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Item 3 - City's Investment Report as of December 21, 2022
DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT February 21, 2023 Honorable Mayor and Members of the City Council Tim McDermott, Interim Director of Finance ~ Tim McDermott, Interim Director of Finance (858) 668-4411 or tmcdermott@poway.org City's Investment Report as of December 31, 2022 ' City of Poway CITY COUNCIL Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. Attached is an investment portfolio report as of December 31, 2022. Recommended Action: It is recommended 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 Interim Director of Finance (i.e., City 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, 2022, was $119,041,045. It consisted of the following: Investment Portfolio Total Cash $202,255 Deposits at CalTRUST 22,842,949 Deposits at the Local Agency Investment Fund (LAIF) 21,089,325 U.S. Treasury Notes 27,273,744 U.S. Instrumentalities 26,374,063 Corporate Notes 21,258,709 Fair Value of Investment Portfolio as of December 31, 2022 $119,041,045 1 of 30 February 21, 2023, 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 as well as operational expenses. Additional funding was needed in November and December to issue debt service payments. 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, 2022, is estimated at 2.17% for LAIF, 3.05% for the CalTRUST short-term fund, and 2.43% 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 $77,129,895; the fair value is $75,108,771 for an unrealized loss of $2,021,124 or -2.62% 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 December 31, 2022, was $202,255. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $150,325 at December 31, 2022. The City's cash on hand at December 31, 2022 totaled $5,779,364. The December 31, 2022, balance of the City's Library Trust Fund is $261,945. Through the Fiscal Year 2022-23 period ending December 31, 2022, no transfer of interest earnings has been transferred to the General Fund. At the close of Fiscal Year 2022-23, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating costs. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The externally managed investment portfolio earned $130,069 interest during December 2022, as well as $120,491 interest during November 2022, and $123,608 during October 2022. Fees for investment services during this period totaled $9,340. 2 of 30 February 21, 2023, 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, 2022 Reviewed/Approved By: Assistant City Manager 3 of30 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager February 21, 2023, 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) Unrealized Gain (Loss) Percentage Accrued Interest Earned Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology December September 2021 2022 33,912,075 11,409,244 11,442,789 11,232,705 11,744,381 28,523,955 57,099,245 51,165,904 0.24% 1.75% 1 1 1 1 213,218 32,182 15,853,027 28,001,371 29,733,396 25,240,127 21,100,020 21,214,999 66,899,661 74,488,679 213,218 32,182 15,789,778 28,984,175 29,480,781 25,943,209 20,881,599 21,862,328 66,365,376 76,821,895 534,285 (2,333,216) 0.81% -3.04% 132,480 115,610 1.43% 1.58% 1.53 1.22 1.67 1.33 123,998,906 125,654,583 0.88% 1.65% 0.83 0.72 0.90 0.79 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 2022 11,500,594 11,342,355 21,089,325 43,932,274 2.47% 1 1 202,255 27,273,744 26,374,063 21,258,709 75,108,771 202,255 21,798,450 26,966,500 28,162,691 77,129,895 (2,021,124) -2.62% 130,069 1.84% 1.35 1.48 119,041,045 2.07% 0.85 0.93 Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in ii, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings. Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of 30 ATTACHMENT A February 21, 2023, Item #3 City of Poway Monthly Investment Portfolio Report December 31, 2022 Separately Managed Investment Pools % Return LAIF $ 21,089,325 48% 2.17% CalTrust -Short $ 11,500,594 26% 3.05% CalTrust -Medium $ 11,342,355 26% 2.43% Total Internally Managed $ 43,932,274 37% Weighted Average Yield 2.47% Days Effective Average Duration -Internal 1 Weighted Average Maturity-Internal 1 Externally Managed Assets % Return Cash $ 202,25S 0% 0.60% Treasury Securities $ 27,273,744 36% 1.95% Instrumentality Securities $ 26,374,063 35% 1.72% Corporate Notes $ 21,258,709 28% 1.85% Total Externally Managed $ 75,108,771 63% Weighted Average Yield 1.84% Years Effective Average Duration -External 1.35 Weighted Average Final Maturity -External 1.48 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 Beginning Balance Ending Balance Assets values shown at Market 5 of30 21,089,325 18% 2.17% 11,500,594 