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AC 10-23-2023 Agenda PacketCITY OF CUPERTINO
AUDIT COMMITTEE
AGENDA
10300 Torre Avenue, City Hall Conference Room A
Monday, October 23, 2023
4:00 PM
Regular Meeting
ROLL CALL
ORDERS OF THE DAY
APPROVAL OF MINUTES
1.Subject: Approve Minutes of Regular Meeting on July 24, 2023
Recommended Action: Approve Minutes of Regular Meeting on July 24, 2023
A - Draft Minutes
POSTPONEMENTS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Committee on any matter
within the jurisdiction of the Committee and not on the agenda. Speakers are limited to three (3)
minutes. In most cases, State law will prohibit the Commission from making any decisions with respect
to a matter not on the agenda.
OLD BUSINESS
NEW BUSINESS
2.Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust
Performance Report for Quarter Ending September 30, 2023
Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report
for Quarter Ending September 30, 2023
Presenter: PARS and US Bank
4:15(15)
A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending September 30 2023
3.Subject: ACTION ITEM Receive the Treasurer's Investment Report for the Quarter
Ending September 30, 2023
Page 1
1
Audit Committee Agenda October 23, 2023
Recommended Action: Receive the Treasurer's Investment Report for the Quarter
Ending September 30, 2023 and recommend filing with City Council
Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management
4:30(15)
Staff Report
A – Chandler Investment Report September 2023
B – Chandler Custodial Statement September 2023
C – PARS Pension and OPEB Account Statement September 2023
D – LAIF Account Statement September 2023
4.Subject: INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and
Abuse program update
Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse
program update
Presenter: Moss Adams
4:45(15)
A - Cupertino Quarterly Internal Audit Status Report
5.Subject: ACTION ITEM Review the OPEB and Pension Trust Investment Policy
Recommended Action: Review and accept the OPEB and Pension Trust Investment
Policy
Presenter: Jonathan Orozco, Finance Manager, and US Bank
5:00(10)
Staff Report
A - OPEB Trust Investment Policy
B - Pension Trust Investment Policy
6.Subject: INFORMATIONAL ITEM Receive the Budget Format Review
Recommended Action: Receive the Budget Format Review
Presenter: Thomas Leung, Budget Manager
5:10(10)
7.Subject: INFORMATIONAL ITEM Receive the Annual Comprehensive Financial
Report (ACFR) and AUP Update
Recommended Action: Receive the Annual Comprehensive Financial Report (ACFR)
and AUP Update
Presenter: Jonathan Orozco, Finance Manager
5:20(15)
8.Subject: INFORMATIONAL ITEM Consider the Audit Committee 2024 Schedule and
Work Plan
Page 2
2
Audit Committee Agenda October 23, 2023
Recommended Action: Receive Audit Committee 2024 Schedule and Work Plan and
provide direction to staff
Presenter: Jonathan Orozco, Finance Manager
5:35(10)
A - Proposed Audit Committee 2024 Schedule and Work Plan
STAFF AND COMMITTEE REPORTS
COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS
FUTURE AGENDA SETTING
ADJOURNMENT
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this
meeting who is visually or hearing impaired or has any disability that needs special assistance should
call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for
assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and
writings distributed for the meeting that are public records will be made available in the appropriate
alternative format.
Any writings or documents provided to a majority of the members after publication of the agenda will
be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at
10300 Torre Avenue, Cupertino, California 95014, during normal business hours.
IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section
2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff
concerning a matter on the agenda are included as supplemental material to the agendized item. These
written communications are accessible to the public through the City’s website and kept in packet
archives. Do not include any personal or private information in written communications to the City
that you do not wish to make public, as written communications are considered public records and will
be made publicly available on the City website.
Members of the public are entitled to address the members concerning any item that is described in the
notice or agenda for this meeting, before or during consideration of that item. If you wish to address the
members on any other item not on the agenda, you may do so during the public comment .
Page 3
3
CITY OF CUPERTINO
Agenda Item
23-12734 Agenda Date:
10/23/2023 Agenda #: 1.
Subject: Approve Minutes of Regular Meeting on July 24, 2023
Approve Minutes of Regular Meeting on July 24, 2023
CITY OF CUPERTINO Printed on 10/20/2023Page 1 of 1
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Page 1
City of Cupertino
Audit Committee Regular Meeting
Minutes
July 24, 2023
CALL TO ORDER
At 4:00 p.m., Chair Chen called the regular meeting to order in the City of Cupertino Conference
Room A, 10300 Torre Avenue.
ROLL CALL
Committee Members Present: Chair Angela Chen, Vice Chair Sheila Mohan, Committee member
J.R. Fruen, Committee member Laura Hammer, Committee member Sophie Song
City Staff Present: Thomas Leung, Janet Liang, Jonathan Orozco, Pamela Wu
Absent:
Guests: Carlos Oblites (Chandler), Annie Rose Favreau (Moss Adams), Colleen Rozillis (Moss
Adams), Ryan Maxey (U.S. Bank), Jennifer Meza (U.S. Bank), Rick Rosenthal (U.S. Bank)
ORDERS OF THE DAY
1. APPROVE MINUTES OF REGULAR MEETING ON APRIL 24, 2023
Vice Chair Mohan motion, Committee member Fruen seconded. No public comment. The motion
passes with Committee member Hammer abstaining.
2.. APPROVE MINUTES OF SPECIAL MEETING ON MAY 31, 2023
Vice Chair Mohan motion, Committee member Fruen seconded. No public comment. The motion
passes with Committee member Song abstaining.
POSTPONEMENTS
ORAL COMMUNICATIONS
OLD BUSINESS
NEW BUSINESS
3. Consider receiving the OPEB & Pension Section 115 Trust Performance Report for the
Quarter Ending June 30, 2023
Maxey noted that they are in early phases of combining resources at U.S. Bank with the first phase
being that Rick is becoming part of PFM asset management. Meza and Rosenthal provided an
overview of the report. Chair Chen asked if there was any major strategic exchange based on the
market situation. Rosenthal noted most of the changes were made in 2022, with a shift of moving
into index funds. Committee member Song asked if there were any changes made to the City’s
investment. Rosenthal noted that the specific securities and rebalancing is done at his discretion
5
Page 2
as they are hired as the discretionary asset manager. Committee member Song asked if the city
needs to withdraw money and send money to another account, who is authorized to do so and if
there is any verification. Meza noted that the Administrative Services director is and there is
paperwork that needs to be completed. Orozco noted that it would need to be tied to CalPERS or
the City’s general account and there must be discussions made in advance.
Committee member Song asked how U.S. Bank protects the City’s assets in case of fraud. Meza
noted that they constantly monitor, and they do contact the city by phone to see if the City is
requesting to move money. Maxey added that they have extra checks and balances, and the funds
are held in an exclusive trust to pay OPEB or pension liabilities. The places these monies can be
sent to is limited and if it was sent anywhere else it will raise red flags and escalate. Internally
they flag all disbursements, and if there is a change there is extra due diligence to get verbal
confirmation. Vice Chair Mohan asked staff to speak about checks and balances within the City.
Orozco noted that staff is working on getting a second confirmation on some of the transactions
and implementing controls, so our assets are safeguarded.
No Public Comment.
4. Consider the Treasurer's Investment Report for the Quarter Ending June 30, 2023
Leung provided an overview of the report. Oblites provided an overview of the report as well as
structure and set up. Committee member Song asked if the dollar difference between the cost
value and book value is an actual loss. Oblites noted that it is a paper loss because interest rates
rose dramatically. Orozco noted that our investments are held to maturity so that loss will be
irrelevant. Committee member Song asked if the City makes an $8.4 million gain, will the city
pay Chandler an extra fee. Oblites noted that they do not do a performance base fee.
Committee member Fruen motioned to receive the report and forward to City Council, Vice Chair
Mohan seconded. No public comment. The motion passes unanimously.
5. Consider the Quarterly Internal Audit Status Report
Rozillis provided an overview of the report. Committee member Song noted that she received a
report that someone made a report to the fraud waste and abuse hotline sometime last weekend
and asked why it was not included in the status report. Rozillis noted that it may not have fit in
the timeframe of last quarter. Chair Chen asked if it was fraud-related. Committee member Song
noted it is an allegation, but she does not know the status. Orozco noted that the details of the
reports would not be discussed here as it is confidential and that it i s not the duties of the audit
committee. Committee member Song noted she was informed by a resident of Cupertino that an
allegation was filed and was waiting to be informed of the status. Rozillis noted that if it is an
active investigation, it must remain confidential. Rozillis added that their work is done under
very strict professional standards and their team assesses their independence when there is a new
engagement as well as rotating team members to ensure independence.
Committee member Hammer suggested if Moss Adams could add cumulative statistics to the
table. Moss Adams noted that they will.
6
Page 3
No public comment.
6. Consider the Enterprise Leadership Assessment Report
Rozillis and Favreau provided an overview of the report. Committee member Song asked how
Moss Adams quantifies the significant investment. Favreau noted that observation 11 includes
numbers on how much time staff liaisons commit to the groups. Vice Chair Mohan asked at which
point will staff get to respond to these recommendations and asked which recommendations have
been completed. Orozco noted that staff has reviewed, and this report will go to City Council for
their direction on some of the recommendations.
Committee member Fruen motioned to receive the report and recommend filing with City
Council; Committee member Hammer seconded. No public comment. The motion carried
unanimously.
7. Consider the FY 2023-24 Internal Audit Program
Rozillis provided an overview of the report. Committee member Hammer expressed concern
about the grant management audit not being included. Rozillis noted that it is due to budgetary
constraints. Committee member Hammer asked if some grants could be added. Rozillis noted the
amount of staff time it would take for the Enterprise Risk Assessment and there may not be
enough time. Chair Chen noted her support in including the grants management audit.
Vice Chair Mohan motioned to receive the report and recommend filing with City Council,
Committee member Fruen seconded with friendly amendment to include the grants management
audit if there is additional budget available. No public comment. The motion carried
unanimously.
8. Consider the Audit Committee 2023 Schedule and Work Plan
Orozco presented the committee's work plan.
STAFF AND COMMITTEE REPORTS
COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS
FUTURE AGENDA SETTING
ADJOURNMENT
The meeting adjourned at 6:03 p.m.
Recording Secretary:
Janet Liang, Management Analyst
7
CITY OF CUPERTINO
Agenda Item
23-12735 Agenda Date:
10/23/2023 Agenda #: 2.
Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report
for Quarter Ending September 30, 2023
Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30,
2023
Presenter: PARS and US Bank
4:15(15)
CITY OF CUPERTINO Printed on 10/20/2023Page 1 of 1
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City of Cupertino
PARS 115 Trust – OPEB Prefunding Program &
Pension Rate Stabilization Program Plan Client Review
October 2 3 , 2023
9
City of Cupertino ▎ 2
Pars Trust Team
Trust Administrator & Consultant
•Serves as record-keeper, consultant,
and central-point of contact
•Record-keeping/account valuations
•Monitors contributions
•Processes disbursements
•Handles all agency/participant inquiries
•Ongoing plan compliance
Corporate Experience
Dollars under Administration
39 years (1984-2023)
Over $7.1 billion
Investment Manager & Trustee
•Safeguard and Oversight of Plan
Assets
•Investment Fiduciary
•Manage Program Portfolios
•Investment Policy Assistance
•Open Architecture with Active
and Index Investments
Corporate Experience
Dollars under Trust Custody
160 years (1863–2023)
Over $9.5 trillion
10
City of Cupertino ▎ 3
Subaccounts
OPEB and pension assets are
individually sub-accounted,
and can be divided by dept.,
bargaining group, or cost center.
Assets in the PARS Section 115
Combination Trust can be used
to address unfunded liabilities.
Financial Stability
Allows separate investment
strategies for OPEB and
pension subaccounts.
Flexible Investing
OPEB and pension assets
aggregate and reach lower fees
on tiered schedule sooner –
saving money!
Economies-of-ScaleAnytime Access
Trust funds are available
anytime; OPEB for OPEB
and pension for pension.
No set-up costs, no minimum
annual contribution amounts,
and no fees until assets are added.
No Set Up Cost or Minimums
Retiree Medical Benefits
Prefund OPEB GASB 75
OPEB
$33.6M
Reimburse agency; or
Pay benefits provider
Pension Rate Stabilization Program
Prefund Pension (PRSP)GASB 68
Pension
$18.5M
Reimburse agency; or
Pay retirement system
Assets can be used to:Assets can be used to:
prefund
either or both
General Fund
PARS IRS -Approved Section 115 Trust
11
U.S. Bank ConfidentialU.S. Bank Confidential
Investment and insurance products and services including annuities are:
NOT A DEPOSIT ●NOT FDIC INSURED ●MAY LOSE VALUE ●NOT BANK
GUARANTEED ●NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
PARS/CITY OF CUPERTINO 115P
OPEB & PENSION ACCOUNTS
September 30, 2023
12
U.S. Bank Confidential
Your U.S. Bank Team
Ryan Maxey
Vice President &
Relationship Manager
Institutional Trust & Custody
971.865.1407
ryan.maxey@usbank.com
Rick Rosenthal
Senior Institutional Client
Portfolio Manager
PFM Asset Management, LLC
213.359.7954
richard.rosenthal@usbank.com
Mitch Barker
Executive Vice President
PARS
(Public Agency Retirement Services)
949.310.4876 (cell)
www.pars.org
Jennifer Meza, CEBS
Manager, Consulting
PARS
(Public Agency Retirement Services)
800.540.6369 Ext. 141 (office)
949.375.8239 (cell)
www.pars.org
Page 2 of 4713
U.S. Bank Confidential
Table of Contents
Section 1 –PORTFOLIO REVIEW
PARS/CITY OF CUPERTINO 115P - OPEB (X9600)
•Portfolio Overview
•Equity Analysis
•Fixed Income Analysis
•Performance (AGG460596)
•Holdings
PARS/CITY OF CUPERTINO 115P – PENSION (X9601)
•Portfolio Overview
•Equity Analysis
•Fixed Income Analysis
•Performance
•Holdings
Section 2 –MARKET REVIEW
Section 3 – DISCLOSURES, DEFINITIONS, DESCRIPTIONS
Page 3 of 4714
U.S. Bank Confidential
PORTFOLIO REVIEW
15
PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Overview
Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Portfolio Summary
Inv. Objective Balanced/Nontaxable-1
Total Portfolio Value $33,592,256
Net Realized Cap Gains YTD $-210,118
Annual Income Projected $751,928
Current Yield 2.24%
Number of Securities 10
Portfolio Mgr.Rick Rosenthal
Portfolio Asset Allocation
Equity $21,799,696 64.90%
Fixed Income $9,836,066 29.28%
Real Assets $1,305,754 3.89%
Cash $650,740 1.94%
Invested Total $33,592,256 100.00%
65%
29%
4%
2%
Equity Fixed Income Real Assets Cash
Portfolio Model Allocation
Cash
Equivalents
Investment
Grade
High
Yield
Large
Cap U.S.
Equity
Mid Cap
U.S.
Equity
Small
Cap U.S.
Equity
Developed
Markets
Equity
Emerging
Markets
Equity
U.S.
Listed
Real
Estate
0%
10%
20%
30%
40%
50%
Portfolio
Page 5 of 47 16
PARS/CITY OF CUPERTINO 115P - OPEB
Equity Overview
Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Equity Summary
Inv. Objective Balanced/Nontaxable-1
Total Equity Value $21,799,696
Current Yield 1.40%
Annual Income Projected $306,166
Number of Securities 6
Portfolio Mgr.Rick Rosenthal
Equity Asset Allocation
Large Cap U.S. $10,068,432 46.19%
Mid Cap U.S. $4,025,248 18.46%
Developed Markets $3,988,994 18.30%
Emerging Markets $2,023,984 9.28%
Small Cap U.S. $1,693,037 7.77%
46%
18%
18%
9%
8%
Large Cap U.S.Mid Cap U.S.Developed Markets Emerging Markets
Small Cap U.S.
Bottom 5/ Top 5 Contributors (Trailing 12 Months)
HNACXJVLIXFSPSXFSMDXBOSOXBEXIXFPADXFSSNX
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Equity Global Distribution
North America
Europe
Asia
Middle East
South America
Africa
71.23%
14.37%
12.85%
0.73%
0.54%
0.28%
Equity Country Distribution
United States
Japan
United Kingdom
France
Hong Kong
70.13%
4.16%
3.48%
3.18%
2.55%
Page 6 of 47 17
PARS/CITY OF CUPERTINO 115P - OPEB
Common Stock Detail
Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Top 10 Common Stock Holdings
Stock
Wt. (%)
Full Port
Wt. (%)Yield (%)
YTD
Return* (%)
52 Wk
Return* (%)
NVIDIA Corporation 2.00 1.33 0.03 197.8 256.2
Microsoft Corporation 1.72 1.14 0.90 32.6 34.2
Apple Inc.1.51 1.00 0.53 32.3 20.9
Alphabet Inc. Class A 1.41 0.93 0.00 48.3 34.3
Amazon.com, Inc.1.36 0.90 0.00 51.3 10.7
Tesla, Inc.1.12 0.74 0.00 103.1 -6.7
Advanced Micro Devices, Inc.0.89 0.59 0.00 58.7 60.3
Eli Lilly and Company 0.87 0.57 0.75 48.0 64.5
JPMorgan Chase & Co.0.84 0.56 2.87 10.6 40.9
Berkshire Hathaway Inc. Class …0.83 0.55 0.00 13.4 29.9
Common Stock Characteristics
Portfolio S&P 500
Market Cap - Wtd Avg $247.2B $631.0B
Market Cap - Median $4.4B $30.0B
Dividend Yield (%)1.96 1.63
P/E NTM 15.3 18.0
P/E LTM 16.7 21.8
ROE (%)17.9 24.9
1 Yr Beta vs. S&P Composite .86 1.05
Est 3-5 Yr EPS Growth (%)14.9 13.8
Hist 3 Yr EPS Growth (%)22.1 23.2
Number of Securities 5146 503
Common Stock Sector Exposures
5% 10% 15% 20% 25% 30%
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
Portfolio S&P 500
Portfolio S&P 500
6.35 8.87
12.58 10.67
5.30 6.57
5.48 4.72
14.71 12.81
12.06 13.36
11.60 8.30
17.40 27.46
3.90 2.45
8.41 2.37
2.20 2.41
Common Stock Market Cap Distribution
> 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM
0%
10%
20%
30%
40%
50%
60%
70%
80%
Portfolio S&P 500
*Specific to the security - does not represent performance in the portfolio.
Page 7 of 47 18
PARS/CITY OF CUPERTINO 115P - OPEB
Fixed Income Overview
Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Fixed Income Summary
Inv. Objective Balanced/Nontaxable-1
Total Fixed Income Value $9,836,066
Current Yield 3.70%
Annual Income Projected $363,704
Number of Securities 2
Portfolio Mgr.Rick Rosenthal
Fixed Income Asset Allocation
Investment Grade $8,143,083 82.79%
High Yield $1,692,983 17.21%
83%
17%
Investment Grade High Yield
Fixed Income Sector Exposures
Mutual Funds & ETFs $9,836,066 100.00%100%
Mutual Funds & ETFs
Fixed Income Market Value
12/3
1
/
2
0
1
9
12/3
1
/
2
0
2
0
12/3
1
/
2
0
2
1
12/3
0
/
2
0
2
2
Prev
i
o
u
s
C
l
o
s
e
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Page 8 of 47 19
U.S. Bank Confidential
Custom Benchmark
ActualTargetRangeBenchmarkAsset Class
64.9%63%50%‐70%MSCI AC World Free IndexEquities
29.3%29%20%‐40%BBARC Global Aggregate IndexFixed Income
3.9%5%0%‐15%S&P Global REIT TR USDReal Estate
0%2%0%‐10%S&P GSCI Commodity IndexCommodities
1.9%1%0%‐10%FTSE 3‐Mo US T‐Bill IndexCash
CITY OF CUPERTINO
Page 9 of 4720
Selected Period Performance
Period Ending: 09/30/2023PARS/CITY OF CUPERTINO OPEB AGG (****60596)
Year Inception
to Date to Date
Market Value 3 Months (9 Months) 1 Year 3 Years 5 Years 113 Months 07/01/2010
Total Portfolio Gross of Fees 33,637,510 -3.03 6.60 13.27 2.73 3.58 4.73 5.81
Total Portfolio Net of Fees 33,637,510 -3.07 6.45 13.06 2.55 3.39 4.52
City of Cupertino -3.11 5.89 14.40 3.39 4.39 4.59 6.51
Total Equity 21,799,696 -3.08 10.14 20.13 5.23 6.50 7.91 10.48
MSCI ACWI (Net)-3.40 10.06 20.80 6.89 6.46 7.01 9.10
U.S. Equity 15,786,718 -2.64 12.50 20.55 7.44 7.05 9.43
S&P 500 Index (Total Return)-3.27 13.07 21.62 10.15 9.92 11.21 13.56
S&P MidCap 400 Index -4.20 4.27 15.51 12.05 6.06 8.43 11.67
S&P SmallCap 600 Index -4.93 .81 10.08 12.10 3.21 7.79 11.47
Developed Markets Equity 3,988,994 -4.68 6.82 26.35 2.37 7.99 5.95
MSCI EAFE Index (Net)-4.11 7.08 25.65 5.75 3.24 3.22 6.00
Emerging Markets Equity 2,023,984 -3.42 -.70 7.81 -5.89 -1.00 -.19
MSCI Emerging Markets Index (Net)-2.93 1.82 11.70 -1.73 .55 2.02 2.76
Total Fixed Income 9,863,200 -2.42 .14 1.20 -3.40 -1.25 -.03 1.18
BBARC Global Aggregate Index -3.59 -2.21 2.24 -6.93 -1.62 -.79 .67
BBARC US Aggregate Bond Index -3.23 -1.21 .64 -5.21 .10 .93 1.68
Total Real Assets 1,322,157 -6.87 -2.23 2.94 3.55 1.80
Real Estate 1,322,157 -6.87 -2.23 2.94 3.55 2.18 4.54
S&P Global REIT Index (Gross)-6.22 -3.69 3.22 3.23 1.06 3.40 7.06
S&P GSCI Index 15.98 7.24 10.93 29.49 5.57 -3.03 -.54
Total Cash Equivalents 652,457 1.31 3.61 4.50 1.70 1.57 1.07 .77
ICE BofAML US 3-Month Treasury Bill Index 1.31 3.60 4.47 1.70 1.72 1.18 .87
Pending Cash 0 .00 .00 .00 .00 .00 .00 .00
Page 10 of 4721
PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Holdings
Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Port.Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Total 100.0 33,592,256 32,046,136 1,546,120 2.24 751,928
Cash 1.94 650,740 650,740 0 5.26 34,261
Cash Equivalents 1.94 650,740 650,740 0 5.26 34,261
FIRST AM GOVT OB FD CL X 31846V336 1.94 1.00 650,740 650,740 650,740 0 5.26 34,261
Fixed Income 29.28 9,836,066 9,218,174 617,892 3.70 363,704
Investment Grade 24.24 8,143,083 7,310,672 832,411 2.91 237,025
Mutual Funds & ETFs 24.24 8,143,083 7,310,672 832,411 2.91 237,025
Fidelity U.S. Bond Index Fund FXNAX 24.24 9.86 825,870 8,143,083 7,310,672 832,411 2.91 237,025
High Yield 5.04 1,692,983 1,907,502 -214,518 7.48 126,679
Mutual Funds & ETFs 5.04 1,692,983 1,907,502 -214,518 7.48 126,679
Artisan High Income Fund - Institutional Sh…APHFX 5.04 8.62 196,402 1,692,983 1,907,502 -214,518 7.48 126,679
Equity 64.90 21,799,696 20,524,322 1,275,374 1.40 306,166
Large Cap U.S. Equity 29.97 10,068,432 10,972,553 -904,121 0.67 67,062
Mutual Funds & ETFs 29.97 10,068,432 10,972,553 -904,121 0.67 67,062
Harbor Capital Appreciation Fund - Retire…HNACX 14.98 83.19 60,472 5,030,679 5,421,828 -391,148 0.00 0
John Hancock Fds III Disciplined Value Fu…JVLIX 15.00 21.86 230,455 5,037,753 5,550,725 -512,973 1.33 67,062
Mid Cap U.S. Equity 11.98 4,025,248 1,551,236 2,474,012 1.57 63,265
Mutual Funds & ETFs 11.98 4,025,248 1,551,236 2,474,012 1.57 63,265
Fidelity Mid Cap Index Fund FSMDX 11.98 26.85 149,916 4,025,248 1,551,236 2,474,012 1.57 63,265
Small Cap U.S. Equity 5.04 1,693,037 1,753,404 -60,367 1.61 27,302
Mutual Funds & ETFs 5.04 1,693,037 1,753,404 -60,367 1.61 27,302
Fidelity Small Cap Index Fund FSSNX 5.04 22.20 76,263 1,693,037 1,753,404 -60,367 1.61 27,302
Developed Markets Equity 11.87 3,988,994 4,201,480 -212,486 2.49 99,362
Mutual Funds & ETFs 11.87 3,988,994 4,201,480 -212,486 2.49 99,362
Fidelity International Index Fund FSPSX 11.87 44.00 90,659 3,988,994 4,201,480 -212,486 2.49 99,362
Emerging Markets Equity 6.03 2,023,984 2,045,649 -21,665 2.43 49,175
Mutual Funds & ETFs 6.03 2,023,984 2,045,649 -21,665 2.43 49,175
Fidelity Emerging Markets Index Fund FPADX 6.03 9.59 211,052 2,023,984 2,045,649 -21,665 2.43 49,175
Real Assets 3.89 1,305,754 1,652,900 -347,146 3.66 47,796
U.S. Listed Real Estate 3.89 1,305,754 1,652,900 -347,146 3.66 47,796
Page 11 of 47 22
PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Holdings
Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Port.Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
iShares Core U.S. REIT ETF USRT 3.89 47.18 27,676 1,305,754 1,652,900 -347,146 3.66 47,796
Page 12 of 47 23
PARS/CITY OF CUPERTINO 115P - OPEB
Fixed Income Holdings
Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Fixed
Income
Portfolio
Value
Projected
Annual
Income
Current
Yield
Yield to
Maturity
Effective
Duration
Effective
Maturity
Avg.
Quality
Total 100.00 9,836,066 363,704 3.70 9.54 5.67 NA A
Investment Grade 82.80 8,143,083 237,025 2.91 NA 6.18 NA AA
Mutual Funds & ETFs 82.80 8,143,083 237,025 2.91 NA 6.18 NA AA
Fidelity U.S. Bond Index Fund FXNAX 82.80 8,143,083 237,025 2.91 NA 6.18 NA AA
High Yield 17.20 1,692,983 126,679 7.48 9.54 3.20 NA B
Mutual Funds & ETFs 17.20 1,692,983 126,679 7.48 9.54 3.20 NA B
Artisan High Income Fund - Institutional Shar...APHFX 17.20 1,692,983 126,679 7.48 9.54 3.20 NA B
Page 13 of 47 24
PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Overview
Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Portfolio Summary
Inv. Objective Balanced/Nontaxable-1
Total Portfolio Value $18,475,216
Net Realized Cap Gains YTD $-245,270
Annual Income Projected $413,549
Current Yield 2.24%
Number of Securities 10
Portfolio Mgr.Rick Rosenthal
Portfolio Asset Allocation
Equity $11,989,492 64.90%
Fixed Income $5,409,682 29.28%
Real Assets $718,127 3.89%
Cash $357,915 1.94%
Invested Total $18,475,216 100.00%
65%
29%
4%
2%
Equity Fixed Income Real Assets Cash
Portfolio Model Allocation
Cash
Equivalents
Investment
Grade
High
Yield
Large
Cap U.S.
Equity
Mid Cap
U.S.
Equity
Small
Cap U.S.
Equity
Developed
Markets
Equity
Emerging
Markets
Equity
U.S.
Listed
Real
Estate
0%
10%
20%
30%
40%
50%
Portfolio
Page 14 of 47 25
PARS/CITY OF CUPERTINO 115P- PENSION
Equity Overview
Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Equity Summary
Inv. Objective Balanced/Nontaxable-1
Total Equity Value $11,989,492
Current Yield 1.40%
Annual Income Projected $168,387
Number of Securities 6
Portfolio Mgr.Rick Rosenthal
Equity Asset Allocation
Large Cap U.S. $5,537,480 46.19%
Mid Cap U.S. $2,213,824 18.46%
Developed Markets $2,193,884 18.30%
Emerging Markets $1,113,160 9.28%
Small Cap U.S. $931,144 7.77%
46%
18%
18%
9%
8%
Large Cap U.S.Mid Cap U.S.Developed Markets Emerging Markets
Small Cap U.S.
