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Item 6 - City's Investment Report as of March 31, 2021May 4, 2021, Item #6. c> AGENDA REPORT ///;:··-. ----~-_;::;:..--~-\ .;.,_ DATE: TO: FROM: CONTACT: SUBJECT: Summary: May 4, 2021 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ~ Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org City's Investment Report as of March 31, 2021 City of Poway CITY COUNCIL Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. For your information, attached is an investment portfolio report as of March 31, 2021. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b)(1) and the City's Investment Policy, the Finance Director (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of March 31, 2021, was $114,139,641. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 23,243,923 Deposits at the Local Agency Investment Fund (LAIF) 22,447,798 U.S. Treasury Notes 10,725,199 U.S. Instrumentalities 36,099,830 Corporate Notes 21,622,891 Fair Value of Investment Portfolio as of March 31, 2021 $114,139,641 1 of 30 May 4, 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 March 31, 2021, is estimated at 0.36% for LAIF, 0.28% for the CalTRUST short-term fund, and 0.52% 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 March 2021, the portfolio's purchase yield was 1.76 percent while 2-Year Treasury Notes were 0.16 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 $66,897,177; the fair value is $68,447,920 for an unrealized gain of $1,550,743 or 2.32% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non-managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at March 31, 2021, was $464,908. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $115,354 at March 31, 2021. The City's cash on hand at March 31, 2021, totaled $3,471,596. The March 31, 2021 balance of the City's Library Trust Fund was $259,410. Through the Fiscal Year 2020-21 period ending March 31, 2021, 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. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). 2 of 30 May 4, 2021, Item #6Fiscal Impact: The externally managed investment portfolio earned $145,523 interest during March 2021, as well as $121,070 interest during February 2021, and $135,642 during January 2021. Fees for investment services during this period totaled $8,600. Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at March 31, 2021 Reviewed/ Approved By: WendTaserman Assistant City Manager 3 of30 Reviewed By: Alan Fenstermacher City Attorney May 4, 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 March December 2020 2020 11,288,360 11,451,341 11,594,980 11,811,550 14,123,941 12,421,930 37,007,281 35,684,821 1.77% 0.57% 1 1 1 1 12,905,734 10,793,820 45,618,725 36,309,513 21,736,595 21,934,198 80,261,054 69,037,531 12,427,608 10,423,137 44,532,828 35,433,831 21,662,466 21,212,765 78,622,902 67,069,733 1,638,152 1,967,798 159,432 139,897 1.97% 1.82% 2.10 1.93 2.25 2.11 117,268,335 104,722,352 1.91% 1.40% 1.44 1.27 1.54 1.39 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. March 2021 11,449,885 11,794,038 22,447,798 45,691,721 0.38% 1 1 10,725,199 36,099,830 21,622,891 68,447,920 10,421,241 35,392,712 21,083,224 66,897,177 1,550,743 145,523 1.76% 1.84 2.01 114,139,641 1.21% 1.10 1.21 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 tha1 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 30 ATTACHMENT A May 4, 2021, Item #6City of Poway Monthly Investment Portfolio Report March 31, 2021 Separately Managed Investment Pools % Return LAIF $ 22,447,798 49% 0.36% CalTrust -Short $ 11,449,885 25% 0.28% CalTrust -Medium $ 11,794,038 26% 0.52% Total Internally Managed $ 45,691,721 40% Weighted Average Yield 0.38% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 10,725,199 16% 1.91% Instrumentality Securities $ 36,099,830 53% 1.75% Corporate Notes $ 21,622,891 32% 1.70% Total Externally Managed $ 68,447,920 60% Weighted Average Yield 1.76% Years Effective Average Duration -External 1.84 Weighted Average Final Maturity -External 2.01 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 30 22,447,798 20% 0.36% 11,449,885 10% 0.28% 11,794,038 10% 0.52% 10,725,199 9% 1.91% 36,099,830 32% 1.75% 21,622,891 19% 1.70% 114,139,641 1.21% Years 1.10 1.21 $ $ CalTrust -Short, 25% Corporate Notes 24% Instrumentality Securities 39% 116,626,820 114,139,641 ATTACHMENT B LAIF, 49% Treasury Instrumentality Securities, 53% CalTrust -Short