 1,900,000.00
2.000 0413012024 2,000,000.00
1,925,679.69
0.00
2,036,015.63
116,630.431
1,924,504 38
(483.001
2,035,951.20
(64.43)
1,941,859.38 17,355.00 0.00 3,309.42 13,458.33 2.33
13,062 50]
2,038,046.88 2,095.68 0.00 0.01 16,630.44 2.47
2,031.25
Total Government Bonds
rand a
14,900,000.00
14,918,905.72
(16,630.43)
14,927,71835
568.93
15,015,768.12 88,049.37 50,000.00 20,17035 68,056.92 18.07
(40,130.34)
•
(33,330.08)
(8,877.81)
(188,110.07)
53, s'1.
1
,2.1.05 445,610.90 1013.00
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
As of September 30, 2019
CITY OF POWAY
14.3
ID
0 Cusip Description Coupon Maturity Call date 5&P Moody Par value or Historical % Portfolio Market % Portfolio Effective
ca date rating rating shares cost hist cost value mkt value Dur (yrs)
s
United States Treasury Note/Bond
912828661 USA TREASURY 1.5% 1.500 11/30/2019 AA+ Aad 11,000,000.00 1,002,968.75 121 999,084.50 120 0.17
912828311'4 USA TREASURY 2.25% 2.250 0212912020 AA+ Aaa 1,500,000.00 1,492,148.44 1.81 1,502,109.38 1.81 0.41
912828202 USA TREASURY 1.5% 1.500 08/15/2020 AA+ Aaa 2,000,000.00 1,990,156.25 2.41 1,994,062.50 2.40 0.86
912828F21 USA TREASURY 2.125% 2.125 09/3012021 AA. Aaa 1,000,000.00 991,015.63 1.20 1,009.179.69 1.22 1.95
9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 1.84 1,536,621.09 1.85 1.95
912828XW5 USA TREASURY 1.75% 1.750 06130/2022 AA+ Aaa 1,000,000.00 998,515.63 1.21 1,004,375.00 1.21 2.66
9T2828L57 USA TREASURY 1.75% 1.750 09130/2022 AA+ Aaa 1,000,000.00 999,41741 1.21 1,004,960.94 1.21 2.91
912828201 USA TREASURY 1.375% 1.375 08131/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.38 1,985,468.76 2.39 3.79
912828057 USA TREASURY 2.125% 2,125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.33 1,941,859.38 2.34 3.95
912828x70 USA TREASURY 2% 2.000 04130/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.47 2,038,046.88 2.46 4.33
Issuer total
14,900,000.00 14, 918,905.72 18.07 15,015,768.12 18.10 2.47
Federal Farm Credit Banks Funding Corp
3133EGLA1 FEDERALFARM CREDIT 1.170 01/13/2020 AA+ Aaa 2,000,000.00 1,999,780.00 2.42 1,996,293.64 2.41 0.29
3133EHYM9 FEDERAL FARM CREDIT 1.500 09/14/2020 AA+ Aaa 2,000,000.00 1,993,720.00 2.41 1,994,295.78 2.40 0.95
3133EGM51 FEDERALFARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971.00 1.21 997,766.22 1.20 1.15
3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.21 1,009,061.93 1.22 1.34
Z 3133E1/02 FEDERALFARM CREDIT 2.540 04/0512021 AA+ Aaa 1,000,000.00 1,004,390.00 1.22 1,012,474.71 1.22 1.46
O
es 3133EKC80 FEDERAL FARM CREDIT 2.500 07101/2021 AA+ Aaa 1,000,000.00 999,030.00 1.21 1,012,337.65 1.22 1.70
a313313A6 FEDERALFARM CREDIT 2.710 12113/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.25 1,034,272.24 1.25 3.04
CD
' 31331!CAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.43 1,994,546.77 2.40 3.08
11) 3133EKKT2 FEDERAL FARM CREDIT 2.250 02108/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.23 1,020,717.92 T.23 3.22
N
0 3133E10V89 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.42 2,019,924.88 2.44 3.87
