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AC 04-22-2024 Agenda PacketCITY OF CUPERTINO AUDIT COMMITTEE AGENDA 10300 Torre Avenue, City Hall Conference Room A Monday, April 22, 2024 4:00 PM Regular Meeting ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES 1.Subject: Approve Minutes of Special Meeting on March 21, 2024 Recommended Action: Approve Minutes of Special Meeting on March 21, 2024 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 the Internal Audit and Fraud, Waste, and Abuse programs update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Moss Adams 4:15(10) A - City of Cupertino Internal Audit Status Report 04-15-24 3.Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Page 1 1 Audit Committee Agenda April 22, 2024 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Presenter: PARS and US Bank 4:25(15) A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending December 31 2023 B - OPEB Pension Section 115 Trust Performance Report for Quarter Ending March 31 2024 4.Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 and March 31, 2024 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 and March 31, 2024 Presenter: Jonathan Orozco, Finance Manager and Chandler 4:40(15) Staff Report A – Chandler Investment Report March 2024 B – Chandler Custodial Statement March 2024 C – PARS Pension and OPEB Account Statement March 2024 D – LAIF Account Statement March 2024 E - Treasurer's Investment Report for the Quarter Ending December 31, 2023 5.Subject: INFORMATIONAL ITEM Annual Review of the City’s Investment Policy Recommended Action: Annual Review of the City’s Investment Policy Presenter: Jonathan Orozco, Finance Manager, and Chandler 4:55(10) Staff Report A - Cupertino Investment Policy (redline) B - Cupertino Investment Policy Statement Review Memo 6.Subject: INFORMATIONAL ITEM Update on FY 2022-23 ACFR and Supplemental Reports Recommended Action: Update on FY 2022-23 ACFR and Supplemental Reports Presenter: Jonathan Orozco, Finance Manager 5:05(15) A - ACFR - TPG Memo 7.Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2024 Schedule and Workplan Recommended Action: Receive the proposed Audit Committee 2024 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:20(10) A - Proposed Audit Committee 2024 Schedule and Work Plan Page 2 2 Audit Committee Agenda April 22, 2024 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 24-13115 Agenda Date: 4/22/2024 Agenda #: 1. Subject: Approve Minutes of Special Meeting on March 21, 2024 Approve Minutes of Special Meeting on March 21, 2024 CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™4 Page 1 City of Cupertino Audit Committee Special Meeting Minutes March 21, 2024 CALL TO ORDER At 4:00 p.m., Chair Chen called the special meeting to order in the City of Cupertino Conference Room A, 10300 Torre Avenue. ROLL CALL Committee Members Present: Chair Eno Schmidt, Vice Chair Sheila Mohan, Committee member Angela Chen, Committee member Hanyan Wu, Committee member Hung Wei City Staff Present: Kristina Alfaro, Thomas Leung, Janet Liang, Matt Morley, Jonathan Orozco Absent: Guests: Carlos Oblites (Chandler), Colleen Rozillis (Moss Adams), Chelsea Ritchie (Moss Adams), Sophia Kuo (The Pun Group), Kenneth Pun (The Pun Group), Ryan Maxey (U.S. Bank), Jennifer Meza (PARS), Dennis Mullins (U.S. Bank) ORDERS OF THE DAY 1. APPROVE MINUTES OF REGULAR MEETING ON OCTOBER 23, 2023 Vice Chair Mohan motioned; Chair Chen seconded. No public comment. The motion passes unanimously. POSTPONEMENTS ORAL COMMUNICATIONS Peggy Griffin provided comments. NEW BUSINESS 2. Appointment of Audit Committee Chair and Vice Chair Chair Chen nominated Committee member Schmidt as Chair and Vice Chair Mohan to continue as Vice Chair. Committee member Wei seconded. The motion passes unanimously. No public comment. 3. Receive the Committee’s Roles and Responsibilities (CMC 2.88.100) Orozco provided an overview of the report. No Public Comment. 5 Page 2 4. Receive PARS Presentation Meza provided an overview of PARS. Mullins provided an overview of PFM Asset Management. Chair Schmidt asked when the change was effective. Mullins confirmed that it was effective July 1, 2023. Chair Schmidt asked if they follow the city’s procedures and policy. Mullins confirmed that PFM Management is a wholly owned subsidiary of U.S. Bank and allowed them to keep all existing paperwork. No public comment. 5. Receive Chandler Investments Presentation Oblites provided an overview of Chandler. Chair Schmidt asked how often are cash needs updated. Oblites noted that they communicate with the city no less than a quarterly basis and the analysis is revisited every year as they are long-term decisions. Chair Schmidt noted that relative to the benchmark the duration is much shorter, and is it related to the cash needs. Oblites confirmed and one of the communications with staff is that there may be an increased need for available cash for financial reasons and as a result the strategy was revisited to generate cash and lowering the duration target to make sure there is cash available. Committee member Wu asked about the fee structure with Chandler and PFM. Orozco noted that it is negotiated within the contract. Oblites added that it is a fixed fee based on assets that they manage and averages around 5 (0.05%) or 6 (0.06%) basis points, less than a tenth of the percentage per year. Committee member Wei asked if the investments they do for the city has rules to follow with CA government codes. Oblites confirmed. Committee member Wei asked about the cash flow and if it is done once a year with the City. Oblites noted that Chandler is in communication with staff and the city is focused on building up cash due to a tax event that the city is facing resulting in a need to build up cash. Committee member Chen asked with all the changes in the market, how does Chandler plan to adjust the investment strategy. Oblites noted that reports are provided monthly and quarterly, and they anticipate that the Federal Reserve will be lowering interest rates later in the year. Peggy Griffin provided public comment. Rhonda Fry provided public comment. Orozco noted that the fees from Chandler are remitted to the custodian, which is paid directly to them, the City does not directly pay them. He added that the City is working on looking into the BMR transactions. Vice Chair Mohan asked if the investments follow a benchmark and what is included in the benchmarks. Oblites noted that the biggest driver of risk and return in this portfolio is the duration and measures the sensitivity of the market value of the portfolio to a given interest rate shift. As a result, a benchmark is selected with a similar duration and is shifting to a 1-3 year treasury and agency benchmark. 6 Page 3 6. Receive The Pun Group Presentation Pun provided an overview of The Pun Group. Chair Schmidt asked if they are getting cooperation from the previous auditor in terms of getting the necessary documents. Pun noted that they have a good relationship and are getting the necessary information. Committee member Wu asked if the external audit has identified issues and how does the oversight work. Pun noted that if there are any findings there is always a follow-up in the next audit and every 3 years a CPA firm goes through peer review. Vice Chair Mohan asked when will the first draft be expected. Orozco noted that it will come at the next Audit Committee meeting. No public comment. 7. Receive Moss Adams Presentation Rozillis provided an overview on Moss Adams. Ritchie provided an overview. Chair Schmidt asked what the volume for FWA is. Rozillis noted that the hotline activity is consistent, a couple of reports a month. Committee member Chen asked if they can include how many of the issues get addressed and how long it takes to get addressed into the report. Rozillis noted that the report identifies closed reports. Peggy Griffin provided public comment. 8. Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Alfaro provided an overview. Rhoda Fry provided public comment. 9. Budget Format Review Alfaro provided an overview. Committee member Wei asked how often is it best practice to look at the budget format. Alfaro noted that it is reviewed every year and is submitted for budget awards. Peggy Griffin provided public comment. 10. Receive the proposed Audit Committee 2024 Schedule and Workplan Orozco presented the committee's work plan. Peggy Griffin provided public comment. STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING 7 Page 4 ADJOURNMENT The meeting adjourned at 6:15 p.m. Recording Secretary: Janet Liang, Management Analyst 8 CITY OF CUPERTINO Agenda Item 24-13116 Agenda Date: 4/22/2024 Agenda #: 2. Subject:INFORMATIONAL ITEM Receive the Internal Audit and Fraud,Waste,and Abuse programs update Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Moss Adams 4:15(10) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™9 April 15, 2024 To: City of Cupertino Audit Committee From: Moss Adams LLP Subject: Internal Audit Status Report January 15, 2024 through April 15, 2024 _____ FY22-23 INTERNAL AUDIT PROGRAM ENTERPRISE RISK ASSESSMENT CITYWIDE POLICY REVIEW ONGOING INTERNAL AUDIT SERVICES Objective To identify, analyze, and measure the City’s overarching areas of risk 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 May 2024 September 2023 through June 2024 July 2023 through June 2024 Activities for This Period • Collected and reviewed data and documents from the City • Scheduled and conducted interviews with City staff and Council • Administered an all-staff survey • Drafted and finalized preliminary risk ratings and observations and reviewed them with management Collected and inventoried policies for the following departments/function: • Council and Commission • Parks and Recreation • Information Technology. • Administrative Services • City Manager’s Office • Public Works Provided initial feedback to the departments/functions listed above based on the policies that have been received. Met biweekly with City staff, monitored FWA hotline, and provided assistance at the City’s request. Activities for Next Period • Review additional data and documents from the City • Analyze survey results • Draft the final report and review it with management • Finalize and present the final report • Incorporate feedback from departments/functions into policy review. • Draft final report and review it with management • Finalize and present the final report Continue to monitor FWA hotline and provide ongoing support to City. Issues None None None 10 FRAUD, WASTE, AND ABUSE HOTLINE STATISTICS: QUARTERLY Complaint Type Complaints Received This Quarter Under Review Referred to Appropriate City Official(s) Closed Compliance & Ethics 6 3 6 3 Fraud 0 0 0 0 Employment Matters 0 0 0 0 HOTLINE STATISTICS: LIFETIME (OCTOBER 2022-PRESENT) Total Reports 18 Reports Closed 15 Reports Open 3 \ 11 CITY OF CUPERTINO Agenda Item 24-13117 Agenda Date: 4/22/2024 Agenda #: 3. Subject:INFORMATIONAL ITEM Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Presenter: PARS and US Bank 4:25(15) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™12 City of Cupertino PARS 115 Trust – OPEB Prefunding Program & Pension Rate Stabilization Program Plan Client Review As of December 31, 2023 13 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 14 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 Reimburse agency; or Pay benefits provider Pension Rate Stabilization Program Prefund Pension (PRSP)GASB 68 Pension 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 15 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 December 31, 2023 16 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 4517 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 SUMMARY Section 3 – DISCLOSURES, DEFINITIONS, DESCRIPTIONS Page 3 of 4518 U.S. Bank Confidential PORTFOLIO REVIEW 19 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $37,032,790 Net Realized Cap Gains YTD $357,150 Annual Income Projected $948,700 Current Yield 2.56% Number of Securities 10 Portfolio Mgr.Rick Rosenthal Portfolio Asset Allocation Equity $23,848,495 64.40% Fixed Income $10,626,771 28.70% Real Assets $1,463,767 3.95% Cash $1,093,757 2.95% Invested Total $37,032,790 100.00% 64% 29% 4% 3% 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 45 20 PARS/CITY OF CUPERTINO 115P -OPEB Equity Overview Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 12/29/2023 © 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: 12/29/2023 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $23,848,495 Current Yield 1.91% Annual Income Projected $455,967 Number of Securities 6 Portfolio Mgr.Rick Rosenthal Equity Asset Allocation Large Cap U.S.$10,950,323 45.92% Developed Markets $4,447,538 18.65% Mid Cap U.S.$4,386,842 18.39% Emerging Markets $2,234,248 9.37% Small Cap U.S.$1,829,544 7.67% 46% 19% 18% 9% 8% Large Cap U.S.Developed Markets Mid Cap U.S.Emerging Markets Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) HNACXFSPSXFSMDXJVLIXFSSNXFPADXBOSOXBEXIX -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 71.41% 14.11% 12.82% 0.81% 0.57% 0.27% Equity Country Distribution United States Japan France United Kingdom Hong Kong 70.44% 4.10% 3.08% 3.07% 2.28% Page 6 of 45 21 PARS/CITY OF CUPERTINO 115P - OPEB Common Stock Detail Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 12/29/2023 © 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: 12/29/2023 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) Microsoft Corporation 1.83 1.20 0.77 58.2 57.4 NVIDIA Corporation 1.78 1.17 0.03 239.0 239.3 Amazon.com, Inc.1.64 1.08 0.00 80.9 80.5 Alphabet Inc. Class A 1.28 0.84 0.00 58.3 57.9 Apple Inc.1.12 0.74 0.52 49.0 49.4 Advanced Micro Devices, Inc.1.12 0.74 0.00 127.6 127.4 JPMorgan Chase & Co.0.95 0.62 2.48 30.6 31.5 Tesla, Inc.0.95 0.62 0.00 101.7 104.0 Eli Lilly and Company 0.82 0.54 0.81 60.9 60.4 Meta Platforms Inc. Class A 0.82 0.54 0.00 194.1 194.3 Common Stock Characteristics Portfolio S&P 500 Market Cap - Wtd Avg $265.3B $721.6B Market Cap - Median $4.8B $33.2B Dividend Yield (%)1.82 1.48 P/E NTM 16.7 19.7 P/E LTM 18.1 23.8 ROE (%)17.3 23.7 1 Yr Beta vs. S&P Composite .91 1.03 Est 3-5 Yr EPS Growth (%)14.4 13.1 Hist 3 Yr EPS Growth (%)21.0 19.9 Number of Securities 5134 503 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% 35% 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 6.12 8.58 12.29 10.85 5.17 6.16 4.48 3.89 14.97 12.97 11.65 12.62 12.35 8.81 18.29 28.86 3.86 2.41 8.62 2.52 2.19 2.34 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 45 22 PARS/CITY OF CUPERTINO 115P -OPEB Fixed Income Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $10,626,771 Current Yield 3.65% Annual Income Projected $388,213 Number of Securities 2 Portfolio Mgr.Rick Rosenthal Fixed Income Asset Allocation Investment Grade $8,791,883 82.73% High Yield $1,834,888 17.27% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $10,626,771 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 0 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 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 12,000,000 Page 8 of 45 23 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 64.3%63%50%‐70%MSCI AC World Free IndexEquities 28.8%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 3.0%1%0%‐10%FTSE 3‐Mo US T‐Bill IndexCash CITY OF CUPERTINO Page 9 of 4524 Selected Period Performance Period Ending: 12/31/2023PARS/CITY OF CUPERTINO OPEB AGG (****60596) Inception to Date Market Value 3 Months 1 Year 3 Years 5 Years 116 Months 07/01/2010 Total Portfolio Gross of Fees 37,071,683 10.30 17.58 2.26 7.85 5.67 6.47 Total Portfolio Net of Fees 37,071,683 10.26 17.37 2.08 7.65 5.46 City of Cupertino 9.95 16.43 3.00 8.27 5.50 7.13 Total Equity 23,848,495 11.95 23.31 3.76 12.31 8.97 11.20 MSCI ACWI (Net)11.03 22.20 5.75 11.72 7.98 9.77 U.S. Equity 17,166,709 12.78 26.88 6.74 13.25 10.54 S&P 500 Index (Total Return)11.69 26.29 10.00 15.69 12.18 14.22 S&P MidCap 400 Index 11.67 16.44 8.09 12.62 9.45 12.36 S&P SmallCap 600 Index 15.12 16.05 7.28 11.03 9.16 12.41 Developed Markets Equity 4,447,538 10.74 18.30 -.95 13.88 6.91 MSCI EAFE Index (Net)10.42 18.24 4.02 8.16 4.20 6.66 Emerging Markets Equity 2,234,248 7.68 6.92 -9.35 1.97 .58 MSCI Emerging Markets Index (Net)7.86 9.83 -5.08 3.68 2.77 3.29 Total Fixed Income 10,661,464 6.66 6.81 -1.84 .33 .64 1.64 BBARC Global Aggregate Index 8.10 5.72 -5.51 -.32 .03 1.24 BBARC US Aggregate Bond Index 6.82 5.53 -3.31 1.10 1.59 2.15 Total Real Assets 1,463,767 16.33 13.73 6.24 6.79 Real Estate 1,463,767 16.33 13.73 6.24 6.74 6.06 S&P Global REIT Index (Gross)15.81 11.53 4.13 5.25 4.89 8.09 S&P GSCI Index -10.73 -4.27 19.18 8.72 -4.09 -1.36 Total Cash Equivalents 1,097,958 1.33 4.99 2.14 1.75 1.18 .85 ICE BofAML US 3-Month Treasury Bill Index 1.37 5.01 2.15 1.88 1.29 .95 Pending Cash 0 .00 .00 .00 .00 .00 .00 Page 10 of 4525 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 37,032,790 33,020,233 4,012,558 2.56 948,700 Cash 2.95 1,093,757 1,093,757 0 5.30 57,956 Cash Equivalents 2.95 1,093,757 1,093,757 0 5.30 57,956 FIRST AM GOVT OB FD CL X 31846V336 2.95 1.00 1,093,757 1,093,757 1,093,757 0 5.30 57,956 Fixed Income 28.70 10,626,771 9,457,131 1,169,641 3.65 388,213 Investment Grade 23.74 8,791,883 7,488,385 1,303,498 2.88 252,883 Mutual Funds & ETFs 23.74 8,791,883 7,488,385 1,303,498 2.88 252,883 Fidelity U.S. Bond Index Fund FXNAX 23.74 10.43 842,942 8,791,883 7,488,385 1,303,498 2.88 252,883 High Yield 4.95 1,834,888 1,968,746 -133,858 7.38 135,331 Mutual Funds & ETFs 4.95 1,834,888 1,968,746 -133,858 7.38 135,331 Artisan High Income Fund -Institutional Sh…APHFX 4.95 9.03 203,199 1,834,888 1,968,746 -133,858 7.38 135,331 Equity 64.40 23,848,495 20,863,544 2,984,951 1.91 455,967 Large Cap U.S. Equity 29.57 10,950,323 11,121,411 -171,088 0.55 60,508 Mutual Funds & ETFs 29.57 10,950,323 11,121,411 -171,088 0.55 60,508 Harbor Capital Appreciation Fund -Retire…HNACX 14.72 96.76 56,351 5,452,563 5,185,625 266,938 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 14.85 22.17 247,982 5,497,760 5,935,786 -438,026 1.10 60,508 Mid Cap U.S. Equity 11.85 4,386,842 1,551,236 2,835,606 1.39 61,079 Mutual Funds & ETFs 11.85 4,386,842 1,551,236 2,835,606 1.39 61,079 Fidelity Mid Cap Index Fund FSMDX 11.85 29.95 146,472 4,386,842 1,551,236 2,835,606 1.39 61,079 Small Cap U.S. Equity 4.94 1,829,544 1,679,816 149,728 1.43 26,230 Mutual Funds & ETFs 4.94 1,829,544 1,679,816 149,728 1.43 26,230 Fidelity Small Cap Index Fund FSSNX 4.94 25.04 73,065 1,829,544 1,679,816 149,728 1.43 26,230 Developed Markets Equity 12.01 4,447,538 4,354,616 92,922 5.58 248,348 Mutual Funds & ETFs 12.01 4,447,538 4,354,616 92,922 5.58 248,348 Fidelity International Index Fund FSPSX 12.01 47.35 93,929 4,447,538 4,354,616 92,922 5.58 248,348 Emerging Markets Equity 6.03 2,234,248 2,156,464 77,784 2.68 59,802 Mutual Funds & ETFs 6.03 2,234,248 2,156,464 77,784 2.68 59,802 Fidelity Emerging Markets Index Fund FPADX 6.03 10.05 222,313 2,234,248 2,156,464 77,784 2.68 59,802 Real Assets 3.95 1,463,767 1,605,801 -142,034 3.18 46,563 U.S. Listed Real Estate 3.95 1,463,767 1,605,801 -142,034 3.18 46,563 Page 11 of 45 26 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 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 3.95 54.29 26,962 1,463,767 1,605,801 -142,034 3.18 46,563 Page 12 of 45 27 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $20,367,491 Net Realized Cap Gains YTD $-37,779 Annual Income Projected $521,773 Current Yield 2.56% Number of Securities 10 Portfolio Mgr.Rick Rosenthal Portfolio Asset Allocation Equity $13,116,298 64.40% Fixed Income $5,844,595 28.70% Real Assets $805,012 3.95% Cash $601,586 2.95% Invested Total $20,367,491 100.00% 64% 29% 4% 3% 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 13 of 45 28 PARS/CITY OF CUPERTINO 115P-PENSION Equity Overview Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 12/29/2023 © 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: 12/29/2023 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $13,116,298 Current Yield 1.91% Annual Income Projected $250,775 Number of Securities 6 Portfolio Mgr.Rick Rosenthal Equity Asset Allocation Large Cap U.S.$6,022,506 45.92% Developed Markets $2,446,076 18.65% Mid Cap U.S.$2,412,694 18.39% Emerging Markets $1,228,801 9.37% Small Cap U.S.$1,006,221 7.67% 46% 19% 18% 9% 8% Large Cap U.S.Developed Markets Mid Cap U.S.Emerging Markets Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) HNACXFSPSXFSMDXJVLIXFSSNXFPADXBOSOXBEXIX -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 71.41% 14.11% 12.82% 0.81% 0.57% 0.27% Equity Country Distribution United States Japan France United Kingdom Hong Kong 70.44% 4.10% 3.08% 3.07% 2.28% Page 14 of 45 29 PARS/CITY OF CUPERTINO 115P- PENSION Common Stock Detail Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 12/29/2023 © 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: 12/29/2023 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) Microsoft Corporation 1.83 1.20 0.77 58.2 57.4 NVIDIA Corporation 1.78 1.17 0.03 239.0 239.3 Amazon.com, Inc.1.64 1.08 0.00 80.9 80.5 Alphabet Inc. Class A 1.28 0.84 0.00 58.3 57.9 Apple Inc.1.12 0.74 0.52 49.0 49.4 Advanced Micro Devices, Inc.1.12 0.74 0.00 127.6 127.4 JPMorgan Chase & Co.0.95 0.62 2.48 30.6 31.5 Tesla, Inc.0.95 0.62 0.00 101.7 104.0 Eli Lilly and Company 0.82 0.54 0.81 60.9 60.4 Meta Platforms Inc. Class A 0.82 0.54 0.00 194.1 194.3 Common Stock Characteristics Portfolio S&P 500 Market Cap - Wtd Avg $265.3B $721.6B Market Cap - Median $4.8B $33.2B Dividend Yield (%)1.82 1.48 P/E NTM 16.7 19.7 P/E LTM 18.1 23.8 ROE (%)17.3 23.7 1 Yr Beta vs. S&P Composite .91 1.03 Est 3-5 Yr EPS Growth (%)14.4 13.1 Hist 3 Yr EPS Growth (%)21.0 19.9 Number of Securities 5134 503 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% 35% 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 6.12 8.58 12.29 10.85 5.17 6.16 4.48 3.89 14.97 12.97 11.65 12.62 12.35 8.81 18.29 28.86 3.86 2.41 8.62 2.52 2.19 2.34 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 15 of 45 30 PARS/CITY OF CUPERTINO 115P-PENSION Fixed Income Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $5,844,595 Current Yield 3.65% Annual Income Projected $213,514 Number of Securities 2 Portfolio Mgr.Rick Rosenthal Fixed Income Asset Allocation Investment Grade $4,835,398 82.73% High Yield $1,009,197 17.27% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $5,844,595 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 0 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 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 6,000,000 Page 16 of 45 31 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 64.3%63%50%‐70%MSCI AC World Free IndexEquities 28.8%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 3.0%1%0%‐10%FTSE 3‐Mo US T‐Bill IndexCash CITY OF CUPERTINO Page 17 of 4532 Selected Period Performance Period Ending: 12/31/2023PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Inception to Date Market Value 3 Months 1 Year 3 Years 05/01/2019 Total Portfolio Gross of Fees 20,388,904 10.30 17.58 2.20 6.53 Total Portfolio Net of Fees 20,388,904 10.26 17.37 2.01 6.34 City of Cupertino 9.95 16.43 3.00 6.34 Total Equity 13,116,298 11.95 23.31 3.76 9.51 MSCI ACWI (Net)11.03 22.20 5.75 9.09 U.S. Equity 9,441,421 12.78 26.88 6.73 10.42 S&P 500 Index (Total Return)11.69 26.29 10.00 12.77 S&P MidCap 400 Index 11.67 16.44 8.09 9.40 S&P SmallCap 600 Index 15.12 16.05 7.28 8.37 Developed Markets Equity 2,446,076 10.74 18.30 -.95 10.72 MSCI EAFE Index (Net)10.42 18.24 4.02 5.95 Emerging Markets Equity 1,228,801 7.68 6.92 -9.35 -.16 MSCI Emerging Markets Index (Net)7.86 9.83 -5.08 1.41 Total Fixed Income 5,863,703 6.66 6.81 -1.85 -.51 BBARC Global Aggregate Index 8.10 5.72 -5.51 -.74 BBARC US Aggregate Bond Index 6.82 5.53 -3.31 .55 Total Real Assets 805,012 16.33 13.73 6.31 4.32 Real Estate 805,012 16.33 13.73 6.31 4.32 S&P Global REIT Index (Gross)15.81 11.53 4.13 2.71 S&P GSCI Index -10.73 -4.27 19.18 5.51 Total Cash Equivalents 603,891 1.33 4.99 2.10 1.69 ICE BofAML US 3-Month Treasury Bill Index 1.37 5.01 2.15 1.84 Pending Cash 0 .00 .00 .00 .00 Page 18 of 4533 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 20,367,491 19,133,556 1,233,934 2.56 521,773 Cash 2.95 601,586 601,586 0 5.30 31,877 Cash Equivalents 2.95 601,586 601,586 0 5.30 31,877 FIRST AM GOVT OB FD CL X 31846V336 2.95 1.00 601,586 601,586 601,586 0 5.30 31,877 Fixed Income 28.70 5,844,595 5,939,483 -94,888 3.65 213,514 Investment Grade 23.74 4,835,398 4,869,170 -33,772 2.88 139,081 Mutual Funds & ETFs 23.74 4,835,398 4,869,170 -33,772 2.88 139,081 Fidelity U.S. Bond Index Fund FXNAX 23.74 10.43 463,605 4,835,398 4,869,170 -33,772 2.88 139,081 High Yield 4.95 1,009,197 1,070,313 -61,116 7.38 74,432 Mutual Funds & ETFs 4.95 1,009,197 1,070,313 -61,116 7.38 74,432 Artisan High Income Fund -Institutional Sh…APHFX 4.95 9.03 111,760 1,009,197 1,070,313 -61,116 7.38 74,432 Equity 64.40 13,116,298 11,731,424 1,384,874 1.91 250,775 Large Cap U.S. Equity 29.57 6,022,506 5,923,792 98,714 0.55 33,278 Mutual Funds & ETFs 29.57 6,022,506 5,923,792 98,714 0.55 33,278 Harbor Capital Appreciation Fund -Retire…HNACX 14.72 96.76 30,992 2,998,824 2,710,461 288,363 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 14.85 22.17 136,386 3,023,682 3,213,332 -189,650 1.10 33,278 Mid Cap U.S. Equity 11.85 2,412,694 1,352,237 1,060,457 1.39 33,592 Mutual Funds & ETFs 11.85 2,412,694 1,352,237 1,060,457 1.39 33,592 Fidelity Mid Cap Index Fund FSMDX 11.85 29.95 80,557 2,412,694 1,352,237 1,060,457 1.39 33,592 Small Cap U.S. Equity 4.94 1,006,221 923,873 82,348 1.43 14,426 Mutual Funds & ETFs 4.94 1,006,221 923,873 82,348 1.43 14,426 Fidelity Small Cap Index Fund FSSNX 4.94 25.04 40,185 1,006,221 923,873 82,348 1.43 14,426 Developed Markets Equity 12.01 2,446,076 2,345,501 100,576 5.58 136,588 Mutual Funds & ETFs 12.01 2,446,076 2,345,501 100,576 5.58 136,588 Fidelity International Index Fund FSPSX 12.01 47.35 51,659 2,446,076 2,345,501 100,576 5.58 136,588 Emerging Markets Equity 6.03 1,228,801 1,186,021 42,780 2.68 32,890 Mutual Funds & ETFs 6.03 1,228,801 1,186,021 42,780 2.68 32,890 Fidelity Emerging Markets Index Fund FPADX 6.03 10.05 122,269 1,228,801 1,186,021 42,780 2.68 32,890 Real Assets 3.95 805,012 861,064 -56,052 3.18 25,608 U.S. Listed Real Estate 3.95 805,012 861,064 -56,052 3.18 25,608 Page 19 of 45 34 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/29/2023 © 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: 12/29/2023 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 3.95 54.29 14,828 805,012 861,064 -56,052 3.18 25,608 Page 20 of 45 35 U.S. Bank Confidential MARKET SUMMARY Provided by Sub-Advisor - PFM Asset Management LLC 36 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management THE ECONOMY ►In the third quarter, U.S. gross domestic product (GDP) grew at an annualized rate of 4.9%, marking the strongest growth since the fourth quarter of 2021, as resilient consumer spending drove the economy. This is above global growth estimates of 3.0%, which have been buoyed by emerging markets (EM) and developing economies. ►The U.S. labor market remains strong, ending the quarter with 3.7% unemployment rate that is in line with September’s reading and a 62.5% participation rate, which is a slight decrease from last quarter. The number of job openings to unemployed ratio fell to 1.40, down from its high of 2.0 in 2022. ►Headline inflation (CPI) cooled over the quarter, with a year-over-year (YoY) rate of 3.1% in November, down from 3.7% at the end of the second quarter. These cooler readings came in large part from falling energy prices which dropped 5.4% in November, the less volatile core inflation reading (which excludes food and energy) still tells the same story of cooling over the quarter but shows a slightly higher level of inflation at 4.0% YoY. ►Through the strong labor market and continued growth, consumer confidence saw relative improvement. The Michigan Consumer Sentiment survey ended the quarter at 69.7, up 8.4 year-to-date, though below the long-term average. Consumers savings and income standpoint 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 25-53 Years 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 58% 60% 62% 64% Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 U.S. Inflation Rate Source: Bureau of Labor Statistics. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Dec-19 Dec-20 Dec-21 Dec-22 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 22 of 45 37 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management WHAT WE’RE WATCHING ►After a total of four hikes this year, the final quarter closed out with the Federal Open Market Committee (FOMC) on pause with member expectations that the policy rate is at or near its peak. Looking forward, the median dot plot projection shows 75 basis points (bps) of cuts for 2024 as inflation and economic growth slow. Globally, most major central banks also held rates steady, with European Central Bank (ECB) and Bank of England (BOE) both pausing despite increasing pressure from poor economic growth. ►The U.S. saw manufacturing conditions worsen during the quarter as ISM U.S. Manufacturing fell to 47.4 in December, marking the fourteenth month of contractionary readings as producers saw diminishing demand for their goods, amid high borrowing costs and continued inflation. Services weakened slightly over the quarter but remain expansionary at 50.6. ►Globally, conditions varied. The HCOB Eurozone manufacturing PMI improved over the quarter but remained in sharply contractionary territory, at 44.4. The Eurozone services PMI continued to struggle, remaining flat at 48.8 for year end. Meanwhile, China’s Caxin manufacturing PMI inched up over the quarter, with an expansionary reading of 50.8 after a dip into contractionary in October. China’s services sectors saw a rebound over the quarter as the Caixin Service PMI rose to 52.9, marking the fastest expansion since July as new business grew solidly. Global Central Bank Rates Source: Bloomberg. U.S. ISM Manufacturing & Services PMI Source: Bloomberg. 40 45 50 55 60 65 70 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Manufacturing Services 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Fed Target Rate ECB Target RateBank of England Target Rate Bank of Canada Target Rate University of Michigan Consumer Sentiment Source: Bloomberg. 0 20 40 60 80 100 Dec-19 Dec-20 Dec-21 Dec-22 Dec-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 23 of 45 38 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management DOMESTIC EQUITY ►The S&P 500 Index (S&P) posted an 11.69% return for the fourth quarter of 2023. As of December 31, 2023, the trailing 1-year return for the index was 26.29%. ►After being dominated by the Magnificent Seven for the first three quarters of the year, domestic equity markets saw a broadening of performance, as indicated by the S&P 500 Equal-Weighted index performing in line with the market capitalization-weighted index for the fourth quarter. Throughout the year, the equal-weighted index had significantly lagged the market capitalization-weighted index. ►Within S&P 500, the only GICS sector to post a negative return for the quarter was Energy (-6.99%). The next worst performers were Consumer Staples (5.54%) and Healthcare (6.41%). The sectors that led performance over the quarter were Real Estate (18.83%), Information Technology (17.17%) and Financials (13.98%). ►Small-caps, as represented by the Russell 2000 Index, returned 14.03% during the quarter, outperforming mid- and large-caps. The Russell Midcap and Russell 1000 indices returned 12.82% and 11.96%, respectively. ►According to FactSet Earnings Insight (as of December 18, 2023), the expected YoY earnings growth rate for S&P 500 for calendar year 2023 is 0.6%, which is below the 10-year average of 8.4%. ►As of the end of the quarter, the S&P 500 P/E ratio was 23.85, above its 5-year average of 21.91. By comparison, the S&P 600, which represents small-cap stocks, had a P/E ratio of 16.0, below its 5-year average of 16.96. 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 December 31, 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 12.42%5.54%-6.99%13.98%6.41%13.00% 17.17%9.69%18.83% 10.95%8.56% YTD 42.30%0.52%-1.42%12.10%2.06%18.08% 57.84% 12.55% 12.27% 55.80%-7.08% 1 Year 42.30%0.52%-1.42%12.10%2.06%18.08% 57.84% 12.55% 12.27% 55.80%-7.08% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 0 5 10 15 20 25 30 10 15 20 25 30 35 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 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 24 of 45 39 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management NON-U.S. EQUITY ►Markets outside of the United States, as measured by the MSCI ACWI ex-U.S. Index, underperformed their U.S. counterparts, returning 9.75% for the quarter. ►Developed ex-U.S. Markets, as represented by the MSCI EAFE Index, outperformed emerging markets (EM), represented by the MSCI Emerging Market Index, returning 10.42% versus 7.87% for the quarter. ►Stocks in the Eurozone fared better amid signs of falling inflation and increased manufacturing activity, leading to the outperformance of MSCI EMU (12.43%) versus the MSCI EAFE Index. The UK (6.48%) was the worst performer of the five largest-weighted countries in the index. The country continues to grapple with falling yet stubbornly high inflation. ►Within EM, MSCI Brazil outperformed the index. Brazilian equities soared 17.84% during the quarter as inflation slowed in line with expectations, inching toward the central bank’s target range. Conversely, MSCI China (-4.22%) lagged the index despite better retail sales and industrial production data. ►Value stocks underperformed growth stocks for the quarter as represented by the broad benchmark, a reversal of the trend observed during the first three quarters of the year. MSCI AC World ex-USA Value returned 8.43% while MSCI AC World ex-USA Growth returned 11.13%. Within EM, value continued to outperform growth returning 8.05% versus 7.72%. ►Small-caps, as represented by MSCI ACWI ex-U.S. Small Cap Index, outperformed within the international equity markets, returning 10.12% for the quarter. ►Non-U.S. equities valuations have moved closer to their long-term average across international equity markets. As of December 31, 2023, MSCI EM’s P/E stood at 13.67 versus a 5-year average of 13.21. MSCI EAFE ended the year with a P/E ratio of 14.25, slightly lower than its 5-year average of 15.92. 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 December 31, 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 5.71%5.63%2.34%10.12%5.16%12.80%19.95%12.53%11.10%4.68%13.55% YTD 12.72%4.91%14.99%16.17%8.03%23.22%36.26%12.18%5.29%5.66%12.02% 1 Year 12.72%4.91%14.99%16.17%8.03%23.22%36.26%12.18%5.29%5.66%12.02% 0% 5% 10% 15% 20% 25% 30% 35% 40% 8 13 18 23 28 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 MSCI EAFE MSCI EAFE 5-Year Average MSCI Emerging Markets MSCI Emerging Markets 5-Year Average Page 25 of 45 40 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management FIXED INCOME ►The U.S. bond market represented by the Bloomberg U.S. Aggregate Index (Aggregate) had sharp gains in the quarter, rising 6.82%. The calendar year return for the U.S. Aggregate Index is 5.53%. ►The Bloomberg U.S. Treasury Index closed the quarter with a gain of 5.66%. During the period, the FOMC maintained interest rate levels and signaled several cuts for 2024. Long rates dropped anticipating a pivot on tightening. The curve remains inverted as the Fed Funds rate remains targeted at 5.5%. The 10-year declined about 69 bps in the quarter, ending at 3.88%, while the 2-year ended at 4.25%. ►Corporate credit had strong results for the quarter on the declining rates. The investment-grade (IG) Bloomberg U.S. Corporate (IG Corp) Index surged 8.50% higher while high yield bonds, as represented by the Bloomberg U.S. Corporate High Yield (HY) Index, posted a significant gain of 7.16%. Spreads declined across all quality buckets, but BBB-rated bonds outperformed the high yield space. ►The fixed-rate mortgage market, as measured by the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index, gained 7.48%, aided by rates falling. On the commercial side, the Bloomberg U.S. Agency CMBS Index rose 5.60%. ►Emerging market USD sovereign bonds, as represented by the JP Morgan EMBI Global Diversified index, gained 9.16% led by some of the largest weighted countries. 