HomeMy WebLinkAboutFin City Quarterly Investment Report____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 02/18/2025
Disposition: Accepted report
Agenda Item No: 4.c
Meeting Date: February 18, 2025
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 DECEMBER 31, 2024
RECOMMENDATION:
Staff recommends that the City Council accept the investment report for the quarter ending December
31, 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.
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 December 31, 2024, the City’s Treasury consisted of investments with a total market value of
$116,426,173 consisting of $67,822,776 in the City’s primary Local Agency Investment Fund (LAIF)
account and $48,603,397 in externally managed investments (which includes $893,500 of Pt. San Pedro
Assessment District bonds). An additional $10,983,979 represents cash balances in the City’s various
operating bank accounts, including Westamerica Bank ($10,120,123), Bank of the Marin ($593,461), and
Bank of Montreal ($270,395).
As of December 31, 2024, the weighted-average yield on the portfolio was 4.44%, which results from an
effective yield of 4.53% for the City’s investments in the Local Agency Investment Fund and a yield of
4.31% for the externally managed investments. The overall return on the total portfolio for the quarter
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ending December 31, 2024, was 4.45%, with a weighted average maturity of 0.97 years, and compares
favorably to the benchmark (1-3 Year Treasury Index) of 4.25%. 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:
As broadly anticipated, the Federal Open Market Committee (FOMC) reduced the Fed Funds Rate by 25
basis points to the range of 4.25 - 4.5% at the December meeting. Although the cut was widely
anticipated, market participants viewed the trajectory of rates in the SEP as ‘hawkish.’ Chair Jerome
Powell reiterated previous statements indicating the economy is in a good place and that the monetary
policy is well positioned. The Fed released the quarterly Summary of Economic Projections (SEP), which
now forecasts a higher central tendency of core inflation and a higher longer -run Fed Funds forecast. In
our Asset Management’s view, the updated SEP reflects the continued resiliency of the US economy and
the corresponding risk of inflation taking longer to reach the FOMC’s two percent objective in 2025.
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 December
31, 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:
Staff recommends that the City Council accept the investment report for the quarter ending December
31, 2024, as presented.
ATTACHMENTS:
1. Quarterly Investment Portfolio Report
2. Historical Activity by Quarter Report
3. Chandler Asset Management – Investment Report: Period Ending December 31, 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 67,213,508$ 99.1%4.57%
Cash (Receivable)609,268$ 0.9%0.00%
Total Internally Managed 67,822,776$ 58.3%
Weighted Average Yield 4.53%
Days
Effective Average Duration - Internal 1
Weighted Average Maturity - Internal 1
%Yield
Money Market Fund 219,455$ 0.5%4.49%
Treasury Securities 15,615,384$ 32.1%3.80%
Instrumentality Securities 9,016,594$ 18.6%4.42%
Corporate Notes 11,848,951$ 24.4%4.82%
Asset-Backed 5,194,081$ 10.7%4.84%
Cash (Receivable)2,131$ 0.0%0.00%
Commercial Paper 748,555$ 1.5%5.43%
CMO 4,125,160$ 8.5%4.44%
Supranational 939,586$ 1.9%4.53%
Pt. San Pedro Assessment District 893,500$ 1.8%5.25%
Total Externally Managed 48,603,397$ 41.7%
Weighted Average Yield 4.31%
Years
Effective Average Duration - External 1.84
Weighted Average Maturity - External 2.22
Total Portfolio Assets %Yield
LAIF 67,213,508$ 57.7%4.57%
Money Market Fund 219,455$ 0.2%4.49%
Treasury Securities 15,615,384$ 13.4%3.80%
Instrumentality Securities 9,016,594$ 7.7%4.42%
Corporate Notes 11,848,951$ 10.2%4.82%
Asset-Backed 5,194,081$ 4.5%4.84%
Cash (Receivable)611,399$ 0.5%0.00%
Commercial Paper 748,555$ 0.6%5.43%
CMO 4,125,160$ 3.5%4.44%
Supranational 939,586$ 0.8%4.53%
Pt. San Pedro Assessment District 893,500$ 0.8%5.25%
Total Portfolio Assets 116,426,173$ 100.0%
Weighted Average Yield 4.44%
Years
Effective Average Duration - Total 0.81
Weighted Average Maturity - Total 0.97
Based on Market Values
December 31, 2024
City of San Rafael
Quarterly Investment Portfolio Report
Externally Managed Assets
Internally Managed Assets
LAIF
99.1%
Cash
(Receivable)
0.9%
Money Market
Fund
0.5%
Treasury
Securities
32.1%
Instrumentality
Securities
18.6%
Corporate
Notes
24.4%
Asset-Backed
10.7%
Cash
(Receivable)
0.0%
Commercial
Paper
1.5%CMO
8.5%
Supranational
1.9%Pt. San Pedro
Assessment
District
1.8%
LAIF
57.7%
Money Market
Fund
0.2%
Treasury
Securities
13.4%
Instrumentality
Securities
7.7%
Corporate
Notes
10.2%
Asset-Backed
4.5%
Cash
(Receivable)
0.5%
Commercial
Paper
0.6%
CMO
3.5%
Supranational
0.8%
Pt. San Pedro
Assessment
District
0.8%
Attachment 1
Internally Managed Assets %Return %Return %Return %Return
LAIF 67,213,508$ 99.1%4.57%60,496,038$ 98.9%4.57%59,849,234$ 100.0%4.52%53,463,594$ 100.0%4.27%
Cash (Receivable)609,268$ 0.9%0.00%692,545$ 1.1%0.00%
Total Internally Managed 67,822,776$ 58.3%61,188,583$ 55.7%59,849,234$ 55.8%53,463,594$ 52.9%
Weighted Average Yield 4.53%4.52%4.52%4.27%
Externally Managed Assets %Return %Return %Return %Return
Cash 2,131$ 0.0%0.00%1,427$ 0.0%0.00%38,820$ 0.1%0.00%608,112$ 0.0%0.00%
Commercial Paper 748,555$ 1.5%5.43%739,604$ 1.5%0.00%727,857$ 1.5%5.43%-$ 0.0%0.00%
Money Market Fund 219,455$ 0.5%4.49%1,110,193$ 2.3%4.49%59,761$ 0.1%4.89%287,457$ 0.6%4.89%
Treasury Securities 15,615,384$ 32.1%3.80%15,268,781$ 31.3%3.80%16,576,763$ 34.5%3.40%13,932,479$ 29.3%2.79%