CalTrust -12% Medium 13% Treasury 12% May 4, 2021, Item #6 May 4, 2021, Item #6..., 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 13 Securities purchased 17 Securities sold and matured 18 Detail of return and interest received 19 Transaction report 22 Additional information 23 May 4, 2021, Item #600 0 -ti w 0 FIXED INCOME MARKET REVIEW As of March 31, 2021 Chart 1: The Federal Reserve's economic forecasts continue to rise 8% 6% 3.9% 4% 2% 1.7% 0% -2% -1.8% -4% 7.4% Fed forecast: YE 2021 cumulative GDP Fed forecast: YE 2022 cum ulative GDP growth from YE 2019 level growth from YE 2019 level ■Jun-20 Sep-20 ■Dec-20 Mar-21 Source: Federal Reserve, March 31, 2021 . Chart 2: The Federal Reserve's unemployment forecasts continue to fall 7% I 6% 5% 4% 3% 2% 1% 0% 6.5% 4.5% Fed forecast: YE 2021 unemployment rate 5.5% Fed forecast: YE 2022 unemployment rate • Jun-20 ■ Sep-20 • Dec-20 Mar-21 Source: Federal Reserve, March 31, 2021 . CITY OF POWAY Economic Indicators and Monetary Policy At perhaps the most anticipated FOMC meeting since last spring, the Fed significantly revised its economic projections to reflect the $1.9bn stimulus package signed by President Biden and the accelerating pace of US COVID-19 vaccinations. After the US economy performed significantly better than feared last year, the Fed now forecasts GDP growth at 6.5% this year (from 4.2% previously), unemployment below 4% by the end of 2022 and perhaps most notably, core PCE at or above its 2% target over the next three years. The Fed's closely watched dot plot was unchanged, reflecting a median expectation of no policy rate hikes through 2023. The US continued to ramp up COVID-19 vaccinations, performing around ~3m per day. At the end of the month, close to 100 million American residents received at least one dose of a vaccine -close to 40% of the adult population. Economic restrictions continued to be scaled back as COVID cases, hospitalizations and mortalities declined. Business restrictions were even removed outright in Texas and Mississippi. Economic data was generally encouraging. The Conference Board's index of consumer confidence rose to 109.7 in March, the highest reading in one year. Retail sales declined in February, but was more than forecast at -3%, and was fully offset by large upward revisions to prior months, particularly January at 7.6% from 5.3%. The ISM services index fell in February to 55.3 from 58. 7, weaker than consensus expectations but still in expansionary territory. At the start of the month, the February jobs report was strong: nonfarm payrolls increased by an impressive 379,000 and the unemployment rate dropped to 6.2%. But labor market slack remains, and the economy is still far from maximum employment. Interest Rate Summary The Treasury yield curve continued to steepen over the month, with long-dated yields pushing higher. At the end of February, the 3-month US Treasury bill yielded 0.02%, the 6-month US Treasury bill yielded 0.04%, the 2-year US Treasury note yielded 0.16%, the 5-year us Treasury note yielded 0.94% and the 10-year US Treasury note yielded 1.74%. 3 May 4, 2021, Item #6\0 0 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2021 -March 31, 2021 : I Amortized Cost Basis Activity Summary 0 Opentn1 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) 133,441 .66 (247,822.33) 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 0.08 0.09 0.07 0.09 0.13 0.15 0.40 * Six month trailing 0.04 0.04 0.03 0.03 0.05 0.07 0.24 67,005,288.89 133,441.66 0.00 (247,822.33) 40,695.90 0.00 (37,283.47) 2,855.93 0.00 66,897,176.58 68,447,920.05 1,550,743.47 * One month 0.01 0.00 0.00 0.00 0.01 0.01 0.07 Detail of Amortized Cost Basis Return Interest Accretion Realized earned (amortization) gain (loss) Corporate Bonds 58,344.55 (22,322.63) 40,695.90 Government Agencies 69,525.97 (11,451.91) 0.00 Government Bonds 17,652.00 (653.00) 0.00 Total 145,522.52 (34,427.54) 40,695.90 summary of Amortized Cost Basis Return tor 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 76,717.82 58,074.06 16,999.00 151,790.88 Total portfolio 145,522.52 (34,427.54) 40,695.90 151,790.88 66,979,222.21 0.23 0.51 735 4 May 4, 2021, Item #6..a. 0 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2021 -March 31, 2021 ~ I Fair Value Basis Activity Summary o Opening balance 68,732,084.88 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 133,441 .66 (247,822.33) comparative Rates of Return {%} * Twelve * Six month trailing month trailing Fed Funds 0.08 0.04 Overnight Repo 0.09 0.04 ICE Bofa 3 Months UST-BILL 0.12 0.06 ICE Bofa 6m US Treas Bill 0.16 0.09 ICE Bofa 1 Yr US Treasury Note 0.17 0.12 ICE BofA US Treasury 1-3 0.24 0.00 ICE Bof A US Treasury 1-5 (0.09) (0.50) * rates reflected are cumulative 133,441 .66 0.00 (247,822.33) 0.00 0.00 0.00 (169,784.16) 68,447,920.05 * One month 0.01 0.00 0.01 0.02 0.02 0.02 (0.10) Detail of Fair Value Basis Return Interest Change in earned fair value Corporate Bonds 58,344.55 (88,928.72) Government Agencies 69,525.97 (63,664.04) Government Bonds 17,652.00 (17,191.40) Total 145,522.52 (169,784.16) 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 (30,584.17) 5,861.93 460.60 (24,261.64) Total portfolio 145,522.52 (169,784.16) (24,261.64) 69,012,690.92 (0.04) (0.11) 735 5 May 4, 2021, Item #6RECAP OF SECURITIES HELD As of March 31, 2021 ..a. ..a. 0 Historical .... w cost 0 Cash and Cash Equivalents (1,081,656.67) Corporate Bonds 21,326,897.00 Government Agencies 36,688,743.96 Government Bonds 10,433,632.28 Amortized Fair value Unrealized Weighted cost gain (loss) average final maturity (days) (1,081,656.67) (1,081,656.67) 0.00 1 21,083,223.40 21,622,891.25 539,667.85 963 36,474,368.77 37, 181,486.25 707,117.48 589 10,421,241.08 10,725,199.22 303,958.14 708 Portfolio diversification (%) ■ Cash and Cash Equivalents ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total Percent of portfolio (1.61) 31.66 54.46 15.49 (1 .61) 31 .66 54.46 15.49 100.00 CITY OF POWAY Weighted average effective duration (years) 0.00 2.32 1.50 1.89 6 May 4, 2021, Item #6MATURITY DISTRIBUTION OF SECURITIES HELD CITY OF POWAY As of March 31, 2021 ..a. N 0 """ w 0 Maturity Historic cost Percent --- Under 90 days 2,925,833.33 4.34 90 to 1 79 days 1,990,303.00 2.95 180 days to 1 year 9,922,889.64 14.73 1 to 2 years 19,080,422.90 28.32 2 to 3 years 24,925,731.07 37.00 3 to 4 years 8,522,436.63 12.65 4 to 5 years 0.00 0.00 Over 5 years 0.00 0.00 67,367,616.57 100.00 Maturity distribution 25.00 e 20.00 .§. ...., 15.00 U'I 0 u ~ 10.00 u ·.:::: 0 ...., U'I 5: 5.00 ~ ~ ~ # ~ ~ ~ ~ V V ~ ~ ~ ~ ~ ~ C!)~ '.'\C!) " '),,, n_,,, ~,, ~" ~,, 1,. '\. ,0 0 0 0 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ -0(;' ~ ~'l>,, 0 'b~ ....: 7 May 4, 2021, Item #6SECURITIES HELD CITY OF POWAY As of March 31, 2021 -11, w acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Cash and Cash Equivalents Cash and Cash Equivalents 0.000 (1,081,656.67) (1,081,656.67) (1,081,656.67) (1,081,656.67) 0.00 0.00 (1 .61) Total Cash and Cash Equivalents (1,081,656.67) (1,081,656.67) (1,081,656.67) (1,081,656.67) 0.00 0.00 (1.61) Corporate Bonds 89233P7F7 TOY OT A MOTOR CREDIT CORP 2.625% 1 0JAN2023 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,671.63 2,080,802.70 80,131.07 11,812.50 2.97 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,010,965.51 1,044,808.49 33,842.98 1,222.22 1.52 (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 1,007,811.71 1,041,045.29 33,233.58 12,041.67 1.51 01/11/2023 037833AK6 APPLE INC 2.4% 03MAY2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,004,401.30 1,044,656.51 40,255.21 9,866.67 1.50 166764BK5 CHEVRON CORP 2.566% 16MAY2023 (CALLABLE 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,533,543.03 1,564,509.80 30,966.77 14,433.75 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 1,953,795.23 2,018,824.08 65,028.85 20,873.61 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 1,030,777.74 1,070,217.52 39,439.78 4,634.72 1.56 14JUL23) 07/14/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,458,099.78 1,512,986.87 54,887.09 9,652.22 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 1,964,417.04 2,045,050.35 80,633.31 9,975.00 2.97 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,049,578.86 1,091,797.16 42,218.30 2,718.75 1.59 8 May 4, 2021, Item #6SECURITIES HELD CITY OF POWAY As of March 31, 2021 ~ ~ acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Corporate Bonds 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 3.550 03/05/2024 1,350,000.00 1,445,445.00 1,419,825.55 1,424,378.67 4,553.12 3,461.25 2.15 05MAR23) 03/05/2023 459200JY8 IBM CORP 3% 15MAY2024 3.000 05/15/2024 2,300,000.00 2,463,231 .00 2,462,221.62 2,465,971.68 3,750.06 26,066.67 3.66 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,008,846.96 1,048,106.99 39,260.03 6,266.67 1.50 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,178,267.44 