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Item 3 - City's Investment Report as of December 31, 2019
February 4, 2020, Item #3 AGENDA REPORT CityofPoway DATE: TO: FROM: CONTACT: SUBJECT: Summary: February 4, 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 December 31, 2019 CITY COUNCI L 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 December 31, 2019. 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 December 31, 2019, was $106,278,574. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 22,698,756 Deposits at the Local Agency Investment Fund (LAIF) 4,593,072 U. S. Treasury Notes 13,993,384 U.S. Instrumentalities 43,318,054 Corporate Notes 21,675,308 Fair Value of Investment Portfolio as of December 31, 2019 $106,278,574 1 of 30 February 4, 2020, Item #3 The attached portfolio report (attachment B) and investment report (attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, including the General Fund, Water Fund, Wastewater Fund and others -except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending December 31, 2019, is estimated at 2.04% for LAIF, 1.94% for the CalTRUST short-term fund, and 2.01 % 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 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. The Federal Reserve has lowered 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 loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $78,615,994; the fair value is $78,986,746 for an unrealized gain of $370,752 or 0.47% 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 December 31, 2019, was $1,237,455. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $126,171 at December 31, 2019. The City's cash on hand at December 31, 2019, totaled $3,226,572. The December 31, 2019 balance of the City's Library Trust Fund was $258,071. Through the Fiscal Year 2019-20 period ending December 31, 2019, 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 of30 February 4, 2020, Item #3 Fiscal Impact: The externally managed investment portfolio earned $151,068 interest during December 2019, as well as $146,649 interest during November 2019, and $154,706 during October 2019. Fees for investment services during this period totaled $10,213.39. Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at December 31, 2019 Reviewed/ Approved By: wend Kaserman Assistant City Manager 3 of 30 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch ~ City Manager February 4, 2020, Item #3 City of Poway Investment Statistics Separately Managed Investment Pools Fair Value: CalTRUST Short-Term Deposits CalTRUST Medium-Term Deposits Deposits at the Local Agency Investment Fund (LAIF) Total Fair Value Weighted Average Yield Effective Average Duration in days Weighted Average Maturity in days Externally Managed Investment Pools Fair Value: U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Fair Value Amortized Cost Value: U.S. Treasury Notes U.S. Instrumentalities Corporate Bonds Total Amortized Cost Value Unrealized Gain (Loss) Accrued Interest Earned Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology December 2018 10,949,376 11,000,094 8,345,438 30,294,908 2.29% 1 1 11,918,645 38,598,231 21,260,046 71,776,922 11,981,543 38,831,128 21,442,600 72,255,271 (478,349) 111,115 1.87% 0.88 0.91 102,071,830 1.99% 0.62 0.64 September 2019 11,203,088 11,368,110 8,602,474 31,173,672 2.20% 1 1 15,015,768 44,304,426 23,623,155 82,943,349 14,927,719 44,084,166 23,552,153 82,564,038 379,311 140,948 2.01% 1.91 2.02 114,117,021 2.06% 1.39 1.47 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. December 2019 11,271,671 11,427,085 4,593,072 27,291,828 1.99% 1 1 13,993,384 43,318,054 21,675,308 78,986,746 13,927,787 43,100,214 21,587,993 78,615,994 370,752 151,068 2.02% 1.91 2.02 106,278,574 2.01% 1.47 1.55 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 of30 ATTACHMENT A February 4, 2020, Item #3 City of Poway Monthly Investment Portfolio Report December 31, 2019 Separately Managed Investment Pools % Return LAIF $ 4,593,072 17% 2 .04% Ca IT rust -Short $ 11,271,671 41% 1.94% CalTrust -Medium $ 11,427,085 42% 2.01% Total Internally Managed $ 27,291,828 26% Weighted Average Yield 1.99% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 13,993,384 18% 1.96% Instrumentality Securities $ 43,318,054 55% 2.01% Corporate Notes $ 21,675,308 27% 2.08% Total Externally Managed $ 78,986,746 74% Weighted Average Yield 2.02% Years Effective Average Duration -External 1.98 Weighted Average Final Maturity -External 2.09 1 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ Ca IT rust -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 of30 4,593,072 4% 2.04% 11,271,671 11% 1.94% 11,427,085 11% 2.01% 13,993,384 13% 1.96% 43,318,054 41% 2.01% 21,675,308 20% 2.08% 106,278,575 2.01% Years 1.47 1.55 $ $ CalTrust - Medium, 42% Corporate 21% Instrumentality Securities 43% 105,145,470 106,278,575 ATTACHMENT B LAIF, 17% CalTrust -Short, 41% Treasury Securities, 55% CalTrust -Short CalTrust - 11% Medium Treasury Securities 14% February 4, 2020, Item #3~ ~ n ::c 3: m z -I n February 4, 2020, Item #3..... Contents 0 .... w 0 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 purchased 19 Securities sold and matured 20 Transaction report 21 Additional information 23 February 4, 2020, Item #300 0 """ w 0 FIXED INCOME MARKET REVIEW As of December 31, 2019 Chart 1: US unemployment hits a new 50-year low ---US unemployment rate (%) Source: Bloomberg Finance LP, December 31, 2019. - - - - -Current level Chart 2: Return of 'normal' yield curve leaves Fed satisfied with policy rates 40 35 30 25 20 15 10 5 0 -5 -10 i t NollDal yieldcurve Inverted yieldcurve Jan-19 Fel>-19Mar-19 Apr-19May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 --10-year Treasury yield minus 2-year Treasury yield (bp) Source: Bloomberg Finance LP, December 31, 2019. CITY OF POWAY Economic Indicators and Monetary Policy Economic indicators were promising overall. The economy added 266,000 jobs in November (above the expected 180,000) with an upward revision of 41,000 to the previous two months, supported by the return of GM workers following a strike. The unemployment rate fell to a new SO-year low of 3.5% (Chart 1 ). The ISM manufacturing index weakened to 48.1 (compared to the expected 49.2), but remained higher than the September low-point of 47.8. The non-manufacturing index fell from to 53.9 (versus an expected 54.5). The US and China agreed to a narrow 'phase one' trade deal, with the expectation that it will be signed in January. New US tariffs previously scheduled to come into effect during the month were suspended. Existing tariff rates on $120bn of Chinese imports will be halved from 15% to 7.5%, although 25% on a remaining $250bn of tariffs will remain. China committed to import various US goods and services over the next two years in a total amount that exceeds China's annual level of imports for those goods and services in 2017 by no less than $200bn. President Trump also stated that discussions on a 'phase two' deal would begin immediately rather than after this year's presidential election. The final Federal Reserve (Fed) meeting of 2019 brought a run of three consecutive rate cuts to an end (Chart 2). The Fed's messaging tilted towards the optimistic side, removing any mention of "uncertainties" to the outlook, partly as the trade conflict with China appears closer to stabilizing. The committee's revised 'dot plot' showed a majority of members expect no change in rates by the end of 2020, with no member predicting a cut. The yield curve continued to steepen, indicating improving investor optimism around the economy. Interest Rate Summary Treasury yields declined mostly across the curve during the month. At the end of December, the 3-month US Treasury bill yielded 1.55%, the 6-month US Treasury bill yielded 1.59%, the 2-year US Treasury note yielded 1.57%, the 5-year US Treasury note yielded 1.69% and the 10-year US Treasury note yielded 1.69%. 3 February 4, 2020, Item #3ID 0 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2019 -December 31, 2019 : Amortized Cost Basis Activity Summary 0 Opening balance Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfolio transfers Realized gain (loss) Total amortization expense Total 01D/MKT accretion income Return of capital Closing balance Ending fair value Unrealized gain (loss) 209,260.08 (2,214,945.98) Comparative Rates of Return {%} Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Year US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note * rates reflected are cumulative * Twelve month trailing 2.16 2.22 2.04 2.02 2.06 1.97 1.96 * Six month trailing 0.96 0.98 0.87 0.86 0.86 0.82 0.81 80,636,648.90 209,260.08 0.00 (2,214,945.98) 69.46 (22,320.25) 7,281.39 0.00 78,615,993.60 78,986,746.45 370,752.85 * One month 0.13 0.13 0.13 0.13 0.13 0.14 0.14 Detail of Amortized Cost Basis Return Interest Accretion Realized earned (amortization) gain (loss) Corporate Bonds 47,752.43 (9,300.92) 0.00 Government Agencies 80,337.25 (5,828.27) 69.46 Government Bonds 22,978.80 90.33 0.00 Total 151,068.48 (15,038.86) 69.46 Summary of Amortized Cost Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return(%) YTD return (%) Weighted average final maturity in days CITY OF POWAY Total income 38,451.51 74,578.44 23,069.13 136,099.08 Total portfolio 151,068.48 (15,038.86) 69.46 136,099.08 78,694,395.17 0.17 1.98 763 4 February 4, 2020, Item #3-0 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2019 -December 31, 2019 ~ Fair Value Basis Activity Summary w o Opening balance 80,992,832.17 Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfolio transfers Unrealized gain (loss) on security movements Return of capital Change in fair value for the period Ending fair value 209,260.08 (2,214,945.98) Comparative Rates of Return(%} * Twelve * Six month trailing month trailing Fed Funds 2.16 0.96 Overnight Repo 2.22 0.98 ICE BofAML 3 Months UST-BILL 2.28 1.03 ICE ML 6m US Treas Bill 2.57 1.17 ICE ML 1 Year US Treasury Note 2.93 1.15 ICE ML US Treasury 1-3 3.55 1.09 ICE ML US Treasury 1-5 4.20 1.10 * rates reflected are