Instrumentality Securities 9,016,594$ 18.6%4.42%9,099,833$ 18.7%4.42%7,976,068$ 16.6%4.22%12,165,418$ 25.6%2.91%
Corporate Notes 11,848,951$ 24.4%4.82%11,999,405$ 24.6%4.82%11,494,546$ 23.9%4.77%10,855,380$ 22.8%4.45%
Asset Backed 5,194,081$ 10.7%4.84%5,432,707$ 11.2%4.84%5,524,308$ 11.5%4.85%5,253,902$ 11.0%4.82%
Negotiable CD 0.0%-$ 0.0%0.00%-$ 0.0%0.00%-$ 0.0%0.00%
Collateralized Mortgage Obligations (CMO)4,125,160$ 8.5%4.44%3,849,645$ 7.9%4.44%3,737,626$ 7.8%4.44%3,212,043$ 6.7%4.36%
Supranational 939,586$ 1.9%4.53%315,102$ 0.6%4.53%305,116$ 0.6%4.53%306,643$ 0.6%4.53%
Municipal/Assessment District 893,500$ 1.8%5.25%893,500$ 1.8%5.25%986,700$ 2.1%5.25%986,700$ 2.1%5.25%
Total Externally Managed 48,603,397$ 41.7%48,710,196$ 44.3%47,427,565$ 44.2%47,608,135$ 47.1%
Weighted Average Yield 4.31%4.32%4.20%3.57%
Years Years Years Years
Effective Average Duration - External 1.84 1.84 1.83 1.71
Weighted Average Maturity - External 2.22 2.22 2.20 2.13
Total Portfolio Assets %Return %Return %Return %Return
LAIF 67,213,508$ 57.73%4.57%60,496,038$ 55.0%4.57%59,849,234$ 55.8%4.52%53,463,594$ 55.2%4.27%
Cash 611,399$ 0.53%0.00%693,972$ 0.6%0.00%38,820$ 0.0%0.00%608,112$ 0.6%0.00%
Commercial Paper 748,555$ 0.64%5.43%739,604$ 0.7%5.43%727,857$ 0.7%5.43%-$ 0.0%0.00%
Money Market Fund 219,455$ 0.19%4.49%1,110,193$ 1.0%4.49%59,761$ 0.1%4.89%287,457$ 0.3%4.89%
Treasury Securities 15,615,384$ 13.41%3.80%15,268,781$ 13.9%3.80%16,576,763$ 15.5%3.40%13,932,479$ 14.4%2.79%
Instrumentality Securities 9,016,594$ 7.74%4.42%9,099,833$ 8.3%4.42%7,976,068$ 7.4%4.22%12,165,418$ 12.6%2.91%
Corporate Notes 11,848,951$ 10.18%4.82%11,999,405$ 10.9%4.82%11,494,546$ 10.7%4.77%10,855,380$ 11.2%4.45%
Asset Backed 5,194,081$ 4.46%4.84%5,432,707$ 4.9%4.84%5,524,308$ 5.1%4.85%5,253,902$ 5.4%4.82%
Collateralized Mortgage Obligations (CMO)4,125,160$ 3.54%4.44%3,849,645$ 3.5%4.44%3,737,626$ 3.5%4.44%3,212,043$ 3.3%4.36%
Supranational 939,586$ 0.81%4.53%315,102$ 0.3%4.53%305,116$ 0.3%4.53%306,643$ 0.3%4.53%
Municipal/Assessment District 893,500$ 0.77%5.25%893,500$ 0.8%5.25%986,700$ 0.9%5.25%986,700$ 1.0%5.25%
Total Portfolio Assets 116,426,173$ 100.00%109,898,779$ 100.0%107,276,798$ 100.0%101,071,729$ 104%
Weighted Average Yield 4.44%4.43%4.38%3.94%
Years Years Years Years
Effective Average Duration - Total 0.81 0.81 0.79 0.81
Weighted Average Maturity - Total 0.97 0.97 0.96 0.99
City of San Rafael
Historical Activity-By Quarter
September 30, 2024 June 30, 2024 March 31, 2024December 31, 2024
Attachment 2
INVESTMENT REPORT
City of San Rafael | As of December 31, 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 3
TABLE OF CONTENTS
City of San Rafael | As of December 31, 2024
ECONOMIC UPDATE
ACCOUNT PROFILE
CONSOLIDATED INFORMATION
PORTFOLIO HOLDINGS
TRANSACTIONS
1
ECONOMIC UPDATE
2
Recent economic data suggests continued growth fueled by a resilient consumer.Inflationary trends have subsided, but some components
remain sticky,and core levels remain above the Fed’s target.The labor market reflects improved balance between supply and demand for
workers.While job creation has been robust, continuing jobless claims remain elevated.Given the economic outlook, we expect gradual
normalization of monetary policy and a steepening yield curve.
As broadly anticipated,the Federal Open Market Committee (FOMC)reduced the Fed Funds Rate by 25 basis points to the range of 4.25-
4.50%at the December meeting.Although the cut was widely anticipated,market participants viewed the trajectory of rates in the SEP as
‘hawkish.’Chair Jerome Powell reiterated previous statements indicating the economy is in a good place and that monetary policy is well
positioned. The Fed released the quarterly Summary of Economic Projections (SEP),which now forecasts a higher central tendency of core
inflation and a higher longer run Fed Funds forecast.In the Chandler team’s view,the updated SEP reflects the continued resiliency of the
US economy and the corresponding risk of inflation taking longer to reach the FOMC’s two percent objective in 2025.
US Treasury yields shifted higher in December and the curve steepened.The 2-year Treasury yield increased 9 basis points to 4.24%,the 5-
year Treasury rose 33 basis points to 4.38%,and the 10-year Treasury yield surged 40 basis points to 4.57%.The spread between the 2-year
and 10-year Treasury yield points on the curve increased to +33 basis points at December month-end versus +2 basis points at November
month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -37 basis points. The spread between the
3-month and 10-year Treasury yield points on the curve increased to +25 basis points in December from -32 basis points in November.
ECONOMIC UPDATE
3
-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 256,000 jobs in December,far exceeding consensus expectations.Gains were led by health care,retail,and
leisure sectors,while manufacturing shed jobs.The three-month moving average and six-month moving average payrolls totaled 170,000
and 165,000 respectively.The unemployment rate declined to 4.1%in December,and the labor participation rate was unchanged at
62.5%,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 fell to 7.5%.Average hourly earnings moderated to an increase
of 3.9% year-over-year in December.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
4
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)rose to 8.098 million new job openings in November,which
represented an increase from the upwardly revised 7.839 million job openings in October.Job openings indicate a ratio of 1.1 jobs for
each unemployed individual, representing a relatively balanced labor market.