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 December 31, 2023 Source: Bloomberg. U.S. Treasury Yield Curve 4.25%3.85%3.88%4.03% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 12/31/2022 9/30/2023 12/31/2023 3-mo 2-yr 5-yr 1 0-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 6.82%5.66%7.48%8.50%7.16% YTD 5.53%4.05%5.05%8.52%13.45% 1 Year 5.53%4.05%5.05%8.52%13.45% 0% 2% 4% 6% 8% 10% 12% 14% 16% Page 26 of 45 41 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2023 Multi-Asset Class Management ALTERNATIVES ►REITs, as measured by the FTSE NAREIT Equity REITs Index, gained 16.22% in the fourth quarter of 2023, compared to a -7.13% return in the prior quarter. All major sectors posted gains during the quarter as market participants now expect falling interest rates in the near-term. The best performers were the Office and Self-Storage sectors, which posted returns of 23.54% and 23.51%, respectively. The worst performers during the quarter were the Apartments and Healthcare sectors, which posted returns of 8.89% and 10.47%, respectively. ►Listed infrastructure, as measured by the FTSE Global Core Infrastructure 50/50 Index, gained 11.11% in the fourth quarter of 2023, compared to a -7.80% decrease in the prior quarter. Most major sectors had positive returns during the quarter as interest rates fell from their highs. The best performing industry groups were Telecom Towers and Specialized, which posted returns of 30.67% and 25.66%, respectively. The worst performing industry groups during the quarter were Cable & Satellite Communications and Alternative Carriers, which posted returns of -5.07% and 3.29%, respectively. ►Commodity futures, represented by the Bloomberg Commodity Total Return Index, fell 4.63% in the fourth quarter of 2023, compared to a 4.71% gain in the prior quarter. The U.S. Dollar Index (DXY) fell 4.56% during the same period. The price of gold increased 11.60% in Q4, due to expectations of falling yields and rising geopolitical tensions. Gold finished the quarter at $2,062.98 per ounce, up from $1,848.63 at the end of the previous quarter. The West Texas Intermediate (WTI) Crude Oil spot price fell 21.08% from $90.79 to $71.65 per barrel as the impacts of high supplies and falling demand outweighed potential price tailwinds arising from concerns in the Middle East. ►Private real estate, as measured by the NCREIF Property Index, fell -1.37% in the third quarter of 2023, resulting in a -8.40% return over the twelve-month period ended September 2023. This was the fourth consecutive quarter of negative returns for the index. Weak performance has been driven by property value declines across sectors; although, Office has seen the most significant decline. Hotel properties were again the top performers, with a total return of 1.86% in the third quarter, comprised of 2.12% in income return and -0.25% in appreciation return. Office properties were again the worst performers with total return of -3.67%, comprised of 1.30% in income return and -4.97% 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 December 31, 2023 Sources: Bloomberg and Hedge Fund Research, Inc. Returns for Liquid and Semi-Liquid Alternative Assets Periods Ended December 31, 2023 Apartments Data Centers Diversified Healthcare Hotels Industrial Office Retail Storage QTD 8.89%11.76% 20.40% 10.47% 22.92% 17.13% 23.54% 21.40% 23.51% YTD 5.87%30.08%-7.59%13.94% 23.92% 19.15%2.03%10.57% 18.49% 1 Year 5.87%30.08%-7.59%13.94% 23.92% 19.15%2.03%10.57% 18.49% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% U.S. REITs International REITs Commodity Futures Gold HFRI Fund Weighted Comp. QTD 16.22% 15.05%-4.63%11.02%0.99% YTD 13.73%7.06%-7.91%13.45%4.82% 1 Year 13.73%7.06%-7.91%13.45%4.52% -10% -5% 0% 5% 10% 15% 20% Page 27 of 45 42 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 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 third quarter of 2023, infrastructure funds raised $10.25 billion. While this is up from the prior quarter, 2023 has seen a sharp decline in fundraising with fewer funds raising capital. Infrastructure dry powder has also fallen from previous years and stands at $244.06 billion as of Q1 2023. The asset class has received attention from investors in recent years due to expectations that it could provide steady returns during periods of volatility, inflation, and recession. According to PitchBook, infrastructure funds posted a return of 5.97% in Q1 2023. The asset class has generated an annualized return of 10.53% for the 5 years ended Q1 2023. ►In the third quarter of 2023, private debt funds raised $31.70 billion, down from the prior quarter. Private debt dry powder has fallen to $449.00 billion as of Q1 2023; although, it remains above the long-term average. The asset class has performed well relative to public fixed income over the long- term and may see more opportunities emerge in the near-term as tightening lending standards continue to push banks out of the private lending space. According to Cliffwater Direct Lending Index, U.S. middle market loans, a proxy for private debt, posted a return of 3.17% in Q3 2023. The asset class has also generated an annualized return of 8.64% for the 5 years ended Q3 2023. ►In the third quarter of 2023, private capital fundraising was led by private equity funds, which closed on $133.40 billion, up from the prior quarter. Global private equity dry powder, which accounts for the bulk of private capital dry powder, remains high at $1.55 trillion as of Q1 2023. Recent private equity performance has weakened as a result of increasing cost of leverage, slowing deal flow, and macroeconomic uncertainty; however, longer term performance relative to public equities remains strong. According to Cambridge Associates, U.S. private equity posted a return of 2.76% in Q2 2023. The asset class has generated an annualized return of 17.77% for the 5 years ended Q2 2023. ►Hedge fund returns were mostly positive quarter-to-date through November 2023 with the HFRI Fund Weighted Composite Index returning 0.99%. During the same period, the HFRI Macro (Total) Index returned -1.67%. The HFRI Equity Hedge (Total) Index and the HFRI Fund of Funds Index returned 1.82% and 1.15%, respectively. Source: NCREIF, PitchBook, Cliffwater, Cambridge Associates, manual inputs. As of March 31, 2023 - most recent period for which all performance data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2023 as of September 30, 2023 - most recent period for which ALL fundraising data is available. ** Cumulative dry powder as of most recent - March 31, 2022. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD -1.81%5.97%2.69%2.69% YTD -1.81%5.97%2.69%2.69% 1 Year -1.60%10.17%7.26%-1.46% -4% -2% 0% 2% 4% 6% 8% 10% 12% Closed- End Real Estate Infrastruc ture Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$70.1298 $17.9085 $131.5133 $366.9902 $117.3286 Dry Powder ($B)**$354.5476 $244.0636 $448.9976 $1,546.2112 $659.1719 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $ B i l l i o n s Page 28 of 45 43 QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 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 29 of 45 44 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. 45 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 31 of 4546 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 32 of 4547 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 33 of 4548 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 34 of 4549 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 35 of 4550 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. Page 36 of 4551 U.S. Bank | Public 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. Page 37 of 4552 U.S. Bank | Public 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. Page 38 of 4553 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. Page 39 of 4554 U.S. Bank | Public 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. Page 40 of 4555 U.S. Bank | Public 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. Page 41 of 4556 U.S. Bank | Public 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. Page 42 of 4557 U.S. Bank | Public 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. Page 43 of 4558 U.S. Bank | Public 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. Page 44 of 4559 U.S. Bank | Public 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 45 of 4560 City of Cupertino PARS 115 Trust – OPEB Prefunding Program & Pension Rate Stabilization Program Plan Client Review April 15, 2024 61 City of Cupertino ▎ 2 Pars 115 Trust Team Trust Administrator & Consultant 40 Years of Experience (1984-2024) 2,000+ Plans under Administration 1,000+ Public Agency Clients $7.6 B Assets under Administration Investment Manager •Investment sub-advisor to trustee U.S. Bank •Institutional asset management solutions •Fixed income and multi asset portfolios •Active and passive platform options •Customized portfolios (with minimum asset level) 40+ Years of Experience (As of 12/31/23) $229.8 B * Assets under Management & Advisement Trustee •5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts •Safeguard plan assets •Oversight protection as plan fiduciary •Custodian of assets 161 Years of Experience (1863-2024) $10.3 T Assets under Administration 500+ 115 Trust Clients •Serves as record-keeper, consultant, and central point of contact •Sub-trust accounting •Coordinates all agency services •Monitors plan compliance (IRS/GASB/State Government Code) •Processes contributions/disbursements •Hands-on, dedicated support teams 500 K+ Plan Participants * Assets under management and advisement as of December 31, 2023 includes fixed income and multi asset class portfolios 62 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 Reimburse agency; or Pay benefits provider Pension Rate Stabilization Program Prefund Pension (PRSP)GASB 68 Pension 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 63 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 March 31, 2024 64 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 4465 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 SUMMARY Section 3 – DISCLOSURES, DEFINITIONS, DESCRIPTIONS Page 3 of 4466 U.S. Bank Confidential PORTFOLIO REVIEW 67 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $39,172,491 Net Realized Cap Gains YTD $357,150 Annual Income Projected $948,451 Current Yield 2.42% Number of Securities 10 Portfolio Mgr.Rick Rosenthal Portfolio Asset Allocation Equity $26,425,065 67.46% Fixed Income $10,855,728 27.71% Real Assets $1,450,556 3.70% Cash $441,141 1.13% Invested Total $39,172,491 100.00% 67% 28% 4% 1% 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 2 of 41 68 PARS/CITY OF CUPERTINO 115P -OPEB Equity Overview Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 03/29/2024 © 2024 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: 3/29/2024 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $26,425,065 Current Yield 1.75% Annual Income Projected $461,556 Number of Securities 6 Portfolio Mgr.Rick Rosenthal Equity Asset Allocation Large Cap U.S.$12,508,255 47.33% Mid Cap U.S.$4,833,485 18.29% Developed Markets $4,725,648 17.88% Emerging Markets $2,342,502 8.86% Small Cap U.S.$2,015,175 7.63% 47% 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) HNACXJVLIXFSMDXFSPSXFSSNXFPADXBOSOX -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 72.40% 13.53% 12.56% 0.80% 0.50% 0.23% Equity Country Distribution United States Japan United Kingdom France Hong Kong 71.43% 4.20% 2.84% 2.82% 2.06% Page 3 of 41 69 PARS/CITY OF CUPERTINO 115P - OPEB Common Stock Detail Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 03/29/2024 © 2024 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: 3/29/2024 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 2.24 1.53 0.02 82.5 235.0 Amazon.com, Inc.1.92 1.31 0.00 18.7 79.9 Microsoft Corporation 1.91 1.30 0.71 12.1 51.2 Advanced Micro Devices, Inc.1.28 0.87 0.00 22.4 87.8 Alphabet Inc. Class A 1.21 0.83 0.00 8.0 48.9 Meta Platforms Inc Class A 1.08 0.74 0.38 37.3 136.7 JPMorgan Chase & Co.1.00 0.68 2.35 18.5 59.5 Eli Lilly and Company 0.95 0.65 0.68 33.7 133.5 Apple Inc.0.86 0.58 0.57 -10.8 7.2 Berkshire Hathaway Inc. Class …0.82 0.56 0.00 17.9 37.7 Common Stock Characteristics Portfolio S&P 500 Market Cap - Wtd Avg $317.7B $803.7B Market Cap - Median $4.9B $35.2B Dividend Yield (%)1.72 1.40 P/E NTM 18.0 21.1 P/E LTM 20.1 25.7 ROE (%)20.8 28.5 1 Yr Beta vs. S&P Composite .95 1.02 Est 3-5 Yr EPS Growth (%)13.5 13.8 Hist 3 Yr EPS Growth (%)26.1 23.8 Number of Securities 5047 504 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% 35% 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 6.26 8.95 11.65 10.34 5.15 5.97 4.87 3.95 15.30 13.15 11.26 12.43 12.41 8.80 19.52 29.56 3.66 2.37 7.87 2.28 2.05 2.20 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 4 of 41 70 PARS/CITY OF CUPERTINO 115P -OPEB Fixed Income Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $10,855,728 Current Yield 3.84% Annual Income Projected $417,234 Number of Securities 2 Portfolio Mgr.Rick Rosenthal Fixed Income Asset Allocation Investment Grade $8,936,792 82.32% High Yield $1,918,937 17.68% 82% 18% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $11,296,870 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 0 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 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 12,000,000 Page 5 of 41 71 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 67.5%63%50%-70%MSCI AC World Free IndexEquities 27.7%29%20%-40%BBARC Global Aggregate IndexFixed Income 3.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 1.1%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO Page 6 of 4172 Selected Period Performance Period Ending: 03/31/2024PARS/CITY OF CUPERTINO OPEB AGG (****60596) Year Inception to Date to Date Market Value (3 Months) 1 Year 3 Years 5 Years 119 Months 07/01/2010 Total Portfolio Gross of Fees 39,236,603 5.93 18.10 3.47 7.08 6.14 6.80 Total Portfolio Net of Fees 39,236,603 5.88 17.89 3.28 6.89 5.93 City of Cupertino 4.74 15.54 3.85 7.33 5.85 7.36 Total Equity 26,425,065 9.11 25.97 5.47 11.52 9.69 11.69 MSCI ACWI (Net)8.20 23.22 6.96 10.92 8.63 10.22 U.S. Equity 19,356,916 10.87 31.33 8.44 12.79 11.41 S&P 500 Index (Total Return)10.56 29.88 11.49 15.05 12.99 14.78 S&P MidCap 400 Index 9.95 23.33 6.96 11.71 10.25 12.89 S&P SmallCap 600 Index 2.46 15.93 2.28 9.15 9.19 12.37 Developed Markets Equity 4,725,648 5.79 15.24 1.27 12.16 7.34 MSCI EAFE Index (Net)5.78 15.32 4.78 7.33 4.69 6.98 Emerging Markets Equity 2,342,502 2.19 7.35 -8.64 .52 .78 MSCI Emerging Markets Index (Net)2.37 8.15 -5.05 2.22 2.94 3.40 Total Fixed Income 10,892,217 -.15 3.55 -1.06 -.39 .60 1.60 BBARC Global Aggregate Index -2.08 .49 -4.73 -1.17 -.18 1.06 BBARC US Aggregate Bond Index -.78 1.70 -2.46 .36 1.47 2.05 Total Real Assets 1,450,556 -.40 10.68 3.22 3.89 Real Estate 1,450,556 -.40 10.68 3.22 3.84 5.86 S&P Global REIT Index (Gross)-.91 8.71 1.67 2.27 4.67 7.87 S&P GSCI Index 10.36 11.14 18.05 7.83 -3.02 -.63 Total Cash Equivalents 444,251 1.30 5.25 2.58 1.92 1.28 .93 ICE BofAML US 3-Month Treasury Bill Index 1.29 5.24 2.58 2.02 1.39 1.03 Pending Cash 24,514 .00 .00 .00 .00 .00 .00 Page 7 of 4173 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 39,172,491 33,112,525 6,059,966 2.42 948,451 Cash 1.13 441,141 441,141 0 5.24 23,098 Cash Equivalents 1.13 441,141 441,141 0 5.24 23,098 FIRST AM GOVT OB FD CL X 31846V336 1.13 1.00 441,141 441,141 441,141 0 5.24 23,098 Fixed Income 27.71 10,855,728 9,830,525 1,025,203 3.84 417,234 Investment Grade 22.81 8,936,792 7,767,334 1,169,457 3.04 271,498 Mutual Funds & ETFs 22.81 8,936,792 7,767,334 1,169,457 3.04 271,498 Fidelity U.S. Bond Index Fund FXNAX 22.81 10.27 870,184 8,936,792 7,767,334 1,169,457 3.04 271,498 High Yield 4.90 1,918,937 2,063,191 -144,254 7.59 145,737 Mutual Funds & ETFs 4.90 1,918,937 2,063,191 -144,254 7.59 145,737 Artisan High Income Fund -Institutional Sh…APHFX 4.90 8.98 213,690 1,918,937 2,063,191 -144,254 7.59 145,737 Equity 67.46 26,425,065 21,235,058 5,190,008 1.75 461,556 Large Cap U.S. Equity 31.93 12,508,255 11,266,253 1,242,002 0.49 61,331 Mutual Funds & ETFs 31.93 12,508,255 11,266,253 1,242,002 0.49 61,331 Harbor Capital Appreciation Fund -Retire…HNACX 16.04 110.06 57,103 6,284,708 5,256,128 1,028,581 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 15.89 24.76 251,355 6,223,546 6,010,125 213,422 0.99 61,331 Mid Cap U.S. Equity 12.34 4,833,485 1,613,156 3,220,330 1.28 61,960 Mutual Funds & ETFs 12.34 4,833,485 1,613,156 3,220,330 1.28 61,960 Fidelity Mid Cap Index Fund FSMDX 12.34 32.53 148,585 4,833,485 1,613,156 3,220,330 1.28 61,960 Small Cap U.S. Equity 5.14 2,015,175 1,766,867 248,308 1.36 27,466 Mutual Funds & ETFs 5.14 2,015,175 1,766,867 248,308 1.36 27,466 Fidelity Small Cap Index Fund FSSNX 5.14 26.34 76,506 2,015,175 1,766,867 248,308 1.36 27,466 Developed Markets Equity 12.06 4,725,648 4,373,923 351,725 5.28 249,443 Mutual Funds & ETFs 12.06 4,725,648 4,373,923 351,725 5.28 249,443 Fidelity International Index Fund FSPSX 12.06 50.09 94,343 4,725,648 4,373,923 351,725 5.28 249,443 Emerging Markets Equity 5.98 2,342,502 2,214,859 127,643 2.62 61,357 Mutual Funds & ETFs 5.98 2,342,502 2,214,859 127,643 2.62 61,357 Fidelity Emerging Markets Index Fund FPADX 5.98 10.27 228,092 2,342,502 2,214,859 127,643 2.62 61,357 Real Assets 3.70 1,450,556 1,605,801 -155,245 3.21 46,563 U.S. Listed Real Estate 3.70 1,450,556 1,605,801 -155,245 3.21 46,563 Page 8 of 41 74 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 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 3.70 53.80 26,962 1,450,556 1,605,801 -155,245 3.21 46,563 Page 9 of 41 75 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $21,539,290 Net Realized Cap Gains YTD $-37,779 Annual Income Projected $523,362 Current Yield 2.43% Number of Securities 10 Portfolio Mgr.Rick Rosenthal Portfolio Asset Allocation Equity $14,486,821 67.26% Fixed Income $5,969,451 27.71% Real Assets $797,746 3.70% Cash $285,271 1.32% Invested Total $21,539,290 100.00% 67% 28% 4% 1% 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 10 of 41 76 PARS/CITY OF CUPERTINO 115P-PENSION Equity Overview Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 03/29/2024 © 2024 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: 3/29/2024 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $14,486,821 Current Yield 1.75% Annual Income Projected $253,385 Number of Securities 6 Portfolio Mgr.Rick Rosenthal Equity Asset Allocation Large Cap U.S.$6,833,420 47.17% Mid Cap U.S.$2,658,346 18.35% Developed Markets $2,599,037 17.94% Emerging Markets $1,288,127 8.89% Small Cap U.S.$1,107,892 7.65% 47% 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) HNACXJVLIXFSMDXFSPSXFSSNXFPADXBOSOX -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 72.32% 13.56% 12.60% 0.80% 0.50% 0.23% Equity Country Distribution United States Japan United Kingdom France Hong Kong 71.36% 4.22% 2.85% 2.82% 2.06% Page 11 of 41 77 PARS/CITY OF CUPERTINO 115P- PENSION Common Stock Detail Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 03/29/2024 © 2024 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: 3/29/2024 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 2.25 1.53 0.02 82.5 235.0 Amazon.com, Inc.1.93 1.31 0.00 18.7 79.9 Microsoft Corporation 1.92 1.30 0.71 12.1 51.2 Advanced Micro Devices, Inc.1.28 0.87 0.00 22.4 87.8 Alphabet Inc. Class A 1.21 0.82 0.00 8.0 48.9 Meta Platforms Inc Class A 1.08 0.74 0.38 37.3 136.7 JPMorgan Chase & Co.0.99 0.68 2.35 18.5 59.5 Eli Lilly and Company 0.95 0.65 0.68 33.7 133.5 Apple Inc.0.86 0.58 0.57 -10.8 7.2 Berkshire Hathaway Inc. Class …0.81 0.55 0.00 17.9 37.7 Common Stock Characteristics Portfolio S&P 500 Market Cap - Wtd Avg $318.1B $803.7B Market Cap - Median $4.9B $35.2B Dividend Yield (%)1.72 1.40 P/E NTM 18.0 21.1 P/E LTM 20.1 25.7 ROE (%)20.8 28.5 1 Yr Beta vs. S&P Composite .95 1.02 Est 3-5 Yr EPS Growth (%)13.5 13.8 Hist 3 Yr EPS Growth (%)26.1 23.8 Number of Securities 5047 504 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% 35% 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 6.26 8.95 11.67 10.34 5.14 5.97 4.86 3.95 15.27 13.15 11.25 12.43 12.40 8.80 19.55 29.56 3.66 2.37 7.89 2.28 2.05 2.20 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 12 of 41 78 PARS/CITY OF CUPERTINO 115P-PENSION Fixed Income Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $5,969,451 Current Yield 3.84% Annual Income Projected $229,433 Number of Securities 2 Portfolio Mgr.Rick Rosenthal Fixed Income Asset Allocation Investment Grade $4,914,243 82.32% High Yield $1,055,208 17.68% 82% 18% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $6,254,723 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 0 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 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 6,000,000 Page 13 of 41 79 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 67.3%63%50%-70%MSCI AC World Free IndexEquities 27.7%29%20%-40%BBARC Global Aggregate IndexFixed Income 3.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 1.3%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO Page 14 of 4180 Selected Period Performance Period Ending: 03/31/2024PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Year Inception to Date to Date Market Value (3 Months) 1 Year 3 Years 05/01/2019 Total Portfolio Gross of Fees 21,574,744 5.90 18.08 3.39 7.44 Total Portfolio Net of Fees 21,574,744 5.86 17.87 3.21 7.24 City of Cupertino 4.74 15.54 3.85 7.01 Total Equity 14,486,821 9.12 25.97 5.47 10.96 MSCI ACWI (Net)8.20 23.22 6.96 10.36 U.S. Equity 10,599,658 10.88 31.35 8.45 12.20 S&P 500 Index (Total Return)10.56 29.88 11.49 14.40 S&P MidCap 400 Index 9.95 23.33 6.96 11.03 S&P SmallCap 600 Index 2.46 15.93 2.28 8.47 Developed Markets Equity 2,599,037 5.79 15.24 1.27 11.42 MSCI EAFE Index (Net)5.78 15.32 4.78 6.85 Emerging Markets Equity 1,288,127 2.19 7.35 -8.64 .29 MSCI Emerging Markets Index (Net)2.37 8.15 -5.05 1.83 Total Fixed Income 5,989,459 -.15 3.55 -1.07 -.51 BBARC Global Aggregate Index -2.08 .49 -4.73 -1.13 BBARC US Aggregate Bond Index -.78 1.70 -2.46 .36 Total Real Assets 797,746 -.40 10.68 3.29 4.01 Real Estate 797,746 -.40 10.68 3.29 4.01 S&P Global REIT Index (Gross)-.91 8.71 1.67 2.38 S&P GSCI Index 10.36 11.14 18.05 7.35 Total Cash Equivalents 287,297 1.30 5.25 2.54 1.87 ICE BofAML US 3-Month Treasury Bill Index 1.29 5.24 2.58 2.01 Pending Cash 13,421 .00 .00 .00 .00 Page 15 of 4181 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 21,539,290 19,184,864 2,354,426 2.43 523,362 Cash 1.32 285,271 285,271 0 5.24 14,936 Cash Equivalents 1.32 285,271 285,271 0 5.24 14,936 FIRST AM GOVT OB FD CL X 31846V336 1.32 1.00 285,271 285,271 285,271 0 5.24 14,936 Fixed Income 27.71 5,969,451 6,143,489 -174,037 3.84 229,433 Investment Grade 22.82 4,914,243 5,021,447 -107,204 3.04 149,293 Mutual Funds & ETFs 22.82 4,914,243 5,021,447 -107,204 3.04 149,293 Fidelity U.S. Bond Index Fund FXNAX 22.82 10.27 478,505 4,914,243 5,021,447 -107,204 3.04 149,293 High Yield 4.90 1,055,208 1,122,042 -66,833 7.59 80,139 Mutual Funds & ETFs 4.90 1,055,208 1,122,042 -66,833 7.59 80,139 Artisan High Income Fund -Institutional Sh…APHFX 4.90 8.98 117,506 1,055,208 1,122,042 -66,833 7.59 80,139 Equity 67.26 14,486,821 11,895,040 2,591,781 1.75 253,385 Large Cap U.S. Equity 31.73 6,833,420 5,962,573 870,846 0.49 33,278 Mutual Funds & ETFs 31.73 6,833,420 5,962,573 870,846 0.49 33,278 Harbor Capital Appreciation Fund -Retire…HNACX 16.05 110.06 31,406 3,456,498 2,749,242 707,256 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 15.68 24.76 136,386 3,376,922 3,213,332 163,591 0.99 33,278 Mid Cap U.S. Equity 12.34 2,658,346 1,386,296 1,272,050 1.28 34,077 Mutual Funds & ETFs 12.34 2,658,346 1,386,296 1,272,050 1.28 34,077 Fidelity Mid Cap Index Fund FSMDX 12.34 32.53 81,720 2,658,346 1,386,296 1,272,050 1.28 34,077 Small Cap U.S. Equity 5.14 1,107,892 972,122 135,770 1.36 15,100 Mutual Funds & ETFs 5.14 1,107,892 972,122 135,770 1.36 15,100 Fidelity Small Cap Index Fund FSSNX 5.14 26.34 42,061 1,107,892 972,122 135,770 1.36 15,100 Developed Markets Equity 12.07 2,599,037 2,356,124 242,913 5.28 137,190 Mutual Funds & ETFs 12.07 2,599,037 2,356,124 242,913 5.28 137,190 Fidelity International Index Fund FSPSX 12.07 50.09 51,887 2,599,037 2,356,124 242,913 5.28 137,190 Emerging Markets Equity 5.98 1,288,127 1,217,925 70,201 2.62 33,740 Mutual Funds & ETFs 5.98 1,288,127 1,217,925 70,201 2.62 33,740 Fidelity Emerging Markets Index Fund FPADX 5.98 10.27 125,426 1,288,127 1,217,925 70,201 2.62 33,740 Real Assets 3.70 797,746 861,064 -63,317 3.21 25,608 U.S. Listed Real Estate 3.70 797,746 861,064 -63,317 3.21 25,608 Page 16 of 41 82 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 03/29/2024 © 2024 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: 3/29/2024 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 3.70 53.80 14,828 797,746 861,064 -63,317 3.21 25,608 Page 17 of 41 83 U.S. Bank Confidential MARKET SUMMARY Provided by Sub-Advisor - PFM Asset Management LLC 84 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management THE ECONOMY ►In the fourth quarter, U.S. gross domestic product (GDP) grew at an annualized rate of 3.4%, cooling somewhat from the third quarter’s 4.9% growth. This growth was supported by both non-residential business investment and consumer spending. Consumer spending added 2.2% and was the largest contributing sector to GDP growth. The continued strength of the U.S. economy is a sharp contrast to other developed markets such as the euro area which stagnated at 0.1% growth and Japan which expanded just 0.4% during the quarter. ►The U.S. labor market remains strong. While the unemployment rate ticked up slightly it remains at historical lows, ending the quarter at 3.8%. The labor participation rate rose slightly to 62.7%, while average hourly earnings year-over-year (YoY) growth cooled to 4.1%, which bodes well for easing wage pressures on inflation without a large increase in unemployment. ►Inflation remains somewhat “sticky” as headline inflation (CPI) grew at a YoY rate of 3.2% in February, down from the 3.4% growth at the end of the fourth quarter, but up slightly from January. Core CPI, which excludes volatile food and energy, eased to a near three year low of 3.8%. Both readings remain well above the Fed target of 2%, likely reinforcing the Federal Reserve’s (Fed) wait and see approach to rate cuts. U.S. GDP Growth Source: Bloomberg. Light blue bars indicate actual numbers; dark blue bars indicate forecasted estimates. U.S. Prime Age Labor Force Participation Rate 25-53 Years Seasonally Adjusted (SA) Source: Bureau of Labor Statistics. 2.1% 4.9%3.4%2.0%1.4%1.2%1.5% -40% -30% -20% -10% 0% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024 Qo Q % C h a n g e , S A , A n n u a l i z e d 58% 60% 62% 64% Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Source: Bureau of Labor Statistics. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Mar-20 Mar-21 Mar-22 Mar-23 Yo Y % C h a n g e Core CPI CPI U.S. Inflation Rate Seasonally Adjusted (SA) 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 22 of 44 85 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management WHAT WE’RE WATCHING ►The Federal Open Market Committee (FOMC) continued to hold rates steady in the first quarter at 5.50% as Fed officials need “greater confidence” that inflation is slowing sustainably to 2%. Looking forward, while the committee revised both their projections for growth and inflation slightly higher, three rate cuts are still expected for 2024. Globally, most major central banks also held rates steady, with the European Central Bank (ECB) and the Bank of England (BOE) both pausing despite increasing pressure from poor economic growth. The Central Bank of Japan bucked this trend, raising its key interest rate for the first time in 17 years in March. ►The U.S. saw manufacturing conditions improve during the quarter as U.S. ISM Manufacturing Index turned expansionary with a reading of 50.3 in March, the first non- contractionary result in over a year, as demand increased. The service sector continued to expand through the quarter, though at a slowing pace with a March reading of 51.4. ►The Michigan Consumer Sentiment survey ended the quarter at 79.4, the highest reading since July 2021 as consumer assessments of both current conditions and the economic outlook brightened. This positive outlook suggests continued strength in consumer spending though at what rate is to be determined. The personal savings rate fell in February to 3.6% while consumer debt and delinquency rates steadily increased in the fourth quarter, though overall delinquency rates remain lower than pre-COVID rates. Global Central Bank Rates Source: Bloomberg. U.S. ISM Manufacturing & Services PMI Source: Bloomberg. 40 45 50 55 60 65 70 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Manufacturing Services -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Fed Target Rate ECB Target Rate Bank of England Target Rate Bank of Canada Target Rate University of Michigan Consumer Sentiment Source: Bloomberg. 0 20 40 60 80 100 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 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 23 of 44 86 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management DOMESTIC EQUITY ►The S&P 500 Index (S&P) posted a 10.56% return for the first quarter of 2024. As of March 31, 2024, the trailing 1-year return for the index was 29.88%. ►The market capitalization-weighted S&P 500 continued its outperformance over the equal-weighted S&P 500 Index, though the difference was not as wide as we saw in 2023. During the quarter, there were periods of broadening in performance outside of the Magnificent Seven names, but they started to see cracks as Apple and Tesla posted negative returns. Additionally, mid-caps outperformed large-caps in February and March but finished the quarter behind large-caps. ►Within S&P 500, the only GICS sector to post a negative return for the quarter was Real Estate (-0.55%). The next worst performers were Utilities (4.57%), Consumer Discretionary (4.98%) and Healthcare (8.85%). The sectors that led performance over the quarter were Communication Services (15.82%), Energy (13.69%) and Information Technology (12.69%). ►Small-caps, as represented by the Russell 2000 Index, returned 5.2% during the quarter and underperformed mid- and large-caps. The Russell Midcap and Russell 1000 indices returned 8.60% and 10.30%, respectively. ►According to FactSet Earnings Insight (as of March 28, 2024), the expected YoY earnings growth rate for the S&P for the first quarter of 2024 is 3.6%, a slight decline from the December 31, 2023 estimate. For calendar year 2024, analysts are calling for YoY earnings growth of 11.0%. ►As of the end of the quarter, the forward S&P 500 P/E ratio was 23.3, above its 5-year average of 22.2. By comparison the forward S&P 500 P/E ratio was 20.3 in March 2023. 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 March 31, 2024 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 4.98% 7.52% 13.69% 12.45% 8.85% 10.97% 12.69% 8.95% -0.55% 15.82% 4.57% YTD 4.98% 7.52% 13.69% 12.45% 8.85% 10.97% 12.69% 8.95% -0.55% 15.82% 4.57% 1 Year 28.64% 7.17% 17.55% 33.38% 16.04% 26.56% 45.86% 17.52% 9.58% 49.59% 0.42% -10% 0% 10% 20% 30% 40% 50% 60% 0 5 10 15 20 25 30 10 15 20 25 30 35 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Ru s s e l l 2 0 0 0 S& P 5 0 0 S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average Page 24 of 44 87 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management NON-U.S. EQUITY ►Markets outside of the United States, as measured by the MSCI ACWI ex-U.S. Index, underperformed their U.S. counterparts, returning 4.69% for the quarter. ►Seven of the 11 sectors posted strong positive returns for the quarter, with Information Technology (11.37%) leading the way, followed by Consumer Discretionary (7.20%) and Industrials (6.95%). Consumer Staples (-3.16%) was the worst performer followed by Utilities (-2.98%) and Materials (-1.64%) for the quarter. ►Developed ex-U.S. Markets, as represented by the MSCI EAFE Index, outperformed emerging markets (EM), represented by the MSCI Emerging Market Index, returning 5.78% versus 2.37% for the quarter. ►MSCI Japan (11.01%) outperformed the MSCI EAFE Index. Japanese equities rose as better corporate governance practices, strong corporate earnings, and the Bank of Japan accommodative policy stance reinforced positive investor sentiment. Switzerland (-1.24%) was the worst performer of the five largest-weighted countries in the index. The country’s strong currency dampened exports, resulting in a drag on many large Swiss firms’ earnings. ►Within EM, MSCI Taiwan outperformed the index, soaring 12.50% during the quarter. TSMC and other semiconductor names within the country fared well, bolstered by strong demand for artificial intelligence-enabling processors. Conversely, MSCI China (-0.63%) lagged the index. Despite the rebound in February and the Chinese government’s willingness to unleash more stimulus in the economy, investor sentiment remains negative and challenges in the property sector persist. ►Value stocks underperformed growth stocks for the quarter as represented by the broad benchmark. MSCI AC World ex-USA Value returned 3.40% while MSCI AC World ex-USA Growth returned 5.91%. ►Small-caps, as represented by MSCI ACWI ex-U.S. Small Cap Index, underperformed within the international equity markets, returning 2.11% for the quarter. ►Non-US equities valuations have moved closer to their long-term average across international equity markets. As of March 31, 2024, MSCI EAFE’s forward P/E stood at 15.61 versus a five-year average of 15.96. MSCI EM ended the year with a forward P/E ratio of 12.63, slightly lower than its five-year average of 13.26. 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 March 31, 2024 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 7.20% -3.16% 5.25% 5.90% 3.68% 6.95% 11.37% -1.64% -0.26% 2.13% -2.98% YTD 7.20% -3.16% 5.25% 5.90% 3.68% 6.95% 11.37% -1.64% -0.26% 2.13% -2.98% 1 Year 8.59% -4.64% 21.39% 21.39% 7.54% 19.80% 29.44% 4.15% 6.83% -2.98% 5.19% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 8 10 12 14 16 18 20 22 24 26 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 MSCI EAFE MSCI EAFE 5-Year Average MSCI Emerging Markets MSCI Emerging Markets 5-Year Average Page 25 of 44 88 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management FIXED INCOME ►The U.S. bond market represented by the Bloomberg U.S. Aggregate (Aggregate) Index was down -0.78% in the quarter. The trailing one-year period return is 1.69%. ►The Bloomberg U.S. Treasury Index closed the quarter with a loss of -96%. During the period, the FOMC maintained interest rate levels and continued to signal fewer cuts for 2024 than the market anticipated on the back of some stickier inflationary data. All rates beyond one year rose with the largest increases in intermediate maturities. The curve remains inverted as the Fed Funds rate remains targeted at 5.5%. The 10-year rose to 4.2%, while the 2-year ended at 4.6%. ►Corporate credit had positive relative results for the quarter on the rising rates. The investment-grade (IG) Bloomberg U.S. Corporate (IG Corp) Index lost 0.40% while high yield bonds, as represented by the Bloomberg U.S. Corporate High Yield (HY) Index, gained 1.47%, continuing strong performance from 2023. Spreads declined across all quality buckets with the lowest quality high yield performing best. ►The fixed-rate mortgage market, as measured by the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index, lost 1.04%, on rates rising with much of the market being in lower coupons with higher duration. On the commercial side, the Bloomberg U.S. Agency CMBS Index was relatively better, down 0.29%. ►EM USD sovereign bonds, as represented by the JP Morgan EMBI Global Diversified index, gained 2.04% supported by strong returns in select high yield rated countries. 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 March 31, 2024 Source: Bloomberg. U.S. Treasury Yield Curve 4.62% 4.21%4.20%4.34% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 3/31/2023 12/31/2023 3/31/2024 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 -0.78%-0.96%-1.04%-0.40%1.47% YTD -0.78%-0.96%-1.04%-0.40%1.47% 1 Year 1.69%0.05%1.38%4.42%11.12% -2% 0% 2% 4% 6% 8% 10% 12% Page 26 of 44 89 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management ALTERNATIVES ►Public REITs, as measured by the FTSE NAREIT Equity REITs Index, returned -0.20% in the first quarter of 2024, compared to a 16.22% return in the prior quarter while private real estate, as measured by the NCREIF Property Index, fell -3.02% in the fourth quarter of 2023, resulting in a -7.90% return over the twelve- month period ended December 2023. This was the fifth consecutive quarter of negative returns for the index. Weak performance has been driven by property value declines across sectors. ►Listed infrastructure, as measured by the FTSE Global Core Infrastructure 50/50 Index, gained 1.75% in the first quarter of 2024, compared to a 11.11% increase in the prior quarter with mixed performance across the major sectors. In 2023, private infrastructure funds raised $65.36 billion, a sharp decline from the $110.91 billion raised in the prior year. The asset class has received attention from investors in recent years due to expectations of stable returns in uncertain market environments, inflation hedging potential, and secular demand tailwinds such as decarbonization and digitization. According to PitchBook, private infrastructure funds posted a return of -3.55% in Q3 2023. The asset class has generated an annualized return of 8.45% for the five years ended Q3 2023. ►In 2023, private debt funds raised $190.93 billion but experienced a sharp slowdown in fundraising during the second half of the year. The asset class has performed well relative to public fixed income over the long-term and may see more opportunities emerge as tightening lending standards continue to push banks out of the private lending space. According to Cliffwater Direct Lending Index, U.S. middle market loans, a proxy for private debt, posted a return of 2.95% in Q4 2023. The asset class has also generated an annualized return of 9.09% for the five years ended Q4 2023. ►In 2023, private equity funds raised $554.04 billion, with a majority of the total raised in the second half of the year as inflation eased and monetary tightening flattened. Recent private equity performance has weakened due to increasing leverage costs, slow deal flow and macroeconomic uncertainty. However, longer term performance relative to public equities remains strong. According to Cambridge Associates, U.S. private equity posted a return of 0.58% in Q3 2023. The asset class has generated an annualized return of 16.98% for the five years ended Q3 2023. PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. Source: NCREIF, PitchBook, Cliffwater, Cambridge Associates. As of September 30, 2023, the most recent period for which all index data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2023 as of December 31, 2023 - most recent period for which ALL fundraising data is available. ** Cumulative dry powder as of June 30, 2023, unless specified otherwise. *** Closed-End Infrastructure dry powder as of March 31, 2023. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD -1.37%-3.55%3.17%0.58% YTD -5.07%3.46%8.92%6.21% 1 Year -8.39%4.11%11.15%7.26% -10% -5% 0% 5% 10% 15% Closed-End Real Estate Closed-End Infrastructure***Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$98.79 $65.36 $190.93 $554.04 $162.28 Dry Powder ($B)**$450.36 $244.06 $506.22 $1,625.84 $657.25 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $ B i l l i o n s Page 27 of 44 90 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 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 28 of 44 91 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. 92 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 30 of 4493 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 31 of 4494 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 32 of 4495 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 33 of 4496 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 34 of 4497 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. Page 35 of 4498 U.S. Bank | Public 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. Page 36 of 4499 U.S. Bank | Public 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. Page 37 of 4410 0 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. Page 38 of 4410 1 U.S. Bank | Public 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. Page 39 of 4410 2 U.S. Bank | Public 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. Page 40 of 4410 3 U.S. Bank | Public 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. Page 41 of 4410 4 U.S. Bank | Public 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. Page 42 of 4410 5 U.S. Bank | Public 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. Page 43 of 4410 6 U.S. Bank | Public 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 44 of 4410 7 CITY OF CUPERTINO Agenda Item 24-13118 Agenda Date: 4/22/2024 Agenda #: 4. Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 and March 31, 2024 Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 and March 31, 2024 Presenter: Jonathan Orozco, Finance Manager and Chandler 4:40(15) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™108 AUDIT COMMITTEE STAFF REPORT Meeting: April 22, 2024 Subject Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2024 Recommended Action Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2024 Reasons for Recommendation Background On May 16, 2023, 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. 109 2 Treasurer's Investment Report The report provides an update on the City's investment portfolio for the month ending March 31, 2024. The report is as of April 16, 2024. 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 $253.6 million, a $14.7 million increase from the prior quarter. Cash and Investments – General Ledger Balance Fund Type Quarter Ending December 31, 2023 Quarter Ending March 31, 2024 General Fund 141,499,792 156,022,661 Special Revenue 41,412,237 43,487,002 Debt Service 2,356,550 2,356,550 Capital Projects 36,107,366 35,814,019 Enterprise 10,016,565 10,188,953 Internal Service 7,567,025 5,750,623 Total $238,959,536 $253,619,809 110 3 The $253.6 million in cash and investments include $17.9 million in cash, $67.0 million in cash equivalents, $149.6 million in investments, and $19.1 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. 111 4 Cash and Investments – General Ledger Balance Quarter Ending December 31, 2023 Quarter Ending March 31, 2024 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 48,460,978 17,890,177 7% Workers' Compensation Checking (Wells Fargo) 22,010 34,199 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 21,787,939 67,006,824 26% Investments Investments (Chandler) 149,596,163 149,596,163 59% Restricted for Pension2 (PARS) 19,088,859 19,088,859 8% Total Cash and Investments3 $238,959,536 $253,619,809 100% 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. 112 5 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 December 31, 2023 Quarter Ending March 31, 2024 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 49,177,441 20,797,662 8% Workers' Compensation Checking (Wells Fargo) 23,013 27,369 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Cash Equivalents Local Agency Investment Fund 21,787,939 67,006,824 25% Investments Investments (Chandler) 153,958,566 154,774,606 59% Restricted for Pension2 (PARS) 20,389,010 21,561,323 8% Total Cash and Investments3 $245,335,970 $264,167,784 100% 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. 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 $67.0 million. The quarterly interest rate was 4.30%. The City deposited roughly $45 million to earn interest on the City’s cash equivalents in the quarter ending March 2024. 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: 113 6  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 $154.8 million, compared to $154.0 million at the end of the previous quarter. The table below includes historical comparisons of the City's portfolio: December 31, 2023 March 31, 2024 Market Value 153,958,566 154,139,738 Par Value 158,767,712 159,493,887 Book Value 158,476,712 159,262,128 Average Maturity 2.10 years 2.10 years Average Modified Duration 1.86 1.75 Average Purchase Yield 2.19% 2.44% Average Market Yield 4.69% 5.14% Average Quality1 AA/Aa1 AA+ 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 5, 2023, City Council 114 7 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 horizon. The strategic asset allocation ranges for this investment objective are: 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 $21.6 million, an increase of $1.2 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $39.2 million, an increase of $2.1 million from the prior quarter due to investment gains. The quarterly investment return for OPEB Trust was 5.86% and Pension Trust was 5.84%. 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: 115 8 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 5.03% and 4.59%, respectively. The one-year Treasury yield increased by 24 basis points, and the two-year Treasury yield increased by 36 basis points from December 31, 2023. The yield of the City's investment portfolio was 5.14%, higher than the one-year Treasury yield, two-year Treasury yield and LAIF. Cash Flow History Historical revenues, expenditures, and liquidity ratios are presented below: 116 9 117 10 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. Liquidity ratios have been higher in FY 2023-24 due to increased cash and investment balances as the City anticipated an adverse decision from a California Department of Tax and Fee Administration (CDTFA) audit of a City taxpayer. On October 10, 2023, the City established a Sales Tax Repayment Reserve with an initial allocation of $56.5 million to set aside disputed sales tax revenue. As of March 31, 2024, the liquidity ratio was 2.5 and 1.4 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 March 31, 2024, the City had $87.8 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. 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: 118 11 119 12 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. Sustainability Impact 120 13 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 March 2024 B – Chandler Custodial Statement March 2024 C – PARS Pension and OPEB Account Statement March 2024 D – LAIF Account Statement March 2024 121 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending March 31, 2024 City of Cupertino 122 SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of March 31, 2024 1 123 SECTION |Section 1 |Economic Update 2 124 Economic Update    Recent economic da ta has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market. Inflationary trends are subsiding, but core levels remain above the Fed’s target.Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024. As expected at the March meeting,the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 -5.50%.The March Summary of Economic Projections (SEP)showed stronger real GDP growth outlook and higher core inflation projections for 2024 on resilient labor market and consumer data.The median projection for Federal Funds rate by year-end remained the same at 4.625%,implying three 0.25%cuts.We continue to believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. The US T reasury yield curve stabilized in March as the FOMC left the Federal Funds rate unchanged. The 2-year Treasury yield was unchanged at 4.62%,the 5-year Treasury fell 4 basis points to 4.21%,and the 10-year Treasury yield dropped 5 basis points to 4.20%.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -42 basis points at March month-end versus -37 basis points at February month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -56 basis points. The inversion between 3-month and 10-year Treasuries widened to -117 basis points in March from -113 basis points in February. 3 125 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 a better-than-expected 303,000 jobs in March,and the prior two months were revised up by 22,000.Leading sectors included healthcare and government.Job creation remains healthy,with the three-month moving average payrolls at 276,000 and the six-month moving average at 244,000.The unemployment rate edged down to 3.8%in March.The laborparticipation rate ticked up to 62.7%but remained below the pre-pandemic level of 63.3%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons was unchanged at 7.3%.Average hourly earnings rose 4.1%year- over-year in March, down from 4.3% last month. Employment remains strong by historical standards. Source: US Department of Labor Source: US Department of Labor 4 126 Job Openings & Labor Turnover Survey 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS)edged up to 8.756 million in February compared to a downwardly revised 8.748 million in January.Job openings still represent a healthy ratio of around 1.4 jobs for each unemployed individual. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. Source: US Department of Labor 5 127 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)came in higher than expected in February,increasing 0.4%month-over-month and 3.2%year-over-year. The Core CPI,which excludes volatile food and energy components,was up 0.4%month-over-month and 3.8%year-over-year in February, falling from 3.9%last month.Shelter costs remain elevated,accounting for about two-thirds of the year-over-year increase.The Personal Consumption Expenditures (PCE)Index headline inflation increased 0.3%month-over-month and rose 2.5%year-over-year in February,in line with expectations.Core PCE,the Federal Reserve’s preferred inflation gauge,increased 0.3%month-over-month and rose 2.8%year- over-year. While the trend is moderating, the path to the Fed's 2% inflation target remains uneven. Source: US Department of Labor Source: US Department of Commerce 6 128 Consumer -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e February Retail Sales fell short of expectations but rebounded 0.6%month-over-month from a downwardly revised 1.1%decline last month.On a year-over-year basis, Retail Sales growth increased just 1.5%for February.Sales got a boost in the month from building materials and garden equipment stores,motor vehicles,and higher prices at the pump.Control-group sales,which are used to calculate gross domestic product,were unchanged in February after falling in the prior month, suggesting weaker economic activity in the first quarter.The Conference Board’s Consumer Confidence Index edged down to 104.7 in March after a sizeable downward revision to 104.8 in February.The lower reading was largely due to a deteriorating view of the labor market and future business conditions,along with concerns about the highly polarized political environment.While the consumer has been resilient,dwindling excess savings, rising credit card balances, and the resumption of student loan payments pose potential headwinds to future economic growth. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) 7 129 Leading Indicators of Economic Activity -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI)rose to 0.1%month-over-month in February ending its 2-year uninterrupted contraction since February 2022.The index declined 6.3%year-over-year.The Conference Board is no longer calling for recession but expects GDP growth to slow to near zero this year.The Chicago Fed National Activity Index (CFNAI)increased +0.05 in February from a downwardly revised -0.54 in January.On a 3-month moving average basis,the CFNAI decreased to -0.18 in February from -0.11 in January, indicating moderating economic growth. Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 130 Housing 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts Housing Starts increased 10.7%month-over-month in February to 1.521 million units, due to milder weather than seen in January and some rising confidence among homebuilders as mortgage rates fell below 7%.Starts for multi-family homes increased 8.6%,while single family homes increased 11.6%for the month.Total starts of new single-family homes are up 35.2%year-over-year.According to Freddie Mac,30-year fixed mortgage rates averaged 6.79%as of March 31st.According to the Case-Shiller 20-City Home Price Index, housing prices rose 6.59%year-over-year in January,accelerating from a 6.15%year-over-year gain in December.Tight inventories and higher mortgage rates continue to impact affordability. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case -Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e 9 131 Survey Based Measures 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM)Manufacturing index unexpectedly expanded to 50.3 in March from 47.8 in February,marking the first month of expansion in factory activity above a reading of 50 since 2022.Production and new orders surged,while employment improved and prices paid increased. The ISM Services Index fell to 51.4 in March from 52.6 in February but remained in expansion territory for the 15th consecutive month. The survey reflected slower growth in new orders,a contraction in employment,faster supplier deliveries, and declining price pressures. Source: Institute for Supply Management 10 132 Gross Domestic Product (GDP) Components of GDP 3/23 6/23 9/23 12/23 2.5% 0.6% 2.1% 2.2% -1.7% 0.9% 1.7% 0.2% 0.6% 0.0% 0.0% 0.3% 0.3% 0.1% 0.5% 0.2% 0.5% 0.5% 0.5% 0.6% 2.3% 2.1% 4.9% 3.4% Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total State and Local (Consumption and Gross Investment) -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce According to the third estimate,fourth quarter GDP increased at an annualized rate of 3.4%,revised up from the second estimate of 3.2%. The upward revision was due mainly to stronger personal consumption expenditures and nonresidential investment.GDP growth for the full year 2023 is estimated at 2.5%.The consensus projection calls for 2.0%growth in the first quarter and 2.2%growth for the full year 2024. 11 133 Federal Reserve Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As expected at the March meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The FOMC Statement and Summary of Economic Projections (SEP) was minimally changed from January. The Fed assesses the progress to achieving its employment and inflation goals are moving into better balance, yet changes to monetary policy remain data dependent. For 2024, the March SEP showed stronger real GDP growth outlook of 2.1% from 1.4% in December as labor market and consumer data have been resilient. Core inflation projections nudged up from 2.4% to 2.6%. The median projection for the Federal Funds rate by the end of the year remained the same at 4.625%, implying three 0.25% cuts in 2024, three cuts in 2025 and three cuts in 2026. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.5T to approximately $7.5T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) 12 134 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 Y i e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Mar-24 Dec-23 Mar-23 Yi e l d ( % ) At the end of March,the 2-year Treasury yield was 59 basis point higher, and the 10-Year Treasury yield was 73 basis points higher,year- over-year.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -42 basis points at March month-end versus -37 basis points at February month-end. The average historical spread (since 2003)is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -117 basis points in March from -113 basis points in February. 13 135 Section 2|SECTION |Section 2 |Account Profile 14 136 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 March 31, 2024 15 137 Compliance As of March 31, 2024 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. 16 138 Compliance As of March 31, 2024 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. 17 139 Portfolio Summary As of March 31, 2024 18 140 Portfolio Characteristics City of Cupertino 03/31/24 12/31/23 Benchmark*Portfolio Portfolio Average Maturity (yrs)1.85 2.03 2.10 Average Modified Duration 1.76 1.75 1.76 Average Purchase Yield n/a 2.44%2.19% Average Market Yield 4.73%5.14%4.69% Average Quality**AA+AA+AA/Aa1 Total Market Value 154,774,606 153,958,566 *ICE BofA 1-3 Yr US Treasury & Agency Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. As of March 31, 2024 19 141 City of Cupertino Sector Distribution Agency 16.6% Asset Backed Security 10.8% Corporate 28.2% Money Market Fund 0.3% Municipal Bonds 0.5% Supranational 4.5% US Treasury 35.4% Agency CMBS 3.7% Cash 0.0% March 31, 2024 December 31, 2023 ABS 10.1% Agency 16.7% Corporate 27.5% Money Market Fund 0.3% Municipal Bonds 0.5% Supranational 4.5% US Treasury 36.8% CMO 3.7% As of March 31, 2024 20 142 Duration Allocation As of March 31, 2024 City of Cupertino 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/24 4.3%7.7%15.4%32.5%22.4%17.6%0.0%0.0% -5% 0% 5% 10% 15% 20% 25% 30% 35% 0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years Agency Agency CMBS Asset Backed Security Cash Corporate Money Market Fund Municipal Bonds Supranational US Treasury 21 143 Portfolio Allocation & Duration Changes City of Cupertino As of March 31, 2024 Benchmark: ICE BofA 1-3 Yr US Treasury & Agency Index 99.8%100.3%104.5% 117.8% 131.4%130.7% 135.3%134.8% 80.0% 90.0% 100.0% 110.0% 120.0% 130.0% 140.0% 150.0% 03/31/2412/31/2309/30/2306/30/2303/31/2312/31/2209/30/2206/30/22 Duration as a % of the Benchmark 0.0% 0.3% 0.5% 3.7% 4.5% 10.1% 16.7% 27.5% 36.8% 0.0% 0.3% 0.5% 3.7% 4.5% 10.8% 16.6% 28.2% 35.4% Cash Money Market Fund Municipal Bonds Agency CMBS Supranational Asset Backed Security Agency Corporate US Treasury Portfolio Allocation 03/31/24 12/31/23 22 144 Issue Name Investment Type % Portfolio United States Government US Treasury 35.41% Federal National Mortgage Association Agency 8.76% Federal Home Loan Mortgage Corp Agency 3.76% Federal Home Loan Mortgage Corp Agency CMBS 3.70% Federal Home Loan Bank Agency 2.25% US Treasury US Treasury 1.90% Federal Farm Credit Bank Agency 1.85% American Express ABS Asset Backed Security 1.84% John Deere ABS Asset Backed Security 1.78% JP Morgan Chase & Co Corporate 1.65% Toyota Motor Corp Corporate 1.59% Bank of America Corp Corporate 1.54% International Finance Corp Supranational 1.53% Bank of New York Corporate 1.52% Inter-American Dev Bank Supranational 1.48% Intl Bank Recon and Development Supranational 1.45% Toronto Dominion Holdings Corporate 1.30% Cisco Systems Corporate 1.30% Deere & Company Corporate 1.30% Northwestern Mutual Glbl Corporate 1.26% Paccar Financial Corporate 1.24% Bank of Montreal Chicago Corporate 1.16% State Street Bank Corporate 1.14% Amazon.com Inc Corporate 1.12% Salesforce.com Inc Corporate 1.12% Metlife Inc Corporate 1.12% Prudential Financial Inc Corporate 1.11% GM Financial Securitized Term Auto Trust Asset Backed Security 1.09% JP Morgan ABS Asset Backed Security 1.09% Morgan Stanley Corporate 1.08% Honda ABS Asset Backed Security 1.07% New York Life Global Funding Corporate 1.06% United Health Group Inc Corporate 1.05% Toyota ABS Asset Backed Security 1.04% Hyundai Auto Receivables Asset Backed Security 1.01% Berkshire Hathaway Corporate 0.98% Guardian Life Global Funding Corporate 0.84% Mercedes-Benz Asset Backed Security 0.73% Issuers City of Cupertino – Account #10659 As of March 31, 2024 23 145 Issue Name Investment Type % Portfolio Caterpillar Inc Corporate 0.70% Royal Bank of Canada Corporate 0.68% MasterCard Inc Corporate 0.62% Mass Mutual Insurance Corporate 0.59% Charles Schwab Corp/The Corporate 0.58% Bank of America Credit Card Trust Asset Backed Security 0.55% State of California Municipal Bonds 0.49% Northern Trust Corp Corporate 0.43% BMW ABS Asset Backed Security 0.27% WC MMF Sweep Money Market Fund 0.24% Wal-Mart Stores Corporate 0.21% Toyota Lease Owner Trust Asset Backed Security 0.19% GM Financial Automobile Leasing Trust Asset Backed Security 0.08% Hyundai Auto Lease Securitization Asset Backed Security 0.04% Wells Fargo Bank Money Market Fund 0.03% Account Receivable Payable Cash -0.01% TOTAL 100.00% Issuers City of Cupertino – Account #10659 As of March 31, 2024 24 146 AAA AA A <A NR 03/31/24 13.0%67.3%19.7%0.0%0.0% 12/31/23 13.8%60.4%19.1%0.0%6.6% Source: S&P Ratings March 31, 2024 vs. December 31, 2023 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% AAA AA A <A NR 03/31/24 12/31/23 Quality Distribution City of Cupertino As of March 31, 2024 25 147 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 4.3% 7.7% 15.4% 32.5% 22.4% 17.6% 0.0% 0.0% Benchmark*0.0% 0.0% 3.7% 57.7% 38.5% 0.0% 0.0% 0.0% *ICE BofA 1-3 Yr US Treasury & Agency Index Duration Distribution City of Cupertino As of March 31, 2024 26 148 Total Rate of Return Annualized Since Inception January 31, 2019 *ICE BofA 1-5 Yr US Treasury & Agency Index to 06/08/2023. Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Investment Performance City of Cupertino -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino Gross of Fees 0.54%3.49%1.59%-0.17%1.30%N/A 1.36% ICE BofA 1-3 Yr US Treasury & Agency Index 0.30%2.69%1.14%-0.50%1.00%N/A 1.14% City of Cupertino Net of Fees 0.54%3.42%1.52%-0.24%1.23%N/A 1.29% As of March 31, 2024 27 149 Purchase Yield as of 03/31/24 = 2.44% 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Pe r c e n t ( % ) Historical Average Purchase Yield City of Cupertino As of March 31, 2024 28 150 SECTION |Section 3 |Portfolio Holdings 29 151 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration ABS 44891WAC3 HALST 2022-A A3 1.16 01/15/2025 54,901.51 01/11/2022 1.16% 54,900.30 54,901.24 99.81 10.03% 54,799.02 28.30 0.04% (102.22) Aaa/AAA NA 0.79 0.04 89238LAC4 TLOT 2022-A A3 1.96 02/20/2025 292,917.96 02/23/2022 1.96% 292,871.86 292,905.76 99.65 6.93% 291,897.35 175.43 0.19% (1,008.42) NA/AAA AAA 0.89 0.11 02589BAA8 AMXCA 2022-1 A 2.21 03/17/2025 1,545,000.00 03/21/2022 2.69% 1,524,359.77 1,538,376.70 97.11 5.33% 1,500,324.01 1,517.53 0.97% (38,052.69) Aaa/NA AAA 0.96 1.46 36265MAC9 GMALT 2022-1 A3 1.9 03/20/2025 131,051.38 02/15/2022 1.91% 131,050.25 131,051.08 99.76 7.67% 130,732.71 76.08 0.08% (318.37) Aaa/NA AAA 0.97 0.07 43813GAC5 HAROT 2021-1 A3 0.27 04/21/2025 19,248.69 02/17/2021 0.27% 19,248.34 19,248.63 99.43 5.97% 19,138.62 1.44 0.01% (110.01) Aaa/NA AAA 1.06 0.15 89240BAC2 TAOT 2021-A A3 0.26 05/15/2025 76,835.04 02/02/2021 0.27% 76,820.77 76,832.42 99.49 5.97% 76,443.39 8.88 0.05% (389.03) Aaa/NA AAA 1.12 0.14 02582JJT8 AMXCA 2022-2 A 05/17/2027 1,375,000.00 05/17/2022 3.42% 1,374,695.85 1,374,834.89 97.93 5.33% 1,346,593.60 2,071.67 0.87% (28,241.29) NA/AAA AAA 1.12 1.60 44933LAC7 HART 2021-A A3 0.38 09/15/2025 81,208.13 04/20/2021 0.39% 81,199.58 81,206.06 99.18 4.94% 80,542.64 13.72 0.05% (663.42) NA/AAA AAA 1.46 0.24 43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 249,940.28 11/16/2021 0.89% 249,887.59 249,919.72 97.56 4.99% 243,849.16 61.10 0.16% (6,070.56) Aaa/NA AAA 1.81 0.67 47789QAC4 JDOT 2021-B A3 0.52 03/16/2026 259,813.28 07/13/2021 0.52% 259,790.10 259,804.74 97.64 5.45% 253,694.10 60.05 0.16% (6,110.64) Aaa/NA AAA 1.96 0.53 89238JAC9 TAOT 2021-D A3 0.71 04/15/2026 240,313.24 11/09/2021 0.71% 240,308.12 240,311.17 97.44 4.51% 234,161.22 75.83 0.15% (6,149.95) NA/AAA AAA 2.04 0.72 43815BAC4 HAROT 2022-1 A3 1.88 05/15/2026 587,241.38 02/15/2022 1.89% 587,153.05 587,200.53 97.68 4.97% 573,593.77 490.67 0.37% (13,606.76) Aaa/AAA NA 2.12 0.81 44935FAD6 HART 2021-C A3 0.74 05/15/2026 707,823.98 -- 2.17% 689,927.02 699,680.10 97.77 4.53% 692,033.49 232.80 0.45% (7,646.62) NA/AAA AAA 2.12 0.66 05602RAD3 BMWOT 2022-A A3 3.21 08/25/2026 420,955.28 05/10/2022 3.23% 420,933.39 420,943.77 98.48 4.87% 414,573.17 225.21 0.27% (6,370.60) Aaa/AAA NA 2.40 0.93 47787JAC2 JDOT 2022 A3 0.36 09/15/2026 312,457.37 03/10/2022 2.34% 312,388.25 312,421.97 97.90 5.26% 305,896.58 322.18 0.20% (6,525.40) Aaa/NA AAA 2.46 0.77 362554AC1 GMCAR 2021-4 A3 0.68 09/16/2026 204,474.64 10/13/2021 0.68% 204,469.43 204,472.40 97.10 4.44% 198,552.04 57.93 0.13% (5,920.37) Aaa/AAA NA 2.46 0.85 448977AD0 HART 2022-A A3 2.22 10/15/2026 808,931.61 03/09/2022 2.23% 808,900.47 808,915.85 97.85 4.81% 791,542.89 798.15 0.51% (17,372.96) NA/AAA AAA 2.54 0.91 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 30 152 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 380146AC4 GMCAR 2022-1 A3 1.23 11/16/2026 202,553.59 01/11/2022 1.27% 202,535.99 202,545.07 97.54 4.53% 197,574.14 106.34 0.13% (4,970.94) NA/AAA AAA 2.63 0.90 05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024 4.58% 858,798.83 858,231.75 100.24 4.97% 852,036.18 1,881.33 0.55% (6,195.57) Aaa/NA AAA 2.63 2.40 362585AC5 GMCAR 2022-2 A3 3.1 02/16/2027 354,988.18 04/05/2022 3.13% 354,913.99 354,947.31 98.21 4.82% 348,626.48 458.53 0.23% (6,320.83) Aaa/AAA NA 2.88 1.12 47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 655,000.00 07/12/2022 3.77% 654,937.45 654,961.89 98.54 5.32% 645,409.62 1,088.76 0.42% (9,552.27) Aaa/NA AAA 2.88 1.04 47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 1,050,000.00 10/12/2022 5.15% 1,049,918.52 1,049,944.62 99.65 5.44% 1,046,296.86 2,375.33 0.68% (3,647.76) Aaa/NA AAA 3.21 1.33 89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 1,300,000.00 11/21/2023 5.40% 1,294,718.75 1,295,142.96 100.09 5.18% 1,301,180.79 2,981.33 0.84% 6,037.83 NA/AAA AAA 4.05 2.47 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 805,000.00 -- 5.64% 806,992.67 806,790.04 101.21 5.30% 814,741.55 1,267.88 0.53% 7,951.50 Aaa/NA AAA 4.22 2.50 47800RAD5 JDOT 2024 A3 4.96 11/15/2028 500,000.00 03/25/2024 5.13% 499,765.63 499,766.32 99.98 5.45% 499,921.15 826.67 0.32% 154.83 Aaa/NA AAA 4.63 2.28 58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 1,100,000.00 11/29/2023 5.18% 1,123,289.06 1,121,406.32 101.76 5.37% 1,119,380.57 2,908.89 0.73% (2,025.75) NA/AAA AAA 4.63 2.78 36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 950,000.00 01/23/2024 4.90% 950,074.22 950,070.80 99.72 5.05% 947,383.60 1,919.79 0.61% (2,687.19) Aaa/NA AAA 4.72 3.05 161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 4.61% 1,689,742.61 1,689,751.27 99.44 4.86% 1,680,492.57 3,455.11 1.09% (9,258.71) NR/AAA AAA 4.80 2.71 Total ABS 16,825,655.52 3.73% 16,814,591.86 16,836,585.39 99.04 5.18% 16,661,411.25 25,486.92 10.81% (175,174.14) Aaa/AAA AAA 2.98 1.74 AGENCY 3130A1XJ2 FEDERAL HOME LOAN BANKS 2.875 06/14/2024 1,500,000.00 06/18/2019 1.99% 1,564,890.20 1,502,635.50 99.52 6.30% 1,492,776.78 12,817.71 0.97% (9,858.72) Aaa/AA+ AA+ 0.21 0.21 3135G0V75 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.75 07/02/2024 1,500,000.00 07/16/2019 1.96% 1,484,895.00 1,499,233.08 99.09 6.61% 1,486,321.34 6,489.58 0.96% (12,911.74) Aaa/AA+ AA+ 0.25 0.25 3130A2UW4 FEDERAL HOME LOAN BANKS 2.875 09/13/2024 2,000,000.00 09/13/2019 1.82% 2,103,380.00 2,009,351.81 98.93 5.75% 1,978,565.76 2,875.00 1.28% (30,786.05) Aaa/AA+ AA+ 0.45 0.44 3135G0W66 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.625 10/15/2024 1,975,000.00 -- 1.72% 1,965,802.75 1,973,979.72 98.11 5.90% 1,937,605.96 14,798.78 1.26% (36,373.76) Aaa/AA+ AA+ 0.54 0.52 3135G0X24 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.625 01/07/2025 1,295,000.00 -- 1.38% 1,309,953.95 1,297,389.11 97.36 5.48% 1,260,816.55 4,910.21 0.82% (36,572.56) Aaa/AA+ AA+ 0.77 0.75 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 31 153 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 3137EAEP0 FEDERAL HOME LOAN MORTGAGE CORP 1.5 02/12/2025 2,365,000.00 02/13/2020 1.52% 2,363,178.95 2,364,683.68 96.91 5.48% 2,291,939.69 4,828.54 1.49% (72,744.00) Aaa/AA+ AA+ 0.87 0.84 3135G03U5 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.625 04/22/2025 1,860,000.00 04/22/2020 0.67% 1,856,168.40 1,859,189.15 95.48 5.38% 1,775,949.35 5,134.38 1.15% (83,239.80) Aaa/AA+ AA+ 1.06 1.03 3135G04Z3 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 06/17/2025 2,500,000.00 -- 0.50% 2,499,227.30 2,499,863.92 94.84 5.21% 2,370,876.00 3,611.11 1.54% (128,987.92) Aaa/AA+ AA+ 1.21 1.18 3137EAEU9 FEDERAL HOME LOAN MORTGAGE CORP 0.375 07/21/2025 1,250,000.00 07/21/2020 0.48% 1,243,775.00 1,248,375.49 94.34 5.23% 1,179,232.22 911.46 0.77% (69,143.27) Aaa/AA+ AA+ 1.31 1.27 3135G05X7 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 2,500,000.00 -- 0.47% 2,487,983.75 2,496,536.58 93.93 5.17% 2,348,325.00 937.50 1.52% (148,211.58) Aaa/AA+ AA+ 1.40 1.37 3137EAEX3 FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 2,500,000.00 -- 0.46% 2,489,362.80 2,496,784.93 93.67 5.11% 2,341,747.02 208.33 1.52% (155,037.91) Aaa/AA+ AA+ 1.48 1.44 3135G06G3 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 11/07/2025 2,500,000.00 -- 0.56% 2,492,700.00 2,497,654.18 93.47 4.98% 2,336,821.02 5,000.00 1.52% (160,833.15) Aaa/AA+ AA+ 1.61 1.56 3133EPC60 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/2023 4.73% 2,789,612.00 2,790,593.21 100.55 4.39% 2,815,293.63 48,922.22 1.83% 24,700.42 Aaa/AA+ AA+ 3.63 3.26 Total Agency 26,545,000.00 1.48% 26,650,930.10 26,536,270.36 96.56 5.37% 25,616,270.33 111,444.83 16.62% (920,000.03) Aaa/AA+ AA+ 1.27 1.21 AGENCY CMBS 3137BFE98 FHMS K-041 A2 3.171 10/25/2024 1,277,224.35 07/01/2021 0.66% 1,373,914.22 1,292,194.10 98.68 2.76% 1,260,308.54 3,375.07 0.82% (31,885.57) Aaa/AA+ AAA 0.57 0.49 3137BLMZ8 FHMS K-049 A2 3.01 07/25/2025 1,000,000.00 07/01/2021 0.87% 1,079,687.50 1,024,974.22 97.38 5.32% 973,771.00 2,508.33 0.63% (51,203.22) Aaa/AA+ AAA 1.32 1.15 3137BLW95 FHMS K-050 A2 3.334 08/25/2025 950,000.00 11/16/2021 1.22% 1,018,132.81 974,560.09 97.64 5.26% 927,563.94 2,639.42 0.60% (46,996.14) Aaa/AA+ AAA 1.40 1.21 3137BM7C4 FHMS K-051 A2 3.308 09/25/2025 440,000.00 03/15/2022 2.32% 453,079.69 445,364.43 97.51 5.23% 429,032.91 1,212.93 0.28% (16,331.52) Aaa/AA+ AAA 1.49 1.29 3137BN6G4 FHMS K-053 A2 2.995 12/25/2025 570,000.00 03/15/2022 2.32% 582,001.17 575,423.38 96.83 5.16% 551,957.73 1,422.62 0.36% (23,465.64) Aaa/AA+ AAA 1.74 1.51 3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021 1.36% 687,451.17 668,572.99 95.21 4.94% 618,860.19 1,437.04 0.40% (49,712.80) Aaa/AA+ AAA 2.40 2.24 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022 4.36% 950,664.06 965,943.37 95.60 4.80% 955,961.00 2,703.33 0.62% (9,982.37) Aaa/AA+ AA+ 3.40 3.08 Total Agency CMBS 5,887,224.35 1.77% 6,144,930.62 5,947,032.58 97.13 4.60% 5,717,455.32 15,298.75 3.71% (229,577.27) Aaa/AA+ AAA 1.69 1.50 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 32 154 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration CASH CCYUSD Payable (1,340,000.00)-- 0.00% (1,340,000.00) (1,340,000.00) 1.00 0.00% (1,340,000.00) 0.00 (0.87%) 0.00 Aaa/AAA AAA 0.00 0.00 CCYUSD Receivable 1,324,050.19 -- 0.00% 1,324,050.19 1,324,050.19 1.00 0.00% 1,324,050.19 0.00 0.86% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash (15,949.81)0.00% (15,949.81) (15,949.81) 1.00 0.00% (15,949.81) 0.00 (0.01%) 0.00 Aaa/AAA AAA 0.00 0.00 CORPORATE 06367TQW3 BANK OF MONTREAL 0.625 07/09/2024 600,000.00 02/09/2022 1.88% 582,216.00 597,997.02 98.64 6.77% 591,852.81 854.17 0.38% (6,144.21) A2/A- AA- 0.27 0.27 79466LAG9 SALESFORCE INC 0.625 07/15/2024 1,760,000.00 -- 0.87% 1,748,937.40 1,758,786.86 98.61 6.93% 1,735,575.64 2,322.22 1.13% (23,211.22) A1/A+ NA 0.29 0.29 69371RR40 PACCAR FINANCIAL CORP 0.5 08/09/2024 680,000.00 08/03/2021 0.52% 679,632.80 679,956.45 98.22 6.77% 667,870.66 491.11 0.43% (12,085.78) A1/A+ NA 0.36 0.35 69371RQ25 PACCAR FINANCIAL CORP 2.15 08/15/2024 370,000.00 08/08/2019 2.19% 369,182.30 369,939.13 98.77 6.40% 365,463.51 1,016.47 0.24% (4,475.62) A1/A+ NA 0.38 0.37 14913Q3B3 CATERPILLAR FINANCIAL SERVICES CORP 2.15 11/08/2024 1,100,000.00 01/28/2020 1.93% 1,111,517.00 1,101,459.44 98.09 5.87% 1,078,936.30 9,394.31 0.70% (22,523.14) A2/A A+ 0.61 0.59 74153WCQ0 PRICOA GLOBAL FUNDING I 1.15 12/06/2024 885,000.00 12/01/2021 1.18% 884,088.45 884,792.53 97.11 6.01% 859,437.47 3,251.15 0.56% (25,355.05) Aa3/AA- AA- 0.68 0.66 89114TZL9 TORONTO-DOMINION BANK 1.45 01/10/2025 700,000.00 03/15/2022 2.78% 674,737.00 693,034.28 96.98 5.77% 678,868.97 2,283.75 0.44% (14,165.30) A1/A NA 0.78 0.76 89236TJT3 TOYOTA MOTOR CREDIT CORP 1.45 01/13/2025 1,215,000.00 01/10/2022 1.50% 1,213,371.90 1,214,573.66 97.05 5.70% 1,179,184.12 3,817.12 0.77% (35,389.54) A1/A+ A+ 0.79 0.76 64952WEK5 NEW YORK LIFE GLOBAL FUNDING 1.45 01/14/2025 1,680,000.00 01/11/2022 1.49% 1,678,185.60 1,679,523.22 97.06 5.85% 1,630,678.21 5,210.33 1.06% (48,845.02) Aaa/AA+ AAA 0.79 0.77 69371RR73 PACCAR FINANCIAL CORP 2.85 04/07/2025 885,000.00 03/31/2022 2.86% 884,769.90 884,922.11 97.71 5.28% 864,750.80 12,190.88 0.56% (20,171.31) A1/A+ NA 1.02 0.98 78016EZ59 ROYAL BANK OF CANADA 3.375 04/14/2025 1,050,000.00 04/07/2022 3.39% 1,049,611.50 1,049,866.01 98.04 5.44% 1,029,410.69 16,439.06 0.67% (20,455.32) A1/A AA- 1.04 0.99 06406RBC0 BANK OF NEW YORK MELLON CORP 3.35 04/25/2025 1,370,000.00 04/19/2022 3.35% 1,369,808.20 1,369,931.86 97.99 5.54% 1,342,397.80 19,887.83 0.87% (27,534.06) A1/A AA- 1.07 1.02 06367WB85 BANK OF MONTREAL 1.85 05/01/2025 1,240,000.00 07/23/2021 0.86% 1,285,656.80 1,253,125.50 96.30 5.62% 1,194,136.44 9,558.33 0.77% (58,989.05) A2/A- AA- 1.08 1.05 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 33 155 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 46647PCK0 JPMORGAN CHASE & CO 0.969 06/23/2025 655,000.00 -- 0.95% 655,406.85 655,030.84 98.84 6.33% 647,392.90 1,727.78 0.42% (7,637.94) A1/A- AA- 1.23 0.23 66815L2J7 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.0 07/01/2025 1,170,000.00 06/27/2022 4.01% 1,169,602.20 1,169,834.49 98.65 5.19% 1,154,252.40 11,700.00 0.75% (15,582.09) Aaa/AA+ AAA 1.25 1.20 74153WCM9 PRICOA GLOBAL FUNDING I 0.8 09/01/2025 904,000.00 04/06/2022 3.23% 832,972.72 874,376.71 93.92 5.56% 849,033.16 602.67 0.55% (25,343.55) Aa3/AA- AA- 1.42 1.38 06406HCQ0 BANK OF NEW YORK MELLON CORP 3.95 11/18/2025 1,000,000.00 04/05/2022 3.21% 1,024,910.00 1,010,910.19 97.95 5.32% 979,515.14 14,593.06 0.64% (31,395.05) A1/A AA- 1.64 1.54 40139LBC6 GUARDIAN LIFE GLOBAL FUNDING 0.875 12/10/2025 1,400,000.00 -- 1.12% 1,385,860.00 1,394,278.34 92.96 5.64% 1,301,464.18 3,777.08 0.84% (92,814.16) Aa1/AA+ NA 1.70 1.64 66815L2A6 NORTHWESTERN MUTUAL GLOBAL FUNDING 0.8 01/14/2026 850,000.00 12/06/2021 1.46% 827,449.50 840,169.91 92.78 5.35% 788,652.89 1,454.44 0.51% (51,517.02) Aaa/AA+ AAA 1.79 1.73 06051GHY8 BANK OF AMERICA CORP 2.015 02/13/2026 600,000.00 05/24/2021 1.06% 620,988.00 604,911.10 96.88 6.14% 581,263.66 1,612.00 0.38% (23,647.44) A1/A- AA- 1.87 0.84 46647PBK1 JPMORGAN CHASE & CO 2.083 04/22/2026 401,000.00 05/20/2021 1.11% 415,969.33 405,043.50 96.36 6.49% 386,388.46 3,689.17 0.25% (18,655.04) A1/A- AA- 2.06 1.02 6174468Q5 MORGAN STANLEY 2.188 04/28/2026 650,000.00 05/23/2022 4.22% 615,699.50 636,587.73 96.48 6.47% 627,088.46 6,044.35 0.41% (9,499.27) A1/A- A+ 2.08 1.03 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,875,000.00 05/10/2021 1.09% 1,866,900.00 1,871,579.90 92.34 4.96% 1,731,436.67 7,239.58 1.12% (140,143.23) A1/AA AA- 2.11 2.04 91324PEC2 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,035,000.00 -- 1.37% 1,025,051.35 1,030,205.61 92.49 5.03% 957,322.05 4,496.50 0.62% (72,883.56) A2/A+ A 2.12 2.05 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,385,000.00 06/15/2021 1.13% 1,384,390.60 1,384,730.34 92.04 5.09% 1,274,792.64 4,457.97 0.83% (109,937.70) A1/A+ A+ 2.22 2.14 06051GJD2 BANK OF AMERICA CORP 1.319 06/19/2026 700,000.00 07/16/2021 1.27% 701,274.00 700,395.56 95.06 6.16% 665,392.42 