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Item 3 - City's Investmentstment Report as of December 31, 2021February 1, 2022, Item #3 ,->-. r AGENDA REPORT CityofPoway /-'I--{ . ~~-~ ·-DATE: TO: FROM: CONTACT: SUBJECT: Summary: February 1, 2022 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ~ Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org City's Investment Report as of December 31, 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 December 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 Director of Finance (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of December 31, 2021, was $123,998,906. It consisted of the following: Investment Portfolio Total Cash $213,218 Deposits at CalTRUST 23,187,170 Deposits at the Local Agency Investment Fund (LAIF) 33,912,075 U. 5. Treasury Notes 15,853,027 U. 5. Instrumentalities 29,733,396 Corporate Notes 21,100,020 Fair Value of Investment Portfolio as of December 31, 2021 $123,998,906 1 of 27 February 1, 2022, Item #3 It 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 December 31, 2021, is estimated at 0.21 % for LAIF, 0.16% for the CalTRUST short-term fund, and 0.41 % 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 $66,365,376; the fair value is $66,899,661 for an unrealized gain of $534,285 or 0.81 % of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non-managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at December 31, 2021, was $1,251,675. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $52,969 at December 31, 2021. The City's cash on hand at December 31, 2021 totaled $(309,458). The cash on hand represents the City's adjusted book balance, taking into consideration deposits in transit and uncashed checks. The adjusted book balance is used for reporting purposes only, the actual bank balance was a positive amount. The December 31, 2021 balance of the City's Library Trust Fund was $258,913. Through the Fiscal Year 2021-22 period ending December 31, 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 $132,480 interest during December 2021, as well as $122,151 interest during November 2021, and $131,044 during October 2021. Fees for investment services during this period totaled $8,369. 2 of27 February 1, 2022, Item #3 Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at December 31, 2021 Reviewed/ Approved By: Wendy Kaserman Assistant City Manager 3 of27 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~ City Manager February 1, 2022, Item #3 City of Poway Investment Statistics Separately Managed Investment Pools Fair Value: CalTRUST Short-Term Deposits CalTRUST Medium-Term Deposits Deposits at the Local Agency Investment Fund (LAIF) Total Fair Value Weighted Average Yield Effective Average Duration in days Weighted Average Maturity in days Externally Managed Investment Pools Fair Value: 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 December 2020 11,451,341 11,811,550 12,421,930 35,684,821 0.57% 1 1 10,793,820 36,309,513 21,934,198 69,037,531 10,423,137 35,433,831 21,212,765 67,069,733 1,967,798 139,897 1.82% 1.93 2.11 104,722,352 1.40% 1.27 1.39 September 2021 11,461,249 11,814,225 22,195,881 45,471,355 0.22% 1 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 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. December 2021 33,912,075 11,442,789 11,744,381 57,099,245 0.24% 1 213,218 15,853,027 29,733,396 21,100,020 66,899,661 213,218 15,789,778 29,480,781 20,881,599 66,365,376 534,285 132,480 1.43% 1.53 1.67 123,998,906 0.88% 0.83 0.90 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. 4of27 ATTACHMENT A February 1, 2022, Item #3 City of Poway Monthly Investment Portfolio Report December 31, 2021 Separately Managed Investment Pools % Return LAIF $ 33,912,075 59% 0.21% CalTrust -Short $ 11,442,789 20% 0.16% CalTrust -Medium $ 11,744,381 21% 0.41% Total Internally Managed $ 57,099,245 46% Weighted Average Yield 0.24% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Cash $ 213,218 0% 0.01% Treasury Securities $ 15,853,027 24% 1.09% Instrumentality Securities $ 29,733,396 44% 1.48% Corporate Notes $ 21,100,020 32% 1.62% Total Externally Managed $ 66,899,661 54% Weighted Average Yield 1.43% Years Effective Average Duration -External 1.53 Weighted Average Final Maturity -External 1.67 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 2nd Quarter Beginning Balance 2nd Quarter Ending Balance Assets values shown at Market 5 of27 33,912,075 27% 0.21% 11,442,789 9% 0.16% 11,744,381 9% 0.41% 213,218 0% 0.00% 15,853,027 13% 1.09% 29,733,396 24% 1.48% 21,100,020 17% 1.62% 123,998,906 0.88% Years 0.83 0.90 $ $ CalTrust -CalTrust -Short, 20% Securities 33% 112,630,459 123,998,906 ATTACHMENT B Treasury Securities, 24% Instrumentality Securities, 44% CalTrust -Short CalTrust -13% Medium 13% Cash 0% February 1, 2022, Item #3 ATTACHMENT C February 1, 2022, Item #3 ...... Contents 0 .... N ...... 