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Item 6 - City’s Investment Report as of December 31, 2020AGENDA RE PO RT City of Poway DATE: TO: FROM: CONTACT: SUBJECT: Summary: February 2, 2021 Honorable Mayor and Members of the City Council Aaron Bea nan, Director of Finance� Aaron Beanan, Director of Finance (858)668-4411 or abeanan@poway.org City's Investment Report as of December 31, 2020 CITY COUNCIL Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. For your information, attached is an investment portfolio report as of December 31, 2020. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b)(1) and the City's Investment Policy, the Finance Director (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of December 31, 2020, was $104,722,352. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 23,262,891 Deposits at the Local Agency Investment Fund (LAIF) 12,421,930 U.S. Treasury Notes 10,793,820 U. S. Instrumentalities 36,309,513 Corporate Notes 21,934,198 Fair Value of Investment Portfolio as of December 31, 2020 $104,722,352 1 of 29 February 2, 2021, Item #6 February 2, 2021, Item #6The 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, 2020, is estimated at 0.54% for LAIF, 0.49% for the CalTRUST short-term fund, and 0.69% for the CalTRUST medium-term fund. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down, and vice versa. This is known as interest rate risk or market risk. A portfolio's duration is a common measurement of interest rate risk. Due to anticipated actions of the Federal Reserve, the Finance Department, in conjunction with Insight Investment, has been increasing the duration of the externally managed investment portfolio since July 2019 by investing in longer-term investments (e.g. treasuries and corporate notes). The portfolio's weighted average duration is currently just under 2 years. This duration helps preserve the City's interest earning ability in an environment of declining interest rates as well as help increase market value. In response to the COVID-19 pandemic, the Federal Reserve lowered the target federal funds rate by 50 basis points on March 3, 2020 and 100 basis points on March 16, 2020. The target federal funds rate is currently between 0.00 percent and 0.25 percent. The Federal Reserve affirmed this target at their July 29, 2020 meeting. As of December 2020, the portfolio's purchase yield was 1.82 percent while 2-Year Treasury Notes were 0.12 percent. The yield differential is directly a result of increasing the portfolio's duration. 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 $67,069,733; the fair value is $69,037,531 for an unrealized gain of $1,967,798 or 2.93% 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, 2020, was $1,245,351. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $62,545 at December 31, 2020. The City's cash on hand at December 31, 2020, totaled $1,835,524. The December 31, 2020 balance of the City's Library Trust Fund was $258,715. Through the Fiscal Year 2020-21 period ending December 31, 2020, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2020-21, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating expenses. 2 of29 February 2, 2021, Item #6Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The externally managed investment portfolio earned $139,897 interest during December 2020, as well as $133,808 interest during November 2020, and $139,253 during October 2020. Fees for investment services during this period totaled $8,847. 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, 2020 Reviewed/ Approved By: win~ aserman Assistant City Manager 3 of29 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager February 2, 2021, Item #6City 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 September 2019 2020 11,271,671 11,434,570 11,427,085 11,798,998 4,593,072 21,774,271 27,291,828 45,007,839 1.99% 0.79% 1 1 1 1 13,993,384 10,841,160 43,318,054 38,487,404 21,675,308 21,765,412 78,986,746 71,093,976 13,927,787 10,425,075 43,100,214 37,468,630 21,587,993 21,066,088 78,615,994 68,959,793 370,752 2,134,183 151,068 135,086 2.02% 1.94% 1.91 1.96 2.02 2.07 106,278,574 116,101,815 2.01% 1.49% 1.47 1.20 1.55 1.27 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 2020 11,451,341 11,811,550 12,421,930 35,684,821 0.57% 1 1 10,793,820 36,309,513 21,934,198 69,037,531 10,423,137 35,433,831 21,212,765 67,069,733 1,967,798 139,897 1.82% 1.93 2.11 104,722,352 1.40% 1.27 1.39 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 29 ATTACHMENT A February 2, 2021, Item #6City of Poway Monthly Investment Portfolio Report December 31, 2020 Separately Managed Investment Pools % Return LAIF $ 12,421,930 35% 0.54% CalTrust -Short $ 11,451,341 32% 0.49% CalTrust -Medium $ 11,811,550 33% 0.69% Total Internally Managed $ 35,684,821 34% Weighted Average Yield 0.57% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 10,793,820 16% 1.91% Instrumentality Securities $ 36,309,513 53% 1.82% Corporate Notes $ 