Bottom 5/ Top 5 Contributors (Trailing 12 Months)
HNACXJVLIXFSPSXFSMDXBOSOXBEXIXFPADXFSSNX
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Equity Global Distribution
North America
Europe
Asia
Middle East
South America
Africa
71.23%
14.37%
12.85%
0.73%
0.54%
0.28%
Equity Country Distribution
United States
Japan
United Kingdom
France
Hong Kong
70.13%
4.16%
3.48%
3.18%
2.55%
Page 15 of 47 26
PARS/CITY OF CUPERTINO 115P- PENSION
Common Stock Detail
Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Top 10 Common Stock Holdings
Stock
Wt. (%)
Full Port
Wt. (%)Yield (%)
YTD
Return* (%)
52 Wk
Return* (%)
NVIDIA Corporation 2.00 1.33 0.03 197.8 256.2
Microsoft Corporation 1.72 1.14 0.90 32.6 34.2
Apple Inc.1.51 1.00 0.53 32.3 20.9
Alphabet Inc. Class A 1.41 0.93 0.00 48.3 34.3
Amazon.com, Inc.1.36 0.90 0.00 51.3 10.7
Tesla, Inc.1.12 0.74 0.00 103.1 -6.7
Advanced Micro Devices, Inc.0.89 0.59 0.00 58.7 60.3
Eli Lilly and Company 0.87 0.57 0.75 48.0 64.5
JPMorgan Chase & Co.0.84 0.56 2.87 10.6 40.9
Berkshire Hathaway Inc. Class …0.83 0.55 0.00 13.4 29.9
Common Stock Characteristics
Portfolio S&P 500
Market Cap - Wtd Avg $247.2B $631.0B
Market Cap - Median $4.4B $30.0B
Dividend Yield (%)1.96 1.63
P/E NTM 15.3 18.0
P/E LTM 16.7 21.8
ROE (%)17.9 24.9
1 Yr Beta vs. S&P Composite .86 1.05
Est 3-5 Yr EPS Growth (%)14.9 13.8
Hist 3 Yr EPS Growth (%)22.1 23.2
Number of Securities 5146 503
Common Stock Sector Exposures
5% 10% 15% 20% 25% 30%
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
Portfolio S&P 500
Portfolio S&P 500
6.35 8.87
12.58 10.67
5.30 6.57
5.48 4.72
14.71 12.81
12.06 13.36
11.60 8.30
17.40 27.46
3.90 2.45
8.41 2.37
2.20 2.41
Common Stock Market Cap Distribution
> 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM
0%
10%
20%
30%
40%
50%
60%
70%
80%
Portfolio S&P 500
*Specific to the security - does not represent performance in the portfolio.
Page 16 of 47 27
PARS/CITY OF CUPERTINO 115P- PENSION
Fixed Income Overview
Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Fixed Income Summary
Inv. Objective Balanced/Nontaxable-1
Total Fixed Income Value $5,409,682
Current Yield 3.70%
Annual Income Projected $200,032
Number of Securities 2
Portfolio Mgr.Rick Rosenthal
Fixed Income Asset Allocation
Investment Grade $4,478,568 82.79%
High Yield $931,114 17.21%
83%
17%
Investment Grade High Yield
Fixed Income Sector Exposures
Mutual Funds & ETFs $5,409,682 100.00%100%
Mutual Funds & ETFs
Fixed Income Market Value
12/3
1
/
2
0
1
9
12/3
1
/
2
0
2
0
12/3
1
/
2
0
2
1
12/3
0
/
2
0
2
2
Prev
i
o
u
s
C
l
o
s
e
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Page 17 of 47 28
U.S. Bank Confidential
Custom Benchmark
ActualTargetRangeBenchmarkAsset Class
64.9%63%50%‐70%MSCI AC World Free IndexEquities
29.3%29%20%‐40%BBARC Global Aggregate IndexFixed Income
3.9%5%0%‐15%S&P Global REIT TR USDReal Estate
0%2%0%‐10%S&P GSCI Commodity IndexCommodities
1.9%1%0%‐10%FTSE 3‐Mo US T‐Bill IndexCash
CITY OF CUPERTINO
Page 18 of 4729
Selected Period Performance
Period Ending: 09/30/2023PARS/CITY OF CUPERTINO 115P- PENSION (****059601)
Year Inception
to Date to Date
Market Value 3 Months (9 Months) 1 Year 3 Years 05/01/2019
Total Portfolio Gross of Fees 18,500,105 -3.03 6.60 13.27 2.66 4.57
Total Portfolio Net of Fees 18,500,105 -3.07 6.45 13.07 2.48 4.38
City of Cupertino -3.11 5.89 14.40 3.39 4.44
Total Equity 11,989,492 -3.08 10.14 20.13 5.24 7.30
MSCI ACWI (Net)-3.40 10.06 20.80 6.89 7.06
U.S. Equity 8,682,448 -2.64 12.50 20.55 7.44 8.06
S&P 500 Index (Total Return)-3.27 13.07 21.62 10.15 10.74
S&P MidCap 400 Index -4.20 4.27 15.51 12.05 7.25
S&P SmallCap 600 Index -4.93 .81 10.08 12.10 5.45
Developed Markets Equity 2,193,884 -4.68 6.82 26.35 2.37 8.82
MSCI EAFE Index (Net)-4.11 7.08 25.65 5.75 3.93
Emerging Markets Equity 1,113,160 -3.42 -.70 7.81 -5.89 -1.82
MSCI Emerging Markets Index (Net)-2.93 1.82 11.70 -1.73 -.23
Total Fixed Income 5,424,605 -2.42 .14 1.20 -3.41 -1.98
BBARC Global Aggregate Index -3.59 -2.21 2.24 -6.93 -2.52
BBARC US Aggregate Bond Index -3.23 -1.21 .64 -5.21 -.91
Total Real Assets 727,148 -6.87 -2.23 2.94 3.62 1.05
Real Estate 727,148 -6.87 -2.23 2.94 3.62 1.05
S&P Global REIT Index (Gross)-6.22 -3.69 3.22 3.23 -.49
S&P GSCI Index 15.98 7.24 10.93 29.49 8.59
Total Cash Equivalents 358,859 1.31 3.61 4.50 1.65 1.49
ICE BofAML US 3-Month Treasury Bill Index 1.31 3.60 4.47 1.70 1.63
Pending Cash 0 .00 .00 .00 .00 .00
Page 19 of 4730
PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Holdings
Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Port.Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Total 100.0 18,475,216 18,702,316 -227,100 2.24 413,549
Cash 1.94 357,915 357,915 0 5.26 18,844
Cash Equivalents 1.94 357,915 357,915 0 5.26 18,844
FIRST AM GOVT OB FD CL X 31846V336 1.94 1.00 357,915 357,915 357,915 0 5.26 18,844
Fixed Income 29.28 5,409,682 5,808,061 -398,378 3.70 200,032
Investment Grade 24.24 4,478,568 4,771,431 -292,863 2.91 130,360
Mutual Funds & ETFs 24.24 4,478,568 4,771,431 -292,863 2.91 130,360
Fidelity U.S. Bond Index Fund FXNAX 24.24 9.86 454,216 4,478,568 4,771,431 -292,863 2.91 130,360
High Yield 5.04 931,114 1,036,630 -105,515 7.48 69,672
Mutual Funds & ETFs 5.04 931,114 1,036,630 -105,515 7.48 69,672
Artisan High Income Fund - Institutional Sh…APHFX 5.04 8.62 108,018 931,114 1,036,630 -105,515 7.48 69,672
Equity 64.90 11,989,492 11,649,352 340,139 1.40 168,387
Large Cap U.S. Equity 29.97 5,537,480 5,946,417 -408,937 0.67 36,883
Mutual Funds & ETFs 29.97 5,537,480 5,946,417 -408,937 0.67 36,883
Harbor Capital Appreciation Fund - Retire…HNACX 14.98 83.19 33,259 2,766,795 2,944,863 -178,068 0.00 0
John Hancock Fds III Disciplined Value Fu…JVLIX 15.00 21.86 126,747 2,770,685 3,001,554 -230,869 1.33 36,883
Mid Cap U.S. Equity 11.98 2,213,824 1,352,237 861,586 1.57 34,795
Mutual Funds & ETFs 11.98 2,213,824 1,352,237 861,586 1.57 34,795
Fidelity Mid Cap Index Fund FSMDX 11.98 26.85 82,452 2,213,824 1,352,237 861,586 1.57 34,795
Small Cap U.S. Equity 5.04 931,144 964,345 -33,201 1.61 15,016
Mutual Funds & ETFs 5.04 931,144 964,345 -33,201 1.61 15,016
Fidelity Small Cap Index Fund FSSNX 5.04 22.20 41,943 931,144 964,345 -33,201 1.61 15,016
Developed Markets Equity 11.87 2,193,884 2,261,278 -67,394 2.49 54,648
Mutual Funds & ETFs 11.87 2,193,884 2,261,278 -67,394 2.49 54,648
Fidelity International Index Fund FSPSX 11.87 44.00 49,861 2,193,884 2,261,278 -67,394 2.49 54,648
Emerging Markets Equity 6.03 1,113,160 1,125,075 -11,915 2.43 27,045
Mutual Funds & ETFs 6.03 1,113,160 1,125,075 -11,915 2.43 27,045
Fidelity Emerging Markets Index Fund FPADX 6.03 9.59 116,075 1,113,160 1,125,075 -11,915 2.43 27,045
Real Assets 3.89 718,127 886,988 -168,861 3.66 26,287
U.S. Listed Real Estate 3.89 718,127 886,988 -168,861 3.66 26,287
Page 20 of 47 31
PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Holdings
Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Port.Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
iShares Core U.S. REIT ETF USRT 3.89 47.18 15,221 718,127 886,988 -168,861 3.66 26,287
Page 21 of 47 32
PARS/CITY OF CUPERTINO 115P- PENSION
Fixed Income Holdings
Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/29/2023
© 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.
Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency
Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.
Holdings Date: 9/29/2023
Symbol
% of
Fixed
Income
Portfolio
Value
Projected
Annual
Income
Current
Yield
Yield to
Maturity
Effective
Duration
Effective
Maturity
Avg.
Quality
Total 100.00 5,409,682 200,032 3.70 9.54 5.67 NA A
Investment Grade 82.80 4,478,568 130,360 2.91 NA 6.18 NA AA
Mutual Funds & ETFs 82.80 4,478,568 130,360 2.91 NA 6.18 NA AA
Fidelity U.S. Bond Index Fund FXNAX 82.80 4,478,568 130,360 2.91 NA 6.18 NA AA
High Yield 17.20 931,114 69,672 7.48 9.54 3.20 NA B
Mutual Funds & ETFs 17.20 931,114 69,672 7.48 9.54 3.20 NA B
Artisan High Income Fund - Institutional Shar...APHFX 17.20 931,114 69,672 7.48 9.54 3.20 NA B
Page 22 of 47 33
U.S. Bank Confidential
MARKET REVIEW
Provided by Sub-Advisor - PFM Asset Management LLC
34
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
THE ECONOMY
►In the second quarter, gross domestic product (GDP) grew at an annualized rate
of 2.1%, in line with 2023 growth estimates by the Federal Reserve (Fed) despite
persistent inflation and continued rate hikes. This GDP growth rate is below global
growth estimates of 3.0%, which have been buoyed by emerging markets (EM) and
developing economies.
►The U.S. labor market continues to cool as the unemployment rate has risen to
3.8% in September. The number of job openings to unemployed ratio fell to 1.51, down
from its high of 2.0 in 2022 but not yet closing in on the goal of 1.00.
►Inflation pressures remained visible in the third quarter, with headline inflation
(CPI) increasing 3.7% year-over-year (YoY) in September, up from 3.0% at the end
of the second quarter. However, the less volatile core reading (which excludes food
and energy) shows continued cooling at 4.1% YoY in September, its slowest pace
since 2021.
►Through the strong labor market and continued growth, consumer confidence saw
relative improvement. The Michigan Consumer Sentiment survey ended the quarter
at 68.1, up 8.4 year-to-date, though below the long-term average of 85. Consumers
savings and incomes remain strong, but debt levels and defaults are increasing.
Global GDP Growth
Source: IMF. Dark blue bars indicate actual numbers; light blue bars indicate forecasted
estimates.
U.S. Prime Age Labor Force Participation Rate 25-54 Yrs.
Seasonally Adjusted (SA)
Source: Bureau of Labor Statistics.
3.02.9
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
Yo
Y
%
C
h
a
n
g
e
78%
80%
82%
84%
Sep '18 Sep '19 Sep '20 Sep '21 Sep '22 Sep '23
U.S. Inflation Rate
Source: Bureau of Labor Statistics.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Sep-19 Sep-20 Sep-21 Sep-22 Sep-23
Yo
Y
%
C
h
a
n
g
e
Core CPI CPI
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Page 24 of 47
35
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
WHAT WE’RE WATCHING
►After a pause in June, the third quarter brought one more rate hike as the
resiliency of economic activity in the U.S. prompted the Fed to raise the target for
the federal funds rate by 25 basis points (bps). Looking forward, the median dot for
2024 and 2025 were raised to 5.125% and 3.875%, with increased expectations of a
‘higher-for-longer’ policy. The European Central Bank (ECB) diverged from Fed policy
slightly with two hikes during the quarter, marking a full year of consecutive rate hikes,
as they continue to rein in inflation.
►The U.S. saw some recovery in manufacturing during the quarter as S&P Global
U.S. Manufacturing rose to 49.8, just fractionally contractionary, as supply conditions
improved and employment rose. Services weakened over the quarter, but remain
expansionary at 50.1. The HCOB Eurozone manufacturing PMI, by comparison,
ended the quarter in sharply contractionary territory for the fifteenth consecutive
month, at 43.4. The services PMI also turned contractionary ending at 48.7.
►China’s manufacturing and services sectors saw continued growth but with
slowing momentum through the quarter as the S&P Global China Manufacturing
and Services readings dipped to 50.9 and 50.2, respectively. Looking forward, the
expected increased domestic tourism for “golden week” may provide a short-term
boost to demand, though whether that can be sustained remains to be seen.
Global Central Bank Rates
Source: Bloomberg.
U.S. ISM Manufacturing & Services PMI
Source: Bloomberg.
40
45
50
55
60
65
70
Sep '19 Sep '20 Sep '21 Sep '22 Sep '23
Manufacturing Services
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Sep '19 Sep '20 Sep '21 Sep '22 Sep '23
Fed Target Rate ECB Target Rate
Bank of England Target Rate Bank of Canada Target Rate
University of Michigan Consumer Sentiment
Source: Bloomberg.
40
50
60
70
80
90
100
110
Sep '19 Sep '20 Sep '21 Sep '22 Sep '23
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Page 25 of 47
36
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
DOMESTIC EQUITY
►The S&P 500 Index (S&P) posted a return of -3.27% for the third quarter
of 2023. As of September 30, 2023, the trailing 1-year return for the index
was 21.59%.
►Over the quarter, extreme market concentration continued to play a factor
for large-cap stocks, as evidenced by the underperformance of the S&P 500
Equal Weight Index versus the S&P 500 Market Cap-Weighted Index.
►Within the S&P, only two of the 11 Global Industry Classification Standard
(GICS) sectors posted positive gains for the quarter: Energy (12.22%) and
Communication Services (3.07%). The worst-performing sectors over the
quarter were Utilities (-9.25%), Real Estate (-8.90%), and Consumer Staples
(-5.97%).
►Small-caps, as represented by the Russell 2000 Index, returned -5.13%
during the quarter, lagging mid- and large-caps. The Russell Mid Cap Index
returned -4.68% for the quarter, while the Russell 1000 Index returned
-3.16%.
►According to FactSet Earnings Insight (as of September 29, 2023), the
expected YoY earnings growth rate for the S&P for the third quarter is -0.1%.
If expectations become- a reality, it will be the fourth consecutive quarterly
decline for the index.
►As of the end of the quarter, the S&P 500 P/E ratio was 20.96, below its
5-year average of 21.74. By comparison, the S&P 600, which represents
small-cap stocks, had a P/E ratio of 14.52, well below its 5-year average of
17.22.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Source: Bloomberg.
S&P 500 Index Performance by Sector
Periods Ended September 30, 2023
Source: Bloomberg.
*P/E ratios are calculated based on one-year forward estimates and adjusted to include only
positive earnings results for consistency.
P/E Ratios of Major Stock Indices*
Consumer
Disc.
Consumer
Staples Energy Financials H'lthcare Industrials Info. Tech Materials Real
Estate Telecom Utilities
QTD -4.80%-5.97%12.22% -1.13%-2.65% -5.16% -5.64%-4.76% -8.90% 3.07%-9.25%
YTD 26.58%-4.76%5.99% -1.65%-4.09%4.50%34.72% 2.61%-5.51%40.43% -14.41%
1 Year 13.69%7.35%30.09% 11.68% 8.18%24.54%41.10%18.05%-1.90% 38.48% -7.02%
-20%
-10%
0%
10%
20%
30%
40%
50%
0
5
10
15
20
25
30
10
15
20
25
30
35
Oct '18 Oct '19 Oct '20 Oct '21 Oct '22
S&
P
6
0
0
S&
P
5
0
0
S&P 500 S&P 500 5-Year Average
S&P 600 S&P 600 5-Year Average
Page 26 of 47
37
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
NON-U.S. EQUITY
►Markets outside of the U.S., as measured by the MSCI ACWI ex-U.S.
Index, slightly underperformed their U.S. counterparts, returning -3.77% for
the quarter.
►There were 10 out of the 11 sectors that posted negative returns for
the quarter, with Information Technology (-8.71%), Utilities (-7.89%), and
Consumer Staples (-6.38%) being the worst-performing sectors. Energy
(+8.96%) was the best and only sector with a positive return for the quarter.
The sector benefited from oil prices soaring on tighter supplies.
►Emerging markets (EM), as represented by MSCI Emerging Market
Index, outperformed Developed ex-U.S. Markets, represented by the MSCI
EAFE Index, returning -2.93% versus -4.11% for the quarter.
►MSCI Japan (-1.55%) outperformed the MSCI EAFE Index. Japanese
equities continue to benefit from positive investor sentiment as better
corporate governance practices and attractive valuation brighten earnings
outlook. Of the five largest-weighted countries in the index, Germany
(-7.62%) was the worst performer due to gloomy economic data and
unfavorable demographics.
►Within EM, MSCI India (1.84%) was a strong performer. The country’s
economic growth remains strong despite higher rates. MSCI China (-2.41%)
outperformed the index as the government reaffirmed stimulative policies,
which fueled a sharp rebound in Chinese equities during the month of July.
►Small-caps, as represented by MSCI ACWI ex-U.S. Small Cap Index,
outperformed within the international equity markets, returning -1.70% for the
quarter.
►Non-U.S. equities remain undervalued relative to their long-term average
across international equity markets. As of September 30, 2023, MSCI EAFE
ended the quarter with a P/E ratio of 13.39, much lower than its 5-year
average of 15.98. Similarly, MSCI EM’s P/E stood at 12.99 versus a 5-year
average of 13.12.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Source: Bloomberg.
MSCI ACWI ex-U.S. Sectors
Periods Ended September 30, 2023
Source: Bloomberg.
*P/E ratios are calculated based on one-year forward estimates and adjusted to include only
positive earnings results for consistency.
P/E Ratios of MSCI Equity Indices*
Consumer
Disc.
Consumer
Staples Energy Financials Healthcare Industrials Info Tech Materials Real
Estate Telecom Utilities
QTD -5.56%-6.38% 8.96% -0.72% -2.82%-5.82%-8.71% -3.26% -1.12% -4.92% -7.89%
YTD 6.64% -0.69% 12.36%5.55%2.73% 9.24% 13.60% -0.31%-5.23%0.94%-1.35%
1 Year 22.30% 9.00% 27.26% 22.01% 17.17% 28.18% 28.97% 16.20% 4.66% 13.01% 11.43%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
8
10
12
14
16
18
20
22
24
26
Oct '18 Oct '19 Oct '20 Oct '21 Oct '22 Oct '23
MSCI EAFE MSCI EAFE 5-Year Average
MSCI Emerging Markets MSCI Emerging Markets 5-Year Average
Page 27 of 47
38
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
FIXED INCOME
►The U.S. bond market represented by the Bloomberg U.S. Aggregate
(Aggregate) Index fell sharply during the third quarter to -3.23% as rates
continued rising. The trailing 1-year period return is 0.64%.
►The Bloomberg U.S. Treasury Index closed the quarter with a loss of
-3.06%. During the period, the Federal Open Market Committee (FOMC)
raised interest rates by a quarter point in July, but paused at the September
meeting. Long rates rose on several factors, including higher overall
treasury issuance, less foreign demand, stickier energy-related inflation,
and Federal debt and deficit size. The latter led to Fitch downgrading the
U.S. Government rating. The curve remains inverted as the fed funds rate is
now targeted at 5.5%. The 10-year climbed 78 bps in the quarter, ending at
4.59%.
►Corporate credit had mixed results for the quarter. The investment-grade
Bloomberg U.S. Corporate (IG Corp) Index declined 3.09%, while high-yield
bonds, as represented by the Bloomberg U.S. Corporate High-Yield (HY)
Index, posted a gain of 0.46%. Although spreads didn’t widen, IG Corp sold
off from duration. HY saw very mild spread widening but was again led by the
lowest quality Caa/CCC-rated cushioned by double-digit yields.
►The fixed-rate mortgage market, as measured by the Bloomberg U.S.
Mortgage-Backed Securities (MBS) Index, lost 4.05%, hurt by continued
duration extension on higher rates. On the commercial side, the Bloomberg
U.S. Agency CMBS Index declined by 1.91%.
►EM USD sovereign bonds, as represented by the JP Morgan EMBI
Global Diversified Index, lost 2.23%.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Source: Bloomberg.
Returns for Fixed-Income Segments
Periods Ended September 30, 2023
Source: Bloomberg.
U.S. Treasury Yield Curve
5.05%4.61%4.57%4.70%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
9/30/2022
6/30/2023
9/30/2023
3-mo 2-yr 5-yr 10-yr 30-yr
Blmbg U.S. Aggregate Blmbg U.S. Treasury Blmbg U.S. MBS Blmbg U.S. Corporate Blmbg U.S. High Yield
QTD -3.23%-3.06%-4.05%-3.09%0.46%
YTD -1.21%-1.52%-2.26%0.02%5.86%
1 Year 0.64%-0.81%-0.17%3.65%10.28%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Page 28 of 47
39
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
ALTERNATIVES
►REITs, as measured by the FTSE NAREIT Equity REITs Index, fell
7.13% in the third quarter of 2023, compared to a 2.62% increase in the prior
quarter. All major sectors posted losses during the quarter as higher interest
rates and broader economic concerns have spooked investors. The best
performers were the Office and Data Center sectors, which posted returns
of -1.47% and -2.50%, respectively. The worst performers during the quarter
were the Diversified and Self-Storage sectors, which posted returns of
-13.92% and -12.19%, respectively.
►Commodity futures, represented by the Bloomberg Commodity Total
Return Index, gained 4.71% in the third quarter of 2023, compared to a
2.56% decline in the prior quarter. The U.S. Dollar Index (DXY) gained 3.17%
during the same period. The price of gold fell 3.69% in Q3, marking the
second consecutive quarter of declines for the precious metal. Gold finished
the quarter at $1,848.63 per ounce, down from $1,919.35 at the end of the
previous quarter. The West Texas Intermediate (WTI) Crude Oil spot price
gained 28.53% from $70.64 to $90.79 per barrel as news of OPEC cuts and
tighter supplies outweighed headwinds posed by a strengthening U.S. dollar
and softening economic data.
►Private real estate, as measured by the NCREIF Property Index, fell
-1.98% in the second quarter of 2023, resulting in a -6.60% return over
the twelve-month period ended June 2023. This was the third consecutive
quarter of negative returns for the index, underscoring the weakness in
private property values. Hotel properties were again the top performers, with
a total return of 4.00% in the second quarter, comprised of 1.94% in income
return and 2.06% in appreciation return. Office properties were again the
worst performers with a total return of -5.79%, comprised of 1.21% in income
return and -7.00% in appreciation return.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Source: Bloomberg.
FTSE NAREIT Sectors
Periods Ended September 30, 2023
Sources: Bloomberg and Hedge Fund Research, Inc.
Returns for Liquid and Semi-Liquid Alternative Assets
Periods Ended September 30, 2023
Apartments Data
Centers Diversified Healthcare Hotels Industrial Office Retail Storage
QTD -11.68%-2.50%-13.92%-4.36% -3.60% -6.88% -1.47% -8.36%-12.19%
YTD -2.77%16.39% -23.24%3.14% 0.81% 1.73%-17.41%-8.93% -4.06%
1 Year -9.77%29.13% -13.41%6.66% 6.13%12.63% -18.62%6.99%-10.52%
-30%
-20%
-10%
0%
10%
20%
30%
U.S. REITs International REITs Commodity Futures Gold HFRI Fund Weighted
Comp.
QTD -7.13%-2.80%4.71%-3.28%0.850%
YTD -2.14%-6.94%-3.44%2.18%4.27%
1 Year 2.99%2.80%-1.30%11.61%6.69%
-10%
-5%
0%
5%
10%
15%
Page 29 of 47
40
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
ALTERNATIVES (continued)
►In the second quarter of 2023, infrastructure funds raised only $3.72
billion, although this is higher than the amount raised during the prior quarter.
Almost all of this capital was raised by opportunistic infrastructure funds.
Real assets dry powder has also fallen from previous years and stands at
$254.85 billion as of Q4 2022. Despite macroeconomic headwinds, the asset
class continues to remain attractive due to its ability to provide moderate
but consistent returns during periods of volatility, inflation and recession.
According to PitchBook, infrastructure funds posted a return of 2.83% in Q1
2023. The asset class has generated an annualized return of 10.49% for the
five years ended Q1 2023.
►In the second quarter of 2023, private debt fundraising amounted to
$56.38 billion, up from the prior quarter. Private debt dry powder has fallen
to $434.39 billion, although it remains above the long-term average. The
asset class has performed well relative to public fixed income and may see
more opportunities emerge in the near term as tightening lending standards
push banks out of the private lending space. According to the Cliffwater
Direct Lending Index, U.S. middle market loans, a proxy for private debt,
posted a return of 2.81% in Q2 2023. The asset class has also generated an
annualized return of 8.47% for the five years ended Q2 2023.
►In the second quarter of 2023, private capital fundraising was led by
private equity funds, which closed on $114.01 billion. Global private equity
dry powder, which accounts for the bulk of private capital dry powder,
remains high at $1.32 trillion as of December 2022. Recent private equity
performance has weakened as a result of high interest rates and a slowing
economy; however, longer-term performance relative to public equities
remains strong. According to Cambridge Associates, U.S. private equity
posted a return of 2.69% in Q1 2023. The asset class has generated an
annualized return of 18.47% for the five years ended Q1 2023.
►Hedge fund returns were positive quarter-to-date through August 2023,
with the HFRI Fund Weighted Composite Index returning 1.05%. During the
same period, the HFRI Macro (Total) Index returned 0.11%. The HFRI Equity
Hedge (Total) Index and the HFRI Fund of Funds Index returned 0.85% and
0.95%, respectively.
Source: NCREIF, PitchBook, Cliffwater, Cambridge Associates, manual inputs.
As of March 31, 2023 - most recent period for which all performance data is available.
Returns for Private Capital Assets
Sources: Pitchbook.
* Total capital raised in 2023 as of June 30, 2023 - most recent period for which ALL
fundraising data is available.
** Cumulative dry powder as of most recent - December 31, 2022.
Private Capital Fundraising & Dry Powder
Private Real Estate Infrastructure Private Debt Private Equity
QTD -1.81%2.83%2.69%2.69%
YTD -1.81%2.83%2.69%2.69%
1 Year -1.60%9.02%7.26%-1.46%
-4%
-2%
0%
2%
4%
6%
8%
10%
Closed-End
Real Estate Infrastructure Private Debt Private
Equity
Venture
Capital
YTD Fundraising ($B)*$58.31 $5.76 $98.87 $211.10 $77.75
Dry Powder ($B)**$380.29 $254.85 $434.39 $1,324.59 $574.07
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$
B
i
l
l
i
o
n
s
Page 30 of 47
41
QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2023
Multi-Asset Class Management
Disclosures
PFM Asset Management LLC (“PFMAM”) is an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset
Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S.
Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change.
Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy,
completeness, or suitability. The information contained in this report is not an offer to purchase or sell any securities.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Further distribution is not permitted without prior written consent.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.
Page 31 of 47
42
U.S. Bank | Public
Important disclosures, definitions
of terms and index descriptions
If you have questions regarding this information or wish to receive
definitions of any additional terms or indexes used in this report,
please contact your Portfolio Manager.
43
Disclaimer
Sub-advised investment services are provided by PFM Asset Management LLC (“PFMAM”), an
investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S.
Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association
(“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible
for and does not guarantee the products, services or performance of PFMAM. The information contained
is not an offer to purchase or sell any securities. Additional applicable regulatory information is available
upon request.
For more information regarding PFMAM’s services please visit www.pfmam.com.
Disclaimer
Page 33 of 4744
U.S. Bank | Public
Important disclosures (page 1 of 4)
The information provided here is not intended to replace your account statement. Your account statement is the official record
of your account.
Equal Housing Lender. Credit products are offered by U.S. Bank National Association and subject to normal credit approval.
Deposit products offered by U.S. Bank National Association. Member FDIC.
For use in one-on-one meetings/presentations.
This information represents the opinion of U.S. Bank. The views are subject to change at any time based on market or other conditions
and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future
results. The factual information provided has been obtained from sources believed to be reliable but is not guaranteed as to accuracy
or completeness.
U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your
tax and/or legal advisor for advice and information concerning your particular situation.
Past performance is no guarantee of future results. All performance data, while obtained from sources deemed to be reliable, are
not guaranteed for accuracy. Indexes shown are unmanaged and are not available for direct investment, nor are they subject to fees
and expenses.
Performance reports included may show performance results gross of fees and expenses. If fees and expenses were included, the
performance would be lower. If you have any questions, please speak with your relationship manager for additional information.
Based on our strategic approach to creating diversified portfolios, guidelines are in place concerning the construction of portfolios
and how investments should be allocated to specific asset classes based on client goals, objectives and tolerance for risk. Not all
recommended asset classes will be suitable for every portfolio. Diversification and asset allocation do not guarantee returns or
protect against losses.
Page 34 of 4745
U.S. Bank | Public
Important disclosures (page 2 of 4)
Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. Stocks of
small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than
stocks of larger companies and may be expected to do so in the future. Stocks of mid-capitalization companies can be expected to
be slightly less volatile than those of small-capitalization companies, but still involve substantial risk and may be subject tomore
abrupt or erratic movements than large-capitalization companies. The value of large-capitalization stocks will rise and fall in
response to the activities of the company that issued them, general market conditions and/or economic conditions. Growth
investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently
over the long term. Such investments may provide minimal dividends, which could otherwise cushion stock prices in a market decline.
Stock value may rise and fall significantly based, in part, on investors' perceptions of the company, rather than on fundamental
analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments. Value investments
focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or
book value. Such investments are subject to risks that their intrinsic values may never be realized by the market, or such stocks may
turn out not to have been undervalued. Investors should carefully consider the additional risks involved in value investments.
International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in
financial standards and other risks associated with future political and economic developments. Investing in emerging markets may
involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may
result in greater volatility.
Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic
conditions on real estate values, changes in interest rates and risks related to renting properties (such as rental defaults). There are
special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest rate
changes, credit risk, economic changes and the impact of adverse political or financial factors.
Investments in fixed income securities are subject to various risks, including changes in interest rates, credit quality, market
valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Investment in fixed
income securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term securities.
Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities.
Investments in high yield bonds offer the potential for high current income and attractive total return, but involve certain risks.
Changes in economic conditions or other circumstances may adversely affect a bond issuer's ability to make principal and interest
payments.
Page 35 of 4746
U.S. Bank | Public
Important disclosures (page 3 of 4)
The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the
financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. Income on
municipal bonds is free from federal taxes, but may be subject to the federal alternative minimum tax (AMT), state and local taxes.
Treasury Inflation-Protected Securities (TIPS)offer a lower return compared to other similar investments and the principal value
may increase or decrease with the rate of inflation. Gains in principal are taxable in that year, even though not paid out until maturity.
Non-financial specialty assets, such as real estate, farm, ranch and timber properties, oil, gas and mineral interests or closely-held
business interests are complex and involve unique risks specific to each asset type, including the total loss of value. Special risk
considerations may include natural events or disasters, complex tax considerations and lack of liquidity. Specialty assets may not be
suitable for all investors.
Alternative investments very often use speculative investment and trading strategies. There is no guarantee that the investment
program will be successful. Alternative investments are designed only for investors who are able to tolerate the full loss of an
investment. These products are not suitable for every investor even if the investor does meet the financial requirements. It is
important to consult with your investment professional to determine how these investments might fit your asset allocation, risk profile
and tax situation. Hedge funds are speculative and involve a high degree of risk. An investment in a hedge fund involves a
substantially more complicated set of risk factors than traditional investments in stocks or bonds, including the risks of using
derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem or
transfer interests in a fund. Exchange-traded funds (ETFs)are baskets of securities that are traded on an exchange like individual
stocks at negotiated prices and are not individually redeemable. ETFs are designed to generally track a market index and shares may
trade at a premium or a discount to the net asset value of the underlying securities. Private equity investments provide investors and
funds the potential to invest directly into private companies or participate in buyouts of public companies that result in a delisting of
the public equity. Investors considering an investment in private equity must be fully aware that these investments are illiquidby
nature, typically represent a long-term binding commitment and are not readily marketable. The valuation procedures for these
holdings are often subjective in nature. Private debt investments may be either direct or indirect and are subject to significant risks,
including the possibility of default, limited liquidity and the infrequent availability of independent credit ratings for private companies.
Structured products are subject to market risk and/or principal loss if sold prior to maturity or if the issuer defaults on the security.
Investors should request and review copies of Structured Products Pricing Supplements and Prospectuses prior to approving or
directing an investment in these securities.
Page 36 of 4747
U.S. Bank | Public
Important disclosures (page 4 of 4)
Mutual fund investing involves risk and principal loss is possible. Investing in certain funds involves special risks, such as those
related to investments in small- and mid-capitalization stocks, foreign, debt and high-yield securities and funds that focus their
investments in a particular industry. Please refer to the fund prospectus for additional details pertaining to these risks. An investment
in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government
agency. Although these funds seek to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing
in these funds.
Holdings of First American Funds: U.S. Bancorp Asset Management, Inc. is a registered investment advisor and subsidiary of
U.S. Bank National Association. U.S. Bank National Association is a separate entity and wholly owned subsidiary of U.S. Bancorp. U.S.
Bank is not responsible for and does not guarantee the products, performance or services of U.S. Bancorp Asset Management. U.S.
Bancorp Asset Management, Inc. serves as an investment advisor to First American Funds. Holdings of Nuveen mutual funds: Firstar
Capital Corporation (Firstar Capital), an affiliate of U.S. Bancorp, holds a less-than-10 percent ownership interest in Windy City
Investments Holdings, LLC which was formerly the parent of Windy City Investment Inc. and the indirect parent of Nuveen Fund
Advisors, LLC which is the investment advisor to the Nuveen Mutual Funds. On October 1, 2014, Windy City Investments, Inc. was
sold to Teachers Insurance and Annuity Association of America. As a result of the sale, U.S. Bancorp no longer has an indirect
ownership interest in Nuveen Fund Advisors, LLC. Depending on the outcome of certain factors, Firstar Capital might in the future
receive an earn-out payment in respect of its interest in Windy City Investment Holdings, LLC, under the terms of the sale. Non-
proprietary mutual funds: U.S. Bank may enter into agreements with other non-proprietary mutual funds or their service providers
whereby U.S. Bank provides shareholder services and/or sub-transfer agency, custodial and other administrative support services and
receives compensation for these services. Compensation received by U.S. Bank directly or indirectly from mutual funds does not
increase fund fees and expenses beyond what is disclosed in the fund prospectuses. For more information, review the fund
prospectus.
Page 37 of 4748
U.S. Bank | Public
Definitions of report and statement terms (page 1
of 5)
Accredited Investor: Private placement securities generally require that investors be accredited due to the additional risks and
speculative nature of the securities. For natural persons, the criteria is met by a net worth of more than $1 million (excluding primary
residence) or an income of more than $200,000 individually ($300,000 jointly) for the two most recent years and a reasonable
expectation for the same in the current year. For other entities, such as corporations, partnerships, trusts and employee benefit plans,
the criteria is met with at least $5 million in assets. See full definition in Rule 501 of Regulation D under the Securities Act of 1933.
Alpha: A measure of risk-adjusted performance. A statistic measuring that portion of a stock, fund or composite's total return
attributable to specific or non-market risk. Alpha measures non-market return and indicates how much value has been added or lost. A
positive Alpha indicates the fund or composite has performed better than its Beta would predict (i.e., the manager has added value
above the benchmark). A negative Alpha indicates a fund or composite has underperformed given the composite's Beta.
Alternative Investments: As used by U.S. Bank, an investment considered to be outside of the traditional asset classes of long-only
stocks, bonds and cash. Examples of alternative investments include hedge funds, private equity, options and financial derivatives.
Annualized Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark.
Performance reports provided annualize only periods greater than one year.
Annualized or Annual Rate of Return: Represents the average annual change in the value of an investment over the periods indicated.
Batting Average: Shows how consistently the portfolio return met or beat the market.
Beta: A measure of your portfolio's risk relative to a benchmark. A portfolio with a beta of 1.5, for example, would be expected to
return roughly 1.5 times the benchmark's return. A high Beta indicates a riskier portfolio.
Bond Credit Rating: A grade given to bonds by a private independent rating service that indicates their credit quality. Ratings are the
opinion of Standard & Poor's or other agencies as noted and not the opinion of U.S. Bank.
Consumer Price Index (CPI): A measure of the average change in prices over time in a market basket of goods and services and is one
of the most frequently used statistics for identifying periods of inflation and deflation.
Convexity to Stated Maturity: A measure of the curvature in the relationship between bond prices and bond yields that demonstrates
how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool and helps to measure
and manage the amount of market risk to which a portfolio of bonds is exposed. This version of convexity measures the rate change in
duration of a bond as the yield to (stated) maturity changes.
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Definitions of report and statement terms (page 2
of 5)
Cost basis/book value: The original value of an asset at the time it was acquired. This is normally the purchase price or appraised value at the
time of acquisition. This data is for information purposes only.
Cumulative Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark.
Performance reports provided use unannualized returns in periods up to one year, but annualized returns for periods exceeding one year.
Downside Capture: The downside capture ratio reflects how a portfolio compares to a benchmark during periods when the benchmark is
down. A downside capture ratio of 0.80 (or 80 percent) means the portfolio has historically declined only
80 percent as much as the benchmark during down markets.
Downside Deviation: The deviation of returns that fall below a minimum acceptable return (MAR). Although the numerator includes only
returns below the MAR, the denominator includes all returns in the performance period. This risk statistic is similar to the downside standard
deviation except the sum is restricted to returns less than the MAR instead of the mean.
Downside Standard Deviation: The deviation of returns that fall below the mean return. Although the numerator includes only returns below
the mean, the denominator includes all returns in the performance period. This risk statistic is similar to the downside deviation except the
sum is restricted to returns less than the mean instead of the minimum acceptable return (MAR).
Effective Maturity: The date of a bond’s most likely redemption, given current market conditions, taking into consideration the optional and
mandatory calls, the optional, mandatory and recurring puts, and the stated maturity.
Estimated annual income: The amount of income a particular asset is anticipated to earn over the period indicted. The shares multiplied by
the annual income rate.
Gain/loss calculation: If an asset was sold, the difference between the proceeds received from the sale compared to the cost of acquiring
the asset. If the value of the proceeds is the higher of the two numbers, then a gain was realized. If the value of the proceedsis the lower of
the two numbers, a loss was incurred. This data is for information purposes only.
Gross of Fees: Represents all assets included in the calculation of the portfolio -- before the deduction of trust and asset management fees --
and is inclusive of all applicable third party security fees and expenses Details of those fees and expenses are provided in the security's
prospectus or offering documents.
Information Ratio: The information ratio compares the average excess return of the portfolio over its associated benchmark divided by the
tracking error.
M-Squared: The hypothetical return of the portfolio after its risk has been adjusted to match a benchmark.
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Definitions of report and statement terms (page 3
of 5)
Market Value: Publicly traded assets are valued using market quotations or valuation methods from financial industry services believed by us
to be reliable. Assets, that are not publicly traded, may be reflected at values from other external sources or special valuations prepared by
us. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value. Values shown do not
necessarily reflect prices at which assets could have been bought or sold. Values are updated based on internal policy and may be updated
less frequently than statement generation.
Market Value Over Time: Many factors can impact the portfolio value over time, such as contributions to the account, distributions from the
account, the investment of dividends and interest, the deduction of fees and expenses, and market performance.
Modified Duration to Effective Maturity: A formula that expresses the measurable change in the value of a security in response to a change
in interest rates. This version of Modified Duration takes into consideration a “horizon date/price” that is, given current conditions, the most
likely redemption date/price using the set of calls/puts, as well as stated maturity.
Modified Duration to Stated Maturity: A formula that expresses the measurable change in the value of a security in response to a change in
interest rates. This version of Modified Duration uses stated maturity as the “horizon date/price” and ignores any potential call/put/pre-
refunding, even if they are mandatory.
Net of Fees: Represents all assets included in the calculation of the portfolio -- after the deduction of trust and asset management fees.
Please refer to the client fee schedule for additional information.
Price/Earnings Ratio (P/E): The P/E ratio of a company is calculated by dividing the price of the company’s stock by its trailing
12-month earnings per share. A high P/E usually indicates that the market is paying a premium for current earnings because it believes in the
firm’s ability to grow its earnings. A low P/E indicates the market has less confidence that the company’s earnings will increase. Within a
portfolio, P/E is the weighted average of the price/earnings ratios of the stocks in the portfolio.
Qualified Purchaser: Some private placement securities require that investors be Qualified Purchasers in addition to being Accredited
Investors. For natural persons, the criteria is generally met when the client (individually or jointly) owns at least $5 million in investments. For
other entities, such as corporations, partnerships, trusts and employee benefit plans, the criteria is met with at least $25 million in
investments though there are other eligibility tests that may apply. See full definition in Section 2(a)(51) of the Investment Company Act of
1940.
R-Squared: Measures the portion of the risk in your portfolio that can be attributed to the risk in the benchmark.
Realized and Unrealized Gains/Losses: Are calculated for individual tax lots based on the records we have available. Some data may be
incomplete or differ from what you are required to report on your tax return. Some data used in these calculations may have beenobtained
from outside sources and cannot be verified by U.S. Bank. The data is intended for informational purposes only and should not be used for
tax reporting purposes. Please consult with your tax or legal advisor for questions concerning your personal tax or financial situation.
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U.S. Bank | Public
Definitions of report and statement terms (page 4
of 5)
Residual Risk: The amount of risk specific to the assets in a portfolio distinct from the market, represented by a benchmark.
Return: An indication of the past performance of your portfolio.
Sharpe Ratio: Measures of risk-adjusted return that calculates the return per unit of risk, where risk is the Standard Deviation of your
portfolio. A high Sharpe ratio indicates that the portfolio is benefiting from taking risk.
Sortino Ratio: Intended to differentiate between good and bad volatility. Similar to the Sharpe ratio, except it uses downside deviation for
the denominator instead of standard deviation, the use of which doesn't discriminate between up and down volatility.
Spread: The difference between the yields of two bonds with differing credit ratings (most often, a corporate bond with a certain amount
of risk is compared to a standard traditionally lower risk Treasury bond). The bond spread will show the additional yield that could be
earned from a bond which has a higher risk.
Standard Deviation: A measure of the volatility and risk of your portfolio. A low standard deviation indicates a portfolio with less volatile
returns and therefore less inherent risk.
Time-weighted Return: The method used to calculate performance. Time-weighted return calculates period by period returns that
negates the effect of external cash flows. Returns for periods of greater than one year are reported as an annualized (annual) rate of return.
Returns of less than one year are reported on a cumulative return basis. Cumulative return is the aggregate amount an investment has
gained or lost over time, independent of the period involved.
Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This
is often in the context of a hedge or mutual fund that did not work as effectively as intended, creating an unexpected profit or loss instead.
Traditional Investments: As used by U.S. Bank, an investment made in equity, fixed income or cash securities, mutual funds or exchange-
traded funds (ETFs) where the investor buys at a price with the goal that the investment will go up in value.
Top 10 Holdings: The 10 assets with the highest market values in the account.
Total Portfolio Gross of Fees: Represents all assets included in the calculation of the portfolio, before the deduction of trust and asset
management fees, and is inclusive of all applicable third-party security fees and expenses. Details of those fees and expenses are provided
in the security’s prospectus or offering documents.
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Definitions of report and statement terms (page 5
of 5)
Total Return: The rate of return that includes the realized and unrealized gains and losses plus income for the measurement period.
Treynor Ratio: Measures the performance of a sector relative to risk by dividing the return of the sector in excess of the risk-free return by
the sector's Beta. The higher the Treynor ratio, the better the return relative to risk.
Turnover Percent: Indicates how frequently asset are bought and sold within a portfolio.
Turnover Ratio: The percentage of a mutual fund’s or other investment vehicle's holdings that have been "turned over" or replaced with
other holdings in a given year.
Unrealized gain (loss)— The difference between the current market value (at the end of the statement period) and the cost to acquire the
asset. If the current market value is higher than the cost, a gain is reflected. If the current market value is lower than the cost paid, a loss is
reflected. This data is for information purposes only.
Upside Capture: The upside capture ratio reflects how a portfolio compares to the selected model benchmark during periods when the
benchmark is up. An upside capture ratio of 1.15 (or 115 percent) means the portfolio has historically beat the benchmark by 15 percent
during up markets.
Yield: The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate divided by the market price.
For stocks, it is the annual dividend divided by the market price.
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Frequently used indexes (page 1 of 5)
Bloomberg Barclays 1-3 year U.S. Treasury Index: Measures the performance of the U.S. government bond market and includes public
obligations of the U.S. Treasury with a maturity between one year and up to (but not including) three years.
Bloomberg Barclays 1-5 year U.S. Treasury Index: Includes all publicly issued, U.S. Treasury securities that have a remaining maturity of
greater than or equal to one year and less than five years, are rated investment grade and have $250 million or more of outstanding face
value.
The Bloomberg Barclays 1-5 year Municipal Index: Measures the performance of municipal bonds with time to maturity of more than one
year and less than five years.
Bloomberg Barclays 7-year Municipal Index: Includes municipal bonds with a minimum credit rating of Baa that have been issued as part of
a transaction of at least $50 million, have a maturity value of at least $5 million and a maturity range of four to six years.
Bloomberg Barclays Global Aggregate Index ex-U.S. Index: Measure of global investment grade debt from 24 local currency markets. This
multi-currency benchmark includes Treasury, government-related, corporate and securitized fixed-rate bonds from both developed and
emerging markets issuers.
Bloomberg Barclays Global Treasury ex-U.S. Index: Includes government bonds issued by investment-grade counties outside the United
States, in local currencies, that have a remaining maturity of one year or more and are rated investment grade.
Bloomberg Barclays High Yield Municipal Bond Index: An unmanaged index made up of bonds that are non-investment grade, unrated or
below Ba1 bonds.
Bloomberg Barclays Intermediate Aggregate Index: Consists of one- to 10-year governments, one- to 10-year corporate bonds, all
mortgages and all asset-backed securities within the Aggregate Index.
Bloomberg Barclays Mortgage-Backed Securities Index: Covers agency mortgage-backed pass-through securities (both fixed-rate and
hybrid adjustable-rate mortgages) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
Bloomberg Barclays U.S. Aggregate Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market,
including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and commercial
mortgage-backed securities.
Bloomberg Barclays U.S. Corporate Bond Index: Measures the investment grade, fixed-rate, taxable corporate bond market and includes
U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers.
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Frequently used indexes (page 2 of 5)
Bloomberg Barclays U.S. Corporate High Yield Bond Index: Measures the U.S. dollar denominated, high yield, fixed-rate corporate
bond market.
Bloomberg Barclays U.S. Municipal Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed tax-exempt bond
market. The index includes state and local general obligation, revenue, insured and pre-refunded bonds.
Bloomberg Barclays U.S. Treasury Index: Measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury.
Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index: An unmanaged index includes all publicly issued, U.S.
TIPS that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstandingface
value.
Cambridge U.S. Private Equity Index: This index is based on returns data compiled for U.S. private equity funds (including buyout,
growth equity and mezzanine funds) that represent the majority of institutional capital raised by private equity partnerships formed
since 1986. Returns may be delayed by up to six months. Quarterly performance is prorated based on the cube root for the months of
the quarter.
Citigroup 3-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last three-
month Treasury Bill issues.
Citigroup 6-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last six-
month Treasury Bill issues.
Credit Suisse Leverage Loan Index: Represents tradable, senior-secured, U.S. dollar-denominated non-investment grade loans.
Dow Jones Industrial Average (DJIA): The price-weighted average of 30 significant U.S. stocks traded on the New York Stock
Exchange and NASDAQ. The DJIA is the oldest and single most watched index in the world.
Dow Jones Select REIT Index: Measures the performance of publicly traded REITs and REIT-like securities in the U.S. and is a proxy for
direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real
estate.
HFRI Indices: The Hedge Fund Research, Inc. (HFRI) indexes are a series of benchmarks designed to reflect hedge fund industry
performance by constructing composites of constituent funds, as reported by the hedge fund managers listed within the HFR Database.
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Frequently used indexes (page 3 of 5)
HFRI Equity Hedge Total Index: Uses the HFR (Hedge Fund Research) database and consists only of equity hedge funds with a
minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars.
HFRI Relative Value Fixed Income Corporate Index: Uses the HFR (Hedge Fund Research) database and consists of only relative
value fixed income corporate funds with a minimum of $50 million assets under management or a 12-month track record and that
reported assets in U.S. dollars.
ICE BofAML 1-3 Year Corporate Index: Tracks U.S. dollar-denominated investment grade public debt issued in the U.S. bond market
with maturities of one to three years.
ICE BofAML 1-5 Year Corporate and Government Index: Tracks the performance of short-term U.S. investment grade government
and corporate securities with maturities between one and five years.
ICE BofAML U.S. 7-10 Year Index: Tracks the performance of U.S. dollar denominated investment grade rated corporate debt
publicly issued in the U.S. domestic market and includes all securities with a remaining term to maturity of greater than or equal to
seven years and less than 10 years.
ICE BofAML Global Broad Market Index: Tracks the performance of investment grade public debt issued in the major domestic and
Eurobond markets, including global bonds.
ICE BofAML U.S. High Yield Master II Index: Commonly used benchmark index for high yield corporate bonds and measures the
broad high yield market.
J.P. Morgan Emerging Markets Bond Index Global (EMBI Global): Tracks total returns for traded external debt instruments in the
emerging markets.
London Interbank Offered Rate (LIBOR)3-months: The interest rate offered by a specific group of London banks for U.S. dollar
deposits with a three-month maturity.
London Interbank Offered Rate (LIBOR) 9-months:The interest rate offered by a specific group of London banks for U.S. dollar
deposits with a nine-month maturity.
MSCI All Country World Index (ACWI): Designed to measure the equity market performance of developed and emerging markets.
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Frequently used indexes (page 4 of 5)
Russell 2000 Value Index: Measures companies in the Russell 2000 Index having lower price-to-book ratios and lower forecasted
growth values. The Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations.
Russell 3000 Index: Measures the performance of the 3,000 largest U.S. securities based on total market capitalization.
Russell Midcap Index: Measures the 800 smallest companies in the Russell 3000 Index.
Russell Midcap Growth Index: Measures companies in the Russell Midcap Index having higher price-to-book ratios and higher
forecasted growth values.
Russell Midcap Value Index: Measures companies in the Russell Midcap Index having lower price-to-book ratios and lower forecasted
growth values.
MSCI All County World ex-U.S. Index (ACWI, excluding United States): Tracks the performance of stocks representing developed
and emerging markets around the world that collectively comprise most foreign stock markets. U.S. stocks are excluded from the index.
MSCI EAFE Index: Includes approximately 1,000 companies representing the stock markets of 21 countries in Europe, Australasia and
the Far East.
MSCI Emerging Markets (EM) Index: Designed to measure equity market performance in global emerging markets.
MSCI World Index: Tracks equity market performance of developed markets through individual country indices.
NAREIT Index: Includes REITs (Real Estate Investment Trusts) listed on the New York Stock Exchange, NASDAQ and American Stock
Exchange.
NASDAQ Composite Index: A market capitalization-weighted average of roughly 5,000 stocks that are electronically traded in the
NASDAQ market.
NCREIF Property Index (NPI): Measures the investment performance of a very large pool of individual commercial real estate
properties acquired in the private market for investment purposes only.
Russell 1000 Index: Measures the performance of the 1,000 largest companies in the Russell 3000 Index and is representative of the
U.S. large capitalization securities market.
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Frequently used indexes (page 5 of 5)
Russell 1000 Growth Index: Measures companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted
growth values. It includes the largest 1,000 firms in the Russell 3000 Index.
Russell 1000 Value Index: Measures companies in the Russell 1000 Index with lower price-to-book ratios and lower forecasted
growth values. It includes the largest 1,000 firms in the Russell 3000 Index.
Russell 2000 Index: Measures the performance of the 2,000 smallest companies in the Russell 3000 Index and is representative of
the U.S. small capitalization securities market.
Russell 2000 Growth Index: Measures companies in the Russell 2000 Index having higher price-to-book ratios and higher forecasted
growth values. and is representative of U.S. securities exhibiting growth characteristics. The Russell 2000 Index includes the 2,000
firms from the Russell 3000 Index with the smallest market capitalizations.
S&P 500 Index: Consists of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market.
S&P Global ex-U.S. Property Index: Measures the investable universe of publicly traded property companies domiciled in developed
and emerging markets excluding the United States. The companies included are engaged in real estate related activities such as
property ownership, management, development, rental and investment.
S&P GSCI: A composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures
that is broadly diversified across the spectrum of commodities.
S&P/Case-Shiller Home Price Indexes: A group of indexes that track changes in home prices throughout the United States. Case-
Shiller produces indexes representing certain metropolitan statistical areas (MSA) as well as a national index.
Swiss Re Global Cat Bond Total Return Index: Tracks the aggregate performance of all U.S. dollar-denominated euros and Japanese
yen-denominated catastrophe bonds, capturing all ratings, perils and triggers.
U.S. Dollar Index: Indicates the general international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar
and six major world currencies.
Wilshire 5000 Index: Composed of more than 6,700 publicly-traded U.S. companies and is designed to track the overall
performance of the American stock markets.
Page 47 of 4758
CITY OF CUPERTINO
Agenda Item
23-12736 Agenda Date:
10/23/2023 Agenda #: 3.
Subject:ACTION ITEM Receive the Treasurer's Investment Report for the Quarter Ending
September 30, 2023
Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2023 and
recommend filing with City Council
Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management
4:30(15)
CITY OF CUPERTINO Printed on 10/20/2023Page 1 of 1
powered by Legistar™59
AUDIT COMMITTEE STAFF REPORT
Meeting: October 23, 2023
Subject
Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2023
and forward to City Council
Recommended Action
Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2023 and
forward to City Council
Reasons for Recommendation
Background
On May 19, 2022, the City Council approved the City Investment Policy. Per the City's
Investment Policy, the Treasurer shall submit a quarterly investment report to the City
Council approximately 45 days following the end of the quarter. In addition to the
quarterly investment reports, monthly transaction reports are submitted to the City
Council within 30 days of the end of the reporting period per California Government Code
Section 53607. The quarterly investment report offers a more extensive discussion of the
City's economy, cash flow, and investments.
The City's Municipal Code Section 2.24.050 Investment Authority states that the Treasurer
shall make a monthly report of all investment transactions to the City Council. The City's
Municipal Code Section 2.48.020(A)(3) states that the Director of Administrative Services
also shall be appointed Treasurer and also shall act as ex officio Assessor and shall assess
and collect all City taxes save and except for those collected by State and County officers
for the City. Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers–
Responsibilities lists one of the powers and functions of the Audit Committee is "to review
the quarterly Treasurer's Investment report."
