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HomeMy WebLinkAboutFin City Quarterly Investment Report____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: August 19, 2024 Disposition: Accepted report Agenda Item No: 4.a Meeting Date: August 19, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Paul Navazio, Finance Director City Manager Approval: _________ TOPIC: CITY QUARTERLY INVESTMENT REPORT SUBJECT: ACCEPTANCE OF CITY OF SAN RAFAEL QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30, 2024 RECOMMENDATION: Accept the investment report for the quarter ending June 30, 2024, as presented. BACKGROUND: Under the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on June 17, 2024, staff provides the City Council with a quarterly report on the City's investment activities and liquidity. The report includes the cost of each investment, the interest rates (yield), maturity dates, and market value. Separate reports are prepared for the City and the Successor Agency to the San Rafael Redevelopment Agency. The City invests some of its pooled funds in the Local Agency Investment Fund (LAIF), a State-run investment pool. Beginning in March 2014, the City incorporated an investment strategy that added purchases of securities outside of LAIF with the assistance of an investment advisor. The City’s current investment advisor is Chandler Asset Management. ANALYSIS: As of June 30, 2024, the City’s Treasury consisted of investments with a total market value of $107,899,447 consisting of $59,849,234 in the City’s primary Local Agency Investment Fund (LAIF) account and $48,050,214 in externally managed investments (which includes $986,700 of Pt. San Pedro Assessment District bonds). An additional $14,689,101 represents cash balances in the City’s various operating bank accounts, including Westamerica Bank ($13,908,965), Bank of the Marin ($446,262), and Bank of Montreal ($333,874). As of June 30, 2024, the weighted-average yield on the portfolio was 4.38% which results from an effective yield of 4.52% for the City’s investments in the Local Agency Investment Fund and a yield of 4.20% for the externally managed investments. The overall return on the total portfolio for the quarter ending June 30, 2024, was 5.02%, with a weighted average maturity of 0.96 years, and compares SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 favorably to the benchmark (1-3 Year Treasury Index) of 4.81%. This favorable variance is due to the improved interest rate environment over the past year, as new higher-yield investments are being made, replacing lower-yield investments, primarily upon maturity. The City’s investment portfolio maintains strong diversification and is experiencing growth in interest income due to higher market rates. All investments comply with the City’s investment policy and California Government Code. Economic Outlook: At their June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The FOMC's latest projections now suggest only one interest rate cut in 2024, with four more cuts expected in 2025 and a slightly higher long-term neutral rate. The City will continue to watch market trends and refine its investment strategy, as appropriate, to improve the investment portfolio’s performance while ensuring its primary goals of preservation of principal, liquidity, and yield. The attachments include: 1.Quarterly Investment Portfolio Report 2.Historical Activity by Quarter summarizing the City’s investments 3. The City’s Investment Report from Chandler Asset Management for the period ending June 30, 2024, which includes a listing of all holdings and transaction activity details for the reporting period FISCAL IMPACT: No financial impact occurs by adopting the report. The City continues to meet the priority investment principles - safety, liquidity, yield, and diversification. The portfolio is still conservatively invested, and sufficient liquidity exists to meet daily operating and capital project requirements for the next six months. As defined for this report, operating funds exclude cash held with fiscal agents to pay bond principal and interest. RECOMMENDED ACTION: Accept the investment report for the quarter ending June 30, 2024, as presented. Microsoft Teams ATTACHMENTS: Attachments: 1.Attachment 1: Quarterly Investment Portfolio Report 2.Attachment 2: Historical Activity by Quarter Report 3.Attachment 3: Chandler Asset Management – Investment Report: Period Ending June 30, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD. Paul Navazio Finance Director %Yield LAIF 59,849,234$ 100.0% 4.52% Total Internally Managed 59,849,234$ 55.8% Weighted Average Yield 4.52% Days Effective Average Duration - Internal 1 Weighted Average Maturity - Internal 1 % Yield Money Market Fund 59,761$ 0.1% 4.89% Treasury Securities 16,576,763$ 35.0% 3.40% Instrumentality Securities 7,976,068$ 16.8% 4.22% Corporate Notes 11,494,546$ 24.2% 4.77% Asset-Backed 5,524,308$ 11.6% 4.85% Cash (Receivable)38,820$ 0.1% 0.00% Commercial Paper 727,857$ 1.5% 5.43% CMO 3,737,626$ 7.9% 4.44% Supranational 305,116$ 0.6% 4.53% Pt. San Pedro Assessment District 986,700$ 2.1% 5.25% Total Externally Managed 47,427,565$ 44.2% Weighted Average Yield 4.20% Years Effective Average Duration - External 1.83 Weighted Average Maturity - External 2.20 Total Portfolio Assets % Yield LAIF 59,849,234$ 55.8% 4.52% Money Market Fund 59,761$ 0.1% 4.89% Treasury Securities 16,576,763$ 15.5% 3.40% Instrumentality Securities 7,976,068$ 7.4% 4.22% Corporate Notes 11,494,546$ 10.7% 4.77% Asset-Backed 5,524,308$ 5.1% 4.85% Cash (Receivable)38,820$ 0.0% 0.00% Commercial Paper 727,857$ 0.7% 5.43% CMO 3,737,626$ 3.5% 4.44% Supranational 305,116$ 0.3% 4.53% Pt. San Pedro Assessment District 986,700$ 0.9% 5.25% Total Portfolio Assets 107,276,799$ 100.0% Weighted Average Yield 4.38% Years Effective Average Duration - Total 0.79 Weighted Average Maturity - Total 0.96 Based on Market Values June 30, 2024 City of San Rafael Quarterly Investment Portfolio Report Externally Managed Assets Internally Managed Assets LAIF 100% Money Market Fund 0.1% Treasury Securities 