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 12 Detail of return and interest received 16 Transaction report 19 Additional information 20 February 1, 2022, Item #3 00 0 .... N ..... FIXED INCOME MARKET REVIEW As of December 31, 2021 Chart 1: The Fed's most significant recent upward policy rate forecast revision 2 5 ~ "O C ~ 2 ::0 a., >- ii, ~ 1 5 0 :;:;; 0 <l) 0 a.. a., ~ _g O 5 0 Q VJ ~ 0 lJ.. 2021 ., 2022 ., ., ., ., 2023 ., ., ., , ., Dec 2020 and t,larch 2021 l,1eetings - - -June 2021 f.1eetin - -• September 2021 l.1eeting ---Decentier 2021 t,leeting Source: Bloomberg, December 31, 2021 Chart 2: Unemployment rate continues to descend 16 14 12 0 8 6 4 2 0 2016 2017 2018 2019 2020 --Unemployment rate (%) Source: Bloomberg, December 31, 2021 ., ., 2024 2021 CITY OF POWAY Economic Indicators and Monetary Policy The Federal Reserve (Fed) doubled its pace of 'tapering' to a rate of $30bn per month. This puts the Fed on course to cease expanding its balance sheet in March 2022. It revised its dot plot to reflects a median expectation of three hikes in 2022 (Chart 1 ). November's CPI report came in at 6.8% for headline inflation (the highest since 1982, but modestly lower than market fears of 7%+) with core inflation reaching 4.9% (the highest since 1991 ). Energy prices were a key factor, rising 33% pa. Regarding 'sticky' inflation categories, rents ran at ~0.4% in November, pushing owners' equivalent rent to 3.5% pa and medical prices showed a small but notable 2.1 % pa rise. The US economy added 210,000 jobs in November, less than the 550,000 expected. However, the unemployment rate fell unexpectedly to 4.2% from 4.6%. The participation rate increased to 61.8% from 61.6%. Wage data was close to expectations with average hourly earnings up 4.8% pa. Leisure and hospitality wages continue to advance faster than other sectors -up 12.35% pa. The JOLTS report was further indicative of a tight labor market. Job openings rose 4.1 % to 11 m, close to July's record high. The number of layoffs declined 2.5% to 1.361 m, close to a record low. On the political front, President Joe Biden failed to secure Democratic Senator Joe Manchin's approval for the 'American Families Plan', the last component of the $1.75trn 'Build Back Better' fiscal program, forcing Congress to return to the drawing board. In response to the global spread of the more transmissible but potentially less severe Omicron Covid-19 variant, a number of countries enacted precautionary restrictions around the holiday period, although such measures were relatively modest in the US. Risk assets enjoyed a strong end to the year. Interest Rate Summary Yields rose modestly across the curve. At the end of December, the 3-month US Treasury bill yielded 0.06%, the 6-month US Treasury bill yielded 0.19%, the 2-year US Treasury note yielded 0.74%, the 5-year US Treasury note yielded 1.27% and the 10- year US Treasury note yielded 1 .51 %. February 1, 2022, Item #3 \0 0 ACTIVITY AND PERFO RM ANCE SUMMARY For the period December 1, 2021 -December 31, 2021 ;::; I Amortized Cost Basis Activity Summary .... Opening balance Income received Total receipts Total dlsbunements lnterportfolio transfers Total lnterportfollo transfen Realized gain (loss) Change in accruals from security movement Total amortization expense Total 01D/MKT acaetlon Income Return of capital Closing balance Ending fair value Unrealized gain (loss) 171,812.74 0.00 Comparative Rates of Return {%} Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Yea.r US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note * rates reflected are cumulative *Twelve month trailing 0.08 0.04 0.03 0.04 0.10 0.27 0.86 * Six month trailing 0.04 0.02 ·0.02 0.02 O.Q7 0.19 0.50 66,241,461 .33 171,812.74 0.00 