10% 3.0S% 11,342,355 10% 2.43% 202,255 0% 0.60% 27,273,744 23% 1.95% 26,374,063 22% 1.72% 21,258,709 18% 1.85% 119,041,045 2.07% Years 0.85 0.93 $ $ CalTrust -Short, 26% Securities 27% 118,818,527 119,041,045 ATTACHMENT B LAIF, 48% Cash, 0% Treasury Securities, 36% Instrumentality Securities, 35% CalTrust -Short CalTrust - 12% Cash 0% 28% February 21, 2023, Item #3 6 of30 ATTACHMENT C February 21, 2023, Item #3 ..... Contents 0 .... w 0 Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40-Deposit and investment risk disclosure 13 Securities purchased 17 Securities sold and matured 18 Detail of return and interest received 19 Transaction report 22 Additional information 23 February 21, 2023, Item #3 FIXED INCOME MARKET REVIEW As of December 31, 2022 00 0 .... w 0 Chart 1: The Fed adjusted its dot plot again, but to a lower extent again 6 5 4 ~3 2 1 0 ~ '.\,<o ◊ :;;;f :;;;f :;;;f <,_/l; <,_q; <,_/l; ..... ~ ... /: ·-=···.~:-....... FedOotPlot • • • • • • • ~, December 2022 . . . . . . :--... June 2022 •; September2022 . • • • • •M;r;h 2022 • • • • • • • ~ecember 2021 . . . . . · .... '.\,'b ..e, ~ '.\,"',, '.\,"' ~ <,_~ <,_~ <,_~ <,_~ <,_~ <,_~ ~ ~ <,_~ <,_~ --Fed Funds Rate Source: Federal Reserve, December 31, 2022 Chart 2: Wage growth remained strong 21 20 ._ 19 :::, 0 :: 18 Q) C. <I'> 17 16 15 2017 2018 2019 2020 2021 --Average hourly earnings -leisure and hospitality Source: Bloomberg, December 31, 2022 2022 CITY OF POWAY Economic Indicators and Monetary Policy The Federal Reserve, as expected, announced a "downshift" in its policy tightening. It raised the upper bound of its policy rate by SObp, from 4% to 4.5%, following four consecutive 75bp hikes. The Fed was; however, clear that it still has more hiking to do in 2023. Fed Chair Powell stated that rates are still "not sufficiently restrictive". The Fed once again raised its "dot plot" projections, albeit to a lesser extent than they have at each quarterly meeting this year (see Chart 1 ). The Fed's most notable (and most anticipated) change was to its 2023 year-end forecast, now at 5.13%, up from 4.65%. Only two of the 19 voting members projected a lower rate (at 4.88%). For the second month in a row, inflation came in lower than expected. Headline CPI was 0.1 % month-on-month and core CPI was 0.2%, taking the year-on-year figures to 7.1 % (the lowest since last December) and 6% (the lowest since July). respectively. Most areas of the report offered good news, outside of the stubborn rental and food components. For the second month in a row, core goods prices were in deflation, this time at-0.4% month-on-month. Used car prices were the second largest negative contributor and leading indicators, such as the Manheim Used Car Index, fell -14.2% last month, its largest decrease ever. The labor market remained tight. US economy added 263,000 new jobs in November, above consensus for 200,000. Job growth was broad-based. The service sector remained strong with leisure and hospitality up 88,000. Wage growth surged higher, up 0.6%, or 5.1 % year-on- year, raising further inflation concerns (Chart 2). The unemployment rate stayed at 3.7%. The participation rate fell from 62.2% to 62.1 %. The ratio of jobs to unemployed people remained at ~1.7. The housing market also continued to struggle. Existing home sales have fallen 40% from the peak in late 2020. Building permits fell by 11.2% month-on-month in November and housing starts fell 0.5% month-on-month. Interest Rate Summary Yields rose toward the belly of the curve. At the end of December, the 3-month US Treasury bill yielded 4.41 %, the 6-month US Treasury bill yielded 4. 77%, the 2-year US Treasury note yielded 4.43%, the 5-year US Treasury note yielded 4.01 % and the 10-year US Treasury note yielded 3.88%. February 21, 2023, Item #3 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2022 -December 31, 2022 IJ) 0 :; J Amortized Cost Basis Activity Summary 0 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) 166,637.10 0.00 Comparative Rates of Return (%) *Twelve * Six month trailing month trailing Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Year US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note * rates reflected are cumulative 1.68 1.64 1.95 2.30 2.79 2.98 2.86 1.46 1.44 1.62 1.80 2.00 1.94 1.66 76,968,662.66 166,637.10 0.00 0.00 0.00 0.00 (44,163.62) 38,759.15 0.00 77,129,895.29 75,108,770.85 (2,021,124.44) * One month 0.34 0.34 0.35 0.37 0.39 0.36 0.31 Detail of Amortized CQst Basis Return Interest Accretion Realized earned {amortization) gain (loss) Cash and Cash Equivalents 214.83 0.00 0.00 Corporate Bonds 57,378.60 (21,292.75) 0.00 Government Agencies 46,810.40 (4,928.95) 0.00 Government Bonds 25,665.53 20,817.23 0.00 Total 130,069.36 {5,404.47) 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 214.83 36,085.85 41,881.45 46,482.76 124,664.89 Total portfolio 130,069.36 (5,404.47) 0.00 124,664.89 77,074,034.68 0.16 1.49 540 4 February 21, 2023, Item #3 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2022 -December 31, 2022 .... 