cumulative 209,260.08 0.00 (2,214,945.98) 0.00 0.00 (399.82) 78,986,746.45 * One month 0.13 0.13 0.14 0.16 0.18 0.21 0.14 Detail of Fair Value Basis Return Interest Change in earned fair value Corporate Bonds 47,752.43 7,517.16 Government Agencies 80,337.25 (355.62) Government Bonds 22,978.80 (7,561.36) Total 151,068.48 (399.82) 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 55,269.59 79,981.63 15,417.44 150,668.66 Total portfolio 151,068.48 (399.82) 150,668.66 79,499,597.13 0.19 3.14 763 5 February 4, 2020, Item #3~ ~ 0 -ti w 0 RECAP OF SECURITIES HELD As of December 31, 2019 Historical Amortized Fair value Unrealized Weighted Percent Weighted cost cost gain (loss) average of average final portfolio effective maturity (days) duration (years) Corporate Bonds 21,699,002.00 21,587,993.17 21,675,308.34 87,315.17 792 27.57 2.01 Government Agencies 43,084,048.16 43,100,213.55 43,318,054.17 217,840.62 700 54.75 1.84 Government Bonds 13,915,936.97 13,927,786.88 13,993,383.94 65,597.06 912 17.68 2.40 ~ ------------------------------------------ -------------------Total 78,698,987.13 78,615,993.60 78,986,746.45 370,752.85 763 100.00 1.98 Portfolio diversification {%) ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total 27.57 54.75 17.68 100.00 CITY OF POWAY 6 February 4, 2020, Item #3-N 0 """' w 0 MATURITY DISTRIBUTION OF SECURITIES HELD As of December 31, 2019 Maturity Under 90 days 90 to 179 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years E .s +-' Ill 0 u Ill u s Ill I 25.00 o~~ C?)~ ~C?) o& "' ,o v(;;'-C?)~ Maturity distribution o~~ ~ fl)~ ~C:, ,~e; ~e, ~e, ,o o'l., ~ 'l.,'-0 C:, ,~ 0#, 't)~ "' CITY OF POWAY Historic cost Percent 10,530,387.44 13.38 6,007,585.50 7.63 10,959,117.25 13.93 12,384,673.64 15.74 7,562,128.10 9.61 23,171,023.57 29.44 8,084,071.63 10.27 0.00 0.00 78,698,987.13 100.00 ~C:, ~C:, ~C:, ~e, ~e, ~e, b< ~ t,.~ ~,o ,o s.e; b< 0 7 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31, 2019 ~ w ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortiz_ation) value (loss) interest cost Corporate Bonds 17275RAH5 4.450 01/15/2020 1,000,000.00 1,070,170.00 1,001,080.65 1,000,859.79 (220.86) 0.00 3,831.94 20,519.44 1.36 CISCO SYSTEMS INC 4.45% 0.00 (2,161.29) (1,972.40) 15JAN2020 594918AY0 1.850 02/12/2020 1,500,000.00 1,506,140.00 1,500,077.49 1,500,010.95 (66.54) 0.00 2,389.58 10,714.58 1.91 MICROSOFT CORP 1.85% 01/12/2020 0.00 (193.71) 7.81 12FEB2020(CALLABLE 12JAN20) 25468PDP8 1 . 950 03/04/2020 1,500,000.00 1,504,635.00 1,500,292.26 1,499,953.07 (339.19) 0.00 2,518.75 9,506.25 1.91 TWDC ENTERPRISES 18 CORP 0.00 (136.99) (78.34) 1 . 95% 04MAR2020 713448C55 1.850 04/30/2020 1,500,000.00 1,499,655.00 1,499,961.34 1,499,840.52 (120.82) 0.00 2,312.50 4,625.00 1.91 PEPSICO INC 1 .85% 03/30/2020 0.00 9.66 (368.39) 30APR2020(CALLABLE 30MAR20) 69353RES3 2.600 07/21/2020 1,000,000.00 1,016,010.00 1,002,802.16 1,003,303.54 501.38 0.00 2,238.89 11,555.56 1.29 PNC BANK NA 2.6% 21JUL2020 06/21/2020 0.00 (491.61) (392.37) (CALLABLE 21 JUN20) 053015AD5 2.250 09/15/2020 1,000,000.00 1,002,630.00 1,000,600.15 1,002,643.69 2,043.54 0.00 1,937.50 6,625.00 1.27 AUTOMATIC DAT A 08/15/2020 0.00 (80.02) (228.48) PROCESSNG 2.25% 15SEP2020 (CALLABLE 15AUG20) 191216BT6 1.875 10/27/2020 2,000,000.00 1,987,240.00 1,996,334.89 2,000,700.70 4,365.81 0.00 3,229.17 6,666.67 2.53 COCA-COLA CO/THE 1.875% 0.00 370.21 (693.64) 27OCT2020 89233P7F7 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,001,143.88 2,039,346.48 38,202.60 0.00 4,520.83 24,937.50 2.54 TOYOTA MOTOR CREDIT CORP 0.00 (31.48) 1,838.94 2.625% 1 0JAN2023 084670BR8 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,018,615.87 1,025,423.81 6,807.94 0.00 2,368.05 8,097.22 1.30 BERKSHIRE HATHAWAY INC 01/15/2023 0.00 (510.02) (1,513.44) 2.75% 15MAR2023 (CALLABLE 15JAN23) 8 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31, 2019 ...a. ~ ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortization) value (loss) interest cost Corporate Bonds 931142DH3 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,013,295.75 1,021,734.86 8,439.11 0.00 2,195.84 5,666.67 1.29 WALMART INC 2.55% 01/11/2023 0.00 (365.60) 1,567.89 11 APR2023 (CALLABLE 11JAN23) 037833AK6 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,007,031.56 1,017,063.50 10,031.94 0.00 2,066.67 3,866.67 1.28 APPLE INC 2.4% 03MAY2023 0.00 (175.35) 1,812.89 69353RFL7 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,985,689.64 1,993,228.88 7,539.24 33,250.00 5,726.39 4,248.61 2.54 PNC BANK NA 3.5% 08JUN2023 05/09/2023 0.00 (2,126.30) 6,931.58 (CALLABLE 09MAY23) 94988J5R4 3.550 08/14/2023 1,000,000.00 1,050,350.00 1,047,585.98 1,048,072.98 487.00 0.00 3,056.94 13,509.72 1.33 WELLS FARGO BANK NA 3.55% 07/14/2023 0.00 (1,120.55) (872.18) 14AUG2023 (CALLABLE 14JUL23) 68389XBL8 2.400 09/15/2023 1,000,000.00 1,008,750.00 1,007,672.80 1,016,699.90 9,027.10 0.00 2,066.67 7,066.67 1.28 ORACLE CORP 2.4% 07/15/2023 0.00 (180.54) 3,841.21 15SEP2023(CALLABLE 15JUL23) 91159HHV5 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,993,550.37 