Per the referenced code provisions, a Treasurer's Investment Report is made available to
the City Council quarterly.
Treasurer's Investment Report
The report provides an update on the City's investment portfolio for the month ending
September 30, 2023. The report is as of October 17, 2023.
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The attached statements include balances and transactions of the City's investments with
the Local Agency Investment Fund (LAIF) and Chandler Asset Management. The
Chandler investment report provides information on the investment type, issuer,
purchase date, maturity date, cost value, par value, and market value for each security, as
well as the weighted average maturity and weighted average yield of all investments.
While not governed by the City's Investment Policy, statements for the Public Agency
Retirement Services (PARS) Section 115 Trusts are also attached per a request from the
Treasurer's Report sub-committee.
The City's General Ledger cash and investments balance was $234.6 million, a $2.5 million
decrease from the prior quarter.
Cash and Investments – General Ledger Balance
Fund Type Quarter Ending
June 30, 2023
Quarter Ending
September 30, 2023
General Fund 136,235,014 131,444,895
Special Revenue 42,500,471 42,765,040
Debt Service 6,850 2,684,450
Capital Projects 38,626,129 37,978,199
Enterprise 11,429,178 11,155,667
Internal Service 8,270,804 8,580,528
Total $237,068,447 $234,608,779
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The $234.6 million in cash and investments includes $44.7 million in cash, $21.6 million in
cash equivalents, $151.2 million in investments, and $17.2 million restricted for funding
pension costs.
The City pools cash for all funds except restricted funds. However, the City accounts for
interest earnings, revenues, and expenditures separately for each fund to adequately meet
the purpose and restrictions of each funding source. Pooling funds is a common and
appropriate practice used in public agencies. By pooling funds, the City can benefit from
economies of scale, diversification, liquidity, and ease of administration.
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Cash and Investments – General Ledger Balance
Quarter Ending
June 30, 2023
Quarter Ending
September 30,
2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 47,245,614 44,603,567 19%
Workers' Compensation Checking (Wells Fargo) 35,998 50,161 0%
Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1 (BNY Mellon) - - 0%
Petty Cash and Change 3,586 3,586 0%
Cash Equivalents
Local Agency Investment Fund 21,385,575 21,553,792 9%
Investments
Investments (Chandler) 151,157,622 151,157,622 64%
Restricted for Pension2 (PARS) 17,240,051 17,240,051 7%
Total Cash and Investments3 $237,068,447 $234,608,779 100%
1 Cash held by fiscal agent for bond repayments
2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash
and investments in the General Fund. The assets can only be used to fund CalPERS costs.
3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own
operations. The assets are held in trust for retirees' post-employment health benefits.
The table below shows the bank balances for the City's cash and investments. Bank and
General Ledger balances differ due to timing. Bank balances do not include outstanding
checks and deposits in transit. The General Ledger is updated quarterly with interest
earnings and annually with the year-end investment market values.
Cash and Investments – Bank Balance
Quarter Ending
June 30, 2023
Quarter Ending
September 30,
2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 47,980,304 49,304,330 20%
Workers' Compensation Checking (Wells Fargo) 38,002 45,984 0%
Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1 (BNY Mellon) - - 0%
Cash Equivalents
Local Agency Investment Fund 21,425,004 21,593,220 9%
Investments
Investments (Chandler) 149,161,767 150,093,752 63%
Restricted for Pension2 (PARS) 19,088,859 18,500,105 8%
Total Cash and Investments3 $237,693,936 $239,537,391 100%
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1 Cash held by fiscal agent for bond repayments
2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash
and investments in the General Fund. The assets can only be used to fund CalPERS costs.
3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own
operations. The assets are held in trust for retirees' post-employment health benefits.
Local Agency Investment Fund (LAIF)
LAIF is an investment pool administered by the State of California Treasurer and
governed by California Government Code. The City can withdraw funds from LAIF at
any time. As a result, the City uses LAIF for short-term investment, liquidity, and yield.
The City's LAIF account had a balance of $21.6 million. The quarterly interest rate was
3.59%. The City did not make any deposits or withdrawals in the quarter ending
September 2023.
Investment Portfolio
In FY 2018-19, the City conducted a Request for Proposal (RFP) for investment
management services and selected Chandler Asset Management. Under the City's
Treasurer's direction, Chandler Asset Management manages the City's investment
portfolio in accordance with the City's investment objectives. The City's investment
objectives, in order of priority, are to provide:
Safety to ensure the preservation of capital in the overall portfolio
Sufficient liquidity for cash needs
A market rate of return consistent with the investment program
The performance objective is to earn a total rate of return through a market cycle equal to
or above the return on the benchmark index. Chandler Asset Management invests in high-
quality fixed-income securities consistent with the City's Investment Policy and California
Government Code to achieve the objective.
The portfolio's market value was $150.1 million, compared to $149.2 million at the end of
the previous quarter. The table below includes historical comparisons of the City's
portfolio:
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June 30, 2023 September 30,
2023
Market Value 149,161,767 150,093,752
Par Value 157,278,641 158,177,925
Book Value 156,959,650 157,776,718
Average Maturity 2.42 years 2.14 years
Average Modified Duration 2.06 1.83
Average Purchase Yield 1.95% 2.03%
Average Market Yield 5.11% 5.36%
Average Quality1 AA/Aa1 AA/Aa1
1 S&P and Moody's respectively
The portfolio's market value fluctuates depending on interest rates. When interest rates
decrease after an investment is purchased, the market value of the investment increases.
In contrast, when interest rates increase after an investment is purchased, the market value
of the investment decreases. At the time of purchase, the City intends to hold all
investments until maturity, meaning that changes in market value will not impact the
City's investment principal. If the market value decreases, the City will incur an
unrealized loss. However, the loss will only be realized if the City sells its investments
before their maturity. The market values for the portfolio were provided by Chandler
Asset Management.
Section 115 Trust Investment Portfolio
The City established Section 115 Trusts to reduce pension rate volatility and pre -fund
Other Post-Employment Benefits (OPEB) costs. These trusts are a tax-exempt investment
tool that local governments can use to set aside funds for pension and retiree health costs.
Contributions made to the trust can only be used to fund retirement plans.
Investments in the Section 115 Trusts are governed by separate investment policies, which
are distinct from the City's Investment Policy. On December 6, 2022, City Council
approved the Pension Trust Investment Policy and OPEB Trust Investment Policy. Public
Agency Retirement Services (PARS) administers the trust, while US Bank manages the
investments in accordance with the approved investment policies.
Both Section 115 Trusts are invested in "balanced" portfolios. The investment objective is
designed to provide a moderate amount of current income with moderate growth of
capital. This type of investment strategy is generally recommended for investors with a
long-term time horizon. The strategic asset allocation ranges for this investment objective
are:
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Asset Class Range Target
Equities 50-70% 63%
Fixed Income 20-40% 29%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
The Section 115 Pension Trust had a balance of $18.5 million, a decrease of $0.6 million
from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance
of $33.6 million, a decrease of $1.1 million from the prior quarter due to investment gains.
The quarterly investment returns were -3.00% for both the Pension Trust and OPEB Trust.
Analysis
The City compares its portfolio to LAIF and one-year and two-year Treasury yields. Yield
comparisons for the one-year Treasury, two-year Treasury, LAIF, and City average are
presented below:
In June, one-year and two-year Treasury yields increased. The yield curve remained
inverted and the spread between the two-year and 10-year Treasury yield became more
inverted. The one-year and two-year Treasury yields were 5.46% and 5.03%, respectively.
The one-year Treasury yield increased by 6 basis points, and the two-year Treasury yield
increased by 16 basis points from June 30, 2023. The yield of the City's investment portfolio
66
8
was 5.36%, lower than the one-year Treasury yield but higher than the two-year Treasury
yield and LAIF.
Cash Flow History
Historical revenues, expenditures, and liquidity ratios are presented below:
67
9
As the City's portfolio becomes more or less liquid over time, the ratio of cash and cash
equivalents to revenues and expenditures will increase or decrease, respectively. The
portfolio's investment structure is complete, so the City anticipates the ratio of cash and
cash equivalents to revenues and expenditures to continue to flatten out moving forward.
While a formal liquidity level has not been established, significant and consistent
fluctuations in the ratio may indicate that additional funds should be invested or,
conversely, that investments should be liquidated. In recent years, sufficient liquidity
levels for operating revenues and expenditures have approximated a ratio of 1.0. In March
2022, the City transferred $15.0 million from the operating account to the investment
portfolio, which reduced the March 2022 liquidity ratios.
As of September 30, 2023, the liquidity ratio was 4.5 and 2.5 for revenues and
expenditures, respectively. The City will monitor inflows and outflows during FY 2023-
24 and bring recommendations for the City's investment portfolio as necessary and
applicable.
As of September 30, 2023, the City had $70.9 million in cash and cash equivalents in the
bank and on hand. Based on the cash flow forecast, the City maintains the ability to meet
its expenditure requirements for the next six months.
68
10
Cash Flow Forecast
Applying three-year historical trend data for each of the City's revenue and expenditure
line items to the FY 2023-24 Adopted Budget, the City estimated the following cash flow
forecast for FY 2023-24:
69
11
The purpose of this cash flow and liquidity forecast is to illustrate the timing of the City's
revenues and expenditures throughout a fiscal year using historical trend data. The first
quarter of the fiscal year experiences expenditures exceeding revenues since the City
begins receiving its property tax distributions in November and April of the respective
fiscal year. In January and April, the City receives additional property tax revenues due
to the Vehicle License Fee (VLF) swap. In June, the City tends to experience higher
activities, particularly expenditures, due to the year-end close and accrual process. From
one fiscal year to the next, the City typically incurs one-time special project or capital
expenditure costs. The timing of these costs is more difficult to pinpoint in a particular
month.
From a cash flow analysis perspective, the Adopted and Amended Budgets are efficient
planning tools for determining cash flow needs for a single fiscal year. If a budget is
adopted at a position in which revenues and expenditures are balanced, then it is
reasonable to conclude cash flow is unlikely to be of concern. Beyond one fiscal year, a
City prepares a long-term forward-looking forecast using historical and prospective
assumptions. This forecast model is incorporated and presented to the City Council as
part of the City's Adopted Budget.
Compliance
All of the City's investments comply with state law and the City's Investment Policy. In
compliance with California Government Code 53646 (b)(3), the City maintains the ability
to meet its expenditure requirements for the next six months.
70
12
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: __________________
Thomas Leung
Budget Manager
Reviewed by: __________________
Kristina Alfaro
Director of Administrative Services and City Treasurer
Approved for Submission by: __________________
Matt Morley
Assistant City Manager
Attachments:
A – Chandler Investment Report September 2023
B – Chandler Custodial Statement September 2023
C – PARS Pension and OPEB Account Statement September 2023
D – LAIF Account Statement September 2023
71
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending September 30, 2023
City of Cupertino
72
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
Table of Contents As of September 30, 2023
1
73
SECTION |Section 1 |Economic Update
2
74
Economic Update
Recent economic data continues to suggest positive but below trend growth this year.Although the pace of job growth is moderating,labor
markets remain solid,and the U.S.consumer has demonstrated resiliency. Inflationary trends are subsiding, but core levels remain well
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 remain data dependent as they tread cautiously going forward.
As anticipated at the September meeting,the Federal Open Market Committee voted unanimously to maintain the target Federal Funds at
the range of 5.25 -5.50%.The Fed’s Summary of Economic Projections (SEP)also revealed expectations of higher economic growth,reduced
unemployment, and a gradual easing of inflation compared to earlier forecasts.The Fed is continuing to focus on achieving price stability
and bringing inflation down toward their 2%policy objective,while leaving the option open for the possibility of additional rate hikes in the
future if needed.
The yield curve remained inverted in September.The 2-year Treasury yield increased 18 basis points to 5.05%,the 5-year Treasury yield
rose 36 basis points to 4.61%,and the 10-year Treasury yield increased 46 basis points to 4.57%.The inversion between the 2-year
Treasury yield and 10-year Treasury yield narrowed to -48 basis points at September month-end versus -76 basis points at August month-
end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -45 basis points. The inversion between 3-month
and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in August. The shape of the yield curve indicates
that the probability of recession persists.
3
75
Employment
-400
-200
0
200
400
600
800
1,000
MO
M
C
h
a
n
g
e
I
n
T
h
o
u
s
a
n
d
s
(
0
0
0
'
s
)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
The U.S.economy added 187,000 jobs in August,exceeding consensus expectations, and the last two months were revised downward by
110,000 jobs.The pace of job growth is softening with the three-month moving average payrolls at 150,000 and the six-month moving
average at 194,000.The unemployment rate rose to 3.8%in August from 3.5%in July, and the labor force participation rate increased to
62.8%,the highest level since February of 2020.The U-6 underemployment rate,which includes those who are marginally attached to the
labor force and employed part time for economic reasons,increased to 7.1%from the prior month at 6.7%.Average hourly earnings
declined to 4.3%year-over-year in August from 4.4%in July.While the U.S.labor market is moderating,employment remains strong by
historical standards.
Source: US Department of Labor Source: US Department of Labor
4
76
Inflation
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YO
Y
(
%
)
C
h
a
n
g
e
The Consumer Price Index (CPI) increased in August by 0.6% month-over-month and 3.7% year-over-year, accelerating from 3.2% year-over-
year in July due to surging energy prices.The Core CPI,which excludes volatile food and energy components,was up 0.3%month-over-
month and 4.3% year-over-year, decelerating from 4.7% last month. Shelter remained the largest contributor to the Core CPI increase. The
Personal Consumption Expenditures (PCE)index rose 0.4%month-over-month and 3.5%year-over-year in August, up from a 3.4%year-
over-year gain in July.Core PCE,the Federal Reserve’s preferred inflation gauge,increased just 0.1%month-over-month and 3.9%year-
over-year in August,down from a 4.3%increase in July.Personal income and spending remained relatively healthy, but the personal
savings rate continued its declining trend to 3.9% in August from 4.1% in July. Inflation remains above the Fed's 2% target.
Source: US Department of Labor Source: US Department of Commerce
5
77
Federal Reserve
Source: Federal Reserve Source: Bloomberg
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In
$
m
i
l
l
i
o
n
s
At the September meeting,the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target
range of 5.25 -5.50%.Nonetheless,the Fed conveyed a consensus view that another rate hike is possible later in the year,along with its
commitment to keeping rates at their current level until inflation subsides closer to its 2%target,endorsing a data-dependent 'higher-for-
longer'strategy.The Fed’s Summary of Economic Projections (SEP)also revealed expectations of higher economic growth,reduced
unemployment, and a gradual easing of inflation compared to earlier forecasts.We believe the resiliency of future economic data will
determine if the Federal Reserve can stay on hold for or will tighten policy further to curb inflation.Since the Federal Reserve began its
Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1 trillion to $8.024T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yi
e
l
d
(
%
)
6
78
Bond Yields
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yi
e
l
d
(
%
)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Sep-23
Jun-23
Sep-22
Yi
e
l
d
(
%
)
At the end of September,the 2-year Treasury yield was 77 basis points higher, and the 10-Year Treasury yield was about 74 basis points
higher,year-over-year.The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -48 basis points at
September month-end versus -76 basis points at August month-end. The average historical spread (since 2003)is about +130 basis
points. The inversion between 3-month and 10-year Treasuries narrowed to -88 basis points in September from -134 basis points in
August. The shape of the yield curve indicates that the probability of recession persists.
7
79
Section 2|SECTION |Section 2 |Account Profile
8
80
Objectives
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.
Investment Objectives
The City of Cupertino’s investment objectives, in order of priority, are to provide safety to ensure the
preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate
of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities
consistent with the investment policy and California Government Code.
As of September 30, 2023
9
81
Compliance As of September 30, 2023
Category Standard Comment
Treasury Issues No Limitation Complies
Agency Issues 25% per Agency/GSE issuer; 20% max agency callable securities; Issued by Federal Agencies or U.S. Government
Sponsored Enterprise obligations.Complies
Supranational "AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; USD denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB.Complies
Municipal Securities
"A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Obligations of the City, State of California,
and any local agency within the State of California; Obligations of any of the other 49 states in addition to California,
including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated
by a state or by a department, board, agency, or authority of any of the other 49 states in addition to California.
Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and
operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies
Asset Backed/ Mortgage Backed/
Collateralized Mortgage Obligation
"AA" rating category or better by a NRSRO; 20% maximum; 5% max per issuer on Asset-Backed or Commercial Mortgage
security; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal
Agency/GSE .
Complies
Negotiable Certificates of Deposit (NCDs)
No rating required if amount of the NCD is insured up to the FDIC limit; If above FDIC insured limit, requires "A-1" short-
term rated or "A" long-term rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by
nationally or state chartered banks, state or federal savings associations, or state or federal credit unions, or by a
federally licensed or state-licensed branch of a foreign bank.
Complies
Certificates of Deposit (CDs)/Time
Deposit (TDs)
30% maximum; 5% max per issuer; Certificates of Deposit, Time Deposit, non-negotiable, and collateralized in
accordance with California Government Code.Complies
Banker’s Acceptances "A-1" short-term rated or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 40% maximum; 5%
max per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" short term rated or better a NRSRO; "A" long-term issuer rating category or better by a NRSRO; 25% maximum; 5%
max per issuer; 270 days max maturity; Issued by corporations organized and operating in the U.S. with assets > $500
million; 10% max outstanding paper of the issuing corporation.
Complies
Money Market Funds
20% maximum; Daily money market funds administered for or by trustees, paying agents and custodian banks
contracted by a City of Cupertino as allowed under California Government Code; Only funds holding U.S. Treasury
obligations, Government agency obligations or repurchase agreements collateralized by U.S. Treasury or Government
agency obligations can be utilized.
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies
City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy.
10
82
Compliance As of September 30, 2023
Category Standard Comment
Repurchase Agreements 1 year max maturity; 102% collateralized; A PSA Master Repurchase Agreement is required between City of Cupertino
and the broke/dealer or financial institution for all repurchase agreements; Not used by investment adviser Complies
Prohibited Securities
Reverse Repurchase Agreement; Common stocks; Long-term (> 5 years maturity) notes and bonds; Special circumstances
arise that necessitate purchase of securities beyond the 5-year limitation. On such occasions, request must be approved
by City Council prior to purchase; Futures/Options; Inverse floaters; Ranges notes, Mortgage-derived, Interest-only strips;
Zero interest accrual securities; Purchasing/selling securities on margin; Foreign currency denominated securities.
Complies
Minimum Budgeted Operating
Expenditures in Short Term Investments
Minimum 6 months of budgeted operating expenditures in short term investments to provide sufficient liquidity for
expected disbursements Complies
Max Per Issuer 5% per issuer, unless otherwise specified in the policy Complies
Maximum maturity 5 years Complies
City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy.
11
83
Portfolio Summary – City of Cupertino #10659 As of September 30, 2023
12
84
Purchase Yield as of 09/30/23 = 2.03%
0.00
0.50
1.00
1.50
2.00
2.50
Pe
r
c
e
n
t
(
%
)
Historical Average Purchase Yield
City of Cupertino
As of September 30, 2023
13
85
SECTION |Section 3 |Portfolio Holdings
14
86
Issue Name Investment Type % Portfolio
Government of United States US Treasury 37.21%
Federal National Mortgage Association Agency 8.82%
Federal Home Loan Mortgage Corp Agency 4.35%
Federal Home Loan Mortgage Corp CMO 3.77%
Inter-American Dev Bank Supranational 3.34%
Federal Home Loan Bank Agency 2.29%
American Express ABS ABS 1.87%
John Deere ABS ABS 1.69%
Royal Bank of Canada Corporate 1.66%
Toyota Motor Corp Corporate 1.60%
JP Morgan Chase & Co Corporate 1.55%
Bank of New York Corporate 1.54%
Bank of America Corp Corporate 1.54%
Hyundai Auto Receivables ABS 1.53%
International Finance Corp Supranational 1.53%
Intl Bank Recon and Development Supranational 1.46%
Toronto Dominion Holdings Corporate 1.43%
Northwestern Mutual Glbl Corporate 1.27%
Paccar Financial Corporate 1.25%
Bank of Montreal Chicago Corporate 1.17%
Salesforce.com Inc Corporate 1.13%
Amazon.com Inc Corporate 1.13%
Metlife Inc Corporate 1.11%
Prudential Financial Inc Corporate 1.11%
Air Products & Chemicals Corporate 1.10%
New York Life Global Funding Corporate 1.06%
United Health Group Inc Corporate 1.06%
Berkshire Hathaway Corporate 0.99%
Guardian Life Global Funding Corporate 0.84%
Honda ABS ABS 0.83%
US Bancorp Corporate 0.81%
Toyota Lease Owner Trust ABS 0.72%
GM Financial Automobile Leasing Trust ABS 0.72%
Caterpillar Inc Corporate 0.71%
GM Financial Securitized Term Auto Trust ABS 0.63%
MasterCard Inc Corporate 0.63%
Mass Mutual Insurance Corporate 0.59%
Charles Schwab Corp/The Corporate 0.57%
Issuers
City of Cupertino – Account #10659
As of September 30, 2023
15
87
Issue Name Investment Type % Portfolio
State of California Municipal Bonds 0.49%
Toyota ABS ABS 0.46%
Northern Trust Corp Corporate 0.43%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.38%
BMW ABS ABS 0.34%