2,616.02 0.43% (35,003.14) A1/A- AA- 2.22 1.18 57629WDE7 MASSMUTUAL GLOBAL FUNDING II 1.2 07/16/2026 1,000,000.00 08/19/2021 1.15% 1,002,230.00 1,001,042.66 91.55 5.42% 915,511.88 2,500.00 0.59% (85,530.78) Aa3/AA+ AA+ 2.29 2.21 58989V2D5 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,652.40 91.04 5.42% 700,971.09 454.51 0.45% (68,681.31) Aa3/AA- AA- 2.46 2.36 931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,674.32 91.68 4.82% 320,863.04 142.92 0.21% (28,811.28) Aa2/AA AA 2.47 2.38 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 1,000,000.00 -- 5.88% 1,000,082.50 1,000,070.78 101.93 5.08% 1,019,278.40 24,508.33 0.66% 19,207.62 Aa3/A+ AA- 2.58 2.25 59217GER6 METROPOLITAN LIFE GLOBAL FUNDING I 1.875 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,293.45 91.85 5.30% 1,024,155.04 4,645.83 0.66% (90,138.41) Aa3/AA- AA- 2.78 2.64 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 34 156 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 2,000,000.00 -- 4.71% 2,004,911.40 2,004,837.36 100.16 4.80% 2,003,217.04 9,333.33 1.30% (1,620.32) A1/AA- NA 2.91 2.67 808513BY0 CHARLES SCHWAB CORP 2.45 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,840.22 93.19 5.16% 894,612.80 1,829.33 0.58% (65,227.42) A2/A- A 2.92 2.76 24422EXM6 JOHN DEERE CAPITAL CORP 4.85 03/05/2027 2,000,000.00 03/11/2024 4.77% 2,004,220.00 2,004,146.24 100.04 4.77% 2,000,865.50 6,466.67 1.30% (3,280.74) A1/A A+ 2.93 2.70 084664CZ2 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 1,615,000.00 03/07/2022 2.30% 1,614,693.15 1,614,818.85 94.16 4.63% 1,520,763.86 1,650.89 0.99% (94,054.99) Aa2/AA A+ 2.96 2.81 857477CL5 STATE STREET CORP 4.993 03/18/2027 1,760,000.00 03/13/2024 4.99% 1,760,000.00 1,760,000.00 100.19 4.99% 1,763,409.24 3,173.33 1.14% 3,409.24 NA/A AA- 2.96 2.72 89115A2W1 TORONTO-DOMINION BANK 4.98 04/05/2027 1,340,000.00 03/26/2024 4.98% 1,340,000.00 1,340,000.00 99.85 4.98% 1,338,009.14 0.00 0.87% (1,990.86) A1/A NA 3.01 2.75 06051GHT9 BANK OF AMERICA CORP 3.559 04/23/2027 1,150,000.00 -- 4.29% 1,114,222.54 1,126,767.92 96.49 5.83% 1,109,661.91 17,963.06 0.72% (17,106.01) A1/A- AA- 3.06 1.93 665859AW4 NORTHERN TRUST CORP 4.0 05/10/2027 670,000.00 05/05/2022 4.03% 668,914.60 669,325.93 97.42 4.92% 652,739.73 10,496.67 0.42% (16,586.21) A2/A+ A+ 3.11 2.84 91324PEG3 UNITEDHEALTH GROUP INC 3.7 05/15/2027 675,000.00 05/17/2022 3.69% 675,316.70 675,196.16 96.96 4.74% 654,483.73 9,435.00 0.42% (20,712.43) A2/A+ A 3.12 2.87 46647PEA0 JPMORGAN CHASE & CO 5.04 01/23/2028 1,500,000.00 03/11/2024 5.02% 1,500,780.00 1,500,765.83 99.66 5.49% 1,494,827.62 14,280.00 0.97% (5,938.21) A1/A- AA- 3.82 2.57 57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,278.52 101.31 4.49% 957,378.54 2,815.31 0.62% 13,100.02 Aa3/A+ NA 3.94 3.48 Total Corporate 45,010,000.00 2.75% 44,879,732.04 44,950,672.94 96.81 5.45% 43,533,307.00 260,422.54 28.24% (1,417,365.94) A1/A+ AA- 1.99 1.75 MONEY MARKET FUND 992995944 WC MMF SWEEP 50,725.58 -- 2.85% 50,725.58 50,725.58 1.00 2.85% 50,725.58 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 VP4520004 WF ADV 100% TREAS MM FD-SVC CL #008 376,231.24 -- 0.01% 376,231.24 376,231.24 1.00 0.01% 376,231.24 0.00 0.24% 0.00 Aaa/ AAAm NA 0.00 0.00 Total Money Market Fund 426,956.82 0.35% 426,956.82 426,956.82 1.00 0.35% 426,956.82 0.00 0.28% 0.00 Aaa/AAA NA 0.00 0.00 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 35 157 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration MUNICIPAL BONDS 13063DRK6 CALIFORNIA ST 2.4 10/01/2024 755,000.00 10/16/2019 1.92% 772,342.35 756,759.23 98.53 5.33% 743,901.50 9,060.00 0.48% (12,857.73) Aa2/AA- AA 0.50 0.49 Total Municipal Bonds 755,000.00 10/16/2019 1.92% 772,342.35 756,759.23 98.53 5.33% 743,901.50 9,060.00 0.48% (12,857.73) Aa2/AA- AA 0.50 0.49 SUPRANATIONAL 45950KCT5 INTERNATIONAL FINANCE CORP 0.375 07/16/2025 2,500,000.00 05/27/2021 0.66% 2,471,150.00 2,490,977.19 94.34 5.32% 2,358,536.20 1,953.12 1.53% (132,440.99) Aaa/AAA NA 1.29 1.26 459058JL8 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 0.5 10/28/2025 2,400,000.00 -- 0.60% 2,388,859.25 2,396,268.74 93.53 5.14% 2,244,801.67 5,100.00 1.46% (151,467.07) Aaa/AAA NA 1.58 1.53 4581X0DV7 INTER-AMERICAN DEVELOPMENT BANK 0.875 04/20/2026 2,460,000.00 04/13/2021 0.97% 2,448,733.20 2,455,378.51 92.58 4.87% 2,277,569.70 9,626.46 1.48% (177,808.82) Aaa/AAA NA 2.05 1.99 Total Supranational 7,360,000.00 0.74% 7,308,742.45 7,342,624.45 93.50 5.11% 6,880,907.57 16,679.58 4.46% (461,716.88) Aaa/AAA NA 1.64 1.59 US TREASURY 912828XX3 UNITED STATES TREASURY 2.0 06/30/2024 2,000,000.00 -- 1.80% 2,018,574.22 2,000,946.88 99.15 6.52% 1,983,098.96 10,109.89 1.29% (17,847.92) Aaa/AA+ AA+ 0.25 0.25 912797GB7 UNITED STATES TREASURY 07/11/2024 1,000,000.00 07/27/2023 5.41% 950,378.99 985,639.76 98.56 4.89% 985,565.42 0.00 0.64% (74.34) P-1/A-1+ F1+ 0.28 0.28 912797GK7 UNITED STATES TREASURY 08/08/2024 1,000,000.00 08/30/2023 5.40% 951,232.07 981,658.71 98.16 4.99% 981,639.90 0.00 0.64% (18.81) P-1/A-1+ F1+ 0.36 0.35 912828D56 UNITED STATES TREASURY 2.375 08/15/2024 1,700,000.00 09/18/2019 1.73% 1,753,191.41 1,704,036.85 98.90 5.93% 1,681,323.24 5,102.34 1.09% (22,713.61) Aaa/AA+ AA+ 0.38 0.37 912797GL5 UNITED STATES TREASURY 09/05/2024 1,000,000.00 09/25/2023 5.45% 950,526.04 977,485.76 97.77 4.91% 977,675.47 0.00 0.63% 189.71 P-1/A-1+ F1+ 0.43 0.43 912828YY0 UNITED STATES TREASURY 1.75 12/31/2024 2,100,000.00 03/15/2022 1.97% 2,087,203.13 2,096,565.78 97.51 5.53% 2,047,664.05 9,288.46 1.33% (48,901.73) Aaa/AA+ AA+ 0.75 0.73 912828ZC7 UNITED STATES TREASURY 1.125 02/28/2025 1,500,000.00 03/18/2020 0.81% 1,523,144.53 1,504,265.15 96.49 5.41% 1,447,397.46 1,467.39 0.94% (56,867.69) Aaa/AA+ AA+ 0.91 0.89 91282CED9 UNITED STATES TREASURY 1.75 03/15/2025 3,100,000.00 -- 2.23% 3,057,617.20 3,086,319.62 96.94 5.35% 3,005,006.48 2,506.11 1.95% (81,313.14) Aaa/AA+ AA+ 0.96 0.93 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 36 158 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 912828ZL7 UNITED STATES TREASURY 0.375 04/30/2025 2,500,000.00 03/21/2022 2.22% 2,360,839.85 2,451,692.42 95.18 5.33% 2,379,492.20 3,940.59 1.54% (72,200.22) Aaa/AA+ AA+ 1.08 1.06 91282CAB7 UNITED STATES TREASURY 0.25 07/31/2025 1,500,000.00 03/12/2021 0.72% 1,469,765.63 1,490,810.57 94.08 5.17% 1,411,171.88 628.43 0.92% (79,638.69) Aaa/AA+ AA+ 1.33 1.31 91282CAM3 UNITED STATES TREASURY 0.25 09/30/2025 2,400,000.00 -- 0.56% 2,366,140.63 2,388,915.26 93.45 5.08% 2,242,781.26 16.39 1.46% (146,134.00) Aaa/AA+ AA+ 1.50 1.46 91282CAT8 UNITED STATES TREASURY 0.25 10/31/2025 2,450,000.00 -- 0.49% 2,422,492.19 2,440,886.35 93.15 5.04% 2,282,136.73 2,574.52 1.48% (158,749.62) Aaa/AA+ AA+ 1.59 1.55 91282CAZ4 UNITED STATES TREASURY 0.375 11/30/2025 2,250,000.00 03/26/2021 0.76% 2,209,658.20 2,235,631.04 93.04 4.99% 2,093,291.01 2,835.55 1.36% (142,340.03) Aaa/AA+ AA+ 1.67 1.63 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,500,000.00 05/27/2021 0.75% 2,456,445.31 2,482,924.73 92.46 4.91% 2,311,425.78 1,571.09 1.50% (171,498.95) Aaa/AA+ AA+ 1.84 1.79 91282CBW0 UNITED STATES TREASURY 0.75 04/30/2026 2,500,000.00 05/27/2021 0.80% 2,493,652.34 2,497,320.42 92.38 4.78% 2,309,570.30 7,881.18 1.50% (187,750.12) Aaa/AA+ AA+ 2.08 2.02 91282CCZ2 UNITED STATES TREASURY 0.875 09/30/2026 1,400,000.00 10/18/2021 1.19% 1,379,054.68 1,389,428.81 91.52 4.63% 1,281,273.43 33.47 0.83% (108,155.38) Aaa/AA+ AA+ 2.50 2.41 91282CDG3 UNITED STATES TREASURY 1.125 10/31/2026 1,400,000.00 11/15/2021 1.25% 1,391,468.75 1,395,552.81 91.84 4.63% 1,285,812.50 6,620.19 0.83% (109,740.31) Aaa/AA+ AA+ 2.59 2.49 91282CJP7 UNITED STATES TREASURY 4.375 12/15/2026 2,500,000.00 12/28/2023 4.01% 2,525,097.66 2,522,917.27 99.75 4.48% 2,493,847.65 32,274.59 1.62% (29,069.62) Aaa/AA+ AA+ 2.71 2.50 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 3,250,000.00 -- 3.18% 3,260,312.50 3,256,521.77 96.57 4.44% 3,138,535.14 26,696.43 2.04% (117,986.63) Aaa/AA+ AA+ 3.25 3.02 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 395,426.51 94.97 4.45% 379,875.00 1,843.41 0.25% (15,551.51) Aaa/AA+ AA+ 3.33 3.13 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 4,500,000.00 -- 3.28% 4,468,902.34 4,478,649.97 96.06 4.44% 4,322,812.50 12,228.26 2.80% (155,837.47) Aaa/AA+ AA+ 3.42 3.19 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 3,450,000.00 -- 4.31% 3,421,152.34 3,429,496.97 99.22 4.40% 3,423,181.63 388.83 2.22% (6,315.34) Aaa/AA+ AA+ 3.50 3.16 91282CFZ9 UNITED STATES TREASURY 3.875 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 851,952.78 98.38 4.40% 836,253.90 11,069.16 0.54% (15,698.88) Aaa/AA+ AA+ 3.67 3.34 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 2,750,000.00 -- 3.67% 2,775,107.42 2,769,116.89 98.39 4.34% 2,705,634.77 26,933.38 1.76% (63,482.12) Aaa/AA+ AA+ 3.75 3.42 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,967,602.62 97.07 4.39% 2,912,226.57 17,596.15 1.89% (55,376.05) Aaa/AA+ AA+ 3.84 3.53 91282CGP0 UNITED STATES TREASURY 4.0 02/29/2028 3,700,000.00 -- 4.01% 3,699,113.28 3,699,410.21 98.83 4.37% 3,656,785.15 12,869.57 2.37% (42,625.06) Aaa/AA+ AA+ 3.92 3.58 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 37 159 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration Total US Treasury 56,700,000.00 2.57% 56,194,875.40 56,481,175.93 96.32 4.86% 54,575,478.38 196,475.39 35.41% (1,905,697.55) Aaa/AA+ AA+ 2.24 2.10 Total Portfolio 159,493,886.88 2.44% 159,177,151.83 159,262,127.89 96.45 5.14% 154,139,738.35 634,868.01 100.00% (5,122,389.53) Aa2/AA- AA 2.03 1.75 Total Market Value + Accrued 154,774,606.36 Holdings Report City of Cupertino - Account #10659 As of March 31, 2024 38 160 SECTION |Section 4 |Transactions 39 161 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 01/25/2024 36268GAD7 950,000.00 GM Financial Securitized Term 2024-1 A3 4.85% Due: 12/18/2028 100.008 4.90%950,074.22 1,023.89 951,098.11 0.00 Purchase 01/26/2024 05522RDH8 850,000.00 Bank of America Credit Card Tr BACCT 2023-A2 A2 4.98% Due: 11/15/2028 101.035 4.28%858,798.83 1,293.42 860,092.25 0.00 Purchase 01/31/2024 161571HV9 1,690,000.00 Chase Issuance Trust 2024-A1 A 4.6% Due: 01/16/2029 99.985 4.66%1,689,742.61 0.00 1,689,742.61 0.00 Subtotal 3,490,000.00 3,498,615.66 2,317.31 3,500,932.97 0.00 TOTAL ACQUISITIONS 3,490,000.00 3,498,615.66 2,317.31 3,500,932.97 0.00 DISPOSITIONS Sale 01/29/2024 912828X70 1,700,000.00 US Treasury Note 2% Due: 04/30/2024 99.172 1.92%1,685,921.88 8,406.59 1,694,328.47 -14,386.16 Subtotal 1,700,000.00 1,685,921.88 8,406.59 1,694,328.47 -14,386.16 TOTAL DISPOSITIONS 1,700,000.00 1,685,921.88 8,406.59 1,694,328.47 -14,386.16 As of March 31, 2024 40 162 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 02/26/2024 17275RBQ4 830,000.00 CISCO SYSTEMS INC 4.8 02/26/2027 99.870 4.85%828,921.00 0.00 (828,921.00)0.00 Purchase 03/13/2024 17275RBQ4 1,170,000.00 CISCO SYSTEMS INC 4.8 02/26/2027 100.512 1,175,990.40 (2,652.00)(1,178,642.40)0.00 Purchase 03/13/2024 24422EXM6 2,000,000.00 JOHN DEERE CAPITAL CORP 4.85 03/05/2027 100.211 2,004,220.00 (1,616.67)(2,005,836.67)0.00 Purchase 03/13/2024 46647PEA0 1,500,000.00 JPMORGAN CHASE & CO 5.04 01/23/2028 100.052 1,500,780.00 (10,500.00)(1,511,280.00)0.00 Purchase 03/18/2024 857477CL5 1,760,000.00 STATE STREET CORP 4.993 03/18/2027 100.000 4.99%1,760,000.00 0.00 (1,760,000.00)0.00 Purchase 03/27/2024 47800RAD5 500,000.00 JDOT 2024 A3 4.96 11/15/2028 99.953 5.03%499,765.63 (551.11)(500,316.74)0.00 Purchase 04/05/2024 89115A2W1 1,340,000.00 TORONTO-DOMINION BANK 4.98 04/05/2027 100.000 4.98%1,340,000.00 0.00 (1,340,000.00)0.00 Total Purchase 9,100,000.00 9,109,677.03 (15,319.78)(9,124,996.81)0.00 TOTAL ACQUISITIONS 9,100,000.00 9,109,677.03 (15,319.78)(9,124,996.81)0.00 DISPOSITIONS Sale 03/13/2024 46647PCH7 (1,370,000.00)JPMORGAN CHASE & CO 0.824 06/01/2025 98.890 (1,354,793.00)(3,198.49)1,357,991.49 (15,336.48) Sale 03/13/2024 78013XZU5 (1,500,000.00)ROYAL BANK OF CANADA 2.55 07/16/2024 98.941 (1,484,115.00)(6,056.25)1,490,171.25 (18,660.00) Sale 03/13/2024 89114QCA4 (1,500,000.00)TORONTO-DOMINION BANK 2.65 06/12/2024 99.252 (1,488,780.00)(10,047.92)1,498,827.92 (12,650.34) Sale 03/18/2024 009158AV8 (1,675,000.00)AIR PRODUCTS AND CHEMICALS INC 3.35 07/31/2024 99.142 5.71%(1,660,628.50)(7,481.67)1,668,110.17 (16,768.44) Sale 04/01/2024 91159HHX1 (1,250,000.00)US BANCORP 2.4 07/30/2024 98.921 5.70%(1,236,512.50)(5,083.33)1,241,595.83 (14,422.95) Total Sale (7,295,000.00)(7,224,829.00)(31,867.66)7,256,696.66 (77,838.20) Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 41 163 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss TOTAL DISPOSITIONS (7,295,000.00)(7,224,829.00)(31,867.66)7,256,696.66 (77,838.20) OTHER TRANSACTIONS Coupon 01/31/2024 009158AV8 0.00 AIR PRODUCTS AND CHEMICALS INC 3.35 07/31/2024 28,056.25 0.00 28,056.25 0.00 Coupon 01/31/2024 91282CAB7 0.00 UNITED STATES TREASURY 0.25 07/31/2025 1,875.00 0.00 1,875.00 0.00 Coupon 01/31/2024 91282CBH3 0.00 UNITED STATES TREASURY 0.375 01/31/2026 4,687.50 0.00 4,687.50 0.00 Coupon 01/31/2024 91282CFB2 0.00 UNITED STATES TREASURY 2.75 07/31/2027 5,500.00 0.00 5,500.00 0.00 Coupon 01/31/2024 91282CGH8 0.00 UNITED STATES TREASURY 3.5 01/31/2028 52,500.00 0.00 52,500.00 0.00 Coupon 02/01/2024 3137BFE98 0.00 FHMS K-041 A2 3.171 10/25/2024 3,391.03 0.00 3,391.03 0.00 Coupon 02/01/2024 3137BLMZ8 0.00 FHMS K-049 A2 3.01 07/25/2025 2,508.33 0.00 2,508.33 0.00 Coupon 02/01/2024 3137BLW95 0.00 FHMS K-050 A2 3.334 08/25/2025 2,639.42 0.00 2,639.42 0.00 Coupon 02/01/2024 3137BM7C4 0.00 FHMS K-051 A2 3.308 09/25/2025 1,212.93 0.00 1,212.93 0.00 Coupon 02/01/2024 3137BN6G4 0.00 FHMS K-053 A2 2.995 12/25/2025 1,422.62 0.00 1,422.62 0.00 Coupon 02/01/2024 3137BSP72 0.00 FHMS K-058 A2 2.653 08/25/2026 1,437.04 0.00 1,437.04 0.00 Coupon 02/01/2024 3137FBBX3 0.00 FHMS K-068 A2 3.244 08/25/2027 2,703.33 0.00 2,703.33 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 42 164 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 02/09/2024 69371RR40 0.00 PACCAR FINANCIAL CORP 0.5 08/09/2024 1,700.00 0.00 1,700.00 0.00 Coupon 02/12/2024 3137EAEP0 0.00 FEDERAL HOME LOAN MORTGAGE CORP 1.5 02/12/2025 17,737.50 0.00 17,737.50 0.00 Coupon 02/13/2024 06051GHY8 0.00 BANK OF AMERICA CORP 2.015 02/13/2026 6,045.00 0.00 6,045.00 0.00 Coupon 02/15/2024 02582JJT8 0.00 AMXCA 2022-2 A 3.39 05/15/2025 3,884.38 0.00 3,884.38 0.00 Coupon 02/15/2024 02589BAA8 0.00 AMXCA 2022-1 A 2.21 03/17/2025 2,845.38 0.00 2,845.38 0.00 Coupon 02/15/2024 05522RDH8 0.00 BACCT 2023-2 A 4.98 11/16/2026 3,527.50 0.00 3,527.50 0.00 Coupon 02/15/2024 161571HV9 0.00 CHAIT 241 A 4.6 01/16/2029 3,239.17 0.00 3,239.17 0.00 Coupon 02/15/2024 43815BAC4 0.00 HAROT 2022-1 A3 1.88 05/15/2026 1,060.39 0.00 1,060.39 0.00 Coupon 02/15/2024 44891WAC3 0.00 HALST 2022-A A3 1.16 01/15/2025 164.38 0.00 164.38 0.00 Coupon 02/15/2024 448977AD0 0.00 HART 2022-A A3 2.22 10/15/2026 1,705.74 0.00 1,705.74 0.00 Coupon 02/15/2024 44933LAC7 0.00 HART 2021-A A3 0.38 09/15/2025 39.87 0.00 39.87 0.00 Coupon 02/15/2024 44935FAD6 0.00 HART 2021-C A3 0.74 05/15/2026 522.72 0.00 522.72 0.00 Coupon 02/15/2024 47787JAC2 0.00 JDOT 2022 A3 0.36 09/15/2026 688.04 0.00 688.04 0.00 Coupon 02/15/2024 47789QAC4 0.00 JDOT 2021-B A3 0.52 03/16/2026 140.17 0.00 140.17 0.00 Coupon 02/15/2024 47800AAC4 0.00 JDOT 2022-B A3 3.74 02/16/2027 2,041.42 0.00 2,041.42 0.00 Coupon 02/15/2024 47800BAC2 0.00 JDOT 2022-C A3 5.09 06/15/2027 4,453.75 0.00 4,453.75 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 43 165 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 02/15/2024 58769FAC9 0.00 MBART 2023-2 A3 5.95 11/15/2028 5,454.17 0.00 5,454.17 0.00 Coupon 02/15/2024 69371RQ25 0.00 PACCAR FINANCIAL CORP 2.15 08/15/2024 3,977.50 0.00 3,977.50 0.00 Coupon 02/15/2024 89231FAD2 0.00 TAOT 2023-C A3 5.16 04/17/2028 5,590.00 0.00 5,590.00 0.00 Coupon 02/15/2024 89238JAC9 0.00 TAOT 2021-D A3 0.71 04/15/2026 167.67 0.00 167.67 0.00 Coupon 02/15/2024 89240BAC2 0.00 TAOT 2021-A A3 0.26 05/15/2025 32.54 0.00 32.54 0.00 Coupon 02/15/2024 912828D56 0.00 UNITED STATES TREASURY 2.375 08/15/2024 20,187.50 0.00 20,187.50 0.00 Coupon 02/16/2024 362554AC1 0.00 GMCAR 2021-4 A3 0.68 09/16/2026 133.89 0.00 133.89 0.00 Coupon 02/16/2024 362585AC5 0.00 GMCAR 2022-2 A3 3.1 02/16/2027 1,007.50 0.00 1,007.50 0.00 Coupon 02/16/2024 36268GAD7 0.00 GMCAR 2024-1 A3 4.85 12/18/2028 3,711.60 0.00 3,711.60 0.00 Coupon 02/16/2024 380146AC4 0.00 GMCAR 2022-1 A3 1.23 11/16/2026 242.96 0.00 242.96 0.00 Coupon 02/20/2024 36265MAC9 0.00 GMALT 2022-1 A3 1.9 03/20/2025 580.49 0.00 580.49 0.00 Coupon 02/20/2024 89238LAC4 0.00 TLOT 2022-A A3 1.96 02/20/2025 924.12 0.00 924.12 0.00 Coupon 02/21/2024 438123AC5 0.00 HAROT 2023-4 A3 5.67 06/21/2028 3,803.63 0.00 3,803.63 0.00 Coupon 02/21/2024 43813GAC5 0.00 HAROT 2021-1 A3 0.27 04/21/2025 8.76 0.00 8.76 0.00 Coupon 02/21/2024 43815GAC3 0.00 HAROT 2021-4 A3 0.88 01/21/2026 217.44 0.00 217.44 0.00 Coupon 02/25/2024 05601XAC3 0.00 BMWLT 2022-1 A3 1.03 03/25/2025 64.85 0.00 64.85 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 44 166 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 02/25/2024 05602RAD3 0.00 BMWOT 2022-A A3 3.21 08/25/2026 1,296.52 0.00 1,296.52 0.00 Coupon 02/25/2024 3135G05X7 0.00 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 4,687.50 0.00 4,687.50 0.00 Coupon 02/29/2024 912828ZC7 0.00 UNITED STATES TREASURY 1.125 02/28/2025 8,437.50 0.00 8,437.50 0.00 Coupon 02/29/2024 91282CFH9 0.00 UNITED STATES TREASURY 3.125 08/31/2027 70,312.50 0.00 70,312.50 0.00 Coupon 02/29/2024 91282CGP0 0.00 UNITED STATES TREASURY 4.0 02/29/2028 74,000.00 0.00 74,000.00 0.00 Coupon 03/01/2024 3137BFE98 0.00 FHMS K-041 A2 3.171 10/25/2024 3,383.47 0.00 3,383.47 0.00 Coupon 03/01/2024 3137BLMZ8 0.00 FHMS K-049 A2 3.01 07/25/2025 2,508.33 0.00 2,508.33 0.00 Coupon 03/01/2024 3137BLW95 0.00 FHMS K-050 A2 3.334 08/25/2025 2,639.42 0.00 2,639.42 0.00 Coupon 03/01/2024 3137BM7C4 0.00 FHMS K-051 A2 3.308 09/25/2025 1,212.93 0.00 1,212.93 0.00 Coupon 03/01/2024 3137BN6G4 0.00 FHMS K-053 A2 2.995 12/25/2025 1,422.62 0.00 1,422.62 0.00 Coupon 03/01/2024 3137BSP72 0.00 FHMS K-058 A2 2.653 08/25/2026 1,437.04 0.00 1,437.04 0.00 Coupon 03/01/2024 3137FBBX3 0.00 FHMS K-068 A2 3.244 08/25/2027 2,703.33 0.00 2,703.33 0.00 Coupon 03/01/2024 74153WCM9 0.00 PRICOA GLOBAL FUNDING I 0.8 09/01/2025 3,616.00 0.00 3,616.00 0.00 Coupon 03/03/2024 808513BY0 0.00 CHARLES SCHWAB CORP 2.45 03/03/2027 11,760.00 0.00 11,760.00 0.00 Coupon 03/09/2024 57636QAW4 0.00 MASTERCARD INC 4.875 03/09/2028 23,034.38 0.00 23,034.38 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 45 167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 03/13/2024 3130A2UW4 0.00 FEDERAL HOME LOAN BANKS 2.875 09/13/2024 28,750.00 0.00 28,750.00 0.00 Coupon 03/14/2024 58989V2D5 0.00 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 4,812.50 0.00 4,812.50 0.00 Coupon 03/15/2024 02582JJT8 0.00 AMXCA 2022-2 A 3.39 05/15/2025 3,884.38 0.00 3,884.38 0.00 Coupon 03/15/2024 02589BAA8 0.00 AMXCA 2022-1 A 2.21 03/17/2025 2,845.38 0.00 2,845.38 0.00 Coupon 03/15/2024 05522RDH8 0.00 BACCT 2023-2 A 4.98 11/16/2026 3,527.50 0.00 3,527.50 0.00 Coupon 03/15/2024 084664CZ2 0.00 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 18,572.50 0.00 18,572.50 0.00 Coupon 03/15/2024 161571HV9 0.00 CHAIT 241 A 4.6 01/16/2029 6,478.33 0.00 6,478.33 0.00 Coupon 03/15/2024 43815BAC4 0.00 HAROT 2022-1 A3 1.88 05/15/2026 989.64 0.00 989.64 0.00 Coupon 03/15/2024 44891WAC3 0.00 HALST 2022-A A3 1.16 01/15/2025 108.50 0.00 108.50 0.00 Coupon 03/15/2024 448977AD0 0.00 HART 2022-A A3 2.22 10/15/2026 1,599.68 0.00 1,599.68 0.00 Coupon 03/15/2024 44933LAC7 0.00 HART 2021-A A3 0.38 09/15/2025 32.65 0.00 32.65 0.00 Coupon 03/15/2024 44935FAD6 0.00 HART 2021-C A3 0.74 05/15/2026 478.57 0.00 478.57 0.00 Coupon 03/15/2024 47787JAC2 0.00 JDOT 2022 A3 0.36 09/15/2026 635.84 0.00 635.84 0.00 Coupon 03/15/2024 47789QAC4 0.00 JDOT 2021-B A3 0.52 03/16/2026 123.83 0.00 123.83 0.00 Coupon 03/15/2024 47800AAC4 0.00 JDOT 2022-B A3 3.74 02/16/2027 2,041.42 0.00 2,041.42 0.00 Coupon 03/15/2024 47800BAC2 0.00 JDOT 2022-C A3 5.09 06/15/2027 4,453.75 0.00 4,453.75 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 46 168 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 03/15/2024 58769FAC9 0.00 MBART 2023-2 A3 5.95 11/15/2028 5,454.17 0.00 5,454.17 0.00 Coupon 03/15/2024 89231FAD2 0.00 TAOT 2023-C A3 5.16 04/17/2028 5,590.00 0.00 5,590.00 0.00 Coupon 03/15/2024 89238JAC9 0.00 TAOT 2021-D A3 0.71 04/15/2026 154.54 0.00 154.54 0.00 Coupon 03/15/2024 89240BAC2 0.00 TAOT 2021-A A3 0.26 05/15/2025 24.24 0.00 24.24 0.00 Coupon 03/15/2024 91282CED9 0.00 UNITED STATES TREASURY 1.75 03/15/2025 27,125.00 0.00 27,125.00 0.00 Coupon 03/16/2024 362554AC1 0.00 GMCAR 2021-4 A3 0.68 09/16/2026 124.90 0.00 124.90 0.00 Coupon 03/16/2024 362585AC5 0.00 GMCAR 2022-2 A3 3.1 02/16/2027 970.52 0.00 970.52 0.00 Coupon 03/16/2024 36268GAD7 0.00 GMCAR 2024-1 A3 4.85 12/18/2028 3,839.58 0.00 3,839.58 0.00 Coupon 03/16/2024 380146AC4 0.00 GMCAR 2022-1 A3 1.23 11/16/2026 227.79 0.00 227.79 0.00 Coupon 03/17/2024 931142ER0 0.00 WALMART INC 1.05 09/17/2026 1,837.50 0.00 1,837.50 0.00 Coupon 03/20/2024 36265MAC9 0.00 GMALT 2022-1 A3 1.9 03/20/2025 398.56 0.00 398.56 0.00 Coupon 03/20/2024 89238LAC4 0.00 TLOT 2022-A A3 1.96 02/20/2025 689.22 0.00 689.22 0.00 Coupon 03/21/2024 438123AC5 0.00 HAROT 2023-4 A3 5.67 06/21/2028 3,803.63 0.00 3,803.63 0.00 Coupon 03/21/2024 43813GAC5 0.00 HAROT 2021-1 A3 0.27 04/21/2025 6.51 0.00 6.51 0.00 Coupon 03/21/2024 43815GAC3 0.00 HAROT 2021-4 A3 0.88 01/21/2026 199.99 0.00 199.99 0.00 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 47 169 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Coupon 03/23/2024 3137EAEX3 0.00 FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 4,687.50 0.00 4,687.50 0.00 Coupon 03/25/2024 05601XAC3 0.00 BMWLT 2022-1 A3 1.03 03/25/2025 26.39 0.00 26.39 0.00 Coupon 03/25/2024 05602RAD3 0.00 BMWOT 2022-A A3 3.21 08/25/2026 1,207.96 0.00 1,207.96 0.00 Coupon 03/31/2024 91282CAM3 0.00 UNITED STATES TREASURY 0.25 09/30/2025 3,000.00 0.00 3,000.00 0.00 Coupon 03/31/2024 91282CCZ2 0.00 UNITED STATES TREASURY 0.875 09/30/2026 6,125.00 0.00 6,125.00 0.00 Coupon 03/31/2024 91282CFM8 0.00 UNITED STATES TREASURY 4.125 09/30/2027 71,156.25 0.00 71,156.25 0.00 Total Coupon 0.00 632,268.74 0.00 632,268.74 0.00 Management Fee 02/08/2024 CCYUSD 0.00 US DOLLAR 0.00 0.00 (88.01)0.00 Management Fee 02/09/2024 CCYUSD 0.00 US DOLLAR 0.00 0.00 (9,380.44)0.00 Management Fee 03/12/2024 CCYUSD 0.00 US DOLLAR 0.00 0.00 (9,386.16)0.00 Total Management Fee 0.00 0.00 0.00 (18,854.61)0.00 Principal Paydown 02/01/2024 3137BFE98 (2,860.16)FHMS K-041 A2 3.171 10/25/2024 (2,860.16)--2,860.16 0.00 Principal Paydown 02/15/2024 43815BAC4 (45,160.24)HAROT 2022-1 A3 1.88 05/15/2026 (45,160.24)--45,160.24 (0.00) Principal Paydown 02/15/2024 44891WAC3 (57,807.77)HALST 2022-A A3 1.16 01/15/2025 (57,807.77)--57,807.77 (0.00) Principal Paydown 02/15/2024 448977AD0 (57,330.32)HART 2022-A A3 2.22 10/15/2026 (57,330.32)--57,330.32 (0.00) Principal Paydown 02/15/2024 44933LAC7 (22,808.74)HART 2021-A A3 0.38 09/15/2025 (22,808.74)--22,808.74 (0.00) Principal Paydown 02/15/2024 44935FAD6 (71,578.86)HART 2021-C A3 0.74 05/15/2026 (71,578.86)--71,578.86 (0.00) Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 48 170 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Principal Paydown 02/15/2024 47787JAC2 (27,004.20)JDOT 2022 A3 0.36 09/15/2026 (27,004.20)--27,004.20 (0.00) Principal Paydown 02/15/2024 47789QAC4 (37,705.98)JDOT 2021-B A3 0.52 03/16/2026 (37,705.98)--37,705.98 0.00 Principal Paydown 02/15/2024 89238JAC9 (22,192.11)TAOT 2021-D A3 0.71 04/15/2026 (22,192.11)--22,192.11 0.00 Principal Paydown 02/15/2024 89240BAC2 (38,310.95)TAOT 2021-A A3 0.26 05/15/2025 (38,310.95)--38,310.95 0.00 Principal Paydown 02/16/2024 362554AC1 (15,866.07)GMCAR 2021-4 A3 0.68 09/16/2026 (15,866.07)--15,866.07 0.00 Principal Paydown 02/16/2024 362585AC5 (14,316.88)GMCAR 2022-2 A3 3.1 02/16/2027 (14,316.88)--14,316.88 0.00 Principal Paydown 02/16/2024 380146AC4 (14,450.60)GMCAR 2022-1 A3 1.23 11/16/2026 (14,450.60)--14,450.60 (0.00) Principal Paydown 02/20/2024 36265MAC9 (114,903.33)GMALT 2022-1 A3 1.9 03/20/2025 (114,903.33)--114,903.33 0.00 Principal Paydown 02/20/2024 89238LAC4 (143,816.71)TLOT 2022-A A3 1.96 02/20/2025 (143,816.71)--143,816.71 0.00 Principal Paydown 02/21/2024 43813GAC5 (10,022.60)HAROT 2021-1 A3 0.27 04/21/2025 (10,022.60)--10,022.60 0.00 Principal Paydown 02/21/2024 43815GAC3 (23,791.90)HAROT 2021-4 A3 0.88 01/21/2026 (23,791.90)--23,791.90 (0.00) Principal Paydown 02/25/2024 05601XAC3 (41,949.05)BMWLT 2022-1 A3 1.03 03/25/2025 (41,949.05)--41,949.05 (0.00) Principal Paydown 02/25/2024 05602RAD3 (33,107.36)BMWOT 2022-A A3 3.21 08/25/2026 (33,107.36)--33,107.36 0.00 Principal Paydown 03/01/2024 3137BFE98 (3,180.01)FHMS K-041 A2 3.171 10/25/2024 (3,180.01)--3,180.01 0.00 Principal Paydown 03/15/2024 43815BAC4 (44,443.43)HAROT 2022-1 A3 1.88 05/15/2026 (44,443.43)--44,443.43 (0.00) Principal Paydown 03/15/2024 44891WAC3 (57,340.39)HALST 2022-A A3 1.16 01/15/2025 (57,340.39)--57,340.39 (0.00) Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 49 171 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Principal Paydown 03/15/2024 448977AD0 (55,762.20)HART 2022-A A3 2.22 10/15/2026 (55,762.20)--55,762.20 (0.00) Principal Paydown 03/15/2024 44933LAC7 (21,891.06)HART 2021-A A3 0.38 09/15/2025 (21,891.06)--21,891.06 0.00 Principal Paydown 03/15/2024 44935FAD6 (68,242.11)HART 2021-C A3 0.74 05/15/2026 (68,242.11)--68,242.11 (0.00) Principal Paydown 03/15/2024 47787JAC2 (16,422.99)JDOT 2022 A3 0.36 09/15/2026 (16,422.99)--16,422.99 0.00 Principal Paydown 03/15/2024 47789QAC4 (25,946.24)JDOT 2021-B A3 0.52 03/16/2026 (25,946.24)--25,946.24 (0.00) Principal Paydown 03/15/2024 89238JAC9 (20,887.30)TAOT 2021-D A3 0.71 04/15/2026 (20,887.30)--20,887.30 0.00 Principal Paydown 03/15/2024 89240BAC2 (35,040.33)TAOT 2021-A A3 0.26 05/15/2025 (35,040.33)--35,040.33 (0.00) Principal Paydown 03/16/2024 362554AC1 (15,937.32)GMCAR 2021-4 A3 0.68 09/16/2026 (15,937.32)--15,937.32 0.00 Principal Paydown 03/16/2024 362585AC5 (20,694.94)GMCAR 2022-2 A3 3.1 02/16/2027 (20,694.94)--20,694.94 0.00 Principal Paydown 03/16/2024 380146AC4 (14,385.77)GMCAR 2022-1 A3 1.23 11/16/2026 (14,385.77)--14,385.77 0.00 Principal Paydown 03/20/2024 36265MAC9 (120,671.37)GMALT 2022-1 A3 1.9 03/20/2025 (120,671.37)--120,671.37 0.00 Principal Paydown 03/20/2024 89238LAC4 (129,055.48)TLOT 2022-A A3 1.96 02/20/2025 (129,055.48)--129,055.48 0.00 Principal Paydown 03/21/2024 43813GAC5 (9,672.49)HAROT 2021-1 A3 0.27 04/21/2025 (9,672.49)--9,672.49 0.00 Principal Paydown 03/21/2024 43815GAC3 (22,778.77)HAROT 2021-4 A3 0.88 01/21/2026 (22,778.77)--22,778.77 0.00 Principal Paydown 03/25/2024 05601XAC3 (28,794.24)BMWLT 2022-1 A3 1.03 03/25/2025 (28,794.24)--28,794.24 (0.00) Principal Paydown 03/25/2024 05602RAD3 (30,619.03)BMWOT 2022-A A3 3.21 08/25/2026 (30,619.03)--30,619.03 (0.00) Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 50 172 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Total Principal Paydown (1,536,749.30)(1,536,749.30)--1,536,749.30 0.01 TOTAL OTHER TRANSACTIONS (1,536,749.30)(904,480.56)0.00 2,150,163.43 0.01 Transaction Ledger City of Cupertino - Account #10659 As of March 31, 2024 51 173 Important Disclosures 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 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 March 31, 2024 52 174 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 March 31, 2024 53 175 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 MARCH 1, 2024 THROUGH MARCH 31, 2024 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 09024 SE 176 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. 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. 177 TABLE OF CONTENTS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE REPORT NAME NUMBER_________________ ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 20 STATEMENT OF TRANSACTIONS ...................................................................... 21 PENDING TRADES SCHEDULE ........................................................................ 35 178 PAGE 1 ASSET SUMMARY CITY OF CUPERTINO AS OF MARCH 31, 2024 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 3,279,093.92 3,371,846.82 2.19 92,752.90 176,017 5.22 2,173.11 BONDS AND NOTES 155,842,270.15 150,682,642.33 97.81 5,159,627.82- 3,583,093 2.38 720,007.17 ===================================================================================================================================== TOTAL INVESTMENTS 159,121,364.07 154,054,489.15 100.00 5,066,874.92- 3,759,111 2.44 722,180.28 TOTAL ACCRUALS 722,180.28 722,180.28 ===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 159,843,544.35 154,776,669.43 5,066,874.92- 3,759,111 2.44 722,180.28 179 PAGE 2 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ PRINCIPAL CASH 551.11 551.11 0.00 INCOME CASH 551.11-551.11- 0.00 CASH EQUIVALENTS______________________________________________________________________________________________________________________________________ 376,231.24 ALLSPRING 100% TREASURY 376,231.24 376,231.24 0.24 0.00 2,046.37 MONEY MARKET FUND - #008 1.0000 1.0000 50,725.58 PRINCIPAL PUBLIC DEPOSIT SWEEP 50,725.58 50,725.58 0.03 0.00 126.74 PROGRAM 1.0000 1.0000 1,000,000 UNITED STATES TREASURY BILLS 950,378.99 985,570.00 0.64 35,191.01 0.00 DTD 07/13/2023 DUE 07/11/2024 95.0379 98.5570 CUSIP 912797GB7 1,000,000 UNITED STATES TREASURY BILLS 951,232.07 981,640.00 0.64 30,407.93 0.00 DTD 08/10/2023 DUE 08/08/2024 95.1232 98.1640 CUSIP 912797GK7 1,000,000 UNITED STATES TREASURY BILLS 950,526.04 977,680.00 0.63 27,153.96 0.00 DTD 09/07/2023 DUE 09/05/2024 95.0526 97.7680 CUSIP 912797GL5 ====================================================================================================================================== TOTAL CASH EQUIVALENTS 3,279,093.92 3,371,846.82 2.19 92,752.90 2,173.11 BOND & NOTES______________________________________________________________________________________________________________________________________ 1,875,000 AMAZON.COM INC 1,866,900.00 1,731,431.25 1.12 135,468.75- 7,239.58 DTD 05/12/21 1.000 05/12/2026 99.5680 92.3430 MOODY'S RATING A1 CUSIP 023135BX3 1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,346,592.50 0.87 28,103.35- 2,071.67 ASSET BCKD SEC SER 2022-2 CL A 99.9779 97.9340 DTD 05/24/2022 3.390% 05/17/2027 NON CALLABLE CUSIP 02582JJT8 180 PAGE 3 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,500,318.60 0.97 24,041.17- 1,517.53 ASSET BCKD SEC SER 2022-1 CL A 98.6641 97.1080 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 1,109,658.00 0.72 4,564.54- 17,963.06 MED TERM NOTE 96.8889 96.4920 DTD 04/23/19 04/23/2027 MOODY'S RATING A1 CUSIP 06051GHT9 600,000 BANK OF AMERICA CORP 620,988.00 581,262.00 0.38 39,726.00- 1,612.00 MED TERM NOTE 103.4980 96.8770 DTD 02/13/20 02/13/2026 MOODY'S RATING A1 CUSIP 06051GHY8 700,000 BANK OF AMERICA CORP 701,274.00 665,392.00 0.43 35,882.00- 2,616.02 MED TERM NOTE 100.1820 95.0560 DTD 06/19/20 06/19/2026 MOODY'S RATING A1 CUSIP 06051GJD2 850,000 BANK OF AMERICA CREDIT CARD TRUST 858,798.83 852,040.00 0.55 6,758.83- 1,881.33 ASSET BCKD SEC SER 2023-A2 CL A2 101.0352 100.2400 DTD 12/14/2023 4.980% 11/15/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDH8 600,000 BANK OF MONTREAL 582,216.00 591,852.00 0.38 9,636.00 854.17 MED TERM NOTE 97.0360 98.6420 DTD 07/09/21 0.625 07/09/2024 MOODY'S RATING A2 CUSIP 06367TQW3 181 PAGE 4 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 1,194,132.40 0.78 91,524.40- 9,558.33 MED TERM NOTE 103.6820 96.3010 DTD 04/27/20 1.850 05/01/2025 MOODY'S RATING A2 CUSIP 06367WB85 1,000,000 BANK OF NEW YORK MELLON 1,024,910.00 979,520.00 0.64 45,390.00- 14,593.06 MED TERM NOTE 102.4910 97.9520 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 1,342,394.50 0.87 27,413.70- 19,887.83 DTD 04/26/2022 3.350% 04/25/2025 99.9860 97.9850 CALLABLE MOODY'S RATING A1 CUSIP 06406RBC0 1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,520,764.75 0.99 93,928.40- 1,650.89 DTD 03/15/2022 2.300% 03/15/2027 99.9810 94.1650 CALLABLE MOODY'S RATING AA2 CUSIP 084664CZ2 420,955.28 BMW VEHICLE OWNER TRUST 420,933.38 414,573.60 0.27 6,359.78-225.21 ASSET BCKD SEC SER 2022-A CL A3 99.9948 98.4840 DTD 05/18/2022 3.210% 08/25/2026 CALLABLE MOODY'S RATING AAA CUSIP 05602RAD3 755,000 CALIFORNIA ST 772,342.35 743,901.50 0.48 28,440.85- 9,060.00 TXBL-REF 102.2970 98.5300 DTD 10/24/19 2.400 10/01/2024 MOODY'S RATING AA2 CUSIP 13063DRK6 182 PAGE 5 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,100,000 CATERPILLAR FINL SERVICE 1,111,517.00 1,078,935.00 0.70 32,582.00- 9,394.31 MED TERM NOTE 101.0470 98.0850 DTD 11/08/19 2.150 11/08/2024 MOODY'S RATING A2 CUSIP 14913Q3B3 960,000 CHARLES SCHWAB CORP 959,729.90 894,614.40 0.58 65,115.50- 1,829.