2,169,735.14 (8,532.30) 25,926.00 3.28 05DEC23) 12/05/2023 - - ----Total Corporate Bonds 20,350,000.00 21,326,897.00 21,083,223.40 21,622,891.25 539,667.85 158,951.70 31.66 Government Agencies 3133EJJD2 FEDERAL FARM CREDIT BANK 2.54% 05APR2021 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,000,030.07 1,000,276.44 246.37 12,417.78 1.49 313379RB7 FEDERAL HOME LOAN BANK 1.875% 11JUN2021 1.875 06/11/2021 1,000,000.00 985,600.00 998,762.23 1,003,586.81 4,824.58 5,729.17 1.46 3135G0U35 FANNIE MAE 2.75% 22JUN2021 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,001,789.28 2,012,120.44 10,331.16 15,125.00 2.99 3133EKCB0 FEDERAL FARM CREDIT BANK 2.5% 01JUL2021 2.500 07/01/2021 1,000,000.00 999,030.00 999,895.54 1,006,245.70 6,350.16 6,250.00 1.48 3137EAEC9 FREDDIE MAC 1.125% 12AUG2021 1.125 08/12/2021 1,000,000.00 991,273.00 998,047.52 1,003,899.87 5,852.35 1,531 .25 1.47 3135G0Q89 FANNIE MAE 1.375% 07OCT2021 1.375 10/07/2021 1,900,000.00 1,890,631 .10 1,897,283.75 1,912,749.80 15,466.05 12,627.08 2.81 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 1.875 11/29/2021 1,000,000.00 990,090.00 997,545.61 1,011,913.79 14,368.18 6,354.17 1.47 9 May 4, 2021, Item #6SECURITIES HELD CITY OF POWAY As of March 31, 2021 _., u, ~Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Agencies 3135G0U92 FANNIE MAE 2.625% 11JAN2022 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,503,825.28 1,529,713.91 25,888.63 8,750.00 2.25 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,006,220.15 1,017,993.47 11,773.32 5,145.83 1.51 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,001,351 .83 2,040,335.88 38,984.05 2,500.00 2.97 3135G0V59 FANNIE MAE 2.25% 12APR2022 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,919,981.19 2,964,241.70 44,260.51 30,631 .25 4.37 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 1.930 10/18/2022 2,000,000.00 2,015,820.00 2,008,827.56 2,054,832.58 46,005.02 17,477.22 2.99 31331K3A6 FEDERAL FARM CREDIT BANK 2.71 % 13DEC2022 2.710 12/13/2022 1,000,000.00 1,028,921 .06 1,014,262.76 1,043,343.50 29,080.74 8,130.00 1.53 31331 KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,934,023.91 1,979,695.47 45,671.56 15,343.18 2.98 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,008,920.28 1,038,895.05 29,974.77 3,312.50 1.51 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,018,790.99 1,048,387.59 29,596.60 1,693.06 1.53 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,038,358.80 2,112,171 .58 73,812.78 15,583.33 3.07 3135G0U43 FANNIE MAE 2.875% 12SEP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,022,930.83 1,064,023.23 41 ,092.40 1,517.36 1.54 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,588.22 2,080,037.16 81,448.94 16,946.67 2.97 10 May 4, 2021, Item #6SECURITIES HELD CITY OF POWAY As of March 31, 2021 -°' g_cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Agencies 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 3.000 12/06/2023 1,000,000.00 1,071,740.00 1,071,740.00 1,070,961.42 (778.58) 9,916.67 1.59 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,009,001.78 1,051,537.75 42,535.97 7,062.50 1.51 3135G0V34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,017,653.13 1,062, 144.39 44,491 .26 3,888.89 1.53 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,998,714.63 1,996,064.66 (2,649.97) 50.00 2.97 (CALLABLE 13APR21) 3135G0V75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,005,381 .01 2,085,791.08 80,410.07 8,652.78 2.98 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 0FEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,002,442.42 990,522.98 (11,919.44) 708.33 1.49 (CALLABLE 1 0FEB22) 02/10/2022 Total Government Agencies 36, 150,000.00 36,688,743.96 36,474,368.77 37, 181,486.25 707,117.48 217,344.02 54.46 Government Bonds 912828F21 USA TREASURY 2.125% 30SEP2021 2.125 09/30/2021 1,000,000.00 991,015.63 998,262.01 1,010,351.56 12,089.55 0.00 1.47 9128285F3 USA TREASURY 2.875% 15OCT2021 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,503,302.55 1,522,734.38 19,431.83 19,785.37 2.25 912828XW5 USA TREASURY 1.75% 30JUN2022 1.750 06/30/2022 1,000,000.00 998,515.63 999,391 .85 1,020,351.56 20,959.71 4,350.83 1.48 912828L57 USA TREASURY 1.75% 30SEP2022 1.750 09/30/2022 1,000,000.00 999,417.41 999,731 .04 1,024, 179.69 24,448.65 0.00 1.48 912828201 USA TREASURY 1.375% 31 AUG2023 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,980,689.88 