35.0% Instrumentality Securities 16.8% Corporate Notes 24.2% Asset-Backed 11.6% Cash (Receivable) 0.1% Commercial Paper 1.5%CMO 7.9% Supranational 0.6%Pt. San Pedro Assessment District 2.1% LAIF 55.8% Money Market Fund 0.1% Treasury Securities 15.5% Instrumentality Securities 7.4% Corporate Notes 10.7% Asset-Backed 5.1% Cash (Receivable) 0.0% Commercial Paper 0.7% CMO 3.5% Supranational 0.3% Pt. San Pedro Assessment District 0.9% Attachment 1 Internally Managed Assets %Return %Return %Return %Return LAIF 59,849,234$ 100.0% 4.52% 53,463,594$ 100.0% 4.27% 53,749,175$ 100.0% 3.95% 51,292,954$ 100.0% 3.61% Total Internally Managed 59,849,234$ 55.8%53,463,594$ 52.9%53,749,175$ 53.5%51,292,954$ 52.9% Weighted Average Yield 4.52%4.27%3.95%3.61% Externally Managed Assets %Return %Return %Return %Return Cash 38,820$ 0.1%0.00%608,112$ 0.0%0.00%144,864$ 0.3%4.95%74,981$ 0.2%4.95% Commercial Paper 727,857$ 1.5%5.43%-$ 0.0%0.00%-$ 0.0%0.00%-$ 0.0%0.00% Money Market Fund 59,761$ 0.1% 4.89% 287,457$ 0.6% 4.89%-$ 0.0% 0.00%-$ 0.0% 0.00% Treasury Securities 16,576,763$ 34.5% 3.40% 13,932,479$ 29.3% 2.79% 14,202,153$ 31.1% 2.62% 14,031,449$ 30.8% 2.14% Instrumentality Securities 7,976,068$ 16.6% 4.22% 12,165,418$ 25.6% 2.91% 12,158,514$ 26.7% 2.92% 11,497,923$ 25.2% 2.86% Corporate Notes 11,494,546$ 23.9% 4.77% 10,855,380$ 22.8% 4.45% 10,338,726$ 22.7% 3.79% 11,108,352$ 24.3% 3.48% Asset Backed 5,524,308$ 11.5% 4.85% 5,253,902$ 11.0% 4.82% 4,980,172$ 10.9% 5.03% 4,112,279$ 9.0% 4.97% Negotiable CD -$ 0.0% 0.00%-$ 0.0% 0.00% 374,910$ 0.8% 5.34% 374,472$ 0.8% 5.34% Collateralized Mortgage Obligations (CMO)3,737,626$ 7.8% 4.44% 3,212,043$ 6.7% 4.36% 3,232,602$ 7.1% 4.57% 3,135,264$ 6.9% 4.57% Supranational 305,116$ 0.6% 4.53% 306,643$ 0.6% 4.53% 311,379$ 0.7% 4.53% 301,398$ 0.7% 4.53% Municipal/Assessment District 986,700$ 2.1% 5.25% 986,700$ 2.1% 5.25% 986,700$ 2.2% 5.25% 986,700$ 2.2% 5.25% Total Externally Managed 47,427,565$ 44.2%47,608,135$ 47.1%46,730,020$ 46.5%45,622,818$ 47.1% Weighted Average Yield 4.20%3.57%3.53%3.18% Years Years Years Years Effective Average Duration - External 1.83 1.71 1.71 1.63 Weighted Average Maturity - External 2.20 2.13 2.13 1.92 Total Portfolio Assets % Return % Return % Return % Return LAIF 59,849,234$ 55.8% 4.52% 53,463,594$ 55.2% 4.27% 53,749,175$ 53.5% 3.95% 51,292,954$ 52.9% 3.61% Cash 38,820$ 0.0% 0.00% 608,112$ 0.6% 0.00% 144,864$ 0.1% 4.95% 74,981$ 0.1% 4.95% Commercial Paper 727,857$ 0.7% 5.43%-$ 0.0% 0.00%-$ 0.0% 0.00%-$ 0.0% 0.00% Money Market Fund 59,761$ 0.1% 4.89% 287,457$ 0.3% 4.89%-$ 0.0% 0.00%-$ 0.0% 0.00% Treasury Securities 16,576,763$ 15.5% 3.40% 13,932,479$ 14.4% 2.79% 14,202,153$ 14.1% 2.62% 14,031,449$ 14.5% 2.14% Instrumentality Securities 7,976,068$ 7.4% 4.22% 12,165,418$ 12.6% 2.91% 12,158,514$ 12.1% 2.92% 11,497,923$ 11.9% 2.86% Corporate Notes 11,494,546$ 10.7% 4.77% 10,855,380$ 11.2% 4.45% 10,338,726$ 10.3% 3.79% 11,108,352$ 11.5% 3.48% Asset Backed 5,524,308$ 5.1% 4.85% 5,253,902$ 5.4% 4.82% 4,980,172$ 5.0% 5.03% 4,112,279$ 4.2% 4.97% Negotiable CD -$ 0.0% 0.00%-$ 0.0% 0.00% 374,910$ 0.4% 5.34% 374,472$ 0.4% 5.34% Collateralized Mortgage Obligations (CMO)3,737,626$ 3.5% 4.44% 3,212,043$ 3.3% 4.36% 3,232,602$ 3.2% 4.57% 3,135,264$ 3.2% 4.57% Supranational 305,116$ 0.3% 4.53% 306,643$ 0.3% 4.53% 311,379$ 0.3% 4.53% 301,398$ 0.3% 4.53% Municipal/Assessment District 986,700$ 0.9% 5.25% 986,700$ 1.0% 5.25% 986,700$ 1.0% 5.25% 986,700$ 1.0% 5.25% Total Portfolio Assets 107,276,798$ 100.0%101,071,729$ 104%100,479,195$ 100.0%96,915,772$ 100% Weighted Average Yield 4.38%3.94%3.72%3.41% Years Years Years Years Effective Average Duration - Total 0.79 0.81 0.79 0.81 Weighted Average Maturity - Total 0.96 0.99 0.98 0.99 City of San Rafael Historical Activity-By Quarter March 31, 2024 December 31, 2023 September 30, 2023June 30, 2024 Attachment 2 INVESTMENT REPORT City of San Rafael | Account #11045 | As of June 30, 2024 CHANDLER ASSET MANAGEMENT | chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. Attachment 3ment 3 ,,,a CHANDLER "'--ASSET MANAGEMENT TABLE OF CONTENTS City of San Rafael | Account #11045 | As of June 30, 2024 ECONOMIC UPDATE ACCOUNT PROFILE CONSOLIDATED INFORMATION PORTFOLIO HOLDINGS TRANSACTIONS 1 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT ECONOMIC UPDATE 2 ,,,a CHANDLER "'--ASSET MANAGEMENT Economic Update ▪ ▪ ▪ Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth. Inflationary trends are subsiding,but core levels remain above the &ĞĚ͛Ɛtarget. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024. As expected at the June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The FOMC's latest projections now suggest only one interest rate cut in 2024,with four more cuts expected in 2025 and a slightly higher long- termneutral rate. Additionally, the Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. The US Treasury yield curve shifted lower in June as economic data moderated. The 2-year Treasury yield fell 12 basis points to 4.76%, the 5-year Treasury dropped 13 basis points to 4.38%, and the 10-year Treasury yield declined 10 basis points to 4.40%. The inversion between the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at June month-end versus -37 basis points at May month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -106 basis points. The inversion between 3-month and 10-year Treasuries widened to -96 basis points in June from -91 basis points in May. 3 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Employment -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3-month average (000's) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The U.S. economy added 206,000 jobs in June, remaining ahead of consensus expectations of 190,000 jobs. The gains were broad based, with government, health care, and social assistance posting the largest gains. The three-month moving average and six-month moving average payrolls have weakened from the first quarter to 177,000 and 222,000 respectively. The unemployment rate edged up to 4.1%in June, and the labor participation rate inched up to 62.6%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons held steady at 7.4%. Average hourly earnings rose 3.9% year-over-year in June, down from 4.1% year-over-year in May. The labor markets continue to show signs of cooling in line with the Federal Reserve’s view that there has been “substantial”progress towards better balance in the labor market between demand and supply for workers. Source: US Department of Labor Source: US Department of Labor 4 I I -1-------------- .. I \ I \ I \ ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Job Openings & Labor Turnover Survey 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) increased to 8.140 million job openings in May from a downwardly revised 7.919 million in April. Job openings still represent a healthy ratio of around 1.2 jobs for each unemployed individual. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. Source: US Department of Labor 5 - ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Inflation 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target YO Y ( % ) C h a n g e In June, the Consumer Price Index (CPI) declined 0.1% month-over-month and rose 3.0% year-over-year, reflecting broad-based cost reductions. The month-over-month drop was the first deflationary data point since the pandemic. The Core CPI, which excludes volatile food and energy components, was up just 0.1% month-over-month and 3.3% year-over-year in June, down from 3.4%in May and lower than expected. The Personal Consumption Expenditures (PCE) Index decelerated in May as expected. The headline PCE deflator was unchanged in May from April versus up 0.3%in the prior month. Year-over-year, the PCE deflator rose 2.6%. The Core PCE deflator (the Fed’s preferred gauge) increased 0.1%in May from the prior month versus up 0.3%in April. The Core PCE deflator also rose 2.6% year- over-year, still above the Fed’s 2%inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services. Source: US Department of Labor Source: US Department of Commerce 6 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Consumer -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e May Retail Sales increased below expectations to +0.1% after a downwardly revised -0.2%, pointing to a fatigued consumer.On a year- over-year basis, Retail Sales growth further slowed to +2.3%in May. Nonstore retailers were a bright spot in May,up 0.8% following a 1.8% decline in April. The Conference Board’s Consumer Confidence Index fell to 100.4 in June from 101.3 in May. While the present situation component rose marginally, consumers are less optimistic about future expectations for business conditions and potential income increases. While the consumer has been resilient, consumption has begun to moderate in the face of higher interest rates, rising credit card balances, and growing delinquencies. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) 7 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Leading Indicators of Economic Activity -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI) declined for the third consecutive month to -0.5%in May following a -0.6% decline in April. The index declined 5.3% year-over-year. The primary drivers for the negative print were a decline in new orders, weak consumer sentiment about future business conditions, and lower building permits. The Chicago Fed National Activity Index (CFNAI) increased to 0.18 in May from -0.26 in April, surpassing consensus expectations. However, the three-month moving average fell to -0.09 in May from-0.05 in April, indicating below-trend growth expectations for the economy. Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 ■ ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT ■ Housing 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts May Housing Starts declined 5.5% month-over-month from April to 1.352 million units. This equates to -19.3% less starts compared to May 2023.Single family starts were 5.2% lower month-over-month due to higher mortgage interest rates, lack of existing unit supply and home affordability. Multi-family home starts declined 10.3% month-over-month. The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.92%in June from 7.06%in May. According to the Case-Shiller 20-City Home Price Index, housing prices rose a higher-than-expected 7.2% year-over-year in April versus March's upwardly revised 7.5% increase. Tight inventories and higher mortgage rates continue to impact affordability. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case -Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e 9 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Survey Based Measures 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM) Manufacturing index edged down to 48.5 in June from 48.7 in May. While new orders picked up,prices paid for materials fell the most in over a year. The ISM Services Index returned to contraction declining to 48.8 in June, from 53.8 in the previous month. Although the level of the decline was a surprise, the trend in the Services PMI, which applies to a larger share of US economic output, has been steadily decreasing. Source: Institute for Supply Management 10 ,--, I \ ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT I----------------------------------- Gross Domestic Product (GDP) Components of GDP 6/23 9/23 12/23 3/24 0.6% 2.1% 2.2% 1.0% 0.9% 1.7% 0.2% 0.8% 0.0% 0.0% 0.3% -0.7% 0.1% 0.5% 0.2% 0.0% 0.5% 0.5% 0.6% 0.3% 2.1% 4.9% 3.4% 1.4% State and Local (Consumption and Gross Investment) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce The third and final estimate of first quarter GDP came in as expected with growth up 1.4%, a small upward revision from 1.3%in the second estimate. Notably, the personal consumption expenditures component was revised down substantially to +1.5%in the final estimate from +2.0%in the second estimate. Weaker growth in consumer spending was offset by upward revisions in other major categories, particularly gross fixed investment. The consensus projection calls for 2.0% growth in the second quarter and 2.3% growth for the full year 2024. 