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Item 4 - City's Investment Report as of September 30, 2021November 16, 2021, Item #4AGENDA REPORT CityofPoway DATE: TO: FROM: CONTACT: SUBJECT: Summary: November 16, 2021 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ,,4'.:> Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org City's Investment Report as of September 30, 2021 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 September 30, 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 September 30, 2021, was $112,630,459. It consisted of the following: Investment Portfolio Total Cash $81,833 Deposits at CalTRUST 23,275,474 Deposits at the Local Agency Investment Fund (LAIF) 22,195,881 U. S. Treasury Notes 12,826,608 U. S. Instrumentalities 32,891,155 Corporate Notes 21,359,508 Fair Value of Investment Portfolio as of September 30, 2021 $112,630,459 1 of 30 November 16, 2021, Item #4It is the City's practice to keep funds (including those identified to pay for Capital Improvement Projects) invested and earning interest until they are needed. In addition to changing market conditions, reductions in the fair value of the Investment Portfolio can also be reflective of payments for large capital projects. The attached portfolio report (Attachment B) and investment report (Attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, including the General Fund, Water Fund, Wastewater Fund and others -except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending September 30, 2021, is estimated at 0.21 % for LAIF, 0.14% for the CalTRUST short-term fund, and 0.30% for the CalTRUST medium-term fund. 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 $66,089,824; the fair value is $67,159,104 for an unrealized gain of $1,069,280 or 1.62% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non-managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at September 30, 2021, was $464,890. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $11,250 at September 30, 2021. The City's cash on hand at September 30, 2021, totaled $211,531. The September 30, 2021 balance of the City's Library Trust Fund was $258,936. Through the Fiscal Year 2021-22 period ending September 30, 2021, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2021-22, 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). Fiscal Impact: The externally managed investment portfolio earned $125,208 interest during September 2021, as well as $129,927 interest during August 2021, and $133,504 during July 2021. Fees for investment services during this period totaled $8,423. 2 of 30 November 16, 2021, Item #4Public 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 September 30, 2021 Reviewed/ Approved By: Assistant City Manager 3 of30 Reviewed By: Alan Fenstermacher City Attorney November 16, 2021, Item #44 of 30City 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: Cash U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Fair Value Amortized Cost Value: Cash 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 September 2020 11,434,570 11,798,998 21,774,271 45,007,839 0.79% 1 1 10,841,160 38,487,404 21,765,412 71,093,976 10,425,075 37,468,630 21,066,088 68,959,793 2,134,183 135,086 1.94% 1.96 2.07 116,101,815 1.49% 1.20 1.27 June 2021 11,456,558 11,805,007 34,973,287 58,234,852 0.27% 11,712,717 35,038,689 21,515,934 68,267,340 11,465,215 34,472,188 21,011,252 66,948,655 1,318,685 129,421 1.64% 1.74 1.90 126,502,192 1.01% 0.94 1.03 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. September 2021 11,461,249 11,814,225 22,195,881 45,471,355 0.22% 1 81,833 12,826,608 32,891,155 21,359,508 67,159,104 81,833 12,622,861 32,427,513 20,957,617 66,089,824 1,069,280 125,208 1.55% 1.61 1.78 112,630,459 1.01% 0.96 1.06 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. ATTACHMENT A November 16, 2021, Item #4City of Poway Monthly Investment Portfolio Report September 30, 2021 Separately Managed Investment Pools % Return LAIF $ 22,195,881 49% 0.21% CalTrust -Short $ 11,461,249 25% 0.14% CalTrust -Medium $ 11,814,225 26% 0.30% Total Internally Managed $ 45,471,355 40% Weighted Average Yield 0.22% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Cash $ 81,833 0% 0.00% Treasury Securities $ 12,826,608 19% 1.51% Instrumentality Securities $ 32,891,155 49% 1.52% Corporate Notes $ 21,359,508 32% 1.62% Total Externally Managed $ 67,159,104 60% Weighted Average Yield 1.55% Years Effective Average Duration -External 