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 93.1890 CALLABLE MOODY'S RATING A2 CUSIP 808513BY0 1,690,000 CHASE ISSUANCE TRUST 1,689,742.61 1,680,485.30 1.09 9,257.31- 3,455.11 ASSET BCKD SEC SER 2024-A1I CL A 99.9848 99.4370 DTD 01/31/2024 4.600% 01/16/2029 CALLABLE CUSIP 161571HV9 2,000,000 CISCO SYSTEMS INC 2,004,911.40 2,003,220.00 1.30 1,691.40- 9,333.33 DTD 02/26/2024 4.800% 02/26/2027 100.2456 100.1610 CALLABLE MOODY'S RATING A1 CUSIP 17275RBQ4 1,500,000 FED HOME LN BK 1,564,890.20 1,492,785.00 0.97 72,105.20- 12,817.71 DTD 05/08/14 2.875 06/14/2024 104.3260 99.5190 MOODY'S RATING AAA CUSIP 3130A1XJ2 2,000,000 FED HOME LN BK 2,103,380.00 1,978,560.00 1.28 124,820.00- 2,875.00 DTD 08/15/14 2.875 09/13/2024 105.1690 98.9280 MOODY'S RATING AAA CUSIP 3130A2UW4 1,277,224.34 FED HOME LN MTG CORP 1,373,914.22 1,260,313.89 0.82 113,600.33- 3,375.07 SER KO41 CL A2 *24 DAY DELAY*107.5703 98.6760 DTD 12/01/14 3.171 10/25/2024 CUSIP 3137BFE98 183 PAGE 6 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,291,945.15 1.49 71,233.80- 4,828.54 DTD 02/14/20 1.500 02/12/2025 99.9230 96.9110 MOODY'S RATING AAA CUSIP 3137EAEP0 1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,179,237.50 0.77 64,537.50-911.46 SER USD 99.5020 94.3390 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 2,341,750.00 1.52 147,612.80-208.33 DTD 09/25/20 0.375 09/23/2025 99.5745 93.6700 MOODY'S RATING AAA CUSIP 3137EAEX3 1,500,000 FED NATL MTG ASSN 1,484,895.00 1,486,320.00 0.96 1,425.00 6,489.58 DTD 07/08/19 1.750 07/02/2024 98.9930 99.0880 MOODY'S RATING AAA CUSIP 3135G0V75 1,975,000 FED NATL MTG ASSN 1,965,802.75 1,937,613.25 1.26 28,189.50- 14,798.78 DTD 10/18/19 1.625 10/15/2024 99.5343 98.1070 MOODY'S RATING AAA CUSIP 3135G0W66 1,295,000 FED NATL MTG ASSN 1,309,953.95 1,260,812.00 0.82 49,141.95- 4,910.21 DTD 01/10/20 1.625 01/07/2025 101.1548 97.3600 MOODY'S RATING AAA CUSIP 3135G0X24 1,860,000 FED NATL MTG ASSN 1,856,168.40 1,775,946.60 1.15 80,221.80- 5,134.38 DTD 04/24/20 0.625 04/22/2025 99.7940 95.4810 MOODY'S RATING AAA CUSIP 3135G03U5 2,500,000 FED NATL MTG ASSN 2,499,227.30 2,370,875.00 1.54 128,352.30- 3,611.11 DTD 06/19/20 0.500 06/17/2025 99.9691 94.8350 MOODY'S RATING AAA CUSIP 3135G04Z3 184 PAGE 7 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 2,348,325.00 1.52 139,658.75-937.50 DTD 08/27/20 0.375 08/25/2025 99.5194 93.9330 MOODY'S RATING AAA CUSIP 3135G05X7 2,500,000 FED NATL MTG ASSN 2,492,700.00 2,336,825.00 1.52 155,875.00- 5,000.00 DTD 11/12/20 0.500 11/07/2025 99.7080 93.4730 MOODY'S RATING AAA CUSIP 3135G06G3 2,800,000 FEDERAL FARM CREDIT BANK 2,789,612.00 2,815,288.00 1.83 25,676.00 48,922.22 DTD 11/15/2023 4.625% 11/15/2027 99.6290 100.5460 NON CALLABLE MOODY'S RATING AAA CUSIP 3133EPC60 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,079,687.50 973,770.00 0.63 105,917.50- 2,508.33 SER K049 CL A2 *24 DAY DELAY*107.9688 97.3770 DTD 10/01/15 3.010 08/25/2025 CUSIP 3137BLMZ8 950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 927,561.00 0.60 90,571.81- 2,639.42 SER K050 CL A2 *24 DAY DELAY*107.1719 97.6380 DTD 11/01/15 08/25/2025 CUSIP 3137BLW95 440,000 FHLMC MULTIFAMILY STRUCTURED P 453,079.69 429,030.80 0.28 24,048.89- 1,212.93 SER K051 CL A2 *24 DAY DELAY*102.9727 97.5070 DTD 12/01/15 3.308 09/25/2025 CUSIP 3137BM7C4 570,000 FHLMC MULTIFAMILY STRUCTURED P 582,001.17 551,959.50 0.36 30,041.67- 1,422.63 SER K053 CL A2 *24 DAY DELAY*102.1055 96.8350 DTD 03/01/16 2.995 12/25/2025 CUSIP 3137BN6G4 650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 618,858.50 0.40 68,592.67- 1,437.04 SER K058 CL A2 *24 DAY DELAY*105.7617 95.2090 DTD 11/01/16 2.653 08/25/2026 CUSIP 3137BSP72 185 PAGE 8 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 955,960.00 0.62 5,295.94 2,703.33 SER K068 CL A2 *24 DAY DELAY*95.0664 95.5960 DTD 10/01/17 3.244 08/25/2027 MOODY'S RATING AAA CUSIP 3137FBBX3 131,051.38 GM FINANCIAL AUTOMOBILE LEASIN 131,050.25 130,732.93 0.08 317.32-74.08 SER 2022-1 CL A3 *0 DAY DELAY*99.9992 99.7570 DTD 02/23/22 1.850 03/20/2025 MOODY'S RATING AAA CUSIP 36265MAC9 204,474.64 GM FINANCIAL SECURITIZED TERM 204,469.42 198,553.05 0.13 5,916.37-57.93 SER 2021-4 CL A3 *0 DAY DELAY*99.9975 97.1040 DTD 10/21/21 0.680 09/16/2026 MOODY'S RATING AAA CUSIP 362554AC1 354,988.18 GM FINANCIAL SECURITIZED TERM 354,913.99 348,626.79 0.23 6,287.20-458.53 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 98.2080 DTD 04/13/2022 3.100% 02/16/2027 CALLABLE MOODY'S RATING AAA CUSIP 362585AC5 950,000 GM FINANCIAL SECURITIZED TERM 950,074.22 947,387.50 0.61 2,686.72- 1,919.79 ASSET BCKD SEC SER 2024-1 CL A3 100.0078 99.7250 DTD 01/17/2024 4.850% 12/18/2028 CALLABLE MOODY'S RATING AAA CUSIP 36268GAD7 202,553.6 GM FINANCIAL SECURITIZED TERM 202,535.99 197,574.83 0.13 4,961.16-106.34 SER 2022-1 CL A3 *0 DAY DELAY*99.9913 97.5420 DTD 01/19/22 1.260 11/16/2026 CUSIP 380146AC4 186 PAGE 9 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,400,000 GUARDIAN LIFE GLOB FUND 1,385,860.00 1,301,468.00 0.84 84,392.00- 3,777.08 144A PRIV PLCMT 0.875 12/10/2025 98.9900 92.9620 MOODY'S RATING AA1 CUSIP 40139LBC6 805,000 HONDA AUTO RECEIVABLES OWNER 806,992.67 814,740.50 0.53 7,747.83 1,267.88 ASSET BCKD SEC SER 2023-4 CL A3 100.2476 101.2100 DTD 11/08/2023 5.670% 06/21/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 438123AC5 19,248.67 HONDA AUTO RECEIVABLES OWNER T 19,248.32 19,138.57 0.01 109.75-1.44 SER 2021-1 CL A3 *0 DAY DELAY*99.9982 99.4280 DTD 02/24/21 0.270 04/21/2025 MOODY'S RATING AAA CUSIP 43813GAC5 587,241.38 HONDA AUTO RECEIVABLES OWNER T 587,153.05 573,593.89 0.37 13,559.16-490.67 SER 2022-1 CL A3 *0 DAY DELAY*99.9850 97.6760 DTD 02/23/22 1.000 05/15/2026 MOODY'S RATING AAA CUSIP 43815BAC4 249,940.26 HONDA AUTO RECEIVABLES OWNER T 249,887.57 243,849.22 0.16 6,038.35-61.10 SER 2021-4 CL A3 *0 DAY DELAY*99.9789 97.5630 DTD 11/24/21 0.880 01/21/2026 MOODY'S RATING AAA CUSIP 43815GAC3 54,901.5 HYUNDAI AUTO LEASE SECURITIZAT 54,900.29 54,798.83 0.04 101.46-28.30 SER 2022-A CL A3 *0 DAY DELAY*99.9978 99.8130 144A PRIV PLCMT 1.160 01/15/2025 MOODY'S RATING AAA CUSIP 44891WAC3 808,931.62 HYUNDAI AUTO RECEIVABLES TRUST 808,900.48 791,539.59 0.51 17,360.89-798.15 ASSET BCKD SEC SER 2022-A CL A3 99.9962 97.8500 DTD 03/16/2022 2.220% 10/15/2026 CALLABLE CUSIP 448977AD0 187 PAGE 10 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 81,208.14 HYUNDAI AUTO RECEIVABLES TRUST 81,199.59 80,543.05 0.05 656.54-13.72 SER 2021-A CL A3 *0 DAY DELAY*99.9895 99.1810 DTD 04/28/21 0.380 09/15/2025 CUSIP 44933LAC7 707,823.98 HYUNDAI AUTO RECEIVABLES TRUST 689,927.03 692,032.43 0.45 2,105.40 232.80 SER 2021-C CL A3 *0 DAY DELAY*97.4716 97.7690 DTD 11/17/21 0.740 05/15/2026 CUSIP 44935FAD6 2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,277,566.40 1.48 171,166.80- 9,626.46 DTD 04/20/21 0.875 04/20/2026 99.5420 92.5840 MOODY'S RATING AAA CUSIP 4581X0DV7 2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,244,792.00 1.46 144,067.25- 5,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 93.5330 MOODY'S RATING AAA CUSIP 459058JL8 2,500,000 INTL FINANCE CORP 2,471,150.00 2,358,525.00 1.53 112,625.00- 1,953.13 DTD 07/16/20 0.375 07/16/2025 98.8460 94.3410 MOODY'S RATING AAA CUSIP 45950KCT5 2,000,000 JOHN DEERE CAPITAL CORP 2,004,220.00 2,000,860.00 1.30 3,360.00- 6,466.67 MEDIUM TERM NOTE 100.2110 100.0430 DTD 03/07/2024 4.850% 03/05/2027 NON CALLABLE MOODY'S RATING A1 CUSIP 24422EXM6 312,457.37 JOHN DEERE OWNER TRUST 312,388.24 305,895.77 0.20 6,492.47-322.18 ASSET BCKD SEC SER 2022-A CL A3 99.9779 97.9000 DTD 03/16/2022 2.320% 09/16/2026 NON CALLABLE MOODY'S RATING AAA CUSIP 47787JAC2 188 PAGE 11 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 259,813.28 JOHN DEERE OWNER TRUST 259,790.10 253,694.68 0.16 6,095.42-56.29 SER 2021-B CL A3 *0 DAY DELAY*99.9911 97.6450 DTD 07/21/21 0.520 03/16/2026 MOODY'S RATING AAA CUSIP 47789QAC4 655,000 JOHN DEERE OWNER TRUST 654,937.45 645,410.80 0.42 9,526.65- 1,088.76 ASSET BCKD SEC SER 2022-B CL A3 99.9905 98.5360 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 1,046,293.50 0.68 3,625.02- 2,375.33 ASSET BCKD SEC SER 2022-C CL A3 99.9923 99.6470 DTD 10/19/2022 5.090% 06/15/2027 CALLABLE MOODY'S RATING AAA CUSIP 47800BAC2 500,000 JOHN DEERE OWNER TRUST 499,765.63 499,920.00 0.32 154.37 826.67 ASSET BCKD SEC SER 2024-A CL A3 99.9531 99.9840 DTD 03/19/2024 4.960% 11/15/2028 CALLABLE MOODY'S RATING AAA CUSIP 47800RAD5 655,000 JPMORGAN CHASE &655,406.85 647,395.45 0.42 8,011.40- 1,727.78 SER F2F 100.0621 98.8390 DTD 06/23/21 06/23/2025 MOODY'S RATING A1 CUSIP 46647PCK0 401,000 JPMORGAN CHASE & CO 415,969.33 386,387.56 0.25 29,581.77- 3,689.17 DTD 04/22/20 04/22/2026 103.7330 96.3560 MOODY'S RATING A1 CUSIP 46647PBK1 189 PAGE 12 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,500,000 JPMORGAN CHASE & CO 1,500,780.00 1,494,825.00 0.97 5,955.00- 14,280.00 DTD 01/23/2024 VAR CPN 01/23/2028 100.0520 99.6550 CALLABLE MOODY'S RATING A1 CUSIP 46647PEA0 1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 915,510.00 0.59 86,720.00- 2,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 91.5510 MOODY'S RATING AA3 CUSIP 57629WDE7 945,000 MASTERCARD INC 944,083.35 957,379.50 0.62 13,296.15 2,815.31 DTD 03/09/2023 4.875% 03/09/2028 99.9030 101.3100 CALLABLE MOODY'S RATING AA3 CUSIP 57636QAW4 1,100,000 MERCEDES-BENZ AUTO RECEIVABLES TRUST 1,123,289.06 1,119,382.00 0.73 3,907.06- 2,908.89 ASSET BCKD SEC SER 2023-2 CL A3 102.1172 101.7620 DTD 10/25/2023 5.950% 11/15/2028 CALLABLE CUSIP 58769FAC9 1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 1,024,160.95 0.66 89,567.95- 4,645.83 144A PRIV PLCMT 1.875 01/11/2027 99.8860 91.8530 MOODY'S RATING AA3 CUSIP 59217GER6 770,000 MET TOWER GLOBAL FUNDING 769,291.60 700,969.50 0.46 68,322.10-454.51 144A PRIV PLCMT 1.250 09/14/2026 99.9080 91.0350 MOODY'S RATING AA3 CUSIP 58989V2D5 650,000 MORGAN STANLEY 615,699.50 627,087.50 0.41 11,388.00 6,044.35 DTD 04/28/20 04/28/2026 94.7230 96.4750 MOODY'S RATING A1 CUSIP 6174468Q5 190 PAGE 13 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 MORGAN STANLEY BK 1,000,082.50 1,019,280.00 0.66 19,197.50 24,508.33 DTD 11/01/2023 5.882% 10/30/2026 100.0083 101.9280 CALLABLE MOODY'S RATING AA3 CUSIP 61690U7W4 1,680,000 NEW YORK LIFE GLOBAL FDG 1,678,185.60 1,630,675.20 1.06 47,510.40- 5,075.00 MEDIUM TERM NOTE 99.8920 97.0640 144A PRIV PLCMT 1.450 01/14/2025 MOODY'S RATING AAA CUSIP 64952WEK5 670,000 NORTHERN TRUST CORP 668,914.60 652,740.80 0.42 16,173.80- 10,496.67 DTD 05/10/2022 4.000% 05/10/2027 99.8380 97.4240 CALLABLE MOODY'S RATING A2 CUSIP 665859AW4 850,000 NORTHWESTERN MUTUAL GLBL 827,449.50 788,655.50 0.51 38,794.00- 1,454.44 144A PRIV PLCMT 0.800 01/14/2026 97.3470 92.7830 MOODY'S RATING AAA CUSIP 66815L2A6 1,170,000 NORTHWESTERN MUTUAL GLBL 1,169,602.20 1,154,251.80 0.75 15,350.40- 11,700.00 DTD 07/01/2022 4.000% 07/01/2025 99.9660 98.6540 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AAA CUSIP 66815L2J7 370,000 PACCAR FINANCIAL CORP 369,182.30 365,463.80 0.24 3,718.50- 1,016.47 MED TERM NOTE 99.7790 98.7740 DTD 08/15/19 2.150 08/15/2024 MOODY'S RATING A1 CUSIP 69371RQ25 680,000 PACCAR FINANCIAL CORP 679,632.80 667,868.80 0.43 11,764.00-491.11 MED TERM NOTE 99.9460 98.2160 DTD 08/09/21 0.500 08/09/2024 MOODY'S RATING A1 CUSIP 69371RR40 191 PAGE 14 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 885,000 PACCAR FINANCIAL CORP 884,769.90 864,751.20 0.56 20,018.70- 12,190.88 MEDIUM TERM NOTE 99.9740 97.7120 DTD 04/07/2022 2.850% 04/07/2025 NON CALLABLE MOODY'S RATING A1 CUSIP 69371RR73 904,000 PRICOA GLOBAL FUNDING 1 832,972.72 849,036.80 0.55 16,064.08 602.67 144A PRIV PLCMT 0.800 09/01/2025 92.1430 93.9200 MOODY'S RATING AA3 CUSIP 74153WCM9 885,000 PRICOA GLOBAL FUNDING 1 884,088.45 859,441.20 0.56 24,647.25- 3,251.15 144A PRIV PLCMT 1.150 12/06/2024 99.8970 97.1120 MOODY'S RATING AA3 CUSIP 74153WCQ0 1,050,000 ROYAL BANK OF CANADA 1,049,611.50 1,029,409.50 0.67 20,202.00- 16,439.06 MEDIUM TERM NOTE 99.9630 98.0390 CONVERTIBLE DTD 04/14/2022 3.375% 04/14/2025 NON CALLABLE MOODY'S RATING A1 CUSIP 78016EZ59 1,760,000 SALESFORCE.COM INC 1,748,937.40 1,735,571.20 1.13 13,366.20- 2,322.22 DTD 07/12/21 0.625 07/15/2024 99.3715 98.6120 MOODY'S RATING A1 CUSIP 79466LAG9 1,760,000 STATE STR CORP 1,760,000.00 1,763,414.40 1.14 3,414.40 3,173.33 DTD 03/18/2024 4.993% 03/18/2027 100.0000 100.1940 CALLABLE CUSIP 857477CL5 700,000 TORONTO-DOMINION BANK 674,737.00 678,867.00 0.44 4,130.00 2,283.75 MED TERM NOTE SER FXD 96.3910 96.9810 DTD 01/12/22 1.450 01/10/2025 MOODY'S RATING A1 CUSIP 89114TZL9 192 PAGE 15 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,300,000 TOYOTA AUTO RECEIVABLES OWNER 1,294,718.75 1,301,183.00 0.84 6,464.25 2,981.33 ASSET BCKD SEC SER 2023-C CL A3 99.5938 100.0910 DTD 08/15/2023 5.160% 04/17/2028 CALLABLE CUSIP 89231FAD2 240,313.24 TOYOTA AUTO RECEIVABLES OWNER 240,308.11 234,161.22 0.15 6,146.89-75.83 SER 2021-D CL A3 *0 DAY DELAY*99.9979 97.4400 DTD 11/15/21 0.710 04/15/2026 CUSIP 89238JAC9 76,835.04 TOYOTA AUTO RECEIVABLES OWNER 76,820.78 76,443.18 0.05 377.60-8.88 SER 2021-A CL A3 *0 DAY DELAY*99.9815 99.4900 DTD 02/08/21 0.260 05/15/2025 MOODY'S RATING AAA CUSIP 89240BAC2 292,917.95 TOYOTA LEASE OWNER TRUST 292,871.84 291,898.60 0.19 973.24-175.43 ASSET BCKD SEC SER 2022-A CL A3 99.9843 99.6520 DTD 02/28/2022 1.960% 02/20/2025 CALLABLE 144A PRIVATE PLACEMENT CUSIP 89238LAC4 1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,274,795.55 0.83 109,595.05- 4,457.97 MED TERM NOTE 99.9560 92.0430 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 1,179,181.80 0.77 34,190.10- 3,670.31 DTD 01/13/22 1.450 01/13/2025 99.8660 97.0520 MOODY'S RATING A1 CUSIP 89236TJT3 3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 3,005,016.00 1.95 52,601.20- 2,506.11 DTD 03/15/2022 1.750% 03/15/2025 98.6328 96.9360 MOODY'S RATING AAA CUSIP 91282CED9 193 PAGE 16 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,138,525.00 2.04 121,787.50- 26,696.43 DTD 06/30/2022 3.250% 06/30/2027 100.3173 96.5700 MOODY'S RATING AAA CUSIP 91282CEW7 400,000 UNITED STATES TREASURY NOTES 393,218.75 379,876.00 0.25 13,342.75- 1,843.41 DTD 07/31/2022 2.750% 07/31/2027 98.3047 94.9690 MOODY'S RATING AAA CUSIP 91282CFB2 4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,322,835.00 2.81 146,067.34- 12,228.26 DTD 08/31/2022 3.125% 08/31/2027 99.3090 96.0630 MOODY'S RATING AAA CUSIP 91282CFH9 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,423,193.50 2.22 2,041.16 71,545.08 DTD 09/30/2022 4.125% 09/30/2027 99.1639 99.2230 MOODY'S RATING AAA CUSIP 91282CFM8 850,000 UNITED STATES TREASURY NOTES 852,656.25 836,255.50 0.54 16,400.75- 11,069.16 DTD 11/30/2022 3.875% 11/30/2027 100.3125 98.3830 MOODY'S RATING AAA CUSIP 91282CFZ9 2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,705,642.50 1.76 69,464.92- 26,933.38 DTD 12/31/2022 3.875% 12/31/2027 100.9130 98.3870 MOODY'S RATING AAA CUSIP 91282CGC9 3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,912,220.00 1.89 45,709.69- 17,596.15 DTD 01/31/2023 3.500% 01/31/2028 98.5977 97.0740 MOODY'S RATING AAA CUSIP 91282CGH8 3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,656,784.00 2.37 42,329.28- 12,869.57 DTD 02/28/2023 4.000% 02/29/2028 99.9760 98.8320 MOODY'S RATING AAA CUSIP 91282CGP0 194 PAGE 17 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 UNITED STATES TREASURY NOTES 2,525,097.66 2,493,850.00 1.62 31,247.66- 32,274.59 DTD 12/15/2023 4.375% 12/15/2026 101.0039 99.7540 MOODY'S RATING AAA CUSIP 91282CJP7 1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 957,323.25 0.62 67,728.10- 4,496.50 DTD 05/19/21 1.150 05/15/2026 99.0388 92.4950 MOODY'S RATING A2 CUSIP 91324PEC2 675,000 UNITEDHEALTH GROUP INC 675,316.70 654,486.75 0.42 20,829.95- 9,435.00 DTD 05/20/2022 3.700% 05/15/2027 100.0469 96.9610 CALLABLE MOODY'S RATING A2 CUSIP 91324PEG3 1,250,000 US BANCORP 1,268,262.50 1,236,787.50 0.80 31,475.00- 5,083.33 DTD 07/29/19 2.400 07/30/2024 101.4610 98.9430 MOODY'S RATING A3 CUSIP 91159HHX1 1,500,000 US TREASURY NOTE 1,469,765.63 1,411,170.00 0.92 58,595.63-628.43 DTD 07/31/20 0.250 07/31/2025 97.9844 94.0780 MOODY'S RATING AAA CUSIP 91282CAB7 2,400,000 US TREASURY NOTE 2,366,140.63 2,242,776.00 1.46 123,364.63- 3,016.39 DTD 09/30/20 0.250 09/30/2025 98.5892 93.4490 MOODY'S RATING AAA CUSIP 91282CAM3 2,450,000 US TREASURY NOTE 2,422,492.19 2,282,126.00 1.48 140,366.19- 2,574.52 DTD 10/31/20 0.250 10/31/2025 98.8772 93.1480 MOODY'S RATING AAA CUSIP 91282CAT8 2,250,000 US TREASURY NOTE 2,209,658.20 2,093,287.50 1.36 116,370.70- 2,835.55 DTD 11/30/20 0.375 11/30/2025 98.2070 93.0350 MOODY'S RATING AAA CUSIP 91282CAZ4 195 PAGE 18 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 US TREASURY NOTE 2,456,445.31 2,311,425.00 1.50 145,020.31- 1,571.09 DTD 02/01/21 0.375 01/31/2026 98.2578 92.4570 MOODY'S RATING AAA CUSIP 91282CBH3 2,500,000 US TREASURY NOTE 2,493,652.34 2,309,575.00 1.50 184,077.34- 7,881.18 DTD 04/30/21 0.750 04/30/2026 99.7461 92.3830 MOODY'S RATING AAA CUSIP 91282CBW0 1,400,000 US TREASURY NOTE 1,379,054.68 1,281,280.00 0.83 97,774.68- 6,158.47 DTD 09/30/21 0.875 09/30/2026 98.5039 91.5200 MOODY'S RATING AAA CUSIP 91282CCZ2 1,400,000 US TREASURY NOTE 1,391,468.75 1,285,816.00 0.83 105,652.75- 6,620.19 DTD 11/01/21 1.125 10/31/2026 99.3906 91.8440 CUSIP 91282CDG3 1,700,000 US TREASURY NOTE 1,753,191.41 1,681,317.00 1.09 71,874.41- 5,102.34 DTD 08/15/14 2.375 08/15/2024 103.1289 98.9010 MOODY'S RATING AAA CUSIP 912828D56 2,000,000 US TREASURY NOTE 2,018,574.22 1,983,100.00 1.29 35,474.22- 10,109.89 DTD 06/30/17 2.000 06/30/2024 100.9287 99.1550 MOODY'S RATING AAA CUSIP 912828XX3 2,100,000 US TREASURY NOTE 2,087,203.13 2,047,668.00 1.33 39,535.13- 9,288.46 DTD 12/31/19 1.750 12/31/2024 99.3906 97.5080 CUSIP 912828YY0 1,500,000 US TREASURY NOTE 1,523,144.53 1,447,395.00 0.94 75,749.53- 1,529.88 DTD 03/02/20 1.125 02/28/2025 101.5430 96.4930 MOODY'S RATING AAA CUSIP 912828ZC7 196 PAGE 19 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF MARCH 31, 2024 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 US TREASURY NOTE 2,360,839.85 2,379,500.00 1.54 18,660.15 3,940.59 DTD 04/30/20 0.375 04/30/2025 94.4336 95.1800 MOODY'S RATING AAA CUSIP 912828ZL7 350,000 WALMART INC 349,338.50 320,862.50 0.21 28,476.00-142.92 DTD 09/17/21 1.050 09/17/2026 99.8110 91.6750 MOODY'S RATING AA2 CUSIP 931142ER0 ====================================================================================================================================== TOTAL BOND & NOTES 155,842,270.15 150,682,642.33 97.81 5,159,627.82- 720,007.17 ====================================================================================================================================== TOTAL INVESTMENTS 159,121,364.07 154,054,489.15 100.00 5,066,874.92- 722,180.28 TOTAL ACCRUALS 722,180.28 722,180.28 ====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 159,843,544.35 154,776,669.43 197 PAGE 20 CASH SUMMARY CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH SUMMARY DESCRIPTION PRINCIPAL CASH INCOME CASH ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00 RECEIPTS NET INTEREST COLLECTED 0.00 202,685.62 TRANSFER RECEIPTS 203,236.73 0.00 SALES 6,730,081.97 0.00 CASH MANAGEMENT SALES 863,711.11 0.00 TOTAL CASH RECEIPTS 7,797,029.81 202,685.62 DISBURSEMENTS INVESTMENT MANAGEMENT EXPENSES 9,386.16-0.00 TRANSFER DISBURSEMENTS 0.00 203,236.73- PURCHASES 6,940,756.03-0.00 CASH MANAGEMENT PURCHASES 846,336.51-0.00 TOTAL CASH DISBURSEMENTS 7,796,478.70-203,236.73- ======================================================================================================================================== ENDING BALANCE 551.11 551.11- ________________________________________________________________________________________________________________________________________ 198 PAGE 21 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 159,141,799.96 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS 03/01/24 INTEREST RECEIVED 1,682.79 AS 100% TREAS MM FD-SVC CL #008 INTEREST FROM 2/1/24 TO 2/29/24 03/01/24 INTEREST RECEIVED 118.29 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM INTEREST FROM 2/1/24 TO 2/29/24 03/31/24 846,218.22 CASH SWEEP PURCHASES FOR STMT PERIOD 846,218.22-846,218.22 AS 100% TREAS MM FD-SVC CL #008 9 TRANSACTIONS 03/31/24 118.29 CASH SWEEP PURCHASES FOR STMT PERIOD 118.29-118.29 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM 1 TRANSACTIONS 03/31/24 863,711.11- CASH SWEEP SALES FOR STMT PERIOD 863,711.11 863,711.11- AS 100% TREAS MM FD-SVC CL #008 5 TRANSACTIONS BONDS & NOTES 03/18/24 1,675,000- SOLD 1,660,628.50 1,771,212.00- 110,583.50- AIR PRODUCTS & CHEMI 3.350% 7/31/24 CUSIP 009158AV8 AT $99.1420 ON TRADE DATE 03/14/2024 TO SETTLE ON 03/18/2024 J.P. MORGAN SECURITIES INC., - 03/18/24 ACCRUED INTEREST ON SALE 7,481.67 AIR PRODUCTS & CHEMI 3.350% 7/31/24 CUSIP 009158AV8 199 PAGE 22 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/24 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 3/15/24 03/15/24 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 3/15/24 03/15/24 INTEREST RECEIVED 18,572.50 BERKSHIRE HATH 2.300% 3/15/27 CUSIP 084664CZ2 INTEREST ON 1,615,000.000 UNITS 03/15/24 INTEREST RECEIVED 3,527.50 BK OF AMERICA ABS 4.980% 11/15/28 CUSIP 05522RDH8 $0.00415/PV ON 850,000.00 PV DUE 3/15/24 03/22/24 0.01- SHARE ADJUSTMENT BMW VEHICLE LEASE TR 1.100% 3/25/25 CUSIP 05601XAC3 03/25/24 INTEREST RECEIVED 26.39 BMW VEHICLE LEASE TR 1.100% 3/25/25 CUSIP 05601XAC3 $0.00006/PV ON 28,794.24 PV DUE 3/25/24 03/25/24 28,794.24- PAID DOWN 28,794.24 28,789.94-4.30 BMW VEHICLE LEASE TR 1.100% 3/25/25 CUSIP 05601XAC3 200 PAGE 23 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/25/24 INTEREST RECEIVED 1,207.96 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 $0.00228/PV ON 451,574.31 PV DUE 3/25/24 03/25/24 30,619.03- PAID DOWN 30,619.03 30,617.44-1.59 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 AT $911.3975 ON TRADE DATE 03/25/2024 03/04/24 INTEREST RECEIVED 11,760.00 CHARLES SCHWAB CORP 2.450% 3/03/27 CUSIP 808513BY0 INTEREST ON 960,000.000 UNITS 03/15/24 INTEREST RECEIVED 6,478.33 CHASE ISSUANCE ABS 4.600% 1/16/29 CUSIP 161571HV9 $0.00383/PV ON 1,690,000.00 PV DUE 3/15/24 03/13/24 1,170,000 PURCHASED 1,175,990.40- 1,175,990.40 CISCO SYSTEMS INC 4.800% 2/26/27 CUSIP 17275RBQ4 AT $100.5120 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 TORONTO DOMINION SECURITIES (U 03/13/24 ACCRUED INTEREST ON PURCHASE 2,652.00- CISCO SYSTEMS INC 4.800% 2/26/27 CUSIP 17275RBQ4 03/13/24 INTEREST RECEIVED 28,750.00 FED HOME LN BK 2.875% 9/13/24 CUSIP 3130A2UW4 INTEREST ON 2,000,000.000 UNITS 201 PAGE 24 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/25/24 INTEREST RECEIVED 4,687.50 FED HOME LN MTG CORP 0.375% 9/23/25 CUSIP 3137EAEX3 INTEREST ON 2,500,000.000 UNITS 03/25/24 INTEREST RECEIVED 3,383.47 FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 $0.00260/PV ON 1,280,404.35 PV DUE 3/25/24 03/25/24 3,180.01- PAID DOWN 3,180.01 3,420.75-240.74- FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 03/25/24 INTEREST RECEIVED 1,437.04 FHLMC MULTIFAMILY ST 2.653% 8/25/26 CUSIP 3137BSP72 $0.00221/PV ON 650,000.00 PV DUE 3/25/24 03/25/24 INTEREST RECEIVED 1,422.62 FHLMC MULTIFAMILY ST 2.995% 12/25/25 CUSIP 3137BN6G4 $0.00250/PV ON 570,000.00 PV DUE 3/25/24 03/25/24 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 3/25/24 03/25/24 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 3/25/24 202 PAGE 25 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/25/24 INTEREST RECEIVED 1,212.93 FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 $0.00276/PV ON 440,000.00 PV DUE 3/25/24 03/18/24 INTEREST RECEIVED 970.52 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 $0.00249/PV ON 375,683.12 PV DUE 3/16/24 03/18/24 20,694.94- PAID DOWN 20,694.94 20,690.61-4.33 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 TO SETTLE ON 03/18/2024 03/18/24 INTEREST RECEIVED 3,839.58 GM FINANCIAL ABS 4.850% 12/18/28 CUSIP 36268GAD7 $0.00404/PV ON 950,000.00 PV DUE 3/16/24 03/20/24 INTEREST RECEIVED 398.56 GM FINANCIAL AUTOMOB 1.850% 3/20/25 CUSIP 36265MAC9 $0.00042/PV ON 251,722.75 PV DUE 3/20/24 03/20/24 120,671.37- PAID DOWN 120,671.37 120,670.33-1.04 GM FINANCIAL AUTOMOB 1.850% 3/20/25 CUSIP 36265MAC9 03/18/24 INTEREST RECEIVED 124.90 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 $0.00036/PV ON 220,411.96 PV DUE 3/16/24 203 PAGE 26 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/18/24 15,937.32- PAID DOWN 15,937.32 15,936.91-0.41 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 TO SETTLE ON 03/18/2024 03/18/24 INTEREST RECEIVED 227.79 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 $0.00077/PV ON 216,939.37 PV DUE 3/16/24 03/18/24 14,385.77- PAID DOWN 14,385.77 14,384.52-1.25 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 TO SETTLE ON 03/18/2024 03/21/24 INTEREST RECEIVED 3,803.63 HONDA AUTO RECE ABS 5.670% 6/21/28 CUSIP 438123AC5 $0.00473/PV ON 805,000.00 PV DUE 3/21/24 03/21/24 INTEREST RECEIVED 6.51 HONDA AUTO RECEIVABL 0.270% 4/21/25 CUSIP 43813GAC5 $0.00002/PV ON 28,921.16 PV DUE 3/21/24 03/21/24 9,672.49- PAID DOWN 9,672.49 9,672.31-0.18 HONDA AUTO RECEIVABL 0.270% 4/21/25 CUSIP 43813GAC5 03/21/24 INTEREST RECEIVED 199.99 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 $0.00043/PV ON 272,719.03 PV DUE 3/21/24 204 PAGE 27 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/21/24 22,778.77- PAID DOWN 22,778.77 22,773.97-4.80 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 03/15/24 INTEREST RECEIVED 989.64 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 $0.00134/PV ON 631,684.81 PV DUE 3/15/24 03/15/24 44,443.43- PAID DOWN 44,443.43 44,436.75-6.68 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 AT $372.2697 ON TRADE DATE 03/15/2024 03/15/24 INTEREST RECEIVED 108.50 HYUNDAI AUTO LEASE 1.160% 1/15/25 CUSIP 44891WAC3 $0.00020/PV ON 112,241.89 PV DUE 3/15/24 03/15/24 57,340.39- PAID DOWN 57,340.39 57,339.12-1.27 HYUNDAI AUTO LEASE 1.160% 1/15/25 CUSIP 44891WAC3 AT $288.5391 ON TRADE DATE 03/15/2024 03/15/24 INTEREST RECEIVED 1,599.68 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 $0.00158/PV ON 864,693.82 PV DUE 3/15/24 03/15/24 55,762.2- PAID DOWN 55,762.20 55,760.05-2.15 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 AT $296.7053 ON TRADE DATE 03/15/2024 205 PAGE 28 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/24 INTEREST RECEIVED 32.65 HYUNDAI AUTO RECEIVA 0.380% 9/15/25 CUSIP 44933LAC7 $0.00006/PV ON 103,099.20 PV DUE 3/15/24 03/15/24 21,891.06- PAID DOWN 21,891.06 21,888.76-2.30 HYUNDAI AUTO RECEIVA 0.380% 9/15/25 CUSIP 44933LAC7 03/15/24 INTEREST RECEIVED 478.57 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 $0.00036/PV ON 776,066.09 PV DUE 3/15/24 03/15/24 68,242.11- PAID DOWN 68,242.11 66,516.64-1,725.47 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 AT $322.4515 ON TRADE DATE 03/15/2024 03/13/24 2,000,000 PURCHASED 2,004,220.00- 2,004,220.00 JOHN DEERE CAP MTN 4.850% 3/05/27 CUSIP 24422EXM6 AT $100.2110 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 MERRILL LYNCH,PIERCE,FENNER 03/13/24 ACCRUED INTEREST ON PURCHASE 1,616.67- JOHN DEERE CAP MTN 4.850% 3/05/27 CUSIP 24422EXM6 03/15/24 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 3/15/24 206 PAGE 29 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/24 INTEREST RECEIVED 635.84 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 $0.00141/PV ON 328,880.36 PV DUE 3/15/24 03/15/24 16,422.99- PAID DOWN 16,422.99 16,419.36-3.63 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 AT $1,007.4257 ON TRADE DATE 03/15/2024 03/15/24 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 3/15/24 03/27/24 500,000 PURCHASED 499,765.63-499,765.63 JOHN DEERE OWNER ABS 4.960% 11/15/28 CUSIP 47800RAD5 AT $99.9531 ON TRADE DATE 03/25/2024 TO SETTLE ON 03/27/2024 MITSUBISHI UFJ SECURITIES (USA 03/27/24 ACCRUED INTEREST ON PURCHASE 551.11- JOHN DEERE OWNER ABS 4.960% 11/15/28 CUSIP 47800RAD5 03/15/24 INTEREST RECEIVED 123.83 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 $0.00021/PV ON 285,759.52 PV DUE 3/15/24 03/15/24 25,946.24- PAID DOWN 25,946.24 25,943.93-2.31 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 207 PAGE 30 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/13/24 1,500,000 PURCHASED 1,500,780.00- 1,500,780.00 JPMORGAN CHASE V-D 5.040% 1/23/28 CUSIP 46647PEA0 AT $100.0520 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 GOLDMAN SACHS 03/13/24 ACCRUED INTEREST ON PURCHASE 10,500.00- JPMORGAN CHASE V-D 5.040% 1/23/28 CUSIP 46647PEA0 03/11/24 INTEREST RECEIVED 23,034.38 MASTERCARD INC 4.875% 3/09/28 CUSIP 57636QAW4 INTEREST ON 945,000.000 UNITS 03/15/24 INTEREST RECEIVED 5,454.17 MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 $0.00496/PV ON 1,100,000.00 PV DUE 3/15/24 03/14/24 INTEREST RECEIVED 4,812.50 P/P MET TOWER GLOBAL 1.250% 9/14/26 CUSIP 58989V2D5 INTEREST ON 770,000.000 UNITS 03/01/24 INTEREST RECEIVED 3,616.00 P/P PRICOA GLOBAL FU 0.800% 9/01/25 CUSIP 74153WCM9 INTEREST ON 904,000.000 UNITS 03/13/24 1,500,000- SOLD 1,484,115.00 1,533,359.18-49,244.18- ROYAL BANK OF CANADA 2.550% 7/16/24 CUSIP 78013XZU5 AT $98.9410 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 MARKETAXESS CORPORATION 208 PAGE 31 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/13/24 ACCRUED INTEREST ON SALE 6,056.25 ROYAL BANK OF CANADA 2.550% 7/16/24 CUSIP 78013XZU5 03/18/24 1,760,000 PURCHASED 1,760,000.00- 1,760,000.00 STATE STR CORP 4.993% 3/18/27 CUSIP 857477CL5 AT $100.0000 ON TRADE DATE 03/13/2024 TO SETTLE ON 03/18/2024 MORGAN STANLEY & CO. 03/13/24 1,500,000- SOLD 1,488,780.00 1,527,255.00-38,475.00- TORONTO-DOMINION BAN 2.650% 6/12/24 CUSIP 89114QCA4 AT $99.2520 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 BMOCM/BONDS 03/13/24 ACCRUED INTEREST ON SALE 10,047.92 TORONTO-DOMINION BAN 2.650% 6/12/24 CUSIP 89114QCA4 03/15/24 INTEREST RECEIVED 5,590.00 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 $0.00430/PV ON 1,300,000.00 PV DUE 3/15/24 03/15/24 INTEREST RECEIVED 24.24 TOYOTA AUTO RECEIVAB 0.260% 5/15/25 CUSIP 89240BAC2 $0.00002/PV ON 111,875.37 PV DUE 3/15/24 03/15/24 35,040.33- PAID DOWN 35,040.33 35,033.83-6.50 TOYOTA AUTO RECEIVAB 0.260% 5/15/25 CUSIP 89240BAC2 AT $472.1686 ON TRADE DATE 03/15/2024 209 PAGE 32 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/24 INTEREST RECEIVED 154.54 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 $0.00036/PV ON 261,200.54 PV DUE 3/15/24 03/15/24 20,887.3- PAID DOWN 20,887.30 20,886.85-0.45 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 AT $792.1054 ON TRADE DATE 03/15/2024 03/20/24 INTEREST RECEIVED 689.22 TOYOTA LEASE OWN ABS 1.960% 2/20/25 CUSIP 89238LAC4 $0.00060/PV ON 421,973.43 PV DUE 3/20/24 03/20/24 129,055.48- PAID DOWN 129,055.48 129,035.17-20.31 TOYOTA LEASE OWN ABS 1.960% 2/20/25 CUSIP 89238LAC4 03/15/24 INTEREST RECEIVED 27,125.00 U.S. TREASURY NOTES 1.750% 3/15/25 CUSIP 91282CED9 INTEREST ON 3,100,000.000 UNITS 03/25/24 INTEREST RECEIVED 2,639.42 VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 $0.00278/PV ON 950,000.00 PV DUE 3/25/24 03/13/24 1,370,000- SOLD 1,354,793.00 1,371,773.90-16,980.90- VR JPMORGAN CHASE & 0.824% 6/01/25 CUSIP 46647PCH7 AT $98.8900 ON TRADE DATE 03/11/2024 TO SETTLE ON 03/13/2024 MORGAN STANLEY & CO. 210 PAGE 33 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/13/24 ACCRUED INTEREST ON SALE 3,198.49 VR JPMORGAN CHASE & 0.824% 6/01/25 CUSIP 46647PCH7 03/18/24 INTEREST RECEIVED 1,837.50 WALMART INC 1.050% 9/17/26 CUSIP 931142ER0 INTEREST ON 350,000.000 UNITS TRANSFER RECEIPTS 03/01/24 ADDITION TO ACCOUNT 5,417.08 TRANSFER FROM INCOME 03/04/24 ADDITION TO ACCOUNT 11,760.00 TRANSFER FROM INCOME 03/11/24 ADDITION TO ACCOUNT 23,034.38 TRANSFER FROM INCOME 03/13/24 ADDITION TO ACCOUNT 33,283.99 TRANSFER FROM INCOME 03/14/24 ADDITION TO ACCOUNT 4,812.50 TRANSFER FROM INCOME 03/15/24 ADDITION TO ACCOUNT 80,592.42 TRANSFER FROM INCOME 03/18/24 ADDITION TO ACCOUNT 18,009.46 TRANSFER FROM INCOME 03/20/24 ADDITION TO ACCOUNT 1,087.78 TRANSFER FROM INCOME 211 PAGE 34 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/21/24 ADDITION TO ACCOUNT 4,010.13 TRANSFER FROM INCOME 03/25/24 ADDITION TO ACCOUNT 21,228.99 TRANSFER FROM INCOME INVESTMENT MANAGEMENT EXPENSES 03/12/24 INVESTMENT MGMT FEE 9,386.16- PAID TO CHANDLER ASSET MANAGEMENT INC INV 2402CUPERTIN CHANDLER ASSET MGMT FEE FOR PERIOD ENDING 2/1/24-2/29/24 TRANSFER DISBURSEMENTS 03/01/24 TRANSFER TO PRINCIPAL 5,417.08- 03/04/24 TRANSFER TO PRINCIPAL 11,760.00- 03/11/24 TRANSFER TO PRINCIPAL 23,034.38- 03/13/24 TRANSFER TO PRINCIPAL 33,283.99- 03/14/24 TRANSFER TO PRINCIPAL 4,812.50- 03/15/24 TRANSFER TO PRINCIPAL 80,592.42- 03/18/24 TRANSFER TO PRINCIPAL 18,009.46- 03/20/24 TRANSFER TO PRINCIPAL 1,087.78- 03/21/24 TRANSFER TO PRINCIPAL 4,010.13- 03/25/24 TRANSFER TO PRINCIPAL 21,228.99- ================================================================================================================= ENDING BALANCE 0.00 159,121,364.07 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 212 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 35 PENDING TRADES SCHEDULE CITY OF CUPERTINO FOR THE PERIOD MARCH 1, 2024 THROUGH MARCH 31, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PENDING TRADES SCHEDULE TRADE SETTLE ACCRUED DUE TO/FROM MONTH END PAR VALUE/SHARES DESCRIPTION DATE DATE INTEREST BROKER MARKET VALUE ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ PENDING PURCHASES ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,340,000 TORONTO BK MTN CONV 4.980% 4/05/27 03/26/24 04/05/24 0.00 1,340,000.00- 1,338,003.40 PRICE: 100.0000 CUSIP 89115A2W1 ==================================================================================================================================== TOTAL PENDING PURCHASES 0.00 1,340,000.00- 1,338,003.40 PENDING SALES ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,250,000- US BANCORP 2.400% 7/30/24 03/27/24 04/01/24 5,083.33 1,236,512.50 1,236,787.50- PRICE: 98.9210 CUSIP 91159HHX1 ==================================================================================================================================== TOTAL PENDING SALES 5,083.33 1,236,512.50 1,236,787.50- ____________________________________________________________________________________________________________________________________ NET PENDING TRADES 5,083.33 103,487.50- 101,215.90 213 CITY OF CUPERTINO PARS Post-Employment Benefits Trust 3/1/2024 to 3/31/2024 Kristina Alfaro Director of Administrative Services City of Cupertino 10300 Torre Ave. Cupertino, CA 95014 Account Summary Source 3/1/2024 Contributions Earnings Expenses Distributions Transfers 3/31/2024 OPEB 1001 $38,233,187.97 $0.00 $989,507.52 $10,606.13 $0.00 $0.00 $39,212,089.36 PENSION 1002 $21,025,437.75 $0.00 $541,705.12 $5,820.04 $0.00 $0.00 $21,561,322.83 Totals $59,258,625.72 $0.00 $1,531,212.64 $16,426.17 $0.00 $0.00 $60,773,412.19 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 2.59%5.86%18.05%3.44%7.06%6.12%6/21/2010 PENSION 2.58%5.84%18.03%3.39%7.49%-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 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 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 214 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 April 16, 2024 LAIF Home PMIA Average Monthly Yields CITY OF CUPERTINO FINANCE MANAGER 10300 TORRE AVENUE CUPERTINO, CA 95014 Account Number: March 2024 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 3/11/2024 3/11/2024 RD 1748866 N/A KRISTINA ALFARO 45,000,000.00 Account Summary Total Deposit:45,000,000.00 Beginning Balance:22,006,824.00 Total Withdrawal:0.00 Ending Balance:67,006,824.00 215 CITY COUNCIL STAFF REPORT Meeting: February 21, 2024 Subject Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 Recommended Action Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2023 Reasons for Recommendation Background On May 16, 2023, 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. 216 2 Treasurer's Investment Report The report provides an update on the City's investment portfolio for the month ending December 31, 2023. The report is as of January 17, 2024. 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 $239.4 million, a $4.1 million increase from the prior quarter. Cash and Investments – General Ledger Balance Fund Type Quarter Ending September 30, 2023 Quarter Ending December 31, 2023 General Fund 131,872,784 141,743,483 Special Revenue 42,942,560 41,761,918 Debt Service 2,684,450 2,361,650 Capital Projects 37,978,199 36,434,860 Enterprise 11,167,451 10,277,394 Internal Service 8,615,981 6,784,421 Total $235,261,426 $239,363,725 217 3 The $239.4 million in cash and investments includes $48.5 million in cash, $21.7 million in cash equivalents, $151.9 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. 218 4 Cash and Investments – General Ledger Balance Quarter Ending September 30, 2023 Quarter Ending December 31, 2023 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 44,563,856 48,488,626 20% Workers' Compensation Checking (Wells Fargo) 43,934 26,746 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 21,553,792 21,748,511 9% Investments Investments (Chandler) 151,856,206 151,856,206 63% Restricted for Pension2 (PARS) 17,240,051 17,240,051 7% Total Cash and Investments3 $235,261,426 $239,363,725 100% 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. 219 5 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 September 30, 2023 Quarter Ending December 31, 2023 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 49,304,330 49,177,441 20% Workers' Compensation Checking (Wells Fargo) 45,984 23,013 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Cash Equivalents Local Agency Investment Fund 21,593,220 21,787,939 9% Investments Investments (Chandler) 150,093,752 153,958,566 63% Restricted for Pension2 (PARS) 18,500,105 20,389,010 8% Total Cash and Investments3 $239,537,391 $245,335,970 100% 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. 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 $21.8 million. The quarterly interest rate was 4.00%. The City did not make any deposits or withdrawals in the quarter ending December 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: 220 6 • 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 $154.0 million, compared to $150.1 million at the end of the previous quarter. The table below includes historical comparisons of the City's portfolio: September 30, 2023 December 31, 2023 Market Value 150,093,752 153,958,566 Par Value 158,177,925 158,767,712 Book Value 157,776,718 158,476,712 Average Maturity 2.14 years 2.10 years Average Modified Duration 1.83 1.86 Average Purchase Yield 2.03% 2.19% Average Market Yield 5.36% 4.69% 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. 221 7 Investments in the Section 115 Trusts are governed by separate investment policies, which are distinct from the City's Investment Policy. On December 5, 2023, 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 horizon. The strategic asset allocation ranges for this investment objective are: 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 $20.4 million, an increase of $1.0 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $37.1 million, an increase of $1.9 million from the prior quarter due to investment gains. The quarterly investment returns were 10.3% 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: 222 8 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 4.79% and 4.23%, respectively. The one-year Treasury yield decreased by 67 basis points, and the two-year Treasury yield decreased by 80 basis points from September 30, 2023. The yield of the City's investment portfolio was 4.69%, 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: 223 9 224 10 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. Liquidity ratios have been higher in FY 2023-24 due to increased cash and investment balances as the City anticipated an adverse decision from a California Department of Tax and Fee Administration (CDTFA) audit of a City taxpayer. On October 10, 2023, the City established a Sales Tax Repayment Reserve with an initial allocation of $56.5 million to set aside disputed sales tax revenue. As of December 31, 2023, the liquidity ratio was 3.9 and 2.4 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 December 31, 2023, the City had $71.0 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. 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: 225 11 226 12 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. Sustainability Impact 227 13 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 December 2023 B – Chandler Custodial Statement December 2023 C – PARS Pension and OPEB Account Statement December 2023 D – LAIF Account Statement December 2023 228 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending December 31, 2023 City of Cupertino 229 SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of December 31, 2023 1 230 SECTION |Section 1 |Economic Update 2 231 Economic Update    Recent economic da ta has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market. Inflationary trends are subsiding, but core levels remain above the Fed’s target.Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024. As expected at the December meeting,the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 -5.50%.Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The new Summary of Economic Projections reflected Core PCE inflation reaching the target 2%level in 2026 without a significant increase in unemployment.We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. US Treasury rates fell steeply across the yield curve in December on decelerating inflation readings and a more dovish Federal Reserve outlook.The 2-year Treasury yield declined 43 basis points to 4.25%,the 5-year Treasury yield dropped 42 basis points to 3.85%,and the 10- year Treasury yield decreased 45 basis points to 3.88%.