11 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Federal Reserve Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As expected at the June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The FOMC's latest projections now suggest only one interest rate cut in 2024, with four more cuts expected in 2025 and a slightly higher long- term neutral rate. The Fed’s inflation projections ticked up marginally, while unemployment and GDP growth forecasts remained steady. Additionally, the Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.7T to approximately $7.3T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) 12 ■ ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT ■ Bond Yields Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Jun-24 Mar-24 Jun-23 Yi e l d ( % ) At the end of June, the 2-year Treasury yield was 15 basis points lower, and the 10-Year Treasury yield was 56 basis points higher, year- over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at June month-end versus -37 basis points at May month-end. The inversion has occurred since July 2022 and remains historically long. The average historical spread (since 2003)is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -96 basis points in June from -91 basis points in May. 13 .. , . .. . ...... ~ . ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT ---I ----------------i.__·_·_··_·_· ___ _.r ACCOUNT PROFILE 14 ,,,a CHANDLER "'--ASSET MANAGEMENT OBJECTIVES City of San Rafael | Account #11045 | As of June 30, 2024 Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index. In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 15 Investment Objectives Chandler Asset Management Performance Objective Strategy ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT STATEMENT OF COMPLIANCE San Rafael Cons | Account #11047 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV; ABS, CMO, & MBS)20.0 8.7 Compliant Max Maturity (Years)5.0 5.0 Compliant Min Rating (AA- by 1; A- Issuer by 1)0.0 0.0 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; ABS, CMO & MBS)20.0 8.7 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1; A- Issuer by 1)0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV)40.0 0.0 Compliant Max Amount Issuer (MV)0.0 Compliant Max Maturity (Days)180 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max % (MV; CDs & NCDs)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant COMMERCIAL PAPER Max % (MV)25.0 0.7 Compliant Max % Issuer (MV)5.0 0.7 Compliant Max Maturity (Days)270 200 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV)30.0 10.8 Compliant Max % Issuer (MV)5.0 0.7 Compliant Max Maturity (Years)5 4 Compliant 16 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT STATEMENT OF COMPLIANCE San Rafael Cons | Account #11047 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes Min Rating (A- by 1)0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/ TD) Max % (MV; CDs & NCDs)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant FEDERAL AGENCIES Max % (MV)100.0 7.5 Compliant Max Maturity (Years)5 3 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV)75.0 59.8 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)10.0 0.1 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON-AGENCY) Max % (MV)20.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AA- by 1; A- Issuer by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max Maturity (Years)5 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV; CDs & NCDs)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A-1 or A- by 1)0.0 0.0 Compliant REPURCHASE AGREEMENTS Max Maturity (Years)1.0 0.0 Compliant SRI PROHIBITED INVESTMENTS Prohibited Investments - Energy 0.0 1 Not Compliant Inherited Security: Chevron; Purchased by prior manager 17 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT STATEMENT OF COMPLIANCE San Rafael Cons | Account #11047 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes SUPRANATIONAL OBLIGATIONS Max % (MV)15.0 0.3 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 15.5 Compliant Max Maturity (Years)5 4 Compliant 18 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT PORTFOLIO CHARACTERISTICS City of San Rafael | Account #11045 | As of June 30, 2024 Benchmark*6/30/2024 Portfolio 3/31/2024 Portfolio Average Maturity (yrs)1.84 2.20 2.11 Average Modified Duration 1.75 1.83 2.09 Average Purchase Yield 4.17%3.57% Average Market Yield 4.81%5.02%4.97% Average Quality**AA+AA AA Total Market Value 46,777,101 46,326,789 *Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT SECTOR DISTRIBUTION City of San Rafael | Account #11045 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 US Treasury 35.7%30.2% Corporate 24.8%23.6% Agency 17.2%26.4% ABS 11.9%11.4% Agency CMBS 8.0%7.0% Comm Paper 1.6%-- Supras 0.7%0.7% Money Mkt Fd 0.1%0.6% Cash 0.1%0.1% 20 50% 25 % 0% US Treasury Corpo r ate Agency ABS Agency CMBS ■ 06/30/2024 ■ 03/31/2024 Comm Paper Supras ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Money Mkt Fd Cash ISSUERS City of San Rafael | Account #11045 | As of June 30, 2024 Issuer Investment Type % Portfolio United States US Treasury 35.69% Federal Home Loan Banks Agency 12.21% FHLMC Agency CMBS 8.05% Farm Credit System Agency 3.35% American Express Credit Master Trust ABS 2.33% John Deere Owner Trust ABS 1.89% JPMorgan Chase & Co.Corporate 1.69% FNMA Agency 1.61% Bank of America Credit Card Trust ABS 1.59% Mitsubishi UFJ Financial Group, Inc.Comm Paper 1.57% Chevron Corporation Corporate 1.46% Toyota Auto Receivables Owner Trust ABS 1.39% Honda Auto Receivables Owner Trust ABS 1.34% Bank of Montreal Corporate 1.29% The Home Depot, Inc.Corporate 1.29% PACCAR Inc Corporate 1.28% Bank of America Corporation Corporate 1.25% The Toronto-Dominion Bank Corporate 1.24% Toyota Motor Corporation Corporate 1.24% Caterpillar Inc.Corporate 1.19% Cisco Systems, Inc.Corporate 1.18% National Rural Utilities Cooperative Corporate 1.18% Royal Bank of Canada Corporate 1.18% NextEra Energy, Inc.Corporate 1.17% Prologis, Inc.Corporate 1.14% State Street Corporation Corporate 1.13% Deere & Company Corporate 1.07% Chase Issuance Trust ABS 1.07% 21 