1,995,233.97 1,683.60 0.00 5,521.87 26,006.25 2.54 US BANCORP 3.375% 01/05/2024 0.00 (1,942.22) (1,196.22) 05FEB2024(CALLABLE 05JAN24) 02665WCZ2 2.400 0612712024 1,000,000.00 1,012,410.00 1,012,258.38 1,011,191.70 (1,066.68) 12,000.00 1,000.01 266.67 1.29 AMERICAN HONDA FINANCE (11,266.66) (151.62) (1,218.30) 2.4% 27 JUN2024 Jotal Corporate Bonds 21,300,000.00 21,699,002.00 21,587,993.17 21,675,308.34 87,315.17 45,250.00 46,981.60 163,878.48 27.57 (11,266.66) (9,287.43) 7,466.56 Government Agencies 3133EGLA1 1.170 01/13/2020 2,000,000.00 1,999,780.00 1,999,997.61 1,999,664.20 (333.41) 0.00 2,015.00 10,920.00 2.54 FEDERAL FARM CREDIT BANK 0.00 5.51 774.44 1 .17% 13JAN2020 CALLABLE 9 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31 , 2019 ...a. u, ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortization) value (loss) interest cost Government Agencies 3137EAEE5 1.500 01/17/2020 3,000,000.00 2,957,514.00 2,998,362.99 2,999,704.86 1,341.87 0.00 3,875.00 20,500.00 3.76 FREDDIE MAC 1.5% 17JAN2020 0.00 2,888.85 296.10 3130AECJ7 2.625 05/28/2020 1,500,000.00 1,497,100.50 1,499,303.37 1,505,862.66 6,559.29 0.00 3,390.63 3,609.38 1.90 FEDERAL HOME LOAN BANK 0.00 141.21 (1,090.71) 2.625% 28MA Y2020 3130ABY34 1.613 05/29/2020 2,000,000.00 1,994,820.00 1,999,176.29 1,999,606.66 430.37 0.00 2,777.95 2,867.56 2.53 FEDERAL HOME LOAN BANK 0.00 165.85 162.50 1 .613% 29MA Y2020 3133EHYM9 1.500 09/14/2020 2,000,000.00 1,993,720.00 1,998,516.17 1,999,473.26 957.09 0.00 2,583.34 8,916.67 2.53 FEDERAL FARM CREDIT BANK 0.00 175.26 1,727.30 1 .5% 14SEP2020 3130AEWA4 2.625 10/01/2020 2,000,000.00 1,990,580.00 1,996,297.34 2,014,447.10 18,149.76 0.00 4,520.83 13,125.00 2.53 FEDERAL HOME LOAN BANK 0.00 394.77 (1,167.44) 2.625% 01 OCT2020 3133EGM51 1.650 12/01/2020 1,000,000.00 996,971.00 999,302.30 1,000,977.70 1,675.40 8,250.00 1,420.83 1,375.00 1.27 FEDERAL FARM CREDIT BANK 0.00 63.24 975.83 1.65% 01 DEC2020 3130A3UQ5 1.875 12/11/2020 1,000,000.00 997,820.00 999,321.11 1,002, 125.27 2,804.16 9,375.00 1,614.59 1,041.67 1.27 FEDERAL HOME LOAN BANK 0.00 59.72 (200.53) 1.875% 11 DEC2020 3133EKAJ5 2.500 02/11/2021 1,000,000.00 999,265.00 999,589.51 1,010,232.51 10,643.00 0.00 2,152.78 9,722.22 1.27 FEDERAL FARM CREDIT BANK 0.00 30.71 (310.90) 2.5% 11 FEB2021 3133EJJD2 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,002,736.23 1,012, ·150.10 9,413.87 0.00 2,187.22 6,067.78 1.28 FEDERAL FARM CREDIT BANK 0.00 (180.41) 780.88 2.54% 05APR2021 313379RB7 1.875 06/11/2021 1,000,000.00 985,600.00 990,917.19 1,003,211.99 12,294.80 9,375.00 1,614.59 1,041.67 1.25 FEDERAL HOME LOAN BANK 0.00 523.00 41.59 1.875% 11 JUN2021 10 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31, 2019 ..a. CJ\ 2_Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortization) value (loss) interest cost Government Agencies 3135G0U35 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,011,608.48 2,033,823.66 22,215.18 27,500.00 4,736.11 1,375.00 2.56 FANNIE MAE 2.75% 22JUN2021 0.00 (654.61) 427.32 3133EKCB0 2.500 07/01/2021 1,000,000.00 999,030.00 999,378.97 1,013,957.57 14,578.60 0.00 2,152.78 12,500.00 1.27 FEDERAL FARM CREDIT BANK 0.00 34.44 782.15 2.5% 01JUL2021 3137EAEC9 1.125 08/12/2021 1,000,000.00 991,273.00 991,391.33 992,623.05 1,231.72 0.00 31.25 4,343.75 1.26 FREDDIE MAC 1.125% (4,312.50) 118.33 1,350.05 12AUG2021 3135G0Q89 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,890,747.30 1,892,782.74 2,035.44 0.00 72.57 6,095.83 2.40 FANNIE MAE 1.375% (6,023.26) 116.20 2,151.64 07OCT2021 3130AABG2 1.875 11/29/2021 1,000,000.00 990,090.00 992,924.36 1,005,364.95 12,440.59 0.00 1,614.59 1,666.67 1.26 FEDERAL HOME LOAN BANK 0.00 308.08 367.79 1.875% 29NOV2021 3135G0U92 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,509,929.44 1,530,351.56 20,422.12 0.00 3,390.62 18,593.75 1.92 FANNIE MAE 2.625% 0.00 (393.38) 363.53 11JAN2022 3137EADB2 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,016,110.86 1,015,414.66 (696.20) 0.00 2,045.14 11,083.33 1.29 FREDDIE MAC 2.375% 0.00 (659.38) 572.88 13JAN2022 313378CR0 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,003,135.78 2,026,041.80 22,906.02 0.00 3,875.00 13,750.00 2.55 FEDERAL HOME LOAN BANK 0.00 (118.93) 174.28 2.25% 11 MAR2022 31331K3A6 2. 710 12/13/2022 1,000,000.00 1,028,921.06 1,024,732.97 1,031,429.76 6,696.79 13,550.00 2,333.61 1,355.00 1.31 FEDERAL FARM CREDIT BANK 0.00 (698.02) 485.33 2.71% 13DEC2022 31331KAF7 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,992,373.85 1,984,731.65 (7,642.20) 0.00 6,515.60 34,259.43 2.55 FEDERAL FARM CREDIT BANK 0.00 (3,890.00) (2,850.82) 4.09% 18JAN2023 11 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31, 2019 ~ '-1 2.cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortization) value (loss) interest cost Government Agencies 3133EKKT2 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,014,929.44 1,018,695.63 3,766.19 0.00 1,937.50 8,937.50 1.29 FEDERAL FARM CREDIT BANK 0.00 (400.61) (98.09) 2.25% 08FEB2023 3133EJFK0 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,030,905.52 