Hyundai Auto Lease Securitization ABS 0.27%
BMW Vehicle Lease Trust ABS 0.21%
Wal-Mart Stores Corporate 0.21%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.17%
Verizon Owner Trust ABS 0.00%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
As of September 30, 2023
16
88
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
68,329.04 09/22/2020
0.38%
68,319.00
68,328.62
99.16
6.01%
67,757.13
9.13
0.05%
(571.49)
NR / AAA
AAA
1.05
0.15
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2
0.390% Due 10/21/2024
316,458.74 08/10/2021
0.39%
316,454.44
316,458.20
99.36
5.86%
314,421.06
37.71
0.21%
(2,037.14)
NR / AAA
AAA
1.06
0.12
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
6,102.55 07/14/2020
0.52%
6,101.62
6,102.47
99.78
5.99%
6,089.18
1.38
0.00%
(13.29)
Aaa / NR
AAA
1.13
0.04
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
80,650.65 09/08/2021
0.34%
80,642.32
80,649.80
99.43
5.99%
80,192.79
4.44
0.05%
(457.01)
Aaa / NR
AAA
1.24
0.10
89236XAC0 Toyota Auto Receivables 2020-D A3
0.350% Due 01/15/2025
38,748.02 10/06/2020
0.36%
38,740.80
38,745.83
99.47
6.23%
38,542.62
6.03
0.03%
(203.21)
NR / AAA
AAA
1.30
0.09
44891WAC3 Hyundai Auto Lease Trust 2022-A A3
1.160% Due 01/15/2025
408,599.02 01/11/2022
1.16%
408,590.00
408,596.85
98.90
5.84%
404,104.84
210.66
0.27%
(4,492.01)
Aaa / AAA
NR
1.30
0.23
92290BAA9 Verizon Owner Trust 2020-B A
0.470% Due 02/20/2025
5,413.17 08/04/2020
0.48%
5,412.03
5,412.82
99.80
4.84%
5,402.16
0.78
0.00%
(10.66)
Aaa / NR
AAA
1.39
0.05
89238LAC4 Toyota Lease Owner Trust 2022-A A3
1.960% Due 02/20/2025
1,100,310.19 02/23/2022
1.98%
1,100,137.00
1,100,256.16
98.72
6.07%
1,086,187.71
658.96
0.72%
(14,068.45)
NR / AAA
AAA
1.39
0.31
36265MAC9 GM Financial Auto Lease Trust 2022-1 A3
1.900% Due 03/20/2025
779,035.85 02/15/2022
1.91%
779,029.15
779,034.13
98.72
6.18%
769,088.34
452.27
0.51%
(9,945.79)
Aaa / NR
AAA
1.47
0.30
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
242,643.65 01/11/2022
1.11%
242,607.39
242,635.63
98.83
6.13%
239,796.23
44.48
0.16%
(2,839.40)
NR / AAA
AAA
1.48
0.23
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
82,104.42 02/17/2021
0.27%
82,102.92
82,104.19
98.22
6.10%
80,642.80
6.16
0.05%
(1,461.39)
Aaa / NR
AAA
1.56
0.30
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
304,955.87 02/02/2021
0.27%
304,899.28
304,947.56
98.27
6.03%
299,692.94
35.24
0.20%
(5,254.62)
Aaa / NR
AAA
1.62
0.30
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3
0.380% Due 09/15/2025
223,739.67 04/20/2021
0.38%
223,716.13
223,734.87
97.97
5.89%
219,199.99
37.79
0.15%
(4,534.88)
NR / AAA
AAA
1.96
0.37
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
394,284.05 11/16/2021
0.89%
394,200.93
394,248.35
96.10
6.44%
378,912.10
96.38
0.25%
(15,336.25)
Aaa / NR
AAA
2.31
0.70
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
428,221.60 07/13/2021
0.52%
428,183.40
428,206.38
96.59
5.88%
413,602.97
98.97
0.28%
(14,603.41)
Aaa / NR
AAA
2.46
0.64
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
371,935.67 11/09/2021
0.71%
371,927.74
371,932.31
96.20
6.20%
357,795.79
117.37
0.24%
(14,136.52)
NR / AAA
AAA
2.54
0.69
43815BAC4 Honda Auto Receivables Trust 2022-1 A3
1.880% Due 05/15/2026
740,000.00 02/15/2022
1.89%
739,888.70
739,944.02
96.48
5.78%
713,930.55
618.31
0.48%
(26,013.47)
Aaa / AAA
NR
2.62
0.91
As of September 30, 2023
17
89
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
1,139,633.54 Various
2.03%
1,110,818.51
1,126,432.12
96.64
5.94%
1,101,352.12
374.81
0.73%
(25,080.00)
NR / AAA
AAA
2.62
0.64
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
530,000.00 05/10/2022
3.23%
529,972.44
529,984.62
97.56
5.95%
517,042.03
283.55
0.34%
(12,942.59)
Aaa / AAA
NR
2.90
0.90
362554AC1 GM Financial Securitized Term 2021-4 A3
0.680% Due 09/16/2026
301,789.22 10/13/2021
0.68%
301,781.53
301,785.93
95.94
6.21%
289,531.75
85.51
0.19%
(12,254.18)
Aaa / AAA
NR
2.96
0.73
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
450,000.00 03/10/2022
2.34%
449,900.46
449,944.35
96.82
6.16%
435,667.95
464.00
0.29%
(14,276.40)
Aaa / NR
AAA
2.96
0.83
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
1,010,000.00 03/09/2022
2.23%
1,009,961.12
1,009,979.59
96.77
5.74%
977,341.64
996.53
0.65%
(32,637.95)
NR / AAA
AAA
3.04
0.92
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
292,304.20 01/11/2022
1.27%
292,278.79
292,291.78
96.63
5.58%
282,455.01
153.46
0.19%
(9,836.77)
NR / AAA
AAA
3.13
0.78
362585AC5 GM Financial Securitized ART 2022-2 A3
3.100% Due 02/16/2027
390,000.00 04/05/2022
3.13%
389,918.49
389,953.39
97.21
5.72%
379,106.52
503.75
0.25%
(10,846.87)
Aaa / AAA
NR
3.38
1.08
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
655,000.00 07/12/2022
3.77%
654,937.45
654,958.43
97.34
5.85%
637,595.34
1,088.76
0.43%
(17,363.09)
Aaa / NR
AAA
3.38
1.28
02589BAA8 American Express Credit Accoun 22-1 A
2.210% Due 03/15/2027
1,545,000.00 03/21/2022
2.69%
1,524,359.77
1,534,926.51
95.18
5.75%
1,470,461.48
1,517.53
0.98%
(64,465.03)
Aaa / NR
AAA
3.46
1.39
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
1,375,000.00 05/17/2022
3.42%
1,374,695.85
1,374,834.35
96.51
5.72%
1,326,969.88
2,071.67
0.89%
(47,864.47)
NR / AAA
AAA
3.63
1.53
47800BAC2 John Deere Owner Trust 2022-C A3
5.090% Due 06/15/2027
1,050,000.00 10/12/2022
5.15%
1,049,918.52
1,049,939.70
98.93
5.85%
1,038,783.90
2,375.33
0.69%
(11,155.80)
Aaa / NR
AAA
3.71
1.51
92348KAV5 Verizon Master Trust 2022-5 A1A
3.720% Due 07/20/2027
570,000.00 08/02/2022
3.75%
569,974.92
569,985.22
99.36
4.97%
566,374.23
647.90
0.38%
(3,610.99)
NR / AAA
AAA
3.81
0.86
TOTAL ABS 14,900,259.12 2.35%
14,849,470.70
14,876,354.18 5.87%
14,498,041.05
12,998.86
9.67%
(378,313.13)
Aaa / AAA
AAA
2.73
0.87
Agency
3137EAFA2 FHLMC Note
0.250% Due 12/04/2023
855,000.00 12/02/2020
0.28%
854,153.55
854,950.53
99.11
5.27%
847,428.12
694.69
0.57%
(7,522.41)
Aaa / AA+
AA+
0.18
0.18
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
1,500,000.00 06/18/2019
1.96%
1,564,890.20
1,509,153.01
98.08
5.68%
1,471,263.00
12,817.70
0.99%
(37,890.01)
Aaa / AA+
NR
0.71
0.68
3135G0V75 FNMA Note
1.750% Due 07/02/2024
1,500,000.00 07/16/2019
1.96%
1,484,895.00
1,497,707.57
97.24
5.53%
1,458,543.00
6,489.58
0.98%
(39,164.57)
Aaa / AA+
AA+
0.76
0.73
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,000,000.00 09/13/2019
1.79%
2,103,380.00
2,019,723.82
97.56
5.54%
1,951,132.00
2,875.00
1.30%
(68,591.82)
Aaa / AA+
NR
0.96
0.92
As of September 30, 2023
18
90
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3135G0W66 FNMA Note
1.625% Due 10/15/2024
1,975,000.00 Various
1.73%
1,965,802.75
1,973,031.96
96.15
5.48%
1,898,909.18
14,798.79
1.28%
(74,122.78)
Aaa / AA+
AA+
1.04
1.00
3135G0X24 FNMA Note
1.625% Due 01/07/2025
1,295,000.00 Various
1.38%
1,309,953.95
1,298,945.00
95.43
5.39%
1,235,850.88
4,910.21
0.83%
(63,094.12)
Aaa / AA+
AA+
1.27
1.22
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
2,365,000.00 02/13/2020
1.52%
2,363,178.95
2,364,501.08
95.05
5.30%
2,247,972.71
4,828.54
1.50%
(116,528.37)
Aaa / AA+
AA+
1.37
1.32
3135G03U5 FNMA Note
0.625% Due 04/22/2025
1,860,000.00 04/22/2020
0.67%
1,856,168.40
1,858,804.73
93.06
5.31%
1,730,997.84
5,134.38
1.16%
(127,806.89)
Aaa / AA+
AA+
1.56
1.51
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
2,500,000.00 Various
0.50%
2,499,227.30
2,499,807.58
92.46
5.15%
2,311,495.00
3,611.11
1.54%
(188,312.58)
Aaa / AA+
AA+
1.72
1.66
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
1,250,000.00 07/21/2020
0.48%
1,243,775.00
1,247,750.95
91.91
5.12%
1,148,878.75
911.46
0.77%
(98,872.20)
Aaa / AA+
AA+
1.81
1.76
3135G05X7 FNMA Note
0.375% Due 08/25/2025
2,500,000.00 Various
0.48%
2,487,983.75
2,495,296.26
91.47
5.14%
2,286,715.00
937.51
1.52%
(208,581.26)
Aaa / AA+
AA+
1.90
1.85
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
2,500,000.00 Various
0.46%
2,489,362.80
2,495,695.38
91.18
5.12%
2,279,402.50
208.33
1.52%
(216,292.88)
Aaa / AA+
AA+
1.98
1.93
3135G06G3 FNMA Note
0.500% Due 11/07/2025
2,500,000.00 Various
0.56%
2,492,700.00
2,496,920.36
90.94
5.10%
2,273,447.50
5,000.00
1.52%
(223,472.86)
Aaa / AA+
AA+
2.11
2.04
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,612,288.23 5.30%
23,142,035.48
63,217.30
15.46%
(1,470,252.75)
Aaa / AA+
AA+
1.43
1.39
CMO
3137BFE98 FHLMC K041 A2
3.171% Due 10/25/2024
1,294,917.17 07/01/2021
0.72%
1,392,946.45
1,325,271.41
97.40
5.77%
1,261,192.35
3,421.82
0.84%
(64,079.06)
Aaa / AAA
AAA
1.07
0.93
3137BLMZ8 FHLMC K049 A2
3.010% Due 07/25/2025
1,000,000.00 07/01/2021
0.87%
1,079,687.50
1,034,996.78
95.82
5.54%
958,229.33
2,508.33
0.64%
(76,767.45)
NR / NR
AAA
1.82
1.61
3137BLW95 FHLMC K050 A2
3.334% Due 08/25/2025
950,000.00 11/16/2021
1.17%
1,018,132.81
983,789.03
96.27
5.50%
914,528.90
2,639.42
0.61%
(69,260.13)
NR / NR
AAA
1.90
1.66
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
440,000.00 03/15/2022
2.21%
453,079.69
447,259.59
96.05
5.51%
422,627.48
1,212.93
0.28%
(24,632.11)
NR / NR
AAA
1.99
1.74
3137BN6G4 FHLMC KO53
2.995% Due 12/25/2025
570,000.00 03/15/2022
2.29%
582,001.17
577,106.64
95.17
5.43%
542,474.70
1,422.63
0.36%
(34,631.94)
NR / NR
AAA
2.24
1.96
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
650,000.00 11/12/2021
1.35%
687,451.17
672,562.26
93.06
5.27%
604,858.15
1,437.04
0.40%
(67,704.11)
NR / NR
AAA
2.90
2.68
As of September 30, 2023
19
91
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3137FBBX3 FHLMC K068 A2
3.244% Due 08/25/2027
1,000,000.00 09/28/2022
4.41%
950,664.06
960,822.28
93.53
5.10%
935,315.00
2,703.33
0.62%
(25,507.28)
Aaa / NR
NR
3.90
3.51
TOTAL CMO 5,904,917.17 1.74%
6,163,962.85
6,001,807.99 5.47%
5,639,225.91
15,345.50
3.77%
(362,582.08)
Aaa / AAA
AAA
2.18
1.94
Corporate
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
1,500,000.00 09/11/2019
2.24%
1,527,255.00
1,504,008.09
97.71
6.03%
1,465,681.50
12,035.42
0.98%
(38,326.59)
A1 / A
AA-
0.70
0.67
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
600,000.00 02/09/2022
1.89%
582,216.00
594,294.55
96.00
5.98%
576,015.00
854.17
0.38%
(18,279.55)
A2 / A-
AA-
0.78
0.75
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
1,760,000.00 Various
0.87%
1,748,937.40
1,756,672.53
96.11
5.72%
1,691,558.88
2,322.23
1.13%
(65,113.65)
A2 / A+
NR
0.79
0.77
78013XZU5 Royal Bank of Canada Note
2.550% Due 07/16/2024
1,500,000.00 Various
1.99%
1,533,359.18
1,506,415.80
97.36
6.00%
1,460,368.50
7,968.76
0.98%
(46,047.30)
A1 / A
AA-
0.79
0.77
91159HHX1 US Bancorp Callable Note Cont 6/28/2024
2.400% Due 07/30/2024
1,250,000.00 10/10/2019
2.07%
1,268,262.50
1,252,880.76
97.14
5.97%
1,214,192.50
5,083.33
0.81%
(38,688.26)
A3 / A
A
0.83
0.80
009158AV8 Air Products & Chemicals Callable Note Cont 4/30/2024
3.350% Due 07/31/2024
1,675,000.00 08/07/2019
2.07%
1,771,212.00
1,686,817.46
98.18
5.61%
1,644,520.03
9,507.95
1.10%
(42,297.43)
A2 / A
NR
0.84
0.80
69371RR40 Paccar Financial Corp Note
0.500% Due 08/09/2024
680,000.00 08/03/2021
0.52%
679,632.80
679,895.13
95.71
5.69%
650,811.00
491.11
0.43%
(29,084.13)
A1 / A+
NR
0.86
0.83
69371RQ25 Paccar Financial Corp Note
2.150% Due 08/15/2024
370,000.00 08/08/2019
2.20%
369,182.30
369,857.23
96.97
5.74%
358,797.88
1,016.47
0.24%
(11,059.35)
A1 / A+
NR
0.88
0.85
14913Q3B3 Caterpillar Finl Service Note
2.150% Due 11/08/2024
1,100,000.00 01/28/2020
1.92%
1,111,517.00
1,102,667.93
96.30
5.65%
1,059,282.40
9,394.31
0.71%
(43,385.53)
A2 / A
A+
1.11
1.06
74153WCQ0 Pricoa Global Funding Note
1.150% Due 12/06/2024
885,000.00 12/01/2021
1.19%
884,088.45
884,640.05
94.62
5.92%
837,409.13
3,251.15
0.56%
(47,230.92)
Aa3 / AA-
AA-
1.19
1.14
89114TZL9 Toronto-Dominion Bank Note
1.450% Due 01/10/2025
700,000.00 03/15/2022
2.79%
674,737.00
688,545.80
94.67
5.84%
662,675.30
2,283.75
0.44%
(25,870.50)
A1 / A
NR
1.28
1.23
89236TJT3 Toyota Motor Credit Corp Note
1.450% Due 01/13/2025
1,215,000.00 01/10/2022
1.50%
1,213,371.90
1,214,301.82
94.95
5.57%
1,153,608.48
3,817.13
0.77%
(60,693.34)
A1 / A+
A+
1.29
1.24
64952WEK5 New York Life Global Note
1.450% Due 01/14/2025
1,680,000.00 01/11/2022
1.49%
1,678,185.60
1,679,220.27
94.76
5.72%
1,591,946.16
5,210.33
1.06%
(87,274.11)
Aaa / AA+
AAA
1.29
1.24
69371RR73 Paccar Financial Corp Note
2.850% Due 04/07/2025
885,000.00 03/31/2022
2.86%
884,769.90
884,883.69
96.01
5.62%
849,727.44
12,190.88
0.57%
(35,156.25)
A1 / A+
NR
1.52
1.44
As of September 30, 2023
20
92
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
78016EZ59 Royal Bank of Canada Note
3.375% Due 04/14/2025
1,050,000.00 04/07/2022
3.39%
1,049,611.50
1,049,801.14
96.48
5.80%
1,013,028.45
16,439.06
0.69%
(36,772.69)
A1 / A
AA-
1.54
1.45
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
1,370,000.00 04/19/2022
3.35%
1,369,808.20
1,369,899.81
96.42
5.77%
1,320,974.55
19,887.83
0.89%
(48,925.26)
A1 / A
AA-
1.57
1.48
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
1,240,000.00 07/23/2021
0.85%
1,285,656.80
1,259,206.43
93.85
5.97%
1,163,738.76
9,558.33
0.78%
(95,467.67)
A2 / A-
AA-
1.59
1.51
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
1,370,000.00 05/24/2021
0.78%
1,371,773.90
1,370,394.91
96.27
6.23%
1,318,834.62
3,762.93
0.88%
(51,560.29)
A1 / A-
AA-
1.67
1.59
46647PCK0 JP Morgan Chase & Co Callable Note Cont 6/23/2024
0.969% Due 06/23/2025
655,000.00 Various
0.95%
655,406.85
655,098.83
95.97
6.31%
628,592.37
1,727.78
0.42%
(26,506.46)
A1 / A-
AA-
1.73
1.64
66815L2J7 Northwestern Mutual Glbl Note
4.000% Due 07/01/2025
1,170,000.00 06/27/2022
4.01%
1,169,602.20
1,169,768.07
97.09
5.76%
1,135,984.59
11,700.00
0.76%
(33,783.48)
Aaa / AA+
AAA
1.75
1.65
74153WCM9 Pricoa Global Funding Note
0.800% Due 09/01/2025
904,000.00 04/06/2022
3.26%
832,972.72
863,911.33
91.11
5.76%
823,603.66
602.67
0.55%
(40,307.67)
Aa3 / AA-
AA-
1.92
1.85
06406HCQ0 Bank of New York Callable Note Cont 10/18/2025
3.950% Due 11/18/2025
1,000,000.00 04/05/2022
3.20%
1,024,910.00
1,014,443.94
96.28
5.83%
962,794.00
14,593.06
0.65%
(51,649.94)
A1 / A
AA-
2.14
1.98
40139LBC6 Guardian Life Glob Fun Note
0.875% Due 12/10/2025
1,400,000.00 Various
1.12%
1,385,860.00
1,392,584.06
89.76
5.92%
1,256,670.80
3,777.08
0.84%
(135,913.26)
Aa1 / AA+
NR
2.20
2.11
66815L2A6 Northwestern Mutual Glbl Note
0.800% Due 01/14/2026
850,000.00 12/06/2021
1.47%
827,449.50
837,415.07
89.65
5.69%
762,020.75
1,454.44
0.51%
(75,394.32)
Aaa / AA+
AAA
2.29
2.20
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
2.015% Due 02/13/2026
600,000.00 05/24/2021
1.05%
620,988.00
607,737.30
94.09
6.59%
564,559.80
1,612.00
0.38%
(43,177.50)
A1 / A-
AA-
2.38
1.31
46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025
2.083% Due 04/22/2026
401,000.00 05/20/2021
1.11%
415,969.33
406,960.50
93.86
6.27%
376,380.61
3,689.17
0.25%
(30,579.89)
A1 / A-
AA-
2.56
1.48
6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025
2.188% Due 04/28/2026
650,000.00 05/23/2022
4.93%
615,699.50
627,515.71
93.94
6.28%
610,605.45
6,044.35
0.41%
(16,910.26)
A1 / A-
A+
2.58
1.50
023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026
1.000% Due 05/12/2026
1,875,000.00 05/10/2021
1.09%
1,866,900.00
1,870,768.13
89.91
5.17%
1,685,790.00
7,239.58
1.13%
(184,978.13)
A1 / AA
AA-
2.62
2.51
As of September 30, 2023
21
93
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
1,035,000.00 Various
1.37%
1,025,051.35
1,029,076.42
89.96
5.30%
931,046.67
4,496.50
0.62%
(98,029.75)
A2 / A+
A
2.62
2.51
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
1,385,000.00 06/15/2021
1.13%
1,384,390.60
1,384,669.27
89.30
5.41%
1,236,777.30
4,457.97
0.83%
(147,891.97)
A1 / A+
A+
2.72
2.60
06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025
1.319% Due 06/19/2026
700,000.00 07/16/2021
1.27%
701,274.00
700,558.60
91.71
6.49%
641,951.80
2,616.02
0.43%
(58,606.80)
A1 / A-
AA-
2.72
1.65
57629WDE7 Mass Mutual Global funding Note
1.200% Due 07/16/2026
1,000,000.00 08/19/2021
1.15%
1,002,230.00
1,001,270.90
88.51
5.70%
885,126.00
2,500.00
0.59%
(116,144.90)
Aa3 / AA+
AA+
2.79
2.67
58989V2D5 Met Tower Global Funding Note
1.250% Due 09/14/2026
770,000.00 09/07/2021
1.27%
769,291.60
769,581.40
88.10
5.68%
678,407.73
454.51
0.45%
(91,173.67)
Aa3 / AA-
AA-
2.96
2.83
931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
350,000.00 09/08/2021
1.09%
349,338.50
349,608.03
89.16
5.03%
312,071.55
142.92
0.21%
(37,536.48)
Aa2 / AA
AA
2.97
2.85
59217GER6 Metlife Note
1.875% Due 01/11/2027
1,115,000.00 01/03/2022
1.90%
1,113,728.90
1,114,166.06
88.64
5.72%
988,342.69
4,645.83
0.66%
(125,823.37)
Aa3 / AA-
AA-
3.28
3.09
808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027
2.450% Due 03/03/2027
960,000.00 03/01/2022
2.46%
959,729.90
959,813.66
89.07
6.03%
855,113.28
1,829.34
0.57%
(104,700.38)
A2 / A-
A
3.42
3.19
084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027
2.300% Due 03/15/2027
1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,788.10
91.73
4.93%
1,481,494.41
1,650.89
0.99%
(133,293.69)
Aa2 / AA
A+
3.46
3.25
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026
3.559% Due 04/23/2027
1,150,000.00 Various
4.94%
1,114,222.54
1,122,961.76
93.82
6.20%
1,078,903.55
17,963.07
0.73%
(44,058.21)
A1 / A-
AA-
3.56
2.36
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
670,000.00 05/05/2022
4.04%
668,914.60
669,217.16
94.59
5.68%
633,772.43
10,496.67
0.43%
(35,444.73)
A2 / A+
A+
3.61
3.24
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027
3.700% Due 05/15/2027
675,000.00 05/17/2022
3.69%
675,316.70
675,229.92
94.79
5.30%
639,814.28
9,435.00
0.43%
(35,415.64)
A2 / A+
A
3.62
3.28
As of September 30, 2023
22
94
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
57636QAW4 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due 03/09/2028
945,000.00 03/06/2023
4.90%
944,083.35
944,186.71
99.25
5.07%
937,892.66
2,815.31
0.63%
(6,294.05)
Aa3 / A+
NR
4.44
3.93
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,635,734.33 5.75%
40,140,886.96
241,019.30
26.90%
(2,494,847.37)
A1 / A+
AA-
1.97
1.79
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund
252,748.53 Various
4.91%
252,748.53
252,748.53
1.00
4.91%
252,748.53
0.00
0.17%
0.00
Aaa / AAA
NR
0.00
0.00
TOTAL Money Market Fund 252,748.53 4.91%
252,748.53
252,748.53 4.91%
252,748.53
0.00
0.17%
0.00
Aaa / AAA
NR
0.00
0.00
Municipal Bonds
13063DRK6 California State Taxable GO
2.400% Due 10/01/2024
755,000.00 10/16/2019
1.91%
772,342.35
758,518.46
96.92
5.60%
731,739.21
9,060.00
0.49%
(26,779.25)
Aa2 / AA-
AA
1.01
0.96
TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
758,518.46 5.60%
731,739.21
9,060.00
0.49%
(26,779.25)
Aa2 / AA-
AA
1.01
0.96
Supranational
4581X0DP0 Inter-American Dev Bank Note
0.250% Due 11/15/2023
2,800,000.00 07/01/2021
0.37%
2,792,300.00
2,799,598.03
99.38
5.23%
2,782,662.40
2,644.44
1.86%
(16,935.63)
Aaa / AAA
NR
0.13
0.12
45950KCT5 International Finance Corp Note
0.375% Due 07/16/2025
2,500,000.00 05/27/2021
0.66%
2,471,150.00
2,487,471.51
91.82
5.21%
2,295,397.50
1,953.13
1.53%
(192,074.01)
Aaa / AAA
NR
1.79
1.74
459058JL8 Intl. Bank Recon & Development Note
0.500% Due 10/28/2025
2,400,000.00 Various
0.60%
2,388,859.25
2,395,081.22
91.01
5.12%
2,184,132.01
5,100.01
1.46%
(210,949.21)
Aaa / AAA
AAA
2.08
2.01
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
2,460,000.00 04/13/2021
0.97%
2,448,733.20
2,454,249.37
90.23
4.99%
2,219,724.42
9,626.46
1.49%
(234,524.95)
Aaa / AAA
AAA
2.56
2.46
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,136,400.13 5.14%
9,481,916.33
19,324.04
6.33%
(654,483.80)
Aaa / AAA
AAA
1.55
1.50
US Treasury
912796YT0 US Treasury Bill
4.888% Due 11/02/2023
1,500,000.00 05/08/2023
5.08%
1,463,954.69
1,493,483.33
99.57
5.08%
1,493,483.33
0.00
1.00%
0.00
P-1 / A-1+
F-1+
0.09
0.09
912796ZN2 US Treasury Bill
5.228% Due 12/28/2023
1,500,000.00 06/28/2023
5.44%
1,460,358.13
1,480,832.50
98.72
5.44%
1,480,832.50
0.00
0.99%
0.00
P-1 / A-1+
F-1+
0.24
0.24
As of September 30, 2023
23
95
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912828X70 US Treasury Note
2.000% Due 04/30/2024
1,700,000.00 06/10/2019
1.92%
1,705,976.56
1,700,709.82
98.03
5.47%
1,666,532.10
14,228.26
1.12%
(34,177.72)
Aaa / AA+
AA+
0.58
0.56
912828XX3 US Treasury Note
2.000% Due 06/30/2024
2,000,000.00 Various
1.80%
2,018,574.22
2,002,872.22
97.46
5.50%
1,949,140.00
10,108.69
1.31%
(53,732.22)
Aaa / AA+
AA+
0.75
0.73
912797GB7 US Treasury Bill
5.119% Due 07/11/2024
1,000,000.00 07/27/2023
5.39%
950,378.99
959,620.73
95.96
5.39%
959,620.73
0.00
0.64%
0.00
P-1 / A-1+
F-1+
0.78
0.76
912797GK7 US Treasury Bill
5.119% Due 08/08/2024
1,000,000.00 08/30/2023
5.39%
951,232.07
955,639.67
95.56
5.39%
955,639.67
0.00
0.64%
0.00
P-1 / A-1+
F-1+
0.86
0.84
912828D56 US Treasury Note
2.375% Due 08/15/2024
1,700,000.00 09/18/2019
1.71%
1,753,191.41
1,709,468.78
97.36
5.51%
1,655,043.50
5,156.59
1.11%
(54,425.28)
Aaa / AA+
AA+
0.88
0.85
912797GL5 US Treasury Bill
5.162% Due 09/05/2024
1,000,000.00 09/25/2023
5.44%
950,526.04
951,243.05
95.12
5.44%
951,243.05
0.00
0.63%
0.00
P-1 / A-1+
F-1+
0.93
0.91
912828YY0 US Treasury Note
1.750% Due 12/31/2024
2,100,000.00 03/15/2022
1.97%
2,087,203.13
2,094,272.12
95.68
5.37%
2,009,273.70
9,287.36
1.34%
(84,998.42)
Aaa / AA+
AA+
1.25
1.20
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,500,000.00 03/18/2020
0.81%
1,523,144.53
1,506,609.06
94.39
5.28%
1,415,859.00
1,437.16
0.94%
(90,750.06)
Aaa / AA+
AA+
1.42
1.37
91282CED9 US Treasury Note
1.750% Due 03/15/2025
3,100,000.00 Various
2.23%
3,057,617.20
3,079,125.63
95.09
5.29%
2,947,907.80
2,384.61
1.97%
(131,217.83)
Aaa / AA+
AA+
1.46
1.41
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
2,500,000.00 03/21/2022
2.24%
2,360,839.85
2,429,255.15
92.71
5.23%
2,317,675.00
3,923.23
1.55%
(111,580.15)
Aaa / AA+
AA+
1.58
1.54
91282CAB7 US Treasury Note
0.250% Due 07/31/2025
1,500,000.00 03/12/2021
0.72%
1,469,765.63
1,487,350.35
91.56
5.13%
1,373,437.50
631.79
0.92%
(113,912.85)
Aaa / AA+
AA+
1.84
1.78
91282CAM3 US Treasury Note
0.250% Due 09/30/2025
2,400,000.00 Various
0.56%
2,366,140.63
2,385,206.84
91.00
5.04%
2,184,000.00
16.39
1.46%
(201,206.84)
Aaa / AA+
AA+
2.00
1.95
91282CAT8 US Treasury Note
0.250% Due 10/31/2025
2,450,000.00 Various
0.49%
2,422,492.19
2,438,000.90
90.68
5.02%
2,221,557.10
2,563.18
1.48%
(216,443.80)
Aaa / AA+
AA+
2.09
2.03
91282CAZ4 US Treasury Note
0.375% Due 11/30/2025
2,250,000.00 03/26/2021
0.77%
2,209,658.20
2,231,306.17
90.61
5.00%
2,038,623.75
2,835.55
1.36%
(192,682.42)
Aaa / AA+
AA+
2.17
2.10
91282CBH3 US Treasury Note
0.375% Due 01/31/2026
2,500,000.00 05/27/2021
0.75%
2,456,445.31
2,478,260.88
90.02
4.96%
2,250,487.50
1,579.48
1.50%
(227,773.38)
Aaa / AA+
AA+
2.34
2.27
91282CBW0 US Treasury Note
0.750% Due 04/30/2026
2,500,000.00 05/27/2021
0.80%
2,493,652.34
2,496,674.36
90.08
4.88%
2,252,050.00
7,846.47
1.51%
(244,624.36)
Aaa / AA+
AA+
2.58
2.49
91282CCZ2 US Treasury Note
0.875% Due 09/30/2026
1,400,000.00 10/18/2021
1.19%
1,379,054.68
1,387,307.62
89.23
4.77%
1,249,281.60
33.47
0.83%
(138,026.02)
Aaa / AA+
AA+
3.00
2.90
91282CDG3 US Treasury Note
1.125% Due 10/31/2026
1,400,000.00 11/15/2021
1.25%
1,391,468.75
1,394,689.78
89.60
4.79%
1,254,422.40
6,591.03
0.84%
(140,267.38)
Aaa / AA+
AA+
3.09
2.95
As of September 30, 2023
24
96
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
3,250,000.00 Various
3.18%
3,260,312.50
3,257,528.92
95.01
4.72%
3,087,880.25
26,693.27
2.08%
(169,648.67)
Aaa / AA+
AA+
3.75
3.44
91282CFB2 US Treasury Note
2.750% Due 07/31/2027
400,000.00 08/22/2022
3.12%
393,218.75
394,738.23
93.15
4.72%
372,609.20
1,853.26
0.25%
(22,129.03)
Aaa / AA+
AA+
3.84
3.56
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
4,500,000.00 Various
3.28%
4,468,902.34
4,475,516.81
94.38
4.71%
4,247,050.50
11,976.30
2.84%
(228,466.31)
Aaa / AA+
AA+
3.92
3.62
91282CFM8 US Treasury Note
4.125% Due 09/30/2027
3,450,000.00 Various
4.31%
3,421,152.34
3,426,558.79
97.92
4.70%
3,378,171.00
388.83
2.25%
(48,387.79)
Aaa / AA+
AA+
4.00
3.64
91282CFZ9 US Treasury Note
3.875% Due 11/30/2027
850,000.00 12/05/2022
3.81%
852,656.25
852,219.87
96.94
4.69%
823,968.75
11,069.16
0.56%
(28,251.12)
Aaa / AA+
AA+
4.17
3.74
91282CGC9 US Treasury Note
3.875% Due 12/31/2027
2,750,000.00 Various
3.67%
2,775,107.42
2,771,672.32
96.92
4.68%
2,665,245.00
26,930.20
1.79%
(106,427.32)
Aaa / AA+
AA+
4.25
3.83
91282CGH8 US Treasury Note
3.500% Due 01/31/2028
3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,963,367.82
95.43
4.67%
2,863,008.00
17,690.22
1.92%
(100,359.82)
Aaa / AA+
AA+
4.34
3.94
91282CGP0 US Treasury Note
4.000% Due 02/29/2028
3,700,000.00 Various
4.00%
3,699,113.28
3,699,334.68
97.41
4.65%
3,604,321.70
12,604.40
2.41%
(95,012.98)
Aaa / AA+
AA+
4.42
3.98
TOTAL US Treasury 58,900,000.00 2.59%
58,300,067.12
58,502,866.40 5.00%
55,668,364.63
177,828.90
37.21%
(2,834,501.77)
Aaa / AA+
AA+
2.52
2.35
TOTAL PORTFOLIO 158,177,924.82 2.03%
157,896,706.37
157,776,718.25 5.36%
149,554,958.10
538,793.90
100.00%
(8,221,760.15)
Aa1 / AA
AA+
2.14
1.83
TOTAL MARKET VALUE PLUS ACCRUALS 150,093,752.00
As of September 30, 2023
25
97
SECTION |Section 4 |Transactions
26
98
Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/28/2023 912797GB7 1,000,000.00 US Treasury Bill
5.119% Due: 07/11/2024
95.038 5.39%950,378.99 0.00 950,378.99 0.00
Purchase 08/31/2023 912797GK7 1,000,000.00 US Treasury Bill
5.119% Due: 08/08/2024
95.123 5.39%951,232.07 0.00 951,232.07 0.00
Purchase 09/26/2023 912797GL5 1,000,000.00 US Treasury Bill
5.162% Due: 09/05/2024
95.053 5.44%950,526.04 0.00 950,526.04 0.00
Subtotal 3,000,000.00 2,852,137.10 0.00 2,852,137.10 0.00
TOTAL ACQUISITIONS 3,000,000.00 2,852,137.10 0.00 2,852,137.10 0.00
June 30, 2023 through September 30, 2023
As of September 30, 2023
27
99
Important Disclosures
2023 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.
Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does
not have any authority to withdraw or deposit funds from/to the custodian account.
As of September 30, 2023
28
100
Benchmark Disclosures
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.
As of September 30, 2023
29
101
INVESTMENT AND INSURANCE PRODUCTS ARE:
·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY
·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE
·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED
PCS - SAN FRANCISCO CA
510 N VALLEY MILLS DRIVE, SUITE 400
WACO, TX 76710-6075
CITY OF CUPERTINO -CHANDLER ASSET MANAGEMENT
ACCOUNT NUMBER
MONTHLY STATEMENT
SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023
ACCOUNT MANAGER: MICHAEL J WADE
TELEPHONE NUMBER: 515-878-6110
PFGEDD INVESTMENT CONTACT: IMR/DOE SLANGER
TELEPHONE NUMBER:
ADMINISTRATOR: BELINDA CONWAY
TELEPHONE NUMBER: 254-265-6137
27323 SE
102
Custody and trust services are provided by Principal Bank
®, Member FDIC, and/or Principal Trust Company
®. These services are provided under the trade
name Principal
®Custody Solutions. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company. Principal Bank and
Principal Trust Company are members of the Principal Financial Group
®, Des Moines, IA 50392.
ASSET VALUATION PRACTICES
VALUES REFLECTED FOR PUBLICLY TRADED ASSETS ARE OBTAINED FROM UNAFFILIATED SOURCES. IN SITUATIONS WHERE AN ASSET VALUE CANNOT BE
PROVIDED BY OUR UNAFFILIATED PRICING SOURCES, SUCH AS BUT NOT LIMITED TO NON-PUBLICLY TRADED ASSETS, THE CUSTOMER OR THEIR DESIGNATED
REPRESENTATIVE MUST PROVIDE THE UPDATED VALUE. IF PRINCIPAL CUSTODY SOLUTIONS DOES NOT RECEIVE AN UPDATED VALUE, OR IS UNABLE TO USE
THE VALUE PROVIDED, THE LAST REPORTED VALUE WILL CONTINUE TO BE REPORTED. VALUES OBTAINED FROM THE CUSTOMER OR THEIR DESIGNATED
REPRESENTATIVE SHOULD NOT BE CONSIDERED TO BE CERTIFIED BY PRINCIPAL BANK/PRINCIPAL TRUST COMPANY, AS APPLICABLE.
SPECIAL INVESTMENTS
"SPECIAL INVESTMENTS" ARE ASSETS NOT HELD IN CUSTODY BY PRINCIPAL BANK/PRINCIPAL TRUST COMPANY BUT WHOSE VALUE MAY BE SHOWN ON
ACCOUNT STATEMENTS. EXAMPLES OF SPECIAL INVESTMENTS INCLUDE, BUT ARE NOT LIMITED TO, COMMON OR COLLECTIVE FUNDS NOT ADMINISTERED BY
PRINCIPAL BANK/PRINCIPAL TRUST COMPANY (OR THEIR AFFILIATES), HEDGE FUNDS, LIMITED PARTNERSHIPS, AND OTHER UNREGISTERED SECURITIES.
AT THE DIRECTION OF AND AS A MATTER OF CONVENIENCE TO ITS CLIENTS, PRINCIPAL BANK/PRINCIPAL TRUST COMPANY MAY BE REPORT SPECIAL
INVESTMENTS AS A RECORDKEEPING ITEM ON ACCOUNT STATEMENTS, AT NOMINAL VALUE OR SUCH OTHER VALUE PROVIDED BY CLIENTS/EXTERNAL SOURCES.
NEITHER PRINCIPAL BANK NOR PRINCIPAL TRUST COMPANY IS RESPONSIBLE FOR THE ACCURACY OF INFORMATION PROVIDED BY EXTERNAL SOURCES, AND
DOES NOT CERTIFY THAT INFORMATION PROVIDED BY THESE EXTERNAL SOURCES IS TRUE OR CORRECT FOR THE SPECIAL INVESTMENTS REFLECTED IN YOUR
ACCOUNT.
TRADE CONFIRMS
PURSUANT TO FEDERAL REGULATION, MONTHLY OR QUARTERLY ACCOUNT STATEMENTS THAT INCLUDE INVESTMENT TRANSACTION DETAILS MAY BE PROVIDED
IN LIEU OF SEPARATE TRADE CONFIRMATIONS. SEPARATE TRADE CONFIRMS MAY BE OBTAINED AT NO ADDITIONAL COST UPON WRITTEN REQUEST TO THE
ACCOUNT MANAGER.
UNCLAIMED PROPERTY DESIGNATED REPRESENTATIVE NOTIFICATION
YOUR PROPERTY MAY BE TRANSFERRED TO THE APPROPRIATE STATE IF NO ACTIVITY OCCURS IN THE ACCOUNT WITHIN THE TIME PERIOD SPECIFIED BY
STATE LAW. IF YOUR STATE OF RESIDENCE ALLOWS, YOU MAY DESIGNATE A REPRESENTATIVE FOR THE PURPOSE OF RECEIVING NOTICE OF ACCOUNT
INACTIVITY BY PROVIDING THE NAME AND MAILING OR EMAIL ADDRESS OF A REPRESENTATIVE. THE DESIGNATED REPRESENTATIVE DOES NOT HAVE ANY
RIGHTS TO YOUR ACCOUNT. PLEASE REFER TO YOUR STATE'S UNCLAIMED PROPERTY WEBSITE FOR MORE INFORMATION AND INSTRUCTIONS ON HOW TO
DESIGNATE A REPRESENTATIVE FOR NOTICE.
103
TABLE OF CONTENTS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
PAGE
REPORT NAME NUMBER
ASSET SUMMARY .................................................................................. 1
STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2
CASH SUMMARY ................................................................................... 20
STATEMENT OF TRANSACTIONS ...................................................................... 21
104
PAGE 1
ASSET SUMMARY CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
ASSET SUMMARY
% TOTAL UNREALIZED ESTIMATED CURRENT ACCRUED
INVESTMENT CATEGORY COST VALUE MARKET VALUE MARKET GAIN/LOSS ANNUAL INCOME YIELD INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH 0.00 0.00 0.00
CASH EQUIVALENTS 5,948,917.20 6,011,622.28 4.02 62,705.08 317,415 5.28 1,632.09
BONDS AND NOTES 151,867,507.92 143,461,507.84 95.98 8,406,000.08- 2,831,122 1.97 619,174.79
TOTAL INVESTMENTS 157,816,425.12 149,473,130.12 100.00 8,343,295.00- 3,148,536 2.11 620,806.88
TOTAL ACCRUALS 620,806.88 620,806.88
=====================================================================================================================================
TOTAL ACCRUALS AND INVESTMENTS 158,437,232.00 150,093,937.00 8,343,295.00- 3,148,536 2.11 620,806.88
105
PAGE 2
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH EQUIVALENTS
122,463.91 ALLSPRING 100% TREASURY 122,463.91 122,463.91 0.08 0.00 1,515.01
MONEY MARKET FUND - #008 1.0000 1.0000
50,003.37 PRINCIPAL PUBLIC DEPOSIT SWEEP 50,003.37 50,003.37 0.03 0.00 117.08
PROGRAM 1.0000 1.0000
1,500,000 UNITED STATES TREASURY BILLS 1,463,954.69 1,493,175.00 1.00 29,220.31 0.00
DTD 11/03/2022 DUE 11/02/2023 97.5970 99.5450
CUSIP 912796YT0
1,500,000 UNITED STATES TREASURY BILLS 1,460,358.13 1,480,710.00 0.99 20,351.87 0.00
DTD 12/29/2022 DUE 12/28/2023 97.3572 98.7140
CUSIP 912796ZN2
1,000,000 UNITED STATES TREASURY BILLS 950,378.99 959,050.00 0.64 8,671.01 0.00
DTD 07/13/2023 DUE 07/11/2024 95.0379 95.9050
CUSIP 912797GB7
1,000,000 UNITED STATES TREASURY BILLS 951,232.07 955,060.00 0.64 3,827.93 0.00
DTD 08/10/2023 DUE 08/08/2024 95.1232 95.5060
CUSIP 912797GK7
1,000,000 UNITED STATES TREASURY BILLS 950,526.04 951,160.00 0.64 633.96 0.00
DTD 09/07/2023 DUE 09/05/2024 95.0526 95.1160
CUSIP 912797GL5
TOTAL CASH EQUIVALENTS 5,948,917.20 6,011,622.28 4.02 62,705.08 1,632.09
BOND & NOTES
1,675,000 AIR PRODUCTS & CHEMICALS 1,771,212.00 1,644,515.00 1.10 126,697.00- 9,507.95
DTD 07/31/14 3.350 07/31/2024 105.7440 98.1800
MOODY'S RATING A2
CUSIP 009158AV8
106
PAGE 3
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,875,000 AMAZON.COM INC 1,866,900.00 1,685,793.75 1.13 181,106.25- 7,239.58
DTD 05/12/21 1.000 05/12/2026 99.5680 89.9090
MOODY'S RATING A1
CUSIP 023135BX3
1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,326,971.25 0.89 47,724.60- 2,071.67
ASSET BCKD SEC SER 2022-2 CL A 99.9779 96.5070
DTD 05/24/2022 3.390% 05/17/2027
NON CALLABLE
CUSIP 02582JJT8
1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,470,453.75 0.98 53,906.02- 1,517.53
ASSET BCKD SEC SER 2022-1 CL A 98.6641 95.1750
DTD 03/18/2022 2.210% 03/15/2027
NON CALLABLE
MOODY'S RATING AAA
CUSIP 02589BAA8
1,150,000 BANK OF AMERICA CORP 1,114,222.54 1,078,907.00 0.72 35,315.54- 17,963.06
MED TERM NOTE 96.8889 93.8180
DTD 04/23/19 04/23/2027
MOODY'S RATING A1
CUSIP 06051GHT9
600,000 BANK OF AMERICA CORP 620,988.00 564,558.00 0.38 56,430.00- 1,612.00
MED TERM NOTE 103.4980 94.0930
DTD 02/13/20 02/13/2026
MOODY'S RATING A1
CUSIP 06051GHY8
700,000 BANK OF AMERICA CORP 701,274.00 641,949.00 0.43 59,325.00- 2,616.02
MED TERM NOTE 100.1820 91.7070
DTD 06/19/20 06/19/2026
MOODY'S RATING A1
CUSIP 06051GJD2
600,000 BANK OF MONTREAL 582,216.00 576,018.00 0.39 6,198.00-854.17
MED TERM NOTE 97.0360 96.0030
DTD 07/09/21 0.625 07/09/2024
MOODY'S RATING A2
CUSIP 06367TQW3
107
PAGE 4
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,240,000 BANK OF MONTREAL 1,285,656.80 1,163,740.00 0.78 121,916.80- 9,558.33
MED TERM NOTE 103.6820 93.8500
DTD 04/27/20 1.850 05/01/2025
MOODY'S RATING A2
CUSIP 06367WB85
1,000,000 BANK OF NEW YORK MELLON 1,024,910.00 962,790.00 0.64 62,120.00- 14,593.06
MED TERM NOTE 102.4910 96.2790
DTD 11/18/13 3.950 11/18/2025
MOODY'S RATING A1
CUSIP 06406HCQ0
1,370,000 BANK OF NY MELLON CORP 1,369,808.20 1,320,981.40 0.88 48,826.80- 19,887.83
DTD 04/26/2022 3.350% 04/25/2025 99.9860 96.4220
CALLABLE
MOODY'S RATING A1
CUSIP 06406RBC0
1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,481,487.95 0.99 133,205.20- 1,650.89
DTD 03/15/2022 2.300% 03/15/2027 99.9810 91.7330
CALLABLE
MOODY'S RATING AA2
CUSIP 084664CZ2
242,643.65 BMW VEHICLE LEASE TRUST 242,607.39 239,797.44 0.16 2,809.95-44.48
SER 2022-1 CL A3 *0 DAY DELAY*99.9851 98.8270
DTD 01/19/22 1.100 03/25/2025
CUSIP 05601XAC3
80,650.65 BMW VEHICLE LEASE TRUST 80,642.32 80,192.55 0.05 449.77-3.70
SER 2021-2 CL A3 *0 DAY DELAY*99.9897 99.4320
DTD 09/15/21 0.330 12/26/2024
MOODY'S RATING AAA
CUSIP 09690AAC7
530,000 BMW VEHICLE OWNER TRUST 529,972.44 517,041.50 0.35 12,930.94-283.55
ASSET BCKD SEC SER 2022-A CL A3 99.9948 97.5550
DTD 05/18/2022 3.210% 08/25/2026
CALLABLE
MOODY'S RATING AAA
CUSIP 05602RAD3
108
PAGE 5
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
755,000 CALIFORNIA ST 772,342.35 731,738.45 0.49 40,603.90- 9,060.00
TXBL-REF 102.2970 96.9190
DTD 10/24/19 2.400 10/01/2024
MOODY'S RATING AA2
CUSIP 13063DRK6
1,100,000 CATERPILLAR FINL SERVICE 1,111,517.00 1,059,278.00 0.71 52,239.00- 9,394.31
MED TERM NOTE 101.0470 96.2980
DTD 11/08/19 2.150 11/08/2024
MOODY'S RATING A2
CUSIP 14913Q3B3
960,000 CHARLES SCHWAB CORP 959,729.90 855,110.40 0.57 104,619.50- 1,829.33
DTD 03/03/2022 2.450% 03/03/2027 99.9719 89.0740
CALLABLE
MOODY'S RATING A2
CUSIP 808513BY0
1,500,000 FED HOME LN BK 1,564,890.20 1,471,260.00 0.98 93,630.20- 12,817.71
DTD 05/08/14 2.875 06/14/2024 104.3260 98.0840
MOODY'S RATING AAA
CUSIP 3130A1XJ2
2,000,000 FED HOME LN BK 2,103,380.00 1,951,140.00 1.31 152,240.00- 2,875.00
DTD 08/15/14 2.875 09/13/2024 105.1690 97.5570
MOODY'S RATING AAA
CUSIP 3130A2UW4
1,294,917.17 FED HOME LN MTG CORP 1,392,946.45 1,261,197.53 0.84 131,748.92- 3,421.82
SER KO41 CL A2 *24 DAY DELAY*107.5703 97.3960
DTD 12/01/14 3.171 10/25/2024
CUSIP 3137BFE98
2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,247,979.80 1.50 115,199.15- 4,828.54
DTD 02/14/20 1.500 02/12/2025 99.9230 95.0520
MOODY'S RATING AAA
CUSIP 3137EAEP0
109
PAGE 6
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,148,875.00 0.77 94,900.00-911.46
SER USD 99.5020 91.9100
DTD 07/23/20 0.375 07/21/2025
MOODY'S RATING AAA
CUSIP 3137EAEU9
2,500,000 FED HOME LN MTG CORP 2,489,362.80 2,279,400.00 1.52 209,962.80-208.33
DTD 09/25/20 0.375 09/23/2025 99.5745 91.1760
MOODY'S RATING AAA
CUSIP 3137EAEX3
855,000 FED HOME LN MTG CORP 854,153.55 847,424.70 0.57 6,728.85-694.69
DTD 12/04/20 0.250 12/04/2023 99.9010 99.1140
MOODY'S RATING AAA
CUSIP 3137EAFA2
1,500,000 FED NATL MTG ASSN 1,484,895.00 1,458,540.00 0.98 26,355.00- 6,489.58
DTD 07/08/19 1.750 07/02/2024 98.9930 97.2360
MOODY'S RATING AAA
CUSIP 3135G0V75
1,975,000 FED NATL MTG ASSN 1,965,802.75 1,898,903.25 1.27 66,899.50- 14,798.78
DTD 10/18/19 1.625 10/15/2024 99.5343 96.1470
MOODY'S RATING AAA
CUSIP 3135G0W66
1,295,000 FED NATL MTG ASSN 1,309,953.95 1,235,857.35 0.83 74,096.60- 4,910.21
DTD 01/10/20 1.625 01/07/2025 101.1548 95.4330
MOODY'S RATING AAA
CUSIP 3135G0X24
1,860,000 FED NATL MTG ASSN 1,856,168.40 1,730,990.40 1.16 125,178.00- 5,134.38
DTD 04/24/20 0.625 04/22/2025 99.7940 93.0640
MOODY'S RATING AAA
CUSIP 3135G03U5
2,500,000 FED NATL MTG ASSN 2,499,227.30 2,311,500.00 1.55 187,727.30- 3,611.11
DTD 06/19/20 0.500 06/17/2025 99.9691 92.4600
MOODY'S RATING AAA
CUSIP 3135G04Z3
110
PAGE 7
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
2,500,000 FED NATL MTG ASSN 2,487,983.75 2,286,725.00 1.53 201,258.75-937.50
DTD 08/27/20 0.375 08/25/2025 99.5194 91.4690
MOODY'S RATING AAA
CUSIP 3135G05X7
2,500,000 FED NATL MTG ASSN 2,492,700.00 2,273,450.00 1.52 219,250.00- 5,000.00
DTD 11/12/20 0.500 11/07/2025 99.7080 90.9380
MOODY'S RATING AAA
CUSIP 3135G06G3
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,079,687.50 958,230.00 0.64 121,457.50- 2,508.33
SER K049 CL A2 *24 DAY DELAY*107.9688 95.8230
DTD 10/01/15 3.010 08/25/2025
CUSIP 3137BLMZ8
950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 914,527.00 0.61 103,605.81- 2,639.42
SER K050 CL A2 *24 DAY DELAY*107.1719 96.2660
DTD 11/01/15 08/25/2025
CUSIP 3137BLW95
440,000 FHLMC MULTIFAMILY STRUCTURED P 453,079.69 422,628.80 0.28 30,450.89- 1,212.93
SER K051 CL A2 *24 DAY DELAY*102.9727 96.0520
DTD 12/01/15 3.308 09/25/2025
CUSIP 3137BM7C4
570,000 FHLMC MULTIFAMILY STRUCTURED P 582,001.17 542,474.70 0.36 39,526.47- 1,422.63
SER K053 CL A2 *24 DAY DELAY*102.1055 95.1710
DTD 03/01/16 2.995 12/25/2025
CUSIP 3137BN6G4
650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 604,857.50 0.40 82,593.67- 1,437.04
SER K058 CL A2 *24 DAY DELAY*105.7617 93.0550
DTD 11/01/16 2.653 08/25/2026
CUSIP 3137BSP72
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 935,320.00 0.63 15,344.06- 2,703.33
SER K068 CL A2 *24 DAY DELAY*95.0664 93.5320
DTD 10/01/17 3.244 08/25/2027
MOODY'S RATING AAA
CUSIP 3137FBBX3
111
PAGE 8
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
316,458.74 GM FINANCIAL AUTOMOBILE LEASIN 316,454.44 314,420.75 0.21 2,033.69-34.28
SER 2021-3 CL A3 *0 DAY DELAY*99.9987 99.3560
DTD 08/18/21 0.390 10/21/2024
CUSIP 36262XAC8
779,035.85 GM FINANCIAL AUTOMOBILE LEASIN 779,029.15 769,087.56 0.51 9,941.59-440.37
SER 2022-1 CL A3 *0 DAY DELAY*99.9992 98.7230
DTD 02/23/22 1.850 03/20/2025
MOODY'S RATING AAA
CUSIP 36265MAC9
301,789.22 GM FINANCIAL SECURITIZED TERM 301,781.53 289,530.54 0.19 12,250.99-85.51
SER 2021-4 CL A3 *0 DAY DELAY*99.9975 95.9380
DTD 10/21/21 0.680 09/16/2026
MOODY'S RATING AAA
CUSIP 362554AC1
390,000 GM FINANCIAL SECURITIZED TERM 389,918.49 379,107.30 0.25 10,811.19-503.75
ASSET BCKD SEC SER 2022-2 CL A3 99.9791 97.2070
DTD 04/13/2022 3.100% 02/16/2027
CALLABLE
MOODY'S RATING AAA
CUSIP 362585AC5
292,304.2 GM FINANCIAL SECURITIZED TERM 292,278.79 282,453.55 0.19 9,825.24-153.46
SER 2022-1 CL A3 *0 DAY DELAY*99.9913 96.6300
DTD 01/19/22 1.260 11/16/2026
CUSIP 380146AC4
1,400,000 GUARDIAN LIFE GLOB FUND 1,385,860.00 1,256,668.00 0.84 129,192.00- 3,777.08
144A PRIV PLCMT 0.875 12/10/2025 98.9900 89.7620
MOODY'S RATING AA1
CUSIP 40139LBC6
82,104.42 HONDA AUTO RECEIVABLES OWNER T 82,102.92 80,642.96 0.05 1,459.96-6.16
SER 2021-1 CL A3 *0 DAY DELAY*99.9982 98.2200
DTD 02/24/21 0.270 04/21/2025
MOODY'S RATING AAA
CUSIP 43813GAC5
112
PAGE 9
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
68,329.04 HONDA AUTO RECEIVABLES OWNER T 68,319.00 67,757.13 0.05 561.87-9.13
SER 2020-3 CL A3 *0 DAY DELAY*99.9853 99.1630
DTD 09/29/20 0.370 10/18/2024
CUSIP 43813KAC6
740,000 HONDA AUTO RECEIVABLES OWNER T 739,888.70 713,929.80 0.48 25,958.90-618.31
SER 2022-1 CL A3 *0 DAY DELAY*99.9850 96.4770
DTD 02/23/22 1.000 05/15/2026
MOODY'S RATING AAA
CUSIP 43815BAC4
394,284.05 HONDA AUTO RECEIVABLES OWNER T 394,200.93 378,910.91 0.25 15,290.02-96.38
SER 2021-4 CL A3 *0 DAY DELAY*99.9789 96.1010
DTD 11/24/21 0.880 01/21/2026
MOODY'S RATING AAA
CUSIP 43815GAC3
408,599.02 HYUNDAI AUTO LEASE SECURITIZAT 408,590.00 404,104.43 0.27 4,485.57-210.66
SER 2022-A CL A3 *0 DAY DELAY*99.9978 98.9000
144A PRIV PLCMT 1.160 01/15/2025
MOODY'S RATING AAA
CUSIP 44891WAC3
1,010,000 HYUNDAI AUTO RECEIVABLES TRUST 1,009,961.12 977,336.60 0.65 32,624.52-996.53
ASSET BCKD SEC SER 2022-A CL A3 99.9962 96.7660
DTD 03/16/2022 2.220% 10/15/2026
CALLABLE
CUSIP 448977AD0
223,739.67 HYUNDAI AUTO RECEIVABLES TRUST 223,716.13 219,199.99 0.15 4,516.14-37.79
SER 2021-A CL A3 *0 DAY DELAY*99.9895 97.9710
DTD 04/28/21 0.380 09/15/2025
CUSIP 44933LAC7
1,139,633.54 HYUNDAI AUTO RECEIVABLES TRUST 1,110,818.51 1,101,353.25 0.74 9,465.26-374.81
SER 2021-C CL A3 *0 DAY DELAY*97.4716 96.6410
DTD 11/17/21 0.740 05/15/2026
CUSIP 44935FAD6
113
PAGE 10
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
2,800,000 INTER-AMERICAN DEVEL BK 2,792,300.00 2,782,668.00 1.86 9,632.00- 2,644.44
DTD 09/02/20 0.250 11/15/2023 99.7250 99.3810
MOODY'S RATING AAA
CUSIP 4581X0DP0
2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,219,731.80 1.49 229,001.40- 9,626.46
DTD 04/20/21 0.875 04/20/2026 99.5420 90.2330
MOODY'S RATING AAA
CUSIP 4581X0DV7
2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,184,144.00 1.46 204,715.25- 5,100.00
DTD 10/28/20 0.500 10/28/2025 99.5358 91.0060
MOODY'S RATING AAA
CUSIP 459058JL8
2,500,000 INTL FINANCE CORP 2,471,150.00 2,295,400.00 1.54 175,750.00- 1,953.13
DTD 07/16/20 0.375 07/16/2025 98.8460 91.8160
MOODY'S RATING AAA
CUSIP 45950KCT5
450,000 JOHN DEERE OWNER TRUST 449,900.46 435,667.50 0.29 14,232.96-464.00
ASSET BCKD SEC SER 2022-A CL A3 99.9779 96.8150
DTD 03/16/2022 2.320% 09/16/2026
NON CALLABLE
MOODY'S RATING AAA
CUSIP 47787JAC2
6,102.55 JOHN DEERE OWNER TRUST 6,101.62 6,089.19 0.00 12.43-1.38
SER 2020-B CL A3 *0 DAY DELAY*99.9848 99.7810
DTD 07/22/20 0.510 11/15/2024
MOODY'S RATING AAA
CUSIP 47787NAC3
428,221.6 JOHN DEERE OWNER TRUST 428,183.40 413,602.11 0.28 14,581.29-92.78
SER 2021-B CL A3 *0 DAY DELAY*99.9911 96.5860
DTD 07/21/21 0.520 03/16/2026
MOODY'S RATING AAA
CUSIP 47789QAC4
114
PAGE 11
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
655,000 JOHN DEERE OWNER TRUST 654,937.45 637,596.65 0.43 17,340.80- 1,088.76
ASSET BCKD SEC SER 2022-B CL A3 99.9905 97.3430
DTD 07/20/2022 3.740% 02/16/2027
NON CALLABLE
MOODY'S RATING AAA
CUSIP 47800AAC4
1,050,000 JOHN DEERE OWNER TRUST 1,049,918.52 1,038,786.00 0.69 11,132.52- 2,375.33
ASSET BCKD SEC SER 2022-C CL A3 99.9923 98.9320
DTD 10/19/2022 5.090% 06/15/2027
CALLABLE
MOODY'S RATING AAA
CUSIP 47800BAC2
655,000 JPMORGAN CHASE &655,406.85 628,590.40 0.42 26,816.45- 1,727.78
SER F2F 100.0621 95.9680
DTD 06/23/21 06/23/2025
MOODY'S RATING A1
CUSIP 46647PCK0
401,000 JPMORGAN CHASE & CO 415,969.33 376,382.61 0.25 39,586.72- 3,689.17
DTD 04/22/20 04/22/2026 103.7330 93.8610
MOODY'S RATING A1
CUSIP 46647PBK1
1,370,000 JPMORGAN CHASE & CO 1,371,773.90 1,318,830.50 0.88 52,943.40- 3,762.93
DTD 06/01/21 06/01/2025 100.1295 96.2650
MOODY'S RATING A1
CUSIP 46647PCH7
1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 885,130.00 0.59 117,100.00- 2,500.00
144A PRIV PLCMT 1.200 07/16/2026 100.2230 88.5130
MOODY'S RATING AA3
CUSIP 57629WDE7
945,000 MASTERCARD INC 944,083.35 937,893.60 0.63 6,189.75- 2,815.31
DTD 03/09/2023 4.875% 03/09/2028 99.9030 99.2480
CALLABLE
MOODY'S RATING AA3
CUSIP 57636QAW4
115
PAGE 12
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 988,347.15 0.66 125,381.75- 4,645.83
144A PRIV PLCMT 1.875 01/11/2027 99.8860 88.6410
MOODY'S RATING AA3
CUSIP 59217GER6
770,000 MET TOWER GLOBAL FUNDING 769,291.60 678,408.50 0.45 90,883.10-454.51
144A PRIV PLCMT 1.250 09/14/2026 99.9080 88.1050
MOODY'S RATING AA3
CUSIP 58989V2D5
650,000 MORGAN STANLEY 615,699.50 610,603.50 0.41 5,096.00- 6,044.35
DTD 04/28/20 04/28/2026 94.7230 93.9390
MOODY'S RATING A1
CUSIP 6174468Q5
1,680,000 NEW YORK LIFE GLOBAL FDG 1,678,185.60 1,591,951.20 1.07 86,234.40- 5,210.33
144A PRIV PLCMT 1.450 01/14/2025 99.8920 94.7590
MOODY'S RATING AAA
CUSIP 64952WEK5
670,000 NORTHERN TRUST CORP 668,914.60 633,773.10 0.42 35,141.50- 10,496.67
DTD 05/10/2022 4.000% 05/10/2027 99.8380 94.5930
CALLABLE
MOODY'S RATING A2
CUSIP 665859AW4
850,000 NORTHWESTERN MUTUAL GLBL 827,449.50 762,025.00 0.51 65,424.50- 1,454.44
144A PRIV PLCMT 0.800 01/14/2026 97.3470 89.6500
MOODY'S RATING AAA
CUSIP 66815L2A6
1,170,000 NORTHWESTERN MUTUAL GLBL 1,169,602.20 1,135,988.10 0.76 33,614.10- 11,700.00
DTD 07/01/2022 4.000% 07/01/2025 99.9660 97.0930
NON CALLABLE
144A PRIVATE PLACEMENT
MOODY'S RATING AAA
CUSIP 66815L2J7
116
PAGE 13
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
370,000 PACCAR FINANCIAL CORP 369,182.30 358,796.40 0.24 10,385.90- 1,016.47
MED TERM NOTE 99.7790 96.9720
DTD 08/15/19 2.150 08/15/2024
MOODY'S RATING A1
CUSIP 69371RQ25
680,000 PACCAR FINANCIAL CORP 679,632.80 650,814.40 0.44 28,818.40-491.11
MED TERM NOTE 99.9460 95.7080
DTD 08/09/21 0.500 08/09/2024
MOODY'S RATING A1
CUSIP 69371RR40
885,000 PACCAR FINANCIAL CORP 884,769.90 849,723.90 0.57 35,046.00- 12,190.88
MEDIUM TERM NOTE 99.9740 96.0140
DTD 04/07/2022 2.850% 04/07/2025
NON CALLABLE
MOODY'S RATING A1
CUSIP 69371RR73
904,000 PRICOA GLOBAL FUNDING 1 832,972.72 823,607.28 0.55 9,365.44-602.67
144A PRIV PLCMT 0.800 09/01/2025 92.1430 91.1070
MOODY'S RATING AA3
CUSIP 74153WCM9
885,000 PRICOA GLOBAL FUNDING 1 884,088.45 837,413.55 0.56 46,674.90- 3,251.15
144A PRIV PLCMT 1.150 12/06/2024 99.8970 94.6230
MOODY'S RATING AA3
CUSIP 74153WCQ0
1,500,000 ROYAL BANK OF CANADA 1,533,359.18 1,460,370.00 0.98 72,989.18- 7,968.75
DTD 07/16/19 2.550 07/16/2024 102.2240 97.3580
MOODY'S RATING A1
CUSIP 78013XZU5
1,050,000 ROYAL BANK OF CANADA 1,049,611.50 1,013,029.50 0.68 36,582.00- 16,439.06
MEDIUM TERM NOTE 99.9630 96.4790
CONVERTIBLE
DTD 04/14/2022 3.375% 04/14/2025
NON CALLABLE
MOODY'S RATING A1
CUSIP 78016EZ59
117
PAGE 14
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,760,000 SALESFORCE.COM INC 1,748,937.40 1,691,553.60 1.13 57,383.80- 2,322.22
DTD 07/12/21 0.625 07/15/2024 99.3715 96.1110
MOODY'S RATING A2
CUSIP 79466LAG9