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT ISSUERS City of San Rafael | Account #11045 | As of June 30, 2024 Issuer Investment Type % Portfolio Chubb Limited Corporate 1.04% Realty Income Corporation Corporate 1.02% Morgan Stanley Corporate 1.02% BMW Vehicle Lease Trust ABS 0.82% BNY Mellon Corp Corporate 0.75% Public Service Enterprise Group Inco Corporate 0.69% International Finance Corporation Supras 0.66% BMW Vehicle Owner Trust ABS 0.65% MERCEDES-BENZ AUTO RECEIVABLES TRUST ABS 0.56% Merck & Co., Inc.Corporate 0.27% Mercedes-Benz Auto Lease Trust ABS 0.26% U.S. Bancorp Money Mkt Fd 0.13% Cash Cash 0.08% TOTAL 100.00% 22 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT QUALITY DISTRIBUTION Rating 03/31/2024 06/30/2024 AAA 8.5%8.2% AA 65.2%62.5% A 21.0%22.2% NR 5.3%7.1% Rating 03/31/2024 06/30/2024 AAA 72.7%71.6% AA 1.5%1.5% A 21.0%23.4% NR 4.7%3.6% Rating 03/31/2024 06/30/2024 AAA 15.1%15.8% AA 66.8%63.0% A 7.9%9.2% NR 10.2%12.0% City of San Rafael | Account #11045 | As of June 30, 2024 S &P Rating Moody’s Rating Fitch Rating 23 75 % 100% 75 % 50% 50% 25 % 25 % 0% AAA AA A NR 0% AAA AA ■ 03/31/2024 ■ 06/30/2024 ■ 03/31/2024 75 % 50% 25 % A NR 0% ■ 06/30/2024 AAA ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT AA A NR ■ 03/31/2024 ■ 06/30/2024 DURATION DISTRIBUTION City of San Rafael | Account #11045 | As of June 30, 2024 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ 06/30/2024 6.1%4.4%11.7%33.5%30.5%13.4%0.4%0.0%0.0% 03/31/2024 14.5%6.4%8.1%26.7%25.8%16.4%1.1%0.0%0.0% 24 40% 30% 20% 10% 0% 0-.25 .25-.5 .5-1 1-2 ■ 06/30/2024 2-3 3-4 4-5 ■ 04/01/2024 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT 5-7 7+ 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN City of San Rafael 1.00%5.01%4.23% Benchmark 0.94%4.54%3.41% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. INVESTMENT PERFORMANCE City of San Rafael | Account #11045 | As of June 30, 2024 Total Rate of Return : Inception | 02/01/2023 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of San Rafael Benchmark 25 ■ ■ ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT PORTFOLIO CHARACTERISTICS San Rafael Reporting | Account #11046 | As of June 30, 2024 6/30/2024 Portfolio 3/31/2024 Portfolio Average Maturity (yrs)0.00 0.00 Average Modified Duration 0.00 0.00 Average Purchase Yield 4.51%4.27% Average Market Yield 4.51%4.27% Average Quality**AAA AAA Total Market Value 60,471,882 54,823,945 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 26 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT SECTOR DISTRIBUTION San Rafael Reporting | Account #11046 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 LAIF 99.0%99.0% Cash 1.0%1.0% 27 ■ 06/30/2024 ■ 03/31/2024 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT CONSOLIDATED INFORMATION 28 ,,,a CHANDLER "'--ASSET MANAGEMENT PORTFOLIO CHARACTERISTICS San Rafael Cons | Account #11047 | As of June 30, 2024 6/30/2024 Portfolio 3/31/2024 Portfolio Average Maturity (yrs)0.96 0.96 Average Modified Duration 0.79 0.84 Average Purchase Yield 4.37%3.95% Average Market Yield 4.73%4.59% Average Quality**AA AA Total Market Value 107,248,983 101,150,734 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT SECTOR DISTRIBUTION San Rafael Cons | Account #11047 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 LAIF 56.0%53.8% US Treasury 15.5%13.8% Corporate 10.8%10.8% Agency 7.5%12.1% ABS 5.2%5.2% Agency CMBS 3.5%3.2% Comm Paper 0.7%-- Cash 0.6%0.6% Supras 0.3%0.3% Money Mkt Fd 0.1%0.3% 30 75 % 50% 25 % 0% LAIF US Treasury Corporate Ag ency ABS ■ 06/30/2024 Agency CMBS Comm Paper Cash ■ 03/31/2024 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT Supra s Money Mkt Fd PORTFOLIO HOLDINGS 31 ,,,a CHANDLER "'--ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 05593AAC3 BMWLT 2023-1 A3 5.16 11/25/2025 383,148.45 --383,805.21 99.81 382,433.76 0.82%Aaa/AAA 1.41 5.32%383,348.47 5.69%329.51 (914.71)NA 0.42 43815JAC7 HAROT 2023-1 A3 5.04 04/21/2027 120,000.00 02/16/2023 119,977.70 99.58 119,498.56 0.26%Aaa/NA 2.81 5.09%119,984.95 5.40%168.00 (486.39)AAA 1.44 02582JJT8 AMXCA 2022-2 A 05/17/2027 600,000.00 04/17/2023 585,632.81 98.21 589,260.00 1.27%NA/AAA 0.87 4.65%591,827.04 5.54%904.00 (2,567.04)AAA 0.92 58768PAC8 MBART 2022-1 A3 5.21 08/16/2027 260,000.00 02/15/2023 261,340.63 99.81 259,500.18 0.56%Aaa/AAA 3.13 5.03%260,827.37 5.43%602.04 (1,327.20)NA 1.28 89239HAD0 TAOT 2022-D A3 5.3 09/15/2027 350,000.00 02/10/2023 354,128.91 99.85 349,470.38 0.75%Aaa/NA 3.21 4.86%352,577.87 5.42%824.44 (3,107.49)AAA 1.52 47800CAC0 JDOT 2023 A3 5.01 11/15/2027 880,000.00 --882,243.24 99.54 875,986.58 1.89%Aaa/NA 3.38 3.66%881,481.19 5.38%1,959.47 (5,494.61)AAA 1.52 58770JAD6 MBALT 2024-A A3 5.32 01/18/2028 120,000.00 05/17/2024 119,985.96 100.29 120,343.61 0.26%Aaa/NA 3.55 5.73%119,986.37 5.25%283.73 357.24 AAA 2.00 891941AD8 TAOT 2023-B A3 4.71 02/15/2028 300,000.00 10/03/2023 294,058.59 98.97 296,906.34 0.64%Aaa/NA 3.63 5.68%295,081.09 5.29%628.00 1,825.25 AAA 2.02 05592XAD2 BMWOT 2023-A A3 5.47 02/25/2028 90,000.00 07/11/2023 89,984.05 100.31 90,282.01 0.19%NA/AAA 3.66 5.47%89,987.36 5.39%82.05 294.65 AAA 1.96 05522RDF2 BACCT 2022-2 A 5.0 04/17/2028 440,000.00 04/18/2023 444,812.50 99.62 438,345.51 0.94%Aaa/AAA 3.80 4.59%442,866.06 5.37%977.78 (4,520.54)NA 1.29 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 500,000.00 12/07/2023 507,480.47 100.88 504,408.35 1.09%Aaa/NA 3.98 5.10%506,393.55 5.37%787.50 (1,985.20)AAA 2.28 02582JKD1 AMXCA 2023-3 A 5.23 09/15/2028 490,000.00 09/12/2023 489,978.10 100.33 491,621.26 1.06%NA/AAA 4.21 5.29%489,981.54 5.14%1,138.98 1,639.73 AAA 2.03 161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 495,000.00 09/07/2023 494,862.79 100.26 496,263.64 1.07%NR/AAA 4.21 5.17%494,884.57 5.11%1,135.20 1,379.07 AAA 2.03 05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 300,000.00 02/20/2024 301,125.00 99.93 299,780.04 0.65%Aaa/NA 2.38 4.88%300,978.46 5.08%664.00 (1,198.42)AAA 2.18 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 210,000.00 06/04/2024 209,968.10 100.10 210,207.46 0.45%Aaa/AAA 4.66 5.18%209,968.47 5.21%604.33 238.99 NA 2.10 32 