0 ~ I Fair Value Basis Activity Summary o Opening balance 74,910,625.26 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 166,637.10 0.00 Comparative Rates of Return (%} Fed Funds Overnight Repo ICE Bofa 3 Months us T-BILL ICE Bofa 6m US Treas Bill ICE Bofa 1 Yr US Treasury Note ICE BofA US Treasury 1-3 ICE BofA US Treasury 1-5 * rates reflected are cumulative *Twelve month trailing 1.68 1.64 1.46 1.34 (1.02) (3.65) (5.25) * Six month trailing 1.46 1.44 1.31 1.35 0.25 (0.84) (1.35) 166,637.10 0.00 0.00 0.00 0.00 0.00 31,508.49 75,108,770.85 * One month 0.34 0.34 0.36 0.43 0.39 0.20 0.06 Detail of Fair Value Basis Return Interest Change in earned fair value Cash and Cash Equivalents 214.83 0.00 Corporate Bonds 57,378.60 (16,639.24) Government Agencies 46,810.40 37,762.72 Government Bonds 25,665.53 10,385.01 Total 130,069.36 31,508.49 Summary of Fair Value Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value* Period return (%) YTD return (%) Weighted average final maturity in days * Total value equals market value and accrued interest CITY OF POWAY Total income 214.83 40,739.36 84,573.12 36,050.54 161,577.85 Total portfolio 130,069.36 31,508.49 161,577.85 75,496,654.48 0.21 (2.00) 540 5 February 21, 2023, Item #3 RECAP OF SECURITIES HELD As of December 31, 2022 ... ... 0 .... w 0 Cash and Cash Equivalents Corporate Bonds Government Agencies Government Bonds :,.J.1(-: Historical cost 202,254.50 Amortized cost 202,254.50 Fair value 202,254.50 22,472,738.00 21,798,450.16 21,258,709.47 27,347,196.50 26,966,500.10 26,374,062.72 28,134,115.19 28,162,690.53 27,273,744.16 Unrealized gain (loss) 0.00 (539,740.69) (592,437.38) (888,946.37) Weighted Percent average of final portfolio maturity (days) 417 472 709 0.26 28.75 34.99 36.00 Portfolio diversification {%) ■ Cash and Cash Equivalents ■ Corporate Bonds ■ Government Agencies ■ Government Bonds Total 0.26 28.75 34.99 36.00 100.00 Weighted . average effective duration (years) 0.00 0.89 1.22 1.86 CITY OF POWAY 6 February 21, 2023, Item #3 MATURITY DISTRIBUTION OF SECURITIES HELD As of December 31 , 2022 ... N 0 .... w 0 Maturity Under 90 days 90 to 1 79 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years 30.00 -25.00 E .S 20.00 .... "' 0 u "§ ·;:: .8 "' :i: o'l>1 o.i<::) 0~ ,f' Ri'o (?l o'l>1 '\o.i " ""t,<::) Maturity distribution ~ "~fl) ,o o~eo rl>~ ~fl) 'l, "'o r$-c, ~fl) ":, 'l, ,o r$-c, . ~fl) t,.. ":l'o Historic cost Percent 9,287,127.00 11.88 8,055,066.00 10.31 14,581,244.73 18.66 25,890,340.43 33.13 9,824,859.99 12.57 5,405,595.71 6.92 5,112,070.33 6.54 0.00 0.00 78,156,304.19 100.00 r$-c, <-:,~fl) t,....s, r$-c, ~fl, I,.<-:, o.,.'l) CITY OF POWAY 7 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... w 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 Cash and Cash Equivalents Cash and Cash Equivalents 0.000 202,254.50 202,254.50 202,254.50 202,254.50 0.00 0.00 0.26 Total Cash and Cash Equivalents 202,254.50 202,254.50 202,254.50 202,254.50 0.00 0.00 0.26 Corporate Bonds 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 OJAN2023 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,010.49 1,999,214.82 (795.67) 24,937.50 2.56 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,000,255.01 995,718.18 (4,536.83) 8,097.22 1.31 (CALLABLE 06FEB23) 01/15/2023 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 06FEB23) 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,000,134.05 993,752.88 (6,381 .17) 5,666.67 1.30 01/11/2023 037833AK6 APPLE INC 2.4% 03MAY2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,000,718.94 991,991.64 (8,727.30) 3,866.67 1.29 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,909,143.06 1,888,428.43 (20,714.63) 4,248.61 2.55 05/09/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,420,863.91 1,380,633.21 (40,230.70) 22,427.22 1.90 12/23/2023 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,923,630.37 1,866,606.66 (57,023.71) 26,006.25 2.56 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,019,944.44 984,083.58 (35,860.86) 11,781.25 1.37 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 3.550 03/05/2024 2,350,000.00 2,488,495.00 2,361,880.83 2,341,627.26 (20,253.57) 26,881.39 3.18 05MAR23) 03/05/2023 459200JY8 IBM CORP 3% 15MA Y2024 3.000 05/15/2024 2,300,000.00 2,463,231.00 2,371,377.51 2,237,639.46 (133,738.05) 8,816.67 3.15 8 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... J:a, 5a.