1,500,000 TORONTO-DOMINION BANK 1,527,255.00 1,465,680.00 0.98 61,575.00- 12,035.42
MED TERM NOTE 101.8170 97.7120
DTD 06/12/19 2.650 06/12/2024
MOODY'S RATING A1
CUSIP 89114QCA4
700,000 TORONTO-DOMINION BANK 674,737.00 662,676.00 0.44 12,061.00- 2,283.75
MED TERM NOTE SER FXD 96.3910 94.6680
DTD 01/12/22 1.450 01/10/2025
MOODY'S RATING A1
CUSIP 89114TZL9
38,748.02 TOYOTA AUTO RECEIVABLES OWNER 38,740.80 38,542.66 0.03 198.14-6.03
SER 2020-D CL A3 *0 DAY DELAY*99.9814 99.4700
DTD 10/13/20 0.350 01/15/2025
CUSIP 89236XAC0
371,935.67 TOYOTA AUTO RECEIVABLES OWNER 371,927.74 357,794.68 0.24 14,133.06-117.37
SER 2021-D CL A3 *0 DAY DELAY*99.9979 96.1980
DTD 11/15/21 0.710 04/15/2026
CUSIP 89238JAC9
304,955.87 TOYOTA AUTO RECEIVABLES OWNER 304,899.28 299,692.33 0.20 5,206.95-35.24
SER 2021-A CL A3 *0 DAY DELAY*99.9815 98.2740
DTD 02/08/21 0.260 05/15/2025
MOODY'S RATING AAA
CUSIP 89240BAC2
1,100,310.19 TOYOTA LEASE OWNER TRUST 1,100,137.00 1,086,193.21 0.73 13,943.79-658.96
ASSET BCKD SEC SER 2022-A CL A3 99.9843 98.7170
DTD 02/28/2022 1.960% 02/20/2025
CALLABLE
144A PRIVATE PLACEMENT
CUSIP 89238LAC4
118
PAGE 15
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,236,777.30 0.83 147,613.30- 4,457.97
MED TERM NOTE 99.9560 89.2980
DTD 06/18/21 1.125 06/18/2026
MOODY'S RATING A1
CUSIP 89236TJK2
1,215,000 TOYOTA MOTOR CREDIT CORP 1,213,371.90 1,153,606.05 0.77 59,765.85- 3,817.13
DTD 01/13/22 1.450 01/13/2025 99.8660 94.9470
MOODY'S RATING A1
CUSIP 89236TJT3
3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 2,947,914.00 1.97 109,703.20- 2,384.62
DTD 03/15/2022 1.750% 03/15/2025 98.6328 95.0940
MOODY'S RATING AAA
CUSIP 91282CED9
3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,087,890.00 2.07 172,422.50- 26,693.27
DTD 06/30/2022 3.250% 06/30/2027 100.3173 95.0120
MOODY'S RATING AAA
CUSIP 91282CEW7
400,000 UNITED STATES TREASURY NOTES 393,218.75 372,608.00 0.25 20,610.75- 1,853.26
DTD 07/31/2022 2.750% 07/31/2027 98.3047 93.1520
MOODY'S RATING AAA
CUSIP 91282CFB2
4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,247,055.00 2.84 221,847.34- 11,976.30
DTD 08/31/2022 3.125% 08/31/2027 99.3090 94.3790
MOODY'S RATING AAA
CUSIP 91282CFH9
3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,378,171.00 2.26 42,981.34- 71,545.08
DTD 09/30/2022 4.125% 09/30/2027 99.1639 97.9180
MOODY'S RATING AAA
CUSIP 91282CFM8
850,000 UNITED STATES TREASURY NOTES 852,656.25 823,973.00 0.55 28,683.25- 11,069.16
DTD 11/30/2022 3.875% 11/30/2027 100.3125 96.9380
MOODY'S RATING AAA
CUSIP 91282CFZ9
119
PAGE 16
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,665,245.00 1.78 109,862.42- 26,930.20
DTD 12/31/2022 3.875% 12/31/2027 100.9130 96.9180
MOODY'S RATING AAA
CUSIP 91282CGC9
3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,863,020.00 1.92 94,909.69- 17,690.22
DTD 01/31/2023 3.500% 01/31/2028 98.5977 95.4340
MOODY'S RATING AAA
CUSIP 91282CGH8
3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,604,318.00 2.41 94,795.28- 12,604.40
DTD 02/28/2023 4.000% 02/29/2028 99.9760 97.4140
MOODY'S RATING AAA
CUSIP 91282CGP0
1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 931,044.60 0.62 94,006.75- 4,496.50
DTD 05/19/21 1.150 05/15/2026 99.0388 89.9560
MOODY'S RATING A2
CUSIP 91324PEC2
675,000 UNITEDHEALTH GROUP INC 675,316.70 639,812.25 0.43 35,504.45- 9,435.00
DTD 05/20/2022 3.700% 05/15/2027 100.0469 94.7870
CALLABLE
MOODY'S RATING A2
CUSIP 91324PEG3
1,250,000 US BANCORP 1,268,262.50 1,214,187.50 0.81 54,075.00- 5,083.33
DTD 07/29/19 2.400 07/30/2024 101.4610 97.1350
MOODY'S RATING A3
CUSIP 91159HHX1
1,500,000 US TREASURY NOTE 1,469,765.63 1,373,445.00 0.92 96,320.63-631.79
DTD 07/31/20 0.250 07/31/2025 97.9844 91.5630
MOODY'S RATING AAA
CUSIP 91282CAB7
2,400,000 US TREASURY NOTE 2,366,140.63 2,184,000.00 1.46 182,140.63- 3,016.39
DTD 09/30/20 0.250 09/30/2025 98.5892 91.0000
MOODY'S RATING AAA
CUSIP 91282CAM3
120
PAGE 17
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
2,450,000 US TREASURY NOTE 2,422,492.19 2,221,562.00 1.49 200,930.19- 2,563.18
DTD 10/31/20 0.250 10/31/2025 98.8772 90.6760
MOODY'S RATING AAA
CUSIP 91282CAT8
2,250,000 US TREASURY NOTE 2,209,658.20 2,038,635.00 1.36 171,023.20- 2,835.55
DTD 11/30/20 0.375 11/30/2025 98.2070 90.6060
MOODY'S RATING AAA
CUSIP 91282CAZ4
2,500,000 US TREASURY NOTE 2,456,445.31 2,250,500.00 1.51 205,945.31- 1,579.48
DTD 02/01/21 0.375 01/31/2026 98.2578 90.0200
MOODY'S RATING AAA
CUSIP 91282CBH3
2,500,000 US TREASURY NOTE 2,493,652.34 2,252,050.00 1.51 241,602.34- 7,846.47
DTD 04/30/21 0.750 04/30/2026 99.7461 90.0820
MOODY'S RATING AAA
CUSIP 91282CBW0
1,400,000 US TREASURY NOTE 1,379,054.68 1,249,276.00 0.84 129,778.68- 6,158.47
DTD 09/30/21 0.875 09/30/2026 98.5039 89.2340
MOODY'S RATING AAA
CUSIP 91282CCZ2
1,400,000 US TREASURY NOTE 1,391,468.75 1,254,428.00 0.84 137,040.75- 6,591.03
DTD 11/01/21 1.125 10/31/2026 99.3906 89.6020
CUSIP 91282CDG3
1,700,000 US TREASURY NOTE 1,753,191.41 1,655,052.00 1.11 98,139.41- 5,156.59
DTD 08/15/14 2.375 08/15/2024 103.1289 97.3560
MOODY'S RATING AAA
CUSIP 912828D56
2,000,000 US TREASURY NOTE 2,018,574.22 1,949,140.00 1.30 69,434.22- 10,108.70
DTD 06/30/17 2.000 06/30/2024 100.9287 97.4570
MOODY'S RATING AAA
CUSIP 912828XX3
121
PAGE 18
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
1,700,000 US TREASURY NOTE 1,705,976.56 1,666,527.00 1.11 39,449.56- 14,228.26
DTD 05/01/17 2.000 04/30/2024 100.3516 98.0310
MOODY'S RATING AAA
CUSIP 912828X70
2,100,000 US TREASURY NOTE 2,087,203.13 2,009,280.00 1.34 77,923.13- 9,287.36
DTD 12/31/19 1.750 12/31/2024 99.3906 95.6800
CUSIP 912828YY0
1,500,000 US TREASURY NOTE 1,523,144.53 1,415,865.00 0.95 107,279.53- 1,559.10
DTD 03/02/20 1.125 02/28/2025 101.5430 94.3910
MOODY'S RATING AAA
CUSIP 912828ZC7
2,500,000 US TREASURY NOTE 2,360,839.85 2,317,675.00 1.55 43,164.85- 3,923.23
DTD 04/30/20 0.375 04/30/2025 94.4336 92.7070
MOODY'S RATING AAA
CUSIP 912828ZL7
570,000 VERIZON MASTER TRUST 569,974.92 566,374.80 0.38 3,600.12-647.90
ASSET BCKD SEC SER 2022-5 CL A1A 99.9956 99.3640
DTD 08/11/2022 VAR CPN 07/20/2027
CALLABLE
CUSIP 92348KAV5
5,413.17 VERIZON OWNER TRUST 5,412.03 5,402.18 0.00 9.85-0.78
SER 2020-B CL A *0 DAY DELAY*99.9790 99.7970
DTD 08/12/20 0.470 02/20/2025
MOODY'S RATING AAA
CUSIP 92290BAA9
350,000 WALMART INC 349,338.50 312,070.50 0.21 37,268.00-142.92
DTD 09/17/21 1.050 09/17/2026 99.8110 89.1630
MOODY'S RATING AA2
CUSIP 931142ER0
TOTAL BOND & NOTES 151,867,507.92 143,461,507.84 95.98 8,406,000.08- 619,174.79
122
PAGE 19
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
======================================================================================================================================
TOTAL INVESTMENTS 157,816,425.12 149,473,130.12 100.00 8,343,295.00- 620,806.88
TOTAL ACCRUALS 620,806.88 620,806.88
======================================================================================================================================
TOTAL ACCRUALS AND INVESTMENTS 158,437,232.00 150,093,937.00
123
PAGE 20
CASH SUMMARY CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH SUMMARY
DESCRIPTION PRINCIPAL CASH INCOME CASH
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
BEGINNING BALANCE 0.00 0.00
RECEIPTS
NET INTEREST COLLECTED 0.00 169,136.12
TRANSFER RECEIPTS 169,136.12 0.00
SALES 807,140.67 0.00
CASH MANAGEMENT SALES 959,810.33 0.00
TOTAL CASH RECEIPTS 1,936,087.12 169,136.12
DISBURSEMENTS
INVESTMENT MANAGEMENT EXPENSES 9,164.80-0.00
TRANSFER DISBURSEMENTS 0.00 169,136.12-
PURCHASES 950,526.04-0.00
CASH MANAGEMENT PURCHASES 976,396.28-0.00
TOTAL CASH DISBURSEMENTS 1,936,087.12-169,136.12-
ENDING BALANCE 0.00 0.00
________________________________________________________________________________________________________________________________________
124
PAGE 21
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
BEGINNING BALANCE 0.00 157,654,572.07
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH EQUIVALENTS
09/01/23 INTEREST RECEIVED 1,755.02
AS 100% TREAS MM FD-SVC CL #008
INTEREST FROM 8/1/23 TO 8/31/23
09/01/23 INTEREST RECEIVED 119.49
PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
INTEREST FROM 8/1/23 TO 8/31/23
09/26/23 1,000,000 PURCHASED 950,526.04-950,526.04
U.S. TREASURY BILLS 9/05/24
CUSIP 912797GL5
AT $95.0526 ON TRADE DATE 09/25/2023
TO SETTLE ON 09/26/2023
NOMURA SECURITIES INTERNATIONA
09/30/23 976,276.79 CASH SWEEP PURCHASES FOR STMT PERIOD 976,276.79-976,276.79
AS 100% TREAS MM FD-SVC CL #008
15 TRANSACTIONS
09/30/23 119.49 CASH SWEEP PURCHASES FOR STMT PERIOD 119.49-119.49
PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
1 TRANSACTIONS
09/30/23 959,810.33- CASH SWEEP SALES FOR STMT PERIOD 959,810.33 959,810.33-
AS 100% TREAS MM FD-SVC CL #008
3 TRANSACTIONS
BONDS & NOTES
09/15/23 INTEREST RECEIVED 2,845.38
AMERICAN EXPRES ABS 2.210% 3/15/27
CUSIP 02589BAA8
$0.00184/PV ON 1,545,000.00 PV
DUE 9/15/23
125
PAGE 22
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/15/23 INTEREST RECEIVED 3,884.38
AMERICAN EXPRESS ABS 3.390% 5/17/27
CUSIP 02582JJT8
$0.00283/PV ON 1,375,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 18,572.50
BERKSHIRE HATH 2.300% 3/15/27
CUSIP 084664CZ2
INTEREST ON 1,615,000.000 UNITS
09/25/23 INTEREST RECEIVED 32.99
BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
$0.00008/PV ON 119,970.30 PV
DUE 9/25/23
09/25/23 39,319.65- PAID DOWN 39,319.65 39,315.59-4.06
BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
09/25/23 INTEREST RECEIVED 262.64
BMW VEHICLE LEASE TR 1.100% 3/25/25
CUSIP 05601XAC3
$0.00058/PV ON 286,510.99 PV
DUE 9/25/23
09/25/23 43,867.34- PAID DOWN 43,867.34 43,860.78-6.56
BMW VEHICLE LEASE TR 1.100% 3/25/25
CUSIP 05601XAC3
09/25/23 INTEREST RECEIVED 1,417.75
BMW VEHICLE OWN ABS 3.210% 8/25/26
CUSIP 05602RAD3
$0.00268/PV ON 530,000.00 PV
DUE 9/25/23
126
PAGE 23
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/05/23 INTEREST RECEIVED 11,760.00
CHARLES SCHWAB CORP 2.450% 3/03/27
CUSIP 808513BY0
INTEREST ON 960,000.000 UNITS
09/13/23 INTEREST RECEIVED 28,750.00
FED HOME LN BK 2.875% 9/13/24
CUSIP 3130A2UW4
INTEREST ON 2,000,000.000 UNITS
09/25/23 INTEREST RECEIVED 4,687.50
FED HOME LN MTG CORP 0.375% 9/23/25
CUSIP 3137EAEX3
INTEREST ON 2,500,000.000 UNITS
09/25/23 INTEREST RECEIVED 3,429.24
FED HOME LN MTG CORP 3.171% 10/25/24
CUSIP 3137BFE98
$0.00264/PV ON 1,297,727.29 PV
DUE 9/25/23
09/25/23 2,810.12- PAID DOWN 2,810.12 3,022.85-212.73-
FED HOME LN MTG CORP 3.171% 10/25/24
CUSIP 3137BFE98
09/25/23 INTEREST RECEIVED 1,437.04
FHLMC MULTIFAMILY ST 2.653% 8/25/26
CUSIP 3137BSP72
$0.00221/PV ON 650,000.00 PV
DUE 9/25/23
09/25/23 INTEREST RECEIVED 1,422.62
FHLMC MULTIFAMILY ST 2.995% 12/25/25
CUSIP 3137BN6G4
$0.00250/PV ON 570,000.00 PV
DUE 9/25/23
127
PAGE 24
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/25/23 INTEREST RECEIVED 2,508.33
FHLMC MULTIFAMILY ST 3.010% 8/25/25
CUSIP 3137BLMZ8
$0.00251/PV ON 1,000,000.00 PV
DUE 9/25/23
09/25/23 INTEREST RECEIVED 2,703.33
FHLMC MULTIFAMILY ST 3.244% 8/25/27
CUSIP 3137FBBX3
$0.00270/PV ON 1,000,000.00 PV
DUE 9/25/23
09/25/23 INTEREST RECEIVED 1,212.93
FHLMC MULTIFAMILY ST 3.308% 9/25/25
CUSIP 3137BM7C4
$0.00276/PV ON 440,000.00 PV
DUE 9/25/23
09/18/23 INTEREST RECEIVED 1,007.50
GM FINANCIAL ABS 3.100% 2/16/27
CUSIP 362585AC5
$0.00258/PV ON 390,000.00 PV
DUE 9/16/23
09/20/23 INTEREST RECEIVED 137.72
GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
$0.00014/PV ON 423,751.45 PV
DUE 9/20/23
09/20/23 107,292.71- PAID DOWN 107,292.71 107,291.25-1.46
GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
09/20/23 INTEREST RECEIVED 1,387.79
GM FINANCIAL AUTOMOB 1.850% 3/20/25
CUSIP 36265MAC9
$0.00147/PV ON 876,497.04 PV
DUE 9/20/23
128
PAGE 25
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/20/23 97,461.19- PAID DOWN 97,461.19 97,460.35-0.84
GM FINANCIAL AUTOMOB 1.850% 3/20/25
CUSIP 36265MAC9
09/18/23 INTEREST RECEIVED 181.42
GM FINANCIAL SECURIT 0.680% 9/16/26
CUSIP 362554AC1
$0.00052/PV ON 320,144.87 PV
DUE 9/16/23
09/18/23 18,355.65- PAID DOWN 18,355.65 18,355.18-0.47
GM FINANCIAL SECURIT 0.680% 9/16/26
CUSIP 362554AC1
TO SETTLE ON 09/18/2023
09/18/23 INTEREST RECEIVED 309.75
GM FINANCIAL SECURIT 1.260% 11/16/26
CUSIP 380146AC4
$0.00105/PV ON 295,000.00 PV
DUE 9/16/23
09/18/23 2,695.8- PAID DOWN 2,695.80 2,695.57-0.23
GM FINANCIAL SECURIT 1.260% 11/16/26
CUSIP 380146AC4
TO SETTLE ON 09/18/2023
09/21/23 INTEREST RECEIVED 21.20
HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
$0.00007/PV ON 94,218.23 PV
DUE 9/21/23
09/21/23 12,113.81- PAID DOWN 12,113.81 12,113.59-0.22
HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
129
PAGE 26
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/18/23 INTEREST RECEIVED 27.51
HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
$0.00005/PV ON 89,228.39 PV
DUE 9/18/23
09/18/23 20,899.35- PAID DOWN 20,899.35 20,896.28-3.07
HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
09/14/23 0.01 SHARE ADJUSTMENT
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
09/15/23 INTEREST RECEIVED 2.84
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
$0.00002/PV ON 4,151.78 PV
DUE 9/15/23
09/15/23 4,151.78- PAID DOWN 4,151.78 4,151.44-0.34
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
AT $86,164.2992 ON TRADE DATE 09/15/2023
09/21/23 INTEREST RECEIVED 308.96
HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
$0.00067/PV ON 421,306.25 PV
DUE 9/21/23
09/21/23 27,022.2- PAID DOWN 27,022.20 27,016.50-5.70
HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
130
PAGE 27
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/15/23 INTEREST RECEIVED 1,159.33
HONDA AUTO RECEIVABL 1.000% 5/15/26
CUSIP 43815BAC4
$0.00157/PV ON 740,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 18.72
HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
$0.00002/PV ON 68,055.90 PV
DUE 9/15/23
09/15/23 68,055.9- PAID DOWN 68,055.90 68,045.69-10.21
HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
AT $5,256.4908 ON TRADE DATE 09/15/2023
09/15/23 INTEREST RECEIVED 456.62
HYUNDAI AUTO LEASE 1.160% 1/15/25
CUSIP 44891WAC3
$0.00085/PV ON 472,369.49 PV
DUE 9/15/23
09/15/23 63,770.47- PAID DOWN 63,770.47 63,769.06-1.41
HYUNDAI AUTO LEASE 1.160% 1/15/25
CUSIP 44891WAC3
09/15/23 INTEREST RECEIVED 1,868.50
HYUNDAI AUTO REC ABS 2.220% 10/15/26
CUSIP 448977AD0
$0.00185/PV ON 1,010,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 79.19
HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
$0.00015/PV ON 250,062.56 PV
DUE 9/15/23
131
PAGE 28
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/15/23 26,322.89- PAID DOWN 26,322.89 26,320.12-2.77
HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
AT $238.9643 ON TRADE DATE 09/15/2023
09/15/23 INTEREST RECEIVED 752.25
HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
$0.00057/PV ON 1,219,856.64 PV
DUE 9/15/23
09/15/23 80,223.1- PAID DOWN 80,223.10 78,194.70-2,028.40
HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
AT $5,930.8084 ON TRADE DATE 09/15/2023
09/15/23 INTEREST RECEIVED 4,453.75
JOHN DEERE OWNE ABS 5.090% 6/15/27
CUSIP 47800BAC2
$0.00424/PV ON 1,050,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 870.00
JOHN DEERE OWNER ABS 2.320% 9/16/26
CUSIP 47787JAC2
$0.00193/PV ON 450,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 2,041.42
JOHN DEERE OWNER ABS 3.740% 2/16/27
CUSIP 47800AAC4
$0.00312/PV ON 655,000.00 PV
DUE 9/15/23
09/15/23 INTEREST RECEIVED 4.93
JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
$0.00002/PV ON 11,591.52 PV
DUE 9/15/23
132
PAGE 29
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/15/23 5,488.97- PAID DOWN 5,488.97 5,488.13-0.84
JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
09/15/23 INTEREST RECEIVED 195.30
JOHN DEERE OWNER TRU 0.520% 3/16/26
CUSIP 47789QAC4
$0.00034/PV ON 450,686.42 PV
DUE 9/15/23
09/15/23 22,464.82- PAID DOWN 22,464.82 22,462.82-2.00
JOHN DEERE OWNER TRU 0.520% 3/16/26
CUSIP 47789QAC4
09/11/23 INTEREST RECEIVED 23,034.38
MASTERCARD INC 4.875% 3/09/28
CUSIP 57636QAW4
INTEREST ON 945,000.000 UNITS
09/14/23 INTEREST RECEIVED 4,812.50
P/P MET TOWER GLOBAL 1.250% 9/14/26
CUSIP 58989V2D5
INTEREST ON 770,000.000 UNITS
09/01/23 INTEREST RECEIVED 3,616.00
P/P PRICOA GLOBAL FU 0.800% 9/01/25
CUSIP 74153WCM9
INTEREST ON 904,000.000 UNITS
09/15/23 INTEREST RECEIVED 75.59
TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
$0.00007/PV ON 348,879.00 PV
DUE 9/15/23
133
PAGE 30
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/15/23 43,923.13- PAID DOWN 43,923.13 43,914.98-8.15
TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
AT $8,144.5747 ON TRADE DATE 09/15/2023
09/15/23 INTEREST RECEIVED 16.29
TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
$0.00004/PV ON 55,867.64 PV
DUE 9/15/23
09/15/23 17,119.62- PAID DOWN 17,119.62 17,116.43-3.19
TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
09/15/23 INTEREST RECEIVED 234.58
TOYOTA AUTO RECEIVAB 0.710% 4/15/26
CUSIP 89238JAC9
$0.00055/PV ON 396,481.44 PV
DUE 9/15/23
09/15/23 24,545.77- PAID DOWN 24,545.77 24,545.25-0.52
TOYOTA AUTO RECEIVAB 0.710% 4/15/26
CUSIP 89238JAC9
AT $14,574.2103 ON TRADE DATE 09/15/2023
09/20/23 49,689.81- PAID DOWN 49,689.81 49,681.99-7.82
TOYOTA LEASE OWN ABS 1.960% 2/20/25
CUSIP 89238LAC4
09/25/23 INTEREST RECEIVED 1,878.33
TOYOTA LEASE OWN ABS 1.960% 2/20/25
CUSIP 89238LAC4
09/15/23 INTEREST RECEIVED 27,125.00
U.S. TREASURY NOTES 1.750% 3/15/25
CUSIP 91282CED9
INTEREST ON 3,100,000.000 UNITS
134
PAGE 31
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/20/23 INTEREST RECEIVED 1,767.00
VERIZON MAST ABS V-M 3.720% 7/20/27
CUSIP 92348KAV5
$0.00310/PV ON 570,000.00 PV
DUE 9/20/23
09/20/23 INTEREST RECEIVED 13.69
VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
$0.00002/PV ON 34,959.76 PV
DUE 9/20/23
09/20/23 29,546.59- PAID DOWN 29,546.59 29,540.39-6.20
VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
AT $5,148.9080 ON TRADE DATE 09/20/2023
09/25/23 INTEREST RECEIVED 2,639.42
VR FHLMC MULTIFAMI 3.334% 8/25/25
CUSIP 3137BLW95
$0.00278/PV ON 950,000.00 PV
DUE 9/25/23
09/18/23 INTEREST RECEIVED 1,837.50
WALMART INC 1.050% 9/17/26
CUSIP 931142ER0
INTEREST ON 350,000.000 UNITS
TRANSFER RECEIPTS
09/01/23 ADDITION TO ACCOUNT 1,874.51
TRANSFER FROM INCOME
09/05/23 ADDITION TO ACCOUNT 15,376.00
TRANSFER FROM INCOME
135
PAGE 32
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
09/11/23 ADDITION TO ACCOUNT 23,034.38
TRANSFER FROM INCOME
09/13/23 ADDITION TO ACCOUNT 28,750.00
TRANSFER FROM INCOME
09/14/23 ADDITION TO ACCOUNT 4,812.50
TRANSFER FROM INCOME
09/15/23 ADDITION TO ACCOUNT 64,656.57
TRANSFER FROM INCOME
09/18/23 ADDITION TO ACCOUNT 3,182.26
TRANSFER FROM INCOME
09/19/23 ADDITION TO ACCOUNT 181.42
TRANSFER FROM INCOME
09/20/23 ADDITION TO ACCOUNT 3,659.02
TRANSFER FROM INCOME
09/21/23 ADDITION TO ACCOUNT 1,855.67
TRANSFER FROM INCOME
09/25/23 ADDITION TO ACCOUNT 21,458.16
TRANSFER FROM INCOME
09/26/23 ADDITION TO ACCOUNT 295.63
TRANSFER FROM INCOME
INVESTMENT MANAGEMENT EXPENSES
09/07/23 INVESTMENT MGMT FEE 9,164.80-
PAID TO CHANDLER ASSET MANAGEMENT INC
INV 2308CUPERTIN AUG 2023 CITY OF
CUPERTINO
136
INVESTMENT AND INSURANCE PRODUCTS ARE:
·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY
·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE
·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED
PAGE 33
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD SEPTEMBER 1, 2023 THROUGH SEPTEMBER 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
TRANSFER DISBURSEMENTS
09/01/23 TRANSFER TO PRINCIPAL 1,874.51-
09/05/23 TRANSFER TO PRINCIPAL 15,376.00-
09/11/23 TRANSFER TO PRINCIPAL 23,034.38-
09/13/23 TRANSFER TO PRINCIPAL 28,750.00-
09/14/23 TRANSFER TO PRINCIPAL 4,812.50-
09/15/23 TRANSFER TO PRINCIPAL 64,656.57-
09/18/23 TRANSFER TO PRINCIPAL 3,182.26-
09/19/23 TRANSFER TO PRINCIPAL 181.42-
09/20/23 TRANSFER TO PRINCIPAL 3,659.02-
09/21/23 TRANSFER TO PRINCIPAL 1,855.67-
09/25/23 TRANSFER TO PRINCIPAL 21,458.16-
09/26/23 TRANSFER TO PRINCIPAL 295.63-
=================================================================================================================
ENDING BALANCE 0.00 157,816,425.12
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
137
CITY OF CUPERTINO
PARS Post-Employment Benefits Trust 9/1/2023 to 9/30/2023
Kristina Alfaro
Director of Administrative Services
City of Cupertino
10300 Torre Ave.
Cupertino, CA 95014
Account Summary
Source 9/1/2023 Contributions Earnings Expenses Distributions Transfers 9/30/2023
OPEB 1001 $34,916,710.81 $0.00 -$1,269,109.23 $10,091.93 $0.00 $0.00 $33,637,509.65
PENSION 1002 $19,203,643.85 $0.00 -$697,988.87 $5,550.39 $0.00 $0.00 $18,500,104.59
Totals $54,120,354.66 $0.00 -$1,967,098.10 $15,642.32 $0.00 $0.00 $52,137,614.24
Investment Selection
Source
OPEB
PENSION
Investment Objective
Source
OPEB
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years
OPEB -3.63%-3.00%13.30%2.73%3.65%5.07%6/21/2010
PENSION -3.63%-3.00%13.30%2.69%--3/26/2019
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value
Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org
Balance as of
Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth.