21,934,198 32% 1.79% Total Externally Managed $ 69,037,531 66% Weighted Average Yield 1.82% Years Effective Average Duration -External 1.93 Weighted Average Final Maturity -External 2.11 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ CalTrust -Medium $ Treasury Securities $ Instrumentality Securities $ Corporate Notes $ Total Portfolio Assets $ Weighted Average Yield Effective Average Duration -Total Weighted Average Maturity -Total Portfolio Change Beginning Balance Ending Balance Assets values shown at Market 5 of 29 12,421,930 12% 0.54% 11,451,341 11% 0.49% 11,811,550 11% 0.69% 10,793,820 10% 1.91% 36,309,513 35% 1.82% 21,934,198 21% 1.79% 104,722,352 1.40% Years 1.27 1.39 $ $ CalTrust -Medium, 33% Corporate Notes 24% Instrumentality Securities 39% 109,653,732 104,722,352 ATTACHMENT B 32% LAIF, 35% Treasury Instrumentality Securities, 53% CalTrust -Short CalTrust -12% Medium Treasury Securities 12% February 2, 2021, Item #6ATTACHMENT C February 2, 2021, Item #6...... Contents 0 -ti N U) 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 13 Securities sold and matured 17 Detail of return and interest received 18 Transaction report 21 Additional information 22 February 2, 2021, Item #6FIXED INCOME MARKET REVIEW As of December 31, 2020 00 0 .... N \D Chart 1: ISM indices remain in expansionary territory but soften ~ 65 60 55 ~ -t.5 iO -- Dec-1-t Dec-15 Dec-16 Dec-!-; Dec-16 Dec-19 ---~fanufacturing ---Xon-manufacturing -----Xeutral le,·d Source: Bloomberg Finance LP, December 31, 2020. Chart 2: Retail sales move into contractionary territory 20 15 ,. 10 5 • 0 ~~--A--~J\b--v--\,- -5 • -10 -1.5 . -20 Dec-1-t Dec-t5 Dec-16 Dec-1-: Dec-16 --Retail sales (%) Source: Bloomberg Finance LP, December 31, 2020. Dec-19 CITY OF POWAY Economic Indicators and Monetary Policy Congress passed a $2.3trn omnibus spending package including a $900bn COVID- relief package providing $325bn for small businesses and $286bn for individuals which is split between enhanced unemployment benefits (of $300 per week) and $600 stimulus checks. President Trump signed the package into law with formal rescissions, but reportedly the House did not plan to bring them to a vote, outside of increasing stimulus checks to $2,000 (although a Republican-controlled Senate is unlikely to pass it). Pfizer and Moderna's COVID-19 vaccines showed high efficacy levels in Phase 3 trials and both were granted 'emergency use authorizations' by the FDA. COVID-19 hospitalizations continued to rise and the consumer confidence index fell 4.3pts, to 88.6. The Federal Reserve confirmed asset purchases will continue at a rate of at least $120bn per month, until there is "substantial further progress" on employment and inflation. The Fed's quarterly economic forecasts were marginally improved, with unemployment expected to fall to 5% next year (compared to the previous estimate of 5.5%) and GDP forecast at 4.2% next year, indicating the economy will recover beyond pre-pandemic levels in 2021. Data-wise, job growth was weaker than expected in November at 245,000 as seasonal retail hiring was less positive than expected. The unemployment rate fell to 6.7% from 6. 9% as the participation rate fell 0.2 percentage points to 61 .5%. Retail sales decreased 1. 1 %, with declines broad-based across categories. The ISM Manufacturing index eased somewhat in November to 57.5 from 59.1, reflecting supply challenges, but remained in expansionary territory. The ISM Services index fell to 55.9 in November, closely in line with consensus expectations. The housing market remained a bright-spot with housing starts rising more than expected (1.2% -essentially to pre- pandemic levels) in November and the October data was revised higher. Interest Rate Summary Treasury yields did not change materially over the month. At the end of December, the 3-month US Treasury bill yielded 0.09%, the 6-month US Treasury bill yielded 0.09%, the 2-year US Treasury note yielded 0.12%, the 5-year US Treasury note yielded 0.36% and the 10-year US Treasury note yielded 0. 92%. 3 February 2, 2021, Item #6ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2020 -December 31, 2020 \0 0 .... N \0 Amortized Cost Basis Activity Summary Openln1 balance Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Realized gain (loss) Change in accruals from security movement Total amortization expense Total 01D/MKT accretion Income Return of capital Closln1 balance Endln1 fair value Unrealized gain (loss) 201,030.00 (2,201 ,Q30.00) Comparative Rates of Return(%) *Twelve * Six month trailing month trailing 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 0.37 0.39 0.33 0.33 0.38 0.39 0.54 0.05 0.05 0.04 0.05 0.06 O.D7 0.16 69,103,272.87 201,030.00 0.00 (2,201,030.00) 0.00 0.00 (36,449.90) 2,910.60 0.00 67,069,733.57 69,037,531 .36 1,967,797.79 * One month 0.01 0.01 0.01 0.01 0.01 0.01 0.03 Qetail of Amortized Cost Basis Return Interest Accretion Realized earned (amortization) gain (loss) Corporate Bonds 