Issuer total 13,850,000.00 14,045.655.56 17.01 14,091,691.74 16.99 2.03
CD3
"
15
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
As of September 30, 2019
0 Cusip Description Coupon Maturity Call date 5&P Moody Par value or Historical % Portfolio Market %Portfolio Effective
W date rating rating shares cost hist cost value mkt value dur (yrs)
Federal Home Loan Banks
3130AA2H0 FEDERAL HOME LOAN 1.125 1112912019 AA+ Aaa 1,000,000.00 997,15000 1.21 998,816.85 1.20 0.16
3130AEC]7 FEDERAL HOME LOAN 2.625 0512812020 AA+ Aaa 1,500,000.00 1,497,100.50 1.81 1,507,300.70 1.82 0.65
3t30ABY34 FEDERAL HOME LOAN 1.613 05129/2020 AA+ Aaa 2,000,000.00 1,994,820.00 2.42 1,997,050.08 2.41 0.65
3134AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.41 2,015,499.82 2.43 0.98
3130A3UQ5 FEDERAL FIOME LOAN 1.875 12111/2020 AA+ Aaa 1,000,000.00 997,820.00 1.21 1,000,418.53 1.21 1.17
313379887 FEDERAL HOME LOAN 1.875 06111/2021 AA+ Aaa 1,000,000.00 985,600.00 1.19 1,002,223.57 1.21 1.65
3130AABG2 FEDERAL HOME LOAN 1.875 11 /2912021 AA+ Aaa 1,000,000.00 990,090.00 1.20 1,004,071.00 1.21 2.10
313378CR0 FEDERAL HOME LOAN 2.250 0301/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.43 2,028,635.82 2.45 2.36
3130A3vC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.23 1,023,689.53 1.23 3.96
CITY OFPOWAY
Issuer total
12,500,000.00 12,471, 760.50 15.10 12,577, 705.90
15.16 1.44
Federal National Mortgage Association
313500R39 FANNIE MAE 1% 1.000 10/2412019 AA+ Aaa 1,000,000.00 983,180.00 1.19 999,397.79 1.20 0.07
3136G4DA8 FANNIE MAE 1.2% 1.200 12/3012019 AA+ Aaa 1,000,000.00 998,250.00 1.21 998,342.29 1.20 0.25
3136G4KD4 FANNIE MAE 1.75% 1.750 06/2912020 12129/2019 AA+ Aaa 1,900,000.00 1,899,525.00 2.30 1,895,540.47 2.29 0.66
313500035 FANNIE MAE 2.75% 2,750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.44 2,035,456.96 2.45 1.67
31350-0092 FANNIE MAE 2.625% 2.625 01/1112022 AA+ Aaa 1,500,000.00 1,513,185.00 1.83 1,532,042.78 1.85 2.20
Z 3135001943 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.26 1,047,994.30 1.26 3.73
0
co 313500V34 FANNIE MAE 2.5% 2.500 02105/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.25 1,037,701.89 1.25 4.10
a3135G0V75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.43 2,011,404.20 2.43 4.52
511 Issuer total 11,400,000.00 11,486,700.00 13.91 11,557,880.68 13.93 2.21
t0
c Federal Home Loan Mortgage Corp
3134G3N30 FREDDIE MAC 1.5% 1.500 10103/2019 AA+ Aaa 1,000,000.00 993,500.00 1.20 999,957.54 1.21 0.01
D 3137EAFE5 FREDDIE MAC 1.5% 1.500 01/1712020 AA+ Aaa 3,000,000.00 2,957,514.00 3.58 2,996,334,00 3.61 0.30
3
4
16
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
As of September 30, 2019
tiss
0 Cusip Description
is
C[TY DF POWAY
Coupon Maturity Cali date 5&P Moody Par value or Historical % Portfolio Market % Portfolio Effective
date rating rating shares cost hist cost value mkt value dur (yrs)
Federal dome Loan Mortgage Corp
3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,004,000.00 2,067,740.00 2.50 2,080,856.60 2.51 3.50