0.00 0.00 0.00 (49,177.62) 1,279.09 0.00 66,365,375.54 66,899,661.18 534,285.64 * One month 0.01 0.00 0.00 0.01 0.03 0.06 0.10 Detail of Amortized Cost Basis Return Interest Accretion Realized earned (amortization) gain {loss) Cash and Cash Equivalents 1,532.74 0.00 0.00 Corporate Bonds 55,223.20 (25,339.40) 0.00 Government Agencies 54,255.61 (15,754.98) 0.00 Government Bonds 21,468.05 (6,804.15) 0.00 Total 132,479.60 (47,898.53) 0.00 Summary of Amortized Cost Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return (%) YTD return(%) Weighted average final maturity in days CITY OF POWAY Total income 1,532.74 29,883.80 38,500.63 14,663.90 84,581.07 Total portfolio 132,479.60 (47,898.53) 0.00 84,581.07 66,318,893.49 0.13 1.76 608 4 February 1, 2022, Item #3 ...a. 0 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2021 -December 31, 2021 ~ I Fair Value Basis Activity Summary -.J Opening balance 66,892,030.40 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 171,812.74 0.00 CQmJJarative Rates Qf Return {%} *Twelve * Six month trailing month trailing Fed Funds 0.08 0.04 Overnight Repo 0.04 0.02 ICE Bofa 3 Months UST-BILL 0.05 0.02 ICE Bofa 6m US Treas Bill 0.09 0.03 ICE Bofa 1 Yr US Treasury Note (0.07) (0.16) ICE BofA US Treasury 1-3 (0.55) (0.47) ICE Bof A US Treasury 1-5 (1 .10) (0.69) * rates reflected are cumulative 171,812.74 0.00 0.00 0.00 0.00 0.00 (164,181 .96) 66,899,661.18 * One month 0.01 0.00 0.01 0.01 (0.11) (0.25) (0.28) Detail Qf Fair Value Basis Return Interest Change in earned fair value Cash and Cash Equivalents 1,532.74 0.00 Corporate Bonds 55,223.20 (42,310.80) Government Agencies 54,255.61 (67,414.12) Government Bonds 21,468.05 (54,457.04) Total 132,479.60 (164,181 .96) Summary of Fair Value Basis Return for the PeriQd Interest earned Change in fair value Total income on portfolio Average daily total value* Period return (%) YTD return (%) Weighted average final maturity in days * Total value equals market value and accrued interest CITY OF POWAY Total income 1,532.74 12,912.40 (13,158.51) (32,988.99) (31,702.36) Total portfolio 132,479.60 (164,181 .96) (31,702.36) 67,250,111 .53 (0.05) (0.39) 608 5 February 1, 2022, Item #3 RECAP OF SECURITIES HELD As of December 31 , 2021 ..a. ..a. 0 Historical .... N cost -.J Cash and Cash Equivalents 213,217.87 Corporate Bonds 21,319,597.00 Government Agencies 29,849,434.86 Government Bonds 15,820, 182.07 Amortized Fair value Unrealized Weighted cost gain (loss) average final maturity (days) 213,217.87 213,217.87 0.00 1 20,881,598.93 21,100,020.46 218,421.53 698 29,480,780.41 29,733,395.53 252,615.12 488 15,789,778.33 15,853,027.32 63,248.99 720 Portfolio diversification (%) ■ Cash and Cash Equivalents ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total Percent of portfolio 0.32 31.72 44.42 23.54 0.32 31 .72 44.42 23.54 100.00 CITY OF POWAY Weighted average effective duration (years) 0.00 1.59 1.28 1.94 6 February 1, 2022, Item #3 ...a. N 0 .... N ..... MATURITY DISTRIBUTION OF SECURITIES HELD As of December 31, 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 35.00 30.00 E .s 25.00 +-' VI 20.00 0 u ~ 15.00 u ·;:: 0 10.00 +-' VI 5: Historic cost Percent 4,748,491.87 7.07 2,943,346.30 4.38 5,042,674.10 7.50 32,708,434.12 48.67 19,709,981.43 29.33 2,049,503.98 3.05 0.00 0.00 0.00 0.00 67,202,431.80 100.00 Maturity distribution ~ # ~ # ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ,o o'1, o'"':J b--(:, ~(:, ~ ~ ~ ~ ~ ~ ~ ~ v~ ~<;:) ~"lf o q,<:::> " CITY OF POWAY 7 February 1, 2022, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2021 ..a. w acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port ..... (loss) interest cost Cash and Cash Equivalents Cash and Cash Equivalents 0.000 213,217.87 213,217.87 213,217.87 213,217.87 0.00 0.00 0.32 -----Total cash and Cash Equivalents 213,217.87 213,217.87 213,217.87 213,217.87 0.00 0.00 0.32 Corporate Bonds 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 0JAN2023 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,388.29 2,040,712.60 40,324.31 24,937.50 2.98 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,006,375.30 1,021,102.23 14,726.93 8,097.22 1.52 {CALLABLE 15JAN23) 01/15/2023 931142DH3 WALMART INC 2.55% 11 APR2023 {CALLABLE 11 JAN23) 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,004,521 .28 1,022,025.19 