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HomeMy WebLinkAboutInvestment Report as of June 30, 2024 (Response to City Divestment Correspondence)INVESTMENT REPORT City of Palm Springs | Account #10805 | 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. TABLE OF CONTENTS ECONOMIC UPDATE ACCOUNT PROFILE CONSOLIDATED INFORMATION PORTFOLIO HOLDINGS TRANSACTIONS 1 SECTION 1 | ECONOMIC UPDATE 2 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 Fed’s target. 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 Employment -400 -200 0 200 400 600 800 1,000 MOM Change In Thousands (000'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)Rate (%)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 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 Thousands (000'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 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 YOY (%) Change0.0% 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 YOY (%) ChangeIn 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 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 YOY (%) ChangeMay 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 Index LevelConsumer 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 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) RecessionYOY(%) Change-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 Month AverageThe 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 Housing 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In Thousands of UnitsAnnualized 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 RecessionYOY (%) Change9 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 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 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$ millionsAs 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 Yield (%)12 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 Yield (%)0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Jun-24 Mar-24 Jun-23Yield (%)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 SECTION 2 | ACCOUNT PROFILE 14 OBJECTIVES City of Palm Springs | As of June 30, 2024 The investment objectives of the City of Palm Springs are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return. The performance objective for the portfolio is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation. In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 15 STATEMENT OF COMPLIANCE City of Palm Springs | Account #10805 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV)20.0 2.1 Compliant Max % Issuer (MV)5.0 2.1 Compliant Max Maturity (Years)5.0 0.0 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV)20.0 0.1 Compliant Max % Issuer (MV)5.0 0.1 Compliant Max Maturity (Years)5 1 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)180 0.0 Compliant Min Rating (A-1 by 3)0.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max % (MV)10.0 0.0 Compliant Max Issuer Amount (MV)500,000.0 0.0 Compliant Max Maturity (Years)1.0 0.0 Compliant Min Rating (A-1 by 2; A- by 2)0.0 0.0 Compliant COMMERCIAL PAPER Max % (MV)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)270 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV)30.0 22.1 Compliant Max % Issuer (MV)5.0 1.4 Compliant Max Maturity (Years)5 4 Compliant Min Rating (A- by 1)0.0 0.0 Compliant 16 STATEMENT OF COMPLIANCE City of Palm Springs | Account #10805 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/ TD) Max % (MV)10.0 0.0 Compliant Max Maturity (Years)1 0.0 Compliant FEDERAL AGENCIES Max % (MV)60.0 31.7 Compliant Max Callables (MV)20.0 2.7 Compliant Max Maturity (Years)5 4 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV)75.0 0.0 Compliant LOCAL GOVERNMENT INVESTMENT POOL (LGIP) Max % (MV)100.0 0.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)20.0 0.4 Compliant Max % Issuer (MV)10.0 0.4 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON-AGENCY) Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUTUAL FUNDS Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)10.0 0.0 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant 17 STATEMENT OF COMPLIANCE City of Palm Springs | Account #10805 | As of June 30, 2024 Rules Name Limit Actual Compliance Status Notes NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 2 or A-1 by 2 if > FDIC Limit)0.0 0.0 Compliant SRI PROHIBITED INVESTMENTS Prohibited Investments - Firearms 0.0 0.0 Compliant SUPRANATIONAL