Issuer total
6,000,000.00 6,018,754.03 7.29 6,077,148.14 7.33 1.35
PNC Bank NA
69353RE53 ?NC BANK NA2.6% 2.600 07/21/2020 06/2112020 A A2 1,000.000.00 1,016,010.00 1.23 1,003,914.08 1.21 0.72
69353RFL7 PNC BANK NA 3.5% 3.500 06//08/2023 05/0912023 A A2 1,900,000.00 1,995,436.00 2.42 1,994,928.31 2.41 3.36
Issuer total 2,900,000.00 3,011,446.00 3.65 2,998,842.39 3.62 2.47
Toyota Motor Credit Corp
89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 AA- Aa3 2.000,000 00 2,001,380.00 2.42 2,045,092.66
2.47 3.11
Issuer total
2,000,000.00 2,031,380.00 2.42 2,045,092.66 2.47 3.11
Coca-Cola Co/The
191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ Al 2,000,000.00 1,987,240.00 2.41 2,000,902.16 2.41 1.05
Issuer total
2,000,000.00 1,987,240.00 2.41 2,000,902.16 2.41 1.05
US Bancorp
91159H1kv5 LIS BANCORP 3.375%
3.375 02/0512024 01105/2024 A+ Al 1,900,000.00 1,999,636.00 2.42 1,998.460.51 2.41 3.96
z Issuer total 1,900,000.00 1,999,636.00 2.42 1,998,460.51 2.41 396
O
0 TWDC Enterprises 18 Corp
c 25468PDP8 TWDC ENTERPRISES 18 1.950 03/04/2020 A A2 1,500,000.00 1,504,635.00 1.82 1,499,301.29 1.81 0.42
CD
• Issuer total 1,500,000.00 1,504,635.00 1.82 1,499,301.29 1.81 0.42
co
N PepsiCo Inc
o
co - 713448CS5 PEPSICO INC 1.85% 1.850 04/30/2020 03/30/2020 A+ Al 1,500,000.00 1,499,655.00 1.82 1,498,811.57 1.81 0.55
p Issuer total 1,500,000.00 1,499,655.00 1.82 1,498,811.57 1.81 0.55
3
>>*
3
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
As of September 30, 2019
N
O Cusip Description
Ca
CITY OF POWAY
Coupon Maturity CaII date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective
date rating rating shares cost hist cost value mkt value dur (yrs
Microsoft Corp
594918AY0 MICROSOFT CORP 1.85% 1.850 02/12/2020 01/12/2020 AAA Aaa 1,500,000.00 1,506,140.00 1.82 1,498,745.97 1.81 0.35
Issuer total
1,500,000.00 1,506,140.00 1.82 1,498,745.97 1.81 0.35
Berkshire Hathaway Inc
084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 0111512023 AA Aa2 1,000,000.00 1,021,370.00 1.24 1,025,129.98 1.24 3.17
Issuer total
1, 000, 000.00 1,021,370.00 1.24 1,025,129.98
1.24 3.17
Walmart Inc
93114201-13 WALMART INC 2.55% 2.550 04/11/2023 01/11/2023 AA Aa2 7,000,000.00 ,,015,270.00 1.23 1,020,335.41 1.23 3.16
Issuer total
1,000,000.00 1,015, 270.00 1.23 1,020,335.41
1.23 3.16
Apple Inc
037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aal 1,000,000.00 1,007,920.00 1.22 1,016,469.15
t.23 3.39
Issuer total
1,000,000.00 1,007,920.00 1.22 1,016,469.15 1.23 3.39
Oracle Corp
68389x818 ORACLE CORP 2.4%
2.400 09/15/2023 07/15/2023 A+ Al 1,000,000.00 1,008,750.00 1.22 1,012,351.81 7.22 3.66
Issuer total 1,000,000.00 1,008,750.00 1.22 1,012,351.81 1.22 3.66
Z
• Cisco Systems Inc
O • 17275RAH5 01500 SYSTEMS INC 4.450 0711512020 AA -Al 1,000,000.00 1,070,170.00 1.30 1,006,595.06 1.21 0.29
3
CD
a Issuer total 1,000,000.00 1,070,170.00 1.30 1,006,595.06 1.21 0.29
Automatic Data Processing Inc
C 353015A05 AUTOMATIC DATA 2.250 09/15/2020 08/15/2020 AA Aa3 1,000,000.00 1,002,630.00 1.21 7,002,763.21 1.21 0.89