17,503.91 5,666.67 1.51 01/11/2023 037833AK6 APPLE INC 2.4% 03MA Y2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,002,823.14 1,023,929.54 21 I 106.40 3,866.67 1.50 166764BK5 CHEVRON CORP 2.566% 16MAY2023 {CALLABLE 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,520,714.96 1,532,629.07 11,914.11 4,811 .25 2.31 16MAR23) 03/16/2023 69353RFL7 PNC BANK NA 3.5% 08JUN2023 {CALLABLE 09MAY23) 3.500 06/08/2023 1,900,000.00 1 I 995,436.00 1,934,658.59 1,971,454.02 36,795.43 4,248.61 2.97 05/09/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 {CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,442,141 .55 1,472,854.05 30,712.50 22,427.22 2.21 12/23/2023 91159HHV5 US BANCORP 3.375% 05FEB2024 {CALLABLE 05JAN24) 3.375 02/05/2024 1 I 900,000.00 1 I 999,636.00 1,946,937.04 1,992,007.35 45,070.31 26,006.25 2.98 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,036,878.40 1,061 ,060.14 24,181.74 11,781 .25 1.59 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 {CALLABLE 3.550 03/05/2024 2,350,000.00 2,488,495.00 2,427,682.35 2,420,020.01 {7,662.34) 26,881.39 3.70 05MAR23) 03/05/2023 8 February 1, 2022, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2021 .... .i::. acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port -...I (loss) interest cost Corporate Bonds 459200JY8 IBM CORP 3% 15MAY2024 3.000 05/15/2024 2,300,000.00 2,463,231.00 2,423,288.43 2,403,034.09 (20,254.34) 8,816.67 3.67 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27 JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,006,800.10 1,030,214.47 23,414.37 133.33 1.51 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,128,389.50 2,108,977.70 (19,411.80) 5,811.00 3.29 05DEC23) 12/05/2023 -· ----. --Total Corporate Bonds 20,350,000.00 21,319,597.00 20,881,598.93 21,100,020.46 218,421.53 153,485.03 31.72 Government Agencies 3135G0U92 FANNIE MAE 2.625% 11JAN2022 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,500,162.78 1,500,861.59 698.81 18,593.75 2.25 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,000,285.73 1,000,648.95 363.22 11,083.33 1.51 313378CR0 FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,000,281.47 2,008,110.86 7,829.39 13,750.00 2.98 3135G0V59 FANNIE MAE 2.25% 12APR2022 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,905,478.71 2,916,941 .60 11,462.89 14,318.75 4.38 3133EA5E4 FEDERAL FARM CREDIT BANK 1.93% 18OCT2022 1.930 10/18/2022 2,000,000.00 2,015,820.00 2,004,556.16 2,025,959.30 21,403.14 7,827.22 3.00 31331K3A6 FEDERAL FARM CREDIT BANK 2.71% 13DEC2022 2.710 12/13/2022 1,000,000.00 1,028,921.06 1,007,980.63 1,024,228.96 16,248.33 1,355.00 1.53 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,899,013.95 1,924,899.04 25,885.09 34,259.43 2.99 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,005,314.77 1,022,298.82 16,984.05 8,937.50 1.51 9 February 1, 2022, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2021 ..a, U'I acusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port ...., (loss) interest cost Government Agencies 3133EJFK0 FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,011 ,522.27 1,028,378.48 16,856.21 8,318.06 1.54 3137EAEN5 FREDDIE MAC 2. 75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,025,396.50 2,062,924.68 37,528.18 1,833.33 3.08 3135G0U43 FANNIE MAE 2.875% 12SEP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,015,911.19 1,036,977.87 21 ,066.68 8,704.86 1.55 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 17OCT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,999,003.90 2,050,471 .16 51 ,467.26 7,646.67 2.97 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 3.000 12/06/2023 1,000,000.00 1,071,740.00 1,051,709.18 1,048,127.83 (3,581.35) 2,083.33 1.59 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,006,490.96 1,029,237.27 22,746.31 1,437.50 1.51 3135G0V34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,750,000.00 1,820,547.50 1,796,781.13 1,812,265.53 15,484.40 17,743.06 2.71 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 0.250 02/26/2024 1,250,000.00 1,246,747.50 1,247,398.00 1,237,190.98 (10,207.02) 1,085.07 1.86 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,999,036.57 1,977,588.56 (21,448.01) 1,550.00 2.97 (CALLABLE 12JAN22) 3135G0V75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,004,141 .36 2,044,218.66 40,077.30 17,402.78 2.99 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 0FEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,000,315.15 982,065.39 (18,249.76) 1,958.33 1.49 (CALLABLE 1 0FEB22) 02/10/2022 -Total Government Agencies 29,250,000.00 29,849,434.86 29,480,780.41 29,733,395.53 252,615.12 179,887.97 44.42 10 February 1, 2022, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2021 .... °' g.cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % N Call date shares gain accrued Port "' (loss) interest cost Government Bonds 912828XW5 USA TREASURY 1.75% 30JUN2022 1 . 