OBLIGATIONS Max % (MV)30.0 3.0 Compliant Max % Issuer (MV)10.0 1.2 Compliant Max Maturity (Years)5 1 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 40.5 Compliant Max Maturity (Years)5 4 Compliant 18 PORTFOLIO CHARACTERISTICS City of Palm Springs | Account #10805 | As of June 30, 2024 Benchmark*6/30/2024 Portfolio 3/31/2024 Portfolio Average Maturity (yrs)2.76 2.59 2.37 Average Modified Duration 2.56 2.35 2.18 Average Purchase Yield 3.64%3.48% Average Market Yield 4.65%4.82%5.12% Average Quality**AA+AA AA Total Market Value 415,993,262 385,546,033 *Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19 SECTOR DISTRIBUTION City of Palm Springs | Account #10805 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 US Treasury 40.5%40.7% Agency 31.7%28.5% Corporate 22.1%22.1% Supras 2.9%3.2% Agency CMBS 2.2%2.3% Money Mkt Fd 0.4%2.8% ABS 0.1%0.2% Cash 0.0%0.2% 20 DURATION ALLOCATION City of Palm Springs | Account #10805 | As of June 30, 2024 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ 06/30/2024 5.8%6.7%8.0%20.1%24.1%22.0%13.4%0.0%0.0% 21 ISSUERS City of Palm Springs | Account #10805 | As of June 30, 2024 Issuer Investment Type % Portfolio United States US Treasury 40.54% Farm Credit System Agency 16.06% Federal Home Loan Banks Agency 14.17% FHLMC Agency CMBS 2.15% FNMA Agency 1.48% PACCAR Inc Corporate 1.43% Inter-American Development Bank Supras 1.21% Caterpillar Inc.Corporate 1.21% Eli Lilly and Company Corporate 1.19% Deere & Company Corporate 1.16% International Finance Corporation Supras 1.15% The Home Depot, Inc.Corporate 1.09% The PNC Financial Services Group, In Corporate 1.07% Bank of America Corporation Corporate 0.97% U.S. Bancorp Corporate 0.95% State Street Corporation Corporate 0.94% Mastercard Incorporated Corporate 0.93% Apple Inc.Corporate 0.92% Pfizer Inc.Corporate 0.92% Merck & Co., Inc.Corporate 0.90% Visa Inc.Corporate 0.89% Morgan Stanley Corporate 0.78% JPMorgan Chase & Co.Corporate 0.78% BNY Mellon Corp Corporate 0.75% Target Corporation Corporate 0.73% Truist Financial Corporation Corporate 0.72% Northern Trust Corporation Corporate 0.71% Microsoft Corporation Corporate 0.70% 22 ISSUERS City of Palm Springs | Account #10805 | As of June 30, 2024 Issuer Investment Type % Portfolio International Bank for Recon and Dev Supras 0.58% The Procter & Gamble Company Corporate 0.57% The Charles Schwab Corporation Corporate 0.50% Salesforce, Inc.Corporate 0.48% Costco Wholesale Corporation Corporate 0.46% Allspring Group Holdings LLC Money Mkt Fd 0.37% Amazon.com, Inc.Corporate 0.36% Honda Auto Receivables Owner Trust ABS 0.09% Toyota Auto Receivables Owner Trust ABS 0.05% Cash Cash 0.01% TOTAL 100.00% 23 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 5.8%6.7%8.0%20.1%24.1%22.0%13.4%0.0%0.0% ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 0.0%0.1%2.4%35.0%26.8%22.9%12.8%0.0%0.0% DURATION DISTRIBUTION City of Palm Springs | Account #10805 | As of June 30, 2024 Portfolio Compared to the Benchmark 24 DURATION DISTRIBUTION City of Palm Springs | Account #10805 | 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 5.8%6.7%8.0%20.1%24.1%22.0%13.4%0.0%0.0% 03/31/2024 7.2%4.2%11.3%19.9%21.6%20.0%8.5%0.0%0.0% 25 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN City of Palm Springs 0.91%4.59%2.54%0.82%0.75% Benchmark 0.82%4.18%1.85%(0.34%)(0.29%) *Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated 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 Palm Springs | Account #10805 | As of June 30, 2024 Total Rate of Return : Inception | 04/01/2021 -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Palm Springs Benchmark 26 PORTFOLIO CHARACTERISTICS City of Palm Springs Reporting | Account #10806 | 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 4.67%4.62% Average Market Yield 4.67%4.62% Average Quality**AAA AAA Total Market Value 70,863,571 69,959,299 *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 City of Palm Springs Reporting | Account #10806 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 LAIF 62.0%62.1% LGIP 37.3%37.2% Cash 0.7%0.6% 28 CONSOLIDATED INFORMATION 29 PORTFOLIO CHARACTERISTICS City of Palm Springs Cons | Account #10807 | As of June 30, 2024 6/30/2024 Portfolio 3/31/2024 Portfolio Average Maturity (yrs)2.21 2.01 Average Modified Duration 2.01 1.96 Average Purchase Yield 3.79%3.65% Average Market Yield 4.79%4.74% Average Quality**AA+AA+ Total Market Value 486,856,833 