c0 - Issuer total 1,000,000.00 1,002,630.00 1.21 1,002,763.21 1.21 0.89
0
3
3
18
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
As of September 30, 2019
CITY OF POWAY
N
A
04Cusip Description Coupon Maturity Call date 5&P Moody Par value or Historical % Portfolio Market % Portfolio Effective
s date rating rating shares cost hist cost value mkt value dur (yrs}
Caterpillar Financial Services Corp
14912L6F3 CATERPILLARFINL 2.250 12/0112019 A A3 1,000,000.00 1,011,910.00 1.23 1,000,165.89 1.21 0.17
Issuer total
1,000,000.00 1,011, 910.00 1.23 1,000,165.89
1.21 0.17
JPMorgan Chase & Co
48127HAA7 JP/OORGAN CHASE & CO 2.200 10/22/2019 A- A2 1,000,000.00 990,780.00 1.20 1,000,015.33 1.21 0.06
Issuer total
1,000,000.00 990,780.00 1.20 1,000,015.33 1.21 0.05
American Honda Finance Corp
02665W8Z3 AMERICAN HONDA 2.000 11/13/2019 A A2 1,000,000.00 993,010.00 1.20 999,990.00 1.21 0.12
Issuer total
1,000,000.00 993,010.00 1.20 999,990.00 1.21 0.12
Pfizer Inc
717021E135 PFIZER INC 1.7%
1.700 12/15/2019
AA- Al 1,000,000.00 999,940.00 1.21 999,182.40
1.20
0.21
Issuer total
1,000,000.00
999,940.00
1.21
999,182.40
1.20
0.21
rand total
81,950,000.00 82,573,657.78 100.00 82,943,349.37 100.00 3.91
D'' 4# wall `6402 '61. JaquaanoN
19
SECURITIES PURCHASED
For the period September 1, 2019 - September 30, 2019
1.4
o CU sip J Description ! Broker
Trade date
C4 Settle date
s
CITY OF PDWAY
Coupon Maturity! Par value or Unit cost Principal Accrued
Call date shares cost interest purchased
Corporate Bonds
91159HHV5 0912712019 3375 0210512024 1,900,000.00
US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 09/3012019 0110512024
U.S. BANCORP INVESTMENTS, INC.
1,900,000.00
Total Corporate Bonds
Government Agencies
3135G0V75
FANNIE MAE 1.75% 02JU L2024
CITEGROUP GLOBAL MARKETS LIMITED
Total Government Agencies
Government Bonds
912828X70
USA TREASURY 2% 30APR2024
BARCLAYS BANK PLC
Total Government Bonds
P• I,# well `61,02 `6 I. aagwanoN
105.24 (1,999,636.00) (9,796.87}
(10999,636.00) (9,796.87)
0911812019 1.750 0710212024 2,000,000.00 100.40 (2,007,920.40) ';6,902.781
09119!2019
2,000,000.00 (2,007,920.00) (6,902.78)
09127/2019 2.000 0413012024 2,000,000.00 101.80 (2,036,015.63} {16,630.43
09/3012019
2,000,000.00
(2,036,015.63) (16,630.43)
Total (Corporate Bonds) (1,900,000.00) 11,886,035.00
1,900,000.00 1,065.45 0.00 16.82 2.92 3,028.13
289.73
SECURITIES SOLD AND MATURED
For the period September 1, 2019 - September 30, 2019
CITY OF PC/WAY
ry
v
Fair value at Realized Accrued Interest Interest
Cusp/ Trade date Coupon Maturityr Par value or Fl cost Amortized cost Price
caDescription/ Settle date CaII date shares at sale or maturity safe or maturity 1 gain interest received earned
"'Broker lAccr(amort) Chg.infair value {loss} sold
Corporate Bonds
90331HML4
US BANK NA CINCINNATI
2.125% 280CT2019
(CALLABLE 30SEP19)
09/30/2019 2.125
09/30/2019
(1,900,000.00) 1, 886,035.00
1, 898, 934.55
1,141.55
0.00 1,900,000.00 1,065.45 0.00 16, 822.92 3,028.13
289.73
1,898,934.55
1,141.55