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 5,539,384.06 99.75 5,524,307.67 11.90%Aaa/AAA 3.19 Total ABS 5,538,148.45 4.85%5,540,174.35 5.35%11,089.04 (15,866.68)AAA 1.61 AGENCY 3135G0V75 FEDERAL NATIONAL MORTGAGE 750,000.00 01/12/2023 753,426.75 99.99 749,917.18 1.61%Aaa/AA+0.01 ASSOCIATION 1.75 07/02/2024 1.44%750,006.38 3.71%6,526.04 (89.20)AA+0.01 3130AV7L0 FEDERAL HOME LOAN BANKS 5.0 1,100,000.00 03/02/2023 1,098,548.00 99.80 1,097,825.88 2.36%Aaa/AA+0.67 02/28/2025 5.07%1,099,517.33 5.30%18,791.67 (1,691.45)AA+0.63 3130AWER7 FEDERAL HOME LOAN BANKS 4.625 775,000.00 06/09/2023 774,356.75 99.49 771,055.25 1.66%Aaa/AA+0.93 06/06/2025 4.67%774,698.34 5.19%2,489.15 (3,643.09)AA+0.90 3130ATHT7 FEDERAL HOME LOAN BANKS 4.375 1,300,000.00 01/12/2023 1,303,159.00 99.43 1,292,558.07 2.78%Aaa/AA+1.20 09/12/2025 4.28%1,301,420.58 4.87%17,220.49 (8,862.50)AA+1.14 3130ATUC9 FEDERAL HOME LOAN BANKS 4.5 1,000,000.00 02/13/2023 1,004,720.00 99.42 994,201.50 2.14%Aaa/AA+1.45 12/12/2025 4.32%1,002,419.46 4.92%2,375.00 (8,217.96)AA+1.38 3130AWGR5 FEDERAL HOME LOAN BANKS 4.375 525,000.00 06/28/2023 524,165.25 99.16 520,609.58 1.12%Aaa/AA+1.95 06/12/2026 4.43%524,449.95 4.83%1,212.24 (3,840.37)AA+1.84 3133EPSW6 FEDERAL FARM CREDIT BANKS 560,000.00 08/09/2023 558,712.00 99.49 557,120.98 1.20%Aaa/AA+2.12 FUNDING CORP 4.5 08/14/2026 4.58%559,090.41 4.76%9,590.00 (1,969.42)AA+1.97 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 500,000.00 12/18/2023 505,325.00 99.90 499,497.44 1.08%Aaa/AA+2.38 11/17/2026 4.23%504,349.08 4.67%2,826.39 (4,851.65)AA+2.22 3133EP6K6 FEDERAL FARM CREDIT BANKS 1,000,000.00 04/24/2024 990,700.00 99.77 997,723.94 2.15%Aaa/AA+2.74 FUNDING CORP 4.5 03/26/2027 4.84%991,285.07 4.59%11,875.00 6,438.87 AA+2.52 3130ATUS4 FEDERAL HOME LOAN BANKS 4.25 500,000.00 05/15/2023 512,310.00 99.11 495,558.08 1.07%Aaa/AA+3.45 12/10/2027 3.66%509,271.22 4.53%1,239.58 (13,713.15)AA+3.16 8,025,422.75 99.58 7,976,067.89 17.17%Aaa/AA+1.54 Total Agency 8,010,000.00 4.22%8,016,507.81 4.78%74,145.56 (40,439.92)AA+1.44 AGENCY CMBS 3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 700,000.00 06/07/2023 674,542.97 96.36 674,509.01 1.45%Aaa/AA+2.57 4.53%682,087.97 4.98%2,000.83 (7,578.96)AAA 2.27 33 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 450,000.00 06/08/2023 4.39% 431,736.33 436,789.10 95.59 4.94% 430,172.87 1,216.13 0.93% (6,616.24) Aaa/AA+ AAA 2.82 2.55 3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 350,000.00 04/18/2024 5.06% 330,654.30 331,831.42 95.14 4.92% 332,982.72 909.13 0.72% 1,151.30 Aaa/AA+ AAA 2.99 2.66 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 240,000.00 06/08/2023 4.34% 229,940.63 232,498.77 95.27 4.87% 228,636.24 648.80 0.49% (3,862.53) Aaa/AA+ AA+ 3.15 2.86 3137FBU79 FHMS K-069 A2 3.187 09/25/2027 500,000.00 06/09/2023 4.41% 476,601.56 482,420.78 95.02 4.89% 475,080.60 1,327.92 1.02% (7,340.18) Aaa/AAA AA+ 3.24 2.89 3137FETN0 FHMS K-073 A2 3.35 01/25/2028 670,000.00 05/24/2023 4.27% 643,932.81 650,119.30 95.10 4.87% 637,185.34 1,870.42 1.37% (12,933.96) Aaa/AA+ AAA 3.57 3.18 3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 780,000.00 05/24/2023 4.24% 765,679.69 768,849.59 96.44 4.85% 752,234.18 2,502.50 1.62% (16,615.41) Aaa/AA+ AAA 3.90 3.46 3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 225,000.00 06/21/2024 4.65% 207,764.65 207,812.50 91.92 4.75% 206,824.95 544.31 0.45% (987.55) Aaa/AA+ AAA 4.99 4.45 Total Agency CMBS 3,915,000.00 4.44% 3,760,852.94 3,792,409.44 95.48 4.89% 3,737,625.91 11,020.03 8.05% (54,783.53) Aaa/AA+ AAA 3.33 2.97 CASH CCYUSD Receivable 38,820.41 -- 0.00% 38,820.41 38,820.41 1.00 0.00% 38,820.41 0.00 0.08% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 38,820.41 0.00% 38,820.41 38,820.41 1.00 0.00% 38,820.41 0.00 0.08% 0.00 Aaa/AAA AAA 0.00 0.00 COMMERCIAL PAPER 62479LNG6 MUFG Bank, Ltd. - New York Branch 01/16/2025 750,000.00 05/16/2024 5.43% 723,152.08 728,192.91 97.05 5.42% 727,857.00 0.00 1.57% (335.91) P-1/NR NA 0.55 0.53 Total Commercial Paper 750,000.00 5.43% 723,152.08 728,192.91 97.05 5.42% 727,857.00 0.00 1.57% (335.91) P-1/NR NA 0.55 0.53 CORPORATE 34 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 166764BW9 CHEVRON CORP 1.554 05/11/2025 700,000.00 01/12/2023 3.65% 667,380.00 687,949.79 96.81 5.38% 677,654.02 1,510.83 1.46% (10,295.77) Aa2/AA- NA 0.86 0.84 78016FZT4 ROYAL BANK OF CANADA 4.875 01/12/2026 550,000.00 07/19/2023 5.34% 544,197.50 546,413.47 99.26 5.39% 545,910.26 12,586.98 1.18% (503.21) A1/A AA- 1.54 1.42 46647PBH8 JPMORGAN CHASE & CO 2.005 03/13/2026 600,000.00 01/12/2023 3.26% 577,518.00 587,942.18 97.41 6.48% 584,463.51 3,609.00 1.26% (3,478.67) A1/A- AA- 1.70 0.68 69371RS49 PACCAR FINANCIAL CORP 4.45 03/30/2026 600,000.00 03/28/2023 4.47% 599,634.00 599,787.28 99.00 5.05% 593,990.15 6,749.17 1.28% (5,797.13) A1/A+ NA 1.75 1.64 00440EAV9 CHUBB INA HOLDINGS LLC 3.35 05/03/2026 500,000.00 03/09/2023 5.09% 475,060.00 485,409.99 96.76 5.21% 483,821.89 2,698.61 1.04% (1,588.11) A3/A A 1.84 1.75 341081GR2 FLORIDA POWER & LIGHT CO 4.45 05/15/2026 550,000.00 05/18/2023 4.65% 547,030.00 548,137.27 98.78 5.14% 543,311.46 3,127.36 1.17% (4,825.82) A1/A A+ 1.87 1.76 24422EWX3 JOHN DEERE CAPITAL CORP 4.75 06/08/2026 500,000.00 06/05/2023 4.72% 500,470.00 500,303.18 99.37 5.09% 496,840.48 1,517.36 1.07% (3,462.71) A1/A A+ 1.94 1.82 74340XBK6 PROLOGIS LP 3.25 10/01/2026 550,000.00 01/16/2024 4.53% 532,240.50 535,209.41 95.90 5.20% 527,477.12 4,468.75 1.14% (7,732.30) A3/A WR 2.25 2.12 89236TDR3 TOYOTA MOTOR CREDIT CORP 3.2 01/11/2027 600,000.00 01/22/2024 4.57% 577,398.00 580,716.30 95.71 5.02% 574,276.49 9,066.67 1.24% (6,439.81) A1/A+ A+ 2.53 2.35 63743HFM9 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP 4.8 02/05/2027 550,000.00 01/25/2024 4.75% 550,792.00 550,682.68 99.37 5.06% 546,550.11 10,706.67 1.18% (4,132.57) A2/A- A 2.60 2.37 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 550,000.00 -- 4.82% 549,759.00 549,786.43 99.73 4.91% 548,512.69 9,166.67 1.18% (1,273.74) A1/AA- NA 2.66 2.43 857477CL5 STATE STREET CORP 4.993 03/18/2027 525,000.00 03/13/2024 4.99% 525,000.00 525,000.00 