456,280,055 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 30 SECTOR DISTRIBUTION City of Palm Springs Cons | Account #10807 | As of June 30, 2024 Sector as a Percentage of Market Value Sector 06/30/2024 03/31/2024 US Treasury 34.6%34.4% Agency 27.1%24.1% Corporate 18.9%18.7% LAIF 9.1%9.6% LGIP 5.5%5.7% Supras 2.5%2.7% Agency CMBS 1.8%2.0% Money Mkt Fd 0.3%2.4% ABS 0.1%0.2% Cash 0.1%0.3% 31 SECTION 3 | PORTFOLIO HOLDINGS 32 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 89190GAC1 TAOT 2021-B A3 0.26 11/17/2025 203,473.60 06/14/2021 203,473.60 98.99 201,419.74 0.05%NA/AAA 1.38 0.26%203,473.60 4.29%23.51 (2,053.86)AAA 0.27 43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 393,581.75 02/03/2022 389,153.95 97.97 385,573.58 0.09%Aaa/NA 1.56 1.48%391,991.30 4.64%96.21 (6,417.72)AAA 0.55 592,627.56 98.32 586,993.32 0.14%Aaa/AAA 1.50 Total ABS 597,055.35 1.06%595,464.90 4.52%119.72 (8,471.58)AAA 0.45 AGENCY 3133ENG20 FEDERAL FARM CREDIT BANKS 5,000,000.00 08/11/2022 5,005,300.00 99.71 4,985,663.35 1.21%Aaa/AA+0.13 FUNDING CORP 3.3 08/15/2024 3.24%5,000,326.27 5.54%62,333.33 (14,662.92)AA+0.12 3133ENZ94 FEDERAL FARM CREDIT BANKS 5,000,000.00 11/23/2022 4,978,950.00 99.59 4,979,395.35 1.21%Aaa/AA+0.39 FUNDING CORP 4.5 11/18/2024 4.72%4,995,912.62 5.57%26,875.00 (16,517.27)AA+0.38 3130ATUR6 FEDERAL HOME LOAN BANKS 4.625 5,000,000.00 04/26/2023 5,021,550.00 99.64 4,981,846.10 1.21%Aaa/AA+0.45 12/13/2024 4.34%5,005,966.02 5.43%11,562.50 (24,119.92)AA+0.44 3130AQF40 FEDERAL HOME LOAN BANKS 1.0 3,000,000.00 01/24/2022 2,978,610.00 97.97 2,939,149.20 0.71%Aaa/AA+0.47 12/20/2024 1.25%2,996,529.17 5.40%916.67 (57,379.97)AA+0.46 3133ENKS8 FEDERAL FARM CREDIT BANKS 3,000,000.00 01/24/2022 2,988,720.00 97.88 2,936,252.97 0.71%Aaa/AA+0.52 FUNDING CORP 1.125 01/06/2025 1.25%2,998,020.50 5.35%16,406.25 (61,767.53)AA+0.50 3135G0X24 FEDERAL NATIONAL MORTGAGE 3,100,000.00 12/28/2021 3,155,955.00 98.13 3,042,161.72 0.74%Aaa/AA+0.52 ASSOCIATION 1.625 01/07/2025 1.02%3,109,621.22 5.31%24,347.92 (67,459.50)AA+0.50 3133ELVQ4 FEDERAL FARM CREDIT BANKS 2,600,000.00 08/23/2021 2,635,074.00 96.89 2,519,196.71 0.61%Aaa/AA+0.75 FUNDING CORP 0.95 04/01/2025 0.57%2,607,302.64 5.21%6,175.00 (88,105.93)AA+0.73 3135G04Z3 FEDERAL NATIONAL MORTGAGE 3,200,000.00 12/29/2021 3,136,448.00 95.66 3,061,248.00 0.74%Aaa/AA+0.96 ASSOCIATION 0.5 06/17/2025 1.08%3,182,366.21 5.17%622.22 (121,118.21)AA+0.94 3133EPRS6 FEDERAL FARM CREDIT BANKS 5,250,000.00 08/22/2023 5,229,105.00 99.80 5,239,690.42 1.27%Aaa/AA+1.08 FUNDING CORP 4.875 07/28/2025 5.09%5,238,381.79 5.06%108,773.44 1,308.63 AA+1.02 3133ENP95 FEDERAL FARM CREDIT BANKS 4,200,000.00 05/30/2023 4,177,656.00 99.18 4,165,552.19 1.01%Aaa/AA+1.25 FUNDING CORP 4.25 09/30/2025 4.49%4,188,055.26 4.93%45,120.83 (22,503.07)AA+1.19 3130ATUC9 FEDERAL HOME LOAN BANKS 4.5 4,000,000.00 02/14/2023 4,010,520.00 99.42 3,976,806.00 0.96%Aaa/AA+1.45 12/12/2025 4.40%4,005,397.75 4.92%9,500.00 (28,591.75)AA+1.38 33 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 3130ALHH0 FEDERAL HOME LOAN BANKS 0.96 03/05/2026 3,000,000.00 03/28/2022 2.68% 2,806,200.00 2,917,463.05 93.64 4.95% 2,809,123.77 9,280.00 0.68% (108,339.28) Aaa/AA+ AA+ 1.68 1.63 3133EPCR4 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 03/09/2026 5,000,000.00 04/26/2023 3.87% 5,118,550.00 5,069,748.62 99.77 4.89% 4,988,612.90 73,888.89 1.21% (81,135.72) Aaa/AA+ AA+ 1.69 1.58 3130AWLZ1 FEDERAL HOME LOAN BANKS 4.75 06/12/2026 5,250,000.00 08/22/2023 4.85% 5,235,772.50 5,240,121.34 99.83 4.84% 5,241,221.00 13,161.46 1.27% 1,099.67 Aaa/AA+ AA+ 1.95 1.84 3130ANMH0 FEDERAL HOME LOAN BANKS 1.1 08/20/2026 2,000,000.00 09/08/2022 3.68% 1,810,600.00 1,897,479.53 92.35 4.91% 1,846,968.60 8,005.56 0.45% (50,510.93) Aaa/AA+ AA+ 2.14 2.06 3133EMNW8 FEDERAL FARM CREDIT BANKS FUNDING CORP 0.7 01/27/2027 2,000,000.00 04/25/2022 3.01% 1,795,000.00 1,889,061.60 90.42 4.69% 1,808,372.10 5,988.89 0.44% (80,689.50) Aaa/AA+ AA+ 2.58 2.49 3130AL5A8 FEDERAL HOME LOAN BANKS 0.9 02/26/2027 5,000,000.00 -- 3.15% 4,501,000.00 4,721,595.18 90.65 4.69% 4,532,412.45 15,625.00 1.10% (189,182.73) Aaa/AA+ AA+ 2.66 2.56 3133EPBM6 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.125 08/23/2027 3,800,000.00 02/24/2023 4.36% 3,763,862.00 3,774,672.51 98.73 4.56% 3,751,568.62 55,733.33 0.91% (23,103.89) Aaa/AA+ AA+ 3.15 2.87 3130ATUS4 FEDERAL HOME LOAN BANKS 4.25 12/10/2027 6,000,000.00 01/25/2023 3.63% 