54,577.36 (21,725.39) 0.00 Government Agencies 67,653.26 (11,160.88) 0.00 Government Bonds 17,665.98 (653.03) 0.00 Total 139,896.60 (33,539.30) 0.00 Summary of Amortized Cost Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return{%) YTD return (%) Weighted average final maturity in days CITY OF POWAY Total income 32,851 .97 56,492.38 17,012.95 106,357.30 Total portfolio 139,896.60 (33,539.30) 0.00 106,357.30 67,409,357.27 0.16 1.92 769 4 February 2, 2021, Item #6ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2020 -December 31, 2020 ...a. 0 ~ I Fair Value Basis Activity Summary \0 Opening balance 71,080,524.48 Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Unrealized gain (loss) on security movements Change in accruals from security movement Return of capital Change in fair value for the period Ending fair value 201,030.00 (2,201,030.00) CQmparative Rates Qf Return{%} *Twelve * Six month trailing month trailing Fed Funds 0.37 0.05 Overnight Repo 0.39 0.05 ICE Sofa 3 Months UST-BILL 0.67 O.Dl ICE Sofa 6m US Treas Bill 1.05 0.11 ICE Sofa 1 Yr US Treasury Note 1.82 0.13 ICE BofA US Treasury 1-3 3.10 0.15 ICE Bof A US Treasury 1-5 4.25 0.14 * rates reflected are cumulative 201,030.00 0.00 (2,201 ,030.00) 0.00 0.00 0.00 (42,993.12) 69,037,531.36 * One month 0.01 0.01 0.01 0.02 0.00 0.05 0.07 Detail Qf Fair Value Basis Return Interest Change in earned fair value Corporate Bonds 54,577.36 4,711.46 Government Agencies 67,653.26 (36,825.69) Government Bonds 17,665.98 (10,878.89) Total 139,896.60 (42,993.12) Summary Qf Fair Value Basis Return for the PeriQd 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 59,288.82 30,827.57 6,787.09 96,903.48 Total portfolio 139,896.60 (42,993.12) 96,903.48 69,788,526.87 0.14 3.88 769 5 February 2, 2021, Item #6RECAP OF SECURITIES HELD As of December 3 1, 2020 --0 .... N '° Corporate Bonds Government Agencies Government Bonds Historical cost 21,414,97 1.00 35,613,408.96 10,433,632.28 Amortized cost Fair value 21,212,764.84 21,934,198.16 35,433,83 1.78 36,309,512.86 10,423,136.95 10,793,820.34 Unrealized gain (loss) 721,433.32 875,681.08 370,683.39 Weighted Percent average of final portfolio maturity (days) 990 628 798 31.74 52.79 15.47 Portfolio divers ification (%) ■ Corporate Bonds Government Agencies ■ Government Bonds Total 31.7.c:1 52.79 15.47 100.00 We.ighted average effective duration (years) 2.37 1.61 2.1 4 CITY OF POWAY 6 February 2, 2021, Item #6MATURITY DISTRIBUTION OF SECURITIES HELD As of December 31 , 2020 ...a. N 0 .... N \D Maturity Under 90 days 90 to 1 79 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 ..§. ..... Ill 0 u iii u .§ ..... Ill :f 30.00 25.00 20.00 15.00 10.00 5.00 0.00 'l::>'l>~ ~~ rt;. ,f~· ~,o 'l::)'l>~ ~~ "Cb~ Maturity distribution ,J "~ ,o 'l::>tfi',C:, rt>~ ~0 'l, ..._,o rbe:, ~0 ~ 'l,,o rbe:, t;,.~0 ~,o Historic cost Percent 999,265.00 1.48 4,007,490.00 5.94 7,377,918.64 10.94 14,063,849.40 20.85 29,860,547.57 44.26 11,152,941 .63 16.53 0.00 0.00 0.00 0.00 67,462,012.24 100.00 rbe:, 'o~0 t;,. ,o rbe:, <t:,~0 ,It 0~ CITY OF POWAY 7 February 2, 2021, Item #6SECURITIES HELD CITY OF POWAY As of December 31, 2020 ..a. w 2_ Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port \0 (loss) interest cost Corporate Bonds 68389XBBO ORACLE CORP 2.5% 15MAY2022 (CALLABLE 15MAR22) 2.500 05/15/2022 1,500,000.00 1,542,555.00 1,527,262.78 1,540, 103.39 12,840.61 4,791.67 2.29 03/15/2022 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 OJAN2023 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,766.08 2,094,829.92 94,063.84 24,937.50 2.97 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2. 750 03/15/2023 1,000,000.00 1,021,370.00 1,012,495.58 1,050,161 .62 37,666.04 8,097.22 1.51 (CALLABLE 15JAN23) 01/15/2023 931142DH3 WALMART INC 2.55% 11APR2023 (CALLABLE 11JAN23) 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,008,908.52 1,047,623.85 38,715.33 5,666.67 1.50 01/11/2023 037833AK6 APPLE INC 2.4% 03MAY2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,004,927.35 1,048,963.93 44,036.58 3,866.67 1.49 166764BK5 CHEVRON CORP 2.566% 16MAY2023 (CALLABLE 2.566 05/1 6/2023 1,500,000.00 1,552,215.00 1,537,819.05 1,575,429.41 37,610.36 4,811.25 2.30 16MAR23) 03/16/2023 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,960,174.12 2,039,679.18 79,505.06 4,248.61 2.96 05/09/2023 94988J5R4 WELLS FARGO BANK NA 3.55% 14AUG2023 (CALLABLE 3.550 08/14/2023 1,000,000.00 1,050,350.00 1,034,139.39 1,080,010.00 45,870.61 13,509.72 1.56 14JUL23) 07/14/2023 68389XBL8 ORACLE CORP 2.4% 15SEP2023 (CALLABLE 15JUL23) 2.400 09/15/2023 1,000,000.00 1,008,750.00 1,005,506.36 1,051,497.87 45,991.51 7,066.67 1.50 07/15/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,463,419.19 1,530,397.69 66,978.50 22,427.22 2.20 12/23/2023 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,970,243.70 2,068,402.95 98,159.25 26,006.25 2.96 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,053,812.35 1,099,452.17 45,639.82 11,781.25 1.59 8 