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 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27 JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,004,070.97 963,812.31 (40,258.66) 266.67 1.30 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,061,885.59 1,970,657.96 (91,227.63) 5,811.00 2.82 05DEC23) 12/05/2023 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 1.554 05/11/2025 1,800,000.00 1,715,436.00 1,733,489.87 1,676,021.45 (57,468.42) 3,885.00 2.19 11APR25) 04/11/2025 24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11 SEP2025 3.400 09/11/2025 1,000,000.00 989,920.00 991,045.12 968,521.63 (22,523.49) 10,388.89 1.27 Total Corporate Bonds 21,650,000.00 22,472,738.00 21,798,450.16 21,258,709.47 (539,740.69) 163,081.01 28.75 Government Agencies 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,852,334.00 1,849,989.71 (2,344.29) 34,259.43 2.57 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,000,507.44 997,891.31 (2,616.13) 8,937.50 1.30 3130AJ7E3 FEDERAL HOME LOAN BANK 1.375% 17FEB2023 1.375 02/17/2023 2,000,000.00 2,003,400.00 2,000,471 .39 1,992,702.58 (7,768.81) 10,236.11 2.56 3133EJFKO FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,001,830.64 997,621 .65 (4,208.99) 8,318.06 1.32 3133EMF31 FEDERAL FARM CREDIT BANK 0.125% 02JUN2023 0.125 06/02/2023 2,000,000.00 1,968,700.00 1,989,284.68 1,963,607.72 (25,676.96) 201 .39 2.52 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,008, 113.44 1,983, 123.36 (24,990.08) 1,833.33 2.65 3135G0U43 FANNIE MAE 2.875% 125EP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,006,551.66 987,147.34 (19,404.32) 8,704.86 1.33 9 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 ~ u, 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 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 170CT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,999,558.14 1,955,650.54 (43,907.60) 7,646.67 2.56 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 3.000 12/06/2023 1,000,000.00 1,071,740.00 1,025,001.43 983,230.63 (41,770.80) 2,083.33 1.37 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,003,143.18 976,736.98 (26,406.20) 1,437.50 1.30 3135GOV34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,750,000.00 1,820,547.50 1,774,474.89 1,708,527.00 (65,947.89) 17,743.06 2.33 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 0.250 02/26/2024 1,250,000.00 1,246,747.50 1,248,605.11 1,188,374.63 (60,230.48) 1,085.Dl 1.60 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,999,465.82 1,890,401.66 (109,064.16) 1,550.00 2.56 (CALLABLE 11 JAN23) 3135GOV75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,002,488.49 1,915,298.52 (87,189.97) 17,402.78 2.57 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,000,000.00 915,839.53 (84,160.47) 1,958.33 1.28 (CALLABLE 1 OFEB23) 02/10/2023 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 1.250 12/21/2026 2,300,000.00 2,055,763.00 2,061 ,105.16 2,061,851.40 746.24 798.61 2.63 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 105EP2027 4.125 09/10/2027 2,000,000.00 1,993,260.00 1,993,564.63 2,006,068.16 12,503.53 21 ,312.50 2.55 Total Government Agencies 27,150,000.00 27,347, 196.50 26,966,500.10 26,374,062.72 (592,437.38) 145,508.53 34.99 Government Bonds 91282CCN9 USA TREASURY 0.125% 31JUL2023 0.125 07/31/2023 1,300,000.00 1,287,461.39 1,295,303.56 1,265,773.44 (29,530.12) 675.61 1.65 10 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 ..... O'I 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 Bonds 9128282D1 USA TREASURY 1.375% 31 AUG2023 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,994,685.89 1,955,234.38 (39,451 .51) 9,267.96 2.52 91282CDA6 USA TREASURY 0.25% 30SEP2023 0.250 09/30/2023 1,500,000.00 1,485,761.72 1,493,810.43 1,450, 136.72 (43,673.71) 947.80 1.90 912828T91 USA TREASURY 1.625% 31 OCT2023 1 .625 10/31/2023 1,600,000.00 1,640,630.36 1,616,512.87 1,560,312.50 (56,200.37) 4,381.22 2.10 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,905,377.44 1,855,617.18 (49,760.26) 3,438.53 2.46 9128285P1 USA TREASURY 2.875% 30NOV2023 2.875 11/30/2023 1,100,000.00 1,151,566.19 1,123,561.02 1,082,039.07 (41,521.95) 2,693.34 1.47 91282CBEO USA TREASURY 0.125% 15JAN2024 0.125 01/15/2024 1,900,000.00 1,890,283.71 1,895,562.27 1,812,050.79 (83,511.48) 1,090.69 2.42 912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,010,437.45 1,930,312.50 (80,124.95) 6,740.33 2.61 912828YH7 USA TREASURY 1.5% 30SEP2024 1.500 09/30/2024 1,000,000.00 1,032,304.69 1,018,012.82 950,078.12 (67,934.70) 3,791.21 1.32 912828YM6 USA TREASURY 1.5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1,119,016.24 1,042,765.63 (76,250.61) 2,780.39 1.45 912828YYO USA TREASURY 1. 