Government Agencies
3136G36X8
FNMA DTD 9/13/20161.14
09-13-2019106-13-2019
09113/2019 1.140 (2,000,000.00) 1:998, 000.00
09/13/2019
Total (Government Agencies) (2,000,000.00) 1,998.000.04
Government Bonds
912828F39
USA TREASURY 1.75%
3OSEP2019
09/30/2019 1.750 (2,000,000.00) 2,017,265.62
09/30/2019
2,000,000.00 0.00 2,000,000.00 0.00 0.00 11,400.00 760,00
24.07 475.42
2,000,000.00 2,000,000.00 0.00 0.00 11,400.00 760.00
24.07 475.42
2,000,000.00 0.00 2,000,000.00 0.00 0.00 17,500.00 2,868.85
(618.22) 479.32
Total (Government Bonds)
(2,000,000.00) 2,017,265.62
2,000,000, 00
(618.22)
2,000,000.00
479.32
0,00 0.00 17,500.00 2,868.85
5,900,000.00 1,065.45 0.00 45,772:92 6;656:98
TRANSACTION REPORT
For the period September 1, 2019 - September 30, 2019
OTrade date Cusip
caSettle date
Transaction Sec type
Description
Maturity Par value or Realized
shares gain{loss}
Principal
CITY OF PDWAY
Interest Transaction total
08/31/2019 9128282D1 Income
08/3112019
08/3112019 9128283Y4
08/31/2019
09/04(2019 25468PDP8
09/04(2019
09/11/2019 313378CR0
09/1112019
09/12(2019 3135G01.343
09/12/2019
0911312019 3136G36X8
09/13/2019
09113/2019 3136G36X8
09!1312019
09/14/2019 3133EHYM9
09114/2019
09/15/2019 053015AD5
09/15/2019
09115/2019 084670BR8
09115/2019
09/15/2019 68389XBL8
09/15/2019
0911812019 3135G0V75
Z 09/19/2019
O 09/27/2019 91159H1 -1V5
co 09/30/2019
209/2712019 912828}(70
CT
CD 09130/2019
j 09/2812019 90331 HML4
4) 09/28/2019
0 09/3012019 90331 HML4
0913012019
7. 09/30/2019 91 2828F21
3 09/30/2019
Income
Income
Income
Income
Income
Capital Change
Income
Income
Income
Income
Bought
Bought
Bought
income
Capital Change
Incorne
Government Bonds
Government Bonds
Corporate Bonds
Government Agencies
Government Agencies
Government Agencies
Government Agencies
Government Agencies
Corporate Bonds
Corporate Bonds
Corporate Bonds
Government Agencies
Corporate Bonds
Government Bonds
Corporate Bonds
Corporate Bonds
Government Bonds
USA TREASURY 1.375%
USA TREASURY 2.25%
TWDC ENTERPRISES 18 CORP
FEDERAL HOME LOAN BANK(
FANNIE MAE 2.875%
FNMA DTD 9/13/241 6 1.14
FNMA DTD 9/13/20161.14
FEDERAL FARM CREDIT BANK
0813112023 2,000,000.00
0212912020 1,500,000.00
03/04/2020 1,500,000.00
03/11/2022 2,000,000.00
09/12/2023 1,000,000,00
09/13/2019 2,000,000.00
09/13/2019 {2,000,000.00}
09/14/2020 2,000,000.00
AUTOMATIC DATA PROCESSNG 09115/2020
BERKSHERE HATHAWAY INC
1.000,000.00
03115/2023 1,000,000.00
ORACLE CORP 2.4% 155EP2023 0911512023
FANNIE MAE 1.75% 02J U L2024 07/0212024
U5 BANCORP 3.375%
1,000,000.00
2,000,000.00
02/05/2024 1,900,000.00
USA TREASURY 2%30APR2024 04/30/2024
US BANK NA CINCINNATI
US BANK NACINC[NNATI
USA TREASURY 2.125%
2.000,001.00
T 0/2812019 1,900,000.00
10/28/2019 {1,900,000.00}
09/30/2021 1,004,000.00
0.00 0.00 13, 750.00
0.00 0.00 16, 875.00
0.00 0.00 14,625.00
0.00 0.00 22,500.00
0.00 0.00 14,375.00
0.00 0.00 11,400.00
0.00 2,000,000.00 0.00
0.00 0.00 15,000.00
0.00 0.00 11,250,00
0.00 0.00 13,750.00
0.00 0.00 12,000.00
0.00 [2,007,920.00] (6,902.78)
0.00 {1,999,636.00] (9,796.87)
13,750.00