7 50 06/30/2022 1,000,000.00 998,515.63 999,758.61 1,007,578.12 7,819.51 0.00 1.49 912828L57 USA TREASURY 1.75% 30SEP2022 1.750 09/30/2022 1,000,000.00 999,417.41 999,866.01 1,010,664.06 10,798.05 4,423.08 1.49 9128282D1 USA TREASURY 1.375% 31 AUG2023 1 .375 08/31/2023 2,000,000.00 1,967,109.38 1,986,703.79 2,023,828.12 37,124.33 9,267.96 2.93 912828T91 USA TREASURY 1.625% 31 OCT2023 1.625 10/31/2023 1,600,000.00 1,640,630.36 1,636,339.19 1,627,062.50 (9,276.69) 4,381 .22 2.44 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,911,253.98 1,951,210.93 39,956.95 3,438.53 2.87 9128285P1 USA TREASURY 2.875% 30NOV2023 2.875 11/30/2023 1,100,000.00 1,151,566.19 1, 149,308.85 1,145,160.16 (4,148.69) 2,693.34 1.71 91282CBEO USA TREASURY 0.125% 15JAN2024 0.125 01/15/2024 1,900,000.00 1,890,283.71 1,891,299.72 1,876,324.21 (14,975.51) 1,090.69 2.81 912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,018,276.27 2,054,609.38 36,333.11 6,740.33 3.03 912828YH7 USA TREASURY 1.5% 30SEP2024 1 .500 09/30/2024 1,000,000.00 1,032,304.69 1,028,301.84 1,016,015.62 (12,286.22) 3,791.21 1.54 912828YM6 USA TREASURY 1 .5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1, 129,375.83 1,117,488.28 (11 ,887.55) 2,780.39 1.68 912828YY0 USA TREASURY 1. 75% 31DEC2024 1.750 12/31/2024 1,000,000.00 1,046,643.98 1,039,294.24 1,023,085.94 (16,208.30) 0.00 1.56 Total Government Bonds 15,600,000.00 15,820,182.07 15,789,778.33 15,853,027.32 63,248.99 38,606.75 23.54 11 February 1, 2022, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2021 ..a. ..... ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) ..... United States Treasury Note/Bond 912828XW5 USA TREASURY 1. 75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.49 1,007,578.12 1.51 0.50 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.49 1,010,664.06 1.51 0.74 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.93 2,023,828.12 3.03 1.64 912828T91 USA TREASURY 1.625% 1.625 10/31/2023 AA+ Aaa 1,600,000.00 1,640,630.36 2.44 1,627,062.50 2.43 1.81 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.87 1,951,210.93 2.92 1.88 9128285P1 USA TREASURY 2.875% 2.875 11/30/2023 AA+ Aaa 1,100,000.00 1,151,566.19 1.71 1,145,160.16 1.71 1.87 91282CBEO USA TREASURY 0.125% 0.125 01/15/2024 AA+ Aaa 1,900,000.00 1,890,283.71 2.81 1,876,324.21 2.80 2.03 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 3.03 2,054,609.38 3.07 2.28 912828YH7 USA TREASURY 1.5% 1.500 09/30/2024 AA+ Aaa 1,000,000.00 1,032,304.69 1.54 1,016,015.62 1.52 2.69 912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1,100,000.00 1,132,015.40 1.68 1,117,488.28 1.67 2.77 912828YYO USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000.00 1,046,643.98 1.56 1,023,085.94 1.53 2.93 Issuer total 15,600,000.00 15,820,182.07 23.54 15,853,027.32 23.70 1.94 Federal Farm Credit Banks Funding Corp 3133EA5E4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 3.00 2,025,959.30 3.03 0.79 31331K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.53 1,024,228.96 1.53 0.94 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.99 1,924,899.04 2.88 1.02 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.51 1,022,298.82 1.53 1.09 3133EJFKO FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.54 1,028,378.48 1.54 1.16 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.97 2,050,471.16 3.06 1.77 3133EJ2B4 FEDERAL FARM CREDIT 3.000 12/06/2023 AA+ Aaa 1,000,000.00 1,071,740.00 1.59 1,048,127.83 1.57 1.89 3133EMRZ7 FEDERAL FARM CREDIT 0.250 02/26/2024 AA+ Aaa 1,250,000.00 1,246,747.50 1.86 1,237,190.98 1.85 2.14 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.97 1,977,588.56 2.96 1.97 Issuer total 13,100,000.00 13,418,097.06 19.97 13,339,143.13 19.94 1.42 12 February 1, 