1,031,508.80 603.28 0.00 2,281.95 8,318.06 1.31 FEDERAL FARM CREDIT BANK 0.00 (807.63) (1,449.69} 2.65% 08MAR2023 3137EAEN5 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,059,962.62 2,077,196.80 17,234.18 27,500.00 4,736.11 1,833.33 2.63 FREDDIE MAC 2.75% 0.00 (1,440.26} 442.04 19JUN2023 3135G0U43 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,034,630.23 1,043,857.11 9,226.88 0.00 2,475.69 8,704.86 1.32 FANNIE MAE 2.875% 0.00 (779.96) (490.55) 12SEP2023 3133EKVB9 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,997,895.41 2,016,253.56 18,358.15 0.00 3,203.34 7,646.67 2.54 FEDERAL FARM CREDIT BANK 0.00 46.19 (1,657.18} 1.86% 17OCT2023 3130A3VC5 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,013,186.50 1,023,347.82 10,161.32 11,250.00 1,937.50 1,437.50 1.29 FEDERAL HOME LOAN BANK 0.00 (278.98) 480.69 2.25% 08DEC2023 3135G0V34 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,025,403.28 1,030,936.64 5,533.36 0.00 2,152.78 10,138.89 1.31 FANNIE MAE 2.5% 05FEB2024 0.00 (516.68) (1,696.87} 3135G0V75 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,007,447.10 2,002,280.10 (5,167.00) 0.00 3,013.88 16,819.44 2.55 FANNIE MAE 1.75% 02JUL2024 0.00 (137.73) (3,882.22} ifotal Government Agencies 42,750,000.00 43,084,048.16 43,100,213.55 43,318,054.17 217,840.62 106,800.00 76,658.78 248,045.96 54.75 (10,335.76) (5,885.22) (2,538.66) Government Bonds 9128283Y4 2.250 02/29/2020 1,500,000.00 1,492, 148.44 1,499, 140.34 1,501,376.12 2,235.78 0.00 2,874.31 11,311.81 1.90 USA TREASURY 2.25% 0.00 444.16 (498.88) 29FEB2020 12 February 4, 2020, Item #3SECURITIES HELD CITY OF POWAY As of December 31, 2019 -00 ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % wDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 0 purchased (amortization) value (loss) interest cost Government Bonds 912828202 1.500 08/15/2020 2,000,000.00 1,990,156.25 1,997,799.63 1,998,437.50 637.87 0.00 2,527.17 11,250.00 2.53 USA TREASURY 1 .5% 0.00 299.17 781.26 15AUG2020 912828F21 2.125 09/30/2021 1,000,000.00 991,015.63 993,931.28 1,008,945.31 15,014.03 0.00 1,799.86 5,341.53 1.26 USA TREASURY 2.125% 0.00 294.42 546.87 30SEP2021 9128285F3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,510,908.41 1,533,632.82 22,724.41 0.00 3,652.67 9,072.75 1.93 USA TREASURY 2.875% 0.00 (517.07) 117.19 15OCT2021 912828XW5 1.750 06/30/2022 1,000,000.00 998,515.63 998,783.70 1,004, 140.62 5,356.92 8,750.00 1,474.18 0.00 1.27 USA TREASURY 1.75% 0.00 41.35 156.24 30JUN2022 912828L57 1.750 09/30/2022 1,000,000.00 999,417.41 999,507.23 1,004,023.44 4,516.21 0.00 1,482.24 4,398.91 1.27 USA TREASURY 1.75% 0.00 15.22 0.00 30SEP2022 9128282D1 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,970,717.73 1,981,562.50 10,844.77 0.00 2,342.03 9,217.03 2.50 USA TREASURY 1 .375% 0.00 677.94 (1,562.50) 31AUG2023 912828U57 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,923,023.17 1,933,843.75 10,820.58 20,187.50 3,419.74 3,419.74 2.45 USA TREASURY 2.125% 0.00 (499.10) (3,117.18) 30NOV2023 912828X70 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,033,975.39 2,027,421.88 (6,553.51) 0.00 3,406.60 6,703.30 2.59 USA TREASURY 2% 30APR2024 0.00 (665.76) (3,984.36) ifotal Government Bonds 13,900,000.00 65,597.06 28,937.§0 22,978,80 60,715.07 17.68 13 February 4, 2020, Item #3GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2019 ...l \0 g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Federal Farm Credit Banks Funding Corp 3133EGLA1 FEDERAL FARM CREDIT 1.170 01/13/2020 AA+ Aaa 2,000,000.00 1,999,780.00 2.54 1,999,664.20 2.53 0.04 3133EHYM9 FEDERAL FARM CREDIT 1.500 09/14/2020 AA+ Aaa 2,000,000.00 1,993,720.00 2.53 1,999,473.26 2.53 0.70 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971.00 1.27 1,000,977.70 1.27 0.91 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.27 1,010,232.51 1.28 1.09 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.28 1,012,150.10 1.28 1.23 3133EKCB0 FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.27 1,013,957.57 1.28 1.45 31331K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.31 1,031,429.76 1.31 2.83 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.55 1,984,731.65 2.51 2.83 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.29 1,018,695.63 1.29 2.97 3133EJFK0 FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.31 1,031,508.80 1.31 3.03 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.54 2,016,253.56 2.55 3.64 Issuer total 14,850,000.00 15,078,445.56 19.16 15,119,074.74 19.14 1.87 United States Treasury Note/Bond 9128283Y4 USA TREASURY 2.25% 2.250 02/29/2020 AA+ Aaa 1,500,000.00 1 ,492, 148.44 1.90 1,501,376.12 1.90 0.16 9128282Q2 USA TREASURY 1.5% 1.500 08/15/2020 AA+ Aaa 2,000,000.00 1,990, 156.25 2.53 1,998,437.50 2.53 0.62 912828F21 USA TREASURY 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.26 1,008,945.31 1.28 1.71 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 1.93 1,533,632.82 1.94 1.73 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.27 1,004,140.62 1.27 2.43 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.27 