16,875.00
14,625.00
22, 500.00
14, 375.00
11,400.00
2, 000,000.00
15,000.00
11,250.00
13,750.00
12,000.00
(2,014, 822.78).
(2,009,432.87)
0.00 {2,036,015.63] (16,630.43} {2,052,646.06]
0.00 0.00 16,822.92
1,065.45 1,900,000.00 0.00
0.00 0.00 10025.00
16, 822.92
1,900,000.00
10,625.00
22
TRANSACTION REPORT
For the period September 1, 2019 - September 30, 2019
013
OTrade date Cusip Transaction Sec type
ca5ettle date
i
Description
CITY OFP0'NAY
Maturity Par value or Realized Principal Interest Transaction total
shares gain(loss)
09(30/2019 912828F39 Income
09(30/2019
09/30/2019 912828F39 Capital Change
09/30/2019
09/30/2019 912828L57 Income
09/30/2019
17'4# well `6402 `64 JegW AO
Government Bonds USA TREASURY 1.75% 09/30/2019 2,003,000.00 0.00 4.44 17,50000 17,500.00
Government Bonds USA TREASURY 1.75% 09/30/2019 {2,000,000.00] 0.00 2,000,004.00 0.00 2,000,400.00
Government Bonds USATRFASURY 1.75% 09/3012022 1,000,000.40 0.00 0.00 8,750.00 8,750.00
23
ADDITIONAL INFORMATION
As of September 30, 2019
Cit t)FPOWAY
tcDPast performance is nota 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
O back the amount invested_ Transactions in foreign securities maybe executed and settled in local markets_ Performance ca mpariso ns will be affected by changes in i nterestrates. 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 isfor
"your 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 offeror 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 Arnerica LLC (INA) and Insight Investment International
Limited {I IlL3. 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 Insightsstrategies, 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 an all portfolios managed and these fees
will reduce the returns on the portfolios, Fo rexample, assume that 130 million is invested in an account with INA, and this account achieves a 5.0X annual return compounded monthly, gross of fees, fora 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 sub1ect 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 Insights own at the date of this document for 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 deny security. Insight makes no implied or expressed recommendations concerning the manner in which an account
should or would be handled, es appropriate investment strategies depend upon specific investment guidelines and o bjectives and should not be construed to be an assurance that any particular security in a strategy wilt
remain in any fund, account, or strategy. or that a previously held security will not be repurchased. It shou Id 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 Clean ng broker will differ from the Executing broker.
In calculating ratings distributions and weighted average portfolio quality. insight assigns U.5 Treasury and US agency securities a quality rating based on the methodology used within the respective benchmark index. When
Moodys, S&P and Fitch rate a security, flank 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
Moodys and 5&P ratings.