February 2, 2021, Item #6SECURITIES HELD CITY OF POWAY As of December 31, 2020 .... ~ g_ Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port \0 (loss) interest cost Corporate Bonds 06051 GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 3.550 03/05/2024 1,350,000.00 1,445,445.00 1,428,867.71 1,442,191.03 13,323.32 15,442.50 2.14 05MAR23) 03/05/2023 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,009,529.24 1,062, 198.39 52,669.15 133.33 1.50 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,194,893.42 2,203,256.76 8,363.34 5,811 .00 3.27 05DEC23) 12/05/2023 . - - Total Corporate Bonds 20,sso,000.00 21,414,971.00 21,212,764.84 21,934,198.16 721,43332 158,597.53 31.74 Government Agencies 3133EKAJ5 FEDERAL FARM CREDIT BANK 2.5% 11 FEB2021 2.500 02/11/2021 1,000,000.00 999,265.00 999,958.03 1,002,616.91 2,658.88 9,722.22 1.48 3133EJJD2 FEDERAL FARM CREDIT BANK 2.54% 05APR2021 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,000,571.30 1,006,358.65 5,787.35 6,067.78 1.49 313379RB7 FEDERAL HOME LOAN BANK 1.875% 11 JUN2021 1.875 06/11/2021 1,000,000.00 985,600.00 997,193.22 1,007,523.75 10,330.53 1,041.67 1.46 3135G0U35 FANNIE MAE 2.75% 22JUN2021 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,003,753.12 2,024,798.40 21,045.28 1,375.00 2.99 3133EKCB0 FEDERAL FARM CREDIT BANK 2.5% 01 JUL2021 2.500 07/01/2021 1,000,000.00 999,030.00 999,792.22 1,011,997.85 12,205.63 12,500.00 1.48 3137EAEC9 FREDDIE MAC 1.125% 12AUG2021 1.125 08/12/2021 1,000,000.00 991,273.00 996,716.28 1,006,139.09 9,422.81 4,343.75 1.47 3135G0Q89 FANNIE MAE 1.375% 07OCT2021 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,895,976.46 1,918,128.28 22,151.82 6,095.83 2.80 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 1.875 11/29/2021 1,000,000.00 990,090.00 996,621 .36 1,015,959.81 19,338.45 1,666.67 1.47 9 February 2, 2021, Item #6SECURITIES HELD CITY OF POWAY As of December 31, 2020 ... u, g_ Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port \D (loss) interest cost Government Agencies 3135G0U92 FANNIE MAE 2.625% 11JAN2022 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,505,046.11 1,538,435.13 33,389.02 18,593.75 2.24 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,008,198.30 1,023,120.00 14,921.70 11,083.33 1.51 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,001,708.62 2,050,648.10 48,939.48 13,750.00 2.97 3135G0V59 FANNIE MAE 2.25% 12APR2022 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,924,815.35 2,980,996.10 56,180.75 14,318.75 4.36 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 1.930 10/18/2022 2,000,000.00 2,015,820.00 2,010,251 .36 2,058,203.80 47,952.44 7,827.22 2.99 31331 K3A6 FEDERAL FARM CREDIT BANK 2.71 % 13DEC2022 2.710 12/13/2022 1,000,000.00 1,028,921 .06 1,016,356.80 1,049,380.19 33,023.39 1,355.00 1.53 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,945,693.90 1,997,697.69 52,003.79 34,259.43 2.98 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,010,122.11 1,043,380.55 33,258.44 8,937.50 1.51 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,021,213.89 1,053,689.13 32,475.24 8,318.06 1.53 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,042,679.56 2, 126,342.52 83,662.96 1,833.33 3.07 3135G0U43 FANNIE MAE 2.875% 12SEP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,025,270.71 1,071,504.12 46,233.41 8,704.86 1.54 3133EKVB9 FEDERAL FARM CREDIT BANK 1 .86% 17OCT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,449.65 2,090,135.84 91 ,686.19 7,646.67 2.96 10 February 2, 2021, Item #6SECURITIES HELD CITY OF POWAY As of December 31, 2020 ~ O"I g. Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port \0 (loss) interest cost Government Agencies 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,009,838.73 1,060,297.33 50,458.60 1,437.50 1.50 3135G0V34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,019,203.16 1,071,063.80 51,860.64 10,138.89 1.52 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,998,607.31 1,995,272.36 (3,334.95) 1,550.00 2.96 (CALLABLE 13JAN21) 3135G0V75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,005,794.23 2,105,823.46 100,029.23 17,402.78 2.98 Total Government Agencies 35, 150,000.00 35,613,408.96 35,433,831.78 36,309,512.86 875,681.08 209,969.99 52.79 Government Bonds 912828F21 USA TREASURY 2.125% 30SEP2021 2.125 09/30/2021 1,000,000.00 991,015.63 997,407.26 1,014,921 .88 17,514.62 5,370.88 1.47 9128285F3 USA TREASURY 2.875% 15OCT2021 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,504,803.70 1,532,285.16 27,481.46 9,122.60 2.25 912828XW5 USA TREASURY 1.75% 30JUN2022 1.750 06/30/2022 1,000,000.00 998,515.63 999,271 .82 1,024,335.94 25,064.12 0.00 1.48 912828L57 USA TREASURY 1.75% 30SEP2022 1 . 