2022, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2021 -00 acusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) ...... Federal National Mortgage Association 3135G0U92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 2.25 1,500,861.59 2.24 0.03 3135G0V59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 4.38 2,916,941.60 4.36 0.28 3135G0U43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.55 1,036,977.87 1.55 1.66 3135G0V34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,750,000.00 1,820,547.50 2.71 1,812,265.53 2.71 2.03 3135G0V75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.99 2,044,218.66 3.06 2.43 Issuer total 9,150,000.00 9,324,048.80 13.87 9,311,265.25 13.92 1.20 Federal Home Loan Banks 313378CR0 FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.98 2,008,110.86 3.00 0.19 3130A3VCS FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.51 1,029,237.27 1.54 1.90 3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 02/10/2022 AA+ Aaa 1,000,000.00 1,002,860.00 1.49 982,065.39 1.47 2.58 Issuer total 4,000,000.00 4,021,460.00 5.98 4,019,413.52 6.01 1.22 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 1.51 1,000,648.95 1.50 0.04 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 3.08 2,062,924.68 3.08 1.44 Issuer total 3,000,000.00 3,085,829.00 4.59 3,063,573.63 4.58 0.98 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 3.70 2,420,020.01 3.62 1.14 Issuer total 2,350,000.00 2,488,495.00 3.70 2,420,020.01 3.62 1.14 International Business Machines Corp 459200JY8 IBM CORP 3% 3.000 05/15/2024 A-A3 2,300,000.00 2,463,231 .00 3.67 2,403,034.09 3.59 2.29 Issuer total 2,300,000.00 2,463,231.00 3.67 2,403,034.09 3.59 2.29 13 February 1, 2022, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2021 -ID ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mktvalue dur (yrs) -.J 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 3.29 2,108,977.70 3.15 1.86 Issuer total 2,000,000.00 2,207,640.00 3.29 2,108,977.70 3.15 1.86 Toyota Motor Credit Corp 89233P7F7 TOY OT A MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001 ,380.00 2.98 2,040,712.60 3.05 1.00 Issuer total 2,000,000.00 2,001,380.00 2.98 2,040,712.60 3.05 1.00 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 2.98 1,992,007.35 2.98 1.94 Issuer total 1,900,000.00 1,999,636.00 2.98 1,992,007.35 2.98 1.94 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 2.97 1,971,454.02 2.95 1.33 Issuer total 1,900,000.00 1,995,436.00 2.97 1 , 971 ,454.02 2.95 1.33 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 2.31 1,532,629.07 2.29 1.21 Issuer total 1,500,000.00 1,552,215.00 2.31 1,532,629.07 2.29 1.21 Citibank NA 17325FA57 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 2.21 1,472,854.05 2.20 1.90 Issuer total 1,400,000.00 1,484,224.00 2.21 1 ,472,854.05 2.20 1.90 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 1,061,060.14 1.59 2.08 Issuer total 1,000,000.00 1,070,370.00 1.59 1,061,060.14 1.59 2.08 14 February 1, 2022, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2021 N 0 g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares -.J 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 1.51 1,030,214.47 1.54 2.42 Issuer total 1,000,000.00 1,012,410.00 1.51 1,030,214.47 1.54 2.42 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aaa 1,000,000.00 1,007,920.00 1.50 1,023,929.54 1.53 1.32 Issuer total 1,000,000.00 1,007,920.00 1.50 1,023,929.54 1.53 1.32 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 1,022,025.19 1.53 1.03 Issuer total 1,000,000.00 1,015,270.00 1.51 1,022,025.19 1.53 1.03 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 1,021,102.23 1.53 1.03 Issuer total 1,000,000.00 1,021,370.00 1.52 1,021 , 102.23 1.53 1.03 Cash and Cash Equivalents INVESTED CASH 0.000 213,217.87 213,217.87 0.00 213,217.87 0.32 0.00 Issuer total 213,217.87 213,217.87 0.00 213,217.87 0.32 0.00 15 February 1, 2022, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2021 -December 31, 2021 N ~ ~Cusip Description Accretion Realized gain Change in fair Interest earned Interest received N (amortization) (loss) value -.J -- Cash Cash and Cash Equivalents 0.00 0.00 0.00 1,532.74 1,532.74 --Total cash 0.00 0.00 0.00 1,532.74 1,532.74 Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 (227.43) 0.00 (1,666.24) 1,933.33 12,000.