6,162,990.00 6,115,164.94 99.11 4.53% 5,946,696.90 14,875.00 1.44% (168,468.04) Aaa/AA+ AA+ 3.45 3.16 3133EPAV7 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 02/14/2028 6,000,000.00 02/14/2023 4.07% 5,948,760.00 5,962,854.51 97.94 4.50% 5,876,170.32 88,479.17 1.42% (86,684.19) Aaa/AA+ AA+ 3.63 3.29 3130ATS57 FEDERAL HOME LOAN BANKS 4.5 03/10/2028 6,000,000.00 03/30/2023 3.89% 6,163,404.00 6,121,964.89 99.88 4.53% 5,992,638.18 83,250.00 1.45% (129,326.71) Aaa/AA+ AA+ 3.70 3.32 3133EPGW9 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 04/25/2028 5,000,000.00 04/26/2023 3.64% 5,053,550.00 5,040,903.40 97.93 4.47% 4,896,325.15 35,520.83 1.19% (144,578.25) Aaa/AA+ AA+ 3.82 3.48 3133EPNH4 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 06/21/2028 7,000,000.00 06/22/2023 4.10% 6,928,110.00 6,942,842.53 98.08 4.41% 6,865,785.43 7,534.72 1.66% (77,057.10) Aaa/AA+ AA+ 3.98 3.64 3130AWTR1 FEDERAL HOME LOAN BANKS 4.375 09/08/2028 5,000,000.00 10/19/2023 5.04% 4,856,850.00 4,877,300.00 99.66 4.46% 4,983,200.55 68,663.19 1.21% 105,900.55 Aaa/AA+ AA+ 4.19 3.74 3130AXQK7 FEDERAL HOME LOAN BANKS 4.75 12/08/2028 7,100,000.00 01/23/2024 4.10% 7,299,865.00 7,282,011.89 101.38 4.40% 7,198,225.66 21,546.53 1.74% (83,786.23) Aaa/AA+ AA+ 4.44 3.96 3133ERAK7 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.375 04/10/2029 5,200,000.00 04/25/2024 4.71% 5,122,780.00 5,125,595.76 99.92 4.39% 5,196,009.47 51,187.50 1.26% 70,413.71 Aaa/AA+ AA+ 4.78 4.23 3133ERDH1 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 04/30/2029 8,000,000.00 05/07/2024 4.53% 8,077,200.00 8,074,906.93 101.45 4.41% 8,116,233.52 64,388.89 1.97% 41,326.59 Aaa/AA+ AA+ 4.83 4.25 34 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 3130B1BC0 FEDERAL HOME LOAN BANKS 4.625 8,000,000.00 06/06/2024 8,097,920.00 101.02 8,081,625.76 1.96%Aaa/AA+4.94 06/08/2029 4.35%8,096,633.69 4.39%59,611.11 (15,007.93)AA+4.35 132,060,301.50 98.75 130,958,152.38 31.71%Aaa/AA+2.70 Total Agency 132,700,000.00 3.82%132,478,199.81 4.78%989,373.23 (1,520,047.43)AA+2.45 AGENCY CMBS 3137BSRE5 FHMS K-059 A2 3.12 09/25/2026 2,750,000.00 02/18/2022 2,868,164.06 96.11 2,643,111.08 0.64%Aaa/AAA 2.24 2.07%2,806,718.75 4.99%7,150.00 (163,607.68)AAA 2.02 3137H4BY5 FHMS K-746 A2 2.031 09/25/2028 7,000,000.00 10/18/2023 5,993,476.56 89.35 6,254,441.20 1.51%Aaa/AA+4.24 5.43%6,136,374.54 4.86%11,847.50 118,066.66 AAA 3.91 8,861,640.62 91.36 8,897,552.28 2.15%Aaa/AA+3.64 Total Agency CMBS 9,750,000.00 4.43%8,943,093.29 4.90%18,997.50 (45,541.01)AAA 3.35 CASH CCYUSD Receivable 24,787.16 --24,787.16 1.00 24,787.16 0.01%Aaa/AAA 0.00 0.00%24,787.16 0.00%0.00 0.00 AAA 0.00 24,787.16 1.00 24,787.16 0.01%Aaa/AAA 0.00 Total Cash 24,787.16 0.00%24,787.16 0.00%0.00 0.00 AAA 0.00 CORPORATE 79466LAG9 SALESFORCE INC 0.625 07/15/2024 2,000,000.00 12/10/2021 1,980,340.00 99.81 1,996,157.46 0.48%A1/A+0.04 1.01%1,999,708.43 5.23%5,763.89 (3,550.97)NA 0.04 91159HHX1 US BANCORP 2.4 07/30/2024 1,250,000.00 08/23/2021 1,314,212.50 99.72 1,246,529.41 0.30%A3/A 0.08 0.54%1,250,000.00 5.69%12,583.33 (3,470.59)A 0.08 05552JAA7 PNC BANK NA (DELAWARE) 2.5 2,000,000.00 11/30/2022 1,917,860.00 99.51 1,990,165.66 0.48%A2/A 0.16 08/27/2024 4.99%1,992,615.17 5.59%17,222.22 (2,449.51)A+0.16 61761JVL0 MORGAN STANLEY 3.7 10/23/2024 3,250,000.00 --3,268,942.50 99.41 3,230,670.56 0.78%A1/A-0.31 3.45%3,252,431.20 5.59%22,713.89 (21,760.64)A+0.31 06406RAX5 BANK OF NEW YORK MELLON CORP 1,200,000.00 10/25/2021 1,199,068.50 98.51 1,182,168.73 0.29%A1/A 0.32 0.85 10/25/2024 0.88%1,199,901.23 5.58%1,870.00 (17,732.50)AA-0.31 35 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 14913Q3B3 CATERPILLAR FINANCIAL SERVICES CORP 2.15 11/08/2024 2,000,000.00 12/09/2021 1.20% 2,054,620.00 2,006,692.37 98.81 5.55% 1,976,153.98 6,330.56 0.48% (30,538.39) A2/A A+ 0.36 0.35 07330NAT2 TRUIST BANK 2.15 12/06/2024 3,000,000.00 11/28/2022 4.81% 2,847,750.00 2,967,360.24 98.45 5.80% 2,953,609.71 4,479.17 0.72% (13,750.53) A3/A A 0.44 0.42 023135CE4 AMAZON.COM INC 3.0 04/13/2025 1,500,000.00 04/25/2022 2.96% 1,501,515.00 1,500,400.45 98.21 5.35% 1,473,148.83 9,750.00 0.36% (27,251.62) A1/AA AA- 0.79 0.76 037833DT4 APPLE INC 1.125 05/11/2025 2,000,000.00 05/25/2022 2.82% 1,903,380.00 1,971,934.61 96.50 5.32% 1,930,087.26 3,125.00 0.47% (41,847.35) Aaa/AA+ NA 0.86 0.84 91159HHZ6 US BANCORP 1.45 05/12/2025 800,000.00 01/24/2022 1.64% 794,984.00 798,685.49 96.58 5.54% 772,634.95 1,578.89 