1.61 Weighted Average Final Maturity -External 1.78 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ CalTrust -Medium $ Cash $ Treasury Securities $ Instrumentality Securities $ Corporate Notes $ Total Portfolio Assets $ Weighted Average Yield Effective Average Duration -Total Weighted Average Maturity -Total Portfolio Change 1st Quarter Beginning Balance 1st Quarter Ending Balance Assets values shown at Market 5 of30 22,195,881 20% 0.21% 11,461,249 10% 0.14% 11,814,225 10% 0.30% 81,833 0% 0.00% 12,826,608 11% 1.51% 32,891,155 29% 1.52% 21,359,508 19% 1.62% 112,630,459 1.01% Years 0.96 1.06 $ $ CalTrust -Short, 25% Instrumentality Securities 36% 126,502,192 112,630,459 ATTACHMENT B LAIF, 49% Treasury Call rust-Short CalTrust-13% Medium 13% Cash 0% 14% November 16, 2021, Item #46of30 ATTACHMENT C November 16, 2021, Item #4-.J Contents 0 -ti 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 November 16, 2021, Item #400 0 ..... w 0 FIXED INCOME MARKET REVIEW As of September 30, 2021 Chart 1: Inflation high once again but still limited to 'flexible' categories 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 CX) ...-c ro -, CX) CX) CX) ...-..--..-- I ~ --'-ro ro ::, ~ 2 -, CX) CX) CJ) CJ) ..--..--..--..-- ci. > c I Q) 0 ro ro (/) z -, ~ Source: FRED, September 30, 2021 CJ) CJ) ..--...- ~ _!_ ro ::, ~-, ■CPI (J)(J)O O OOoo...-..--..--..-----..--N N N N N N N N N N I I I 1 I I ( I I I I I a..> c ro >-:3 a..> c ro >-:3 ~ ~ ~ ~ ~ -, ~ ~ ~ ~ ~ -, Core CPI Chart 2: Payrolls heavily disappoint but wage growth outperforms 19 5 19 18.5 ,._ 18 ::J 2 17.5 :g_ 17 ~16.5 16 15.5 15 Jul-17 Jul-18 Jul-19 Jul-20 --Average t10ur1y earnings -leisure and hospitality Source: Bloomberg, September 30, 2021 Jul-21 CITY OF POWAY Economic Indicators and Monetary Policy The Federal Reserve (Fed) opened the door to announcing a taper in November, stating "moderation in the pace of asset purchase may soon be warranted". The Fed raised its inflation forecast from 3.4% to 4.2% for 2021 and from 2.1 % to 2.2% for 2022, and above its 2% target through 2024. Nonetheless, the committee's 'dot plot' still reflected a majority expectation of no rate hikes until 2023. Headline CPI came in at 5.3% and core CPI came at 4%, beginning to descend from their recent peak. For the first time since the start of the year, monthly CPI and core CPI came in at levels in line with pre-pandemic norms of 0.3% and 0.1 %. Areas with 'flexible' and COVID-sensitive pricing, such as used cars, airfare and hotels began to moderate, while 'sticky' sectors such as rents and medical services remained muted. Payrolls materially missed expectations, rising by just 235,000 versus consensus at 733,000. There was a net 2-month upward revision of 134,000. However, the unemployment rate continued to fall, reaching 5.2% from 5.4%. Wage growth was also strong, with average hourly earnings up 0.6% month-on-month and 4.3% year-on-year. While the leisure and hospitality sector was the main source of weak hiring, it was also the main source of strong wage growth. At the end of the month, Congress voted to avert a shutdown with a spending bill until 3 December. However, politicians remained in deadlock around the proposed $3.5trn reconciliation package and debt ceiling extension, with uncertainty in negotiations set to continue. The delta COVID-19 variant's spread appeared to peak in the US, although death rates remained high given the lag between cases and fatalities. Interest Rate Summary Yields generally fell at longer maturities. At the end of July, the 3-month US Treasury bill yielded 0.04%, the 6-month US Treasury bill yielded 0.05%, the 2- year US Treasury note yielded 0.28%, the 5-year US Treasury note yielded 0.97% and the 10-year US Treasury note yielded 1.49%. 3 November 16, 2021, Item #4\0 0 .... w 0 ACTIVITY AND PERFORMANCE SUMMARY For the period September 1, 2021 -September 30, 2021 Amortized Cost Basis Activity Summary Opening 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 Closing balance Ending fair value Unrealized gain (loss) 130,457.52 0.00 CQmparative Bates Qf Beturn (%) * 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 0.08 0.06 0.04 0.04 0.08 0.17 0.65 0.04 0.02 0.01 0.01 O.o3 0.10 0.41 65,967,976.36 130,457.52 0.00 0.00 33,453.08 0.00 (43,985.18) 1,922.11 0.00 66,089,823.89 67,159,103.80 1,069,279.91 * One month 0.01 0.00 0.00 0.00 0.01 0.02 0.07 Detail Qf AmQrtized CQst Basis Beturn Interest Accretion Realized earned (amortization) gain (loss) Cash and Cash Equivalents 0.90 0.00 0.00 Corporate Bonds 51 ,193.46 (24,294.80) 33,453.08 Government Agencies 54,370.15 (15,186.68) 0.00 Government Bonds 19,643.13 (2,581.59) 0.00 Total 125,207.64 (42,063.07) 33,453.08 summary Qf AmQrtized CQst Basis Beturn for the PeriQd 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 0.90 60,351 .74 39,183.47 17,061.54 116,597.65 Total portfolio 125,207.64 (42,063.07) 33,453.08 116,597.65 66,032,722.26 0.18 1.38 649 4 November 16, 2021, Item #4..a. 0 ACTIVITY AND PERFORMANCE SUMMARY For the period September 1, 2021 -September 30, 2021 ~ I Fair Value Basis Activity Summary o Opening balance 67,206,535.43 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 130,457.52 0.00 Comparative Rates of Return(%) Fed Funds Overnight Repo ICE Bofa 3 Months UST-BILL ICE Bof a 6m US Treas Bill ICE Bofa 1 Yr US Treasury Note ICE Bof A US Treasury 1-3 ICE BofA US Treasury 1-5 * rates reflected are cumulative *Twelve month trailing 0.08 0.06 0.07 0.13 0.17 0.03 (0.40) * Six month trailing 0.04 0.02 0.01 0.03 0.04 0.02 0.10 130,457.52 0.00 0.00 0.00 0.00 0.00 (177,889.15) 67,159,103.80 * One month 0.01 0.00 0.01 0.01 (0.01) (0.10) (0.29) Detail of Eair ~alue Basis Return Interest Change in earned fair value Cash and Cash Equivalents 0.90 0.00 Corporate Bonds 51,193.46 (67,532.47) Government Agencies 54,370.15 (76,642.21) Government Bonds 19,643.13 (33,714.47) Total 125,207.64 (177,889.15) Summary of Eair 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 0.90 (16,339.01) (22,272.06) (14,071.34) (52,681.51) Total portfolio 125,207.64 (177,889.15) (52,681 .51) 67,582,560.04 (0.08) 0.04 649 5 November 16, 2021, Item #4~ ~ 0 ..... w 0 RECAP OF SECURITIES HELD As of September 30, 2021 Cash and Cash Equivalents Corporate Bonds Government Agencies Government Bonds .l.11( .. Historical cost 81,832.43 Amortized cost 81,832.43 21,319,597.00 20,957,617.16 32,730,155.96 32,427,513.29 12,653,580.72 12,622,861.01 Fair value 81,832.43 21,359,508.42 32,891,154.96 12,826,607.99 Unrealized gain (loss) 0.00 401,891.26 463,641.67 203,746.98 Weighted Percent average of final portfolio maturity (days) 790 531 720 0.12 31.92 49.01 18.95 Portfolio diversification (%) ■ Cash and Cash Equivalents ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total 0.12 31 .92 49.01 18.95 100.00 Weighted average effective duration (years) 0.00 1.83 1.34 1.93 CITY OF POWAY 6 November 16, 2021, Item #4...a. N 0 -ti w 0 MATURITY DISTRIBUTION OF SECURITIES HELD As of September 30, 2021 Maturity Under 90 days 90 to 179 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years Historic cost Percent 4,478,432.44 6.71 4,535,274.00 6.79 3,941,861.93 5.90 24,258,866.35 36.32 25,356,907.32 37.97 4,213,824.07 6.31 0.00 0.00 0.00 0.00 66,785,166.11 100.00 E .5. ... VI 0 u ~ u ·c: 0 ~ :f 30.00 Maturity distribution ~ ~ ~ # ~ ~ ~ ~ V V ~ _fl, _,e, _,e, _,e, (l, ~ ~ ~ ~ ~~ ~~ ~~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ..:::fv.. cy::,~ ~1f. ' ~ ~ b< d <o<::) "' CITY OF POWAY 7 November 16, 2021, Item #4SECURITIES HELD CITY OF POWAY As of September 30, 2021 ..a. w ~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 Cash and Cash Equivalents Cash and Cash Equivalents 0.000 81,832.43 81,832.43 81,832.43 81 ,832.43 0.00 0.00 0.12 Total Cash and Cash Equivalents 81,832.43 81 ,832.43 81,832.43 81,832.43 0.00 0.00 0.12 Corporate Bonds 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 0JAN2023 2.625 01/10/2023 2,000,000.00 2,001 ,380.00 2,000,482.74 2,058,587.22 58,104.48 11 ,666.67 3.00 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2.750 03/15/2023 1,000,000.00 1,021 ,370.00 1,007,905.37 1,031 ,173.26 23,267.89 1,145.83 1.53 (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 1,005,618.09 1,029,004.19 23,386.10 11,970.83 1.52 01/11/2023 037833AK6 APPLE INC 2.4% 03MAY2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,003,349.20 1,032,377.37 29,028.17 9,800.00 1.51 166764BK5 CHEVRON CORP 2.566% 16MAY2023 (CALLABLE 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,524,990.98 1,547,257.80 22,266.82 14,326.83 2.32 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 1,941,037.47 1,995,645.15 54,607.68 20,688.89 2.99 05/09/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,447,460.96 1,495,096.47 47,635.51 9,510.28 2.22 12/23/2023 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,952,763.70 2,019,627.97 66,864.27 9,796.88 2.99 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,041,111.89 