Source: US Department of Labor
JOB OPENINGS & LABOR TURNOVER SURVEY
5
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 December, the Consumer Price Index (CPI) rose 0.4% month-over-month and 2.9% year-over-year. The Core CPI, which excludes volatile
food a nd energy components,rose 0.2%month-over-month and 3.2%year-over-year,slowing from last month and coming in lower than
consensus expectations. The Personal Consumption Expenditures (PCE)Index rose 0.1%from the previous month and 2.4%year-over-year
in November versus a 2.3%increase in October.The Core PCE deflator (the Fed’s preferred gauge)increased 0.1%month-over-month,
below recent small month-over-month rises and 2.8%over the past year. Core prices are exhibiting what Fed Chair Powell describes as
“sideways” movement. Although inflation has moderated, price increases remain above the Fed’s 2% target.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
6
-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
December Retail Sales advanced broadly, providing evidence of a solid pace of consumer spending in the holiday season.Retail Sales
rose 0.4%in December,after an increase of 0.8%in November and below the consensus expectation of 0.6%.Spending was solid for
motor vehicles and non-store retailers, as well as for most other categories associated with the winter holidays.On a year-over-year
basis, Retail Sales grew 3.9%in December versus 4.1%in November.The Retail Sales Control Group,which are used to calculate gross
domestic product,increased 0.7%in December,the most in three months,exceeding expectations of 0.4%.The Conference Board’s
Consumer Confidence Index declined to 104.7 in December from an upwardly revised 112.8 in November.Consumers'assessment about
future business conditions and outcomes were substantially less optimistic and there was increased pessimism about future employment
prospects.While the consumer has been resilient,low savings rates,growing credit card debt, higher delinquencies, and a moderating
labor market pose potential risks to future spending.
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)
CONSUMER
7
-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 B oard’s Leading Economic Index (LEI)increased 0.3%in November reversing its -0.4%decline in October due to a
rebound in building permits,continued support from equities,improvement in average hours worked in manufacturing, and fewer initial
unemployment claims.The LEI decreased year-over-year by -3.5%.According to the Conference Board,the rise in LEI is a positive sign for
future activity in the US and is consistent with an expectation for moderate growth at the end of 2024 and into early 2025.The Chicago
Fed National Activity Index (CFNAI)improved to -0.12 in November from -0.50 in October.The three-month moving average fell to -0.31 in
November from -0.27 in October, indicating below-trend growth expectations for the economy.
Source: The Conference Board Source: Federal Reserve Bank of Chicago
LEADING INDICATORS OF ECONOMIC ACTIVITY
8
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
Housing starts surged by 15.8%in December to 1.5 million units after declining in the prior three months.Total starts are down 4.4%
compared to December 2023.The supply of existing homes is gradually becoming more abundant after the period of scarcity as
homeowners held onto their low mortgage rates.The Freddie Mac 30-year fixed rate mortgage averaged approximately 6.7%in
December.According to the Case-Shiller 20-City Home Price Index, housing prices rose 4.2%year-over-year in October,decelerating from
4.6%reported in the previous month.With more inventory entering the market the trend is gradually improving;however 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
HOUSING
9
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 rose more than forecast to 49.3 in December from 48.4 in November.
While the index has posted contractionary readings for the past nine months,New Orders and Prices indices continued in expansion
territory and the Production Index returned to expansion this month. The Backlog of Orders Index and Employment Index remained in
contraction.The ISM Services Index rose to 54.1 in December from 52.1 in November while marking the sixth straight month of expansion.
Robust business activity ahead of the new year and mitigating risks of potential tariffs were the key drivers.A reading over 50 indicates
expansion, while a reading under 50 indicates contraction.
Source: Institute for Supply Management
SURVEY BASED MEASURES
10
Components of GDP 12/23 3/24 6/24 9/24
2.3% 1.3% 1.9% 2.5%
0.2% 0.6% 1.5% 0.2%
0.1% -0.6% -0.9% -0.4%
0.0% 0.0% 0.3% 0.6%
0.6% 0.3% 0.3% 0.3%
3.2% 1.6% 3.0% 3.1%
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
According to the third estimate,third quarter GDP increased at an annualized rate of 3.1%compared to 2.8%from the second estimate.
Growth continues to be powered by personal consumption expenditures. Government consumption expenditures and nonresidential fixed
investment also had positive contributions,with negative offsets by net exports,residential investment, and change in private
inventories. The consensus projection calls for 2.4% growth in the fourth quarter and 2.7% growth for the full year 2024.
GROSS DOMESTIC PRODUCT (GDP)
11
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 broadly anticipated,the Federal Open Market Committee (FOMC)reduced the Fed Funds Rate by 25 basis points to the range of 4.25-
4.50%at the December meeting.There was one dissenting vote by Cleveland Fed President Beth Hammack who would have preferred no
change in rates.Although a reduction in rates was widely anticipated,market participants viewed the trajectory of rates in the SEP as
‘hawkish.’Chair Jerome Powell reiterated previous statements that monetary policy is “well positioned” and the outlook remains roughly
balanced between the dual mandate of maximum employment and price stability.Economic activity is expanding at a solid pace,labor
market conditions have “generally eased”,and the unemployment rate “remains low.”The Fed released the quarterly Summary of
Economic Projections (SEP)which now forecasts a higher,longer run median Fed Funds rate expectation among Fed Governors at 2.8 –
3.6%.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 $1.9T to approximately $7.0T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yi
e
l
d
(
%
)
FEDERAL RESERVE
12
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
Y
i
e
l
d
(
%
)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Dec-24
Sep-24
Dec-23
Yi
e
l
d
(
%
)
At the end of December,the 2-year Treasury yield was 1 basis point lower,and the 10-Year Treasury yield was 69 basis points higher,
year-over-year.The spread between the 2-year and 10-year Treasury yield points on the curve increased to +33 basis points at December
month-end versus +2 basis points at November month-end. The yield curve inversion which began in July 2022 was historically long.The
average historical spread (since 2004)is about +99 basis points. The 3-month and 10-year Treasury yield curve normalized to +25 basis
points in December from -32 basis points in November.
BOND YIELDS
13
ACCOUNT PROFILE
14
OBJECTIVES
City of San Rafael | | As of December 31, 2024
Investment Objectives
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.
Chandler Asset Management Performance Objective
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.
Strategy
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
PORTFOLIO CHARACTERISTICS
City of San Rafael | Account #11045 | As of December 31, 2024
Benchmark*12/31/2024
Portfolio
9/30/2024
Portfolio
Average Maturity (yrs)1.84 2.21 2.22
Average Modified Duration 1.74 1.83 1.84
Average Purchase Yield 4.51%4.39%
Average Market Yield 4.25%4.45%4.01%
Average Quality**AA+AA AA
Total Market Value 48,090,583 48,130,638
*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.