0.19% (26,050.54) A3/A A 0.87 0.84 69353REQ7 PNC BANK NA (DELAWARE) 3.25 06/01/2025 2,500,000.00 08/25/2022 3.92% 2,456,550.00 2,485,545.43 97.94 5.57% 2,448,608.90 6,770.83 0.59% (36,936.53) A2/A A+ 0.92 0.89 69371RR99 PACCAR FINANCIAL CORP 3.55 08/11/2025 3,000,000.00 08/11/2022 3.60% 2,995,680.00 2,998,393.85 98.19 5.24% 2,945,562.03 41,416.67 0.71% (52,831.82) A1/A+ NA 1.11 1.06 437076CR1 HOME DEPOT INC 4.0 09/15/2025 925,000.00 09/12/2022 4.01% 924,667.00 924,865.52 98.54 5.25% 911,526.66 10,894.44 0.22% (13,338.85) A2/A A 1.21 1.15 857477BE2 STATE STREET CORP 2.354 11/01/2025 2,500,000.00 09/08/2022 4.18% 2,411,425.00 2,485,314.21 98.79 6.25% 2,469,771.95 9,808.33 0.60% (15,542.26) A1/A AA- 1.34 0.33 58933YAY1 MERCK & CO INC 0.75 02/24/2026 4,000,000.00 -- 2.77% 3,742,920.00 3,874,873.11 93.38 4.98% 3,735,152.56 10,583.33 0.90% (139,720.55) A1/A+ WR 1.65 1.60 46647PBK1 JPMORGAN CHASE & CO 2.083 04/22/2026 3,300,000.00 -- 2.53% 3,277,439.50 3,289,498.85 97.11 6.58% 3,204,499.72 13,174.97 0.78% (84,999.14) A1/A- AA- 1.81 0.78 06406FAC7 BANK OF NEW YORK MELLON CORP 2.8 05/04/2026 2,000,000.00 01/25/2023 4.38% 1,904,400.00 1,946,149.87 95.98 5.11% 1,919,539.12 8,866.67 0.46% (26,610.75) A1/A AA- 1.84 1.76 808513BR5 CHARLES SCHWAB CORP 1.15 05/13/2026 2,250,000.00 -- 3.39% 2,067,262.50 2,161,849.19 92.48 5.44% 2,080,720.94 3,450.00 0.50% (81,128.25) A2/A- A 1.87 1.80 91159HHN3 US BANCORP 2.375 07/22/2026 2,000,000.00 08/11/2022 3.49% 1,918,340.00 1,957,323.13 94.37 5.29% 1,887,355.08 20,979.17 0.46% (69,968.05) A3/A A 2.06 1.95 24422EVB2 JOHN DEERE CAPITAL CORP 2.25 09/14/2026 2,500,000.00 -- 3.83% 2,357,655.00 2,419,550.37 94.14 5.09% 2,353,424.08 16,718.75 0.57% (66,126.29) A1/A A+ 2.21 2.09 437076CV2 HOME DEPOT INC 4.95 09/30/2026 3,600,000.00 12/21/2023 4.42% 3,647,736.00 3,638,559.75 99.86 5.01% 3,594,985.16 45,045.00 0.87% (43,574.59) A2/A A 2.25 2.08 36 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 717081EA7 PFIZER INC 3.0 12/15/2026 4,000,000.00 --3,852,095.00 95.43 3,817,095.56 0.92%A2/A 2.46 4.00%3,909,864.30 5.00%5,333.33 (92,768.74)WR 2.33 87612EBM7 TARGET CORP 1.95 01/15/2027 3,250,000.00 --3,164,240.00 93.06 3,024,457.15 0.73%A2/A 2.54 2.59%3,201,604.29 4.89%29,222.92 (177,147.14)A 2.41 742718FV6 PROCTER & GAMBLE CO 1.9 2,550,000.00 01/27/2022 2,546,379.00 93.08 2,373,487.73 0.57%Aa3/AA-2.59 02/01/2027 1.93%2,548,126.04 4.78%20,187.50 (174,638.32)NA 2.45 594918BY9 MICROSOFT CORP 3.3 02/06/2027 3,000,000.00 01/25/2023 2,926,980.00 96.46 2,893,802.40 0.70%Aaa/AAA 2.61 3.96%2,952,842.28 4.76%39,875.00 (59,039.88)WR 2.42 57636QAR5 MASTERCARD INC 3.3 03/26/2027 4,000,000.00 05/30/2023 3,852,800.00 95.93 3,837,349.68 0.93%Aa3/A+2.74 4.36%3,894,691.33 4.90%34,833.33 (57,341.65)NA 2.55 92826CAL6 VISA INC 1.9 04/15/2027 4,000,000.00 02/14/2023 3,617,920.00 92.31 3,692,408.92 0.89%Aa3/AA-2.79 4.44%3,743,938.49 4.88%16,044.44 (51,529.57)NA 2.65 665859AW4 NORTHERN TRUST CORP 4.0 3,000,000.00 06/13/2022 2,973,570.00 97.61 2,928,420.51 0.71%A2/A+2.86 05/10/2027 4.20%2,984,599.72 4.90%17,000.00 (56,179.21)A+2.65 22160KAM7 COSTCO WHOLESALE CORP 3.0 2,000,000.00 08/24/2022 1,956,700.00 95.59 1,911,751.10 0.46%Aa3/A+2.88 05/18/2027 3.50%1,973,633.66 4.65%7,166.67 (61,882.56)WR 2.71 037833DB3 APPLE INC 2.9 09/12/2027 2,000,000.00 02/14/2023 1,872,980.00 94.44 1,888,884.16 0.46%Aaa/AA+3.20 4.45%1,911,108.83 4.79%17,561.11 (22,224.67)NA 2.98 857477BS1 STATE STREET CORP 2.203 1,500,000.00 02/14/2023 1,362,523.37 93.04 1,395,643.74 0.34%A1/A 3.61 02/07/2028 4.76%1,409,958.49 5.36%13,218.00 (14,314.75)AA-2.46 24422EXH7 JOHN DEERE CAPITAL CORP 4.5 2,500,000.00 06/06/2024 2,466,550.00 98.30 2,457,542.78 0.60%A1/A 4.55 01/16/2029 4.83%2,467,026.72 4.92%54,062.50 (9,483.95)A+3.97 69371RS80 PACCAR FINANCIAL CORP 4.6 3,000,000.00 02/12/2024 2,994,863.00 98.90 2,967,108.27 0.72%A1/A+4.59 01/31/2029 4.64%2,995,254.01 4.87%57,883.33 (28,145.74)NA 4.01 14913UAJ9 CATERPILLAR FINANCIAL SERVICES 3,000,000.00 06/06/2024 3,015,000.00 100.02 3,000,709.50 0.73%A2/A 4.66 CORP 4.85 02/27/2029 4.73%3,014,791.43 4.84%50,116.67 (14,081.93)A+4.06 532457BV9 ELI LILLY AND CO 3.375 03/15/2029 5,200,000.00 04/24/2024 4,846,452.00 94.50 4,914,217.15 1.19%A1/A+4.71 4.96%4,859,531.69 4.69%51,675.00 54,685.46 WR 4.24 06051GLG2 BANK OF AMERICA CORP 5.202 4,000,000.00 06/06/2024 4,002,680.00 99.84 3,993,662.32 0.97%A1/A-4.82 04/25/2029 5.18%4,002,634.64 5.58%38,148.00 (8,972.32)AA-3.39 