75% 31DEC2024 1.750 12/31/2024 1,000,000.00 1,046,643.98 1,026,208.11 949,765.62 (76,442.49) 8,750.00 1.34 912828ZL7 USA TREASURY 0.375% 30APR2025 0.375 04/30/2025 2,900,000.00 2,704,703.13 2,751,476.64 2,648,742.20 (102,734.44) 1,832.53 3.46 91282CAJO USA TREASURY 0.25% 31 AUG2025 0.250 08/31/2025 1,400,000.00 1,279,250.00 1,299,046.78 1,260,164.07 (38,882.71) 1,179.56 1.64 ·-------·· 11 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... -...I 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 Bonds 91282CAT8 USA TREASURY 0.2S% 31 OCT2025 0.250 10/31/2025 1,200,000.00 1,086,046.88 1,098,238.59 1,074,093.74 (24,144.85) 505.53 1.39 91282CBC4 USA TREASURY 0.375% 31 DEC2025 0.375 12/31/2025 2,300,000.00 2,106, 124.89 2,129,601.35 2,057,601.57 (71,999.78) 4,312.50 2.69 91282CBT7 USA TREASURY 0.75% 31 MAR2026 0.750 03/31/2026 1,400,000.00 1,243,707.82 1,255,185.53 1,256,281.25 1,095.72 2,653.85 1.59 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 1 .250 12/31/2026 2,350,000.00 2,088,287.11 2,099,434.78 2,107,380.85 7,946.07 14,687.50 2.67 9128283F5 USA TREASURY 2.25% 15NOV2027 2.250 11/15/2027 1,100,000.00 1,030,523.22 1,031,218.76 1,015,394.53 (15,824.23) 3,145.03 1.32 Total Government Bonds 29,050,000.00 28,134,115.19 28,162,690.53 27,273,744.16 (888,946.37) 72,873.58 36.00 [ditmlt.iffii CT.V:.'T'Z'I~ ""'i, .• ,::.~ =~ ICl':lltr.'1:'11 12 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 .... 00 g,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w 0 date rating rating shares cost hist cost value mktvalue dur (yrs) United States Treasury Note/Bond 91282CCN9 USA TREASURY 0.125% 0.125 07/31/2023 AA+ Aaa 1,300,000.00 1,287,461.39 1.65 1,265,773.44 1.69 0.57 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.52 1,955,234.38 2.60 0.65 91282CDA6 USA TREASURY 0.25% 0.250 09/30/2023 AA+ Aaa 1,500,000.00 1,485,761.72 1.90 1,450,136.72 1.93 0.74 912828T91 USA TREASURY 1.625% 1.625 10/31/2023 AA+ Aaa 1,600,000.00 1,640,630.36 2.10 1,560,312.50 2.08 0.81 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.46 1,855,617.18 2.47 0.89 9128285P1 USA TREASURY 2.875% 2.875 11/30/2023 AA+ Aaa 1,100,000.00 1,151,566.19 1.47 1,082,039.07 1.44 0.89 91282CBEO USA TREASURY 0.125% 0.125 01/15/2024 AA+ Aaa 1,900,000.00 1,890,283.71 2.42 1,812,050.79 2.41 1.01 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.61 1,930,312.50 2.57 1.28 912828YH7 USA TREASURY 1.5% 1.500 09/30/2024 AA+ Aaa 1,000,000.00 1,032,304.69 1.32 950,078.12 1.26 1.68 912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1,100,000.00 1,132,015.40 1.4S 1,042,765.63 1.39 1.77 912828YYO USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000.00 1,046,643.98 1.34 949,765.62 1.26 1.92 912828ZL7 USA TREASURY 0.375% 0.375 04/30/2025 AA+ Aaa 2,900,000.00 2,704,703.13 3.46 2,648,742.20 3.53 2.26 91282CAJO USA TREASURY 0.25% 0.250 08/31/2025 AA+ Aaa 1,400,000.00 1,279,250.00 1.64 1,260, 164.07 1.68 2.59 91282CATB USA TREASURY 0.25% 0.250 10/31/2025 AA+ Aaa 1,200,000.00 1,086,046.88 1.39 1,074,093.74 1.43 2.75 91282CBC4 USA TREASURY 0.375% 0.375 12/31/2025 AA+ Aaa 2,300,000.00 2,106,124.89 2.69 2,057,601.57 2.74 2.91 91282CBT7 USA TREASURY 0.75% 0.750 03/31/2026 AA+ Aaa 1,400,000.00 1,243,707.82 1.59 1,256,281 .25 1.67 3.12 91282CDQ1 USA TREASURY 1.25% 1.250 12/31/2026 AA+ Aaa 2,350,000.00 2,088,287.11 2.67 2,107,380.85 2.81 3.81 9128283FS USA TREASURY 2.25% 2.250 11/15/2027 AA+ Aaa 1,100,000.00 1,030,523.22 1.32 1,015,394.53 1.35 4.50 Issuer total 29,050,000.00 28,134,115.19 36.00 27,273,744.16 36.31 1.86 Federal Farm Credit Banks Funding Corp 31331 KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.57 1,849,989.71 2.46 0.05 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.30 997,891 .31 1.33 0.11 3133EJFKO FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.32 997,621 .65 1.33 0.18 3133EMF31 FEDERAL FARM CREDIT 0.125 06/02/2023 AA+ Aaa 2,000,000.00 1,968,700.00 2.52 1,963,607.72 2.61 0.41 --·-·---·-----~---------- 13 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 .... \D 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) Federal Farm Credit Banks Funding Corp 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.56 1,955,650.54 2.60 0.77 3133EJ2B4 FEDERAL FARM CREDIT 3.000 12/06/2023 AA+ Aaa 1,000,000.00 1,071,740.00 1.37 983,230.63 1.31 0.90 3133EMRZ7 FEDERAL FARM CREDIT 0.250 02/26/2024 AA+ Aaa 1,250,000.00 1,246,747.50 1.60 1,188,374.63 1.58 1.12 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.56 1,890,401.66 2.52 1.20 Issuer total 12,100,000.00 12,342,056.00 15.79 11,826,767.85 15.75 0.61 Federal Home Loan Banks 3130AJ7E3 FEDERAL