16
SECTOR DISTRIBUTION
City of San Rafael | Account #11045 | As of December 31, 2024
Sector as a Percentage of Market Value
Sector 12/31/2024 09/30/2024
US Treasury 32.73%31.93%
Corporate 24.84%25.09%
Agency 18.90%19.03%
ABS 10.89%11.36%
Agency CMBS 8.65%8.05%
Supras 1.97%0.66%
Comm Paper 1.57%1.55%
Money Mkt Fd 0.46%2.32%
17
ISSUERS
City of San Rafael | Account #11045 | As of December 31, 2024
Issuer Investment Type % Portfolio
Government of The United States US Treasury 32.73%
Federal Home Loan Banks Agency 11.96%
FHLMC Agency CMBS 8.65%
Farm Credit System Agency 6.93%
American Express Credit Master Trust ABS 2.29%
John Deere Owner Trust ABS 1.85%
Mitsubishi UFJ Financial Group, Inc.Comm Paper 1.57%
Bank of America Credit Card Trust ABS 1.56%
Chevron Corporation Corporate 1.45%
International Bank for Recon and Dev Supras 1.33%
Toyota Auto Receivables Owner Trust ABS 1.32%
Honda Auto Receivables Owner Trust ABS 1.30%
The Home Depot, Inc.Corporate 1.27%
Bank of Montreal Corporate 1.27%
PACCAR Inc Corporate 1.26%
Bank of America Corporation Corporate 1.23%
Toyota Motor Corporation Corporate 1.22%
The Toronto-Dominion Bank Corporate 1.21%
Caterpillar Inc.Corporate 1.16%
Cisco Systems, Inc.Corporate 1.16%
National Rural Utilities Cooperative Corporate 1.16%
Royal Bank of Canada Corporate 1.16%
NextEra Energy, Inc.Corporate 1.15%
Prologis, Inc.Corporate 1.13%
State Street Corporation Corporate 1.11%
Deere & Company Corporate 1.05%
Chase Issuance Trust ABS 1.05%
PepsiCo, Inc.Corporate 1.05%
Chubb Limited Corporate 1.03%
Realty Income Corporation Corporate 1.01%
18
ISSUERS
City of San Rafael | Account #11045 | As of December 31, 2024
Issuer Investment Type % Portfolio
Morgan Stanley Corporate 1.01%
BNY Mellon Corp Corporate 0.74%
Public Service Enterprise Group Inco Corporate 0.68%
International Finance Corporation Supras 0.64%
Eli Lilly and Company Corporate 0.64%
BMW Vehicle Owner Trust ABS 0.64%
U.S. Bancorp Money Mkt Fd 0.46%
JPMorgan Chase & Co.Corporate 0.42%
MERCEDES-BENZ AUTO RECEIVABLES TRUST ABS 0.38%
Merck & Co., Inc.Corporate 0.27%
Mercedes-Benz Auto Lease Trust ABS 0.25%
BMW Vehicle Lease Trust ABS 0.23%
Cash Cash 0.00%
TOTAL 100.00%
19
QUALITY DISTRIBUTION
Rating 12/31/2024 09/30/2024
AAA 8.9%9.9%
AA 61.8%60.6%
A 23.9%24.1%
NR 5.3%5.4%
Rating 12/31/2024 09/30/2024
AAA 71.5%71.3%
AA 3.3%1.4%
A 21.7%23.7%
NR 3.5%3.5%
Rating 12/31/2024 09/30/2024
AAA 16.4%17.8%
AA 60.3%59.7%
A 9.1%9.2%
NR 14.2%13.3%
City of San Rafael | Account #11045 | As of December 31, 2024
S&P Rating Moody’s Rating Fitch Rating
20
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 4.6%4.3%19.0%31.6%25.6%10.6%4.3%0.0%0.0%
ICE BofA 1-3 Year US Treasury & Agency Index 0.0%0.0%3.9%59.8%36.2%0.0%0.0%0.0%0.0%
DURATION DISTRIBUTION
City of San Rafael | Account #11045 | As of December 31, 2024
Portfolio Compared to the Benchmark
21
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
City of San Rafael (0.06%)4.50%4.63%
Benchmark (0.05%)4.09%3.99%
*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 December 31, 2024
Total Rate of Return : Inception | 02/01/2023
22
HISTORICAL AVERAGE PURCHASE YIELD
City of San Rafael | Account #11045 | As of December 31, 2024
Purchase Yield as of 12/31/24 = 4.51%
23
PORTFOLIO CHARACTERISTICS
San Rafael Reporting | Account #11046 | As of December 31, 2024
12/31/2024
Portfolio
9/30/2024
Portfolio
Average Maturity (yrs)0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 4.39%4.52%
Average Market Yield 4.39%4.52%
Average Quality**AAA AAA
Total Market Value 67,822,776 61,188,584
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
24
SECTOR DISTRIBUTION
San Rafael Reporting | Account #11046 | As of December 31, 2024
Sector as a Percentage of Market Value
Sector 12/31/2024 09/30/2024
LAIF 99.10%98.87%
Cash 0.90%1.13%
25
CONSOLIDATED INFORMATION
26
PORTFOLIO CHARACTERISTICS
San Rafael Cons | Account #11047 | As of December 31, 2024
12/31/2024
Portfolio
9/30/2024
Portfolio
Average Maturity (yrs)0.91 0.97
Average Modified Duration 0.76 1.82
Average Purchase Yield 4.44%4.46%
Average Market Yield 4.41%4.30%
Average Quality**AA AA
Total Market Value 115,913,359 109,319,222
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
27
SECTOR DISTRIBUTION
San Rafael Cons | Account #11047 | As of December 31, 2024
Sector as a Percentage of Market Value
Sector 12/31/2024 09/30/2024
LAIF 58.18%55.50%
US Treasury 13.52%14.01%
Corporate 10.26%11.01%
Agency 7.80%8.35%
ABS 4.50%4.98%
Agency CMBS 3.57%3.53%
Supras 0.81%0.29%
Comm Paper 0.65%0.68%
Cash 0.53%0.64%
Money Mkt Fd 0.19%1.02%
28
PORTFOLIO HOLDINGS
29
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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 111,740.82 --
5.32%
111,932.36
111,754.17
100.07
4.67%
111,819.22
96.10
0.23%
65.05
Aaa/AAA
NA
0.90
0.13
43815JAC7 HAROT 2023-1 A3 5.04
04/21/2027 114,041.75 02/16/2023
5.09%
114,020.56
114,030.02
100.34
4.57%