1,004,023.44 1.27 2.66 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.50 1,981,562.50 2.51 3.54 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.45 1,933,843.75 2.45 3.74 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.59 2,027,421.88 2.57 4.13 Issuer total 13,900,000.00 13,915,936.97 17.68 13,993,383.94 17.72 2.40 14 February 4, 2020, Item #3GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2019 N 0 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Federal Home Loan Banks 3130AECJ7 FEDERAL HOME LOAN 2.625 05/28/2020 AA+ Aaa 1,500,000.00 1,497,100.50 1.90 1,505,862.66 1.91 0.40 3130ABY34 FEDERAL HOME LOAN 1.613 05/29/2020 AA+ Aaa 2,000,000.00 1,994,820.00 2.53 1,999,606.66 2.53 0.41 3130AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.53 2,014,447.10 2.55 0.74 3130A3UQ5 FEDERAL HOME LOAN 1.875 12/11/2020 AA+ Aaa 1,000,000.00 997,820.00 1.27 1,002,125.27 1.27 0.94 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.25 1,003,211.99 1.27 1.42 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.26 1,005,364.95 1.27 1.87 313378CRO FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.55 2,026,041.80 2.57 2.12 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.29 1,023,347.82 1.30 3.76 Issuer total 11,500,000.00 11,474,610.50 14.58 11,580,008.25 14.66 1.32 Federal National Mortgage Association 3135GOU35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.56 2,033,823.66 2.57 1.44 3135GOQ89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.40 1,892,782.74 2.40 1.73 3135GOU92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 1.92 1,530,351.56 1.94 1.95 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.32 1,043,857.11 1.32 3.48 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.31 1,030,936.64 1.31 3.85 3135GOV75 FANNIE MAE 1 .75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.55 2,002,280.10 2.53 4.28 Issuer total 9,400,000.00 9,496,376.10 12.07 9,534,031.81 12.07 2.66 Federal Home Loan Mortgage Corp 3137EAEE5 FREDDIE MAC 1.5% 1.500 01/17/2020 AA+ Aaa 3,000,000.00 2,957,514.00 3.76 2,999,704.86 3.80 0.05 3137EAEC9 FREDDIE MAC 1.125% 1.125 08/12/2021 AA+ Aaa 1,000,000.00 991,273.00 1.26 992,623.05 1.26 1.59 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.29 1,015,414.66 1.29 1.96 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.63 2,077,196.80 2.63 3.30 Issuer total 7,000,000.00 7,034,616.00 8.94 7,084,939.37 8.97 1.50 15 February 4, 2020, Item #3GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2019 N -2,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 PNC Bank NA 69353RE53 PNC BANK NA 2.6% 2.600 07/21/2020 06/21/2020 A A2 1,000,000.00 1,016,010.00 1.29 1,003,303.54 1.27 0.47 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.54 1,993,228.88 2.52 3.17 Issuer total 2,900,000.00 3,011,446.00 3.83 2,996,532.42 3.79 2.26 Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 AA-Aa3 2,000,000.00 2,001,380.00 2.54 2,039,346.48 2.58 2.87 Issuer total 2,000,000.00 2,001 ,380.00 2.54 2,039,346.48 2.58 2.87 Coca-Cola Co/The 191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ A1 2,000,000.00 1,987,240.00 2.53 2,000,700.70 2.53 0.81 Issuer total 2,000,000.00 1,987,240.00 2.53 2,000,700.70 2.53 0.81 US Bancorp 91159HHV5 US BANCORP 3.375% 3.375 02/05/2024 01/05/2024 A+ A1 1,900,000.00 1,999,636.00 2.54 1,995,233.97 2.53 3.73 Issuer total 1,900,000.00 1,999,636.00 2.54 1,995,233.97 2.53 3.73 Microsoft Corp 59491 BAYO MICROSOFT CORP 1.85% 1.850 02/12/2020 01/12/2020 AAA Aaa 1,500,000.00 1,506, 140.00 1.91 1,500,010.95 1.90 0.11 Issuer total 1,500,000.00 1,506,140.00 1.91 1,500,010.95 1.90 0.11 TWDC Enterprises 18 Corp 25468PDP8 TWDC ENTERPRISES 18 1.950 03/04/2020 A A2 1,500,000.00 1,504,635.00 1.91 1,499,953.07 1.90 0.17 Issuer total 1,500,000.00 1,504,635.00 1.91 1,499,953.07 1.90 0.17 PepsiCo Inc 713448(55 PEPSICO INC 1 .85% 1.850 04/30/2020 03/30/2020 A+ A1 1,500,000.00 1,499,655.00 1.91 1,499,840.52 1.90 0.30 Issuer total 1,500,000.00 1,499,655.00 1.91 1,499,840.52 1.90 0.30 16 February 4, 2020, Item #3GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2019 N N ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Wells Fargo Bank NA 94988J5R4 WELLS FARGO BANK NA 3.550 08/14/2023 07/14/2023 A+ Aa2 1,000,000.00 1,050,350.00 1.33 1,048,072.98 1.33 3.29 Issuer total 1,000,000.00 1,050,350.00 1.33 1,048,072.98 1.33 3.29 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.30 1,025,423.81 1.30 2.93 Issuer total 1,000,000.00 1,021,370.00 1.30 1,025,423.81 1.30 2.93 Walmart Inc 931142DH3 WALMART INC 2.55% 2.550 04/11/2023 01/11/2023 AA Aa2 1,000,000.00 1,015,270.00 1.29 1,021,734.86 1.29 2.97 Issuer total 1,000,000.00 1,015,270.00 1.29 1,021,734.86 1.29 2.97 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.28 1,017,063.50 1.29 3.18 Issuer total 1,000,000.00 1,007,920.00 1.28 1,017,063.50 1.29 3.18 Oracle Corp 68389XBL8 ORACLE CORP 2.4% 2.400 09/15/2023 07/15/2023 A+ A1 1,000,000.00 1,008,750.00 1.28 1,016,699.90 1.29 3.42 Issuer total 1,000,000.00 1,008,750.00 1.28 1,016,699.90 1.29 