1,075,270.00 34,158.11 2,618.06 1.60 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 3.550 03/05/2024 2,350,000.00 2,488,495.00 2,444,132.73 2,449,741 .73 5,609.00 5,793.40 3.73 05MAR23) 03/05/2023 8 November 16, 2021, Item #4SECURITIES HELD CITY OF POWAY As of September 30, 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 Corporate Bonds 459200JY8 IBM CORP 3% 15MA Y2024 3.000 05/15/2024 2,300,000.00 2,463,231.00 2,436,266.16 2,439,798.35 3,532.19 25,875.00 3.69 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,007,482.39 1,043,768.01 36,285.62 6,200.00 1.52 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 {CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,145,015.48 2,142,160.90 (2,854.58) 25,702.50 3.31 05DEC23) 12/05/2023 Total Corporate Bonds 20,350,000.00 21,319,597.00 20,957,617.16 21,359,508.42 401,891.26 155,095.17 31.92 Government Agencies 3135GOQ89 FNMA FANNIE MAE 1.375% DUE 10-07-2021 REG 1.375 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,899,898.32 1,900,422.62 524.30 12,554.51 2.83 10-07-2021 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 1.875 11/29/2021 1,000,000.00 990,090.00 999,394.10 1,002,925.61 3,531.51 6,302.08 1.48 3135GOU92 FANNIE MAE 2.625% 11JAN2022 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,501,370.05 1,510,362.27 8,992.22 8,640.63 2.27 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,002,263.87 1,006,540.00 4,276.13 5,079.86 1.52 313378CRO FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,000,638.26 2,019,206.64 18,568.38 2,375.00 3.00 3135GOV59 FANNIE MAE 2.25% 12APR2022 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,910,312.87 2,933,094.16 22,781.29 30,450.00 4.41 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 180CT2022 1.930 10/18/2022 2,000,000.00 2,015,820.00 2,005,979.96 2,038,251 .50 32,271.54 17,370.00 3.02 31331 K3A6 FEDERAL FARM CREDIT BANK 2.71% 13DEC2022 2.710 12/13/2022 1,000,000.00 1,028,921.06 1,010,074.67 1,030,815.51 20,740.84 8,054.72 1.54 9 November 16, 2021, Item #4SECURITIES HELD CITY OF POWAY As of September 30, 2021 ..a. 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 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,910,683.94 1,944,123.69 33,439.75 15,133.00 3.01 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,006,516.61 1,Q28,006.38 21,489.77 3,250.00 1.52 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,013,945.17 1,035,198.03 21,252.86 1,619.44 1.55 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,029,717.26 2,085,885.82 56,168.56 15,430.56 3.10 3135G0U43 FANNIE MAE 2.875% 12SEP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,018,251.07 1,050,708.56 32,457.49 1,437.50 1.56 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,865.34 2,061,912.32 63,046.98 16,843.33 2.99 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 3.000 12/06/2023 1,000,000.00 1,071,740.00 1,058,311 .93 1,056,992.63 (1,319.30) 9,500.00 1.60 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,007,327.90 1,041 ,118.18 33,790.28 7,000.00 1.52 3135G0V34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,750,000.00 1,820,547.50 1,802,357.69 1,837,996.91 35,639.22 6,684.03 2.73 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 0.250 02/26/2024 1,250,000.00 1,246,747.50 1,247,096.22 1,246,768.35 (327.87) 295.14 1.87 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,998,929.25 1,993,936.50 (4,992.75) 33.33 2.99 (CALLABLE 08NOV21) 3135G0V75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,004,554.57 2,070,094.88 65,540.31 8,555.56 3.01 10 November 16, 2021, Item #4SECURITIES HELD CITY OF POWAY As of September 30, 2021 ... O'\ 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 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 0FEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,001 ,024.24 996,794.40 (4,229.84) 694.44 1.50 (CALLABLE 1 0FEB22) 02/10/2022 Total Government Agencies 32,150,000.00 32,730,155.96 32,427,513.29 32,891,154.96 463,641.67 177,303.13 49.01 Government Bonds 9128285F3 UNITED STATES TREAS NTS 2.875% DUE 10-15-2021 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,500,250.19 1,501,615.83 1,365.64 19,795.08 2.27 912828XW5 USA TREASURY 1.75% 30JUN2022 1. 