114,428.54
159.66
0.24%
398.52
Aaa/NA
AAA
2.30
0.65
02582JJT8 AMXCA 2022-2 A 3.39 05/17/2027 600,000.00 04/17/2023
4.65%
585,632.81
596,556.05
99.56
4.65%
597,334.20
904.00
1.25%
778.15
NA/AAA
AAA
0.37
0.36
58768PAC8 MBART 2022-1 A3 5.21
08/16/2027 181,278.37 02/15/2023
5.03%
182,213.09
181,722.43
100.45
4.59%
182,088.14
419.76
0.38%
365.70
Aaa/AAA
NA
2.62
0.65
89239HAD0 TAOT 2022-D A3 5.3 09/15/2027 327,320.61 02/10/2023
4.86%
331,181.97
329,200.83
100.59
4.55%
329,258.22
771.02
0.69%
57.39
Aaa/NA
AAA
2.71
0.73
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 880,000.00 --
3.66%
882,243.24
881,164.95
100.45
4.51%
883,921.90
1,959.47
1.85%
2,756.94
Aaa/NA
AAA
2.87
0.81
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 120,000.00 05/17/2024
5.73%
119,985.96
119,988.31
101.19
4.64%
121,426.21
283.73
0.25%
1,437.91
Aaa/NA
AAA
3.05
1.60
891941AD8 TAOT 2023-B A3 4.71 02/15/2028 300,000.00 10/03/2023
5.68%
294,058.59
295,764.68
100.31
4.46%
300,923.79
628.00
0.63%
5,159.11
Aaa/NA
AAA
3.13
1.05
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 90,000.00 07/11/2023
5.47%
89,984.05
89,989.10
100.87
4.55%
90,779.58
82.05
0.19%
790.48
NA/AAA
AAA
3.15
0.88
05522RDF2 BACCT 2022-2 A 5.0 04/17/2028 440,000.00 04/18/2023
4.59%
444,812.50
441,819.72
100.51
4.44%
442,253.24
977.78
0.93%
433.52
Aaa/AAA
NA
3.30
0.83
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 500,000.00 12/07/2023
5.10%
507,480.47
505,394.05
101.59
4.55%
507,950.80
787.50
1.06%
2,556.75
Aaa/NA
AAA
3.47
1.31
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 495,000.00 09/07/2023
5.17%
494,862.79
494,898.39
101.06
4.56%
500,246.51
1,135.20
1.05%
5,348.12
NR/AAA
AAA
3.71
1.59
02582JKD1 AMXCA 2023-3 A 5.23 09/15/2028 490,000.00 09/12/2023
5.29%
489,978.10
489,983.75
101.28
4.49%
496,263.03
1,138.98
1.04%
6,279.29
NA/AAA
AAA
3.71
1.59
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 300,000.00 02/20/2024
4.88%
301,125.00
300,771.04
100.97
4.48%
302,910.24
664.00
0.63%
2,139.20
Aaa/NA
AAA
1.88
1.75
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 210,000.00 06/04/2024
5.24%
209,968.10
209,971.88
101.18
4.48%
212,477.66
181.30
0.45%
2,505.78
Aaa/AAA
NA
4.16
1.55
Total ABS 5,159,381.55 4.82%
5,159,479.59
5,163,009.37
100.68
4.53%
5,194,081.27
10,188.54
10.89%
31,071.90
Aaa/AAA
AAA
2.78
1.05
30
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
AGENCY
3130AV7L0 FEDERAL HOME LOAN BANKS 5.0
02/28/2025 1,100,000.00 03/02/2023
5.07%
1,098,548.00
1,099,884.32
100.09
4.32%
1,101,036.83
18,791.67
2.31%
1,152.51
Aaa/AA+
AA+
0.16
0.15
3130AWER7 FEDERAL HOME LOAN BANKS
4.625 06/06/2025 775,000.00 06/09/2023
4.67%
774,356.75
774,861.59
100.13
4.30%
776,015.15
2,489.15
1.63%
1,153.56
Aaa/AA+
AA+
0.43
0.42
3130ATHT7 FEDERAL HOME LOAN BANKS
4.375 09/12/2025 1,300,000.00 01/12/2023
4.28%
1,303,159.00
1,300,823.80
100.07
4.27%
1,300,896.00
17,220.49
2.73%
72.20
Aaa/AA+
AA+
0.70
0.67
3130ATUC9 FEDERAL HOME LOAN BANKS 4.5
12/12/2025 1,000,000.00 02/13/2023
4.32%
1,004,720.00
1,001,577.91
100.22
4.26%
1,002,180.88
2,375.00
2.10%
602.97
Aaa/AA+
AA+
0.95
0.91
3130AWGR5 FEDERAL HOME LOAN BANKS
4.375 06/12/2026 525,000.00 06/28/2023
4.43%
524,165.25
524,592.30
100.12
4.29%
525,639.46
1,212.24
1.10%
1,047.16
Aaa/AA+
AA+
1.45
1.38
3133EPSW6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 08/14/2026 560,000.00 08/09/2023
4.58%
558,712.00
559,306.64
100.39
4.24%
562,196.15
9,590.00
1.18%
2,889.50
Aaa/AA+
AA+
1.62
1.52
3130AXU63 FEDERAL HOME LOAN BANKS
4.625 11/17/2026 500,000.00 12/18/2023
4.23%
505,325.00
503,428.22
100.64
4.26%
503,207.24
2,826.39
1.05%
(220.98)
Aaa/AA+
AA+
1.88
1.77
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 1,000,000.00 04/24/2024
4.84%
990,700.00
992,891.83
100.50
4.26%
1,005,028.32
11,875.00
2.11%
12,136.49
Aaa/AA+
AA+
2.23
2.08
3133ERMB4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 07/23/2027 750,000.00 07/18/2024
4.26%
749,767.50
749,801.90
99.83
4.32%
748,720.34
13,989.58
1.57%
(1,081.55)
Aaa/AA+
AA+
2.56
2.36
3133ERNP2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 08/06/2027 1,000,000.00 08/19/2024
3.92%
1,002,290.00
1,002,006.13
99.24
4.31%
992,371.49
16,111.11
2.08%
(9,634.64)
Aaa/AA+
AA+
2.60
2.40
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 500,000.00 05/15/2023
3.66%
512,310.00
507,914.10
99.86
4.30%
499,302.07
1,239.58
1.05%
(8,612.03)
Aaa/AA+
AA+
2.94
2.73
Total Agency 9,010,000.00 4.43%
9,024,053.50
9,017,088.74
100.07
4.28%
9,016,593.92
97,720.21
18.90%
(494.82)
Aaa/AA+
AA+
1.46
1.37
AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 700,000.00 06/07/2023
4.53%
674,542.97
685,693.89
97.83
4.53%
684,843.32
2,000.83
1.44%
(850.57)
Aaa/AA+
AAA
2.07
1.82
3137F1G44 FHMS K-065 A2 3.243 04/25/2027 450,000.00 06/08/2023
4.39%
431,736.33
439,210.22
97.09
4.56%
436,900.37
1,216.13
0.92%
(2,309.86)
Aaa/AA+
AAA
2.31
2.10
31
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 350,000.00 04/18/2024