99.88 5.04% 524,365.10 7,499.90 1.13% (634.90) A1/A AA- 2.71 2.48 06406RBQ9 BANK OF NEW YORK MELLON CORP 4.947 04/26/2027 350,000.00 04/19/2023 4.90% 350,497.00 350,301.10 99.39 5.68% 347,847.91 3,126.23 0.75% (2,453.19) A1/A AA- 2.82 1.71 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 550,000.00 05/13/2024 5.01% 549,818.50 549,826.30 100.06 4.97% 550,339.45 3,590.28 1.19% 513.15 A2/A A+ 2.87 2.63 74456QBS4 PUBLIC SERVICE ELECTRIC AND GAS CO 3.0 05/15/2027 337,000.00 04/18/2023 4.48% 318,673.94 324,075.56 94.77 4.97% 319,383.09 1,291.83 0.69% (4,692.48) A1/A WR 2.87 2.70 35 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 437076DB5 HOME DEPOT INC 4.875 06/25/2027 600,000.00 06/20/2024 4.92% 599,208.00 599,212.34 99.80 4.95% 598,777.43 487.50 1.29% (434.91) A2/A A 2.99 2.75 89115A2M3 TORONTO-DOMINION BANK 5.156 01/10/2028 575,000.00 07/12/2023 5.29% 571,929.50 572,590.00 99.88 5.19% 574,309.37 14,082.33 1.24% 1,719.37 A1/A AA- 3.53 3.11 756109AU8 REALTY INCOME CORP 3.65 01/15/2028 500,000.00 04/10/2023 4.87% 474,240.00 480,846.65 95.18 5.16% 475,903.16 8,415.28 1.02% (4,943.49) A3/A- WR 3.54 3.21 06051GGF0 BANK OF AMERICA CORP 3.824 01/20/2028 600,000.00 07/12/2023 5.53% 567,738.00 576,593.74 96.38 5.85% 578,301.42 10,261.07 1.25% 1,707.68 A1/A- AA- 3.56 2.35 46647PEA0 JPMORGAN CHASE & CO 5.04 01/23/2028 200,000.00 01/17/2024 4.99% 200,292.00 200,249.37 99.46 5.61% 198,917.60 4,424.00 0.43% (1,331.77) A1/A- AA- 3.57 2.32 06368LGV2 BANK OF MONTREAL 5.203 02/01/2028 600,000.00 09/05/2023 5.48% 593,520.00 594,720.90 100.15 5.16% 600,876.37 13,007.50 1.29% 6,155.47 A2/A- AA- 3.59 3.17 58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 05/08/2023 4.07% 129,894.70 129,918.39 97.90 4.65% 127,265.97 643.50 0.27% (2,652.41) A1/A+ NA 3.88 3.53 61744YAK4 MORGAN STANLEY 3.591 07/22/2028 500,000.00 08/10/2023 5.22% 465,070.00 471,304.73 95.09 4.94% 475,451.06 7,930.13 1.02% 4,146.33 A1/A- A+ 4.06 2.80 Total Corporate 11,717,000.00 4.77% 11,467,360.64 11,546,977.07 98.13 5.24% 11,494,546.09 139,967.60 24.75% (52,430.98) A1/A A+ 2.58 2.19 MONEY MARKET FUND 31846V807 FIRST AMER:TRS OBG Y 59,761.47 -- 4.89% 59,761.47 59,761.47 1.00 4.89% 59,761.47 0.00 0.13% 0.00 Aaa/ AAAm AAA 0.00 0.00 Total Money Market Fund 59,761.47 4.89% 59,761.47 59,761.47 1.00 4.89% 59,761.47 0.00 0.13% 0.00 Aaa/ AAAm AAA 0.00 0.00 SUPRANATIONAL 45950KDD9 INTERNATIONAL FINANCE CORP 4.5 07/13/2028 305,000.00 07/06/2023 4.53% 304,661.45 304,727.05 100.04 4.49% 305,115.63 6,405.00 0.66% 388.58 Aaa/AAA NA 4.04 3.58 36 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 304,661.45 100.04 305,115.63 0.66%Aaa/AAA 4.04 Total Supranational 305,000.00 4.53%304,727.05 4.49%6,405.00 388.58 NA 3.58 US TREASURY 912828D56 UNITED STATES TREASURY 2.375 1,000,000.00 01/12/2023 1,038,011.16 99.62 996,210.94 2.15%Aaa/AA+0.13 08/15/2024 0.07%1,002,842.72 5.35%8,938.87 (6,631.78)AA+0.13 9128282Y5 UNITED STATES TREASURY 2.125 1,000,000.00 01/12/2023 1,051,800.23 99.19 991,894.53 2.14%Aaa/AA+0.25 09/30/2024 (0.77%)1,007,278.25 5.36%5,341.53 (15,383.72)AA+0.25 912828YM6 UNITED STATES TREASURY 1.5 1,000,000.00 01/12/2023 1,014,925.23 98.72 987,161.46 2.13%Aaa/AA+0.34 10/31/2024 0.66%1,002,767.29 5.40%2,527.17 (15,605.83)AA+0.33 912828YV6 UNITED STATES TREASURY 1.5 700,000.00 01/12/2023 722,889.06 98.43 689,021.49 1.48%Aaa/AA+0.42 11/30/2024 (0.18%)704,909.88 5.33%889.34 (15,888.40)AA+0.41 91282CEU1 UNITED STATES TREASURY 2.875 1,000,000.00 05/28/2024 976,757.81 97.88 978,818.36 2.11%Aaa/AA+0.96 06/15/2025 5.18%978,765.64 5.17%1,256.83 52.72 AA+0.93 91282CAJ0 UNITED STATES TREASURY 0.25 1,200,000.00 01/12/2023 1,095,937.50 94.61 1,135,359.37 2.44%Aaa/AA+1.17 08/31/2025 3.74%1,153,918.27 5.06%1,002.72 (18,558.90)AA+1.14 91282CAM3 UNITED STATES TREASURY 0.25 500,000.00 01/12/2023 456,445.31 94.29 471,445.31 1.02%Aaa/AA+1.25 09/30/2025 3.65%479,978.89 5.02%314.21 (8,533.58)AA+1.22 91282CJE2 UNITED STATES TREASURY 5.0 1,000,000.00 05/28/2024 998,671.88 100.01 1,000,117.19 2.15%Aaa/AA+1.34 10/31/2025 5.09%998,756.16 4.99%8,423.91 1,361.03 AA+1.27 9128285N6 UNITED STATES TREASURY 2.875 500,000.00 01/12/2023 496,212.61 97.22 486,093.75 1.05%Aaa/AA+1.42 11/30/2025 3.15%498,140.48 4.93%1,217.55 (12,046.73)AA+1.36 91282CGE5 UNITED STATES TREASURY 3.875 1,000,000.00 02/06/2023 992,929.69 98.50 984,960.94 2.12%Aaa/AA+1.54 01/15/2026 4.13%996,290.23 4.90%17,884.62 (11,329.29)AA+1.45 91282CBQ3 UNITED STATES TREASURY 0.5 500,000.00 01/12/2023 455,839.84 93.12 465,585.94 1.00%Aaa/AA+1.67 02/28/2026 3.50%476,548.37 4.84%835.60 (10,962.43)AA+1.62 91282CKH3 UNITED STATES TREASURY 4.5 1,000,000.00 04/24/2024 991,679.69 99.48 994,765.62 2.14%Aaa/AA+1.75 03/31/2026 4.96%992,470.41 4.81%11,311.48 2,295.21 AA+1.65 91282CBW0 UNITED STATES TREASURY 0.75 500,000.00 01/12/2023 443,595.43 93.01 465,039.06 1.00%Aaa/AA+1.83 04/30/2026 4.46%468,705.77 4.78%631.79 (3,666.71)AA+1.78 9128286X3 UNITED STATES TREASURY 2.125 500,000.00 01/12/2023 465,958.71 95.23 476,132.81 1.03%Aaa/AA+1.92 05/31/2026 4.31%480,732.91 4.76%899.93 (4,600.10)AA+1.84 37 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT City of San Rafael | Account #11045 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 91282CCJ8 UNITED STATES TREASURY 0.875 06/30/2026 500,000.00 01/12/2023 4.42% 443,595.43 467,494.91 92.77 4.71% 463,828.13 11.89 1.00% (3,666.79) Aaa/AA+ AA+ 2.00 1.94 91282CHY0 UNITED STATES TREASURY 4.625 09/15/2026 900,000.00 09/25/2023 4.81% 895,429.69 896,604.91 99.87 4.69% 898,804.69 12,216.03 1.94% 2,199.78 Aaa/AA+ AA+ 2.21 2.05 91282CJC6 UNITED STATES TREASURY 4.625 10/15/2026 500,000.00 10/19/2023 5.05% 494,218.75 495,570.00 99.91 4.66% 499,550.78 4,865.10 1.08% 3,980.78 Aaa/AA+ AA+ 2.29 2.13 91282CKV2 UNITED STATES TREASURY 4.625 06/15/2027 625,000.00 06/26/2024 4.50% 627,148.44 627,140.50 100.29 4.52% 626,806.64 1,263.66 1.35% (333.87) Aaa/AA+ AA+ 2.96 2.73 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 750,000.00 12/18/2023 4.06% 751,669.92 751,434.12 98.87 4.50% 741,503.91 7,776.64 1.60% (9,930.21) Aaa/AA+ AA+ 3.25 2.98 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 1,000,000.00 