750 09/30/2022 1,000,000.00 999,417.41 999,686.86 1,028,242.19 28,555.33 4,423.08 1.48 9128282D1 USA TREASURY 1.375% 31 AUG2023 1 .375 08/31/2023 2,000,000.00 1,967,109.38 1,978,721.69 2,065,312.50 86,590.81 9,267.96 2.92 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,917,130.53 2,008,878.91 91,748.38 3,438.53 2.85 11 February 2, 2021, Item #6...a. ...... SECURITIES HELD As of December 31, 2020 2_ Cusip N Description \0 Government Bonds 912828X70 USA TREASURY 2% 30APR2024 Total Government Bonds Coupon Maturity/ Call date 2.000 04/30/2024 Par value or Historical cost Amortized cost shares 2,000,000.00 2,036,015.63 2,026,115.09 10,400,000.00 10,433,632.28 10,423,136.95 CITY OF POWAY Fair value Unrealized Total % gain accrued Port (loss) interest cost 2,119,843.76 93,728.67 6,740.33 3.02 -10,793,820.34 370,68339 38,363.38 15.47 12 February 2, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2020 ..a. 00 a Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) \0 Federal Farm Credit Banks Funding Corp 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.48 1,002,616.91 1.45 0.11 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.49 1,006,358.65 1.46 0.26 3133EKCB0 FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.48 1,011,997.85 1.47 0.49 3133EA5E4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 2.99 2,058,203.80 2.98 1.77 31331 K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.53 1,049,380.19 1.52 1.91 31331 KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.98 1,997,697.69 2.89 1.95 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.51 1,043,380.55 1.51 2.05 3133EJFK0 FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.53 1,053,689.13 1.53 2.12 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.96 2,090, 135.84 3.03 2.72 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.96 1,995,272.36 2.89 1.95 Issuer total 13,850,000.00 14, 102,294.56 20.90 14,308,732.97 20.73 1.70 Federal National Mortgage Association 3135G0U35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.99 2,024,798.40 2.93 0.47 3135G0Q89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.80 1,918,128.28 2.78 0.76 3135G0U92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 2.24 1,538,435.13 2.23 1.01 3135G0V59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 4.36 2,980,996.10 4.32 1.26 3135G0U43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.54 1,071,504.12 1.55 2.59 3135G0V34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.52 1,071,063.80 1.55 2.97 3135G0V75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.98 2,105,823.46 3.05 3.38 Issuer total 12,300,000.00 12,439,722.40 18.44 12,710,749.29 18.41 1.62 United States Treasury Note/Bond 912828F21 USA TREASURY 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.47 1,014,921.88 1.47 0.74 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.25 1,532,285.16 2.22 0.78 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.48 1,024,335.94 1.48 1.48 13 February 2, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2020 -\0 ~ Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) \0 United States Treasury Note/Bond 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.48 1,028,242.19 1.49 1.72 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.92 2,065,312.50 2.99 2.61 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.85 2,008,878.91 2.91 2.84 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 3.02 2,119,843.76 3.07 3.23 Issuer total 10,400,000.00 10,433,632.28 15.47 10,793,820.34 15.63 2.14 Federal Home Loan Banks 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.46 1,007,523.75 1.46 0.44 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.47 1,015,959.81 1.47 0.91 313378CRO FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.97 2,050,648.10 2.97 1.17 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.50 1,060,297.33 1.54 2.85 Issuer total 5,000,000.00 4,994,290.00 7.40 5,134,428.99 7.44 1.32 Federal Home Loan Mortgage Corp 3137EAEC9 FREDDIE MAC 1.125% 1.125 08/12/2021 AA+ Aaa 1,000,000.00 991,273.00 1.47 1,006,139.09 1.46 0.61 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.51 1,023,120.00 1.48 1.02 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 3.07 2, 126,342.52 3.08 2.40 Issuer total 4,000,000.00 4,077 I 102.00 6.04 4,155,601.61 6.02 1.62 Oracle Corp 68389XBBO ORACLE CORP 2.5% 2.500 05/15/2022 03/15/2022 A A3 1,500,000.00 1,542,555.00 2.29 1,540,103.39 2.23 1.19 68389XBL8 ORACLE CORP 2.4% 2.400 09/15/2023 07/15/2023 A A3 1,000,000.00 1,008,750.00 1.50 1,051,497.87 1.52 2.47 Issuer total 2,500,000.00 2,551,305.00 3.78 2,591,601.26 3.75 1.70 JPMorgan Chase & Co 46647PAY2 JPMORGAN CHASE & CO 4.023 12/05/2024 12/05/2023 A-A2 2,000,000.00 2,207,640.00 3.27 2,203,256.76 3.19 2.78 Issuer total 2,000,000.00 2,207,640.00 3.27 2,203,256.76 3.19 2.78 14 February 2, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2020 N 0 2. Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date \0 rating rating shares cost hist cost value mkt value dur (yrs) Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 2.97 2,094,829.92 3.03 1.96 Issuer total 2,000,000.00 2,001,380.00 2.97 2,094,829.92 3.03 1.96 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 2.96 2,068,402.95 3.00 2.86 Issuer total 1,900,000.00 1,999,636.00 2.96 2,068,402.95 3.00 2.86 PNC Bank NA 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.96 2,039,679.18 2.95 2.27 Issuer total 1,900,000.00 1,995,436.00 2.96 2,039,679.18 2.95 2.27 Chevron Corp 166764BK5 CHEVRON CORP 2.566% 2.566 05/16/2023 03/16/2023 AA Aa2 1,500,000.00 1,552,215.00 2.30 1,575,429.41 2.28 2.15 Issuer total 1,500,000.00 1,552,215.00 2.30 1,575,429.41 2.28 2.15 Citibank NA 17325FA57 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 2.20 1,530,397.69 2.22 2.81 Issuer total 1,400,000.00 1,484,224.00 2.20 1,530,397.69 2.22 2.81 Bank of America Corp 06051 GHF9 BANK OF AMERICA CORP 3.550 03/05/2024 03/05/2023 A-A2 1,350,000.00 1,445,445.00 2.14 1,442,191 .03 2.09 2.09 Issuer total 1,350,000.00 1,445,445.00 2.14 1,442,191.03 2.09 2.09 Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.59 1,099,452.17 1.59 3.00 Issuer total 1,000,000.00 1,070,370.00 1.59 1,099,452.17 1.59 3.00 15 February 2, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2020 N -a Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mktvalue dur (yrs) \0 Wells Fargo Bank NA 94988JSR4 WELLS FARGO BANK NA 3.550 08/14/2023 07/14/2023 A+ Aa2 1,000,000.00 1,050,350.00 1.56 1,080,010.00 1.56 2.42 Issuer total 1,000,000.00 1,050,350.00 1.56 1,080,010.00 1.56 2.42 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.50 1,062, 198.39 1.54 3.36 Issuer total 1,000,000.00 1,012,410.00 1.50 1,062, 198.39 1.54 3.36 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.51 1,050,161.62 1.52 1.99 Issuer total 1,000,000.00 1,021,370.00 1.51 1,050,161.62 1.52 1.99 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.49 1,048,963.93 1.52 2.27 Issuer total 1,000,000.00 1,007,920.00 1.49 1,048,963.93 1.52 2.27 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 1.50 1,047,623.85 1.52 1.99 Issuer total 1,000,000.00 1,015,270.00 1.50 1,047,623.85 1.52 1.99 16 February 2, 2021, Item #6SECURITIES SOLD AND MATURED CITY OF POWAY For the period December 1, 2020 -December 31, 2020 N N ~ Cusip Description / Broker Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued N Settle date Call date shares at sale or sale or gain interest \0 maturity maturity (loss) sold Government Agencies 3133EGM51 FFCB TRANCHE 00668 1.65 12/01/2020 1.650 (1 ,000,000.00) 996,971 .00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 12-01-2020 12/01/2020 3130A3UQ5 FEDERAL HOME LN BKS CONS BD DTD 12/11/2020 1.875 (1,000,000.00) 997,820.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 1.875% DUE 12-11-2020 12/11/2020 Total (Government Agencies) (2,000,000.00) 1,994,791.00 2,000,000.00 2,000,000.00 0.00 0.00 17 February 2, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2020 -December 31, 2020 N w g_ Cusip Description Accretion Realized gain Change in fair Interest earned Interest received N (amortization) (loss) value \0 Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 (227.43) 0.00 (1,283.64) 1,933.33 12,000.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 (831.55) 2,066.67 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (3,014.05) 0.00 4,284.29 4,126.87 0.00 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 15JAN23) (510.03) 0.00 (1 ,124.82) 2,368.05 0.00 166764BK5 CHEVRON CORP 2.566% 1 6MAY2023 (CALLABLE 16MAR23) (1,425.34) 0.00 (2,310.94) 3,314.42 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1,411.17) 0.00 (3,000.50) 3,121.53 0.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1 ,773.14) 0.00 253.69 4,400.28 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541 .99) 0.00 1,143.72 6,928.50 40,230.00 68389XBL8 ORACLE CORP 2.4% 15SEP2023 (CALLABLE 15JUL23) (180.54) 0.00 (410.31) 2,066.67 0.00 68389XBB0 ORACLE CORP 2.5% 15MAY2022 (CALLABLE 15MAR22) (1,880.19) 0.00 (1,942.93) 3,229.17 0.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) (2,126.29) 0.00 979.24 5,726.39 33,250.00 89233P7F7 TOY OT A MOTOR CREDIT CORP 2.625% 1 0JAN2023 (31.49) 0.00 2,820.64 4,520.83 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1,942.23) 0.00 8,100.92 5,521.87 0.00 931142DH3 WALMART INC 2.55% 11APR2023 (CALLABLE 11JAN23) (365.60) 0.00 273.69 2,195.84 0.00 94988J5R4 WELLS FARGO BANK NA 3.55% 14AUG2023 (CALLABLE 14JUL23) (1,120.55) 0.00 (2,240.04) 3,056.94 0.00 ----~-Total Corporate Bonds (21,725.39) 0.00 4,711.46 54,577.36 85,480.00 Government Agencies 3135G0Q89 FANNIE MAE 1.375% 07OCT2021 435.77 0.00 (2,25872) 2,249.65 0.00 3135G0V75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 975.22 3,013.89 0.00 3135G0V59 FANNIE MAE 2.25% 12APR2022 (1,611 .39) 0.00 (3,849 93) 5,618.75 0.00 18 February 2, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY N For the period December 1, 2020 -December 31, 2020 ~ g_ Cusip Description Accretion Realized gain Change in fair Interest earned Interest received N (amortization) (loss) value ID Government Agencies 3135G0V34 FANNIE MAE 2.5% 05FEB2024 (516.67) 0.00 (362.02) 2,152.78 0.00 3135G0U92 FANNIE MAE 2.625% 11JAN2022 (393.38) 0.00 (3,054.87) 3,390.62 0.00 3135G0U35 FANNIE MAE 2.75% 22JUN2021 (654.61) 0.00 (4,67724) 4,736.11 27,500.00 3135G0U43 FANNIE MAE 2.875% 12SEP2023 (779.96) 0.00 (2,159.08) 2,475.69 0.