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -55 basis points. The inversion between 3-month and 10-year Treasuries widened to - 146 basis points in December from -107 basis points in November. Interest rates peaked in 2023 followed by the Fed’s dovish pivot late in the year,resulting in a decline in yields across the curve and signaling less restrictive monetary policy in 2024.The shape of the yield curve indicates that the probability of recession persists. 3 232 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 216,000 jobs in December, exceeding consensus expectations of 175,000,and the last two months were revised down by 71,000 jobs.Leading sectors included government,leisure,hospitality,and healthcare.The trajectory of job creation is gradually moderating,with the three-month moving average payrolls at 165,000 and the six-month moving average at 193,000.The unemployment rate remained unchanged at 3.7%,and the labor participation rate decreased to 62.5%from 62.8%,falling well below the pre-pandemic level of 63.3%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons rose to 7.1%from 7.0%last month.Average hourly earnings rose 4.1%year-over-year in December,increasing from a 4.0%gain last month.Employment remains strong by historical standards, but data are trending toward a less robust labor market outlook. Source: US Department of Labor Source: US Department of Labor 4 233 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 0.1%month-over-month and 3.1%year-over-year in November,edging down from 3.2%year- over-year in October.The Core CPI,which excludes volatile food and energy components,was up 0.3%month-over-month and 4.0%year- over-year,unchanged from October as expected.Shelter was the largest contributor to November's Core CPI monthly advance, accounting for 70%of the increase.The Personal Consumption Expenditures (PCE)Index eased more than expected in November,as headline inflation fell 0.1%month-over-month and rose 2.6%year-over-year,down from a 2.9%increase in October. Core PCE,the Federal Reserve’s preferred inflation gauge,increased 0.1%month-over-month and decelerated to 3.2%year-over-year in November from a 3.4% year-over-year increase in October. The trend is moderating, but inflation remains above the Fed's 2% target. Source: US Department of Labor Source: US Department of Commerce 5 234 Federal Reserve Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As expected at the December meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The Fed acknowledged inflation eased over the past year while remaining elevated. Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The Summary of Economic Projections reflected Core PCE inflation reaching the target 2% level in 2026 without a significant increase in unemployment. The median forecast for the federal funds rate declined to 4.6%, implying three quarter-point cuts next year, four in 2025 and three in 2026, placing the federal funds target rate around 2.9% at the end of the forecast horizon. The market interpreted the statement as dovish, with futures contracts pricing in rate cuts sooner and more aggressively than the Fed’s forecasts next year. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.2T to approximately $7.8T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) 6 235 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 Y i e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Dec-23 Sep-23 Dec-22 Yi e l d ( % ) At the end of December,the 2-year Treasury yield was 18 basis points lower,and the 10-Year Treasury yield was flat,year-over-year.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The average historical spread (since 2003)is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -146 basis points in December from -107 basis points in November.The shape of the yield curve indicates that the probability of recession persists. 7 236 Periodic Table of Asset Class Returns As of December 31, 2023 Index returns as of 12/31/2023. Past performance is not indicative of future results. Index returns assume reinvestment of all distributions and do not reflect fees or expenses. It is not possible to invest directly in an index. This information is not intended to constitute an offer, solicitation, recommendation, or advice regarding securities or investment strategy. Please see attached Asset Class Disclosure. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 US Small Cap Stocks 39.1% US Real Estate 30.4% US Real Estate 2.5% US Small Cap Stocks 20.4% Emerging Market Stocks 37.3% International Bonds 3.2% US Large Cap Stocks 31.5% US Mid Cap Stocks 19.8% US Real Estate 43.1% Diversified Commodities 26.0% US Large Cap Stocks 26.3% US Mid Cap Stocks 36.3% US Large Cap Stocks 13.7% US Large Cap Stocks 1.4% US High Yield Bonds 17.5% International Stocks 25.0% US Core Bonds 0.0% US Mid Cap Stocks 30.6% US Small Cap Stocks 19.2% Diversified Commodities 40.4% US High Yield Bonds -11.2% US Small Cap Stocks 19.1% US Large Cap Stocks 32.4% US Mid Cap Stocks 13.4% International Bonds 1.3% US Mid Cap Stocks 12.6% US Large Cap Stocks 21.8% US High Yield Bonds -2.3% US Small Cap Stocks 25.9% US Large Cap Stocks 18.4% US Large Cap Stocks 28.7% International Bonds -12.7% International Stocks 18.2% International Stocks 22.8% International Bonds 9.1% US Core Bonds 0.6% US Large Cap Stocks 12.0% US Mid Cap Stocks 20.3% US Large Cap Stocks -4.4% US Real Estate 25.8% Emerging Market Stocks 18.3% US Mid Cap Stocks 24.0% US Core Bonds -13.3% US Mid Cap Stocks 14.5% US High Yield Bonds 7.4% US Core Bonds 6.4% US Mid Cap Stocks -0.6% Diversified Commodities 11.4% International Real Estate 20.0% US Real Estate -4.6% International Stocks 22.0% International Stocks 7.8% US Small Cap Stocks 21.1% International Stocks -14.5% US Real Estate 13.7% International Real Estate 5.8% US Small Cap Stocks 6.1% International Stocks -0.8% Emerging Market Stocks 11.2% US Small Cap Stocks 15.2% International Real Estate -6.4% International Real Estate 21.0% US Core Bonds 7.6% International Stocks 11.3% US Mid Cap Stocks -16.9% US High Yield Bonds 13.5% US Real Estate 2.5% International Real Estate 2.8% International Real Estate -3.8% US Real Estate 8.6% US High Yield Bonds 7.5% US Mid Cap Stocks -8.1% Emerging Market Stocks 18.4% US High Yield Bonds 6.2% International Real Estate 8.1% US Small Cap Stocks -17.8% Emerging Market Stocks 9.8% International Bonds 1.8% US High Yield Bonds 2.5% US Small Cap Stocks -4.1% International Bonds 4.9% Diversified Commodities 5.8% US Small Cap Stocks -11.0% Diversified Commodities 17.6% International Bonds 4.7% US High Yield Bonds 5.4% US Large Cap Stocks -18.1% International Bonds 8.7% Diversified Commodities -1.2% Emerging Market Stocks -2.2% High Yield Bonds -4.6% US Core Bonds 2.6% US Real Estate 5.1% International Stocks -13.8% US High Yield Bonds 14.4% International Real Estate -7.1% US Core Bonds -1.6% Emerging Market Stocks -20.1% International Real Estate 6.3% US Core Bonds -2.3% International Stocks -4.9% Emerging Market Stocks -14.9% International Real Estate 1.3% US Core Bonds 3.6% Diversified Commodities -13.8% US Core Bonds 9.0% US Real Estate -7.6% International Bonds -2.1% International Real Estate -24.3% US Core Bonds 5.4% Emerging Market Stocks -2.6% Diversified Commodities -33.1% Diversified Commodities -32.9% International Stocks 1.0% International Bonds 2.6% Emerging Market Stocks -14.6% International Bonds 8.1% Diversified Commodities -23.7% Emerging Market Stocks -2.5% US Real Estate -24.5% Diversified Commodities -4.3% 8 237 Section 2|SECTION |Section 2 |Account Profile 9 238 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 December 31, 2023 10 239 Portfolio Summary –City of Cupertino #10659 As of December 31, 2023 11 240 Purchase Yield as of 12/31/23 = 2.19% 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 December 31, 2023 12 241 SECTION |Section 3 |Portfolio Holdings 13 242 Issue Name Investment Type % Portfolio Government of United States US Treasury 36.84% Federal National Mortgage Association Agency 8.76% Federal Home Loan Mortgage Corp Agency 3.77% Federal Home Loan Mortgage Corp CMO 3.73% Federal Home Loan Bank Agency 2.26% Federal Farm Credit Bank Agency 1.87% American Express ABS ABS 1.85% Royal Bank of Canada Corporate 1.64% Toyota Motor Corp Corporate 1.60% John Deere ABS ABS 1.57% JP Morgan Chase & Co Corporate 1.54% Bank of America Corp Corporate 1.53% International Finance Corp Supranational 1.53% Bank of New York Corporate 1.52% Inter-American Dev Bank Supranational 1.48% Intl Bank Recon and Development Supranational 1.45% Toronto Dominion Holdings Corporate 1.40% Hyundai Auto Receivables ABS 1.30% Northwestern Mutual Glbl Corporate 1.28% Paccar Financial Corporate 1.23% Honda ABS ABS 1.23% Toyota ABS ABS 1.16% Bank of Montreal Chicago Corporate 1.16% Amazon.com Inc Corporate 1.13% Metlife Inc Corporate 1.12% Salesforce.com Inc Corporate 1.12% Prudential Financial Inc Corporate 1.10% Air Products & Chemicals Corporate 1.09% Morgan Stanley Corporate 1.08% New York Life Global Funding Corporate 1.06% United Health Group Inc Corporate 1.05% Berkshire Hathaway Corporate 1.00% Guardian Life Global Funding Corporate 0.84% US Bancorp Corporate 0.81% Mercedes-Benz ABS 0.74% Caterpillar Inc Corporate 0.70% MasterCard Inc Corporate 0.64% Mass Mutual Insurance Corporate 0.60% Issuers City of Cupertino –Account #10659 As of December 31, 2023 14 243 Issue Name Investment Type % Portfolio Charles Schwab Corp/The Corporate 0.59% GM Financial Securitized Term Auto Trust ABS 0.56% State of California Municipal Bonds 0.48% Toyota Lease Owner Trust ABS 0.45% Northern Trust Corp Corporate 0.43% Verizon Master Trust ABS 0.37% BMW ABS ABS 0.33% GM Financial Automobile Leasing Trust ABS 0.30% Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.27% Wal-Mart Stores Corporate 0.21% Hyundai Auto Lease Securitization ABS 0.15% BMW Vehicle Lease Trust ABS 0.08% TOTAL 100.00% Issuers City of Cupertino –Account #10659 As of December 31, 2023 15 244 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 11,635.70 09/22/2020 0.38% 11,633.99 11,635.70 99.73 7.04% 11,603.98 1.55 0.01% (31.72) NR / AAA AAA 0.80 0.04 44891WAC3 Hyundai Auto Lease Trust 2022-A A3 1.160% Due 01/15/2025 225,391.76 01/11/2022 1.16% 225,386.79 225,391.12 99.35 5.93% 223,929.19 116.20 0.15% (1,461.93) Aaa / AAA NR 1.04 0.13 89238LAC4 Toyota Lease Owner Trust 2022-A A3 1.960% Due 02/20/2025 697,356.13 02/23/2022 1.98% 697,246.36 697,333.86 99.26 5.68% 692,178.96 417.64 0.45% (5,154.90) NR / AAA AAA 1.14 0.20 36265MAC9 GM Financial Auto Lease Trust 2022-1 A3 1.900% Due 03/20/2025 468,695.25 02/15/2022 1.91% 468,691.21 468,694.69 99.37 5.69% 465,733.10 272.10 0.30% (2,961.59) Aaa / NR AAA 1.22 0.17 05601XAC3 BMW Vehicle Lease Trust 2022-1 A3 1.100% Due 03/25/2025 117,001.40 01/11/2022 1.11% 116,983.91 116,999.55 99.43 6.24% 116,337.42 21.45 0.08% (662.13) NR / AAA AAA 1.23 0.11 43813GAC5 Honda Auto Receivables Trust 2021-1 A3 0.270% Due 04/21/2025 49,061.52 02/17/2021 0.27% 49,060.62 49,061.46 98.79 6.20% 48,465.82 3.68 0.03% (595.64) Aaa / NR AAA 1.31 0.20 89240BAC2 Toyota Auto Receivables Owners 2021-A A3 0.260% Due 05/15/2025 187,097.99 02/02/2021 0.27% 187,063.27 187,095.72 98.89 6.00% 185,027.00 21.62 0.12% (2,068.72) Aaa / NR AAA 1.37 0.19 44933LAC7 Hyundai Auto Receivables Trust 2021-A A3 0.380% Due 09/15/2025 148,939.13 04/20/2021 0.38% 148,923.46 148,937.23 98.59 5.75% 146,831.79 25.15 0.10% (2,105.44) NR / AAA AAA 1.71 0.26 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.880% Due 01/21/2026 320,414.02 11/16/2021 0.89% 320,346.47 320,390.25 97.04 5.75% 310,915.03 78.32 0.20% (9,475.22) Aaa / NR AAA 2.06 0.61 47789QAC4 John Deere Owner Trust 2021-B A3 0.520% Due 03/16/2026 353,397.32 07/13/2021 0.52% 353,365.80 353,386.94 97.29 5.63% 343,826.26 81.67 0.22% (9,560.68) Aaa / NR AAA 2.21 0.53 89238JAC9 Toyota Auto Receivables Trust 2021-D A3 0.710% Due 04/15/2026 304,187.35 11/09/2021 0.71% 304,180.86 304,185.10 97.03 5.67% 295,156.03 95.99 0.19% (9,029.07) NR / AAA AAA 2.29 0.60 43815BAC4 Honda Auto Receivables Trust 2022-1 A3 1.880% Due 05/15/2026 722,168.70 02/15/2022 1.89% 722,060.08 722,122.56 97.33 5.61% 702,901.95 603.41 0.46% (19,220.61) Aaa / AAA NR 2.37 0.71 44935FAD6 Hyundai Auto Receivables Trust 2021-C A3 0.740% Due 05/15/2026 918,383.73 Various 2.03% 895,162.89 909,818.85 97.28 5.70% 893,447.76 302.04 0.58% (16,371.09) NR / AAA AAA 2.37 0.55 05602RAD3 BMW Vehicle Owner Trust 2022-A A3 3.210% Due 08/25/2026 517,431.97 05/10/2022 3.23% 517,405.06 517,419.13 98.59 5.24% 510,127.90 276.83 0.33% (7,291.23) Aaa / AAA NR 2.65 0.70 362554AC1 GM Financial Securitized Term 2021-4 A3 0.680% Due 09/16/2026 252,152.27 10/13/2021 0.68% 252,145.84 252,149.99 96.65 5.81% 243,699.62 71.44 0.16% (8,450.37) Aaa / AAA NR 2.71 0.65 47787JAC2 John Deere Owner Trust 2022-A A3 2.320% Due 09/16/2026 380,268.74 03/10/2022 2.34% 380,184.62 380,227.77 97.77 5.39% 371,775.06 392.10 0.24% (8,452.71) Aaa / NR AAA 2.71 0.73 448977AD0 Hyundai Auto Receivables Trust 2022-A A3 2.220% Due 10/15/2026 980,803.64 03/09/2022 2.23% 980,765.88 980,786.75 97.72 5.40% 958,485.45 967.73 0.62% (22,301.30) NR / AAA AAA 2.79 0.72 As of December 31, 2023 16 245 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 380146AC4 GM Financial Auto Receivables 2022-1 A3 1.260% Due 11/16/2026 246,016.07 01/11/2022 1.27% 245,994.68 246,007.24 97.07 5.49% 238,810.02 129.16 0.16% (7,197.22) NR / AAA AAA 2.88 0.69 362585AC5 GM Financial Securitized ART 2022-2 A3 3.100% Due 02/16/2027 390,000.00 04/05/2022 3.13% 389,918.49 389,959.38 98.06 5.34% 382,426.59 503.75 0.25% (7,532.79) Aaa / AAA NR 3.13 0.88 47800AAC4 John Deere Owner Trust 2022-B A3 3.740% Due 02/16/2027 655,000.00 07/12/2022 3.77% 654,937.45 654,962.83 98.38 5.27% 644,405.37 1,088.76 0.42% (10,557.46) Aaa / NR AAA 3.13 1.08 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 1,536,671.82 96.73 5.07% 1,494,517.13 1,517.53 0.97% (42,154.69) Aaa / NR AAA 3.21 1.15 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 1,374,860.10 97.95 4.99% 1,346,866.13 2,071.67 0.88% (27,993.97) NR / AAA AAA 3.38 1.30 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 1,049,945.31 99.99 5.15% 1,049,918.10 2,375.33 0.68% (27.21) Aaa / NR AAA 3.46 1.30 92348KAV5 Verizon Master Trust 2022-5 A1A 3.720% Due 07/20/2027 570,000.00 08/02/2022 3.75% 569,974.92 569,987.50 99.90 4.58% 569,443.11 647.90 0.37% (544.39) NR / AAA AAA 3.55 0.62 89231FAD2 Toyota Auto Recievables Owner 2023-C A3 5.160% Due 04/17/2028 1,300,000.00 11/21/2023 5.65% 1,294,718.75 1,295,139.48 100.71 4.87% 1,309,189.70 2,981.33 0.85% 14,050.22 NR / AAA AAA 4.30 2.01 438123AC5 Honda Auto Receivables OT 2023-4 A3 5.670% Due 06/21/2028 805,000.00 Various 5.63% 806,992.67 806,911.22 102.09 3.84% 821,820.48 1,267.88 0.53% 14,909.26 Aaa / NR AAA 4.48 1.09 58769FAC9 Mercedes-Benz Auto Receivables 2023-2 A3 5.950% Due 11/15/2028 1,100,000.00 11/29/2023 3.88% 1,123,289.06 1,121,979.63 102.82 4.68% 1,131,072.80 2,908.89 0.74% 9,093.17 NR / AAA AAA 4.88 2.08 TOTAL ABS 15,690,402.69 3.07% 15,665,407.27 15,692,061.18 5.19% 15,508,911.75 19,241.12 10.09% (183,149.43) Aaa / AAA AAA 3.07 1.01 Agency 3130A1XJ2 FHLB Note 2.875% Due 06/14/2024 1,500,000.00 06/18/2019 1.96% 1,564,890.20 1,505,876.44 98.93 5.29% 1,483,933.51 2,036.46 0.97% (21,942.93) Aaa / AA+ NR 0.45 0.44 3135G0V75 FNMA Note 1.750% Due 07/02/2024 1,500,000.00 07/16/2019 1.96% 1,484,895.00 1,498,474.50 98.33 5.15% 1,474,981.50 13,052.08 0.97% (23,493.00) Aaa / AA+ AA+ 0.50 0.49 3130A2UW4 FHLB Note 2.875% Due 09/13/2024 2,000,000.00 09/13/2019 1.79% 2,103,380.00 2,014,509.47 98.60 4.93% 1,971,924.00 17,250.00 1.29% (42,585.47) Aaa / AA+ NR 0.70 0.68 3135G0W66 FNMA Note 1.625% Due 10/15/2024 1,975,000.00 Various 1.73% 1,965,802.75 1,973,508.43 97.45 4.96% 1,924,677.00 6,775.35 1.25% (48,831.43) Aaa / AA+ AA+ 0.79 0.77 3135G0X24 FNMA Note 1.625% Due 01/07/2025 1,295,000.00 Various 1.38% 1,309,953.95 1,298,162.80 96.90 4.78% 1,254,867.95 10,171.14 0.82% (43,294.85) Aaa / AA+ AA+ 1.02 0.98 3137EAEP0 FHLMC Note 1.500% Due 02/12/2025 2,365,000.00 02/13/2020 1.52% 2,363,178.95 2,364,592.88 96.54 4.72% 2,283,192.28 13,697.29 1.49% (81,400.60) Aaa / AA+ AA+ 1.12 1.08 As of December 31, 2023 17 246 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 3135G03U5 FNMA Note 0.625% Due 04/22/2025 1,860,000.00 04/22/2020 0.67% 1,856,168.40 1,858,997.99 95.08 4.54% 1,768,450.80 2,228.13 1.15% (90,547.19) Aaa / AA+ AA+ 1.31 1.27 3135G04Z3 FNMA Note 0.500% Due 06/17/2025 2,500,000.00 Various 0.50% 2,499,227.30 2,499,835.89 94.36 4.53% 2,359,087.50 486.11 1.53% (140,748.39) Aaa / AA+ AA+ 1.46 1.42 3137EAEU9 FHLMC Note 0.375% Due 07/21/2025 1,250,000.00 07/21/2020 0.48% 1,243,775.00 1,248,064.93 93.97 4.43% 1,174,660.00 2,083.33 0.76% (73,404.93) Aaa / AA+ AA+ 1.56 1.52 3135G05X7 FNMA Note 0.375% Due 08/25/2025 2,500,000.00 Various 0.48% 2,487,983.75 2,495,919.81 93.49 4.51% 2,337,292.50 3,281.25 1.52% (158,627.31) Aaa / AA+ AA+ 1.65 1.61 3137EAEX3 FHLMC Note 0.375% Due 09/23/2025 2,500,000.00 Various 0.46% 2,489,362.80 2,496,243.14 93.33 4.43% 2,333,320.00 2,552.08 1.52% (162,923.14) Aaa / AA+ AA+ 1.73 1.68 3135G06G3 FNMA Note 0.500% Due 11/07/2025 2,500,000.00 Various 0.56% 2,492,700.00 2,497,289.27 93.15 4.40% 2,328,627.50 1,875.00 1.51% (168,661.77) Aaa / AA+ AA+ 1.85 1.80 3133EPC60 FFCB Note 4.625% Due 11/15/2027 2,800,000.00 11/09/2023 4.73% 2,789,612.00 2,789,946.18 102.24 3.99% 2,862,776.00 16,547.22 1.87% 72,829.82 Aaa / AA+ AA+ 3.88 3.50 TOTAL Agency 26,545,000.00 1.44% 26,650,930.10 26,541,421.73 4.62% 25,557,790.54 92,035.44 16.66% (983,631.19) Aaa / AA+ AA+ 1.53 1.45 CMO 3137BFE98 FHLMC K041 A2 3.171% Due 10/25/2024 1,286,114.81 07/01/2021 0.72% 1,383,477.73 1,308,684.56 98.31 5.31% 1,264,339.60 3,398.56 0.82% (44,344.96) Aaa / AAA AAA 0.82 0.70 3137BLMZ8 FHLMC K049 A2 3.010% Due 07/25/2025 1,000,000.00 07/01/2021 0.87% 1,079,687.50 1,029,958.12 97.24 4.90% 972,417.33 2,508.33 0.63% (57,540.79) NR / NR AAA 1.57 1.38 3137BLW95 FHLMC K050 A2 3.334% Due 08/25/2025 950,000.00 11/16/2021 1.17% 1,018,132.81 979,149.34 97.76 4.78% 928,717.22 2,639.42 0.60% (50,432.12) NR / NR AAA 1.65 1.43 3137BM7C4 FHLMC K051 A2 3.308% Due 09/25/2025 440,000.00 03/15/2022 2.21% 453,079.69 446,306.83 97.54 4.82% 429,182.60 1,212.93 0.28% (17,124.23) NR / NR AAA 1.74 1.51 3137BN6G4 FHLMC KO53 2.995% Due 12/25/2025 570,000.00 03/15/2022 2.29% 582,001.17 576,305.40 96.85 4.74% 552,049.01 1,422.63 0.36% (24,256.39) NR / NR AAA 1.99 1.73 3137BSP72 FHLMC K058 A2 2.653% Due 08/25/2026 650,000.00 11/12/2021 1.35% 687,451.17 670,556.72 95.42 4.49% 620,209.20 1,437.04 0.40% (50,347.52) NR / NR AAA 2.65 2.46 3137FBBX3 FHLMC K068 A2 3.244% Due 08/25/2027 1,000,000.00 09/28/2022 4.41% 950,664.06 963,396.82 96.15 4.39% 961,467.00 2,703.33 0.63% (1,929.82) Aaa / NR NR 3.65 3.31 TOTAL CMO 5,896,114.81 1.75% 6,154,494.13 5,974,357.79 4.82% 5,728,381.96 15,322.24 3.73% (245,975.83) Aaa / AAA AAA 1.94 1.72 As of December 31, 2023 18 247 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 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 1,502,562.03 98.75 5.51% 1,481,220.00 2,097.92 0.96% (21,342.03) A1 / A AA- 0.45 0.44 06367TQW3 Bank of Montreal Note 0.625% Due 07/09/2024 600,000.00 02/09/2022 1.89% 582,216.00 596,155.90 97.56 5.44% 585,334.20 1,791.67 0.38% (10,821.70) A2 / A- AA- 0.52 0.51 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 1,757,735.47 97.48 5.43% 1,715,633.92 5,072.23 1.12% (42,101.55) A2 / A+ NR 0.54 0.52 78013XZU5 Royal Bank of Canada Note 2.550% Due 07/16/2024 1,500,000.00 Various 1.99% 1,533,359.18 1,504,373.40 98.47 5.45% 1,477,053.00 17,531.26 0.97% (27,320.40) A1 / A AA- 0.54 0.52 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 1,251,902.79 98.27 5.45% 1,228,391.25 12,583.33 0.81% (23,511.54) A3 / A A 0.58 0.56 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 1,681,689.13 98.71 5.62% 1,653,395.85 23,536.08 1.09% (28,293.28) A2 / A NR 0.58 0.56 69371RR40 Paccar Financial Corp Note 0.500% Due 08/09/2024 680,000.00 08/03/2021 0.52% 679,632.80 679,925.96 97.06 5.50% 660,018.20 1,341.11 0.43% (19,907.76) A1 / A+ NR 0.61 0.59 69371RQ25 Paccar Financial Corp Note 2.150% Due 08/15/2024 370,000.00 08/08/2019 2.20% 369,182.30 369,898.40 98.00 5.46% 362,599.63 3,005.22 0.24% (7,298.77) A1 / A+ NR 0.62 0.60 14913Q3B3 Caterpillar Finl Service Note 2.150% Due 11/08/2024 1,100,000.00 01/28/2020 1.92% 1,111,517.00 1,102,060.38 97.51 5.17% 1,072,601.20 3,481.81 0.70% (29,459.18) A2 / A A+ 0.86 0.83 74153WCQ0 Pricoa Global Funding Note 1.150% Due 12/06/2024 885,000.00 12/01/2021 1.19% 884,088.45 884,716.70 96.12 5.48% 850,667.31 706.77 0.55% (34,049.39) Aa3 / AA- AA- 0.93 0.90 89114TZL9 Toronto-Dominion Bank Note 1.450% Due 01/10/2025 700,000.00 03/15/2022 2.79% 674,737.00 690,802.31 96.37 5.13% 674,577.40 4,821.25 0.44% (16,224.91) A1 / A NR 1.03 0.99 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 1,214,438.48 96.50 4.96% 1,172,515.10 8,221.50 0.77% (41,923.38) A1 / A+ A+ 1.04 1.00 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 1,679,372.58 96.30 5.16% 1,617,905.52 11,300.33 1.06% (61,467.06) Aaa / AA+ AAA 1.04 1.00 69371RR73 Paccar Financial Corp Note 2.850% Due 04/07/2025 885,000.00 03/31/2022 2.86% 884,769.90 884,903.01 97.72 4.72% 864,823.77 5,885.25 0.57% (20,079.24) A1 / A+ NR 1.27 1.22 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 1,049,833.75 97.96 5.02% 1,028,629.35 7,579.69 0.67% (21,204.40) A1 / A AA- 1.29 1.23 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 1,369,915.92 97.68 5.19% 1,338,181.75 8,414.08 0.87% (31,734.17) A1 / A AA- 1.32 1.26 As of December 31, 2023 19 248 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 06367WB85 Bank of Montreal Note 1.850% Due 05/01/2025 1,240,000.00 07/23/2021 0.85% 1,285,656.80 1,256,149.35 95.88 5.09% 1,188,856.20 3,823.33 0.77% (67,293.15) A2 / A- AA- 1.33 1.29 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 1,370,246.01 97.86 6.00% 1,340,665.56 940.73 0.87% (29,580.45) A1 / A- AA- 1.42 1.28 46647PCK0 JP Morgan Chase & Co Callable Note Cont 6/23/2024 0.969% Due 06/23/2025 655,000.00 Various 0.95% 655,406.85 655,064.65 97.66 5.97% 639,684.14 141.05 0.42% (15,380.51) A1 / A- AA- 1.48 0.47 66815L2J7 Northwestern Mutual Glbl Note 4.000% Due 07/01/2025 1,170,000.00 06/27/2022 4.01% 1,169,602.20 1,169,801.46 99.09 4.64% 1,159,310.88 23,400.00 0.77% (10,490.58) Aaa / AA+ AAA 1.50 1.41 74153WCM9 Pricoa Global Funding Note 0.800% Due 09/01/2025 904,000.00 04/06/2022 3.26% 832,972.72 869,172.61 93.35 5.01% 843,855.07 2,410.67 0.55% (25,317.54) Aa3 / AA- AA- 1.67 1.61 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 1,012,667.41 98.24 4.93% 982,411.00 4,718.06 0.64% (30,256.41) A1 / A AA- 1.88 1.78 40139LBC6 Guardian Life Glob Fun Note 0.875% Due 12/10/2025 1,400,000.00 Various 1.12% 1,385,860.00 1,393,435.82 92.52 4.96% 1,295,336.00 714.58 0.84% (98,099.82) Aa1 / AA+ NR 1.95 1.88 66815L2A6 Northwestern Mutual Glbl Note 0.800% Due 01/14/2026 850,000.00 12/06/2021 1.47% 827,449.50 838,800.02 92.46 4.73% 785,881.95 3,154.44 0.51% (52,918.07) Aaa / AA+ AAA 2.04 1.97 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% 620,988.00 606,316.48 96.09 5.66% 576,549.60 4,634.50 0.38% (29,766.88) A1 / A- AA- 2.12 1.07 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% 415,969.33 405,996.76 95.78 5.45% 384,097.45 1,600.96 0.25% (21,899.31) A1 / A- AA- 2.31 1.26 6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025 2.188% Due 04/28/2026 650,000.00 05/23/2022 4.95% 615,699.50 629,716.30 96.07 5.29% 624,425.75 2,488.85 0.41% (5,290.55) A1 / A- A+ 2.33 1.28 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 1,871,176.23 92.38 4.43% 1,732,050.00 2,552.08 1.13% (139,126.23) A1 / AA AA- 2.36 2.29 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1.150% Due 05/15/2026 1,035,000.00 Various 1.38% 1,025,051.35 1,029,644.09 92.57 4.49% 958,122.27 1,520.88 0.62% (71,521.82) A2 / A+ A 2.37 2.29 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 1,384,699.97 92.34 4.44% 1,278,902.08 562.66 0.83% (105,797.89) A1 / A+ A+ 2.47 2.38 As of December 31, 2023 20 249 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 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% 701,274.00 700,476.64 94.11 5.54% 658,791.70 307.77 0.43% (41,684.94) A1 / A- AA- 2.47 1.42 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 1,001,156.16 91.29 4.89% 912,891.00 5,500.00 0.60% (88,265.16) Aa3 / AA+ AA+ 2.54 2.43 58989V2D5 Met Tower Global Funding Note 1.250% Due 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,617.09 90.96 4.86% 700,395.08 2,860.76 0.46% (69,222.01) Aa3 / AA- AA- 2.71 2.59 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026 1.050% Due 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,641.36 91.88 4.25% 321,582.10 1,061.67 0.21% (28,059.26) Aa2 / AA AA 2.72 2.61 61690U7W4 Morgan Stanley Bank NA Callable Note Cont 9/30/2026 5.882% Due 10/30/2026 1,000,000.00 Various 5.88% 1,000,082.50 1,000,077.97 102.82 4.77% 1,028,226.00 9,803.34 0.67% 28,148.03 Aa3 / A+ AA- 2.83 2.50 59217GER6 Metlife Note 1.875% Due 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,230.10 91.31 5.00% 1,018,145.53 9,872.40 0.67% (96,084.57) Aa3 / AA- AA- 3.03 2.85 808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027 2.450% Due 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,827.01 93.09 4.83% 893,640.00 7,709.34 0.59% (66,187.01) A2 / A- A 3.17 2.97 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 1,614,803.56 94.58 4.12% 1,527,462.16 10,937.14 1.00% (87,341.40) Aa2 / AA A+ 3.21 3.02 06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026 3.559% Due 04/23/2027 1,150,000.00 Various 4.93% 1,114,222.54 1,124,875.24 96.24 5.30% 1,106,815.20 7,730.94 0.72% (18,060.04) A1 / A- AA- 3.31 2.17 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027 4.000% Due 05/10/2027 670,000.00 05/05/2022 4.04% 668,914.60 669,271.84 98.65 4.44% 660,933.56 3,796.67 0.43% (8,338.28) A2 / A+ A+ 3.36 3.09 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% 675,316.70 675,213.92 97.93 4.37% 661,007.93 3,191.25 0.43% (14,205.99) A2 / A+ A 3.37 3.12 57636QAW4 MasterCard Inc Callable Note Cont 2/9/28 4.875% Due 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,232.86 103.07 4.05% 974,035.13 14,332.50 0.64% 29,802.27 Aa3 / A+ NR 4.19 3.65 TOTAL Corporate 43,705,000.00 2.17% 43,741,683.22 43,636,597.12 5.05% 42,037,620.79 247,136.07 27.47% (1,598,976.33) A1 / A+ AA- 1.76 1.57 As of December 31, 2023 21 250 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 Money Market Fund 94975H270 Wells Fargo 100% Treasury Money Mkt Fund 416,194.51 Various 4.94% 416,194.51 416,194.51 1.00 4.94% 416,194.51 0.00 0.27% 0.00 Aaa / AAA NR 0.00 0.00 TOTAL Money Market Fund 416,194.51 4.94% 416,194.51 416,194.51 4.94% 416,194.51 0.00 0.27% 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% 772,342.35 757,634.04 98.08 5.03% 740,533.45 4,530.00 0.48% (17,100.59) Aa2 / AA- AA 0.75 0.73 TOTAL Municipal Bonds 755,000.00 1.91% 772,342.35 757,634.04 5.03% 740,533.45 4,530.00 0.48% (17,100.59) Aa2 / AA- AA 0.75 0.73 Supranational 45950KCT5 International Finance Corp Note 0.375% Due 07/16/2025 2,500,000.00 05/27/2021 0.66% 2,471,150.00 2,489,233.93 93.88 4.53% 2,346,965.00 4,296.88 1.53% (142,268.93) Aaa / AAA NR 1.54 1.50 459058JL8 Intl. Bank Recon & Development Note 0.500% Due 10/28/2025 2,400,000.00 Various 0.60% 2,388,859.25 2,395,678.23 93.19 4.42% 2,236,651.20 2,100.01 1.45% (159,027.03) Aaa / AAA AAA 1.83 1.78 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 2,454,817.03 92.71 4.23% 2,280,697.98 4,245.21 1.48% (174,119.05) Aaa / AAA AAA 2.30 2.23 TOTAL Supranational 7,360,000.00 0.74% 7,308,742.45 7,339,729.19 4.40% 6,864,314.18 10,642.10 4.47% (475,415.01) Aaa / AAA AAA 1.89 1.83 US Treasury 912828X70 US Treasury Note 2.000% Due 04/30/2024 1,700,000.00 06/10/2019 1.92% 1,705,976.56 1,700,401.79 98.95 5.19% 1,682,202.70 5,791.21 1.10% (18,199.09) Aaa / AA+ AA+ 0.33 0.33 912828XX3 US Treasury Note 2.000% Due 06/30/2024 2,000,000.00 Various 1.80% 2,018,574.22 2,001,904.29 98.44 5.20% 1,968,828.00 109.89 1.28% (33,076.29) Aaa / AA+ AA+ 0.50 0.49 912797GB7 US Treasury Bill 5.119% Due 07/11/2024 1,000,000.00 07/27/2023 5.39% 950,378.99 972,701.34 97.27 5.39% 972,701.34 0.00 0.63% 0.00 P-1 / A-1+ F-1+ 0.53 0.51 912797GK7 US Treasury Bill 5.119% Due 08/08/2024 1,000,000.00 08/30/2023 5.39% 951,232.07 968,720.28 96.87 5.39% 968,720.28 0.00 0.63% 0.00 P-1 / A-1+ F-1+ 0.61 0.59 912828D56 US Treasury Note 2.375% Due 08/15/2024 1,700,000.00 09/18/2019 1.71% 1,753,191.41 1,706,737.97 98.37 5.06% 1,672,242.40 15,250.34 1.10% (34,495.57) Aaa / AA+ AA+ 0.62 0.60 912797GL5 US Treasury Bill 5.162% Due 09/05/2024 1,000,000.00 09/25/2023 5.44% 950,526.04 964,436.11 96.44 5.44% 964,436.11 0.00 0.63% 0.00 P-1 / A-1+ F-1+ 0.68 0.66 As of December 31, 2023 22 251 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 912828YY0 US Treasury Note 1.750% Due 12/31/2024 2,100,000.00 03/15/2022 1.97% 2,087,203.13 2,095,425.21 97.05 4.81% 2,038,020.60 100.96 1.32% (57,404.61) Aaa / AA+ AA+ 1.00 0.97 912828ZC7 US Treasury Note 1.125% Due 02/28/2025 1,500,000.00 03/18/2020 0.81% 1,523,144.53 1,505,430.70 96.05 4.65% 1,440,762.00 5,702.27 0.94% (64,668.70) Aaa / AA+ AA+ 1.16 1.13 91282CED9 US Treasury Note 1.750% Due 03/15/2025 3,100,000.00 Various 2.23% 3,057,617.20 3,082,742.28 96.63 4.65% 2,995,495.90 16,096.16 1.96% (87,246.38) Aaa / AA+ AA+ 1.21 1.17 912828ZL7 US Treasury Note 0.375% Due 04/30/2025 2,500,000.00 03/21/2022 2.24% 2,360,839.85 2,440,535.09 94.63 4.57% 2,365,820.00 1,596.84 1.54% (74,715.09) Aaa / AA+ AA+ 1.33 1.30 91282CAB7 US Treasury Note 0.250% Due 07/31/2025 1,500,000.00 03/12/2021 0.72% 1,469,765.63 1,489,089.91 93.65 4.44% 1,404,784.50 1,569.29 0.91% (84,305.41) Aaa / AA+ AA+ 1.58 1.55 91282CAM3 US Treasury Note 0.250% Due 09/30/2025 2,400,000.00 Various 0.56% 2,366,140.63 2,387,071.18 93.13 4.38% 2,235,000.00 1,524.59 1.45% (152,071.18) Aaa / AA+ AA+ 1.75 1.71 91282CAT8 US Treasury Note 0.250% Due 10/31/2025 2,450,000.00 Various 0.49% 2,422,492.19 2,439,451.51 92.89 4.33% 2,275,724.15 1,043.27 1.48% (163,727.36) Aaa / AA+ AA+ 1.84 1.79 91282CAZ4 US Treasury Note 0.375% Due 11/30/2025 2,250,000.00 03/26/2021 0.77% 2,209,658.20 2,233,480.42 92.86 4.30% 2,089,424.25 737.70 1.36% (144,056.17) Aaa / AA+ AA+ 1.92 1.87 91282CBH3 US Treasury Note 0.375% Due 01/31/2026 2,500,000.00 05/27/2021 0.75% 2,456,445.31 2,480,605.55 92.39 4.23% 2,309,765.00 3,923.23 1.50% (170,840.55) Aaa / AA+ AA+ 2.09 2.03 91282CBW0 US Treasury Note 0.750% Due 04/30/2026 2,500,000.00 05/27/2021 0.80% 2,493,652.34 2,496,999.16 92.52 4.15% 2,312,890.00 3,193.68 1.50% (184,109.16) Aaa / AA+ AA+ 2.33 2.27 91282CCZ2 US Treasury Note 0.875% Due 09/30/2026 1,400,000.00 10/18/2021 1.19% 1,379,054.68 1,388,374.01 91.85 4.04% 1,285,867.80 3,112.70 0.84% (102,506.21) Aaa / AA+ AA+ 2.75 2.66 91282CDG3 US Treasury Note 1.125% Due 10/31/2026 1,400,000.00 11/15/2021 1.25% 1,391,468.75 1,395,123.65 92.28 4.04% 1,291,882.20 2,682.69 0.84% (103,241.45) Aaa / AA+ AA+ 2.84 2.73 91282CJP7 US Treasury Note 4.375% Due 12/15/2026 2,500,000.00 12/28/2023 4.01% 2,525,097.66 2,525,028.07 100.98 4.02% 2,524,415.00 5,080.26 1.64% (613.07) Aaa / AA+ AA+ 2.96 2.75 91282CEW7 US Treasury Note 3.250% Due 06/30/2027 3,250,000.00 Various 3.18% 3,260,312.50 3,257,022.60 97.72 3.95% 3,175,987.75 290.18 2.06% (81,034.85) Aaa / AA+ AA+ 3.50 3.27 91282CFB2 US Treasury Note 2.750% Due 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 395,084.25 95.99 3.96% 383,968.80 4,603.26 0.25% (11,115.45) Aaa / AA+ AA+ 3.58 3.33 91282CFH9 US Treasury Note 3.125% Due 08/31/2027 4,500,000.00 Various 3.28% 4,468,902.34 4,477,091.94 97.19 3.96% 4,373,437.50 47,518.89 2.87% (103,654.44) Aaa / AA+ AA+ 3.67 3.39 91282CFM8 US Treasury Note 4.125% Due 09/30/2027 3,450,000.00 Various 4.31% 3,421,152.34 3,428,035.91 100.63 3.94% 3,471,831.60 36,161.38 2.28% 43,795.69 Aaa / AA+ AA+ 3.75 3.41 91282CFZ9 US Treasury Note 3.875% Due 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 852,085.59 99.79 3.93% 848,207.35 2,879.78 0.55% (3,878.24) Aaa / AA+ AA+ 3.92 3.59 As of December 31, 2023 23 252 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 91282CGC9 US Treasury Note 3.875% Due 12/31/2027 2,750,000.00 Various 3.67% 2,775,107.42 2,770,387.62 99.84 3.92% 2,745,487.25 292.75 1.78% (24,900.37) Aaa / AA+ AA+ 4.00 3.67 91282CGH8 US Treasury Note 3.500% Due 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,965,496.79 98.42 3.92% 2,952,657.00 43,940.22 1.95% (12,839.79) Aaa / AA+ AA+ 4.09 3.71 91282CGP0 US Treasury Note 4.000% Due 02/29/2028 3,700,000.00 Various 4.00% 3,699,113.28 3,699,372.65 100.33 3.91% 3,712,139.70 50,010.99 2.44% 12,767.05 Aaa / AA+ AA+ 4.17 3.76 TOTAL US Treasury 58,400,000.00 2.52% 57,900,851.96 58,118,835.87 4.33% 56,462,699.18 253,212.53 36.84% (1,656,136.69) Aaa / AA+ AA+ 2.44 2.28 TOTAL PORTFOLIO 158,767,712.01 2.19% 158,610,645.99 158,476,831.43 4.69% 153,316,446.36 642,119.50 100.00% (5,160,385.07) Aa1 / AA AA+ 2.10 1.76 TOTAL MARKET VALUE PLUS ACCRUALS 153,958,565.86 As of December 31, 2023 24 253 SECTION |Section 4 |Transactions 25 254 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 11/01/2023 61690U7W4 725,000.00 Morgan Stanley Bank NA Callable Note Cont 9/30/2026 5.882% Due: 10/30/2026 100.000 5.88%725,000.00 0.00 725,000.00 0.00 Purchase 11/02/2023 61690U7W4 275,000.00 Morgan Stanley Bank NA Callable Note Cont 9/30/2026 5.882% Due: 10/30/2026 100.030 5.87%275,082.50 44.93 275,127.43 0.00 Purchase 11/08/2023 438123AC5 340,000.00 Honda Auto Receivables OT 2023-4 A3 5.67% Due: 06/21/2028 99.982 5.74%339,940.13 0.00 339,940.13 0.00 Purchase 11/08/2023 438123AC5 465,000.00 Honda Auto Receivables OT 2023-4 A3 5.67% Due: 06/21/2028 100.441 5.55%467,052.54 0.00 467,052.54 0.00 Purchase 11/15/2023 3133EPC60 2,800,000.00 FFCB Note 4.625% Due: 11/15/2027 99.629 4.73%2,789,612.00 0.00 2,789,612.00 0.00 Purchase 11/24/2023 89231FAD2 1,300,000.00 Toyota Auto Recievables Owner 2023-C A3 5.16% Due: 04/17/2028 99.594 5.65%1,294,718.75 1,677.00 1,296,395.75 0.00 Purchase 12/04/2023 58769FAC9 1,100,000.00 Mercedes-Benz Auto Receivables 2023-2 A3 5.95% Due: 11/15/2028 102.117 3.88%1,123,289.06 3,454.31 1,126,743.37 0.00 Purchase 12/29/2023 91282CJP7 2,500,000.00 US Treasury Note 4.375% Due: 12/15/2026 101.004 4.01%2,525,097.66 4,183.74 2,529,281.40 0.00 Subtotal 9,505,000.00 9,539,792.64 9,359.98 9,549,152.62 0.00 TOTAL ACQUISITIONS 9,505,000.00 9,539,792.64 9,359.98 9,549,152.62 0.00 DISPOSITIONS Maturity 11/02/2023 912796YT0 1,500,000.00 US Treasury Bill 4.888% Due: 11/02/2023 100.000 1,500,000.00 0.00 1,500,000.00 0.00 Maturity 11/15/2023 4581X0DP0 2,800,000.00 Inter-American Dev Bank Note 0.25% Due: 11/15/2023 100.000 2,800,000.00 0.00 2,800,000.00 0.00 September 30, 2023 through December 31, 2023 As of December 31, 2023 26 255 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 Maturity 12/04/2023 3137EAFA2 855,000.00 FHLMC Note 0.25% Due: 12/04/2023 100.000 855,000.00 0.00 855,000.00 0.00 Maturity 12/28/2023 912796ZN2 1,500,000.00 US Treasury Bill 5.228% Due: 12/28/2023 100.000 1,500,000.00 0.00 1,500,000.00 0.00 Subtotal 6,655,000.00 6,655,000.00 0.00 6,655,000.00 0.00 TOTAL DISPOSITIONS 6,655,000.00 6,655,000.00 0.00 6,655,000.00 0.00 September 30, 2023 through December 31, 2023 As of December 31, 2023 27 256 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. 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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 December 31, 2023 28 257 Asset Class 10-Year Snapshot Disclosure As of December 31, 2023 US Small Cap Stocks – Morgan Stanley Capital International (MSCI) Small Cap 1750 – The MSCI Small Cap 1750 is a market capitalization weighted index that measures the performance of small capitalization U.S. stocks. US Mid Cap Stocks – Morgan Stanley Capital International (MSCI) Mid Cap 450 – The MSCI Mid Cap 450 is a market capitalization weighted index that measures the performance of mid-capitalization U.S. stocks. US Large Cap Stocks – Standard & Poor’s 500 – The S&P 500 is a market value weighted index of 500 large capitalization stocks. The 500 companies included in the index capture approximately 80% of available U.S. market capitalization. International Stocks – Morgan Stanley Capital International (MSCI) EAFE – The MSCI EAFE International Equity Index is a market capitalization weighted index that captures international equity performance of large and mid-cap stocks in the developed stock markets of Europe, Australasia, and the Far East. Emerging Market Stocks – Morgan Stanley Capital International (MSCI) Emerging Markets – The MSCI Emerging Markets Index is a market capitalization weighted index that captures equity performance of large and mid-cap stocks across emerging market countries. U.S. Real Estate – Morgan Stanley Capital International (MSCI) REIT – The MSCI US REIT Index is a free float-adjusted market capitalization index that is comprised of equity REITs. It represents about 99% of the US REIT universe and securities are classified in the REIT sector according to the Global Industry Classification Standard (GICS®). It excludes Mortgage REITs and selected Specialized REITs. International Real Estate – S&P Developed Ex-US Property – The S&P Developed Ex-US Property Index is a market capitalization weighted index that captures the performance of a universe of publicly traded property companies based in developing countries outside of the US. The companies included are engaged in real estate related activities, such as property ownership, management, development, rental and investment. US Core Bonds – ICE BofA US Corporate, Government, Mortgage – The ICE BofA US Corporate, Government, Mortgage index is a broad measure of US investment grade bond performance, including US Treasuries, agencies, investment-grade corporates and mortgage securities. US High Yield Bonds – ICE BofA US High Yield – The ICE BofA High Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. International Bonds – Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD – Index from 2/1/2013 – current. This index measures the performance 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. S&P Citigroup International Govt Bond – Index from 1/1/2009 – 1/31/2013. This index measures the performance of sovereign bonds of non-U.S. developed countries. Diversified Commodities – S&P GSCI Commodity Index – The S&P GSCI Commodity Index is a world production-weighted measure of general commodity price movements and inflation in the world economy. It consists of a basket of physical commodity futures contracts. Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits the use of 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 representation, 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 is at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend Chandler, or any of its products or services. Bloomberg® and Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the index (collectively, "Bloomberg") and have been licensed for use for certain purposes by Chandler Asset Management Inc. Bloomberg is not affiliated with Chandler Asset Management Inc., and Bloomberg does not approve, endorse, review, or recommend this product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to this product. Morgan Stanley Capital International® (MSCI), the MSCI indices are service marks of Morgan Stanley Capital International and its affiliates, and have been licensed for use for certain purposes by Chandler Asset Management Inc. MSCI is not affiliated with Chandler Asset Management Inc., and MSCI does not approve, endorse, review, or recommend these products. MSCI does not guarantee the timeliness, accurateness, or completeness of any data or information relating to these products. Disclosure: This report is provided for informational purposes only and should not be construed as 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. 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 judgement. All investments contain risk and may lose value. Fixed income investments are subject to interest rate, 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. International: Non-US markets may be more volatile due to a variety of factors including less liquidity, transparency and oversight of companies and assets. Values of non-US investments may fluctuate due to changes in currency exchange rates. Non-US companies are also subject to risks that come with political and economic stability that may affect their respective countries. These risks may be greater in emerging market countries. Equities: Investments on equities are subject to risks from stock market fluctuations that occur in response to economic and business developments. 29 258 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 December 31, 2023 30 259 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 DECEMBER 1, 2023 THROUGH DECEMBER 31, 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 36423 SE 260 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. 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. 261 TABLE OF CONTENTS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE REPORT NAME NUMBER_________________ ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 20 STATEMENT OF TRANSACTIONS ...................................................................... 21 262 PAGE 1 ASSET SUMMARY CITY OF CUPERTINO AS OF DECEMBER 31, 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 3,123,862.86 3,185,335.76 2.08 61,472.90 168,466 5.29 3,090.01 BONDS AND NOTES 155,342,314.38 149,994,556.45 97.92 5,347,757.93- 3,270,762 2.18 786,651.51 ===================================================================================================================================== TOTAL INVESTMENTS 158,466,177.24 153,179,892.21 100.00 5,286,285.03- 3,439,229 2.25 789,741.52 TOTAL ACCRUALS 789,741.52 789,741.52 ===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 159,255,918.76 153,969,633.73 5,286,285.03- 3,439,229 2.25 789,741.52 263 PAGE 2 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ PRINCIPAL CASH 4,183.74 4,183.74 0.00 INCOME CASH 4,183.74-4,183.74- 0.00 CASH EQUIVALENTS______________________________________________________________________________________________________________________________________ 221,366.34 ALLSPRING 100% TREASURY 221,366.34 221,366.34 0.14 0.00 2,968.11 MONEY MARKET FUND - #008 1.0000 1.0000 50,359.42 PRINCIPAL PUBLIC DEPOSIT SWEEP 50,359.42 50,359.42 0.03 0.00 121.90 PROGRAM 1.0000 1.0000 1,000,000 UNITED STATES TREASURY BILLS 950,378.99 974,870.00 0.64 24,491.01 0.00 DTD 07/13/2023 DUE 07/11/2024 95.0379 97.4870 CUSIP 912797GB7 1,000,000 UNITED STATES TREASURY BILLS 951,232.07 971,230.00 0.63 19,997.93 0.00 DTD 08/10/2023 DUE 08/08/2024 95.1232 97.1230 CUSIP 912797GK7 1,000,000 UNITED STATES TREASURY BILLS 950,526.04 967,510.00 0.63 16,983.96 0.00 DTD 09/07/2023 DUE 09/05/2024 95.0526 96.7510 CUSIP 912797GL5 ====================================================================================================================================== TOTAL CASH EQUIVALENTS 3,123,862.86 3,185,335.76 2.08 61,472.90 3,090.01 BOND & NOTES______________________________________________________________________________________________________________________________________ 1,675,000 AIR PRODUCTS & CHEMICALS 1,771,212.00 1,653,392.50 1.08 117,819.50- 23,536.08 DTD 07/31/14 3.350 07/31/2024 105.7440 98.7100 MOODY'S RATING A2 CUSIP 009158AV8 1,875,000 AMAZON.COM INC 1,866,900.00 1,732,050.00 1.13 134,850.00- 2,552.08 DTD 05/12/21 1.000 05/12/2026 99.5680 92.3760 MOODY'S RATING A1 CUSIP 023135BX3 264 PAGE 3 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,346,867.50 0.88 27,828.35- 2,071.67 ASSET BCKD SEC SER 2022-2 CL A 99.9779 97.9540 DTD 05/24/2022 3.390% 05/17/2027 NON CALLABLE CUSIP 02582JJT8 1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,494,509.40 0.98 29,850.37- 1,517.53 ASSET BCKD SEC SER 2022-1 CL A 98.6641 96.7320 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 1,106,817.50 0.72 7,405.04- 7,730.94 MED TERM NOTE 96.8889 96.2450 DTD 04/23/19 04/23/2027 MOODY'S RATING A1 CUSIP 06051GHT9 600,000 BANK OF AMERICA CORP 620,988.00 576,552.00 0.38 44,436.00- 4,634.50 MED TERM NOTE 103.4980 96.0920 DTD 02/13/20 02/13/2026 MOODY'S RATING A1 CUSIP 06051GHY8 700,000 BANK OF AMERICA CORP 701,274.00 658,791.00 0.43 42,483.00-307.77 MED TERM NOTE 100.1820 94.1130 DTD 06/19/20 06/19/2026 MOODY'S RATING A1 CUSIP 06051GJD2 600,000 BANK OF MONTREAL 582,216.00 585,336.00 0.38 3,120.00 1,791.67 MED TERM NOTE 97.0360 97.5560 DTD 07/09/21 0.625 07/09/2024 MOODY'S RATING A2 CUSIP 06367TQW3 265 PAGE 4 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 1,188,862.40 0.78 96,794.40- 3,823.33 MED TERM NOTE 103.6820 95.8760 DTD 04/27/20 1.850 05/01/2025 MOODY'S RATING A2 CUSIP 06367WB85 1,000,000 BANK OF NEW YORK MELLON 1,024,910.00 982,410.00 0.64 42,500.00- 4,718.06 MED TERM NOTE 102.4910 98.2410 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 1,338,188.60 0.87 31,619.60- 8,414.08 DTD 04/26/2022 3.350% 04/25/2025 99.9860 97.6780 CALLABLE MOODY'S RATING A1 CUSIP 06406RBC0 1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,527,467.00 1.00 87,226.15- 10,937.14 DTD 03/15/2022 2.300% 03/15/2027 99.9810 94.5800 CALLABLE MOODY'S RATING AA2 CUSIP 084664CZ2 117,001.4 BMW VEHICLE LEASE TRUST 116,983.91 116,338.00 0.08 645.91-21.45 SER 2022-1 CL A3 *0 DAY DELAY*99.9851 99.4330 DTD 01/19/22 1.100 03/25/2025 CUSIP 05601XAC3 517,431.97 BMW VEHICLE OWNER TRUST 517,405.06 510,125.83 0.33 7,279.23-276.83 ASSET BCKD SEC SER 2022-A CL A3 99.9948 98.5880 DTD 05/18/2022 3.210% 08/25/2026 CALLABLE MOODY'S RATING AAA CUSIP 05602RAD3 755,000 CALIFORNIA ST 772,342.35 740,534.20 0.48 31,808.15- 4,530.00 TXBL-REF 102.2970 98.0840 DTD 10/24/19 2.400 10/01/2024 MOODY'S RATING AA2 CUSIP 13063DRK6 266 PAGE 5 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,100,000 CATERPILLAR FINL SERVICE 1,111,517.00 1,072,599.00 0.70 38,918.00- 3,481.81 MED TERM NOTE 101.0470 97.5090 DTD 11/08/19 2.150 11/08/2024 MOODY'S RATING A2 CUSIP 14913Q3B3 960,000 CHARLES SCHWAB CORP 959,729.90 893,644.80 0.58 66,085.10- 7,709.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 93.0880 CALLABLE MOODY'S RATING A2 CUSIP 808513BY0 1,500,000 FED HOME LN BK 1,564,890.20 1,483,935.00 0.97 80,955.20- 2,036.46 DTD 05/08/14 2.875 06/14/2024 104.3260 98.9290 MOODY'S RATING AAA CUSIP 3130A1XJ2 2,000,000 FED HOME LN BK 2,103,380.00 1,971,920.00 1.29 131,460.00- 17,250.00 DTD 08/15/14 2.875 09/13/2024 105.1690 98.5960 MOODY'S RATING AAA CUSIP 3130A2UW4 1,286,114.81 FED HOME LN MTG CORP 1,383,477.73 1,264,340.89 0.83 119,136.84- 3,398.56 SER KO41 CL A2 *24 DAY DELAY*107.5703 98.3070 DTD 12/01/14 3.171 10/25/2024 CUSIP 3137BFE98 2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,283,194.65 1.49 79,984.30- 13,697.29 DTD 02/14/20 1.500 02/12/2025 99.9230 96.5410 MOODY'S RATING AAA CUSIP 3137EAEP0 1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,174,662.50 0.77 69,112.50- 2,083.33 SER USD 99.5020 93.9730 DTD 07/23/20 0.375 07/21/2025 MOODY'S RATING AAA CUSIP 3137EAEU9 267 PAGE 6 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 HOME LN MTG CORP 2,489,362.80 2,333,325.00 1.52 156,037.80- 2,552.08 DTD 09/25/20 0.375 09/23/2025 99.5745 93.3330 MOODY'S RATING AAA CUSIP 3137EAEX3 1,500,000 FED NATL MTG ASSN 1,484,895.00 1,474,980.00 0.96 9,915.00- 13,052.08 DTD 07/08/19 1.750 07/02/2024 98.9930 98.3320 MOODY'S RATING AAA CUSIP 3135G0V75 1,975,000 FED NATL MTG ASSN 1,965,802.75 1,924,677.00 1.26 41,125.75- 6,775.35 DTD 10/18/19 1.625 10/15/2024 99.5343 97.4520 MOODY'S RATING AAA CUSIP 3135G0W66 1,295,000 FED NATL MTG ASSN 1,309,953.95 1,254,867.95 0.82 55,086.00- 10,171.15 DTD 01/10/20 1.625 01/07/2025 101.1548 96.9010 MOODY'S RATING AAA CUSIP 3135G0X24 1,860,000 FED NATL MTG ASSN 1,856,168.40 1,768,450.80 1.15 87,717.60- 2,228.13 DTD 04/24/20 0.625 04/22/2025 99.7940 95.0780 MOODY'S RATING AAA CUSIP 3135G03U5 2,500,000 FED NATL MTG ASSN 2,499,227.30 2,359,100.00 1.54 140,127.30-486.11 DTD 06/19/20 0.500 06/17/2025 99.9691 94.3640 MOODY'S RATING AAA CUSIP 3135G04Z3 2,500,000 FED NATL MTG ASSN 2,487,983.75 2,337,300.00 1.53 150,683.75- 3,281.25 DTD 08/27/20 0.375 08/25/2025 99.5194 93.4920 MOODY'S RATING AAA CUSIP 3135G05X7 2,500,000 FED NATL MTG ASSN 2,492,700.00 2,328,625.00 1.52 164,075.00- 1,875.00 DTD 11/12/20 0.500 11/07/2025 99.7080 93.1450 MOODY'S RATING AAA CUSIP 3135G06G3 268 PAGE 7 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 FEDERAL FARM CREDIT BANK 2,789,612.00 2,862,776.00 1.87 73,164.00 16,547.22 DTD 11/15/2023 4.625% 11/15/2027 99.6290 102.2420 NON CALLABLE MOODY'S RATING AAA CUSIP 3133EPC60 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,079,687.50 972,420.00 0.63 107,267.50- 2,508.33 SER K049 CL A2 *24 DAY DELAY*107.9688 97.2420 DTD 10/01/15 3.010 08/25/2025 CUSIP 3137BLMZ8 950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 928,720.00 0.61 89,412.81- 2,639.42 SER K050 CL A2 *24 DAY DELAY*107.1719 97.7600 DTD 11/01/15 08/25/2025 CUSIP 3137BLW95 440,000 FHLMC MULTIFAMILY STRUCTURED P 453,079.69 429,180.40 0.28 23,899.29- 1,212.93 SER K051 CL A2 *24 DAY DELAY*102.9727 97.5410 DTD 12/01/15 3.308 09/25/2025 CUSIP 3137BM7C4 570,000 FHLMC MULTIFAMILY STRUCTURED P 582,001.17 552,050.70 0.36 29,950.47- 1,422.63 SER K053 CL A2 *24 DAY DELAY*102.1055 96.8510 DTD 03/01/16 2.995 12/25/2025 CUSIP 3137BN6G4 650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 620,210.50 0.40 67,240.67- 1,437.04 SER K058 CL A2 *24 DAY DELAY*105.7617 95.4170 DTD 11/01/16 2.653 08/25/2026 CUSIP 3137BSP72 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 961,470.00 0.63 10,805.94 2,703.33 SER K068 CL A2 *24 DAY DELAY*95.0664 96.1470 DTD 10/01/17 3.244 08/25/2027 MOODY'S RATING AAA CUSIP 3137FBBX3 269 PAGE 8 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 468,695.25 GM FINANCIAL AUTOMOBILE LEASIN 468,691.21 465,733.10 0.30 2,958.11-264.94 SER 2022-1 CL A3 *0 DAY DELAY*99.9992 99.3680 DTD 02/23/22 1.850 03/20/2025 MOODY'S RATING AAA CUSIP 36265MAC9 252,152.27 GM FINANCIAL SECURITIZED TERM 252,145.84 243,700.13 0.16 8,445.71-71.44 SER 2021-4 CL A3 *0 DAY DELAY*99.9975 96.6480 DTD 10/21/21 0.680 09/16/2026 MOODY'S RATING AAA CUSIP 362554AC1 390,000 GM FINANCIAL SECURITIZED TERM 389,918.49 382,426.20 0.25 7,492.29-503.75 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 98.0580 DTD 04/13/2022 3.100% 02/16/2027 CALLABLE MOODY'S RATING AAA CUSIP 362585AC5 246,016.07 GM FINANCIAL SECURITIZED TERM 245,994.68 238,810.26 0.16 7,184.42-129.16 SER 2022-1 CL A3 *0 DAY DELAY*99.9913 97.0710 DTD 01/19/22 1.260 11/16/2026 CUSIP 380146AC4 1,400,000 GUARDIAN LIFE GLOB FUND 1,385,860.00 1,295,336.00 0.85 90,524.00-714.58 144A PRIV PLCMT 0.875 12/10/2025 98.9900 92.5240 MOODY'S RATING AA1 CUSIP 40139LBC6 805,000 HONDA AUTO RECEIVABLES OWNER 806,992.67 821,824.50 0.54 14,831.83 1,267.88 ASSET BCKD SEC SER 2023-4 CL A3 100.2476 102.0900 DTD 11/08/2023 5.670% 06/21/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 438123AC5 49,061.52 HONDA AUTO RECEIVABLES OWNER T 49,060.62 48,465.91 0.03 594.71-3.68 SER 2021-1 CL A3 *0 DAY DELAY*99.9982 98.7860 DTD 02/24/21 0.270 04/21/2025 MOODY'S RATING AAA CUSIP 43813GAC5 270 PAGE 9 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 11,635.7 HONDA AUTO RECEIVABLES OWNER T 11,633.99 11,603.93 0.01 30.06-1.55 SER 2020-3 CL A3 *0 DAY DELAY*99.9853 99.7270 DTD 09/29/20 0.370 10/18/2024 CUSIP 43813KAC6 722,168.7 HONDA AUTO RECEIVABLES OWNER T 722,060.08 702,901.24 0.46 19,158.84-603.41 SER 2022-1 CL A3 *0 DAY DELAY*99.9850 97.3320 DTD 02/23/22 1.000 05/15/2026 MOODY'S RATING AAA CUSIP 43815BAC4 320,414.02 HONDA AUTO RECEIVABLES OWNER T 320,346.47 310,913.74 0.20 9,432.73-78.32 SER 2021-4 CL A3 *0 DAY DELAY*99.9789 97.0350 DTD 11/24/21 0.880 01/21/2026 MOODY'S RATING AAA CUSIP 43815GAC3 225,391.76 HYUNDAI AUTO LEASE SECURITIZAT 225,386.79 223,928.97 0.15 1,457.82-116.20 SER 2022-A CL A3 *0 DAY DELAY*99.9978 99.3510 144A PRIV PLCMT 1.160 01/15/2025 MOODY'S RATING AAA CUSIP 44891WAC3 980,803.64 HYUNDAI AUTO RECEIVABLES TRUST 980,765.88 958,490.36 0.63 22,275.52-967.73 ASSET BCKD SEC SER 2022-A CL A3 99.9962 97.7250 DTD 03/16/2022 2.220% 10/15/2026 CALLABLE CUSIP 448977AD0 148,939.13 HYUNDAI AUTO RECEIVABLES TRUST 148,923.46 146,831.64 0.10 2,091.82-25.15 SER 2021-A CL A3 *0 DAY DELAY*99.9895 98.5850 DTD 04/28/21 0.380 09/15/2025 CUSIP 44933LAC7 918,383.73 HYUNDAI AUTO RECEIVABLES TRUST 895,162.89 893,449.61 0.58 1,713.28-302.05 SER 2021-C CL A3 *0 DAY DELAY*97.4716 97.2850 DTD 11/17/21 0.740 05/15/2026 CUSIP 44935FAD6 271 PAGE 10 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,280,690.60 1.49 168,042.60- 4,245.21 DTD 04/20/21 0.875 04/20/2026 99.5420 92.7110 MOODY'S RATING AAA CUSIP 4581X0DV7 2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,236,656.00 1.46 152,203.25- 2,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 93.1940 MOODY'S RATING AAA CUSIP 459058JL8 2,500,000 INTL FINANCE CORP 2,471,150.00 2,346,975.00 1.53 124,175.00- 4,296.88 DTD 07/16/20 0.375 07/16/2025 98.8460 93.8790 MOODY'S RATING AAA CUSIP 45950KCT5 380,268.74 JOHN DEERE OWNER TRUST 380,184.62 371,773.54 0.24 8,411.08-392.10 ASSET BCKD SEC SER 2022-A CL A3 99.9779 97.7660 DTD 03/16/2022 2.320% 09/16/2026 NON CALLABLE MOODY'S RATING AAA CUSIP 47787JAC2 353,397.32 JOHN DEERE OWNER TRUST 353,365.80 343,827.32 0.22 9,538.48-76.57 SER 2021-B CL A3 *0 DAY DELAY*99.9911 97.2920 DTD 07/21/21 0.520 03/16/2026 MOODY'S RATING AAA CUSIP 47789QAC4 655,000 JOHN DEERE OWNER TRUST 654,937.45 644,408.65 0.42 10,528.80- 1,088.76 ASSET BCKD SEC SER 2022-B CL A3 99.9905 98.3830 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 1,049,916.00 0.69 2.52- 2,375.33 ASSET BCKD SEC SER 2022-C CL A3 99.9923 99.9920 DTD 10/19/2022 5.090% 06/15/2027 CALLABLE MOODY'S RATING AAA CUSIP 47800BAC2 272 PAGE 11 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 JPMORGAN CHASE &655,406.85 639,686.10 0.42 15,720.75-141.04 SER F2F 100.0621 97.6620 DTD 06/23/21 06/23/2025 MOODY'S RATING A1 CUSIP 46647PCK0 401,000 JPMORGAN CHASE & CO 415,969.33 384,097.85 0.25 31,871.48- 1,600.96 DTD 04/22/20 04/22/2026 103.7330 95.7850 MOODY'S RATING A1 CUSIP 46647PBK1 1,370,000 JPMORGAN CHASE & CO 1,371,773.90 1,340,668.30 0.88 31,105.60-940.73 DTD 06/01/21 06/01/2025 100.1295 97.8590 MOODY'S RATING A1 CUSIP 46647PCH7 1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 912,890.00 0.60 89,340.00- 5,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 91.2890 MOODY'S RATING AA3 CUSIP 57629WDE7 945,000 MASTERCARD INC 944,083.35 974,039.85 0.64 29,956.50 14,332.50 DTD 03/09/2023 4.875% 03/09/2028 99.9030 103.0730 CALLABLE MOODY'S RATING AA3 CUSIP 57636QAW4 1,100,000 MERCEDES-BENZ AUTO RECEIVABLES TRUST 1,123,289.06 1,131,075.00 0.74 7,785.94 2,908.89 ASSET BCKD SEC SER 2023-2 CL A3 102.1172 102.8250 DTD 10/25/2023 5.950% 11/15/2028 CALLABLE CUSIP 58769FAC9 1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 1,018,151.10 0.66 95,577.80- 9,872.40 144A PRIV PLCMT 1.875 01/11/2027 99.8860 91.3140 MOODY'S RATING AA3 CUSIP 59217GER6 273 PAGE 12 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 770,000 MET TOWER GLOBAL FUNDING 769,291.60 700,392.00 0.46 68,899.60- 2,860.76 144A PRIV PLCMT 1.250 09/14/2026 99.9080 90.9600 MOODY'S RATING AA3 CUSIP 58989V2D5 650,000 MORGAN STANLEY 615,699.50 624,429.00 0.41 8,729.50 2,488.85 DTD 04/28/20 04/28/2026 94.7230 96.0660 MOODY'S RATING A1 CUSIP 6174468Q5 1,000,000 MORGAN STANLEY BK 1,000,082.50 1,028,230.00 0.67 28,147.50 9,803.33 DTD 11/01/2023 5.882% 10/30/2026 100.0083 102.8230 CALLABLE MOODY'S RATING AA3 CUSIP 61690U7W4 1,680,000 NEW YORK LIFE GLOBAL FDG 1,678,185.60 1,617,907.20 1.06 60,278.40- 11,300.33 144A PRIV PLCMT 1.450 01/14/2025 99.8920 96.3040 MOODY'S RATING AAA CUSIP 64952WEK5 670,000 NORTHERN TRUST CORP 668,914.60 660,934.90 0.43 7,979.70- 3,796.67 DTD 05/10/2022 4.000% 05/10/2027 99.8380 98.6470 CALLABLE MOODY'S RATING A2 CUSIP 665859AW4 850,000 NORTHWESTERN MUTUAL GLBL 827,449.50 785,884.50 0.51 41,565.00- 3,154.44 144A PRIV PLCMT 0.800 01/14/2026 97.3470 92.4570 MOODY'S RATING AAA CUSIP 66815L2A6 1,170,000 NORTHWESTERN MUTUAL GLBL 1,169,602.20 1,159,306.20 0.76 10,296.00- 23,400.00 DTD 07/01/2022 4.000% 07/01/2025 99.9660 99.0860 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AAA CUSIP 66815L2J7 274 PAGE 13 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 369,182.30 362,600.00 0.24 6,582.30- 3,005.22 MED TERM NOTE 99.7790 98.0000 DTD 08/15/19 2.150 08/15/2024 MOODY'S RATING A1 CUSIP 69371RQ25 680,000 PACCAR FINANCIAL CORP 679,632.80 660,021.60 0.43 19,611.20- 1,341.11 MED TERM NOTE 99.9460 97.0620 DTD 08/09/21 0.500 08/09/2024 MOODY'S RATING A1 CUSIP 69371RR40 885,000 PACCAR FINANCIAL CORP 884,769.90 864,822.00 0.56 19,947.90- 5,885.25 MEDIUM TERM NOTE 99.9740 97.7200 DTD 04/07/2022 2.850% 04/07/2025 NON CALLABLE MOODY'S RATING A1 CUSIP 69371RR73 904,000 PRICOA GLOBAL FUNDING 1 832,972.72 843,856.88 0.55 10,884.16 2,410.67 144A PRIV PLCMT 0.800 09/01/2025 92.1430 93.3470 MOODY'S RATING AA3 CUSIP 74153WCM9 885,000 PRICOA GLOBAL FUNDING 1 884,088.45 850,670.85 0.56 33,417.60-706.77 144A PRIV PLCMT 1.150 12/06/2024 99.8970 96.1210 MOODY'S RATING AA3 CUSIP 74153WCQ0 1,500,000 ROYAL BANK OF CANADA 1,533,359.18 1,477,050.00 0.96 56,309.18- 17,531.25 DTD 07/16/19 2.550 07/16/2024 102.2240 98.4700 MOODY'S RATING A1 CUSIP 78013XZU5 1,050,000 ROYAL BANK OF CANADA 1,049,611.50 1,028,632.50 0.67 20,979.00- 7,579.69 MEDIUM TERM NOTE 99.9630 97.9650 CONVERTIBLE DTD 04/14/2022 3.375% 04/14/2025 NON CALLABLE MOODY'S RATING A1 CUSIP 78016EZ59 275 PAGE 14 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 1,715,630.40 1.12 33,307.00- 5,072.22 DTD 07/12/21 0.625 07/15/2024 99.3715 97.4790 MOODY'S RATING A2 CUSIP 79466LAG9 1,500,000 TORONTO-DOMINION BANK 1,527,255.00 1,481,220.00 0.97 46,035.00- 2,097.92 MED TERM NOTE 101.8170 98.7480 DTD 06/12/19 2.650 06/12/2024 MOODY'S RATING A1 CUSIP 89114QCA4 700,000 TORONTO-DOMINION BANK 674,737.00 674,576.00 0.44 161.00- 4,821.25 MED TERM NOTE SER FXD 96.3910 96.3680 DTD 01/12/22 1.450 01/10/2025 MOODY'S RATING A1 CUSIP 89114TZL9 1,300,000 TOYOTA AUTO RECEIVABLES OWNER 1,294,718.75 1,309,191.00 0.85 14,472.25 2,981.33 ASSET BCKD SEC SER 2023-C CL A3 99.5938 100.7070 DTD 08/15/2023 5.160% 04/17/2028 CALLABLE CUSIP 89231FAD2 304,187.35 TOYOTA AUTO RECEIVABLES OWNER 304,180.86 295,156.03 0.19 9,024.83-95.99 SER 2021-D CL A3 *0 DAY DELAY*99.9979 97.0310 DTD 11/15/21 0.710 04/15/2026 CUSIP 89238JAC9 187,097.99 TOYOTA AUTO RECEIVABLES OWNER 187,063.27 185,026.82 0.12 2,036.45-21.62 SER 2021-A CL A3 *0 DAY DELAY*99.9815 98.8930 DTD 02/08/21 0.260 05/15/2025 MOODY'S RATING AAA CUSIP 89240BAC2 697,356.13 TOYOTA LEASE OWNER TRUST 697,246.36 692,181.75 0.45 5,064.61-417.64 ASSET BCKD SEC SER 2022-A CL A3 99.9843 99.2580 DTD 02/28/2022 1.960% 02/20/2025 CALLABLE 144A PRIVATE PLACEMENT CUSIP 89238LAC4 276 PAGE 15 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 1,278,909.00 0.83 105,481.60-562.66 MED TERM NOTE 99.9560 92.3400 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 1,172,511.45 0.77 40,860.45- 8,221.50 DTD 01/13/22 1.450 01/13/2025 99.8660 96.5030 MOODY'S RATING A1 CUSIP 89236TJT3 3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 2,995,499.00 1.96 62,118.20- 16,096.15 DTD 03/15/2022 1.750% 03/15/2025 98.6328 96.6290 MOODY'S RATING AAA CUSIP 91282CED9 3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,175,997.50 2.07 84,315.00- 53,102.68 DTD 06/30/2022 3.250% 06/30/2027 100.3173 97.7230 MOODY'S RATING AAA CUSIP 91282CEW7 400,000 UNITED STATES TREASURY NOTES 393,218.75 383,968.00 0.25 9,250.75- 4,603.26 DTD 07/31/2022 2.750% 07/31/2027 98.3047 95.9920 MOODY'S RATING AAA CUSIP 91282CFB2 4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,373,460.00 2.86 95,442.34- 47,518.89 DTD 08/31/2022 3.125% 08/31/2027 99.3090 97.1880 MOODY'S RATING AAA CUSIP 91282CFH9 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,471,838.50 2.27 50,686.16 36,161.37 DTD 09/30/2022 4.125% 09/30/2027 99.1639 100.6330 MOODY'S RATING AAA CUSIP 91282CFM8 850,000 UNITED STATES TREASURY NOTES 852,656.25 848,206.50 0.55 4,449.75- 2,879.78 DTD 11/30/2022 3.875% 11/30/2027 100.3125 99.7890 MOODY'S RATING AAA CUSIP 91282CFZ9 277 PAGE 16 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 2,745,490.00 1.79 29,617.42- 53,574.00 DTD 12/31/2022 3.875% 12/31/2027 100.9130 99.8360 MOODY'S RATING AAA CUSIP 91282CGC9 3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,952,660.00 1.93 5,269.69- 43,940.22 DTD 01/31/2023 3.500% 01/31/2028 98.5977 98.4220 MOODY'S RATING AAA CUSIP 91282CGH8 3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,712,136.00 2.42 13,022.72 50,010.99 DTD 02/28/2023 4.000% 02/29/2028 99.9760 100.3280 MOODY'S RATING AAA CUSIP 91282CGP0 2,500,000 UNITED STATES TREASURY NOTES 2,525,097.66 2,524,425.00 1.65 672.66- 5,080.26 DTD 12/15/2023 4.375% 12/15/2026 101.0039 100.9770 MOODY'S RATING AAA CUSIP 91282CJP7 1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 958,120.20 0.63 66,931.15- 1,520.88 DTD 05/19/21 1.150 05/15/2026 99.0388 92.5720 MOODY'S RATING A2 CUSIP 91324PEC2 675,000 UNITEDHEALTH GROUP INC 675,316.70 661,007.25 0.43 14,309.45- 3,191.25 DTD 05/20/2022 3.700% 05/15/2027 100.0469 97.9270 CALLABLE MOODY'S RATING A2 CUSIP 91324PEG3 1,250,000 US BANCORP 1,268,262.50 1,228,387.50 0.80 39,875.00- 12,583.33 DTD 07/29/19 2.400 07/30/2024 101.4610 98.2710 MOODY'S RATING A3 CUSIP 91159HHX1 1,500,000 US TREASURY NOTE 1,469,765.63 1,404,780.00 0.92 64,985.63- 1,569.29 DTD 07/31/20 0.250 07/31/2025 97.9844 93.6520 MOODY'S RATING AAA CUSIP 91282CAB7 278 PAGE 17 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,400,000 US TREASURY NOTE 2,366,140.63 2,235,000.00 1.46 131,140.63- 1,524.59 DTD 09/30/20 0.250 09/30/2025 98.5892 93.1250 MOODY'S RATING AAA CUSIP 91282CAM3 2,450,000 US TREASURY NOTE 2,422,492.19 2,275,731.50 1.49 146,760.69- 1,043.27 DTD 10/31/20 0.250 10/31/2025 98.8772 92.8870 MOODY'S RATING AAA CUSIP 91282CAT8 2,250,000 US TREASURY NOTE 2,209,658.20 2,089,417.50 1.36 120,240.70-737.70 DTD 11/30/20 0.375 11/30/2025 98.2070 92.8630 MOODY'S RATING AAA CUSIP 91282CAZ4 2,500,000 US TREASURY NOTE 2,456,445.31 2,309,775.00 1.51 146,670.31- 3,923.23 DTD 02/01/21 0.375 01/31/2026 98.2578 92.3910 MOODY'S RATING AAA CUSIP 91282CBH3 2,500,000 US TREASURY NOTE 2,493,652.34 2,312,900.00 1.51 180,752.34- 3,193.68 DTD 04/30/21 0.750 04/30/2026 99.7461 92.5160 MOODY'S RATING AAA CUSIP 91282CBW0 1,400,000 US TREASURY NOTE 1,379,054.68 1,285,872.00 0.84 93,182.68- 3,112.70 DTD 09/30/21 0.875 09/30/2026 98.5039 91.8480 MOODY'S RATING AAA CUSIP 91282CCZ2 1,400,000 US TREASURY NOTE 1,391,468.75 1,291,878.00 0.84 99,590.75- 2,682.69 DTD 11/01/21 1.125 10/31/2026 99.3906 92.2770 CUSIP 91282CDG3 1,700,000 US TREASURY NOTE 1,753,191.41 1,672,239.00 1.09 80,952.41- 15,250.34 DTD 08/15/14 2.375 08/15/2024 103.1289 98.3670 MOODY'S RATING AAA CUSIP 912828D56 279 PAGE 18 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,000,000 US TREASURY NOTE 2,018,574.22 1,968,820.00 1.29 49,754.22- 20,109.89 DTD 06/30/17 2.000 06/30/2024 100.9287 98.4410 MOODY'S RATING AAA CUSIP 912828XX3 1,700,000 US TREASURY NOTE 1,705,976.56 1,682,201.00 1.10 23,775.56- 5,791.21 DTD 05/01/17 2.000 04/30/2024 100.3516 98.9530 MOODY'S RATING AAA CUSIP 912828X70 2,100,000 US TREASURY NOTE 2,087,203.13 2,038,029.00 1.33 49,174.13- 18,475.96 DTD 12/31/19 1.750 12/31/2024 99.3906 97.0490 CUSIP 912828YY0 1,500,000 US TREASURY NOTE 1,523,144.53 1,440,765.00 0.94 82,379.53- 5,777.85 DTD 03/02/20 1.125 02/28/2025 101.5430 96.0510 MOODY'S RATING AAA CUSIP 912828ZC7 2,500,000 US TREASURY NOTE 2,360,839.85 2,365,825.00 1.54 4,985.15 1,596.84 DTD 04/30/20 0.375 04/30/2025 94.4336 94.6330 MOODY'S RATING AAA CUSIP 912828ZL7 570,000 VERIZON MASTER TRUST 569,974.92 569,441.40 0.37 533.52-647.90 ASSET BCKD SEC SER 2022-5 CL A1A 99.9956 99.9020 DTD 08/11/2022 VAR CPN 07/20/2027 CALLABLE CUSIP 92348KAV5 350,000 WALMART INC 349,338.50 321,583.50 0.21 27,755.00- 1,061.67 DTD 09/17/21 1.050 09/17/2026 99.8110 91.8810 MOODY'S RATING AA2 CUSIP 931142ER0 ====================================================================================================================================== TOTAL BOND & NOTES 155,342,314.38 149,994,556.45 97.92 5,347,757.93- 786,651.51 280 PAGE 19 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF DECEMBER 31, 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 158,466,177.24 153,179,892.21 100.00 5,286,285.03- 789,741.52 TOTAL ACCRUALS 789,741.52 789,741.52 ====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 159,255,918.76 153,969,633.73 281 PAGE 20 CASH SUMMARY CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH SUMMARY DESCRIPTION PRINCIPAL CASH INCOME CASH ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00 RECEIPTS NET INTEREST COLLECTED 0.00 175,688.00 TRANSFER RECEIPTS 179,871.74 0.00 SALES 3,119,402.51 0.00 CASH MANAGEMENT SALES 2,809,306.97 0.00 TOTAL CASH RECEIPTS 6,108,581.22 175,688.00 DISBURSEMENTS INVESTMENT MANAGEMENT EXPENSES 9,233.26-0.00 TRANSFER DISBURSEMENTS 0.00 179,871.74- PURCHASES 3,648,386.72-0.00 CASH MANAGEMENT PURCHASES 2,446,777.50-0.00 TOTAL CASH DISBURSEMENTS 6,104,397.48-179,871.74- ======================================================================================================================================== ENDING BALANCE 4,183.74 4,183.74- ________________________________________________________________________________________________________________________________________ 282 PAGE 21 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 158,297,260.16 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS 12/01/23 INTEREST RECEIVED 4,819.39 AS 100% TREAS MM FD-SVC CL #008 INTEREST FROM 11/1/23 TO 11/30/23 12/01/23 INTEREST RECEIVED 117.69 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM INTEREST FROM 11/1/23 TO 11/30/23 12/28/23 1,500,000- MATURED 1,460,358.13 1,460,358.13- U.S. TREASURY BILLS 12/28/23 CUSIP 912796ZN2 AT $100.0000 ON TRADE DATE 12/28/2023 12/28/23 INTEREST RECEIVED 39,641.87 U.S. TREASURY BILLS 12/28/23 CUSIP 912796ZN2 INTEREST ON 1,500,000.000 UNITS 1,500,000 PAR VALUE AT 100 % 12/31/23 2,446,659.81 CASH SWEEP PURCHASES FOR STMT PERIOD 2,446,659.81- 2,446,659.81 AS 100% TREAS MM FD-SVC CL #008 15 TRANSACTIONS 12/31/23 117.69 CASH SWEEP PURCHASES FOR STMT PERIOD 117.69-117.69 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM 1 TRANSACTIONS 12/31/23 2,809,306.97- CASH SWEEP SALES FOR STMT PERIOD 2,809,306.97 2,809,306.97- AS 100% TREAS MM FD-SVC CL #008 4 TRANSACTIONS 283 PAGE 22 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BONDS & NOTES 12/15/23 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 12/15/23 12/15/23 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 12/15/23 12/26/23 8,282.92- PAID DOWN 8,282.92 8,282.06-0.86 BMW VEHICLE LEASE TR 0.330% 12/26/24 CUSIP 09690AAC7 TO SETTLE ON 12/26/2023 12/26/23 INTEREST RECEIVED 2.28 BMW VEHICLE LEASE TR 0.330% 12/26/24 CUSIP 09690AAC7 $0.00001/PV ON 8,282.92 PV DUE 12/25/23 12/26/23 INTEREST RECEIVED 146.28 BMW VEHICLE LEASE TR 1.100% 3/25/25 CUSIP 05601XAC3 $0.00033/PV ON 159,574.39 PV DUE 12/25/23 12/26/23 42,572.99- PAID DOWN 42,572.99 42,566.63-6.36 BMW VEHICLE LEASE TR 1.100% 3/25/25 CUSIP 05601XAC3 TO SETTLE ON 12/26/2023 284 PAGE 23 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/26/23 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 12/25/23 12/27/23 12,568.03- PAID DOWN 12,568.03 12,567.38-0.65 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 TO SETTLE ON 12/27/2023 12/14/23 INTEREST RECEIVED 21,562.50 FED HOME LN BK 2.875% 6/14/24 CUSIP 3130A1XJ2 INTEREST ON 1,500,000.000 UNITS 12/04/23 INTEREST RECEIVED 1,068.75 FED HOME LN MTG CORP 0.250% 12/04/23 CUSIP 3137EAFA2 INTEREST ON 855,000.000 UNITS 12/04/23 855,000- MATURED 855,000.00 854,153.55-846.45 FED HOME LN MTG CORP 0.250% 12/04/23 CUSIP 3137EAFA2 AT $100.0000 ON TRADE DATE 12/04/2023 12/26/23 INTEREST RECEIVED 3,406.47 FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 $0.00262/PV ON 1,289,110.65 PV DUE 12/25/23 12/26/23 2,995.84- PAID DOWN 2,995.84 3,222.63-226.79- FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 TO SETTLE ON 12/26/2023 285 PAGE 24 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/18/23 INTEREST RECEIVED 6,250.00 FED NATL MTG ASSN 0.500% 6/17/25 CUSIP 3135G04Z3 INTEREST ON 2,500,000.000 UNITS 12/26/23 INTEREST RECEIVED 1,437.04 FHLMC MULTIFAMILY ST 2.653% 8/25/26 CUSIP 3137BSP72 $0.00221/PV ON 650,000.00 PV DUE 12/25/23 12/26/23 INTEREST RECEIVED 1,422.62 FHLMC MULTIFAMILY ST 2.995% 12/25/25 CUSIP 3137BN6G4 $0.00250/PV ON 570,000.00 PV DUE 12/25/23 12/26/23 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 12/25/23 12/26/23 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 12/25/23 12/26/23 INTEREST RECEIVED 1,212.93 FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 $0.00276/PV ON 440,000.00 PV DUE 12/25/23 286 PAGE 25 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/18/23 INTEREST RECEIVED 1,007.50 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 $0.00258/PV ON 390,000.00 PV DUE 12/16/23 12/19/23 0.01 SHARE ADJUSTMENT GM FINANCIAL AUTOMOB 0.390% 10/21/24 CUSIP 36262XAC8 12/20/23 INTEREST RECEIVED 32.40 GM FINANCIAL AUTOMOB 0.390% 10/21/24 CUSIP 36262XAC8 $0.00003/PV ON 99,705.05 PV DUE 12/20/23 12/20/23 99,705.05- PAID DOWN 99,705.05 99,703.69-1.36 GM FINANCIAL AUTOMOB 0.390% 10/21/24 CUSIP 36262XAC8 AT $484.6460 ON TRADE DATE 12/20/2023 12/20/23 INTEREST RECEIVED 915.49 GM FINANCIAL AUTOMOB 1.850% 3/20/25 CUSIP 36265MAC9 $0.00097/PV ON 578,202.99 PV DUE 12/20/23 12/20/23 109,507.74- PAID DOWN 109,507.74 109,506.80-0.94 GM FINANCIAL AUTOMOB 1.850% 3/20/25 CUSIP 36265MAC9 AT $441.2624 ON TRADE DATE 12/20/2023 12/18/23 INTEREST RECEIVED 151.86 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 $0.00043/PV ON 267,989.87 PV DUE 12/16/23 287 PAGE 26 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/18/23 15,837.6- PAID DOWN 15,837.60 15,837.20-0.40 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 TO SETTLE ON 12/18/2023 12/18/23 INTEREST RECEIVED 274.13 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 $0.00093/PV ON 261,079.43 PV DUE 12/16/23 12/18/23 15,063.36- PAID DOWN 15,063.36 15,062.05-1.31 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 TO SETTLE ON 12/18/2023 12/21/23 INTEREST RECEIVED 5,451.86 HONDA AUTO RECE ABS 5.670% 6/21/28 CUSIP 438123AC5 $0.00677/PV ON 805,000.00 PV DUE 12/21/23 12/21/23 INTEREST RECEIVED 13.39 HONDA AUTO RECEIVABL 0.270% 4/21/25 CUSIP 43813GAC5 $0.00005/PV ON 59,522.37 PV DUE 12/21/23 12/21/23 10,460.85- PAID DOWN 10,460.85 10,460.66-0.19 HONDA AUTO RECEIVABL 0.270% 4/21/25 CUSIP 43813GAC5 12/18/23 INTEREST RECEIVED 9.17 HONDA AUTO RECEIVABL 0.370% 10/18/24 CUSIP 43813KAC6 $0.00002/PV ON 29,741.01 PV DUE 12/18/23 288 PAGE 27 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/18/23 18,105.31- PAID DOWN 18,105.31 18,102.65-2.66 HONDA AUTO RECEIVABL 0.370% 10/18/24 CUSIP 43813KAC6 12/21/23 INTEREST RECEIVED 252.29 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 $0.00055/PV ON 344,032.15 PV DUE 12/21/23 12/21/23 23,618.13- PAID DOWN 23,618.13 23,613.15-4.98 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 12/15/23 INTEREST RECEIVED 1,159.33 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 $0.00157/PV ON 740,000.00 PV DUE 12/15/23 12/15/23 17,831.3- PAID DOWN 17,831.30 17,828.62-2.68 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 AT $456.3283 ON TRADE DATE 12/15/2023 12/15/23 INTEREST RECEIVED 274.19 HYUNDAI AUTO LEASE 1.160% 1/15/25 CUSIP 44891WAC3 $0.00051/PV ON 283,648.76 PV DUE 12/15/23 12/15/23 58,257- PAID DOWN 58,257.00 58,255.71-1.29 HYUNDAI AUTO LEASE 1.160% 1/15/25 CUSIP 44891WAC3 AT $139.6729 ON TRADE DATE 12/15/2023 289 PAGE 28 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/23 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 12/15/23 12/15/23 29,196.36- PAID DOWN 29,196.36 29,195.24-1.12 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 AT $278.6966 ON TRADE DATE 12/15/2023 12/15/23 INTEREST RECEIVED 54.68 HYUNDAI AUTO RECEIVA 0.380% 9/15/25 CUSIP 44933LAC7 $0.00011/PV ON 172,686.39 PV DUE 12/15/23 12/15/23 23,747.26- PAID DOWN 23,747.26 23,744.76-2.50 HYUNDAI AUTO RECEIVA 0.380% 9/15/25 CUSIP 44933LAC7 12/15/23 INTEREST RECEIVED 609.71 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 $0.00046/PV ON 988,717.31 PV DUE 12/15/23 12/15/23 70,333.58- PAID DOWN 70,333.58 68,555.23-1,778.35 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 AT $153.8684 ON TRADE DATE 12/15/2023 12/15/23 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 12/15/23 290 PAGE 29 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/23 INTEREST RECEIVED 777.76 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 $0.00173/PV ON 402,289.78 PV DUE 12/15/23 12/15/23 22,021.04- PAID DOWN 22,021.04 22,016.17-4.87 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 AT $369.5069 ON TRADE DATE 12/15/2023 12/15/23 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 12/15/23 12/15/23 INTEREST RECEIVED 162.10 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 $0.00028/PV ON 374,083.57 PV DUE 12/15/23 12/15/23 20,686.25- PAID DOWN 20,686.25 20,684.40-1.85 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 12/04/23 1,100,000 PURCHASED 1,123,289.06- 1,123,289.06 MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 AT $102.1172 ON TRADE DATE 11/29/2023 TO SETTLE ON 12/04/2023 MITSUBISHI UFJ SECURITIES (USA 12/04/23 ACCRUED INTEREST ON PURCHASE 3,454.31- MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 291 PAGE 30 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/23 INTEREST RECEIVED 5,454.17 MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 $0.00496/PV ON 1,100,000.00 PV DUE 12/15/23 12/11/23 INTEREST RECEIVED 6,125.00 P/P GUARDIAN LIFE GL 0.875% 12/10/25 CUSIP 40139LBC6 INTEREST ON 1,400,000.000 UNITS 12/06/23 INTEREST RECEIVED 5,088.75 P/P PRICOA GLOBAL FU 1.150% 12/06/24 CUSIP 74153WCQ0 INTEREST ON 885,000.000 UNITS 12/12/23 INTEREST RECEIVED 19,875.00 TORONTO-DOMINION BAN 2.650% 6/12/24 CUSIP 89114QCA4 INTEREST ON 1,500,000.000 UNITS 12/15/23 INTEREST RECEIVED 5,590.00 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 $0.00430/PV ON 1,300,000.00 PV DUE 12/15/23 12/15/23 INTEREST RECEIVED 48.68 TOYOTA AUTO RECEIVAB 0.260% 5/15/25 CUSIP 89240BAC2 $0.00004/PV ON 224,693.89 PV DUE 12/15/23 12/15/23 37,595.9- PAID DOWN 37,595.90 37,588.92-6.98 TOYOTA AUTO RECEIVAB 0.260% 5/15/25 CUSIP 89240BAC2 AT $216.4312 ON TRADE DATE 12/15/2023 292 PAGE 31 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/23 INTEREST RECEIVED 2.25 TOYOTA AUTO RECEIVAB 0.350% 1/15/25 CUSIP 89236XAC0 $0.00000/PV ON 7,717.40 PV DUE 12/15/23 12/15/23 7,717.4- PAID DOWN 7,717.40 7,715.96-1.44 TOYOTA AUTO RECEIVAB 0.350% 1/15/25 CUSIP 89236XAC0 12/15/23 INTEREST RECEIVED 192.87 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 $0.00045/PV ON 325,983.42 PV DUE 12/15/23 12/15/23 21,796.07- PAID DOWN 21,796.07 21,795.61-0.46 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 AT $373.3208 ON TRADE DATE 12/15/2023 12/20/23 INTEREST RECEIVED 1,361.38 TOYOTA LEASE OWN ABS 1.960% 2/20/25 