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 (121 .22) 2,066.67 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (5,483.46) 0.00 (7,072.66) 7,183.82 0.00 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 15JAN23) (510.02) 0.00 (3,112.65) 2,368.05 0.00 166764BK5 CHEVRON CORP 2.566% 16MAY2023 (CALLABLE 16MAR23) (1,425.34) 0.00 (2,820.81) 3,314.42 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1,411.16) 0.00 (1,102.74) 3,121.53 0.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1,773.14) 0.00 (4,896.48) 4,400.28 0.00 459200JY8 IBM CORP 3% 15MA Y2024 (4,325.91) 0.00 (3,540.34) 5,941.67 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541.99) 0.00 (4,271 .28) 6,928.50 40,230.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) (2,126.29) 0.00 (6,503.28) 5,726.39 33,250.00 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 10JAN2023 (31.48) 0.00 (3,770.14) 4,520.83 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1,942.22) 0.00 (3,677.26) 5,521.87 0.00 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 11 JAN23) (365.61) 0.00 244.30 2,195.84 0.00 --Total Corporate Bonds (25,339.40) 0.00 (42,310.80) 55,223.20 85,480.00 Government Agencies 3135G0V75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 (6,105.74) 3,013.89 0.00 3135G0V59 FANNIE MAE 2.25% 12APR2022 (1,611.39) 0.00 (5,839.64) 5,618.75 0.00 16 February 1, 2022, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2021 -December 31, 2021 N N ~Cusip Description Accretion Realized gain Change in fair Interest earned Interest received N (amortization) (loss) value -.J Government Agencies 3135GOV34 FANNIE MAE 2.5% 05FEB2024 (1,858.85) 0.00 (9,486.45) 3,767.37 0.00 3135GOU92 FANNIE MAE 2.625% 11JAN2022 (393.38) 0.00 (3,502.17) 3,390.62 0.00 3135GOU43 FANNIE MAE 2.875% 12SEP2023 (779.96) 0.00 (4,717.16) 2,475.69 0.00 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 100.59 0.00 (3,042.76) 269.10 0.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 12JAN22) 35.78 0.00 (3,772.14) 516.67 0.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 170CT2023 46.19 0.00 1,582.04 3,203.34 0.00 3133EA5E4 FEDERAL FARM CREDIT BANK 1. 93% 180CT2022 (474.60) 0.00 (3,620.00) 3,323.89 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.62) 0.00 (952.85) 1,937.50 0.00 3133EJFKO FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.63) 0.00 (1,167.67) 2,281.95 0.00 31331K3A6 FEDERAL FARM CREDIT BANK 2.71% 13DEC2022 (698.01) 0.00 (1,169.14) 2,333.61 13,550.00 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 (2,151.46) 0.00 (37.57) 2,583.33 15,000.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,889.99) 0.00 (5,126.97) 6,515.60 0.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 (CALLABLE 1 OFEB22) (236.37) 0.00 (1 ,773.16) 430.55 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 (278.98) 0.00 (4,159.76) 1,937.50 11,250.00 313378CRO FEDERAL HOME LOAN BANK 2.25% 11 MAR2022 (118.93) 0.00 (3,796.18) 3,875.00 0.00 3137EADB2 FREDDIE MAC 2.375% 13JAN2022 (659.38) 0.00 (2,025.66) 2,045.14 0.00 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 (1,440.25) 0.00 (8,701.14) 4,736.11 27,500.00 Total Government Agencies (15,754.98) 0.00 (67,414.12) 54,255.61 67,300.00 Government Bonds 91282CBEO USA TREASURY 0.125% 15JAN2024 362.03 0.00 (4,230.47) 200.06 0.00 17 February 1, 2022, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2021 -December 31, 2021 N w g_cusip Description Accretion Realized gain Change in fair Interest earned Interest received N (amortization) (loss) value "' Government Bonds 9128282D1 USA TREASURY 1.375% 31 AUG2023 677.93 0.00 (7,109.38) 2,354.98 0.00 912828YH7 USA TREASURY 1 .5% 30SEP2024 (873.86) 0.00 (3,515.63) 1,277.47 0.00 912828YM6 USA TREASURY 1.5% 31 OCT2024 (879.86) 0.00 (3,910.15) 1,412.99 0.00 912828T91 USA TREASURY 1.625% 31 OCT2023 (1,683.87) 0.00 (6,125.00) 2,226.52 0.00 912828XW5 USA TREASURY 1.75% 30JUN2022 41.35 0.00 (1,757.82) 1,474.18 8,750.00 912828L57 USA TREASURY 1.75% 30SEP2022 15.22 0.00 (2,070.32) 1,490.39 0.00 912828YY0 USA TREASURY 1.75% 31 DEC2024 (1,111.42) 0.00 (4,101.56) 1,474.18 8,750.00 912828X70 USA TREASURY 2% 30APR2024 (665.76) 0.00 (8,281.24) 3,425.41 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (499.11) 0.00 (7,941.41) 3,438.53 0.00 9128285P1 USA TREASURY 2.875% 30NOV2023 (2,186.80) 0.00 (5,414.06) 2,693.34 0.00 Total Government Bonds (6,804.15) 0.00 (54,457.04) 21,468.05 17,500.00 18 February 1, 2022, Item #3 TRANSACTION REPORT CITY OF POWAY For the period December 1, 2021 -December 31, 2021 N ~ 2_ Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total NSettle date shares gain(loss) ..... 