750 06/30/2022 1,000,000.00 998,515.63 999,635.91 1,012,421.88 12,785.97 4,375.00 1.50 912828L57 USA TREASURY 1.75% 30SEP2022 1.750 09/30/2022 1,000,000.00 999,417.41 999,820.85 1,016,640.62 16,819.77 0.00 1.50 9128282D1 USA TREASURY 1 .375% 31 AUG2023 1 .375 08/31/2023 2,000,000.00 1,967,109.38 1,984,691.87 2,042,031.24 57,339.37 2,279.01 2.95 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,912,735.19 1,973,773.43 61,038.24 13,458.33 2.88 912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,020,252.08 2,081,015.62 60,763.54 16,630.44 3.05 912828YH7 USA TREASURY 1.5% 30SEP2024 1.500 09/30/2024 1,000,000.00 1,032,304.69 1,030,895.24 1,029,257.81 (1,637.43) 0.00 1.55 912828YM6 USA TREASURY 1.5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1,131 ,987.02 1,132,312.50 325.48 6,860.05 1.70 11 November 16, 2021, Item #4...a. -..J SECURITIES HELD As of September 30, 2021 2_ Cusip Description w 0 Government Bonds 912828YY0 USA TREASURY 1.75% 31 DEC2024 Total Government Bonds Coupon 1.750 Maturity/ Par value or Historical cost Call date shares 12/31/2024 1,000,000.00 1,046,643.98 12,500,000.00 12,653,580.72 CITY OF POWAY Amortized cost Fair value Unrealized Total % gain accrued Port (loss) interest cost 1,042,592.66 1,037,539.06 (5,053.60) 4,375.00 1.57 12,622,861.01 12,826,607.99 203,746.98 67,772.91 18.95 12 November 16, 2021, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of September 30, 2021 ...a. 00 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Federal Farm Credit Banks Funding Corp 3133EASE4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 3.02 2,038,251.50 3.03 1.04 31331 K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.54 1,030,815.51 1.53 1.18 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 3.01 1,944, 123.69 2.89 1.27 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.52 1,028,006.38 1.53 1.34 3133EJFK0 FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.55 1,035, 198.03 1.54 1.42 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.99 2,061,912.32 3.07 2.00 3133EJ2B4 FEDERAL FARM CREDIT 3.000 12/06/2023 AA+ Aaa 1,000,000.00 1,071,740.00 1.60 1,056,992.63 1.57 2.11 3133EMRZ7 FEDERAL FARM CREDIT 0.250 02/26/2024 AA+ Aaa 1,250,000.00 1,246,747.50 1.87 1,246,768.35 1.86 2.40 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.99 1,993,936.50 2.97 1.81 Issuer total 13,100,000.00 13,418,097.06 20.09 13,436,004.91 20.01 1.61 United States Treasury Note/Bond 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.27 1,501,615.83 2.24 0.04 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.50 1,012,421.88 1.51 0.74 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.50 1,016,640.62 1.51 1.00 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.95 2,042,031.24 3.04 1.89 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.88 1,973,773.43 2.94 2.11 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 3.05 2,081,015.62 3.10 2.51 912828YH7 USA TREASURY 1.5% 1.500 09/30/2024 AA+ Aaa 1,000,000.00 1,032,304.69 1.55 1,029,257.81 1.53 2.94 912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1, 100,000.00 1,132,015.40 1.70 1,132,312.50 1.69 3.01 912828YY0 USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000.00 1,046,643.98 1.57 1,037,539.06 1.54 3.17 Issuer total 12,500,000.00 12,653,580.72 18.95 12,826,607.99 19.10 1.93 Federal National Mortgage Association 3135G0Q89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1 , 890,631 . 1 0 2.83 1,900,422.62 2.83 0.02 3135G0U92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 2.27 1,510,362.27 2.25 0.28 13 November 16, 2021, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of September 30, 2021 ...a. \D g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) 0 Federal National Mortgage Association 3135G0V59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 4.41 2,933,094.16 4.37 0.53 3135G0U43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.56 1,050,708.56 1.56 1.91 3135G0V34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,750,000.00 1,820,547.50 2.73 1,837,996.91 2.74 2.29 3135G0V75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 3.01 2,070,094.88 3.08 2.69 Issuer total 11,050,000.00 11,214,679.90 16.79 11,302,679.40 16.83 1.21 Federal Home Loan Banks 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.48 1,002,925.61 1.49 0.16 313378CR0 FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 3.00 2,019,206.64 3.01 0.44 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.52 1,041,118.18 1.55 2.13 3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 02/10/2022 AA+ Aaa 1,000,000.00 1,002,860.00 1.50 996,794.40 1.48 1.68 Issuer total 5,000,000.00 5,011 ,550.00 7.50 5,060,044.83 7.53 0.97 Federal Home Loan