5.06%
330,654.30
334,970.40
96.71
4.56%
338,485.74
909.13
0.71%
3,515.33
Aaa/AA+
AAA
2.48
2.19
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 240,000.00 06/08/2023
4.34%
229,940.63
233,724.55
96.67
4.57%
231,996.48
648.80
0.49%
(1,728.07)
Aaa/AA+
AA+
2.65
2.42
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 495,749.32 06/09/2023
4.41%
472,549.79
481,091.44
96.46
4.57%
478,193.44
1,316.63
1.00%
(2,897.99)
Aaa/AAA
AA+
2.73
2.48
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 670,000.00 05/24/2023
4.27%
643,932.81
652,979.38
96.44
4.60%
646,174.60
1,870.42
1.35%
(6,804.79)
Aaa/AA+
AAA
3.07
2.75
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 780,000.00 05/24/2023
4.24%
765,679.69
770,315.07
97.28
4.70%
758,794.14
2,502.50
1.59%
(11,520.93)
Aaa/AA+
AAA
3.40
3.04
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 350,000.00 11/21/2024
4.53%
342,070.31
342,282.71
97.41
4.65%
340,928.95
1,137.50
0.71%
(1,353.77)
Aaa/AA+
AAA
3.65
3.30
3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 225,000.00 06/21/2024
4.65%
207,764.65
209,573.36
92.82
4.71%
208,842.66
544.31
0.44%
(730.70)
Aaa/AA+
AAA
4.48
4.03
Total Agency CMBS 4,260,749.32 4.45%
4,098,871.48
4,149,841.04
96.83
4.60%
4,125,159.69
12,146.24
8.65%
(24,681.35)
Aaa/AA+
AAA
2.89
2.60
CASH
CCYUSD Receivable 2,130.94 --
0.00%
2,130.94
2,130.94
1.00
0.00%
2,130.94
0.00
0.00%
0.00
Aaa/AAA
AAA
0.00
0.00
Total Cash 2,130.94 0.00%
2,130.94
2,130.94
1.00
0.00%
2,130.94
0.00
0.00%
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
748,356.25
99.81
4.96%
748,554.75
0.00
1.57%
198.50
P-1/A-1
NA
0.04
0.04
Total Commercial
Paper 750,000.00 5.43%
723,152.08
748,356.25
99.81
4.96%
748,554.75
0.00
1.57%
198.50
P-1/A-1
NA
0.04
0.04
CORPORATE
166764BW9 CHEVRON CORP 1.554
05/11/2025 700,000.00 01/12/2023
3.65%
667,380.00
695,011.06
98.91
4.63%
692,388.95
1,510.83
1.45%
(2,622.11)
Aa2/AA-
NA
0.36
0.35
32
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
78016FZT4 ROYAL BANK OF CANADA 4.875
01/12/2026 550,000.00 07/19/2023
5.34%
544,197.50
547,591.90
100.27
4.60%
551,487.26
12,586.98
1.16%
3,895.36
A1/A
AA-
1.03
0.97
69371RS49 PACCAR FINANCIAL CORP 4.45
03/30/2026 600,000.00 03/28/2023
4.47%
599,634.00
599,848.72
99.93
4.51%
599,557.16
6,749.17
1.26%
(291.56)
A1/A+
NA
1.24
1.19
00440EAV9 CHUBB INA HOLDINGS LLC 3.35
05/03/2026 500,000.00 03/09/2023
5.09%
475,060.00
489,410.83
98.45
4.56%
492,227.10
2,698.61
1.03%
2,816.27
A2/A
A
1.34
1.28
341081GR2 FLORIDA POWER & LIGHT CO 4.45
05/15/2026 550,000.00 05/18/2023
4.65%
547,030.00
548,639.09
100.01
4.44%
550,031.59
3,127.36
1.15%
1,392.50
A1/A
A+
1.37
1.31
24422EWX3 JOHN DEERE CAPITAL CORP 4.75
06/08/2026 500,000.00 06/05/2023
4.72%
500,470.00
500,224.28
100.42
4.44%
502,099.94
1,517.36
1.05%
1,875.66
A1/A
A+
1.44
1.37
74340XBK6 PROLOGIS LP 3.25 10/01/2026 550,000.00 01/16/2024
4.53%
532,240.50
538,520.20
97.88
4.52%
538,330.73
4,468.75
1.13%
(189.47)
A3/A
WR
1.75
1.66
89236TDR3 TOYOTA MOTOR CREDIT CORP 3.2
01/11/2027 600,000.00 01/22/2024
4.57%
577,398.00
584,556.34
97.36
4.58%
584,142.68
9,066.67
1.22%
(413.66)
A1/A+
A+
2.03
1.90
63743HFM9
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.8
02/05/2027
550,000.00 01/25/2024
4.75%
550,792.00
550,545.85
100.30
4.64%
551,663.20
10,706.67
1.16%
1,117.35
A2/A-
A
2.10
1.86
17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 550,000.00 --
4.82%
549,759.00
549,826.47
100.73
4.44%
554,015.02
9,166.67
1.16%
4,188.54
A1/AA-
NA
2.16
1.92
857477CL5 STATE STREET CORP 4.993
03/18/2027 525,000.00 03/13/2024
4.99%
525,000.00
525,000.00
100.83
4.59%
529,369.52
7,499.90
1.11%
4,369.52
Aa3/A
AA-
2.21
1.97
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 350,000.00 04/19/2023
4.90%
350,497.00
350,217.66
100.42
4.95%
351,460.00
3,126.23
0.74%
1,242.33
Aa3/A
AA-
2.32
1.25
14913UAL4 CATERPILLAR FINANCIAL SERVICES
CORP 5.0 05/14/2027 550,000.00 05/13/2024
5.01%
549,818.50
549,856.82
101.02
4.54%
555,600.22
3,590.28
1.16%
5,743.39
A2/A
A+
2.37
2.20
74456QBS4 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.0 05/15/2027 337,000.00 04/18/2023
4.48%
318,673.94
326,344.74
96.50
4.57%
325,219.78
1,291.83
0.68%
(1,124.96)
A1/A
WR
2.37
2.24
437076DB5 HOME DEPOT INC 4.875
06/25/2027 600,000.00 06/20/2024
4.92%
599,208.00
599,345.42
100.95
4.47%
605,685.02
487.50
1.27%
6,339.59
A2/A
A
2.48
2.24
532457CP1 ELI LILLY AND CO 4.15 08/14/2027 305,000.00 08/12/2024
4.18%
304,752.95
304,784.54
99.46
4.37%
303,348.48
4,816.88
0.64%
(1,436.06)
A1/A+
NA
2.62
2.42
89115A2M3 TORONTO-DOMINION BANK 5.156
01/10/2028 575,000.00 07/12/2023
5.29%
571,929.50
572,934.29
100.50
4.97%
577,880.41
14,082.33
1.21%
4,946.12
A2/A-
AA-
3.03
2.70
33
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
756109AU8 REALTY INCOME CORP 3.65
01/15/2028 500,000.00 04/10/2023
4.87%
474,240.00
483,572.26
96.55
4.89%
482,751.84
8,415.28
1.01%
(820.42)
A3/A-
WR
3.04
2.78
06051GGF0 BANK OF AMERICA CORP 3.824