2,055,390.62 74,700.74 2,316.58 2.92 11 May 4, 2021, Item #6SECURITIES HELD CITY OF POWAY As of March 31, 2021 ...a. ..., acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Bonds 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,915,681 .52 1,993,441.41 77,759.89 13,421.36 2.86 912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,024, 182.23 2,098,750.00 74,567.77 16,685.08 3.02 ~ Total Government Bonds 10,400,000.00 10,433,632.28 10,421,241.08 10,725,199.22 303,958.14 56,559.22 15.49 12 May 4, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2021 ..a. 00 g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w 0 date rating rating shares cost hist cost value mkt value dur (yrs) Federal Farm Credit Banks Funding Corp 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.49 1,000,276.44 1.46 0.01 3133EKCBO FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.48 1,006,245.70 1.47 0.25 3133EASE4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 2.99 2,054,832.58 3.00 1.52 31331 K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.53 1,043,343.50 1.52 1.66 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.98 1,979,695.47 2.89 1.75 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.51 1,038,895.05 1.52 1.83 3133EJFKO FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.53 1,048,387.59 1.53 1.90 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.97 2,080,037.16 3.04 2.48 3133EJ2B4 FEDERAL FARM CREDIT 3.000 12/06/2023 AA+ Aaa 1,000,000.00 1,071,740.00 1.59 1,070,961.42 1.56 2.58 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.97 1,996,064.66 2.92 2.02 Issuer total 13,850,000.00 14,174,769.56 21.04 14,318,739.57 20.92 1.70 Federal National Mortgage Association 3135GOU35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.99 2,012,120.44 2.94 0.23 3135GOQ89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.81 1,912,749.80 2.79 0.52 3135GOU92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513, 185.00 2.25 1,529,713.91 2.23 0.78 3135GOV59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 4.37 2,964,241.70 4.33 1.01 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.54 1,064,023.23 1.55 2.38 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.53 1,062, 144.39 1.55 2.76 3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.98 2,085,791.08 3.05 3.17 Issuer total 12,300,000.00 12,439 I 722.40 18.47 12,630,784.55 18.45 1.39 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 1,010,351.56 1.48 0.50 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.25 1,522,734.38 2.22 0.54 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.48 1,020,351.56 1.49 1.23 13 May 4, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2021 ..a. \D 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 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 1,024,179.69 1.50 1.48 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.92 2,055,390.62 3.00 2.38 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.86 1,993,441.41 2.91 2.59 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 3.02 2,098,750.00 3.07 2.98 Issuer total 10,400,000.00 10,433,632.28 15.49 10,725,199.22 15.67 1.89 Federal Home Loan Banks 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.46 1,003,586.81 1.47 0.20 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.47 1,011,913.79 1.48 0.66 313378CRO FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.97 2,040,335.88 2.98 0.94 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.51 1,051,537.75 1.54 2.61 3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 02/10/2022 AA+ Aaa 1,000,000.00 1,002,860.00 1.49 990,522.98 1.45 2.60 Issuer total 6,000,000.00 5,997,150.00 8.90 6,097,897.21 8.91 1.33 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 1,003,899.87 1.47 0.37 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.51 1,017,993.47 1.49 0.78 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 3.07 2,112,171.58 3.09 2.15 Issuer total 4,000,000.00 4,077,102.00 6.05 4,134,064.92 6.04 1.38 International Business Machines Corp 459200JY8 IBM CORP 3% 3.000 05/15/2024 A A2 2,300,000.00 2,463,231.00 3.66 2,465,971.68 3.60 2.97 Issuer total 2,300,000.00 2,463,231.00 3.66 2,465,971.68 3.60 2.97 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 3.28 2,169,735.14 3.17 2.54 Issuer total 2,000,000.00 2,207,640.00 3.28 2,169,735.14 3.17 2.54 14 May 4, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2021 