Information about the indices shown here is provided to allow for comparison of the pert rmance of die 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 strategys holdings may differ substantially from the securities that comprise the indices shown.
pThe BofA Merrill Lynch 3 Wo US 7 -Bill index is an unmanaged market index of U.S. Treasury securities maturing in 94 days that assumes reinvestment of all income.
2 The BofA Merrill Lynch 6 Mo UST -Bill index measures the performance of Treasury bilis with time to maturity of less than 6 months,
gThe BofA Merrill Lynch Current 1 -Year US Treasury Index is a one -security index comprised of the most recently issued 1 -year U5 Treasury note. The index is rebalanced monthly_ In order to qualify for inclusion, a 1 -year note
es -rust beauctioned on or before the third business day before the last business day of the month.
CO The BofA Merrill Lynch Current 3 -Year U5 Treasury index is a one -security index comprised of the most recently issued 3 -year U5 Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-yearnoteIV must be auctioned on or before the third business day before the last business day of the month.
to 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.
CD
3 The BofA Merril! Lynch 1-3 US Year Treasury Index is an unmanaged index thattra cks the performance of the direct sovereign debt of the U.S. Government having a maturity of at feast one year and less than three years.
The BofA Merrill Lynch 1-5 U5 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_
24
ADDITIONAL INFORMATION
As of September 30, 2019
CITY OF POWAY
D
0 I might does not provide tax or legal advice t❑ its clients and all investo rs are strongly urged to consulttheir tax and legal advisors regarding any potential strategy or investment
_,Insight is a group of wholly owned su bsidianes of The Sank 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 gen ericterm to reference
the Corporation asa whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and plrit 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 entityt
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.
Ci 2019 insight Investment All rights reserved.
17'4# Wall `64OZ `64 JaquaanoN
25
a IN3WH3VIIV
V'4# Wall `640Z '61JegWaAO
City of Poway Investments £t Cash with Fiscal Agent; Non -Managed Investments; General, Payroll £t Petty Cash
September 2019
Part 1
Investments £t Cash with Fiscal Agents
Settlement
INVESTMENT DESCRIPTION Date
I Yield toDays
Maturity
to % of Total Face
I Maturity) Investment Value
Book
Value
Market
Value
Unrealized
Gain(Loss)
1st Am Gov't Obligations Money Mkt Fd 09/30/19
1 1.38%l 11 100.00%I $474,172.26
$474,172.26
$474,172.26
1 $0.00
J J I
1
_J
J
1 1 1
I
1 I
I
Average/Total - J
_J
1.38%1 1J 100.00%I $474,172.26
$474,172.26
$474,172.26 1 $0.00
Paying Agent or Uninvested Cash £t DITs -
- - - -
$0.00
- -
Total Investments and Cash with Fiscal Agent -
- - - -
1 $474,172.26
- -
Part II
Non -Managed Investments
Settlement
INVESTMENT DESCRIPTION Date
Yield to
Maturity
Days to
Maturity
% of Total
Investment
Face
Value
Book
Value
Market
I Value
Unrealized
County Pool 09/30/19
jJ
I 2.18%I 11 53.06%
$56,515.51
I $56,515.51
I $56,780.00 1
Gain(Loss)
$264.49
1
Wells -Fargo CD 08/05/19
0.05%I 3091 46.94%I $50,000.00 1 $50,000.00 I
$50,000.00 I $0.00 I
Average/Total - 1 1.18%1 N/A 1 100.00%1 $106,515.51 1 $106,515.51
1 $106,780.00 1 $264.49 I
Part 111
General, Payroll £t Petty Cash
Book
Value
General Cash (Union Bank) - - - - -
$538,4-42.93
- -
Payroll Cash (Union Bank) - - - - -
$20,000.00
- -
Emergency Cash (Union Bank) - -- - -
$10,000.00
- -
Grant Cash (Union Bank) - - - - -
$0.00
- -
Flexible Benefits Cash (Union Bank) - - - - -
$20,000.00
- - 1
Petty Cash - - - - -
$8,500.00
- - I
Total Cash - - - - -
$596,942.93
- -