01/20/2028 600,000.00 07/12/2023
5.53%
567,738.00
581,209.77
97.83
5.33%
586,999.80
10,261.07
1.23%
5,790.03
A1/A-
AA-
3.05
1.91
46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 200,000.00 01/17/2024
4.99%
200,292.00
200,200.35
100.37
5.08%
200,740.99
4,424.00
0.42%
540.64
A1/A
AA-
3.06
1.89
06368LGV2 BANK OF MONTREAL 5.203
02/01/2028 600,000.00 09/05/2023
5.48%
593,520.00
595,462.39
100.78
4.93%
604,661.60
13,007.50
1.27%
9,199.21
A2/A-
AA-
3.09
2.69
58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 05/08/2023
4.07%
129,894.70
129,928.99
98.53
4.52%
128,090.26
643.50
0.27%
(1,838.74)
A1/A+
NA
3.38
3.10
61744YAK4 MORGAN STANLEY 3.591
07/22/2028 500,000.00 08/10/2023
5.22%
465,070.00
474,867.44
96.43
4.70%
482,152.20
7,930.13
1.01%
7,284.76
A1/A-
A+
3.56
2.36
713448FX1 PEPSICO INC 4.5 07/17/2029 500,000.00 07/16/2024
4.52%
499,490.00
499,536.92
99.81
4.55%
499,047.52
10,250.00
1.05%
(489.41)
A1/A+
NA
4.54
3.98
Total Corporate 11,922,000.00 4.82%
11,694,085.59
11,797,436.35
99.41
4.66%
11,848,951.23
151,425.48
24.84%
51,514.88
A1/A
A+
2.23
1.92
MONEY MARKET
FUND
31846V807 FIRST AMER:TRS OBG Y 219,455.23 --
4.09%
219,455.23
219,455.23
1.00
4.09%
219,455.23
0.00
0.46%
0.00
Aaa/AAAm
AAA
0.00
0.00
Total Money Market
Fund 219,455.23 4.09%
219,455.23
219,455.23
1.00
4.09%
219,455.23
0.00
0.46%
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
304,761.14
100.41
4.37%
306,248.05
6,405.00
0.64%
1,486.91
Aaa/AAA
NA
3.53
3.17
459058LN1
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
650,000.00 12/17/2024
4.32%
637,513.50
637,612.66
97.44
4.48%
633,338.18
5,247.40
1.33%
(4,274.48)
Aaa/AAA
NA
4.79
4.28
Total Supranational 955,000.00 4.39%
942,174.95
942,373.80
98.41
4.44%
939,586.23
11,652.40
1.97%
(2,787.57)
Aaa/AAA
NA
4.38
3.92
34
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
US TREASURY
91282CAJ0 UNITED STATES TREASURY 0.25
08/31/2025 1,200,000.00 01/12/2023
3.74%
1,095,937.50
1,173,822.12
97.39
4.31%
1,168,711.02
1,019.34
2.45%
(5,111.10)
Aaa/AA+
AA+
0.67
0.64
91282CAM3 UNITED STATES TREASURY 0.25
09/30/2025 500,000.00 01/12/2023
3.65%
456,445.31
488,057.59
97.09
4.27%
485,465.86
319.37
1.02%
(2,591.73)
Aaa/AA+
AA+
0.75
0.73
91282CJE2 UNITED STATES TREASURY 5.0
10/31/2025 1,000,000.00 05/28/2024
5.09%
998,671.88
999,226.11
100.58
4.27%
1,005,771.15
8,563.54
2.11%
6,545.04
Aaa/AA+
AA+
0.83
0.80
9128285N6 UNITED STATES TREASURY 2.875
11/30/2025 500,000.00 01/12/2023
3.15%
496,212.61
498,802.28
98.77
4.26%
493,856.61
1,263.74
1.04%
(4,945.67)
Aaa/AA+
AA+
0.91
0.88
91282CGE5 UNITED STATES TREASURY 3.875
01/15/2026 1,000,000.00 02/06/2023
4.13%
992,929.69
997,502.66
99.67
4.21%
996,665.70
17,900.82
2.09%
(836.96)
Aaa/AA+
AA+
1.04
0.99
91282CBQ3 UNITED STATES TREASURY 0.5
02/28/2026 500,000.00 01/12/2023
3.50%
455,839.84
483,657.27
95.81
4.25%
479,034.57
849.45
1.00%
(4,622.70)
Aaa/AA+
AA+
1.16
1.13
91282CKH3 UNITED STATES TREASURY 4.5
03/31/2026 1,000,000.00 04/24/2024
4.96%
991,679.69
994,641.96
100.27
4.27%
1,002,722.76
11,497.25
2.10%
8,080.80
Aaa/AA+
AA+
1.25
1.18
91282CBW0 UNITED STATES TREASURY 0.75
04/30/2026 500,000.00 01/12/2023
4.46%
443,595.43
477,325.74
95.51
4.26%
477,574.11
642.27
1.00%
248.37
Aaa/AA+
AA+
1.33
1.29
9128286X3 UNITED STATES TREASURY 2.125
05/31/2026 500,000.00 01/12/2023
4.31%
465,958.71
485,804.65
97.11
4.26%
485,526.01
934.07
1.02%
(278.64)
Aaa/AA+
AA+
1.41
1.36
91282CCJ8 UNITED STATES TREASURY 0.875
06/30/2026 500,000.00 01/12/2023
4.42%
443,595.43
475,699.22
95.15
4.26%
475,743.21
12.09
1.00%
43.99
Aaa/AA+
AA+
1.50
1.46
91282CHY0 UNITED STATES TREASURY 4.625
09/15/2026 900,000.00 09/25/2023
4.81%
895,429.69
897,379.97
100.60
4.25%
905,360.54
12,418.51
1.90%
7,980.57
Aaa/AA+
AA+
1.71
1.60
91282CJC6 UNITED STATES TREASURY 4.625
10/15/2026 500,000.00 10/19/2023
5.05%
494,218.75
496,545.03
100.61
4.26%
503,059.49
4,955.36
1.05%
6,514.46
Aaa/AA+
AA+
1.79
1.68
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 625,000.00 06/26/2024
4.50%
627,148.44
626,775.49
100.84
4.26%
630,239.45
1,350.02
1.32%
3,463.96
Aaa/AA+
AA+
2.45
2.29
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 750,000.00 12/18/2023
4.06%
751,669.92
751,211.63
99.61
4.28%
747,038.19
7,904.36
1.57%
(4,173.44)
Aaa/AA+
AA+
2.75
2.54
91282CLQ2 UNITED STATES TREASURY 3.875
10/15/2027 500,000.00 11/15/2024
4.29%
494,394.53
494,626.99
98.95
4.28%
494,744.85
4,151.79
1.04%
117.85
Aaa/AA+
AA+
2.79
2.59
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 1,000,000.00 02/06/2023
3.84%
1,001,445.31
1,000,884.32
98.85
4.29%
988,521.92
107.04
2.07%
(12,362.40)
Aaa/AA+
AA+
3.00
2.79
35
HOLDINGS REPORT
City of San Rafael | Account #11045 | As of December 31, 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
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 525,000.00 10/17/2024
3.91%
519,934.57
520,222.16
97.81
4.32%
513,500.53
1,673.08
1.08%
(6,721.63)
Aaa/AA+
AA+
3.42
3.16