HOME LOAN 1.375 02/17/2023 AA+ Aaa 2,000,000.00 2,003,400.00 2.56 1,992,702.58 2.65 0.13 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.30 976,736.98 1.30 0.91 3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 02/10/2023 AA+ Aaa 1,000,000.00 1,002,860.00 1.28 915,839.53 1.22 2.03 3130AQF65 FEDERAL HOME LOAN 1.250 12/21/2026 AA+ Aaa 2,300,000.00 2,055,763.00 2.63 2,061,851.40 2.75 3.78 3130ATHWO FEDERAL HOME LOAN 4.125 09/10/2027 AA+ Aaa 2,000,000.00 1,993,260.00 2.55 2,006,068.16 2.67 4.17 Issuer total 8,300,000.00 8,069,883.00 10.33 7,953,198.65 10.59 2.39 Federal National Mortgage Association 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.33 987,147.34 1.31 0.68 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,750,000.00 1,820,547.50 2.33 1,708,527.00 2.27 1.05 3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.57 1,915,298.52 2.55 1.45 Issuer total 4,750,000.00 4,867,517.50 6.23 4,610,972.86 6.14 1.14 Bank of America Corp 06051 GHF9 BANK OF AMERICA CORP 3.550 03/05/2024 0310512023 A-A2 2,350,000.00 2,488,495.00 3.18 2,341,627.26 3.12 0.18 Issuer total 2,350,000.00 2,488,495.00 3.18 2,341,627.26 3.12 0.18 International Business Machines Corp 459200JY8 IBM CORP 3% 3.000 05/15/2024 A-A3 2,300,000.00 2,463,231.00 3.15 2,237,639.46 2.98 1.31 Issuer total 2,300,000.00 2,463,231.00 3.15 2,237,639.46 2.98 1.31 ----------· --------------·------··------------ 14 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 N 0 s,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares 0 cost hist cost value mkt value dur (yrs) Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 2.56 1,999,214.82 2.66 0.03 Issuer total 2,000,000.00 2,001,380.00 2.56 1,999,214.82 2.66 0.03 Federal Home Loan Mortgage Corp 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.65 1,983,123.36 2.64 0.46 Issuer total 2,000,000.00 2,067,740.00 2.65 1,983,123.36 2.64 0.46 JPMorgan Chase & Co 46647PAY2 JPMORGAN CHASE & CO 4.023 12/05/2024 12/05/2023 A-A1 2,000,000.00 2,207,640.00 2.82 1,970,657.96 2.62 0.90 Issuer total 2,000,000.00 2,207,640.00 2.82 1,970,657.96 2.62 0.90 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 2.55 1,888,428.43 2.51 0.43 Issuer total 1,900,000.00 1,995,436.00 2.55 1,888,428.43 2.51 0.43 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 2.56 1,866,606.66 2.49 1.03 Issuer total 1,900,000.00 1,999,636.00 2.56 1,866,606.66 2.49 1.03 Chevron Corp 166764BW9 CHEVRON CORP 1.554% 1.554 05/11/2025 04/11/2025 AA-Aa2 1,800,000.00 1,715,436.00 2.19 1,676,021.45 2.23 2.25 Issuer total 1,800,000.00 1,715,436.00 2.19 1,676,021.45 2.23 2.25 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 1.90 1,380,633.21 1.84 0.99 Issuer total 1,400,000.00 1,484,224.00 1.90 1,380,633.21 1.84 0.99 15 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31 , 2022 N ... g,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares 0 cost hist cost value mkt value dur (yrs) Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.31 995,718.18 1.33 0.20 Issuer total 1,000,000.00 1,021,370.00 1.31 995,718.18 1.33 0.20 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 1.30 993,752.88 1.32 0.28 Issuer total 1,000,000.00 1,015,270.00 1.30 993,752.88 1.32 0.28 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aaa 1,000,000.00 1,007,920.00 1.29 991 ,991.64 1.32 0.33 Issuer total 1,000,000.00 1,007,920.00 1.29 991,991.64 1.32 0.33 Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.37 984,083.58 1.31 1.12 Issuer total 1,000,000.00 1,070,370.00 1.37 984,083.58 1.31 1.12 John Deere Capital Corp 24422ETC3 JOHN DEERE CAPITAL 3.400 09/11/2025 A A2 1,000,000.00 989,920.00 1.27 968,521 .63 1.29 2.50 Issuer total 1,000,000.00 989,920.00 1.27 968,521 .63 1.29 2.50 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.30 963,812.31 1.28 1.43 Issuer total 1,000,000.00 1,012,410.00 1.30 963,812.31 1.28 1.43 Cash and Cash Equivalents INVESTED CASH 0.000 202,254.50 202,254.50 0.00 202,254.50 0.27 0.00 Issuer total 202,254.50 202,254.50 0.00 202,254.50 0.27 0.00 ~i:i(~ - 16 February 21, 2023, Item #3 SECURITIES PURCHASED For the period December 1, 2022 -December 31, 2022 N N g_cusip Description/ Broker Trade date Coupon w · Settle date 0 Government Bonds 9128283F5 USA TREASURY 2.25% 15NOV2027 GOLDMAN, SACHS AND CO. Total Government Bonds 12/13/2022 12/14/2022 2.250 Maturity/ Call date 11/15/2027 Par value or shares 1,100,000.00 1,100,000.00 Unit cost 93.68 Principal cost (1,030,523.22) (1,030,523.22) CITY OF POWAY Accrued interest (1,982.73) (1,982.73) 17 February 21, 2023, Item #3 N w SECURITIES SOLD AND MATURED For the period December 1, 2022 -December 31, 2022 g_ Cu sip Description / Broker Trade date Coupon Maturity/ Par value or Historical cost w Settle date Call date shares 0 Government Agencies 31331K3A6 FEDERAL FARM CR BKS CONS SYSTEMWIDE BOS 2.71 % 12-13-2022 Total (Government Agencies) ·•.lll ... ll.J.