N 0 ~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 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 2,080,802.70 3.04 1.74 Issuer total 2,000,000.00 2,001,380.00 2.97 2,080,802.70 3.04 1.74 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 2.97 2,045,050.35 2.99 2.66 Issuer total 1,900,000.00 1,999,636.00 2.97 2,045,050.35 2.99 2.66 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 2,018,824.08 2.95 2.03 Issuer total 1,900,000.00 1,995,436.00 2.96 2,018,824.08 2.95 2.03 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 1,564,509.80 2.29 1.91 Issuer total 1,500,000.00 1,552,215.00 2.30 1,564,509.80 2.29 1.91 Citibank NA 17325FAS7 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 2.20 1,512,986.87 2.21 2.62 Issuer total 1,400,000.00 1 ,484,224.00 2.20 1,512,986.87 2.21 2.62 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 2.15 1,424,378.67 2.08 1.87 Issuer total 1,350,000.00 1,445,445.00 2.15 1,424,378.67 2.08 1.87 Cisco Systems Inc/Delaware 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.59 1,091,797.16 1.60 2.80 Issuer total 1,000,000.00 1,070,370.00 1.59 1,091,797.16 1.60 2.80 15 May 4, 2021, Item #6GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of March 31, 2021 N ...a. 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 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 1.56 1,070,217.52 1.56 2.21 Issuer total 1,000,000.00 1,050,350.00 1.56 1,070,217.52 1.56 2.21 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.50 1,048,106.99 1.53 3.12 Issuer total 1,000,000.00 1,012,410.00 1.50 1,048,106.99 1.53 3.12 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.52 1,044,808.49 1.53 1.76 Issuer total 1,000,000.00 1,021 ,370.00 1.52 1,044,808.49 1.53 1.76 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.50 1,044,656.51 1.53 2.03 Issuer total 1,000,000.00 1,007,920.00 1.50 1,044,656.51 1.53 2.03 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 1.51 1,041,045.29 1.52 1.74 Issuer total 1,000,000.00 1,015,270.00 1.51 1,041,045.29 1.52 1.74 Cash and Cash Equivalents PENDING TRADE 0.000 0.00 (1,081,656.67) 0.00 (1,081,656.67) (1.58) 0.00 Issuer total 0.00 (1,081,656.67) 0.00 (1,081,656.67) (1.58) 0.00 16 May 4, 2021, Item #6SECURITIES PURCHASED CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N N acusip Description I Broker Trade date Coupon Maturity/ Par value or Unit cost Principal Accrued w Settle date Call date shares cost interest 0 Corporate Bonds 459200JY8 IBM CORP 3% 15MAY2024 03/24/2021 3.000 05/15/2024 2,300,000.00 107.10 (2,463,231.00) (25,108.33) MORGAN STANLEY AND CO., LLC 03/26/2021 -Total Corporate Bonds 2,300,000.00 (2,463,231.00) (25,108.33) Government Agencies 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 03/31/2021 3.000 12/06/2023 1,000,000.00 107.17 (1,071,740.00) (9,916.67) JPMORGAN CHASE BANK, N.A. 04/05/2021 Total Government Agencies 1,000,000.00 17 May 4, 2021, Item #6SECURITIES SOLD AND MATURED CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N w acusip Description / Broker Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued w Settle date Call date shares at sale or sale or gain interest 0 maturity maturity (loss) sold Corporate Bonds 68389XBB0 ORACLE CORP 2.5% 15MA Y2022 03/24/2021 2.500 05/15/2022 (1,500,000.00) 1,542,555.00 1,521,998.24 102.00 1,530,045.00 8,046.76 13,645.83 (CALLABLE 15MAR22) 03/26/2021 03/15/2022 J.P. MORGAN SECURITIES LLC 68389XBL8 ORACLE CORP 2.4% 15SEP2023 03/24/2021 2.400 09/15/2023 (1,000,000.00) 1,008,750.00 1,005,000.86 103.77 1,037,650.00 32,649.14 733.33 (CALLABLE 15JUL23) 03/26/2021 07/15/2023 MERRILL LYNCH, PIERCE, FENNER&SMITH Total (Corporate Bonds) (2,500,000.00) 2,551,305.00 2,526,999.10 2,567,695.00 40,695.90 14,379.16 18 May 4, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N ~ g.cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27 JUN2024 (227.43) 0.00 (7,830.64) 2,200.00 0.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 (67.68) 2,200.00 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (3,014.06) 0.00 (6,91 1.08) 4,393.12 23,962.50 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 15JAN23) (510.03) 0.00 (111.08) 2,520.83 13,750.00 166764BK5 CHEVRON CORP 2.566% 16MA Y2023 (CALLABLE 16MAR23) (1,425.34) 0.00 (2,890.60) 3,528.25 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1,411 .17) 0.00 (3,433.22) 3,322.92 18,125.