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 750,000.00 03/12/2024
4.22%
743,496.09
744,714.02
98.97
4.32%
742,245.26
82.87
1.56%
(2,468.76)
Aaa/AA+
AA+
3.50
3.22
91282CJA0 UNITED STATES TREASURY 4.625
09/30/2028 500,000.00 10/19/2023
4.95%
492,968.75
494,676.95
100.94
4.35%
504,675.26
5,908.31
1.06%
9,998.30
Aaa/AA+
AA+
3.75
3.37
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 600,000.00 10/17/2024
3.92%
596,039.06
596,232.59
97.76
4.37%
586,530.83
62.15
1.23%
(9,701.76)
Aaa/AA+
AA+
4.00
3.66
91282CEM9 UNITED STATES TREASURY 2.875
04/30/2029 750,000.00 09/18/2024
3.51%
729,931.64
731,171.02
94.13
4.38%
705,943.87
3,693.02
1.48%
(25,227.15)
Aaa/AA+
AA+
4.33
3.98
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 650,000.00 09/26/2024
3.56%
651,955.08
651,850.75
96.82
4.39%
629,362.36
8,006.04
1.32%
(22,488.39)
Aaa/AA+
AA+
4.67
4.18
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 600,000.00 12/11/2024
4.38%
600,820.31
600,811.11
98.85
4.39%
593,090.18
4,238.95
1.24%
(7,720.93)
Aaa/AA+
AA+
4.83
4.30
Total US Treasury 15,850,000.00 4.22%
15,440,318.23
15,681,641.60
98.56
4.29%
15,615,383.69
97,553.42
32.73%
(66,257.91)
Aaa/AA+
AA+
2.25
2.08
Total Portfolio 48,128,717.04 4.51%
47,303,721.59
47,721,333.31
98.70
4.45%
47,709,896.95
380,686.28
100.00%
(11,436.36)
Aa2/AA-
AA
2.21
1.83
Total Market Value +
Accrued 48,090,583.23
36
HOLDINGS REPORT
San Rafael Reporting | Account #11046 | As of December 31, 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 609,267.79 --
0.00%
609,267.79
609,267.79
1.00
0.00%
609,267.79
0.00
0.90%
0.00
Aaa/AAA
AAA
0.00
0.00
Total Cash 609,267.79 0.00%
609,267.79
609,267.79
1.00
0.00%
609,267.79
0.00
0.90%
0.00
Aaa/AAA
AAA
0.00
0.00
LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 67,213,508.20 --
4.43%
67,213,508.20
67,213,508.20
1.00
4.43%
67,213,508.20
0.00
99.10%
0.00
NA/NA
NA
0.00
0.00
Total LAIF 67,213,508.20 4.43%
67,213,508.20
67,213,508.20
1.00
4.43%
67,213,508.20
0.00
99.10%
0.00
NA/NA
NA
0.00
0.00
Total Portfolio 67,822,775.99 4.39%
67,822,775.99
67,822,775.99
1.00
4.39%
67,822,775.99
0.00
100.00%
0.00
Aaa/AAA
AAA
0.00
0.00
Total Market Value +
Accrued 67,822,775.99
37
TRANSACTIONS
38
TRANSACTION LEDGER
City of San Rafael | Account #11045|10/01/2024 Through 12/31/2024|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/18/2024 91282CHE4 525,000.00 UNITED STATES TREASURY
3.625 05/31/2028 99.035 3.91%(519,934.57)(7,279.71)(527,214.28)0.00
Purchase 10/18/2024 91282CJR3 600,000.00 UNITED STATES TREASURY
3.75 12/31/2028 99.340 3.92%(596,039.06)(6,725.54)(602,764.60)0.00
Purchase 11/18/2024 91282CLQ2 500,000.00 UNITED STATES TREASURY
3.875 10/15/2027 98.879 4.29%(494,394.53)(1,809.75)(496,204.28)0.00
Purchase 11/26/2024 3137FJEH8 350,000.00 FHMS K-081 A2 3.9
08/25/2028 97.734 4.53%(342,070.31)(947.92)(343,018.23)0.00
Purchase 12/12/2024 91282CLR0 600,000.00 UNITED STATES TREASURY
4.125 10/31/2029 100.137 4.09%(600,820.31)(2,871.55)(603,691.86)0.00
Purchase 12/18/2024 459058LN1 650,000.00
INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPM 3.875
10/16/2029
98.079 4.32%(637,513.50)(4,337.85)(641,851.35)0.00
Total Purchase 3,225,000.00 (3,190,772.28)(23,972.32)(3,214,744.60)0.00
TOTAL
ACQUISITIONS 3,225,000.00 (3,190,772.28)(23,972.32)(3,214,744.60)0.00
DISPOSITIONS
Maturity 10/31/2024 912828YM6 (1,000,000.00)UNITED STATES TREASURY
1.5 10/31/2024 100.000 1.50%1,000,000.00 0.00 1,000,000.00 0.00
Maturity 11/30/2024 912828YV6 (700,000.00)UNITED STATES TREASURY
1.5 11/30/2024 100.000 1.50%700,000.00 0.00 700,000.00 0.00
Total Maturity (1,700,000.00)1,700,000.00 0.00 1,700,000.00 0.00
TOTAL
DISPOSITIONS (1,700,000.00)1,700,000.00 0.00 1,700,000.00 0.00
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TRANSACTION LEDGER
San Rafael Reporting | Account #11046|10/01/2024 Through 12/31/2024|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/15/2024 90LAIF$00 717,469.72 Local Agency Investment
Fund State Pool 1.000 4.48%(717,469.72)0.00 (717,469.72)0.00
Purchase 12/19/2024 90LAIF$00 14,000,000.00 Local Agency Investment
Fund State Pool 1.000 4.43%(14,000,000.00)0.00 (14,000,000.00)0.00
Total Purchase 14,717,469.72 (14,717,469.72)0.00 (14,717,469.72)0.00
TOTAL
ACQUISITIONS 14,717,469.72 (14,717,469.72)0.00 (14,717,469.72)0.00
DISPOSITIONS
Sale 10/09/2024 90LAIF$00 (8,000,000.00)Local Agency Investment
Fund State Pool 1.000 4.48%8,000,000.00 0.00 8,000,000.00 0.00
Total Sale (8,000,000.00)8,000,000.00 0.00 8,000,000.00 0.00
TOTAL
DISPOSITIONS (8,000,000.00)8,000,000.00 0.00 8,000,000.00 0.00
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IMPORTANT DISCLOSURES
City of San Rafael | Account #11045 | As of December 31, 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.
41
BENCHMARK DISCLOSURES
City of San Rafael | Account #11045 | As of December 31, 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.
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