~ 12/13/2022 2.710 (1,000,000.00) 1,028,921.06 12/13/2022 (1 ,000,000.00) 1,028,921.06 Amortized cost at sale or maturity 1,000,000.00 1,000,000.00 Price 0.00 Fair value at sale or maturity 1,000,000.00 1,000,000.00 CITY OF POWAY Realized gain (loss) 0.00 0.00 Accrued interest sold 0.00 0.00 16 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N .i:,. g,cusip 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 0.00 214.83 214.83 ----Total Cash 0.00 0.00 0.00 214.83 214.83 -- Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 (227.42) 0.00 1,602.25 2,066.67 12,000.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 1,955.36 2,066.67 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (5,483.46) 0.00 3,393.15 7,183.82 0.00 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 06FEB23) (510.03) 0.00 342.05 2,368.05 0.00 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 11 APR25) 2,344.66 0.00 (6,594.90) 2,408.70 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1,411.16) 0.00 (4,989.46) 3,121.53 0.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1,773.14) 0.00 (76.86) 4,400.28 0.00 459200JY8 IBM CORP 3% 15MA Y2024 (4,325.91) 0.00 (5,006.29) 5,941.67 0.00 24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11SEP2025 276.67 0.00 (6,565.66) 2,927.78 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541.99) 0.00 (5,287.54) 6,928.50 40,230.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) (2,126.30) 0.00 2,358.77 5,726.39 33,250.00 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 OJAN2023 (31.49) 0.00 3,493.78 4,520.83 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1,942.22) 0.00 (3,087.94) 5,521.87 0.00 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 06FEB23) (365.61) 0.00 1,824.05 2,195.84 0.00 -- Total Corporate Bonds (21,292.75) 0.00 (16,639.24) 57,378.60 85,480.00 Government Agencies 3135GOV75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 (238.66) 3,013.89 0.00 19 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N u, ~Cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Agencies 3135GOV34 FANNIE MAE 2.5% 05FEB2024 (1,858.86) 0.00 1,987.18 3,767.37 0.00 3135GOU43 FANNIE MAE 2.875% 12SEP2023 (779.96) 0.00 2,045.45 2,475.69 0.00 31331K3A6 FEDERAL FARM CR BKS CONS SYSTEMWIDE BDS 2.71% 12-13-2022 (302.47) 0.00 662.94 978.61 13,550.00 3133EMF31 FEDERAL FARM CREDIT BANK 0.125% 02JUN2023 2,114.86 0.00 9,452.52 215.28 1,250.00 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 100.59 0.00 3,841.00 269.10 0.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 11JAN23) 35.77 0.00 5,127.50 516.67 0.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 170CT2023 46.18 0.00 5,617.58 3,203.34 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.61) 0.00 1,670.30 1,937.50 0.00 3133EJFKO FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.64) 0.00 1,597.83 2,281 .95 0.00 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 (2,151.46) 0.00 1,539.40 2,583 .33 15,000.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,889.99) 0.00 374.25 6,515.60 0.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 (CALLABLE 1 OFEB23) 0.00 0.00 1,762.81 430.55 0.00 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 5,008.27 0.00 (2,53895) 2,475.69 14,375.00 3130AJ7E3 FEDERAL HOME LOAN BANK 1.375% 17FEB2023 (300.88) 0.00 5,465.98 2,368.05 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.2S% 08DEC2023 (278.99) 0.00 1,990.67 1,937.50 11,250.00 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027 114.23 0.00 (7,944.90) 7,104.17 0.00 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 (1,440.25) 0.00 5,349.82 4,736.11 27,500.00 ------ Total Government Agencies (4,928.95) 0.00 37,762.72 46,810.40 82,925.00 Government Bonds 91282CBEO USA TREASURY 0.125% 15JAN2024 362.02 0.00 5,640.63 200.06 0.00 20 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N °' g,cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Bonds 91282CCN9 USA TREASURY 0.125% 31JUL2023 686.74 0.00 4,925.79 136.89 0.00 91282CDA6 USA TREASURY 0.25% 30SEP2023 702.85 0.00 4,863.29 319.37 0.00 91282CAJO USA TREASURY 0.25% 31 AUG2025 3,213.09 0.00 382.82 299.73 0.00 91282CAT8 USA TREASURY 0.25% 31 OCT2025 3,047.93 0.00 (1 ,406.26) 256.91 0.00 912828ZL7 USA TREASURY 0.375% 30APR2025 5,410.37 0.00 1,359.40 931.29 0.00 91282CBC4 USA TREASURY 0.375% 31 DEC2025 4,819.67 0.00 (1,527.34) 726.56 0.00 91282CBT7 USA TREASURY 0.7S% 31 MAR2026 3,785.20 0.00 (2,679.68) 894.23 0.00 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 