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 13JAN21) 35.77 0.00 1,076.36 516.67 0.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 46.18 0.00 (3,551.02) 3,203.34 0.00 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 (474.60) 0.00 9,938.42 3,323.89 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.61) 0.00 (1,934.37) 1,937.50 0.00 3133EKCB0 FEDERAL FARM CREDIT BANK 2.5% 01 JUL2021 34.43 0.00 (1,994.14) 2,152.78 0.00 3133EKAJ5 FEDERAL FARM CREDIT BANK 2.5% 11 FEB2021 30.71 0.00 (2,089.03) 2,152.78 0.00 3133EJJD2 FEDERAL FARM CREDIT BANK 2.54% 05APR2021 (180.41) 0.00 (1,963.66) 2,187.22 0.00 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.64) 0.00 (2,280.25) 2,281.95 0.00 31331K3A6 FEDERAL FARM CREDIT BANK 2.71% 13DEC2022 (698.02) 0.00 (1,875.43) 2,333.61 13,550.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,890.00) 0.00 (6,567.00) 6,515.60 0.00 3130A3UQ5 FEDERAL HOME LN BKS CONS BD DTD 1.875% DUE 12-11-2020 21 .90 0.00 (463 68) 572.92 9,375.00 313379RB7 FEDERAL HOME LOAN BANK 1.875% 11JUN2021 523.00 0.00 (1,811.43) 1,614.59 9,375.00 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 308.09 0.00 (1,434.85) 1,614.59 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 (278.98) 0.00 388.24 1,937.50 11,250.00 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 (118.93) 0.00 (1,529.86) 3,875.00 0.00 3133EGM51 FFCB TRANCHE 00668 1.65 12-01-2020 2.11 0.00 0.00 45.83 8,250.00 19 February 2, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2020 -December 31, 2020 "' u, g_ Cusip Description Accretion Realized gain Change in fair Interest earned Interest received "' \0 (amortization) (loss) value Government Agencies 3137EAEC9 FREDDIE MAC 1.125% 12AUG2021 443.74 0.00 (847.35) 968.75 0.00 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 (659.38) 0.00 (2,059.64) 2,045.14 0.00 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 {1 ,440.26) 0.00 (2,440.36) 4,736.11 27,500.00 -Total Government Agencies (11, 160.88) 0.00 (36,825.69) 67,653.26 106,800.00 Government Bonds 9128282D1 USA TREASURY 1.375% 31 AUG2023 677.93 0.00 (15626) 2,354.98 0.00 912828XW5 USA TREASURY 1.75% 30JUN2022 41 .35 0.00 (1 ,132.81) 1,474.18 8,750.00 912828L57 USA TREASURY 1.75% 30SEP2022 15.21 0.00 (1,210.93) 1,490.39 0.00 912828X70 USA TREASURY 2% 30APR2024 (665.76) 0.00 (1 ,093.74) 3,425.41 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (499.10) 0.00 (1,484.38) 3,438.53 0.00 912828F21 USA TREASURY 2.125% 30SEP2021 294.41 0.00 (1 ,875.00) 1,809.75 0.00 9128285F3 USA TREASURY 2.875% 15OCT2021 (517.07) 0.00 (3,925.77) 3,672.74 0.00 ------Total Government Bonds (653.03) 0.00 (10,878.89) 17,665.98 8,750.00 20 February 2, 2021, Item #6TRANSACTION REPORT CITY OF POWAY For the period December 1, 2020 -December 31, 2020 N en g. Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total N Settle date shares gain(loss) U) 12/01/2020 3133EGM51 Income Government Agencies FFCB TRANCHE 00668 1.65 12/01/2020 1,000,000.00 0.00 0.00 8,250.00 8,250.00 12/01/2020 12/01/2020 3133EGM51 Capital Change Government Agencies FFCB TRANCHE 00668 1.65 12/01/2020 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/01/2020 12/05/2020 46647PAY2 Income Corporate Bonds JPMORGAN CHASE & CO 12/05/2024 2,000,000.00 0.00 0.00 40,230.00 40,230.00 12/05/2020 12/08/2020 3130A3VC5 Income Government Agencies FEDERAL HOME LOAN BANK 12/08/2023 1,000,000.00 0.00 0.00 11,250.00 11,250.00 12/08/2020 12/08/2020 69353RFL7 Income Corporate Bonds PNC BANK NA 3.5% 08JUN2023 06/08/2023 1,900,000.00 0.00 0.00 33,250.00 33,250.00 12/08/2020 12/11/2020 3130A3UQ5 Income Government Agencies FEDERAL HOME LN BKS CONS 12/11/2020 1,000,000.00 0.00 0.00 9,375.00 9,375.00 12/11/2020 12/11/2020 3130A3UQ5 Capital Change Government Agencies FEDERAL HOME LN BKS CONS 12/11/2020 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/11/2020 12/11/2020 313379RB7 Income Government Agencies FEDERAL HOME LOAN BANK 06/11/2021 1,000,000.00 0.00 0.00 9,375.00 9,375.00 12/11/2020 12/13/2020 31331 K3A6 Income Government Agencies FEDERAL FARM CREDIT BANK 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 12/13/2020 12/19/2020 3137EAEN5 Income Government Agencies FREDDIE MAC 2.75% 06/19/2023 2,000,000.00 0.00 0.00 27,500.00 27,500.00 12/19/2020 12/22/2020 3135GOU35 Income Government Agencies FANNIE MAE 2.75% 22JUN2021 06/22/2021 2,000,000.00 0.00 0.00 27,500.00 27,500.00 12/22/2020 12/29/2020 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 12/29/2020 12/31/2020 912828XW5 Income Government Bonds USA TREASURY 1.75% 06/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 12/31/2020 21 February 2, 2021, Item #6ADDITIONAL INFORMATION CITY OF POWAY As of December 31, 2020 N -.J 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 g. 