91,938,479.87 96.71 91,399,013.71 22.13%A1/A 2.32 Total Corporate 94,575,000.00 3.76%92,991,258.40 5.21%725,452.92 (1,592,244.69)A+2.02 37 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 MONEY MARKET FUND 94975P405 ALLSPRING:GOVT MM I 1,525,806.48 --1,525,806.48 1.00 1,525,806.48 0.37%Aaa/0.00 5.19%1,525,806.48 5.19%0.00 0.00 AAAm 0.00 NA Aaa/ Total Money Market 1,525,806.48 1.00 1,525,806.48 0.37%AAAm 0.00 Fund 1,525,806.48 5.19%1,525,806.48 5.19%0.00 0.00 NA 0.00 SUPRANATIONAL 4581X0EE4 INTER-AMERICAN DEVELOPMENT 5,000,000.00 06/27/2022 4,999,800.00 100.00 5,000,000.00 1.21%Aaa/AAA 0.00 BANK 3.25 07/01/2024 3.25%5,000,000.00 3.25%81,250.00 0.00 NA 0.00 459058JB0 INTERNATIONAL BANK FOR 2,500,000.00 07/20/2021 2,506,400.00 96.39 2,409,814.93 0.58%Aaa/AAA 0.81 RECONSTRUCTION AND DEVELOPM 0.56%2,501,378.10 5.23%2,999.58 (91,563.18)NA 0.79 0.625 04/22/2025 45950VHX7 INTERNATIONAL FINANCE CORP 5,000,000.00 --4,817,056.56 95.39 4,769,404.50 1.15%Aaa/AAA 1.77 2.125 04/07/2026 3.19%4,911,192.41 4.88%24,791.67 (141,787.91)NA 1.70 12,323,256.56 97.48 12,179,219.43 2.95%Aaa/AAA 0.85 Total Supranational 12,500,000.00 2.69%12,412,570.51 4.28%109,041.25 (233,351.08)NA 0.82 US TREASURY 91282CFN6 UNITED STATES TREASURY 4.25 7,000,000.00 05/30/2023 6,936,562.50 99.72 6,980,722.63 1.69%Aaa/AA+0.25 09/30/2024 4.96%6,988,170.47 5.30%74,781.42 (7,447.84)AA+0.25 91282CDH1 UNITED STATES TREASURY 0.75 3,000,000.00 12/09/2021 2,981,835.94 98.31 2,949,199.23 0.71%Aaa/AA+0.38 11/15/2024 0.96%2,997,676.49 5.35%2,873.64 (48,477.26)AA+0.37 91282CDZ1 UNITED STATES TREASURY 1.5 3,000,000.00 03/24/2022 2,927,109.39 97.66 2,929,833.99 0.71%Aaa/AA+0.63 02/15/2025 2.37%2,984,223.11 5.34%16,936.81 (54,389.12)AA+0.61 91282CED9 UNITED STATES TREASURY 1.75 4,000,000.00 06/13/2022 3,827,968.75 97.58 3,903,333.32 0.95%Aaa/AA+0.71 03/15/2025 3.38%3,956,007.93 5.26%20,543.48 (52,674.61)AA+0.69 912828ZF0 UNITED STATES TREASURY 0.5 2,000,000.00 05/21/2021 1,996,640.63 96.57 1,931,425.78 0.47%Aaa/AA+0.75 03/31/2025 0.54%1,999,347.72 5.21%2,513.66 (67,921.94)AA+0.73 38 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 91282CAB7 UNITED STATES TREASURY 0.25 07/31/2025 2,800,000.00 10/25/2021 0.93% 2,729,015.63 2,779,593.29 94.96 5.08% 2,659,015.63 2,923.08 0.64% (120,577.65) Aaa/AA+ AA+ 1.08 1.06 91282CAJ0 UNITED STATES TREASURY 0.25 08/31/2025 2,750,000.00 08/23/2021 0.64% 2,707,353.52 2,737,624.38 94.61 5.06% 2,601,865.23 2,297.89 0.63% (135,759.16) Aaa/AA+ AA+ 1.17 1.14 91282CAM3 UNITED STATES TREASURY 0.25 09/30/2025 3,300,000.00 12/28/2021 1.12% 3,194,812.50 3,265,014.23 94.29 5.02% 3,111,539.05 2,073.77 0.75% (153,475.18) Aaa/AA+ AA+ 1.25 1.22 91282CAT8 UNITED STATES TREASURY 0.25 10/31/2025 2,750,000.00 08/23/2021 0.67% 2,702,089.84 2,734,740.19 93.98 4.97% 2,584,462.90 1,158.29 0.63% (150,277.29) Aaa/AA+ AA+ 1.34 1.30 912828M56 UNITED STATES TREASURY 2.25 11/15/2025 3,000,000.00 05/25/2022 2.70% 2,955,585.94 2,982,430.37 96.43 4.97% 2,892,773.43 8,620.92 0.70% (89,656.94) Aaa/AA+ AA+ 1.38 1.33 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,800,000.00 10/25/2021 1.07% 2,718,953.13 2,769,880.53 93.20 4.89% 2,609,578.13 4,384.62 0.63% (160,302.40) Aaa/AA+ AA+ 1.59 1.54 912828P46 UNITED STATES TREASURY 1.625 02/15/2026 6,000,000.00 01/25/2023 3.83% 5,621,250.00 5,798,407.26 94.99 4.87% 5,699,296.86 36,696.43 1.38% (99,110.40) Aaa/AA+ AA+ 1.63 1.56 9128286L9 UNITED STATES TREASURY 2.25 03/31/2026 5,000,000.00 08/24/2022 3.27% 4,826,562.50 4,915,789.10 95.75 4.81% 4,787,500.00 28,278.69 1.16% (128,289.10) Aaa/AA+ AA+ 1.75 1.68 9128286S4 UNITED STATES TREASURY 2.375 04/30/2026 7,000,000.00 -- 3.39% 6,803,789.07 6,878,054.81 95.81 4.79% 6,706,875.00 28,009.51 1.62% (171,179.81) Aaa/AA+ AA+ 1.83 1.76 912828Y95 UNITED STATES TREASURY 1.875 07/31/2026 5,000,000.00 06/27/2022 3.21% 4,743,164.06 4,869,347.18 94.43 4.71% 4,721,484.40 39,148.35 1.14% (147,862.78) Aaa/AA+ AA+ 2.08 1.99 9128282A7 UNITED STATES TREASURY 1.5 08/15/2026 3,100,000.00 12/28/2021 1.23% 3,137,296.88 3,117,103.60 93.58 4.71% 2,900,921.88 17,501.37 0.70% (216,181.72) Aaa/AA+ AA+ 2.13 2.04 91282CDG3 UNITED STATES TREASURY 1.125 10/31/2026 5,000,000.00 08/11/2022 3.00% 4,629,687.50 4,795,258.76 92.29 4.65% 4,614,257.80 9,476.90 1.12% (181,000.96) Aaa/AA+ AA+ 2.34 2.25 912828U24 UNITED STATES TREASURY 2.0 11/15/2026 3,000,000.00 05/25/2022 2.76% 2,903,789.06 2,948,950.50 94.10 4.65% 2,823,046.86 7,663.04 