5,316.58 0.00 (6,517.59) 2,474.52 0.00 912828201 USA TREASURY 1.375% 31 AUG2023 677.93 0.00 4,843.76 2,354.98 0.00 912828YH7 USA TREASURY 1.5% 30SEP2024 (873.87) 0.00 1,445.31 1,277.47 0.00 912828YM6 USA TREASURY 1.5% 31 OCT2024 (879.86) 0.00 601.56 1,412.99 0.00 912828T91 USA TREASURY 1.625% 31 OCT2023 (1,683.88) 0.00 4,562.50 2,226.52 0.00 912828YYO USA TREASURY 1.75% 31 DEC2024 (1,111.42) 0.00 273.43 1,434.43 0.00 912828X70 USA TREASURY 2% 30APR2024 (665.76) 0.00 1,875.00 3,425.41 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (499.10) 0.00 4,378.89 3,438.53 0.00 9128283F5 USA TREASURY 2.25% 15NOV2027 695.54 0.00 (15,128.69) 1,162.30 0.00 9128285P1 USA TREASURY 2.875% 30NOV2023 (2,186.80) 0.00 2,492.19 2,693.34 0.00 ~ ----- Total Government Bonds 20,817.23 0.00 10,385.01 25,665.53 0.00 ll!tffliii..111[•_ 21 February 21, 2023, Item #3 TRANSACTION REPORT CITY OF POWAY For the period December 1 , 2022 -December 31 , 2022 "' ~ g, Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wsettle date shares gain(loss) 0 12/02/2022 3133EMF31 Income Government Agencies FEDERAL FARM CREDIT BANK 06/02/2023 2,000,000.00 0.00 0.00 1,250.00 1,250.00 12/02/2022 12/05/2022 46647PAY2 Income Corporate Bonds JPMORGAN CHASE & CO 12/05/2024 2,000,000.00 0.00 0.00 40,230.00 40,230.00 12/05/2022 12/06/2022 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 12/06/2022 12/08/2022 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 12/08/2022 12/08/2022 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 12/08/2022 12/13/2022 31331 K3A6 Income Government Agencies FEDERAL FARM CR BKS CONS 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 12/13/2022 12/13/2022 31331 K3A6 Capital Change Government Agencies FEDERAL FARM CR BKS CONS 12/13/2022 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/13/2022 12/13/2022 9128283F5 Bought Government Bonds USA TREASURY 2.25% 11/15/2027 1 , 100,000.00 0.00 (1 ,030,523.22) (1,982.73) (1,032,505.95) 12/14/2022 12/19/2022 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 12/19/2022 12/21/2022 3130AQF65 Income Government Agencies FEDERAL HOME LOAN BANK 12/21/2026 2,300,000.00 0.00 0.00 14,375.00 14,375.00 12/21/2022 12/28/2022 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 12/28/2022 12/31/2022 Income Cash and Cash Equivalents Cash 0.00 0.00 0.00 214.83 214.83 ---------·· ---------- 22 February 21, 2023, Item #3 ADDITIONAL INFORMATION As of December 31, 2022 CITY OF POWAY 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 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 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 equ?I 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.5 Treasury and U.5 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 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 February 21, 2023, Item #3 N 1.0 ADDITIONAL INFORMATION As of December 31, 2022 CITY OF POWAY g,1nsight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. w Olnsight is a group of wholly owned subsidiaries ofThe Bank of New York Mellon Corporation. BNY Mellon is the corporate brand ofThe Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures ofThe Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations ofThe 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. © 2022 Insight Investment. All rights reserved. 24 February 21, 2023, Item #3 w 0 0 .... w 0 )> • ~ City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash December 2022 Part I Investments ft Cash with Fiscal A.!l,ents Settlement Yield to Days to % of Total Face · INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Book Value 1stAmGov'tObligationsMoneyMktFd 12/31/22 I Various! 1j 100.00%! T ,---,---_ $1,2_96,665 . 95 J -,__:::-."':".':"'-=-' 1-===---: -~~--: I r-------' I I J I I --1.----I ---I ___ __, Average/Total -----1 Various! -1! 100.00%1 $1,296,665.95 1 $1 ,296,665.95 j Paying Agent or Uninvested Cash &. DITs ·------u I -$0.00 I Total Investments and Cash with Fiscal Agent $1 ,296,665.95 ) Market I Unrealized Value Gain(L~s) $0.00 $1 ,296,665.95 j $0.00 ~ -t'art II )> n ~ ~ m z ~ C Non-Managed Investments INVESTMENT DESCRIPTION County Pool Average/Total General, Payroll ft Petty Cash 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 Settlement Yield to Date Maturity 12/31/22 1 2.97%1 I l , 2.97%1 Days to % of Total Maturity Investment 1 I 100.00%1 I -I N/A I 100.00%1 - Part Ill ~ =,, Face Book Value Value $150,325.28 1 $150,325.28 1 I I $150,325.28 1 $150,325.28 1 ------ Book Value $5,720,764.35 $20,000.00 $10,000.00 $0.00 $20,000.00 $8,600.00 $5,779,364.35 Market Unrealized Value Gain(Loss) $143,248.oo 1 ($7,077.28)1 I -I $143,248.00 j -($7,077.28)1 February 21, 2023, Item #3