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 N in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for \D 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 offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document should not be duplicated, amended, or forwarded to a third party without consent from Insight. This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through two different SEC-registered investment advisers using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as Insight, Insight Group or Insight Investment. INA is an investment adviser registered with the Securities and Exchange Commission (SEC), under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. You may request, without charge, additional information about Insight. Moreover, specific information relating to Insights strategies, including investment advisory fees, may be obtained from INA's Form ADV Part 2A, which is available without charge upon request. Where indicated, performance numbers used in the analysis are gross returns. The performance reflects the reinvestment of all dividends and income. INA charges management fees on all portfolios managed and these fees will reduce the returns on the portfolios. For example, assume that $30 million is invested in an account with INA, and this account achieves a 5.0% annual return compounded monthly, gross of fees, for a period of five years. At the end of five years that account would have grown to $38,500,760 before the deduction of management fees. Assuming management fees of 0.25% per year are deducted monthly from the account, the value at the end of the five year period would be $38,022,447. Actual fees for new accounts are dependent on size and subject to negotiation. INA 's investment advisory fees are discussed in Part 2A of its Form ADV. Unless otherwise stated, the source of information is Insight. Any forecasts or opinions are Insight's own at the date of this document (or as otherwise specified) and may change. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will remain in any fund, account, or strategy, or that a previously held security will not be repurchased. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. Please compare the information provided in this statement to the information provided in the statement received from your Custodian. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker. In calculating ratings distributions and weighted average portfolio quality, Insight assigns U.S Treasury and U.S agency securities a quality rating based on the methodology used within the respective benchmark index. When Moody's, S&P and Fitch rate a security, Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic. Insight assigns all other securities the lower of Moody's and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy's holdings may differ substantially from the securities that comprise the indices shown. The ICE BofA 3 Month UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The ICE Bof A 6 Month UST-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. The ICE BofA 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 ICE BofA 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 ICE Bof A 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 ICE Bof A 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 ICE BofA 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. 22 February 2, 2021, Item #6N 00 ADDITIONAL INFORMATION As of December 31, 2020 CITY OF POWAY g_ 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. N '-'> Insight is a group of wholly owned subsidiaries of The Bank of New York Mellon Corporation. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2020 Insight Investment. All rights reserved. 23 February 2, 2021, Item #6N \0 0 .... N \0 ~ ~ n :c ~ m z -I C City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash December 2020 Investments & Cash with Fiscal ARents Settlement INVESTMENT DESCRIPTION Date 1st Am Gov't Obligations Money Mkt Fd 12/31/20 Average /Total Paying Agent or Uninvested Cash & Dils Total Investments and Cash with Fiscal Agent Non-ManaRed Investments Settlement Date INVESTMENT DESCRIPTION County Pool 12/31/20 I · Average/Total General Cash (Union Bank) Payroll Cash (Union Bank) Emergency Cash (Union Bank) Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash I . Part I Yield to I Days to % of Total Maturity Maturity Investment 0.01%) 11 100.00%) I I I I 1, I I I· I 0.01%) 11 100.00%1 Part II Yield to Days to % of Total Maturity Maturity Investment 0.88%1 1 I 100.00%1 I I: I 0.88%1 N/A I 100.00%) Part Ill Face Value $1,245,351.00 $1,245,351.00 Book Value $1,245,351.00 $1,245,351.00 $0.00 $1,245,351.00 Market Value $1,245,351.00 $1,245,351.00 Unrealized Gain(Loss) so.oo I so.oo 1 Face I Book I Market I Unrealized Value Value Value Gain(Loss) $62,545.oo J s62,s4s.oo I $63, 177.oo I $632.00 1 --~I I I I $62,545.oo I s62,s4s.oo 1 $63, 177.oo 1 $632.00 1 Book Value $1,835,524.00 $20,000.00 $10,000.00 $0.00 $20,000.00 $8,600.00 $1,894,124.00