Mortgage Corp 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.52 1,006,540.00 1.50 0.29 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 3.10 2,085,885.82 3.11 1.68 Issuer total 3,000,000.00 3,085,829.00 4.62 3,092,425.82 4.60 1.22 Bank of America Corp 06051 GHF9 BANK OF AMERICA CORP 3.550 03/05/2024 03/05/2023 A-A2 2,350,000.00 2,488,495.00 3.73 2,449,741.73 3.65 1.40 Issuer total 2,350,000.00 2,488,495.00 3.73 2,449,741.73 3.65 1.40 International Business Machines Corp 459200JY8 IBM CORP 3% 3.000 05/15/2024 A-A2 2,300,000.00 2,463,231.00 3.69 2,439,798.35 3.63 2.51 Issuer total 2,300,000.00 2,463,231.00 3.69 2,439,798.35 3.63 2.51 14 November 16, 2021, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of September 30, 2021 N 0 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating 0 rating shares cost hist cost value mkt value dur (yrs) 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 3.31 2,142,160.90 3.19 2.08 Issuer total 2,000,000.00 2,207,640.00 3.31 2,142,160.90 3.19 2.08 Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 3.00 2,058,587.22 3.07 1.26 Issuer total 2,000,000.00 2,001 ,380.00 3.00 2,058,587.22 3.07 1.26 US Bancorp 91159HHV5 US BANCORP 3.375% 3.375 02/05/2024 01/05/2024 A+ A2 1,900,000.00 1,999,636.00 2.99 2,019,627.97 3.01 2.20 Issuer total 1,900,000.00 1,999,636.00 2.99 2,019,627.97 3.01 2.20 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 2.99 1,995,645.15 2.97 1.56 Issuer total 1,900,000.00 1,995,436.00 2.99 1,995,645.15 2.97 1.56 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 2.32 1,547,257.80 2.30 1.43 Issuer total 1,500,000.00 1,552,215.00 2.32 1,547,257.80 2.30 1.43 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 2.22 1,495,096.47 2.23 2.15 Issuer total 1,400,000.00 1,484,224.00 2.22 1,495,096.47 2.23 2.15 Cisco Systems Inc/Delaware 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.60 1,075,270.00 1.60 2.34 Issuer total 1,000,000.00 1,070,370.00 1.60 1,075,270.00 1.60 2.34 15 November 16, 2021, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of September 30, 2021 N ..a. g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating 0 rating shares cost hist cost value mkt value dur (yrs) American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.52 1,043,768.01 1.55 2.65 Issuer total 1,000,000.00 1 ,012,410.00 1.52 1,043,768.01 1.55 2.65 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.51 1,032,377.37 1.54 1.55 Issuer total 1,000,000.00 1,007,920.00 1.51 1,032,377.37 1.54 1.55 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.53 1,031,173.26 1.54 1.28 Issuer total 1,000,000.00 1,021 ,370.00 1.53 1,031,173.26 1.54 1.28 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 1.52 1,029,004.19 1.53 1.26 Issuer total 1,000,000.00 1,015,270.00 1.52 1,029,004.19 1.53 1.26 Cash and Cash Equivalents INVESTED CASH 0.000 81,832.43 81,832.43 0.00 81,832.43 0.12 0.00 Issuer total 81,832.43 81,832.43 0.00 81,832.43 0.12 0.00 16 November 16, 2021, Item #4SECURITIES PURCHASED CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N N g.cusip Description / Broker Trade date Coupon Maturity/ Par value or Unit cost Principal Accrued w Settle date Call date shares cost interest 0 Corporate Bonds 06051GHF9 BANK OF AMERICA CORP 3.55% 09/23/2021 3.550 03/05/2024 1,000,000.00 104.31 (1,043,050.00) (2,169.44) MERRILL LYNCH, PIERCE, 09/27/2021 03/05/2023 --------------------------------~ Total Corporate Bonds 1,000,000.00 (1,043,050.00) (2,169.44) Government Bonds 912828YM6 USA TREASURY 1.5% 31 OCT2024 09/29/2021 1.500 10/31/2024 1,100,000.00 102.91 (1 ,132,015.40) (6,860.05) RBC CAPITAL MARKETS, LLC 09/30/2021 -------Total Government Bonds 1,100,000.00 (1 ,132,015.40) (6,860.05) 17 November 16, 2021, Item #4SECURITIES SOLD AND MATURED CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N w ~Cusip 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 94988J5R4 WELLS FARGO BANK NA 3.55% 09/21/2021 3.550 (1,000,000.00) 1,050,350.00 1,024,408.72 0.00 1,057,861.80 33,453.08 0.00 14AUG2023 CALLABLE 09/21/2021 07/14/2023 RV ------------------------------ Total (Corporate Bonds) (1,000,000.00) 1,050,350.00 1,024,408.72 1,057,861.80 33,453.08 0.00 Government Bonds 912828F21 UTD ST ATES TREAS 2.125% DUE 09/30/2021 2.125 (1,000,000.00) 991,015.63 1,000,000.00 0.00 1,000,000.00 0.00 0.00 09-30-2021 09/30/2021 Total (Government Bonds) (1 ,000,000.00) 991,015.63 1,000,000.00 1,000,000.00 0.00 0.00 -----------~---~----~-----@liii 18 November 16, 2021, Item #4DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N .i::i,. acusip Description Accretion Realized gain Change in fair Interest earned Interest received w 0 (amortization) (loss) value Cash Cash and Cash Equivalents 0.00 0.00 0.00 0.90 0.90 ------ Total Cash 0.00 0.00 0.00 0.90 0.90 Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 (227.43) 0.00 (5,271 .97) 1,933.33 0.