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1,773.14) 0.00 (8,426.20) 4,684.16 0.00 459200JY8 IBM CORP 3% 15MAY2024 (1,009.38) 0.00 2,740.68 958.34 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541 .99) 0.00 (18,014.40) 7,375.50 0.00 68389XBL8 ORACLE CORP 2.4% 15SEP2023 (CALLABLE 15JUL23) (144.43) 32,649.14 (10,669.47) 1,866.66 12,000.00 68389XBB0 ORACLE CORP 2.5% 15MAY2022 (CALLABLE 15MAR22) (1 ,504.15) 8,046.76 (4,285.1 4) 2,916.66 0.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MA Y23) (2,126.30) 0.00 (9,490.25) 6,095.83 0.00 89233P7F7 TOY OT A MOTOR CREDIT CORP 2.625% 1 0JAN2023 (31.49) 0.00 (1,958.66) 4,812.50 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1 ,942.22) 0.00 (1 0,579.03) 5,878.12 0.00 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 11 JAN23) (365.60) 0.00 (1 ,098.72) 2,337.50 0.00 94988J5R4 WELLS FARGO BANK NA 3.55% 14AUG2023 (CALLABLE 14JUL23) (1 ,120.55) 0.00 (5,903.23) 3,254.16 0.00 ---~- Total Corporate Bonds (22,322.63) 40,695.90 (88,928.72) 58,344.55 67,837.50 Government Agencies 3135G0Q89 FANNIE MAE 1.375% 07OCT2021 435.77 0.00 (1,977.04) 2,394.79 0.00 3135G0V75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 (3,541 .44) 3,208.34 0.00 19 May 4, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N u, acusip Description Accretion Realized gain Change in fair Interest earned Interest received w 0 (amortization) (loss) value Government Agencies 3135G0V59 FANNIE MAE 2.25% 12APR2022 (1,611.39) 0.00 (5,596.83) 5,981 .25 0.00 3135G0V34 FANNIE MAE 2.5% 05FEB2024 (516.67) 0.00 (873.92) 2,291.67 0.00 3135G0U92 FANNIE MAE 2.625% 11JAN2022 (393.38) 0.00 (2,836 .68) 3,609.37 0.00 3135G0U35 FANNIE MAE 2.75% 22JUN2021 (654.61) 0.00 (4,229.06) 5,041 .67 0.00 3135G0U43 FANNIE MAE 2.875% 12SEP2023 (779.96) 0.00 (1,108.35) 2,635.42 14,375.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 13APR21) 35.77 0.00 (494.92) 550.00 3,000.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 46.19 0.00 (2,875.98) 3,410.00 0.00 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 (474.60) 0.00 (2,993.02) 3,538.33 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.61) 0.00 (1,677 .66) 2,062.50 0.00 3133EKCB0 FEDERAL FARM CREDIT BANK 2.5% 01JUL2021 34.44 0.00 (1 ,920.01) 2,291 .67 0.00 3133EJJD2 FEDERAL FARM CREDIT BANK 2.54% 05APR2021 (180.41) 0.00 {2,078.60) 2,328.34 0.00 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.63) 0.00 (1 ,928.57) 2,429.17 13,250.00 31331K3A6 FEDERAL FARM CREDIT BANK 2.71% 13DEC2022 (698.01) 0.00 (2,188.23) 2,484.17 0.00 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 0.00 0.00 (778.58) 0.00 0.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,890.00) 0.00 (6,078.79) 6,935.96 0.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 0FEB2025 (CALLABLE 1 0FEB22) (236.37) 0.00 (5,246.93) 458.33 0.00 313379RB7 FEDERAL HOME LOAN BANK 1.875% 11JUN2021 523.00 0.00 (1 ,462.44) 1,718.75 0.00 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 308.09 0.00 (1,435.14) 1,718.75 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 (278.98) 0.00 (1,442.05) 2,062.50 0.00 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 (118.93) 0.00 (4,249.00) 4,125.00 22,500.00 20 May 4, 2021, Item #6DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N °' g_cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Agencies 3137EAEC9 FREDDIE MAC 1.125% 12AUG2021 443.75 0.00 (626.59) 1,031 .25 0.00 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 (659.38) 0.00 (1,724.49) 2,177.08 0.00 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 (1,440.25) 0.00 (4,299.72) 5,041.66 0.00 ~-~-~~ Total Government Agencies (11 ,451.91) 0.00 (63,664.04) 69,525.97 53,125.00 Government Bonds 912828201 USA TREASURY 1.375% 31AUG2023 677.93 0.00 (1,484.38) 2,316.58 13,750.00 912828XW5 USA TREASURY 1.75% 30JUN2022 41 .35 0.00 (1 ,250.00) 1,498.62 0.00 912828L57 USA TREASURY 1.75% 30SEP2022 15.22 0.00 (1,132.81) 1,490.38 8,750.00 912828X70 USA TREASURY 2% 30APR2024 (665.76) 0.00 (5,312.50) 3,425.41 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (499.10) 0.00 (2,894.52) 3,438.53 0.00 912828F21 USA TREASURY 2.125% 30SEP2021 294.42 0.00 (1,718.75) 1,809.75 10,625.00 9128285F3 USA TREASURY 2.875% 15OCT2021 (517.06) 0.00 (3,398.44) 3,672.73 0.00 --~-Total Government Bonds (653.00) 0.00 (17,191.40) 17,652.00 33,125.00 21 May 4, 2021, Item #6TRANSACTION REPORT CITY OF POWAY For the period March 1, 2021 -March 31, 2021 N ..... arrade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wSettle date