02/06/2023 3.84% 1,001,445.31 1,001,033.06 98.08 4.47% 980,820.31 105.30 2.11% (20,212.75) Aaa/AA+ AA+ 3.50 3.23 91282CHK0 UNITED STATES TREASURY 4.0 06/30/2028 750,000.00 03/12/2024 4.22% 743,496.09 743,951.78 98.48 4.42% 738,603.52 81.52 1.59% (5,348.26) Aaa/AA+ AA+ 4.00 3.65 91282CJA0 UNITED STATES TREASURY 4.625 09/30/2028 500,000.00 10/19/2023 4.95% 492,968.75 493,960.99 100.85 4.40% 504,238.28 5,812.84 1.09% 10,277.29 Aaa/AA+ AA+ 4.25 3.78 Total US Treasury 16,925,000.00 3.40% 16,651,626.53 16,719,295.56 97.99 4.90% 16,576,763.02 93,608.54 35.69% (142,532.54) Aaa/AA+ AA+ 1.72 1.61 Total Portfolio 47,258,730.33 4.17% 46,571,042.33 46,746,866.07 98.10 5.02% 46,440,865.10 336,235.76 100.00% (306,000.97) Aa2/AA- AA 2.20 1.83 Total Market Value + Accrued 46,777,100.86 38 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT HOLDINGS REPORT San Rafael Reporting | Account #11046 | As of June 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration CASH CCYUSD Receivable 622,648.77 -- 0.00% 622,648.77 622,648.77 1.00 0.00% 622,648.77 0.00 1.03% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 622,648.77 0.00% 622,648.77 622,648.77 1.00 0.00% 622,648.77 0.00 1.03% 0.00 Aaa/AAA AAA 0.00 0.00 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 59,849,233.56 -- 4.56% 59,849,233.56 59,849,233.56 1.00 4.56% 59,849,233.56 0.00 98.97% 0.00 NA/NA NA 0.00 0.00 Total LAIF 59,849,233.56 4.56% 59,849,233.56 59,849,233.56 1.00 4.56% 59,849,233.56 0.00 98.97% 0.00 NA/NA NA 0.00 0.00 Total Portfolio 60,471,882.33 4.51% 60,471,882.33 60,471,882.33 1.00 4.51% 60,471,882.33 0.00 100.00% 0.00 Aaa/AAA AAA 0.00 0.00 Total Market Value + Accrued 60,471,882.33 39 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT TRANSACTIONS 40 ,,,a CHANDLER "'--ASSET MANAGEMENT TRANSACTION LEDGER City of San Rafael | Account #11045|04/01/2024 Through 06/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 04/23/2024 3137F2LJ3 350,000.00 FHMS K-066 A2 3.117 06/25/2027 94.473 5.06%(330,654.30)(666.69)(331,320.99)0.00 Purchase 04/25/2024 3133EP6K6 1,000,000.00 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 03/26/2027 99.070 4.84%(990,700.00)(3,625.00)(994,325.00)0.00 Purchase 04/25/2024 91282CKH3 1,000,000.00 UNITED STATES TREASURY 4.5 03/31/2026 99.168 4.96%(991,679.69)(3,073.77)(994,753.46)0.00 Purchase 05/15/2024 14913UAL4 550,000.00 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 99.967 5.01%(549,818.50)(76.39)(549,894.89)0.00 Purchase 05/16/2024 62479LNG6 750,000.00 MUFG Bank, Ltd. - New York Branch 01/16/2025 96.420 5.43%(723,152.08)0.00 (723,152.08)0.00 Purchase 05/23/2024 58770JAD6 120,000.00 MBALT 2024-A A3 5.32 01/18/2028 99.988 5.73%(119,985.96)0.00 (119,985.96)0.00 Purchase 05/29/2024 91282CJE2 1,000,000.00 UNITED STATES TREASURY 5.0 10/31/2025 99.867 5.09%(998,671.88)(3,940.22)(1,002,612.10)0.00 Purchase 05/29/2024 91282CEU1 1,000,000.00 UNITED STATES TREASURY 2.875 06/15/2025 97.676 5.18%(976,757.81)(13,039.62)(989,797.43)0.00 Purchase 06/11/2024 096919AD7 210,000.00 BMWOT 2024-A A3 5.18 02/26/2029 99.985 5.18%(209,968.10)0.00 (209,968.10)0.00 Purchase 06/25/2024 437076DB5 600,000.00 HOME DEPOT INC 4.875 06/25/2027 99.868 4.92%(599,208.00)0.00 (599,208.00)0.00 Purchase 06/26/2024 3137FMTY8 225,000.00 FHMS K-094 A2 2.903 06/25/2029 92.340 4.65%(207,764.65)(453.59)(208,218.24)0.00 Purchase 06/27/2024 91282CKV2 625,000.00 UNITED STATES TREASURY 4.625 06/15/2027 100.344 4.50%(627,148.44)(947.75)(628,096.19)0.00 41 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT TRANSACTION LEDGER City of San Rafael | Account #11045|04/01/2024 Through 06/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Total Purchase 7,430,000.00 (7,325,509.41)(25,823.03)(7,351,332.44)0.00 TOTAL ACQUISITIONS 7,430,000.00 (7,325,509.41)(25,823.03)(7,351,332.44)0.00 DISPOSITIONS Maturity 04/22/2024 3133EMWV0 (1,000,000.00)FEDERAL FARM CREDIT BANKS FUNDING CORP 0.35 04/22/2024 100.000 0.35%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 04/23/2024 3130AMQQ8 (1,000,000.00)FEDERAL HOME LOAN BANKS 0.35 04/23/2024 100.000 0.35%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 04/26/2024 3136G46B4 (1,200,000.00)FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.35 04/26/2024 100.000 0.35%1,200,000.00 0.00 1,200,000.00 0.00 Maturity 05/06/2024 3133EMYR7 (1,000,000.00)FEDERAL FARM CREDIT BANKS FUNDING CORP 0.375 05/06/2024 100.000 0.38%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 05/15/2024 91282CCC3 (1,000,000.00)UNITED STATES TREASURY 0.25 05/15/2024 100.000 0.25%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 05/15/2024 717081DM2 (500,000.00)PFIZER INC 3.4 05/15/2024 100.000 3.40%500,000.00 0.00 500,000.00 0.00 Total Maturity (5,700,000.00)5,700,000.00 0.00 5,700,000.00 0.00 Sale 06/21/2024 3133EPBF1 (1,000,000.00)FEDERAL FARM CREDIT BANKS FUNDING CORP 4.875 08/21/2024 99.892 4.98%998,920.00 16,250.00 1,015,170.00 (911.61) Total Sale (1,000,000.00)998,920.00 16,250.00 1,015,170.00 (911.61) TOTAL DISPOSITIONS (6,700,000.00)6,698,920.00 16,250.00 6,715,170.00 (911.61) 42 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT TRANSACTION LEDGER San Rafael Reporting | Account #11046|04/01/2024 Through 06/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 04/15/2024 90LAIF$00 579,998.56 Local Agency Investment Fund State Pool 1.000 4.27%(579,998.56)0.00 (579,998.56)0.00 Purchase 05/17/2024 90LAIF$00 5,000,000.00 Local Agency Investment Fund State Pool 1.000 4.36%(5,000,000.00)0.00 (5,000,000.00)0.00 Total Purchase 5,579,998.56 (5,579,998.56)0.00 (5,579,998.56)0.00 TOTAL ACQUISITIONS 5,579,998.56 (5,579,998.56)0.00 (5,579,998.56)0.00 43 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT IMPORTANT DISCLOSURES City of San Rafael | Account #11045 | As of June 30, 2024 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 44 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT BENCHMARK DISCLOSURES City of San Rafael | Account #11045 | As of June 30, 2024 Benchmark Disclosure ICE BofA 1-3 Yr US Treasury & Agency Index The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 45 ,-,,.. CHANDLER "-'•• ASSET MANAGEMENT