CUSIP 89238LAC4 $0.00118/PV ON 833,500.53 PV DUE 12/20/23 12/20/23 136,144.4- PAID DOWN 136,144.40 136,122.97-21.43 TOYOTA LEASE OWN ABS 1.960% 2/20/25 CUSIP 89238LAC4 AT $354.9294 ON TRADE DATE 12/20/2023 12/18/23 INTEREST RECEIVED 7,790.63 TOYOTA MOTOR CREDIT 1.125% 6/18/26 CUSIP 89236TJK2 INTEREST ON 1,385,000.000 UNITS 293 PAGE 32 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/29/23 2,500,000 PURCHASED 2,525,097.66- 2,525,097.66 U.S. TREASURY NOTES 4.375% 12/15/26 CUSIP 91282CJP7 AT $101.0039 ON TRADE DATE 12/28/2023 TO SETTLE ON 12/29/2023 NOMURA SECURITIES INTERNATIONA 12/29/23 ACCRUED INTEREST ON PURCHASE 4,183.74- U.S. TREASURY NOTES 4.375% 12/15/26 CUSIP 91282CJP7 12/20/23 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 12/20/23 12/19/23 INTEREST RECEIVED 4,616.50 VR BANK OF AMERICA 1.319% 6/19/26 CUSIP 06051GJD2 INTEREST ON 700,000.000 UNITS 12/26/23 INTEREST RECEIVED 2,639.42 VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 $0.00278/PV ON 950,000.00 PV DUE 12/25/23 12/01/23 INTEREST RECEIVED 5,644.40 VR JPMORGAN CHASE & 0.824% 6/01/25 CUSIP 46647PCH7 INTEREST ON 1,370,000.000 UNITS 12/26/23 INTEREST RECEIVED 3,173.48 VR JPMORGAN CHASE & 0.969% 6/23/25 CUSIP 46647PCK0 INTEREST ON 655,000.000 UNITS 294 PAGE 33 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ TRANSFER RECEIPTS 12/01/23 ADDITION TO ACCOUNT 10,581.48 TRANSFER FROM INCOME 12/06/23 ADDITION TO ACCOUNT 2,703.19 TRANSFER FROM INCOME 12/11/23 ADDITION TO ACCOUNT 6,125.00 TRANSFER FROM INCOME 12/12/23 ADDITION TO ACCOUNT 19,875.00 TRANSFER FROM INCOME 12/14/23 ADDITION TO ACCOUNT 21,562.50 TRANSFER FROM INCOME 12/15/23 ADDITION TO ACCOUNT 29,419.17 TRANSFER FROM INCOME 12/18/23 ADDITION TO ACCOUNT 14,323.93 TRANSFER FROM INCOME 12/19/23 ADDITION TO ACCOUNT 5,775.86 TRANSFER FROM INCOME 12/20/23 ADDITION TO ACCOUNT 4,076.27 TRANSFER FROM INCOME 12/21/23 ADDITION TO ACCOUNT 5,717.54 TRANSFER FROM INCOME 12/26/23 ADDITION TO ACCOUNT 20,069.93 TRANSFER FROM INCOME 295 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 34 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD DECEMBER 1, 2023 THROUGH DECEMBER 31, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/28/23 ADDITION TO ACCOUNT 39,641.87 TRANSFER FROM INCOME INVESTMENT MANAGEMENT EXPENSES 12/06/23 INVESTMENT MGMT FEE 9,233.26- PAID TO CHANDLER ASSET MANAGEMENT INC INV 2311CUPERTIN PRD 11/1/23-11/30/23 TRANSFER DISBURSEMENTS 12/01/23 TRANSFER TO PRINCIPAL 10,581.48- 12/06/23 TRANSFER TO PRINCIPAL 2,703.19- 12/11/23 TRANSFER TO PRINCIPAL 6,125.00- 12/12/23 TRANSFER TO PRINCIPAL 19,875.00- 12/14/23 TRANSFER TO PRINCIPAL 21,562.50- 12/15/23 TRANSFER TO PRINCIPAL 29,419.17- 12/18/23 TRANSFER TO PRINCIPAL 14,323.93- 12/19/23 TRANSFER TO PRINCIPAL 5,775.86- 12/20/23 TRANSFER TO PRINCIPAL 4,076.27- 12/21/23 TRANSFER TO PRINCIPAL 5,717.54- 12/26/23 TRANSFER TO PRINCIPAL 20,069.93- 12/28/23 TRANSFER TO PRINCIPAL 39,641.87- ================================================================================================================= ENDING BALANCE 0.00 158,466,177.24 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 296 CITY OF CUPERTINO PARS Post-Employment Benefits Trust 12/1/2023 to 12/31/2023 Kristina Alfaro Director of Administrative Services City of Cupertino 10300 Torre Ave. Cupertino, CA 95014 Account Summary Source 12/1/2023 Contributions Earnings Expenses Distributions Transfers 12/31/2023 OPEB 1001 $35,165,170.39 $0.00 $1,916,805.62 $10,099.55 $0.00 $0.00 $37,071,876.46 PENSION 1002 $19,340,293.30 $0.00 $1,054,271.62 $5,554.59 $0.00 $0.00 $20,389,010.33 Totals $54,505,463.69 $0.00 $2,971,077.24 $15,654.14 $0.00 $0.00 $57,460,886.79 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 5.45%10.30%17.61%2.26%7.92%5.64%6/21/2010 PENSION 5.45%10.30%17.61%2.21%--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 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 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 297 1/10/24, 1 35 PM 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 January 10, 2024 LAIF Home PMIA Average Monthly Yields CITY OF CUPERTINO FINANCE MANAGER 10300 TORRE AVENUE CUPERTINO, CA 95014 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:21,787,939.00 Total Withdrawal:0.00 Ending Balance:21,787,939.00 298 CITY OF CUPERTINO Agenda Item 24-13119 Agenda Date: 4/22/2024 Agenda #: 5. Subject: INFORMATIONAL ITEM Annual Review of the City’s Investment Policy Annual Review of the City’s Investment Policy Presenter: Jonathan Orozco, Finance Manager, and Chandler 4:55(10) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™299 AUDIT COMMITTEE STAFF REPORT Meeting: April 22, 2024 Subject Consider the City's Investment Policy Recommended Action Review and accept the City's Investment Policy Reasons for Recommendation Background To ensure the City's investment policy is up-to-date and aligned with its investment objectives, the Audit Committee conducts an annual review before presenting it to the City Council. The most recent review and acceptance of the investment policy by the Audit Committee occurred on April 24, 2023, followed by approval from the City Council on May 16, 2023. The investment policy is the foundation of the City's investment goals and priorities. It can help protect the City's assets if it is carefully researched, effectively drafted, and regularly reviewed to assure that it continues to meet the City's investment objectives. The existence of an approved investment policy demonstrates that the City is performing its fiduciary responsibilities, thereby inspiring trust and confidence among the public that it serves. The policy also provides guidance on the proper management of the City's temporary idle cash, outlining protocols to maximize cash efficiency. California Government Code (Code) section 53646(a)(2) states: [T]he treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting. 300 Assembly Bill 2853 (Chapter 889, Statutes of 2004) amended section 53646(a)(2) to make presentation of the investment policy to the City Council optional. While no longer required by Code, the City annually presents the investment policy to the Audit Committee before submitting it to City Council for approval. Chandler Asset Management 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. To achieve the objective, Chandler Asset Management invests in high-quality fixed-income securities consistent with the City's investment policy and Code. Investment Policy Review Chandler Asset Management reviewed the City's investment policy. The review of the policy focused on compliance with the statutes of Code that govern the investment of public funds, as well as on the inclusion of current best practices. There was a change to Code Section 53601 for 2023 that Chandler Asset Management recommends the City adopt. Pursuant to Senate Bill 1489, effective January 1, 2023, the Code specified that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity rather than from the trade date. Chandler Asset Management has added the change in the Maximum Maturities and Mitigating Market Risk in the Portfolio sections. The City’s policy continues to be effective as written. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. _____________________________________ Prepared by: Jonathan Orozco, Finance Manager Reviewed by: Kristina Alfaro, Director of Administrative Services and City Treasurer Approved for Submission by: Matt Morley, Assistant City Manager 301 Attachments: A – Cupertino Investment Policy (redline) B – Cupertino Investment Policy Statement Review Memo 302 1 | Page City Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: May 716, 20243 Responsible Department: Administrative Services Related Policies & Notes: Pension Investment Policy, OPEB Investment Policy POLICY Under authority granted by the City Council, the City Treasurer and Deputy Treasurer are responsible for investing the surplus funds of the City. The investment of the funds of the City of Cupertino is directed to the goals of safety, liquidity and yield. The authority governing investments for municipal governments is set forth in the California Government Code, Sections 53600 et seq. By adopting this Policy, the City Council delegates to the City Treasurer the authority to invest or to reinvest City funds, or to sell or exchange securities so purchased pursuant to Government Code Section 53607. The primary objective of the investment policy of the City of Cupertino is SAFETY OF PRINCIPAL. Investments shall be placed in those securities as outlined by type and maturity sector in this document. Effective cash flow management and resulting cash investment practices are recognized as essential to good fiscal management and control. The City’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. Portfolio management requires continual analysis and as a result the balance between the various investments and maturities may change in order to give the City of Cupertino the optimum combination of necessary liquidity and optimal yield based on cash flow projections. SCOPE The investment policy applies to all financial assets of the City of Cupertino as accounted for in the Annual Comprehensive Financial Report (ACFR). Policy statements outlined in this document focus on the City of Cupertino’s pooled, surplus funds, but will also apply to all other funds under the City Treasurer’s span of control unless specifically exempted by statute or ordinance. This policy is applicable, but not limited to all funds listed below:  General Fund  Special Revenue Funds  Capital Project Funds  Enterprise Funds 303 2 | Page  Internal Service Funds  Trust and Agency Funds  Any new fund unless specifically exempted Investments of bond proceeds shall be governed by the provisions of the related bond indentures and/or cash flow requirements and therefore may extend beyond the maturity limitations as outlined in this document. Other post‐employment benefit (OPEB) and Pension trust investments are governed by California Government Code Sections 53620 through 53622 and trust documents. The trusts are governed by separate investment policies entitled Investment Policy Statement City of Cupertino Investment Trust that were reviewed by the City of Cupertino Audit Committee on October 234, 20232 and City Council on December 56, 20232. PRUDENCE Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard: “…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” It is the City’s intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized that in a well‐diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market, or individual security valuation fluctuations. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long‐term rate of return. The City Treasurer and Deputy Treasurer, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments. OBJECTIVES 304 3 | Page The primary objectives, in order of priority, of the City of Cupertino’s investment activities shall be: A. Safety of Principal Safety of principal is the foremost objective of the City of Cupertino. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns. B. Liquidity The City’s investment portfolio will remain sufficiently liquid to meet all operating requirements which might be reasonably anticipated and provide the City with adequate cash flows to pay its obligations over the next six months. Additionally, the portfolio should consist largely of securities with active secondary resale markets. C. Return The City’s investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with Cupertino’s investment risk constraints and cash flow characteristics of the portfolio. MAXIMUM MATURITIES Maturities of investments will be selected based on liquidity requirements to minimize interest rate risk and maximize earnings. Investment of surplus funds shall comply with the maturity limits as set forth in the California Government Code 53600, et seq. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security that at the time of the investment has a term remaining to maturity in excess of five years from date of trade settlement, unless the Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the Council no less than three months prior to the investment. Reserve funds may be invested in securities exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. PERFORMANCE EVALUATION Investment performance is continually monitored and evaluated by the City Treasurer. Investment performance statistics and activity reports are generated on a quarterly basis for presentation to the oversight (audit) committee, City Manager and City Council. Yield on the City’s investment portfolio is of secondary importance compared to the safety and liquidity objectives described above. The City’s investment portfolio shall be designed to attain a market average rate of return through economic cycles. The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment return above the 305 4 | Page market average rate of return. The City may select alternative benchmarks for identified pools of City funds that have different objectives. DELEGATION OF AUTHORITY Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq. The Treasurer is responsible for investment management decisions and activities per City Council Resolution. The Treasurer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Treasurer is not present. No officer or designee may engage in an investment transaction except as provided under terms of this policy and the procedures by the Treasurer and approved by the City Manager/Council. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. If an investment adviser is retained by the City, the investment adviser, registered under the Investment Advisers Act of 1940, must have at least five yearsʹ experience investing in the securities and obligations authorized by California Government Code 53601 subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000). External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City. OVERSIGHT COMMITTEE An audit committee consisting of appropriate internal and external members, appointed by the City Council, shall be established to provide general oversight and direction concerning the policies related to management of the City’s investment pool, OPEB trust, and Pension Rate Stabilization Program trust. The City Treasurer shall serve in a staff and advisory capacity. The committee shall meet at least quarterly to review policy changes, new legislation and portfolio status. ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program, or impairs their ability to make impartial investment decisions. Additionally the City Treasurer and the Deputy Treasurer are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC). 306 5 | Page SAFEKEEPING OF SECURITIES To protect against fraud or embezzlement or losses caused by collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party custodian acting as agent for the City under the terms of a custody agreement. All trades executed by a dealer will settle delivery versus payment (DVP) through the City’s safekeeping agent. In order to verify investment holdings, an external auditor, on an annual basis, shall independently verify securities held in custody for the City. Additionally, the City Treasurer shall include a listing of holdings provided by the City’s custodian to the quarterly investment report as verification between annual reviews by the external auditor. The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable. All other exceptions to this safekeeping policy must be approved by the City Treasurer in written form and included in the quarterly report to City Council. INTERNAL CONTROL Separation of duties between the Treasurer’s function and Finance is designed to provide proper internal controls to prevent the potential for converting assets or concealing transactions. Dual transaction controls, separate and independent notifications, and reports provided by financial institutions shall be used to help implement these controls. Wire transfers shall be approved prior to being submitted to the financial institution. Wire transfers initiated by Treasury staff must be reconfirmed by the appropriate financial institution to Finance staff. Proper documentation is required for each investment transaction and must include a broker trade confirmation and a cash disbursement wire transfer confirmation. Timely bank reconciliation is conducted to ensure proper handling of all transactions. The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by Finance staff on a monthly basis. An annual agreed‐upon procedures engagement in accordance with the attestation standards established by the American Institute of Certified Public Accountants shall be conducted by an auditor solely to assist management in determining the City’s compliance with this investment policy. At the conclusion of such engagement, the agreed‐upon procedures report detailing all procedures performed and findings noted (if applicable) shall be provided to the Audit Committee of the City. REPORTING Monthly transaction reports will be submitted by the Treasurer to the City Council within 30 days of the end of the reporting period in accordance with California Government Code Section 53607. 307 6 | Page The City Treasurer shall also prepare a quarterly investment report, including a succinct management summary that provides a clear picture of the status of the current investment portfolio. The report will be prepared in a manner that will report all information required under this policy and as recommended by California Government Code. The Treasurer will submit the report to Council no later than the second regular council meeting, or approximately 45 days following the end of the quarter covered by the report. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND QUALIFIED BROKER/DEALERS To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms. The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include ʺprimaryʺ dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3‐1 (uniform net capital rule). In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:  Primary government dealers as designated by the Federal Reserve Bank and non‐primary government dealers.  Nationally or state‐chartered banks.  The Federal Reserve Bank.  Direct issuers of securities eligible for purchase. Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law. 308 7 | Page Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price. COLLATERAL REQUIREMENTS CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non‐Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security. COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651. REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:  The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.  Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.  The City shall receive monthly statements of collateral. AUTHORIZED INVESTMENTS Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized, subject to the restrictions below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased. Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy. 309 8 | Page An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers. 1. United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category, although a five‐ year maturity limitation is applicable. 2. Obligations issued by Federal agencies or United States Government‐Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government‐sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government‐Sponsored Enterprises (GSEs), provided that:  No more than 25% of the portfolio may be invested in any single Agency/GSE issuer.  The maximum maturity does not exceed five (5) years.  The maximum percent of agency callable securities in the portfolio will be 20%. 3. Banker’s Acceptances (bills of exchange or time drafts drawn on and accepted by commercial banks) may not exceed 180 days to maturity or 40% of the portfolio.  They are issued by institutions which have short‐term debt obligations rated “A‐1” or its equivalent or better by at least one NRSRO; or long‐term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.  No more than 5% of the portfolio may be invested in any single issuer. 4. Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by California state law. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.. 5. Commercial paper issued by corporations organized and operating in the United States having assets in excess of $500,000,000, ranked “A‐1” or its equivalent or better by at least one Nationally Ranked Statistical Rating Organization (NRSRO), issued by corporations which have long‐term obligations rated in a rating category of “A” or its equivalent or better by one NRSRO. Purchases of eligible commercial paper may not exceed 270 days to maturity nor represent more than 10% of the outstanding paper of the issuing corporation. 310 9 | Page Purchases of commercial paper may not exceed 25% of the portfolio. Under a provision sunsetting on January 1, 2026, no more than 40% of the City’s portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000. No more than 10% of the total investments may be invested the in commercial paper and medium term notes of any single issuer. 6. Negotiable Certificates of Deposits 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. Purchases of Negotiable Certificates of Deposit may not exceed 30% of the portfolio. No more than 5% of the portfolio may be invested in any single issuer. A maturity limitation of five years is applicable. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short‐term debt obligations rated “A‐1” or its equivalent or better by at least one NRSRO; or long‐term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. 7. Repurchase agreements that specify terms and conditions may be transacted with banks and broker dealers. The maturity of the repurchase agreements shall not exceed one year. The market value of the securities used as collateral for the repurchase agreements shall be monitored by the investment staff and shall not be allowed to fall below 102% of the value of the repurchase agreement. A PSA Master Repurchase Agreement is required between the City of Cupertino and the broker/dealer or financial institution for all repurchase agreements transacted. 8. Reverse repurchase agreements are not authorized. 9. Certificates of Deposit (time deposits), non‐negotiable and collateralized in accordance with the California Government Code, may be purchased through banks, savings and loan associations, or credit unions. Within a limit of 30% of the portfolio, these institutions may use a private sector entity to assist in the placement of the time deposits under the conditions specified by the Government Code. 10. Medium Term Corporate Notes issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a maximum maturity of five years may be purchased. Securities eligible for investment shall be rated in the rating category of “A” or better by at least one NRSRO. Purchase of medium term note s may not exceed 30% of the portfolio. No more than 10% of the total investments may be invested in the commercial paper and medium term notes of any single issuer. 11. Municipal securities, including obligations of the City, the State of California, and any local agency within the State of California, provided that: 311 10 | Page  The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years. 12. Municipal securities (Registered Treasury Notes or Bonds) 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.  The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years. 13. Asset‐backed, mortgage‐backed, mortgage pass‐through securities, and collateralized mortgage obligations, provided that:  The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.  No more than 20% of the total portfolio may be invested in these securities.  No more than 5% of the portfolio may be invested in any single Asset‐Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/GSE.  The maximum legal final maturity does not exceed five (5) years. 14. Supranationals, provided that:  Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter‐American Development Bank.  The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.  No more than 30% of the total portfolio may be invested in these securities.  No more than 10% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years. 312 11 | Page 15. Various daily money market funds administered for or by trustees, paying agents and custodian banks contracted by the City of Cupertino may be purchased as allowed under State of 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 and may not exceed 20% of the cost value of the portfolio. 16. Ineligible investments are those that are not described herein, including but not limited to, common stocks and long‐term (over five years in maturity) notes and bonds are prohibited from use in this portfolio. It is noted that special circumstances arise that necessitate the purchase of securities beyond the five‐year limitation. On such occasions, requests must be approved by City Council prior to purchase. Additionally:  State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest‐only strips is prohibited.  Investment in any security that could result in a zero‐interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result zero‐ or negative‐interest accrual if held to maturity are permitted.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.  Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.  The purchase of foreign currency denominated securities is prohibited. RISK MANAGEMENT AND DIVERSIFICATION Mitigating Credit Risk in the Portfolio Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies: The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in 313 12 | Page response to market conditions or City’s risk preferences.  If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.  If a security is downgraded, the Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.  If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council. Mitigating Market Risk in the Portfolio Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer‐term portfolios have the potential to achieve higher returns. On the other hand, longer‐term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short‐term cash needs, and by making longer‐term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:  The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.  The maximum stated final maturity of individual securities in the portfolio will be five (5) years as measured from trade settlement date, except as otherwise stated in this policy.  The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances. DEPOSITS To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of California’s communities. 314 13 | Page INTEREST EARNINGS All moneys earned and collected from investments authorized in this policy shall be allocated monthly to various fund accounts based on the cash balance in each fund as a percentage of the entire pooled portfolio. REVIEW OF INVESTMENT PORTFOLIO The Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council. POLICY REVIEW The City of Cupertino’s investment policy shall be adopted by resolution of the City Council on an annual basis. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and yield, and its relevance to current law and financial and economic trends. 315 14 | Page GLOSSARY OF INVESTMENT TERMS AGENCIES. Shorthand market terminology for any obligation issued by a government‐ sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass‐through securities. FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass‐through securities. GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass‐through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit. AVERAGE LIFE. In mortgage‐related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. 316 15 | Page BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained. COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. COMMERCIAL PAPER. The short‐term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. COUPON. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. 317 16 | Page DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent. DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short‐term securities, such as T‐bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FUNDS RATE. The rate of interest charged by banks for short‐term loans to other banks. The Federal Reserve Bank through open‐market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non‐profit organizations in California that is managed by the State Treasurer’s Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a 318 17 | Page lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or ʺmade whole.ʺ MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NOTES. Unsecured, investment‐grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk. MONEY MARKET. The market in which short‐term debt instruments (T‐bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded. MORTGAGE PASS‐THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investmentʹs risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moodyʹs. 319 18 | Page NEGOTIABLE CD. A short‐term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state‐licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short‐term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and ʺdual index floaters,ʺ which pay interest based on the relationship between two other interest rates ‐ for example, the yield on the ten‐year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. 320 19 | Page SUPRANATIONAL. A Supranational is a multi‐national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three‐ and six‐month T‐bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows. TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi‐annually. TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi‐annually. VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. Revisions: Director of Administrative Services’ signature: _______________________________ Date: _______________________________ City Manager’s signature: _______________________________ Date: _______________________________ 321 6225 Lusk Boulevard | San Diego, CA 92121 | Phone 800.317.4747 | chandlerasset.com April 18th, 2024 Ms. Kristina Alfaro Director of Administrative Services City of Cupertino Dear Kristina, The Chandler Team has completed our review of City of Cupertino’s investment policy. Our review of the policy focused on compliance with the statutes of California Government Code (Code) that govern the investment of public funds, as well as on inclusion of current best practices. There were changes to Code for 2024, but the changes involve practices that the City already follows. No changes to the policy are needed for this year. The City’s policy continues to be effective as written. Please do not hesitate to contact us with any questions you may have, or if further review is needed. Sincerely, Carlos Oblites Senior Portfolio Strategist Chandler Asset Management 322 CITY OF CUPERTINO Agenda Item 24-13120 Agenda Date: 4/22/2024 Agenda #: 6. Subject: INFORMATIONAL ITEM Update on FY 2022-23 ACFR and Supplemental Reports Update on FY 2022-23 ACFR and Supplemental Reports Presenter: Jonathan Orozco, Finance Manager 5:05(15) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™323 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707 Memorandum Date: April 19, 2024 From: Kenneth H. Pun, Managing Partner To: Ms. Pamela Wu, City Manager of the City of Cupertino Kristina Alfaro, Administrative Service Department Director Subject: Preparation Update on the Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ending on June 30, 2023 Introduction Pursuant to the Professional Services Agreement approved by the City Council on June 21, 2023, The Pun Group, LLP was contracted to provide auditing services for the City of Cupertino, including the ACFR, a Single Audit, and various Agreed Upon Procedures (AUP). This memorandum outlines the factors that contributed to the delay in the audit process in completing the ACFR for the fiscal year ending June 30, 2023. Annual Comprehensive Financial Report (ACFR) The ACFR is a comprehensive report detailing the City's financial activities over a specific period (the City’s fiscal year is from July to June). To complete the ACFR, the City must provide accurate financial records, cooperate with the auditor, and maintain internal controls. Meanwhile, the auditor conducts an independent audit of the financial records, ensures compliance with accounting standards, and provides an audit opinion. Audit Commencement: The Planning and Risk Assessment phases began in August 2023, approximately 3 months after what is typical and can be attributed to the later contract execution date. This initial stage is crucial for setting the scope and objectives of the audit. 324 Key Factors Contributing to Audit Delay 1. Implementation of Governmental Accounting Standard Board (GASB) Statement No. 96: The City was mandated to implement GASB Statement No. 96, related to Subscription-Based Information Technology Arrangements, during this audit period. The requirements for this new standard necessitated significant adjustments in the City's accounting and reporting processes, impacting the audit timeline. This implementation affects every city differently, with Cupertino experiencing greater difficulty than others with City’s Finance Manager coming on board late, which delayed staff coordination and the compilation of necessary documents for review, as well as the calculation of complex financial adjustments. 2. First-Year Audit Adjustments: As this fiscal year marks the commencement of our audit relationship with the City, additional time was essential to thoroughly understand the City’s control and operational environment. This foundational understanding is critical to ensure the accuracy and completeness of the audit. 3. Complex Financial Transactions: Several specific transactions required in-depth discussion and analysis, leading to varied interpretations that further complicated the audit process. Notable discussions included:  The probable reallocation of sales and use tax revenue as per Revenue and Taxation Code section 7209.  Accruals related to loan receivable interests.  Unavailable revenue recorded for the loan receivable related balances.  Recognition of grant revenues.  Evaluations concerning claims payable.  Accounting treatments under new GASB pronouncements. Conclusion The combination of implementing new accounting standards and the inherent complexities of initiating a first-year audit relationship have collectively contributed to the delay of the FY2023 audit. We are actively addressing these challenges and working closely with management to expedite the completion of the audit as soon as possible. We are also implementing measures to streamline the audit process for the subsequent year (FY 2023-24) annual audit and theACFR preparation, beginning with commencing the audit process three months earlier with a desired November/December 2024 completion date with the collaboration between the City and the auditors. We appreciate your attention to these matters and please free feel to reach out if you have any questions or concerns. 325 CITY OF CUPERTINO Agenda Item 24-13121 Agenda Date: 4/22/2024 Agenda #: 7. Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2024 Schedule and Workplan Receive the proposed Audit Committee 2024 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:20(10) CITY OF CUPERTINO Printed on 4/19/2024Page 1 of 1 powered by Legistar™326 January 29, 2024 March 21,2024 April 22, 2024 May/June XX, 2024 July 22, 2024 October 28, 2024 Nov/Dec XX, 2024 Appoint Audit Committee Chair and Vice Chair Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Receive the committee’s roles and responsibilities (CMC 2.88.100) OPEB & Pension Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Moss Adams ‐ Citywide Policy Review report OPEB & Pension Trust Performance Report for Quarter Ending June 30, 2024 OPEB & Pension Trust Performance Report for Quarter Ending September 30, 2024 Review of FY 2023‐24 ACFR and Supplemental Reports (tentative) Receive PARS Presentation Quarterly Treasurerʹs Investment Report for Quarter Ending December 31, 2023 and March 31, 2024 Moss Adams ‐ Enterprise Risk Assessment Report Quarterly Treasurerʹs Investment Report for Quarter Ending June 30, 2024 Quarterly Treasurerʹs Investment Report for Quarter Ending September 30, 2024 Receive Chandler Investments Presentation Internal Audit and Fraud, Waste, and Abuse Programs Update FY 2022‐23 ACFR and Supplemental Reports Review Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Receive The Pun Group Presentation Annual Review of City Investment Policy GANN Limit Agreed Upon Procedures (AUP) Review Moss Adams ‐ Citywide Policy Review report Annual Review of OPEB and Pension Trust Investment Policies Receive Moss Adams Presentation Review of FY 2022‐23 ACFR and Supplemental Reports (tentative) Investment Policy Agreed Upon Procedures (AUP) Review Moss Adams ‐ Enterprise Risk Assessment Report Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Storm Drain Agreed Upon Procedures (AUP) Review Internal Audit Program Budget Format Review Receive the proposed Audit Committee 2024 Schedule and Workplan 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 CA N C E L L E D 32 7