0.68% (125,903.64) Aaa/AA+ AA+ 2.38 2.27 912828V98 UNITED STATES TREASURY 2.25 02/15/2027 7,000,000.00 -- 3.60% 6,696,316.41 6,768,588.34 94.28 4.59% 6,599,414.08 59,278.85 1.60% (169,174.26) Aaa/AA+ AA+ 2.63 2.48 91282CEF4 UNITED STATES TREASURY 2.5 03/31/2027 5,000,000.00 06/27/2022 3.23% 4,839,648.44 4,907,407.82 94.79 4.54% 4,739,257.80 31,420.77 1.15% (168,150.02) Aaa/AA+ AA+ 2.75 2.60 91282CEN7 UNITED STATES TREASURY 2.75 04/30/2027 5,000,000.00 08/24/2022 3.18% 4,905,859.38 4,943,096.98 95.27 4.54% 4,763,671.90 23,165.76 1.15% (179,425.08) Aaa/AA+ AA+ 2.83 2.67 39 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 912828X88 UNITED STATES TREASURY 2.375 7,000,000.00 --6,635,781.25 94.18 6,592,578.16 1.60%Aaa/AA+2.87 05/15/2027 3.79%6,737,231.91 4.56%21,233.02 (144,653.75)AA+2.72 91282CFB2 UNITED STATES TREASURY 2.75 5,000,000.00 11/23/2022 4,726,953.13 94.95 4,747,656.25 1.15%Aaa/AA+3.08 07/31/2027 4.04%4,819,942.71 4.52%57,417.58 (72,286.46)AA+2.88 9128282R0 UNITED STATES TREASURY 2.25 7,000,000.00 05/30/2023 6,545,546.88 93.43 6,540,351.58 1.58%Aaa/AA+3.13 08/15/2027 3.94%6,662,930.02 4.53%59,278.85 (122,578.44)AA+2.94 91282CFM8 UNITED STATES TREASURY 4.125 7,000,000.00 05/30/2023 7,050,039.06 98.87 6,920,703.16 1.68%Aaa/AA+3.25 09/30/2027 3.94%7,037,489.78 4.50%72,581.97 (116,786.62)AA+2.98 9128283F5 UNITED STATES TREASURY 2.25 6,000,000.00 01/25/2023 5,651,718.75 93.02 5,581,406.28 1.35%Aaa/AA+3.38 11/15/2027 3.58%5,755,369.16 4.50%17,241.85 (173,962.88)AA+3.18 91282CGH8 UNITED STATES TREASURY 3.5 6,900,000.00 06/22/2023 6,723,726.56 96.85 6,682,488.26 1.62%Aaa/AA+3.59 01/31/2028 4.11%6,762,898.44 4.46%100,846.15 (80,410.17)AA+3.27 91282CGT2 UNITED STATES TREASURY 3.625 5,200,000.00 11/15/2023 5,008,859.38 97.19 5,053,750.00 1.22%Aaa/AA+3.75 03/31/2028 4.56%5,036,148.08 4.45%47,382.51 17,601.92 AA+3.43 91282CHE4 UNITED STATES TREASURY 3.625 7,000,000.00 05/30/2023 6,940,664.06 97.15 6,800,664.08 1.65%Aaa/AA+3.92 05/31/2028 3.81%6,953,557.53 4.42%21,492.49 (152,893.45)AA+3.59 9128284V9 UNITED STATES TREASURY 2.875 5,250,000.00 08/22/2023 4,878,398.44 94.22 4,946,484.38 1.20%Aaa/AA+4.13 08/15/2028 4.48%4,942,340.87 4.42%56,808.89 4,143.50 AA+3.79 91282CJF9 UNITED STATES TREASURY 4.875 7,000,000.00 02/12/2024 7,217,656.25 101.87 7,130,703.16 1.73%Aaa/AA+4.34 10/31/2028 4.14%7,200,087.02 4.40%57,493.21 (69,383.86)AA+3.85 9128285M8 UNITED STATES TREASURY 3.125 7,000,000.00 02/12/2024 6,696,757.81 94.96 6,646,992.17 1.61%Aaa/AA+4.38 11/15/2028 4.14%6,721,024.17 4.40%27,938.18 (74,032.00)AA+4.01 912810FG8 UNITED STATES TREASURY 5.25 7,000,000.00 --7,201,062.51 103.91 7,273,984.34 1.76%Aaa/AA+4.63 02/15/2029 4.57%7,193,848.07 4.31%138,317.31 80,136.27 AA+4.02 91282CKG5 UNITED STATES TREASURY 4.125 4,000,000.00 06/20/2024 3,971,562.50 98.98 3,959,218.76 0.96%Aaa/AA+4.75 03/31/2029 4.29%3,971,725.56 4.36%41,475.41 (12,506.80)AA+4.23 91282CKT7 UNITED STATES TREASURY 4.5 5,000,000.00 06/20/2024 5,050,585.94 100.68 5,033,984.40 1.22%Aaa/AA+4.92 05/31/2029 4.27%5,050,305.69 4.34%19,057.38 (16,321.29)AA+4.36 169,084,603.59 96.38 167,420,440.87 40.54%Aaa/AA+2.75 Total US Treasury 173,850,000.00 3.45%170,981,612.05 4.66%1,158,312.04 (3,561,171.19)AA+2.54 40 HOLDINGS REPORT City of Palm Springs | Account #10805 | 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 Total Portfolio 425,522,648.99 3.64% 416,411,503.34 419,952,792.60 96.78 4.82% 412,991,965.62 3,001,296.66 100.00% (6,960,826.98) Aa2/AA AA 2.59 2.35 Total Market Value + Accrued 415,993,262.28 41 HOLDINGS REPORT City of Palm Springs Reporting | Account #10806 | 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 476,868.52 -- 0.00% 476,868.52 476,868.52 1.00 0.00% 476,868.52 0.00 0.67% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 476,868.52 0.00% 476,868.52 476,868.52 1.00 0.00% 476,868.52 0.00 0.67% 0.00 Aaa/AAA AAA 0.00 0.00 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 43,940,042.98 -- 4.36% 43,940,042.98 43,940,042.98 1.00 4.36% 43,940,042.98 0.00 62.01% 0.00 NA/NA NA 0.00 0.00 Total LAIF 43,940,042.98 4.36% 43,940,042.98 43,940,042.98 1.00 4.36% 43,940,042.98 0.00 62.01% 0.00 NA/NA NA 0.00 0.00 LOCAL GOV INVESTMENT POOL 09CATR$04 CalTrust STF 2,636,755.66 -- 4.94% 26,576,897.65 26,576,897.65 10.03 4.94% 26,446,659.28 0.00 37.32% (130,238.37) NA/AAAm NA 0.00 0.00 Total Local Gov Investment Pool 2,636,755.66 4.94% 26,576,897.65 26,576,897.65 10.03 4.94% 26,446,659.28 0.00 37.32% (130,238.37) NA/ AAAm NA 0.00 0.00 Total Portfolio 47,053,667.16 4.55% 70,993,809.15 70,993,809.15 4.37 4.55% 70,863,570.78 0.00 100.00% (130,238.37) Aaa/AAA AAA 0.00 0.00 Total Market Value + Accrued 70,863,570.78 42 SECTION 4 | TRANSACTIONS 43 TRANSACTION LEDGER City of Palm Springs | Account #10805|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 04/25/2024 912810FG8 5,200,000.00 UNITED STATES TREASURY 5.25 02/15/2029 102.652 4.63%(5,337,921.88)(52,500.00)(5,390,421.88)0.00 Purchase 04/26/2024 3133ERAK7 5,200,000.00 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.375 04/10/2029 98.515 4.71%(5,122,780.00)(10,111.11)(5,132,891.11)0.00 Purchase 04/26/2024 532457BV9 5,200,000.00 ELI LILLY AND CO 3.375 03/15/2029 93.201 4.96%(4,846,452.00)(19,987.50)(4,866,439.50)0.00 Purchase 05/08/2024 912810FG8 1,800,000.00 UNITED STATES TREASURY 5.25 02/15/2029 103.508 4.42%(1,863,140.63)(21,548.08)(1,884,688.71)0.00 Purchase 05/08/2024 3133ERDH1 8,000,000.00 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 04/30/2029 100.965 4.53%(8,077,200.00)(8,444.44)(8,085,644.44)0.00 Purchase 06/07/2024 24422EXH7 2,500,000.00 JOHN DEERE CAPITAL CORP 4.5 01/16/2029 98.662 4.83%(2,466,550.00)(46,562.50)(2,513,112.50)0.00 Purchase 06/07/2024 14913UAJ9 3,000,000.00 CATERPILLAR FINANCIAL SERVICES CORP 4.85 02/27/2029 100.500 4.73%(3,015,000.00)(40,416.67)(3,055,416.67)0.00 Purchase 06/07/2024 06051GLG2 4,000,000.00 BANK OF AMERICA CORP 5.202 04/25/2029 100.067 5.18%(4,002,680.00)(24,276.00)(4,026,956.00)0.00 Purchase 06/07/2024 3130B1BC0 8,000,000.00 FEDERAL HOME LOAN BANKS 4.625 06/08/2029 101.224 4.35%(8,097,920.00)(34,944.44)(8,132,864.44)0.00 Purchase 06/21/2024 91282CKG5 4,000,000.00 UNITED STATES TREASURY 4.125 03/31/2029 99.289 4.29%(3,971,562.50)(36,967.21)(4,008,529.71)0.00 Purchase 06/21/2024 91282CKT7 5,000,000.00 UNITED STATES TREASURY 4.5 05/31/2029 101.012 4.27%(5,050,585.94)(12,909.84)(5,063,495.78)0.00 Total Purchase 51,900,000.00 (51,851,792.95)(308,667.79)(52,160,460.74)0.00 44 TRANSACTION LEDGER City of Palm Springs | Account #10805|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 ACQUISITIONS 51,900,000.00 (51,851,792.95)(308,667.79)(52,160,460.74)0.00 DISPOSITIONS Call Redemption 05/14/2024 06051GJY6 (3,050,000.00)BANK OF AMERICA CORP 5.74866 06/14/2024 100.000 7.50%3,050,000.00 0.00 3,050,000.00 1,592.74 Total Call Redemption (3,050,000.00)3,050,000.00 0.00 3,050,000.00 1,592.74 Maturity 04/15/2024 91282CBV2 (4,000,000.00)UNITED STATES TREASURY 0.375 04/15/2024 100.000 0.38%4,000,000.00 0.00 4,000,000.00 0.00 Maturity 04/26/2024 06406RAS6 (1,250,000.00)BANK OF NEW YORK MELLON CORP 0.5 04/26/2024 100.000 0.50%1,250,000.00 0.00 1,250,000.00 0.00 Maturity 05/12/2024 023135BW5 (1,250,000.00)AMAZON.COM INC 0.45 05/12/2024 100.000 0.45%1,250,000.00 0.00 1,250,000.00 0.00 Maturity 05/15/2024 149123CC3 (1,250,000.00)CATERPILLAR INC 3.4 05/15/2024 100.000 3.40%1,250,000.00 0.00 1,250,000.00 0.00 Maturity 06/07/2024 24422EVQ9 (1,250,000.00)JOHN DEERE CAPITAL CORP 0.45 06/07/2024 100.000 0.45%1,250,000.00 0.00 1,250,000.00 0.00 Maturity 06/15/2024 91282CCG4 (1,250,000.00)UNITED STATES TREASURY 0.25 06/15/2024 100.000 0.25%1,250,000.00 0.00 1,250,000.00 0.00 Total Maturity (10,250,000.00)10,250,000.00 0.00 10,250,000.00 0.00 TOTAL DISPOSITIONS (13,300,000.00)13,300,000.00 0.00 13,300,000.00 1,592.74 45 TRANSACTION LEDGER City of Palm Springs Reporting | Account #10806|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$00 464,474.93 Local Agency Investment Fund State Pool 1.000 4.27%(464,474.93)0.00 (464,474.93)0.00 Purchase 04/30/2024 09CATR$04 12,155.23 CalTrust STF 10.010 0.00%(121,673.89)0.00 (121,673.89)0.00 Purchase 05/31/2024 09CATR$04 10,941.66 CalTrust STF 10.020 0.00%(109,635.43)0.00 (109,635.43)0.00 Purchase 06/28/2024 09CATR$04 9,901.61 CalTrust STF 10.030 0.00%(99,313.15)0.00 (99,313.15)0.00 Total Purchase 497,473.43 (795,097.40)0.00 (795,097.40)0.00 TOTAL ACQUISITIONS 497,473.43 (795,097.40)0.00 (795,097.40)0.00 46 IMPORTANT DISCLOSURES City of Palm Springs | Account #10805 | 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. 47 BENCHMARK DISCLOSURES City of Palm Springs | Account #10805 | As of June 30, 2024 Benchmark Disclosure ICE BofA 1-5 Yr Unsubordinated US Treasury & Agency Index The ICE BofA 1-5 Year Unsubordinated 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 five 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. 48