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 (3,292.63) 1,933.33 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (3,672.56) 0.00 (3,082.14) 4,156.46 23,962.50 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 15JAN23) (510.02) 0.00 (2,956.74) 2,215.27 13,750.00 166764BK5 CHEVRON CORP 2.566% 16MAY2023 (CALLABLE 16MAR23) (1,425.34) 0.00 (4,937.13) 3,100.58 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1 ,411 .16) 0.00 (4,042.60) 2,920.14 18,125.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1,773.14) 0.00 (5,682.88) 4,116.39 0.00 459200JY8 IBM CORP 3% 15MA Y2024 (4,325.91) 0.00 (8,392.42) 5,558.33 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541.99) 0.00 (5,752.82) 6,481 .50 0.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) (2,126.30) 0.00 (6,734.64) 5,356.95 0.00 89233P7F7 TOY OT A MOTOR CREDIT CORP 2.625% 1 0JAN2023 (31.48) 0.00 (4,970.64) 4,229.17 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1 ,942.23) 0.00 (6,846.58) 5,165.63 0.00 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 11 JAN23) (365 .61) 0.00 (3,161.08) 2,054.16 0.00 94988J5R4 WELLS FARGO BANK NA 3.55% 14AUG2023 CALLABLE (766.28) 33,453.08 (2,408.20) 1,972.22 3,648.61 ----------------~ Total Corporate Bonds (24,294.80) 33,453.08 (67,532.47) 51 ,193.46 59,486.11 Government Agencies 3135G0V75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 (6,669.20) 2,819.45 0.00 19 November 16, 2021, Item #4DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N u, g_cusip 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 (5,566.1 8) 5,256.25 0.00 3135G0V34 FANNIE MAE 2.5% 0SFEB2024 (1,858.85) 0.00 (6,119.46) 3,524.31 0.00 3135G0U92 FANNIE MAE 2.625% 11 JAN2022 (420.51) 0.00 (3,536.30) 3,171 .88 0.00 3135G0U43 FANNIE MAE 2.875% 125EP2023 (779.96) 0.00 (2,926.45) 2,315.97 14,375.00 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 100.59 0.00 (1,699.68) 251 .74 0.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 08NOV21) 35.77 0.00 (2,1 44.38) 483.33 3,000.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 46.19 0.00 (5,567.38) 2,996.66 0.00 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 (474.60) 0.00 (3,679.94) 3,109.44 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.61) 0.00 (2,320.53) 1,812.50 0.00 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.64) 0.00 (2,719.56) 2,134.72 13,250.00 31331K3A6 FEDERAL FARM CREDIT BANK 2.71 % 13DEC2022 (698.02) 0.00 (2,587.70) 2,183.05 0.00 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 (2,299.84) 0.00 (3,967.56) 2,416.67 0.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,889.99) 0.00 (7,044.89) 6,095.24 0.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 0FEB2025 (CALLABLE 1 0FEB22) (236.37) 0.00 (1,779.03) 402.77 0.00 3130AABG2 FEDERAL HOME LOAN BANK 1.875% 29NOV2021 308.08 0.00 (1,513.26) 1,510.41 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 (278.98) 0.00 (4,022.70) 1,812.50 0.00 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 (118.93) 0.00 (3,739.74) 3,625.00 22,500.00 3135G0Q89 FNMA FANNIE MAE 1.375% DUE 10-07-2021 REG 1.375 10-07-2021 435.76 0.00 (2,080.99) 2,104.51 0.00 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 (659.38) 0.00 (1 ,660.00) 1,913.19 0.00 20 November 16, 2021, Item #4DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N CJ\ acusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Agencies 3137EAEN5 FREDDIE MAC 2. 75% 19JUN2023 (1,440.26) 0.00 (5,297.28) 4,430.56 0.00 -----------------· ---Total Government Agencies (15, 186.68) 0.00 (76,642.21) 54,370.15 53,125.00 Government Bonds 9128285F3 UNITED STATES TREAS NTS 2.875% DUE 10-15-2021 (500.39) 0.00 (3,482.63) 3,534.83 0.00 9128282D1 USA TREASURY 1.375% 31 AUG2023 656.07 0.00 (4,218.76) 2,279.01 0.00 912828YH7 USA TREASURY 1 .5% 30SEP2024 (845.67) 0.00 (3,906.25) 1,229.51 7,500.00 912828YM6 USA TREASURY 1 .5% 31 OCT2024 (28.38) 0.00 297.1 0 0.00 0.00 912828XW5 USA TREASURY 1.75% 30JUN2022 40.01 0.00 (1 ,523.43) 1,426.63 0.00 912828L57 USA TREASURY 1.75% 30SEP2022 14.72 0.00 (1,054.69) 1,434.43 8,750.00 912828YY0 USA TREASURY 1.75% 31 DEC2024 (1,075.57) 0.00 (4,726.56) 1,426.63 0.00 912828X70 USA TREASURY 2% 30APR2024 (644.29) 0.00 (7,812.50) 3,260.87 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (483.01) 0.00 (5,640.64) 3,309.42 0.00 912828F21 UTD STATES TREAS 2.125% DUE09-30-2021 284.92 0.00 (1,646.11) 1,741.80 10,625.00 ------~ ---- - - Total Government Bonds (2,581.59) 0.00 (33,714.47) 19,643.13 26,875.00 21 November 16, 2021, Item #4TRANSACTION REPORT CITY OF POWAY For the period September 1, 2021 -September 30, 2021 N .... g.Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wsettle date shares gain(loss) 0 09/04/2021 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 09/04/2021 09/05/2021 06051 GH F9 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 09/05/2021 09/08/2021 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 09/08/2021 09/11/2021 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 09/11/2021 09/12/2021 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 09/12/2021 09/15/2021 084670BR8 Income Corporate Bonds BERKSHIRE HATHAWAY INC 03/15/2023 1,000,000.00 0.00 0.00 13,750.00 13,750.00 09/15/2021 09/21/2021 94988J5R4 Income Corporate Bonds WELLS FARGO BANK NA 3.55% 08/14/2023 1,000,000.00 0.00 0.00 3,648.61 3,648.61 09/21/2021 09/21/2021 94988J5R4 Capital Change Corporate Bonds WELLS FARGO BANK NA 3.55% 08/14/2023 (1,000,000.00) 33,453.08 1,057,861.80 0.00 1,057,861.80 09/21/2021 09/23/2021 06051 GHF9 Bought Corporate Bonds BANK OF AMERICA CORP 3.55% 03/05/2024 1,000,000.00 0.00 (1,043,050.00) (2,169.44) (1,045,219.44) 09/27/2021 09/28/2021 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 09/28/2021 09/29/2021 912828YM6 Bought Government Bonds USA TREASURY 1.5% 10/31/2024 1,100,000.00 0.00 (1,132,015.40) (6,860.05) (1,138,875.45) 09/30/2021 09/30/2021 912828F21 Income Government Bonds UTD STATES TREAS 2.125% DUE 09/30/2021 1,000,000.00 0.00 0.00 10,625.00 10,625.00 09/30/2021 09/30/2021 912828F21 Capital Change Government Bonds UTD STATES TREAS 2.125% DUE 09/30/2021 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 09/30/2021 09/30/2021 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 09/30/2021 09/30/2021 912828YH7 Income Government Bonds USA TREASURY 1.5% 09/30/2024 1,000,000.00 0.00 0.00 7,500.00 7,500.00 09/30/2021 09/30/2021 Income Cash and Cash Equivalents Cash 0.00 0.00 0.00 0.90 0.90 22 November 16, 2021, Item #4ADDITIONAL INFORMATION CITY OF POWAY As of September 30, 2021 N OOPast 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 Bof A 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 November 16, 2021, Item #4N \D ADDITIONAL INFORMATION As of September 30, 2021 CITY OF POWAY ~Insight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. w Olnsight is a group of wholly owned subsidiaries ofThe Bank of New York Mellon Corporation. BNY Mellon is the corporate brand ofThe Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures 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 November 16, 2021, Item #4City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash w I I September 2021 0 0 ..... I Investments & Cash with Fiscal Agents Part I w 0 Settlement Yield to Days to % of Total I Face I: Book I: Market Unrealized INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value I Gain(Loss) 1st Am Gov't Obligations Money Mkt Fd 09/30/21 J 11 _0.01%1 1 I , 100.00%) $464,890.00 I ~ $464,890.00 1 $464,890.00 1 so.oo J Jr I; Ir I. 1-I I I Average/Total 0.01%1 11 100.00%1 $464,890.00 I $464,890.00 I $464,890.00 I so.oo 1 • =-= Paying Agent or Uninvested Cash & DITs -·--$0.00 ~ -----·-- ------~~-~ ===== =~==~==~,. $464,890.00 Total Investments and Cash with Fiscal Agent --I I I -~ --•--,--~ Part II ~ )> Non-Mana ed Investments n :::c Settlement Yield to Days to % of Total F=~ ~I[ C Book Market Unrealized Face I s:: INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value I Gain(Loss) m z 09/30/21 I: . 0.73%1 1I 100.00%1 -s11,2so.oo I -s11,2so.oo f =· s 11,298.oo I $48.oo I ~ County Pool C I·--~ I I ~ I·=~ I·= I --I , -~ -I Average/Total F 0.73%1 NIA 1 · 100.00%1 s11,2so.oo l ~ s11,2so.oo 1 s11,298.oo I $48.oo I Part Ill Book Value General Cash (Union Bank) I $152,981.00 Payroll Cash (Union Bank) ... - $20,000.00 I -----~-------- ---1 r=~ $10,000.00 Emergency Cash (Union Bank) ~ -I -~ Grant Cash (Union Bank) $0.00 ~----------p · $20,000.00 Flexible Benefits Cash (Union Bank) Petty Cash r~= $8,550.00 - -----------,. $211,531.00 Total Cash II