shares gain(loss} 0 02/28/2021 9128282D1 Income Government Bonds USA TREASURY 1.375% 08/31/2023 2,000,000.00 0.00 0.00 13,750.00 13,750.00 02/28/2021 03/04/2021 17275RAN2 Income Corporate Bonds CISCO SYSTEMS INC 3.625% 03/04/2024 1,000,000.00 0.00 0.00 18,125.00 18,125.00 03/04/2021 03/05/2021 06051 GHF9 Income Corporate Bonds BANK OF AMERICA CORP 3.55% 03/05/2024 1,350,000.00 0.00 0.00 23,962.50 23,962.50 03/05/2021 03/08/2021 3133EJFKO Income Government Agencies FEDERAL FARM CREDIT BANK 03/08/2023 1,000,000.00 0.00 0.00 13,250.00 13,250.00 03/08/2021 03/11/2021 313378CRO Income Government Agencies FEDERAL HOME LOAN BANK 03/11/2022 2,000,000.00 0.00 0.00 22,500.00 22,500.00 03/11/2021 03/12/2021 3135GOU43 Income Government Agencies FANNIE MAE 2.875% 09/12/2023 1,000,000.00 0.00 0.00 14,375.00 14,375.00 03/12/2021 03/15/2021 084670BR8 Income Corporate Bonds BERKSHIRE HATHAWAY INC 03/15/2023 1,000,000.00 0.00 0.00 13,750.00 13,750.00 03/15/2021 03/15/2021 68389XBL8 Income Corporate Bonds ORACLE CORP 2.4% 15SEP2023 09/15/2023 1,000,000.00 0.00 0.00 12,000.00 12,000.00 03/15/2021 03/24/2021 459200JY8 Bought Corporate Bonds IBM CORP 3% 15MAY2024 05/15/2024 2,300,000.00 0.00 (2,463,231.00) (25,108.33) (2,488,339.33) 03/26/2021 03/24/2021 68389XBBO Sold Corporate Bonds ORACLE CORP 2.5% 05/15/2022 (1,500,000.00) 8,046.76 1,530,045.00 13,645.83 1,543,690.83 03/26/2021 03/24/2021 68389XBL8 Sold Corporate Bonds ORACLE CORP 2.4% 15SEP2023 09/15/2023 (1,000,000.00) 32,649.14 1,037,650.00 733.33 1,038,383.33 03/26/2021 03/28/2021 3133EMBE1 Income Government Agencies FEDERAL FARM CREDIT BANK 03/28/2024 2,000,000.00 0.00 0.00 3,000.00 3,000.00 03/28/2021 03/31/2021 3133EJ2B4 Bought Government Agencies FEDERAL FARM CREDIT BANK 12/06/2023 1,000,000.00 0.00 (1,071,740.00) (9,916.67) (1,081,656.67) 04/05/2021 03/31/2021 912828F21 Income Government Bonds USA TREASURY 2.125% 09/30/2021 1,000,000.00 0.00 0.00 10,625.00 10,625.00 03/31/2021 03/31/2021 912828L57 Income Government Bonds USA TREASURY 1. 75% 09/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 03/31/2021 22 May 4, 2021, Item #6ADDITIONAL INFORMATION CITY OF POWAY As of March 31, 2021 N OC>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 0 back the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes :;in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for Oyour 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 BofA 6 Month UST-Bill index measures the performance ofTreasury 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 BofA 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 BofA 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. 23 May 4, 2021, Item #6N \0 ADDITIONAL INFORMATION As of March 31, 2021 CITY OF POWAY aInsight 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 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. © 2021 Insight Investment. All rights reserved. 24 May 4, 2021, Item #6City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash ~ I I March 2021 0 .... ~ I Part I Investments & Cash with Fiscal Agents Settlement Yield to Days to ·%of Total 1 Face I: Book I Market I I Unrealized INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value Gain(Loss) 1st Am Gov't Obligations Money Mkt F d 03/31/21 I 1 0.01%1 1 I , 100.00%1 $464,908.15 ) , $464,908.15 I $464,908.15 I so.oo I ] p I : I :' I . I I I l = = 1 r= =~= ~ ~ ~ ~I: -~ -~--~ -- - ~, I ·~---~ - - -=1 ·1 I I -F I!" I I I Average/Total I' 0.01%1 1 I 100.00%1 $464,908.15 I , $464,908.15 I $464,908.15 -Paying Agent or Uninvested Cash & DITs ii $0.00 -· ------~==== == ==1 ~· $464,908.15 Total Investments and Cash with Fiscal Agent I I. > ~ ~ Part II > n Non-Mana ed Investments :::c ~I. -I - 1 · 3:: Settlement Yield to Days to % of Total Face Book Market Unrealized m INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value Gain(Loss) z ~ County Pool 03/31/21 I: 0.83%1 1 I 100.00%1 $115,353.68 1 = s 115,353. 68 1 s116,092.oo I $738.32 1 C I L I. I I I I Average/Total I: 0.83%1 N/A I I 100.00%1 $115,353.68 1 $115,353.68 1 s116,092.oo 1 $738.32 1 Part Ill General. Pavroll & Pettv Cash Book Value -= I General Cash (Union Bank) -i $3,412,996.00 - Payroll Cash (Union Bank) I = = =1 -$20,000.00 - Emergency Cash (Union Bank) ----= ·1 -I $10,000.00 - = -I Grant Cash (Union Bank) -$0.00 - Flexible Benefits Cash (Union Bank) - - ---$20,000.00 --I = = I Petty Cash ----I $8,600.00 - Total Cash ----l $3,471,596.00 -I = -. --