3.42 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A A2 1,000,000.00 1,012,410.00 1.29 1,011,191.70 1.28 4.24 Issuer total 1,000,000.00 1 ,012,410.00 1.29 1,011 I 191 .70 1.28 4.24 Automatic Data Processing Inc 053015AD5 AUTOMATIC DATA 2.250 09/15/2020 08/15/2020 AA Aa3 1,000,000.00 1,002,630.00 1.27 1,002,643.69 1.27 0.63 Issuer total 1,000,000.00 1 ,002,630.00 1.27 1 ,002,643.69 1.27 0.63 17 February 4, 2020, Item #3GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2019 N w ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Cisco Systems Inc 17275RAH5 CISCO SYSTEMS INC 4.450 01/15/2020 AA-A1 1,000,000.00 1,070, 170.00 1.36 1,000,859.79 1.27 0.04 Issuer total 1,000,000.00 1,070,170.00 1.36 1,000,859.79 1.27 0.04 ~rardt~a,--~-----------n,9so,ooo.oo 1s,69s,9s1.13 100.00 1s,9s6,746.4s 100.00 -,:9s1 ~~ .. ·~--.o:1... . ~ . ~ 18 February 4, 2020, Item #3SECURITIES PURCHASED CITY OF POWAY For the period December 1, 2019 -December 31, 2019 N .,::a. a Cusip / Description I Broker Trade date Coupon Maturity/ Par value or Unit cost Principal Accrued w Settle date Call date shares cost interest purchased 0 Corporate Bonds 02665WCZ2 12/11/2019 2.400 06/27/2024 1,000,000.00 101.24 (1,012,410.00) (11,266.66) AMERICAN HONDA FINANCE 2.4% 27JUN2024 12/16/2019 BARCLAYS CAPITAL iTotal Corporate Bonds 1,000,000.00 (1,012,410.00) (11,266.66) Government Agencies 3137EAEC9 12/23/2019 1.125 08/12/2021 1,000,000.00 99.13 (991,273.00) (4,312.50) FREDDIE MAC 1.125% 12AUG2021 12/30/2019 MORGAN STANLEY AND CO., LLC 3135GOQ89 12/23/2019 1.375 10/07/2021 1,900,000.00 99.51 (1,890,631.1 O) (6,023.26) FANNIE MAE 1.375% 070CT2021 12/30/2019 MORGAN STANLEY AND CO., LLC Total Government Agencies 2,900,000.00 (2,881,904.10) (10,335.76) gral)d total 3,900,000.00 (3,894,314.10) (21,602.42) ~;..J,,:_~~ ~ _,. -. l ~~.-1 19 February 4, 2020, Item #3SECURITIES SOLD AND MATURED CITY OF POWAY For the period December 1, 2019 -December 31, 2019 N u, g,cusip/ Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued Interest Interest wDescription/ Settle date Call date shares at sale or maturity sale or maturity I gain interest received earned 0Broker /Acer (amort) Chg.in fair value (loss) sold Corporate Bonds 14912L6F3 12/02/2019 2.250 (1,000,000.00) 1,011,910.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 11,250.00 62.50 CATERPILLAR FINL S 2.25% 12/02/2019 (14.44) 0.00 SNR MTN 01 /12/19 USD 717081EB5 12/16/2019 1.700 (1,000,000.00) 999,940.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 8,500.00 708.33 PFIZER INC 1. 7% 12-15-2019 12/16/2019 0.95 50.60 Total (Corporate Bonds) (2,000,000.00) 2,011,850.00 2,000,000.00 2,000,000.00 0.00 0.00 19,750.00 770.83 (13.49) 50.60 Government Agencies 3136G4DA8 12/30/2019 1.200 (1,000,000.00) 998,250.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 6,000.00 1,000.00 FANNIE MAE 1.2% 12/30/2019 45.30 447.94 30DEC2019 CALLABLE #0001 3136G4KD4 12/30/2019 1.750 (1,900,000.00) 1,899,525.00 1,899,930.54 0.00 1,900,000.00 69.46 0.00 16,625.00 2,678.47 FANNIE MAE 1.75% 12/30/2019 03/29/2020 11.65 1,735.10 29JUN2020 CALLABLE if otal (Government Agencies) (2,900,000.00) 2,897,775.00 2,899,930.54 2,900,000.00 69.46 0.00 22,625.00 3,678.47 56.95 2,183.04 Government Bonds 912828G61 12/02/2019 1.500 (1,000,000.00) 1,002,968.75 1,000,000.00 0.00 1,000,000.00 0.00 0.00 7,500.00 0.00 UNITED STATES TREAS NTS 12/02/2019 0.00 0.00 DTD 11/30/2014 1.5% DUE 11-30-2019 REG Total (Government Bonds) (1 ,000,000.00) 1,002,968.75 1,000,000.00 1,000,000.00 0.00 0.00 7,500.00 0.00 0.00 0.00 Grand total (5,900,000.00) 5,912,593.75 5,899,930.54 5,900,000.00 69.46 o.oo 49,875.00 4,449.30 ' , 43.46 2,233.64 '.,, • .c L _ '" 20 February 4, 2020, Item #3TRANSACTION REPORT CITY OF POWAY For the period December 1, 2019 -December 31, 2019 N 0\ ~ Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wsettle date shares gain(loss) 0 11/30/2019 912828G61 Income Government Bonds UNITED ST A TES TREAS NTS 11/30/2019 1,000,000.00 0.00 0.00 7,500.00 7,500.00 11/30/2019 11/30/2019 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 11/30/2019 12/01/2019 14912L6F3 Income Corporate Bonds CATERPILLAR FINL S 2.25% SNR 12/01/2019 1,000,000.00 0.00 0.00 11,250.00 11,250.00 12/01/2019 12/01/2019 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 12/01/2019 12/02/2019 14912L6F3 Capital Change Corporate Bonds CATERPILLAR FINL S 2.25% SNR 12/01/2019 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/02/2019 12/02/2019 912828G61 Capital Change Government Bonds UNITED ST A TES TREAS NTS 11/30/2019 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/02/2019 12/08/2019 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 12/08/2019 12/08/2019 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 12/08/2019 12/11/2019 02665WCZ2 Bought Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 (1 ,012,410.00) (11,266.66) (1,023,676.66) 12/16/2019 12/11/2019 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 12/11/2019 12/11/2019 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 12/11/2019 12/13/2019 31331K3A6 Income Government Agencies FEDERAL FARM CREDIT BANK 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 12/13/2019 12/15/2019 717081EB5 Income Corporate Bonds PFIZER INC 1.7% 12-15-2019 12/15/2019 1,000,000.00 0.00 0.00 8,500.00 8,500.00 12/15/2019 12/16/2019 717081EB5 Capital Change Corporate Bonds PFIZER INC 1. 