12/05/2021 46647PAY2 Income Corporate Bonds JPMORGAN CHASE & CO 12/05/2024 2,000,000.00 0.00 0.00 40,230.00 40,230.00 12/05/2021 12/06/2021 3133EJ2B4 Income Government Agencies FEDERAL FARM CREDIT BANK 12/06/2023 1,000,000.00 0.00 0.00 15,000.00 15,000.00 12/06/2021 12/08/2021 3130A3VC5 Income Government Agencies FEDERAL HOME LOAN BANK 12/08/2023 1,000,000.00 0.00 0.00 11,250.00 11,250.00 12/08/2021 12/08/2021 69353RFL7 Income Corporate Bonds PNC BANK NA 3.5% 08JUN2023 06/08/2023 1 , 900,000.00 0.00 0.00 33,250.00 33,250.00 12/08/2021 12/13/2021 31331 K3A6 Income Government Agencies FEDERAL FARM CREDIT BANK 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 12/13/2021 12/19/2021 3137EAEN5 Income Government Agencies FREDDIE MAC 2.75% 06/19/2023 2,000,000.00 0.00 0.00 27,500.00 27,500.00 12/19/2021 12/29/2021 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 12/29/2021 12/31/2021 912828XW5 Income Government Bonds USA TREASURY 1.75% 06/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 12/31/2021 12/31/2021 912828YY0 Income Government Bonds USA TREASURY 1.75% 12/31/2024 1,000,000.00 0.00 0.00 8,750.00 8,750.00 12/31/2021 12/31/2021 Income Cash and Cash Equivalents Cash 0.00 0.00 0.00 1,532.74 1,532.74 19 February 1, 2022, Item #3 ADDITIONAL INFORMATION CITY OF POWAY As of December 31, 2021 N U1Past performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate changes) and investors may not get o back the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes ~in market conditions. Investment involves risk, including the 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 -.Jyour 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. !NA 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. !NA 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 !NA, 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. lNA'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 of Treasury bills with time to maturity of less than 6 months. The ICE BofA 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The ICE 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 Bot A 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. 20 February 1, 2022, Item #3 N CJ\ ADDITIONAL INFORMATION As of December 31, 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. N -.Jlnsight is a group of wholly owned subsidiaries ofThe 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 ofThe Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2021 Insight Investment. All rights reserved. 21 February 1, 2022, Item #3 N -..J City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash December 2021 2-:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::_::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~ l"'art I N -..J )> -i -i )> n :I: ~ m z -i C Investments & Cash with Fiscal AS!ents Settlement INVESTMENT DESCRIPTION Date 1st Am Gov't Obligations Money Mkt Fd 12/31/21 Average/Total Paying Agent or Uninvested Cash & DITs Total Investments and Cash with Fiscal Agent Non-Managed Investments INVESTMENT DESCRIPTION County Pool Settlement Date Yield to I Days to Maturity Maturity 0.01%) 11 I . . I r= ~I II F = -1 L I -~ Yield to I Days to Maturity 0.63%1 % of Total I Face Investment Value 100.00%1 $1,251,675.00 ~I~ =~11_- I $1,251,675.00 Part II Book Value $1,251,675.00 $1,251,675.00 $0.00 $1,251,675.00 % of Total Face I: Book Investment Value I Value 100.00%) $52,968.65 1 $52,968.65 1 Market Value Unrealized Gain(Loss $1,251,67~QQJ $0.00 _____ 1 ____ _ s1,251,675.oo I so.oo Market Unrealized Value Gain(Loss) I $52,874.00 I C ($94.65)1 ~. I __ I" 1.·-I ___ 1, I Average/Total General Cash (Union Bank) Payroll Cash (Union Bank) Emergency Cash (Union Bank) Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash n-0.63%1 N/A Part Ill · $52,968.65 J = $52,968.65 1 Book Value ~--$52,874.oo I ~-~~ ($94.65)1 ($368,008.00)1 (1) -----------$20,000.00 ] --------~ -. --- $ 1 O,QQQ._QQJ so.oo I s20,ooo.oo I ss,550.00 1 ($309,458.00)1 (1) Adjusted book balance is used for reporting purposes, the actual bank balance was a positive amount.