Income production and longer term growth of capital.
City of Cupertino - PEN
Plan's Inception Date
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees
Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth.
Income production and longer term growth of capital.
Account Report for the Period
Balance as of
City of Cupertino - OPEB
138
10/2/23, 8:16 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
October 02, 2023
LAIF Home
PMIA Average Monthly
Yields
CITY OF CUPERTINO
FINANCE MANAGER
10300 TORRE AVENUE
CUPERTINO, CA 95014
Account Number:
September 2023 Statement
Tran Type Definitions
Account Summary
Total Deposit 0 00
Beginning Balance 21,593,220 02
Total Withdrawal:0.00 Ending Balance:21,593,220.02
139
CITY OF CUPERTINO
Agenda Item
23-12737 Agenda Date:
10/23/2023 Agenda #: 4.
Subject:INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse program
update
Receive the Internal Audit and Fraud, Waste, and Abuse program update
Presenter: Moss Adams
4:45(15)
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October 17, 2023
To: City of Cupertino Audit Committee
From: Moss Adams LLP
Subject: Internal Audit Status Report July 17 through October 17, 2023
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FY22-23 INTERNAL AUDIT PROGRAM ENTERPRISE RISK ASSESSMENT CITYWIDE POLICY REVIEW ONGOING INTERNAL AUDIT SERVICES
Objective Identify, analyze, and measure risks by the level of inherent vulnerability, the level of
preparedness to mitigate them, and the impact such negative events could have on
the City should they occur. This assessment serves as management’s and the internal
auditor’s basis for determining possible actions for managing and mitigating
uncertainty, both on an inherent and a residual basis, and informs the three-year
internal audit work program.
Inventory City policies in each department, identify gaps, and review
policies for opportunities for update and alignment with best practice.
Provide a prioritized implementation plan for policy update.
Manage the annual internal audit program.
Schedule December 2023 through April 2024 September 2023 through June 2024 July 2023 through June 2024
Activities for This Period None, Reviewed financial policy drafts Developed and presented 2024 internal audit program; monitored FWA
hotline; conducted regular status meetings with City.
Activities for Next Period Initiate project, conduct fieldwork. Develop prioritized work plan. Collect and inventory policies by
department/function. Continue to review draft policies and procedures at
the request of the City.
Continue to monitor FWA hotline and provide ongoing support to City.
Issues None None None
FRAUD, WASTE, AND ABUSE HOTLINE STATISTICS
Complaint Type Complaints Received This Quarter Under Review Referred to Appropriate City Official(s) Closed
Compliance & Ethics 1 0 1 1
Fraud 1 0 0 1
Employment Matters 1 0 1 1
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CITY OF CUPERTINO
Agenda Item
23-12738 Agenda Date:
10/23/2023 Agenda #: 5.
Subject:ACTION ITEM Review the OPEB and Pension Trust Investment Policy
Review and accept the OPEB and Pension Trust Investment Policy
Presenter: Jonathan Orozco, Finance Manager, and US Bank
5:00(10)
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AUDIT COMMITTEE STAFF REPORT
Meeting: October 23, 2023
Subject
Consider the OPEB and Pension Trust Investment Policies
Recommended Action
Review and accept the OPEB and Pension Trust Investment Policies
Discussion
Background
In Fiscal Year (FY) 2009-10, the City established a Section 115 Trust to help fund its retiree
health obligations, also known as other post-employment benefits (OPEB). In FY 2017-18,
the City also established a Section 115 Trust to pre-fund its pension obligations and reduce
the potential impact of pension cost volatility on the City's operating budget.
OPEB and Pension Trusts
Section 115 Trust Overview
A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre-
fund pension and retiree health costs. The benefits of a Section 115 Trust include the
following:
Local control over assets: The City controls the contributions, withdrawals,
investment strategy, and risk level of assets in the Trust.
Potential for higher investment returns than General Fund: Investment
requirements that apply to the City's General Fund assets under Government
Code 53601 are not applicable to Trust assets.
Pension rate stabilization: Assets can be transferred to CalPERS at the City 's
discretion to pay for Normal Cost or Unfunded Accrued Liability (UAL)
contributions and can be used to reduce or eliminate large fluctuations in the City's
pension costs.
Diversification: Trust assets will be diversified from CalPERS investments.
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OPEB Trust Overview
In FY 2009-10, the City established a Section 115 Trust to help fund its retiree health
obligations, also known as other post-employment benefits (OPEB). Compared to a pay-
as-you-go plan, the OPEB Trust allows the City to:
Grow assets to pay future OPEB benefits.
Earn higher returns than the General Fund.
Reduce its total cost for providing post-employment benefits.
Reduce its Net OPEB Liability.
In July 2010, the City contributed $7.0 million in initial funding. With additional
contributions of $12.3 million, total contributions to date are $19.3 million.
As of June 30, 2023, the City's OPEB Trust had a market value of $31.3 million and had
earned an annualized investment return of 6.18% gross of fees since inception.
Time Period Annualized Investment Return
1 Year 11.14%
5 Year 4.66%
Since Inception 6.18%
1-Year investment returns were impacted by financial market volatility due to heightened
geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal
Reserve’s pivot to a less accommodative monetary policy.
As of the June 30, 2023 measurement date, using a 6.5% discount rate, the City’s OPEB
plan had an accrued liability of $35.3 million and a market value of assets of $34.7 million,
resulting in an unfunded accrued liability of $.5 million and a funded ratio of 98.4%.
Compared to June 30, 2022, the unfunded accrued liability continued to increase and the
funded ratio decreased, primarily due to changes in actuarial assumptions.
June 30, 2021 June 30, 2022 June 30, 2023*
Accrued Liability 28,626,000 29,871,000 35,290,000
Market Value of Assets 38,025,000 31,340,000 34,708,000
Unfunded Accrued Liability (9,399,000) (1,469,000) 582,000
Funded Ratio 132.8% 104.9% 98.4%
*Amounts provided from Actuarial Report, as opposed to PARS provided.
Pension Trust Overview
Since pension obligations are one of the City's largest financial obligations, the City has
taken proactive steps to reduce the impacts of pension cost volatility. In March 2018, the
City provided options to Council for addressing rising pension costs. In April 2018, the
City presented a long-term pension funding strategy to the Fiscal Strategic Plan
Committee. In May 2018, the City adopted a Section 115 Trust, also known as a Pension
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Rate Stabilization Program (PRSP), to reduce pension rate volatility on the City's budget.
The Pension Trust helps the City to:
Grow assets for future pension contributions.
Invest assets over appropriate time horizons.
Earn higher investment returns than the General Fund.
Reduce pension contribution volatility.
Diversify funds from CalPERS investments.
As a fiscal sustainability measure, the City funds the Pension Trust using a more
conservative discount rate of 6.25%. The City's pension funding goal is to accumulate
sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7%
discount rate and achieve a funded status of 80% by FY 2036-37, 20 years from the
adoption of the Pension Trust. The City's projections indicated that it would need to
accumulate over $42 million in the Pension Trust within 20 years to achieve its pension
funding goal.
As a result, the funding strategy proposed $8.0 million in initial funding, along with
additional funding of $10.0 million over the first five years. To date, the City has
contributed $16.0 million, including:
$8.0 million in FY 2018-19
$4.0 million in FY 2019-20
$2.0 million in FY 2020-21
$2.0 million in FY 2021-22
As of June 30, 2023, the City's Pension Trust had a market value of $19.1 million and had
earned an annualized investment return of 5.62% gross of fees since inception.
Time Period Annualized Investment Return
1 Year 11.12%
Since Inception 5.62%
1-Year investment returns were impacted by financial market volatility due to heightened
geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal
Reserve’s pivot to a less accommodative monetary policy.
OPEB and Pension Trust Investment Policies
The Audit Committee is responsible for reviewing the OPEB and Pension Trust
investment policies annually, appointing investment managers, and monitoring
investment performance. The City Council is responsible for annually adopting the OPEB
and Pension Trust investment policies.
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It is not expected that the OPEB and Pension Trust investment policies will change
frequently. Short-term changes in the financial markets should not require adjustments to
the policies.
The Audit Committee last reviewed the policies on October 24, 2022, with City Council
adopting the policies on December 6, 2022.
Public Agency Retirement Services (PARS) is the City’s Trust Administrator and US Bank
is the City’s Investment Manager for the Pension and OPEB Trusts. The Investment
Manager manages the investments per the investment policies. Within the constraints
imposed by these policies, Investment Managers are expected to comply with all
applicable fiduciary and due diligence requirements under the “prudent investor” rules.
OPEB and Pension Trust Investment Objectives
The OPEB Trust has a “Balanced” investment objective with a target rate of return of
6.50%, and the Pension Trust has a “Balanced” investment objective with a target rate of
return of 6.25%. The “Balanced” investment objective is designed to provide a moderate
amount of current income with moderate growth of capital. Investors should have
sufficient tolerance for price and return volatility and substantial periodic declines in
investment value. This objective is recommended for investors with a long-term time
horizon. The strategic asset allocation ranges and tactical targets for this objective are
listed below:
Asset Class Range Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
The target rates of return are based on the long-term expected rate of return for assets in
the trusts and the City's time horizon for the investments.
With strong reserves and a fully funded OPEB plan, the City can maintain a long-term
investment horizon with a “balanced” investment objective. There may be periods of
substantial decline in investment value, and the portfolio should expect periodic
volatility. However, a 6.56% return on investment is expected over the long-term, based
on the current investment objective. More conservative investment objectives such as
“moderate” and “moderate-conservative” would expect less volatility and declines in
investment value; however, over the long term, they would also expect lower returns.
Many agencies anticipate needing to access the funds in their respective trusts sooner and
invest with more emphasis on preserving capital in the near term.
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The OPEB Trust has a higher discount rate than the Pension Trust because OPEB
investments are expected to have a longer time horizon. OPEB obligations are generally
longer in duration, and the City expects to withdraw Pension Trust funds earlier to fund
CalPERS contributions. Given that changes to the CalPERS discount rate have larger
effects on the City's operating budget and are farther out of the City's control, it is
important that the City be able to use the Trust to pay CalPERS contributions as needed.
Sustainability Impact
There is no sustainability impact.
Fiscal Impact
There is no direct fiscal impact at this time.
_____________________________________
Prepared by:
Reviewed by: Kristina Alfaro, Director of Administrative Services
Approved for Submission by: Matt Morley, Assistant City Manager
Attachments:
A – OPEB Trust Investment Policy
B – Pension Trust Investment Policy
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Other Post-
Employment Benefits
(OPEB) Investment
Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:
November 21, 2023
Responsible Department:
Administrative Services
Related Policies & Notes:
City Investment Policy, Pension Investment Policy
Overview
In response to the Government Accounting Standards Board (GASB) Statement No. 45,
replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements
for Other Post-employment Benefit (OPEB) Plans, the City of Cupertino has adopted a
Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible
employees
Executive Summary
Account Name: City of Cupertino OPEB Trust
Account Number: 6746035000
Investment Authority: Full Investment Authority
Current Assets: $33.6 m illion (September 2023)
Time Horizon: Long-Term
Target Rate of Return: 6.5%
Communication Schedule: Meetings will be conducted at least twice per year
U.S. Bank Portfolio Manager: Rick Rosenthal
richard.rosenthal@usbank.com
213-443-1848
U.S. Bank Relationship Manager : Ryan Maxey
ryan.maxey@usbank.com
503-464-3789
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Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate
growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial
periodic declines in investment value. This objective is recommended for investors with a long-term time
horizon.
The strategic asset allocation ranges and tactical targets for this objective are listed below:
Investment Guidelines
Overview
This document defines the investment policy, guidelines and performance objectives applicable
to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an
investment framework within which the assets can be actively yet prudently managed.
The purpose of this document is threefold.
First, it will set forth an investment structure for managing the Portfolio assets. This
structure is expected to produce an appropriate level of overall diversification and
total investment return over the investment time horizon.
Second, it will serve as to encourage effective communications between the
organization and parties involved with investment management decisions.
Third, these guidelines will provide a framework to measure ongoing investment
performance.
Within the constraints imposed by these policies, Investment Managers are expected to comply
with all applicable fiduciary and due diligence requirements under the “prudent investor” rules,
which state: “Investments shall be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the management of
their own affairs, not for speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived.” All applicable laws, rules and regulations
from various local, state, federal and international political entities that may impact the Portfolio
are to be adhered to.
Asset Class Range
Benchmark
Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
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Diversification
Your Portfolio Manager is responsible for maintaining the balance between the various asset
classes based on the investment objective’s strategic asset allocation. As a general policy, the
Investment Manager will maintain reasonable diversification at all times by asset class, credit
quality, issuer, sector, industry, and country.
The following parameters shall be adhered to in managing the portfolio:
Fixed Income Assets
The fixed income investments are to maintain intermediate -term average weighted
duration, between three-seven years.
At the time of purchase, no single fixed income issuer shall exceed 2% of the total market
value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.
The direct high-yield portion shall constitute no more than 10% of the total market value
of the Portfolio.
Hedged fixed income positions shall constitute no more than 10% of the total market
value of the Portfolio.
Equity & Growth Assets
The domestic equity investments are expected to be diversified at all times by size,
industry, sector, and style (Large Cap, Mid Cap, and Small Cap).
At the time of purchase, no individual equity security shall exceed 2% of the total market
value of the Portfolio.
The international equity investments (including emerging markets) shall constitute no
more than 20% of the total market value of the Portfolio
The real estate investments shall be captured through the use of diversified mutual
funds or ETFs investing in RE ITs; and shall constitute no more than 15% of the total
market value of the Portfolio .
The commodities investments shall be captured through the use of diversified mutual
funds or ETFs; and shall constitute no more than 10% of the total market value of the
Portfolio.
Hedged equity positions shall constitute no more than 10% of the total market value of
the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
Domestic Certificates of Deposit (rated A-1/P-1 or better)
Domestic Commercial Paper (rated A-1/P-1 or better)
Floating Rate Notes
Money Market Mutual Funds
U.S. Treasury Bonds, Bills and Notes
U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds
Treasury Inflation-Protected Securities (TIPS)
Municipal Bonds and Notes
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Corporate Bonds
Mortgage-Backed Bonds (MBS)
Asset-Backed Bonds (ABS)
High-Yield Bonds (rated B-/B3 or better)
Dollar denominated Foreign Bonds and Notes
Bond Mutual Funds
Equity Investments:
Common & Preferred Stocks
American Depository Receipts (ADRs)
Domestic and International Equity Mutual Funds (Open and Closed)
Emerging Market Equity Funds or Exchange Traded Funds (ETFs)
Alternative Investments:
Commodities Mutual Funds or Exchange Traded Notes (ETNs)
REIT Investment or Pooled Strategy or Fund of REITs
Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of
investments:
Partnerships unless investing in Master Limited Partnerships invested in a mutual fund
and limited in scope and allocation of Portfolio based on asset class limitations of table
above
Letter stock and other unregistered securities; physical commodities or other commodity
contracts; and short sales or margin transactions
Investments in the equity securities of any company with a record of less than three years
continuous operation, including the operation of any predecessor
Investments for the purpose of exercising control of management
Direct or indirect exposure to cryptocurrencies
Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income
positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies
(including this Policy).
b) Appoint Investment Managers who can be reasonably expected to adhere to the
investment guidelines and meet the investment objectives as established.
c) Monitor the investment performance of the Portfolio and compare actual investment
performance relative to an appropriate benchmark index given the stated investment
guidelines and objectives set forth in this Policy.
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d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and
performance annually or more frequently as the need arises.
e) Periodically review the Portfolio performance against objectives.
2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis.
3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the
Portfolio in accordance with the Policy including:
a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy
guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification
of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that
is subsequently downgraded and fails to meet the quality guidelines, along with a
recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year-to-date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of
investment performance to include an evaluation of the current and future investment
environment and potential impact of the investment environment on achievement of
investment objectives.
Investment Policy Statement Review
The City’s Audit Committee will review and the Cupertino City Council will adopt this
Investment Policy Statement at least annually to determine whether stated investment objectives
are still relevant and the continued feasibility of achieving the same. It is not expected that the
Policy will change frequently. In particular, short-term changes in the financial markets should
not require adjustments to the Policy.
If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious
to investment returns, they should communicate that information immediately to the City’s Audit
Committee.
City Manager’s signature: _______________________________
Date: _______________________________
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Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 10.24.2022
Director of Administrative Services’ signature: _______________________________
Date: _______________________________
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Pension Trust
Investment Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:
November 21, 2023
Responsible Department:
Administrative Services
Related Policies & Notes:
N/A
Investment Policy Statement
Overview
The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact
of pension cost volatility on the City’s operating budget. The City intends to use the Section 115
Trust to pre-fund pension costs and proactively address the unfunded liability. The City’s goal
is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years,
as well as fund the difference between a 7.0% and 6.25% discount rate.
Executive Summary
Account Name: City of Cupertino Pension Trust
Account Number: 6746050100
Investment Authority: Full Investment Authority
Current Assets: $18.5 Million (September 2023)
Time Horizon: Long-Term
Target Rate of Return: 6.25%
Communication Schedule: Meetings will be conducted at least twice per year
U.S. Bank Portfolio Manager: Rick Rosenthal
richard.rosenthal@usbank.com
213-359-7954
U.S. Bank Relationship Manager : Ryan Maxey
ryan.maxey@usbank.com
503-464-3789
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Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate
growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial
periodic declines in investment value. This objective is recommended for investors with a long-term time
horizon.
The strategic asset allocation ranges and tactical targets for this objective are listed below:
Investment Guidelines
Overview
This document defines the investment policy, guidelines and performance objectives applicable
to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an
investment framework within which the assets can be actively yet prudently managed.
The purpose of this document is threefold.
First, it will set forth an investment structure for managing the Portfolio assets. This
structure is expected to produce an appropriate level of overall diversification and
total investment return over the investment time horizon.
Second, it will serve as to encourage effective communications between the
organization and parties involved with investment management decisions.
Third, these guidelines will provide a framework to measure ongoing investment
performance.
Within the constraints imposed by these policies, Investment Managers are expected to comply
with all applicable fiduciary and due diligence requirements under the “prudent investor” rules,
which state: “Investments shall be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the management of
their own affairs, not for speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived.” All applicable laws, rules and regulations
from various local, state, federal and international political entities that may impact the Portfolio
are to be adhered to.
Asset Class Range
Benchmark
Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
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Diversification
Your Portfolio Manager is responsible for maintaining the balance between the various asset
classes based on the investment objective’s strategic asset allocation. As a general policy, the
Investment Manager will maintain reasonable diversification at all times by asset class, credit
quality, issuer, sector, industry, and country.
The following parameters shall be adhered to in managing the portfolio:
Fixed Income Assets
The fixed income investments are to maintain intermediate -term average weighted
duration, between three-seven years.
At the time of purchase, no single fixed income issuer shall exceed 2% of the total market
value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.
The direct high-yield portion shall constitute no more than 10% of the total market value
of the Portfolio.
Hedged fixed income positions shall constitute no more than 10% of the total market
value of the Portfolio
Equity & Growth Assets
The domestic equity investments are expected to be diversified at all times by size,
industry, sector, and style (Large Cap, Mid Cap, and Small Cap).
At the time of purchase, no individual equity security shall exceed 2% of the total market
value of the Portfolio.
The international equity investments (including emerging markets) shall constitute no
more than 20% of the total market value of the Portfolio
The real estate investments shall be captured through the use of diversified mutual
funds or ETFs investing in REITs; and shall constitute no more than 15% of the total
market va lue of the Portfolio .
The commodities investments shall be captured through the use of diversified mutual
funds or ETFs; and shall constitute no more than 10% of the total market value of the
Portfolio.
Hedged equity positions shall constitute no more than 10% of the total market value of
the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
Domestic Certificates of Deposit (rated A-1/P-1 or better)
Domestic Commercial Paper (rated A-1/P-1 or better)
Floating Rate Notes
Money Market Mutual Funds
U.S. Treasury Bonds, Bills and Notes
U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds
Treasury Inflation-Protected Securities (TIPS)
Municipal Bonds and Notes
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Corporate Bonds
Mortgage-Backed Bonds (MBS)
Asset-Backed Bonds (ABS)
High-Yield Bonds (rated B-/B3 or better)
Dollar denominated Foreign Bonds and Notes
Bond Mutual Funds
Equity Investments:
Common & Preferred Stocks
American Depository Receipts (ADRs)
Domestic and International Equity Mutual Funds (Open and Closed)
Emerging Market Equity Funds or Exchange Traded Funds (ETFs)
Alternative Investments:
Commodities Mutual Funds or Exchange Traded Notes (ETNs)
REIT Investment or Pooled Strategy or Fund of REITs
Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of
investments:
Partnerships unless investing in Master Limited Partnerships invested in a mutual fund
and limited in scope and allocation of Portfolio based on asset class limitations of table
above
Letter stock and other unregistered securities; physical commodities or other commodity
contracts; and short sales or margin transactions
Investments in the equity securities of any company with a record of less than three years
continuous operation, including the operation of any predecessor
Investments for the purpose of exercising control of management
Direct or indirect exposure to cryptocurrencies
Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income
positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies
(including this Policy).
b) Appoint Investment Managers who can be reasonably expected to adhere to the
investment guidelines and meet the investment objectives as established.
c) Monitor the investment performance of the Portfolio and compare actual investment
performance relative to an appropriate benchmark index given the stated investment
guidelines and objectives set forth in this Policy.
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5 | P a g e
d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and
performance annually or more frequently as the need arises.
e) Periodically review the Portfolio performance against objectives.
2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis.
3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the
Portfolio in accordance with the Policy including:
a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy
guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification
of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that
is subsequently downgraded and fails to meet the quality guidelines, along with a
recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year-to-date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of
investment performance to include an evaluation of the current and future investment
environment and potential impact of the investment environment on achievement of
investment objectives.
Investment Policy Statement Review
The City’s Audit Committee will review and the Cupertino City Council will adopt this
Investment Policy Statement at least annually to determine whether stated investment objectives
are still relevant and the continued feasibility of achieving the same. It is not expected that the
Policy will change frequently. In particular, short-term changes in the financial markets should
not require adjustments to the Policy.
If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious
to investment returns, they should communicate that information immediately to the City’s Audit
Committee.
City Manager’s signature: _______________________________
Date: _______________________________
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Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 10.24.2022
Director of Administrative Services’ signature: _______________________________
Date: _______________________________
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CITY OF CUPERTINO
Agenda Item
23-12739 Agenda Date:
10/23/2023 Agenda #: 6.
Subject:INFORMATIONAL ITEM Receive the Budget Format Review
Receive the Budget Format Review
Presenter: Thomas Leung, Budget Manager
5:10(10)
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CITY OF CUPERTINO
Agenda Item
23-12740 Agenda Date:
10/23/2023 Agenda #: 7.
Subject:INFORMATIONAL ITEM Receive the Annual Comprehensive Financial Report (ACFR) and
AUP Update
Receive the Annual Comprehensive Financial Report (ACFR) and AUP Update
Presenter: Jonathan Orozco, Finance Manager
5:20(15)
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CITY OF CUPERTINO
Agenda Item
23-12741 Agenda Date:
10/23/2023 Agenda #: 8.
Subject:INFORMATIONAL ITEM Consider the Audit Committee 2024 Schedule and Work Plan
Receive Audit Committee 2024 Schedule and Work Plan and provide direction to staff
Presenter: Jonathan Orozco, Finance Manager
5:35(10)
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January 22, 2024 April 22, 2024 July 22, 2024 October 28, 2024
Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes
OPEB & Pension Trust Performance Report for Quarter Ending
December 31, 2023
OPEB & Pension Trust Performance Report for Quarter Ending
March 31, 2024
OPEB & Pension Trust Performance Report for Quarter Ending
June 30, 2024
OPEB & Pension Trust Performance Report for Quarter
Ending September 30, 2024
Quarterly Treasurerʹs Investment Report Ending for Quarter
Ending December 31, 2023
Quarterly Treasurerʹs Investment Report for Quarter Ending
March 31, 2024
Quarterly Treasurerʹs Investment Report for Quarter Ending
June 30, 2024
Quarterly Treasurerʹs Investment Report for Quarter Ending
September 30, 2024
Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update
Annual Review of City Investment Policy Internal Audit Program Annual Review of OPEB and Pension Trust Investment
Policies
Internal Audit Program Update Interim Audit and AUP Engagements
Storm Drain Agreed Upon Procedures (AUP)
Source: Cupertino, CA Municipal Code, Chapter 2.88.100: Audit Committee
The powers and functions of the Audit Committee shall be as follows:
A: To review the annual audit report and management letter;
B: To recommend appointment of auditors;
C. To review the quarterly Treasurer’s Investment report;
D. To recommend a budget format;
E. To review City investment policies and internal controls of such policies.
F. To recommend appointment of internal auditors;
G. To review internal audit reports.
H. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 22-2243 § 1, 2023; Ord. 20-2208, § 1, 2020; Ord. 1679, § 1 (part), 1995)
CITY OF CUPERTINO ‐ AUDIT COMMITTEE 2024 SCHEDULE AND WORK PLAN
Summary of Duties – Powers – Responsibilities of
Cupertino Audit Committee
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