7% 12-15-2019 12/15/2019 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/16/2019 12/19/2019 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 12/19/2019 12/22/2019 3135G0U35 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 12/22/2019 12/23/2019 3135G0Q89 Bought Government Agencies FANNIE MAE 1.375% 10/07/2021 1,900,000.00 0.00 (1,890,631.10) (6,023.26) (1,896,654.36) 12/30/2019 21 February 4, 2020, Item #3TRANSACTION REPORT CITY OF POWAY For the period December 1, 2019 -December 31, 2019 N ..... ~Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wSettle date shares gain(loss) 0 12/23/2019 3137EAEC9 Bought Government Agencies FREDDIE MAC 1 .125% 08/12/2021 1,000,000.00 0.00 (991,273.00) (4,312.50) (995,585.50) 12/30/2019 12/27/2019 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 12/27/2019 12/29/2019 3136G4KD4 Income Government Agencies FANNIE MAE 1.75% 29JUN2020 06/29/2020 1,900,000.00 0.00 0.00 16,625.00 16,625.00 12/29/2019 12/30/2019 3136G4DA8 Income Government Agencies FANNIE MAE 1.2% 30DEC2019 12/30/2019 1,000,000.00 0.00 0.00 6,000.00 6,000.00 12/30/2019 12/30/2019 3136G4DA8 Capital Change Government Agencies FANNIE MAE 1.2% 30DEC2019 12/30/2019 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/30/2019 12/30/2019 3136G4KD4 Capital Change Government Agencies FANNIE MAE 1.75% 29JUN2020 06/29/2020 (1,900,000.00) 69.46 1,900,000.00 0.00 1,900,000.00 12/30/2019 12/31/2019 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 12/31/2019 22 February 4, 2020, Item #3ADDITIONAL INFORMATION CITY OF POWAY As of December 31, 2019 ~Past 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 o 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 possib!~ loss of principal. No assuran_ce can be given that t~e performan~e objectives of a given strateg~ wil_l be achieved. :he_ information contained herein is ~or oyour reference only and is being provided in response to your spec1f1c 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 Insights 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 Moodys, 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 Moodys 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 strategys holdings may differ substantially from the securities that comprise the indices shown. The BofA Merrill Lynch 3 Mo UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The BofA Merrill Lynch 6 Mo UST-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. The BofA Merrill Lynch Current 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch Current 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch Current 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The BofA Merrill Lynch 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. 23 February 4, 2020, Item #3N \0 ADDITIONAL INFORMATION As of December 31, 2019 CITY OF POWAY ~Insight 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. w Olnsight 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 ofThe Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2019 Insight Investment. All rights reserved. 24 February 4, 2020, Item #3w 0 0 ..... w 0 ~ ~ n ::c :s:: m z -I C City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash December 2019 Part I Investments & Cash with Fiscal A2ents I 1 l Settlement I Yield to 11 Days to 11 % of Total :I I I l Face Book Market Unrealized 11 INVESTMENT DESCRIPTION j Date Maturity Maturity Investment Value Value Value Gain(Loss) ! I 1st Am Gov't Obligations Money Mkt Fd i 12/31/19 I 1.06%1 I 111 100.00%1 $1,237,455.19 $1,237,455.19 I $1,237,455.19 $0.00 ! I ! I Ir Ii I I ! ~ ~ II 1 I I I ! i \ I II 11 I ! i 1.06%11. 111 100.00%1 i Average/Total ;; -$1,237,455.19 $1,237,455.19 $1,237,455.19 $0.00 ! ! I Paying Agent or Uninvested Cash & Dils 1 I $0.00 -i Total Investments and Cash with Fiscal Agent ~ ; --I $1,237,455.19 Part II Non-Manasred Investments ! I ! Settlement I Yield to 11 Days to 11 % of Total :I Face Book Market I Unrealized Ii INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value Gain(Loss) County Pool 12/31/19 I 2.02%11 111 60.37%1 $76,171.40 $76,171.40 $76,527.00 I $355.60 I Wells-Fargo CD 08/05/19 I 0.05%1 I 2111 I 39.63%1 $50,000.00 $50,000.00 $50,000.00 I so.oo 1 Average/Total I -II 1.24%1 I NIA II 100.00%1 $126,171.40 $126,171.40 $126,527.00 I $355.601 Part Ill General. Pavroll & Pettv Cash ! Book ~ Value I General Cash (Union Bank) I ---I $3,167,972.31 l1 Payroll Cash (Union Bank) ' 11 $20,000.00 f -----Emergency Cash (Union Bank) ~ --11 $10,000.00 --Grant Cash (Union Bank) i --11 $0.00 -Flexible Benefits Cash (Union Bank) ! -II $20,000.00 -Petty Cash ~ ---11 $8,600.00 -! Total Cash -II $3,226,572.31 -l l ,._,,_,....,..._,_,_,.=,-.,,...,.:._>...•,;:J..._.~, .• .,, .... ~. ~.r.;c;u,o.L•-• ··-